Document:

Exhibit
10.4

 

GUARANTY

 

THIS GUARANTY (“Guaranty”) is made May 16, 2003, by Quixote
Corporation, a Delaware corporation (“Guarantor”), to and for the benefit of Cambridge
Leasing Corporation (“Lessor”).

 

RECITALS

 

A.                                   Lessor and Green Light Acquisition Company,
a Delaware corporation (“Lessee”), have entered into that certain Lease of even
date herewith (the “Lease”).

 

B.                                     Guarantor is the parent corporation of the
affiliated group of which Lessee is a member and Guarantor will derive
substantial benefit under the Lease and Guarantor is willing to guarantee the
obligations of Lessee under the Lease.

 

AGREEMENTS

 

NOW, THEREFORE, Guarantor, in consideration of the
matters described in the foregoing Recitals, which Recitals are incorporated
herein and made a part hereof, and for other good and valuable consideration,
the receipt and sufficiency of which are acknowledged, hereby covenants and
agrees for the benefit of Lessor and its affiliates, successors and assigns as
follows:

 

1.                                       Guarantor absolutely, unconditionally, and
irrevocably guarantees to Lessor the prompt and timely performance by Lessee of
each and all of its covenants to Lessor arising under or created by the terms
of the Lease in all cases subject to the terms of the Lease  (collectively, the “Obligations”).  This Guaranty, and the covenants and waivers
contained herein, will remain in effect until all Obligations have been
satisfied.

 

2.                                       In the event of any default by Lessee in
performance of the Obligations, as aforesaid, Guarantor agrees, on demand by
Lessor in the manner provided below in Section 3, to perform all the
Obligations as are then or thereafter to be performed under the terms of the
Lease.  The parties agree that
(a) Guarantor’s obligations under this Guaranty shall be subject to the
limitations, exclusions and exculpations of liability set forth in the Lease,
(b) except as provided Section 6, below, Guarantor may assert any and all
defenses, set-offs, or counterclaims of any kind available to Lessee so as to
deny payment related to this Guaranty including, without limitation, any such
rights acquired by Guarantor through subrogation, assignment, or otherwise and
(c) the obligations of Guarantor hereunder are dependent upon Lessor’s
performance of its obligations under the Lease.

 

3.                                       Lessor shall make its demand for payment
hereunder by delivering to Guarantor a written notice which: (i) states that it
is a demand required under this Guaranty for payment of one or more of the
Obligations, (ii) sets forth the amount and the basis for such demand, and
(iii) is signed by an authorized officer of Lessor.  Subject to the assertion of any rights it has as referenced in
Section 2, Guarantor shall make payment to

 

 

Lessor of the amount
specified in the written demand referenced in the preceding sentence in
immediately available funds not later than thirty (30) days after the delivery
of that written demand.

 

4.                                       Guarantor does hereby (a) waive notice
of acceptance of this Guaranty by Lessor; (b) waive any notices or demands
that are not required by this Guaranty or the Lease; (c) agree not to assert
any defense, right of set off or other claim which Guarantor may have
against Lessee, to the extent such assertion will affect or delay the payment
in full of all amounts due Lessor under this Guaranty; and (d) waive
presentment for payment, demand for payment, notice of nonpayment or dishonor,
protest and notice of protest, diligence in collection and any and all
formalities which otherwise might be legally required to charge Guarantor with
liability.  Lessor shall have no
obligation to disclose or discuss with Guarantor its assessment of the
financial condition of Lessee.  Guarantor
authorizes Lessor, without notice to, demand of, or consent from Guarantor, and
without affecting its liability to Lessor hereunder, from time to time to
renew, extend, accelerate or otherwise change the time or place for payment of,
or otherwise change the terms of all, or any part of, the Obligations.  No modification or waiver of any of the provisions of this Guaranty
shall be binding upon Lessor, except as expressly set forth in a writing duly
signed and delivered by Lessor.

 

5.                                       This Guaranty is a present and continuing
guaranty of performance and payment and not of collection.  This Guaranty is, except as expressly set
forth in Section 2, absolute and unconditional.  Guarantor agrees that this Guaranty may be enforced by
Lessor without the necessity at any time of resorting to or exhausting any
other security or collateral given in connection herewith or with the
Lease.  Guarantor hereby waives any
right to require Lessor to join Lessee in any action brought hereunder or to
commence any action against or obtain any judgment against Lessee.  Guarantor further agrees that, subject to Section
2, nothing contained herein or otherwise shall prevent Lessor from pursuing
concurrently or successively all rights and remedies available to it at law
and/or in equity or under the Lease, and the exercise of any of its rights or
the completion of any of its remedies shall not constitute a discharge of
Guarantor’s obligations as required pursuant to this Guaranty, except to the
extent such remedies constitute a discharge of Lessee’s obligations under the
Lease.

 

6.                                       None of Guarantor’s obligations under this
Guaranty or any remedy for the enforcement thereof shall be impaired, modified,
changed or released in any manner whatsoever by any impairment, modification,
change, release or limitation of the liability of Lessee by reason of the
bankruptcy of Lessee or by reason of any creditor or bankruptcy proceeding
instituted by or against Lessee.

 

7.                                       In the event Lessor shall assign its rights
under the Lease (if permitted pursuant to the terms thereof) or this Guaranty
to any third party, Guarantor will accord full recognition thereto and agree
that all rights and remedies of Lessor or such assignee shall be enforceable
against Guarantor by such assignee with the same force and effect and to the
same extent as would have been enforceable by Lessor but for such assignment.

 

2

 

8.                                       If Guarantor is determined by a court of
competent jurisdiction to have breached the terms of this Guaranty, then
Guarantor shall pay to Lessor upon demand all reasonable attorneys’ fees, costs
and expenses including, without limitation, court costs, filing fees, recording
costs, expenses of collection, and all other costs and expenses incurred by
Lessor in connection with its enforcement of this Guaranty.

