Document:

exv4w1

 

Exhibit 4.1

(FACE OF NOTE)

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM IN ACCORDANCE WITH THE PROVISIONS
OF THE INDENTURE AND THE TERMS OF THE SECURITIES, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO AT&T INC., OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

AT&T INC.

6.375% Senior Notes due 2056

			
	 	 	 
	 
	 	CUSIP NO. 00211G208
	 	 	 
	 
	 	ISIN NO. US00211G2084
	No. R-1	 	 
	 
	 	$500,000,000

     AT&T Inc., a corporation duly organized and existing under the laws of the State of Delaware
(herein called “AT&T”, which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of Five Hundred Million Dollars ($500,000,000) on February 15, 2056 (the “Maturity
Date”), and to pay interest on said principal sum from February 12, 2007 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, quarterly in arrears on
February 15, May 15, August 15 and November 15 in each year, commencing on May 15, 2007 (each an
“Interest Payment Date”) and on the Maturity Date, at the interest rate of 6.375% per annum, until
the principal hereof is paid or made available for

 

 

payment. The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Note (or
one or more Predecessor Notes) is registered at the close of business on the Regular Record Date
for such interest, which shall be the close of business on February 1, May 1, August 1 or November
1, as the case may be (each, a “Regular Record Date”), next preceding such Interest Payment Date.
Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to
the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note
(or one or more Predecessor Notes) is registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Notes not less than 15 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Notes may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture.

     Any money that AT&T deposits with the Trustee or any Paying Agent for the payment of principal
or any interest on this Note that remains unclaimed for two years after the date upon which the
principal and interest are due and payable, will be repaid to AT&T upon AT&T’s request unless
otherwise required by mandatory provisions of any applicable unclaimed property law. After that
time, unless otherwise required by mandatory provisions of any unclaimed property law, the Holder
of this Note will be able to seek any payment to which such Holder may be entitled to collect only
from AT&T.

     If the Notes are issued in definitive form, payment of the principal and interest on this Note
due at the Maturity Date or upon redemption will be made at the Maturity Date or upon redemption,
as the case may be, upon presentation of this Note, in immediately available funds, at the office
of The Bank of New York, the Paying and Transfer Agent and Registrar for the Notes, currently
located at 101 Barclay Street, New York, New York 10286.

     Payment of interest on this Note due on an Interest Payment Date, other than interest at
maturity or upon redemption, may be paid by check mailed to the address of the Holder entitled
thereto as such address shall appear in the Note register. Notwithstanding the foregoing, (1) the
Depository as Holder of the Notes or (2) a Holder of more than U.S.$5,000,000 in aggregate
principal amount of Notes in definitive form is entitled to require the Paying Agent to make
payments of interest, other than interest due at maturity or upon redemption, by wire transfer of
immediately available funds into an account maintained by the Holder in the United States, by
sending appropriate wire transfer instructions as long as the Paying Agent receives the
instructions not less than ten days prior to the applicable Interest Payment Date.

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

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     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

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     IN WITNESS WHEREOF, AT&T INC. has caused this instrument to be signed in its corporate name,
manually or by facsimile, by its duly authorized officers and has caused its corporate seal to be
imprinted hereon.

	 	 	 	 	 	 	 
	Dated: February 12, 2007	 	AT&T INC.
	 
	 	 	 	 	 	 
	[SEAL]	 	 	 	 
	 
	 	 	 	By:	/s/ Richard G. Lindner	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	Richard G. Lindner

Senior Executive Vice President

and Chief Financial Officer	 
	 
	 
	 	 	 	By:	/s/ Charles P. Allen	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	Charles P. Allen

Assistant Treasurer	 
	 
	Trustee’s Certificate of Authentication	 	 	 	 
	 
	 	 	 	 	 	 
	This is one of the 6.375% Senior Notes of
the series designated herein referred to
in the within-mentioned Indenture.	 	 	 	 
	 
