Document:

exv10w1

 

Exhibit 10.1

Execution Copy – March 16, 2006

AGREEMENT

     This Agreement dated March 16, 2006, between Lafarge North America Inc., a Maryland
corporation (“Lafarge N.A.”) formerly known as Lafarge Corporation, Kilmer Van Nostrand Co.
Limited, an Ontario corporation (“Kilmer”) and Kilmer LCW Limited, an Ontario subsidiary
corporation of Kilmer (“LCW”):

     WHEREAS, on December 29, 2000, Lafarge N.A. issued a certain Warrant to Purchase Lafarge
Corporation Common Stock in favor of Kilmer, pursuant to which, subject to the terms and conditions
set forth therein, the Holder of the warrant from December 29, 2005 through December 29, 2015 is
entitled to receive 4,400,000 shares of the Common Stock of Lafarge N.A., upon the proper exercise
of the warrant, including payment of the exercise price of U.S. $29.00 per share (the “Warrant”);

     WHEREAS, Kilmer transferred the Warrant to LCW as of August 22, 2001;

     WHEREAS, on February 21, 2006, Lafarge S.A., a société anonyme organized under the laws of
France, and the majority stockholder of Lafarge N.A., commenced a tender offer through its
wholly-owned subsidiary Efalar Inc., a Delaware corporation, for the shares of Common Stock of
Lafarge N.A. that it does not already own (the “Tender Offer”);

     WHEREAS, Kilmer and LCW have requested and Lafarge N.A. deems it advisable and has agreed to
amend the terms of the Warrant to abridge the warrant exercise notice period provided in the
Warrant in order to permit the Holder, should the Holder deem it appropriate in its absolute
discretion, to effect a conditional tender to the Tender Offer, as it may be amended, or to any
other tender offer or other transaction involving the Common Stock of Lafarge N.A. that may
hereafter be implemented by any person, and Kilmer and LCW have agreed to waive the notice of any
going private transaction or change of control transaction required, to the extent applicable, by
the last paragraph of Section 1.1 of the Warrant in respect of the Tender Offer.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, Lafarge N.A., Kilmer and LCW agree as follows:

1

 

Execution Copy – March 16, 2006

     1. Section 3.2 of the Warrant is hereby amended inserting “(a)” prior to the first full
sentence thereof and by adding new subsections (b), (c) and (d) as follows:

(b) At the option of the Holder and without limitation to the Holder’s ability to
exercise the Warrant in accordance with Section 3.2(a), notwithstanding Section
3.2(a), in the event of a tender offer for Common Stock of the Company or other
transaction requiring the tender or surrender of Common Stock in order to
participate (an “Offer”), the Holder may exercise the Warrant without regard to the
thirty (30) day notice period applicable to the Notice of Exercise provided in
Section 3.2(a) at any time prior to the acceptance of shares of Common Stock for
payment pursuant to the Offer (the “Acceptance”). The Exercise Notice delivered as
provided in this Section 3.2(b) shall be in the form attached as Attachment B
hereto. Such Notice of Exercise shall be revocable by the Holder at any time prior
to the Acceptance.

(c) In the event that the Holder exercises the Warrant in accordance with Section
3.2(b), notwithstanding Section 3.3, the Company shall instruct and use its best
efforts to cause its transfer agent to issue and deliver to the Person or Persons
entitled to receive the same a certificate or certificates for the number of shares
of Common Stock issuable upon such exercise such that the Holder may tender in
accordance with the requirements of the Offer.

(d) In the event that (i) an Offer expires without an Acceptance of the shares
tendered in connection with the Exercise Notice or (ii) the Notice of Exercise
delivered pursuant to Section 3.2(b) is revoked no later than two New York Stock
Exchange trading days prior to an Acceptance, such Notice of Exercise shall be null
and void and without any further effect and this Warrant shall continue to be
outstanding and unexercised by the Holder thereof and no exercise price shall
have been due in respect thereof (and any advance payment of exercise price shall be
returned to the Holder).

2

 

Execution Copy – March 16, 2006

2. Kilmer and LCW hereby waive the requirement that the Holder receive prior notice as
specified in the last paragraph of Section 1.1 of the Warrant in respect of the Tender Offer
to the extent applicable.

3. Except as provided herein, the terms and conditions of the Warrant have not been amended,
modified or waived and remain in full force and effect. Initially capitalized terms used
herein without definition shall have the same definitions assigned to them in the Warrant.

[Signature page follows]

3

 

Execution Copy – March 16, 2006

     IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be executed and
delivered by a duly authorized person on the date first written above.

	 	 	 	 	 
	 	LAFARGE NORTH AMERICA INC.

