Document:

Exhibit
10.43

 

AGREEMENT
OF SALE AND PURCHASE

 

between and among

 

M-C HARSIMUS PARTNERS L.L.C.

 

and

 

COLUMBIA DEVELOPMENT COMPANY, L.L.C.,

 

together, as
Seller

 

and

 

iSTAR HARBORSIDE LLC

 

as Purchaser

 

Dated:  August 12, 2003

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I

  	
  DEFINITIONS

  
	
   

  	
   

  
	
   

  	
  Section 1.1

  	
  Definitions

  
	
   

  	
  Section 1.2

  	
  References:  Exhibits and Schedules

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  	
  AGREEMENT
  OF PURCHASE AND SALE

  
	
   

  	
   

  
	
   

  	
  Section 2.1

  	
  Purchase and Sale

  
	
   

  	
  Section 2.2

  	
  Indivisible Economic
  Package

  
	
   

  	
  Section 2.3

  	
  Full Performance

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
  CONSIDERATION

  
	
   

  	
   

  
	
   

  	
  Section 3.1

  	
  Purchase Price

  
	
   

  	
  Section 3.2

  	
  Method of Payment of
  Purchase Price

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV

  	
  EARNEST
  MONEY DEPOSIT AND ESCROW INSTRUCTIONS

  
	
   

  	
   

  
	
   

  	
  Section 4.1

  	
  The Earnest Money
  Deposit and Independent Contract Consideration

  
	
   

  	
  Section 4.2

  	
  Escrow Instructions

  
	
   

  	
  Section 4.3

  	
  Designation of
  Certifying Person

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V

  	
  INSPECTION
  OF PROPERTY

  
	
   

  	
   

  
	
   

  	
  Section 5.1

  	
  Completion of Due
  Diligence

  
	
   

  	
  Section
  5.2

  	
  Document
  Review.

  
	
   

  	
  Section 5.3

  	
  Entry
  and Inspection Obligations; Termination of Agreement.

  
	
   

  	
  Section 5.4

  	
  Sale “As Is”

  
	
   

  	
  Section 5.5

  	
  iStar Financial Guaranty

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI

  	
  TITLE
  AND SURVEY MATTERS

  
	
   

  	
   

  
	
   

  	
  Section 6.1

  	
  Survey

  
	
   

  	
  Section 6.2

  	
  Title Report.

  
	
   

  	
  Section 6.3

  	
  Title Defect.

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
  INTERIM
  OPERATING COVENANTS AND POST-CLOSING MATTERS

  
	
   

  	
   

  
	
   

  	
  Section 7.1

  	
  Interim Operating
  Covenants.

  
	
   

  	
  Section 7.2

  	
  JMB Construction
  Contract and JMB Cooling Tower Contract

  
	
   

  	
  Section 7.3

  	
  Schwab Lease

  
	
   

  	
  Section 7.4

  	
  Excess Net Profits;
  Fines

  
	
   

  	
  Section 7.5

  	
  OCIP

  

 

i

 

	
   

  	
  Section 7.6

  	
  EQR Release

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  	
  REPRESENTATIONS
  AND WARRANTIES

  
	
   

  	
   

  
	
   

  	
  Section 8.1

  	
  Harsimus Representations
  and Warranties

  
	
   

  	
  Section 8.2

  	
  Columbia Representations
  and Warranties

  
	
   

  	
  Section 8.3

  	
  Seller’s Representations
  and Warranties

  
	
   

  	
  Section 8.4

  	
  Purchaser’s
  Representations and Warranties

  
	
   

  	
  Section 8.5

  	
  Survival of
  Representations and Warranties

  
	
   

  	
  Section 8.6

  	
  Updates and Additional
  Representation/Warranty Matters.

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX

  	
  CONDITIONS
  PRECEDENT TO CLOSING

  
	
   

  	
   

  
	
   

  	
  Section 9.1

  	
  Conditions Precedent to
  Obligation of Purchaser

  
	
   

  	
  Section 9.2

  	
  Conditions Precedent to
  Obligations of Seller

  
	
   

  	
  Section 9.3

  	
  Failure of Condition

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  X

  	
  CLOSING

  
	
   

  	
   

  
	
   

  	
  Section 10.1

  	
  Closing

  
	
   

  	
  Section 10.2

  	
  Purchaser’s Closing
  Obligations

  
	
   

  	
  Section 10.3

  	
  Seller’s Closing
  Obligations

  
	
   

  	
  Section 10.4

  	
  Prorations.

  
	
   

  	
  Section 10.5

  	
  Costs of Title Company
  and Closing Costs

  
	
   

  	
  Section 10.6

  	
  Post-Closing Delivery
  of Tenant Notice Letters

  
	
   

  	
  Section 10.7

  	
  Like-Kind Exchange

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XI

  	
  CONDEMNATION
  AND CASUALTY

  
	
   

  	
   

  
	
   

  	
  Section 11.1

  	
  Casualty

  
	
   

  	
  Section 11.2

  	
  Condemnation of
  Property

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XII

  	
  CONFIDENTIALITY

  
	
   

  	
   

  
	
   

  	
  Section 12.1

  	
  Confidentiality

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XIII

  	
  REMEDIES

  
	
   

  	
   

  
	
   

  	
  Section 13.1

  	
  Default by Seller.

  
	
   

  	
  Section 13.2

  	
  Default by Purchaser

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
  NOTICES

  
	
   

  	
   

  
	
   

  	
  Section 14.1

  	
  Notices.

  

 

ii

 

	
  ARTICLE
  XV

  	
  BROKERAGE

  
	
   

  	
   

  
	
   

  	
  Section 15.1

  	
  Brokers

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XVI

  	
  ESCROW
  AGENT

  
	
   

  	
   

  
	
   

  	
  Section 16.1

  	
  Escrow.

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XVII

  	
  MISCELLANEOUS

  
	
   

  	
   

  
	
   

  	
  Section 17.1

  	
  Waivers

  
	
   

  	
  Section 17.2

  	
  TIME OF THE ESSENCE

  
	
   

  	
  Section 17.3

  	
  Recovery of Certain
  Fees

  
	
   

  	
  Section 17.4

  	
  Construction

  
	
   

  	
  Section 17.5

  	
  Counterparts

  
	
   

  	
  Section 17.6

  	
  Severability

  
	
   

  	
  Section 17.7

  	
  Entire Agreement

  
	
   

  	
  Section 17.8

  	
  Governing Law

  
	
   

  	
  Section 17.9

  	
  No Recording

  
	
   

  	
  Section 17.10

  	
  Further Actions

  
	
   

  	
  Section 17.11

  	
  No Partnership

  
	
   

  	
  Section 17.12

  	
  Limitations on
  Benefits

  
	
   

  	
  Section 17.13

  	
  Assignment: Binding
  Effect

  
	
   

  	
  Section 17.14

  	
  Remedies Cumulative

  
	
   

  	
  Section 17.15

  	
  Further Assurances

  
	
   

  	
  Section 17.16

  	
  Cooperation.

  
	
   

  	
  Section 17.17

  	
  Exculpation

  
	
   

  	
  Section 17.18

  	
  Drafts Not an Offer
  to Enter into a Legally Binding Contract

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XVIII

  	
  SCHWAB
  MATTERS

  
	
   

  	
   

  
	
   

  	
  Section 18.1

  	
  Schwab’s Lease.

  
	
   

  	
  Section 18.2

  	
  Work Allowance and
  Additional Work Allowance.

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XIX

  	
  INDEMNITY

  
	
   

  	
   

  
	
   

  	
  Section 19.1

  	
  Indemnification by
  Seller

  
	
   

  	
  Section 19.2

  	
  Indemnification by
  Purchaser

  
	
   

  	
  Section 19.3

  	
  Survival of Indemnity

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XX

  	
  8/9
  TRANSFEREE DEBT MAINTENANCE COVENANT

  
	
   

  	
   

  
	
   

  	
  Section 20.1

  	
  Maintenance Covenant

  
	
   

  	
  Section 20.2

  	
  Guaranty of
  Maintenance

  

 

iii

TABLE OF CONTENTS

(Continued)

INDEX OF DEFINED TERMS

 

	
   

  	
  Page

  
	
  8/9 Bifurcated Waterfront Permit

  	
  22

  
	
  8/9 Transferee

  	
  4

  
	
  8/9 Transferee Guaranty

  	
  44

  
	
  Access Agreement

  	
  15

  
	
  AFE

  	
  1

  
	
  Affiliate

  	
  2

  
	
  Agreement

  	
  1

  
	
  Allocation Letter

  	
  11

  
	
  Amended Financial Agreement

  	
  3

  
	
  Amended Leases

  	
  24

  
	
  Amendment to Ground Lease

  	
  24

  
	
  Amendment to Sublease

  	
  24

  
	
  Approvals

  	
  3

  
	
  Approvals shall have been obtained

  	
  3

  
	
  Authorities

  	
  3

  
	
  Broker

  	
  54

  
	
  Building

  	
  3

  
	
  Business Day

  	
  3

  
	
  Certificate as to Foreign Status

  	
  3, 44

  
	
  Certifying Person

  	
  3, 11

  
	
  City

  	
  3

  
	
  Closing

  	
  3

  
	
  Closing Date

  	
  3

  
	
  Closing Statement

  	
  3, 46

  
	
  Closing Surviving Obligations

  	
  4

  
	
  Code

  	
  4, 11

  
	
  Columbia

  	
  1

  
	
  Columbia Documents

  	
  30

  
	
  Columbia Interest

  	
  2

  
	
  Confidentiality Agreement

  	
  4

  
	
  Construction Agreements

  	
  4

  
	
  Contractor

  	
  6

  
	
  Contracts

  	
  32

  
	
  Contribution Agreement

  	
  4

  
	
  Contribution Amount

  	
  48

  
	
  Control

  	
  3

  
	
  CRA

  	
  4, 26

  
	
  CREA

  	
  4, 26

  
	
  Dedication

  	
  4, 25

  
	
  Delinquent

  	
  47

  
	
  Delinquent Rental

  	
  4

  
	
  Development Permit

  	
  22

  
	
  Documents

  	
  4, 13

  

 

TABLE OF CONTENTS

(Continued)

 

	
   

  	
  Page

  
	
  Earnest Money Deposit

  	
  4, 11

  
	
  Effective Date

  	
  4

  
	
  Entry Notice

  	
  12

  
	
  Environmental Laws

  	
  4

  
	
  Environmental Reports

  	
  32

  
	
  Environmental Statutes

  	
  5

  
	
  Escrow Agent

  	
  5

  
	
  Escrowed Funds

  	
  56

  
	
  Excluded Real Property

  	
  5

  
	
  Existing Deed Notice

  	
  25

  
	
  Existing Survey

  	
  5

  
	
  Final Closing Statement

  	
  47

  
	
  Financial Agreement

  	
  6

  
	
  Financial Statements

  	
  6

  
	
  GAAP

  	
  6

  
	
  Governmental
  Regulations

  	
  6

  
	
  Ground Lease

  	
  1

  
	
  Harsimus

  	
  1

  
	
  Harsimus Documents

  	
  28

  
	
  Harsimus Interest

  	
  2

  
	
  Hazardous Substances

  	
  6

  
	
  Improvements

  	
  6

  
	
  Initial Term Schwab
  Commissions

  	
  47

  
	
  IRS

  	
  6

  
	
  iStar

  	
  15

  
	
  JCRA Approval

  	
  6

  
	
  JMB Construction
  Contract

  	
  6

  
	
  JMB Cooling Tower Contract

  	
  6

  
	
  Leasing Commission
  Agreements

  	
  7

  
	
  Legal Restraints

  	
  38

  
	
  Licensee Parties

  	
  7, 12

  
	
  Licenses and Permits

  	
  7

  
	
  LLC Assignment and
  Assumption

  	
  43

  
	
  Losses

  	
  7, 62

  
	
  Material Taking

  	
  50

  
	
  Memorial

  	
  25

  
	
  MOA

  	
  25

  
	
  Monetary Objections

  	
  7, 20

  
	
  NJDEP

  	
  7

  
	
  Operating Expenses

  	
  7

  
	
  Ordinance

  	
  7

  
	
  Outside Closing Date

  	
  7, 41

  
	
  PECA

  	
  7

  
	
  Permit Condition

  	
  22

  

 

TABLE OF CONTENTS

(Continued)

 

	
   

  	
  Page

  
	
  Permitted Exceptions

  	
  7, 19

  
	
  Permitted Outside
  Parties

  	
  7, 13

  
	
  Permitted Transfers

  	
  7

  
	
  Personal Property

  	
  7

  
	
  PILOT Service Charge

  	
  48

  
	
  Plaza IX

  	
  5

  
	
  Plaza VIII

  	
  5

  
	
  Plaza X Bifurcated
  Waterfront Permit

  	
  22

  
	
  Post-Transfer AFE

  	
  22

  
	
  Property

  	
  8

  
	
  Property Management
  Agreement

  	
  42

  
	
  Property Owner

  	
  1

  
	
  Proration Items

  	
  8, 46

  
	
  Proration Time

  	
  46

  
	
  Purchase Price

  	
  8, 10

  
	
  Purchaser

  	
  1

  
	
  Purchaser Documents

  	
  36

  
	
  Purchaser has actual knowledge

  	
  8

  
	
  Purchaser’s Affiliates

  	
  8

  
	
  Purchaser’s Costs

  	
  11

  
	
  Purchaser’s Information

  	
  8, 15

  
	
  Purchaser’s Proposed
  Estoppel Certificate

  	
  39

  
	
  Purchaser’s Share of
  the Contribution Amount

  	
  48

  
	
  PXLA

  	
  1

  
	
  PXR

  	
  1

  
	
  PXURA

  	
  1

  
	
  Real Property

  	
  1

  
	
  Redevelopment Agreement

  	
  8

  
	
  References Exhibits and
  Schedules

  	
  9

  
	
  Renewal Term Schwab
  Commissions

  	
  47

  
	
  Rent Shortfall Credit

  	
  48

  
	
  Rental

  	
  8, 47

  
	
  Representation Basket

  	
  36

  
	
  Representation Cap

  	
  36

  
	
  Retained Entity

  	
  2

  
	
  Retained Interest

  	
  2

  
	
  ROEA

  	
  26

  
	
  Schedule of Insurance
  by Property Owner

  	
  31

  
	
  Scheduled Closing Date

  	
  8

  
	
  Schwab

  	
  2

  
	
  Schwab Lease

  	
  2

  
	
  Schwab Parties

  	
  12

  
	
  Schwab Subleases

  	
  32

  
	
  Schwab’s Expansion
  Options

  	
  9

  

 

TABLE OF CONTENTS

(Continued)

 

	
   

  	
  Page

  
	
  Seller

  	
  1

  
	
  Seller Entity

  	
  1

  
	
  Seller Related Parties

  	
  62

  
	
  Seller’s Affiliates

  	
  9

  
	
  Seller’s LLC Interest

  	
  2

  
	
  Significant Portion

  	
  9

  
	
  Sublease

  	
  1

  
	
  Superfund Act

  	
  5

  
	
  Survey

  	
  19

  
	
  Tenant Notice Letters

  	
  42

  
	
  Termination Surviving
  Obligations

  	
  9

  
	
  Threshold Estoppel
  Certificate

  	
  38

  
	
  Title Company

  	
  9

  
	
  Title Defect

  	
  21

  
	
  Title Policy

  	
  9

  
	
  Title Report

  	
  9, 19

  
	
  To Columbia’s Knowledge

  	
  9

  
	
  To Harsimus’ Knowledge

  	
  9

  
	
  To Seller’s Knowledge

  	
  9

  
	
  Transfer Tax Forms

  	
  42

  
	
  Treasury Regulations

  	
  9

  
	
  Updated Deed Notice

  	
  9, 25

  
	
  Walkway Easement

  	
  27

  
	
  Waterfront Walkway

  	
  27

  
	
  Work Allowance Credit

  	
  63

  

 

 

THIS AGREEMENT OF SALE AND PURCHASE (“Agreement”)
is made this 12th day of August, 2003 between and among M-C HARSIMUS PARTNERS L.L.C., a limited liability company
organized under the laws of the State of New Jersey having an address c/o
Mack-Cali Realty Corporation, 11 Commerce Drive, Cranford, New Jersey 07016 (“Harsimus”) and COLUMBIA DEVELOPMENT COMPANY, L.L.C., a limited liability company
organized under the laws of the State of New Jersey having an address at 30
Montgomery Street, 15th Floor, Jersey City, New Jersey 07302 (“Columbia,” and together with Harsimus,
“Seller;” Columbia and Harsimus are also
sometimes referred to individually as a “Seller
Entity”) and iSTAR HARBORSIDE
LLC, a limited liability company organized under the laws of the
State of Delaware having an address at c/o iStar Financial, Inc.,
1114 Avenue of the Americas, New York, New York  10036 (“Purchaser”)

 

R
E  C  I  T  A  L  S:

 

WHEREAS, as of the date
hereof, Columbia and Harsimus are the sole members of, and together own one
hundred percent (100%) of the beneficial ownership interest in, American
Financial Exchange L.L.C., a limited liability company organized under the laws
of the State of New Jersey (“AFE”);

 

WHEREAS, AFE is (i) the
owner of that certain parcel or parcels of real property described on the legal
description attached hereto and made a part hereof as Schedule A, together with all of AFE’s right,
title and interest, if any, in and to the appurtenances pertaining thereto,
including but not limited to AFE’s right, title and interest in and to the
adjacent streets, alleys and right-of-ways, and any easement rights, air
rights, subsurface development rights and water rights (but not including the Excluded Real Property (as hereinafter defined))
(collectively, the “Real Property”), and (ii) the landlord under that certain Ground Lease dated as
of October 6, 2000 (the “Ground Lease”),
pursuant to which the Real Property is leased to Plaza X Urban Renewal
Associates L.L.C., a limited liability company organized under the laws of the
State of New Jersey (“PXURA”);

 

WHEREAS, AFE is the sole
member of, and owns one hundred percent (100%) of the interest in, Plaza X
Realty L.L.C., a limited liability company organized under the laws of the
State of New Jersey (“PXR”),
and PXR is the sole member of, and owns one hundred percent (100%) of the
interest in, PXURA;

 

WHEREAS, PXURA
constructed, and is the owner of, the Building (as hereinafter defined)
constructed upon the Real Property and, as sublandlord, has further sublet the
Real Property and the Building to Plaza X Leasing Associates L.L.C., a limited
liability company organized under the laws of the State of New Jersey (“PXLA,” and together with PXURA, PXR and
AFE, collectively or individually as the context may require, “Property Owner”), as subtenant,
pursuant to that certain Lease dated as of October 6, 2000 (the “Sublease”);

 

WHEREAS, PXR is the sole
member of, and owns one hundred percent (100%) of the interest in, PXLA;

 

 

WHEREAS, via its sole
membership in, and one hundred percent (100%) ownership of, PXR, AFE indirectly
owns all of both PXLA and PXURA;

 

WHEREAS, PXLA, as
sub-sublandlord, has entered into that certain Amended and Restated Lease dated
as of December 29, 2000, as supplemented and amended, and as is more
particularly described on Schedule 8.3(c)(i)-1
annexed hereto (collectively, the “Schwab
Lease”), with Charles Schwab & Co., Inc. (“Schwab”),
as sub-subtenant, for the entire rentable area of the Building, all as is more
particularly set forth in the Schwab Lease;

 

WHEREAS,
contemporaneously with the Closing (as hereinafter defined), but sequentially
prior to all other actions taken at the Closing, (i) Columbia, pursuant to an
assignment and assumption agreement will assign, transfer and convey a 4%
membership interest in and to AFE pursuant to an assignment and assumption
agreement in substantially the form attached hereto as Exhibit 10.3(a)
(the “Retained Interest”)
to an entity entirely owned and controlled by certain owners of an indirect
interest in Columbia (the “Retained Entity”
), and (ii) the Retained Entity
will assign, transfer and convey the Retained Interest to Purchaser pursuant to
an assignment and assumption agreement in substantially the form attached
hereto as Exhibit 10.3(a) (collectively, the “Retained Interest
Assignments”);

 

WHEREAS, at Closing, (i)
Harsimus will assign, transfer and convey to Purchaser its entire membership
interest in AFE (the “Harsimus Interest”)
and (ii) Columbia will assign, transfer and convey to Purchaser its entire
membership interest in AFE (after the assignment, transfer and conveyance of
the Retained Interest, the “Columbia
Interest,” and together with the Harsimus Interest, sometimes
referred to as “Seller’s LLC Interest”),
all  upon and subject to the terms
and conditions set forth in this Agreement; and

 

WHEREAS, Seller desires
to sell, and Purchaser desires to purchase, Seller’s LLC Interest, all  upon and subject to the terms and
conditions set forth in this Agreement.

 

NOW THEREFORE, in
consideration of the mutual promises, covenants, and agreements set forth
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Seller and Purchaser agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.1             Definitions.  For purposes of this Agreement, the
following capitalized terms have the meanings set forth in this Section 1.1:

 

“Affiliate” means, with respect to any
entity, any other individual or entity which, directly or indirectly through
one or more intermediaries, controls, is controlled by, or is under common control
with, such entity first mentioned, and the heirs, administrators, executors,
personal or legal representatives and successors and assigns of any or all of
the foregoing.  With respect to any
individual, such individual’s parents, spouse, direct lineal or adoptive
descendants, descendants by marriage, and/or one more trusts created for the
benefit of such individual or any

 

2

 

such family
members.  “Control” (including the correlative meaning of the terms
“controlled by” and “under the common control with”) means the possession,
direct or indirect, of the power to direct or cause the direction of an entity,
whether through the ownership of voting securities, by contract or otherwise.

 

“Amended Financial Agreement” means that
certain amendment to the Financial Agreement (as hereinafter defined), entered into in accordance with the
Ordinance (as hereinafter defined),
between PXURA and the City (as hereinafter defined), which form of amendment is
annexed hereto as Exhibit 1.1(a); provided, however, that such form may be
modified to include any non-material changes requested by the City and such
other matters as may be approved by both Purchaser and Seller, which approval
shall not be unreasonably withheld, conditioned or delayed.

 

“Approvals” means the collective
reference to the Ordinance (as
hereinafter defined), the Amended Financial Agreement and the approval
by the New Jersey Department of Community Affairs to the amended Certificate of
PXURA, as annexed to the Amended Financial Agreement.

 

“Approvals shall have been obtained”
means the occurrence of the following: the Ordinance is obtained, the Amended
Financial Agreement becomes effective, the approval by the New Jersey
Department of Community Affairs to the amended Certificate of PXURA, as annexed
to the Amended Financial Agreement, is obtained and the submission for filing
with the Treasurer of the State of New Jersey of such amended Certificate of
PXURA.

 

“Authorities” means the
various federal, state and local governmental and quasi-governmental bodies or
agencies having jurisdiction over the Real Property and Improvements (as
hereinafter defined), or any portion thereof.

 

“Building” shall have
the meaning ascribed to such term in the Schwab Lease.

 

“Business Day” means
any day other than a Saturday, Sunday or a day on which national banking
associations are authorized or required to close.

 

“Certificate as to Foreign Status”
has the meaning ascribed to such term in Section 10.3(d).

 

“Certifying Person” has
the meaning ascribed to such term in Section 4.3(a).

 

“City” means the City of Jersey City.

 

“Closing” means the
consummation of the purchase and sale of the Seller’s LLC Interest contemplated
by this Agreement, as provided for in Article X.

 

“Closing Date” means
the date on which the Closing of the transaction contemplated hereby actually
occurs.

 

“Closing Statement” has
the meaning ascribed to such term in Section 10.4(a).

 

3

 

“Closing Surviving Obligations”
means the rights, liabilities, obligations, covenants, and agreements set forth
in Sections 4.3, 5.3, 5.4, 7.2, 7.3, 7.4,
7.5, 7.6, 8.1, 8.2, 8.3, 8.4, 8.5,
8.6, 10.4, 10.5, 10.6, 10.7, 11.1, 12.1,
15.1, 16.1, Article XIV, Article XVII, Section 18.2,
Article XIX and Article XX,
and any other provisions (including, without limitation, guaranties and
indemnities) which pursuant to their terms survive the Closing hereunder.

 

“Code” has the meaning
ascribed to such term in Section 4.3.

 

“Confidentiality Agreement”
means that certain Confidentiality Agreement, dated October 2, 2002,
between AFE and iStar Financial Inc.

 

“Construction
Agreements” means (i)
the JMB Construction Contract and the JMB Cooling Tower Contract (as such terms
are hereinafter defined), (ii) all other contracts and agreements entered into
by PXURA or any other Property Owner in connection with the construction of the
Building, including, without limitation, all written agreements, if any, with
the architects (including architects’ drawings), contractors, subcontractors
and product manufacturers that provided services and/or materials in connection
with the construction of the Building, and (iii) any and all warranties or
guarantees issued under or pursuant to the JMB Construction Contract and the
JMB Cooling Tower Contract (such warranties or guarantees, collectively, the “Warranties”).

 

“Contribution
Agreement” means
that certain Contribution Agreement dated November 15, 2000 between AFE
and the City.

 

“CRA” has the meaning ascribed to such
term in Section 7.1(k).

 

“CREA” has the meaning ascribed to such
term in Section 7.1(j).

 

“Dedication” has the meaning ascribed to
such term in Section 7.1(f)(ii).

 

“Delinquent Rental” has
the meaning ascribed to such term in Section 10.4(b).

 

“Documents” has the
meaning ascribed to such term in Section 5.2(a).

 

“Earnest Money Deposit”
has the meaning ascribed to such term in Section 4.1.

 

“Effective Date” means
the date of this Agreement.

 

“8/9 Transferee” means Plaza VIII &
IX Associates L.L.C., a New Jersey limited liability company, the
successor-in-interest to AFE to the fee title to the Excluded Real Property (as
hereinafter defined).

 

“Environmental Laws”
means each and every federal, state, county and municipal statute, ordinance,
rule, regulation, code, order, requirement, directive, binding written
interpretation and binding written policy pertaining to Hazardous Substances
(as hereinafter defined) issued by any Authorities and in effect as of the date
of this Agreement which affects the Real Property or the Improvements (as
hereinafter defined), or any portion thereof, the use,

 

4

 

ownership,
occupancy or operation of the Real Property or the Improvements, or any portion
thereof, and as same have been amended, modified or supplemented from time to
time prior to the Effective Date, including but not limited to the
Comprehensive Environmental Response, Compensation and Liability Act of 1980
(42 U.S.C. § 9601 et seq.) (the “Superfund
Act”), the Hazardous Substances Transportation Act (49 U.S.C. §
1802 et
seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.),
as amended by the Hazardous and Solid Wastes Amendments of 1984, the Water
Pollution Control Act (33 U.S.C. § 1251 et seq.), the Safe Drinking Water Act (42
U.S.C. § 300f et seq.), the Clean Water Act (33 U.S.C. § 1321 et seq.),
the Clean Air Act (42 U.S.C. § 7401 et seq.), the Solid Waste Disposal Act (42
U.S.C. § 6901 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601
et seq.),
the Emergency Planning and Community Right-to-Know Act of 1986 (42 U.S.C. §
11001 et
seq.), the Radon and Indoor Air Quality Research Act (42 U.S.C. §
7401 note, et
seq.), the National Environmental Policy Act (42 U.S.C. § 4321 et seq.),
the Superfund Amendment Reauthorization Act of 1986 (42 U.S.C. § 9601 et seq.),
the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.); the New Jersey
Environmental Rights Act, N.J.S.A. 2A:35A-1 et seq.; the New Jersey Spill Compensation
and Control Act, N.J.S.A. 58:10-23.11 et seq.; the New Jersey Air Pollution
Control Act, N.J.S.A. 26:2C-1 et seq.;  the New Jersey Water Pollution Control Act, N.J.S.A. 58:10A-1 et seq.;
the Hazardous Substances Discharge: Reports and Notices Act, N.J.S.A. 13:1K-15 et seq.;
the Industrial Site Recovery Act, N.J.S.A. 13:1K-6 et seq.; the New Jersey
Underground Storage of Hazardous Substances Act, N.J.S.A. 58:10A-21 et seq.
(collectively, the “Environmental Statutes”), and any and
all rules and regulations which have become effective prior to the date of this
Agreement under any and all of the Environmental Statutes.

 

“Escrow Agent” means
First American Title Insurance Company, with an office at 633 Third
Avenue, New York, New York 10017.

 

“Excluded Real Property” means (i) those
certain parcels of land adjacent to the Real Property and designated as Block
15, Lot 50 commonly referred to as Plaza VIII (“Plaza VIII”) and 
Plaza IX (“Plaza IX”)
and that certain publicly accessible open space adjacent thereto and designated
as Block 15, Lot 49 at the Harborside Financial Center, Jersey City, New
Jersey, (ii) the portion of Block 15, Lot 18 described on Schedule A-1
attached hereto and (iii) all unutilized air and subsurface development
rights, if any, set forth in the Licenses and Permits (as hereinafter defined)
the Financial Agreement (as hereinafter defined), and the Redevelopment
Agreement (as hereinafter defined); provided, however, if the
Waterfront Development Permit is bifurcated prior to Closing in the manner set
forth in Section 7.1(b)(ii) of this Agreement, then the term “Excluded
Real Property” shall also include the 8/9 Bifurcated Waterfront Permit, and all
of the rights and privileges granted therein. 
In no event shall “Excluded Real Property” include the development
rights set forth in the Waterfront Development Permit which pertained to the
development of the Building, which development rights are to be set forth in
the Plaza X Bifurcated Waterfront Permit.

 

“Existing Survey” means
that certain survey of the Real Property November 23, 2002, updated as of June
24, 2003, prepared by John Zanetakos Associates, Inc.

 

5

 

“Financial
Agreement“ means
that certain Financial Agreement, together with all exhibits and schedules
annexed thereto, made as of November 15, 2000 between Plaza X Urban
Renewal Associates, LLC and the City, as amended by the Addendum to Financial
Agreement made as of November 15, 2000.

 

“Financial Statements” means the
consolidated financial statements of AFE and its subsidiaries as of and for the
year ended December 31, 2002 and as of and for the six month period ended June
30, 2003, each prepared in accordance with GAAP (as hereinafter defined).

 

“GAAP” means United States generally
accepted accounting principles, consistently applied.

 

“Governmental Regulations”
means all statutes, ordinances, rules and regulations of the Authorities
applicable to Seller or the use or operation of the Real Property or the
Improvements or any portion thereof.

 

“Hazardous Substances”
means (a) asbestos, radon gas and urea formaldehyde foam insulation,
(b) any solid, liquid, gaseous or thermal contaminant, including smoke
vapor, soot, fumes, acids, alkalis, chemicals, petroleum products or
byproducts, PCB’s, phosphates, lead or other heavy metals and chlorine,
(c) any solid or liquid waste (including, without limitation, hazardous
waste), hazardous air pollutant, hazardous substance, hazardous chemical
substance and mixture, toxic substance, pollutant, pollution, regulated
substance and contaminant, as such terms are defined in any of the
Environmental Laws, and (d) any other chemical, material or substance, the
use or presence of which, or exposure to the use or presence of which, is
prohibited, limited or regulated by any Environmental Laws.

 

“Improvements” means
all buildings (including, without limitation, the Building), structures,
fixtures, parking areas and other improvements, together with the tenements,
hereditaments and appurtenances thereto belonging, located on the Real
Property.

 

“IRS” means the Internal Revenue
Service.

 

“JCRA Approval” means the issuance of a
Certificate of Substantial Completion from Jersey City Redevelopment Agency, a
New Jersey public body corporate, which confirms that all obligations of the
Redevelopment (as defined in the Redevelopment Agreement (as hereinafter
defined)) under the Redevelopment Agreement have been substantially completed
with respect to the Real Property, and that the Jersey City Redevelopment
Agency’s right of reverter with respect to the Real Property has been
terminated.

 

“JMB Construction Contract” means that
certain construction agreement between PXURA and Jeffrey M. Brown, Inc. (“Contractor”), with respect to the
construction of the Building, dated July 15, 2000.

 

“JMB Cooling Tower Contract” means that
certain construction agreement between PXURA and Contractor with respect to
construction of the fourth cooling tower at the Building dated
December 11, 2002.

 

6

 

 “Leasing Commission Agreements” means
the leasing commission agreements affecting the Property, and which are more
particularly set forth on Schedule 8.3(k) attached hereto.

 

“Licensee Parties” has
the meaning ascribed to such term in Section 5.1.

 

“Licenses and Permits”
means, collectively, all of the Property Owner’s right, title and interest, in
and to licenses, permits, certificates of occupancy, approvals, dedications,
zoning approvals, warranties, lien waivers, utility arrangements, subdivision
maps and entitlements now existing or hereafter issued, approved or granted by
the Authorities in connection with the Real Property and the Improvements,
together with all renewals and modifications thereof.

 

“Losses” has the meaning ascribed to
such term in Section 17.17.

 

“Monetary Objections”
has the meaning ascribed to such term in Section 6.2.

 

“NJDEP” means the New Jersey Department
of Environmental Protection.

 

“Operating Expenses”
has the meaning ascribed to such term in Section 10.4(c).

 

“Ordinance” means a validly adopted,
effective and non-appealable Ordinance of the Municipal Council of the City in
the form annexed hereto as Exhibit 7.3; provided, however,
that such form may be modified to include any non-material changes requested by
the City and such other matters as may be approved by both Purchaser and
Seller, which approval shall not be unreasonably withheld, conditioned or
delayed by either party.  The parties
hereto hereby agree that the Ordinance shall be deemed non-appealable after the
expiration of the applicable 45-day appeal period.

 

“Outside Closing Date” has the meaning
ascribed to such term in Section 10.1.

 

“PECA” means that certain Project
Employment and Contracting Agreement between the City and PXURA, dated as of
November 15, 2000, as amended through the Closing Date.

 

“Permitted Exceptions”
has the meaning ascribed to such term in Section 6.2(a).

 

“Permitted Outside Parties”
has the meaning ascribed to such term in Section 5.2(b).

 

“Permitted Transfers” means transfers,
whether directly or indirectly, of all or any portion of Seller’s LLC Interest
between all or any of the Seller Entities and/or Seller’s Affiliates; provided,
however, that such transferee (to the extent not already a party hereto)
shall automatically be bound by the provisions of this Agreement to the same
extent as the transferor of its interest.

 

“Personal Property”
means that certain equipment, appliances, tools, supplies, machinery, artwork,
furnishings and other tangible personal property attached to, appurtenant to,
located in and used in connection with the ownership or operation of the
Improvements and situated at the Real Property more particularly identified on Schedule B annexed hereto.

 

7

 

“Property” means,
collectively, the following:  (i) the
Real Property; (ii) the Improvements and all of the Property Owner’s
right, title and interest in and to any land lying in the bed of any street,
road, avenue or alley, open or proposed, in front of or adjoining the Land to
the center line thereof, and any strips or gores adjacent to the Real Property,
and all right, title and interest of Property Owner in and to any award made or
to be made for damages by reason of any change in grade of any street; (iii)
the Personal Property; (iv) the Schwab Lease, the Ground Lease and the
Sublease; (v) the Licenses and Permits; (vi) the Leasing Commission
Agreements; (vii) the Construction Agreements; (viii) the Owner Controlled
Insurance Program for the construction of the Building (the “OCIP”) consisting of the General
Liability Policy issued by St. Paul Fire and Marine Insurance Company, policy
number KG0290072 and the Workers Compensation Policy issued by St. Paul Fire
and Marine Insurance Company under policy number WVW2989000, but specifically
excluding any savings, refunds or other amounts payable under the OCIP; and
(ix) all other plans, specifications, approvals, tax abatements and all other
intangible rights, titles, interests, privileges and appurtenances owned by
Property Owner and related to or used in connection with the ownership, use or
operation of the Real Property or the Improvements, but specifically excluding
any property owned by Tenants or others and the Excluded Real Property.

 

“Proration Items” has
the meaning ascribed to such term in Section 10.4(a).

 

“Purchase Price” has
the meaning ascribed to such term in Section 3.1.

 

“Purchaser has actual knowledge”
(and variations thereon used herein) means the actual (as opposed to
constructive or imputed) knowledge solely of H. Cabot Lodge III, as Executive
Vice President of iStar Financial Inc, Joe Welsh, as Vice President of iStar
Financial Inc., and Christopher Miculis, as Associate of iStar Financial Inc.,
without any independent investigation or inquiry whatsoever, other than the due
diligence conducted by Purchaser in connection with this transaction.

 

“Purchaser’s Affiliates”
means all of the Affiliates of Purchaser.

 

“Purchaser’s Information”
has the meaning ascribed to such term in Section 5.3(c).

 

“Redevelopment Agreement” means that
certain Redevelopment Agreement dated as of April 12, 1985 between Jersey
City Redevelopment Agency, a New Jersey public body corporate, and A-S-H
Management Corporation, a Delaware corporation, and recorded in the Hudson
County Register of Deeds on November 27, 1985 in Book 3485, at Page 1, as
subsequently amended, modified, supplemented and assigned.

 

“Rental” has the
meaning ascribed to such term in Section 10.4(b), and same are
“Delinquent” in accordance with the meaning ascribed to such term in Section 10.4(b).

 

“Scheduled Closing Date”
means the date that is ten (10) Business Days following the satisfaction, or
waiver in writing of, the conditions set forth in Sections 9.1(j) and (o),
and 9.2(g) hereof, or such later date to which the Closing may be
adjourned in accordance with the express

 

8

 

terms of this
Agreement or such earlier or later date to which Purchaser and Seller may
hereafter agree in writing.

 

“Schwab’s Expansion Options” means the
First Expansion Option (as such term is defined in the Schwab Lease) and Second
Expansion Option (as such term is defined in the Schwab Lease) granted to
Schwab under the Schwab Lease.

 

“Seller’s Affiliates”
means all of the Affiliates of Seller.

 

“Significant Portion”
means, for purposes of the casualty provisions set forth in Article XI
hereof, damage by fire or other casualty to the Real Property and the
Improvements or a portion thereof, such that Schwab is entitled to terminate
the Schwab Lease pursuant to Section 10.05(d) thereof.

 

“Termination Surviving Obligations”
means the rights, liabilities and obligations set forth in Sections  5.2,
5.3, 5.4, 12.1, and 16.1, and Articles XIII, XIV
and XVII, and any other provisions
which pursuant to their terms survive any termination of this Agreement.

 

“Title Company” means
First American Title Insurance Company and Fidelity National Title Company as
equal co-insurers.

 

“Title Policy” means
the title policy, if any, obtained by Purchaser from the Title Company at
Closing.

 

“Title Report” has the
meaning ascribed to such term in Section 6.2(a).

 

“To Columbia’s Knowledge” (and
variations thereon used herein) means the present actual (as opposed to
constructive or imputed) knowledge solely of Joseph A. Panepinto, Peter Mangin
and Frank Guarini without any independent investigation or inquiry whatsoever.

 

“To Harsimus’ Knowledge” (and variations thereon used herein)
means the present actual (as opposed to constructive or imputed) knowledge
solely of Mitchell Hersh, as Chief Executive Officer of Mack-Cali Realty
Corporation, Roger Thomas, as General Counsel of Mack-Cali Realty Corporation,
Gary Wagner, as Associate General Counsel of Mack-Cali Realty Corporation, John
Crandall, as Senior Vice President – Development of Mack-Cali Realty
Corporation and John Marazzo, as Senior Director – Property Management of
Mack-Cali Realty Corporation, without any independent investigation or inquiry
whatsoever.

 

“To Seller’s Knowledge”
(and variations thereon used herein) means, collectively, To Columbia’s
Knowledge and To Harsimus’ Knowledge.

 

“Treasury Regulations” means the
regulations prescribed under the Code.

 

“Updated Deed Notice” has the meaning
ascribed to such term in Section 7.1(h).

 

Section 1.2             References:  Exhibits and Schedules.    Except as otherwise specifically indicated,
all references in this Agreement to Articles or Sections refer to Articles or
Sections of

 

9

 

this Agreement, and all references to Exhibits or Schedules
refer to Exhibits or Schedules attached hereto, all of which Exhibits and
Schedules are incorporated into, and made a part of, this Agreement by
reference. The words “herein,” “hereof,” “hereinafter” and words and phrases of
similar import refer to this Agreement as a whole and not to any particular
Section or Article.

 

ARTICLE II

AGREEMENT OF PURCHASE AND SALE

 

Section 2.1             Purchase and Sale. 
Subject to the conditions and on the terms contained in this Agreement,
Purchaser agrees to purchase and acquire from Seller, and Seller agrees to sell
and transfer to Purchaser, Seller’s LLC Interest.  By acquiring Seller’s LLC Interest pursuant hereto, the Retained
Interest pursuant to the Retained Interest Assignments, Purchaser shall
indirectly own one hundred percent (100%) of the beneficial ownership interest
in and to the Property and Property Owner. 
Anything to the contrary contained herein notwithstanding, Seller is not
transferring to Purchaser any bank accounts or funds therein maintained by AFE
or any Property Owner and Seller shall have the right, at any time on or prior
to Closing, to transfer any such bank accounts or withdraw any such funds and
keep the same for its own benefit; provided, that this sentence shall not
affect the pro rations under Section 10.4.

 

Section 2.2             Indivisible Economic Package.  Purchaser has no right to purchase, and
Seller has no obligation to sell, less than all of Seller’s LLC Interest, it
being the express agreement and understanding of Purchaser and Seller that, as
a material inducement to Seller and Purchaser to enter into this Agreement,
Purchaser has agreed to purchase, and Seller has agreed to sell, all of
Seller’s LLC Interest, subject to and in accordance with the terms and
conditions hereof

 

Section 2.3             Full Performance.  The execution and
delivery of the LLC Assignment and Assumption (as hereinafter defined) and the
other documents to be executed and/or delivered by Seller to Purchaser pursuant
to this Agreement shall be deemed to be a full performance and discharge of
every agreement and obligation on the part of Seller to be performed under this
Agreement, except those agreements, obligations, covenants, representations,
warranties and indemnifications of Seller which are specifically stated to
survive the closing of the transaction contemplated in this Agreement.

 

ARTICLE III

CONSIDERATION

 

Section 3.1             Purchase Price.  The purchase price for Seller’s LLC Interest
shall be the sum of One Hundred Eighty Six Million One Hundred Ninety Two
Thousand and 00/100 Dollars ($186,192,000.00) all in lawful currency of the
United States of America, payable as provided in Section 3.2, and
subject to adjustments and credits as expressly contemplated by this Agreement
(the “Purchase
Price”).

 

10

 

Section 3.2             Method of Payment of Purchase Price.  No later than 1:00 p.m. Eastern Time on the
Scheduled Closing Date, Purchaser shall pay to Escrow Agent (on behalf of
Seller) the Purchase Price (less the Earnest Money Deposit), together with all
other costs and amounts to be paid by Purchaser at the Closing pursuant to the
terms of this Agreement (such other costs and amounts, “Purchaser’s Costs”),
by Federal Reserve wire transfer of immediately available funds to the account
of Escrow Agent pursuant to and in accordance with the wiring instructions
supplied by Seller to Purchaser one (1) Business Day prior to the Scheduled
Closing Date.  Escrow Agent, following
authorization and instruction by the parties at Closing, shall (i) pay to
each of Harsimus (or its designee) and Columbia (or its designee) by separate
Federal Reserve wire transfers of immediately available funds to the account
designated by each of them, the amount of the Purchase Price, less any costs or
other amounts to be paid by Seller at Closing pursuant to the terms of this
Agreement, to which each of them are entitled, as set forth in a writing
executed by both Harsimus and Columbia (the “Allocation Letter”) and which shall be furnished to Escrow
Agent, (ii) pay to the appropriate payees out of the proceeds of Closing
payable to Seller all costs and amounts to be paid by Seller at Closing
pursuant to the terms of this Agreement, and (iii) pay Purchaser’s Costs
to the appropriate payees at Closing pursuant to the terms of this Agreement. A
Closing Statement will be prepared by Seller and submitted to Purchaser in
accordance with the terms of Section 10.4.

 

ARTICLE IV

EARNEST MONEY DEPOSIT

AND ESCROW INSTRUCTIONS

 

Section
4.1             The Earnest Money Deposit and
Independent Contract Consideration.  Simultaneously with the execution and delivery of this Agreement
by Purchaser, Purchaser shall deposit with the Escrow Agent, by Federal Reserve
wire transfer of immediately available funds, the sum of Two Million and 00/100
Dollars ($2,000,000.00) as the earnest money deposit on account of the Purchase
Price (such amount, together with all interest accrued thereon, the “Earnest
Money Deposit”).

 

Section 4.2             Escrow
Instructions.  The
Earnest Money Deposit shall be held in escrow by the Escrow Agent in an
interest-bearing account, in accordance with the provisions of
Article XVI.  The Earnest Money
Deposit is non-refundable to Purchaser, except as otherwise expressly provided
in this Agreement.

 

Section 4.3             Designation
of Certifying Person.  In
order to assure compliance with the requirements of Section 6045 of
the Internal Revenue Code of 1986, as amended (the “Code”), and any
related reporting requirements of the Code, the parties hereto agree as
follows:

 

(a)           Provided
the Escrow Agent shall execute a statement in writing (in form and substance
reasonably acceptable to the parties hereunder) pursuant to which it agrees to
assume all responsibilities for information reporting required under Section
6045(e) of the Code, Seller and Purchaser shall designate the Escrow Agent
as the person to be responsible for all information reporting under Section
6045(e)of the Code (the “Certifying Person”).  If the

 

11

 

Escrow Agent refuses to execute a statement pursuant
to which it agrees to be the Certifying Person, Seller and Purchaser shall
agree to appoint another third party as the Certifying Person.

 

(b)           Seller
and Purchaser each hereby agree:

 

(i)            to
provide to the Certifying Person all information and certifications regarding
such party, as reasonably requested by the Certifying Person or otherwise
required to be provided by a party to the transaction described herein under Section 6045  of
the Code; and

 

(ii)           to
provide to the Certifying Person such party’s taxpayer identification number
and a statement (on Internal Revenue Service Form W-9 or an acceptable
substitute form, or on any other form the applicable current or future Code
sections and regulations might require and/or any form requested by the Certifying
Person), signed under penalties of perjury, stating that the taxpayer
identification number supplied by such party to the Certifying Person is
correct.

 

ARTICLE V

INSPECTION OF PROPERTY

 

Section 5.1             Completion
of Due Diligence. 
Anything to the contrary contained in this Agreement notwithstanding,
Purchaser acknowledges and agrees that it has completed all of its due
diligence with respect to the Property and Seller’s LLC Interests and Purchaser
has no right to terminate this Agreement by reason of any due diligence matters
(but this sentence shall not affect any other termination right of Purchaser
expressly provided herein). 
Notwithstanding the foregoing, Purchaser and its authorized agents,
partners, lenders, officers, employees, advisors, attorneys, accountants,
architects, engineers and other representatives (for purposes of this
Article V, the “Licensee Parties”) shall have the
right, subject to the provisions of this Article V, including, without
limitation, the provisions of Section 5.3, and the rights of Schwab and
its subtenants (Schwab and such subtenants are collectively referred to herein
as, the “Schwab Parties”),
to enter upon the Real Property at all reasonable times during normal business
hours to perform inspections and to otherwise evaluate the Property, including,
without limitation, physical testing and invasive sampling.  Purchaser will provide to Seller notice (for
purposes of this Section 5.1, an “Entry Notice”) of the intention of
Purchaser or the other Licensee Parties to enter the Real Property at least 24
hours prior to such intended entry and specify the intended purpose therefor
and the inspections and examinations contemplated to be made and with whom any
Licensee Party will communicate.  At
Seller’s option, Seller may be present for any such entry and inspection.  Purchaser shall not communicate with or
contact any of the Schwab Parties or any of the Authorities without the prior
written consent of Seller, which consent shall not be unreasonably withheld,
conditioned (other than to permit Seller or its representative to participate
in any meetings or calls between Schwab and Purchaser) or delayed.

 

12

 

Section 5.2             Document
Review.

 

(a)           Notwithstanding
that Purchaser has completed its due diligence review, Purchaser and the
Licensee Parties shall have the continuing right to review and inspect, at
Purchaser’s sole cost and expense, any and all of the following which, to the
extent the same are in Seller’s and/or the Property Owner’s possession or
control (collectively, the “Documents”): all final environmental,
engineering or consulting reports and studies of the Real Property that have
been prepared for Property Owner, and/or Seller, real estate tax bills (and all
agreement(s) relating to payments in lieu of real estate taxes), together with
assessments (special or otherwise), ad valorem and personal property tax bills,
covering the period of Property Owner’s ownership of the Property; the Schwab
Lease and related lease and sublease files; current operating statements; the
Licenses and Permits; the Leasing Commission Agreements; and such other
documents, files and items as Purchaser shall reasonably request, including,
without limitation, all documents relating to Seller’s LLC Interests.  Such inspections shall occur at a location
reasonably selected by Seller, which may be at the office of Seller, Seller’s
counsel, Property Owner’s property manager, at the Real Property or any of
them.  Unless otherwise expressly set
forth herein, Purchaser shall not have the right to review or inspect materials
not directly related to the leasing, maintenance, operation, ownership and/or
management of the Property, including, without limitation, all of Seller’s
and/or Property Owner’s internal memoranda, financial projections, budgets,
appraisals, proposals for work not actually undertaken, and other proprietary
and confidential information.

 

(b)           Purchaser
acknowledges that any and all of the Documents may be proprietary and
confidential in nature and have been provided to Purchaser solely to assist
Purchaser in evaluating the Property, obtaining financing for the transaction
contemplated herein and consummating the transactions contemplated herein.  Subject only to the provisions of
Article XII, Purchaser agrees not to disclose the contents of the
Documents or any of the provisions, terms or conditions contained therein, to
any party outside of Purchaser’s organization other than its attorneys,
partners or other investors, accountants, lenders and lenders’ advisors, title
agents, or any other Licensee Parties (collectively, the “Permitted Outside  Parties”).  Purchaser further agrees that within its
organization, or as to the Permitted Outside Parties, the Documents will be
disclosed and exhibited only to those persons within Purchaser’s organization
or to those Permitted Outside Parties who are responsible for evaluating the
Property, providing financing for the transaction contemplated herein and
consummating the transaction contemplated hereby or otherwise involved in
performing Purchaser’s obligations under this Agreement.  Purchaser further acknowledges that the
Documents and other information relating to the leasing arrangements between
Seller and the Schwab Parties are proprietary and confidential in nature.  Purchaser agrees not to divulge the contents
of such Documents and other information except in accordance with the
confidentiality standards set forth in this Section 5.2 and
Article XII.  In permitting
Purchaser and the Permitted Outside Parties to review the Documents and other
information to assist Purchaser, Seller and Property Owner have not waived any
privilege or claim of confidentiality with respect thereto, and no third party
benefits or relationships of any kind, either express or implied, have been
offered, intended or created by Seller and Property Owner, and any such claims
are expressly rejected by Seller and Property Owner and waived by Purchaser and
the Permitted Outside Parties, for

 

13

 

whom, by its execution of this Agreement, Purchaser is
acting as an agent for the Permitted Outside Parties with regard to such
waiver.

 

(c)           Purchaser
acknowledges that some of the Documents may have been prepared by third parties
and may have been prepared prior to Property Owner’s ownership of the Property.
PURCHASER
HEREBY ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY SET FORTH IN SECTIONS 8.1, 8.2 AND 8.3, SELLER OR
SELLER ENTITY HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATION OR WARRANTY
REGARDING THE TRUTH, ACCURACY OR COMPLETENESS OF THE DOCUMENTS OR THE SOURCES
THEREOF.  SELLER HAS
NOT UNDERTAKEN ANY INDEPENDENT INVESTIGATION AS TO THE TRUTH, ACCURACY OR
COMPLETENESS OF THE DOCUMENTS AND IS PROVIDING THE DOCUMENTS SOLELY AS AN
ACCOMMODATION TO PURCHASER.