	 	 	 	 	 	 
	THE BANK OF NEW YORK, as Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	/s/ Mary K. LaGumina	 	 	 	 
		
Authorized Signatory	 	 

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REVERSE OF NOTE

     This Note is one of a duly authorized issue of debt securities of AT&T of the series specified
on the face hereof, issued under and pursuant to an Indenture, dated as of November 1, 1994,
between AT&T and The Bank of New York, as Trustee (the “Trustee,” which term includes any successor
Trustee under the Indenture), to which indenture and all indentures supplemental thereto
(collectively, the “Indenture”) reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the Trustee, AT&T and the
Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and
delivered. The Notes will be issued in fully registered form only and in denominations of $25 and
integral multiples of $25.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of AT&T and the rights of the Holders of the Notes
under the Indenture at any time by AT&T and the Trustee with the consent of the Holders of a
majority in principal amount of the Notes at the time outstanding. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount of the Notes at the
time outstanding to waive compliance by AT&T with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder
of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in
lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of AT&T, which is absolute and unconditional, to pay the principal
of and interest on this Note at the times, place and rate, and in the coin or currency, herein
prescribed.

     Registrar and Paying Agent

     AT&T shall maintain in the Borough of Manhattan, The City of New York, an office or agency
where Notes may be surrendered for registration of transfer or exchange (“Registrar”) and an office
or agency where Notes may be presented for payment or for exchange (“Paying Agent”). AT&T has
initially appointed the Trustee, The Bank of New York, as its Registrar and Paying Agent. AT&T may
vary or terminate the appointment of any of its paying or transfer agencies, and may appoint
additional paying or transfer agencies.

     Optional Redemption by AT&T

     The Notes will be redeemable, as a whole or in part, at AT&T’s option, at any time and from
time to time on or after February 15, 2012, on at least 30 days’, but not more than 60 days’, prior
notice mailed to the registered address of each Holder of the Notes. The redemption price

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will be equal to 100% of the principal amount of the Notes to be redeemed plus accrued and
unpaid interest to the redemption date.

     On and after the redemption date, interest will cease to accrue on the Notes or any portion of
the Notes called for redemption, unless AT&T defaults in the payment of the redemption price and
accrued interest. On or before the redemption date, AT&T will deposit with a Paying Agent or the
Trustee money sufficient to pay the redemption price of and accrued interest on the Notes to be
redeemed on that date. If less than all of the Notes of any series are to be redeemed, the Notes
to be redeemed shall be selected by the Trustee by lot or by such other method as the Trustee in
its sole discretion deems to be fair and appropriate.

     Payment of Additional Amounts

     AT&T will, subject to certain exceptions and limitations set forth below, pay as additional
interest on the Notes such additional amounts (“Additional Amounts”) as are necessary so that the
net payment by AT&T or a Paying Agent of the principal of and interest on this Note to a person
that is a United States Alien Holder, after deduction for any present or future tax, assessment or
governmental charge of the United States or a political subdivision or taxing authority thereof or
therein, imposed by withholding with respect to the payment, will not be less than the amount that
would have been payable in respect of the Notes had no withholding or deduction been required;
provided, however, that the foregoing obligation to pay additional amounts shall not apply:

     (1) to any tax, assessment or governmental charge that is imposed or withheld solely
because the beneficial owner, or a fiduciary, settlor, beneficiary or member of the
beneficial owner if the beneficial owner is an estate, trust or partnership, or a person
holding a power over an estate or trust administered by a fiduciary holder:

     (a) is or was present or engaged in trade or business in the United States or
has or had a permanent establishment in the United States;

     (b) is or was a citizen or resident or is or was treated as a resident of the
United States;

     (c) is or was a foreign or domestic personal holding company, a passive foreign
investment company or a controlled foreign corporation with respect to the United
States or is or was a corporation that has accumulated earnings to avoid United
States federal income tax; or

     (d) is or was a “10-percent shareholder” of AT&T;

     (2) to any Holder that is not the sole beneficial owner of the Notes, or a portion
thereof, or that is a fiduciary or partnership, but only to the extent that the beneficial
owner, a beneficiary or settlor with respect to the fiduciary, or a member of the
partnership would not have been entitled to the payment of an additional amount had