 

9.                                       If any provision of this Guaranty is
determined to be invalid or not fully enforceable, such invalidity or
unenforceability shall not affect the other provisions of this Guaranty which
shall be enforceable to the maximum extent permitted at law.

 

10.                                 All notices, requests, payments,
instructions, or other documents to be given hereunder shall be in writing or
by written telecommunication, and shall be deemed to have been duly given if
(i) delivered personally (effective upon delivery), (ii) mailed by registered
or certified mail, return receipt requested, postage prepaid (effective five
business days after dispatch), (iii) sent by a reputable, established courier
service that guarantees next business day delivery (effective the next business
day), or (iv) sent by facsimile or electronic mail, followed within 24 hours by
confirmation by one of the foregoing methods (effective upon the first business
day after receipt of the facsimile or electronic mail in complete, readable
form).  Notices to each party shall be
addressed as set forth below (or to such other address as the recipient party
may have furnished to the sending party for the purpose pursuant to this
Paragraph 10).

 

	
  If to Guarantor:

  
	
   

  
	
  Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois  60601

  Facsimile No.: (312) 467-0197

  Attention:  Leslie J. Jezuit

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  Holland & Knight LLC

  131 S. Dearborn Street, 30th Floor

  Chicago, Illinois 60603

  Facsimile No.: (312) 578-6666

  Attention:  Anne Hamblin Schiave

  

 

3

 

	
  If to Lessor:

  
	
   

  
	
  Cambridge Leasing Corporation

  Nine Washington Terrace

  St. Louis, Missouri  63112

  Facsimile No.: (314) 454-3034

  Telephone No.:  (314) 454-9975

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  Altheimer & Gray

  Suite 4000

  10 S. Wacker Dr.

  Chicago, Illinois 60606

  Facsimile No.: (312) 715-4987

  Attention: David W. Schoenberg

  

 

or at such other address as
the party to be served with notice may have furnished in writing to the
party seeking or desiring to serve notice as a place for the service of notice.

 

11.                                 In order to induce Lessor to execute and
deliver the Lease, Guarantor makes the following representations and
warranties:

 

(a)                                 Guarantor is a corporation duly organized
and validly existing under the laws of the State of Delaware, and has full
power and authority to execute, deliver and perform its covenants, agreements,
and obligations under this Guaranty, and such execution, delivery and
performance has been duly authorized by all requisite action on the part of
Guarantor.

 

(b)                                The execution, delivery, and performance by
Guarantor of this Guaranty does not and will not contravene or conflict with
(i) the organizational documents of Guarantor, (ii) any law, order,
rule, regulation, writ, injunction, or decree now in effect of any government,
governmental instrumentality or court having jurisdiction over Guarantor, or
(iii) any material contractual restriction binding on or affecting
Guarantor or Guarantor’s property or assets which may adversely affect
Guarantor’s ability to fulfill its obligations under this Guaranty.

 

(c)                                 This Guaranty creates legal, valid, and binding
obligations of Guarantor enforceable in accordance with its terms.

 

12.                                 This Guaranty shall be binding upon the
successors and assigns of Guarantor and shall not be discharged or affected, in
whole or in part, by the dissolution of Guarantor.

 

4

 

13.                                 This Guaranty
shall be governed by, construed and enforced under the internal laws (without regard
to principles of conflicts of laws) of the State of Illinois.  Any legal action, suit or proceeding arising
out of or relating to this Guaranty or the transactions contemplated hereby
shall be instituted exclusively in the courts of the State of Illinois, located
in the City of Chicago or, provided subject matter jurisdiction exists, in the
United States Federal Court for the Northern District of Illinois, located in
Chicago, Illinois, and each party hereto agrees not to assert as a defense in
any such action, suit or proceeding, any claim that it is not subject
personally to the jurisdiction of such courts, that its property is exempt or
immune from attachment or execution, that the action, suit or proceeding is
brought in an inconvenient forum, that the venue of the action, suit or
proceeding is improper or that this Agreement or the subject matter hereof may not
be enforced in or by such court.  Each
party further irrevocably submits to the exclusive jurisdiction of such courts
in any such action, suit or proceeding.

 

[Signature pages to follow]

 

5

 

IN
WITNESS WHEREOF, Guarantor has delivered this Guaranty in the State of Illinois
as of the date first written above.

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
  QUIXOTE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie J. Jezuit

  
	
   

  	
  Name:

  	
  Leslie J. Jezuit 

  
	
   

  	
  Title:

  	
  President

  
						

 

6

 

Exhibit
10.4

 

GUARANTY

 

THIS GUARANTY (“Guaranty”) is made May 16, 2003, by Quixote
Corporation, a Delaware corporation (“Guarantor”), to and for the benefit of Intersection
Development Corporation, S. A. de C. V. (“Lessor”).

 

RECITALS

 

A.            Lessor and Quixote Transportation
Safety Mexico, S. de R.L. de C. V., a Mexican corporation (“Lessee”), have entered into that certain
Lease Contract dated of even date herewith (the “Lease”).

 

B.            Guarantor
is the parent corporation of the affiliated group of which Lessee is a member
and Guarantor will derive substantial benefit under the Lease and Guarantor is
willing to guarantee the obligations of Lessee under the Lease.

 

AGREEMENTS

 

NOW, THEREFORE, Guarantor, in consideration of the
matters described in the foregoing Recitals, which Recitals are incorporated
herein and made a part hereof, and for other good and valuable consideration,
the receipt and sufficiency of which are acknowledged, hereby covenants and
agrees for the benefit of Lessor and its affiliates, successors and assigns as
follows:

 

1.             Guarantor
absolutely, unconditionally, and irrevocably guarantees to Lessor the prompt
and timely performance by Lessee of each and all of its covenants to Lessor
arising under or created by the terms of the Lease in all cases subject to the
terms of the Lease  (collectively, the “Obligations”).  This Guaranty, and the covenants and waivers
contained herein, will remain in effect until all Obligations have been
satisfied.