 

Section 5.3             Entry and
Inspection Obligations; Termination of Agreement.

 

(a)           Purchaser
agrees that in entering upon and inspecting or examining the Property,
Purchaser and the other Licensee Parties will not: materially disturb any of
the Schwab Parties, or materially interfere with the use of the Property
pursuant to the Schwab Lease; materially interfere with the operation and
maintenance of the Real Property or Improvements; damage any part of the
Property or any personal property owned or held by any of the Schwab Parties,
or any other person or entity; injure or otherwise cause bodily harm to Seller,
Property Owner or any of the Schwab Parties, or to any of their respective
agents, guests, invitees, contractors and employees, or to any other person or
entity; permit any liens to attach to the Real Property by reason of the
exercise of Purchaser’s inspection rights under this Article V; or reveal
or disclose any information obtained concerning the Property and the Documents
to anyone outside Purchaser’s organization, except in accordance with the
confidentiality standards set forth in Section 5.2(b) and
Article XII.  Purchaser shall: (i)
maintain (or cause the appropriate Licensee Parties to maintain) comprehensive
general liability (occurrence) insurance on terms and in amounts reasonably
satisfactory to Seller and Workers’ Compensation insurance in statutory limits,
and if Purchaser or any Licensee Party performs any invasive physical testing
or invasive sampling in accordance with Section 5.1 of this Agreement,
errors and omissions insurance and contractor’s pollution liability insurance
on terms and in amounts acceptable to Seller, covering any accident or event
arising in connection with the presence of Purchaser or any other Licensee Party
on the Real Property or Improvements, and deliver evidence of insurance
verifying such coverage to Seller prior to entry upon the Real Property or
Improvements; (ii) promptly pay when due the costs of all entry and
inspections and examinations done with regard to the Property; (iii) cause
any inspection to be conducted in accordance with standards customarily
employed in the industry and in compliance with all Governmental Regulations
and the Existing Deed Notice (as such term is hereinafter defined); (iv) furnish
to Seller copies of any studies, reports or test results received by Purchaser
regarding the Property, promptly after such receipt, in connection with such
inspection; and (v) repair any damage to the Real Property and
Improvements caused by any inspection or examination by Purchaser or its
agents.  Notwithstanding the foregoing
or subsection (b) below to the contrary, Purchaser shall not be required to
restore nor to be liable for any damage to the Property

 

14

resulting from the
negligence or willful misconduct of Seller, AFE, PXURA, PXR, PXLA (or any of
their respective members, partners, officers, directors, employees, agents or
other authorized representatives) or any of the Schwab Parties.  In addition, Purchaser shall not be liable
to restore any damage to the Real Property or the Improvements to the extent
relating to existing conditions at the Property which are revealed by
Purchaser’s investigations permitted hereunder.

 

(b)           Except
as stated to the contrary in the last sentence of Section 5.3(a) above,
Purchaser hereby indemnifies, defends and holds Seller and Property Owner and
their respective partners, agents, directors, officers, employees, successors
and assigns (collectively, the “Seller Indemnified
Parties”) harmless from and against any and all liens, claims,
causes of action, damages, liabilities, demands, suits, and obligations to
third parties, together with all losses, penalties, costs and expenses relating
to any of the foregoing (including but not limited to court costs and
reasonable attorneys’ fees), arising out of any disclosure(s) of confidential
information in violation of the provisions of Section 5.2(b) and any
inspections, investigations, examinations, sampling or tests conducted by
Purchaser or any of the Licensee Parties, whether prior to or after the date
hereof, pursuant to the provisions of Article V of this Agreement.

 

(c)           Promptly
following the time that this Agreement is terminated for any reason, Purchaser
shall return to Seller all copies Purchaser has made of the Documents and all
copies of any studies, reports or test results regarding any part of the
Property obtained by Purchaser, before or after the execution of this
Agreement, in connection with Purchaser’s inspection of the Property
(collectively, “Purchaser’s Information”).  Purchaser’s Information shall not include
Purchaser’s internal memoranda, financial projections, budgets, appraisals or
other proprietary and confidential information.  Purchaser’s Information shall be delivered without any
representation or warranty, express or implied, as to the accuracy or
completeness (other than that Purchaser has returned all of the items it is
required to return) of Purchaser’s Information, or any other representation or
warranty; neither Seller nor any other person or party shall have any right to
rely on Purchaser’s Information nor shall Purchaser shall have any liability or
obligation with regard to Purchaser’s Information.

 

(d)           The
terms and provisions of Section 5.3(b) and Section 5.3(c) above
shall supercede, in its entirety, the terms and provisions of that certain
Right of Access Agreement dated November      , 2002
(the “Access Agreement“),
between AFE and iStar Financial Inc. (“iStar”),
and such agreement shall, from and after the date hereof, be of no further
force and effect and no obligations set forth therein shall survive the
Effective Date; provided, however, if iStar shall have incurred
any liability under the Access Agreement on account of any inspections,
investigations, examinations, sampling or tests conducted prior to the
Effective Date by iStar, Purchaser or any of the Licensee Parties, then any
liability of iStar under the Access Agreement shall survive the Effective Date
but the obligations with respect thereto shall be governed by the provisions of
this Agreement, and not by the provisions of the Access Agreement.

 

Section 5.4             Sale “As Is”.  THE TRANSACTION CONTEMPLATED BY THIS
AGREEMENT HAS BEEN NEGOTIATED BETWEEN SELLER AND PURCHASER. THIS AGREEMENT
REFLECTS THE MUTUAL AGREEMENT OF SELLER AND

 

15

 

PURCHASER,
AND PURCHASER HAS HAD AND HAS THE RIGHT TO CONDUCT ITS OWN INDEPENDENT
EXAMINATION OF THE PROPERTY AND SELLER’S LLC INTEREST.  OTHER THAN THE MATTERS REPRESENTED IN SECTIONS 8.1, 8.2 AND 8.3 HEREOF AND
ANY CLOSING CERTIFICATION OF SELLER AS TO THE TRUTH AND ACCURACY OF THE
REPRESENTATIONS AND WARRANTIES AS OF THE CLOSING DATE AND THE REPRESENTATIONS
IN SELLER’S (AND PROPERTY OWNER’S) TITLE AFFIDAVIT, NON-IMPUTATION ENDORSEMENT
AFFIDAVIT AND ALL OTHER CLOSING DOCUMENTS, BY WHICH ALL OF THE FOLLOWING
PROVISIONS OF THIS SECTION 5.4 ARE MODIFIED AND LIMITED AS IF SUCH
EXCEPTION WERE FULLY SET FORTH HEREIN IN EACH INSTANCE, PURCHASER HAS NOT
RELIED UPON AND WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY
REPRESENTATION OR WARRANTY OF SELLER OR ANY OF SELLER’S AGENTS OR
REPRESENTATIVES, AND PURCHASER HEREBY ACKNOWLEDGES THAT NO SUCH REPRESENTATIONS
OR WARRANTIES HAVE BEEN MADE.

 

SELLER SPECIFICALLY DISCLAIMS, AND NEITHER SELLER NOR ANY OF
SELLER’S AFFILIATES NOR ANY OTHER PERSON (INCLUDING, WITHOUT LIMITATION,
PROPERTY OWNER) IS MAKING, ANY REPRESENTATION, WARRANTY OR ASSURANCE WHATSOEVER
TO PURCHASER, AND NO WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER,
EITHER EXPRESS OR IMPLIED, ARE MADE BY SELLER OR ANY OF SELLER’S AFFILIATES OR
RELIED UPON BY PURCHASER WITH RESPECT TO THE STATUS OF TITLE TO OR THE
MAINTENANCE, REPAIR, CONDITION, DESIGN OR MARKETABILITY OF THE PROPERTY, OR ANY
PORTION THEREOF, INCLUDING BUT NOT LIMITED TO (a) ANY IMPLIED OR EXPRESS
WARRANTY OF MERCHANTABILITY, (b) ANY IMPLIED OR EXPRESS WARRANTY OF
FITNESS FOR A PARTICULAR PURPOSE, (c) ANY IMPLIED OR EXPRESS WARRANTY OF
CONFORMITY TO MODELS OR SAMPLES OF MATERIALS, (d) ANY RIGHTS OF PURCHASER
UNDER APPROPRIATE STATUTES TO CLAIM DIMINUTION OF CONSIDERATION, (e) ANY
CLAIM BY PURCHASER FOR DAMAGES BECAUSE OF DEFECTS, WHETHER KNOWN OR UNKNOWN,
WITH RESPECT TO THE IMPROVEMENTS OR THE PERSONAL PROPERTY, (f) THE
FINANCIAL CONDITION OR PROSPECTS OF THE PROPERTY OR THE PROPERTY OWNER AND
(g) THE COMPLIANCE OR LACK THEREOF OF THE REAL PROPERTY OR THE
IMPROVEMENTS WITH GOVERNMENTAL REGULATIONS, INCLUDING, WITHOUT LIMITATION, ANY
ENVIRONMENTAL LAWS, NOW EXISTING OR HEREINAFTER ENACTED OR PROMULGATED, IT
BEING THE EXPRESS INTENTION OF SELLER AND PURCHASER THAT, EXCEPT AS EXPRESSLY
SET FORTH IN THIS AGREEMENT, THE PROPERTY (THROUGH THE TRANSFER OF SELLER’S LLC
INTEREST) WILL BE CONVEYED AND TRANSFERRED TO PURCHASER IN ITS PRESENT CONDITION
AND STATE OF REPAIR, “AS IS” AND “WHERE IS,” WITH ALL FAULTS.  PURCHASER REPRESENTS THAT IT IS A
KNOWLEDGEABLE, EXPERIENCED AND SOPHISTICATED PURCHASER OF REAL ESTATE, AND THAT
IT IS RELYING

 

16

 

SOLELY ON ITS OWN EXPERTISE AND THAT
OF PURCHASER’S CONSULTANTS IN PURCHASING THE PROPERTY THROUGH THE TRANSFER OF
SELLER’S LLC INTEREST.  PURCHASER HAS
BEEN GIVEN A SUFFICIENT OPPORTUNITY PRIOR TO THE EFFECTIVE DATE TO CONDUCT AND
HAS CONDUCTED SUCH INSPECTIONS, INVESTIGATIONS AND OTHER INDEPENDENT
EXAMINATIONS OF THE PROPERTY, SELLER’S LLC INTEREST AND RELATED MATTERS AS
PURCHASER DEEMS NECESSARY, INCLUDING BUT NOT LIMITED TO THE PHYSICAL AND
ENVIRONMENTAL CONDITIONS THEREOF, AND WILL RELY UPON SAME AND NOT UPON ANY
STATEMENTS OF SELLER OR SELLER ENTITIES (EXCLUDING THE LIMITED MATTERS
REPRESENTED BY SELLER IN SECTIONS 8.1, 8.2 AND 8.3 HEREOF AND
ANY CLOSING CERTIFICATION OF SELLER AS TO THE TRUTH AND ACCURACY OF THE
REPRESENTATIONS AND WARRANTIES AS OF THE CLOSING DATE AND THE REPRESENTATIONS
IN SELLER’S (AND PROPERTY OWNER’S) TITLE AFFIDAVIT, NON-IMPUTATION ENDORSEMENT
AFFIDAVIT AND ALL OTHER CLOSING DOCUMENTS) NOR OF ANY OFFICER, DIRECTOR,
EMPLOYEE, AGENT OR ATTORNEY OF SELLER. PURCHASER ACKNOWLEDGES THAT ALL INFORMATION
OBTAINED BY PURCHASER WAS OBTAINED FROM A VARIETY OF SOURCES, AND SELLER WILL
NOT BE DEEMED TO HAVE REPRESENTED OR WARRANTED THE COMPLETENESS, TRUTH OR
ACCURACY OF ANY OF THE DOCUMENTS OR OTHER SUCH INFORMATION HERETOFORE OR
HEREAFTER FURNISHED TO PURCHASER. 
UPON CLOSING, SUBJECT TO THE EXPRESS PROVISIONS OF THIS AGREEMENT,
PURCHASER WILL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED
TO, ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED
BY PURCHASER’S INSPECTIONS AND INVESTIGATIONS. PURCHASER ACKNOWLEDGES AND AGREES THAT,
UPON CLOSING, SELLER WILL SELL AND CONVEY TO PURCHASER, AND PURCHASER WILL
ACCEPT THE PROPERTY THROUGH THE TRANSFER OF SELLER’S LLC INTEREST, “AS IS, WHERE
IS,” WITH ALL FAULTS. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT THERE
ARE NO ORAL AGREEMENTS, WARRANTIES OR REPRESENTATIONS COLLATERAL TO OR
AFFECTING SELLER’S LLC INTEREST OR THE PROPERTY BY SELLER, ANY AGENT OF SELLER
OR ANY THIRD PARTY.  SELLER IS NOT
LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS,
REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR SELLER’S LLC
INTEREST FURNISHED BY ANY REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT OR OTHER
PERSON, UNLESS THE SAME ARE SPECIFICALLY SET FORTH HEREIN. PURCHASER
ACKNOWLEDGES THAT THE PURCHASE PRICE REFLECTS THE “AS IS, WHERE
IS” NATURE OF THIS SALE AND ANY FAULTS, LIABILITIES, DEFECTS OR OTHER
ADVERSE MATTERS THAT MAY BE ASSOCIATED WITH THE PROPERTY AND SELLER’S LLC
INTEREST.  PURCHASER,
WITH PURCHASER’S COUNSEL, HAS FULLY REVIEWED THE DISCLAIMERS AND WAIVERS SET
FORTH IN THIS AGREEMENT AND UNDERSTANDS THEIR SIGNIFICANCE AND AGREES THAT THE
DISCLAIMERS AND OTHER

 

17

 

AGREEMENTS SET FORTH HEREIN ARE AN
INTEGRAL PART OF THIS AGREEMENT, AND THAT SELLER WOULD NOT HAVE AGREED TO SELL
SELLER’S LLC INTEREST TO PURCHASER FOR THE PURCHASE PRICE WITHOUT THE
DISCLAIMERS AND OTHER AGREEMENTS SET FORTH IN THIS AGREEMENT.

 

PURCHASER
AND PURCHASER’S AFFILIATES FURTHER COVENANT AND AGREE NOT TO SUE SELLER AND
SELLER’S AFFILIATES AND RELEASE SELLER AND SELLER’S AFFILIATES OF AND FROM AND
WAIVE ANY CLAIM OR CAUSE OF ACTION, INCLUDING, WITHOUT LIMITATION, ANY STRICT
LIABILITY CLAIM OR CAUSE OF ACTION, THAT PURCHASER OR PURCHASER’S AFFILIATES
MAY HAVE AGAINST SELLER OR SELLER’S AFFILIATES UNDER ANY ENVIRONMENTAL LAW, NOW
EXISTING OR HEREAFTER ENACTED OR PROMULGATED, RELATING TO ENVIRONMENTAL MATTERS
OR ENVIRONMENTAL CONDITIONS EXISTING AS OF THE CLOSING (WHETHER
KNOWN OR UNKNOWN) IN, ON, UNDER, ABOUT
OR MIGRATING FROM OR ONTO THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE
COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT, OR BY
VIRTUE OF ANY COMMON LAW RIGHT (NOW EXISTING OR HEREINAFTER CREATED) RELATED TO
ENVIRONMENTAL CONDITIONS OR ENVIRONMENTAL MATTERS IN, ON, UNDER, ABOUT OR
MIGRATING FROM OR ONTO THE REAL PROPERTY.  THE FOREGOING SENTENCE SHALL NOT RELIEVE (A)
SELLER OF ANY LIABILITY IT MAY HAVE WITH RESPECT TO ITS REPRESENTATION MADE IN SECTION 8.3(f)
OF THIS AGREEMENT, SUBJECT, HOWEVER, IN ALL RESPECTS, TO THE PROVISIONS SET
FORTH IN SECTION 8.5 HEREOF, AND (B) 8/9 TRANSFEREE OF ANY LIABILITY IT
MAY HAVE WITH RESPECT TO ANY ENVIRONMENTAL MATTER OR ENVIRONMENTAL CONDITION
IN, ON, UNDER, ABOUT, OR MIGRATING FROM, THE EXCLUDED REAL PROPERTY OR WITH
RESPECT TO THE ACTS OR OMISSIONS OF 8/9 TRANSFEREE AT THE EXCLUDED REAL
PROPERTY.

 

THE
TERMS AND CONDITIONS OF THIS SECTION 5.4 WILL EXPRESSLY SURVIVE THE
TERMINATION OF THIS AGREEMENT OR THE CLOSING, AS THE CASE MAY BE, AND, IF THE
CLOSING OCCURS, WILL NOT MERGE WITH THE PROVISIONS OF ANY CLOSING DOCUMENTS AND
ARE HEREBY DEEMED INCORPORATED INTO THE LLC ASSIGNMENT AND ASSUMPTION AS FULLY
AS IF SET FORTH AT LENGTH THEREIN.

 

NOTHING
IN THIS SECTION 5.4 SHALL NEGATE THE PRORATIONS UNDER SECTION 10.4.

 

Section 5.5             iStar
Financial Guaranty.  iStar is
executing this Agreement for the sole purpose of guaranteeing to the Seller
Indemnified Parties any and all liability of Purchaser under Section 5.3(b).  By its signature annexed to this Agreement,
iStar acknowledges that its guaranty is a guaranty of payment, and not of
collection.

 

18

 

ARTICLE VI

TITLE AND SURVEY MATTERS

 

Section 6.1             Survey.  Purchaser acknowledges receipt of the
Existing Survey.  Any modification,
update or re-certification of the Existing Survey shall be at Purchaser’s
election and sole cost and expense.  The
Existing Survey together with any re-certification thereof and/or update
Purchaser has elected to obtain, if any, is herein referred to as the “Survey” .

 

Section 6.2             Title
Report.

 

(a)           Purchaser
acknowledges receipt from the Title Company of a current title insurance report
for the Property (the “Title Report”),
together with copies of the title exceptions listed thereon.  All (i) exceptions to title set forth
in the Title Report and/or matters revealed by the Existing Survey,
(ii) matters which are the obligations of Schwab under the Schwab Lease,
(iii) documents and agreements contemplated by this Agreement to be
recorded against the Real Property on or prior to the Closing Date, including,
without limitation, the CREA, the CRA and the Updated Deed Notice, and
(iv) title exceptions caused or created (whether directly or indirectly)
by Purchaser or any Licensee Parties will be referred to herein as “Permitted
Exceptions.  In no event
shall any of the Permitted Exceptions constitute Title Defects (as hereinafter
defined).

 

(b)           All
taxes, water rates or charges, sewer rents and special assessments, plus interest
and penalties thereon, which on the Closing Date are due and payable and/or are
liens against the Real Property and which the Property Owner is obligated to
pay and discharge will be credited against the Purchase Price (subject to the
provision for apportionment of taxes, water rates and sewer rents herein
contained) and without the need for Purchaser to raise as a Title Defect.

 

(c)           If
on the Closing Date the Real Property shall be affected by any lien which,
pursuant to the provisions of this Agreement, is required to be discharged or
satisfied by Seller, Seller shall not be required to discharge or satisfy the
same of record provided the money necessary to satisfy the lien is retained by
the Title Company at Closing (with authority to pay in the event of enforcement
of such lien), and the Title Company either omits the lien as an exception from
the Title Policy or insures against collection thereof from or out of the Real
Property and/or the Improvements, and a credit is given to Purchaser for the recording
charges for a  satisfaction or discharge
of such lien.  Seller shall have no
obligation to remove any lien affecting the Real Property which is the
obligation of Schwab to remove pursuant to the provisions of the Schwab Lease.

 

(d)           No
franchise, transfer, inheritance, income, corporate or other tax open, levied
or imposed against Seller, the Property Owner or any former owner of the
Property, that may be a lien against the Property on the Closing Date, shall be
an objection to title if the Title Company insures against collection thereof
from or out of the Real Property and/or the Improvements, and provided further
that Seller deposits with the Title Company a sum reasonably sufficient to
secure a release of the Real Property and/or Improvements from the lien

 

19

 

thereof (with authority
to pay in the event of enforcement of such lien).  If a search of title discloses judgments, bankruptcies, or other
returns against other persons having names the same as or similar to that of
Seller or the Property Owner, Seller will deliver (or cause the Property Owner
to deliver) to the Title Company an affidavit stating that such judgments,
bankruptcies or other returns do not apply to Seller or the Property Owner, as
the case may be, and such search results shall not be deemed Title Defects.

 

(e)           Notwithstanding
anything to the contrary contained herein, except for Permitted Exceptions,
Seller shall be obligated to cure and/or satisfy or cause to be deleted as an
exception to title:  (x) any standard
exceptions (to the extent that the Title Company is willing to delete the same
based solely upon receipt of the Survey and a customary affidavit from Seller
or the Property Owner); (y) any of the following exceptions and encumbrances
to the title to the Property as may be disclosed by the Title Report, all of
which shall be referred to herein as “Monetary
Objections:  (i) any deed
of trust, mortgage, or other security title, assignment of leases, negative
pledge, financing statement or similar security instrument entered into by
Seller, the Property Owner or any of Seller’s Affiliates (including, without
limitation, PXR) and encumbering all or any portion of the Property (and
excluding any such instrument placed upon the Property against an interest of
any Schwab Party and which encumbers such Schwab Party’s interest therein);
(ii) mechanics liens affecting the Property and (iii) any other liens
affecting the Property which can be satisfied by the payment of a specific,
liquidated amount not to exceed Five Hundred Thousand and 00/100 Dollars
($500,000.00) in the aggregate.  To the
extent any Monetary Objection which Seller is obligated to remove has not been
removed at or prior to Closing, Purchaser shall be entitled to apply a portion
of the purchase proceeds reasonably necessary to effectuate such removal (or
withhold such portion as may be reasonably necessary to remove such Monetary
Objection) and Purchaser shall receive a credit against the Purchase Price for
any such amounts so applied or withheld. 
Notwithstanding the foregoing to the contrary, if on the Closing Date
there shall be security interests filed against the Property, such items shall
not be Monetary Objections if (A) the personal property covered by such security
interests are no longer in or on the Real Property and will not be conveyed as
part of the Personal Property hereunder, and the Title Company either omits the
lien or security interest as an exception from the Title Policy or insures
against collection thereof from all of the Real Property and improvements
erected thereon, or (B) such personal property is the property of any Schwab
Party and Seller executes and delivers an affidavit to such effect.  At Closing, Seller will deliver (or cause to
be delivered by Property Owner) such affidavits as reasonably required by the
Title Company to enable the Title Company to issue a non-imputation endorsement
to the Title Policy, which endorsement is at Purchaser’s sole cost and expense
and, without limiting the foregoing, any affidavits reasonably required by the
Title Company to omit any exception or provide affirmative insurance for any
mechanics’ liens in connection with the JMB Construction Contract and the JMB
Cooling Tower Contract.  In addition,
Columbia shall cause its affiliates to execute such affidavits and other
documentation reasonably required by Title Company with respect to the Retained
Interest in connection with the issuance of the Title Policy and the
endorsements thereto.

 

20

 

Section 6.3             Title Defect.

 

(a)           In
the event Seller receives any written objections to matters disclosed by an
update to the Title Report or an update to the Existing Survey (collectively
and individually, a “Title Defect”) within the time periods
required under Sections 6.3(b) below, Seller may elect (but shall
not be obligated) to attempt to remove, or cause to be removed at its expense,
any such Title Defect, and shall provide Purchaser with notice, within five (5)
Business Days of its receipt of any such objection, of its intention to cure or
not to cure any such Title Defect.  If
Seller elects to attempt to cure any Title Defect, the Scheduled Closing Date
may be extended by written notice from Seller to Purchaser at any time on or
prior to the Scheduled Closing Date, for a period up to but not to exceed sixty
(60) days in the aggregate (but in no event shall Seller have the right to
extend the Scheduled Closing Date beyond the Outside Closing Date), for the
purpose of such removal.  In the event
that (i) Seller elects not to attempt to cure any such Title Defect, or (ii)
Seller fails to cure any such Title Defect within the period elected by Seller
but not to exceed sixty (60) days in the aggregate (but in no event shall Seller
have the right to extend the Scheduled Closing Date beyond the Outside Closing
Date), Seller shall so advise Purchaser and Purchaser shall have the right to
terminate this Agreement and receive a refund of the Earnest Money Deposit, or
to waive such Title Defect and proceed to the Closing without any reduction or
abatement of the Purchase Price. 
Purchaser shall make such election within ten (10) days of receipt of
Seller’s notice.  If Purchaser elects to
proceed to the Closing, any Title Defects waived by Purchaser shall be deemed
Permitted Exceptions.  This provision is
subject in all respects to Seller’s obligations, and Purchaser’s rights, under Section
6.2(e).  In any such event of
termination, Purchaser shall promptly return Purchaser’s Information to Seller,
after which  neither party shall have
any further obligation to the other under this Agreement except for the
Termination Surviving Obligations.

 

(b)           Notwithstanding
the foregoing, in the event further updates are made to the Title Report or
Survey which reveal new matters which are not Permitted Exceptions and are not
shown on the previous version of the Title Report or Survey, Purchaser may give
Seller notice of any such new matters disclosed by such update which Purchaser
deems unacceptable.  Purchaser must
object in writing to any such new matters, if at all, before 5:00 p.m.
Eastern Standard Time on the fifth (5th) Business Day after receipt of any such
updated Title Report or Survey first disclosing said new matters.  In the event Purchaser so timely notices
Seller, such items shall be subject to the process for Title Defects set forth
above.  If Purchaser fails to timely
deliver such notice, all of such new matters shall be deemed Permitted
Exceptions.

 

ARTICLE VII

INTERIM OPERATING COVENANTS AND POST-CLOSING MATTERS

 

Section 7.1             Interim
Operating Covenants.

 

(a)           Operations.
From the Effective Date until Closing, Seller shall, and shall cause Property
Owner, to continue to operate, manage and maintain the Real Property, Ground
Lease, Sublease, Improvements and other Property in the ordinary course of its
business and substantially in accordance with its present practice, subject to
ordinary wear and tear and

 

21

 

damage caused by any Schwab Party and further subject
to Article XI of this Agreement. 
In addition, from the Effective Date until Closing, unless required by
any Authorities or Governmental Regulations, or the Schwab Lease, or in the
case of an emergency or on account of a casualty at the Property (in which case
the provisions of Section 11.1 of this Agreement shall apply), Seller
shall not, and shall cause Property Owner not to, make any capital expenditure
(or commitments therefor) at the Property (x) that aggregate in excess of
$500,000, and (y) the payment for which shall be the obligation of Property
Owner after the Closing.

 

(b)           Compliance with Governmental
Regulations/Waterfront Development Permit.

 

(i)            From the Effective
Date until Closing, Seller shall not, and shall cause Property Owner not to,
knowingly take any action that would result in a failure to comply in all
material respects with all Governmental Regulations applicable to the Property
Ground Lease, Sublease, Schwab Lease, Seller’s LLC Interest and with any
covenants, conditions, restrictions, encumbrances and other title exception
documents affecting the Property, it being understood and agreed that prior to
Closing, Seller will have the right to contest any such Governmental
Regulations and any such title exception documents.

 

(ii)           Purchaser
acknowledges that NJDEP has issued that certain Waterfront Development Permit,
issued July 1, 1999, as modified by Modification to Waterfront Development
Permit #0906-92-0005.4 (Modification file #0906-92-0005.5) dated as of December
5, 2000 (the “Waterfront Development
Permit”), a copy of which Purchaser has reviewed as part of the
Documents, which grants to AFE, and its successors and assigns, the right to
develop the Real Property, Plaza VIII and Plaza IX, in accordance with and pursuant
to the provisions thereof.  Purchaser
acknowledges that the Building fully utilizes the development rights
attributable to the Real Property, and that it is the intention of the parties
that all remaining development rights accruing under the Waterfront Development
Permit (as well as any other development rights accruing under all other of the
Documents) are not being transferred to Purchaser on the Closing Date, but are
instead being transferred to 8/9 Transferee as part of the Excluded Real Property.  In connection therewith, it is a condition
(the “Permit Condition”) to
Closing that either (x) the Waterfront Development Permit is bifurcated by
NJDEP prior to Closing such that after such bifurcation there shall be two
permits, one relating to Plaza X (the “Plaza
X Bifurcated Waterfront Permit”) and one relating to Plazas VIII
and IX (the “8/9 Bifurcated Waterfront
Permit”), which permits must also comply with the remaining
provisions of this Section 7.1(b)(ii), or (y) 8/9 Transferee, in
the 8/9 Transferee Guaranty (as hereinafter defined), (I) use commercially
reasonable efforts to obtain such bifurcation following the Closing,
(II) satisfy any obligations of Property Owner (as reconstituted on the
Closing Date with Purchaser as the indirect or direct owner thereof) (“Post-Transfer AFE”) following the
Closing under the Waterfront Development Permit until such time as the
Waterfront Development Permit is bifurcated in accordance with the provisions
of this Section 7.1(b)(ii), including, without limitation, the
completion of any traffic mitigation studies, but specifically excluding the
maintenance of the Waterfront Walkway located on the Real Property, which shall
from and after the Closing be maintained by Post-Transfer AFE at its sole cost
and expense.  If the Waterfront
Development Permit is not bifurcated and 8/9 Transferee is to guaranty the

 

22

 

foregoing obligations, then the form of the 8/9
Transferee Guaranty shall be modified (in form reasonably satisfactory to both
Purchaser and Seller) at Closing to reflect the addition of such guaranty, and
provided the 8/9 Transferee Guaranty is executed at Closing, then the Permit
Condition shall be deemed satisfied.  If
Seller and Purchaser are unable to reasonably agree upon the modifications to
the 8/9 Transferee Guaranty for the performance of 8/9 Transferee’s obligations
under this Section 7.1(b)(ii), then such failure shall merely constitute
the failure of a condition precedent to Purchaser’s obligation to close this
transaction and shall not be deemed a breach or default on the part of
Seller.  The provisions of the 8/9
Transferee Guaranty with respect to the Waterfront Development Permit shall
automatically terminate upon the final satisfaction of such obligations and
liabilities.  Seller will advise
Purchaser in advance of any meetings or discussions with any applicable agency
involved in the review of the bifurcation of the Waterfront Development Permit
and Purchaser shall have the right to participate in any such conversations or
meetings.  Purchaser and Post-Transfer
AFE have no obligation to seek or obtain the bifurcation of the Waterfront
Development Permit from and after the Closing. 
In order for the Plaza X Bifurcated Waterfront Permit to comply with the
provisions of this Section 7.1(b)(ii), it shall not contain any
obligation on the part of Post-Transfer AFE to undertake any traffic mitigation
program or impose any new obligations or liabilities on the part of
Post-Transfer AFE other than those that pertain to the Building and the Real
Property (unless Purchaser consents thereto, which consent shall not be
unreasonably withheld), it being acknowledged by Purchaser that the obligation
to maintain the Waterfront Walkway located on the Real Property is not a new
obligation or liability.

 

(c)           Service
Contracts.  From the
Effective Date until Closing, Seller shall not, and shall cause Property Owner
to not, amend, modify or renew any existing service contracts or enter into any
new service contracts unless (i) such amended, modified, renewed or new service
contract will expire on or prior to the Closing Date or is terminable on not
more than thirty (30) days notice without penalty or (ii) unless Purchaser
consents thereto in writing, which approval will not be unreasonably withheld,
conditioned or delayed.  In addition to
the foregoing, from the Effective Date until Closing, Seller shall provide
Purchaser with notice and copies of any such amendments, modifications or
renewals of any existing service contracts or any new service contracts.

 

(d)           Notices.
From the Effective Date until Closing, to the extent received by Property
Owner, Seller shall, and shall cause Property Owner to, promptly deliver to
Purchaser copies of written default notices, written notices of lawsuits,
arbitrations, administrative proceedings and other material hearings and
written notices of violations affecting the Ground Lease, the Sublease, the
Schwab Lease, Seller’s LLC Interest and/or the other Property.

 

(e)           Schwab
Lease, Sublease and Ground Lease.  (i) From the Effective Date until Closing,
Seller shall not, and shall cause Property Owner and PXR to not, amend, modify,
extend or terminate the Schwab Lease, the Sublease and the Ground Lease or
enter into any consent or other agreement with respect to the Schwab subleases
(except, in each instance, to the extent required pursuant to the terms of the
applicable document or to the extent that any such required consent sought by
Schwab pursuant to the provisions of any of the foregoing documents must be
given by PXLA prior to the then Scheduled Closing Date, in which case 

 

23

 

Seller shall consult with Purchaser and provide
Purchaser with copies of the relevant documentation prior to granting such
consent (but Seller shall have the right to grant or deny such consent in its
sole discretion)).  Seller hereby
expressly consents to Purchaser, at any time prior to or at Closing,
negotiating and entering into amendments and modifications to the Schwab Lease,
the Sublease and the Ground Lease and to enter into any other consents or other
agreements with respect to such leases so long as any such amendment,
modification, consent or other agreement is not effective unless and until the
Closing occurs, and Seller receives copies of any such amendments,
modifications, consents and other agreements promptly after Purchaser’s
execution thereof (but in all events prior to or at Closing).  Seller will reasonably cooperate in any
escrow arrangements in connection with any amendments and modifications to the
Schwab Lease negotiated by Purchaser in accordance with this Section 7.1(e)(i).  The amendment between Purchaser and Schwab
which is in escrow on the date hereof is called the “Existing Escrow Schwab
Amendment”.

 

(ii)           Attached
hereto as Schedule 7.1(e)(ii) is a true and correct itemization of
Operating Expenses for the partial Operating Years from the Commencement Date
(as such terms are defined in the Schwab Lease) through May 31, 2003.

 

(f)            Standstill.

 

(i)            From
the Effective Date until Closing, Seller
shall not (and Seller shall cause Property Owner not to):  (i) market Seller’s LLC Interest, the Ground
Lease, the Sublease, the Schwab Lease or the other Property for sale or
disposition to any other party, or sell, encumber, or grant any interest in or
to Seller’s LLC Interest, the Ground Lease, Sublease, Schwab Lease or the
Property, (ii) solicit, negotiate or accept offers or otherwise enter
into any binding or non-binding agreement for a purchase, financing or joint
venture involving the Property or any
interest therein with any other person or entity, and (iii) other
than Permitted Transfers, encumber, dispose of, sell, convey, assign or pledge
any interest in the Property or any tax abatement or other tax relief benefits
applicable to the Property, or any interest
therein or otherwise enter into any agreement, other than any Permitted
Exceptions, affecting or encumbering or agreeing to dispose of, sell, convey,
assign or pledge any interest in the Property, the Ground Lease, the Sublease,
the Schwab Lease or any interest therein,
which agreement would be consummated prior to or otherwise the survive the
Closing.  Notwithstanding the foregoing,
from and after the date that the Approvals shall have been obtained and after
the conveyance of the Excluded Real Property to 8/9 Transferee, Seller shall
have the right to record (x) an agreement which amends the Ground Lease in the
form annexed hereto as Exhibit 7.1(f)(i)-1
(the “Amendment to Ground Lease
) and (y) an agreement which amends the Sublease in the form annexed
hereto as Exhibit 7.1(f)(i)-2 (the
“Amendment to Sublease ;
the Amendment to Ground Lease and the Amendment to Sublease are collectively
referred to herein as the “Amended Leases
) in order to remove the Excluded Real Property from the scope of the Ground
Lease and the Sublease, and to remove the Ground Lease and the Sublease as
encumbrances upon the Excluded Real Property. 
Purchaser hereby consents to the recordation of the Amended Leases against
the Real Property, and acknowledges that the Amended Leases constitute
Permitted Exceptions.

 

24

 

(ii)           Seller
shall have the right to grant an easement for that portion of the Real
Property, more particularly described on Schedule
7.1(f)(ii) annexed hereto, to the
City (the “Dedication”).  Purchaser hereby consents to the Dedication
in the form annexed hereto as Exhibit
7.1(f)(ii) being recorded against the Real Property, and
acknowledges that the Dedication shall constitute a Permitted Exception.

 

(iii)          Purchaser agrees that (i) Harsimus (and its
Affiliates) shall have the right, at their sole cost and expense, to erect a
memorial upon the Real Property in the location and of a type more particularly
identified and described on Exhibit 7.1(f)(iii)
annexed hereto (the “Memorial”),
and (ii) the obligation to maintain the Memorial from and after the Closing
Date shall be as is set forth in the CREA.

 

(iv)          Purchaser
agrees that AFE shall have the right to, and shall, transfer all of its right,
title and interest in and to the Excluded Real Property to 8/9 Transferee.

 

(g)           Further
Encumbrances.  Except for
the Permitted Exceptions and as may otherwise be permitted pursuant to the
express provisions of this Agreement, Seller shall not (and Seller shall cause Property Owner and PXR to not) voluntarily
alter or encumber in any way Seller’s title to Seller’s LLC Interest and
Property Owner’s title to the Property or the Ground Lease or the Sublease or
the Schwab Lease after the Effective Date without the prior written consent of
Purchaser.  In addition to the
foregoing, from the Effective Date until Closing, Seller shall provide
Purchaser with notice and copies of any such alterations to or encumbrances on
Seller’s title to Seller’s LLC Interest and Property Owner’s title to the
Property or the Ground Lease or the Sublease or the Schwab Lease.

 

(h)           Updated
Deed Notice.  Purchaser
acknowledges that a Declaration of Environmental Restrictions, a copy of which
Purchaser has reviewed during its due diligence as part of the Documents, is
currently recorded in the title records of the Real Property (the “Existing Deed Notice”).  The Existing Deed Notice reflects that
contaminated historic fill exists at the Real Property, which must be contained
as provided in the Existing Deed Notice and which cannot be disturbed without
the prior consent of NJDEP.  Prior to
the commencement of the construction of the Building, AFE notified the NJDEP
that it intended to disturb the two feet of clean fill acting as an
“engineering control” (as that term is defined in Environmental Laws) over the
historic fill at the Real Property, in connection with its construction
activities.  AFE also sought the consent
of NJDEP to do so.  As a condition to
NJDEP’s consent to the construction activities and the disturbance of the
engineering control, AFE agreed to record an updated Deed Notice reflecting the
current site conditions after the construction activities have been completed
(the “Updated Deed Notice”).  In order to complete the foregoing, Seller
entered into a Memorandum of Agreement (“MOA”)
with the NJDEP (a copy of which has been delivered to Purchaser as part of the
Documents) in order to obtain its approval to record the Updated Deed Notice in
the title records of the Real Property and to request a termination of the
Existing Deed Notice and Seller recorded the Updated Deed Notice and
termination of Existing Deed Notice, in the title records of the Real Property
in accordance with N.J.S.A. 58:10B-13. 
Purchaser hereby consents to the Updated Deed Notice and termination of
Existing Deed Notice being recorded

 

25

 

against the Real Property, and acknowledges that the
Updated Deed Notice and termination of Existing Deed Notice constitutes a
Permitted Exception.

 

(i)            Approvals.  From and after the Effective Date, Seller
and Purchaser shall act in good faith and cooperate with each other in
connection with Seller’s efforts to timely obtain the Approvals, which shall
include, without limitation, executing documents, providing information as to
the direct and indirect beneficial interest holders in Purchaser, and providing
such other information as the applicable party may request.  The costs in connection with obtaining the
Approvals shall be borne in the manner more particularly set forth in Section
10.5 of this Agreement.  Purchaser
acknowledges that a Certificate of Substantial Completion will be recorded
against the Real Property and will constitute a Permitted Exception.  Seller will use good faith efforts to obtain
such additional consents from JCRA as Purchaser may reasonably request, but
such additional consents shall not be conditions to Purchaser’s obligation to
close hereunder.  Without Purchaser’s
prior written consent, Seller shall not, and shall cause the Property Owner not
to, (a) amend or modify the Financial Agreement, except as it may be amended by
the Amended Financial Agreement, or (b) negotiate, settle, compromise, or
consent or agree to any change in, the Total Project Cost (as defined in the
Financial Agreement) in any manner that directly or indirectly does or could
increase the Total Project Cost beyond $78,674,777.

 

(j)            CREA. 
At the Closing, Seller shall cause that certain cross reciprocal
easement agreement in the form annexed hereto as Exhibit 7.1(j) (“CREA”)
to be recorded against the Real Property, which will provide for, inter alia, pedestrian easements, view
corridors, certain parking rights, means of access, rights related to
stormwater runoff and access to utilities, all of which shall benefit and
burden the Real Property and the Excluded Real Property, as more particularly
described in the CREA.  Purchaser
acknowledges that the CREA will be recorded against the Real Property and
constitutes a Permitted Exception.  None
of Seller, Property Owner and 8/9 Transferee shall voluntarily cause to be
placed on the Excluded Real Property any encumbrance which would be superior to
the CREA.

 

(k)           Covenant and Restriction Agreement.  Purchaser acknowledges that a certain
Reciprocal Operation and Easement Agreement for the Harborside Financial
Center, dated as of December 4, 1995 (as amended, the “ROEA”) is currently recorded in the
title records of certain of the other parcels within the Harborside Financial
Center, and that Purchaser has reviewed the ROEA during its due diligence as
part of the Documents.  At the Closing,
Seller shall enter in an agreement, in the form annexed hereto as Exhibit 7.1(k) (the “CRA”), to be recorded against the Real
Property; it being understood that the CRA shall, inter alia, subject the Real Property to certain provisions
of the ROEA and, require the continued use of the name “Plaza X” and “the
Harborside Financial Center” at the Real Property.  Purchaser acknowledges that the CRA will be recorded against the
Real Property and constitutes a Permitted Exception.

 

(l)            Insurance.  From the Effective Date until Closing Seller shall, and shall
cause Property Owner and PXR to, maintain existing insurance policies with
respect to the Property (or replacements or renewals thereof) in full force and
effect.

 

26

 

 

(m)          Taxes. 
From the period beginning on the Effective Date until Closing, Seller
shall cause Property Owner and PXR to: 
(i) pay all real estate taxes and assessments which are due and payable
during such period (subject to proration); and (ii) pay all franchise taxes
(subject to proration) due and payable during such period for each of Seller,
Property Owner and PXR in all jurisdictions where such entity was formed or
where such entity is qualified to transact business.

 

(n)           Zoning.  Except as expressly provided in this Agreement, from the
Effective Date until Closing, Seller shall not, and shall cause Property Owner
and PXR not to, initiate any zoning reclassifications or variance order with
respect to the Property, impose or incur any restrictive covenant or execute a
subdivision plat or otherwise voluntarily affect the zoning and permitted uses
of the Property.

 

(o)           Walkway Easement.  At or prior to the Closing, Seller shall
cause that certain walkway easement, in the form annexed hereto as Exhibit 7.1(o) (the “Walkway Easement ), to be recorded
against the Real Property, which will provide for a thirty (30) foot-wide
pedestrian walkway easement traversing the waterfront portion of the Property
(the “Waterfront Walkway”)
for use by the general public which shall burden the Real Property, to be more
particularly described in the Walkway Easement.  Purchaser acknowledges that the Walkway Easement will be recorded
against the Real Property and constitutes a Permitted Exception.

 

Section 7.2             JMB Construction Contract and JMB Cooling Tower
Contract.  If at Closing,
all amounts required to be paid to JMB under the JMB Construction Contract and
JMB Cooling Tower Contract have not been paid and Seller has not received final
lien waivers from JMB with respect to such contracts and any subcontracts
entered into by JMB under the JMB Construction Contract and JMB Cooling Tower
Contract, Seller shall remain responsible for obtaining such final lien waivers
(but only to the extent that the statutory period for the applicable contractor
to file a lien has not expired) and for paying such remaining amounts and
Purchaser shall cooperate with Seller to accomplish the same.

 

Section 7.3             Schwab Lease.  From and after the Effective Date through and after Closing,
Seller and Property Owner (prior to giving effect to the transfers at Closing)
shall make all commercially reasonably efforts to cooperate with respect to
inquiries and information requests relating to audit rights of amounts included
in the Base Operating Year Expenses provided in the Schwab Lease.

 

Section 7.4             Excess Net Profits; Fines.  To the extent (i) the City audit of the
Property shall conclude that there are any excess net profits payable under the
Financial Agreement with respect to the operation of the Building and the
Property for any period prior to Closing or (ii) any fines are levied
against Property Owner by reason of Seller’s failure to perform any of its
obligations under the Financial Agreement or PECA for any period prior to
Closing, Seller shall be responsible for the payment in full of any such excess
net profits or fines, subject to (x) Seller’s right to contest the
conclusion of any such audit or the imposition of any such fines, as the case
may be, in the name of Property Owner, provided that Property Owner has been
apprised of such contest and Purchaser, at Purchaser’s expense, shall have the
right to participate

 

27

 

 

in such contest, and (y) Purchaser cooperating with
Seller as may be reasonably necessary in connection with such contest, and
Seller’s obligation to pay such excess net profits or fines shall only be to
the extent the conclusion of such audit or the imposition of such fines, as the
case may be, is final and non-appealable. 
From and after Closing, without Seller’s prior written consent,
Purchaser shall not, and shall cause the Property Owner not to, (a) amend or
modify the Financial Agreement or PECA in any manner that directly or
indirectly does or could increase the excess net profits or fines which Seller
is responsible for hereunder, or (b) negotiate, settle, compromise, or consent
or agree to any change in, the Financial Agreement or PECA in any manner that
directly or indirectly does or could increase the excess net profits or fines
which Seller is responsible for hereunder.

 

Section 7.5             OCIP. 
Purchaser shall pay to Seller any amounts actually received by Purchaser
or Property Owner from and after Closing under the OCIP, including any refunds
or savings thereunder.  Seller shall be
responsible for any payments which may be required to be made by Property Owner
under the OCIP after the Closing.

 

Section 7.6             EQR Release.  Seller shall use commercially reasonable efforts to obtain a
release of AFE from any further obligations under that certain Easement
Agreement dated March 21, 2001 by and among AFE, Cali Harborside (Fee) Associates
L.P. and EQR – Lincoln North Pier L.L.C.

 

ARTICLE VIII

REPRESENTATIONS AND WARRANTIES

 

Section 8.1             Harsimus Representations and Warranties.  Harsimus represents and warrants to
Purchaser the following:

 

(a)           Status.
Harsimus is a limited liability company, duly organized and validly existing
and in good standing under the laws of the State of New Jersey.

 

(b)           Authority.  The execution and delivery of this Agreement
and all other documents now or hereafter to be executed and delivered by
Harsimus pursuant to this Agreement (collectively, the “Harsimus Documents” ) and the
performance of Harsimus’ obligations hereunder and under the Harsimus Documents
have been duly authorized by all necessary action on the part of Harsimus, and
this Agreement constitutes, and the Harsimus Documents will constitute, the
legal, valid and binding obligation of Harsimus, enforceable in accordance with
their terms, subject to bankruptcy, reorganization and other similar laws
affecting the enforcement of creditors’ rights generally and except as may be
limited by general equitable principles. 
The person signing this Agreement on behalf of Harsimus has been duly
authorized to sign and deliver this Agreement on behalf thereof.

 

(c)           Non-Contravention.  The execution and delivery of this Agreement
and the Harsimus Documents by Harsimus and the consummation by Harsimus of the
transactions contemplated hereby will not (i) violate any judgment, order,
injunction, decree, regulation or ruling of any court or Authority having
jurisdiction over Harsimus, (ii) conflict with, result in a 

 

28

 

breach of, or constitute a default under the
organizational documents of Harsimus, (iii) violate any note or other evidence
of indebtedness, any mortgage, deed of trust or indenture to which Harsimus is
a party or by which it is bound, or (iv) provided the Approvals are
obtained, violate any lease or other material agreement  or instrument to which
Harsimus is a party or by which it is bound.

 

(d)           Consents.  Other than the receipt of the Approvals, no consent, waiver,
approval or authorization is required from any person or entity (that has not
already been obtained) in connection with the execution and delivery of this
Agreement and the Harsimus Documents by Harsimus or the performance by Harsimus
of the transactions contemplated hereby.

 

(e)           Suits and
Proceedings.  Except as
listed on Schedule 8.1(e), there are no legal actions, suits
or similar proceedings pending and served, or, to Harsimus’s Knowledge,
threatened in writing against Harsimus, which (i) are not adequately
covered by existing insurance and (ii) if adversely determined, would
materially and adversely affect the value of the Harsimus Interest or Harsimus’
ability to consummate the transactions contemplated hereby.

 

(f)            Bankruptcy.  Harsimus has not (A) commenced a
voluntary case, or had entered against it a petition, for relief under any
federal bankruptcy act or any similar petition, order or decree under any
federal or state law or statute relative to bankruptcy, insolvency or other
relief for debtors, (B) caused, suffered or consented to the appointment
of a receiver, trustee, administrator, conservator, liquidator or similar
official in any federal, state or foreign judicial or non-judicial proceeding,
to hold, administer and/or liquidate all or substantially all of its assets, or
(C) made an assignment for the benefit of creditors.

 

(g)           Non-Foreign
Entity.  Harsimus is not
a “foreign person” (within the meaning of Section 1445(f)(3) of the
Code).

 

(h)           Harsimus’ Interest. 
Harsimus has good title to the Harsimus Interest and has not
transferred, assigned, sold, conveyed, pledged, mortgaged, granted a security
interest in, or otherwise disposed of the Harsimus Interest or any portion
thereof or interest therein or granted any option to any person or entity to
acquire such interest.  The
Harsimus Interest is free and clear of all liens, encumbrances, liabilities,
claims, exceptions, covenants and restrictions of any kind or character,
including but not limited to, any security interests or, any restriction on
sale or assignment or granting of any option, right or agreement for the
purchase or acquisition of the same or any interest in the same.

 

The provisions of this Section 8.1 are subject
to the limitations on liability with respect to the representations, warranties
and covenants of Harsimus set forth in Section 8.5 of this Agreement.

 

Section 8.2             Columbia Representations and Warranties.  Columbia represents and warrants to
Purchaser the following:

 

(a)           Status.
Columbia is a limited liability company, duly organized and validly existing
and in good standing under the laws of the State of New Jersey.

 

29

 

(b)           Authority.  The execution and delivery of this Agreement
and all other documents now or hereafter to be executed and delivered by
Columbia pursuant to this Agreement (collectively, the “Columbia Documents”) and the
performance of Columbia’s obligations hereunder and under the Columbia
Documents have been duly authorized by all necessary action on the part of
Columbia, and this Agreement constitutes, and the Columbia Documents will
constitute, the legal, valid and binding obligation of Columbia, enforceable in
accordance with their terms, subject to bankruptcy, reorganization and other
similar laws affecting the enforcement of creditors’ rights generally and
except as may be limited by general equitable principles.  The person signing this Agreement on behalf
of Columbia has been duly authorized to sign and deliver this Agreement on
behalf thereof.

 

(c)           Non-Contravention.  The execution and delivery of this Agreement
and the Columbia Documents by Columbia and the consummation by Columbia of the
transactions contemplated hereby will not (i) violate any judgment, order,
injunction, decree, regulation or ruling of any court or Authority having
jurisdiction over Columbia, (ii) conflict with, result in a breach of, or
constitute a default under the organizational documents of Columbia, (iii)
violate any note or other evidence of indebtedness, any mortgage, deed of trust
or indenture to which Columbia is a party or by which it is bound, or
(iv) provided the Approvals are obtained, violate any lease or other
material agreement  or instrument to which Columbia is a party
or by which it is bound.

 

(d)           Consents.  Subject to receipt of the Approvals, no consent, waiver, approval
or authorization is required from any person or entity (that has not already
been obtained) in connection with the execution and delivery of this Agreement
and the Columbia Documents by Columbia or the performance by Columbia of the
transactions contemplated hereby

 

(e)           Suits and
Proceedings.  Except as
listed on Schedule 8.2(e), there are no legal actions, suits
or similar proceedings pending and served, or, to Columbia’s Knowledge,
threatened in writing against Columbia, which (i) are not adequately
covered by existing insurance and (ii) if adversely determined, would
materially and adversely affect the value of the Columbia Interest or Columbia’
ability to consummate the transactions contemplated hereby.