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such beneficial owner, beneficiary, settlor or member received directly its beneficial
or distributive share of the payment;

     (3) to any tax, assessment or governmental charge that is imposed or withheld solely
because the beneficial owner or any other person failed to comply with certification,
identification or information reporting requirements concerning the nationality, residence,
identity or connection with the United States of the Holder or beneficial owner of the
Notes, if compliance is required by statute, by regulation of the United States Treasury
Department or by an applicable income tax treaty to which the United States is a party as a
precondition to exemption from such tax, assessment or other governmental charge;

     (4) to any tax, assessment or governmental charge that is imposed other than by
deduction or withholding by AT&T or a Paying Agent from the payment;

     (5) to any tax, assessment or governmental charge that is imposed or withheld solely
because of a change in law, regulation, or administrative or judicial interpretation that
becomes effective after the day on which the payment becomes due or is duly provided for,
whichever occurs later;

     (6) to an estate, inheritance, gift, sales, excise, transfer, wealth or personal
property tax or any similar tax, assessment or governmental charge;

     (7) to any tax, assessment or other governmental charge any paying agent (which term
may include us) must withhold from any payment of principal of or interest on any note, if
such payment can be made without such withholding by any other paying agent; or

     (8) in the case of any combination of the above items.

Except as specifically provided herein, AT&T shall not be required to make any payment with respect
to any tax, assessment or governmental charge imposed by any government or a political subdivision
or taxing authority thereof or therein.

     “United States Alien Holder” means (a) a nonresident alien individual, (b) a foreign
corporation, (c) a foreign partnership or (d) an estate or trust that in either case is not subject
to United States federal income tax on a net income basis or income or gain from a Note.

     Redemption Upon a Tax Event

     If (a) AT&T becomes or will become obligated to pay Additional Amounts as a result of any
change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the
United States (or any political subdivision or taxing authority thereof or therein), or any change
in, or amendment to, any official position regarding the application or interpretation of such
laws, regulations or rulings, which change or amendment is announced or becomes

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effective on or after February 6, 2007, or (b) a taxing authority of the United States takes
an action on or after February 6, 2007, whether or not with respect to AT&T or any of its
affiliates, that results in a substantial probability that AT&T will or may be required to pay such
Additional Amounts, then AT&T may, at its option, redeem, as a whole, but not in part, the Notes on
any interest payment date on not less than 30 nor more than 60 calendar days’ prior notice, at a
redemption price equal to 100% of their principal amount, together with interest accrued thereon to
the date fixed for redemption. However, AT&T may determine, in its business judgment, that the
obligation to pay these Additional Amounts cannot be avoided by the use of reasonable measures
available to it, not including substitution of the obligor under the Notes. No redemption pursuant
to (b) above may be made unless AT&T shall have received an opinion of independent counsel to the
effect that an act taken by a taxing authority of the United States results in a substantial
probability that AT&T will or may be required to pay the Additional Amounts and AT&T shall have
delivered to the Trustee a certificate, signed by a duly authorized officer stating, that based on
such opinion, AT&T is entitled to redeem the Notes pursuant to their terms.

     Further Issues

     AT&T reserves the right from time to time, without notice to or the consent of the Holders of
the Notes, to create and issue further notes ranking equally and ratably with the Notes in all
respects, or in all respects except for the payment of interest accruing prior to the issue date or
except for the first payment of interest following the issue date of those further notes. Any
further notes will have the same terms as to status, redemption or otherwise as the Notes. Any
further notes shall be issued pursuant to a resolution of the board of directors of AT&T, a
supplement to the Indenture, or under an officers’ certificate pursuant to the Indenture.

     Notes in Definitive Form

     If (1) an Event of Default has occurred with regard to the Notes represented by this Note and
has not been cured or waived in accordance with the Indenture, or (2) the Depository is at any time
unwilling or unable to continue as depository and a successor depository is not appointed by AT&T
within 90 days, AT&T may issue notes in definitive form in exchange for this Note. In either
instance, an owner of a beneficial interest in the Notes will be entitled to the physical delivery
in definitive form in exchange for this Note, equal in principal amount to such beneficial interest
and to have such Notes registered in its name.