 

2.             In the event of any
default by Lessee in performance of the Obligations, as aforesaid, Guarantor
agrees, on demand by Lessor in the manner provided below in Section 3, to
perform all the Obligations as are then or thereafter to be performed under the
terms of the Lease.  The parties agree
that (a) Guarantor’s obligations under this Guaranty shall be subject to
the limitations, exclusions and exculpations of liability set forth in the
Lease, (b) except as provided Section 6, below, Guarantor may assert any
and all defenses, set-offs, or counterclaims of any kind available to Lessee so
as to deny payment related to this Guaranty including, without limitation, any
such rights acquired by Guarantor through subrogation, assignment, or otherwise
and (c) the obligations of Guarantor hereunder are dependent upon Lessor’s
performance of its obligations under the Lease.

 

3.             Lessor shall make
its demand for payment hereunder by delivering to Guarantor a written notice
which: (i) states that it is a demand required under this Guaranty for payment
of one or more of the Obligations, (ii) sets forth the amount and the basis for
such demand, and (iii) is signed by an authorized officer of Lessor.  Subject to the

 

 

assertion
of any rights it has as referenced in Section 2, Guarantor shall make payment
to Lessor of the amount specified in the written demand referenced in the
preceding sentence in immediately available funds not later than thirty (30)
days after the delivery of that written demand.

 

4.             Guarantor does
hereby (a) waive notice of acceptance of this Guaranty by Lessor;
(b) waive any notices or demands that are not required by this Guaranty or
the Lease; (c) agree not to assert any defense, right of set off or other claim
which Guarantor may have against Lessee, to the extent such assertion will
affect or delay the payment in full of all amounts due Lessor under this
Guaranty; and (d) waive presentment for payment, demand for payment,
notice of nonpayment or dishonor, protest and notice of protest, diligence in
collection and any and all formalities which otherwise might be legally
required to charge Guarantor with liability. 
Lessor shall have no obligation to disclose or discuss with Guarantor
its assessment of the financial condition of Lessee.  Guarantor authorizes Lessor, without notice to, demand of, or consent
from Guarantor, and without affecting its liability to Lessor hereunder, from
time to time to renew, extend, accelerate or otherwise change the time or place
for payment of, or otherwise change the terms of all, or any part of, the
Obligations.  No modification or waiver of any of the
provisions of this Guaranty shall be binding upon Lessor, except as expressly
set forth in a writing duly signed and delivered by Lessor.

 

5.             This Guaranty is a
present and continuing guaranty of performance and payment and not of
collection.  This Guaranty is, except as
expressly set forth in Section 2, absolute and unconditional.  Guarantor agrees that this Guaranty may be
enforced by Lessor without the necessity at any time of resorting to or exhausting
any other security or collateral given in connection herewith or with the
Lease.  Guarantor hereby waives any
right to require Lessor to join Lessee in any action brought hereunder or to
commence any action against or obtain any judgment against Lessee.  Guarantor further agrees that, subject to
Section 2, nothing contained herein or otherwise shall prevent Lessor from
pursuing concurrently or successively all rights and remedies available to it
at law and/or in equity or under the Lease, and the exercise of any of its
rights or the completion of any of its remedies shall not constitute a
discharge of Guarantor’s obligations as required pursuant to this Guaranty,
except to the extent such remedies constitute a discharge of Lessee’s
obligations under the Lease.

 

6.             None of Guarantor’s
obligations under this Guaranty or any remedy for the enforcement thereof shall
be impaired, modified, changed or released in any manner whatsoever by any
impairment, modification, change, release or limitation of the liability of
Lessee by reason of the bankruptcy of Lessee or by reason of any creditor or
bankruptcy proceeding instituted by or against Lessee.

 

7.             In the event Lessor
shall assign its rights under the Lease (if permitted pursuant to the terms
thereof) or this Guaranty to any third party, Guarantor will accord full
recognition thereto and agree that all rights and remedies of Lessor or such
assignee shall be enforceable against Guarantor by such assignee with the same
force and effect and to the same extent as would have been enforceable by
Lessor but for such assignment.

 

2

 

8.             If Guarantor is
determined by a court of competent jurisdiction to have breached the terms of
this Guaranty, then Guarantor shall pay to Lessor upon demand all reasonable
attorneys’ fees, costs and expenses including, without limitation, court costs,
filing fees, recording costs, expenses of collection, and all other costs and
expenses incurred by Lessor in connection with its enforcement of this
Guaranty.

 

9.             If any provision of
this Guaranty is determined to be invalid or not fully enforceable, such
invalidity or unenforceability shall not affect the other provisions of this
Guaranty which shall be enforceable to the maximum extent permitted at law.

 

10.           All notices,
requests, payments, instructions, or other documents to be given hereunder
shall be in writing or by written telecommunication, and shall be deemed to
have been duly given if (i) delivered personally (effective upon delivery),
(ii) mailed by registered or certified mail, return receipt requested, postage
prepaid (effective five business days after dispatch), (iii) sent by a
reputable, established courier service that guarantees next business day
delivery (effective the next business day), or (iv) sent by facsimile or
electronic mail, followed within 24 hours by confirmation by one of the
foregoing methods (effective upon the first business day after receipt of the
facsimile or electronic mail in complete, readable form).  Notices to each party shall be addressed as
set forth below (or to such other address as the recipient party may have
furnished to the sending party for the purpose pursuant to this Paragraph 10).