 

(f)            Bankruptcy.  Columbia has not (A) commenced a
voluntary case, or had entered against it a petition, for relief under any
federal bankruptcy act or any similar petition, order or decree under any federal
or state law or statute relative to bankruptcy, insolvency or other relief for
debtors, (B) caused, suffered or consented to the appointment of a
receiver, trustee, administrator, conservator, liquidator or similar official
in any federal, state or foreign judicial or non-judicial proceeding, to hold,
administer and/or liquidate all or substantially all of its assets, or
(C) made an assignment for the benefit of creditors.

 

(g)           Non-Foreign
Entity.  Columbia is not
a “foreign person” (within the meaning of Section 1445(f)(3) of the
Code).

 

(h)           Columbia Interest.  Columbia has good title to the Columbia
Interest and has not transferred, assigned, sold, conveyed, pledged, mortgaged,
granted a security interest in,

 

30

 

or otherwise disposed of the Columbia Interest or any
portion thereof or interest therein or granted any option to any person or
entity to acquire such interest.  The
Columbia Interest is free and clear of all liens, encumbrances, liabilities,
claims, exceptions, covenants and restrictions of any kind or character,
including but not limited to, any security interests or, any restriction on
sale or assignment or granting of any option, right or agreement for the
purchase or acquisition of the same or any interest in the same.

 

The provisions of
this Section 8.2 are subject to the limitations on liability with
respect to the representations, warranties and covenants of Columbia set forth
in Section 8.5 of this Agreement.

 

Section 8.3             Seller’s
Representations and Warranties. 
Seller represents and warrants to Purchaser the following:

 

(a)           Non-Contravention.  The consummation of the transactions
contemplated hereby will not, provided the Approvals are obtained, violate any
judgment, order, injunction, decree, regulation or ruling of any court or
Authority having jurisdiction over the Property, the Seller’s LLC Interests,
the Seller, the Property Owner or PXR.

 

(b)           Suits and
Proceedings/Insurance.

 

(i)            Except
as listed in Schedule 8.3(b)(i), there are no legal actions,
suits, arbitrations, administrative proceedings or similar proceedings pending
and served, or, to Seller’s Knowledge, threatened in writing against Property
Owner, PXR or the Property which (i) are not adequately covered by existing
insurance and (ii) if adversely determined, would materially and adversely
affect the value of the Property (or the continued operations thereof), any
rights to develop the Property or the PILOT, or Seller’s ability to consummate
the transactions contemplated hereby.

 

(ii)           Attached
hereto as Schedule 8.3(b)(ii)  (the “Schedule
of Insurance by Property Owner”) is a correct and complete list,
in all material respects, of the types and amounts of insurance coverage
maintained by the Property Owner and in force with respect to the Property,
Ground Lease or Sublease.  Property
Owner has not received any notice in writing from the companies issuing such
insurance which threatens to withdraw such coverage or requiring that any work
be performed to preserve such coverage. 
All premiums on existing insurance policies which are due and payable
prior to the Closing Date shall be paid.

 

(c)           Leases/Tenants.

 

(i)            As
of the Effective Date, the only tenant (excluding subtenants) at the Building
is Schwab.  Schedule 8.3(c)(i)-1 annexed
hereto is a true and complete schedule identifying the Schwab Lease and all
material guarantees, amendments and modifications thereto.  Schedule
8.3(c)(i)-2 annexed hereto is a
true and complete schedule identifying the Sublease and all material amendments
and modifications thereto, other than the Amendment to Sublease, which is not
reflected on said schedule.  Schedule 8.3(c)(i)-3
annexed hereto is a true and complete schedule identifying the Ground Lease and
all amendments and modifications thereto, other than the Amendment to Ground
Lease, which is not reflected on said schedule. 

 

31

 

The Documents made available to Purchaser pursuant to Section 5.2
hereof include true and correct copies of (i) the Schwab Lease (as described on
Schedule 8.3(c)(i)-1),
(ii) the Sublease (as described on Schedule
8.3(c)(i)-2),  and (iii) the Ground Lease (as described on Schedule 8.3(c)(i)-3).

 

(ii)           Except
as set forth on Schedule 8.3(c)(ii),
no written claim of material default (which remains uncured) under the Schwab
Lease has been given or received by any party thereto prior to the date hereof
and Seller has not received written notice from Schwab claiming any rights of
set-off or counterclaim under the Schwab Lease.

 

(iii)          To Seller’s
Knowledge, Schedule 8.3(c)(iii)
is a true and correct list, in all material respects, of subleases under the
Schwab Lease at the Building (collectively, the “Schwab Subleases”). 
To Seller’s Knowledge, the Documents made available to Purchaser
pursuant to Section 5.2 hereof include copies of all the Schwab
Subleases in Seller’s, AFE’s, PXURA’s, PXLA’s and PXR’s possession.

 

(d)           Contracts.  Schedule 8.3(d)(1) is a true and
correct list of all material written contracts and agreements (collectively, “Contracts” ), other than the Ground
Lease, Sublease and the Schwab Lease, which will be binding upon Purchaser
(whether directly or indirectly) and/or the Property after the Closing.  The Documents made available to Purchaser
pursuant to Section 5.2 hereof include copies of all of the
Contracts.  Except as set forth on Schedule 8.3(d)(2), no written claim of
a material default (which remains uncured) or rights of set-off or counterclaim
under the Contracts has been given or received by any party prior to the date
hereof. Schedule 8.3(d)(3)
sets forth the amount, if any, remaining to be paid under the JMB Contract and
the JMB Cooling Tower Contract. Schedule
8.3(d)(4) is a  true and
correct list of all Warranties delivered to Seller under the JMB Contract and
the JMB Cooling Tower Contract, excluding the warranties set forth in such
contracts. To Seller’s knowledge, each of the Warranties set forth on Schedule 8.3(d)(4) is in full force and
effect and, except as set forth on Schedule
8.3(d)(5), there are no rights of set-off or counterclaim under
any of such Warranties.

 

(e)           Legal
Compliance.  Neither
Seller nor Property Owner has received any written notices or citations of any
violations of any applicable local, state or federal law, municipal ordinance
or regulation, order, rule or requirement of any Federal, State or municipal
department or agency having jurisdiction over or affecting the Property or the
construction, management, ownership, maintenance, operation, use, improvement,
acquisition or sale thereof (including, without limitation, building, health
and environmental laws, regulations and ordinances) which would have a material
adverse effect on a Property as currently owned, occupied and operated.  Neither Seller nor Property Owner has received
any written notification from any governmental or public authority that the
Property is in violation of any applicable fire, health, building, use,
occupancy or zoning laws where such violation remains outstanding and, if
unaddressed, would have a material adverse effect on the use of the Property as
currently owned, occupied and operated.

 

(f)            Environmental.  Except as may be disclosed in any of the
environmental reports described on Schedule
8.3(f) (collectively, the “Environmental Reports ), copies of

 

32

 

which have been provided to Purchaser, (i) neither
Seller nor Property Owner has received any written notice of any violation of
any Environmental Law with respect to the Property, and (ii) neither Seller
nor Property Owner has asserted in writing that Schwab has caused any violation
of any Environmental Law with respect to the Property.  Seller has caused the Updated Deed Notice
and the termination of the Existing Deed Notice, in accordance with N.J.S.A.
58:10B-13, to be submitted for recording in the title records of the Real
Property in the official land records of the City or the County Recorder’s
Office of Hudson County, New Jersey.

 

(g)           Bankruptcy.  Neither Seller nor Property Owner has
(A) commenced a voluntary case, or had entered against it a petition, for
relief under any federal bankruptcy act or any similar petition, order or
decree under any federal or state law or statute relative to bankruptcy,
insolvency or other relief for debtors, (B) caused, suffered or consented
to the appointment of a receiver, trustee, administrator, conservator,
liquidator or similar official in any federal, state or foreign judicial or
non-judicial proceeding, to hold, administer and/or liquidate all or substantially
all of its assets, or (C) made an assignment for the benefit of creditors.

 

(h)           Financial Matters. 
Attached hereto as Exhibit 8.3(h)
are true, correct and complete copies, in all material respects, of the
Financial Statements.  The Financial
Statements present fairly in all material respects the financial position of
AFE (together with its consolidated subsidiaries) as of the date thereof in
accordance with GAAP.  As of the date of
the Financial Statements, there were no material liabilities, whether accrued,
contingent, absolute, determined, determinable or otherwise, of AFE (together
with its consolidated subsidiaries, including, without limitation, PXURA, PXLA
and PXR) required pursuant to GAAP to be reflected in the Financial Statements
or disclosed in the notes thereto which were not so reflected or
disclosed.  Since the date of the
Financial Statements, no material liabilities have been incurred by AFE
(together with its consolidated subsidiaries, including, without limitation,
PXURA, PXLA and PXR) which would be required to be reflected in a balance sheet
of AFE (together with its consolidated subsidiaries, including, without
limitation, PXURA, PXLA and PXR) prepared in accordance with GAAP, other than
liabilities incurred in the ordinary course of AFE’s (together with its
consolidated subsidiaries’, including, without limitation, PXURA, PXLA and PXR)
business consistent with past practice or as disclosed in the schedules and
liabilities.

 

(i)            Licenses and Permits. 
Schedule 8.3(i)
contains a complete and correct list of all material Licenses and Permits
issued by all applicable governmental authorities to the Property Owner with
respect to the ownership, management and operation of the Property.  The Documents made
available to Purchaser pursuant to Section 5.2 hereof include
copies of each License and Permit existing on the date hereof.  Neither Property Owner nor
PXR has not received written notice that any License and Permit has been or is
threatened to be revoked.  The
consummation of the transactions contemplated hereby shall not cause any
License and Permit to be terminated or revoked.  Seller has no knowledge of any continuing obligations which will
be binding upon the Property Owner under the Redevelopment Agreement other than
such obligations which are contained in the original Redevelopment Agreement
and the Amendments dated January 7, 1986, April 30, 1991, August 11, 1993,
January 28, 1997, June 10, 1997 and December 19, 2001.

 

33

 

(j)            Taxes.  None of PXLA, PXR, PXURA or AFE has filed an election under
Treasury Regulation Section 301.7701-3 to be classified other than as
provided in Treasury Regulation Section 301.7701-3(b).

 

(k)           Leasing
Commission Agreements. 
The Leasing Commission Agreements constitute all of the leasing
agreements to which Property Owner is a party and which affect the
Property.  The Documents made available
to Purchaser pursuant to Section 5.2 hereof include copies of all
Leasing Commission Agreements listed on Schedule
8.3(k).

 

(l)            Mortgage Liens.  As of the date hereof, there is no
outstanding mortgage lien affecting the Property.  Property Owner has not made any assignment, pledge or mortgage
of, or granted any security interest in, any portion of the Property.

 

(m)          Encumbrances.  None of AFE, PXR, PXURA and PXLA has entered into any written
contracts for the sale of the Property, Ground Lease, Sublease, PXLA’s interest
in the Schwab Lease or Seller’s LLC Interests which remain binding on any of
AFE, PXR, PXURA and PXLA and, other than provided in the Schwab Lease, none of
Columbia, Harsimus, AFE, PXR, PXURA and PXLA has granted, directly or
indirectly, any currently effective options to purchase the Property, Ground
Lease, Sublease or PXLA’s interest in the Schwab Lease.  Other than as set forth in the Schwab Lease,
no person, firm or entity has any rights to acquire an ownership interest in
the Property including, without limitation, any rights of first refusal, rights
of reverter or rights of first offer relating to the Property, Ground Lease,
Sublease or PXLA’s interest in the Schwab Lease.  Other than in favor of Seller, there are no options to purchase
or rights to acquire an ownership interest, including, without limitation, rights
of first refusal, rights of reverter or rights of first offer, with respect to
the Seller’s LLC interests.

 

(n)           Condemnation.  In the past two years, none of Seller, Property Owner or PXR has
received written notice of any pending or contemplated condemnation or eminent
domain proceedings affecting the Property, and to Seller’s Knowledge, there is
no:  (i) pending or contemplated
annexation or condemnation proceeding affecting, or which may affect, all or
any portion of the Property; or (ii) proposed change in road patterns or grades
which may adversely affect access to any roads providing a means of ingress to
or egress from the property.

 

(o)           Employees.  None of AFE, PXR, PXURA and PXLA has or has ever had any
employees.  None of AFE, PXR, PXURA and
PXLA is a participant in any pension or employee benefit plans subject to the
provisions of the Employee Retirement Security Act of 1974, as amended.  None of AFE, PXR, PXURA and PXLA has
officers or directors.  Each of AFE,
PXR, PXURA and PXLA is member-managed.

 

(p)           Development Rights.  None of AFE, PXR, PXURA and PXLA has sold,
leased, or otherwise encumbered any development rights and/or air rights
related to the Property, it being understood, however, that except as set forth
in the Plaza X Bifurcated Development Permit, as of the Closing Date there will
be no remaining development attributable to the Property and all development
rights under the Development Permit will be transferred on or prior to the
Closing Date to the Excluded Real Property in connection with the transfer of
the Excluded Real Property to 8/9 Transferee.

 

34

 

(q)           PILOT Matters.  Seller has delivered to Purchaser a true,
accurate and complete copy of the Financial Agreement, Contribution Agreement
and the Tax Exemption Application.  To
Seller’s knowledge, the Financial Agreement is in full force and effect.  PXURA has made all payments required to be
paid to date under the Financial Agreement and filed all reports in connection
therewith required to be filed to date. 
Neither Seller nor Property Owner has received any written notice that
it has failed to pay or perform any obligation on its part to be paid or
performed under the Financial Agreement (which remains uncured) or that it is
in default (which remains uncured) under the Financial Agreement.  To the best of Seller’s knowledge, all
representations and warranties of PXURA in the Tax Exemption Application are
true, complete and correct in all material respects.  AFE has paid all amounts required to be paid to date under the Contribution
Agreement and the City has not notified AFE in writing of any default with
regard to the Contribution Agreement or prepayment provision of the Financial
Agreement.  As of the date hereof, there
is no litigation or proceedings pending or, to Seller’s knowledge, threatened
in writing with respect to the Financial Agreement, the Contribution Agreement
or the Tax Exemption Application to which Property Owner or any Seller Entity
is a party.

 

(r)            Property Owner.  The statements contained
in the third, fourth, fifth and sixth Recitals to this Agreement are
incorporated in this Section 8.3(r) as representations and
warranties of Seller.  AFE owns its
interests in PXR free and clear of all liens, encumbrances, liabilities,
claims, covenants and restrictions of any 
kind or character, including but not limited to, any security interests
or, any restriction on sale or assignment or granting of any option, right or
agreement for the purchase or acquisition of the same or any interest in the
same and AFE has not transferred, assigned, sold, conveyed, pledged, mortgaged,
granted a security interest in, or otherwise disposed of any of such interests
or any portion thereof or interest therein or granted any option to any person
or entity to acquire any of such interests. 
PXR owns its interests in PXURA and PXLA free and clear of all liens,
encumbrances, liabilities, claims, covenants and restrictions of any kind or
character, including but not limited to, any security interests or, any
restriction on sale or assignment or granting of any option, right or agreement
for the purchase or acquisition of the same or any interest in the same, and
PXR has not transferred, assigned, sold, conveyed, pledged, mortgaged, granted
a security interest in, or otherwise disposed of any of such interest or any
portion thereof or interest therein or granted any option to any person or
entity to acquire any of such interest. 
Each of AFE, PXR, PXURA and PXLA is validly existing and in good standing
under the laws of the State of New Jersey.

 

The provisions of
this Section 8.3 are subject to the limitations on liability set forth
in Section 8.5 of this Agreement.

 

Section 8.4             Purchaser’s
Representations and Warranties. 
Purchaser represents and warrants to Seller the following:

 

(a)           Status.
Purchaser is a duly organized and validly existing limited liability company
under the laws of the State of Delaware.

 

35

 

(b)           Authority.  The execution and delivery of this Agreement
and all other documents now or hereafter to be executed and delivered by
Purchaser pursuant to this Agreement (collectively, the “Purchaser Documents” ) and the
performance of Purchaser’s obligations hereunder and under the Purchaser
Documents have been or will be duly authorized by all necessary action on the
part of Purchaser, and this Agreement constitutes, and the Purchaser Documents
will constitute, the legal, valid and binding obligation of Purchaser,
enforceable in accordance with their terms, subject to bankruptcy, reorganization
and other similar laws affecting the enforcement of creditors’ rights generally
and except as may be limited by general equitable principles.  The person signing this Agreement on behalf
of Purchaser has been duly authorized to sign and deliver this Agreement on
behalf thereof.

 

(c)           Non-Contravention.  The execution and delivery of this Agreement
and the Purchaser Documents by Purchaser and the consummation by Purchaser of
the transactions contemplated hereby will not (i) violate any judgment, order,
injunction, decree, regulation or ruling of any court or Authority having
jurisdiction over Purchaser, (ii) conflict with, result in a breach of, or
constitute a default under the organizational documents of Purchaser, (iii)
violate any note or other evidence of indebtedness, any mortgage, deed of trust
or indenture to which Purchaser is a party or by which it is bound, or (iv)
violate any material agreement  or instrument to which Purchaser is a
party or by which it is bound.

 

(d)           Consents.  No consent, waiver, approval or
authorization is required from any person or entity (that has not already been
obtained) in connection with the execution and delivery of this Agreement by
Purchaser or the performance by Purchaser of the transactions contemplated hereby.

 

Section 8.5             Survival
of Representations and Warranties.  The representations and warranties of Harsimus set forth in Section
8.1, of Columbia set forth in Section 8.2, of Seller set forth in Section 8.3(a)
and 8.3(r) and of Purchaser set forth in Section 8.4, shall
survive the Closing indefinitely and shall not be subject to the Representation
Basket (as hereinafter defined) and the Representation Cap (as hereinafter
defined) set forth below.  The
representations and warranties of Seller set forth in Sections 8.3(b)
through 8.3(q) will survive the Closing for a period of twelve (12)
months, after which time they will merge into the LLC Assignment and
Assumption.  Purchaser will not have any
right to bring any action against Harsimus, Columbia, or Seller as a result of
any untruth, inaccuracy or breach of any representations and warranties of
Harsimus, Columbia, or Seller, as the case may be, unless and until the
aggregate amount of all liability and losses arising out of all such untruths
exceeds One Hundred Thousand and 00/100 Dollars ($100,000.00)
(the “Representation Basket”);
and then only to the extent of such excess. 
In addition, in no event will Seller’s liability for all such breaches
exceed, in the aggregate, the sum of Ten Million 00/100 Dollars
($10,000,000.00) (the “Representation Cap”).  Notwithstanding anything contained herein to
the contrary, Harsimus shall be solely liable for a breach of the
representations and warranties set forth in Section 8.1, Columbia shall
be solely liable for a breach of the representations and warranties set forth
in Section 8.2, and Seller shall be solely liable for a breach of its
representations and warranties set forth in Section 8.3.  None of Harsimus, Columbia or Seller shall
have any liability with respect any representation, warranty and covenant
herein which may have been made by any of them,

 

36

 

 respectively,
if, prior to the Closing, Purchaser has actual knowledge of a breach of such
representation, warranty or covenant by such party and Purchaser nevertheless
consummates the transaction contemplated by this Agreement.  The Closing Surviving Obligations will
survive Closing without limitation unless a specified period is otherwise
provided in this Agreement.  All other
representations, warranties, covenants and agreements made or undertaken by
Harsimus, Columbia, or Seller under this Agreement, unless otherwise
specifically provided herein, will not survive the Closing Date but will be
merged into the LLC Assignment and Assumption and other Closing documents
delivered at the Closing.

 

Section 8.6             Updates
and Additional Representation/Warranty Matters.

 

(a)           At
the Closing, each Seller Entity and Seller shall deliver to Purchaser a
certificate (each, an “Update Certificate”)
updating any or all of the representations and warranties made by each such
party in this Agreement.  The updates
contained in the Update Certificate shall in no way affect Purchaser’s
obligations to close this transaction unless (x) any update reveals a breach on
the part of a Seller Entity or Seller under this Agreement, in which case
Purchaser may pursue its remedies set forth in Section 13.1(a) and (b)
of this Agreement, or (y) any update (or group of updates, in the aggregate)
has a material adverse effect upon the Property or Seller’s LLC Interests and
does not reveal a breach on the part of any of Seller or Seller Entity, in
which case Purchaser may either (i) close this transaction without any
adjustment in the Purchase Price, or (ii) terminate this Agreement upon written
notice to Seller, whereupon the Earnest Money Deposit shall be returned to
Purchaser and neither party hereto shall have any further rights under this
Agreement other than with respect to the Termination Surviving
Obligations.  Purchaser shall have no
ability to update its representations and warranties set forth in Section
8.4 at Closing, it being agreed that any modification to Purchaser’s
representations and warranties set forth in this Agreement shall have a material
adverse effect upon Purchaser’s ability and/or authority to consummate this
transaction.

 

(b)           Notwithstanding
anything in this Agreement to the contrary, including, without limitation, the
provisions of Sections 8.1(c) and (d), Sections 8.2(c) and
(d), Section 8.3(a), Section 9.1(j) and Section 9.2(g),
Purchaser hereby acknowledges that Harsimus, Columbia and Seller have not made,
and are not making, either individually or collectively, any representations or
warranties whatsoever in this Agreement as to whether or not the approval and
consent of the Municipal Council of the City is required in connection with the
consummation of the transactions contemplated by this Agreement.

 

ARTICLE IX

 

CONDITIONS
PRECEDENT TO CLOSING

 

Section 9.1             Conditions
Precedent to Obligation of Purchaser.  The obligation of
Purchaser to consummate the transaction hereunder shall be subject to the
fulfillment on or before the Scheduled Closing Date of all of the following
conditions, any or all of which may be waived by Purchaser in its sole
discretion:

 

37

 

(a)           Seller
shall have delivered to Escrow Agent all of the items required to be delivered
to Purchaser pursuant to the terms of this Agreement, including but not limited
to, those provided for in Section 10.3.

 

(b)           Subject
to the provisions of Section 8.6(a), all of the representations and
warranties of each Seller Entity and Seller contained in this Agreement shall
be true and correct in all material respects as of the Closing Date.

 

(c)           Seller
shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Seller as of the
Closing Date.

 

(d)           Schwab
shall not have commenced a voluntary case, or had entered against it a
petition, for relief under any federal bankruptcy act or any similar petition,
order or decree under any federal or state law or statute relative to
bankruptcy, insolvency or other relief for debtors, during the period from the
Effective Date to, and including, the Closing Date.

 

(e)           The
Amended Financial Agreement shall be in full force and effect.

 

(f)            No
temporary restraining order, preliminary or permanent injunction or other order
or decree issued by any court of competent jurisdiction or other legal
restraint or prohibition (collectively, “Legal
Restraints) that has the effect of preventing the consummation
of the transaction contemplated hereby shall be in effect.

 

(g)           The
CREA and the CRA shall have been recorded against the Real Property.

 

(h)           Title
to the Real Property and Improvements shall be in the condition required
pursuant to Article VI of this Agreement.

 

(i)            The
Excluded Real Property shall have been, or simultaneously with the Closing
shall be, conveyed to 8/9 Transferee.

 

(j)            The
Approvals shall have been obtained.

 

(k)           The
Permit Condition shall have been satisfied.

 

(l)            The
Retained Entity shall have contributed the Retained Interest to Purchaser
pursuant to the Retained Interest Assignments, and if required, Harsimus shall
have consented thereto.

 

(m)          Purchaser
shall have received an estoppel certificate executed by Schwab certifying as to
the items specified in the first sentence of Section 9.02 of the Schwab
Lease (the “Threshold Estoppel Certificate”).  Notwithstanding the foregoing, Seller agrees
to request an estoppel certificate from Schwab certifying as to the items
specified in the first sentence of Section 9.02 of the Schwab Lease and
such other items concerning the Schwab Lease as 

 

38

 

Purchaser may reasonably request (“Purchaser’s Proposed Estoppel Certificate”),
but it shall only be a condition to Closing that the Threshold Estoppel
Certificate be delivered on the Closing Date. 
Promptly following the parties’ agreement as to the form of the
Purchaser’s Proposed Estoppel Certificate, Seller will request that Schwab
execute Purchaser’s Proposed Estoppel Certificate and will otherwise reasonably
cooperate with Purchaser to facilitate Schwab’s execution of Purchaser’s
Proposed Estoppel Certificate including, without limitation, making
introductions and arranging meetings between Purchaser and Schwab, to the
extent reasonably requested by Purchaser (it being understood however, that in
connection with such cooperation Seller shall not be obligated to expend more
than a de minimis amount, nor
shall Seller be obligated to commence any litigation, arbitration or other
proceeding).  Seller shall not be in
default of its obligations hereunder if Tenant fails to deliver the Threshold
Estoppel Certificate, it being agreed that such failure shall merely constitute
the failure of a condition precedent to Purchaser’s obligation to close this
transaction.  Anything to the contrary
contained herein notwithstanding, Purchaser obtaining the Threshold Estoppel
Certificate shall only be a condition precedent to Purchaser’s obligations
hereunder if the Existing Escrow Schwab Amendment does not become effective on
the Closing Date pursuant to the terms of the escrow agreement between Schwab
and Purchaser.

 

(n)           The
Amended Leases shall have been, or simultaneously with the Closing shall be,
recorded against the Real Property.

 

(o)           The
receipt from the Planning Board of the City (the “Planning Board”) of a
modification of the resolution previously passed by the Planning Board which
authorized the subdivision of Plazas, 8, 9 and 10, which modification expressly
approves the deviations or grants a variance from the yard set-back
requirements for the West and South sides of the Building.

 

Section 9.2             Conditions
Precedent to Obligations of Seller.  The obligation of
Seller to consummate the transaction hereunder shall be subject to the
fulfillment on or before the Scheduled Closing Date of all of the following
conditions, any or all of which may be waived by Seller in it sole discretion:

 

(a)           Seller
shall have received the Purchase Price as adjusted pursuant to, and payable in
the manner provided in, this Agreement (including, without limitation, a credit
against the Purchase Price in the amount of the Earnest Money Deposit).

 

(b)           Purchaser
shall have delivered to Escrow Agent (to the extent directed by Seller to do
so) and/or Seller, as the case may be, all of the items required to be
delivered to Seller pursuant to the terms of this Agreement, including but not
limited to, those provided for in Section 10.2.

 

(c)           All
of the representations and warranties of Purchaser contained in this Agreement
shall be true and correct in all material respects as of the date of Closing.

 

39

 

(d)           Purchaser
shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Purchaser as of
the Closing Date.

 

(e)           On the
Closing Date, Purchaser shall cause PXLA (as reconstituted on the Closing Date
with Purchaser as the indirect owner thereof) to execute and deliver the
Property Management Agreement (as hereinafter defined).

 

(f)            The
CREA and the CRA shall have been recorded against the Real Property.

 

(g)           The
Approvals shall have been obtained.

 

(h)           No
Legal Restraint that has the effect of preventing the consummation of the
transaction contemplated hereby shall be in effect.

 

(i)            Intentionally
Omitted.

 

(j)            The
Retained Entity shall have contributed the Retained Interest to Purchaser
pursuant to the Retained Interest Assignments, and if required, Harsimus shall
have consented thereto.

 

(k)           MCRLP
and Columbia shall have been released by Schwab from all liability under all
guarantees related to the Schwab Lease and the Right of First Offer and
Expansion Agreements shall have been released by Schwab, all such releases of
guarantees and agreements being attached hereto as Exhibit 9.2(k) (collectively, the
“Schwab  Release Documents”).

 

(l)            The
payment to Harsimus of a termination payment of One Million Six Hundred
Thousand and 00/100 Dollars ($1,600,000) (the “Option Termination Payment”)
in consideration for the termination of Harsimus’ right to participate in the
option granted under the Option Agreement.

 

Section 9.3             Failure of Condition.  If, by the Scheduled Closing Date, any of
the conditions set forth in (i) Section 9.1 above are not performed or
satisfied for any reason whatsoever or, alternatively, are not expressly waived
by Purchaser in writing, then, except as 
expressly provided below, Purchaser’s sole remedy shall be to terminate
this Agreement, whereupon the Earnest Money Deposit shall be returned to
Purchaser and neither party hereto shall have any further rights under this
Agreement other than with respect to the Termination Surviving Obligations, and
(ii) Section 9.2 above are not performed or satisfied for any reason
whatsoever or, alternatively, are not expressly waived by Seller in writing,
then, except as expressly provided below, Seller’s sole remedy shall be to
terminate this Agreement, whereupon the Earnest Money Deposit shall be returned
to Purchaser and neither party hereto shall have any further rights under this
Agreement other than with respect to the Termination Surviving Obligations.  Notwithstanding the foregoing, (x) if any of
the conditions set forth in Section 9.1

 

40

 

are not performed or satisfied by the Scheduled
Closing Date by reason of a default by Seller under the other provisions of
this Agreement, then Purchaser shall be entitled to the remedies set forth in Section
13.1(a) below, and (y) if any of the conditions set forth in Section 9.2
are not performed or satisfied by the Scheduled Closing Date by reason of a
default by Purchaser under the other provisions of this Agreement, then Seller
shall be entitled to the remedies set forth in Section 13.2 below.

 

ARTICLE X

CLOSING

 

Section 10.1           Closing.  The consummation of the transaction
contemplated by this Agreement by delivery of documents and payments of money
shall take place at 1:00 p.m. Eastern Time on the Scheduled Closing Date at the
offices of Fried, Frank, Harris, Shriver & Jacobson, located at One New
York Plaza, New York, New York. 
Notwithstanding anything in this Agreement to the contrary, including,
without limitation, Seller’s right to adjourn the Scheduled Closing Date set
forth in Section 6.3(a), the Scheduled Closing Date shall be adjourned
to no later than November 15, 2003 (the “Outside Closing Date). 
If the Closing does not occur by the Outside Closing Date, this
Agreement shall automatically terminate and shall be of no further force and
effect, whereupon (x) the Earnest Money Deposit shall be returned to Purchaser,
unless the failure of the Closing to occur by the Outside Closing Date is due
to a default by either party, in which event the provisions of Article XIII
shall apply, and (y) neither party hereto shall have any further rights
under this Agreement other than with respect to the Termination Surviving
Obligations.  At Closing, the events set
forth in this Article X will occur, it being understood that the
performance or tender of performance of all matters set forth in this
Article X are mutually concurrent conditions which may be waived by the party
for whose benefit they are intended. 
The acceptance of the LLC Assignment and Assumption by Purchaser shall
be deemed to be full performance and discharge of each and every agreement and
obligation on the part of Seller to be performed hereunder, other than the
Closing Surviving Obligations.  The
acceptance of the Purchase Price by Seller shall be deemed to be full
performance and discharge of each and every agreement and obligation on the
part of the Purchaser to be performed hereunder, other than the Closing
Surviving Obligations.  The parties
agree to provide all of the documents required under Sections 10.2 and 10.3
to the Escrow Agent, in escrow, at least one day prior to the Scheduled Closing
Date.

 

Section 10.2           Purchaser’s
Closing Obligations.  On
the Scheduled Closing Date, Purchaser, at its sole cost and expense, will
deliver (or cause to be delivered) the following items to Seller at Closing as
provided herein (unless the delivery thereof shall have been waived in writing
by Seller):

 

(a)           the
Purchase Price, after all adjustments are made as herein provided (including,
without limitation, a credit against the Purchase Price in the amount of the
Earnest Money Deposit), by Federal Reserve wire transfer of immediately
available funds, in accordance with the timing and other requirements of Section 3.2;

 

41

 

(b)           documents
evidencing the authority of Purchaser to consummate the transactions
contemplated by this Agreement, including, without limitation, evidence that
the person executing the LLC Assignment and Assumption on behalf of Purchaser
has full right, power and authority to do so;

 

(c)           a
counterpart original of the LLC Assignment and Assumption, duly executed by
Purchaser;

 

(d)           written
notice executed by Purchaser and addressed and delivered to Schwab by Purchaser
in accordance with Section 10.6 herein, (i) acknowledging the
sale of Seller’s LLC Interest to Purchaser, (ii) indicating that rent
should thereafter be paid in accordance with the instructions set forth
therein, and (iii) providing a revised address for notice purposes under the
Schwab Lease (the “Tenant Notice Letter”), in the form
annexed hereto as Exhibit 10.2(d);

 

(e)           a
counterpart original of the Closing Statement, duly executed by Purchaser;

 

(f)            a
property management agreement in the form annexed hereto as Exhibit 10.2(f) (the “Property Management Agreement”),
executed by PXLA (as reconstituted on the Closing Date with Purchaser as the
indirect owner thereof), pursuant to which Mack-Cali Realty, L.P. (“MCRLP”) or its designee will be
retained as the management agent for the Property from and after the Closing;

 

(g)           a
certificate, dated as of the date of Closing, stating (i) that the
representations and warranties of Purchaser contained in Section 8.4
are true and correct in all material respects as of the Closing Date;

 

(h)           if
applicable, all transfer and other tax declarations and returns and information
returns as may be required by law in connection with the conveyance of Seller’s
LLC Interest to Purchaser, including, but not limited to, IRS Forms
(collectively, “Transfer Tax Forms”),
duly executed and sworn to by Purchaser;

 

(i)            evidence
of the authorization of the transactions contemplated hereby, including a
Secretary’s Certificate certifying to the formation and good standing (or
equivalent thereof) of Purchaser and proof of any required partner or member
consents or approvals, together with such evidence as the Title Company may
reasonably require as to the authority of the persons executing documents on
behalf of Purchaser;

 

(j)            a
counterpart original of the Retained Interest Assignment to Purchaser, duly
executed by Purchaser;

 

(k)           Fully-executed
counterpart originals of the Schwab Release Documents;

 

42

 

(l)            a
guaranty duly executed by Post-Transfer AFE in the form annexed hereto as Exhibit 10.2(l), pursuant to which
Post-Transfer AFE shall guaranty the Closing Surviving Obligations of Purchaser
(the “AFE Guaranty”);

 

(m)          an
Amended and Restated Limited Liability Company Agreement of Post-Transfer AFE
dated as of the Closing Date which agreement has been duly executed by
Purchaser (the “Reconstituted AFE
Agreement”);

 

(n)           an
agreement, duly executed by Purchaser (the “Option Agreement”), pursuant to which the Retained Entity
shall be granted the right to purchase Purchaser’s equity interests in Post
Transfer AFE upon the terms and conditions mutually satisfactory to the parties
thereto and more particularly set forth therein;

 

(o)           an
amended and restated limited liability company agreement for Purchaser, duly
executed by the iStar Harborside Member LLC or its affiliate, upon  terms and conditions mutually satisfactory
to the parties thereto (the “Purchaser LLC
Agreement”);

 

(p)           a
guaranty duly executed by iStar in the form annexed hereto as Exhibit 10.2(p) pursuant to which
iStar shall guaranty Purchaser’s obligations under Article XX.

 

(q)           the
Option Termination Payment shall be paid to Harsimus; and

 

(r)            such
other documents as may be reasonably necessary or appropriate to effect the
consummation of the transaction which is the subject of this Agreement.

 

Section 10.3           Seller’s
Closing Obligations.  On
the Scheduled Closing Date, Seller (and/or each of the Seller Entities, as the
case may be) will deliver (or cause Property Owner to deliver) to Purchaser the
following documents (unless the delivery thereof shall have been waived in
writing by Purchaser):

 

(a)           an
assignment and assumption of Seller’s LLC Interest in the form annexed hereto
as Exhibit 10.3(a) (the “LLC
Assignment and Assumption”), free and clear of liens and
encumbrances, duly executed by each of the Seller Entities, conveying to
Purchaser all of Seller’s LLC Interest;

 

(b)           the
Tenant Notice Letter, duly executed by PXLA;

 

(c)           (i)
evidence of the authorization of the transactions contemplated hereby
(including without limitation, the transfer of the Seller’s LLC Interests,
transfer of the Excluded Real Property to 8/9 Transferee, the Option
Agreement and Purchaser LLC Agreement), including without
limitation, Secretary’s or Member’s Certificates certifying to the
formation and good standing (or equivalent thereof) of each of the Seller
Entities, AFE, PXR, PXURA and PXLA (and Columbia’s affiliates with respect to
the Retained Interest Assignments, the Option Agreement and Purchaser LLC
Agreement), certifying and annexing all charter documents of all parties
controlling such entities and any and all partner, member or board
consents or approvals required by such charter documents, together with such
other evidence as the Title Company or Purchaser may reasonably require as to
the due authority of the persons executing documents on 

 

43

 

(d)           behalf
of the applicable entities to execute such documents; and (ii) evidence of the
authorization of the transactions contemplated hereby (including without
limitation, the transfer of the Seller’s LLC Interests, transfer of the
Excluded Real Property to 8/9 Transferee and the Option Agreement), including,
without limitation, Secretary’s or Member’s certificates certifying to the
formation and good standing (or equivalent thereof) of MCRLP and 8/9
Transferee, certifying and annexing all charter documents of all parties
controlling such entities and any and all partner, member or board
consents or approvals required by such charter documents, together with such
other evidence as the Purchaser may reasonably require as to the due authority
of the persons executing documents on behalf of the applicable entities to
execute such documents;

 

(e)           a
certificate in the form annexed hereto as Exhibit
10.3(d) (“Certificate as to Foreign Status”)
certifying that each of Seller and Retained Entity is not a “foreign person” as
defined in Section 1445 of the Code;

 

(f)            the
Personal Property and originals (or if not in Seller’s possession, copies) of
the: (v) Construction Agreements, (w) Financial Agreement and the Amended
Financial Agreement (together with all exhibits thereto), (x) Schwab Lease, (y)
Licenses and Permits, and (z) Leasing Commission Agreements, all of which
Licenses and Permits, Leasing Commission Agreements and Personal Property may
remain on site at the Property and need not be delivered to the location of the
Closing;

 

(g)           if
applicable, a counterpart original of the Transfer Tax Forms, duly executed and
sworn to by Seller;

 

(h)           a
counterpart original of the Closing Statement, duly executed by Seller;

 

(i)            copies
of any operating files maintained by Property Owner or its property manager in
connection with the development, leasing, maintenance, and/or management of the
Property, including, without limitation, plans, specifications, operating
agreements, bills, invoices, receipts, real estate tax records and information
and other general records relating to the income and expenses of the Property;

 

(j)            a
guaranty duly executed by 8/9 Transferee (the “8/9 Transferee Guaranty), in the form annexed hereto as Exhibit 10.3(i), pursuant to which 8/9
Transferee shall (in addition to other matters provided in Section
7.1(b)(ii) hereof) guaranty the obligations and liabilities of Seller which
are expressly set forth in (A) Section 8.5 of this Agreement, subject,
however, in all respects, to the provisions of said Section 8.5 of this
Agreement, (B) Article XV of this Agreement, subject, however, in all
respects, to the provisions of said Article XV, (C) Article XIX of this
Agreement, subject, however, in all respects, to the provisions of said Article
XIX, and (D) the Closing Surviving Obligations (collectively, the “8/9 Guaranty Provisions”);

 

(k)           a
guaranty duly executed by MCRLP in the form annexed hereto as Exhibit 10.3 (j), pursuant to which
MCRLP shall guaranty Seller’s obligations under Section 7.2 and
Article XX;

 

44

 

(l)            subject
to the provisions of Section 8.6(a), a certificate, dated as of the date
of Closing, stating that all of the representations and warranties of Seller
contained in this Agreement are true and correct in all material respects as of
the Closing Date;

 

(m)          evidence
reasonably satisfactory to Purchaser that 8/9 Transferee is the owner of the
Excluded Real Property on and as of the Closing;

 

(n)           Seller’s,
Property Owner’s or Retained Entity’s title affidavit and if not in the title
affidavit, Seller’s, Property Owner’s or Retained Entity’s affidavit required
in connection with the Non-Imputation Endorsement, all as reasonably required
by the Title Company and reasonably acceptable to each Seller Entity, Property
Owner and Retained Entity, as the case may be;

 

(o)           Intentionally
Omitted.

 

(p)           the
keys to the Building;

 

(q)           a
counterpart original of the Property Management Agreement, duly executed by
MCRLP or its designee;

 

(r)            a
counterpart original of the Option Agreement, duly executed by the Retained
Entity;

 

(s)           a
counterpart original of the Retained Interest Assignments duly executed by
Columbia and the Retained Entity, as applicable, together with Harsimus’
consent thereto if required;

 

(t)            a
counterpart original of the Purchaser LLC Agreement duly executed by the
Retained Entity;

 

(u)           counterpart
originals of the Schwab Release Documents executed by Seller or its affiliates
to the extent required;

 

(v)           the
Amended Leases shall have been, or simultaneously with the Closing shall be, recorded
against the Real Property; and

 

(w)          such
other documents as may be reasonably necessary or appropriate to effect the
consummation of the transaction which is the subject of this Agreement.

 

(x)            At
the Closing, Seller shall deliver to, and certify to, Purchaser a list of
Additional Charges (as such term is defined in the Schwab Lease), under Article
4 of the Schwab Lease (collectively, “Operating
Expenses”) billed to Schwab for the calendar year in which the
Closing occurs (both on a monthly basis and in the aggregate through the month
prior to the month in which the Closing occurs if the Closing occurs on or
after the fifteenth (15th) day of the month, and if the Closing
occurs prior to the fifteenth (15th) day of the month, through the
month that is two (2) months prior to the month in which the Closing occurs (i.e., if the Closing occurs

 

45

 

on November 10, 2003, through September 2003),
the monthly amounts being billed for Operating Expenses and the amounts
incurred by Seller on account of the components of Operating Expenses for such
portion of such calendar year.

 

Section 10.4           Prorations.

 

(a)           Seller
and Purchaser agree to adjust, as of 11:59 p.m. on the day preceding the
Closing Date (the “Proration Time”), the following
(collectively, the “Proration Items”):

 

(i)            Rentals,
in accordance with Section 10.4(b) below;

 

(ii)           utility
charges payable by Seller, AFE, PXURA, PXR, PXLA if any, including, without
limitation, electricity, water charges and sewer charges.  If there are meters on the Real Property,
Seller will cause readings of all said meters to be performed not more than
five (5) days prior to the Closing Date, and a per diem adjustment shall be
made for the days between the meter reading date and the Closing Date based on
the most recent meter reading;

 

(iii)          all real estate ad valorem and personal
property taxes, including, without limitation, all PILOT Payments (as such term
is defined in the Schwab Lease) sewer rents and charges and other state,
country, school district, municipal and other governmental and
quasi-governmental taxes and charges, due and payable by Seller, AFE, PXURA,
PXR, PXLA for the calendar year in which the Closing occurs;

 

(iv)          Purchaser’s
Share of the Contribution Amount (as hereinafter defined) and the PILOT Service
Charge (as hereinafter defined), in accordance with Section 10.4(e)
below;

 

(v)           charges
and payments under service contracts owed by Seller, AFE, PXURA, PXR, PXLA to
the extent that the charges and payment refer to periods including the Closing
Date; and

 

(vi)          such other
items of income and expense as are typically prorated at closing similar to the
transaction contemplated by this Agreement.

 

Seller will be charged
and credited for the amounts of all of the Proration Items relating to the
period up to and including the Proration Time, and Purchaser will be charged
and credited for the amounts of all of the Proration Items relating to the
period after the Proration Time.  The
estimated Closing prorations being adjusted pursuant to this Agreement shall be
set forth on a preliminary closing statement to be prepared by Seller and
submitted to Purchaser two (2) days prior to the Closing Date (the “Closing
Statement” ).  The
Closing Statement, once agreed upon, shall be signed by Purchaser and
Seller.  The prorations being adjusted
pursuant to this Agreement shall be paid at Closing by Purchaser to Seller (if
the prorations result in a net credit to Seller) or by Seller to Purchaser (if
the prorations result in a net credit to Purchaser) by increasing or reducing
the cash to be delivered by Purchaser in payment of the Purchase Price at the
Closing.  If the actual amounts of the
Proration Items are not known as of the Closing Date,

 

46

 

the prorations
will be made at Closing on the basis of the best evidence then available;
thereafter, when actual figures are received, re-prorations will be made on the
basis of the actual figures, and a final cash settlement will be made between
Seller and Purchaser.  No prorations
will be made in relation to insurance premiums, and Seller’s insurance policies
will not be assigned to Purchaser. 
Final readings and final billings for utilities will be made if possible
as of the Closing Date, in which event no proration will be made at the Closing
with respect to utility bills.  Seller
will be entitled to all deposits presently in effect with the utility
providers, and Purchaser will be obligated to make its own arrangements for any
deposits with the utility providers, but Seller will, if necessary, maintain
such deposits until such time as Purchaser can post its own deposits (but in no
event longer than thirty (30) days after Closing) so that such utility service
will not be discontinued to the Property. 
No later than September 30, 2005, Seller and Purchaser will jointly and
in good faith prepare a final closing statement reasonably satisfactory in form
and substance to Seller and Purchaser (the “Final Closing Statement) setting forth the final
determination of the adjustments and prorations provided for herein.

 

(b)           Purchaser
will receive a credit on the Closing Statement for the prorated amount (as of
the Proration Time) of all Rental previously paid to or collected by Seller and
attributable to any period following the Proration Time.  After the Closing, Seller will cause to be
paid or turned over to Purchaser all Rental, if any, received by Seller after
Closing and attributable to any period following the Proration Time.  “Rental”  as used herein means all Rent (as such term is defined in the
Schwab Lease) paid under the Schwab Lease. 
Rental is “Delinquent”  when it was due prior to the Closing Date, and payment thereof
has not been made on or before the Proration Time.  Delinquent Rental will not be prorated.  Purchaser agrees to use good faith collection procedures with
respect to the collection of any Delinquent Rental, but Purchaser will have no
liability for the failure to collect any such amounts and will not be required
to pursue legal action to enforce collection of any such amounts owed to Seller
by any tenant.  All sums collected by
Purchaser from and after Closing from Schwab will be applied first to current
amounts owed by Schwab to Purchaser and then to delinquencies owed by Schwab to
PXLA.  Any sums due Seller will be
promptly remitted to Seller.

 

(c)           With
respect to specific tenant billings for work orders, special items performed or
provided at the request of Schwab or other specific services, which are
collected by Purchaser after the Closing Date but relate to the foregoing
specific services rendered by Seller prior to the Proration Time, then
notwithstanding anything to the contrary contained herein, Purchaser shall
cause the first amounts collected from Schwab specifically for such special
services (as opposed to regular scheduled rental payments) to be paid to Seller
on account thereof, so long as Seller identifies same prior to Closing.

 

(d)           Seller
shall be liable and solely responsible for the payment of all of the leasing commissions
due and owing with respect to the initial term of the Schwab Lease (the “Initial Term Schwab Commissions”).  Purchaser shall be liable and solely
responsible for all leasing commissions payable under the Leasing Commission
Agreements or otherwise with respect to any renewals or extensions of the
Schwab Lease (the “Renewal Term Schwab
Commissions”), as well as, subject to the provisions of Section
18.2 of this Agreement, the Work Allowance and the Additional Work
Allowance (as such terms are defined in the Schwab

 

47

 

Lease) and all tenant improvement costs or other
expenditures due with respect to any amendments, renewals and/or extensions of
the Schwab Lease first arising, accruing and payable following the Closing
Date, as set forth in the Schwab Lease or in documents provided to Purchaser
prior to Closing and in any documents or pursuant to any agreements (whether
written or oral entered into after the Closing by Purchaser or Property Owner),
and all of the leasing commissions, tenant improvement costs and other
expenditures due and owing with respect to Schwab’s exercise of Schwab’s
Expansion Options.

 

(e)           Prior
to the Closing Date, Seller (or Property Owner) shall have pre-paid to the
applicable Authority the amount of One Million Five Hundred Seventy-Six
Thousand Four Hundred Nineteen and 00/100 Dollars ($1,576,419.00) (the “PILOT Service Charge)”  as and for the annual service charge
required to be paid in connection with the PILOT.  In addition, Purchaser hereby acknowledges that Property Owner
has entered into the Contribution Agreement and in connection therewith, the
amount of Three Hundred Ninety-Nine Thousand Seven Hundred and No/100
($399,700.00) (the “Contribution Amount”)
has been paid to the City.  Seller will
receive a credit on the Closing Statement (x) in an amount equal to fifty
percent (50%) of the Contribution Amount (“Purchaser’s
Share of the Contribution Amount”), and (y) in an amount
equal to the PILOT Service Charge less that amount of the PILOT Service Charge,
if any, which was amortized by Seller (and/or Property Owner) prior to the
Closing Date (it being understood that the PILOT Service Charge shall be
amortized on a straight-line basis commencing on the date of the first PILOT
Payment made under the Financial Agreement (excluding the PILOT Service Charge
for purposes of determining such first PILOT Payment)).

 

(f)            At
the Closing, Purchaser shall receive a credit against the Purchase Price in an
amount calculated in accordance with Schedule 10.4(f),
pro-rated for a partial month (the “Rent
Shortfall Credit”).

 

(g)           The
provisions of this Section 10.4 shall survive the Closing indefinitely.

 

Section 10.5           Costs of
Title Company and Closing Costs.  Costs of the Title Company and other Closing costs incurred in
connection with the Closing will be allocated as follows:

 

(a)           Seller
shall pay (i) all state or county documentary stamps on transfer taxes and
recording fees and changes necessary or required in connection with the LLC Assignment
and Assumption, if any; (ii) Seller’s attorney’s fees; (iii) one-half
(1/2) of escrow fees, if any; and (iv) any and all fees required to be paid to
the City and/or the Jersey City Redevelopment Authority in connection with
obtaining the Approvals from such party for this transaction, including any
fees required to be paid for its consent to the transaction contemplated by
this Agreement, if such consent is necessary, including any related fees
required by, or increases in the amounts payable under, the Financial Agreement
in order for the tax exemption to remain in full force and effect, including
any fees (or increases in amounts payable under the Financial Agreement)
required for obtaining the approval of the transaction contemplated by this Agreement
by means of the Ordinance.

 

(b)           Purchaser
shall pay (i) the cost of the premium for its Title Policy and customary
title searches, together with all costs of any additional coverage under its
Title Policy 

 

48

 

or endorsements (including, without limitation, the
Non-Imputation Endorsement) to its Title Policy that are desired by Purchaser;
(ii) all premiums and other costs for any mortgagee policy of title
insurance, if any, including but not limited to any endorsements or deletions;
(iii) Purchaser’s attorney’s fees; (iv) one-half (1/2) of escrow
fees, if any; and (v) the costs of the Survey, as provided for in Section 6.1.

 

(c)           The
provisions of this Section 10.5 shall survive the Closing indefinitely.

 

Section 10.6           Post-Closing
Delivery of Tenant Notice Letters.  Immediately following Closing, Purchaser will deliver to Schwab a
Tenant Notice Letter, as described in Section 10.2(d).  The provisions of this Section 10.6
shall survive the Closing indefinitely.

 

Section 10.7           Like-Kind
Exchange.  In
the event that either Seller shall elect to effectuate the Closing as a
“like-kind” exchange under Section 1031 of the Code, Purchaser agrees to
cooperate and assist such Seller in all reasonable respects (with no adjustment
to the Closing Date hereunder) in order that the exchange so qualifies as a
“like-kind” exchange under Section 1031 of the Code and the Treasury
Regulations promulgated, or to be promulgated, thereunder; provided, however,
that Seller shall reimburse Purchaser for any reasonable out-of-pocket
attorneys’ fees (other than incidental, de
minimis expenses and attorneys’ fees).