     Notes so issued in definitive form will be issued as registered notes in minimum denominations
of $25 and integral multiples of $25, unless otherwise specified by AT&T.

     Notes so issued in definitive form may be transferred by presentation for registration to the
Registrar at its New York office and must be duly endorsed by the Holder or the Holder’s attorney
duly authorized in writing, or accompanied by a written instrument or instruments of transfer in
form satisfactory to AT&T or the Trustee duly executed by the Holder or his attorney duly
authorized in writing.

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     AT&T may require payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any exchange or registration of transfer of definitive
Notes.

     Default

     In case an Event of Default, as defined in the Indenture, shall have occurred and be
continuing, the principal hereof may be declared, and upon such declaration shall become, due and
payable, in the manner, with the effect and subject to the conditions provided in the Indenture.

     Miscellaneous

     For purposes of the Notes, a Business Day means a Business Day in The City of New York and
London.

     No director, officer, employee or stockholder, as such, of AT&T shall have any liability for
any obligations of AT&T under this Note, the Indenture or for any claim based on, in respect of or
by reason of such obligations or their creation. Each Holder by accepting this Note waives and
releases all such liability. The waiver and release are part of the consideration for the issue of
this Note.

     The Notes are the unsecured and unsubordinated obligations of AT&T and will rank pari
passu with all other evidences of indebtedness issued in accordance with the Indenture.

     Notices to Holders of the Notes will be published in authorized newspapers in The City of New
York and in London. AT&T is deemed to have given the notice on the date of each publication or, if
published more than once, on the date of the first publication.

     Prior to due presentment of this Note for registration of transfer, AT&T, the Trustee and any
agent of AT&T or the Trustee may treat the Person in whose name this Note is registered as the
owner hereof for all purposes, whether or not this Note be overdue, and neither AT&T, the Trustee
nor any such agent shall be affected by notice to the contrary.

     All terms used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture. 

     The Indenture and this Note shall be governed by and construed in accordance with the laws of
the State of New York.

9exv10wxay

 

Exhibit 10(a)

AGREEMENT TO PURCHASE

Line Segment: NW-3

County: Dallas

Parcels No.: NW3-18

THIS AGREEMENT is made by and between: Peerless Mfg. Co. hereinafter referred to as the Seller,
whether one or more and Dallas Area Rapid Transit, a regional transportation authority hereinafter
referred to as DART.

For and in consideration of the mutual covenants and conditions herein contained, the Seller agrees
to sell to DART and DART agrees to purchase, upon the terms and provisions hereof, the real
property described in Exhibit “1” attached hereto and incorporated herein for all pertinent
purposes situated in Dallas County, Texas (the “Property”) free and clear of all liens, and
TOGETHER WITH all improvements thereon and all rights and appurtenances pertaining thereto,
including any right, title and interest of Seller in and to adjacent streets or rights-of-way.

	I.	 	DESCRIPTION:

	 	(A)	 	Real estate or interest therein, identified as Parcel NW3-18 and described in
attached Exhibit “1” incorporated herein by reference, provided, however, that
notwithstanding the foregoing, upon receipt of a survey of the Property, which survey
Seller will obtain at Seller’s sole cost and expense and which survey will be certified
to Seller (the “Seller Survey”), the legal description of the Property as set forth on
the Seller Survey will be used by Seller and Purchaser for all purposes under this
Contract, including for purposes of Exhibit 1 and the Deed.
	 
	 	(B)	 	The Property interest being acquired herein is Fee Simple.

	II.	 	PURCHASE PRICE:

	 	 	 	 	 
	(A)   Amount to be paid by DART to Seller at closing (“Closing”):
	 	$	4,424,000.00	 
	 
	 	 	 	 
	TOTAL PURCHASE PRICE
	 	$	4,424,000.00	 

	III.	 	CONDITIONS AND LIMITATIONS:

	 	(A)	 	It is mutually understood by Seller and DART that this Agreement is subject to
approval of the Federal Transit Administration and the DART Board, and final DART
acceptance. Such approvals and final DART acceptance shall be evidenced by the
execution of this Agreement by DART and delivery of said executed Agreement to Seller.
	 