 

	
  If to Guarantor:

  
	
   

  
	
  Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois  60601

  Facsimile No.: (312) 467-0197

  Attention:  Leslie J. Jezuit

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  Holland & Knight LLC

  131 S. Dearborn Street, 30th Floor

  Chicago, Illinois 60603

  Facsimile No.: (312) 578-6666

  Attention:  Anne Hamblin Schiave

  

 

3

 

	
  If to Lessor:

  
	
   

  
	
  Intersection Development Corporation S. A. de C. V.

  c/o Myers Power Products

  2000 Highland Avenue

  Bethlehem, Pennsylvania  18020

  Facsimile No.: (610) 868-8686

  Attention:  Walter Rogers

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  Altheimer & Gray

  Suite 4000

  10 S. Wacker Dr.

  Chicago, Illinois 60606

  Facsimile No.: (312) 715-4987

  Attention: David W. Schoenberg

  

 

or at such other address as
the party to be served with notice may have furnished in writing to the
party seeking or desiring to serve notice as a place for the service of notice.

 

11.           In order to induce
Lessor to execute and deliver the Lease, Guarantor makes the following
representations and warranties:

 

(a)           Guarantor is a
corporation duly organized and validly existing under the laws of the State of
Delaware, and has full power and authority to execute, deliver and perform its
covenants, agreements, and obligations under this Guaranty, and such execution,
delivery and performance has been duly authorized by all requisite action on
the part of Guarantor.

 

(b)           The execution,
delivery, and performance by Guarantor of this Guaranty does not and will not
contravene or conflict with (i) the organizational documents of Guarantor,
(ii) any law, order, rule, regulation, writ, injunction, or decree now in
effect of any government, governmental instrumentality or court having
jurisdiction over Guarantor, or (iii) any material contractual restriction
binding on or affecting Guarantor or Guarantor’s property or assets which may adversely
affect Guarantor’s ability to fulfill its obligations under this Guaranty.

 

(c)           This Guaranty creates
legal, valid, and binding obligations of Guarantor enforceable in accordance
with its terms.

 

12.           This Guaranty shall
be binding upon the successors and assigns of Guarantor and shall not be
discharged or affected, in whole or in part, by the dissolution of Guarantor.

 

4

 

13.           This
Guaranty shall be governed by, construed and enforced under the internal laws
(without regard to principles of conflicts of laws) of the State of
Illinois.  Any legal action, suit or
proceeding arising out of or relating to this Guaranty or the transactions
contemplated hereby shall be instituted exclusively in the courts of the State
of Illinois, located in the City of Chicago or, provided subject matter
jurisdiction exists, in the United States Federal Court for the Northern
District of Illinois, located in Chicago, Illinois, and each party hereto
agrees not to assert as a defense in any such action, suit or proceeding, any
claim that it is not subject personally to the jurisdiction of such courts,
that its property is exempt or immune from attachment or execution, that the
action, suit or proceeding is brought in an inconvenient forum, that the venue
of the action, suit or proceeding is improper or that this Agreement or the
subject matter hereof may not be enforced in or by such court.  Each party further irrevocably submits to
the exclusive jurisdiction of such courts in any such action, suit or
proceeding.

 

[Signature page to follow]

 

5

 

IN WITNESS WHEREOF, Guarantor has delivered this Guaranty in the State
of Illinois as of the date first written above.

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
  QUIXOTE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie J. Jezuit

  
	
   

  	
  Name:

  	
  Leslie J. Jezuit 

  
	
   

  	
  Title:

  	
  President

  
						

 

6

 

Exhibit
10.4

 

GUARANTY

 

THIS GUARANTY (“Guaranty”) is made May 16, 2003, by Quixote
Corporation, a Delaware corporation (“Guarantor”), to and for the benefit of U. S. Traffic
Corporation and Myers/Nuart Electrical Products, Inc. (“Seller”).

 

RECITALS

 

A.            Seller and Green Light Acquisition
Company, a Delaware corporation (“Buyer”), intend to enter into that certain Asset
Purchase Agreement of even date herewith (the “Asset Purchase Agreement”).

 

B.            Pursuant to the Asset Purchase
Agreement, Buyer will purchase the Business (as that term is defined in the
Asset Purchase Agreement).

 

C.            In the Asset Purchase Agreement, Buyer will agree to
certain payment, indemnification and reimbursement obligations in favor of
Seller and  Buyer will provide to Seller
a series of representations and warranties and will make various other
agreements and covenants to induce the Seller to complete the transactions
contemplated by the Asset Purchase Agreement.

 

D.            In the Asset Purchase Agreement, Buyer has covenanted to
secure its payment, indemnification and reimbursement obligations to Seller
under the Asset Purchase Agreement by providing this Guaranty of Guarantor,
which is the parent corporation of the affiliated group of which Buyer is a
member, with respect to such obligations.

 

E.             Guarantor
will derive substantial benefit under the Asset Purchase Agreement and
Guarantor is willing to guarantee the obligations of Buyer under the Asset
Purchase Agreement and those other agreements, including the Subordinated
Promissory Note dated May 16, 2003 (the “Note”), to be delivered by Buyer to Seller
in accordance with the Asset Purchase Agreement  (all such agreements, including the Asset Purchase Agreement,
being referred to hereinafter as the “Transaction Agreements”).

 

AGREEMENTS

 

NOW, THEREFORE, in order to induce Seller to
execute and deliver the Asset Purchase Agreement and complete the transactions
contemplated thereby, Guarantor, in consideration of the matters described in
the foregoing Recitals, which Recitals are incorporated herein and made a part
hereof, and for other good and valuable consideration, the receipt and sufficiency
of which are acknowledged; hereby covenants and agrees for the benefit of
Seller and its affiliates, successors and assigns as follows:

 

1.             Guarantor
absolutely, unconditionally, and irrevocably guarantees to Seller:

 

 

(a)           the prompt payment
when due and payable of each installment of the principal and interest under
the Note;

 

(b)           the prompt and timely
performance by Buyer of each and all of its covenants to Seller arising under
or created by the terms of the Asset Purchase Agreement, including, without
limitation, Buyer’s timely payment and/or discharge of the Assumed Liabilities
(as defined in the Asset Purchase Agreement) and Buyer’s timely performance of
its covenants to Seller under each of the other Transaction Agreements; and

 

(c)           the timely satisfaction
of Buyer’s obligations under the indemnification provisions of the Asset
Purchase Agreement.