 

ARTICLE XI

 

CONDEMNATION
AND CASUALTY

 

Section 11.1           Casualty.  If, prior to the Scheduled Closing Date, all
or a Significant Portion of the Real Property and Improvements is destroyed or
damaged by fire or other casualty, Seller will notify Purchaser of such
casualty.  Purchaser will have the
option to terminate this Agreement upon notice to Seller given not later than
fifteen (15) days after receipt of Seller’s notice.  If this Agreement is terminated, the Earnest Money Deposit will
be returned to Purchaser and thereafter neither Seller nor Purchaser will have
any further rights or obligations to the other hereunder except with respect to
the Termination Surviving Obligations. 
If Purchaser does not elect to terminate this Agreement or less than a
Significant Portion of the Real Property and Improvements is destroyed or
damaged as aforesaid, neither Seller nor the Property Owner will be obligated
to repair such damage or destruction but (a) Seller will (or will cause
Property Owner to) (i) turn over to Purchaser the insurance proceeds net of
reasonable collection costs (or if such have not been awarded, all of its
right, title and interest therein) payable with respect to such fire or other
casualty and (ii) assign to AFE (as reconstituted on the Closing Date with
Purchaser as the direct or indirect owner therein), without any representation,
warranty or recourse whatsoever, all of Property Owner’s rights, if any, to any
payments to be made (after the Closing Date) with respect to the Property under
any applicable rental loss insurance policies in effect on the Closing Date,
and (b) the parties will proceed to Closing pursuant to the terms hereof
without abatement of the Purchase Price, except that Purchaser will receive
credit for any insurance deductible amount. 
In the event Seller or Property Owner elects to perform any repairs as a
result of a casualty prior to Closing, (i) the performance thereof shall be
subject, except in the case of emergency or to perform repairs required by
applicable law, to Purchaser’s consent, not to be unreasonably withheld,
conditioned or delayed, and (ii) Seller will

 

49

 

be entitled to deduct its costs and expenses from any
amount to which Purchaser is entitled under this Section 11.1,
which right shall survive the Closing. 
Neither Seller nor Property Owner will have any right to elect to
perform any repairs after the Closing.

 

Section 11.2           Condemnation
of Property.  In the
event of any condemnation or sale in lieu of condemnation of all or that
portion of the Property which entitles Schwab to terminate the Schwab Lease
pursuant to Section 10.04 thereof (a “Material Taking”), Purchaser will have the option, to be
exercised within fifteen (15) days after receipt of notice of such condemnation
or sale, of terminating Purchaser’s obligations under this Agreement, or
electing to have this Agreement remain in full force and effect.  In the event that either (i) any
condemnation or sale in lieu of condemnation of the Property is not a Material
Taking, or (ii) Purchaser does not terminate this Agreement pursuant to
the preceding sentence, Seller will (or will cause Property Owner to) turn over
to Purchaser any and all claims for the proceeds of such condemnation or sale
to the extent the same are applicable to the Property, and Purchaser will take
title to the Property subject to such condemnation and without reduction of the
Purchase Price.  Should Purchaser elect
to terminate Purchaser’s obligations under this Agreement under the provisions
of this Section 11.2, the Earnest Money Deposit will be returned to
Purchaser and neither Seller nor Purchaser will have any further obligation
under this Agreement, except for the Termination Surviving Obligations.  Purchaser hereby acknowledges and agrees
that the Dedication shall not constitute a Material Taking and Purchaser shall
have no rights whatsoever pursuant to the provisions of this Section 11.2
with respect to the Dedication.

 

ARTICLE XII

CONFIDENTIALITY

 

Section 12.1           Confidentiality.  Seller and Purchaser each expressly
acknowledge and agree that the transactions contemplated by this Agreement and
the terms and conditions concerning the same will be held in confidence by each
of them and will not be disclosed by either of them except to their respective
legal counsel, accountants, consultants, officers, partners, directors, and
shareholders and municipal officials with the City with whom Purchaser is
permitted to discuss the transaction contemplated herein, or as otherwise
permitted hereunder (including, without limitation, Section 5.2(b)), and
except and only to the extent that such disclosure may be necessary or
advisable for their respective performances hereunder.  Purchaser further acknowledges and agrees
that, unless and until the Closing occurs, all information obtained by
Purchaser in connection with the Property will not be disclosed by Purchaser to
any third persons (other than Licensee Parties) without the prior written
consent of Seller, unless such disclosure is required by law, rule or
regulation.   Nothing contained in this
Article XII will preclude or limit either party to this Agreement from disclosing
or accessing any information otherwise deemed confidential under this Article
XII or this Agreement in response to lawful process or subpoena or other valid
or enforceable order of a court of competent jurisdiction or any filings with
governmental authorities required by reason of the transactions provided for
herein pursuant to an opinion of counsel. In addition, prior to or as a part of
the Closing, any release to the public of information with respect to the sale
contemplated herein or any matters set forth in this Agreement will be made
only in the form approved by Purchaser and Seller and

 

50

 

their respective counsel, which approval shall not be
unreasonably withheld or delayed. 
Subject to preceding 2 sentences of this Section 12.1,
Seller and/or Seller’s Affiliates shall not name Purchaser, Purchaser’s
Affiliates, iStar or any iStar affiliates in any public statements or
governmental filings related to the transactions contemplated by this Agreement,
including, without limitation, press releases, brochures, marketing materials
or other written, oral, digital or electronic communications; provided,
however, in describing the transactions contemplated by this Agreement, Seller
and Seller’s Affiliates may refer to Purchaser, Purchaser’s Affiliates, iStar
or any iStar affiliates as an “institutional real estate buyer”.  Notwithstanding anything to the contrary
provided herein, in no event shall Seller and/or Seller’s Affiliates be liable
under this Section 12.1 for any disclosure of Purchaser’s, iStar’s or
any iStar affiliates’ involvement in the transactions contemplated by this
Agreement to the extent such involvement becomes public knowledge (and only to
the extent of such public knowledge) other than as a result of a disclosure by
Seller and/or Seller’s Affiliates.  The
provisions of this Article XII will survive the Closing or any termination of
this Agreement.  Nothing in this
Article XII will negate, supersede or otherwise affect the obligations of the
parties under the Confidentiality Agreement, and the provisions of this
Article XII will survive the termination of this Agreement, and in the
event of a conflict between the provisions of the Confidentiality Agreement and
this Agreement, the provisions of this Agreement  shall govern.

 

ARTICLE XIII

 

REMEDIES

 

Section 13.1           Default
by Seller.

 

(a)           In
the event the Closing and the transactions contemplated hereby do not occur as
herein provided by reason of any default of Seller under this Agreement, Purchaser
may, as Purchaser’s sole and exclusive remedy, elect by notice to Seller within
ten (10) Business Days following the Scheduled Closing Date, either of the
following:  (i) to terminate this
Agreement, in which event Purchaser will receive from the Escrow Agent the
Earnest Money Deposit, and thereafter Seller and Purchaser will have no further
rights or obligations under this Agreement, except with respect to the
Termination Surviving Obligations; or (ii) seek to enforce specific performance
of Seller’s obligation to execute the documents required to convey Seller’s LLC
Interest to Purchaser, it being understood and agreed that the remedy of
specific performance shall not be available to enforce any other obligation of
Seller hereunder.  Other than as expressly
set forth in Section 13.1(b) below, Purchaser expressly waives its
rights to seek damages in the event that the Closing does not occur by reason
of Seller’s default hereunder. 
Purchaser shall be deemed to have elected to terminate this Agreement and
receive back the Earnest Money Deposit if Purchaser fails to file suit for
specific performance against Seller in a court having jurisdiction in the
county and state in which the Property is located, on or before ninety (90)
days following the Scheduled Closing Date. 
Notwithstanding the foregoing as to the Termination Surviving
Obligations, nothing contained in this Section 13.1 will limit
Purchaser’s remedies at law, in equity or as herein provided in pursuing
remedies of a breach by Seller of any of the Termination Surviving
Obligations.  Purchaser specifically
waives its rights to seek any punitive, speculative, or consequential damages.

 

51

 

(b)           Notwithstanding
Section 13.1(a) above, if Purchaser terminates this Agreement by reason
of Seller’s bad faith, willful default under this Agreement, then, in addition
to the return of the Earnest Money Deposit, Purchaser shall be entitled to be
reimbursed for Purchaser’s actual out-of-pocket costs related to this
transaction, including, without limitation, reasonable attorneys’ and third
party fees and reasonable expenses and reasonable due diligence expenses with
respect to the purchase of the Property, the negotiation of this Agreement (and
ancillary agreements)  and obtaining the
Title Report and any survey of the Property.

 

Section 13.2           Default
by Purchaser.  In the
event the Closing and the consummation of the transactions contemplated herein
do not occur as provided herein by reason of any default of Purchaser,
Purchaser and Seller agree it would be impractical and extremely difficult to
fix the damages which Seller may suffer. 
In such event, Escrow Agent shall pay the Earnest Money Deposit to each
of Harsimus (or its designee) and Columbia (or its designee) by separate  Federal Reserve wire transfers of
immediately available funds to the account designated by each of them, the
portion of the Earnest Money Deposit to which each of them is entitled, as set
forth in a writing executed by Harsimus and Columbia and which shall be
furnished to Escrow Agent, and Purchaser and Seller hereby agree that
(a) an amount equal to the Earnest Money Deposit is a reasonable estimate
of the total net detriment Seller would suffer in the event Purchaser defaults
and fails to complete the purchase of the Property, and (b) such amount will be
the full, agreed and liquidated damages for Purchaser’s default and failure to
complete the purchase of Seller’s LLC Interest, and will be Seller’s sole and
exclusive remedy (whether at law or in equity) for any default of Purchaser
resulting in the failure of consummation of the Closing, whereupon this
Agreement will terminate and Seller and Purchaser will have no further rights
or obligations hereunder, except with respect to the Termination Surviving
Obligations.  The payment of such amount
as liquidated damages is not intended as a forfeiture or penalty but is
intended to constitute liquidated damages to Seller. Notwithstanding the
foregoing, as to the Termination Surviving Obligations, nothing contained
herein will limit Seller’s remedies at law, in equity or as herein provided in
the event of a breach by Purchaser of any of the Termination Surviving
Obligations.  Seller specifically waives
its rights to seek any punitive, speculative, or consequential damages.

 

ARTICLE XIV

 

NOTICES

 

Section 14.1           Notices.

 

(a)           All
notices or other communications required or permitted hereunder shall be in
writing, and shall be given by any nationally recognized overnight delivery
service (using the next business day delivery method) with proof of delivery,
or by facsimile transmission (provided that such facsimile is confirmed by the
sender by expedited delivery service in the manner previously described), sent
to the intended addressee at the address set forth below, or to such other
address or to the attention of such other person as the addressee will have
designated by written notice sent in accordance herewith. Unless changed in
accordance with the preceding sentence, the addresses for notices given pursuant
to this Agreement will be as follows:

 

52

 

	
  If to Purchaser:

  	
   

  	
  c/o iStar
  Financial Inc.

  	
   

  
	
   

  	
   

  	
  1114 Avenue of
  the Americas

  	
   

  
	
   

  	
   

  	
  New York, NY
  10036

  	
   

  
	
   

  	
   

  	
  Attn:  H. Cabot Lodge III, Executive Vice
  President

  	
   

  
	
   

  	
   

  	
  Nina B. Matis,
  Executive Vice President and General Counsel

  	
   

  
	
   

  	
   

  	
  (212) 930-9400
  (tele.)

  	
   

  
	
   

  	
   

  	
  (212) 930-9494
  (fax)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  with a copy to :

  	
   

  	
  Katten Muchin
  Zavis Rosenman

  	
   

  
	
   

  	
   

  	
  575 Madison
  Avenue

  	
   

  
	
   

  	
   

  	
  New York, New
  York 10022-2585

  	
   

  
	
   

  	
   

  	
  Attn:  Ellen L. Shapiro, Esq.

  	
   

  
	
   

  	
   

  	
  (212) 940-8800 (tele.)

  	
   

  
	
   

  	
   

  	
  (212) 940-8776
  (fax)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  If to Seller:

  	
   

  	
  c/o Mack-Cali
  Realty Corporation

  	
   

  
	
   

  	
   

  	
  11 Commerce
  Drive

  	
   

  
	
   

  	
   

  	
  Cranford, New
  Jersey  07016

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with separate
  notices to the attention of:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:  Mitchell E. Hersh

  	
   

  
	
   

  	
   

  	
  (908) 272-8000
  (tele.)

  	
   

  
	
   

  	
   

  	
  (908) 272-0214
  (fax)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:  Roger W. Thomas, Esq.

  	
   

  
	
   

  	
   

  	
  (908) 272-2612
  (tele.)

  	
   

  
	
   

  	
   

  	
  (908) 497-0485
  (fax)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Columbia
  Development Company, L.L.C.

  	
   

  
	
   

  	
   

  	
  c/o Panepinto
  Properties Inc.

  	
   

  
	
   

  	
   

  	
  30 Montgomery
  Street, 15th Floor

  	
   

  
	
   

  	
   

  	
  Jersey City, New
  Jersey 07302

  	
   

  
	
   

  	
   

  	
  Attn:  Joseph A. Panepinto

  	
   

  
	
   

  	
   

  	
  (201) 521-9000
  (tele.)

  	
   

  
	
   

  	
   

  	
  (201) 434-3218
  (fax)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Garden State
  Development Inc.

  	
   

  
	
   

  	
   

  	
  30 Montgomery
  Street, 15th Floor

  	
   

  
	
   

  	
   

  	
  Jersey City, New
  Jersey 07302

  	
   

  
	
   

  	
   

  	
  Attn:  Peter G. Mangin

  	
   

  
	
   

  	
   

  	
  (201) 521-9000
  (tele.)

  	
   

  
	
   

  	
   

  	
  (201) 434-3218
  (fax)

  	
   

  

 

53

 

	
   

  	
   

  	
  with a copy to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fried, Frank,
  Harris, Shriver & Jacobson

  	
   

  
	
   

  	
   

  	
  One New York
  Plaza

  	
   

  
	
   

  	
   

  	
  New York, New
  York 10004

  	
   

  
	
   

  	
   

  	
  Attn: Andrew
  Dady, Esq.

  	
   

  
	
   

  	
   

  	
  (212) 859-8161
  (tele.)

  	
   

  
	
   

  	
   

  	
  (212) 859-4000
  (fax)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Greenbaum, Rowe,
  Smith, Ravin, Davis & Himmel LLP

  	
   

  
	
   

  	
   

  	
  99 Wood Avenue
  South

  	
   

  
	
   

  	
   

  	
  Woodbridge, New
  Jersey 08830

  	
   

  
	
   

  	
   

  	
  Attn: Robert
  Greenbaum, Esq.

  	
   

  
	
   

  	
   

  	
  (732) 549-5600
  (tele.)

  	
   

  
	
   

  	
   

  	
  (732) 549-1881
  (fax)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  If to Escrow Agent:

  	
   

  	
  First American
  Title Insurance Company

  	
   

  
	
   

  	
   

  	
  633 Third Avenue

  	
   

  
	
   

  	
   

  	
  New York, New
  York 10017

  	
   

  
	
   

  	
   

  	
  Attn:  Anthony Ruggeri

  	
   

  
	
   

  	
   

  	
  (212) 922-9700
  (tele.)

  	
   

  
	
   

  	
   

  	
  (212) 922-0881
  (fax)

  	
   

  

 

(b)           Notices
given by (i) overnight delivery service as aforesaid shall be deemed
received and effective on the first Business Day following such dispatch and
(ii) facsimile transmission as aforesaid shall be deemed given at the time
and on the date of machine transmittal provided same is sent and confirmation
of receipt is received by the sender prior to 4:00 p.m. Eastern Standard Time
on a Business Day (if sent later, then notice shall be deemed given on the next
Business Day).  Notices may be given by
counsel for the parties described above, and such notices shall be deemed given
by said party, for all purposes hereunder.

 

ARTICLE XV

BROKERAGE

 

Section 15.1           Brokers.  Purchaser and Seller represent that they
have not dealt with any brokers, finders or salesmen, in connection with this
transaction, other than The Greenwich Group International LLC (the “Broker” ).  Purchaser and Seller shall each pay one half of any and all fees
and commissions payable to the Broker on account of this transaction up to a
maximum amount of five hundred thousand dollars ($500,000) each.  Purchaser and Seller agree to indemnify,
defend and hold each other harmless from and against any and all loss, cost,
damage, liability or expense, including reasonable attorneys’ fees, which
either party may sustain, incur or be exposed to by reason of any claim for
fees or commissions made through the

 

54

 

other party on account of any broker, finder or
salesman with whom they have dealt, including, with respect to Purchaser’s
indemnity in favor of Seller, any claims made by Broker against Seller with
respect to the transactions contemplated by this Agreement in excess of
$500,000.  The provisions of this
Article XV will survive any Closing or termination of this Agreement.

 

ARTICLE XVI

ESCROW AGENT

 

Section 16.1           Escrow.

 

(a)           Escrow
Agent will hold the Earnest Money Deposit in escrow in an interest-bearing
account of the type generally used by Escrow Agent for the holding of escrow
funds until the earlier of (i) the Closing, or (ii) the termination
of this Agreement in accordance with any right hereunder.  The Earnest Money Deposit shall be
non-refundable to Purchaser, except as otherwise set forth herein, and shall be
credited against the Purchase Price at the Closing.  All interest earned on the Earnest Money Deposit shall be paid to
the party entitled to the Earnest Money Deposit.  In the event the Closing occurs, the Earnest Money Deposit will
be released to Seller, and Purchaser shall receive a credit against the
Purchase Price in the amount of the Earnest Money Deposit.  In all other instances, Escrow Agent shall
not release the Earnest Money Deposit to either party until Escrow Agent has
been requested by Seller or Purchaser to release the Earnest Money Deposit as
follows: (i) if requested by Seller, then upon Seller’s written demand
therefore stating that Purchaser defaulted in the performance of Purchaser’s
obligations to close under this Agreement and the facts and circumstances
forming the basis of such default and (ii) if requested by Purchaser, then upon
Purchaser’s written demand therefore, stating that Seller defaulted in the
performance of Seller’s obligations to close under this Agreement and the facts
and circumstances forming the basis of such default; provided, that, in neither
case shall Escrow Agent release the Earnest Money Deposit until five (5)
Business Days following Escrow Agent’s delivery of such written demand to the
non-requesting party; provided, further, that if during such five (5) Business
Days period, the non-requesting party shall have delivered to Escrow Agent a
written dispute to the release of the Earnest Money Deposit, Escrow Agent shall
not release the Earnest Money Deposit unless it receives further written
direction signed by Seller and Purchaser. 
If no written dispute is so delivered, Escrow Agent shall disburse the
Earnest Money Deposit as directed. 
Purchaser represents that its tax identification number, for purposes of
reporting the interest earnings, is 03-0493637.  Harsimus represents that its tax identification number, for
purposes of reporting the interest earnings, is 22-3666122, and Columbia represents that its tax identification
number, for purposes of reporting interest earnings, is 22-3571776.

 

(b)           Escrow
Agent shall not be liable to any party for any act or omission, except for bad
faith, gross negligence or willful misconduct, and the parties agree to
indemnify Escrow Agent and hold Escrow Agent harmless from any and all claims,
damages, losses or expenses arising in connection herewith.  The parties acknowledge that Escrow Agent is
acting solely as stakeholder for their mutual convenience.  In the event Escrow Agent receives written notice
of a dispute between the parties with respect to the Earnest Money Deposit (the

 

55

 

“Escrowed Funds”), Escrow Agent shall
not be bound to release and deliver the Escrowed Funds to either party but may
either (i) continue to hold the Escrowed Funds until otherwise directed in
a writing signed by all parties hereto or (ii) deposit the Escrowed Funds
with the clerk of any court of competent jurisdiction.  Upon such deposit, Escrow Agent will be
released from all duties and responsibilities hereunder.  Escrow Agent shall have the right to consult
with separate counsel of its own choosing (if it deems such consultation
advisable) and shall not be liable for any action taken, suffered or omitted by
it in accordance with the advice of such counsel.

 

(c)           Escrow
Agent shall not be required to defend any legal proceeding which may be
instituted against it with respect to the Escrowed Funds, the Property or the
subject matter of this Agreement unless requested to do so by Purchaser or
Seller and is indemnified to its satisfaction against the cost and expense of
such defense.  Escrow Agent shall not be
required to institute legal proceedings of any kind and shall have no
responsibility for the genuineness or validity of any document or other item
deposited with it or the collectibility of any check delivered in connection
with this Agreement.  Escrow Agent shall
be fully protected in acting in accordance with any written instructions given
to it hereunder and believed by it to have been signed by the proper parties.

 

ARTICLE XVII

MISCELLANEOUS

 

Section 17.1           Waivers.  No waiver of any breach of any covenant or
provisions contained herein will be deemed a waiver of any preceding or
succeeding breach thereof, or of any other covenant or provision contained
herein.  No extension of time for
performance of any obligation or act will be deemed an extension of the time
for performance of any other obligation or act.

 

Section 17.2           TIME OF
THE ESSENCE.  TIME IS OF
THE ESSENCE WITH RESPECT TO ALL TIME PERIODS AND DATES FOR PERFORMANCE SET
FORTH IN THIS AGREEMENT.

 

Section 17.3           Recovery
of Certain Fees.  In the
event a party hereto files any action or suit against another party hereto by
reason of any breach of any of the covenants, agreements or provisions
contained in this Agreement, then in that event the prevailing party will be
entitled to have and recover certain fees from the other party including all
reasonable attorneys’  fees and costs resulting therefrom. For
purposes of this Agreement, the term “attorneys’ fees” or “attorneys’ fees and
costs” shall mean the fees and expenses of counsel to the parties hereto, which
may include printing, photocopying, duplicating and other expenses, air freight
charges, and fees billed for law clerks, paralegals and other persons not
admitted to the bar but performing services under the supervision of an
attorney, and the costs and fees incurred in connection with the enforcement or
collection of any judgment obtained in any such proceeding.  The provisions of this Section 17.3
shall survive the entry of any judgment, and shall not merge, or be deemed to
have merged, into any judgment.

 

56

 

Section 17.4           Construction.  Headings at the beginning of each
Article and Section are solely for the convenience of the parties and
are not a part of this Agreement. 
Whenever required by the context of this Agreement, the singular will
include the plural and the masculine will include the feminine and vice
versa.  This Agreement will not be
construed as if it had been prepared by one of the parties, but rather as if
both parties had prepared the same.  All
exhibits and schedules referred to in this Agreement are attached and
incorporated by this reference, and any capitalized term used in any exhibit or
schedule which is not defined in such exhibit or schedule will have the meaning
attributable to such term in the body of this Agreement.  In the event the date on which Purchaser or
Seller is required to take any action under the terms of this Agreement is not
a Business Day, the action will be taken on the next succeeding Business Day.

 

Section 17.5           Counterparts.  This Agreement may be executed in multiple
counterparts, each of which, when assembled to include an original signature
for each party contemplated to sign this Agreement, will constitute a complete
and fully executed original.  All such
fully executed original counterparts will collectively constitute a single
agreement.

 

Section 17.6           Severability.  If any term or other provision of this
Agreement is invalid, illegal, or incapable of being enforced by any rule of
law or public policy, all of the other conditions and provisions of this
Agreement will nevertheless remain in full force and effect, so long as the
economic or legal substance of the transactions contemplated hereby is not
affected in any adverse manner to either party.  Upon such determination that any term or other provision is
invalid, illegal, or incapable of being enforced, the parties hereto will
negotiate in good faith to modify this Agreement so as to reflect the original
intent of the parties as closely as possible in an acceptable manner to the end
that the transactions contemplated hereby are fulfilled to the extent possible.

 

Section 17.7           Entire
Agreement.  This
Agreement is the final expression of, and contains the entire agreement
between, the parties with respect to the subject matter hereof, and supersedes
all prior understandings with respect thereto. 
This Agreement may not be modified, changed, supplemented or terminated,
nor may any obligations hereunder be waived, except by written instrument,
signed by the party to be charged or by its agent duly authorized in writing,
or as otherwise expressly permitted herein.

 

Section 17.8           Governing
Law.  THIS AGREEMENT WILL
BE CONSTRUED, PERFORMED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW JERSEY.  SELLER AND PURCHASER
HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT
SITTING IN THE STATE OF NEW JERSEY IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT AND HEREBY IRREVOCABLY AGREE THAT ALL CLAIMS IN
RESPECT OF SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN A STATE
OR FEDERAL COURT SITTING IN THE STATE OF NEW JERSEY.

 

Section 17.9           No
Recording.  Except to the
extent the Title Company requires a notice of the settlement to be recorded at
Closing against the Real Property, the parties hereto agree that neither this
Agreement nor any affidavit or memorandum concerning it will be recorded and

 

57

 

unless so required by the Title Company, any recording
of this Agreement or any such affidavit or memorandum by Purchaser will be
deemed a default by Purchaser hereunder.

 

Section 17.10         Further
Actions.  The parties
agree to execute such instructions to the Title Company and such other
instruments and to do such further acts as may be reasonably necessary to carry
out the provisions of this Agreement.

 

Section 17.11         No
Partnership. 
Notwithstanding anything to the contrary contained herein, this
Agreement shall not be deemed or construed to make the parties hereto partners
or joint venturers, it being the intention of the parties to merely create the
relationship of Seller and Purchaser with respect to the Property to be
conveyed as contemplated hereby.

 

Section 17.12         Limitations
on Benefits.  It is the
explicit intention of Purchaser and Seller that no person or entity other than
Purchaser, Purchaser’s Affiliates, Seller, Seller’s Affiliates and their
permitted successors and assigns is or shall be entitled to bring any action to
enforce any provision of this Agreement against any of the parties hereto, and
the covenants, undertakings and agreements set forth in this Agreement shall be
solely for the benefit of, and shall be enforceable only by, Purchaser, Purchaser’s
Affiliates, Seller and Seller’s Affiliates, or their respective successors and
assigns as permitted hereunder.  Except
as set forth in this Section 17.12, nothing contained in this
Agreement shall under any circumstances whatsoever be deemed or construed, or
be interpreted, as making any third party a beneficiary of any term or
provision of this Agreement or any instrument or document delivered pursuant
hereto, and Purchaser and Seller expressly reject any such intent, construction
or interpretation of this Agreement.

 

Section 17.13         Assignment:
Binding Effect.  Except
as set forth in this Section 17.13, Purchaser will not have the right to
assign this Agreement; Purchaser may assign all of its rights under this
Agreement to an entity which directly or indirectly controls, is controlled by,
or is under common control with, iStar, including, without limitation, a single
purpose entity created by Purchaser for the purpose of holding title to
Seller’s LLC Interest.  Purchaser will
notify each Seller of any such assignment. 
In the event of any such assignments, whether accomplished as a matter
of right or upon the consent of the other party, the original parties to this
Agreement shall not be released.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.

 

Section 17.14         Remedies
Cumulative.  Except
as provided in Article XIII of this Agreement, all rights, powers and
privileges conferred hereunder upon the parties in any specific Section shall
be cumulative but not restrictive of those given in other Sections of this
Agreement and by law.

 

Section 17.15         Further
Assurances.  At
and after Closing, the parties shall deliver to each other any additional
materials and documents which are necessary or appropriate to further assure,
complete and document the consummation of the purchase and sale contemplated
herein on the terms described herein. 
From and after Closing, each party shall afford to the other reasonable
access to any information in its possession concerning Seller’s LLC Interest
and the operations of the Property (including the right to copy the same at the
expense of the party

 

58

 

desiring the copy) for purposes of ascertaining
post-Closing adjustments, tax examinations or audits, or other similar
purposes.

 

Section 17.16         Cooperation.

 

(a)           Purchaser acknowledges
that Seller and/or any one or more of its Affiliates may be required by the
Securities and Exchange Commission to file audited financial statements for one
to three years after Closing with regard to the Property.  At no cost or liability to Purchaser, after
Closing, Purchaser shall, and shall cause each Property Owner, to reasonably
cooperate with Seller and/or its Affiliate, its counsel, accountants, agents
and representatives, to provide them with reasonable access to Purchaser’s and
Property Owner’s books and records with respect to the ownership, management,
maintenance and operation of the Property for the applicable period, and permit
them to copy same.  Seller or its
Affiliate agrees to deliver to Purchaser a commercially reasonable
confidentiality agreement in connection with the foregoing prior to any such
access or copying.

 

(b)(i)       Seller and only Seller
shall prepare and file, or cause to be prepared and filed, all tax returns and
reports that are required to be filed by or with respect to each Property Owner
entity for all tax periods ending on or prior to the Closing Date and any
amended tax return or report for any such tax period (any such tax return or
report or amended tax return or report, a “Pre-Closing Tax Return”).  Unless otherwise required by applicable law
or contrary to the reasonable advice of Seller’s tax counsel or accountants,
any Pre-Closing Tax Return shall be prepared on a basis consistent with past
practice.  Seller shall deliver, or
cause to be delivered (the date of such delivery, the “Delivery Date”), a
copy of each such Pre-Closing Tax Return to the Purchaser for the Purchaser’s review.  The Purchaser shall have until midnight on
the tenth (10th) day following the Delivery Date of a Pre-Closing
Tax Return to deliver to the Seller any proposed revisions that it may have to
such return, which proposed revisions shall be in writing and shall be set
forth in reasonable detail.  Seller may
incorporate (or cause to be incorporated) any one or more of such proposed
revisions but shall be required to incorporate (or cause to be incorporated)
only those proposed revisions: (i) which are not inconsistent with the past
practice in filing such return, except if otherwise required by applicable law
or contrary to the reasonable advice of Seller’s tax counsel or accountants;
(ii) in the case of any federal income tax return, which has “substantial
authority” (within the meaning of Treasury Regulations
Section 1.6662-4(d)(1)) and which would replace a position for which there
is no “substantial authority” (within the meaning of Treasury Regulations
Section 1.6662-4(d)(1)); and (iii) in the case of any other Pre-Closing
Tax Return, which are correct under applicable law and which would replace a
position which is clearly erroneous; provided, however, that,
notwithstanding anything herein to the contrary, Purchaser’s prior written
consent (which consent shall not be unreasonably withheld, conditioned or
delayed) shall be required with respect to any position contained on any such
Pre-Closing Tax Return which would reasonably result in an increase in
liability to Purchaser post-Closing (including under the Financial Agreement or
Amended Financial Agreement).  Seller,
and only Seller, may prepare and file or cause to be prepared and filed a
Pre-Closing Tax Return, and under no circumstances may a Pre-Closing Tax Return
be filed by Purchaser or any other person without Seller’s prior written
consent. Seller, and only Seller, shall control (subject to Purchaser’s rights
hereunder) any Audit (as defined below) in respect of any

 

59

 

tax period ending on or prior to the Closing Date (“Seller
Audit”) and, in connection therewith, Seller shall keep
Purchaser fully and contemporaneously apprised of all material aspects of any
Seller Audit and shall promptly furnish or cause to be promptly furnished to
Purchaser copies of any and all documents, reports, correspondence and other
written materials pertaining to any Seller Audit.  Seller shall be authorized to take, or cause to be taken (or not
take, or cause not to be taken) any action with respect to any Seller Audit in
its sole discretion; provided, however, that Seller shall not
take or cause to be taken (or not take, or cause not to be taken) any action
which would reasonably result in an increase in liability to Purchaser
post-Closing (including under the Financial Agreement or Amended Financial
Agreement) without Purchaser’s prior written consent (which consent shall not
be unreasonably withheld conditioned or delayed). Seller, and only Seller,
shall be entitled to any refund or credit (and/or benefit therefrom) resulting
from the filing of any Pre-Closing Tax Return or arising from or in respect of
any Seller Audit.

 

(ii)           The Purchaser shall
prepare, or cause to be prepared, and timely file, or cause to be timely filed,
all tax returns and reports that are required to be filed by or with respect to
each Property Owner for all tax periods beginning prior to, and ending after,
the Closing Date, as well as any amended tax return or report for any such tax
period (any such return and report or amended return or report, a “Straddle
Return”).  Purchaser
shall deliver, or cause to be delivered a copy of each such Straddle Return to
Seller for Seller’s review at least ten (10) prior to the filing thereof.  Seller’s prior written consent (not to be
unreasonably withheld, conditioned or delayed) shall be required with respect
to any position contained on a Straddle Return which would reasonably result in
an increase in liability to Seller for any pre-Closing period (including under
the Financial Agreement or Amended Financial Agreement), except that no such
consent shall be required if the total liability resulting from such position
is allocable proportionately between Seller and Purchaser and Purchaser is
liable for more than fifty percent (50%) of said liability.  Unless otherwise required by applicable law,
any Straddle Return shall be prepared on a basis consistent with past practice
(to the extent of past practice). The Purchaser shall control (subject to
Seller’s rights hereunder) and, unless the Seller consents in writing for the
Purchaser to do otherwise, shall diligently pursue and defend (and shall cause
a Property Owner to diligently pursue and defend) any Audit of any Straddle
Period (“Straddle Audit”); provided, however that, without Seller’s
prior written consent (which consent shall not be unreasonably withheld,
conditioned or delayed), Purchaser shall not take or cause or permit to be
taken (or not take, or cause or permit not to be taken) any action which could
reasonably be expected to result in an increase in liability for Seller for any
pre-Closing period (including under the Financial Agreement or Amended
Financial Agreement), except that no such consent shall be required if the
total liability resulting from such action is allocable proportionately between
Seller and Purchaser and Purchaser is liable for more than fifty percent (50%)
of said liability.  Purchaser shall keep
the Seller fully and contemporaneously apprised of all material aspects of any
Straddle Audit and shall promptly furnish or cause to be promptly furnished to
the Seller copies of any and all documents, reports, correspondence and other
written materials pertaining to any Straddle Audit.  At the reasonable request of Seller, the Purchaser shall use
commercially reasonable efforts to pursue any claim for a refund or credit in
respect of any taxes for any Straddle Period, either by the filing of an
amended Straddle Return or during a Straddle Audit, unless Purchaser reasonably
believes, and is able to establish to the reasonable satisfaction of

 

60

 

Seller and its tax counsel and accountants, that the
total cost of pursuing such claim would exceed the amount of such refund or
credit.  Purchaser shall pay to Seller
Seller’s proportionate share of any such refund or credit (i.e., the amount of such
refund or credit multiplied by the fraction the numerator of which is the total
number of days in the Pre-Closing Straddle Period and the denominator of which
is the total number of days in such Straddle Period) and any interest thereon
so obtained promptly after receipt from, or allowance thereof, by the relevant
tax authority, less Seller’s proportionate share of the cost thereof.  The Seller and Purchaser shall, and Purchaser
shall cause any Property Owner to, fully cooperate in the obtaining of any
refund or credit.

 

(iii)          For purposes of this Section
17.16(b), the term “Audit” shall mean any audit,
assessment, or other examination or claim by any tax authority and any
judicial, administrative or other proceeding or litigation (including any
appeal of any such judicial, administrative or other proceeding or litigation),
relating to taxes or tax returns or reports. 
For purposes of this Section 17.16(b), the term “Pre-Closing
Straddle Period” shall mean with respect to any Straddle Period,
the portion of such Straddle Period beginning on the first day thereof and
ending on an including the Closing Date. 
The Purchaser shall not dispose of any records or documents relevant to
any taxes or Pre-Closing Returns or Straddle Returns prior to the later of six
months after the expiration of the applicable limitations period on assessment
with respect to any such taxes or tax returns, or the final resolution of any
Seller Audit or Straddle Audit initiated prior to the expiration of the
applicable limitations period.

 

(iv)          Seller
and Purchaser shall cooperate fully, to the extent reasonably requested, in
connection with the filing of any tax return (e.g., Pre-Closing Tax Return or
Straddle Tax Return) or the procuring or claiming of any refund or credit for
any overpayment of taxes and with respect to any Audit (e.g., any Seller Audit
or Straddle Audit).  Such cooperation
shall include, but shall not be limited to: 
(A) subject to any limitations set forth in this Section 17.16, the
taking or making or the declining to take or make (or the causing of any
Property Owner to take or make or to decline to take or make) any action,
position or claim with respect to any Audit or tax return, as directed by the
party authorized under Section 17.16 to prepare, file and/or control such tax
return or Audit (e.g., with respect to Seller’s control of any Seller
Audit in accordance with Section 17.16(b)(i)); (B), the prompt furnishing
and/or making available by Seller, Purchaser and any Property Owner of any and
all relevant records, documents, consents, certificates, workpapers and other
information as may be necessary to control and defend any Audit and/or to
prepare and timely file any tax return; and (C) making employees available on a
mutually convenient basis to sign any tax return and/or sign-off on any Audit
and to provide additional information and explanation of any material provided
hereunder.

 

(c) For purposes of this Section 17.16, and as the
context requires, any reference to “Property Owner” in this Section 17.16 shall
be deemed to refer to and include any one or more of the Post-Transfer AFE
entities.

 

Section 17.17         Exculpation.    (a) If the Closing shall occur, other than expressly contained
in guaranties, indemnities or agreements entered into at Closing by Seller, 8/9
Transferee and/or MCRLP or Seller’s Affiliates for the benefit of Purchaser
(and/or Purchaser’s

 

61

 

Affiliates), Purchaser acknowledges and agrees that
Purchaser shall look solely to Seller’s, AFE’s, PXURA’s, PXLA’s and PXR’s
interests in the Property, the Ground Lease and the Sublease, and Seller’s LLC
Interest, for the recovery of any judgment against Seller arising out of or
relating to this Agreement and the transactions contemplated herein, and no
other property or assets of Seller, Seller’s Affiliates or any of Seller’s and
Seller’s Affiliates direct and indirect shareholders, officers, directors,
partners, principals, members, employees, agents, contractors, and any
successors or assigns of the foregoing (collectively with Seller, “Seller Related Parties”) shall be
subject to levy, execution or other enforcement procedure for the satisfaction
of Purchaser’s remedies under or with respect to this Agreement.  Purchaser agrees to indemnify and hold the
Seller Related Parties harmless from and against any and all losses, costs,
damages, liens, claims, liabilities or expenses (including, but not limited to,
reasonable attorneys’ fees, court costs and disbursements) (collectively, “Losses”) incurred by any of the
Seller’s Related Parties arising from or by reason of any damage to person or
property caused by Purchaser’s breach of this Section 17.17(a).

 

(b)           If
the Closing occurs hereunder, then other than expressly contained in
guaranties, indemnities or agreements entered into at Closing by Purchaser,
Post-Transfer AFE, iStar or Purchaser’s Affiliates for the benefit of Seller
(and/or Seller’s Affiliates), Seller acknowledges and agrees that Seller shall
look solely to Purchaser’s, AFE’s, PXURA’s, PXLA’s and PXR’s interests in the
Property, the Ground Lease and the Sublease, and Seller’s LLC Interest, for the
recovery of any judgment against Purchaser arising out of or relating to this
Agreement and the transactions contemplated herein, and no other property or
assets of Purchaser, Purchaser’s Affiliates or any of Purchaser’s and
Purchaser’s Affiliates direct and indirect shareholders, officers, directors,
partners, principals, members, employees, agents, contractors, and any
successors or assigns of the foregoing (collectively with Purchaser, “Purchaser Related Parties”) shall be
subject to levy, execution or other enforcement procedure for the satisfaction
of Seller’s remedies under or with respect to this Agreement.  Seller agrees to indemnify and hold the
Purchaser Related Parties harmless from and against any and all Losses incurred
by any of the Purchaser’s Related Parties arising from or by reason of any
damage to person or property caused by Seller’s breach of this Section
17.17(b).

 

Section 17.18         Drafts Not an Offer to Enter
into a Legally Binding Contract.  The parties hereto agree that
the submission of a draft of this Agreement by one party to another is not
intended by either party to be an offer to enter into a legally binding
contract with respect to the purchase and sale of Seller’s LLC Interest or the
Property.  The parties shall be legally
bound with respect to the purchase and sale of the Seller’s LLC Interest pursuant
to the terms of this Agreement only if and when the parties have been able to
negotiate all of the terms and provisions of this Agreement in a manner
acceptable to each of the parties in their respective sole discretion,
including, without limitation, all of the exhibits hereto, and each of Seller
and Purchaser have fully executed and delivered to each other a counterpart of
this Agreement.  Unless and until each
of Seller and Purchaser have fully executed and delivered a counterpart of this
Agreement to the other, neither shall have any obligation whatsoever to the
other, except as set forth in the Confidentiality Agreement.

 

62

 

ARTICLE XVIII

SCHWAB MATTERS

 

Section 18.1           Schwab’s Lease.

 

(a)           As
set forth in Section 7.1(e), Purchaser is permitted to have negotiations
with Schwab regarding the Schwab Lease and related issues.

 

Section 18.2           Work Allowance and Additional Work Allowance.

 

(a)           Purchaser
acknowledges that (i) pursuant to and in accordance with the provisions of (x) Section
6.02 of the Schwab Lease, PXLA is obligated to pay to Schwab the Work
Allowance, and (y) Section 6.05 of the Schwab Lease, PXLA is obligated
to pay to Schwab the Additional Work Allowance and (ii) the Additional Work
Allowance is repaid to the landlord under the Schwab lease during the term
thereof in accordance with the provisions of Section 6.05(f) of the
Schwab Lease.  It is the intention of
the parties that Seller shall provide Purchaser, at Closing, a credit in an
amount equal to any unpaid portion of the Work Allowance (the “Work Allowance Credit), and Purchaser
(together with Purchaser’s Affiliates) shall, from and after the Closing,
assume all obligations and liabilities with respect to the Work Allowance and
Additional Work Allowance, and shall pay to Schwab same as and when due.

 

(b)           Notwithstanding
anything to the contrary in the foregoing, Purchaser shall indemnify, defend
and hold the Seller Related Parties (including, without limitation, MCRLP and
Columbia), harmless from any and all Losses arising or resulting out of
Purchaser’s failure to pay the Work Allowance (up to, but not to exceed the
amount of the Work Allowance Credit) and the Additional Work Allowance to
Schwab as and when due.

 

(c)           In
the event that it shall be finally determined (whether by settlement or by a
final, non-appealable order issued by a court of competent jurisdiction) that
any Work Allowance payments in excess of the Work Allowance Credit are owed
after the Closing to Schwab under Section 6.02 of the Schwab Lease, then
Seller shall indemnify, defend, and hold Purchaser and the Purchaser Related
Entities harmless from any and all Losses arising on account of such excess
Work Allowance payments.

 

ARTICLE XIX

INDEMNITY

 

Section 19.1           Indemnification by Seller.  In addition to any other
indemnities expressly provided for in this Agreement, Seller agrees to
indemnify, hold harmless and defend Purchaser from and against:

 

(a)           any
Losses which accrue or which are based upon Seller’s failure to comply with its
Closing Surviving Obligations or events which occurred prior to the Closing
Date, except for Losses arising out of matters which are Purchaser’s liability
under this

 

63

 

Agreement, all matters which pursuant to Section
5.4 of this Agreement Seller has disclaimed liability or responsibility
for, including, without limitation, the condition of the Property on or prior
to the Closing Date, and matters which are apportioned hereunder;

 

(b)           any
Losses which accrue or which are based upon events related to the Excluded Real
Property which occurred prior to the Closing Date; and

 

(c)           all
reasonable costs and expenses (including reasonable attorneys’ fees and
expenses) incurred by the Purchaser in connection with any action, suit,
proceeding, demand, assessment or judgment instituted by a third party against
Purchaser or by the Purchaser against Seller or a third party incident to any
of the matters indemnified against in this Section 19.1.

 

Section 19.2           Indemnification by Purchaser.  In addition to any other
indemnities expressly provided for in this Agreement, Purchaser agrees to
indemnify, hold harmless and defend Seller from and against:

 

(a)           any
Losses which accrue or which are based on Purchaser’s failure to comply with
its Closing Surviving Obligations or events which occurred on or after the
Closing Date, including, without limitation, any failure on the part of
Purchaser to pay (or cause to be paid) the Renewal Term Schwab Commissions and
any failure on the part of Purchaser (and Purchaser’s Affiliates) to perform as
required under this Agreement and the Schwab Lease (except as the obligations
of performance thereunder is retained by Seller as expressly provided in this
Agreement); and

 

(b)           all
reasonable costs and expenses (including reasonable attorneys’ fees and
expenses) incurred by the Seller in connection with any action, suit,
proceeding, demand, assessment or judgment instituted by a third party against
Seller or by the Seller against Purchaser or a third party incident to any of the
matters indemnified against in this Section 19.2.

 

Section 19.3           Survival of Indemnity.  The provisions of this Article XIX shall
survive the Closing until the tenth (10th) anniversary of the Closing Date,
unless a shorter statute of limitations shall apply.

 

ARTICLE XX

8/9 TRANSFEREE DEBT MAINTENANCE COVENANT

 

Section 20.1           Maintenance Covenant.  From the Closing through the second
anniversary of the Closing (the “Net Worth
Survival Period”), Seller shall cause 8/9 Transferee, and
Purchaser shall cause Post-Transfer AFE, to maintain a Net Worth of not less
than $10,000,000.00.  Notwithstanding
anything to the contrary provided herein, each of Seller and Purchaser shall
have the right at any time during the Net Worth Survival Period to provide
Escrow Agent with cash or a Letter of Credit in the amount of $10,000,000, in
which case such

 

64

 

party providing the cash or Letter of Credit shall
have no further obligations under this Article XX; provided, that if either
party has delivered a Letter of Credit, such party shall have no further
obligations as aforesaid so long as such Letter of Credit remains in effect
through the end of the Net Worth Survival Period or so long as the Escrow Agent
draws on any such Letter of Credit and holds cash proceeds in-lieu of such
Letter of Credit.  Any cash or Letter of
Credit delivered to Escrow Agent shall be held by Escrow Agent pursuant to an
escrow agreement in form reasonably satisfactory to the parties.  If any party provides cash or a Letter of
Credit hereunder, such cash or Letter of Credit (less any amounts drawn down
under the escrow agreement) shall be refunded to such party at the expiration
of the Net Worth Survival Period.  “Net
Worth” means (a) in the case of Post-Transfer AFE, net worth computed
in accordance with generally accepted accounting principles and (b) in the
case of 8/9 Transferee, the value of the Excluded Real Property and any
improvements now or hereafter built thereon less any debt secured thereby.  “Letter of Credit” means an irrevocable,
unconditional letter of credit, in form approved by the party receiving such
letter of credit (which approval shall not be unreasonably withheld,
conditioned or delayed), naming Escrow Agent as beneficiary, issued by a bank
organized or licensed under the laws of the United States, or any state
thereof, having (i) a net worth computed in accordance with generally
accepted accounting principles in excess of $1,500,000,000 and (ii) a
senior unsecured debt rating of “A” or better as rated by Standard and Poors or
‘A-2’ or better as rated by Moody’s, and providing for draws by sight draft in
New York or New Jersey, having a term of not less than 60 days.  Seller agrees to indemnify, defend and hold
harmless Purchaser, Post-Transfer AFE and the other entities constituting
Property Owner (as reconstituted upon Closing) from and against any and all
Losses which any such Persons may incur on account of Seller’s failure to cause
8/9 Transferee to comply with Section 20.1.  Purchaser agrees to indemnify, defend and
hold harmless the Seller from and against any and all Losses which any such
Persons may incur on account of Purchaser’s failure to cause Post-Transfer AFE
to comply with Section 20.1.

 

Section 20.2           Guaranty of Maintenance.  At the Closing, MCRLP shall execute a
guaranty pursuant to which MCRLP agrees to guaranty Seller’s obligations under
this Article XX.  At the Closing,
iStar shall execute a guaranty pursuant to which iStar agrees to guaranty
Purchaser’s obligations under this Article XX.

 

[The remainder of this page is
intentionally left blank.]

 

65

 

IN
WITNESS WHEREOF, Seller and Purchaser have respectively
executed this Agreement as of the Effective Date.

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  iSTAR
  HARBORSIDE LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  iStar Harborside
  Member, LLC, member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  iStar Financial Inc.,
  member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ H. CABOT LODGE, III

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  H. Cabot Lodge, III

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice
  President

  
	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  M-C
  Harsimus Partners L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Mack-Cali Realty, L.P.,
  sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Mack-Cali Realty
  Corporation,

  
	
   

  	
   

  	
   

  	
  general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ MITCHELL E. HERSH

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mitchell E. Hersh

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  COLUMBIA DEVELOPMENT COMPANY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Atlantis Charter
  Company, L.L.C., member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ FRANK GUARINI

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Frank Guarini

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Member

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Columbia Charter Group,
  L.L.C., member

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ JOSEPH PANEPINTO

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Joseph Panepinto

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Member

  
										

 

[Additional
Signatures on Following Page]

 

66

 

The undersigned is executing this Agreement for the
sole and exclusive purpose of evidencing its agreement with the matters set
forth in Sections 3.2 and 4.3 and Article XVI of
this Agreement.

 

	
   

  	
  ESCROW
  AGENT:

  
	
   

  	
   

  
	
   

  	
  FIRST AMERICAN TITLE INSURANCE

  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ANTHONY RUGGERI

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Anthony Ruggeri

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

67

 

The undersigned is executing this Agreement for the
sole and exclusive purpose of evidencing its agreement set forth in Section
5.5 of this Agreement.

 

	
   

  	
  iSTAR FINANCIAL INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ H. CABOT LODGE, III

  	
   

  
	
   

  	
   

  	
  Name:

  	
  H. Cabot Lodge, III

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
					

 

68Exhibit 4.1

 

EXECUTION COPY

 

 

 

THE MANITOWOC COMPANY, INC.,

as Issuer,

 

 

the Guarantors named herein,

as Guarantors

 

and

 

BNY MIDWEST TRUST COMPANY,

as Trustee

 

Indenture

 

Dated as of November 6, 2003

 

 

71/8% Senior Notes due 2013

 

 

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE ONE

  
	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  
	
  SECTION 1.01.

  	
  Definitions

  
	
  SECTION 1.02.

  	
  Incorporation by Reference of Trust
  Indenture Act

  
	
  SECTION 1.03.

  	
  Rules of Construction

  
	
   

  	
   

  
	
  ARTICLE TWO

  
	
   

  	
   

  
	
  THE NOTES

  
	
   

  
	
  SECTION 2.01.

  	
  The Notes

  
	
  SECTION 2.02.

  	
  Restrictive Legends

  
	
  SECTION 2.03.

  	
  Execution and Authentication

  
	
  SECTION 2.04.

  	
  Registrar and Paying Agent

  
	
  SECTION 2.05.

  	
  Holders to Be Treated as Owners; Payments
  of Interest

  
	
  SECTION 2.06.

  	
  Paying Agent to Hold Money in Trust

  
	
  SECTION 2.07.

  	
  Transfer and Exchange

  
	
  SECTION 2.08.

  	
  Replacement Notes

  
	
  SECTION 2.09.

  	
  Outstanding Notes

  
	
  SECTION 2.10.

  	
  Temporary Notes

  
	
  SECTION 2.11.

  	
  Cancellation

  
	
  SECTION 2.12.

  	
  CUSIP Numbers

  
	
  SECTION 2.13.

  	
  Defaulted Interest

  
	
  SECTION 2.14.

  	
  Issuance of Additional Notes

  
	
   

  	
   

  
	
  ARTICLE THREE

  
	
   

  	
   

  
	
  REDEMPTION

  
	
   

  	
   

  
	
  SECTION 3.01.

  	
  Optional Redemption

  
	
  SECTION 3.02.

  	
  Notices to Trustee

  
	
  SECTION 3.03.

  	
  Selection of Notes to Be Redeemed

  
	
  SECTION 3.04.

  	
  Notice of Redemption

  
	
  SECTION 3.05.

  	
  Effect of Notice of Redemption

  
	
  SECTION 3.06.

  	
  Deposit of Redemption Price

  
	
  SECTION 3.07.

  	
  Payment of Notes Called for Redemption

  
	
  SECTION 3.08.

  	
  Notes Redeemed in Part

  

 

i

 

	
  ARTICLE FOUR

  
	
   

  	
   

  
	
  COVENANTS

  
	
   

  
	
  SECTION 4.01.

  	
  Payment of Notes

  
	
  SECTION 4.02.

  	
  Maintenance of Office or Agency

  
	
  SECTION 4.03.

  	
  Limitation on Incurrence of Additional
  Indebtedness

  
	
  SECTION 4.04.

