Document:

EXHIBIT 10.25

FINAL VERSION

 
 
 

INTERPOOL, INC.,

as Servicer

TRAC LEASE, INC.,

as Subservicer

U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity, but

as Indenture Trustee

and

INTERPOOL CHASSIS FUNDING II, LLC,

as issuer under the Indenture

SERVICING AGREEMENT

Dated as of July 19, 2007

 
 
 

ALL RIGHTS, TITLE AND INTEREST IN, TO AND UNDER THIS AGREEMENT ON THE PART OF THE ISSUER HAVE BEEN ASSIGNED TO AND ARE SUBJECT TO A SECURITY INTEREST IN FAVOR OF THE INDENTURE TRUSTEE, UNDER THE  INDENTURE.

 

 

TABLE OF CONTENTS

 

	
                         
 	
                         
 	
                         
 	
                        PAGE
 
	
                        SECTION 1.
 	
                         
 	
                        DEFINITIONS
 	
                        2
 
	
                        Section 1.01.
 	
                         
 	
                        Capitalized Terms
 	
                        2
 
	
                        Section 1.02.
 	
                         
 	
                        Material Adverse Effect
 	
                        2
 
	
                        SECTION 2.
 	
                         
 	
                        REPRESENTATIONS AND WARRANTIES
 	
                        2
 
	
                        Section 2.01.
 	
                         
 	
                        Representations and Warranties of Servicer
 	
                        2
 
	
                        Section 2.02.
 	
                         
 	
                        Representations and Warranties of Subservicer
 	
                        6
 
	
                        SECTION 3.
 	
                         
 	
                        ADMINISTRATION OF SERVICED ASSETS
 	
                        10
 
	
                        Section 3.01.
 	
                         
 	
                        Servicer to Act
 	
                        10
 
	
                        Section 3.02.
 	
                         
 	
                        Contract Amendments and Modifications
 	
                        15
 
	
                        Section 3.03.
 	
                         
 	
                        Contract Defaults; Remarketing; Residual Proceeds
 	
                        16
 
	
                        Section 3.04.
 	
                         
 	
                        Costs of Servicing: Servicing Fee
 	
                        17
 
	
                        Section 3.05.
 	
                         
 	
                        Other Transactions
 	
                        17
 
	
                        Section 3.07.
 	
                         
 	
                        Resignation and Removal of Servicer
 	
                        18
 
	
                        Section 3.08.
 	
                         
 	
                        Security Deposits
 	
                        19
 
	
                        Section 3.09.
 	
                         
 	
                        Grant of License
 	
                        19
 
	
                        SECTION 4.
 	
                         
 	
                        SERVICER ADVANCES AND OTHER PAYMENTS
 	
                        20
 
	
                        Section 4.01.
 	
                         
 	
                        Servicer Advances
 	
                        20
 
	
                        Section 4.02.
 	
                         
 	
                        Direct Operating Expenses
 	
                        20
 
	
                        Section 4.04.
 	
                         
 	
                        Payment Advices
 	
                        21
 
	
                        SECTION 5.
 	
                         
 	
                        REPORTS AND OTHER INFORMATION TO BE PROVIDED BY SERVICER
 	
                        21
 
	
                        Section 5.01.
 	
                         
 	
                        Monthly Reports and other Requested Information
 	
                        21
 
	
                        Section 5.02.
 	
                         
 	
                        Annual Independent Certified Public Accountant’s Report
 	
                        21
 
	
                        Section 5.03.
 	
                         
 	
                        Tax Reporting
 	
                        22
 
	
                        Section 5.04.
 	
                         
 	
                        Officer’s Certificates
 	
                        22
 
	
                        SECTION 6.
 	
                         
 	
                        COVENANTS OF THE SERVICER
 	
                        23
 
	
                        Section 6.01.
 	
                         
 	
                        Corporate Existence of the Servicer; Merger and Sale of Assets
 	
                        23
 
	
                        Section 6.02.
 	
                         
 	
                        Covenants with Respect to Contracts and Equipment
 	
                        24
 
	
                        Section 6.03.
 	
                         
 	
                        Purchase of Equipment, Etc. by Servicer Upon Breach of Covenants
 	
                        26
 
	
                        Section 6.04.
 	
                         
 	
                        Financial and Business Information
 	
                        27
 
	
                        Section 6.05.
 	
                         
 	
                        No Bankruptcy Petition Against the Trust or the Issuer
 	
                        28
 
	
                        Section 6.06.
 	
                         
 	
                        Inspection and Audit Inspections
 	
                        29
 

 

 

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                        Section 6.07.
 	
                         
 	
                        Servicer Records
 	
                        30
 
	
                        Section 6.08.
 	
                         
 	
                        Insurance
 	
                        30
 
	
                        Section 6.09.
 	
                         
 	
                        Limitation on Liability of the Servicer and Others
 	
                        32
 
	
                        Section 6.10.
 	
                         
 	
                        Corporate Separateness from the Issuer and Trust
 	
                        32
 
	
                        Section 6.11.
 	
                         
 	
                        Further Assurances
 	
                        32
 
	
                        Section 6.12.
 	
                         
 	
                        Portfolio Management System
 	
                        32
 
	
                        SECTION 7.
 	
                         
 	
                        SERVICER DEFAULT
 	
                        33
 
	
                        Section 7.01.
 	
                         
 	
                        Servicer Default
 	
                        33
 
	
                        Section 7.02.
 	
                         
 	
                        Termination
 	
                        36
 
	
                        Section 7.03.
 	
                         
 	
                        Waiver of Servicer Default
 	
                        37
 
	
                        Section 7.04.
 	
                         
 	
                        Servicer to Cooperate
 	
                        37
 
	
                        Section 7.05.
 	
                         
 	
                        Notification to Noteholders
 	
                        38
 
	
                        Section 7.06.
 	
                         
 	
                        Remedies Not Exclusive
 	
                        38
 
	
                        SECTION 8.
 	
                         
 	
                        ASSIGNMENT
 	
                        38
 
	
                        Section 8.01.
 	
                         
 	
                        Assignment to Indenture Trustee
 	
                        38
 
	
                        Section 8.02.
 	
                         
 	
                        Assignment by Servicer
 	
                        38
 
	
                        Section 8.03.
 	
                         
 	
                        Power of Attorney
 	
                        38
 
	
                        SECTION 9.
 	
                         
 	
                        MISCELLANEOUS
 	
                        39
 
	
                        Section 9.01.
 	
                         
 	
                        Continuing Obligations
 	
                        39
 
	
                        Section 9.02.
 	
                         
 	
                        Governing Law
 	
                        39
 
	
                        Section 9.03.
 	
                         
 	
                        Successors and Assigns
 	
                        39
 
	
                        Section 9.04.
 	
                         
 	
                        Modification
 	
                        39
 
	
                        Section 9.05.
 	
                         
 	
                        Notices
 	
                        39
 
	
                        Section 9.06.
 	
                         
 	
                        Third Party Beneficiary
 	
                        40
 
	
                        Section 9.07.
 	
                         
 	
                        Waivers
 	
                        40
 
	
                        Section 9.08.
 	
                         
 	
                        Costs and Expenses
 	
                        40
 
	
                        Section 9.09.
 	
                         
 	
                        Survival of Representations
 	
                        40
 
	
                        Section 9.10.
 	
                         
 	
                        Confidential Information
 	
                        40
 
	
                        Section 9.11.
 	
                         
 	
                        Headings and Cross-References
 	
                        40
 
	
                        Section 9.12.
 	
                         
 	
                        Independence of Covenants
 	
                        40
 
	
                        Section 9.13.
 	
                         
 	
                        No Adverse Interpretation of Other Agreements
 	
                        40
 
	
                        Section 9.14.
 	
                         
 	
                        Statements Required in Servicer Certificate
 	
                        41
 
	
                        Section 9.15.
 	
                         
 	
                        SERVICE OF PROCESS AND JURISDICTION
 	
                        41
 
	
                        Section 9.16.
 	
                         
 	
                        Waiver of Immunity
 	
                        42
 
	
                        Section 9.17.
 	
                         
 	
                        Currency
 	
                        42
 
	
                        Section 9.18.
 	
                         
 	
                        Amendment
 	
                        43
 
	
                        Section 9.19.
 	
                         
 	
                        Counterparts
 	
                        43
 
	
                        Section 9.20.
 	
                         
 	
                        Merger
 	
                        43
 
	
                        Section 9.21.
 	
                         
 	
                        Severability
 	
                        43
 
	
                        Section 9.22.
 	
                         
 	
                        Language of Notices and Documentation
 	
                        43
 
	
                        Section 9.23.
 	
                         
 	
                        WAIVER OF JURY TRIAL
 	
                        43
 
	
                        Section 9.24.
 	
                         
 	
                        Indenture Trustee Indemnity
 	
                        44
 

 

 

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                        Section 9.25.
 	
                         
 	
                        No Force Majeure
 	
                        44
 
	
                        Section 9.26.
 	
                         
 	
                        Indemnification
 	
                        44
 

 

	
                        Exhibit A
 	
                        -
 	
                        Form of Servicer Report (with attached Servicer Certificate and Borrowing Base Certificate)
 
	
                        Exhibit B
 	
                        -
 	
                        Reserved
 
	
                        Exhibit C
 	
                        -
 	
                        Form of Statement of Cash Reconciliation
 
	
                        Exhibit D
 	
                        -
 	
                        Summary of Agreed Upon Procedures
 
	
                        Exhibit E
 	
                        -
 	
                        Form of Notice for Marking of Contracts (Indenture Trustee)
 
	
                        Exhibit F
 	
                        -
 	
                        Tape Information
 
	
                        Exhibit G
 	
                        -
 	
                        List of Self-Insured Users
 

 

 

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SERVICING AGREEMENT

This Servicing Agreement (the “Agreement”), dated as of July 19, 2007, is by and among INTERPOOL, INC., a company organized under the laws of Delaware, and its permitted successors and assigns as servicer (in such capacity, the “Servicer”),TRAC LEASE, INC., a company organized under the laws of Delaware, and its pe
rmitted successors and assigns, as Subservicer (together with each other Subservicer appointed pursuant to
this Agreement, each a “Subservicer”), U.S. BANK NATIONAL ASSOCIATION, a national banking association, not in its individual capacity, but as indenture trustee under the Indenture (the “Indenture Trustee”), and INTERPOOL CHASSIS FUNDINGII, LLC (the “Issuer”
).

RECITALS

WHEREAS, the Trust Agreement contemplates that, from time to time, the Trustee, on behalf of the Trust and at the direction of the Initial Beneficiary, will identify and allocate on the Trust’s books and records certain Trust Assets as part of one or more separate SUBI Portfolios and create and issue to the Initial Beneficiary one or more separate special units of beneficial interest in the Trust or “SUBI”, whose beneficiaries generally will be entitled to the beneficial interest in, but only from, the related SUBI Portfolio, all as set forth in the Trust Agreement;

WHEREAS, pursuant to the SUBI Supplement 2007-A, dated as of July 19, 2007 (the “2007-A SUBI Supplement”), to the Trust Agreement, made by and among Interpool Chassis Funding, LLC, as Initial Beneficiary (the “Initial Beneficiary), the Issuer, Interpool, Inc. as settlor (“Settlor”) and as custodian (the “Custodian”) and U.S. Bank Trust National Association (as successor to Wachovia Trust Company, National Association (formerly known as First Union Trust
Company, National Association)) (“U.S. Bank”), as UTI Trustee (in such capacity, the “UTI Trustee”) and Delaware Trustee (in such capacity, the “Delaware Trustee”), U.S. Bank Trust National Association, SUBI Trustee (in such capacity, the “2007-A SUBI Trustee”) on the Closing Date, the parties to the Trust Agreement supplemented the terms of the Trust Agreement and caused the Trustee to identify and allocate certain Contracts and Equipment to the 2007-A SUBI Portfolio (as defined in the 2007-A SUBI Supplement) and to create and issue to the Issuer the 2007-A SUBI Certificate (as defined in the 2007-A SUBI Supplement) that collectively
evidence the entire beneficial interest in the 2007-A SUBI (as defined in the 2007-A SUBI Supplement);

WHEREAS, pursuant to the Indenture, dated as of July 19, 2007 (the “Indenture”), among the Issuer, the Servicer, the Administrative Agent and the Indenture Trustee, the Issuer is issuing the Notes to the purchaser(s) thereof, such Notes to be secured by the collateral therefor under the Indenture; and

NOW, THEREFORE, this Agreement witnesseth for and in consideration of the premises and the promises contained herein, it is mutually covenanted and agreed as follows:

 

 

AGREEMENTS

SECTION 1. DEFINITIONS.

Section 1.01. Capitalized Terms. Capitalized terms used but not otherwise defined in this Agreement shall have the meanings assigned to such terms in Appendix A to the Indenture or, if not defined therein, the Trust Agreement, and the definitions of such terms shall be equally applicable to both the singular and plural forms of the terms defined. 

Section 1.02. Material Adverse Effect. Whenever a determination is to be made under this Agreement as to whether a given event, action, course of conduct or set of facts or circumstances would reasonably be expected to have a material adverse effect on the Serviced Assets (as defined below) or a party to any of the Relevant Documents, such determination shall be made without taking into account the existence of any funds available in any cash collateral account or equity defeasance account that may then be subject to the Lien of any Indenture.

SECTION 2. REPRESENTATIONS AND WARRANTIES

Section 2.01. Representations and Warranties of Servicer. The Servicer hereby makes the following representations and warranties to each of the Issuer, the Trust, the Administrative Agent, the Indenture Trustee, each Noteholder, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty and each Registered Pledgee as of the Closing Date, each Transfer Date and each Series Issuance Date. The Servicer hereby acknowledges and agrees that each such person has relied on each such representation and warranty in entering into the transactions contemplated by the Relevant Documents:

(a) Corporate Organization and Authority. The Servicer:

(i) is a corporation duly organized, validly existing and in good standing under the laws of Delaware (which is, and at all times has been, its only state of incorporation);

(ii) (A) has all requisite power and authority and all necessary licenses and permits to own and operate its properties and to carry on its business as now conducted (except where the failure to have such licenses and permits would not reasonably be expected to individually or in the aggregate have a material adverse effect on the business or condition (financial or otherwise) of the Servicer or its ability to enter into and conduct such business as currently conducted), (B) had at all relevant times, and now has, power, authority, and legal right to service the 2007-A SUBI Assets (as defined in the 2007-A SUBI Supplement) and the other Collateral, and any other Trust Assets subjected to this Agreement (the “Serviced Assets”) and to perform its obligations under
this Agreement and each other Relevant Document to which it is a party and the transactions contemplated hereby, including performance of the duties and obligations of the Servicer hereunder and thereunder, (C) has had the same legal name for the past six years and (D) does not do business under any other name;

 

 

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(iii) has been duly qualified and is authorized to do business and is in good standing in each jurisdiction where the character of its properties or the nature of its activities makes such qualification necessary (except where the failure to be so qualified or in good standing would not reasonably be expected to individually or in the aggregate have a material adverse effect on (i) the Collateral, the Notes or the Trust Assets, (ii) the properties, business or financial condition of the Servicer, any Subservicer or the Issuer, (iii) the ability of the Servicer, any Subservicer or the Issuer, as the case may be, to perform its duties and obligations under the Relevant Documents to which it is a party or (iv) impair the enforceability of the Contracts (the items set forth in clauses (i) through (iv) collectively, a “Material Adverse Effect”)); and

(iv) has duly executed and delivered this Agreement and all other Relevant Documents to which it is a party, including, without limitation, any certificates, documents and instruments executed and delivered by it, and this Agreement and each other Relevant Document to which it is a party is the legal, valid and binding obligation of the Servicer enforceable against the Servicer in accordance with the terms hereof or thereof, except as enforcement of such terms may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the rights of creditors generally and by equitable principles (regardless of whether such enforceability is in a proceeding in equity or at law).

 (b) Investment Company. The Servicer is not an investment company which is required to register under the Investment Company Act of 1940, as amended.

 (c) No Violations: No Consents. The entering into of this Agreement and each other Relevant Document to which it is a party, and the performance by the Servicer of its obligations under this Agreement and each of the other Relevant Documents to which it is a party, and the consummation of the transactions herein and therein contemplated will not conflict with, or result in any breach of any of the terms or any provisions of, or constitute a default (with or without notice or lapse of time or both) under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Servicer pursuant to the terms of any indenture, the articles of incorporation or bylaws of the Servicer, or any material term of any indenture, agreement, mortgage,
deed of trust, or other agreement or instrument to which the Servicer is a party or by which it is bound or to which any of its property or assets is subject, nor will such action result in any violation of the provisions of its organizational documents, or any statute or any order, rule or regulation of any court or any regulatory authority or other governmental agency or body, or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement, mortgage, deed of trust, or other instrument, other than this Agreement, or violate any law or any order, rule, or regulation applicable to the Servicer of any court or of any federal or state regulatory body, administrative agency, or other Governmental Authority having jurisdiction over the Servicer or any of its properties, a conflict with which, a violation or breach of which or default under which could have a Material Adverse Effect; and no consent, approval,
authorization, order, registration or 

 

 

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qualification of or with any court, or any such regulatory authority or other governmental agency, or body is required for the Servicer to enter into this Agreement and each of the other Relevant Documents to which it is a party, or for the consummation of the transactions contemplated by this Agreement and the other Relevant Documents.

(d) No Proceedings or Litigation. There are no judgments, actions, suits, decrees, stipulations, consents, proceedings, investigations, injunctions or orders pending, or to the Servicer’s knowledge threatened, against or affecting the Servicer or any of its direct or indirect subsidiaries in or before any court, agency, arbitration board, tribunal or Governmental Authority, (A) asserting the invalidity of this Agreement or any other Relevant Document or (B) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any other Relevant Document, (C) seeking any determination or ruling which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect or (D) seeking to adversely affect the
federal, state or local tax attributes of the Notes. The Servicer is not in default with respect to any order of any court, Governmental Authority or agency or arbitration board or tribunal. There are no injunctions, writs, restraining orders or other orders in effect against the Servicer that would adversely affect its ability to perform under this Agreement or any other Relevant Document to which it is a party.

(e) No Servicer Default. No default or event that with the passage of time or notice would become a Servicer Default has occurred or is continuing on the date hereof.

(f) Insolvency. The Servicer is paying its debts as they become due and, after giving effect to the transactions contemplated hereby, will have adequate capital to conduct its business.

(g) Approvals. All approvals, authorizations, consents, orders or other actions of any Person required to be obtained by the Servicer or, to the knowledge of the Servicer, by any other party in connection with the execution and delivery of this Agreement or any other Relevant Document to which it is a party have been or will be taken or obtained on or prior to the date such Relevant Document is executed and delivered.

(h) Continuing Obligation. The Servicer represents and warrants on each Transfer Date and each Series Issuance Date that it is performing all of its agreements and obligations hereunder and under the other Relevant Documents.

(i) Financial Statements. Solely as of the Closing Date, since December 31, 2006 there has been no Material Adverse Effect on the financial condition of any of the Sellers or the Servicer.

(j) Customary Practices. Servicer has maintained its customary practices regarding internal credit grading and underwriting standards with respect to the Contracts and each Contract is representative of customary practices in the Servicer’s industry.

 

 

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(k) Full Disclosure. No written materials delivered to the Issuer, the Indenture Trustee, the Administrative Agent, any Registered Pledgee, any Noteholder, any Interest Rate Hedge Counterparty, any Currency Hedge Counterparty or any third party beneficiary named in Section 9.06 hereto, by or on behalf of the Servicer in connection with the structuring of the transactions contemplated by the Relevant Documents contains any untrue statement of a material fact or (with respect to any offering document for any of the Notes) omits a material fact necessary to make the statements contained therein or herein not misleading in light of the circumstances under which they were made. 

(l) ERISA Compliance. The Servicer has fully funded any required contribution to any “employee pension benefit plans,” as such term is defined in Section 3(2) of ERISA.

(m) Payment of Taxes. The Servicer has promptly paid, when due, all material taxes and governmental claims in respect of the Servicer’s activities and assets and will take all actions necessary to insure that all material taxes and governmental claims, if any, in respect of the Servicer’s activities and assets are promptly paid.

(n) Substantive Consolidation. The Servicer is operated such that neither the Issuer nor the Trust would be substantively consolidated in the bankruptcy estate of the Servicer and their separate existence disregarded in the event of the Servicer’s bankruptcy and the Servicer acknowledges the opinion of counsel described in Section 6.10 and agrees that the assumptions set forth therein are accurate in all material respects.

(o) Executive Offices. The current location of the Servicer’s chief executive office, principal place of business and books and records is 211 College Road East, Princeton, New Jersey 08540 and has been the location of the Servicer’s chief executive office, principal place of business and books and records for the immediately preceding five (5) years.

(p) Perfection of Security Interests. The Servicer, at its expense, has taken and shall take all action necessary or desirable to establish and maintain (1) good and marketable title of the Trust to each item of Equipment and the Related Assets thereto, the Issuer’s ownership interest in the Collateral (including, without limitation, all actions desirable under the laws of Canada and Mexico, respectively, to evidence the ownership of all Equipment located in Canada and Mexico, respectively, and compliance with all Applicable Laws regarding Certificates of Title) and (2) in favor of the Indenture Trustee, a valid and enforceable first priority perfected security interest in the Collateral, free and clear of any Lien (except Permitted Liens), including, without limitation, filing
UCC financing statements and taking such other action to perfect, protect or more fully evidence the lien of each Indenture, as requested from time to time by such Person or a beneficiary of such Person’s security interest. The Servicer shall not record any lien on any Certificate of Title for any item of Collateral or any other Serviced Assets related thereto, except the lien of the Indenture (unless such item of collateral has been released 

 

 

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from the lien of such Indenture in accordance with the terms and conditions of the Relevant Documents).

 (q) Portfolio Management Systems. The Servicer has in place (A) its computer software systems, internet sites and other electronic data retention and retrieval systems (collectively, the “Portfolio Management System”) which are used by the Servicer to maintain master records and related data with respect to the Equipment, the Contracts and other Serviced Assets (including, without limitation, location and maintenance records with respect to each piece of Equipment and collection information with respect to each Contract) and (B) adequate practices and procedures to protect data on such systems and maintain adequate back-up and ability to recreate such documentation in the event of
destruction of such systems.

 (r) [Reserved].

 (s) Nonconsolidation. The Servicer represents and warrants that (1) its consolidated financial statements reflect the separate corporate existence of the Issuer and the Trust, (ii) except as permitted by the Relevant Documents, none of the Servicer, its Affiliates or its subsidiaries pays any of the Issuer’s or the Trust’s expenses, guaranty any of the Issuer’s or the Trust’s obligations or advances funds to any such Person for payment of expenses and (iii) none of the Servicer, its Affiliates or its subsidiaries acts as an agent of the Issuer or the Trust, except Interpool in its capacity as Servicer and TLI as sub-servicer.