 

in all cases subject to the terms of the Asset Purchase Agreement  (collectively, the “Obligations”).  This Guaranty, and the covenants and waivers contained herein,
will remain in effect until all Obligations have been satisfied.

 

2.             In the event of any
default by Buyer in performance of the Obligations, as aforesaid, Guarantor
agrees, on demand by Seller in the manner provided below in Section 3, to perform
all the Obligations as are then or thereafter to be performed under the terms
of the Transaction Agreements.  The
parties agree that (a) Guarantor’s obligations under this Guaranty shall
be subject to the limitations, exclusions and exculpations of liability set
forth in the Transaction Agreements including with respect to the Note and the
subordination provisions contained therein, (b) except as provided Section 6,
below, Guarantor may assert any and all defenses, set-offs, or
counterclaims of any kind available to Buyer so as to deny payment related to
this Guaranty including, without limitation, any such rights acquired by
Guarantor through subrogation, assignment, or otherwise and (c) the obligations
of Guarantor hereunder are dependent upon Seller’s performance of its
obligations under the Transaction Agreements.

 

3.             Seller shall make
its demand for payment hereunder by delivering to Guarantor a written notice
which: (i) states that it is a demand required under this Guaranty for payment
of one or more of the Obligations, (ii) sets forth the amount and the basis for
such demand, and (iii) is signed by an authorized officer of Seller.  Subject to the assertion of any rights it
has as referenced in Section 2, Guarantor shall make payment to Seller of the
amount specified in the written demand referenced in the preceding sentence in
immediately available funds not later than thirty (30) days after the delivery
of that written demand.

 

4.             Guarantor does
hereby (a) waive notice of acceptance of this Guaranty by Seller;
(b) waive any notices or demands that are not required by this Guaranty or
the Transaction Agreements; (c) agree not to assert any defense, right of set
off or other claim which Guarantor may have against Buyer, to the extent
such assertion will affect or delay the payment in full of all amounts due
Seller under this Guaranty; and (d) waive presentment for payment, demand
for payment, notice of nonpayment or dishonor, protest and notice of protest,
diligence in collection and any and all formalities which otherwise might be
legally required to charge Guarantor with liability.  Seller shall have

 

2

 

no
obligation to disclose or discuss with Guarantor its assessment of the
financial condition of Buyer.  Guarantor
authorizes Seller, without notice to, demand of, or consent from Guarantor, and
without affecting its liability to Seller hereunder, from time to time to
renew, extend, accelerate or otherwise change the time or place for payment of,
or otherwise change the terms of all, or any part of, the Obligations.  No modification or waiver of any of the provisions of this Guaranty
shall be binding upon Seller, except as expressly set forth in a writing duly
signed and delivered by Seller.

 

5.             This Guaranty is a
present and continuing guaranty of performance and payment and not of
collection.  This Guaranty is, except as
expressly set forth in Section 2, absolute and unconditional.  Guarantor agrees that this Guaranty
may be enforced by Seller without the necessity at any time of resorting
to or exhausting any other security or collateral given in connection herewith
or with the Transaction Agreements. 
Guarantor hereby waives any right to require Seller to join Buyer in any
action brought hereunder or to commence any action against or obtain any
judgment against Buyer.  Guarantor
further agrees that, subject to Section 2, nothing contained herein or
otherwise shall prevent Seller from pursuing concurrently or successively all
rights and remedies available to it at law and/or in equity or under the
Transaction Agreements, and the exercise of any of its rights or the completion
of any of its remedies shall not constitute a discharge of Guarantor’s
obligations as required pursuant to this Guaranty, except to the extent such
remedies constitute a discharge of Buyer’s obligations under the Transaction
Agreements.

 

6.             None of Guarantor’s
obligations under this Guaranty or any remedy for the enforcement thereof shall
be impaired, modified, changed or released in any manner whatsoever by any
impairment, modification, change, release or limitation of the liability of
Buyer by reason of the bankruptcy of Buyer or by reason of any creditor or
bankruptcy proceeding instituted by or against Buyer.

 

7.             In the event Seller
shall assign its rights under the Transaction Agreements (if permitted pursuant
to the terms thereof) or this Guaranty to any third party, Guarantor will
accord full recognition thereto and agree that all rights and remedies of
Seller or such assignee shall be enforceable against Guarantor by such assignee
with the same force and effect and to the same extent as would have been
enforceable by Seller but for such assignment.

 

8.             If Guarantor is
determined by a court of competent jurisdiction to have breached the terms of
this Guaranty, then Guarantor shall pay to Seller upon demand all reasonable
attorneys’ fees, costs and expenses including, without limitation, court costs,
filing fees, recording costs, expenses of collection, and all other costs and expenses
incurred by Seller in connection with its enforcement of this Guaranty.

 

9.             If any provision of
this Guaranty is determined to be invalid or not fully enforceable, such
invalidity or unenforceability shall not affect the other provisions of this Guaranty
which shall be enforceable to the maximum extent permitted at law.

 

3

 

10.           All notices,
requests, payments, instructions, or other documents to be given hereunder
shall be in writing or by written telecommunication, and shall be deemed to
have been duly given if (i) delivered personally (effective upon delivery),
(ii) mailed by registered or certified mail, return receipt requested, postage
prepaid (effective five business days after dispatch), (iii) sent by a
reputable, established courier service that guarantees next business day
delivery (effective the next business day), or (iv) sent by facsimile or
electronic mail, followed within 24 hours by confirmation by one of the
foregoing methods (effective upon the first business day after receipt of the
facsimile or electronic mail in complete, readable form).  Notices to each party shall be addressed as
set forth below (or to such other address as the recipient party may have
furnished to the sending party for the purpose pursuant to this Paragraph 10).

