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Exhibit 10.40    
    

 
 

FULL RECOURSE PROMISSORY NOTE    
    

	
$	

200,000.00	
 	

August 15, 2001

Corte Madera, California

        FOR
VALUE RECEIVED, the undersigned, Jason Camp ("Grantee"), promises to pay to Restoration Hardware, Inc., a Delaware corporation (the "Company"), at 15 Koch Road,
Suite J, Corte Madera, California 94925, or at such other place or to such other party as Company may from time to time designate, the principal sum of Two Hundred Thousand Dollars
($200,000.00), plus interest from the date hereof as computed below. 

        1.    Interest and Principal Payments; Term.    Interest on the principal balance outstanding
on this Note shall be computed from the date hereof at the per annum rate of eight percent (8%) compounded annually and shall continue to accrue until paid. The entire amount of accrued but unpaid
interest and all outstanding principal (the "Repayment Amount") shall be due and payable at the close of business
on August 15, 2006 (the "Repayment Date"). Interest shall be computed on the basis of a year of 365 days for the actual number of days elapsed. 

        2.    Method and Application of Payment.    All amounts payable under this Note are payable in
lawful money of the United States, without notice, demand, offset or deduction. Checks will constitute payment only when collected. Any amount paid on this Note shall be applied first, to payment of
accrued but unpaid interest on this Note, then toward the outstanding principal balance of this Note. 

        3.    Prepayment Permitted.    Principal and interest may be prepaid in whole or in part by
Grantee without penalty or premium at any time. 

        4.    Event of Default and Remedies.    Any one of the following occurrences shall constitute
an "Event of Default" under this Note: 

	(a)
	Grantee
voluntarily ceases to be employed by the Company or the Company terminates Grantee's employment for Cause.

	(b)
	Grantee
shall fail to pay any payment of principal or interest, within thirty (30) days of the date when due in accordance with the terms hereof; 

        Upon
the occurrence of any Event of Default hereunder, the entire Repayment Amount shall, at the option of the Company and without notice or demand of any kind to Grantee or any other
person, immediately become due and payable, and the Company shall have and may exercise any and all rights and remedies available to it at law or in equity. 

        5.    Governing Law.    This Note shall be governed by and construed in accordance with the
laws of the State of California. This Note has been delivered to the Company and accepted by the Company in the State of California. 

        IN
WITNESS WHEREOF, the undersigned authorized party has executed and delivered this Note as of the date first written above. 

	

 	

GRANTEE:
	

 	

/s/  JASON CAMP      
 JASON CAMP

1

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Exhibit 10.40

FULL RECOURSE PROMISSORY NOTEExhibit 4.2

 

THIRD SUPPLEMENTAL INDENTURE

 

THIRD SUPPLEMENTAL INDENTURE (the “Supplemental
Indenture”), dated as of
                   ,
2004, to the Indenture (defined below) made by and among Foster
Wheeler LLC, a limited liability company organized under the laws of
Delaware (the “Company”), and BNY Midwest Trust Company, an Illinois trust
company, as Trustee (the “Trustee”), as successor to the obligations
of Harris Trust and Savings Bank, an Illinois banking corporation.

 

W I T N E S S E T
H

 

WHEREAS, pursuant to a declaration of trust (the
"Declaration of Trust"),
dated as of May 8, 1998, executed by the Company (as successor to Foster
Wheeler Corporation by operation of merger) and the trustees of FW Preferred
Capital Trust I, a wholly-owned business trust organized under the laws of
Delaware (the "Trust"),
the Trust has issued 9.00% Preferred Securities, Series I (liquidation amount
$25 per preferred security) (the "Trust
Preferred Securities");

 

WHEREAS, in connection with the issuance by the Trust
of the Trust Preferred Securities, the Company issued $175,000,000 of its 9%
Junior Subordinated Deferrable Interest Debentures, Series I (the "Debentures") to the Trust pursuant to
a Junior Subordinated Indenture, dated as of January 13, 1999, with the Trustee,
as amended and supplemented by the First Supplemental Indenture dated as of
January 13, 1999 (the "First
Supplemental Indenture") and the Second Supplemental Indenture
dated as of March 15, 2003 (as so amended and supplemented, the "Indenture");

 

WHEREAS, the Company desires to amend the Indenture
for the purpose of changing and eliminating certain provisions;

 

WHEREAS, Section 9.02 of the Indenture provides
that the Indenture may be amended, subject to certain exceptions, with the
consent of the Holders of a majority in aggregate principal amount of the
outstanding Debentures;

 

WHEREAS, the Trust holds all of the Debentures;

 

WHEREAS, pursuant to the Declaration of Trust, legal
title to all assets of the Trust are vested in the Property Trustee;

 

WHEREAS, pursuant to the Indenture, if the Debentures
are held by a Property Trustee, an amendment to the Indenture may be affected
with the consent of the holders of a Majority in Liquidation Amount (as defined
in the Declaration of Trust) of the Trust Securities;

 

WHEREAS, Section 7 of Annex I to the Declaration of
Trust provides that in the event the consent of the Property Trustee as the
holder of the Debentures is required under the Indenture, the Property Trustee
shall act as directed by a Majority in Liquidation Amount of the Trust
Securities;

 

WHEREAS, the Company has received consents to the
following amendments from the Holders of at least a Majority in Liquidation
Amount of the outstanding Debentures; and

 

WHEREAS, all conditions precedent to amend the
Indenture and to make this Third Supplemental Indenture a valid and binding
instrument in accordance with its terms have been satisfied.