 Section 2.02. Representations and Warranties of Subservicer. Each Subservicer hereby makes the following representations and warranties to each of the Issuer, the Trust, the Administrative Agent, the Indenture Trustee, each Noteholder, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty and each Registered Pledgee as of the Closing Date, each Transfer Date and each Series Issuance Date. The Subservicer hereby acknowledges and agrees that each such person has relied on each such representation and warranty in entering into the transactions contemplated by the Relevant Documents:

(a) Corporate Organization and Authority. The Subservicer:

(i) is a corporation duly organized, validly existing and in good standing under the laws of Delaware (which is, and at all times has been, its only state of incorporation);

(ii) (A) has all requisite power and authority and all necessary licenses and permits to own and operate its properties and to carry on its business as now conducted (except where the failure to have such licenses and permits would not reasonably be expected to individually or in the aggregate have a material adverse effect on the business or condition (financial or otherwise) of the Subservicer or its ability to enter into and conduct such business as currently conducted), (B) had at all relevant times, and now has, power, authority, and legal right to service the Serviced Assets and to perform its obligations under this Agreement and each 

 

 

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other Relevant Document to which it is a party and the transactions contemplated hereby, including performance of the duties and obligations of the Subservicer hereunder and thereunder, (C) has had the same legal name for the past six years and (D) does not do business under any other name;

(iii) has been duly qualified and is authorized to do business and is in good standing in each jurisdiction where the character of its properties or the nature of its activities makes such qualification necessary (except where the failure to be so qualified or in good standing would not reasonably be expected to individually or in the aggregate have a Material Adverse Effect); and

(iv) has duly executed and delivered this Agreement and all other Relevant Documents to which it is a party including, without limitation, any certificates, documents and instruments executed and delivered by it, and this Agreement and each other Relevant Document to which it is a party is the legal, valid and binding obligation of the Subservicer enforceable against the Subservicer in accordance with the terms hereof or thereof, except as enforcement of such terms may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the rights of creditors generally and by equitable principles (regardless of whether such enforceability is in a proceeding in equity or at law).

(b) Investment Company. The Subservicer is not an investment company which is required to register under the Investment Company Act of 1940, as amended.

(c) No Violations: No Consents. The entering into of this Agreement and each other Relevant Document to which it is a party, and the performance by the Subservicer of its obligations under this Agreement and each of the other Relevant Documents to which it is a party, and the consummation of the transactions herein and therein contemplated will not conflict with, or result in any breach of any of the terms or any provisions of, or constitute a default (with or without notice or lapse of time or both) under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Subservicer pursuant to the terms of any indenture, the articles of incorporation or bylaws of the Subservicer, or any material term of any indenture, agreement,
mortgage, deed of trust, or other agreement or instrument to which the Subservicer is a party or by which it is bound or to which any of its property or assets is subject, nor will such action result in any violation of the provisions of its organizational documents, or any statute or any order, rule or regulation of any court or any regulatory authority or other governmental agency or body, or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement, mortgage, deed of trust, or other instrument, other than this Agreement, or violate any law or any order, rule, or regulation applicable to the Subservicer of any court or of any federal or state regulatory body, administrative agency, or other Governmental Authority having jurisdiction over the Subservicer or any of its properties, a conflict with which, a violation or breach of which or default under which could have a Material Adverse Effect; and no consent,
approval, authorization, order, registration or qualification of or with any court, or any such regulatory authority 

 

 

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or other governmental agency, or body is required for the Subservicer to enter into this Agreement and each of the other Relevant Documents to which it is a party, or for the consummation of the transactions contemplated by this Agreement and the other Relevant Documents.

(d) No Litigation. There are no judgments, actions, suits, decrees, stipulations, consents, proceedings, investigations, injunctions or orders pending, or to the Subservicer’s knowledge threatened, against or affecting the Subservicer or any of its direct or indirect subsidiaries in or before any court, Governmental Authority or agency or arbitration board or tribunal, (i) asserting the invalidity of this Agreement or any other Relevant Document or (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any other Relevant Document, (iii) seeking any determination or ruling which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect or (iv) seeking to adversely affect the
federal, state or local tax attributes of the Notes. The Subservicer is not in default with respect to any order of any court, Governmental Authority or agency or arbitration board or tribunal. There are no injunctions, writs, restraining orders or other orders in effect against the Subservicer that would adversely affect its ability to perform under this Agreement or any other Relevant Document to which it is a party.

(e) No Subservicer Default. No default or event that with the passage of time or notice would become a Servicer Default has occurred or is continuing on the date hereof.

(f) Insolvency. The Subservicer is paying its debts as they become due and, after giving effect to the transactions contemplated hereby, will have adequate capital to conduct its business.

(g) Approvals. All approvals, authorizations, consents, orders or other actions of any Person required to be obtained by the Subservicer or, to the knowledge of the Subservicer, by any other party in connection with the execution and delivery of this Agreement or any other Relevant Document to which it is a party have been or will be taken or obtained on or prior to the date such Relevant Document is executed and delivered.

(h) Continuing Obligation. The Subservicer represents and warrants on the Closing Date, each Transfer Date and each Series Issuance Date that it is performing all of its agreements and obligations hereunder and under the other Relevant Documents.

(i) Customary Practices. The Subservicer has maintained its customary practices regarding internal credit grading and underwriting standards with respect to the Contracts and each Contract is representative of customary practices in the Subservicer’s industry.

(j) Full Disclosure. No written materials delivered to the Issuer, the Indenture Trustee, the Administrative Agent, any Registered Pledgee, any Noteholder, 

 

 

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any Interest Rate Hedge Counterparty, any Currency Hedge Counterparty or any third party beneficiary named in Section 9.06 hereto, by or on behalf of the Subservicer in connection with the structuring of the transactions contemplated by the Relevant Documents contains any untrue statement of a material fact or (with respect to any offering document for any of the Notes) omits a material fact necessary to make the statements contained therein or herein not misleading in light of the circumstances under which they were made. 

 (k) ERISA Compliance. The Subservicer has fully funded any required contribution to any “employee pension benefit plans,” as such term is defined in Section 3(2) of ERISA.

 (l) Payment of Taxes. The Subservicer has promptly paid, when due, all material taxes and governmental claims in respect of the Servicer’s activities and assets and will take all actions necessary to insure that all material taxes and governmental claims, if any, in respect of the Subservicer’s activities and assets are promptly paid.

 (m) Substantive Consolidation. The Subservicer is operated such that neither the Issuer nor the Trust would be substantively consolidated in the bankruptcy estate of the Subservicer and their separate existence disregarded in the event of the Subservicer’s bankruptcy and the Subservicer acknowledges the opinion of counsel described in Section 6.10 and agrees that the assumptions set forth therein are accurate in all material respects.

 (n) Executive Offices. The current location of the Subservicer’s chief executive office, principal place of business and books and records is 633 Third Avenue, New York, New York and has been the location of the Subservicer’s chief executive office, principal place of business and books and records for the immediately preceding five (5) years.

 (o) Perfection of Security Interests. To the extent not already done by the Servicer, the Subservicer, at its expense, has taken and shall take all action necessary or desirable to establish and maintain (1) good and marketable title of the Trust to each item of Equipment and the Related Assets thereto, the Issuer’s ownership interest in the Collateral (including, without limitation, all actions desirable under the laws of Canada and Mexico, respectively, to evidence the ownership of all Equipment located in Canada and Mexico, respectively, and compliance with all Applicable Laws regarding Certificates of Title) and (2) in favor of the Issuer, and the Indenture Trustee, a valid and enforceable first priority perfected security interest in the Collateral, free and clear of any
Lien (except Permitted Liens), including, without limitation, filing UCC financing statements and taking such other action to perfect, protect or more fully evidence the lien of the Indenture, as requested from time to time by such Person or a beneficiary of such Person’s security interest. The Subservicer shall not record any lien on any Certificate of Title for any item of Collateral or any other Serviced Assets related thereto, except the lien of the Indenture (unless such item of collateral has been released from the lien of the Indenture in accordance with the terms and conditions of the Relevant Documents).

 

 

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(p) Portfolio Management Systems. The Subservicer has in place (A) its Portfolio Management System which is used by the Subservicer to maintain master records and related data with respect to the Equipment, the Contracts and other Serviced Assets (including without limitation location and maintenance records with respect to each piece of Equipment and collection information with respect to each Contract) and (B) adequate practices and procedures to protect data on such systems and maintain adequate back-up and ability to recreate such documentation in the event of destruction of such systems.

SECTION 3. ADMINISTRATION OF SERVICED ASSETS

Section 3.01. Servicer to Act. (a) The Issuer hereby appoints Interpool, Inc. as the initial Servicer of the Serviced Assets, and Interpool, Inc., in executing this Agreement hereby accepts such appointment on the terms and conditions set forth in this Agreement. Accordingly, Interpool, Inc. will, as an independent contractor on behalf of the Issuer, the Indenture Trustee, the Administrative Agent and (with respect to each) their respective beneficiaries, successors and assigns, (i) manage, service, lease and administer the Serviced Assets in accordance with the terms of the related Contract and of this Agreement and (ii) be responsible for enforcing the Trust’s rights in the Serviced Assets. 

(b) In performing its obligations hereunder, the Servicer shall exercise the same degree of diligence, prudence, skill and care with which it services contracts and equipment held for its own account and, in any event, in a manner consistent with the customary and usual practices of other servicers of comparable contracts and equipment (the foregoing, the “Servicing Standard”). Subject only to the specific requirements and prohibitions of this Agreement and the other Relevant Documents and compliance with the Servicing Standard, the Servicer shall do, and shall have full power and authority to do, any and all things in connection with the servicing and administration of the Serviced Assets. In performing its duties hereunder, the Servicer will act on behalf of and for the benefit of the
Issuer, the Trust, the Administrative Agent, the Indenture Trustee and (with respect to each) their respective beneficiaries, successors and assigns, without regard to any relationship which the Servicer or any Affiliate of the Servicer may otherwise have with a User. In performing its obligations hereunder, the Servicer shall at all times act in accordance with the provisions of each Contract, the other related documents constituting Serviced Assets and the Relevant Documents, and shall observe and comply with all requirements of law applicable to such Contract, such other related documents constituting Serviced Assets and such Relevant Documents. Except as permitted by the terms of the related Contract following a default thereunder, the Servicer shall not take any action which would result in the interference with the User’s right to quiet enjoyment of the Equipment subject to the Contract during the term thereof. 

(c) Without limiting the generality of the foregoing, the Servicer will be responsible, among other duties, to (i) invoice and collect from each User for all Contract Payments required to be paid by such User in such manner and to the same extent as the Servicer does with respect to similar contracts held for its own account, (ii) fulfill all of the obligations of the Trust and any of the ongoing responsibilities (if any) of the lessor under a Contract and exercise all rights of the Trust with respect to the Contracts and the Equipment, (iii) maintain with respect to each 

 

 

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Contract and each item of Equipment, and with respect to each payment by each User and compliance by each User with the provisions of each Contract, complete and accurate records in such manner and to the same extent as the Servicer does with respect to similar contracts and equipment held for its own account, (iv) execute, deliver, report and file (or cause the same to be done), and the Servicer is hereby authorized and empowered to execute, deliver, report and file on behalf of the Trust and the Issuer, any and all tax returns with respect to sales, use, personal property and other taxes (other than corporate income tax returns) and any and all notices, reports, licensing applications or other required filings required to be filed in any jurisdiction with respect to any Serviced Assets and any and all filings required by Section 3.01 (d) below, (v) apply for and maintain (or
cause to be applied for and maintained) all licenses, permits, registrations, authorizations and other governmental items necessary for the Issuer and/or the Trust to acquire, hold and manage the Serviced Assets in each jurisdiction where the ownership of its assets or the nature of its operations would require the Issuer and/or the Trust to maintain such licenses, permits, registrations, authorizations or governmental items, (vi) pay or cause to be paid all applicable taxes properly due and owing in connection with the Issuer’s and/or the Trust’s activities, (vii) lease, enforce and negotiate the terms of any Contract in accordance with the terms of this Agreement, (viii) repossess and remarket any item of Equipment in accordance with the terms of this Agreement, (ix) negotiate and maintain the insurances required by this Agreement, (x) investigate (at its own expense) the facts and circumstances surrounding each casualty or event of loss with respect to the
Equipment, collect or arrange for payment from the appropriate lessee or third party and process all payment requests under the insurance policies with respect to such Equipment, (xi) institute and prosecute claims against the manufacturers of the Equipment as the Servicer may consider advisable for breach of warranty, any defect in condition, design, operation or fitness or other non-conformity with the terms of manufacture, (xii) in connection with its performance of the responsibilities and obligations, and exercise of rights, under a Contract as “lessor,” minimize any abatement, reduction, recoupment, setoff, defense or counterclaim by the related User, (xiii) pay or cause to be paid all independent director and manager fees with respect to the Issuer due and owing in connection with the Issuer, (xiv) sell Equipment in connection with a User’s exercise of the purchase option under a Finance Lease, and (xv) fully perform all obligations under
the Contracts for which the nonperformance of such obligations would create a setoff or counterclaim right by the applicable user.

In the event the United States Department of Transportation, the Environmental Protection Agency or any other Governmental Authority or any other Applicable Law requires as a condition of continued use or operation of any Equipment that such Equipment be altered or modified (a “Required Modification”), the Servicer agrees, at its own expense, to make or have made such Required Modification in a timely manner after the expiration or exhaustion of any good faith contest proceedings undertaken by the Servicer. The Servicer shall be responsible for and shall pay all costs and expenses (including, without limitation, any such costs and expenses incurred by the Administrative Agent, the Indenture Trustee, the Issuer, each Noteholder, each Interest Rate Hedge Counterparty, each Currency Hedge
Counterparty and each Registered Pledgee in the exercise of their respective rights and remedies or otherwise) which may be incurred with respect to any such Required Modification (subject to Servicer’s right to such reimbursement as set forth in Section 3.02 of the Indenture). Promptly (but in any event within three Business Days) after the Servicer becomes aware of the need for such Required Modification, the Servicer shall notify each of the Administrative Agent, the Indenture Trustee, 

 

 

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each Noteholder, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty and each Registered Pledgee, which notice shall set forth the time period and estimated costs for the same.

(d) On or prior to the Closing Date, the Servicer will deliver for filing the Financing Statements required by Section 2.03(a) of the Transfer Agreement(s). Thereafter, the Servicer will, at its own expense, file such additional Financing Statements and continuation statements and assignments as may be necessary to (i) perfect the ownership and other rights of the Trust in all Serviced Assets owned by the Trust from time to time, (ii) perfect the security interest in the collateral granted under the Indenture in favor of the Indenture Trustee and (iii) continue the effectiveness of any other security interest contemplated by the terms of this Agreement. The Issuer, agrees to execute such Financing Statements and continuation statements as shall be necessary or appropriate and to deliver copies thereof to the Indenture Trustee within a reasonable period of
time. The Issuer shall furnish the Servicer with any powers of attorney or other documents necessary and appropriate to carry out its servicing and administration duties hereunder.

(e) In performing its duties hereunder, the Servicer may enter into subservicing agreements with one or more of its Affiliates for the servicing and administration of all or part of the Serviced Assets if the Servicer delivers to the Issuer, the Trust, the Administrative Agent, each Registered Pledgee, each Noteholder, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty and the Indenture Trustee a certificate of a Servicing Officer consenting to the appointment of the subservicer and a copy of the subservicing agreement; provided, however, that no subservicing agreement shall become effective without the prior written consent of the Global Requisite Majority, which consent shall not be unreasonably withheld. Notwithstanding any subservicing agreement, the Servicer shall remain
obligated and liable for the servicing and the administration of the Serviced Assets in accordance with the provisions of this Agreement, without diminution of such obligation or liability by virtue of such subservicing agreements or arrangements or by virtue of indemnification from the subservicer, to the same extent and under the same terms and conditions as if the Servicer alone were servicing and administering the Serviced Assets. The Servicer appoints Trac Lease, Inc., a Delaware corporation, as a subservicer with respect to the Servicer’s duties relating to all Equipment (and related Contracts and other Serviced Assets) transferred pursuant to a Transfer Agreement, and the Issuer hereby consents (and each Noteholder by purchasing its Note and the Global Requisite Majority, are deemed to have consented), to such appointment. Trac Lease, Inc. hereby accepts such appointment as subservicer, agrees to perform all duties and obligations of the Servicer in connection with such
assets, and agrees not to resign as subservicer without the prior written consent of the Global Requisite Majority. The Servicer, at any time, and in its sole discretion, shall have the right to remove Trac Lease, Inc. as subservicer by delivery of written notice to such effect, with copies of such notice to be delivered concurrently to the Indenture Trustee for delivery to each beneficiary of the Indenture Trustee’s security interest.

(f) In performing its servicing duties hereunder, the Servicer shall engage in reasonable efforts, consistent with the Servicing Standard, to collect all payments required to be made by the Users under the Contracts, enforce all material rights of the Trust in and to the Equipment, the Contracts and the other Serviced Assets and defend the Equipment against all Persons, claims 

 

 

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and demands whatsoever for which the User is not obligated to defend or for which such User has not promptly commenced such proceedings as are necessary or advisable to defend against any such Person, claim or demand. The Servicer shall notify the Issuer, the Trust, the Administrative Agent, each Registered Pledgee, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty and the Indenture Trustee of any claim by a third party as to the Serviced Assets that would reasonably be expected to have a material adverse effect on any Noteholder, any Series of Notes, the Indenture Trustee, the Administrative Agent, any Registered Pledgee, any Interest Rate Hedge Agreement, any Currency Hedge Counterparty or the Serviced Assets. The Servicer shall not assign, sell, pledge or exchange or in any way encumber or otherwise dispose of the Equipment or other Serviced Assets, except as permitted
hereunder or in any other Relevant Documents.

(g) The Servicer shall maintain insurance (and shall provide evidence of such to the Indenture Trustee and the Administrative Agent, no less frequently than annually, commencing with the January 2008 Payment Date) with respect to its operations and property which is adequate and customary in light of the Servicer’s operations and consistent with the Servicing Standard. The Servicer has obtained, and shall continue to maintain in full force and effect, employee theft insurance of a type and in such amount as is customary for servicers engaged in the business of servicing the contracts, the equipment and related property similar to the Contracts, the Equipment and the other Serviced Assets.

(h) To the extent that an equivalent payment has been received from a User under a Contract, the Servicer shall pay or cause to be paid all personal property, sales and use taxes on or with respect to the Equipment, or the acquisition or leasing thereof, as and when such taxes become due. The Servicer shall also cause to be filed in a timely manner any and all returns and reports required in connection with the payment of such taxes.

(i) All payments made by a User under a Contract and all payments made by the Servicer or a permitted subservicer under this Agreement will be made free and clear of and without deduction or withholding for or on account of any Taxes.

(j) The Servicer, as agent for the Issuer, the Indenture Trustee, the Trustee, each Person that is a beneficiary of the Indenture Trustee’s security interest and the Registered Pledgees, shall use reasonable efforts to sell or re-lease any item of Equipment upon the expiration or early termination of a Contract relating to an item of Equipment on the best terms then available. Any such sale or re-lease of an item of Equipment shall be conducted in accordance with the standards set forth in Section 3.02. In the event that the Servicer receives more than one offer for the sale or re-lease of an item of Equipment, the Servicer will in its ordinary course of business be required to select the sale or re-lease proposal which, in its reasonable judgment taking into account all relevant facts (including, but not limited to, the Issuer’s, and the Trust’s (as the case
may be) business strategy and the risks inherent in each such sale or re-lease), is most likely to maximize the net present value of the total future proceeds. Any re-lease of an item of Equipment shall be designated as such. Upon such designation, the Servicer shall amend the Master List and, if necessary, all applicable financing statements and other filings as appropriate. The Servicer shall have 180 days from the date of any re-lease to cause the User thereunder to execute its related Contract.

 

 

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(k) The Servicer shall (i) subject to Section 3.03(a), promptly demand return of the Equipment under any Defaulted Contract, and (ii) if the Equipment is not returned by the User, thereafter promptly notify the underwriters of any claim under the Physical Damage Equipment Insurance Policy and/or Commercial General Liability Insurance Policy with respect to such Equipment to which it would be entitled.

(l) Subject to the terms of the Trust Agreement, the Servicer shall take all action necessary or desirable for each Certificate of Title to show the owner of the related item of Equipment as “Interpool Titling Trust”, any trustee of the Trust or such other similar designation as may be acceptable to any applicable department, agency or official in each state responsible for accepting applications for, and maintaining records regarding, Certificates of Title and liens thereon. The obligations of the Servicer under this Section 3.01(1) shall survive any partial or complete termination of the Servicer.

(m) The Servicer shall identify from time to time all (i) periodic sales and use tax or property (real or personal) tax reports, (ii) licenses, permits, registrations and other governmental items, and periodic renewals thereof and (iii) other governmental filings, registrations or approvals arising with respect to or required of the Trust and/or the Issuer, including such licenses, permits and other filings as are required for the Trust to originate and accept assignments of Serviced Assets and to be identified as the owner of the Equipment. The Servicer shall also identify any ancillary undertakings required of the Trust and/or the Issuer in respect of any of the foregoing. The Servicer shall timely prepare and file, or cause to be filed, with the cooperation of the Trust and/or the Issuer, as the case may be, with the appropriate Person any of the foregoing,
including any ancillary undertaking, with a copy to the Indenture Trustee, and shall pay any fees in connection therewith. Should the Servicer at any time receive notice, or have actual knowledge, of any non-compliance with the foregoing, it shall promptly so notify the Indenture Trustee, the Administrative Agent, the Issuer, each Registered Pledgee, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty, and shall promptly take all action required to rectify such noncompliance.

(n) The Servicer shall perform all of its obligations under the Relevant Documents (as amended, supplemented and otherwise modified from time to time); provided that upon the occurrence and continuance of a Servicer Default or an Event of Default, the Servicer shall perform all obligations thereunder at the direction of the Global Requisite Majority.

(o) With respect to each Contract for an item of Equipment transferred by a Seller to the Trust, the Servicer shall state on each invoice to the User under such Contract that the Trust is the lessor under such Contract and the owner of the Equipment subject thereto. With respect to each re-lease of an item of Equipment transferred by a Seller to the Trust, the Servicer shall name the Trust as the lessor and the User as the lessee under such Contract.

(p) On or before the related Transfer Date and with respect to any re-lease, on or before the re-lease date, the Servicer shall deliver the original counterpart of the Contract that constitutes “chattel paper” for purposes of the UCC (with respect to Contracts evidenced by a master lease agreement and related schedules, the original of such Contract shall consist of the original manually executed schedule and a certified copy of the master lease agreement) or, if not 

 

 

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available, a true and complete photocopy (each such photocopy to be certified as a true and complete copy of the originally executed counterpart of such Contract) to the related Registered Pledgee or the Custodian as its bailee. Immediately upon delivering possession of the original counterpart of the Contracts to the related Registered Pledgee or the Custodian as its bailee, (x) the related Registered Pledgee or the Custodian as its bailee (at the instruction of such Registered Pledgee) (i) to the extent not already done, shall stamp on the front cover or other conspicuous space in each Contract the language set forth in Exhibit E and furnish a certificate in the form of Exhibit E of an officer of such Registered Pledgee (or the Custodian as its bailee) the Indenture Trustee, the Trust, the Administrative Agent, the Issuer and the Servicer that such stamping has been
effected, and (ii) shall furnish to the Servicer its agreement substantially in the form of Exhibit E that it is receiving possession of and holding possession of such Contracts both for its own benefit and as agent and (y) such Contracts and related Equipment shall have been released from the Lien of any security agreement in favor of any collateral agent or secured party other than as expressly contemplated by the Relevant Documents. At the request of such Registered Pledgee (acting at the written direction of the Global Requisite Majority), the Custodian as bailee of such Registered Pledgee shall immediately deliver possession of each requested Contract to such Registered Pledgee. In accordance with this Section 3.01(p), either such Registered Pledgee or the Custodian as its bailee shall at all times hold and maintain possession of the Contract that constitutes “chattel paper” for purposes of the UCC.