 

	
  If to Guarantor:

  
	
   

  
	
  Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois  60601

  Facsimile No.: (312) 467-0197

  Attention:  Leslie J. Jezuit

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  Holland & Knight LLC

  131 S. Dearborn Street, 30th Floor

  Chicago, Illinois 60603

  Facsimile No.: (312) 578-6666

  Attention:  Anne Hamblin Schiave

  
	
   

  
	
  If to Seller:

  
	
   

  
	
  U. S. Traffic Corporation/Myers Power Products, Inc.

  2000 Highland Avenue

  Bethlehem, Pennsylvania  18020

  Facsimile No.: (610) 868-8686

  Attention:  Walter Rogers

  

 

4

 

	
  With a copy to:

  
	
   

  
	
  Altheimer & Gray

  Suite 4000

  10 S. Wacker Dr.

  Chicago, Illinois 60606

  Facsimile No.: (312) 715-4987

  Attention: David W. Schoenberg

  

 

or at such other address as
the party to be served with notice may have furnished in writing to the
party seeking or desiring to serve notice as a place for the service of notice.

 

11.           In order to induce
Seller to execute and deliver the Transaction Agreements, Guarantor makes the
following representations and warranties:

 

(a)           Guarantor is a
corporation duly organized and validly existing under the laws of the State of
Delaware, and has full power and authority to execute, deliver and perform its
covenants, agreements, and obligations under this Guaranty, and such execution,
delivery and performance has been duly authorized by all requisite action on
the part of Guarantor.

 

(b)           The execution,
delivery, and performance by Guarantor of this Guaranty does not and will not
contravene or conflict with (i) the organizational documents of Guarantor,
(ii) any law, order, rule, regulation, writ, injunction, or decree now in
effect of any government, governmental instrumentality or court having
jurisdiction over Guarantor, or (iii) any material contractual restriction
binding on or affecting Guarantor or Guarantor’s property or assets which
may adversely affect Guarantor’s ability to fulfill its obligations under
this Guaranty.

 

(c)           This Guaranty creates
legal, valid, and binding obligations of Guarantor enforceable in accordance
with its terms.

 

12.           This Guaranty shall
be binding upon the successors and assigns of Guarantor and shall not be
discharged or affected, in whole or in part, by the dissolution of Guarantor.

 

13.           This
Guaranty shall be governed by, construed and enforced under the internal laws
(without regard to principles of conflicts of laws) of the State of
Illinois.  Any legal action, suit or
proceeding arising out of or relating to this Guaranty or the transactions
contemplated hereby shall be instituted exclusively in the courts of the State
of Illinois, located in the City of Chicago or, provided subject matter
jurisdiction exists, in the United States Federal Court for the Northern
District of Illinois, located in Chicago, Illinois, and each party hereto
agrees not to assert as a defense in any such action, suit

 

5

 

or proceeding, any claim that it is not subject
personally to the jurisdiction of such courts, that its property is exempt or
immune from attachment or execution, that the action, suit or proceeding is
brought in an inconvenient forum, that the venue of the action, suit or
proceeding is improper or that this Agreement or the subject matter hereof
may not be enforced in or by such court. 
Each party further irrevocably submits to the exclusive jurisdiction of
such courts in any such action, suit or proceeding.

 

[Signature page to follow]

 

6

 

IN WITNESS WHEREOF, Guarantor has delivered this
Guaranty in the State of Illinois as of the date first written above.

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
  QUIXOTE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie J. Jezuit

  
	
   

  	
  Name:

  	
    Leslie J. Jezuit 

  
	
   

  	
  Title:

  	
    President

  
						

 

7Exhibit
10.5

 

STANDSTILL
AGREEMENT

 

This Standstill Agreement
dated May 16, 2003, between Quixote Corporation, a Delaware corporation
(the “Company”) and U. S.
Traffic Corporation and Myers/Nuart Electrical Products, Inc. (together the “Stockholder”).

 

The Stockholder currently
owns or controls directly or beneficially, an aggregate of 558,534 shares of
the $0.01-2/3 par value Common Stock (such class of common stock being referred
to herein as “Common Stock”)
of the Company representing 6.78% of the outstanding shares of the
Company.  For purposes of this
Agreement, “Voting Securities”
shall mean all classes of capital stock of the Company which are then entitled
to vote generally in the election of directors.

 

NOW THEREFORE, in order
to provide a constructive and mutually beneficial relationship between the
Stockholder and the Company, the parties agree as follows:

 

1.                                       Term
of Agreement.

 

Except as otherwise
expressly provided herein, the respective covenants and agreements of the
Stockholder and the Company contained in this Agreement will continue in full
force and effect for a period of thirty months, commencing on the date hereof.

 

2.                                       Covenants
of the Stockholder.

 

Prior to the termination
of this Agreement and subject to the further provisions hereof:

 

(a)           None of the Stockholder, or any of
its shareholders or any person controlled by the Stockholder or its
shareholders (collectively, the “Related Parties”), will, directly or indirectly,
acquire any Voting Securities (except by way of stock dividends or other
distributions or offerings made available to holders of Voting Securities
generally) if the effect of such acquisition would be to increase the aggregate
voting power in the election of directors of all Voting Securities then owned
by the Stockholder and the Related Parties to greater than nine and one-half
percent (91⁄2%) of
such total combined voting power of all the Voting Securities then outstanding;
provided that:

 