  	
  RESERVED

  
	
  SECTION 4.05.

  	
  Limitation on Restricted Payments

  
	
  SECTION 4.06.

  	
  Limitation on Dividend and Other Payment
  Restrictions Affecting Restricted Subsidiaries

  
	
  SECTION 4.07.

  	
  Limitation on Preferred Stock of Restricted
  Subsidiaries

  
	
  SECTION 4.08.

  	
  Limitation on Transactions with Affiliates

  
	
  SECTION 4.09.

  	
  Limitation on Liens

  
	
  SECTION 4.10.

  	
  Limitation on Asset Sales

  
	
  SECTION 4.11.

  	
  Repurchase of Notes upon a Change of
  Control

  
	
  SECTION 4.12.

  	
  Additional Subsidiary Guarantees

  
	
  SECTION 4.13.

  	
  Existence

  
	
  SECTION 4.14.

  	
  Payment of Taxes and Other Claims

  
	
  SECTION 4.15.

  	
  Reports to Holders

  
	
  SECTION 4.16.

  	
  Conduct of Business

  
	
  SECTION 4.17.

  	
  Waiver of Stay, Extension or Usury Laws

  
	
  SECTION
  4.18.

  	
  Compliance Certificates

  
	
  SECTION 4.19.

  	
  Maintenance of Properties

  
	
  SECTION 4.20.

  	
  Insurance

  
	
   

  	
   

  
	
  ARTICLE FIVE

  
	
   

  	
   

  
	
  SUCCESSOR CORPORATION

  
	
   

  
	
  SECTION 5.01.

  	
  Merger, Consolidation and Sale of Assets

  
	
  SECTION 5.02.

  	
  Successor Substituted

  
	
   

  	
   

  
	
  ARTICLE SIX

  
	
   

  	
   

  
	
  DEFAULT AND REMEDIES

  
	
   

  
	
  SECTION 6.01.

  	
  Events of Default

  
	
  SECTION 6.02.

  	
  Notice of Defaults

  
	
  SECTION 6.03.

  	
  Other Remedies

  
	
  SECTION 6.04.

  	
  Waiver of Past Defaults

  
	
  SECTION 6.05.

  	
  Control by Majority

  
	
  SECTION 6.06.

  	
  Limitation on Suits

  
	
  SECTION 6.07.

  	
  Rights of Holders to Receive Payment

  
	
  SECTION 6.08.

  	
  Collection Suit by Trustee

  

 

ii

 

	
  SECTION 6.09.

  	
  Trustee May File Proofs of Claim

  
	
  SECTION 6.10.

  	
  Priorities

  
	
  SECTION 6.11.

  	
  Undertaking for Costs

  
	
  SECTION 6.12.

  	
  Restoration of Rights and Remedies

  
	
  SECTION 6.13.

  	
  Rights and Remedies Cumulative

  
	
  SECTION 6.14.

  	
  Delay or Omission Not Waiver

  
	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
   

  	
   

  
	
  TRUSTEE

  
	
   

  
	
  SECTION 7.01.

  	
  General

  
	
  SECTION 7.02.

  	
  Certain Rights, Duties and Responsibilities
  of Trustee

  
	
  SECTION 7.03.

  	
  Individual Rights of Trustee

  
	
  SECTION 7.04.

  	
  Trustee’s Disclaimer

  
	
  SECTION 7.05.

  	
  Notice of Default

  
	
  SECTION 7.06.

  	
  Reports by Trustee to Holders

  
	
  SECTION 7.07.

  	
  Compensation and Indemnity

  
	
  SECTION 7.08.

  	
  Replacement of Trustee

  
	
  SECTION 7.09.

  	
  Successor Trustee by Merger, Etc.

  
	
  SECTION 7.10.

  	
  Eligibility

  
	
  SECTION 7.11.

  	
  Money Held in Trust

  
	
  SECTION 7.12.

  	
  Withholding Taxes

  
	
  SECTION 7.13.

  	
  Trustee’s Application for Instructions from
  the Company

  
	
  SECTION 7.14.

  	
  Appointment of Co-Trustee

  
	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
   

  	
   

  
	
  DISCHARGE OF INDENTURE

  
	
   

  
	
  SECTION 8.01.

  	
  Termination of Company’s Obligations

  
	
  SECTION 8.02.

  	
  Defeasance and Discharge of Indenture

  
	
  SECTION 8.03.

  	
  Defeasance of Certain Obligations

  
	
  SECTION 8.04.

  	
  Application of Trust Money

  
	
  SECTION 8.05.

  	
  Repayment to Company

  
	
  SECTION 8.06.

  	
  Reinstatement

  
	
   

  	
   

  
	
  ARTICLE NINE

  
	
   

  	
   

  
	
  AMENDMENTS, SUPPLEMENTS AND WAIVERS

  
	
   

  
	
  SECTION 9.01.

  	
  Without Consent of Holders

  
	
  SECTION 9.02.

  	
  With Consent of Holders

  
	
  SECTION 9.03.

  	
  Revocation and Effect of Consent

  
	
  SECTION 9.04.

  	
  Notation on or Exchange of Notes

  

 

iii

 

	
  SECTION 9.05.

  	
  Trustee to Sign Amendments, Etc

  
	
  SECTION 9.06.

  	
  Conformity with Trust Indenture Act

  
	
   

  	
   

  
	
  ARTICLE TEN

  
	
   

  	
   

  
	
  [RESERVED]

  
	
   

  	
   

  
	
  ARTICLE ELEVEN

  
	
   

  	
   

  
	
  GUARANTEE OF NOTES

  
	
   

  
	
  SECTION 11.01.

  	
  Guarantee

  
	
  SECTION 11.02.

  	
  Execution and Delivery of Guarantee

  
	
  SECTION 11.03.

  	
  Waiver of Subrogation

  
	
  SECTION 11.04.

  	
  Immediate Payment

  
	
  SECTION 11.05.

  	
  No Set-Off

  
	
  SECTION 11.06.

  	
  Obligations Absolute

  
	
  SECTION 11.07.

  	
  Obligations Continuing

  
	
  SECTION 11.08.

  	
  Obligations Not Reduced

  
	
  SECTION 11.09.

  	
  Obligations Reinstated

  
	
  SECTION 11.10.

  	
  Obligations Not Affected

  
	
  SECTION 11.11.

  	
  Waiver

  
	
  SECTION 11.12.

  	
  No Obligation to Take Action Against
  Company

  
	
  SECTION 11.13.

  	
  Default and Enforcement

  
	
  SECTION 11.14.

  	
  Costs and Expenses

  
	
  SECTION 11.15.

  	
  No Merger or Waiver; Cumulative Remedies

  
	
  SECTION 11.16.

  	
  Survival of Obligations

  
	
  SECTION 11.17.

  	
  Guarantee in Addition to Other Obligations

  
	
  SECTION 11.18.

  	
  Successors and Assigns

  
	
  SECTION 11.19.

  	
  Governing Law; Agent for Service;
  Submission to Jurisdiction; Waiver of Immunities; Judgment Currency

  
	
  SECTION 11.20.

  	
  Limitation of Guarantor’s Liability

  
	
  SECTION 11.21.

  	
  Release of Guarantee

  
	
   

  	
   

  
	
  ARTICLE TWELVE

  
	
   

  	
   

  
	
  RESERVED

  
	
   

  
	
  ARTICLE THIRTEEN

  
	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  
	
  SECTION 13.01.

  	
  Trust Indenture Act of 1939

  
	
  SECTION 13.02.

  	
  Notices

  
	
  SECTION 13.03.

  	
  Certificate and Opinion as to Conditions
  Precedent

  

 

iv

 

	
  SECTION 13.04.

  	
  Statements Required in Certificate

  
	
  SECTION 13.05.

  	
  Rules by Trustee, Paying Agent or Registrar

  
	
  SECTION 13.06.

  	
  Payment Date Other Than a Business Day

  
	
  SECTION 13.07.

  	
  Governing Law

  
	
  SECTION 13.08.

  	
  No Adverse Interpretation of Other
  Agreements

  
	
  SECTION 13.09.

  	
  No Recourse Against Others

  
	
  SECTION 13.10.

  	
  Successors

  
	
  SECTION 13.11.

  	
  Duplicate Originals

  
	
  SECTION 13.12.

  	
  Separability

  
	
  SECTION 13.13.

  	
  Table of Contents, Headings, Etc

  
	
  SECTION 13.14.

  	
  Waiver of Jury Trial

  
	
  SECTION 13.15.

  	
  Unclaimed Money; Prescription

  
	
   

  	
   

  
	
  ARTICLE FOURTEEN

  
	
   

  	
   

  
	
  PAYING AGENT, TRANSFER AGENT AND REGISTRAR

  
	
   

  
	
  SECTION 14.01.

  	
  Duties of the Paying Agent, Transfer Agent
  and Registrar

  
	
  SECTION 14.02.

  	
  Agent of the Company

  
	
  SECTION 14.03.

  	
  Certain Rights of Paying Agent, Transfer
  Agent and Registrar

  
	
  SECTION 14.04.

  	
  May Hold Notes

  
	
  SECTION 14.05.

  	
  Appointment of Agents

  
	
  SECTION 14.06.

  	
  Money Held

  
	
  SECTION 14.07.

  	
  Paying Agent, Transfer Agent and Registrar
  Not Responsible for Notes

  
	
  SECTION 14.08.

  	
  Compensation and Indemnification

  

 

v

 

	
  EXHIBIT A

  	
  -

  	
  Form of Note

  
	
  EXHIBIT B

  	
  -

  	
  Form of
  Certificate of Transfer

  
	
  EXHIBIT C

  	
  -

  	
  Form of
  Certificate of Exchange

  
	
  EXHIBIT D

  	
  -

  	
  Form of
  Certificate from Acquiring Institutional Accredited Investor

  
	
  EXHIBIT E

  	
  -

  	
  Form of Guarantee

  

 

vi

 

CROSS-REFERENCE
TABLE

 

	
  TIA
  Sections

  	
   

  	
  Indenture Sections

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 310

  	
  (a)(1)

  	
  7.10

  	
   

  
	
   

  	
  (a)(2)

  	
  7.10

  	
   

  
	
   

  	
  (b)

  	
  7.03; 7.08

  	
   

  
	
  Section 311

  	
   

  	
  7.03

  	
   

  
	
  Section 313

  	
  (a)

  	
  7.06

  	
   

  
	
   

  	
  (c)

  	
  7.05; 7.06

  	
   

  
	
  Section 314

  	
  (a)

  	
  13.02

  	
   

  
	
   

  	
  (a)(4)

  	
  4.18

  	
   

  
	
   

  	
  (b)

  	
  N/A

  	
   

  
	
   

  	
  (c)(1)

  	
  N/A

  	
   

  
	
   

  	
  (c)(2)

  	
  N/A

  	
   

  
	
   

  	
  (d)

  	
  N/A

  	
   

  
	
   

  	
  (e)

  	
  13.04

  	
   

  
	
  Section 315

  	
  (a)

  	
  7.02

  	
   

  
	
   

  	
  (b)

  	
  7.02; 7.05

  	
   

  
	
   

  	
  (c)

  	
  7.02

  	
   

  
	
   

  	
  (d)

  	
  7.02

  	
   

  
	
  Section 316

  	
  (a)

  	
  6.05; 6.06

  	
   

  
	
   

  	
  (a)(1)(A)

  	
  6.05

  	
   

  
	
   

  	
  (a)(1)(B)

  	
  6.04

  	
   

  
	
   

  	
  (b)

  	
  6.07

  	
   

  
	
  Section 317

  	
  (a)(1)

  	
  6.08

  	
   

  
	
   

  	
  (a)(2)

  	
  6.09

  	
   

  
	
   

  	
  (b)

  	
  2.08

  	
   

  
	
  Section 318

  	
  (a)

  	
  N/A

  	
   

  
	
   

  	
  (c)

  	
  N/A

  	
   

  

 

Note:                                 The
Cross-Reference Table shall not for any purpose be deemed to be a part of this
Indenture.

 

vii

 

INDENTURE,
dated as of November 6, 2003, by and among THE MANITOWOC COMPANY, INC., a
Wisconsin corporation (the “Company”), the Guarantors (as defined below)
listed on the signature pages hereto and BNY MIDWEST TRUST COMPANY, an Illinois
trust company, as trustee (the “Trustee”), registrar, paying agent and
transfer agent.

 

RECITALS OF THE COMPANY

 

The Company
has duly authorized the execution and delivery of this Indenture to provide for
the issuance of $150,000,000 aggregate principal amount of the Company’s 71/8%
Senior Notes due 2013 in the form of Initial Notes (as defined below), and, if
and when issued, such Additional Notes (as defined below) that the Company may
from time to time choose to issue pursuant to this Indenture, in each case
issuable as provided in this Indenture. 
The Notes (as defined below) will be Guaranteed (as defined below) on a
senior basis by the Guarantors.  All
things necessary to make this Indenture a valid and legally binding agreement
of the Company and the Guarantors, in accordance with its terms, have been
done, and the Company has done all things necessary to make the Notes, when
executed by the Company, and authenticated and delivered by the Trustee
hereunder and duly issued by the Company, valid and legally binding obligations
of the Company.  The Guarantors have
done all things necessary to make the Guarantees, when executed by the
Guarantors, the valid and legally binding obligations of the Guarantors.

 

AND THIS INDENTURE FURTHER WITNESSETH

 

For and in
consideration of the premises and the purchase of the Notes by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate
benefit of all Holders, as follows:

 

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY
REFERENCE

 

SECTION 1.01.            Definitions.

 

“Acceleration
Notice” has the meaning given such term in Section 6.01(b).

 

“Acquired
Indebtedness” means Indebtedness of a Person or any of its Subsidiaries
existing at the time such Person becomes a Restricted Subsidiary of the Company
or at the time it merges or consolidates with or into the Company or any of its
Restricted Subsidiaries or that is assumed in connection with the acquisition
of assets from such Person and in each case not incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary of the Company or such acquisition, merger or consolidation.

 

“Additional
Interest” shall have the meaning given such term in any Registration Rights
Agreement.

 

 

“Additional
Notes”means, subject to the Company’s compliance with Section 4.03, 71/8
Senior Notes due 2013, substantially in the form of Exhibit A and,
if required, containing the Private Placement Legend, issued from time to time
after the Issue Date under the terms of this Indenture (other than issuances
pursuant to Section 2.07, 2.08, 2.10, 3.08 or 9.04 and other than Exchange
Notes issued pursuant to an Exchange Offer for other Notes outstanding under
this Indenture).

 

“Affiliate”
means, with respect to any specified Person, any other Person who directly or
indirectly through one or more intermediaries controls, or is controlled by, or
is under common control with, such specified Person.  The term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by
contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative of the foregoing.

 

“Affiliate
Transaction” has the meaning given such term in Section 4.08.

 

“Agent”
means any Registrar, Paying Agent, Transfer Agent, authenticating agent or
co-Registrar.

 

“amend”
means to amend, supplement, restate, amend and restate or otherwise modify; and
“amendment” shall have a correlative meaning.

 

“Applicable
Procedures” means with respect to any transfer, exchange or other
transaction involving a Global Note or beneficial interest therein, the rules
and procedures of the Depositary that may apply to such transfer or exchange.

 

“Asset
Acquisition” means (1) an Investment by the Company or any Restricted
Subsidiary of the Company in any other Person pursuant to which such Person
shall become a Restricted Subsidiary of the Company or any Restricted
Subsidiary of the Company, or shall be merged with or into the Company or any
Restricted Subsidiary of the Company, or (2) the acquisition by the Company or
any Restricted Subsidiary of the Company of the assets of any Person (other
than a Restricted Subsidiary of the Company) that constitute all or substantially
all of the assets of such Person or comprises any division or line of business
of such Person or any other properties or assets of such Person other than in
the ordinary course of business.

 

“Asset Sale”
means any direct or indirect sale, issuance, conveyance, transfer, lease,
assignment or other transfer for value by the Company or any of its Restricted
Subsidiaries (including any Sale and Leaseback Transaction) to any Person other
than the Company or a Wholly Owned Restricted Subsidiary of the Company
of:  (1) any Capital Stock of any Restricted
Subsidiary of the Company; or (2) any other property or assets of the Company
or any Restricted Subsidiary of the Company other than in the ordinary course
of business; provided, however, that Asset Sales or other
dispositions shall not include:

 

(a)           a transaction or series of related
transactions for which the Company or its Restricted Subsidiaries receive aggregate
consideration of less than $2.0 million;

 

2

 

(b)           the sale, lease, conveyance,
disposition or other transfer of all or substantially all of the assets of the
Company as permitted under Section 5.01;

 

(c)           the sale or discount, in each case
without recourse, of accounts receivable arising in the ordinary course of business,
but only in connection with the compromise or collection thereof;

 

(d)           sales of accounts receivable and
related assets (including contract rights) of the type specified in the definition
of “Qualified Securitization Transaction” to a Securitization Entity for the
fair market value thereof;

 

(e)           sales of accounts receivable and
related assets (including contract rights) to the Factor pursuant to the Factoring
Agreement;

 

(f)            disposals or replacements of
obsolete equipment in the ordinary course of business;

 

(g)           sales pursuant to the GE Agreement;
and

 

(h)           any Restricted Payment permitted by
Section 4.05 or that constitutes a Permitted Investment.

 

“Bankruptcy
Law” means Title 11 of the United States Code, as amended, or any
similar federal or state law for the relief of debtors.

 

“Board of
Directors” means, as to any Person, the board of directors of such Person
or any duly authorized committee thereof, or, with respect to any Person that
is not a corporation, the Person or Persons performing corresponding functions.

 

“Board
Resolution” means, with respect to any Person, a copy of a resolution
certified by the Secretary or an Assistant Secretary of such Person to have
been duly adopted by the Board of Directors of such Person and to be in full
force and effect on the date of such certification, and delivered to the
Trustee.

 

“Book-Entry
Interest” means a beneficial interest held by or through a Participant in a
Global Note.

 

“Borrowing
Base Amount” means, as of any date, an amount equal to the sum of:

 

(1)           80% of the aggregate
book value of all accounts receivable of the Company and its Restricted
Subsidiaries; and

 

(2)           50% of the aggregate
book value of all inventory owned by the Company and its Restricted
Subsidiaries;

 

all calculated
on a consolidated basis and in accordance with GAAP.

 

3

 

“Business
Day” means any day excluding Saturday, Sunday and any day which is a legal
holiday under the laws of New York or is a day on which banking institutions in
New York are authorized or required by law or other governmental action to
close.

 

“Capital
Stock” means:

 

(1)           with respect to any
Person that is a corporation, any and all shares, interests, participations or other
equivalents (however designated and whether or not voting) of corporate stock,
including each class of Common Stock and Preferred Stock of such Person; and

 

(2)           with respect to any
Person that is not a corporation, any and all partnership, membership or other
equity interests of such Person.

 

“Capitalized
Lease Obligations” means, as to any Person, the obligations of such Person
under a lease that are required to be classified and accounted for as capital
lease obligations under GAAP and, for purposes of this definition, the amount
of such obligations at any date shall be the capitalized amount of such
obligations at such date, determined in accordance with GAAP.

 

“Cash
Equivalents” means:

 

(1)           marketable direct
obligations issued by, or unconditionally guaranteed by, the United States
Government or issued by any agency thereof and backed by the full faith and
credit of the United States, in each case maturing within one year from the
date of acquisition thereof;

 

(2)           marketable direct
obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition thereof and, at the time
of acquisition, having one of the two highest ratings obtainable from either
S&P or Moody’s;

 

(3)           commercial paper
maturing no more than one year from the date of creation thereof and, at the
time of acquisition, having a rating of at least A-1 from S&P or at least
P-1 from Moody’s;

 

(4)           certificates of
deposit or bankers’ acceptances maturing within one year from the date of
acquisition thereof issued by any bank organized under the laws of the United
States of America or any state thereof or the District of Columbia or any U.S.
branch of a foreign bank having at the date of acquisition thereof combined
capital and surplus of not less than $250.0 million;

 

(5)           repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clause (1) above entered into with any bank
meeting the qualifications specified in clause (4) above;

 

4

 

(6)           investments in money
market funds that invest substantially all their assets in securities of the
types described in clauses (1) through (5) above; and

 

(7)           Foreign Cash
Equivalents.

 

“Change of
Control” means the occurrence of one or more of the following events:

 

(1)           any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the assets of the Company to any
Person or group of related Persons for purposes of Section 13(d) of the
Exchange Act (a “Group”), together with any Affiliates thereof (whether
or not otherwise in compliance with the provisions of this Indenture);

 

(2)           the approval by the
holders of Capital Stock of the Company of any plan or proposal for the
liquidation or dissolution of the Company (whether or not otherwise in compliance
with the provisions of this Indenture);

 

(3)           any Person or Group
(other than entities formed for the purpose of holding, directly or indirectly,
Capital Stock of the Company) shall become the owner, directly or indirectly,
beneficially or of record, of shares representing more than 50% of the
aggregate ordinary voting power represented by the issued and outstanding
Capital Stock of the Company; or

 

(4)           the replacement of a
majority of the Board of Directors of the Company over a two-year period from
the directors who constituted the Board of Directors of the Company at the
beginning of such period, and such replacement shall not have been approved by
a vote of at least a majority of the Board of Directors of the Company then
still in office who either were members of such Board of Directors at the beginning
of such period or whose election as a member of such Board of Directors was
previously so approved.

 

“Change of
Control Offer” has the meaning given to such term in Section 4.11.

 

“Change of
Control Payment Date” has the meaning given to such term in Section 4.11.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” of any Person means any and all shares, interests or other participations
in, and other equivalents (however designated and whether voting or non-voting)
of, such Person’s common stock, whether outstanding on the Issue Date or issued
after the Issue Date, and includes, without limitation, all series and classes
of such common stock.

 

“Company”
means The Manitowoc Company, Inc. until a successor replaces it pursuant to
Article Five and thereafter means the Surviving Entity.

 

5

 

“Company
Order” means a written request or order signed in the name of the Company
by an authorized signatory (by virtue of a power of attorney or other similar
instrument) and delivered to the Trustee.

 

“Consolidated
EBITDA” means, with respect to any Person, for any period, the sum (without
duplication) of:

 

(1)           Consolidated Net
Income; and

 

(2)           to the extent Consolidated
Net Income has been reduced thereby:

 

(a)           all income taxes of
such Person and its Restricted Subsidiaries paid or accrued in accordance with
GAAP for such period (other than income taxes attributable to extraordinary,
unusual or nonrecurring gains or losses (other than in connection with an
Inversion Transaction) or taxes attributable to sales or dispositions outside
the ordinary course of business);

 

(b)           Consolidated
Interest Expense; and

 

(c)           Consolidated
Non-cash Charges less any non-cash items increasing Consolidated Net Income for
such period,

 

all as
determined on a consolidated basis for such Person and its Restricted
Subsidiaries in accordance with GAAP.

 

“Consolidated
Fixed Charge Coverage Ratio” means, with respect to any Person, the ratio
of Consolidated EBITDA of such Person during the four full fiscal quarters (the
“Four Quarter Period”) ending prior to the date of the transaction
giving rise to the need to calculate the Consolidated Fixed Charge Coverage
Ratio for which financial statements are available (the “Transaction Date”)
to Consolidated Fixed Charges of such Person for the Four Quarter Period.  In addition to and without limitation of the
foregoing, for purposes of this definition, “Consolidated EBITDA” and
“Consolidated Fixed Charges” shall be calculated after giving effect on a pro forma
basis for the period of such calculation to:

 

(1)           the incurrence or
repayment of any Indebtedness of such Person or any of its Restricted
Subsidiaries (and the application of the proceeds thereof) giving rise to the
need to make such calculation and any incurrence or repayment of other Indebtedness
(and the application of the proceeds thereof), other than the incurrence or repayment
of Indebtedness in the ordinary course of business for working capital purposes
pursuant to working capital facilities, occurring during the Four Quarter
Period or at any time subsequent to the last day of the  Four Quarter Period and on or prior to the
Transaction Date, as if such incurrence or repayment, as the case may be (and
the application of the proceeds thereof), occurred on the first day of the Four
Quarter Period; and

 

(2)           any asset sales or
Asset Acquisitions (including, without limitation, any Asset Acquisition giving
rise to the need to make such calculation as a result of such Person or one of its
Restricted Subsidiaries (including any Person who becomes a Restricted

 

6

 

Subsidiary as
a result of the Asset Acquisition) incurring, assuming or otherwise being liable
for Acquired Indebtedness and also including any Consolidated EBITDA (including
any pro
forma expense and cost reductions calculated on a basis consistent
with Regulation S-X promulgated under the Exchange Act) attributable to the
assets that are the subject of the Asset Acquisition or asset sale during the
Four Quarter Period) occurring during the Four Quarter Period or at any time
subsequent to the last day of the Four Quarter Period and on or prior to the
Transaction Date, as if such asset sale or Asset Acquisition (including the
incurrence or assumption of any such Acquired Indebtedness) occurred on the
first day of the Four Quarter Period. 
If such Person or any of its Restricted Subsidiaries directly or
indirectly guarantees Indebtedness of a third Person, the preceding sentence
shall give effect to the incurrence of such guaranteed Indebtedness as if such
Person or any Restricted Subsidiary of such Person had directly incurred or
otherwise assumed such other Indebtedness that was so guaranteed.

 

Furthermore,
in calculating “Consolidated Fixed Charges” for purposes of determining the
denominator (but not the numerator) of this “Consolidated Fixed Charge Coverage
Ratio”:

 

(1)           interest on
outstanding Indebtedness determined on a fluctuating basis as of the
Transaction Date and which will continue to be so determined thereafter shall
be deemed to have accrued at a fixed rate per annum equal to the rate of
interest on such Indebtedness in effect on the Transaction Date; and

 

(2)           notwithstanding
clause (1) of this paragraph, interest on Indebtedness determined on a
fluctuating basis, to the extent such interest is covered by agreements relating
to Interest Swap Obligations, shall be deemed to accrue at the rate per annum
resulting after giving effect to the operation of such agreements.

 

“Consolidated
Fixed Charges” means, with respect to any Person for any period, the sum,
without duplication, of:

 

(1)           Consolidated
Interest Expense; plus

 

(2)           the product of (x)
the amount of all dividend payments on any series of Preferred Stock of such
Person and, to the extent permitted under this Indenture, its Restricted
Subsidiaries (other than dividends paid in Qualified Capital Stock) paid,
accrued or scheduled to be paid or accrued during such period, times (y) a
fraction, the numerator of which is one and the denominator of which is one
minus the then current effective consolidated federal, state and local income
tax rate of such Person, expressed as a decimal.

 

“Consolidated
Interest Expense” means, with respect to any Person for any period, the sum
of, without duplication:

 

(1)           the aggregate of the
interest expense of such Person and its Restricted Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP, including without
limitation:  (a) any amortization
of debt discount and amortization

 

7

 

or write-off
of deferred financing costs; (b) the net costs under Interest Swap Obligations;
(c) all capitalized interest; and (d) the interest portion of any
deferred payment obligation; and

 

(2)           the interest
component of Capitalized Lease Obligations paid, accrued and/or scheduled to be
paid or accrued by such Person and its Restricted Subsidiaries during such
period as determined on a consolidated basis in accordance with GAAP.

 

“Consolidated
Net Income” means, with respect to any Person, for any period, the
aggregate net income (or loss) of such Person and its Restricted Subsidiaries
for such period on a consolidated basis, determined in accordance with GAAP; provided
that there shall be excluded therefrom:

 

(1)           after-tax gains from
Asset Sales (without regard to the $2.0 million limitation set forth in the
definition thereof) or abandonments or reserves relating thereto;

 

(2)           after-tax items
classified as extraordinary or nonrecurring gains or losses;

 

(3)           the net income of
any Person acquired in a “pooling of interests” transaction accrued prior to
the date it becomes a Restricted Subsidiary of the referent Person or is merged
or consolidated with the referent Person or any Restricted Subsidiary of the
referent Person;

 

(4)           the net income (but
not loss) of any Restricted Subsidiary of the referent Person to the extent
that the declaration of dividends or similar distributions by that Restricted
Subsidiary of that income is restricted by contract, operation of law or otherwise;

 

(5)           the net income of
any Person, other than a Restricted Subsidiary of the Company, except to the
extent of cash dividends or distributions paid to the Company or to a
Restricted Subsidiary of the Company by such Person;

 

(6)           income or loss
attributable to discontinued operations (including, without limitation,
operations disposed of during such period whether or not such operations were
classified as discontinued);

 

(7)           in the case of a
successor to the referent Person by consolidation or merger or as a transferee
of the referent Person’s assets, any earnings of the successor corporation
prior to such consolidation, merger or transfer of assets;

 

(8)           non-cash charges
relating to compensation expense in connection with benefits provided under
employee stock option plans, restricted stock option plans and other employee
stock purchase or stock incentive plans; and

 

(9)           income or loss
attributable solely to fluctuations in currency values and related tax effects.

 

8

 

“Consolidated
Net Worth” of any Person means the consolidated stockholders’ equity of
such Person, determined on a consolidated basis in accordance with GAAP, less
(without duplication) amounts attributable to Disqualified Capital Stock of
such Person.

 

“Consolidated
Non-cash Charges” means, with respect to any Person, for any period, the
aggregate depreciation, amortization and other non-cash expenses of such Person
and its Restricted Subsidiaries reducing Consolidated Net Income of such Person
and its Restricted Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP (excluding any such charges that require an
accrual of or a reserve for cash charges for any future period).

 

“Corporate
Trust Office” means the office of the Trustee at which the corporate trust
business of the Trustee shall, at any particular time, be principally
administered, which office is, at the date of this Indenture, located at 2
North LaSalle Street, Suite 1020, Chicago, IL 60602, Attention:  Corporate Trust Administration.

 

“Covenant
Defeasance” has the meaning given such term in Section 8.03.

 

“Credit
Agreement” means the Credit Agreement dated as of May 9, 2001, among
the Company, the lenders party thereto in their capacities as lenders
thereunder and Bankers Trust Company, as agent, together with the related
documents thereto (including, without limitation, any guarantee agreements and
security documents), in each case as amended through November 3, 2003 and as
such agreements may be amended (including any amendment and restatement
thereof), supplemented or otherwise modified from time to time, including any
agreement extending the maturity of, refinancing, replacing or otherwise
restructuring (including increasing the amount of available borrowings
thereunder or adding Restricted Subsidiaries of the Company as additional
borrowers or guarantors thereunder) all or any portion of the Indebtedness
under such agreement or any successor or replacement agreement and whether by
the same or any other agent, lender or group of lenders.

 

“Currency
Agreement” means any foreign exchange contract, currency swap agreement or
other similar agreement or arrangement designed to protect the Company or any
Restricted Subsidiary of the Company against fluctuations in currency values.

 

“Custodian”
has the meaning provided in Section 2.01.

 

“Default”
means an event or condition the occurrence of which is, or with the lapse of
time or the giving of notice or both would be, an Event of Default.

 

“Definitive
Registered Note” means any Note that is not a Global Note and that is
registered in the Register, the form of which is attached hereto as Exhibit
A.

 

“Depositary”
means The Depository Trust Company, its nominees and its respective successors.

 

“Disqualified
Capital Stock” means that portion of any Capital Stock which, by its terms
(or by the terms of any security into which it is convertible or for which it
is exchangeable

 

9

 

at the option
of the holder thereof), or upon the happening of any event (other than an event
which would constitute a Change of Control), matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is
redeemable at the sole option of the holder thereof (except, in each case, upon
the occurrence of a Change of Control), on or prior to the final maturity date
of the Notes.

 

“Domestic
Restricted Subsidiary” means any Restricted Subsidiary of the Company
incorporated or otherwise organized or existing under the laws of the United
States, any state thereof or the District of Columbia.

 

“Events of
Default” has the meaning provided in Section 6.01.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute or statutes thereto.

 

“Exchange
Notes” means the 71/8% Senior Notes due 2013 to be
issued pursuant to this Indenture with respect to Initial Notes issued under
this Indenture from time to time after the Issue Date pursuant to Section 2.14,
pursuant to a Registration Rights Agreement.

 

“Exchange
Offer” has the meaning set forth in any Registration Rights Agreement.

 

“Exchange
Registration Statement” has the meaning set forth in any Registration
Rights Agreement.

 

“Existing
Notes” means the Company’s 10 3/8% Senior Subordinated Notes due 2011 and
101⁄2% Senior Subordinated Notes due 2012.

 

“Factor”
means, collectively, one or more purchasers of receivables under the Factoring
Agreement.

 

“Factoring
Agreement” means one or more receivables purchase agreements (or similar
agreements) entered into by the Company or any of its Restricted Subsidiaries
with the Factor, as the same may be amended, modified, supplemented and/or replaced
from time to time so long as any such replacement agreement is on terms no less
favorable to the Company or any of its Restricted Subsidiaries in any material
respect than those terms set forth in the Factoring Agreement as in effect on
the Issue Date.

 

“fair
market value” means, with respect to any asset or property, the price which
could be negotiated in an arm’s-length, free market transaction, for cash,
between a willing seller and a willing and able buyer, neither of whom is under
undue pressure or compulsion to complete the transaction.  Fair market value shall be determined by the
Board of Directors of the Company acting reasonably and in good faith and shall
be evidenced by a Board Resolution of the Board of Directors of the Company
delivered to the Trustee.

 

“Foreign
Cash Equivalents” means certificates of deposit or bankers’ acceptances of
any bank organized under the laws of Canada or any country that is a member of
the European

 

10

 

Union, whose
short-term commercial paper rating from S&P is at least A-1 or the
equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof,
in each case with maturities of not more than one year from the date of acquisition.

 

“Foreign
Restricted Subsidiary” means any Restricted Subsidiary of the Company that
is not a Domestic Restricted Subsidiary.

 

“Four
Quarter Period” has the meaning given such term in the definition of “Consolidated
Fixed Charge Coverage Ratio.”

 

“GAAP”
means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
may be approved by a significant segment of the  accounting profession of the United States, which are in effect
as of the Issue Date.

 

“GE
Agreement” means the agreement, dated March 10, 1998, between the Company
and General Electric Capital Corporation, as Lessor, as the same may be
amended, modified, supplemented and/or replaced from time to time, providing
for the sale of equipment by the Company to the Lessor and subsequent leaseback
by the Lessor to the Company and/or to certain of the Company’s Subsidiaries in
an aggregate outstanding principal amount not to exceed $20.0 million at any
time.

 

“Global
Notes” means the 144A Global Note(s), the Regulation S Global Note(s),
the IAI Global Note(s) and the Unrestricted Global Notes.

 

“guarantee”
means a direct or indirect guarantee by any Person of any Indebtedness of any
other Person and includes any obligation, direct or indirect, contingent or otherwise,
of such Person:  (1) to purchase or
pay (or advance or supply funds for the purchase or payment of) Indebtedness of
such other Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services
(unless such purchase arrangements are on arm’s-length terms and are entered
into in the ordinary course of business), to take-or-pay, or to maintain
financial statement conditions or otherwise); or (2) entered into for
purposes of assuring in any other manner the obligee of such Indebtedness of
the payment thereof or to protect such obligee against loss in respect thereof
(in whole or in part).  When used
as  verbs, “guarantee” and “guaranteed”
have correlative meanings.

 

“Guarantee”
means any guarantee of the Obligations of the Company under this Indenture and
the Notes by a Guarantor.  When used as
a verb, “Guarantee” shall have a corresponding meaning.

 

“Guarantor”
means:  (1) Manitowoc Crane
Companies, Inc.; Manitowoc Foodservice Companies, Inc.; North Central Crane
& Excavator Sales Corp.; Manitowoc Marine Group, LLC; Environmental Rehab,
Inc.; Manitowoc Western Company, Inc.; Femco Machine Company, Inc.; Manitowoc
Cranes, Inc.; West-Manitowoc, Inc.; Manitowoc Re-Manufacturing, Inc.; Manitowoc
CP, Inc.; Manitowoc MEC, Inc.; Manitowoc Ice, Inc.; Manitowoc Equipment Works,
Inc.; Manitowoc Beverage Systems, Inc.; KMT Refrigeration, Inc.; Diversified 

 

11

 

Refrigeration,
Inc.; Manitowoc FP, Inc.; SerVend Sales Corp.; Manitowoc Beverage Equipment,
Inc.; KMT Sales Corp.; Harford Duracool, LLC; Marinette Marine Corporation;
Grove Investors, Inc.; Grove Holdings, Inc.; Grove Worldwide, Inc.; Grove U.S.
LLC; Crane Acquisition Corp.; and Crane Holding Inc.; and (2) each of the
Company’s Domestic Restricted Subsidiaries that in the future executes a
supplemental indenture in which such Domestic Restricted Subsidiary agrees to
be bound by the terms of this Indenture as a Guarantor; provided that any Person
constituting a Guarantor as described above shall cease to constitute a
Guarantor when its respective Guarantee is released in accordance with the
terms of this Indenture.

 

“Holder”
means any Person shown on the Register as the registered holder, from time to
time, of the Notes.

 

“IAI Global
Note(s)” means one or more Global Notes in the form of Exhibit A
hereto bearing the Global Note Legend and the Private Placement Legend and
deposited with or on behalf of, and registered in the name of, the Depositary
or its nominee that may be issued in a denomination equal to the outstanding
principal amount of the Notes sold to Institutional Accredited Investors in a
transaction that is not registered pursuant to the Securities Act.

 

“incur”
has the meaning given such term in Section 4.03.

 

“Indebtedness”
means, with respect to any Person, without duplication:

 

(1)           all Obligations of
such Person for borrowed money;

 

(2)           all Obligations of
such Person evidenced by bonds, debentures, notes or other similar instruments;

 

(3)           all Capitalized
Lease Obligations of such Person;

 

(4)           all Obligations of
such Person issued or assumed as the deferred purchase price of property, all
conditional sale obligations and all Obligations under any title retention
agreement (but excluding trade accounts payable and other accrued liabilities
arising in the ordinary course of business);

 

(5)           all Obligations for
the reimbursement of any obligor on any letter of credit, banker’s acceptance
or similar credit transaction;

 

(6)           guarantees and other
contingent obligations in respect of Indebtedness referred to in clauses (1)
through (5) above and clause (8) below;

 

(7)           all Obligations of
any other Person of the type referred to in clauses (1) through (6) above that
are secured by any Lien on any property or asset of such Person, the amount of
such Obligation being deemed to be the lesser of the fair market value of such
property or asset or the amount of the Obligation so secured;

 

(8)           all Obligations
under Currency Agreements and interest swap agreements of such Person; and

 

12

 

(9)           all Disqualified
Capital Stock issued by such Person, with the amount of Indebtedness
represented by such Disqualified Capital Stock being equal to the greater of
its voluntary or involuntary liquidation preference and its maximum fixed repurchase
price, but excluding accrued dividends, if any.

 

For purposes
hereof, the “maximum fixed repurchase price” of any Disqualified Capital
Stock which does not have a fixed repurchase price shall be calculated in accordance
with the terms of such Disqualified Capital Stock as if such Disqualified
Capital Stock were purchased on any date on which Indebtedness shall be
required to be determined pursuant to this Indenture, and if such price is
based upon, or measured by, the fair market value of such Disqualified
Capital  Stock, such fair market value
shall be determined reasonably and in good faith by the Board of Directors of
the issuer of such Disqualified Capital Stock.

 

“Indenture”
means this Indenture as originally executed or as it may be amended or
supplemented from time to time by one or more indentures supplemental to this
Indenture entered into pursuant to the applicable provisions of this Indenture.

 

“Indenture
Obligations” has the meaning given such term in Section 11.01.

 

“Independent
Financial Advisor” means a firm: 
(1) that does not, and whose directors, officers and employees or Affiliates
do not, have a direct or indirect financial interest in the Company; and (2)
that, in the judgment of the Board of Directors of the Company, is otherwise
independent and qualified to perform the task for which it is to be engaged.

 

“Indirect
Participant” is defined to mean a Person who holds a Book-Entry Interest
through a Participant.

 

“Initial
Notes” means (i) $150,000,000 aggregate principal amount of 71/8%
Senior Notes due 2013 issued on the Issue Date, substantially in the form of Exhibit
A, and (ii) Additional Notes.

 

“interest”
means, with respect to the Notes, interest on and Additional Interest, if any,
with respect to, the Notes.

 

“Interest
Payment Date” means each semi-annual interest payment date on May 1 and
November 1 of each year, commencing May 1, 2004.

 

“Interest
Swap Obligations” means the obligations of any Person pursuant to any
arrangement with any other Person, whereby, directly or indirectly, such Person
is entitled to receive from time to time periodic payments calculated by
applying either a floating or a fixed rate of interest on a stated notional
amount in exchange for periodic payments made by such other Person calculated
by applying a fixed or a floating rate of interest on the same notional amount
and shall include, without limitation, interest rate swaps, caps, floors,
collars and similar agreements.

 

“Inversion
Transaction” means a transaction or series of related transactions undertaken
to facilitate the global movement of cash assets among affiliated group members
in a

 

13

 

tax efficient
manner pursuant to which (i) a U.S. parent company (“Former Parent”)
becomes a wholly owned subsidiary of a newly organized offshore/foreign entity
or entities (in either case, or together, “New Parent”); (ii) all
of the issued and outstanding capital stock of Former Parent is converted into
an equivalent number of shares of capital stock of a New Parent; and
(iii) the foreign subsidiaries of Former Parent would then be owned by New
Parent, either directly or through a foreign subsidiary of New Parent, and
would be sister companies of Former Parent, and the domestic subsidiaries would
be held through Former Parent as a U.S. subsidiary of New Parent.

 

“Investment”
means, with respect to any Person, any direct or indirect loan or other
extension of credit (including, without limitation, a guarantee) or capital
contribution to (by means of any transfer of cash or other property to others
or any payment for property or services for the account or use of others), or
any purchase or acquisition by such Person of any Capital Stock, bonds, notes,
debentures or other securities or evidences of Indebtedness issued by, any
Person.  “Investment” shall exclude
extensions of trade credit by the Company and its Restricted Subsidiaries on
commercially reasonable terms in accordance with normal trade practices of the
Company or such Restricted Subsidiaries, as the case may be.  If the Company or any Restricted Subsidiary
of the Company sells or otherwise disposes of any Common Stock of any direct or
indirect Wholly Owned Restricted Subsidiary of the Company such that, after
giving effect to any such sale or disposition, the Company no longer owns,
directly or indirectly, 100% of the outstanding Common Stock of such Restricted
Subsidiary, the Company shall be deemed to have made an Investment on the date
of any such sale or disposition equal to the fair market value of the Common
Stock of such Restricted Subsidiary not sold or disposed of.

 

“Issue Date”
means November 6, 2003.

 

“Legal
Defeasance” has the meaning given such term in Section 8.02.

 

“Lien”
means any lien, mortgage, deed of trust, pledge, security interest, charge or
encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature thereof and any agreement to give
any security interest).

 

“Moody’s”
means Moody’s Investors Service, Inc. and its successors.

 

“Net Cash
Proceeds” means, with respect to any Asset Sale, the proceeds in the form
of cash or Cash Equivalents including payments in respect of deferred payment
obligations when received in the form of cash or Cash Equivalents (other than
the portion of any such deferred payment constituting interest) received by the
Company or any of its Restricted Subsidiaries from such Asset Sale net of:

 

(1)           reasonable
out-of-pocket expenses and fees relating to such Asset Sale (including, without
limitation, legal, accounting and investment banking fees and sales
commissions);

 

(2)           taxes paid or payable
after taking into account any reduction in consolidated tax liability due to
available tax credits or deductions and any tax sharing arrangements;

 

14

 

(3)           repayment of
Indebtedness that is secured by the property or assets that are the subject of
such Asset Sale; and

 

(4)           appropriate amounts
to be provided by the Company or any Restricted Subsidiary, as the case may be,
as a reserve, in accordance with GAAP, against any liabilities associated with
such Asset Sale and retained by the Company or any Restricted Subsidiary, as
the case may be, after such Asset Sale, including, without limitation, pension
and other post-employment benefit liabilities, liabilities related to
environmental matters and liabilities under any indemnification obligations
associated with such Asset Sale.

 

“Net
Proceeds Offer” has the meaning provided in Section 4.10(b).

 

“Net
Proceeds Offer Amount” has the meaning provided in Section 4.10(b).

 

“Net
Proceeds Offer Payment Date” has the meaning provided in Section 4.10(b).

 

“Net
Proceeds Offer Trigger Date” has the meaning provided in Section 4.10(b).

 

“Non-payment
Default” has the meaning provided in Section 10.02(b).

 

“Notes”
means, collectively, the Initial Notes, the Private Exchange Notes, if any, and
the Unrestricted Notes.  For purposes of
this Indenture, all Notes shall vote together as one series of Notes under this
Indenture.

 

“Obligations”
means all obligations for principal, premium, interest, penalties, fees,
indemnification, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

 

“Officer”
means any of the following of the Company: 
the Chairman of the Board of Directors, the Chief Executive Officer, the
Chief Financial Officer, the President, any Vice President, the Treasurer or
the Secretary (including interim officers).

 

“Officers’
Certificate” means a certificate signed by two Officers.

 

“144A
Global Note(s)” means one or more Global Note(s) in the form of Exhibit
A hereto bearing the Private Placement Legend and deposited with or on
behalf of, and registered in the name of, the Depositary or its nominee that
will be issued in a principal amount equal to the outstanding principal amount
of the Initial Notes sold in reliance on Rule 144A and deposited with the
Depositary.

 

“Opinion of
Counsel” means a written opinion from legal counsel.  The counsel may be an employee of or counsel
to the Company.

 

“Pari Passu
Indebtedness” means any Indebtedness of the Company or any Guarantor that
ranks pari
passu in right of payment with the Notes or the Guarantee of such
Guarantor as the case may be.

 

15

 

“Participants”
means, with respect to the Depositary, Persons who have accounts with the
Depositary.

 

“Paying
Agent” has the meaning provided in Section 2.04, except that, for the
purposes of Article Eight, the Paying Agent shall not be the Company, any
Guarantor or any Subsidiary of the Company, a Guarantor or an Affiliate of any
of them.  The term “Paying Agent”
includes any additional Paying Agent.

 

“Permitted
Indebtedness” means, without duplication, each of the following:

 

(1)           Indebtedness under
the Notes issued on the Issue Date in an aggregate principal amount not to
exceed $150.0 million and the related Guarantees;

 

(2)           Indebtedness
incurred pursuant to the Credit Agreement in an aggregate principal amount at
any time outstanding not to exceed the greater of:

 

(a)           $475.0 million (i) less the amount of all mandatory
principal payments actually made by the Company or any Restricted Subsidiary
with the Net Cash Proceeds from Asset Sales in respect of the term loans thereunder
(excluding any such payments to the extent refinanced at the time of payment
under a replaced Credit Agreement); and (ii) reduced by any mandatory permanent
repayments of revolving loans made by the Company thereunder (which are
accompanied by a corresponding permanent commitment reduction) with the Net
Cash Proceeds from Asset Sales (excluding any such payments and commitment reductions
to the extent refinanced at the time of payment under a replaced Credit
Agreement); and

 

(b)           the Borrowing Base Amount plus $30.0 million;

 

(3)           Indebtedness of the
Company and its Restricted Subsidiaries outstanding on the Issue Date (other
than Indebtedness under clause (2) above) reduced by the amount of any
scheduled amortization payments or mandatory prepayments when actually paid or
permanent reductions therein;

 

(4)           Interest Swap
Obligations of the Company or any of its Restricted Subsidiaries covering
Indebtedness of the Company or such Restricted Subsidiary; provided, however,
that such Interest Swap Obligations are entered into to protect the Company and
its Restricted Subsidiaries from fluctuations in interest rates on Indebtedness
incurred without violation of this Indenture to the extent the notional
principal amount of such Interest Swap Obligation does not exceed, at the time
of the incurrence thereof, the principal amount of the Indebtedness to which
such Interest Swap Obligation relates;

 

(5)           Indebtedness under
Currency Agreements; provided that in the case of Currency
Agreements which relate to Indebtedness, such Currency Agreements do not
increase the Indebtedness of the Company and its Restricted Subsidiaries outstanding
other than as a result of fluctuations in foreign currency exchange rates or by
reason of fees, indemnities and compensation payable thereunder;

 

16

 

(6)           Indebtedness of a
Restricted Subsidiary of the Company to the Company, to a Guarantor or to
another Wholly Owned Restricted Subsidiary of the Company for so long as such
Indebtedness is held by the Company, such Guarantor, such Wholly Owned
Restricted Subsidiary or the holders of a Lien permitted under this Indenture,
in each case subject to no Lien held by a Person other than the Company, a
Guarantor, such Wholly Owned Restricted Subsidiary or holders of a Lien
permitted under this Indenture; provided that if as of any date any Person
other than the Company, a Guarantor, a Wholly Owned Restricted Subsidiary of
the Company or the holder of a Lien permitted under this Indenture owns or
holds any such Indebtedness or holds a Lien in respect of such Indebtedness,
such date shall be deemed the incurrence of Indebtedness not constituting
Permitted Indebtedness by the issuer of such Indebtedness pursuant to this
clause (6);

 

(7)           Indebtedness of the
Company to a Wholly Owned Restricted Subsidiary of the Company for so long as
such Indebtedness is held by a Wholly Owned Restricted Subsidiary of the
Company or the holders of a Lien permitted under this Indenture, in each case
subject to no Lien other than a Lien permitted under this Indenture; provided
that (a) any Indebtedness of the Company to any Wholly Owned Restricted
Subsidiary of the Company that is not Guarantor is unsecured and subordinated,
pursuant to a written agreement, to the Company’s obligations under this Indenture
and the Notes and (b) if as of any date any Person other than a Wholly
Owned Restricted Subsidiary of the Company or the holder of a Lien permitted
under this Indenture owns or holds any such Indebtedness or any Person holds a
Lien in respect of such Indebtedness, such date shall be deemed the incurrence
of Indebtedness not constituting Permitted Indebtedness by the Company pursuant
to this clause (7);

 

(8)           Indebtedness arising
from the honoring by a bank or other financial institution of a check, draft or
similar instrument inadvertently (except in the case of daylight overdrafts)
drawn against insufficient funds in the ordinary course of business; provided,
however,
that such  Indebtedness is extinguished
within four business days of incurrence;

 

(9)           Indebtedness of the
Company or any of its Restricted Subsidiaries represented by letters of credit
for the account of the Company or such Restricted Subsidiary, as the case may
be, in order to provide security for workers’ compensation claims, payment
obligations in connection with self-insurance or similar requirements in the
ordinary course of business;

 

(10)         Indebtedness
represented by guarantees by the Company or its Restricted Subsidiaries of
Indebtedness otherwise permitted to be incurred under this Indenture; provided
that, in the case of a guarantee by a Restricted Subsidiary, such Restricted Subsidiary
complies with Section 4.12 (to the extent applicable);

 

(11)         Indebtedness of the
Company or any of its Restricted Subsidiaries in respect of bid, payment and
performance bonds, bankers’ acceptances, workers’ compensation claims, surety
or appeal bonds, payment obligations in connection with self-insurance or
similar obligations, and bank overdrafts (and letters of credit in respect
thereof) in the ordinary course of business;

 

17

 

(12)         Indebtedness of the
Company or any Restricted Subsidiary consisting of guarantees, indemnities or
obligations in respect of purchase price adjustments in connection with the
acquisition or disposition of assets;

 

(13)         Indebtedness
represented by Capitalized Lease Obligations and Purchase Money Indebtedness of
the Company and its Restricted Subsidiaries incurred in the ordinary course of
business not to exceed $15.0 million at any one time outstanding;

 

(14)         Indebtedness of
Foreign Restricted Subsidiaries of the Company in an aggregate principal amount
not to exceed $20.0 million under lines of credit to any such Foreign
Restricted Subsidiary from Persons other than the Company or any of its
Subsidiaries, the proceeds of which Indebtedness are used for such Foreign Restricted
Subsidiary’s working capital and other general corporate purposes;

 

(15)         Indebtedness that may
be deemed to exist pursuant to the Factoring Agreement and Indebtedness by a Securitization
Entity in a Qualified Securitization Transaction that is not recourse (except
for Standard Securitization Undertakings) to the Company or any of its
Restricted Subsidiaries; provided that any amounts incurred under
this clause (15) in excess of $50.0 million will reduce the amounts available
for borrowing under clause (2) above in an equal amount;

 

(16)         Indebtedness of the
Company evidenced by commercial paper issued by the Company; provided
that the aggregate outstanding principal amount of Indebtedness incurred
pursuant to clause (2) of this definition and this clause (16) does not exceed
the maximum amount of Indebtedness permitted under clause (2) of this definition;

 

(17)         Refinancing
Indebtedness;

 

(18)         Indebtedness of the
Company or any of its Restricted Subsidiaries consisting of obligations to
repurchase equipment incurred in the ordinary course of business, to the extent
such obligations do not exceed the fair market value of such equipment; and

 

(19)         additional
Indebtedness of the Company and its Restricted Subsidiaries in an aggregate
principal amount not to exceed $30.0 million at any one time outstanding (which
amount may, but need not, be incurred in whole or in part under the Credit Agreement).