Section 3.02. Contract Amendments and Modifications. In performing its obligations hereunder, the Servicer may, acting in the name of the Issuer and the Trust and without the necessity of obtaining the prior consent of the Issuer, the Trustee, any Registered Pledgee, any Interest Rate Hedge Agreement or any Currency Hedge Counterparty, enter into and grant modifications, waivers and amendments to the terms of any Contract that would not reasonably be expected to have a material adverse affect, individually or in the aggregate, on the interests of any of the Issuer, the Indenture Trustee, the Administrative Agent, any Registered Pledgee, any Interest Rate Hedge Counterparty, any Currency Hedge Counterparty or the Noteholders in the Serviced Assets without
the consent of each such affected party.

Notwithstanding the foregoing provisions, the Servicer may:

(1) permit the extension of the time for payment of any Contract Payment under any Contract, which in the Servicer’s sole discretion, in accordance with the same manner in which it services leases and equipment held for its own account, would maximize recoveries on any Contract and the related Equipment; provided that the Servicer shall make a Servicer Advance with respect to such extended Contract Payment(s) prior to the Determination Date related to the Collection Period during which the Servicer grants such permission to extend, provided, further, that no such extension may (i) decrease the lease rate or rental per item of Equipment payable thereunder, (ii) decrease the frequency of
Contract Payments to less than once per calendar quarter, (iii) waive in total any Contract Payment due thereunder, or (iv) otherwise materially adversely affect the rights of the Trust, the Administrative Agent, the Indenture Trustee, any Registered Pledgee, the Issuer, any Noteholder, any Interest Rate Hedge Counterparty or any Currency Hedge Counterparty without the consent of each such affected party; and

 

 

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(2) permit termination of a Contract which does not otherwise provide for termination by requiring that the User pay to the Issuer, or that the Servicer pay to the Issuer, an amount not less than the Prepayment Amount.

In the event of any modification, waiver or amendment of any Contract in accordance with this Section 3.02, the Servicer, on a monthly basis, in conjunction with the delivery of the Servicer Report, will furnish to the Issuer, the Trust, the Indenture Trustee, the Custodian, the Administrative Agent and each Registered Pledgee with a copy of such modification, waiver or amendment, together with a certificate of a Servicing Officer stating that such modification, waiver or amendment is permitted by the provisions of this Section 3.02.

Section 3.03. Contract Defaults; Remarketing; Residual Proceeds. (a) Upon receipt of notice from the Trust, the Administrative Agent,  the Issuer, any Registered Pledgee, the Indenture Trustee or any other Person, or if the Servicer otherwise learns, that the User under any Contract is in default thereunder, the Servicer will take such action as is appropriate and consistent with the Servicing Standard, including such action as may be necessary to cause, or attempt to cause, the User thereunder, to cure such default (if the same may be cured) or to terminate or attempt to terminate such Contract and to recover, or attempt to recover, all damages resulting from such default to the extent permitted under such Contract and under applicable law. The
Servicer is hereby authorized to commence in its own name, or in the name of the Trust, the Issuer, or prior to the occurrence of an event of default under the Indenture or a Servicer Default, the Indenture Trustee (as the case may be), a legal proceeding to enforce a Contract or to participate in any other legal proceeding (including a bankruptcy proceeding) relating to or involving a Contract, a User or an item of Equipment.

(b) The Servicer shall promptly submit a claim under the Physical Damage Equipment Insurance Policy and/or Commercial General Liability Insurance Policy, as the case may be, in accordance with the guidelines set forth in Section 3.01(k) hereof.

(c) The Servicer will use efforts consistent with the Servicing Standard to re-lease or remarket (or, if applicable, sell) any Equipment and any related Contract, for which the term of the existing lease has terminated (whether by expiration, default or otherwise) in a timely manner, consistent with the Servicer’s administration of similar leased equipment held for its own account, consistent with the customary practices of servicers in the industry and, in any event, exercising its reasonable judgment, in the best interests of the Noteholders, the Interest Rate Hedge Counterparty and the Currency Hedge Counterparty and upon reasonable terms and conditions, so as to maximize the net present value of the total future proceeds of such Equipment.

(d) In the event that the Servicer is required to remarket any item of Equipment pursuant to the provisions of this Section 3.03 at a time when the Servicer is trying to lease or sell other similar items of equipment, the Servicer will not disfavor such Equipment or any such other similar item of equipment in its remarketing efforts.

(e) If the Servicer enters into a lease agreement as the result of the remarketing activities conducted pursuant to this Section 3.03, then the Servicer shall promptly, and in any 

 

 

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event within five Business Days after receiving an executed copy of such lease agreement, deliver to the Registered Pledgee or the Custodian as bailee, the original counterpart of such lease agreement that constitutes “chattel paper” as defined in the Uniform Commercial Code and a true copy thereof and stamp such lease agreement in accordance with the terms hereof. Any originally executed Contract that constitutes “chattel paper” as defined in the Uniform Commercial Code and is in the possession of the Servicer shall be promptly, and in any event within five Business Days, delivered to the Indenture Trustee or the Custodian as designated bailee. 

Section 3.04. Costs of Servicing: Servicing Fee. (a) All costs of servicing the Serviced Assets in the manner required by this Agreement shall be borne by the Servicer, but the Servicer shall be entitled to retain, out of any amounts actually recovered by the Servicer in the performance of its obligations under Section 3.03 hereof with respect to any Serviced Asset, the Servicer’s actual out-of-pocket Operating Expenses reasonably incurred in the course of such performance with respect to such Serviced Asset. For purposes of this Section 3.04, the Servicer’s “out-of-pocket Operating Expenses” means only those expenses incurred to non-Affiliated third parties (e.g., outside counsel in a collection suit) and shall not include salaries, operating costs, overtime wages and other such “overhead” costs or expenses of the Servicer or its Affiliates, and shall not include expenses of, or payments to, any subservicer. The fees and expenses paid to a third party agent that is not an Affiliate of the Servicer used to remarket Equipment shall be included as an “out-of-pocket” expense.

(b) As compensation to the Servicer for its servicing of the Serviced Assets, the Issuer will pay to the Servicer on each Payment Date an amount equal to the product of (i) the number of days elapsed during the immediately preceding Collection Period, (ii) forty-four cents ($0.44) and (iii) the average number of items of Equipment during the immediately preceding Collection Period (such product, the “Servicing Fee”); provided that the Servicing Fee for the initial Payment Date shall be equal to the product of (i) the number of days elapsed from the Closing Date until the end of the Collection Period immediately preceding the initial Payment Date, (ii) forty-four cents ($0.44) and
(iii) the average number of items of Equipment during the period from the Closing Date until the end of the Collection Period immediately preceding the initial Payment Date; provided further that upon the appointment of a successor Servicer, the Servicing Fee will be an amount agreed to by the Global Requisite Majority. The Servicing Fee shall be payable from funds on deposit in the Collection Account in accordance with the terms of, and subject to the priorities set forth in, Section 3.02 of the Indenture.

Section 3.05. Other Transactions. Nothing in this Agreement shall preclude the Servicer from entering into other leases or other financial transactions, which are not part of the Serviced Assets, with any User or any other Person, or selling or discounting any such other lease with any Person, or engaging in any other activities not specifically in the name of the trustee prohibited hereunder or under applicable law; provided, however, that as provided in Section 3.03(d) hereof, the Servicer shall not favor any chassis owned by it, as against the Equipment, in any such transactions.

Section 3.06. Collection of Moneys; No Set-Off. (a) The Servicer shall direct all Users on or before the Series Issuance Date specified in the related Supplement to the Indenture or the 

 

 

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related Transfer Date (as the case may be) to send all amounts due with respect to the Serviced Assets, to the Master Lockbox Account. The Servicer shall identify all amounts relating to an item of Equipment, the related Contract or other Serviced Assets. Prior to the occurrence of an Amortization Event, an Event of Default or a Servicer Default, and as long as no shortfall in Available Funds (for application pursuant to the Indenture) would exist as of the immediately following Determination Date the Servicer, subject to Section 3.01 of the Indenture, may withhold (and remit to itself) all amounts then payable to it. Notwithstanding anything to the contrary in the Intercreditor Agreement, the Servicer shall, subject to its rights under the immediately preceding sentence, direct the deposit of all amounts received, or any amount equal to all amounts received, with respect to the Serviced
Assets, into the Collection Account no later than the third (3rd) Business Day after such amounts were deposited into and such amounts become available in the Master Lockbox Account; provided that upon the occurrence of any of an Amortization Event, an Event of Default or a Servicer Default, unless waived by the Global Requisite Majority is satisfied, the Servicer shall not have the right to withhold (and remit to itself) any such amounts then payable to it or to withdraw any amounts on deposit in any Securities Account  and all future funds received with respect to the Serviced Assets shall be automatically swept to the Collection Account within three Business Days after the receipt thereof. Pending deposit of such funds into the Collection Account, such funds will, upon identification thereof, be segregated from the general funds of the Servicer and will be deemed to be held in trust by the Servicer for
the benefit of the Indenture Trustee. 

(b) The Servicer’s obligations hereunder to deposit, or cause to be deposited, any amount into the Master Lockbox Account and/or Collection Account or any Securities Account shall be absolute and unconditional and, except for the Servicer’s right pursuant to Section 3.06(a) to withhold amounts payable to it, all payments thereof shall be made free and clear of and without any deduction for or on account of any set-off or counterclaim or any circumstance, recoupment, defense or any other right which the Servicer may have against the Issuer, the Trust, or any other Person for any reason whatsoever (whether in connection with the transaction contemplated hereby, any other transactions or for any other reason whatsoever), including, without limitation, (i) any defect in title, condition, design or fitness for use of, or any Equipment or loss or destruction of any
Equipment, (ii) any insolvency, bankruptcy, dissolution, reorganization or similar proceeding by or against the Servicer, the Issuer, the Trust or any other Person, or (iii) any other circumstance, happening or event whatsoever, whether or not unforeseen or similar to any of the foregoing.

(c) All payments hereunder shall be made in Dollars by wire transfer of immediately available funds prior to 11:00 a.m. (New York City time) on the date of payment.

Section 3.07. Resignation and Removal of Servicer. (a) Subject to the provisions of Section 7 hereof, Interpool, Inc. shall not resign as the initial Servicer except upon a determination that its duties hereunder are no longer permissible under applicable law. Any such determination shall be evidenced by an opinion of independent counsel, in form and substance satisfactory to the Global Requisite Majority, to such effect delivered to the Indenture Trustee.

(b) Except as provided in Section 7.02 hereof, the Servicer shall not be removed or be replaced as Servicer with respect to any Serviced Asset.

 

 

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(c) No resignation or removal of the Servicer shall in any event (i) become effective until the successor Servicer shall have assumed the Servicer’s servicing responsibilities and obligations in accordance with Section 7.02 hereof, or (ii) affect the Servicer’s obligations under this Agreement that arose on or prior to the effective date of such resignation or removal.

(d) The terminated Servicer agrees to cooperate with the successor Servicer in effecting the termination of the responsibilities and rights of the terminated Servicer under this Agreement, including the transfer to the successor Servicer for administration by it of all money and property held by the Servicer with respect to the Equipment, the Contracts, the other Serviced Assets and the other records relating to the Serviced Assets, including any portion of the related Contract Files held by the Servicer. At any reasonable time, upon reasonable notice, and from time to time during normal business hours, the Servicer shall permit any successor Servicer or any agent, representative or employee thereof, reasonable access to Servicer’s personnel, computer records, facilities/premises in order to facilitate the orderly and efficient transfer of servicing duties.

Section 3.08. Security Deposits. The Servicer shall hold each Security Deposit received by it pursuant to a Contract in trust and for the benefit of the Trust, the Issuer, the Indenture Trustee and their respective assigns. Upon receipt of any Security Deposit pursuant to a Contract, the Servicer shall deposit (or cause to be deposited) each such Security Deposit into the Security Deposit Account as soon as possible (but in any event within three Business Days) after its receipt thereof. In the event of any bankruptcy or insolvency proceeding of a User or other litigation involving the User where the User is permitted to use the Equipment subject to such Contract without timely payment of the minimum monthly or other periodic contractual payment to be
made by such User for the use of such Equipment in accordance with the terms of such Contract, the Servicer shall deposit any such Security Deposit into the Collection Account at such times and in such amounts to satisfy the timely payment of such minimum monthly or other periodic payment.

Section 3.09. Grant of License. Interpool grants and the Issuer accepts a non-exclusive license to load, copy, execute, access, employ, utilize, store or display PoolStat, the related documentation (in any medium, which is delivered to the Issuer, including Interpool’s manuals, training materials, program listings, data models, flow charts, logic diagrams, functional specifications, instructions, and complete or partial copies of the foregoing), other related proprietary information and third-party database software licensed to Interpool (if any) solely for use, upon the occurrence and continuance of a Servicer Default, in connection with the servicing and administration of the Serviced Assets. This license permits the Issuer to sublicense and/or
authorize the use of PoolStat by any successor Servicer subject to the terms and conditions of this Section 3.09. The Issuer acknowledges and each sublicense or user of PoolStat shall acknowledge that ownership of and title in and to all intellectual property rights, including patent, trademark, service mark, copyright, and trade secret rights, in PoolStat are and shall remain in Interpool and its licensors. Each of the Issuer, each sublicensee and each user acquires only the right to use (i.e., load, copy, execute, access, employ, utilize, store or display) PoolStat and does not acquire any ownership rights or title in or to PoolStat and that of Interpool’s licensors. None of the Issuer, any sublicensee and any user shall copy, translate, disassemble, or decompile, nor create or attempt to create, by reverse engineering or otherwise, the source code from the object code of PoolStat. Each of the Issuer, each sublicensee and each user agrees to 

 

 

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take all reasonable steps and the same protective precautions to protect PoolStat from disclosure to Interpool’s Competitors as with its own proprietary and confidential information, except to any successor Servicer whose access is necessary to enable such successor Servicer to fulfill its responsibilities and obligations hereunder and to exercise its rights hereunder. The Issuer agrees that prior to disclosing, sublicensing or authorizing the use of PoolStat to any successor Servicer, it will obtain from that such successor Servicer a written acknowledgment that such successor Servicer will be bound by the same terms as specified in this Section 3.09 with respect to PoolStat.

SECTION 4. SERVICER ADVANCES AND OTHER PAYMENTS

Section 4.01. Servicer Advances. (a) On any Determination Date that the funds on deposit in the Master Lockbox Account, the Collection Account, any other Securities Account or any other account established in respect of the Secured Obligations are insufficient as of the related Cut-off Date to pay the amounts due and owing on the related Payment Date under Article III of the Indenture, the Servicer may, at its option, remit to the Indenture Trustee, in such manner as will ensure that the Indenture Trustee will have immediately available funds on account thereof by 11:00 a.m. New York time on the first Business Day prior to each Payment Date, an amount not to exceed the sum of all Contract Payments due during the preceding Collection Periods for
which the related Users have not remitted such payment on or prior to the related Determination Date and for which the Servicer reasonably believes in its good faith judgment not to be a Nonrecoverable Advance. Under no circumstances shall this Section 4.01 be interpreted as obligating the Servicer to make a Servicer Advance with respect to any Contract, including, without limitation, (i) any Defaulted Contract or (ii) any Contract that is liquidated prior to such Determination Date.

(b) The Servicer shall be reimbursed for Servicer Advances on each Payment Date from amounts on deposit in the Collection Account, subject to the priority of payments set forth in Section 3.02 of the related Indenture, as follows: (i) for any Servicer Advance made with respect to a Delinquent Contract, from any subsequent collections and/or Collections (as the case may be) received from such Delinquent Contract and (ii) for any Nonrecoverable Advance, from Collections received on any of the Serviced Assets.

Section 4.02. Direct Operating Expenses. The Servicer shall be reimbursed for any Direct Operating Expenses not already reimbursed to the Servicer, in accordance with the priorities set forth in Section 3.02(b) of the Indenture; provided that the Servicer shall, if requested, provide to the Indenture Trustee, the Administrative Agent, and each Registered Pledgee, any and all invoices and receipts evidencing such Direct Operating Expenses.

Section 4.03. Limitation on Liability of the Servicer. None of the directors, officers, employees or agents of the Servicer shall incur any liability to any noteholders, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty, the Indenture Trustee, any Subservicer, the Trustee, any Custodian or any of their respective parents, affiliates, subsidiaries, directors, officers, employees and agents, together with their successors and permitted assignees, for any action taken or not taken in good faith pursuant to the terms of this Agreement with respect to any Contract (including any Defaulted Contract), item of Equipment or other Serviced 

 

 

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Asset; provided, however, that this provision shall not protect such persons for any liability which would otherwise be imposed (i) for any action or inaction resulting from willful misconduct, bad faith, negligence (including negligence with respect to the obligations hereunder) or reckless disregard in the performance of the duties hereunder or (ii) as the result of any violation of law by the Servicer in performing its duties hereunder.

Section 4.04. Payment Advices. Each payment by the Servicer pursuant to any of the provisions of this Agreement shall be accompanied by written advice containing sufficient information to identify (i) the Contract and/or Equipment to which such payment relates or (ii) the Relevant Documents and the relevant provisions thereto pursuant to which such payment is made.

SECTION 5. REPORTS AND OTHER INFORMATION TO BE PROVIDED BY SERVICER

Section 5.01. Monthly Reports and other Requested Information. (a) By 11:00 a.m. on each Determination Date, the Servicer shall deliver to the Trust, the Issuer, the Indenture Trustee (for distribution to the beneficiaries of the security interest in favor of the Indenture Trustee), each Registered Pledgee (for distribution to the beneficiaries of the security interest in favor of such Registered Pledgee) and the Administrative Agent all of the following: (i) a Servicer Certificate, substantially in the form of Exhibit A hereto, (ii) a Servicer Report (with the Borrowing Base Certificate and Servicer Certificate attached thereto or incorporated therein) (each a “Servicer
Report”) setting forth, inter alia, a calculation of the Interpool Fleet Utilization and such other performance data and financial covenants required by the Relevant Documents, substantially in the form of Exhibit A hereto. On each Determination Date, the Servicer shall deliver to the Trust, the Issuer, the Indenture Trustee, the Administrative Agent and each Registered Pledgee, a Statement of Cash Reconciliation, substantially in the form of Exhibit C hereto, and the Tape; provided that upon receipt of a written request from a Noteholder, the Indenture Trustee may deliver the Statement of Cash Reconciliation for the related Determination Date to such Noteholder; provided further that, upon receipt
of a written request from Noteholders representing at least 51 percent of the aggregate outstanding principal balance of all Notes, the Indenture Trustee shall deliver the Tape for the related Determination Date to such Noteholders. 

(b) [Reserved.]

(c) [Reserved.]

(d) The Servicer shall also promptly deliver to the Noteholders, the Indenture Trustee, the Administrative Agent, each Registered Pledgee, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty and the Control Parties any additional information regarding the Serviced Assets as any of them may reasonably request.

Section 5.02. Annual Independent Certified Public Accountant’s Report. The Servicer shall cause an Independent Accountant who may also render other services to the Servicer or a Seller, to deliver to the Indenture Trustee (for distribution to the beneficiaries of the security interest in favor of the Indenture Trustee), the Issuer, the Trust, the Administrative Agent and 

 

 

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each Registered Pledgee (for distribution to the beneficiaries of the security interest in favor of such Registered Pledgee) and each Noteholder, on or before 120 days after the end of the Servicer’s fiscal year, beginning on December 31, 2007, with respect to the twelve months ended on the preceding December 31 (or other applicable fiscal year end date if other than December 31) (or such other period as shall have elapsed from the Closing Date to the date of such statement), a report (the “Accountant’s Report”) addressed to the board of directors of the Servicer, the Indenture Trustee, each Registered Pledgee, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty and the Noteholders under the Indenture, to the effect that (1) such Independent Accountant has
audited the books and records of the Servicer, (2) in connection with such Independent Accountant’s audit of the Servicer, there were no exceptions or errors in records related to equipment or equipment leases serviced by the Servicer except for such exceptions as such Independent Accountant shall believe to be immaterial and such other exceptions as shall be set forth in such report and (3) such Independent Accountant has performed certain other procedures as agreed to by the Indenture Trustee and the Global Requisite Majority, which procedures shall include the Independent Accountant obtaining the Servicer Report for any two months during the twelve months ending on the immediately preceding December 31 and for each such Servicer Report the Independent Accountant shall reconcile the amounts in the Servicer Report to the Servicer’s computer, accounting and other reports which will include in such report any amounts which were not reconciled; provided that upon the occurrence of an Amortization Event or an event of default under any Indenture, the Global Requisite Majority shall have the right to require that such procedures be performed monthly by a firm of Independent Accountants selected by the Global Requisite Majority and that such report be delivered monthly.

Section 5.03. Tax Reporting. The Servicer shall furnish or cause to be furnished to the Indenture Trustee and Person who was a beneficiary of the security interest in favor of the Indenture Trustee at any time during such year (with a copy in each instance to the Administrative Agent), within a reasonable time after the end of each calendar year (but in no event later than 60 days after the end of such calendar year), a report setting forth the amount of principal and interest paid on the notes issued pursuant to each Indenture and outstanding during such year and indicating such other customary factual information as the Servicer deems necessary, or as any such Person reasonably requests from time to time, to enable such Person to prepare its tax
returns. In addition, if any note is issued under the Indenture with any original issue discount (“OID”) as defined in the Code, the Servicer shall provide or cause to be provided to the IRS and the noteholders of such class of notes information statements with respect to OID as required by the Code or as such noteholders may reasonably request from time to time.

Section 5.04. Officer’s Certificates. With each set of financial statements delivered pursuant to Sections 6.04(a) and 6.04(b) hereof, the Servicer will deliver to the Issuer, the Trust, the Indenture Trustee, the Administrative Agent, each Registered Pledgee, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty an Officer’s Certificate stating that (i) the officer signing such Officer’s Certificate has reviewed the relevant terms of this Agreement and has made, or caused to be made under such officer’s supervision, a review of the activities of the Servicer during the period covered by the statements then being furnished, (ii) the review has not disclosed the existence of any Servicer Default or,
if a Servicer Default exists, describing its nature and what action the Servicer has taken and is taking with respect

 

 

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thereto, and (iii) on the basis of such review, the officer signing such certificate is of the opinion that during such period the Servicer has serviced the Serviced Assets in compliance with the procedures hereof, except as described in such Officer’s Certificate.

SECTION 6. COVENANTS OF THE SERVICER

Section 6.01. Corporate Existence of the Servicer; Merger and Sale of Assets. (a) The Servicer will keep in full force and effect its existence, rights and franchise as a corporation under the laws of its jurisdiction of incorporation and will preserve its qualification to do business as a foreign corporation in each jurisdiction in which such qualification is necessary to protect the validity and enforceability of any Serviced Asset or to permit performance of the Servicer’s duties under this Agreement. The Servicer will comply with all of its company, organizational and managerial procedures required by its formation documents and applicable law including, without limitation, (A) paying when due all taxes imposed on it and
(B) complying with the rules of the United States Department of Transportation and the Environmental Protection Agency. The Servicer will not cease to engage in the activities of an equipment, vehicle and Chassis leasing company so long as it continues to act as Servicer hereunder.