(i)            the Stockholder and the Related
Parties may acquire Voting Securities without regard to the foregoing
limitation if any of the following events shall occur:  (A) a tender or exchange offer is made by
any person or 13D Group (as hereinafter defined) (other than an affiliate of,
or any person acting in concert with, the Stockholder or the Related Parties)
to acquire Voting Securities which, if added to the Voting Securities (if any)
already owned by such person or 13D Group, would represent more than 15% of the
total combined voting power of

 

 

all Voting Securities
then outstanding, (B) it is publicly disclosed or the Stockholder otherwise
learns that Voting Securities representing more than 15% of the total combined
voting power of all Voting Securities then outstanding have been acquired
subsequent to May 1, 2003, or are proposed (in a public announcement or
filing) to be acquired subsequent to such date by any person or 13D Group
(other than an affiliate of, or any person acting in concert with, the
Stockholder or the  Related Parties), or
(C) any person or 13D Group (not including the Stockholder or the Related
Parties or any affiliates thereof) shall beneficially own Voting Securities
representing a percentage of the total combined voting power of all outstanding
Voting Securities which exceeds the greater of (x) 15% or (y) the largest
percentage of such total combined voting power represented by all Voting
Securities owned at any time by the Stockholder or the Related Parties, and
would be required (under rules and regulations in effect on the date hereof) to
file a statement on Schedule 13D with the Securities and Exchange Commission
reporting beneficial ownership of such Voting Securities.  As used herein, the term “13D Group” shall
mean any group of persons formed for the purpose of acquiring, holding, voting
or disposing of Voting Securities which would be required under Section 13(d)
of the Exchange Act and the rules and regulations thereunder (as now in effect
and based on present legal interpretations thereof) to file a statement on
Schedule 13D with the Securities and Exchange Commission as a “person” within
the meaning of Section 13(d)(3) of the Exchange Act if such group beneficially
owned Voting Securities representing more than 5% of the total combined voting
power of all Voting Securities then outstanding; and

 

(ii)           none of the Stockholder or the
Related Parties shall be obligated to dispose of any Voting Securities if the
aggregate percentage ownership of the Stockholder and the Related Parties is
increased as a result of a recapitalization of the Company or any other action
taken by the Company or its affiliates other than the Stockholder or the
Related Parties.

 

Within five (5) business
days of any acquisition or disposition of any Voting Securities, Stockholder
and Related Parties shall advise the Company of the number of Voting Securities
acquired or disposed of.

 

(b)           None of the Stockholder or the
Related Parties shall deposit any Voting Securities in a voting trust or
subject any Voting Securities to any arrangement or agreement with respect to
the voting of such Voting Securities.

 

(c)           None of the Stockholder or the
Related Parties shall (i) initiate, propose, encourage or participate in any “solicitation” or “proxies” (as such
terms are defined in SEC Regulation 14A), including action by written consent,
(ii) become a “participant”
in any “election contest”
(as such terms are defined or used in SEC Rule 14a-11) with respect to the
Company, nominate any person for election as a director, or seek to advise,
encourage or influence any person with respect to the voting of any Voting
Securities or soliciting proxies for the election of such person, or (iii)
initiate, propose or otherwise solicit or participate in the solicitation of
any stockholder for the approval of one or more stockholder proposals with
respect to the Company (as described under SEC Rule 14a-8)

 

2

 

or encourage any other
person to initiate any stockholder proposal relating to the Company, or (iv)
otherwise seek to influence or control the management or policies of the
Company.

 

(d)           None of the Stockholder or the
Related Parties shall, directly or indirectly, solicit proxies or become a “participant” in a “solicitation” (as
such terms are defined in Regulation 14A under the Exchange Act) in opposition
to the recommendation of the majority of the directors of the Company with
respect to any matter.

 

(e)           None of the Stockholder or the
Related Parties shall join a partnership, limited partnership, syndicate or
other group, or otherwise act in concert with any other person, for the purpose
of acquiring, holding, voting or disposing of Voting Securities, or otherwise
become a “person”
within the mean of Section 13(d)(3) of the Exchange Act (in each case other
than solely as the Related Parties).

 

3.             Voting by the Stockholder.

 

(a)           The Stockholder shall vote the total
number of Voting Securities or shares of any other class of capital stock of
the Company entitled to vote generally on matters submitted to a vote of the
Company’s stockholders that the Stockholder beneficially owns (whether now or
hereafter acquired) and to which the Stockholder is entitled to vote in
accordance with the provisions of this Section 3.

 

(b)           The Stockholder shall take such
action as may be required so that all Voting Securities owned by the
Stockholder or the Related Parties are voted for nominees to the Board of
Directors of the Company and, unless the Company otherwise consents in writing,
for all other matters to be voted on by the holders of Voting Securities.  The Stockholder and the Related Parties, as
holders of Voting Securities, shall be present, in person or by proxy, at all
meetings of stockholders of the Company so that all Voting Securities owned
directly or beneficially by the Stockholder and the Related Parties may be
counted for the purpose of determining the presence of a quorum at such
meetings.

 

(c)           (i)            To
effectuate the voting requirements set forth in this Section 3, the Stockholder
agrees that it shall vote, and shall cause the Related Parties to vote, on all
matters submitted to the vote of holders of Voting Securities using a special
form of proxy to be furnished by the Company pursuant to which the Stockholder
and the Related Parties shall give written instructions that Voting Securities
held directly or beneficially by the Stockholder or the Related Parties shall
be voted in accordance with the applicable provisions of this Section 3.  Stockholder and Related Parties shall
provide the Company with evidence of their compliance with this Section 3.

 

(ii)           The Stockholder shall deliver to the
Company, prior to any vote by the holders of Voting Securities, a report
indicating the number of shares owned by the Stockholder and the Related
Parties if the number of shares has changed from the amount

 

3

 

reported in the most
recent Schedule 13D or 13G filed by the Stockholder or filed on his behalf or
on behalf of the Related Parties.