 

For purposes
of determining any particular amount of Indebtedness under Section 4.03,
guarantees, Liens or letter of credit obligations supporting Indebtedness
otherwise included in the determination of such particular amount shall not be
included.  For purposes of determining
compliance with Section 4.03, in the event that an item of Indebtedness meets
the criteria of more than one of the categories of Permitted Indebtedness
described in clauses (1) through (19) above or is permitted to be incurred
pursuant to the Consolidated Fixed Charge Coverage Ratio provisions of such
section, the Company shall, in its sole discretion, classify (or later
reclassify) such item of Indebtedness in any manner that complies with such
section. Accrual of interest, accretion or amortization of original issue
discount, the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, the payment of

 

18

 

dividends on
Disqualified Capital Stock in the form of additional shares of the same class
of Disqualified Capital Stock and change in the amount outstanding due solely
to the result of fluctuations in the exchange rates of currencies will not be
deemed to be an incurrence of Indebtedness or an issuance of Disqualified
Capital Stock for purposes of Section 4.03.

 

“Permitted
Investments” means:

 

(1)           Investments by the
Company or any Restricted Subsidiary of the Company in any Person that is or
will become immediately after such Investment a Wholly Owned Restricted
Subsidiary of the Company or that will merge or consolidate into the Company or
a Wholly Owned Domestic Restricted Subsidiary of the Company and other Investments
to the extent constituting intercompany Indebtedness permitted under clause (6)
or (7) of the definition of “Permitted Indebtedness”;

 

(2)           Investments in the
Company by any Restricted Subsidiary of the Company; provided that any
Indebtedness evidencing such Investment, to the extent held by a Restricted
Subsidiary that is not a Guarantor, is unsecured and subordinated, pursuant to
a written agreement, to the Company’s obligations under the Notes and this Indenture;

 

(3)           Investments in cash
and Cash Equivalents;

 

(4)           loans and advances
to employees and officers of the Company and its Restricted Subsidiaries in the
ordinary course of business for bona fide business purposes not in excess of
$2.0 million at any one time outstanding;

 

(5)           Currency Agreements
and Interest Swap Obligations entered into in the ordinary course of the
Company’s or its Restricted Subsidiaries’ businesses and otherwise in
compliance with this Indenture;

 

(6)           additional
Investments not to exceed $15.0 million at any one time outstanding;

 

(7)           Investments in
securities of trade creditors or customers received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers or in good faith settlement of delinquent
obligations of such trade creditors or customers;

 

(8)           Investments made by
the Company or its Restricted Subsidiaries as a result of consideration
received in connection with an Asset Sale made in compliance with Section 4.10;

 

(9)           Investments
represented by guarantees that are otherwise permitted under this Indenture;

 

(10)         Investments the
payment for which is Qualified Capital Stock of the Company;

 

19

 

(11)         any Investment by the
Company or a Wholly Owned Subsidiary of the Company in a Securitization Entity
or any Investment by a Securitization Entity in any other Person in connection
with a Qualified Securitization Transaction; provided that any Investment
in a Securitization Entity is in the form of a Purchase Money Note or an equity
interest;

 

(12)         Investments by the
Company consisting of obligations of one or more officers, directors or other
employees of the Company or any of its Subsidiaries in connection with such
officers’, directors’ or employees’ acquisition of shares of capital stock of
the Company so long as no cash is paid by the Company or any of its Subsidiaries
to such officers, directors or employees in connection with the acquisition of
any such obligations; and

 

(13)         Investments in joint
ventures not to exceed $15.0 million at any one time outstanding.

 

“Permitted
Liens” means the following types of Liens:

 

(1)           Liens for taxes,
assessments or governmental charges or claims either (a) not delinquent or (b)
contested in good faith by appropriate proceedings and as to which the Company
or its Restricted Subsidiaries shall have set aside on their books such reserves
as may be required pursuant to GAAP;

 

(2)           statutory Liens of
landlords and Liens of carriers, warehousemen, mechanics, suppliers,
materialmen and repairmen and other Liens imposed by law incurred in the ordinary
course of business for sums not yet delinquent or being contested in good
faith, if such reserve or other appropriate provision, if any, as shall be
required by GAAP has been made in respect thereof;

 

(3)           Liens incurred or
deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security,
including any Lien securing letters of credit issued in the ordinary course of
business consistent with past practice in connection therewith, or to secure
the performance of tenders, statutory obligations, surety and appeal bonds,
bids, leases, government contracts, performance and return-of-money bonds and
other similar obligations (exclusive of obligations for the payment of borrowed
money);

 

(4)           judgment Liens not
giving rise to an Event of Default so long as such Lien is adequately bonded
and any appropriate legal proceedings which may have been duly initiated for
the review of such judgment shall not have been finally terminated or the
period within which such proceedings may be initiated shall not have expired;

 

(5)           easements,
rights-of-way, zoning restrictions and other similar charges or encumbrances in
respect of real property not interfering in any material respect with the
ordinary conduct of the business of the Company or any of its Restricted Subsidiaries;

 

20

 

(6)           Liens upon specific
items of inventory or other goods and proceeds of any Person securing such
Person’s obligations in respect of bankers’ acceptances issued or created for
the account of such Person to facilitate the purchase, shipment or storage of
such inventory or other goods;

 

(7)           Liens securing
reimbursement obligations with respect to commercial letters of credit which
encumber documents and other property relating to such letters of credit and
products and proceeds thereof;

 

(8)           Liens encumbering
deposits made to secure obligations arising from statutory, regulatory,
contractual or warranty requirements of the Company or any of its Restricted
Subsidiaries, including rights of offset and set-off;

 

(9)           Liens securing
Interest Swap Obligations which Interest Swap Obligations relate to
Indebtedness that is otherwise permitted under this Indenture;

 

(10)         Liens securing
Capitalized Lease Obligations and Purchase Money Indebtedness permitted
pursuant to clause (13) of the definition of “Permitted Indebtedness”; provided,
however,
that in the case of Purchase Money Indebtedness (a) the Indebtedness shall
not exceed the cost of such property or assets and shall not be secured by any
property or assets of the Company or any Restricted Subsidiary of the Company
other than the property and assets so acquired or constructed and (b) the
Lien securing such Indebtedness shall be created within 90 days of such
acquisition or construction or, in the case of a refinancing of any Purchase
Money Indebtedness, within 90 days of such refinancing;

 

(11)         Liens securing
Indebtedness under Currency Agreements;

 

(12)         Liens securing
Acquired Indebtedness incurred in accordance with Section 4.03; provided
that:

 

(a)           such Liens secured such Acquired Indebtedness at the time
of and prior to the incurrence of such Acquired Indebtedness by the Company or
a Restricted Subsidiary of the Company and were not granted in connection with,
or in anticipation of, the incurrence of such Acquired Indebtedness by the
Company or a Restricted Subsidiary of the Company; and

 

(b)           such Liens do not extend to or cover any property or
assets of the Company or of any of its Restricted Subsidiaries other than the
property or assets that secured the Acquired Indebtedness prior to the time
such Indebtedness became Acquired Indebtedness of the Company or a Restricted
Subsidiary of the Company and are no more favorable to the lienholders than
those securing the Acquired Indebtedness prior to the incurrence of such Acquired
Indebtedness by the Company or a Restricted Subsidiary of the Company;

 

21

 

(13)         Liens on assets of a
Restricted Subsidiary of the Company that is not a Guarantor to secure
Indebtedness of such Restricted Subsidiary that is otherwise permitted under
this Indenture;

 

(14)         Liens on assets
transferred to a Securitization Entity or on assets of a Securitization Entity,
in either case incurred in connection with a Qualified Securitization Transaction,
and Liens in favor of the Factor solely on those accounts receivable (and the
rights ancillary thereto) of the Company and its Restricted Subsidiaries that
are purchased by the Factor pursuant to the Factoring Agreement from time to
time;

 

(15)         leases, subleases,
licenses and sublicenses granted to others that do not materially interfere
with the ordinary course of business of the Company and its Restricted Subsidiaries;

 

(16)         banker’s Liens,
rights of set-off and similar Liens with respect to cash and Cash Equivalents
on deposit in one or more bank accounts in the ordinary course of business;

 

(17)         Liens arising from
filing Uniform Commercial Code financing statements regarding leases;

 

(18)         Liens in favor of
customs and revenue authorities arising as a matter of law to secure payment of
customs duties in connection with the importation of goods;

 

(19)         rights of customers
with respect to inventory which arise from deposits and progress payments made
in the ordinary course of business; and

 

(20)         additional Liens not
to exceed $5.0 million at any one time.

 

“Person”
means an individual, partnership, corporation, limited liability company,
unincorporated organization, trust or joint venture, or a governmental agency
or political subdivision thereof.

 

“Preferred
Stock” of any Person means any Capital Stock of such Person that has
preferential rights to any other Capital Stock of such Person with respect to
dividends or redemptions or upon liquidation.

 

“principal”
means, with respect to the Notes, the principal of, and premium, if any, on the
Notes.

 

“Private
Exchange Notes” has the meaning given such term in any Registration Rights
Agreement.

 

“Private
Placement Legend” means the legend initially set forth on the Restricted
Notes in the form set forth in Section 2.02(a).

 

“Public
Equity Offering” has the meaning set forth in Section 3.01(b).

 

22

 

“Purchase
Money Indebtedness” means Indebtedness of the Company and its Restricted
Subsidiaries incurred in the normal course of business for the purpose of
financing all or any part of the purchase price, or the cost of installation,
construction or improvement, of property or equipment.

 

“Purchase
Money Note” means a promissory note of a Securitization Entity evidencing a
line of credit, which may be irrevocable, from the Company or any Subsidiary of
the Company in connection with a Qualified Securitization Transaction to a
Securitization Entity, which note shall be repaid from cash available to the
Securitization Entity other than amounts required to be established as reserves
pursuant to agreements, amounts paid to investors in respect of interest and
principal and amounts paid in connection with the purchase of newly generated
receivables or newly acquired equipment.

 

“QIB”
means a “qualified institutional buyer” as defined in Rule 144A.

 

“Qualified
Capital Stock” means any Capital Stock that is not Disqualified Capital
Stock.

 

“Qualified
Securitization Transaction” means any transaction or series of transactions
that may be entered into by the Company, any of its Restricted Subsidiaries or
a Securitization Entity pursuant to which the Company or such Restricted Subsidiary
or such Securitization Entity may, pursuant to customary terms, sell, convey or
otherwise transfer to, or grant a security interest in for the benefit of,
(1) a Securitization Entity or the Company or any of its Restricted
Subsidiaries that subsequently transfers to a Securitization Entity (in the
case of a transfer by the Company or such Restricted Subsidiary) and
(2) any other Person (in the case of transfer by a Securitization Entity),
any accounts receivable (whether now existing or arising or acquired in the
future) of the Company or any of its Restricted Subsidiaries that arose in the
ordinary course of business of the Company and its Restricted Subsidiaries, and
any assets related thereto, including, without limitation, all collateral
securing such accounts receivable, all contracts and contract rights and all
guarantees or other obligations in respect of such accounts receivable, proceeds
of such accounts receivable and other assets (including contract rights) that
are customarily transferred or in respect of which security interests are
customarily granted in connection with asset securitization transactions
involving accounts receivable.

 

“redeem”
means to redeem, repurchase, purchase, defease, retire, discharge or otherwise
acquire or retire for value; and “redemption” shall have a correlative
meaning.

 

“Redemption
Date,” when used with respect to any Note to be redeemed, means the date
fixed for such redemption by or pursuant to this Indenture.

 

“Redemption
Price,” when used with respect to any Note to be redeemed, means the price
at which such Note is to be redeemed pursuant to this Indenture.

 

“Reference
Date” has the meaning provided in Section 4.05.

 

“Refinance”
means, in respect of any security or Indebtedness, to refinance, extend, renew,
refund, repay, prepay, redeem, defease or retire, or to issue a security or
Indebtedness

 

23

 

in exchange or
replacement for, such security or Indebtedness in whole or in part.  “Refinanced” and “Refinancing”
shall have correlative meanings.

 

“Refinancing
Indebtedness” means any Refinancing by the Company or any Restricted
Subsidiary of the Company of Indebtedness incurred in accordance with Section
4.03 (other than pursuant to clauses (2), (4), (5), (6), (7), (8), (9), (10),
(11), (12), (13), (14), (15), (16), (17), (18) or (19) of the definition of
“Permitted Indebtedness”), in each case, that does not:

 

(1)           result in an
increase in the aggregate principal amount of Indebtedness of such Person as of
the date of such proposed Refinancing (plus the amount of any premium required
to be paid under the terms of the instrument governing such Indebtedness and
plus the amount of reasonable expenses incurred by the Company in connection
with such Refinancing); or

 

(2)           create Indebtedness
with:  (a) a Weighted Average Life
to Maturity that is less than the Weighted Average Life to Maturity of the
Indebtedness being Refinanced; or (b) a final maturity earlier than the
final maturity of the Indebtedness being Refinanced; provided that (x) if
such Indebtedness being Refinanced is Indebtedness solely of the Company, then
such Refinancing Indebtedness shall be Indebtedness solely of the Company and
(y) if such Indebtedness being Refinanced is subordinate or junior to the
Notes, then such Refinancing Indebtedness shall be subordinate to the Notes at
least to the same extent and in the same manner as the Indebtedness being Refinanced.

 

“Register”
has the meaning provided in Section 2.04.

 

“Registrar”
has the meaning provided in Section 2.04.

 

“Registration”
means, collectively, each offer of Notes registered pursuant to a Registration
Statement.

 

“Registration
Rights Agreement” means with respect to each issuance of Additional Notes
in a transaction exempt from the registration requirements of the Securities
Act, the registration rights agreement among the Company and the Persons purchasing
the Additional Notes.

 

“Registration
Statement” means the Exchange Registration Statement or a Shelf
Registration as defined and described in any Registration Rights Agreement.

 

“Regular
Record Date” for the interest payable on any Interest Payment Date means
the April 15 or October 15 (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date.

 

“Regulation S”
means Regulation S under the Securities Act.

 

“Regulation S
Global Note(s)” means one or more Global Notes in the form of Exhibit A
hereto bearing the Private Placement Legend and deposited with or on behalf of,
and

 

24

 

registered in
the name of, the Depositary or its nominee that will be issued in a principal
amount equal to the outstanding principal amount of the Initial Notes sold in
reliance on Regulation S.

 

“Replacement
Assets” has the meaning provided in Section 4.10(a)(3)(b).

 

“Responsible
Officer,” when used with respect to the Trustee or any Paying Agent means
any vice president, any assistant vice president, any assistant treasurer, any
trust officer or assistant trust officer or any other officer of the Trustee or
such Paying Agent, as the case may be, customarily performing functions similar
to those performed by any of the above designated officers in each case
assigned to or employed by the corporate trust department of the Trustee or
such Paying Agent, as the case may be, and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his or her knowledge of and familiarity with the particular subject
and who shall have direct responsibility for the administration of this Indenture.

 

“Restricted
Definitive Registered Note” means a Definitive Registered Note bearing the
Private Placement Legend issued in registered form without coupons in a
principal amount of $1,000 or integral multiples thereof.

 

“Restricted
Global Notes” means the 144A Global Note(s), IAI Global Note(s) and the
Regulation S Global Note(s).

 

“Restricted
Notes” means the Restricted Definitive Registered Notes and the Restricted
Global Note(s).

 

“Restricted
Payment” has the meaning provided in Section 4.05.

 

“Restricted
Subsidiary” of any Person means any Subsidiary of such Person which at the
time of determination is not an Unrestricted Subsidiary.

 

“Rule 144A”
means Rule 144A under the Securities Act.

 

“S&P”
means Standard & Poor’s Ratings Services, a division of the McGraw-Hill
Companies, Inc., and its successors.

 

“Sale and
Leaseback Transaction” means any direct or indirect arrangement with any
Person or to which any such Person is a party, providing for the leasing to the
Company or a Restricted Subsidiary of any property, whether owned by the Company
or any Restricted Subsidiary at the Issue Date or later acquired, which has
been or is to be sold or transferred by the Company or such Restricted
Subsidiary to such Person or to any other Person from whom funds have been or
are to be advanced by such Person on the security of such Property.

 

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

 

“Securitization
Entity” means a Wholly Owned Subsidiary of the Company (or another Person
in which the Company or any Subsidiary of the Company makes an Investment and
to which the Company or any Subsidiary of the Company transfers accounts receivable
and

 

25

 

related
assets) that engages in no activities other than in connection with the
financing of accounts receivable and that is designated by the Board of
Directors of the Company (as provided below) as a Securitization Entity; and

 

(1)           no portion of the
Indebtedness or any other obligations (contingent or otherwise) of which:

 

(a)           is guaranteed by the Company or any Restricted Subsidiary of
the Company (other than the Securitization Entity) (excluding guarantees of
obligations (other than the principal of, and interest on, Indebtedness))
pursuant to Standard Securitization Undertakings,

 

(b)           is recourse to or obligates the Company or any Restricted
Subsidiary of the Company (other than the Securitization Entity) in any way
other than pursuant to Standard Securitization Undertakings or

 

(c)           subjects any asset of the Company or any Restricted Subsidiary
of the Company (other than the Securitization Entity), directly or indirectly,
contingently or otherwise, to the satisfaction thereof, other than pursuant to
Standard Securitization Undertakings and other than any interest in the accounts
receivable and related assets being financed (whether in the form of an equity
interest in such assets or subordinated indebtedness payable primarily from
such financed assets), retained or acquired by the Company or any Restricted
Subsidiary of the Company;

 

(2)           with which neither
the Company nor any Restricted Subsidiary of the Company has any material
contract, agreement, arrangement or understanding other than on terms no less
favorable to the Company or such Restricted Subsidiary than those that might be
obtained at the time from Persons that are not Affiliates of the Company, other
than fees payable in the ordinary course of business in connection with
servicing receivables of such entity; and

 

(3)           to which neither the
Company nor any Restricted Subsidiary of the Company has any obligation to maintain
or preserve such entity’s financial condition or cause such entity to achieve
certain levels of operating results.

 

Any such
designation by the Board of Directors of the Company shall be evidenced to the
Trustee by filing with the Trustee a certified copy of the Board Resolution
giving effect to such designation and an Officers’ Certificate certifying that
such designation complied with the foregoing conditions.

 

“Shelf
Registration” means the Shelf Registration as defined in any Registration
Rights Agreement.

 

“Significant
Subsidiary,” with respect to any Person, means any Restricted Subsidiary of
such Person that satisfies the criteria for a “significant subsidiary” set
forth in Rule 1-02(w) of Regulation S-X under the Securities Act.

 

26

 

“Standard
Securitization Undertakings” means representations, warranties, covenants
and indemnities entered into by the Company or any Subsidiary of the Company
that are reasonably customary in an accounts receivable securitization
transaction.

 

“Stated
Maturity” means, with respect to any installment of interest or principal
on any Indebtedness, the date on which such payment of interest or principal is
scheduled to be paid in the documentation governing such Indebtedness (after
giving effect to any amendments, modifications or waivers thereto), and shall
not include any contingent obligations to repay, redeem or repurchase any such
interest or principal prior to the date originally scheduled for the payment
thereof.

 

“Subordinated
Indebtedness” means Indebtedness of the Company or any Guarantor that is
subordinated or junior in right of payment to the Notes or the Guarantee of
such Guarantor, as the case may be.

 

“Subsidiary,”
with respect to any Person, means:

 

(1)           any corporation of
which the outstanding Capital Stock having at least a majority of the votes
entitled to be cast in the election of directors under ordinary circumstances
shall at the time be owned, directly or indirectly, by such Person; or

 

(2)           any other Person of which
at least a majority of the voting interest under ordinary circumstances is at
the time, directly or indirectly, owned by such Person.

 

“Supplemental
Indenture” means a supplemental indenture to be substantially in the form
of this Indenture (except that all references to Inversion Transactions shall
have been deleted) executed and delivered to the Trustee, pursuant to which
each New Parent (i) will become a Guarantor of the Notes by executing a
Guarantee in the form attached as Exhibit E hereto, and (ii) becomes
subject to the covenants contained in this Indenture as described in such
supplemental indenture.

 

“Surviving
Entity” has the meaning given such term in Section 5.01(a)(1)(B).

 

“TIA”
or “Trust Indenture Act” means the Trust Indenture Act of 1939, as
amended (15 U.S. Code Sections 77aaa-77bbb), as in effect on the date this
Indenture was executed, except as provided in Section 9.06.

 

“Transaction
Date” has the meaning given such term in the definition of “Consolidated
Fixed Charge Coverage Ratio.”

 

“Transfer
Agent” means BNY Midwest Trust Company in its capacity as transfer agent.

 

“Trustee”
means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of Article Seven and thereafter
means such successor.

 

27

 

“Unrestricted
Definitive Registered Note” means a Definitive Registered Note not bearing
the Private Placement Legend issued in registered form without coupons in a principal
amount of $1,000 or integral multiples thereof, including, without limitation,
the Exchange Notes.

 

“Unrestricted
Global Note” means one or more Global Note(s) not bearing the Private
Placement Legend issued in registered form without interest coupons in a
principal amount of $1,000 or integral multiples thereof, and deposited with
the Depositary, including, without limitation, the Initial Notes issued on the
Issue Date and the Exchange Notes.

 

“Unrestricted
Notes” means the Unrestricted Global Notes and the Unrestricted Definitive
Registered Notes.

 

“Unrestricted
Subsidiary” of any Person means:

 

(1)           any Subsidiary of
such Person that at the time of determination shall be or continue to be
designated an Unrestricted Subsidiary by the Board of Directors of such Person
in the manner provided below; and

 

(2)           any Subsidiary of an
Unrestricted Subsidiary.

 

The Board of
Directors may designate any Subsidiary (including any newly acquired or newly
formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns
any Capital Stock of, or owns or holds any Lien on any property of, the Company
or any other Subsidiary of the Company that is not a Subsidiary of the
Subsidiary to be so designated; provided that:

 

(1)           the Company
certifies to the Trustee that such designation complies with Section 4.05; and

 

(2)           each Subsidiary to
be so designated and each of its Subsidiaries has not at the time of
designation, and does not thereafter, create, incur, issue, assume, guarantee
or otherwise become directly or indirectly liable with respect to any Indebtedness
pursuant to which the lender has recourse to any of the assets of the Company
or any of its Restricted Subsidiaries.

 

The Board of
Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary
only if:

 

(1)           immediately after
giving effect to such designation, the Company is able to incur at least $1.00
of additional Indebtedness (other than Permitted Indebtedness) in compliance
with Section 4.03; and

 

(2)           immediately before
and immediately after giving effect to such designation, no Default or Event of
Default shall have occurred and be continuing.

 

28

 

Any such
designation by the Board of Directors shall be evidenced to the Trustee by promptly
filing with the Trustee a copy of the Board Resolution giving effect to such
designation and an Officers’ Certificate certifying that such designation
complied with the foregoing provisions.

 

“U.S.
Government Obligations” means securities issued or directly and fully
guaranteed or insured by the government of the United States of America rated
AAA or better by S&P and Aaa or better by Moody’s.

 

“Weighted
Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing (a) the then outstanding
aggregate principal amount of such Indebtedness into (b) the sum of the total
of the products obtained by multiplying (i) the amount of each then remaining
installment, sinking fund, serial maturity or other required payment of
principal, including payment at final maturity, in respect thereof, by (ii) the
number of years (calculated to the nearest one-twelfth) which will elapse
between such date and the making of such payment.

 

“Wholly
Owned Restricted Subsidiary” of any Person means any Wholly Owned
Subsidiary of such Person which at the time of determination is a Restricted
Subsidiary of such Person.

 

“Wholly
Owned Subsidiary” of any Person means any Subsidiary of such Person of
which all the outstanding voting securities (other than in the case of a
Restricted Subsidiary that is incorporated in a jurisdiction other than a state
in the United States or the District of Columbia, directors’ qualifying shares
or an immaterial amount of shares required to be owned by other Persons pursuant
to applicable law are owned by such Person or any Wholly Owned Subsidiary of
such Person.

 

SECTION 1.02.            Incorporation by Reference of
Trust Indenture Act.  Whenever this
Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following
meanings:

 

“indenture
notes” means the Notes;

 

“indenture
note holder” means a Holder or a Noteholder;

 

“indenture to
be qualified” means this Indenture;

 

“indenture
trustee” or “institutional trustee” means the Trustee; and

 

“obligor” on
the indenture securities means the Company or any other obligor on the Notes.

 

All other TIA
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by a rule of the Commission and not
otherwise defined herein have the meanings assigned to them therein.

 

29

 

SECTION 1.03.            Rules of Construction.  Unless the context otherwise requires:

 

(i)            a term has the
meaning assigned to it;

 

(ii)           an accounting term
not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(iii)          “or” is not
exclusive;

 

(iv)          words in the
singular include the plural, and words in the plural include the singular;

 

(v)           provisions apply to
successive related events and transactions;

 

(vi)          “herein,” “hereof”
and other words of similar import refer to this Indenture as a whole and not to
any particular Article, Section or other subdivision;

 

(vii)         all ratios and
computations based on GAAP contained in this Indenture shall be computed in
accordance with the definition of “GAAP” set forth in Section 1.01;

 

(viii)        all references to
Sections or Articles refer to Sections or Articles of this Indenture unless
otherwise indicated;

 

(ix)           all references to
“$,” “Dollars,” “U.S. Dollars” or money refer to the lawful currency of the
United States, unless the content expressly contemplates otherwise.

 

ARTICLE TWO

THE NOTES

 

SECTION 2.01.            The Notes.

 

(a)           Form and Dating.  The Notes and the Trustee’s certificate of
authentication thereon shall be substantially in the form annexed hereto as Exhibit
A with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture.  The Notes may have notations, legends or
endorsements required by law, stock exchange agreements to which the Company is
subject or usage.  The Company shall
approve the form of the Notes and any notation, legend or endorsement on the
Notes.  Each Note shall be dated the
date of its authentication.

 

The terms and
provisions contained in the forms of the Notes annexed hereto as Exhibit A
shall constitute, and are hereby expressly made, a part of this Indenture.  The Global Notes and the Definitive
Registered Notes shall be issued only in registered form.  The Notes shall be issued without
coupons.  The Notes shall be issued only
in denominations of $1,000 principal amount or any integral multiple thereof.  To the extent applicable, the Company, the
Guarantors and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.

 

30

 

(b)           Global Notes.  Initial Notes offered and sold in reliance
on Rule 144A shall be issued in the form of one or more 144A Global Notes,
deposited with the Trustee, as custodian for the Depositary (in such capacity
the “Custodian”), duly executed by the Company and authenticated by the
Trustee as hereinafter provided.  The aggregate
principal amount of the 144A Global Note may from time to time be increased or
decreased by adjustments made on Schedule A to each Global Note, as hereinafter
provided.

 

Initial Notes
offered and sold in offshore transactions in reliance on Regulation S shall be
issued initially in the form of one or more Regulation S Global Notes
deposited with the Custodian, duly executed by the Company and authenticated by
the Trustee as hereinafter provided. 
The aggregate principal amount of the Regulation S Global Note may
from time to time be increased or decreased by adjustments made on Schedule A
to each Global Note, as hereinafter provided.

 

Initial Notes
sold in transactions that are registered under the Securities Act shall be
issued as Unrestricted Global Notes.  In
addition, Unrestricted Global Notes shall be issued in accordance with Sections
2.07(b)(iii), 2.07(d)(iii) and 2.07(f), and shall be deposited with the Depositary,
duly executed by the Company and authenticated by the Trustee as hereinafter provided.

 

Each Global
Note shall represent such of the outstanding Notes as shall be specified
therein and each shall provide that it shall represent the aggregate principal
amount outstanding of Notes from time to time endorsed thereon and that the
aggregate principal amount of outstanding Notes represented thereby may from
time to time be reduced or increased, as appropriate, to reflect exchanges,
transfers of interests therein, redemptions and repurchases in accordance with
the terms of this Indenture.  Any endorsement
of Schedule A to a Global Note to reflect the amount of any increase or
decrease in the aggregate principal amount of Notes represented thereby shall
be made by the Trustee, the Paying Agent or the Registrar in accordance with
Sections 2.07 (Transfer and Exchange), 3.04 (Notice of Redemption), 4.10
(Limitation on Asset Sales) and 4.11 (Repurchase of Notes upon a Change of Control).

 

Except as set
forth in Section 2.07(a), the Global Notes may be transferred, in whole and not
in part, only to a successor of the Custodian.

 

(c)           Definitive
Registered Notes.  Definitive
Registered Notes issued upon transfer of a Book-Entry Interest or a Definitive
Registered Note, or in exchange for a Book-Entry Interest or a Definitive
Registered Note, shall be issued in accordance with this Indenture, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided.  The Definitive Registered
Notes shall be typed, printed, lithographed or engraved or produced by any
combination of these methods or may be produced in any other manner permitted
by the rules of any securities exchange on which the Notes may be listed, all
as determined by the Officers executing such Notes, as evidenced by their
execution of such Notes.

 

(d)           Book-Entry
Provisions.  Participants and
Indirect Participants shall have no rights either under this Indenture or under
any Global Note with respect to such Global Note held on their behalf by the
Custodian.  Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any Agent
of the Company or the Trustee from giving effect to

 

31

 

any written
certification, proxy or other authorization furnished by the Depositary or
impair, as between the Depositary and its Participants, the operation of
customary practices of the Depositary governing the exercise of the rights of
an owner of a beneficial interest in any Global Note.

 

SECTION 2.02.            Restrictive Legends.

 

(a)           Private Placement
Legend.  Except as permitted by
subparagraph (b) below, each Restricted Global Note and each Restricted
Definitive Registered Note (and all Notes issued in exchange therefor or
substitution thereof) issued under this Indenture shall bear a legend in substantially
the following form:

 

THIS SECURITY
HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS
SET FORTH BELOW.  BY ITS ACQUISITION
HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) IT IS NOT A U.S.
PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE
WITH RULE 904 UNDER THE SECURITIES ACT OR (C) IT IS AN ACCREDITED INVESTOR (AS
DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) (AN
“ACCREDITED INVESTOR”), (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE
ORIGINAL ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY
EXCEPT (A) TO THE MANITOWOC COMPANY, INC. OR ANY SUBSIDIARY THEREOF, (B) INSIDE
THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE
144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED
INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF
BY A U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTION ON TRANSFER OF THIS
SECURITY (WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS SECURITY), (D)
OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE
904 UNDER THE SECURITIES ACT (IF AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (F)
IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE MANITOWOC COMPANY,
INC. SO REQUESTS), OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS
SECURITY IS TRANSFERRED A NOTICE

 

32

 

SUBSTANTIALLY
TO THE EFFECT OF THIS LEGEND.  IN
CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER THE
ORIGINAL ISSUANCE OF THIS SECURITY, IF THE PROPOSED TRANSFEREE IS AN ACCREDITED
INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND
THE MANITOWOC COMPANY, INC. SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION
AS THE MANITOWOC COMPANY, INC. MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,”
“UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION
S UNDER THE SECURITIES ACT.

 

(b)           Notwithstanding the
foregoing, any Global Note or Definitive Registered Note issued pursuant to
subparagraph (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii) or (f) of
Section 2.07 (and all Notes issued in exchange therefor or substitution
thereof) shall not bear the Private Placement Legend.

 

Each Global
Note, if the Company so elects, may also bear the following legend on the face
thereof:

 

THIS NOTE IS A
GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A NOMINEE OF THE DEPOSITARY.  THIS NOTE IS NOT EXCHANGEABLE FOR SECURITIES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER
OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE TO THE DEPOSITARY
OR A NOMINEE OF THE DEPOSITARY OR TO ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE
REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

THIS NOTE IS
HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) IN
CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE
TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE, (II) EXCEPT AS OTHERWISE PROVIDED IN THE INDENTURE, THIS
GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07
OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE

 

33

 

AND (IV) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY.

 

SECTION 2.03.            Execution and Authentication.  The Notes shall be executed by an Officer or
an authorized signatory as identified in an Officers’ Certificate (pursuant to
a power of attorney or other similar instrument).  The signature of any such Officer (or authorized signatory) on
the Notes shall be by manual or facsimile signature in the name and on behalf
of the Company.

 

If an Officer
whose signature is on a Note no longer holds that office at the time the
Trustee or authenticating agent authenticates the Note, the Note shall be valid
nevertheless.

 

A Note shall
not be valid until the Trustee or authenticating agent manually signs the
certificate of authentication on the Note. 
The signature shall be conclusive evidence that the Note has been
authenticated under this Indenture.

 

The Trustee or
an authenticating agent shall, upon receipt of a Company Order, authenticate
(i) Initial Notes for original issue in an unlimited aggregate principal
amount, of which $150,000,000 are being issued on the Issue Date, (ii) Private
Exchange Notes from time to time only in exchange for a like principal amount
of Additional Notes, (iii) Unrestricted Notes from time to time only in
exchange for a like principal amount of Additional Notes, and
(iv) Additional Notes issued pursuant to Section 2.14.  Each such Company Order shall specify the
amount of Notes to be authenticated and the date on which the Notes are to be
authenticated, whether the Notes are to be Initial Notes, Private Exchange
Notes or Unrestricted Notes and whether the Notes are to be issued as
Definitive Registered Notes or Global Notes or such other information as the
Trustee may reasonably request.  In
addition, with respect to authentication pursuant to clauses (ii) or (iii) of
the first sentence of this paragraph, the first such written order from the Issuer
shall be accompanied by an Opinion of Counsel of the Issuer in a form
reasonably satisfactory to the Trustee stating that the issuance of the Private
Exchange Notes or the Unrestricted Notes, as the case may be, does not give
rise to an Event of Default, complies with this Indenture and has been duly
authorized by the Issuer.

 

The Trustee
may appoint an authenticating agent to authenticate Notes.  An authenticating agent may authenticate
Notes whenever the Trustee may do so. 
Each reference in this Indenture to authentication by the Trustee
includes authentication by such authenticating agent.  An authenticating agent has the same rights as an Agent to deal
with the Company or an Affiliate of the Company.

 

The Notes
shall be issuable only in registered form without coupons and only in minimum
denominations of $ 1,000 in principal amount and any integral multiples of
$1,000 in excess thereof.

 

SECTION 2.04.            Registrar and Paying Agent.  The Company shall maintain an office or
agency in Chicago, Illinois where (a) Notes may be presented or
surrendered for registration of transfer or for exchange (“Registrar”),
(b) Notes may be presented or surrendered for payment (the “Paying
Agent”) and (c) notices and demands in respect of the Notes and this Indenture

 

34

 

may be
served.  The Registrar shall keep a
register or registers of the Notes and of their transfer and exchange.  The Company, upon notice to the Trustee, may
appoint one or more co-Registrars and one or more additional Paying
Agents.  The term “Paying Agent”
includes any additional Paying Agent. 
Except as provided herein, the Company or any Subsidiary may act as
Paying Agent, Registrar or co-Registrar. 
The Company shall enter into an appropriate agency agreement with any
Agent not a party to this Indenture and the agreement shall implement the
provisions of this Indenture that relate to such Agent and shall incorporate
the provisions of the TIA.  Without
limiting the foregoing, each such agreement appointing a Paying Agent must
contain provisions substantially to the effect of Section 2.07.  The Company shall notify the Trustee in
writing of the name and address of any such Agent.  If the Company fails to maintain a Registrar or Paying Agent or
fails to give the foregoing notice, the Trustee shall act as such and shall be
entitled to appropriate compensation in accordance with Section 7.07.

 

The Registrar
shall keep a register (the “Register”) of the Definitive Registered
Notes and of their transfer and exchange. 
Any notice to be given under this Indenture or under the Notes by the
Trustee or the Company to Noteholders shall be mailed by first class mail to
each Holder of Definitive Registered Notes at its address as it appears at the
time of such mailing in the Register, and to the Holders of the Global Notes.

 

The Company
hereby appoints the corporate trust office of the Trustee in Illinois located
at the address set forth in Section 13.02 as Registrar, Paying Agent and
Transfer Agent in Illinois with respect to Definitive Registered Notes.

 

The Company,
any Subsidiary of the Company, or any Affiliate of any of them may act as
Registrar or co-Registrar, and/or agent for service of notice and demands.

 

If, at any time,
the Trustee is not the Registrar, the Registrar shall make available to the
Trustee on or before each Interest Payment Date and at such other times as the
Trustee may reasonably request, the names and addresses of the Holders as they
appear in the Register.

 

SECTION 2.05.            Holders to Be Treated as Owners;
Payments of Interest. The Company, the Paying Agents, the Registrar, the
Trustee and any agent of the Company, the Paying Agents, the Registrar or the
Trustee may deem and treat the person in whose name a Note is registered as the
absolute owner of such Note for the purpose of receiving payment of or on
account of the principal of and, subject to the provisions of this Indenture,
interest, Additional Interest, if any on such Note and for all other purposes;
and neither the Company, any Paying Agent, the Registrar, the Trustee nor any
agent of the Company, the Paying Agent, the Registrar or the Trustee shall be
affected by any notice to the contrary. 
All such payments so made to any such Person, or upon his order, shall
be valid, and, to the extent of the sum or sums so paid, effectual to satisfy
and discharge the liability for moneys payable upon any Note.

 

SECTION 2.06.            Paying Agent to Hold Money in
Trust.  Not later than 12:00 noon
(New York Time) one Business Day prior to each due date of the principal and
interest on any Notes, the Company shall deposit with the Paying Agent money in
immediately available funds sufficient to pay such principal and interest so
becoming due on the due date for payment under the Notes.  The Company shall require each Paying Agent
other than the Trustee to agree in writing that such Paying Agent shall hold in
trust for the benefit of the Holders or the Trustee

 

35

 

all money held
by the Paying Agent for the payment of principal of and interest on the Notes
(whether such money has been paid to it by the Company or any other obligor on
the Notes), and such Paying Agent shall promptly notify the Trustee of any
default by the Company (or any other obligor on the Notes) in making any such
payment.  Money held in trust by any
Paying Agent need not be segregated except as required by law and in no event
shall any Paying Agent be liable for any interest on any money received by it
hereunder.  The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee and account
for any funds disbursed, and the Trustee may at any time during the continuance
of any payment default, upon written request to a Paying Agent, require such
Paying Agent to pay all money held by it to the Trustee and to account for any
funds disbursed.  Upon doing so, the Paying
Agent shall have no further liability for the money so paid over to the Trustee.

 

SECTION 2.07.            Transfer and Exchange.

 

(a)           Transfer and
Exchange of Global Notes.  A Global
Note may not be transferred as a whole except by the Depositary to a nominee of
the Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.  All Global Notes will be exchanged by the
Company for Definitive Registered Notes if (i) the Company delivers to the
Trustee written notice from the Depositary that it is unwilling or unable to
continue to act as Depositary or that it is no longer a clearing agency
registered under the Exchange Act and, in either case, a successor Depositary
is not appointed by the Company within 120 days after the date of such notice
from the Depositary or (ii) the Company in its sole discretion determines that
the Global Notes (in whole but not in part) should be exchanged for Definitive
Registered Notes and delivers a written notice to such effect to the
Trustee.  Upon the occurrence of either
of the preceding events in (i) or (ii) above, Definitive Registered Notes shall
be issued in such names as the Depositary shall instruct the Trustee in
writing.  Global Notes also may be exchanged
or replaced, in whole or in part, as provided in Sections 2.08 and 2.10.  Except as otherwise provided above, every
Note authenticated and delivered in exchange for, or in lieu of, a Global Note
or any portion thereof, pursuant to this Section 2.07 or Section 2.08 or 2.10,
shall be authenticated and delivered in the form of, and shall be, a Global
Note.  A Global Note may not be
exchanged for another Note other than as provided in this Section 2.07(a); however,
Book-Entry Interests in a Global Note may be transferred and exchanged as
provided in Section 2.07(b), (c) or (f).

 

(b)           Transfer and
Exchange of Book-Entry Interests in the Global Notes.  The transfer and exchange of Book-Entry Interests
in the Global Notes shall be effected through the Depositary, in accordance
with the provisions of this Indenture and the Applicable Procedures.  Book-Entry Interests in the Restricted
Global Notes shall be subject to restrictions on transfer comparable to those
set forth herein to the extent required by the Securities Act.  Transfers of Book-Entry Interests in the
Global Notes also shall require compliance with either subparagraph (i) or (ii)
below, as applicable, as well as one or more of the other following subparagraphs,
as applicable:

 

(i)            Transfer of
Book-Entry Interests in the Same Global Note.  Book-Entry Interests in any Restricted Global Note may be
transferred to Persons who take delivery

 

36

 

thereof in the
form of a Book-Entry Interest in the same Restricted Global Note in accordance
with the transfer restrictions set forth in the Private Placement Legend; provided,
however, that prior to the expiration of the Restricted Period,
transfers of Book-Entry Interests in the Regulation S Global Note may not be
made to a U.S. Person or for the account or benefit of a U.S. Person (other
than an Initial Purchaser).  Book-Entry
Interests in any Unrestricted Global Note may be transferred to Persons who
take delivery thereof in the form of a Book-Entry Interest in an Unrestricted
Global Note.  No written orders or
instructions shall be required to be delivered to the Registrar to effect the
transfers described in this Section 2.07(b)(i).

 

(ii)           All Other
Transfers and Exchanges of Book-Entry Interests in Global Notes.  In connection with all transfers and
exchanges of Book-Entry Interests that are not subject to Section 2.07(b)(i)
above, the transferor of such Book-Entry Interest must deliver to the Registrar
either (A) (1) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures directing
the Depositary to credit or cause to be credited a Book-Entry Interest in
another Global Note in an amount equal to the Book-Entry Interest to be
transferred or exchanged and (2) instructions given in accordance with the
Applicable Procedures containing information regarding the Participant account
to be credited with such increase or (B) (1) a written order from a Participant
or an Indirect Participant given to the Depositary in accordance with the
Applicable Procedures directing the Depositary to cause to be issued a Definitive
Registered Note in an amount equal to the Book-Entry Interest to be transferred
or exchanged and (2) instructions given by the Depositary to the Registrar
containing information regarding the Person in whose name such Definitive
Registered Note shall be registered to effect the transfer or exchange referred
to in (1) above.  Upon consummation of
an Exchange Offer by the Company in accordance with Section 2.07(f), the
requirements of this Section 2.07(b)(ii) shall be deemed to have been satisfied
upon receipt by the Registrar of the instructions contained in the Letter of
Transmittal delivered by the holder of such Book-Entry Interests in the
Restricted Global Notes.  Upon
satisfaction of all of the requirements for transfer or exchange of Book-Entry
Interests in Global Notes contained in this Indenture and the Notes or
otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount of the relevant Global Note(s) pursuant to Section 2.11.

 

(iii)          Transfer of
Book-Entry Interests to Another Restricted Global Note.  A Book-Entry Interest in any Restricted Global Note may be
transferred to a Person who takes delivery thereof in the form of a Book-Entry
Interest in another Restricted Global Note if the transfer complies with the
requirements of Section 2.07(b)(ii) above and the Registrar receives the
following:

 

(A)          if the transferee will take delivery
in the form of a Book-Entry Interest in the 144A Global Note, then the
transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (1) thereof;

 

37

 

(B)           if the transferee will take delivery
in the form of a Book-Entry Interest in the Regulation S Global Note, then the
transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (2) thereof; and

 

(C)           if the transferee will take delivery
in the form of a Book-Entry Interest in the IAI Global Note, then the
transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications and certificates and Opinion of Counsel required
by item (3)(c) thereof, if applicable.

 

(iv)          Transfer and
Exchange of Book-Entry Interests in a Restricted Global Note for Book-Entry
Interests in an Unrestricted Global Note. 
A Book-Entry Interest in any Restricted Global Note may be exchanged by
any holder thereof for a Book-Entry Interest in an Unrestricted Global Note or
transferred to a Person who takes delivery thereof in the form of a Book-Entry
Interest in an Unrestricted Global Note if the exchange or transfer complies
with the requirements of Section 2.07(b)(ii) above and:

 

(A)          such
exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the holder of the Book-Entry
Interest to be transferred, in the case of an exchange, or the transferee, in
the case of a transfer, certifies in the applicable Letter of Transmittal that
it is not (1) a broker-dealer, (2) a Person participating in the distribution
of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule
144) of the Company;

 

(B)           such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

 

(C)           such
transfer is effected by a Participating Broker-Dealer pursuant to the Exchange
Offer Registration Statement in accordance with the Registration Rights
Agreement; or

 

(D)          the
Registrar receives the following:

 

(1)           if
the holder of such Book-Entry Interest in a Restricted Global Note proposes to
exchange such Book-Entry Interest for a Book-Entry Interest in an Unrestricted
Global Note, a certificate from such holder in the form of Exhibit C hereto,
including the certifications in item (1)(a) thereof; or

 

(2)           if
the holder of such Book-Entry Interest in a Restricted Global Note proposes to
transfer such Book-Entry Interest to a Person who shall take delivery thereof
in the form of a Book-Entry Interest in an Unrestricted Global Note, a
certificate from such holder in the form of Exhibit B hereto, including
the certifications in item (4) thereof;

 

and, in each
such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form

 

38

 

reasonably
acceptable to the Registrar to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in
order to maintain compliance with the Securities Act.

 

If any such
transfer is effected pursuant to subparagraph (B) or (D) above at a time when
an Unrestricted Global Note has not yet been issued, the Company shall issue
and, upon receipt of a Company Order in accordance with Section 2.03, the
Trustee shall authenticate one or more Unrestricted Global Notes in an
aggregate principal amount equal to the aggregate principal amount of
Book-Entry Interests transferred pursuant to subparagraph (B) or (D) above.

 

Book-Entry
Interests in an Unrestricted Global Note cannot be exchanged for, or
transferred to Persons who take delivery thereof in the form of, a Book-Entry
Interest in a Restricted Global Note.

 

(c)           Transfer or
Exchange of Book-Entry Interests for Definitive Registered Notes.

 

(i)            Book-Entry
Interests in Restricted Global Notes to Restricted Definitive Registered Notes.  If any holder of a Book-Entry Interest in a
Restricted Global Note proposes to exchange such Book-Entry Interest for a
Restricted Definitive Registered Note or to transfer such Book-Entry Interest
to a Person who takes delivery thereof in the form of a Restricted Definitive
Registered Note, then, upon receipt by the Registrar of the following documentation:

 

(A)          if
the holder of such Book-Entry Interest in a Restricted Global Note proposes to
exchange such Book-Entry Interest for a Restricted Definitive Registered Note,
a certificate from such holder in the form of Exhibit C hereto, including the
certifications in item (2)(a) thereof;

 

(B)           if
such Book-Entry Interest is being transferred to a QIB in accordance with Rule
144A under the Securities Act, a certificate to the effect set forth in Exhibit
B hereto, including the certifications in item (1) thereof;

 

(C)           if
such Book-Entry Interest is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904 under the
Securities Act, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (2) thereof;

 

(D)          if
such Book-Entry Interest is being transferred pursuant to an exemption from the
registration requirements of the Securities Act in accordance with
Rule 144 under the Securities Act, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (3)(a)
thereof;

 

(E)           if
such Book-Entry Interest is being transferred to an Institutional Accredited
Investor in reliance on an exemption from the registration requirements of the
Securities Act other than those listed in subparagraphs (B) through

 

39

 

(D) above, a certificate to the effect set forth in Exhibit B
hereto, including the certifications, certificates and Opinion of Counsel
required by item (3)(c) thereof, if applicable; or

 

(F)           if
such Book-Entry Interest is being transferred to the Company or any of its
Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof,

 

the Trustee shall cause the
aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.11, and the Company shall execute and the
Trustee shall authenticate and deliver to the Person designated in the instructions
a Definitive Registered Note in the appropriate principal amount.  Any Definitive Registered Note issued in exchange
for a Book-Entry Interest in a Restricted Global Note pursuant to this Section
2.07(c) shall be registered in such name or names and in such authorized
denomination or denominations as the holder of such Book-Entry Interest shall
instruct the Registrar through instructions from the Depositary and the
Participant or Indirect Participant.  The
Trustee shall deliver such Definitive Registered Notes to the Persons in whose
names such Notes are so registered.  Any
Definitive Registered Note issued in exchange for a Book-Entry Interest in a
Restricted Global Note pursuant to this Section 2.07(c)(i) shall bear the Private
Placement Legend and shall be subject to all restrictions on transfer contained
therein.

 

(ii)           Book-Entry
Interests in Restricted Global Notes to Unrestricted Definitive Registered
Notes.  A holder of a Book-Entry Interest in a Restricted
Global Note may exchange such Book-Entry Interest for an Unrestricted
Definitive Registered Note or may transfer such Book-Entry Interest to a Person
who takes delivery thereof in the form of an Unrestricted Definitive Registered
Note only if:

 

(A)          such
exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the holder of such Book-Entry Interest,
in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (1) a
broker-dealer, (2) a Person participating in the distribution of the Exchange
Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company;

 

(B)           such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

 

(C)           such
transfer is effected by a Participating Broker-Dealer pursuant to the Exchange
Offer Registration Statement in accordance with the Registration Rights Agreement;
or

 

(D)          the
Registrar receives the following:

 

(1)           if
the holder of such Book-Entry Interest in a Restricted Global Note proposes to
exchange such Book-Entry Interest for a Definitive Registered Note that does
not bear the Private Placement Legend, a

 

40

 

certificate from such holder in the form of Exhibit C hereto, including
the certifications in item (1)(b) thereof; or

 

(2)           if
the holder of such Book-Entry Interest in a Restricted Global Note proposes to
transfer such Book-Entry Interest to a Person who shall take delivery thereof
in the form of a Definitive Registered Note that does not bear the Private
Placement Legend, a certificate from such holder in the form of Exhibit B
hereto, including the certifications in item (4) thereof;

 

and, in each
such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably
acceptable to the Registrar to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in
order to maintain compliance with the Securities Act.

 

(iii)          Book-Entry Interests
in Unrestricted Global Notes to Unrestricted Definitive Registered Notes.  If any holder of a Book-Entry Interest in an
Unrestricted Global Note proposes to exchange such Book-Entry Interest for a
Definitive Registered Note or to transfer such Book-Entry Interest to a Person
who takes delivery thereof in the form of a Definitive Registered Note, then,
upon satisfaction of the conditions set forth in Section 2.07(b)(ii), the
Trustee shall cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.11, and the Company shall
execute and the Trustee shall authenticate and deliver to the Person designated
in the instructions a Definitive Registered Note in the appropriate principal
amount.  Any Definitive Registered Note
issued in exchange for a Book-Entry Interest pursuant to this Section
2.07(c)(iii) shall be registered in such name or names and in such authorized
denomination or denominations as the holder of such Book-Entry Interest shall instruct
the Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall
deliver such Definitive Registered Notes to the Persons in whose names such
Notes are so registered.  Any Definitive
Registered Note issued in exchange for a Book-Entry Interest pursuant to this
Section 2.07(c)(iii) shall not bear the Private Placement Legend.