 	 
	 	By:  	/s/ Eric C. Olsen
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	KILMER VAN NOSTRAND CO. LIMITED

 	 
	 	By:  	/s/ Lawrence M. Tanenbaum
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	KILMER LCW LIMITED

 	 
	 	By:  	/s/ Lawrence M. Tanenbaum
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

4

 

ATTACHMENT B

CONDITIONAL NOTICE OF EXERCISE

			
	To:	 	LAFARGE NORTH AMERICA INC. (the “Company”)

     The undersigned hereby elects to exercise the right to purchase set forth within and
represented by the Warrant attached hereto                                         shares of Common
Stock of the Company as provided for therein, which exercise is to be effective as of the date
that, pursuant to the offer made by                                          [name of offeror] for
Common Stock of the Company pursuant to                                         [title of document
implementing the Offer] (the “Offer”), such shares of Common Stock have been accepted for payment
(the “Acceptance”, and the date thereof, the “Exercise Date”) and agrees to tender no later than
the first business day immediately following such Exercise Date (unless the Acceptance occurs prior
to 11:00 a.m. Maryland time, in which case such purchase price shall be paid on such Exercise Date)
payment of the full purchase price for such shares in the form of a wire transfer in immediately
available funds, or by such other means as may be agreed by the Company and the Holder, in the
aggregate amount of $                      U.S. Dollars. If said number of shares shall not be all the
shares purchasable under the within Warrant, a new Warrant Certificate is to be issued in the name
of said undersigned for the balance remaining of the shares purchasable thereunder less any
fraction of a share paid in cash. Please issue a certificate or certificates for such shares of
Common Stock in the name of, and pay any cash for any fractional share to                     .

     In the event that the Offer expires without an Acceptance, this Notice of Exercise shall be
null and void and without any further effect and the Warrant attached hereto shall continue to be
outstanding and unexercised by the Holder thereof.

     This Conditional Notice of Exercise shall be revocable by the Holder by notice in writing to
the Company (including by facsimile transmission) addressed to its General Counsel at any time
prior to two New York Stock Exchange trading days prior to an acceptance of shares of Common Stock
for payment pursuant to the Offer.

     The undersigned certifies that he/she is not a U.S. person and the warrant being exercised
hereby is not being exercised on behalf of a U.S. person as such term is defined within Regulation
902(k) promulgated under the Securities Act of 1933, as amended.

Dated:
                    ,
20     

	 	 	 	 	 	 	 
	By:

	 	 	 	Signature:	 	 
	 

	 	 
	 	 	 	 
	 

	 	Print Name:	 	 	 	 

5exv10w1

 

Exhibit 10.1

Republic Properties Corporation

Commercially Sensitive & Confidential

10 March 2006

Mark Keller,

Chief Executive Officer

Republic Property TRS, LLC

1280 Maryland Avenue, SW, Suite 280

Washington, DC 20024

			
	     Re:	 	1201 Maryland Avenue — Portals Phase III (“Portals III”);

Parcel 47D LLC (“Parcel 47D”); Portals Interests LLC (“PILLC”); and

Portals Development Associates Limited Partnership (“PDA”)

Washington, DC — Recapitalization of Certain Loans

Dear Mr. Keller:

As you know, Parcel 47D is a wholly owned, single purpose entity established by PDA to develop and
own Portals III. PILLC is a wholly owned, single purpose entity established by PDA to facilitate a
$10 million credit line with iStar Financial used to fund the costs of Parcel 47D. Currently,
Republic Property TRS, LLC (the “TRS”), an indirect wholly owned subsidiary of Republic Property
Trust (“RPT”), provides development services to Portals III pursuant to that Development Services
Rights and Management Services Rights Contribution Agreement by and among Republic Property Limited
Partnership, Republic Properties Corporation, Richard L. Kramer and Steven A. Grigg, dated as of
September 23, 2005. This letter serves to document our agreement with regard to the exclusive
engagement of the TRS during the term of this letter agreement to provide additional services to
Parcel 47D and PILLC in connection with a recapitalization and extension of the construction loans
(including the i Star line of credit loan) for Portals III (the “Construction Loan Replacement”).

			
	     Objective	 	Parcel 47D seeks to promptly
recapitalize its existing construction
loan for Portals III with Corus Bank
and iStar Financial. PILLC seeks to
promptly recapitalize its $10 million
credit line with iStar Financial, which
has provided monies to Parcel 47D.

 

 

Republic Properties Corporation / 1280 Maryland Avenue, S.W./ Washington, DC 20024 / Voice- (202) 863-0300 FAX- (202) 863-4049

 

 

Commercially Sensitive & Confidential

Portals III Refinancing

Republic Property TRS, LLC

10 February 2006

Page 2

	 	    	 
	     Anticipated Structure

	 	Parcel 47D seeks adequate funds in a

comprehensive loan or loans to
	 
	 	 
	 

	 	i) Pay-off the amounts outstanding
under the Corus and iStar Financial
loans which have been used for Portals
III; and

ii) Provide funding for certain future
costs related to Portals III.

	 
	 	 
	     Compensation

	 	Upon the closing of the Construction
Loan Replacement, the TRS will be
entitled to a fee of one-half percent
(0.5%) of the aggregate amount of
financing, subject to a maximum fee of
$600,000 (the “Loan Placement Fee”).
This Loan Placement Fee will be
immediately payable upon the
consummation of the Construction Loan
Replacement.
	 
	 	 
	 

	 	Third-party expenses for reasonable
travel and other similar expenses will
be paid (promptly as incurred) by
Parcel 47D to the TRS.
	 