 

4.             Miscellaneous.

 

(a)           The Stockholder and the Related
Parties, on the one hand, and the Company, on the other, acknowledge and agree
that irreparable damage would occur in the event any of the provisions of this
Agreement were not performed in accordance with their specific terms or were
otherwise breached.  It is accordingly
agreed that the parties shall be entitled to an injunction or injunctions to
prevent breaches of the provisions of this Agreement and to enforce
specifically the terms and provisions hereof in any court of the United States
or any state thereof having jurisdiction, in addition to any other remedy to
which they may be entitled at law or equity.

 

(b)           If any provision of this Agreement is
in violation of any statute, rule, regulation, order or decree of any
governmental authority, court or agency, or subject the Stockholder or the Related
Parties to governmental regulation to which it is not now subject, which
violation or regulation would have a material adverse impact on the Stockholder
or the Related Parties taken as a whole, then the Stockholder or the Related
Parties shall be relieved of its obligations under such provision to the
minimum extent necessary to cure such violation or eliminate the applicability
of such regulation; provided that this subparagraph shall not apply to any such
violation or regulation resulting in part from activities of the Stockholder or
the Related Parties other than its ownership of Voting Securities and the
consummation of the transactions contemplated by this Agreement; and provided
further that in the event the Stockholder or the Related Parties is relieved of
his or its obligations under any provision of this Agreement pursuant to this
subparagraph, the Company may terminate this Agreement as to that party,
in its sole discretion.

 

(c)           As used herein, the term “affiliate” shall
have the meaning set forth in Rule 12b-2 under the Exchange Act and the term “person” shall mean
any individual, partnership, corporation, trust or other entity.

 

(d)           This Agreement contains the entire
understanding of the parties with respect to the transactions contemplated hereby
and this Agreement may be amended only by an agreement in writing executed
by the parties hereto.

 

(e)           Descriptive headings are for
convenience only and shall not control or affect the meaning or construction of
any provision of this Agreement.

 

(f)            For the convenience of the parties,
any number of counterparts of this Agreement may be executed by the
parties hereto and each such executed counterpart shall be, and shall be deemed
to be, an original instrument.

 

4

 

(g)           All notices, requests, payments,
instructions, or other documents to be given hereunder shall be in writing or
by written telecommunication, and shall be deemed to have been duly given if
(i) delivered personally (effective upon delivery), (ii) mailed by registered
or certified mail, return receipt requested, postage prepaid (effective five
business days after dispatch), (iii) sent by a reputable, established courier
service that guarantees next business day delivery (effective the next business
day), or (iv) sent by facsimile or electronic mail, followed within 24 hours by
confirmation by one of the foregoing methods (effective upon the first business
day after receipt of the facsimile or electronic mail in complete, readable
form).  Notices to each party shall be
addressed as set forth below (or to such other address as the recipient party
may have furnished to the sending party for the purpose pursuant to this
Paragraph 4(g)).

 

	
  If to Company:

  
	
   

  
	
  Quixote
  Corporation

  One East Wacker Drive

  Chicago, Illinois  60601

  Facsimile No.: (312) 467-0197

  Attention:  Leslie J. Jezuit

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  Holland &
  Knight LLC

  131 S. Dearborn Street, 30th Floor

  Chicago, Illinois 60603

  Facsimile No.: (312) 578-6666

  Attention:  Anne Hamblin Schiave

  
	
   

  
	
  If to Stockholder:

  
	
   

  
	
  U. S. Traffic
  Corporation and

  Myers Power Products, Inc.

  2000 Highland Avenue

  Bethlehem, Pennsylvania  18020

  Facsimile No.: (610) 868-8686

  Attention:  Walter Rogers

  

 

5

 

	
  With a copy to:

  
	
   

  
	
  Altheimer &
  Gray

  Suite 4000

  10 S. Wacker Dr.

  Chicago, Illinois 60606

  Facsimile No.: (312) 715-4987

  Attention: David W. Schoenberg

  

 

or at
such other address as the party to be served with notice may have
furnished in writing to the party seeking or desiring to serve notice as a
place for the service of notice.

 

(i)            This Agreement shall be governed by
and construed in accordance with the substantive laws of the State of Illinois
without giving effect to any choice or conflict of law provision or rule
(whether of the State of Illinois or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
Illinois.

 

This Agreement has been
executed and delivered in and shall be deemed to have been made in Chicago,
Illinois.  Stockholder and Company each
agrees to the exclusive jurisdiction of any state or Federal court within the
City of Chicago, with respect to any claim or cause of action arising under or
relating to this Agreement, and waive personal service of any and all process
upon it, and consents that all services of process be made by registered or
certified mail, return receipt requested, directed to it at its address as set
forth in Section 4(g), an service so made shall be deemed to be completed when
received.  Company and Stockholder each
waives any objection based on forum  non  conveniens and
waive any objection to venue of any action instituted hereunder.  Nothing in this paragraph shall affect the
right of Company or Stockholder to serve legal process in any other manner
permitted by law.

 

(j)            From and after the termination of
this Agreement, the covenants of the Parties set forth herein shall be of no
further force or effect and the Parties shall be under no further obligation
with respect thereto.

 

(k)           This Agreement shall become effective
as of the date first written above.

 

[Signature page to follow]

 

6

 

IN WITNESS WHEREOF, the
Stockholder and the Company have caused this Agreement to be duly executed by their
respective officers, each of whom is duly authorized, all as of the day and
year first above written.

 

	
   

  	
  QUIXOTE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leslie J. Jezuit

  
	
   

  	
  Name:

  	
  Leslie J. Jezuit

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. TRAFFIC
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary J. Coury

  
	
   

  	
  Name:

  	
  Gary J. Coury

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MYERS/NUART ELECTRICAL
  PRODUCTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Diana Grootonk

  
	
   

  	
  Name:

  	
  Diana Grootonk

  
	
   

  	
  Title:

  	
  President

  
								

 

7

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