 

(d)           Transfer and
Exchange of Definitive Registered Notes for Book-Entry Interests.

 

(i)            Restricted
Definitive Registered Notes to Book-Entry Interests in Restricted Global Notes.  If any Holder of a Restricted Definitive
Registered Note proposes to exchange such Note for a Book-Entry Interest in a
Restricted Global Note or to transfer such Restricted Definitive Registered
Notes to a Person who takes delivery thereof in the form of a Book-Entry
Interest in a Restricted Global Note, then, upon receipt by the Registrar of
the following documentation:

 

(A)          if
the Holder of such Restricted Definitive Registered Note proposes to exchange such
Note for a Book-Entry Interest in a Restricted Global

 

41

 

Note, a certificate from such Holder in the form of Exhibit C
hereto, including the certifications in item (2)(b) thereof;

 

(B)           if
such Restricted Definitive Registered Note is being transferred to a QIB in
accordance with Rule 144A under the Securities Act, a certificate to the effect
set forth in Exhibit B hereto, including the certifications in item (1)
thereof;

 

(C)           if
such Restricted Definitive Registered Note is being transferred to a Non-U.S.
Person in an offshore transaction in accordance with Rule 903 or Rule 904 under
the Securities Act, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (2) thereof;

 

(D)          if
such Restricted Definitive Registered Note is being transferred pursuant to an
exemption from the registration requirements of the Securities Act in accordance
with Rule 144 under the Securities Act, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (3)(a)
thereof;

 

(E)           if
such Restricted Definitive Registered Note is being transferred to an
Institutional Accredited Investor in reliance on an exemption from the registration
requirements of the Securities Act other than those listed in subparagraphs (B)
through (D) above, a certificate to the effect set forth in Exhibit B
hereto, including the certifications, certificates and Opinion of Counsel required
by item (3)(c) thereof, if applicable; or

 

(F)           if
such Restricted Definitive Registered Note is being transferred to the Company
or any of its Subsidiaries, a certificate to the effect set forth in Exhibit
B hereto, including the certifications in item (3)(b) thereof,

 

the Trustee
shall cancel the Restricted Definitive Registered Note, increase or cause to be
increased the aggregate principal amount of, in the case of clause (A) above,
the appropriate Restricted Global Note, in the case of clause (B) above, the
144A Global Note, in the case of clause (C) above, the Regulation S Global
Note, and in all other cases, the IAI Global Note.

 

(ii)           Restricted
Definitive Registered Notes to Book-Entry Interests in Unrestricted Global
Notes.  A Holder of a Restricted Definitive
Registered Note may exchange such Note for a Book-Entry Interest in an
Unrestricted Global Note or transfer such Restricted Definitive Registered Note
to a Person who takes delivery thereof in the form of a Book-Entry Interest in
an Unrestricted Global Note only if:

 

(A)          such
exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (1) a broker-dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person who is
an affiliate (as defined in Rule 144) of the Company;

 

42

 

(B)           such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

 

(C)           such
transfer is effected by a Participating Broker-Dealer pursuant to the Exchange
Offer Registration Statement in accordance with the Registration Rights
Agreement; or

 

(D)          the
Registrar receives the following:

 

(1)           if
the Holder of such Definitive Registered Notes proposes to exchange such Notes
for a Book-Entry Interest in the Unrestricted Global Note, a certificate from
such Holder in the form of Exhibit C hereto, including the certifications
in item (1)(c) thereof; or

 

(2)           if
the Holder of such Definitive Registered Notes proposes to transfer such Notes
to a Person who shall take delivery thereof in the form of a Book-Entry
Interest in the Unrestricted Global Note, a certificate from such Holder in the
form of Exhibit B hereto, including the certifications in item (4)
thereof;

 

and, in each such case set forth in this subparagraph (D), if the
Registrar so requests or if the Applicable Procedures so require, an Opinion of
Counsel in form reasonably acceptable to the Registrar to the effect that such
exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

 

Upon satisfaction of the conditions of any of the subparagraphs in this
Section 2.07(d)(ii), the Trustee shall cancel the Definitive Registered Notes
and increase or cause to be increased the aggregate principal amount of the Unrestricted
Global Note.

 

(iii)          Unrestricted
Definitive Registered Notes to Book-Entry Interests in Unrestricted Global
Notes.  A Holder of an Unrestricted Definitive
Registered Note may exchange such Note for a Book-Entry Interest in an
Unrestricted Global Note or transfer such Definitive Registered Notes to a
Person who takes delivery thereof in the form of a Book-Entry Interest in an
Unrestricted Global Note at any time. 
Upon receipt of a request for such an exchange or transfer, the Trustee
shall cancel the applicable Unrestricted Definitive Registered Note and
increase or cause to be increased the aggregate principal amount of one of the
Unrestricted Global Notes.

 

If any such exchange or transfer from a Definitive Registered Note to a
Book-Entry Interest is effected pursuant to subparagraphs (ii)(B), (ii)(D) or
(iii) above at a time when an Unrestricted Global Note has not yet been issued,
the Company shall issue and, upon receipt of a Company Order in accordance with
Section 2.03, the Trustee shall authenticate one or more Unrestricted Global
Notes in an aggregate principal amount equal to the principal amount of
Definitive Registered Notes so transferred.

 

43

 

(e)           Transfer and
Exchange of Definitive Registered Notes for Definitive Registered Notes.  Upon written request by a Holder of
Definitive Registered Notes and such Holder’s compliance with the provisions of
this Section 2.07(e), the Registrar shall register the transfer or exchange of
Definitive Registered Notes.  Prior to
such registration of transfer or exchange, the requesting Holder shall present
or surrender to the Registrar the Definitive Registered Notes duly endorsed or
accompanied by a written instruction of transfer in form satisfactory to the
Registrar duly executed by such Holder or by its attorney, duly authorized in
writing.  In addition, the requesting
Holder shall provide any additional certifications, documents and information,
as applicable, required pursuant to the following provisions of this Section
2.07(e).

 

(i)            Restricted
Definitive Registered Notes to Restricted Definitive Registered Notes.  Any Restricted Definitive Registered Note
may be transferred to and registered in the name of Persons who take delivery
thereof in the form of a Restricted Definitive Registered Note if the Registrar
receives the following:

 

(A)          if
the transfer will be made pursuant to Rule 144A under the Securities Act, then
the transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (1) thereof;

 

(B)           if
the transfer will be made pursuant to Rule 903 or Rule 904, then the transferor
must deliver a certificate in the form of Exhibit B hereto, including
the certifications in item (2) thereof; and

 

(C)           if
the transfer will be made pursuant to any other exemption from the registration
requirements of the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if applicable.

 

(ii)           Restricted
Definitive Registered Notes to Unrestricted Definitive Registered Notes.  Any Restricted Definitive Registered Note
may be exchanged by the Holder thereof for an Unrestricted Definitive
Registered Note or transferred to a Person or Persons who take delivery thereof
in the form of an Unrestricted Definitive Registered Note if:

 

(A)          such
exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (1) a broker-dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person who is
an affiliate (as defined in Rule 144) of the Company;

 

(B)           any
such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

 

(C)           any
such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration
Statement in accordance with the Registration Rights Agreement; or

 

44

 

(D)          the
Registrar receives the following:

 

(1)           if
the Holder of such Restricted Definitive Registered Notes proposes to exchange
such Notes for an Unrestricted Definitive Registered Note, a certificate from
such Holder in the form of Exhibit C hereto, including the certifications
in item (1)(d) thereof; or

 

(2)           if
the Holder of such Restricted Definitive Registered Notes proposes to transfer
such Notes to a Person who shall take delivery thereof in the form of an
Unrestricted Definitive Registered Note, a certificate from such Holder in the
form of Exhibit B hereto, including the certifications in item (4)
thereof;

 

and, in each
such case set forth in this subparagraph (D), if the Registrar so requests, an
Opinion of Counsel in form reasonably acceptable to the Company to the effect
that such exchange or transfer is in compliance with the Securities Act and
that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the Securities
Act.

 

(iii)          Unrestricted
Definitive Registered Notes to Unrestricted Definitive Registered Notes.  A Holder of Unrestricted Definitive
Registered Notes may transfer such Notes to a Person who takes delivery thereof
in the form of an Unrestricted Definitive Registered Note.  Upon receipt of a request to register such a
transfer, the Registrar shall register the Unrestricted Definitive Registered
Notes pursuant to the instructions from the Holder thereof.

 

(f)            Exchange Offer.  Upon the occurrence of the Exchange Offer in
accordance with the Registration Rights Agreement, the Company shall issue and,
upon receipt of a Company Order in accordance with Section 2.03, the Trustee
shall authenticate (i) one or more Unrestricted Global Notes in an aggregate
principal amount equal to the corresponding principal amount of the Book-Entry
Interests in the Restricted Global Notes tendered for acceptance by Persons
that certify in the applicable Letters of Transmittal that (x) they are not
Broker-Dealers that acquired the Book-Entry Interests tendered in the Exchange
Offer directly from the Company or an Affiliate of the Company, (y) they are
not participating in a distribution of the Exchange Notes and (z) they are not
affiliates (as defined in Rule 144) of the Company and (ii) Unrestricted
Definitive Registered Notes in an aggregate principal amount equal to the
corresponding principal amount of the Restricted Definitive Registered Notes
tendered for exchange by Persons who certify to the effect set forth in (i) of
this subsection (f) and accepted for exchange in the Exchange Offer.

 

In addition,
the Trustee shall (i) endorse Schedule A to the Unrestricted Global Notes
issued pursuant to the preceding paragraph to reflect the principal amount of
Restricted Global Notes tendered in the Exchange Offer, (ii) deliver such
Unrestricted Global Notes to the Depositary, (iii) instruct the Depositary
to deliver the relevant Restricted Global Note(s) to the Trustee,
(iv) endorse Schedule A to such Restricted Global Note(s) to reflect the
decrease in principal amount resulting from the Exchange Offer, and
(v) thereafter, return the Restricted

 

45

 

Global Notes
to the Depositary, together with all information regarding the Participant
accounts to be debited and credited in connection with the Exchange Offer.

 

(g)           General
Provisions Relating to All Transfers and Exchanges.

 

(i)            To permit
registrations of transfers and exchanges, the Company shall execute and the
Trustee shall authenticate Global Notes or Definitive Registered Notes, as the
case may be, in each case, in accordance with Section 2.03.

 

(ii)           No service charge
shall be made to a Holder for any registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any stamp or transfer
tax, duty or governmental charge payable in connection therewith (other than
any such stamp or transfer taxes, duties or similar governmental charge payable
upon exchange or transfer pursuant to Sections 2.10, 3.08, 4.10, 4.11 and
9.04).

 

(iii)          All Global Notes
and Definitive Registered Notes issued upon any registration of transfer or
exchange of Global Notes or Definitive Registered Notes shall be the valid
obligations of the Company, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Global Notes or Definitive Registered
Notes surrendered upon such registration of transfer or exchange.

 

(iv)          The Company shall
not be required (A) to register the transfer of or to exchange Notes during a
period beginning at the opening of business 15 days before any redemption date
under Section 3.08 and ending at the close of business on the redemption date,
(B) to register the transfer of or to exchange any Note during a period beginning
at the opening of business 15 days before any mailing of a notice of redemption
of Notes for partial redemption under Section 3.08 and ending on the day of
such selection, (C) to register the transfer of or to exchange a Note during a
period beginning at the opening of business on a record date for the payment of
interest and the applicable succeeding Interest Payment Date, or (D) to
register the transfer of or to exchange a Note that has been tendered in an
Asset Sale Offer or a Change of Control Offer.

 

(v)           Prior to due presentment
for the registration of a transfer of any Note, the Trustee, the Paying Agents,
the Registrar, any Agent and the Company may deem and treat the Person in whose
name any Note is registered as the absolute owner of such Note for the purpose
of receiving payment of principal of and interest on such Notes and for all
other purposes, and none of the Trustee, the Paying Agents, the Registrar, any
Agent or the Company shall be affected by notice to the contrary.

 

(vi)          The Trustee shall
have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Note other
than to require delivery of such certificates and other documentation or evidence
as are expressly required by, and to do so if and when expressly required by
the terms of, this Indenture, and to examine the same to determine substantial
compliance as to form with the express requirement hereof.

 

46

 

SECTION 2.08.            Replacement Notes.  If a mutilated Note is surrendered to the
Trustee or if the Holder claims that the Note has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Note of like tenor and amount and bearing a number not
contemporaneously outstanding; provided that the requirements of this Section
2.08 are met.  An indemnity bond must be
furnished that is sufficient in the judgment of both the Trustee and the Company
to protect the Company, the Guarantors, the Trustee or any Agent from any loss
that any of them may suffer if a Note is replaced.  The Company may charge such Holder for its expenses and the
expenses of the Trustee in replacing a Note. 
In case any such mutilated, lost, destroyed or wrongfully taken Note has
become or is about to become due and payable, the Company in its discretion may
pay such Note instead of issuing a new Note in replacement thereof.

 

Every
replacement Note is an additional obligation of the Company and shall be
entitled to the benefits of this Indenture.

 

SECTION 2.09.            Outstanding Notes.  Notes outstanding at any time are all Notes
that have been authenticated by the Trustee except for those cancelled by it,
those delivered to it for cancellation, those paid pursuant to
Section 2.08 and those described in this Section 2.09 as not outstanding.

 

If a Note is
replaced pursuant to Section 2.08, it ceases to be outstanding unless and until
the Trustee and the Company receive proof satisfactory to them that the
replaced Note is held by a bona fide purchaser.

 

If the Paying
Agent (other than the Company or an Affiliate of the Company) holds on any
redemption date, the maturity date or any date of repurchase money sufficient
to pay Notes payable on that date, then on and after that date such Notes cease
to be outstanding and interest on them shall cease to accrue.

 

A Note does
not cease to be outstanding because the Company or one of its Affiliates holds
such Note; provided,
however,
that, in determining whether the Holders of the requisite principal amount of
the outstanding Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, Notes owned by the Company or any other
obligor upon the Notes or any Affiliate of the Company or of such other obligor
shall be disregarded and deemed not to be outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Notes which a Responsible Officer of the Trustee has actual knowledge or has received
written notice to be so owned shall be so disregarded.  The Company shall notify the Trustee when
it, any obligor or any of their respective Affiliates acquires any Notes.  Notes so owned which have been pledged in
good faith may be regarded as outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not the Company or any other obligor upon the
Notes or any Affiliate of the Company or of such other obligor.

 

SECTION 2.10.            Temporary Notes.  Until definitive permanent Notes are ready
for delivery, the Company may prepare and the Trustee shall authenticate temporary
Notes.  Temporary Notes shall be
substantially in the form of definitive permanent Notes but may have

 

47

 

insertions,
substitutions, omissions and other variations determined to be appropriate by
the officers executing the temporary Notes, as evidenced by their execution of
such temporary Notes.  If temporary
Notes are issued, the Company shall cause definitive permanent notes to be
prepared without unreasonable delay. 
After the preparation of definitive permanent Notes, the temporary Notes
shall be exchangeable for definitive permanent Notes upon surrender of the
temporary Notes at the office or agency of the Company designated for such
purpose pursuant to Section 4.02, without charge to the Holder.  Upon surrender for cancellation of any one
or more temporary Notes, the Company shall execute and the Trustee shall
authenticate and make available for delivery in exchange therefor a like
principal amount of definitive permanent Notes of authorized denominations.  Until so exchanged, the temporary Notes
shall be entitled to the same benefits under this Indenture as definitive
permanent Notes.

 

SECTION 2.11.            Cancellation.  The Company at any time may deliver to the
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee for cancellation any Notes previously authenticated
hereunder which the Company has not issued and sold.  The Registrar and the Paying Agent shall forward to the Trustee
any Notes surrendered to them for transfer, exchange or payment.  The Trustee shall cancel all Notes
surrendered for transfer, exchange, payment or cancellation in accordance with
its normal procedure.

 

At such time
as all Book-Entry Interests therein have been exchanged for Definitive
Registered Notes, a Global Note shall be returned to or retained and canceled
by the Trustee in accordance with this Section 2.11.

 

SECTION 2.12.            CUSIP Numbers.  The Company in issuing the Notes may use
“CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use
CUSIP numbers in notices of redemption as a convenience to Holders; provided
that any such notice may state that no representation is made as to the correctness
of such numbers either as printed on the Notes or as contained in any notice of
a redemption and that reliance may be placed only on the other identification
numbers printed on the Notes, and any such redemption shall not be affected by
any defect in or the omission of such numbers. 
The Company will promptly notify the Trustee in writing of any change in
the CUSIP numbers.

 

SECTION 2.13.            Defaulted Interest.  If the Company defaults on a payment of interest
on the Notes, it shall pay, or shall deposit with the Paying Agent money in
immediately available funds sufficient to pay the defaulted interest, plus (to
the extent lawful) any interest payable on the defaulted interest, to the
Persons who are Holders on a subsequent special record date.  A special record date, as used in this
Section 2.13 with respect to the payment of any defaulted interest, shall mean
the 15th day next preceding the date fixed by the Company for the payment of
defaulted interest, whether or not such day is a Business Day.  At least 15 days before the subsequent special
record date, the Company shall mail to each Holder and to a Responsible Officer
of the Trustee a notice that states the subsequent special record date, the
payment date and the amount of defaulted interest to be paid.

 

SECTION 2.14.            Issuance of Additional Notes.  The Company shall be entitled to issue
Additional Notes under this Indenture that shall have identical terms as the
Notes issued on the Issue Date, other than with respect to the date of
issuance, issue price and amount of interest

 

48

 

payable on the
first payment date applicable thereto (and, if such Additional Notes shall be
issued without registration under the Securities Act, other than with respect
to transfer restrictions); provided that such issuance is not
prohibited by Section 4.03.  The
Initial Notes issued on the Issue Date, any Additional Notes and all Exchange
Notes issued in exchange therefor shall be treated as a single class for all purposes
under this Indenture.

 

With respect
to any Additional Notes, the Company shall set forth in a resolution of its
Board of Directors and in a Company Order, a copy of each of which shall be
delivered to the Trustee, the following information:

 

(1)           the aggregate
principal amount of such Additional Notes to be authenticated and delivered
pursuant to this Indenture;

 

(2)           the issue price and
the issue date of such Additional Notes and the amount of interest payable on
the first payment date applicable thereto; provided, however, that no Additional
Notes may be issued at a price that would cause such Additional Notes to have
“original issue discount” within the meaning of Section 1273 of the
Internal Revenue Code of 1986, as amended; and

 

(3)           whether such
Additional Notes shall be Notes bearing the Private Placement Legend and issued
in the form of Initial Notes or shall be Unrestricted Notes issued in the form
of Exchange Notes.

 

ARTICLE THREE

REDEMPTION

 

SECTION 3.01.            Optional Redemption.  (a) 
Except as described below, the Notes are not redeemable before November
1, 2008.  Thereafter, the Company may
redeem the Notes at its option, in whole or in part, upon not less than 30 nor
more than 60 days’ notice to the Holders, at the following redemption prices
(expressed as percentages of the principal amount thereof) if redeemed during
the 12-month period commencing on November 1 of the year set forth below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  103.563

  	
  %

  
	
  2009

  	
   

  	
  102.375

  	
  %

  
	
  2010

  	
   

  	
  101.188

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

In addition,
the Company must pay accrued and unpaid interest on the Notes redeemed.

 

(b)           At any time, or from
time to time, on or prior to November 1, 2006, the Company may, at its option,
use the Net Cash Proceeds of one or more Public Equity Offerings (as defined
below) to redeem up to 35% of the principal amount of the Notes outstanding
under

 

49

 

this Indenture
at a redemption price of 107.125% of the principal amount thereof plus accrued
and unpaid interest thereon, if any, to the date of redemption; provided
that:

 

(1)           at least 65% of the
principal amount of Notes outstanding under this Indenture remains outstanding
immediately after any such redemption; and

 

(2)           the Company makes
such redemption not more than 90 days after the consummation of any such Public
Equity Offering.

 

“Public
Equity Offering” means an underwritten public offering of Qualified Capital
Stock of the Company pursuant to a registration statement filed with the
Commission in accordance with the Securities Act.

 

SECTION 3.02.            Notices to Trustee.  If the Company elects to redeem Notes pursuant
to Section 3.01(a) or Section 3.01(b), it shall notify the Trustee in writing
of the Redemption Date and the principal amount of Notes to be redeemed.

 

The Company
shall give each notice provided for in this Section 3.02 in an Officers’
Certificate at least 60 days before the Redemption Date (unless a shorter
period shall be satisfactory to the Trustee).

 

SECTION 3.03.            Selection of Notes to Be Redeemed.
 In the case of any partial redemption
pursuant to Section 3.01(a) or Section 3.01(b), selection of the Notes for
redemption will be made by the Trustee in compliance with the requirements of
the principal securities exchange, if any, on which the Notes are listed or, if
the Notes are not so listed, pro rata, by lot or by such other method
as the Trustee shall deem fair and appropriate; provided that no Note of
$1,000 in principal amount or less shall be redeemed in part; and provided,
further,
that any redemption following a Public Equity Offering will be made on a pro rata
or on as nearly a pro rata basis as applicable (subject to the procedures of
the Depositary).  The Trustee shall make
the selection from the Notes outstanding and not previously called for
redemption.  Provisions of this
Indenture that apply to Notes called for redemption also apply to portions of
Notes called for redemption.  The
Trustee shall notify the Company and the Registrar promptly in writing of the
Notes or portions of Notes to be called for redemption.

 

SECTION 3.04.            Notice of Redemption.  With respect to any redemption of Notes
pursuant to Section 3.01(a) or Section 3.01(b), at least 30 days but not more
than 60 days before a Redemption Date, the Company shall mail a notice of redemption
by first class mail to each Holder whose Notes are to be redeemed at its
registered address.  For Notes that are
represented by Global Notes, notices may be given by delivery of the relevant
notices to the Depositary for communication to its Participants.

 

The notice
shall identify the Notes to be redeemed (including CUSIP Number) and shall
state:

 

(i)            the Redemption
Date;

 

(ii)           the Redemption
Price;

 

50

 

(iii)          the name and
address of each Paying Agent;

 

(iv)          that Notes called
for redemption must be surrendered to the applicable Paying Agent in order to
collect the Redemption Price;

 

(v)           that, unless the
Company defaults in making the redemption payment, interest on Notes called for
redemption ceases to accrue on and after the Redemption Date and the only
remaining right of the Holders is to receive payment of the Redemption Price
plus accrued interest and Additional Interest, if any, to the Redemption Date
upon surrender of the Notes to the Paying Agent;

 

(vi)          that, in the case of
a redemption pursuant to Section 3.01(a) or Section 3.01(b) of Definitive
Registered Notes, if any such Note is being redeemed in part, the portion of
the principal amount (equal to $1,000 in principal amount or any integral multiple
thereof) of such Note to be redeemed and that, on and after the Redemption
Date, upon surrender of such Note, a new Note or Notes in principal amount
equal to the unredeemed portion thereof with a minimum denomination of $1,000
will be issued, and that, in the case of such a partial redemption of Global
Notes, the Trustee shall endorse Schedule A to each Global Note surrendered for
redemption to reflect the decrease in principal amount resulting from such
redemption;

 

(vii)         that, if any such
Notice contains a CUSIP as provided in Section 2.12, no representation is being
made as to the correctness of the CUSIP either as printed on the Notes or as
contained in the notice of redemption and that reliance may be placed only on
the other identification numbers printed on the Notes; and

 

(viii)        if the redemption is
conditioned upon any subsequent event, a description of such condition or
event.

 

At the
Company’s request (which request may be revoked by the Company at any time
prior to the time at which the Trustee shall have given such notice to the
Holders), made in writing to the Trustee at least 60 days (or such shorter
period as shall be satisfactory to the Trustee) before a Redemption Date, the
Trustee shall give the notice of redemption in the name and at the expense of
the Company.  If, however, the Company
gives such notice to the Holders, the Company shall concurrently deliver to the
Trustee an Officers’ Certificate stating that such notice has been given.

 

SECTION 3.05.            Effect of Notice of Redemption.  Once notice of redemption is mailed, Notes
called for redemption become due and payable on the Redemption Date and at the
Redemption Price, unless the redemption is conditioned upon the occurrence of a
subsequent event.  Upon surrender of any
Notes to the Paying Agent, unless such redemption is conditioned upon the
occurrence of a subsequent event, such Notes shall be paid at the Redemption
Price, plus accrued interest and Additional Interest, if any, to the Redemption
Date.

 

Notice of
redemption shall be deemed to be given when mailed, whether or not the Holder
receives the notice.  In any event,
failure to give such notice, or any defect therein,

 

51

 

shall not
affect the validity of the proceedings for the redemption of Notes held by
Holders to whom such notice was properly given.

 

SECTION 3.06.            Deposit of Redemption Price.  On or before 12:00 noon (New York City
time) one Business Day prior to any Redemption Date, the Company shall deposit
with the Paying Agent (or, if the Company is acting as its own Paying Agent,
shall segregate and hold in trust as provided in Section 2.06) money sufficient
to pay the Redemption Price of and accrued interest on all Notes to be redeemed
on that date other than Notes or portions thereof called for redemption on that
date that have been delivered by the Company to the Trustee for cancellation.

 

SECTION 3.07.            Payment of Notes Called for
Redemption.  If notice of redemption
has been given in the manner provided above, and unless such redemption is
conditioned upon a subsequent event, the Notes or portion of Notes specified in
such notice to be redeemed shall become due and payable on the Redemption Date
at the Redemption Price stated therein, together with accrued interest and
Additional Interest, if any, to such Redemption Date, and so long as the
Company has deposited with the Paying Agent funds in satisfaction of the Redemption
Price pursuant to the terms of this Indenture on and after such date (unless
the Company shall default in the payment of such Notes at the Redemption Price
and accrued interest and Additional Interest, if any, to the Redemption Date,
in which case the principal, until paid, shall bear interest from the
Redemption Date at the rate prescribed in the Notes), such Notes shall cease to
accrue interest.  Upon surrender of any
Note for redemption in accordance with a notice of redemption, such Note shall
be paid and redeemed by the Company at the Redemption Price, together with
accrued interest, if any, to the Redemption Date; provided that installments
of interest whose Stated Maturity is on or prior to the Redemption Date shall
be payable to the Holders registered as such at the close of business on the
relevant Regular Record Date.

 

SECTION 3.08.            Notes Redeemed in Part.  Upon surrender of any Note that is redeemed
in part, the Company shall execute and the Trustee shall authenticate and
deliver to the Holder a new Note equal in principal amount to the unredeemed
portion of such surrendered Note, which shall not, in any event be less than $1,000
principal amount.  In the case of a
partial redemption of Global Notes, the Trustee shall endorse Schedule A to
each Global Note surrendered for redemption to reflect the decrease in
principal amount resulting from such redemption.

 

ARTICLE FOUR

COVENANTS

 

SECTION 4.01.            Payment of Notes.  The Company shall pay the principal of,
Additional Interest, if any, and interest on the Notes on or before 12:00 noon
(New York City time) one Business Day prior to the dates due for such payments
and in the manner provided in the Notes and this Indenture.  An installment of principal, Additional
Interest, if any, or interest shall be considered paid on the date due if the
Trustee or Paying Agent (other than the Company, a Subsidiary of the Company,
or any Affiliate of any of them) holds on that date money designated for and
sufficient to pay the installment unless the provisions of Article Ten
hereof prohibit such payment.  Upon a
bankruptcy or reorganization procedure relative to the Company, the Trustee
shall serve as the Paying Agent, if any, for the Notes.

 

52

 

The Company
shall pay interest on overdue principal, Additional Interest, if any, and
interest on overdue installments of interest, to the extent lawful, at the rate
per annum then borne upon the Notes.

 

SECTION 4.02.            Maintenance of Office or Agency.  The Company shall maintain the offices and
agencies specified in Section 2.04.

 

SECTION 4.03.            Limitation on Incurrence of Additional
Indebtedness.  The Company shall
not, and shall not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, assume, guarantee, acquire, become liable,
contingently or otherwise, with respect to, or otherwise become responsible for
payment of (collectively, “incur”) any Indebtedness (other than
Permitted Indebtedness); provided, however, that if no Default
or Event of Default shall have occurred and be continuing at the time of or as
a consequence of the incurrence of any such Indebtedness, the Company and the
Guarantors may incur Indebtedness (including, without limitation, Acquired
Indebtedness) and any Restricted Subsidiary of the Company that is not or will
not, upon such incurrence, become a Guarantor may incur Acquired Indebtedness,
in each case if on the date of the incurrence of such Indebtedness, after
giving effect to the incurrence thereof, the Consolidated Fixed Charge Coverage
Ratio of the Company is greater than 2.25 to 1.0.

 

The Company
will not, and will not permit any Guarantor to, directly or indirectly, incur
any Indebtedness which by its terms (or by the terms of any agreement governing
such Indebtedness) is expressly subordinated in right of payment to any other
Indebtedness of the Company or such Guarantor, as the case may be, unless such
Indebtedness is also by its terms (or by the terms of any agreement governing
such Indebtedness) made expressly subordinate to the Notes or the applicable
Guarantee, as the case may be, to the same extent and in the same manner as
such Indebtedness is subordinated to other Indebtedness of the Company or such
Guarantor, as the case may be.  For
purposes of the foregoing, no Indebtedness will be deemed to be subordinated in
right of payment to any other Indebtedness of the Company or any Guarantor
solely by virtue of such Indebtedness being unsecured or by virtue of the fact
that the holders of such Indebtedness have entered into one or more
intercreditor agreements giving one or more of such holders priority over the
other holders in the collateral held by them.

 

SECTION 4.04.            RESERVED.

 

SECTION 4.05.            Limitation on Restricted Payments.  (a) 
The Company shall not, and shall not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly:

 

(1)           declare or pay any
dividend or make any distribution (other than dividends or distributions
payable in Qualified Capital Stock of the Company) on or in respect of shares
of the Company’s Capital Stock to holders of such Capital Stock;

 

(2)           purchase, redeem or
otherwise acquire or retire for value any Capital Stock of the Company or any
warrants, rights or options to purchase or acquire shares of any class of such
Capital Stock;

 

53

 

(3)           make any principal
payment on, purchase, defease, redeem, prepay, decrease or otherwise acquire or
retire for value, earlier than one year prior to any scheduled final maturity,
scheduled repayment or scheduled sinking fund payment, any Subordinated Indebtedness;
or

 

(4)           make any Investment (other
than Permitted Investments)

 

(each of the
foregoing actions set forth in clauses (1), (2), (3) and (4) being referred to
as a “Restricted Payment”), if at the time of such Restricted Payment or
immediately after giving effect thereto,

 

(i)            a Default or an
Event of Default shall have occurred and be continuing; or

 

(ii)            the Company is not
able to incur at least $1.00 of additional Indebtedness (other than Permitted
Indebtedness) in compliance with Section 4.03; or

 

(iii)          the aggregate
amount of Restricted Payments (including such proposed Restricted Payment) made
subsequent to the Issue Date (the amount expended for such purposes, if other
than in cash, being the fair market value of such property as determined in
good faith by the Board of Directors of the Company) shall exceed the sum of:

 

(w)          50%
of the cumulative Consolidated Net Income (or if cumulative Consolidated Net Income
shall be a loss, minus 100% of such loss) of the Company earned subsequent to
the Issue Date and on or prior to the date the Restricted Payment occurs (the “Reference
Date”) (treating such period as a single accounting period); plus

 

(x)            100%
of the aggregate net cash proceeds received by the Company from any Person
(other than a Subsidiary of the Company) from the issuance and sale subsequent
to the Issue Date and on or prior to the Reference Date of Qualified Capital
Stock of the Company; plus

 

(y)           without
duplication of any amounts included in clause (iii)(x) above, 100% of the aggregate
net cash proceeds of any equity contribution received by the Company from a
holder of the Company’s Capital Stock (excluding, in the case of clauses
(iii)(x) and (y), any net cash proceeds from a Public Equity Offering to the
extent used to redeem the Notes in compliance with the provisions set forth
under Section 3.01); plus

 

(z)            without
duplication, the sum of:

 

(1)           the
aggregate amount returned in cash on or with respect to Investments (other than
Permitted Investments) made subsequent to the Issue Date whether through
interest payments, principal payments, dividends or other distributions or payments;

 

54

 

(2)           the
net cash proceeds received by the Company or any of its Restricted Subsidiaries
from the disposition of all or any portion of such Investments (other than to a
Subsidiary of the Company); and

 

(3)           upon
redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, the
fair market value of such Subsidiary;

 

provided, however,
that the sum of clauses (z) (1) through (3) above shall not exceed the
aggregate amount of all such Investments made subsequent to the Issue Date.

 

(b)           Notwithstanding the foregoing, the
provisions set forth in the immediately preceding paragraph do not prohibit:

 

(1)           the payment of any
dividend within 60 days after the date of declaration of such dividend if the
dividend would have been permitted on the date of declaration;

 

(2)           if no Default or
Event of Default shall have occurred and be continuing, the acquisition of any
shares of Capital Stock of the Company, either (i) solely in exchange for
shares of Qualified Capital Stock of the Company or (ii) through the application
of net proceeds of a substantially concurrent sale for cash (other than to a
Subsidiary of the Company) of shares of Qualified Capital Stock of the Company;

 

(3)           if no Default or
Event of Default shall have occurred and be continuing, the acquisition of any
Indebtedness of the Company or a Guarantor that is subordinate or junior in
right of payment to the Notes or such Guarantor’s Guarantee, as the case may
be, either (i) solely in exchange for shares of Qualified Capital Stock of the
Company, or (ii) through the application of net proceeds of a substantially
concurrent sale for cash (other than to a Subsidiary of the Company) of
(a) shares of Qualified Capital Stock of the Company or
(b) Refinancing Indebtedness;

 

(4)           if no Default or
Event of Default shall have occurred and be continuing, repurchases by the
Company of Common Stock of the Company (or options or warrants to purchase such
Common Stock) from directors, officers and employees of the Company or any of
its Subsidiaries or their authorized representatives upon the death,
disability, retirement or termination of employment of such directors, officers
or employees, in an aggregate amount not to exceed $500,000 in any calendar
year;

 

(5)           if no Default or
Event of Default shall have occurred and be continuing, Restricted Payments in
an amount not to exceed $5.0 million;

 

(6)           if no Default or
Event of Default shall have occurred and be continuing, any transfer or other
disposition of Capital Stock of the Company or any Subsidiary of the Company,
pursuant to an Inversion Transaction; provided that (i) the Supplemental
Indenture is executed and in effect concurrently with the consummation of such
Inversion Transaction; (ii) immediately following such Inversion
Transaction, the Company shall

 

55

 

apply to
S&P and Moody’s to have its debt rating and outlook updated and such
updated debt rating and outlook shall be no less favorable to the Company than
immediately prior to such Inversion Transaction; (iii) immediately
following such Inversion Transaction, the Company’s Consolidated Fixed Charge
Coverage Ratio is at least equal to the Consolidated Fixed Charge Coverage
Ratio immediately prior to such Inversion Transaction; and
(iv) immediately following such Inversion Transaction, the Company is able
to incur at least $1.00 of additional Indebtedness (other than Permitted
Indebtedness) in compliance Section 4.03;

 

(7)           in the event of a
Change of Control, and if no Default or Event of Default shall have occurred
and be continuing, the payment, purchase, redemption, defeasance or other
acquisition or retirement of Subordinated Indebtedness of the Company or any
Guarantor, in each case at a purchase price not greater than 101% of the
principal amount of such Subordinated Indebtedness, plus accrued and unpaid
interest thereon; provided, however, that prior to such payment,
purchase, redemption, defeasance or other acquisition or retirement, the
Company (or a third party to the extent permitted by the Indenture) has made a
Change of Control Offer with respect the notes offered hereby as a result of
such Change of Control and has repurchased all notes validly tendered and not
withdrawn in connection with such Change of Control Offer;

 

(8)           in the event of an
Asset Sale that requires the Company to offer to repurchase notes pursuant to
the covenant described under “Limitation on Asset Sales,” and if no Default or
Event of Default shall have occurred and be continuing, the payment, purchase,
redemption, defeasance or other acquisition or retirement of Subordinated Indebtedness
of the Company or any Guarantor, in each case at a purchase price not greater
than 100% of the principal amount of such Subordinated Indebtedness, plus
accrued and unpaid interest thereon; provided, however, that (A) prior to
such payment, purchase, redemption, defeasance or other acquisition or
retirement, the Company has made an offer with respect to the notes offered
hereby pursuant to the provisions of the covenant described under “Limitation
on Asset Sales” and has repurchased all notes validly tendered and not
withdrawn in connection with such offer and (B) the aggregate amount of all
such payments, purchases, redemptions, defeasances or other acquisitions or
retirements of all such Subordinated Indebtedness may not exceed the amount of
the Net Cash Proceeds Amount remaining after the Company has complied with
clause (3) Section 4.10; and

 

(9)           if no Default or
Event of Default shall have occurred and be continuing, the repurchase or other
acquisition of Subordinated Indebtedness outstanding on the Issue Date in an
amount not to exceed $200.0 million provided that for purposes of this clause
(9), the U.S. dollar-equivalent of any such Subordinated Indebtedness
denominated in a foreign currency will be calculated based on the relevant
currency exchange rate on the date that such Subordinated Indebtedness was incurred;
and provided,
further, that
immediately following such repurchase or other acquisition, the Company is able
to incur at least $1.0 of additional Indebtedness (other than Permitted
Indebtedness) in compliance with Section 4.03.

 

56

 

In determining
the aggregate amount of Restricted Payments made subsequent to the Issue Date
in accordance with Section 4.05(a)(4)(iii), amounts expended pursuant to
Section 4.05(b) (1), (2)(ii), 3(ii)(a), (4), (5), (7) and (8) shall be
included in such calculation.

 

SECTION 4.06.            Limitation on Dividend and Other
Payment Restrictions Affecting Restricted Subsidiaries. The Company shall
not, and shall not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, create or otherwise cause or permit to exist or become
effective any encumbrance or restriction on the ability of any Restricted Subsidiary
of the Company to:

 

(1)           pay dividends or
make any other distributions on or in respect of its Capital Stock;

 

(2)           make loans or
advances or to pay any Indebtedness or other obligation owed to the Company or
any other Restricted Subsidiary of the Company; or

 

(3)           transfer any of its
property or assets to the Company or any other Restricted Subsidiary of the
Company;

 

in each case
except for such encumbrances or restrictions existing under or by reason of:

 

(a)           applicable law;

 

(b)           the Notes or this
Indenture;

 

(c)           customary
non-assignment provisions of any contract or any lease governing a leasehold
interest of any Restricted Subsidiary of the Company;

 

(d)           any instrument
governing Acquired Indebtedness, which encumbrance or restriction is not applicable
to any Person, or the properties or assets of any Person, other than the Person
or the properties or assets of the Person so acquired;

 

(e)           agreements existing
on the Issue Date to the extent and in the manner such agreements are in effect
on the Issue Date;

 

(f)            the Credit
Agreement or an agreement governing other Pari Passu Indebtedness permitted to
be incurred under this Indenture; provided that, with respect to any
agreement governing such other Pari Passu Indebtedness, the provisions relating
to such encumbrance or restriction are no less favorable to the Company in any
material respect as determined by the Board of Directors of the Company in its
reasonable and good faith judgment than the provisions contained in the Credit
Agreement as in effect on the Issue Date;

 

(g)           restrictions on the
transfer of assets subject to any Lien permitted under this Indenture imposed
by the holder of such Lien;

 

57

 

(h)           restrictions imposed
by any agreement to sell assets or Capital Stock permitted under this Indenture
to any Person pending the closing of such sale;

 

(i)            restrictions
imposed by agreements governing Indebtedness of a Foreign Restricted Subsidiary
incurred pursuant to clauses (14) and (19) of the definition of “Permitted
Indebtedness;”

 

(j)            restrictions on
cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business;

 

(k)           any Purchase Money
Note or other Indebtedness or other contractual requirements of a Securitization
Entity in connection with a Qualified Securitization Transaction; provided
that such restrictions apply only to such Securitization Entity;

 

(l)            customary
provisions in joint venture agreements and other similar agreements (in each
case relating solely to the respective joint venture or similar entity or the
equity interests therein) entered into in the ordinary course of business; and

 

(m)          an agreement
governing Indebtedness incurred to Refinance the Indebtedness issued, assumed
or incurred pursuant to an agreement referred to in clauses (b) and (d) through
(l) above; provided,
however,
that the provisions relating to such encumbrance or restriction contained in
any such agreements are no less favorable to the Company in any material
respect as determined by the Board of Directors of the Company in their
reasonable and good faith judgment than the provisions relating to such
encumbrance or restriction contained in agreements referred to in such clauses
(b) and (d) through (l) above.

 

SECTION 4.07.            Limitation on Preferred Stock of
Restricted Subsidiaries.  The
Company shall not permit any of its Restricted Subsidiaries that are not
Guarantors to issue any Preferred Stock (other than to the Company or to a
Wholly Owned Restricted Subsidiary of the Company) or permit any Person (other
than the Company or a Wholly Owned Restricted Subsidiary of the Company) to own
any Preferred Stock of any Restricted Subsidiary of the Company that is not a
Guarantor.

 

SECTION 4.08.            Limitation on Transactions with
Affiliates.  (a)  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly, enter into or
permit to exist any transaction or series of related transactions (including,
without limitation, the purchase, sale, lease or exchange of any property or
the rendering of any service) with, or for the benefit of, any of its
Affiliates (each, an “Affiliate Transaction”), other than (x) Affiliate
Transactions permitted under Section 4.08(b) and (y) Affiliate Transactions on
terms that are no less favorable than those that might reasonably have been
obtained in a comparable transaction at such time on an arm’s-length basis from
a Person that is not an Affiliate of the Company or such Restricted Subsidiary.

 

58

 

All Affiliate
Transactions (and each series of related Affiliate Transactions which are
similar or part of a common plan)  involving
aggregate payments or other property with a fair market value in excess of $5.0
million shall be approved by the Board of Directors of the Company or such
Restricted Subsidiary, as the case may be, such approval to be evidenced by a
Board Resolution stating that such Board of Directors has determined that such
transaction complies with the foregoing provisions.  If the Company or any Restricted Subsidiary of the Company enters
into an Affiliate Transaction (or a series of related Affiliate Transactions
related to a common plan) that involves an aggregate fair market value of more
than $10.0 million, the Company or such Restricted Subsidiary, as the case
may be, shall, prior to the consummation thereof, obtain a favorable opinion as
to the fairness of such transaction or series of related transactions to the
Company or the relevant Restricted Subsidiary, as the case may be, from a financial
point of view, from an Independent Financial Advisor and file the same with the
Trustee.

 

(b)           The restrictions set
forth in Section 4.08(a) shall not apply to:

 

(1)           reasonable fees and
compensation paid to and indemnity provided on behalf of, officers, directors,
employees or consultants of the Company or any Restricted Subsidiary of the Company
as determined in good faith by the Company’s Board of Directors or senior
management;

 

(2)           transactions
exclusively between or among the Company and any of its Restricted Subsidiaries
or exclusively between or among such Restricted Subsidiaries; provided such
transactions are not otherwise prohibited by this Indenture;

 

(3)           any agreement as in
effect as of the Issue Date or any amendment thereto or any transaction
contemplated thereby (including pursuant to any amendment thereto) in any
replacement agreement thereto so long as any such amendment or replacement
agreement is not more disadvantageous to the Holders in any material respect
than the original agreement as in effect on the Issue Date;

 

(4)           Restricted Payments
or Permitted Investments permitted by this Indenture;

 

(5)           transactions between
the Company or any of its Subsidiaries and any Securitization Entity in
connection with a Qualified Securitization Transaction, in each case provided
that such transactions are not otherwise prohibited by this Indenture; and

 

(6)           transactions
undertaken pursuant to an Inversion Transaction; provided that (i) the
Supplemental Indenture is executed and in effect concurrently with the consummation
of such Inversion Transaction; (ii) immediately following such Inversion
Transaction, the Company shall apply to S&P and Moody’s to have its debt
rating and outlook updated and such updated debt rating and outlook shall be no
less favorable to the Company than immediately prior to such Inversion Transaction;
(iii) immediately following such Inversion Transaction, the Company’s
Consolidated Fixed Charge Coverage Ratio is at least equal to the Consolidated
Fixed Charge Coverage Ratio immediately prior to such Inversion Transaction;
and (iv) immediately following such Inversion Transaction, the Company is
able to incur at least $1.00 of additional Indebtedness (other than Permitted
Indebtedness) in compliance with Section 4.03.

 

59

 

SECTION 4.09.            Limitation on Liens.  The Company shall not, and shall not cause
or permit any of its Restricted Subsidiaries to, directly or indirectly,
create, incur, assume or permit or suffer to exist any Liens of any kind
against or upon any property or assets of the Company or any of its Restricted
Subsidiaries whether owned on the Issue Date or acquired after the Issue Date,
or any proceeds therefrom, or assign or otherwise convey any right to receive
income or profits therefrom unless:

 

(1)           in the case of Liens
securing Indebtedness that is expressly subordinate or junior in right of
payment to the Notes or the Guarantees, the Notes or the Guarantees are secured
by a Lien on such property, assets or proceeds that is senior in priority to
such Liens; and

 

(2)           in all other cases,
the Notes or the Guarantees, as the case may be, are equally and ratably
secured, except for:

 

(a)           Liens existing as of
the Issue Date to the extent and in the manner such Liens are in effect on the
Issue Date;

 

(b)           Liens securing
borrowings under the Credit Agreement (whether incurred pursuant to clause (2)
of the definition of Permitted Indebtedness, the Consolidated Fixed Charge
Coverage Ratio or as otherwise in compliance with Section 4.03;

 

(c)           Liens securing the
Notes and the Guarantees;

 

(d)           Liens of the Company
or a Wholly Owned Restricted Subsidiary of the Company on assets of any Restricted
Subsidiary of the Company and Liens on assets of the Company in favor of a
Wholly Owned Restricted Subsidiary that is a Guarantor;

 

(e)           Liens securing
Refinancing Indebtedness which is incurred to Refinance any Indebtedness that
has been secured by a Lien permitted under this Indenture and that has been
incurred without violation of this Indenture; provided, however,
that such Liens:  (i) are no less
favorable to the Holders and are not more favorable to the lienholders, in each
case in any material respect, with respect to such Liens than the Liens in
respect of the Indebtedness being Refinanced; and (ii) do not extend to or
cover any categories of property or assets of the Company or any of its
Restricted Subsidiaries not securing the Indebtedness so Refinanced; and

 

(f)            Permitted Liens.

 

SECTION 4.10.            Limitation on Asset Sales.  (a)  The Company shall not, and
shall not permit any of its Restricted Subsidiaries to, consummate an Asset
Sale unless:

 

(1)           the
Company or the applicable Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the fair market

 

60

 

value of the assets sold or otherwise disposed of (as determined in
good faith by the Company’s Board of Directors);

 

(2)           at
least 75% of the consideration received by the Company or the Restricted Subsidiary,
as the case may be, from such Asset Sale shall be in the form of cash or Cash
Equivalents and shall be received at the time of such disposition; provided
that, for purposes of this clause (2) any securities, notes or other
obligations received by the Company or any such Restricted Subsidiary from such
transferee that are converted by the Company or such Restricted Subsidiary into
cash or Cash Equivalents (to the extent of the cash or Cash Equivalents
received) within 30 days after receipt will be considered “cash” or “Cash
Equivalents”; and

 

(3)           upon
the consummation of an Asset Sale, the Company shall apply, or cause such Restricted
Subsidiary to apply, the Net Cash Proceeds relating to such Asset Sale within
365 days of receipt thereof either:

 

(a)           to permanently
reduce Indebtedness under the Credit Agreement and, in the case of any such Indebtedness
under any revolving credit facility, effect a permanent reduction in the
availability under such revolving credit facility;

 

(b)           to make an
investment in  properties and assets
that replace the properties and assets that were the subject of such Asset Sale
or in properties and assets (including Capital Stock) that will be used in the
business of the Company and its Restricted Subsidiaries as existing on the
Issue Date or in businesses reasonably related thereto (“Replacement Assets”);
or

 

(c)           a combination of
prepayment and investment permitted by the foregoing clauses (3)(a) and (3)(b).

 

(b)              On the 366th day
after an Asset Sale or such earlier date, if any, as the Board of Directors of
the Company or of such Restricted Subsidiary determines not to apply the Net
Cash Proceeds relating to such Asset Sale as set forth in clauses (3)(a),
(3)(b) and (3)(c) of Section 4.10(a) (each, a “Net Proceeds Offer Trigger
Date”), such aggregate amount of Net Cash Proceeds that have not been applied
on or before such Net Proceeds Offer Trigger Date as permitted in
clauses (3)(a), (3)(b) and (3)(c) of Section 4.10(a) or the last proviso
of this paragraph (each, a “Net Proceeds Offer Amount”) shall be applied
by the Company or such Restricted Subsidiary to make an offer to purchase (the
“Net Proceeds Offer”) to all Holders and, to the extent required by the
terms of any Pari Passu Indebtedness, to all holders of such Pari Passu Indebtedness,
on a date (the “Net Proceeds Offer Payment Date”) not less than 30 nor
more than 45 days following the applicable Net Proceeds Offer Trigger Date,
from all Holders (and holders of such Pari Passu Indebtedness) (and holders of
any such Pari Passu Indebtedness) on a pro rata basis, the maximum amount of
Notes and Pari Passu Indebtedness that may be purchased with the Net Proceeds
Offer Amount at a price equal to 100% of the principal amount of the Notes and
Pari Passu Indebtedness to be purchased, plus accrued and unpaid interest
thereon, if any, to the date of purchase; provided, however, that if at any time
any non-cash consideration received by the Company or any Restricted Subsidiary
of the Company, as the case may be, in connection with any Asset Sale is
converted into or sold or otherwise disposed of for cash (other than interest
received

 

61

 

with respect
to any such non-cash consideration), then such conversion or disposition shall
be deemed to constitute an Asset Sale hereunder and the Net Cash Proceeds thereof
shall be applied in accordance with this Section 4.10.

 

The Company
may defer the Net Proceeds Offer until there is an aggregate unutilized Net
Proceeds Offer Amount equal to or in excess of $10.0 million resulting
from one or more Asset Sales (at which time, the entire unutilized Net Proceeds
Offer Amount, and not just the amount in excess of $10.0 million, shall be
applied as required pursuant to this Section 4.10(b)).

 

In the event
of the transfer of substantially all (but not all) of the property and assets
of the Company and its Restricted Subsidiaries as an entirety to a Person in a
transaction permitted under Section 5.01, which transaction does not constitute
a Change of Control, the successor corporation shall be deemed to have sold the
properties and assets of the Company and its Restricted Subsidiaries not so
transferred for purposes of this Section 4.10 and shall comply with the
provisions of this Section 4.10 with respect to such deemed sale as if it were
an Asset Sale.  In addition, the fair
market value of such properties and assets of the Company or its Restricted
Subsidiaries deemed to be sold shall be deemed to be Net Cash Proceeds for purposes
of this Section 4.10.

 

(c)              Notwithstanding
Sections 4.10(a) and (b), the Company and its Restricted Subsidiaries will
be permitted to consummate an Asset Sale without complying with such Sections
to the extent that:

 

(1)           at
least 75% of the consideration for such Asset Sale constitutes Replacement
Assets; and

 

(2)           such
Asset Sale is for fair market value; provided that any consideration not
constituting Replacement Assets received by the Company or any of its
Restricted Subsidiaries in connection with any Asset Sale permitted to be consummated
under this Section 4.10(c) shall constitute Net Cash Proceeds subject to the
provisions of Sections 4.10(a) and (b).