	 	(B)	 	The Effective Date of this Agreement shall be the date this Agreement is
executed by DART. References to the date of execution of this Agreement are to the
Effective Date.
	 
	 	(C)	 	Seller is responsible for all taxes due or delinquent on the Property as of the
date of Closing. Seller shall pay only all taxes for all years up to and including the
year preceding the year of Closing and taxes for the year of Closing shall be prorated
to the date of Closing. If the Closing occurs before the tax rate is fixed for the
year of Closing, the apportionment of taxes shall be based on the previous years’ tax
rate applied to the latest assessed valuation, but any difference in estimated and
actual taxes shall be adjusted between the parties upon the written request of either
party when the actual tax rate and assessed valuation for the year of Closing are
available. It is further understood that BUYER IS A PUBLIC BODY AND EXEMPT FROM
PAYMENT OF TAXES OF PROPERTY OWNED BY IT FROM AND AFTER THE DATE OF ITS ACQUISITION.

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	 	(D)	 	At the Closing, DART shall deliver the Purchase Price to the title company
(“Title Company”) selected by the parties, for disbursement and shall pay (a)
all costs of the survey; (b) the premium for the Owner’s Policy of Title Insurance; (c)
all costs involved in preparation and recording all documents required for Closing; (d)
all Title Company escrow fees; and (e) prepayment penalties and/or charges required to
be paid by Seller on a preexisting mortgage entered into by Seller in good faith.
	 
	 	 	 	At the Closing, Seller shall deliver a Special Warranty Deed, in the form attached
as Exhibit 2, conveying good and indefeasible title to the Property, subject only to
the permitted exceptions as set out in the Special Warranty Deed, and any other
documents reasonably required to complete the Closing in accordance with the usual
practices for Closing real estate transactions in Dallas County, Texas.
	 
	 	 	 	Subject to the permitted exceptions, Seller is responsible for delivering
unencumbered title to DART at Closing. Except as otherwise provided in this
Agreement, Seller shall be liable for any encumbrances arising after Closing as a
result of the actions of the Seller. The terms of this sub-section shall survive
the Closing.
	 
	 	 	 	Within ten (10) days of the Effective Date, DART will request a current title
commitment for the Property. DART shall, after receipt of the title commitment and
in no event less than sixty (60) days prior to the Closing, give written notice to
Seller of any objections DART has to the title as disclosed by the commitment. Any
matters shown on the title commitment to which DART does not object timely shall
become permitted exceptions.
	 
	 	 	 	Seller shall have a reasonable time, not to exceed thirty (30) days after receipt of
DART’s title objections to cure such objections, and Seller covenants and agrees to
make a reasonable effort to eliminate the objected to exceptions, PROVIDED, HOWEVER,
that in no instance shall Seller be obligated to expend funds or undertake
litigation to remove such objections. In the event Seller is unable to remove such
title objections within the time provided, DART may either (a) waive the objections
and accept such title as Seller is able to convey and proceed to close the sale with
no abatement or reduction in the Purchase Price, or (b) institute eminent domain
proceedings for the acquisition of the Property. The foregoing shall be the sole
and exclusive remedies available to DART in the event Seller is unable to remove
DART’S title objections. IN THE EVENT SELLER IS UNABLE TO PROVIDE TITLE AS REQUIRED
HEREIN, AND DART IS COMPELLED TO INITIATE EMINENT DOMAIN PROCEEDINGS TO CURE THE
TITLE, THE PURCHASE PRICE STATED IN THE CONTRACT SHALL NOT BE ADMISSIBLE IN
SUBSEQUENT EMINENT DOMAIN PROCEEDINGS AND THIS AGREEMENT AND ALL NEGOTIATIONS
ASSOCIATED WITH THIS AGREEMENT SHALL BE INADMISSIBLE UNDER RULE 408 OF THE TEXAS
RULES OF EVIDENCE. In addition to the matters set out above, DART has the right to
accept the Property with specific exceptions. The terms of this paragraph shall
survive the closing or earlier termination of this Agreement.
	 