	 	 
	 

	 	Other than reimbursement of third party
expenses as aforesaid, no fee or other
compensation shall be payable to the
TRS unless the Construction Loan
Replacement is consummated.
	 
	 	 
	     Time

	 	The obligations of each party set forth
in this letter agreement shall continue
until May 31, 2006, unless extended in
writing by the parties (the “Expiration
Date”). If, however, (i) a loan
commitment or term sheet for the
refinancing of the loans has been
executed by Parcel 47D, PILLC or any
affiliate thereof and (ii) the closing
on the Construction Loan Replacement
under such loan commitment or term
sheet (or any modification thereof)
occurs within six (6) months after the
Expiration Date, TRS shall be paid its
Loan Placement Fee at such closing.

 

 

Republic Properties Corporation / 1280 Maryland Avenue, S.W./ Washington, DC 20024 / Voice- (202) 863-0300 FAX- (202) 863-4049

 

 

Commercially Sensitive & Confidential

Portals III Refinancing

Republic Property TRS, LLC

10 February 2006

Page 3

[Intentionally left blank]

 

 

Republic Properties Corporation / 1280 Maryland Avenue, S.W./ Washington, DC 20024 / Voice- (202) 863-0300 FAX- (202) 863-4049

 

 

Commercially Sensitive & Confidential

Portals III Refinancing

Republic Property TRS, LLC

10 February 2006

Page 4

	 	    	 
	     Approval Condition

	 	The execution of this letter
agreement by the TRS and its
obligations to perform hereunder is
subject to the approval of a
majority of the disinterested
members of RPT’s board of trustees.
	 
	 	 
	     Disclosure Requirement

	 	The parties agree that RPT may, as
required, file with the Securities
and Exchange Commission (i) a
current report on Form 8-K that
will include a description of the
material terms and conditions of
this letter agreement, and (ii)
this letter agreement, either as an
exhibit to the 8-K or in a
subsequent public filing of RPT.
	 
	 	 
	     Application of Provisions

        under
Option Agreement

	 	The parties understand, acknowledge
and agree that, in accordance with
the provisions of the Option
Agreement dated November 28, 2005
between Parcel 47D and Republic
Property Limited Partnership (the
“Option Agreement”), the
Construction Loan Replacement
described in this letter agreement
shall constitute a “construction
loan” and not a “Refinancing”.
Accordingly, any Construction Loan
Replacement pursuant to this letter
agreement shall cause the
“Construction Loan Maturity Date”
under the Option Agreement to be
the actual maturity date (without
acceleration, but including
extensions thereof) of such
Construction Loan Replacement (the
“New Maturity Date”), and
the “Initial Option Period” shall
expire upon the earlier of (i) four
(4) years after the date on which a
certificate of occupancy for the
base building of the “Property” is
issued by the applicable District
of Columbia authorities or (ii)
sixty (60) days prior to the New
Maturity Date under the
Construction Loan Replacement (or
the maturity date, as described in
the Option Agreement, of the
construction loan or construction
loans obtained by or on behalf of
Parcel 47D for the “Property”).
Capitalized terms in quotes in this
paragraph shall have the meanings
ascribed to such terms in the
Option Agreement.

 

 

Republic Properties Corporation / 1280 Maryland Avenue, S.W./ Washington, DC 20024 / Voice- (202) 863-0300 FAX- (202) 863-4049

 

 

Commercially Sensitive & Confidential

Portals III Refinancing

Republic Property TRS, LLC

10 February 2006

Page 5

[Intentionally left blank.]

* * *

 

 

Republic Properties Corporation / 1280 Maryland Avenue, S.W./ Washington, DC 20024 / Voice- (202) 863-0300 FAX- (202) 863-4049

 

 

Republic Properties Corporation

     If the terms set forth in this letter agreement are acceptable to the TRS, please indicate
your concurrence by acknowledging this letter agreement and returning a copy for our records.

Sincerely,

PARCEL 47D LLC

/s/ Steven Grigg

Steven Grigg,

President

PORTALS INTERESTS LLC

/s/ Steven Grigg

Steven Grigg,

President

			
	cc:	 	James Dowdy

Joseph Fries, Esq.

Richard Kramer

Ronald D. Paul

Ronald Kramer

John Chalsty

Gregory Leisch

Agreed and Accepted

REPUBLIC PROPERTY TRS, LLC

	 	 	 	 	 
	/s/ Mark Keller
	 	 	 	 
	 
	 	 	 	 
	Mark Keller, Chief Executive Officer

	 	Date
	 	March 13, 2006            
	 

	 	 	 	 

 

Agreed and Accepted

REPUBLIC PROPERTY TRUST

	 	 	 	 	 
	/s/ Ronald Paul

	 	Date
	 	March 13, 2006            
	 

	 	 	 	 
	Name: Ronald D. Paul
	 	 	 	 
	Title: Independent Director
	 	 	 	 

 

 

Republic Properties Corporation / 1280 Maryland Avenue, S.W./ Washington, DC 20024 / Voice- (202) 863-0300 FAX- (202) 863-4049

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