(b) The Servicer shall not merge, consolidate with or sell substantially all of its assets to any other Person unless (x) the surviving entity, if not the Servicer (a) is organized under the laws of the United States (or any political subdivision thereof), (b) has its principal place of business in the United States, (c) is capable of performing all the obligations of Servicer hereunder, and (d) executes and delivers to the Issuer, the Trust, the Indenture Trustee, the Administrative Agent, each Registered Pledgee, each Currency Hedge Provider, and each Interest Rate Hedge Counterparty, in form and substance reasonably satisfactory to each such party, an instrument in writing expressly assuming all the obligations of the Servicer hereunder and under the other Relevant Documents and (y) after giving effect to such transaction, no Servicer Default or
Potential Servicer Default shall have occurred; provided, however, that, except as specifically set forth above, (i) any Person succeeding to the business of the Servicer shall be the successor of the Servicer hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding, (ii) nothing contained herein shall be deemed to release the Servicer from any obligation in the event that the Servicer continues to exist after the consummation of such transaction and (iii) the successor or surviving person to the Servicer (if not the Servicer) shall execute such agreements evidencing such succession and assumption as the Issuer, the Trust, the Indenture Trustee, each beneficiary of the Indenture Trustee’s security interest or the Global Requisite Majority may reasonably request.

The Servicer shall provide 30 days’ prior written notice of any merger, consolidation or succession pursuant to this Section 6.01 and any change in its name, jurisdiction of incorporation or type of organization to the Issuer, the Trust, each Registered Pledgee, each beneficiary of the security interest in favor of such Registered Pledgee, the Administrative Agent, the Indenture Trustee and each beneficiary of the security interest in favor of the Indenture Trustee. Notwithstanding the foregoing, the Servicer shall not merge or consolidate with any other Person or permit any other Person to become a successor to the Servicer’s business, unless 

 

 

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(x) immediately after giving effect to such transaction, none of the covenants made pursuant to Section 6.02 shall have been breached (for purposes hereof, such covenants shall speak as of the date of the consummation of such transaction) and no event that, after notice or lapse of time, or both, would become a Servicer Default, an Amortization Event (other than a Change of Control of the Servicer) or an event of default under the Indenture shall have occurred and be continuing and (y) the Servicer shall have delivered to the Issuer, the Trust, the Indenture Trustee, each beneficiary of the security interest in favor of the Indenture Trustee, the Administrative Agent, each Registered Pledgee and each beneficiary of the security interest in favor of such Registered Pledgee an Opinion of Counsel, stating in the opinion of such counsel, either (A) all financing statements and
continuation statements and amendments thereto have been executed and filed that are necessary to preserve and protect the interest of the Trust in the Equipment, the Contracts and the other Serviced Assets, and the interest of the Indenture Trustee in the collateral Granted pursuant to the Indenture and reciting the details of the filings or (B) no such action shall be necessary to preserve and protect such interests.

Section 6.02. Covenants with Respect to Contracts and Equipment. By its execution and delivery of this Agreement, the Servicer makes the following covenants on which the Indenture Trustee relies in authenticating the related notes and each beneficiary of the security interest in favor of the Indenture Trustee relies in entering into its Relevant Documents:

(a) Protection of Security Interest. The Servicer shall at its own expense take such steps as are necessary or desirable to establish and maintain the interest of the Trust in the Serviced Assets and a valid and enforceable first priority perfected security interest of the Indenture Trustee in the collateral Granted to it, free and clear of Liens (except for Permitted Liens), including, without limitation, the filing of UCC-1 Financing Statements, amendments and continuation statements or other filings in all applicable filing offices and taking such other action to perfect, protect or more fully evidence the lien of the Indenture as requested from time to time; provided, however, that this provision shall
not obligate the Servicer to discharge any Lien that a User is obligated to discharge as described in Section 6.02(d) below. The Servicer agrees promptly to indicate to all parties inquiring as to the true ownership of any Equipment, Contract or other Serviced Asset owned by the Issuer or the Trust, that the Issuer or the Trust, as appropriate, is the owner of such asset and the Servicer will not claim any ownership interest in any such Serviced Assets. The Servicer shall not record any lien on any Certificate of Title for any item of Collateral, except as expressly permitted by the Relevant Documents (unless such item of Collateral has been released from the lien of the Indenture in accordance with the terms and conditions of the Relevant Documents). The Servicer shall not release or assign any Lien in favor of the Indenture Trustee on any Equipment, Contract or other Serviced Asset except as expressly provided in the Relevant Documents;

(b) No Impairment. Except as otherwise permitted herein, the Servicer shall do nothing to impair the rights in any material respect of the Issuer, the Trust, the Indenture Trustee, any beneficiary of the security interest in favor of the Indenture Trustee, the Administrative Agent, any Registered Pledgee or any beneficiary of the security interest in favor of such Registered Pledgee in any Serviced Assets;

 

 

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(c) No Amendments. The Servicer shall not extend or otherwise amend the terms of any Contract, except in accordance with Section 3.02;

(d) Restrictions on Liens. The Servicer shall not (i) create, incur or suffer to exist, or agree to create, incur or suffer to exist, or consent to cause or permit in the future (upon the happening of a contingency or otherwise) the creation, incurrence or existence of, any Lien (arising by, through or under the Servicer or an Affiliate thereof) or restriction on transferability of any Contract, item of Equipment or other Serviced Asset except for Permitted Liens, those created by the Relevant Documents, and the restrictions on transferability imposed by the Trust Agreement or the Indenture; or (ii) sign or file any Financing Statement which names the Servicer, in its capacity as Servicer hereunder, as a debtor, or sign any security agreement authorizing any secured party
thereunder to file such Financing Statement, with respect to any Equipment, the related Contract or any other Serviced Assets, except in each case any such instrument solely securing the rights and preserving the Lien of the Indenture Trustee, for the benefit of the beneficiaries of the Indenture Trustee’s security interest and the Lien of a Registered Pledgee, for the benefit of the beneficiaries of such Registered Pledgee’s security interest;

(e) Servicing of Contracts and Equipment. The Servicer shall service the Equipment, each related Contract and the other Serviced Assets as required by the terms of this Agreement in accordance with the Servicing Standard and shall not take any action or omit to take any action that would cause the Trust or the Issuer to fail to timely perform and comply with all provisions, covenants and other promises required to be observed by the Trust under the Contracts and any related Contract Files or the Issuer under the Relevant Documents; 

(f) Concentration Limits. The Servicer shall at all times maintain the Concentration Limits; provided, however, that the Servicer shall not be required to maintain that portion of the Concentration Limits that is not satisfied as a result of losses in respect of Contracts that are uncollectible on account of the insolvency, bankruptcy or lack of creditworthiness of the related User or would constitute recourse to Interpool for losses in respect of uncollectible receivables; and

(g) Contract Files. The Servicer hereby acknowledges that the Custodian shall hold each Contract File in its possession and any other Serviced Assets that it may from time to time receive solely in trust for the Indenture Trustee. The Servicer shall from time to time inquire whether the Custodian is holding each Contract File and such other Serviced Assets in accordance with the Servicing Standard (as such standard applies to servicers acting as custodial agents) and shall promptly report any failure to do so to each of the Issuer, the Administrative Agent, the Indenture Trustee, each Noteholder, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty and each Registered Pledgee. In so acting, the Servicer hereby agrees that it shall not have or assert any beneficial
interest in the Equipment, the Contracts, the Contract Files or any other Serviced Assets. The Servicer shall maintain any Contract Files not held by the Custodian or the Indenture Trustee at its office at 211 College Road East, Princeton, New Jersey or at such other location as shall from time to time be identified by not less 

 

 

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than 30 days’ prior written notice to the Administrative Agent and each Registered Pledgee and as to which all actions contemplated by Section 6.02(a) and 6.02(b) have been accomplished. The Servicer shall keep, or cause to be kept, all such Contract Files in a secure and fireproof location (and otherwise preserve and protect, or cause to be preserved and protected, such Contract Files in the same manner as other material documents and records of the Servicer and in accordance with the Servicing Standard).

(h) Canadian and Mexican Equipment. The Servicer will periodically (but in no event less often than annually) determine whether additional actions should be taken to register, maintain and/or evidence the Trust’s ownership of Equipment located in Canada and Mexico (including, without limitation, complying with Applicable Laws regarding Certificates of Title) and will complete all such additional actions within 30 days after first being aware of such actions.

Section 6.03. Purchase of Equipment, Etc. by Servicer Upon Breach of Covenants. (a) Upon breach of any of the covenants set forth in Section 6.02, the affected Equipment shall not be Eligible Equipment and the affected Contracts shall not be Eligible Contracts. Upon discovery by the Servicer of a breach of any of the covenants set forth in Section 6.02, the Servicer shall give prompt written notice to the Issuer, the Trust, the Administrative Agent, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty, the related Registered Pledgee and the Indenture Trustee; provided, however, that the failure to give any such notice shall not affect any
obligation of the Servicer under this Section 6.03. As of the first Determination Date (or if such Determination Date is less than five Business Days from the date of discovery or receipt of notice, the second Determination Date) following its discovery or receipt of notice of any breach of any covenant set forth in Section 6.02 which materially and adversely affects the interests of the Issuer, the Indenture Trustee, the Registered Pledgee or the Trust in any Equipment, Contract or other Serviced Asset, the Servicer may, unless such breach shall have been cured in all material respects by such Determination Date, purchase or cause the purchase, from the related UTI or SUBI to which such Equipment and Contract are allocated, the beneficial interest in, to and under the affected Equipment (including the related Contract) affected by such breach and, on such Determination Date, the Servicer shall in any event pay the Prepayment Amount and deposit such amount into the
Collection Account. In consideration of and simultaneously with the purchase of each affected item of Equipment, the Issuer shall, and shall cause the Trust to, reallocate such beneficial interest in, to and under the affected Equipment (including the related Contract) from the affected SUBI Portfolio to a SUBI or the UTI (as designated by the Servicer) and simultaneously pay the related Prepayment Amount. As of the date of such reallocation, the related Certificate shall no longer represent the beneficial ownership of such Equipment and the related Contract. Unless otherwise expressly stated in Section 6.02, the sole remedy of the Trust, the Issuer, the Indenture Trustee and each beneficiary of the Indenture Trustee’s security interest upon a breach by the Servicer of Section 6.02 shall be to require the Servicer to reallocate the applicable Equipment and the related Contract and other Related Assets in respect of which such breach occurred, pursuant to this
Section 6.03 and to make the foregoing deposit of the Prepayment Amount to the Collection Account. The Issuer shall, or shall cause the Trust and the Indenture Trustee, to promptly notify, in writing, the Servicer, the Administrative Agent, each Registered Pledgee and each beneficiary of the Indenture Trustee’s security interest, of any failure by the Servicer to take any action under this 

 

 

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Section 6.03 to the extent that the Issuer, the Trust or any affiliate thereof has actual knowledge of such failure.

(b) For affected Equipment subject to clause (a) above, the Servicer may from time to time cause to be purchased from the related SUBI the beneficial interest in, to and under any item of Equipment that is not Eligible Equipment (including the related Contract) and cause any such item of Equipment that is not Eligible Equipment to be transferred to another SUBI Portfolio or the UTI Portfolio. On the related date of determination, the SUBI Portfolio or UTI Portfolio, as the case may be, purchasing the beneficial interest in, to and under such item of Equipment that is not Eligible Equipment (and the related Contract) shall pay the related Prepayment Amount and the Servicer shall deposit such Prepayment Amount into the Collection Account. Notwithstanding the foregoing, any repurchase under this Section 6.03(b) shall be in compliance with the Concentration Limits. As of
the date of such reallocation, any such item of Equipment that is not Eligible Equipment and the related Contract shall cease to be the assets of the related SUBI to which such item of Equipment that is not Eligible Equipment and each related Contract were allocated and shall become the assets of the UTI or the SUBI Portfolio(s) designated by the Servicer and from such date, the related Certificate pledged hereunder (to which such item of Equipment that is not Eligible Equipment and Contract were allocated) shall no longer represent the beneficial ownership of such item of Equipment that is not Eligible Equipment and such related Contract.

Section 6.04. Financial and Business Information. The Servicer will deliver to the Issuer, the Indenture Trustee, each Interest Rate Hedge Counterparty, the Administrative Agent, each Registered Pledgee and each Currency Hedge Counterparty  (provided that to the extent that any such Person serves in multiple capacities hereunder or any other Relevant Document, it shall only be entitled to one copy of the following):

(a) Quarterly Reports. (i)  No later than December 29, 2007 with respect to the fiscal quarter ending September 30, 2007 and (ii) within the 60 day period immediately following the end of each of Interpool’s first three fiscal quarters in any fiscal year (i.e., March, June and September), beginning on March 31, 2008, unaudited consolidated balance sheet and income statement of Interpool and its consolidated subsidiaries;

(b) Annual Statements. Within the 120 day period immediately following the end of each fiscal year of Interpool (i.e., December 31), two copies of:

(i) audited consolidated and unaudited consolidating balance sheets of Interpool and its consolidated subsidiaries, at the end of such fiscal year, and

(ii) audited consolidated and unaudited consolidating statements of income, retained earnings and cash flows of Interpool and its consolidated subsidiaries for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and, in the case of the financial statement referred to in clause (i) above, accompanied by an opinion of a firm of Independent Accountants, stating that such financial statements present 

 

 

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fairly the financial condition of Interpool and its consolidated subsidiaries and have been prepared in accordance with GAAP (except for changes in application in which such accountants concur and footnote), and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards;

(c) Notice of Servicer Default. Immediately upon becoming aware of the existence of any condition or event which constitutes a Servicer Default or which, with notice and lapse of time, would become a Servicer Default, a written notice describing its nature and period of existence and what action the Servicer is taking or proposes to take with respect thereto;

(d) SEC and Other Reports. If applicable, promptly upon their becoming available, one copy of each report (including Interpool’s and, if existing, the Servicer’s annual report to shareholders and reports on Form 10-K and 10-Q), definitive proxy statement, registration statement (upon its becoming effective), definitive prospectus and notices Interpool and the Servicer filed with or delivered to any securities exchange or the Securities and Exchange Commission or any successor agency; and

(e) Report on Proceedings. Promptly upon the Servicer’s becoming aware of:

(i) any threatened or pending investigation of it by any Governmental Authority or agency, or

(ii) any threatened or pending court or administrative Proceeding which individually or in the aggregate involves the possibility of materially and adversely affecting a material portion of the Serviced Assets or the business or conditions (financial or otherwise) of the Servicer, a written notice specifying the nature of such investigation or proceeding and what action the Servicer is taking or proposes to take with respect thereto and evaluating its merits.

(f) Credit Standards. Neither the Issuer nor the Trust shall adopt a credit policy or collection policy inconsistent with the Servicer’s Credit Policy. Not less than 30 calendar days prior to any change in the Servicer’s Credit Policy (or, if adopted, the Credit Policy or collection policy of the Issuer or the Trust), written notice of each such change and the reasons for making each such change.

(g) Other Requested Information. As promptly as possible, any data, information and reports regarding the Equipment, the Contracts and the other Serviced Assets reasonably requested by the Administrative Agent, the Issuer, any Registered Pledgee, any Noteholder, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty or the Indenture Trustee.

Section 6.05. No Bankruptcy Petition Against the Trust or the Issuer. (a) The Servicer covenants and agrees it will not, prior to the date that is one year and one day after the payment in full of all amounts owing pursuant to the Indenture and the other Relevant Documents, 

 

 

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institute against, or join any other Person in instituting against, any of the Trust or the Issuer or any Special Purpose Entity formed pursuant to a Financing or pursuant to the Relevant Documents, any bankruptcy, reorganization, receivership, arrangement, insolvency or liquidation proceedings or other similar proceedings under any applicable bankruptcy, insolvency or similar law. The Servicer covenants and agrees it will not, prior to the date that is one year and one day since the last day on which any indebtedness of any Bankruptcy Remote Noteholder (and its successors and assigns) shall have been outstanding, institute against, or join any other Person in instituting against such Bankruptcy Remote Noteholder (and its successors and assigns), any bankruptcy, reorganization, receivership, arrangement, insolvency or liquidation proceedings or other similar proceedings under any applicable
bankruptcy, insolvency or similar law. The provisions of this Section 6.05(a) shall survive the termination of this Agreement.

(b) The Subservicer covenants and agrees it will not, prior to the date that is one year and one day after the payment in full of all amounts owing pursuant to the Indenture and the other Relevant Documents, institute against, or join any other Person in instituting against, any of the Trust or the Issuer or any Special Purpose Entity formed pursuant to a Financing or pursuant to the Relevant Documents, any bankruptcy, reorganization, receivership, arrangement, insolvency or liquidation proceedings or other similar proceedings under any applicable bankruptcy, insolvency or similar law. The Subservicer covenants and agrees it will not, prior to the date that is one year and one day since the last day on which any indebtedness of the related Bankruptcy Remote Noteholder (and its successors and assigns) shall have been outstanding, institute against, or join any other Person in
instituting against such Bankruptcy Remote Noteholder (and its successors and assigns), any bankruptcy, reorganization, receivership, arrangement, insolvency or liquidation proceedings or other similar proceedings under any applicable bankruptcy, insolvency or similar law. The provisions of this Section 6.05(b) shall survive the termination of this Agreement.

Section 6.06. Inspection and Audit Inspections. (a) Upon reasonable notice to the Servicer specifying the particulars of each request and subject to appropriate and reasonable confidentiality covenants, the Servicer shall permit the representatives of the Administrative Agent and the Initial Noteholders and their duly authorized representatives, attorneys and accountants, to audit and examine all of the operations, information systems, books, records, reports and other papers of the Servicer with respect to the Serviced Assets (including all invoices and receipts for Direct Operating Expenses reimbursed to the Servicer), the Trust and/or the Issuer, to make copies and extracts therefrom, and to discuss the affairs, finances and accounts with the
officers, employees and Independent Accountants of the Servicer for the purpose of reviewing or evaluating the Servicer’s performance of its duties and obligations hereunder and under the other Relevant Documents. The number of audits and examinations conducted pursuant to the provisions of this Section 6.06(a) shall, subject to the provisions of Section 6.06(b), be reasonable and customary. All reasonable out-of-pocket expenses incidental to the first annual exercise by each such person or its duly authorized representatives, attorneys and accountants of the inspection right hereunder shall be borne by the Servicer, without right of reimbursement from any such person for such expenses, and such expenses relating to any subsequent inspection in any calendar year on behalf of the same person shall be borne by such person. 

 

 

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(b) If at any time (x) an Amortization Event, Event of Default or Servicer Default shall have occurred and is continuing or (y) with respect to a breach of any financial covenant that is an Amortization Event, Event of Default or Servicer Default, such Amortization Event, Event of Default or Servicer Default is incipient, then (i) such Persons and their duly authorized representatives, attorneys and accountants may exercise the rights granted to them in Section 6.06(a) at any time upon one Business Day’s written notice to the Servicer, (ii) the Global Requisite Majority may appoint an Independent Accountant other than that Person previously acting as accountant for any of the Servicer, the Trust or the Issuer for the purpose of conducting any review contemplated by this Section 6.06 and (iii) all examinations and audits conducted pursuant
to this Section 6.06 shall be at the Servicer’s expense.

(c) The Servicer also agrees (i) to make available on a reasonable basis to the Administrative Agent and each Initial Noteholder a knowledgeable financial or accounting officer for the purpose of answering reasonable questions respecting recent developments affecting the Servicer and (ii) to allow each such party to inspect the Servicer’s facilities during normal business hours.

(d) At all times during the term hereof, the Issuer and the Servicer shall either (i) keep available in physical form at its principal executive office for inspection by the Administrative Agent, the Initial Noteholders and/or their duly authorized representatives, attorneys or accountants the Master List, together with a reconciliation of such Master List, indicating the cumulative addition and removal of Contracts and Equipment or (ii) maintain electronic facilities which allow such list and reconciliation to be generated.

(e) The Administrative Agent and the Initial Noteholders and their duly authorized representatives, attorneys and accountants shall use reasonable efforts to share information with one another and otherwise cooperate with one another to limit the number of audits per annum and minimize the expenses incurred by the Servicer in connection with any audits or examinations hereunder, provided, however, no such party shall be liable to any other party for failure to so share information or otherwise cooperate with any other party concerning such audits.

Section 6.07. Servicer Records. The Servicer will indicate in its records that it is servicing and administering the Serviced Assets in its capacity as Servicer hereunder, at the request and for the benefit of the Issuer, the Trust, each Registered Pledgee, the Indenture Trustee and each beneficiary of the Indenture Trustee’s security interest, in each case subject to the terms and conditions of the Relevant Documents.

Section 6.08. Insurance. (a) The Servicer will require each User to maintain the insurance required in the related Contract (each such Contract to be substantially in the form of Exhibit A to the related Transfer Agreement) and review each such insurance policy to ensure that it comports with the terms of such Contract and the Servicing Standard, including, but not limited to, causing the User on each renewal date to name the Servicer as a loss payee and an additional insured under such insurance policy and requiring that the insurer under such insurance policy notify the Servicer of any renewal, cancellation, termination or material alteration thereunder; provided
that a User listed on the “List of Self-Insured Users (Liability 

 

 

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Insurance)” attached hereto as Exhibit G may be self-insured with regard to the liability insurance required under the Contract; provided, further, that a User listed on the “List of Self-Insured Users (Casualty Insurance)” attached hereto as Exhibit G may be self-insured with regard to the casualty insurance required under the Contract (provided that additional Users may be added to each such list with the prior written consent of the Administrative Agent (such consent not be unreasonably withheld or delayed)). The Servicer shall at all times have in effect, maintain and keep in force for the benefit of the Trust, or cause the Trust to have in effect, maintain and keep in force, the Physical Damage Equipment
Insurance Policy and the Commercial General Liability Insurance Policy in such forms and in such amounts as are customary in the industry and acceptable to the Global Requisite Majority (such acceptance not to be unreasonably withheld). All policies of insurance required to be maintained pursuant to this Section 6.08 (other than the User self-insurance policies) shall name the Trust, the Issuer, the Administrative Agent and the Indenture Trustee as additional insureds (the “Additional Insureds”) as their interests shall appear and, with respect to any casualty insurance, name the Indenture Trustee as the sole loss payee with respect to the Serviced Assets. The Physical Damage Equipment Insurance Policy shall provide that violations of the terms, conditions or warranties of such policy by an Additional Insured shall not invalidate the insurance thereunder insofar as the interests of the other
Additional Insureds, loss payees and/or innocent mortgagees are concerned. The Commercial General Liability Insurance Policy shall provide a severability of interests clause with regard to the interests of each Additional Insured. The Physical Damage Equipment Insurance Policy shall pay the “Insured Value” (as defined in the Physical Damage Equipment Insurance Policy) of an item of Equipment (which shall in no event be less than the related Prepayment Amount) where a User has failed to pay on behalf of the Additional Insureds any or all of such amount and the Commercial General Liability Insurance Policy shall pay to the Additional Insureds any and all liability claims thereunder. In each case, the “Insured Value” shall be an amount greater than the “Stated Value” or its equivalent (as defined in the Contract) for an item of Equipment. Each policy shall provide that if such insurance is to be renewed, cancelled, terminated or materially altered for any
reason whatsoever, the insurers (or their representatives) shall notify the Additional Insureds 30 days in advance of any such renewal, cancellation, termination or material alteration. No cancellation or termination of an insurance policy shall be effective until ten days after receipt of notice by the Additional Insureds that such insurance policy is to be cancelled or terminated. No material alteration to any insurance policy shall be effective without the prior written consent of the Global Requisite Majority. The Servicer shall advise the Additional Insureds in writing promptly of any failure to pay any premium when due and of any other act or omission on the part of the Servicer which may invalidate or render unenforceable, in whole or in part, any insurance being maintained pursuant to this Section 6.08. The Servicer shall deliver to the Additional Insureds, promptly upon request and in any event within 90 days after the end of each fiscal year of the Servicer, a
certificate signed by an authorized officer of the Servicer (x) attaching certificates of all insurance policies maintained by the Servicer with respect to the Serviced Assets and (y) stating that all premiums due thereon have been paid in advance, that such insurance policies are in full force and effect and that such insurance policies comply with the requirements of this Section 6.08; provided that the Servicer shall cause such insurance policy to provide that, if the Servicer does not pay any such insurance policy in full, in advance, any Additional Insureds and the Noteholders (shall have the right to pay for such insurance only with regard to the Serviced Assets (in proportion to 

 

 

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their interest in the Notes) and to exercise any and all rights and options available to the Servicer under such insurance policy.