	 	 	 	The Closing of this contract shall take place on May 1, 2007; provided, however,
Seller and Buyer may agree to an earlier date for the Closing by a written amendment
to this Agreement.
	 
	 	(E)	 	Possession of the Property shall be delivered to DART at Closing. Any
extension of occupancy beyond the date of Closing must be authorized by DART in
writing. During the period from the date of Closing until the Seller surrenders
possession to DART, the Seller shall exercise ordinary care in protecting the Property
from theft and vandalism. All Property, whether real or personal, included in this
agreement shall be delivered to DART in the same condition existing as of the effective
date of this agreement, less any reasonable wear and tear.
	 
	 	(F)	 	If DART desires a survey and/or hazardous materials study of the Property, it
shall be at DART’s expense; PROVIDED, HOWEVER, that Seller shall permit DART’s
hazardous

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	 	 	 	materials inspectors and surveyor access to the Property for the purpose of making
such survey and study, and DART indemnifies Seller against any liens or damage to
the Property or injuries to persons arising out of the performance of such work on
the Property by DART’s hazardous materials inspectors and surveyor. The terms of
this sub-section shall survive the closing or earlier termination of this Agreement.
	 
	 	(G)	 	All risk of loss to the Property shall remain upon Seller prior to Closing.
If, prior to Closing, the Property shall be damaged or destroyed by any casualty loss,
such as fire, tornado, flood or the like, DART may either terminate this contract by
written notice to Seller within ten (10) business days after receipt of notice of said
casualty loss, or proceed to Closing. If DART elects to proceed with Closing
irrespective of such casualty loss, there shall be no reduction in the Purchase Price,
but Seller shall assign to DART Seller’s interest in any insurance proceeds due to
Seller as a result of such casualty up to and including the Purchase Price. Any
insurance proceeds in excess of the Purchase Price shall remain the property of Seller.
	 
	 	(H)	 	It is understood by Seller and DART that the Property is being sold to DART
under the threat of eminent domain and that Seller’s legal responsibility for any
Environmental Condition (as defined below) with respect to the Property shall be
determined as if DART had acquired the Property from Seller through an eminent domain
proceeding. The terms of this sub-section shall survive Closing.
	 
	 	(I)	 	DART acknowledges that in connection with the sale of the Property under this
Agreement, Seller has offered DART the opportunity to conduct whatever testing DART
deems appropriate with respect to the environmental condition of the Property. DART
further acknowledges that in the event DART discovers or otherwise learns of any
Environmental Condition (as defined below) related to the Property for which DART might
or will seek a recovery from Seller, that Seller requests that DART promptly give
Seller written notice of such Environmental Condition and promptly provide Seller with
copies of all data, reports and other information regarding the Environmental Condition
(the “Environmental Condition Notice”). Seller acknowledges that whether DART gives or
does not give Seller the Environmental Condition Notice is solely within DART’s
discretion and that this Agreement does not obligate DART to give such notice.
“Environmental Condition” shall mean the presence of any Regulated Substances (defined
below) at, in, on, or under the Property, in excess of TCEQ cleanup standards for
commercial/industrial land uses as defined in 30 TAC Sec. 350.4(a)(13) (“Commercial
Standards”). “Regulated Substances” shall mean any substances whether solid, liquid or
gaseous, which are regulated by the TCEQ as a “hazardous substance,” “hazardous
material,” “hazardous waste,” “toxic substance,” or “solid waste.” The terms of this
sub-section shall survive Closing.
	 
	 	(J)	 	In the event DART determines that an Environmental Condition exists that
requires disclosure to the TCEQ and for which DART might or will seek a recovery from
Seller, Seller requests that (i) all activities be performed in a least-cost manner and
only to the extent necessary to obtain a voluntary cleanup program (“VCP”) conditional
Certificate of Completion, or such other similar closure document from TCEQ to the
effect that the Environmental Condition meets Commercial Standards and (ii) that DART
keep Seller informed of the remediation efforts and DART’s communications with the TCEQ
(collectively the “Seller’s Remediation Request”). Seller acknowledges that whether
DART gives or does not comply with Seller’s Remediation Request is solely within DART’s
discretion and that this Agreement does not obligate DART to comply with such request.
The terms of this sub-section shall survive Closing.
	 