 

NOW, THEREFORE, in consideration of the foregoing and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Trustee agree as follows:

 

 

ARTICLE I

EFFECTIVENESS AND EFFECT

 

SECTION
1.1.  Effectiveness
and Effect.

 

This Third Supplemental Indenture shall take effect on
the date hereof.  The provisions set
forth in this Third Supplemental Indenture shall be deemed to be, and shall be
construed as part of, the Indenture. 
All references to the Indenture in the Indenture or in any other
agreement, document or instrument delivered in connection therewith or pursuant
thereto shall be deemed to refer to the Indenture as amended by this Third
Supplemental Indenture.

 

ARTICLE II

AMENDMENT OF CERTAIN PROVISIONS OF THE INDENTURE

 

SECTION
2.1.  Deletion of Certain Provisions.

 

(a)           The
section headings and the text of Section 4.03 and 10.01 of the Indenture and
Section 7.1 of the First Supplemental Indenture are hereby deleted and
eliminated in their entirety and replaced with “[Intentionally Deleted by
Amendment]”.

 

(b)           All
references in the Indenture, as amended by this Section 2.1, to any of the
provisions deleted and eliminated as provided above, or to terms defined in
such provisions, shall also be deemed deleted and eliminated.

 

ARTICLE III

MISCELLANEOUS

 

SECTION
3.1.  Indenture Effective.

 

Except as amended and supplemented hereby, the
Indenture is hereby ratified and confirmed in all respects and shall remain in
full force and effect.

 

SECTION
3.2.  Amendment; Discharge.

 

No provision of this Third Supplemental Indenture may
be changed, waived, discharged or terminated orally, but only by an instrument
in writing signed by the parties hereto.

 

SECTION
3.3.  Notices.

 

All notices provided hereunder shall be deemed made
when delivered to the principal executive offices of the party to be notified.

 

SECTION
3.4.  Governing Law.

 

This Third Supplemental Indenture shall be governed by
and construed in accordance with the internal laws of the State of New York
applicable to agreements made and to be performed entirely within such State,
without regard to the conflicts of law principles of such State.

 

SECTION
3.5.  Counterparts.

 

This Third Supplemental Indenture may be executed in
counterparts, each of which when so executed shall be an original, but all such
counterparts shall together constitute one and the same instruments.

 

2

 

SECTION
3.6.  Trustee.

 

The Trustee makes no representations as to the
validity or sufficiency of this Third Supplemental Indenture.  The statements and recitals herein are
deemed to be those of the Company not of the Trustee.

 

SECTION
3.7.  Trust Indenture Act to Control.

 

If and to the extent that any provision of this Third
Supplemental Indenture limits, qualifies or conflicts with the duties imposed
by Sections 310 to 318, inclusive, of the TIA, such imposed duties shall
control.  If any provision of this Third
Supplemental Indenture modifies or excludes any provision of the TIA that may
be so modified or excluded, the latter provision shall be deemed to apply to
this Third Supplemental Indenture as so modified or excluded, as the case may
be.

 

SECTION
3.8.  Headings.

 

The titles and headings of the articles and sections
of this Third Supplemental Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.

 

SECTION
3.9.  Separability.

 

In case any one or more of the provisions contained in
this Third Supplemental Indenture shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Third
Supplemental Indenture, but this Third Supplemental Indenture shall be
construed as if such invalid or illegal or unenforceable provision had never
been contained herein or therein.

 

SECTION
3.10.  Benefits of Supplemental Indenture.

 

Nothing in this Third Supplemental Indenture, the
Indenture or the Debentures, express or implied shall give to any Person, other
than the parties hereto and thereto and their successors hereunder and
thereunder and the Holders of Debentures, any benefit of any legal or equitable
right, remedy or claim under the Indenture, this Third Supplemental Indenture
or the Debentures.

 

SECTION
3.11.  Assignment.

 

The Company will have the right at all times to assign
any of its respective rights or obligations under this Third Supplemental
Indenture to a direct or indirect wholly owned Subsidiary of the Company; provided
that, in the event of any such assignment, the Company will remain liable for
all such obligations.  Subject to the
foregoing, this Third Supplemental Indenture is binding upon and inures to the
benefit of the parties thereto and their respective successors and
assigns.  This Third Supplemental
Indenture may not otherwise be assigned by the parties thereto.

 

SECTION
3.12.  Definitions.

 

Capitalized terms used but not defined herein shall
have the respective meanings ascribed to them in the Indenture.

 

3

 

IN WITNESS WHEREOF, the Company and the Trustee have
caused this Third Supplemental Indenture to be executed and delivered as of the
date first written above.

 

	
   

  	
  FOSTER WHEELER LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   Name:

  
	
   

  	
   Title: 
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BNY MIDWEST TRUST
  COMPANY, as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   Name: 
  C. Potter

  
	
   

  	
   Title: 
  Assistant Vice President

  
	
   

  	
   

  
	
   

  	
   

  

 

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