(b) The Servicer acknowledges and agrees that all income, payments and proceeds received by it pursuant to any insurance policy relating to the Serviced Assets (including any User insurance policy that names the Servicer as loss payee) will be received by the Servicer as agent hereunder for the benefit of the related Indenture Trustee and the related Persons set forth in Section 3.01(a) and, accordingly, the Servicer disclaims any right, title or interest in or to such income, payments or proceeds.  The Servicer hereby confirms that the Issuer has granted a first priority security interest to the Indenture Trustee in all such income, payments and proceeds.

Section 6.09. Limitation on Liability of the Servicer and Others. The Servicer and any director or officer or employee or agent of the Servicer may rely in good faith on any document of any kind, prima facie properly executed and submitted by any Person respecting any matters arising under this Agreement. The Servicer shall not be under any obligation to appear in, prosecute, or defend any legal action that is not incidental to its obligations as Servicer of the Serviced Assets under this Agreement and that in its opinion may involve it in any expense or liability. The Servicer shall not name any Registered Pledgee, the Indenture Trustee or any beneficiary of any the Indenture Trustee’s security interest as a party to an action at law or in equity
without its consent.

Section 6.10. Corporate Separateness from the Issuer and Trust. The Servicer will be operated and will act as agent for the Issuer and the Trust so that the Issuer and the Trust will not be substantively consolidated with the Servicer or any other Person in the event of a bankruptcy or insolvency proceeding involving any such Person. In connection therewith, the Servicer agrees to comply with each assumption contained in the substantive consolidation opinion given by independent legal counsel on the Closing Date and each Series Issuance Date. Without limiting the foregoing, the Servicer agrees (1) to maintain separate bank accounts and books of account from each of the
Issuer and the Trust, (2) not to conduct business in the name of the Issuer or the Trust except when acting in the name of the Issuer or the Trust as agent and it identifies itself as such and (3) to cause its financial statements to disclose the effects of the transactions contemplated by the Issuer Relevant Documents in accordance with GAAP.

Section 6.11. Further Assurances. The Servicer hereby agrees to perform such further acts and execute and deliver, or cause to be executed and delivered, such further amendments, restatements, supplements, modifications (including those contemplated by the proviso to Section 9.18 of this Agreement), instruments and documents as may be reasonably requested and necessary to implement the intent of, and consummate the transactions contemplated by this Agreement and each of the other Relevant Documents.

Section 6.12. Portfolio Management System. The Servicer will, at its own cost and expense, maintain the Portfolio Management System, or an alternative system of equal capability, and comply with its practices and procedures set forth in Exhibit B to protect the data on such systems.

 

 

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SECTION 7. SERVICER DEFAULT

Section 7.01. Servicer Default. The following events and conditions shall constitute a Servicer Default hereunder; provided, however, that if a successor Servicer or subservicer is then acting as Servicer hereunder, and is not an affiliate of Interpool, the events and conditions set forth in clauses (d), (e), (k), (1), (m), (n), (r), (s), and (t) shall not be applicable:

(a) failure on the part of the Servicer to remit any payment or deposit required hereunder (including, without limitation, any deposit to the Collection Account required pursuant to Section 3.06 hereof) within three Business Days of the time Collections are posted into and such amounts become available in or when otherwise required to be remitted;

(b) failure on the part of the Servicer to submit (x) a Servicer Report (including, without limitation, the Servicer Certificate and the Borrowing Base Certificate) when due and such failure continues unremedied for five Business Days after the due date therefor, and (y) any financial statement required to be delivered pursuant to any Relevant Document when due and such failure continues for 30 calendar days after the due date therefor;

(c) failure on the part of the Servicer to observe or perform any covenant or agreement (other than those described in clauses (a) and (b) above and (f) below) contained in any Relevant Document, such breach or failure materially or adversely affects the rights of the Issuer, the Trust, the Indenture Trustee, any beneficiary of the Indenture Trustee’s security interest under the Indenture, noteholders under the Indenture or any Registered Pledgee and such breach or failure continues unremedied for a period of 30 days after the earlier to occur of (i) the date on which a Servicing Officer has actual knowledge of such failure or breach, and (ii) the date on which written notice thereof requiring the same to be remedied shall have been given to the Servicer by Interpool, a Seller, the Issuer, the Trust, the Indenture Trustee, any beneficiary of
the Indenture Trustee’s security interest under the Indenture, the Administrative Agent or any Registered Pledgee;

(d) failure on the part of the Servicer to maintain the insurance policies required pursuant to Section 6.08 hereof;

(e) any default beyond any grace period under any agreement with any creditor for borrowed money in excess of $5,000,000 and (i) such default consists of the failure to pay any principal, premium or interest with respect to such indebtedness or (ii) such default consists of the failure to perform any covenant or agreement with respect to such indebtedness if the effect of such default is to cause the Servicer’s obligations which are the subject thereof to become due prior to its maturity date or prior to its regularly scheduled date of payment;

(f) failure on the part of the Servicer to observe or perform any covenant or agreement listed in Section s 3.01(q), 6.02(d), 6.10 or 6.13 and such breach or failure 

 

 

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continues unremedied for a period of ten (10) days after the earlier to occur of (i) the date on which a Servicing Officer has actual knowledge of such failure or breach, and (ii) the date on which written notice thereof requiring the same to be remedied shall have been given to the Servicer by Interpool, a Seller, the Issuer, the Trust, the Indenture Trustee, any beneficiary of the Indenture Trustee’s security interest under the Indenture, the Administrative Agent or any Registered Pledgee;

(g) any assignment for the benefit of creditors generally, a composition or extension to creditors, or notice of an intended sale of all or substantially all of the business or assets now or hereafter owned or conducted by the Servicer in connection with a case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization, or other similar law;

(h) any representation or warranty of the Servicer made in this Agreement, any other Relevant Document or in any certificate or other writing delivered pursuant hereto or thereto shall prove to be incorrect as of the time when the same shall have been made, which inaccuracy would materially or adversely affect the rights of the Issuer, the Trust, the Indenture Trustee, or any beneficiary of the Indenture Trustee’s security interest under the Indenture, any Registered Pledgee or the Administrative Agent and such inaccuracy remains unremedied (such remedy to include repurchase of the nonconforming Serviced Asset pursuant to Section 6.03 hereof) for a period of 30 days after the earlier to occur of (i) the date any Servicing Officer has knowledge of such incorrect representation or (ii) the date on which written notice thereof requiring the same
to be remedied, if so capable of remedy, shall have been given to the Servicer by Interpool, any Seller, the Issuer, the Trust, the Indenture Trustee, any Interest Rate Hedge Counterparty, any Currency Hedge Counterparty, the Administrative Agent or any Series of Noteholders;

(i) the entry by a court having jurisdiction in the premises of (i) a decree or order for relief in respect of the Servicer in an involuntary case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization, or other similar law or (ii) a decree or order adjudging the Servicer a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment, or composition of or in respect of the Servicer under any Applicable Law, or appointing a custodian, receiver, liquidator, sequestrator or other similar official of the Servicer or of any substantial part of the property of either, or ordering the winding up or liquidation of the affairs of the Servicer;

(j) the commencement by the Servicer of a voluntary case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization, or other similar law, or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by the Servicer to the entry of a decree or order for relief in respect of the Servicer in an involuntary case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization, or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal or state 

 

 

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law, or the consent by it either to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, sequestrator or similar official of the Servicer or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the inability by the Servicer to pay its debts generally as they become due, or the taking of corporate action by the Servicer in furtherance of any such action or the filing of an involuntary petition in bankruptcy and the continuance of such involuntary petition undismissed for a period of sixty (60) consecutive days;

(k) the Tangible Net Worth of Interpool (measured as of the end of each fiscal quarter and on the basis of the financial statements delivered pursuant to Section 6.04(a) and (b) hereof) is less than $300,000,000  for ten (10) or more days after such date;

(l) there shall remain  in force, undischarged, unsatisfied and unstayed, for thirty (30) consecutive days or more, any final judgment against the Servicer not covered by insurance that, with other outstanding final undischarged judgments against the Servicer not covered by insurance, exceeds in the aggregate $5,000,000;

(m) at any time, Interpool, Inc. shall make any dividends, distributions or other payments having the substantive effect of a dividend or distribution (each such payment, a “Dividend”) to any equity holder or preferred equity holder of Interpool, Inc. and, immediately before and/or after giving effect to such Dividend, an Event of Default or Amortization Event shall have occurred and/or be continuing;

(n) reserved;

(o) reserved;

(p) an Event of Default has occurred and is continuing under Section 8.01((i) or (ii) of the Indenture;

(q) any indication or evidence received by the Administrative Agent, the Indenture Trustee, any Registered Pledgee, any Interest Rate Hedge Counterparty, any Currency Hedge Counterparty or any noteholder under the Indenture that reasonably leads it to believe that the Servicer may have directly or indirectly been engaged in any type of criminal activity which would be reasonably likely to result in the forfeiture of any property of the Servicer to any governmental entity, federal, state or local, and which forfeiture would reasonably be expected to have a material adverse effect on the Servicer or the rights of the Indenture Trustee, any Registered Pledgee, any Interest Rate Hedge Counterparty, any Currency Hedge Counterparty or a Series of Noteholders under the Indenture;

(r) Interpool resigns as Servicer for any reason;

(s) a Change of Control of Interpool (for so long as Interpool is the Servicer) occurs that does not satisfy the provisions set forth in Section 6.01 of this Agreement or 

 

 

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the Servicer shall have occurred, provided that the failure to provide timely notice of any Change of Control shall not result in a Servicer Default if such Change of Control has been publicly announced at least thirty days in advance of such Change of Control;

(t) reserved; or

(u) the Servicer ceases to be engaged in the business of owning and leasing equipment of a type comparable to the Equipment.

Section 7.02. Termination. (a) If a Servicer Default shall have occurred and be continuing, the Indenture Trustee may, and shall, upon the written direction of the Global Requisite Majority, give written notice to the Servicer (the “Servicer Termination Notice”), the Issuer, the Trust, each Noteholder under the Indenture, each Registered Pledgee, the Administrative Agent, each Currency Hedge Counterparty and each Interest Rate Hedge Counterparty of the termination of all (but not less than all) of the rights and obligations of the Servicer under this Agreement and the Administrative
Agent (at the direction of the Global Requisite Majority) shall, as promptly as possible, appoint a successor Servicer and such successor Servicer shall accept its appointment by a written assumption in a form acceptable to the Global Requisite Majority. Each of the Servicer, any successor Servicer and the Indenture Trustee, as applicable, shall take such actions consistent with this Agreement, as shall be necessary to effect such succession. On the receipt by the Servicer of such Servicer Termination Notice, all of the rights and obligations of the Servicer under this Agreement, including, without limitation, the Servicer’s right hereunder to receive unaccrued Servicing Fees, shall cease and the same shall pass to and be vested in, and assumed by, the successor Servicer pursuant to and under this Agreement. Such successor Servicer shall be subject to all the responsibilities, duties and liabilities of the Servicer hereunder. Each of the successor Servicer and the Indenture
Trustee is hereby authorized and empowered to execute and deliver, on behalf of the terminated Servicer, as attorney-in-fact or otherwise, any and all documents and perform any and all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and assignment of any Serviced Assets or such passing, vesting or assumption or to cause Users to remit all future Contract Payments and other amounts due under any Contract or in respect of any item of Equipment to such account as shall be specified by the Indenture Trustee, acting at the written direction of the Global Requisite Majority.

If the Servicer’s duties, responsibilities and liabilities under this Agreement should be terminated pursuant to this Section 7.02, the Servicer shall discharge such duties and responsibilities during the period from the date it acquires knowledge of such termination until the effective date thereof with the same degree of diligence and prudence which it is obligated to exercise under this Agreement, and shall take no action whatsoever that might impair or prejudice the rights or financial condition of its successor or the value of any Serviced Assets.

(b) Any termination of the Servicer pursuant to this Section 7.02 shall not affect any claims that the Issuer, the Trust, the Indenture Trustee, the Administrative Agent, any noteholder under the Indenture, any Registered Pledgee, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty and any other Person may have against such terminated Servicer arising prior to the effective date of any such termination.

 

 

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(c) Upon receipt of request by the Indenture Trustee, the terminated Servicer shall immediately deliver to the successor Servicer the funds that are, or are required to be, in any account established pursuant to the Trust Agreement or a SUBI Supplement with respect to a Certificate pledged under the Indenture, the Collection Account, any other account established pursuant to the terms and conditions of the Relevant Documents, the Contract Files and all related Contract documents held by it hereunder and the terminated Servicer shall account for all funds and shall execute and deliver such instruments and do such other things as may reasonably be required to more fully and definitely vest and confirm in the successor Servicer all such rights, powers, duties, responsibilities, obligations and liabilities of the terminated Servicer.

(d) On or before the related Transfer Date and with respect to any re-lease, on or before the re-lease date, the Servicer shall deliver the original counterpart of the Contract that constitutes “chattel paper” for purposes of the UCC (with respect to Contracts evidenced by a master lease agreement and related schedules, the original of such Contract shall consist of the original manually executed schedule and a certified copy of the master lease agreement) or, if not available, a true and complete photocopy (each such photocopy to be certified as a true and complete copy of the originally executed counterpart of such Contract) to the Registered Pledgee or the Custodian as its bailee. Immediately upon delivering possession of each such Contract to the Registered Pledgee or the Custodian as its bailee, (x) the Registered Pledgee or the Custodian as its bailee (at
the written instruction of the Registered Pledgee) (i) to the extent not already done, shall stamp on the front cover or other conspicuous space in each Contract the language set forth in Exhibit E and furnish a certificate in the form of Exhibit E of an officer of the Registered Pledgee (or the Custodian as its bailee) to each related Registered Pledgee, the Trust, the Administrative Agent, the Issuer and the Servicer that such stamping has been effected, and (ii) shall furnish to the Servicer its agreement in a certificate substantially in the form of Exhibit E that it is receiving possession of and holding possession of such Contracts both for its own benefit and as agent and (y) such Contracts and related Equipment shall have been released from the Lien of any security agreement in favor of any collateral agent or secured party other than the Registered Pledgee. At the request of the Registered Pledgee (acting at the written direction of the Global
Requisite Majority) the Custodian as the bailee of the Registered Pledgee shall immediately deliver possession of each requested Contract to the Registered Pledgee. In accordance with this Section 7.02(d), either the Registered Pledgee or the Custodian as its bailee shall at all times hold and maintain possession of the Contract that constitutes “chattel paper” for purposes of the UCC.

Section 7.03. Waiver of Servicer Default. The written consent of the Global Requisite Majority must be obtained in order to waive any Servicer Default or any or all of its consequences. Upon any such waiver of a past default, such default shall cease to exist, and any default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default or impair any right consequent thereon except to the extent expressly so waived.

Section 7.04. Servicer to Cooperate. The Servicer agrees to cooperate with any successor Servicer, in effecting the termination and transfer of the responsibilities and rights of the Servicer, as the case may be hereunder, and the transfer thereof, to the successor Servicer, including, without limitation, the preparation, execution and delivery of any and all documents 

 

 

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and other instruments, the execution and delivery of assignments of Financing Statements, and the transfer to the successor Servicer for administration by it of all cash amounts which shall at the time be held by the Servicer or thereafter received with respect to the Serviced Assets. The Servicer hereby agrees to transfer to any successor Servicer copies of its electronic records and all other records, correspondence and documents relating to the Serviced Assets in the manner and at such times as the successor Servicer shall reasonably request and do any and all other acts or things necessary or appropriate to effect the purposes of termination. The Servicer hereby designates the successor Servicer its agent and attorney-in-fact to execute transfers of Financing Statements and any other filings or instruments which may be necessary or advisable to effect such transfer of the Servicer’s
responsibilities and rights hereunder; provided that all reasonable expenses relating to such actions shall be paid by the Servicer.

Section 7.05. Notification to Noteholders. Upon any such termination or appointment of a successor Servicer, the Indenture Trustee shall give prompt written notice thereof to each beneficiary of the security interest in favor of the Indenture Trustee and each Registered Pledgee in the manner provided in the Indenture.

Section 7.06. Remedies Not Exclusive. Nothing in the preceding provisions of this Section 7 shall be interpreted as limiting or restricting any rights or remedies which the Issuer, the Trust, the Indenture Trustee, any person that is a beneficiary of the Indenture Trustee’s security interest, the Administrative Agent, any Registered Pledgee or any other Person would otherwise have at law or in equity on account of the breach or violation of any provision of this Agreement by the Servicer, including, without limitation, the right to recover full and complete damages on account thereof and the right to injunctive relief and specific performance.

SECTION 8. ASSIGNMENT

Section 8.01. Assignment to Indenture Trustee. It is understood that this Agreement and all rights of the Issuer will be collaterally assigned by the Issuer to the Indenture Trustee, and all rights of the Issuer hereunder (whether direct or indirect) will be collaterally assigned by the Issuer to the Indenture Trustee, for the benefit of the beneficiaries named in the Indenture, and may be subsequently assigned, for the same purposes, by the Indenture Trustee to any successor Indenture Trustee or as otherwise provided in the Indenture. The Servicer expressly agrees to each such assignment and agrees that all of its duties, obligations, representations and warranties hereunder shall be for the benefit of, and may be enforced by, the Indenture Trustee, the
beneficiaries of the Indenture Trustee’s security interest and any successor to or assignee of the rights of any thereof under the related Indenture.

Section 8.02. Assignment by Servicer. Except as provided in Section 3.01(e), none of the rights or obligations of the Servicer hereunder may be assigned, transferred, encumbered, or sold, whether voluntarily or by operation of law, without the prior written consent of the Global Requisite Majority.

Section 8.03. Power of Attorney. The Servicer hereby grants to each of the Issuer, the Trust, and the Indenture Trustee the power as its attorney-in-fact, limited to the exercise thereof in the event the Servicer fails to take any action hereunder to effect the transactions contemplated 

 

 

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herein, or an Amortization Event, an Event of Default or a Servicer Default exists, to do any and all other acts as may be necessary or appropriate to effect the transactions contemplated herein, including, without limitation, the filings and undertakings set forth in Section 3.01(1) hereof. Nothing in this Section 8.03 shall be interpreted, however, to relieve the Servicer of its responsibilities hereunder, including, without limitation, the obligation to execute and file (or cause to be filed) any Financing Statements or other document as shall be necessary or appropriate to perfect or to preserve and protect the security interests created under any Indenture or the ownership interests under the Trust Agreement.

SECTION 9. MISCELLANEOUS

Section 9.01. Continuing Obligations. This Agreement shall continue in full force and effect until the date on which the Indenture has been discharged in accordance with its terms and each of the notes issued thereunder and any other amounts due to any holder of such notes or their successors and assigns (including, without limitation, each Registered Pledgee) have been paid in full and all other secured obligations under each Indenture have been fully satisfied and discharged.

Section 9.02. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (EXCEPT FOR SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). IF ANY PROVISION OF THIS AGREEMENT IS DEEMED INVALID, IT SHALL NOT AFFECT THE BALANCE OF THIS AGREEMENT. THIS AGREEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK.

Section 9.03. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the parties hereto.

Section 9.04. Modification. The terms of this Agreement shall not be waived, supplemented, restated, renewed, amended or otherwise modified except in writing with the prior written consent of the signatories hereto and in accordance with Section 9.18 hereof.

Section 9.05. Notices. All notices and other communications given in connection with this Agreement shall be sufficient for every Person hereunder if in writing and telecopied (with a copy of the telecopied material sent to the recipient by overnight courier on the day of the telecopy), sent by a nationally recognized overnight courier, or hand delivered to, in case of the parties hereto, their respective addresses set forth on the signature page to this Agreement or to such other address as either party may specify to the other from time to time in accordance with this Section 9.05 or, in the case of a Registered Pledgee, a beneficiary of the security interest in favor of such Registered Pledgee, the Indenture Trustee and a beneficiary of the
security interest in favor of the Indenture Trustee to such addresses as are provided in the Indenture or the related Note Purchase Agreement, or in the case of the Trust and the Trustee thereof, to such addresses as are provided in the Trust Agreement or, in the case of the Administrative Agent, as provided in the Indenture.

 

 

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Section 9.06. Third Party Beneficiary. The parties hereto acknowledge and agree that the Trustee of the Trust, the Trust, the Indenture Trustee, the Administrative Agent, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty and each Registered Pledgee (and each beneficiary of the Indenture Trustee’s security interest under the Indenture), and their respective successors and assigns, is each an express third party beneficiary of this Agreement.

Section 9.07. Waivers. No failure or delay on the part of the Issuer, the Trust, the Indenture Trustee, any beneficiary of the security interest in favor of the Indenture Trustee, the Administrative Agent, any Registered Pledgee or any beneficiary of the security interest in favor of any such Registered Pledgee in exercising any power, right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy.

Section 9.08. Costs and Expenses. The Servicer will pay all expenses incident to the performance of its obligations under this Agreement and agrees to pay all reasonable out-of-pocket costs and expenses of the Issuer, the Trust, the Administrative Agent, the Indenture Trustee, each Registered Pledgee, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty, including fees and expenses of counsel, in connection with the enforcement of any obligation of the Servicer hereunder.

Section 9.09. Survival of Representations. The respective agreements, representations, warranties and other statements by the Servicer set forth in or made pursuant to this Agreement shall remain in full force and effect and will survive the Closing Date.

Section 9.10. Confidential Information. Each of the Issuer and the Trust agrees that it will neither use nor disclose to any Person the names and addresses of the Users, or any other Confidential Information, except in connection with the enforcement of its rights under the applicable Relevant Documents or as required by operation of law.

Section 9.11. Headings and Cross-References. The various headings in this Agreement are included for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement. References in this Agreement to Section names or numbers without a reference to another Relevant Document are to such Sections of this Agreement.

Section 9.12. Independence of Covenants. All covenants and agreements in this Agreement shall be given independent effect so that if any particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Servicer Default, an Amortization Event or an Event of Default if such action is taken or condition exists.

Section 9.13. No Adverse Interpretation of Other Agreements. This Agreement may not be used to interpret another indenture, loan or debt agreement of the Trust or an Affiliate thereof. Any such indenture, loan or debt agreement may not be used to interpret this Agreement.

 

 

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Section 9.14. Statements Required in Servicer Certificate. Each Servicer Certificate, Servicer Report or Officer’s Certificate with respect to compliance with a condition or covenant provided for in this Agreement shall include:

(i) a statement that the Person making such certification has read such covenant or condition;

(ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements contained in such certificate are based;

(iii) a statement that, in the opinion of such Person, such Person has made such examination or investigation as is necessary to enable such Person to express an informed opinion as to whether or not such covenant or condition has been complied with; and

(iv) a statement as to whether or not, in the opinion of such Person, such covenant or condition has been complied with.