	 	(K)	 	DART warrants to Seller that no real estate broker or salesman has performed
services on behalf of DART such as to warrant payment of a commission by reason of the
Closing of this contract. Seller has been represented by CB Richard Ellis in
connection with the Property and will be solely responsible for any commission or other
compensation that may be due to CB Richard Ellis in connection with the Closing. Under
no circumstances

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	 	 	 	will DART pay for or be responsible for a real estate commission to a broker or a
sales person.
	 
	 	(L)	 	All notices provided herein to be given to Sellers shall be in writing and
shall be given to Seller at 2819 Walnut Hill Lane, Dallas, Texas 75229 Attention: Peter
J. Burlage, Chief Executive Officer or to such other address as Seller shall hereafter
designate to DART by notice. All notices provided herein to be given to DART shall be
in writing and shall be given to Buyer at P.O. Box 660163, Dallas, Texas 75266-7230,
Attention: Assistant Vice President of Real Estate, or to such other address or
individual as DART shall hereafter designate to Seller by notice. Any and all notices
required or provided for herein shall be deemed to be effectively given when delivered
in person or when mailed by United States Registered or Certified Mail with postage
prepaid and addressed as herein above set forth.
	 
	 	(M)	 	The parties have chosen to defer discussion of the appropriate relocation costs
and other relocation benefits that will be paid by DART to Seller. These issues will
be addressed under a separate agreement between DART and Seller.
	 
	 	(N)	 	Miscellaneous:

	 	a.	 	This contract shall be construed under and in accordance with
the laws of The State of Texas, and is entirely performable in Dallas County,
Texas.
	 
	 	b.	 	This contract embodies the entire Agreement between the parties
and supersedes all prior Agreements and understandings, if any, relating to the
Property and may be amended or supplemented only by a written instrument
executed by both parties.
	 
	 	c.	 	If any provision of this contract is held to be illegal,
invalid or unenforceable under present or future laws, such provisions shall be
fully severable and the contract shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part of the
contract. The remaining provisions of the contract shall be and remain in full
force and effect and shall not be affected by the illegal, invalid or
unenforceable provision or by its severance from this contract. Furthermore,
in lieu of such illegal, invalid or unenforceable provision, there shall be
added, automatically as a part of this contract, a provision as similar in
terms to such illegal, invalid or unenforceable provision as may be possible
and be legal, valid or enforceable.
	 
	 	d.	 	This contract shall be binding and inure to the benefit of DART
and Seller and their respective heirs, personal representatives, successors and
assigns.
	 
	 	e.	 	Words of any gender used in this contract shall be held and
construed to include any other gender and words in the singular shall include
the plural, and vice versa, unless the context clearly requires otherwise.
	 
	 	f.	 	Neither party may assign its interest in this Agreement without
the prior consent of the other party.

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IN WITNESS WHEREOF AND EXECUTED by Seller this the 21st day of December 2006.

	 	 	 
	Peerless Mfg. Co.

	 	 
	/s/ Peter J. Burlage
	 	 
	 

By: Peter J. Burlage, Chief Executive Officer

	 	 
	 
	 	 
	75-0724417
	 	 
	 

Tax I.D. Number

	 	 
	 
	Peerless Mfg. Co.
	 	 
	2819 Walnut Hill Lane
	 	 
	Dallas. Texas 75229
	 	 

IN WITNESS WHEREOF AND EXECUTED by DART this the 23rd day of January 2006.

	 	 	 	 	 
	DALLAS AREA RAPID TRANSIT
	 	 
	 
	 	 	 	 
	By:

	 	/s/ Cleo Grounds	 	 
	 

	 	 	 	 
	 

	 	Cleo Grounds	 	 
	 

	 	Assistant Vice-President, Real Estate	 	 

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