Section 9.15. SERVICE OF PROCESS AND JURISDICTION. EACH PARTY TO THIS AGREEMENT
HEREBY (I) IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK, NEW YORK COUNTY (WITHOUT PREJUDICE TO THE RIGHT OF ANY PARTY TO REMOVE TO THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK) AND TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY OTHER RELEVANT DOCUMENT OR THE SUBJECT MATTER HEREOF OR THEREOF OR
ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY BROUGHT BY ANY TRANSACTION PARTY OR THEIR RESPECTIVE SUCCESSORS OR ASSIGNS, (II) IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR IN SUCH FEDERAL COURT, AND (III) IRREVOCABLY WAIVES, AND
AGREES NOT TO ASSERT, BY WAY OF MOTION, AS A DEFENSE, OR OTHERWISE,
IN ANY SUCH SUIT, ACTION OR PROCEEDING ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF THE ABOVE-NAMED COURTS, THAT THE SUIT,
ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF
THE SUIT, ACTION OR PROCEEDING IS IMPROPER, OR THAT THIS AGREEMENT, THE OTHER RELEVANT DOCUMENTS OR THE SUBJECT MATTER HEREOF OR THEREOF MAY NOT BE ENFORCED IN OR BY SUCH COURT. EXCEPT AS OTHERWISE PROVIDED BY APPLICABLE LAW,
A FINAL JUDGMENT OBTAINED IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING REFERRED TO IN THIS PARAGRAPH SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY MANNER AS PROVIDED BY APPLICABLE LAW, A CERTIFIED OR TRUE COPY OF WHICH FINAL JUDGMENT SHALL BE CONCLUSIVE EVIDENCE OF THE FACT AND OF THE AMOUNT OF ANY INDEBTEDNESS OR LIABILITY THEREIN DESCRIBED. EACH OF THE PARTIES HERETO HEREBY CONSENTS TO SERVICE OF PROCESS BY REGISTERED MAIL OR NATIONALLY RECOGNIZED COURIER SERVICE IN THE UNITED
STATES AT THE ADDRESS TO WHICH NOTICES TO IT ARE TO BE GIVEN, AND TO RECEIVE SERVICE OF PROCESS AT ANY SUCH ADDRESS IN ANY ACTION, SUIT OR PROCEEDING WITH RESPECT TO ANY MATTER AS TO WHICH IT SUBMITS TO JURISDICTION AS SET FORTH ABOVE, IT BEING AGREED THAT SERVICE IN SUCH MANNER SHALL CONSTITUTE VALID SERVICE UPON SUCH PARTY OR ITS SUCCESSORS OR ASSIGNS
ONLY IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING.

 

 

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EACH OF THE PARTIES HERETO AGREES THAT ITS SUBMISSION TO JURISDICTION AND ITS CONSENT TO SERVICE OF PROCESS BY MAIL OR COURIER SERVICE, AS THE CASE MAY BE, SET FORTH ABOVE IS MADE FOR THE EXPRESS BENEFIT OF EACH OTHER TRANSACTION PARTY (INCLUDING, WITHOUT LIMITATION, EACH THIRD PARTY BENEFICIARY HEREOF AS PROVIDED IN SECTION 9.06 HEREOF); PROVIDED, HOWEVER, THAT NOTHING IN THIS PARAGRAPH SHALL AFFECT THE RIGHT OF ANY OF SUCH PARTIES OR THEIR RESPECTIVE SUCCESSORS OR ASSIGNS TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF ANY OF SUCH PARTIES OR THEIR RESPECTIVE SUCCESSORS OR ASSIGNS TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OTHER PARTY OR ITS PROPERTY IN THE COURTS OF OTHER JURISDICTIONS.

Section 9.16. Waiver of Immunity. To the extent that any party hereto or any of its property is or becomes entitled at any time to any immunity on the grounds of sovereignty or otherwise from any legal actions, suits or proceedings, from set-off or counterclaim, from the jurisdiction or judgment of any competent court, from service of process, from execution of a judgment, from attachment prior to judgment, from attachment in aid of execution, or from execution prior to judgment, or other legal process in any jurisdiction, such party, for itself and its successors and assigns and its property, does hereby irrevocably and unconditionally waive, and agrees not to plead or claim, any such immunity with respect to its obligations, liabilities or any other
matter under or arising out of or in connection with this Agreement, the other Relevant Documents or the subject matter hereof or thereof, subject, in each case, to the provisions of the Relevant Documents and mandatory requirements of Applicable Law.

Section 9.17. Currency. The parties hereto (A) acknowledge that the matters contemplated by this Agreement are part of an international financing transaction and (B) hereby agree that (i) specification and payment of Dollars is of the essence, (ii) Dollars shall be the currency of account in the case of all obligations under the Relevant Documents unless otherwise expressly provided herein or therein, (iii) the payment obligations of the parties under the Relevant Documents shall not be discharged by an amount paid in a currency or in a place other than that specified with respect to such obligations, whether pursuant to a judgment or otherwise, except to the extent actually received by the Person entitled thereto and converted
into Dollars by such Person (it being understood and agreed that, if any transaction party shall so receive an amount in a currency other than Dollars, it shall (A) if it is not the Person entitled to receive payment, promptly return the same (in the currency in which received) to the Person from whom it was received or (B) if it is the Person entitled to receive payment, either, in its sole discretion, (x) promptly return the same (in the currency in which received) to the Person from whom it was received or (y) subject to reasonable commercial practices, promptly cause the conversion of the same into Dollars), (iv) to the extent that the amount so paid on prompt conversion to Dollars under normal commercial practices does not yield the requisite amount of Dollars, the obligee of such payment shall have a separate cause of action against the party obligated to make the relevant payment for the additional amount necessary to yield the amount due and owing
under the Relevant Documents, (v) if, for the purpose of obtaining a judgment in any court with respect to any obligation under any of the Relevant Documents, it shall be necessary to convert to any other currency any amount in Dollars due thereunder and a change shall occur between the rate of exchange applied in making such conversion and the rate of exchange prevailing on the date of payment of such judgment, the obligor in respect of such obligation will pay such additional amounts (if any) as may be necessary to insure that the amount paid on the date of payment is the 

 

 

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amount in such other currency which, when converted into Dollars and transferred to New York City, New York, in accordance with normal banking procedures, will result in realization of the amount then due in Dollars and (vi) any amount due under this paragraph shall be due as a separate debt and shall not be affected by or merged into any judgment being obtained for any other sum due under or in respect of the Relevant Documents.

Section 9.18. Amendment. This Agreement may be amended, restated, supplemented or otherwise modified from time to time by the parties hereto only with the prior written consent of the Global Requisite Majority. Notwithstanding anything in the Relevant Documents to the contrary, this Agreement may not be amended, supplemented, restated or otherwise modified without the consent of each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty and/or the Administrative Agent, to the extent that any such amendment, supplement, restatement or other modification would adversely affect the interests of any such Person, provided however, this Agreement may be amended,
supplemented, restated or otherwise modified from time to time by the parties hereto with the consent only of the Global Requisite Majority (i) to cure any ambiguity, (ii) to correct or supplement any provisions herein which may be defective or inconsistent with any other provisions herein or in any other Relevant Document or (iii) to make any other provisions with respect to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of this Agreement or any other Relevant Document, provided that no such amendment, restatement, supplement or other modification shall (x) reduce in any manner the amount of, or delay the timing of, payments to any Noteholder or distributions which are required to be made to any Noteholder without the consent of such Noteholder or (y) adversely affect the interest of any Noteholder, any Currency Hedge
Counterparty, any Interest Rate Hedge Counterparty and/or the Administrative Agent. Promptly after the execution of any amendment, modification, supplement or other modification, the Servicer shall furnish a copy of the same to the Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, the Issuer and each Registered Pledgee.

Section 9.19. Counterparts. This Agreement may be executed in two or more counterparts and by different parties on separate counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument.

Section 9.20. Merger. This Agreement represents the entire agreement between the parties with respect to the subject matter hereof.

Section 9.21. Severability. In case any provision in this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 9.22. Language of Notices and Documentation. Each party hereto expressly acknowledges and agrees that any notice or document required to be delivered pursuant to this Agreement or any other Relevant Document shall be delivered in the English language.

Section 9.23. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, AS AGAINST THE OTHER PARTIES HERETO, ANY RIGHTS IT MAY HAVE
TO A 

 

 

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JURY TRIAL IN RESPECT OF ANY CIVIL ACTION OR PROCEEDING (WHETHER ARISING IN CONTRACT OR TORT OR OTHERWISE), INCLUDING ANY COUNTERCLAIM, ARISING UNDER OR RELATING
TO THIS AGREEMENT OR ANY OTHER RELEVANT DOCUMENT, INCLUDING IN RESPECT OF THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT HEREOF OR THEREOF.

Section 9.24. Indenture Trustee Indemnity. The Servicer shall indemnify the Indenture Trustee, its directors, officers, employees and agents against any and all losses, liabilities or expenses incurred by it arising out of or in connection with its duties under this Agreement, including the costs and expenses (including attorney’s fees) of defending itself both individually or in its representative capacity against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the extent any such loss, liability or expense may be attributable to its gross negligence or willful misconduct. The obligations of the Servicer under this Section 9.24 shall survive the resignation or removal of
the Indenture Trustee or and the satisfaction and discharge of this Agreement.

(b) IN NO EVENT SHALL THE INDENTURE TRUSTEE BE LIABLE FOR SPECIAL, INDIRECT OR CONSEQUENTIAL LOSS OR DAMAGE OF ANY KIND WHATSOEVER (INCLUDING BUT NOT
LIMITED TO LOST PROFITS), EVEN IF THE INDENTURE TRUSTEE HAS BEEN ADVISED OF
THE LIKELIHOOD OF SUCH LOSS OR DAMAGE AND REGARDLESS OF THE FORM OF
ACTION.

Section 9.25. No Force Majeure. The Servicer’s and Subservicer’s obligations under this Agreement are unconditional and shall not be subject to suspension, delay or interruption on account of the occurrence of any event, whether or not such event is beyond its control. 

Section 9.26. Indemnification. Notwithstanding anything else contained herein or in any other Relevant Documents, the Servicer hereby agrees to indemnify and hold harmless the Issuer, the Trust, the Indenture Trustee, the Administrative Agent, each Interest Rate Hedge Counterparty, each Currency Hedge Counterparty, each Noteholder, the UTI Trustee, each SUBI Trustee, the Delaware Trustee (as defined in the Trust Agreement) and their respective officers, directors, employees and agents (each of the foregoing, an “Indemnified Party”) from and against any and all liabilities, losses, damages, penalties, costs and expenses (including costs of defense and legal fees and
expenses) which may be incurred or suffered by such Indemnified Party (except to the extent caused by the gross negligence or willful misconduct of such Indemnified Party) as a result of claims, actions, suits or judgments asserted or imposed against an Indemnified Party and arising out of (i) any action or inaction of the Servicer that is contrary to the terms of this  Agreement, (ii) a material breach (i.e., any breach that results in a payment shortfall under Section 3.02 of the Indenture other than the last clause of each waterfall contained in Section 3.02(b)) by the Servicer of its representations, warranties and covenants set forth herein, (iii) any information provided to any Indemnified Party being untrue in any material respect as of the date such information was provided, (iv) the willful misconduct, bad faith or negligence of the Servicer in connection with the
performance of its obligations hereunder, or (v) any abatement, reduction, recoupment, set-off, defense or counterclaim by a User as a result of the Servicer’s failure to fulfill any of the obligations or ongoing responsibilities of a “lessor” under the related Contract; provided, however, that the foregoing indemnity shall in no way be deemed to impose on the Servicer any obligation to reimburse an Indemnified Party for losses arising solely from the financial inability of the related User under a Contract to make rental and 

 

 

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other lease-related payments or losses arising solely as a result of an Indemnified Party’s gross negligence or willful misconduct. The obligations of the Servicer contained in this Section 9.26 shall survive the resignation or removal of the Servicer and the termination of this Agreement.

[signature page follows]

 

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

 

	
                         
 	
                         
 	
                        INTERPOOL, INC., as Servicer 
 
	
                          
 	
                         
 	
                        By: 
 	
                        
 /s/ William A. Geoghan
 
	
                         
 	
                         
 	
                         
 	
      Name:
 	
                        William A. Geoghan
 
	
                         
 	
                         
 	
                         
 	
                        Title:
 	
                        Senior Vice President
 

 

	
                         
 	
                         
 	Address:
	
                        211 College Road East
 Princeton, NJ 08540
 Attn: Chief Financial Officer
 Telephone: (609) 452-8900
 Facsimile: (609) 452-8211
 

 

	
                         
 	
                         
 	
                        TRAC LEASE, INC., as subservicer
 
	
                          
 	
                         
 	
                        By: 
 	
                        
 /s/ William A. Geoghan
 
	
                         
 	
                         
 	
                         
 	
      Name:
 	
                        William A. Geoghan
 
	
                         
 	
                         
 	
                         
 	
                        Title:
 	
                        Senior Vice President
 

 

	
                         
 	
                         
 	Address:
	
                        633 Third Avenue
 New York, NY 10017
 Attn: Chief Financial Officer
 Telephone: (212) 986-3388
 Facsimile: (212) 986-3984
 

 

 

 

	
                         
 	
                         
 	
                        INTERPOOL CHASSIS FUNDING II, LLC
 
	
                          
 	
                         
 	
                        By: 
 	
                        
 /s/ William A. Geoghan
 
	
                         
 	
                         
 	
                         
 	
      Name:
 	
                        William A. Geoghan
 
	
                         
 	
                         
 	
                         
 	
                        Title:
 	
                        Senior Vice President
 

 

	
                         
 	
                         
 	Address:
	
                        c/o Interpool, Inc.
 211 College Road East
 Princeton, NJ 08540
 Attn: Chief Financial Officer
 Telephone: (212) 986-3388
 Facsimile: (212) 986-3984
 

 

 

 

	
                         
 	
                         
 	
                        U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity, but solely as Indenture Trustee
 
	
                          
 	
                         
 	
                        By: 
 	
                        
 /s/ Patricia M. Child
 
	
                         
 	
                         
 	
                         
 	
      Name:
 	
                        Patricia M. Child
 
	
                         
 	
                         
 	
                         
 	
                        Title:
 	
                        Vice President
 

 

	
                         
 	
                         
 	Address:
	
                        U.S. Bank National Association
 209 South LaSalle Street
 Suite 300
 Chicago, Illinois 60604
 Attn: Patricia M. Child
 Telephone: 312-315-8902
 Facsimile: 312-315-8905EXHIBIT 10.26

EXECUTION VERSION

LOAN AGREEMENT

DATED AS OF JULY 19, 2007

INTERPOOL, INC.,
      

as Borrower

and

ING CAPITAL LLC,
      

as Lender

 

 

TABLE OF CONTENTS

 

	
                         
 	
                         
 	
                        Page
 	
                         
 
	
                        ARTICLE I DEFINITIONS AND INTERPRETATION
 	
                         
 	
                        1
 	
                         
 
	
                        ARTICLE II THE LOAN
 	
                         
 	
                        7
 	
                         
 
	
                        ARTICLE III INTEREST AND FEES
 	
                         
 	
                        12
 	
                         
 
	
                        ARTICLE IV DRAWDOWN
 	
                         
 	
                        12
 	
                         
 
	
                        ARTICLE V REPRESENTATIONS AND WARRANTIES
 	
                         
 	
                        14
 	
                         
 
	
                        ARTICLE VI AFFIRMATIVE COVENANTS
 	
                         
 	
                        17
 	
                         
 
	
                        ARTICLE VII NEGATIVE COVENANTS
 	
                         
 	
                        18
 	
                         
 
	
                        ARTICLE VIII DEFAULT
 	
                         
 	
                        19
 	
                         
 
	
                        ARTICLE IX MISCELLANEOUS
 	
                         
 	
                        21
 	
                         
 

Exhibits

 

	
      Exhibit A
 	
       
 	
      Form of Guaranty
 	
       
 
	
                        Exhibit B
 	
                         
 	
                        Form of Security Agreement
 	
                         
 
	
                        Exhibit C
 	
                         
 	
                        Form of Subordination Agreement
 	
                         
 
	
                        Exhibit D
 	
                         
 	
                        Form of Notice of Borrowing
 	
                         
 
	
                        Exhibit E
 	
                         
 	
                        Form of Solvency Certificate
 	
                         
 
	
                        Exhibit F
 	
                         
 	
                        Form of Opinion of Counsel (New York and Delaware)
 	
                         
 
	
                        Exhibit G
 	
                         
 	
                        Form of Opinion of Counsel (Barbados)
 	
                         
 
	
                        Exhibit H
 	
                         
 	
                        Form of Opinion of Counsel (Luxembourg)
 	
                         
 
	
                        Exhibit I
 	
                         
 	
                        Form of Note
 	
   
 

 

 

i

 

THIS LOAN AGREEMENT (this “Agreement”), dated as of July 19, 2007, between ING CAPITAL LLC, a limited liability company organized and existing under the laws of the State of Delaware (the “Lender”) and INTERPOOL, INC., a corporation organized and existing under the laws of the State of Delaware (the “Borrower”):

WITNESSETH:

WHEREAS, the Borrower wishes to borrow funds from Lender, the proceeds of which shall be used as set forth in Section 2.2;

WHEREAS, the Lender, subject to the terms hereof, is willing to advance funds to the Borrower; 

WHEREAS, concurrently with the execution and delivery hereof, the Borrower and the Guarantor shall execute and deliver the other Loan Documents to which such entity is a party and grant to the Lender the Liens on the Guarantor’s assets contemplated by the Loan Documents and Guarantor shall execute and deliver the Guaranty; and

WHEREAS, the Loan is being made to the Borrower on the terms set forth herein and conditioned upon the execution and delivery of the Guaranty and the Security Agreement and the Collateral provided thereunder.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

Section 1.1.   The following capitalized terms used in this Agreement shall have the following meanings:

“Affiliate” means, with respect to any Person, any other Person that controls, is controlled by, or is under common control with, such Person. A Person shall be deemed to “control” any other Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such other Person whether by ownership of voting securities, by contract or otherwise, and the words “controlling” and “controlled by” shall have correlative meanings.

“Applicable Law” means, with reference to any Person or circumstance, all laws, treaties, judgments, decrees, injunctions, writs and orders of any Governmental Authority and all rules, regulations, orders, directives, licenses and permits prescribed by any Governmental Authority applicable to such Person or its property or in respect of its operations or to such circumstance.

“Borrower” has the meaning set forth in the preamble.

 

 

1

 

“Business Day” means a day other than a Saturday or Sunday on which commercial banks are generally open for business in New York, New York and London, England.

“Closing Date” means July 19, 2007.

“Code” means the Internal Revenue Code of 1986, as amended.

“Collateral” has the meaning specified in the Security Agreement.

“Controlled Group” means all trades or businesses (whether or not incorporated) under common control that, together with the Borrower, are treated as a single employer under Section 414(b) or 414(c) of the Code or Section 4001 of ERISA.

“Debt” of any Person at any date means, without duplication, (a) all obligations (including contingent obligations) of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of such Person to pay the deferred purchase price of property or services, and other accrued expenses arising in the ordinary course of business which in accordance with GAAP would be shown on the liability side of the balance sheet of such Person, but excluding trade accounts payable, (d) all obligations of such Person under leases which are or should be, in accordance with GAAP, recorded as capital leases in respect of which such Person is liable, (e) all obligations of such Person to purchase
securities (or other property) which arise out of or in connection with the sale of the same or substantially similar securities (or property), (f) all deferred obligations of such Person to reimburse any bank or other Person in respect of amounts paid or advanced under a letter of credit or other instrument, (g) all Debt of others secured by a Lien on any asset of such Person, whether or not such Debt is assumed by such Person and (h) all Debt of others guaranteed directly or indirectly by such Person or as to which such Person has an obligation substantially the economic equivalent of a guarantee.

“Default” means any event which with notice or passage of time or both would become a Loan Event of Default.

“Default Rate” means the Interest Rate plus 2% per annum.

“ERISA” means the United States Employee Retirement Income Security Act of 1974, and the rules and regulations thereunder, collectively, as the same may be amended from time to time.

“GAAP” means generally accepted accounting principles in effect in the United States from time to time.

“Governmental Authority” means any nation or government, any state or other political subdivision thereof, or any federal, state, local or foreign governmental or regulatory body, authority, bureau, agency, division, branch, department, office or instrumentality or court or other judicial body, or any other entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

 

2

 

“Guarantor” means Interpool Containers Limited, a company organized under the laws of Barbados.

“Guaranty” means that certain Guaranty in favor of the Lender by Guarantor substantially in the form attached hereto as Exhibit A, pursuant to which Guarantor shall guarantee the Obligations of Borrower under this Agreement and the other Loan Documents.

“Interest Payment Date” means the day of each October, January, April and July that numerically corresponds to the day of the month of the Closing Date, commencing with October 19, 2007.

“Interest Period” means (i) initially, the period beginning on (and including) the date on which the Loan is made and ending on (but excluding) the first Interest Payment Date and (ii) thereafter, the period beginning and including each Interest Payment Date and ending on (but excluding) the immediately following Interest Payment Date.

“Interest Rate” means, with respect to any Interest Period, LIBOR with respect to such Interest Period plus the Margin.

“IRS” means the  Internal Revenue Service.

“Lender” has the meaning set forth in the preamble.

“LIBOR” means, (i) with respect to the initial Interest Period, 5.36%, and (ii) with respect to any subsequent Interest Period, the rate per annum determined by the Lender at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of such subsequent Interest Period by reference to the British Bankers’ Association Interest Settlement Rates for deposits in Dollars (as set forth by the Bloomberg Information Service or any successor thereto or any other service selected by the Lender which has been nominated by the British Bankers’ Association as an authorized information vendor for the purpose of displaying such rates) for a period equal to such subsequent Interest Period; provided that, to the extent that “LIBOR” is not ascertainable pursuant to the foregoing provisions of this definition with respect to any such subsequent Interest Period, “LIBOR” shall be the interest rate per annum determined by the Lender to be the average of the rates per annum at which deposits in Dollars are offered for such subsequent Interest Period to major banks in the London interbank market in London, England by the Lender at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of such subsequent Interest Period.

“Lien” means any mortgage, pledge, hypothecation, assignment, encumbrance, lien (statutory or other), security interest, or other security device or arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, or any notice or similar recording filed under an applicable recording or notice statute, and any lease having substantially the same effect as any of the foregoing).

“Loan” has the meaning set forth in Section 2.1.

 

 

3

 

“Loan Documents” means, collectively, this Agreement, the Note (if any), the Security Agreement and the Guaranty.

“Loan Event of Default” means an event so described in Section 8.1.

“Margin” means 32.5 basis points. 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, property or financial condition of the Borrower and the Guarantor taken as a whole or (b) the validity or enforceability of any Loan Document or (c) the rights or remedies of the Lender under the Loan Documents or (d) the ability of the Borrower and the Guarantor, taken as a whole, to perform its obligations under the Loan Documents.

“Maturity Date” means July 19, 2014.

“1933 Act” means the United States Securities Act of 1933, as amended.

“Non-Excluded Taxes” has the meaning set forth in Section 2.10(a).

“Non-U.S. Person” has the meaning set forth in Section 9.6(b).

“Note” means any promissory note issued and delivered by the Borrower to the Lender pursuant to Section 2.8 and in the form attached hereto as Exhibit I.

“Notice of Borrowing” has the meaning set forth in Section 2.1.

“Obligations” means all amounts owing by the Borrower to the Lender pursuant to or in connection with or arising out of this Agreement or any other Loan Document or any other document made, delivered or given in connection herewith or therewith, including, without limitation, all principal of and interest (including any interest accruing after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) on the Loan, breakage, make-whole or other premium, reimbursement obligations, fees, expenses, indemnification and reimbursement payments, penalties, costs and expenses (including reasonable legal fees and expenses
payable pursuant to any provisions of any Loan Document), whether direct or indirect, absolute or contingent, liquidated or unliquidated, now existing or hereafter arising hereunder or thereunder.

“Other Taxes” means any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document.

“PATRIOT Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as amended or otherwise modified from time to time.

 

 

4

 

“PATRIOT Act Disclosures” means all documentation and other information which the Lender reasonably requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act.

“PBGC” means the Pension Benefit Guaranty Corporation created by ERISA or any governmental authority succeeding to any or all of the functions of the Pension Benefit Guaranty Corporation.

“Person” means any person, firm, company, corporation, a limited liability company, government, state or agency of a state or any association, trust or partnership (whether or not having separate legal personality) or two or more of the foregoing. 

“Permitted Liens” means Liens imposed by law for taxes that are not yet delinquent or are being contested in accordance with applicable law by appropriate proceedings diligently conducted so long as the Guarantor has set aside on its books adequate reserves for such taxes and such proceedings do not involve any risk of the sale, forfeiture or loss of any of the Collateral. 

“Plan” means at any time, an employee pension or other benefit plan that is subject to Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code and is either (a) maintained by the Borrower or any member of the Controlled Group or (b) if such Plan is established, maintained pursuant to a collective bargaining agreement or any other arrangement under which more than one employer makes contributions and to which the Borrower or any member of the Controlled Group is then making or accruing an obligation to make contributions or has within the preceding five Plan years made contributions. 

“Pledged Account” has the meaning specified in the Security Agreement.

“Register” has the meaning set forth in Section 9.6(d).

“Requirement of Law” means, as to any Person, the certificate of incorporation and by laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

“Responsible Officer” means, with respect to any Person, the chief executive officer, president or chief financial officer of such Person or any other officer of such Person so designated by any of the foregoing officers of such Person.

“Restructuring” means the transactions contemplated by that certain Agreement and Plan of Merger Agreement, dated April 20, 2007, among the Borrower, Chariot Acquisition Holding LLC and Chariot Acquisition Sub Inc.

“Security Agreement” means the Pledge Agreement dated July 19, 2007, between Guarantor and the Lender substantially in the form attached hereto as Exhibit B.

 

 

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“Signing Fee” has the meaning set forth in Section 3.4.

“Subordinated Notes” means (i) that certain Promissory Note dated November 30, 2005 from the Guarantor to Interpool Limited in the original principal amount of $177,135,000 and (ii) that certain Promissory Note dated December 19, 2005 from the Guarantor to Interpool Limited in the original principal amount of $2,300,000.

“Subordination Agreement” means the Subordination Agreement dated as of July 19, 2007 among the Guarantor, the Lender and Interpool Limited, a company formed under the laws of Barbados, substantially in the form attached hereto as Exhibit C. 

“Taxes” means any and all present or future income, excise, stamp, franchise or other taxes, levies, imposts, duties, deductions, fees, charges or withholdings (including any penalties or interest imposed thereon) now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority.

“Transactions” has the meaning set forth in Section 5.1(p).

“Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as enacted in the State of Delaware.

“United States” or “U.S.” means the United States of America, its fifty States and the District of Columbia.

“US Dollars”, “USD” and “$” “Dollars” or “dollars” means the lawful currency of the United States of America.

	
                         
 	
                        Section 1.2.
 	
                        In this Agreement, unless otherwise specified:
 

(a) any reference in this Agreement to (i) “including” shall be construed as a reference to “including but not limited to”; (ii) a “party” means a party hereto; (iii) a Person (including a party) includes its successors in title, permitted assigns and permitted transferees (in the relevant capacity); (iv) a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or
regulatory, self-regulatory or other authority or organization; and (v) a “Section,” an “Annex,” a “Paragraph”, a “Schedule”, or the “preamble” is a reference to a section hereof, an annex hereto, a paragraph hereof, a schedule hereto or the preamble hereto, respectively;

(b) the singular includes the plural and vice versa;

(c) unless otherwise indicated, all references to times of the day are to New York City time;

(d) the headings to the various Sections and Annexes are for convenience only and shall not affect the construction hereof;

 

 

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(e) a reference to any agreement or document (including this Agreement) shall be construed as a reference to such agreement or document as the same may have been amended, varied, or supplemented;

(f) a reference to a statute or other provision of law shall be construed as a reference to such statute or provision as the same may have been, or may from time to time be, amended, re-enacted or replaced; and

(g) in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including”, the word “through” means “to and including”, and the words “to” and “until” each mean “to but excluding”.

ARTICLE II

THE LOAN

Section 2.1. Subject to the terms and conditions of this Agreement, Lender agrees to advance a loan to Borrower on the Closing Date in an amount equal to $225,000,000 (Two Hundred Twenty-Five Million Dollars) (the “Loan”). The Borrower shall draw down the Loan by delivering to the Lender a written notice substantially in the form of Exhibit D attached hereto (a “Notice of Borrowing”) no later than two (2) Business Days preceding the Closing Date; provided that the making of the Loan shall be deemed a waiver of the requirement to deliver the Notice of Borrowing. 

Section 2.2. The proceeds of the Loan shall be used by the Borrower in connection with the Restructuring or for any other general corporate purposes. 

Section 2.3. Subject to the other provisions of this Agreement, the outstanding principal amount of the Loan shall be repaid (together with accrued but unpaid interest and all other amounts due and payable hereunder) on the Maturity Date.

Section 2.4. The Borrower shall have no right to prepay the Loan, in whole or in part, except as expressly permitted by the next sentence. The Borrower may prepay the Loan in whole or in part at any time and from time to time (together with accrued but unpaid interest on the amount so prepaid, all amounts payable pursuant to Section 2.7 and all other amounts due and payable hereunder or under the other Loan Documents) upon not less than five (5) Business Days prior notice to the Lender, which notice shall specify the date on which such prepayment shall be made and which may be revoked at any time prior to the date specified for prepayment in such notice. 

Section 2.5. All payments of principal of and interest on the Loan and other amounts due hereunder or under the other Loan Documents shall be payable in U.S. Dollars in immediately available funds prior to 11:00 A.M., on the due date thereof to the following account: ING Capital LLC, JPMorgan Chase Bank New York, ABA No. 0210-0002-1, A/C of : ING Capital LLC Loan Agency Account, A/C No. 066-297-311 or such other account as the Lender may specify to the Borrower from time to time. All payments (including each

 

 

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prepayment) to be made by the Borrower hereunder or under the other Loan Documents, whether on account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim. 

Section 2.6. If any date for a payment to be made pursuant to this Agreement would otherwise fall on a non-Business Day, it shall instead fall on the next Business Day (unless the next Business Day falls in the following month, in which case it shall instead fall on the preceding Business Day).

Section 2.7. The Borrower shall indemnify the Lender against, and on demand reimburse the Lender for, any loss, premium, penalty or expense which the Lender is required to pay or to incur in respect of breakage costs (including, without limitation, any loss or expense incurred by reason of the relending, depositing or other employment of funds acquired by the Lender to fund the Loan or the termination of any interest rate or credit default swap or other hedging arrangement) as a result of (a) any repayment or prepayment of the Loan other than on the Maturity Date, (b) the Borrower not making any prepayment on a date specified therefor in a notice of prepayment pursuant to Section 2.4 hereof (whether or not such notice is revoked) or (c) the purchase of the Loan from the Lender in accordance with Section 2.9(d). The Lender shall furnish the Borrower with a certificate setting
forth the basis for determining any additional amount to be paid to it hereunder and such certificate shall be conclusive, absent manifest error, as to the contents thereof.

Section 2.8. At the request of the Lender, a Note shall be issued to the Lender in the principal amount of the Loan. The Note shall have a stated maturity of the Maturity Date. 

Section 2.9. (a) If the adoption of or any change in any Requirement of Law or in the interpretation or application thereof or compliance by the Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority made subsequent to the date hereof (i) shall subject the Lender to any tax, duty or other change with respect to the Loan or shall change the basis of taxation of payments by the Borrower to the Lender on the Loan, (ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of the Lender or (iii) shall impose on the Lender any other condition and the result of any of the
foregoing is to increase the cost to the Lender of making, issuing, creating or maintaining the Loan, by an amount that the Lender deems to be material, or to reduce any amount receivable hereunder or under any other Loan Document in respect thereof, then, in any such case, the Borrower shall promptly pay the Lender, upon its demand, any additional amounts necessary to compensate such Lender for such increased cost or reduced amount receivable. If the Lender becomes entitled to claim any additional amounts pursuant to this paragraph, it shall promptly notify the Borrower of the event by reason of which it has become so entitled and will designate a different lending office if such designation will avoid the need for, or reduce the amount of, such compensation and will not, in the reasonable judgment of the Lender be otherwise disadvantageous to the Lender. If the Lender shall fail to notify the Borrower of any such subjection or imposition within ninety (90) days following the end of
the month during which such subjection or imposition occurred, then the Borrower’s and Guarantor’s liability for any amounts described in this Section incurred by the Lender as a result of such

 

 

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subjection or imposition shall be limited to those attributable to the period occurring subsequent to the ninetieth (90th) day prior to, but excluding, the date upon which the Lender actually notified the Borrower of the occurrence of such event. 

(b) If the Lender shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or in the interpretation or application thereof or compliance by the Lender or any corporation controlling the Lender with any request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental Authority made subsequent to the date hereof shall have the effect of reducing the rate of return on the Lender’s or such corporation’s capital as a consequence of its obligations hereunder or under the other Loan Documents (taking into consideration the Lender’s or such corporation’s policies with respect to capital adequacy) by an amount deemed by the Lender to be material, then from time to time, after submission by the Lender to the Borrower of a written request therefor, the Borrower shall pay
to the Lender such additional amount or amounts as will compensate the Lender or such corporation for such reduction. 

(c) The Lender will make the determinations contemplated by Sections 2.9(a) and (b) in good faith and without any discrimination against the Borrower (as compared to other similarly situated customers of the Lender and its affiliates); provided that the Lender shall not be obligated to take any steps that it determines in its sole discretion, to be adverse to its business or operations and provided, further, that, subject to the foregoing, a certificate as to any additional amounts payable pursuant to this Section and setting forth a reasonably detailed calculation of the additional amount or amounts to be paid to it hereunder or under the other
Loan Documents submitted by the Lender to the Borrower shall be conclusive in the absence of manifest error. The obligations of the Borrower pursuant to this Section shall survive the termination of this Agreement and the payment of the Loan and all other amounts payable hereunder or under the other Loan Documents.

(d) Notwithstanding anything to the contrary contained herein, if as the result of the introduction of or any change in any law or regulation (or any change in the interpretation thereof by any Governmental Authority charged with the administration or interpretation thereof or otherwise having jurisdiction in respect thereof) after the date hereof shall make it unlawful or any Governmental Authority shall assert that it is unlawful or contrary to the practice or policy of such Governmental Authority, for the Lender to make, issue, create, continue or maintain the Loan or any of the other Transactions, then, at the election of the Lender and on notice thereof and demand therefor by the Lender to the Borrower (such notice from the Lender, the “Lender Notice”), the Borrower shall immediately
prepay in full the Loan (together with accrued but unpaid interest thereon, all amounts payable pursuant to Section 2.7 and all other amounts due and payable hereunder or under the other Loan Documents); provided that if within two days after receipt of the Lender Notice the Borrower shall notify the Lender that it wishes to negotiate in good faith to seek to restructure the Loan or otherwise modify one or more Loan Documents pursuant to this Section 2.9(d) (such notice from the Borrower, the “Borrower Notice”), the Lender agrees to negotiate in good faith with the Borrower for a period ending thirty (30) days following the Lender Notice to attempt to restructure the Loan or otherwise modify one or more Loan Documents such that, (A) in the opinion of counsel to the Lender, after giving effect to such a restructuring or
modification, it shall not be unlawful for the Lender to make, issue,

 

 

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create, continue or maintain the Loan or any of the other Transactions and it could not reasonably be expected that any Governmental Authority would assert that it is unlawful or contrary to the practice or policy of such Governmental Authority for the Lender to make, issue, create, continue or maintain the Loan or any of the other Transactions and (B) in any event it shall not be unlawful and no Governmental Authority shall have asserted that it is unlawful or contrary to the practice or policy of such Governmental Authority for the Lender to make, issue, create, continue or maintain the Loan or any of the other Transactions, after giving effect to such a restructuring or modification; provided, further, that (i) the Lender shall not be
required pursuant to this Section 2.7(d) to take or omit to take any action which would adversely affect its rights, interests or obligations or create or increase any risk thereof and (ii) if, notwithstanding such good faith negotiations, the Borrower and the Lender are unable to agree upon a satisfactory restructuring of the Loan or modification of one or more Loan Documents within such thirty (30) day period, then on the first Business Day following the end of such thirty (30) day period the Borrower shall either (x) prepay in full the Loan (together with accrued but unpaid interest thereon, all amounts payable pursuant to Section 2.7 and all other amounts due and payable hereunder and under the other Loan Documents) or (y) cause a bank, financial institution or other lender to purchase the Loan from Lender (provided the Lender shall receive payment of all accrued and unpaid interest on the Loan and all other amounts due and payable to the Lender hereunder or under the other Loan
Documents, including all amounts due and payable pursuant to Section 2.7(c)) in accordance with Section 9.6(b), assume all of the rights and obligations of the Lender under the Loan Documents and become the Lender hereunder. The Borrower shall pay or reimburse the Lender for all costs and expenses (including reasonable fees and disbursements of counsel to the Lender) incurred in connection with any such negotiations, restructuring or attempted restructuring, modification or attempted modification, purchase and assignment or attempted purchase and assignment.

Section 2.10. (a) Any payments made by the Borrower (or on behalf of the Borrower) under this Agreement shall be made free and clear of, and without deduction or withholding for or on account of, any Taxes, excluding net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the Lender as a result of a present or former connection between the Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection arising solely from the Lender having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any other Loan Document). If any Taxes not characterized as excluded in the immediately preceding sentence (“Non-Excluded Taxes”) or Other Taxes are required to be withheld from any amounts payable to the Lender hereunder or under the other Loan Documents, the Borrower shall withhold such amounts and remit them to the applicable Governmental Authority and the amounts so payable to the Lender shall be increased to the extent necessary to yield to the Lender (after payment of all Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable hereunder or under the other Loan Documents at the rates or in the amounts specified in this Agreement.

(b) In addition, the Borrower (or the Guarantor, as applicable) shall pay any Other Taxes to the relevant Governmental Authority in accordance with Applicable Law.

 

 

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(c) The Borrower (or Guarantor, as applicable) shall indemnify the Lender, within ten (10) days after written demand therefor, for the full amount  of any Non-Excluded Taxes or Other Taxes paid by the Lender, on or with respect to any payment by or on account of any obligation of the Borrower hereunder or under the other Loan Documents or withheld from any payment made by the Borrower to the Lender (including Non-Excluded Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest and reasonable out-of-pocket expenses arising therefrom or with respect thereto, whether or not such Non-Excluded Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority and the Lender shall cooperate, at the Borrower’s sole cost and expense, with the Borrower with respect to any
contest of such imposition or assertion; provided, however, that the Borrower shall not be required to indemnify the Lender under this Section 2.10 for any liability arising as a result of the Lender’s willful misconduct or gross negligence. A certificate as to the amount of such payment or liability delivered to the Borrower by the Lender shall be conclusive absent manifest error. Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as possible thereafter the Borrower shall send to the Lender a certified copy of an original official receipt received by the Borrower showing payment thereof. If the Borrower fails to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to the Lender the required receipts or other required documentary
evidence, the Borrower shall indemnify the Lender for any incremental taxes, interest or penalties that may become payable by the Lender as a result of any such failure. The agreements in this Section shall survive the termination of this Agreement and the payment of the Loan and all other amounts payable hereunder or under the other Loan Documents.

(d) The Lender (except to the extent the Lender is a corporation or otherwise exempt from United States backup withholding tax) shall deliver at the time(s) and in the manner prescribed by Applicable Law to the Borrower a properly completed and duly executed United States Internal Revenue Service Form W-9, or any successor form, certifying that such person is exempt from United States backup withholding tax on payments made hereunder.

(e) If the Lender determines, in its good-faith discretion that it has received a refund of any Non-Excluded Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amount pursuant to this Section 2.10, the Lender shall pay to the Borrower the amount so received without interest (other than interest received from the Governmental Authority with respect to such refund) and net of reasonable out-of-pocket expenses; provided that the Lender shall only be required to pay to the Borrower such amounts as the Lender in its good-faith discretion determines are attributable to Non-Excluded Taxes or Other Taxes paid by the Borrower. 

Section 2.11. The Borrower may, at its option, give written notice to the Lender (which notice shall make specific reference to this Section 2.11), at least thirty (30) days prior to the relevant Interest Payment Date, that it desires to convert the Interest Payment Dates following the Interest Payment Date specified in such notice from quarterly to monthly, whereupon the Borrower and the Lender shall negotiate in good faith the amendments to the Loan Documents necessary and appropriate to implement such conversion (including a

 

 

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confirmation from the Guarantor that the Guaranty and the other Loan Documents to which the Guarantor is a party remain in full force and effect following such amendments) and related closing documents. Such conversion shall not become effective unless and until definitive amendment and confirmation documentation are executed and delivered by the Borrower, the Guarantor and the Lender. The Borrower shall pay or reimburse the Lender for all costs and expenses (including reasonable fees and disbursements of counsel to the Lender) incurred in connection with the negotiation of any such conversion and the documentation thereof (whether or not any such amendments are executed and delivered).

ARTICLE III

INTEREST AND FEES

Section 3.1. Interest shall accrue on the principal amount of the Loan at a rate equal to the Interest Rate. All computations of interest on the Loan shall be based upon a year of 360 days and shall be payable for the actual days elapsed (including the first day but excluding the last day).

Section 3.2. On each Interest Payment Date, Borrower shall pay all accrued and unpaid interest on the Loan to Lender in accordance with Sections 2.5 and 2.6.

Section 3.3. If the Borrower fails to pay any amount payable by it under this Agreement when due whether on the Maturity Date, upon acceleration of the Loan or otherwise, the Borrower must pay interest on the overdue amount from, and including, its due date up to, but excluding, the date of actual payment, both before, on and after judgment. Interest on an overdue amount is payable at the Default Rate.

Section 3.4. On the Closing Date, the Borrower shall pay to the Lender in accordance with Section 2.5 a signing fee equal to $500,000 (Five Hundred Thousand Dollars) (the “Signing Fee”). 

ARTICLE IV

DRAWDOWN

Section 4.1. The obligation of the Lender to make the Loan on the Closing Date pursuant to Section 2.1 is subject to the satisfaction in full of the following conditions:

(a) (i) this Agreement, the other Loan Documents and the Subordination Agreement shall each have been executed and delivered by the parties thereto other than the Lender and (ii) provisions satisfactory to the Lender for the funding of the Pledged Account in an amount equal to the principal balance of the Loan shall have been made;

(b) the representations and warranties made by the Borrower and the Guarantor under each Loan Document are true and correct on and as of the Closing Date;

 

 

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(c) no Default or Loan Event of Default is outstanding or would result from the making of the Loan; 

(d) receipt by the Lender, in each case certified by the Borrower, of (i) copies of the most recent unaudited quarterly and audited annual consolidated financial statements of the Borrower and (ii) unaudited pro forma balance sheets of the Borrower and the Guarantor; 

(e) each document (including, without limitation, any Uniform Commercial Code financing statement) required by the Security Agreement, by Applicable Law or as reasonably requested by the Lender to be filed, registered or recorded in order to create in favor of the Lender a perfected Lien on the Collateral described therein, shall have been filed, registered or recorded or shall have been delivered to the Lender in proper form for filing, registration or recordation;

(f) receipt by the Lender of copies of each of the following, in each case certified by Borrower or Guarantor, as applicable: (i) the organizational documents of each of the Borrower and the Guarantor, together with all amendments thereto, (ii) good standing certificates in respect of each of the Borrower and the Guarantor from such entity’s jurisdiction of organization and (iii) evidence of authority of the Borrower and the Guarantor authorizing the borrowing hereunder, the granting of the Liens under the Security Agreement and the execution, delivery and performance of this Agreement and the other Loan Documents to which such entity is a party;

(g) all governmental and third-party approvals necessary in connection with the transactions contemplated hereby shall have been obtained and be in full force and effect, and all applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the financing contemplated hereby;

(h) receipt by the Lender of the Signing Fee and all actual out-of-pocket expenses required to be paid by the Borrower for which invoices have been presented (including the reasonable fees and expenses of legal counsel), on or before the Closing Date;

(i) receipt by the Lender of a solvency certificate with respect to the Guarantor substantially in the form of Exhibit E attached hereto; 

(j) an opinion or opinions of outside and/or internal counsel to the Borrower or Lender, as applicable, dated the Closing Date and substantially in the form attached hereto as Exhibits F, G and H;

(k) the Restructuring has been consummated; and

(l) the Lender has received all PATRIOT Act Disclosures and other applicable “Know-Your-Customer” and anti-money laundering rules and regulations requested by them prior to execution of this Agreement. 

 

 

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ARTICLE V

REPRESENTATIONS AND WARRANTIES

Section 5.1. The Borrower represents and warrants to the Lender on the date of this Agreement that:

(a) the Borrower is a corporation duly formed under the laws of the State of Delaware;

(b) the Guarantor is limited company duly formed under the laws of Barbados;

(c) each of the Borrower and the Guarantor has the power to enter into and perform, and has taken all necessary action (including the obtaining of any necessary consents) in order to authorize its entry into, and performance and delivery of, the Loan Documents to which it is a party, and its performance of the transactions contemplated by the Loan Documents;

(d) each of the Loan Documents to which the Borrower or the Guarantor, as the case may be, is a party has been duly executed and delivered by the Borrower or the Guarantor, as applicable, and constitutes such entity’s legal, valid and binding obligation, enforceable in accordance with its terms, subject to the effect of any applicable bankruptcy, moratorium, insolvency, reorganization or other similar law affecting the enforceability of creditors’ rights generally and to the effect of general principles of equity (whether considered in a proceeding at law or in equity);

(e) neither the execution and delivery of this Agreement or of any other Loan Document executed or to be executed by the Borrower or the Guarantor, the performance of the Borrower’s or the Guarantor’s obligations hereunder or thereunder, nor consummation of the transactions contemplated hereby or thereby by the Borrower or the Guarantor, as the case may be, will conflict with or result in any violation of, the Borrower’s or the Guarantor’s organizational documents;

(f) neither the execution and delivery of this Agreement or of any other Loan Document executed or to be executed by the Borrower or the Guarantor, the performance of the Borrower’s or the Guarantor’s obligations hereunder or thereunder, nor consummation of the transactions contemplated hereby or thereby by the Borrower or the Guarantor, as the case may be, will conflict with or result in any violation of any Applicable Law or will conflict with or result in any breach of, or constitute a default under, or result in the creation or imposition of any Lien upon any of the Borrower’s or the Guarantor’s property or assets (except for the Liens in favor of the Lender under the Loan Documents), or will conflict with or result in any violation of, any indenture, mortgage, deed of trust or other instrument or agreement to which the Borrower or the
Guarantor is a party or by which the Borrower or the Guarantor may be bound or to which any of the Borrower’s or the

 

 

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Guarantor’s property or assets may be subject, except in each case to the extent the same could not reasonably be expected to have a Material Adverse Effect;

(g) no material consent or authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required for (i) the due execution, delivery or performance by the Borrower or the Guarantor of the Loan Documents to which it is a party, or (ii) the grant of the security interest granted pursuant to the Security Agreement (except for the filings contemplated by the Security Agreement);

(h) no financial statements or other documentation furnished by the Borrower or the Guarantor to the Lender in connection with the transactions contemplated by this Agreement or the other Loan Documents contained (at the time of delivery thereof) any untrue statement of a material fact or omitted (at the time of delivery thereof) to state a material fact necessary in order to make the statements contained herein or therein not misleading in any material respect under the circumstances in which they were made at the time such statements were made (other than any information that was corrected or updated in writing to the Lender prior to the Closing Date), provided that any projections and pro forma financial
information contained in the materials delivered to the Lender are based upon good faith estimates and assumptions believed by management of the Borrower to be reasonable at the time made, it being recognized by the Lender that such financial information as it relates to future events is not to be viewed as fact and that actual results during the period or periods covered by such financial information may differ from the projected results set forth therein by a material amount;

(i) no action, suit, proceeding or investigation has been instituted or, to the Borrower’s knowledge, threatened in writing against the Borrower or the Guarantor, except to the extent the same could not reasonably be expected to have a Material Adverse Effect;

(j) in connection with the transactions contemplated hereby, the Borrower has not taken any action that would result in a violation of the registration requirements of Section 5 of the 1933 Act; 

(k) each of the Borrower and the Guarantor has timely filed, or caused to be filed, all material federal, state and local tax returns and reports that it is required to file and has paid all material taxes, material assessments, utility charges, fees and other governmental charges it is required to pay to the extent due (other than those taxes that it is contesting in good faith and by appropriate proceedings and with respect to which it has set aside on its books adequate reserves in accordance with GAAP). Each of the Borrower and the Guarantor has made adequate provisions in accordance with GAAP for all taxes not yet due and payable. Each of the Borrower and the Guarantor is unaware of any likely, proposed or pending tax assessments, deficiencies or audits that could be reasonably expected to, individually or in the aggregate, result in a Material Adverse Effect;

(l) (i) the Collateral is free and clear of all Liens other than Liens created by the Security Agreement and Permitted Liens and (ii) the Security Agreement creates a

 

 

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valid security interest in the Collateral and such security interest will be, upon (A) the submission by the Guarantor by registered letter of a duly executed notice pursuant to clause 2 of the Security Agreement and (B) the filing of two (2) fully executed counterpart originals of the Security Agreement (together with the statement of charge in respect thereof) with the Registrar of Corporate Affairs in accordance with the Companies Act of Barbados within twenty-eight (28) days of their respective execution, a first priority perfected security interest in the Collateral; 

(m) (i) other than as disclosed in the pro forma balance sheets delivered to the Lender pursuant to Section 4.1(d), the Borrower has no outstanding Debt or other material liabilities, (ii) other than the existing obligations of the Guarantor under the Subordinated Notes (as disclosed in the pro forma balance sheet delivered to the Lender pursuant to Section 4.1(d)) and its obligations under the Loan Documents to which the Guarantor is a party, the Guarantor has no outstanding Debt or other material liabilities and (iii) the Borrower has provided to the
Lender true and correct copies of the Subordinated Notes; 

(n) each of the Borrower and the Guarantor is able to pay its debts as and when they become due from its own monies and will not become unable to do so as a consequence of its entry into this Agreement and the other Loan Documents to which it is a party or the performance of the transactions effected by this Agreement and the other Loan Documents. In entering into this Agreement and the other Loan Documents and in performing the transactions contemplated by this Agreement and the other Loan Documents, neither the Borrower nor the Guarantor is making dispositions of property with intent to defraud creditors, and the dispositions of property effected by this Agreement and the other Loan Documents are dispositions of estates or interests in property, or, as the case may be, payments or deposits made for valuable consideration and in good faith to Persons not
having, at the time of the dispositions, payments or deposits, notice of any intent to defraud creditors;

(o) the obligations of the Borrower under each of the Loan Documents do and shall rank pari passu with all other present and future indebtedness (actual or contingent) of the Borrower; 

(p) the senior management of each of the Borrower and the Guarantor (i) is aware of the transactions contemplated by each Loan Document (collectively the “Transactions”); (ii) is familiar with the purpose and effect of the Transactions; (iii) has approved the transactions set forth in such documents to which the Borrower or the Guarantor, as applicable, is a party; (iv) the Transactions have been approved by all required internal approval bodies of the Borrower and the Guarantor, as applicable; and (v) has discussed the Transactions, including its United States federal income tax treatment, and the manner in which the Borrower and the Guarantor, as applicable, intend to account for the Transactions, with its own advisers and has not relied upon Lender in respect of the
suitability of the Transactions; 

 

 

16

 

(q) neither the Borrower nor the Guarantor intends to treat any of the Transactions as a “reportable transaction” under Treas. Reg. Section 1.6011-4(b) for purposes of any United States federal income tax return; and 

(r) the Borrower owns, directly or indirectly, 100% of the issued and outstanding equity interests of the Guarantor.

ARTICLE VI

AFFIRMATIVE COVENANTS

Section 6.1. The Borrower hereby agrees that at all times, until the payment of the Loan and all other Obligations in full, the Borrower shall:

(a) deliver or cause to be delivered to the Lender (i) the quarterly unaudited consolidated balance sheet and income statements of the Borrower as soon as available but in no event later than sixty (60) days after then end of each fiscal quarter of the Borrower (provided that with respect to the fiscal quarter ending September 30, 2007, such deliveries shall be delivered no later than ninety (90) days after the end of such fiscal quarter) and (ii) audited annual consolidated balance sheet and income statements for the Borrower and the unaudited consolidating balance sheet of the Guarantor as soon as available but in no event later than 120 days after the end of the fiscal year of the Borrower. All such financial statements shall be complete and correct in all material respects and shall be prepared in accordance with GAAP applied (except as approved by such
accountants or such officer, as the case may be, and disclosed in reasonable detail therein) consistently throughout the periods reflected therein and with prior periods; 

(b) concurrently with the delivery of any financial statements pursuant to Section 6.1(a), deliver a certificate of a Responsible Officer stating that, to the best of such Responsible Officer’s knowledge, during such period Borrower or the Guarantor, as the case may be has observed or performed in all material respects all of its covenants and other agreements, and satisfied in all material respects each condition contained in this Agreement and the other Loan Documents to which it is a party to be observed, performed or satisfied by it, and that such Responsible Officer has obtained no knowledge of any Loan Event of Default except as specified in such certificate;

(c) promptly deliver such additional financial and other information as the Lender may from time to time reasonably request;

(d) comply with all laws applicable to it or to any of its properties or any part thereof, such compliance to include paying before the same become delinquent all taxes, assessments and governmental charges imposed upon it or upon its income or profits or in respect of its property, except in each case to the extent such failure to comply with such laws could not reasonably be expected to have a Material Adverse Effect;

 

 

17

 

(e) promptly after obtaining knowledge thereof, give notice to the Lender of (i) the occurrence of any Loan Event of Default or any event which is, or after notice or passage of time or both would reasonably likely be, a Loan Event of Default, (ii) any litigation, investigation or proceeding affecting the Borrower or the Guarantor that, if adversely determined, could reasonably be expected to have a Material Adverse Effect, or (iii) any other development or event that has had or could reasonably be expected to have a Material Adverse Effect;

(f) (i) preserve, renew and keep in full force and effect its organizational existence and (ii) take all other reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business, except to the extent the failure to take all such reasonable action could not reasonably be expected to have a Material Adverse Effect;

(g) maintain in effect at all times the types of insurance customarily maintained by an entity engaged in a business similar to the Borrower;

(h) maintain proper books of records and accounts in which full, true and correct entries in all material respects in accordance with GAAP shall be made of all dealings and transactions in relation to its business and activities and permit representatives of the Lender, at Lender’s sole cost and expense (unless a Default or Loan Event of Default has occurred and is continuing, in which case at Borrower’s sole cost and expense), to visit and inspect any of its properties and examine and make abstracts from any of its books and records at any reasonable time and as often as may reasonably be desired; 

(i) pay, discharge or otherwise satisfy before they become delinquent, as the case may be, all its material obligations of whatever nature (other than under the Loan Documents), except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided on the books of the Borrower; 

(j) the Borrower and the Guarantor will provide the Lender with written notice prior to filing any United States federal income tax return that treats any of the Transactions as a “reportable transaction” under Treas. Reg. Section 1.6011-4(b); and 

(k) own, directly or indirectly, 100% of the issued and outstanding equity interests of the Guarantor.

ARTICLE VII

NEGATIVE COVENANTS

Section 7.1. The Borrower hereby agrees that at all times, until the payment of the Loan and all other Obligations in full, the Borrower shall not:

 

 

18

 

(a) create, assume or suffer to exist or permit the creation, assumption or existence of any Lien on any of the Collateral or any other property or assets of the Guarantor or the equity interests of the Guarantor, except Liens created by the Security Agreement and Permitted Liens;

(b) directly or indirectly (i) liquidate, wind up, terminate, reorganize or dissolve itself (or suffer any liquidation, winding up, termination, reorganization or dissolution) or otherwise wind up or dispose of all or substantially all of its property or business or (ii)  merge or consolidate with or into any other Person, other than as contemplated by the Restructuring; or 

(c) sell, assign, transfer or otherwise dispose of or permit the sale, assignment, transfer or other disposition of any equity interests of the Guarantor such that the Borrower shall fail to own, either directly or indirectly, 100% of the issued and outstanding equity interests of the Guarantor.

ARTICLE VIII

DEFAULT

Section 8.1. It shall be a “Loan Event of Default” if:

(a) the Borrower fails to make a payment of any amount payable pursuant to Section 2.3 or any other amount payable by it pursuant to any Loan Document within three (3) Business Days of being due;

(b) the Borrower fails to perform or observe any of the covenants, obligations or agreements to be performed or observed by it under Article 7 of this Agreement or the Guarantor fails to perform or observe any of the covenants, obligations or agreements to be performed or observed by it under Section 4(i), 4(j), 4(k), 4(l), 4(m), 4(n), 4(o), 4(p) or 4(q) of the Guaranty or clause 6.1(c), 6.1(d), 6.1(e) or 6.2(c) of, or the first paragraph of clause 2 or 3 of, of the Security Agreement;

(c) the Borrower fails to perform or observe in any material respect any covenant, obligation or agreement to be performed or observed by it under this Agreement (other than any obligation referred to in clause (a) or (b) of this Section 8.1) or any other Loan Document to which it is a party or the Guarantor fails to perform or observe in any material respect any covenant, obligation or agreement to be performed or observed by it under the Guaranty or any other Loan Document (other than any obligation of the Guarantor referred to in clause (b) of this Section 8.1) and such failure by the Borrower or the Guarantor, as the case may be, continues for thirty (30) days after the earlier of (x) the Borrower or the Guarantor becoming aware of such failure or (y) receipt by the Borrower or the Guarantor of written notice thereof;

(d) any written representation or warranty made or deemed made by the Borrower or the Guarantor under any Loan Document or in any certificate delivered

 

 

19

 

hereunder or under any other Loan Document shall prove to have been incorrect in any material respect when made or deemed made and shall remain incorrect for ten (10) Business Days after receipt by the Borrower of written notice thereof;

(e) Borrower or Guarantor (i) commences a voluntary case or other proceeding or files any petition seeking liquidation, reorganization or other relief under any federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect, (ii) consents to the institution of a case or other proceeding or the filing of any petition seeking liquidation, reorganization or other relief under any federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect, (iii) applies for or consents to the appointment of a custodian, trustee, receiver, liquidation or other similar official for Borrower or the Guarantor, as the case may be, or for a substantial part of its assets, (iv) files an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) makes a general assignment for
the benefit of creditors, or (vi) takes any action for the purpose of effecting any of the foregoing;

(f) an involuntary proceeding is commenced or an involuntary petition is filed seeking (i) liquidation, reorganization or other relief in respect of Borrower or Guarantor or its respective debts, or any substantial part of its respective assets, under any federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect or (ii) the appointment of a custodian, trustee, receiver, liquidator or other similar official for Borrower or Guarantor or for a substantial part of its assets, and in any such case, such proceeding or petition remains undismissed for a period of sixty (60) days or an order or decree approving or ordering any of the foregoing is entered;

(g) any judgment or order is rendered against Borrower or Guarantor in an amount greater than or equal to Five Million Dollars ($5,000,000) in the aggregate and such judgment or order is not fully covered by insurance or discharged, vacated, stayed pending appeal, paid or fully covered by insurance within thirty (30) days after the entry thereof; 

(h) Borrower or Guarantor shall default for a period beyond any applicable grace period (i) in the payment of any principal, interest or other amount due under any agreement involving indebtedness and the outstanding amount or amounts payable under any such agreement equals or exceeds Five Million Dollars ($5,000,000) in the aggregate, or (ii) in the performance of any obligation due or in the observance of or compliance with any covenant under any agreement involving indebtedness if pursuant to such default, the holder of the obligation concerned has the right to accelerate the maturity of any indebtedness evidenced thereby which equals or exceeds Five Million Dollars ($5,000,000) in the aggregate;

(i) any material provision of any Loan Document shall for any reason cease, in any material respect, to be valid and binding on or enforceable against the Borrower or the Guarantor, as applicable or any such Person purports to revoke, terminate or rescind any Loan Document, prior to a termination thereof in accordance with its terms;

 

 

20

 

(j) the Guarantor shall fail to deposit additional Collateral in the Pledged Account as and when required pursuant to clause 2 of the Security Agreement and such failure shall continue for one (1) Business Day or more;

(k) any Lien created by the Security Agreement shall cease to be enforceable and of the same effect and priority purported to be created thereby; or

(l) if the Borrower or the Guarantor or any member of the Controlled Group shall fail to pay when due an amount or amounts aggregating in excess of Five Million Dollars ($5,000,000) that it shall have become liable to pay to the PBGC or to a Plan under Title IV of ERISA; or if notice of intent to terminate a Plan or Plans in a “distress termination” under Section 4041(c) of ERISA shall be filed under Title IV of ERISA by the Borrower, the Guarantor, any member of the Controlled Group, any plan administrator or any combination of the foregoing; or if the PBGC shall institute proceedings under Title IV of ERISA to terminate or cause a trustee to be appointed to administer such Plan or Plans; or if a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any such Plan or Plans must be terminated.

Section 8.2. Upon the occurrence and during the continuance of a Loan Event of Default, (x) the Lender may by written notice to the Borrower, effective upon the date of receipt by the Borrower, declare the Loan, the aggregate amount of interest, all fees and any other sums then outstanding under this Agreement to be forthwith due and payable, whereupon they shall become so due and payable, provided that upon the occurrence of a Loan Event of Default set forth in clause (e) or (f) of Section 8.1, the Loan, together with interest and all other sums then outstanding under this Agreement, shall be deemed to be declared due and payable and (y) in addition to any rights otherwise available to the Lender hereunder or under applicable law, the Lender shall have the rights and remedies provided in the Loan Documents.

ARTICLE IX

MISCELLANEOUS

Section 9.1. Amendments and Waivers. None of this Agreement, any other Loan Document, the Subordination Agreement or any terms hereof or thereof may be amended, supplemented or modified without the consent of the Borrower and the Lender. In the case of any waiver by the Lender of its rights hereunder, the Lender shall be restored to its former position and rights hereunder and under the other Loan Documents, and any Default or Loan Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Loan Event of Default, or impair any right consequent thereon.

Section 9.2. Notices. All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three (3) Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, addressed as follows in the case of the Borrower and the

 

 

21

 

Lender, and as set forth in an administrative questionnaire delivered to the Lender, or to such other address as may be hereafter notified by the respective parties hereto:

 

	
      Borrower:
 	
                         
 	
                        Interpool, Inc.
 211 College Road East
 Princeton, New Jersey 08540
 Attention: Chief Financial Officer
 Facsimile: (609) 452-8211
 Telephone: (609) 452-8900
 
	
                         
 	
                         
 	
                         
 
	
                        Lender:
 	
                         
 	
  ING Capital LLC
 1325 Avenue of the Americas
 New York, NY 10019
 Attention:  Head of Financial Engineering
 Facsimile: (646) 424-6077
 Telephone: (646) 424-7059
 

provided that any notice, request or demand to or upon the Lender shall not be effective until received.

Notices and other communications to the Lender hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Lender; provided that the foregoing shall not apply to notices pursuant to Section 2 unless otherwise agreed by the Lender. The Lender or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

Section 9.3. No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Lender, any right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

Section 9.4. Survival of Representations and Warranties. All representations and warranties made hereunder, in the other Loan Documents and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the making of the Loan hereunder.

Section 9.5. Payment of Expenses. The Borrower agrees (a) to pay or reimburse the Lender for all its out of pocket costs and expenses incurred in connection with the development, preparation and execution of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection with any such amendment, supplement or modification including the reasonable fees and disbursements of counsel to the Lender and filing and recording fees and expenses, with

 

 

22

 

statements with respect to the foregoing to be submitted to the Borrower, (b) upon the occurrence and during the continuance of a Loan Event of Default, to pay or reimburse the Lender for all its costs and expenses incurred in connection with the enforcement or preservation of any rights under this Agreement or the other Loan Documents and any such other documents, including the reasonable fees and disbursements of counsel to the Lender, and (c) to pay, indemnify, and hold the Lender and its officers, directors, employees, affiliates, agents and controlling persons (each, an “Indemnitee”) harmless, from and against any and all suits, actions, proceedings, claims, damages, losses, liabilities and expenses (including reasonable attorneys’ fees and disbursements and other costs of investigation or
defense, including those incurred upon any appeal) instituted or asserted by any third party or by Borrower against or incurred by any such Indemnitee as the result of credit having been extended, suspended or terminated under this Agreement and the other Loan Documents and the administration of such credit, and in connection with or arising out of the transactions contemplated hereunder and thereunder and any actions or failures to act in connection therewith, including and reasonable legal costs and expenses arising out of or incurred in connection with disputes between or among any parties to any of the Loan Documents (all the foregoing in this clause (c), collectively, the “Indemnified Liabilities”); provided, that the Borrower shall have no obligation hereunder to any Indemnitee with respect to Indemnified
Liabilities to the extent such Indemnified Liabilities are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnitee. All amounts due under this Section 9.5 shall be payable not later than ten (10) days after written demand therefor. The agreements in this Section 9.5 shall survive repayment of the Loan and all other amounts payable hereunder or under the other Loan Documents.

Section 9.6. Successors and Assigns; Assignments. 

(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) the Lender may not assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.

(b) The Lender may assign all (but not a portion) of its rights and obligations under this Agreement (including all (but not a portion) of the Loan at the time owing to it) to (i) an Affiliate of the Lender or (ii) to any other Person (other than any Person that is not a “U.S. Person” as defined in Section 7701(a)(30) of the Code (a “Non-U.S. Person”)) provided that, with respect to clause (ii) only, so long as no Loan Event of Default has occurred and is continuing, the Borrower has consented to such assignee and such assignment; from and after the effective date specified in each assignment the assignee thereunder shall be a party hereto and, to the extent of the interest assigned have the rights and obligations of a Lender under this Agreement, and the Lender thereunder shall
be released from its obligations under this Agreement and shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.9 and 9.5. 

(c) The Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure its obligations, including any pledge

 

 

23

 

or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release the Lender from any of its obligations hereunder or substitute any such pledgee or assignee for the Lender as a party hereto. 

(d) Lender, acting for this purpose as an agent of Borrower, will maintain at its principal office a register (the “Register”) for the purpose of registering the Loan and registering all transfers of the Loan. The Loan may only be transferred by a notation on the Register and in accordance with the terms of this Agreement. The Register shall be available for inspection by Borrower at any reasonable time and from time to time upon reasonable prior notice. Any recording in the Register shall be conclusive and binding in the absence of manifest error; provided that neither the failure to make any such recordation, nor any error in such recordation, shall affect the Borrower’s obligations in respect of the Loan or otherwise.

Section 9.7. Set-off. In addition to any rights and remedies of the Lender provided by Applicable Law, the Lender shall have the right, without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by Applicable Law, upon any amount becoming due and payable by the Borrower hereunder or under the other Loan Documents (whether at the stated maturity, by acceleration or otherwise), to set off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by the Lender or any branch or agency
thereof to or for the credit or the account of the Borrower. The Lender agrees promptly to notify the Borrower after any such set-off and application is made, provided that the failure to give such notice shall not affect the validity of such setoff and application.

Section 9.8. Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof. A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Lender.

Section 9.9. Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 9.10. Integration. This Agreement and the other Loan Documents represent the entire agreement of the Borrower and the Lender with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.

 

 

24

 

Section 9.11. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

Section 9.12. Submission To Jurisdiction; Waivers. The Borrower hereby irrevocably and unconditionally:

(a) submits for itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non exclusive general jurisdiction of the courts of the State of New York, the courts of the United States for the Southern District of New York, and appellate courts from any thereof;

(b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

(c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the Borrower at its address set forth in Section 9.2 or at such other address of which the Lender shall have been notified pursuant thereto;

(d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

(e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages.

Section 9.13. WAIVERS OF JURY TRIAL. THE BORROWER AND THE LENDER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

Section 9.14. Appointment of the Lender as Attorney; Further Assurances. The Borrower irrevocably constitutes the Lender the true and lawful attorney-in-fact of the Borrower for the purpose of taking any action permitted by this Agreement in connection with the enforcement of the Lien of the Security Agreement, with full power (in the name of the Borrower or otherwise), at any time during the existence of a Loan Event of Default, to ask, require, demand and receive any and all amounts and claims for amounts due and to become due under or arising out of the Loan Documents (to the extent that such moneys and claims constitute part of the Collateral), to endorse any check or other instrument or order in connection therewith and to file any claim or take any action or institute any proceeding to collect
any portion of the Collateral. Upon the written request of the Lender (and upon receipt of the form of document so

 

 

25

 

to be executed), the Borrower will duly execute and deliver any and all such further instruments and documents as may be necessary for the Lender to obtain the full benefits of the Lien of the Security Agreement and of the rights and powers herein granted. Upon the written instructions of the Lender, the Borrower will file or record any financing statement (and any continuation statement with respect thereto), any certificate of title or any other document necessary for the Lender to obtain the full benefits of the Lien of the Security Agreement and as may be specified in such instructions. 

Section 9.15. Reportable Transaction. The Lender confirms (a) that on the Closing Date it does not intend to treat any of the Transactions as a “reportable transaction” under Treas. Reg. Section 1.6011-4(b) for purposes of any United States federal income tax return and (b) that the Lender will provide the Borrower with written notice prior to filing any United States federal income tax return that treats any of the Transactions as a “reportable transaction” under Treas. Reg. Section 1.6011-4(b).

Section 9.16. USA PATRIOT Act. The Lender hereby notifies the Borrower that pursuant to the requirements of the PATRIOT Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the PATRIOT Act.

 

 

26

 

IN WITNESS WHEREOF this Agreement has been executed on behalf of the parties as of the day and year first above written.

 

	
                         
 	
                         
 	
                         
 	
                        INTERPOOL, INC.,
 as Borrower
 
	
                         
 	
                         
 	
                         
 	
                         
 	
      By: 
 	
                        
 /s/ Randal Nardone
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Randal Nardone
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Vice President
 

 

 

[Signature Page to Loan Agreement]

 

 

	 	ING CAPITAL LLC,

       as Lender

	
                         

                         
	
      By: 
 	
                        
 /s/ Thomas M. Ryan
 
	 
	
                         
 	
      Name: 
 	
                        Thomas M. Ryan
 
	 	
                         
 	
                        Title: 
 	
                        Managing Director
 
									

 

 

[Signature Page to Loan Agreement]

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