 

The provisions
of this Section 4.10 shall not apply to transactions undertaken pursuant to an
Inversion Transaction; provided that (i) the Supplemental
Indenture is executed and in effect concurrently with the consummation of such
Inversion Transaction; (ii) immediately following such Inversion
Transaction, the Company shall apply to S&P and Moody’s to have its debt
rating and outlook updated and such updated debt rating and outlook shall be no
less favorable to the Company than immediately prior to such Inversion
Transaction; (iii) immediately following such Inversion Transaction, the
Company’s Consolidated Fixed Charge Coverage Ratio is at least equal to the
Consolidated Fixed Charge Coverage Ratio immediately prior to such Inversion
Transaction; and (iv) immediately following such Inversion Transaction,
the Company is able to incur at least $1.00 of additional Indebtedness (other
than Permitted Indebtedness) in compliance with Section 4.03.

 

Each Net
Proceeds Offer will be mailed to the record Holders as shown on the register of
Holders within 25 days following the Net Proceeds Offer Trigger Date, with a
copy to

 

62

 

the Trustee,
and shall comply with the procedures set forth in this Indenture.  The notice to the Holders shall contain all
instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Net Proceeds Offer. 
Such notice shall state:

 

(1)           that the Net
Proceeds Offer is being made pursuant to this Section 4.10 and that (subject to
the provisions hereof) all Notes tendered will be accepted for payment;

 

(2)           the purchase price
(including the amount of accrued interest) and the purchase date (which shall
be the Net Proceeds Offer Payment Date);

 

(3)           that any Note not
tendered will continue to accrue interest if interest is then accruing;

 

(4)           that, unless the
Company defaults in making payment therefor, any Note accepted for payment
pursuant to the Net Proceeds Offer shall cease to accrue interest after the Net
Proceeds Offer Payment Date;

 

(5)           that Holders
electing to have a Note purchased pursuant to a Net Proceeds Offer will be
required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of the Note completed, to the Paying Agent at
the address specified in the notice prior to the close of business on the third
business day prior to the Net Proceeds Offer Payment Date;

 

(6)           that Holders will be
entitled to withdraw their election if the Paying Agent receives, not later
than 5:00 p.m., New York City time, on the second Business Day preceding the
Net Proceeds Offer Date, a facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Notes the Holder delivered for
purchase and a statement that such Holder is withdrawing his election to have
such Note purchased; and

 

(7)           the circumstances
and relevant facts regarding such Net Proceeds Offer.

 

Upon receiving
notice of the Net Proceeds Offer, Holders may elect to tender their Notes in
whole or in part in integral multiples of $1000 in exchange for cash.  To the extent Holders properly tender Notes
and holders of Pari Passu Indebtedness properly tender such Pari Passu
Indebtedness in an amount exceeding the Net Proceeds Offer Amount, the tendered
Notes and Pari Passu Indebredness will be purchased on a pro rata basis (based on
amounts tendered) in an aggregate amount equal to the Net Proceeds Offer Amount
(if any).  A Net Proceeds Offer shall remain
open for a period of 20 business days or such longer period as may be required
by law.

 

The Company
shall comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and
regulations are applicable in connection with the repurchase of Notes pursuant
to a Net Proceeds Offer.  To the extent
that the provisions of any securities laws or regulations conflict with this

 

63

 

Section 4.10,
the Company shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached its obligations under this
Section 4.10 by virtue thereof.

 

SECTION 4.11.            Repurchase of Notes upon a Change
of Control.  (a)  Upon the
occurrence of a Change of Control, each Holder will have the right to require
that the Company purchase all or a portion of such Holder’s Notes pursuant to
the offer described below (the “Change of Control Offer”), at a purchase
price equal to 101% of the principal amount thereof plus accrued and unpaid
interest thereon to the date of purchase.

 

Within 30 days
following the date upon which the Change of Control occurred, the Company must
send, by first class mail, a notice to each Holder, with a copy to the Trustee,
which notice shall govern the terms of the Change of Control Offer.  Such notice shall state, among other things,
the purchase date, which, unless otherwise required by law, must be no earlier
than 30 days nor later than 60 days from the date such notice is mailed (the “Change
of Control Payment Date”).  The
notice to the Holders shall contain all instructions and materials necessary to
enable such Holders to tender Notes pursuant to the Change of Control
Offer.  Such notice shall state:

 

(1)           that
the Change of Control Offer is being made pursuant to this Section 4.11 and
that all Notes tendered will be accepted for payment;

 

(2)           the
purchase price (including the amount of accrued interest) and the purchase date
(which shall be no earlier than the Change of Control Payment Date);

 

(3)           that
any Note not tendered will continue to accrue interest if interest is then accruing;

 

(4)           that,
unless the Company defaults in making payment therefor, any Note accepted for
payment pursuant to the Change of Control Offer shall cease to accrue interest
after the Change of Control Payment Date;

 

(5)           that
Holders electing to have a Note purchased pursuant to a Change of Control Offer
will be required to surrender the Note, with the form entitled “Option of
Holder to Elect Purchase” on the reverse of the Note completed, to the Paying
Agent at the address specified in the notice prior to the close of business on
the third business day prior to the Change of Control Payment Date;

 

(6)           that
Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than 5:00 p.m., New York City time, on the second Business
Day preceding the Change of Control Payment Date, a facsimile transmission or
letter setting forth the name of the Holder, the principal amount of the Notes
the Holder delivered for purchase and a statement that such Holder is
withdrawing his election to have such Note purchased; and

 

(7)           the
circumstances and relevant facts regarding such Change of Control.

 

64

 

(b)              The Company shall
comply with the requirements of Rule 14e-1 under the Exchange Act and any other
securities laws and regulations thereunder to the extent such laws and
regulations are applicable in connection with the repurchase of Notes pursuant
to a Change of Control Offer.  To the
extent that the provisions of any securities laws or regulations conflict with
this Section 4.11, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
this Section 4.11 by virtue thereof.

 

Notwithstanding
anything to the contrary in this section, the Company shall not be required to
make a Change of Control Offer upon a Change of Control if a third party makes
the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this section and purchases all
notes validly tendered and not withdrawn under such Change of Control Offer.

 

SECTION 4.12.            Additional Subsidiary Guarantees.  If any existing or future Domestic
Restricted Subsidiary shall, after the Issue Date, guarantee any Indebtedness
of the Company or a Guarantor, then the Company shall cause such Domestic
Restricted Subsidiary to:

 

(1)           execute and deliver
to the Trustee a supplemental indenture in form reasonably satisfactory to the
Trustee pursuant to which such Domestic Restricted Subsidiary shall
unconditionally guarantee all of the Company’s obligations under the Notes and
this Indenture on the terms set forth herein; and

 

(2)           deliver to the
Trustee an opinion of counsel that such supplemental indenture has been duly
authorized, executed and delivered by such Domestic Restricted Subsidiary and
constitutes a legal, valid, binding and enforceable obligation of such Domestic
Restricted Subsidiary.

 

Thereafter,
such Domestic Restricted Subsidiary shall be a Guarantor for all purposes of
this Indenture until such Domestic Restricted Subsidiary is released from its
Guarantee as provided in this Indenture.

 

SECTION 4.13.            Existence.  Subject to Article Five of this Indenture,
the Company shall do or cause to be done all things necessary to preserve and
keep in full force and effect its existence and the existence of each
Restricted Subsidiary in accordance with the respective organizational
documents of the Company and each Restricted Subsidiary and the rights (whether
pursuant to charter, partnership certificate, agreement, statute or otherwise),
material licenses and franchises of the Company and each Restricted Subsidiary;
provided
that the Company shall not be required to preserve any such right, license or
franchise, or the existence of any Restricted Subsidiary, if the maintenance or
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Restricted Subsidiaries taken as a whole.

 

SECTION 4.14.            Payment of Taxes and Other Claims.  The Company shall pay or discharge and shall
cause each of its Restricted Subsidiaries to pay or discharge, or cause to be
paid or discharged, before the same shall become delinquent (i) all material
taxes, assessments and governmental charges levied or imposed upon (a) the
Company or any such Restricted Subsidiary, (b) the income or profits of any
such Restricted Subsidiary which is a corporation or (c)

 

65

 

the property
of the Company or any such Restricted Subsidiaries and (ii) all material lawful
claims for labor, materials and supplies that, if unpaid, might by law become a
Lien upon the property of the Company or any such Restricted Subsidiary; provided
that neither the Company nor any such Restricted Subsidiary shall be required
to pay or discharge, or cause to be paid or discharged, any such tax, assessment,
charge or claim the amount, applicability or validity of which is being
contested in good faith by appropriate proceedings and for which adequate reserves
have been established in accordance with GAAP.

 

SECTION 4.15.            Reports to Holders.  Whether or not required by the rules and
regulations of the Commission, so long as any Notes are outstanding, the
Company shall furnish the Holders of Notes:

 

(1)           all quarterly and
annual financial information that would be required to be contained in a filing
with the Commission on Forms 10-Q and 10-K if the Company were required to file
such Forms, including a “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” that describes the financial condition and
results of operations of the Company and its consolidated Subsidiaries (showing
in reasonable detail, either on the face of the financial statements or in the
footnotes thereto and in Management’s Discussion and Analysis of Financial
Condition and Results of Operations, the financial condition and results of operations
of the Company and its Restricted Subsidiaries separate from the financial
condition and results of operations of the Unrestricted Subsidiaries of the
Company, if any) and, with respect to the annual information only, a report
thereon by the Company’s certified independent accounts; and

 

(2)           all current reports
that would be required to be filed with the Commission on Form 8-K if the
Company were required to file such reports, in each case within the time
periods specified in the Commission’s rules and regulations.

 

In addition,
whether or not required by the rules and regulations of the Commission, the
Company shall file a copy of all such information and reports with the
Commission for public availability within the time periods specified in the Commission’s
rules and regulations (unless the Commission will not accept such a filing) and
make such information available to securities analysts and prospective
investors upon request.  In addition,
the Company has agreed that, for so long as any Notes remain outstanding, it
shall furnish to the Holders and to securities analysts and prospective
investors, upon their request, the information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act.

 

SECTION 4.16.            Conduct of Business.  The Company shall not, and shall not permit
any Restricted Subsidiary to, engage in any businesses that are not the same,
similar or reasonably related to the businesses in which the Company and its
Restricted Subsidiaries are engaged on the Issue Date.

 

SECTION 4.17.            Waiver of Stay, Extension or
Usury Laws.  Each of the Company and
any Guarantor covenants (to the extent that it may lawfully do so) that it
shall not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law or any usury law
or other law that would prohibit or forgive the Company or such Guarantor from
paying all or any portion of the principal of, premium, if

 

66

 

any, or
interest on the Notes as contemplated herein, wherever enacted, now or at any
time hereafter in force, or that may affect the covenants or the performance of
this Indenture; and (to the extent that it may lawfully do so) each of the
Company and any Guarantor hereby expressly waives all benefit or advantage of
any such law and covenants that it shall not hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

 

SECTION 4.18.            Compliance
Certificates.  (a)  The Company shall deliver to the
Trustee within 90 days after the end of each fiscal year, commencing with the
fiscal year ending December 31, 2003, an Officers’ Certificate (which
shall be signed by the Chief Financial Officer of the Company) stating (i)
that, a review has been conducted of the activities of the Company and its
Restricted Subsidiaries under the supervision of the signing Officer with a
view to determining whether the Company has kept, observed, performed and fulfilled
its obligations under this Indenture, and (ii) that, to the best knowledge of
the Officer signing such certificate, the Company has kept, observed, performed
and fulfilled each and every covenant and condition contained in this Indenture
and is not in default in the performance or observance of any of the terms,
provisions, conditions and covenants hereof (or, if a Default or Event of
Default shall have occurred, specifying each such Default or Event of Default
and describing its status and what action the Company is taking or proposes to
take with respect thereto).

 

(b)              The Company shall, so long as any of
the Notes are outstanding, deliver to the Trustee, promptly after any Officer
of the Company becomes aware of any Default or Event of Default, an Officers’
Certificate specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.

 

SECTION 4.19.            Maintenance of Properties.  The Company shall cause all material properties
owned by it or any Restricted Subsidiary or used or held for use in the conduct
of its business or the business of any Restricted Subsidiary to be maintained
and kept in good condition, repair and working order (ordinary wear and tear
and damage by casualty excepted) and supplied with all necessary equipment and
shall cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however,
that nothing in this Section 4.19 shall prevent the Company from discontinuing
the maintenance of any such properties if such discontinuance is, in the
judgment of the Company, desirable in the conduct of the business of the Company
and the Restricted Subsidiaries as a whole and not disadvantageous in any
material respect to the Holders.

 

SECTION 4.20.            Insurance.  The Company shall maintain, and shall cause
its Restricted Subsidiaries to maintain, insurance with carriers believed by
the Company to be responsible, against such risks and in such amounts, and with
such deductibles, retentions, self-insured amounts and coinsurance provisions,
as the Company believes are customarily carried by similar businesses, of
similar size, including as appropriate general liability, property and casualty
loss and interruption of business insurance.

 

67

 

ARTICLE FIVE

SUCCESSOR CORPORATION

 

SECTION 5.01.            Merger, Consolidation and Sale of
Assets.  (a)  The Company
shall not, in a single transaction or series of related transactions, consolidate
or merge with or into any Person, or sell, assign, transfer, lease, convey or
otherwise dispose of (or cause or permit any Restricted Subsidiary of the
Company to sell, assign, transfer, lease, convey or otherwise dispose of) all
or substantially all of the Company’s assets (determined on a consolidated
basis for the Company and the Company’s Restricted Subsidiaries) whether as an
entirety or substantially as an entirety to any Person unless:

 

(1)           either:

 

(A)          the Company shall be
the surviving or continuing corporation; or

 

(B)           the Person (if other
than the Company) formed by such consolidation or into which the Company is
merged or the Person which acquires by sale, assignment, transfer, lease,
conveyance or other disposition the properties and assets of the Company and of
the Company’s Restricted Subsidiaries substantially as an entirety (the “Surviving
Entity”):

 

(x)            shall be a
corporation organized and validly existing under the laws of any country that
is a member of the European Union as currently constituted or the United States
or any State thereof or the District of Columbia; and

 

(y)           shall expressly
assume, by supplemental indenture (in form and substance satisfactory to the
Trustee), executed and delivered to the Trustee, the due and punctual payment
of the principal of, and premium, if any, and interest on all of the Notes and
the performance of every covenant of the Notes, this Indenture and the
Registration Rights Agreement on the part of the Company to be performed or observed;

 

(2)           immediately
after giving effect to such transaction and the assumption contemplated by
Section 5.01(a)(1)(B)(y) above (including giving effect to any Indebtedness and
Acquired Indebtedness incurred or anticipated to be incurred in connection with
or in respect of such transaction), the Company or such Surviving Entity, as
the case may be, (a) shall have a Consolidated Net Worth equal to or greater
than the Consolidated Net Worth of the Company immediately prior to such
transaction and (b) shall be able to incur at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) pursuant to Section 4.03;

 

(3)           immediately
before and immediately after giving effect to such transaction and the
assumption contemplated by Section 5.01(a)(1)(B)(y) above (including, without
limitation, giving effect to any Indebtedness and Acquired Indebtedness
incurred or anticipated

 

68

 

to be incurred and any Lien granted in connection with or in respect of
the transaction), no Default or Event of Default shall have occurred or be continuing;
and

 

(4)           the
Company or the Surviving Entity shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, sale, assignment, transfer, lease, conveyance or other
disposition and, if a supplemental indenture is required in connection with
such transaction, such supplemental indenture comply with the applicable
provisions of this Indenture and that all conditions precedent in this
Indenture relating to such transaction have been satisfied.

 

For purposes
of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a
single transaction or series of transactions) of all or substantially all of
the properties or assets of one or more Restricted Subsidiaries of the Company
the Capital Stock of which constitutes all or substantially all of the
properties and assets of the Company, shall be deemed to be the transfer of all
or substantially all of the properties and assets of the Company.

 

(b)              Upon any
consolidation, combination or merger or any transfer of all or substantially
all of the assets of the Company in accordance with Section 5.01(a) in which
the Company is not the continuing corporation, the successor Person formed by
such consolidation or into which the Company is merged or to which such
conveyance, lease or transfer is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Company under this Indenture and
the Notes with the same effect as if such surviving entity had been named as such.

 

(c)              Each Guarantor
(other than any Guarantor whose Guarantee is to be released in accordance with
the terms of its Guarantee and this Indenture in connection with any
transaction complying with Section 4.10) shall not, and the Company shall not
cause or permit any Guarantor to, consolidate with or merge with or into any
Person other than the Company or any other Guarantor unless:

 

(1)           the
entity formed by or surviving any such consolidation or merger (if other than
the Guarantor) or to which such sale, lease, conveyance or other disposition
shall have been made is a corporation organized and existing under the laws of
the United States or any State thereof or the District of Columbia;

 

(2)           such
entity assumes by supplemental indenture all of the obligations of the Guarantor
on its Guarantee;

 

(3)           immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing; and

 

(4)           immediately
after giving effect to such transaction and the use of any net proceeds therefrom
on a pro
forma basis, the Company could satisfy Section 5.01(a)(2).

 

Any merger or
consolidation of a Guarantor with and into the Company (with the Company being
the surviving entity) or another Guarantor that is a Wholly Owned Restricted Subsidiary
of the Company need only comply with Section 5.01(a)(4).

 

69

 

The provisions
of this Section 5.01 shall not apply to transactions undertaken pursuant to an
Inversion Transaction; provided that (i) the Supplemental
Indenture is executed and in effect concurrently with the consummation of such
Inversion Transaction; (ii) immediately following such Inversion
Transaction, the Company’s debt rating and outlook by S&P and Moody’s are
no less favorable to the Company than prior to such Inversion Transaction;
(iii) immediately following such Inversion Transaction, the Company’s
Consolidated Fixed Charge Coverage Ratio is at least equal to the Consolidated
Fixed Charge Coverage Ratio prior to such Inversion Transaction; and
(iv) immediately following such Inversion Transaction, the Company is able
to incur at least $1.00 of additional Indebtedness (other than Permitted
Indebtedness) in compliance with Section 4.03.

 

SECTION 5.02.            Successor Substituted.  In the event of a sale, assignment,
transfer, conveyance or other disposition (other than a lease) described in and
complying with the conditions listed in Section 5.01 in which the Company
is not the Surviving Entity and the Surviving Entity assumes all the obligations
of the Company under the Notes and this Indenture, the Surviving Entity will
succeed to, and be substituted for, and may exercise every right and power of,
the Company under such agreements and the Company shall be discharged from its
obligations under the Notes and this Indenture.

 

ARTICLE SIX

DEFAULT AND REMEDIES

 

SECTION 6.01.            Events of Default.  (a)  The following events are
defined as “Events of Default”:

 

(1)           the
failure to pay interest on any Notes when the same becomes due and payable and the
default continues for a period of 30 days;

 

(2)           the
failure to pay the principal on any Notes, when such principal becomes due and
payable, at maturity, upon redemption or otherwise (including the failure to
make a payment to purchase Notes tendered pursuant to a Change of Control Offer
or a Net Proceeds Offer) on the date specified for such payment in the
applicable offer to purchase;

 

(3)           a
default in the observance or performance of any other covenant or agreement
contained in this Indenture which default continues for a period of 45 days
after the Company receives written notice specifying the default (and demanding
that such default be remedied) from the Trustee or the Holders of at least 25%
of the outstanding principal amount of the Notes (except in the case of a
default with respect to Section 5.01, which will constitute an Event of Default
with such notice requirement but without such passage of time requirement);

 

(4)           the
failure to pay at final stated maturity (giving effect to any applicable grace
periods and any extensions thereof) the principal amount of any Indebtedness of
the Company or any Restricted Subsidiary of the Company, or the acceleration of
the final stated maturity of any such Indebtedness (which acceleration is not
rescinded, annulled or

 

70

 

otherwise cured within 20 days of receipt by the Company or such
Restricted Subsidiary of notice of any such acceleration) if the aggregate
principal amount of such Indebtedness, together with the principal amount of
any other such Indebtedness in default for failure to pay principal at final
stated maturity or which has been accelerated (in each case with respect to
which the 20-day period described above has passed), aggregates $10.0 million or
more at any time;

 

(5)           one
or more judgments in an aggregate amount in excess of $10.0 million shall have
been rendered against the Company or any of its Significant Subsidiaries and
such judgments remain undischarged, unpaid or unstayed for a period of 60 days
after such judgment or judgments become final and non-appealable;

 

(6)           the
Company or any of its Significant Subsidiaries, pursuant to or within the
meaning of any Bankruptcy Law,

 

(i)            commences a
voluntary case,

 

(ii)           consents to the
entry of an order for relief against it in an involuntary case,

 

(iii)          consents to the
appointment of a Custodian of it or for all or substantially all of its assets,
or

 

(iv)          makes a general
assignment for the benefit of its creditors;

 

(7)           a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

 

(i)            is for relief
against the Company or any of its Significant Subsidiaries as debtor in an
involuntary case,

 

(ii)           appoints a
Custodian of the Company or any of its Significant Subsidiaries or a Custodian
for all or substantially all of the assets of the Company or any Restricted Subsidiary,
or

 

(iii)          orders the
liquidation of the Company or any of its Significant Subsidiaries, and in each
case, the order or decree remains unstayed and in effect for 60 days; or

 

(8)           any
Guarantee of a Significant Subsidiary ceases to be in full force and effect or
any Guarantee of a Significant Subsidiary is declared to be null and void and
unenforceable or any Guarantee of a Significant Subsidiary is found to be
invalid or any Guarantor that is a Significant Subsidiary denies its liability
under its Guarantee (other than, in each case, by reason of release of a
Guarantor in accordance with the terms of this Indenture).

 

71

 

(b)              If an Event of
Default (other than an Event of Default specified in Section 6.01(a)(6) or
6.01 (a)(7) above with respect to the Company) shall occur and be continuing,
the Trustee or the Holders of at least 25% in principal amount of outstanding
Notes may declare the principal of and accrued interest on all the Notes to be
due and payable by notice in writing to the Company and the Trustee specifying
the applicable Event of Default and that it is a “notice of acceleration” (the
“Acceleration Notice”), and the same shall become immediately due and
payable.

 

If an Event of
Default specified in Section 6.01(a)(6) or 6.01(a)(7) above with respect
to the Company occurs and is continuing, then all unpaid principal of, and premium,
if any, and accrued and unpaid interest on all of the outstanding Notes shall ipso facto
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holder.

 

(c)              At any time after
a declaration of acceleration with respect to the Notes as described in Section
6.01(b), the Holders of a majority in principal amount of the Notes may rescind
and cancel such declaration and its consequences:

 

(1)           if the rescission
would not conflict with any judgment or decree;

 

(2)           if all existing
Events of Default have been cured or waived except nonpayment of principal or
interest that has become due solely because of the acceleration;

 

(3)           to the extent the
payment of such interest is lawful, interest on overdue installments of
interest and overdue principal, which has become due otherwise than by such
declaration of acceleration, has been paid;

 

(4)           if the Company has
paid the Trustee its reasonable compensation and reimbursed the Trustee for its
expenses, disbursements and advances; and

 

(5)           in the event of the
cure or waiver of an Event of Default of the type described in
Section 6.01(a)(6) or 6.01(a)(7), the Trustee shall have  received an Officers’ Certificate and an
Opinion of Counsel that such Event of Default has been cured or waived.

 

No such
rescission shall affect any subsequent Default or impair any right consequent
thereto.

 

The Holders of
a majority in principal amount of the Notes may waive any existing Default or
Event of Default under this Indenture, and its consequences, except a default
in the payment of the principal of or interest on any Notes.

 

Holders of the
Notes may not enforce this Indenture or the Notes except as provided in this
Indenture and under the TIA.  The
Trustee is under no obligation to exercise any of its rights or powers under
this Indenture at the request, order or direction of any of the Holders, unless
such Holders have offered to the Trustee indemnity satisfactory to it.  Subject to all provisions of this Indenture
and applicable law, the Holders of a majority in aggregate principal amount of
the then outstanding Notes have the right to direct the time, method and place
of conducting

 

72

 

any proceeding
for any remedy available to the Trustee or exercising any trust or power conferred
on the Trustee.

 

SECTION 6.02.            Notice of Defaults.  The Trustee shall, within 90 days after the
occurrence of any Default with respect to the Notes, give the Holders notice of
all uncured Defaults thereunder known to it; provided, however,
that, except in the case of an Event of Default in payment with respect to the
Notes or a Default in complying with Section 5.01, the Trustee shall be
protected in withholding such notice if and so long as a committee of its trust
officers in good faith determines that the withholding of such notice is in the
interest of the Holders.

 

SECTION 6.03.            Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or
in equity to collect the payment of principal of, premium, if any, or interest
on the Notes or to enforce the performance of any provision of the Notes or
this Indenture.

 

The Trustee
may maintain a proceeding even if it does not possess any of the Notes or does
not produce any of them in the proceeding. 
Holders of the Notes may not enforce this Indenture or the Notes except
as provided in Sections 6.02, 6.05, 6.06 and 6.07.

 

SECTION 6.04.            Waiver of Past Defaults.  Subject to Sections 6.02, 6.07 and 9.02, the
Holders of at least a majority in principal amount of the outstanding Notes, by
notice to the Trustee, may waive an existing Default or Event of Default and
its consequences, except a Default in the payment of principal of, premium, if
any, or interest on any Note as specified in clause (a) or (b) of Section 6.01
which cannot be waived without the consent of the Holder of such Note or in
respect of a covenant or provision of this Indenture which cannot be modified
or amended without the consent of the Holder of each outstanding Note
affected.  Upon any such waiver, such
Default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereto.

 

SECTION 6.05.            Control by Majority.  Subject to Section 7.02(e), the Holders
of a majority in aggregate principal amount of the Notes may direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee or of exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow
any direction that conflicts with law or this Indenture or that the Trustee
determines is unduly prejudicial to the rights of other Holders or would involve
the Trustee in personal liability; provided, however, that the Trustee
may take any other action deemed proper by the Trustee that is not inconsistent
with such direction.

 

SECTION 6.06.            Limitation on Suits.  A Holder may not pursue any proceeding,
judicial or otherwise, with respect to this Indenture and the Notes or for the
appointment of a receiver or trustee, or for any other remedy hereunder unless:

 

(i)      the Holder gives the
Trustee written notice of a continuing Event of Default;

 

73

 

(ii)     the Holders of at least
25% in aggregate principal amount of outstanding Notes make a written request
to the Trustee to pursue the remedy;

 

(iii)    such Holder or Holders
offer the Trustee indemnity satisfactory to the Trustee against any costs,
liability or expense;

 

(iv)    the Trustee does not
comply with the request within 15 days after receipt of the request and the
offer of indemnity; and

 

(v)     during such 15-day period,
the Holders of a majority in aggregate principal amount of the outstanding
Notes do not give the Trustee a direction that is inconsistent with the
request.

 

However, such
limitations do not apply to a suit instituted by a Holder of any Note for
enforcement of payment of the principal of or interest on such Note on or after
the due date therefor (after giving effect to any grace period specified in Section 6.01(a)
and only with respect to the amount of such missed payment).

 

For purposes
of Section 6.05 and this Section 6.06, the Trustee shall comply with TIA
Section 316(a) in making any determination of whether the Holders of the
required aggregate principal amount of outstanding Notes have concurred in any
request or direction of the Trustee to pursue any remedy available to the
Trustee or the Holders with respect to this Indenture and the Notes or
otherwise under the law.

 

A Holder may
not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over such other Holder.

 

SECTION 6.07.            Rights of Holders to Receive
Payment.  Notwithstanding any other
provision of this Indenture, the right of any Holder of a Note to receive
payment of the principal amount of, Additional Interest, if any, or interest
on, such Note or to bring suit for the enforcement of any such payment, on or
after the due date expressed in the Notes, shall not be impaired or affected
without the consent of such Holder.

 

SECTION 6.08.            Collection Suit by Trustee.  If an Event of Default in payment of
principal, premium or interest specified in clause (1) or (2) of Section
6.01(a) occurs and is continuing, the Trustee may recover judgment in its own
name and as trustee of an express trust against the Company or any other
obligor of the Notes for the whole amount of principal, premium, if any, and
accrued interest remaining unpaid, together with interest on overdue principal
and premium and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate
specified in the Notes, and such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

 

SECTION 6.09.            Trustee May File Proofs of Claim.  The Trustee may file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have
the claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due the 

 

74

 

Trustee under
Section 7.07) and the Holders allowed in any judicial proceedings relative to the
Company (or any other obligor of the Notes), its creditors or its property and
shall be entitled and empowered to collect and receive any monies, securities
or other property payable or deliverable upon conversion or exchange of the
Notes or upon any such claims and to distribute the same, and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation expenses, disbursements and
advances of the Trustee, its agent and counsel, and any other amounts due the
Trustee under Section 7.07. 
Nothing herein contained shall be deemed to empower the Trustee to
authorize or consent to, or accept or adopt on behalf of any Holder, any plan
of reorganization, arrangement, adjustment or composition affecting the Notes
or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

 

SECTION 6.10.            Priorities.  If the Trustee collects any money pursuant
to this Article Six, it shall pay out the money in the following order:

 

First: 
to the Trustee for all amounts due under Section 7.07 and any receiver,
manager, administrative receiver, liquidator or agent appointed subject to this
Indenture;

 

Second: 
to Holders for amounts then due and unpaid for principal of, premium, if
any, and interest on the Notes in respect of which or for the benefit of which
such money has been collected, ratably, without preference or priority of any
kind, according to the amounts due and payable on such Notes for principal,
premium, if any, and interest, respectively; and

 

Third: 
to the Company or as a court of competent jurisdiction may direct.

 

The Trustee,
upon prior written notice to the Company, may fix a record date and payment
date for any payment to Holders pursuant to this Section 6.10.

 

SECTION 6.11.            Undertaking for Costs.  In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as Trustee, a court may require any party
litigant in such suit to file an undertaking to pay the costs of the suit, and
the court may assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in the suit having due regard to the
merits and good faith of the claims or defenses made by the party
litigant.  This Section 6.11 does not
apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07, or
a suit by Holders of more than 10% in principal amount of the outstanding
Notes.

 

SECTION 6.12.            Restoration of Rights and
Remedies.  If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder,
then, and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the 

 

75

 

Company,
Trustee and the Holders shall continue as though no such proceeding had been
instituted.

 

SECTION 6.13.            Rights and Remedies Cumulative.  Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or wrongfully taken
Notes in Section 2.08, no right or remedy herein conferred upon or reserved to
the Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

SECTION 6.14.            Delay or Omission Not Waiver.  No delay or omission of the Trustee or of
any Holder to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. 
Every right and remedy given by this Article Six or by law to the
Trustee or to the Holders may be exercised from time to time, and as often as
may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

ARTICLE SEVEN

 

TRUSTEE

 

SECTION 7.01.            General.  The duties and responsibilities of the
Trustee shall be as provided by the TIA and as set forth herein.  The Trustee undertakes to perform such
duties as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the
Trustee.  Notwithstanding the foregoing,
no provision of this Indenture shall require the Trustee to expend or risk its
own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers, if
it shall have reasonable grounds for believing that repayment of such funds or
indemnity satisfactory to it against such risk or liability is not reasonably
assured to it.  Whether or not therein
expressly so provided, every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee
shall be subject to the provisions of this Article Seven.

 

SECTION 7.02.            Certain Rights, Duties and
Responsibilities of Trustee. 
Subject to TIA Sections 315(a) through (d):

 

(a)           if any Event of
Default has occurred and is continuing of which a Responsible Officer of the
Trustee has actual knowledge, the Trustee shall exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and
skill in their exercise as a prudent Person would exercise or use under the
circumstances in the conduct of such Person’s own affairs;

 

(b)           the Trustee may
conclusively rely and shall be protected in acting or refraining from acting,
upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other evidence
of 

 

76

 

indebtedness or other paper or document (whether in its original or
facsimile form) believed by it to be genuine and to have been signed or
presented by the proper person.  The
Trustee need not investigate any fact or matter stated in the document;

 

(c)           before the Trustee
acts or refrains from acting, it may require an Officers’ Certificate and/or an
Opinion of Counsel, which shall conform to the certificate or opinion described
in Section 13.03 or Section 13.04, as the case may be.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such certificate
or opinion;

 

(d)           the Trustee may
consult with and act through attorneys and agents of its selection and the
advice of such attorneys and agents shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon;

 

(e)           the Trustee shall be
under no obligation to exercise any of the rights or powers vested in it by
this Indenture at the request or direction of any of the Holders, unless such
Holders shall have offered to the Trustee reasonable security or indemnity
satisfactory to it against the costs, expenses and liabilities that might be
incurred by it in compliance with such request or direction;

 

(f)            the Trustee shall
not be liable for any action it takes or omits to take in good faith that it
believes to be authorized or within its rights or powers or for any action it
takes or omits to take in accordance with the direction of the Holders of the
requisite percentage in principal amount of the outstanding Notes required by
this Indenture relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture;

 

(g)           whenever in the
administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically
prescribed), in the absence of bad faith on its part, may conclusively rely, as
to the truth of the statements and the correctness of the opinions expressed
therein, upon an Officers’ Certificate or an Opinion of Counsel furnished to it
and conforming with the requirements of this Indenture; but in the case of any
such Officers’ Certificate or Opinion of Counsel which by provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be
under a duty to examine the same to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the accuracy
of mathematical calculations or other facts stated therein);

 

(h)           the Trustee shall
not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled to 

 

77

 

examine the books, records and premises of the Company personally or by
agent or attorney at the sole cost of the Company and shall incur no liability
or additional liability of any kind by reason of such inquiry or investigation;

 

(i)            the Trustee shall
not be deemed to have knowledge of any Default or Event of Default except any
Default or Event of Default of which a Responsible Officer of the Trustee shall
have received written notification, or obtained actual knowledge;

 

(j)            the Trustee may
execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through agents or attorneys and the Trustee shall not
be responsible for any misconduct or negligence on the part of any agent or attorney
appointed with due care by it hereunder;

 

(k)           the rights, privileges,
protections, immunities and benefits given to the Trustee, including, without
limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each
agent, custodian and other Person employed to act hereunder; and

 

(l)            the Trustee may
request that the Company deliver an officer’s certificate setting forth the
names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which officer’s certificate may
be signed by any person authorized to sign an Officers’ Certificate, including
any person specified as so authorized in any such certificate previously
delivered and not superseded.

 

SECTION 7.03.            Individual Rights of Trustee.  The Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with
the Company or its Affiliates with the same rights it would have if it were not
the Trustee.  Any Agent may do the same
with like rights.  However, the Trustee
is subject to TIA Sections 310(b) and 311.

 

SECTION 7.04.            Trustee’s Disclaimer.  The Trustee (a) makes no representation as
to the validity, accuracy or adequacy of this Indenture, any offering materials
or the Notes, (b) shall not be accountable for the Company’s use or
application of the proceeds from the Notes and (c) shall not be
responsible for any statement in the Notes other than its certificate of authentication.

 

SECTION 7.05.            Notice of Default.  If any Default or any Event of Default occurs
and is continuing and if such Default or Event of Default is actually known to
a Responsible Officer of the Trustee, the Trustee shall mail to each Holder in
the manner and to the extent provided in TIA Section 313(c) notice of the
Default or Event of Default within 90 days after it occurs, unless such Default
or Event of Default has been cured; provided, however, that, except in the
case of a default in the payment of the principal of, premium, if any, or
interest on any Note, the Trustee shall be protected in withholding such notice
if and so long as a trust committee of directors and/or Responsible Officers of
the Trustee in good faith determine that the withholding of such notice is in
the interest of the Holders.  The Company
shall give the Trustee notice of any 

 

78

 

uncured
Default or Event of Default within 30 days after any Responsible Officer of the
Company becomes aware of or receives actual notice of such Event of Default.

 

SECTION 7.06.            Reports by Trustee to Holders.  Within 60 days after each May 15
following initial issuance, beginning with May 15, 2004 the Trustee shall
mail to each Holder as provided in TIA Section 313(c) a brief report dated
as of such May 15 if required by TIA Section 313(a).

 

SECTION 7.07.            Compensation and Indemnity.  The Company shall pay to the Trustee such
compensation as shall be agreed upon in writing for its services
hereunder.  The compensation of the Trustee
shall not be limited by any law on compensation of a trustee of an express
trust.  The Company shall reimburse the
Trustee upon request for all reasonable out-of-pocket expenses and advances
incurred or made by the Trustee in each of its capacities hereunder.  Such expenses shall include the reasonable
compensation and expenses of the Trustee’s agents and counsel.

 

The Company
shall indemnify the Trustee, in each of its capacities, and any successor of
the Trustee, in each of its capacities, for, and hold it harmless against, any
and all claims, damages, losses, costs, liability or expense (including,
without limitation, the reasonable fees and expenses of its counsel and
advisors) and taxes (other than taxes based on the income of the Trustee)
incurred by it without negligence or willful misconduct on its part arising out
of or in connection with the acceptance or administration of this Indenture and
its duties under this Indenture and the Notes and the exercise of its rights
and powers under this Indenture, including the costs and expenses of defending
itself against any claim or liability (whether asserted by the Company, any
Holder or any other Person) and of complying with any process served upon it or
any of its officers in connection with the exercise or performance of any of
its powers or duties under this Indenture and the Notes and the exercise of the
rights of the Trustee thereunder.  The
Company need not pay for any settlement made without its consent, which consent
shall not be unreasonably withheld.

 

To secure the
Company’s payment obligations in this Section 7.07, the Trustee shall have a
lien prior to the Notes on all money or property held or collected by the
Trustee, in its capacity as Trustee, except money or property held in trust to
pay principal of, Additional Interest, if any, and interest on particular
Notes.

 

If the Trustee
incurs expenses or renders services after the occurrence of an Event of Default
specified in Sections 6.01(a)(6) and/or 6.01(a)(7), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services will be intended to constitute expenses of
administration under Bankruptcy Law or any applicable foreign, federal or state
law for the relief of debtors.

 

The provisions
of this Section 7.07 shall survive the termination of this Indenture, payment
of the Notes and/or the removal or resignation of the Trustee.

 

SECTION 7.08.            Replacement of Trustee.  A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the
successor Trustee’s acceptance of appointment as provided in this Section 7.08.

 

79

 

The Trustee
may resign at any time by so notifying the Company in writing at least 30 days
prior to the date of the proposed resignation. 
The Holders of a majority in principal amount of the outstanding Notes
may remove the Trustee by so notifying the Trustee in writing and may appoint a
successor Trustee with the prior written consent of the Company.  The Company may remove the Trustee by a
Board Resolution if:  (a) the Trustee is
no longer eligible under Section 7.10; (b) the Trustee is adjudged a bankrupt
or an insolvent; (c) a receiver or other public officer takes charge of the
Trustee or its property; or (d) the Trustee becomes incapable of acting.

 

If the Trustee
resigns or is removed, or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee.  Within one year after the successor Trustee
takes office, the Holders of a majority in principal amount of the outstanding
Notes may appoint a successor Trustee to replace the successor Trustee appointed
by the Company.  If the successor
Trustee does not deliver its written acceptance required by the next succeeding
paragraph of this Section 7.08 within 30 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or the Holders of a
majority in principal amount of the outstanding Notes may petition, at the
expense of the Company, any court of competent jurisdiction for the appointment
of a successor Trustee.

 

A successor
Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company.  Immediately
after the delivery of such written acceptance, subject to the lien provided in
Section 7.07, (i) the retiring Trustee shall transfer all property held by it
as Trustee to the successor Trustee, (ii) the resignation or removal of the
retiring Trustee shall become effective and (iii) the successor Trustee shall
have all the rights, powers and duties of the Trustee under this
Indenture.  A successor Trustee shall
mail notice of its succession to each Holder.

 

If the Trustee
is no longer eligible under Section 7.10, any Holder who satisfies the
requirements of TIA Section 310(b) may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

 

The Company
shall give notice of any resignation and any removal of the Trustee and each
appointment of a successor Trustee to all Holders.  Each notice shall include the name of the successor Trustee and
the address of its Corporate Trust Office.

 

Notwithstanding
replacement of the Trustee pursuant to this Section 7.08, the Company’s
obligation under Section 7.07 shall continue for the benefit of the
retiring Trustee.

 

SECTION 7.09.            Successor Trustee by Merger, Etc.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust
business to, another corporation or national banking association, the
resulting, surviving or transferee corporation or national banking association
without any further act shall be the successor Trustee with the same effect as
if the successor Trustee had been named as the Trustee herein.

 

SECTION 7.10.            Eligibility.  This Indenture shall always have a Trustee
who satisfies the requirements of TIA Section 310(a)(1).  The Trustee shall have a combined capital
and 

 

80

 

surplus of at
least $50.0 million as set forth in its most recent published annual report of
condition.

 

SECTION 7.11.            Money Held in Trust.  The Trustee shall not be liable for interest
on any money received by it except as the Trustee may agree in writing with the
Company.  Money held in trust by the Trustee
need not be segregated from other funds except to the extent required by law
and except for money held in trust under Article Eight.

 

SECTION 7.12.            Withholding Taxes.  The Paying Agent, as agent for the Company,
shall exclude and withhold from each payment of principal and interest and
other amounts due hereunder or under the Notes any and all withholding taxes
applicable thereto as required by law, as directed in writing by the Company.  The Paying Agent agrees to act as such
withholding agent and, in connection therewith, whenever any present or future
taxes or similar charges are required to be withheld with respect to any
amounts payable in respect of the Notes, to withhold such amounts, as directed
in writing by the Company, and timely pay the same to the appropriate authority,
as directed in writing by the Company, in the name of and on behalf of the
Holders of the Notes, and to file any necessary withholding tax returns or
statements when due.  The Company shall,
as promptly as possible after the payment of the taxes described above, deliver
to each Holder of a Note documentation in form satisfactory to the Company
showing the payment thereof, together with such additional documentary evidence
as such Holders may reasonably request from time to time.

 

SECTION 7.13.            Trustee’s Application for
Instructions from the Company.  Any
application by the Trustee for written instructions from the Company may, at
the option of the Trustee, set forth in writing any action proposed to be taken
or omitted by the Trustee under this Indenture and the date on and/or after
which such actions shall be taken or such omission shall be effective.  The Trustee shall not be liable for any
action taken by, or omission of, the Trustee in accordance with a proposal
included in such application on or after the date specified in such application
(which date shall not be less than three Business Days after the date any
Officer of the Company actually receives such application, unless any such Officer
shall have consented in writing to any earlier date) unless prior to taking any
such action (or the effective date in the case of an omission), the Trustee
shall have received written instructions in response to such application
specifying the action to be taken or omitted.

 

SECTION 7.14.            Appointment of Co-Trustee.  (a)  Notwithstanding any other provisions
of this Indenture, at any time, for the purpose of meeting any legal
requirement of any jurisdiction in which any part of the Notes may at the time
be located, the Trustee shall have the power and may execute and deliver all
instruments necessary to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of
the Notes, and to vest in such Person or Persons, in such capacity and for the
benefit of the Holders, such title to the Notes, or any part hereof, and
subject to the other provisions of this Section 7.14, such powers, duties,
obligations, rights and trusts as the Trustee may consider necessary or desirable.  No notice to Holders of the appointment of
any co-trustee or separate trustee shall be required.

 

(b)              Every separate
trustee and co-trustee shall, to the extent permitted by law, be appointed and
act subject to the following provisions and conditions:

 

81

 

(i)            all rights, powers,
duties and obligations conferred or imposed upon the Trustee shall be conferred
or imposed upon and exercised or performed by the Trustee and such separate trustee
or co-trustee jointly (it being understood that such separate trustee or
co-trustee is not authorized to act separately without the Trustee joining in
such act) except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed the Trustee shall be incompetent
or unqualified or it shall be unreasonably burdensome for the Trustee to
perform such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Notes or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee
or co-trustee, but solely at the direction of the Trustee;

 

(ii)           no trustee
hereunder shall be personally liable by reason of any act or omission of any
other trustee hereunder; and

 

(iii)          the Trustee may at
any time accept the resignation of or remove any separate trustee or
co-trustee.

 

(c)              Any notice,
request or other writing given to the Trustee shall be deemed to have been
given to each of the then separate trustees and co-trustees, as effectively as
if given to each of them.  Every
instrument appointing any separate trustee or co-trustee shall refer to this
Indenture and the conditions of this Article Seven.  Each separate trustee and co-trustee, upon its acceptance of the
appointment, shall be vested with the estates or property specified in its instrument
of appointment, either jointly with the Trustee or separately, as may be provided
therein, subject to all the provisions of this Indenture, specifically
including every provision of this Indenture relating to the conduct of,
affecting the liability of, or affording protection or rights (including the
rights to compensation, reimbursement and indemnification hereunder) to, the
Trustee.  Every such instrument shall be
filed with the Trustee.

 

(d)              Any separate
trustee or co-trustee may at any time constitute the Trustee its agent or
attorney-in-fact with full power and authority, to the extent not prohibited by
law, to do any lawful act under or in respect of this Indenture on its behalf
and in its name.  If any separate
trustee or co-trustee shall die, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall vest
in and be exercised by the Trustee, to the extent permitted by law, until the
appointment of a new trustee or successor to such separate or co-trustee.

 

ARTICLE EIGHT

 

DISCHARGE OF
INDENTURE

 

SECTION 8.01.            Termination of Company’s
Obligations.  Except as otherwise
provided in this Section 8.01, the Company may terminate its and the
Guarantors’ obligations under this Indenture and the Notes if:

 

82

 

(1)           either:

 

(a)           all
the Notes theretofore authenticated and delivered (except lost, stolen or
destroyed Notes that have been replaced or paid and Notes for whose payment
money has theretofore been deposited in trust or segregated and held in trust
by the Company and thereafter repaid to the Company or discharged from such
trust) have been delivered to the Trustee for cancellation; or

 

(b)           all
Notes not theretofore delivered to the Trustee for cancellation have become due
and payable, and the Company has irrevocably deposited or caused to be deposited
with the Trustee funds in an amount sufficient to pay and discharge the entire
Indebtedness on the Notes not theretofore delivered to the Trustee for
cancellation, for principal of, premium, if any, and interest on the Notes to
the date of deposit together with irrevocable instructions from the Company
directing the Trustee to apply such funds to the payment thereof at maturity or
redemption, as the case may be;

 

(2)           the Company has paid
all other sums payable under this Indenture by the Company; and

 

(3)           the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel
stating that all conditions precedent under this Indenture relating to the satisfaction
and discharge of this Indenture have been complied with.

 

With respect
to the foregoing clause (1), the Company’s and the Guarantors’ obligations
under Sections 7.07 and 14.08 shall survive such satisfaction and
discharge.  With respect to the
foregoing clause (2), the Company’s and the Guarantors’ obligations in Sections
2.04, 2.05, 2.06, 2.07, 2.08, 2.10, 2.13, 4.01, 4.02, 4.13, 7.07, 7.08, 8.05,
8.06 and 14.08 shall survive until the Notes are no longer outstanding.  Thereafter, only the Company’s and the Guarantors’
obligations in Sections 7.07, 8.05, 8.06 and 14.08 shall survive.  After any such irrevocable deposit, the
Trustee upon written request of the Company shall acknowledge in writing the
discharge of the Company’s and the Guarantors’ obligations under the Notes and
this Indenture, except for those surviving obligations specified above.

 

SECTION 8.02.            Defeasance and Discharge of
Indenture.  The Company will be
deemed to have paid and will, together with the Guarantors, be discharged from
any and all obligations in respect of this Indenture and the Notes on the date
of the deposit referred to in clause (A) of this Section 8.02, and the
provisions of this Indenture will no longer be in effect with respect to the
Notes (“Legal Defeasance”), and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging the same, except for
the following provisions which shall survive until otherwise terminated or
discharged hereunder:  (a) the rights of
Holders of outstanding Notes to receive solely from the trust fund described in
clause (A) below payments in respect of the principal of, premium, if any, and
interest on such Notes when such payments are due, (b) the Company’s
obligations with respect to such Notes under Article Two and Section 4.02, (c)
the rights, powers, trusts, duties, indemnities and immunities of the Trustee
hereunder, including, without limitation, Section 7.07 and the Company’s
obligations in connection therewith and (d) this Article Eight.  Subject to compliance with this Article
Eight, the Company may exercise its option under this Section 8.02
notwithstanding the prior exercise of its option under Section 8.03
hereof.  The following conditions shall
apply to Legal Defeasance:

 

83

 

(A)          the
Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders cash, non-callable U.S. Government Obligations, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally
recognized firm of independent public accountants, to pay the principal of,
premium, if any, and interest on the Notes on the stated date for payment
thereof or on the applicable redemption date, as the case may be;

 

(B)           the
Company shall have delivered to the Trustee an Opinion of Counsel in the United
States reasonably acceptable to the Trustee confirming that:

 

(i)        the
Company has received from, or there has been published by the United States
Internal Revenue Service, a ruling, or

 

(ii)       since
the date of this Indenture, there has been a change in the applicable U.S.
federal income tax law,

 

in either case to the effect that, and based thereon this Opinion of
Counsel shall confirm that, the Holders will not recognize income, gain or loss
for U.S. federal income tax purposes as a result of the Legal Defeasance and
will be subject to U.S. federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

 

(C)           no
Default shall have occurred and be continuing on the date of such deposit
(other than a Default resulting from the borrowing of funds to be applied to
such deposit and the grant of any Lien securing such borrowing);

 

(D)          the
Legal Defeasance shall not result in a breach or violation of, or constitute a
default under this Indenture (other than a Default resulting from the borrowing
of funds to be applied to such deposit and the grant of any Lien securing such
borrowing) or any other material agreement or instrument (including, without
limitation, the Credit Agreement) to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

 

(E)           the
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by it with the intent of preferring the Holders
over any other of its creditors or with the intent of defeating, hindering,
delaying or defrauding any other of its creditors or others;

 

(F)           the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that the conditions provided for in, in the
case of the Officers’ Certificate, clauses (A) through (E) and, in the case of
the Opinion of Counsel, clauses (A) (with respect to the validity and
perfection of the security interest), (B) and (D) of this Section 8.02 have
been complied with; and

 

(G)           the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that assuming no intervening bankruptcy of the Company between the date of
deposit and the 124th day following the date of deposit and that no Holder is an
insider of 

 

84

 

the Company, after the 124th day following the date of deposit, the
trust funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights generally.

 

The Company’s
and the Guarantors’ obligations in Sections 2.04, 2.05, 2.06, 2.07, 2.08, 2.10,
2.13, 4.01, 4.02, 4.13, 7.07, 7.08, 8.05, 8.06 and 14.08 shall survive until
the Notes are no longer outstanding. 
Thereafter, only the Company’s and the Guarantors’ obligations in
Sections 7.07, 8.05, 8.06 and 14.08 
shall survive.

 

After any such
irrevocable deposit, the Trustee upon written request shall acknowledge in
writing the discharge of the Company’s obligations under the Notes and this Indenture
except for those surviving obligations in the immediately preceding paragraph.

 

Notwithstanding
the foregoing, the Opinion of Counsel required by Section 8.02(B) with respect
to a Legal Defeasance need not be delivered if all Notes not theretofore delivered
to the Trustee for cancellation (1) have become due and payable or
(2) will become due and payable on the maturity date or a redemption date
within one year under arrangements satisfactory to the Trustee for the giving
of notice of redemption by the Trustee in the name, and at the expense, of the
Company.

 

SECTION 8.03.            Defeasance of Certain Obligations.  The Company may omit to comply with any
term, provision or condition set forth in Section 5.01(a)(3) and Sections 4.03
through 4.16 and Sections 4.18 through 4.20 and breach of clauses (a)(4),
(a)(5) and (a)(8) under Section 6.01 shall be deemed not to be Events of
Default (“Covenant Defeasance”), in each case with respect to the outstanding
Notes if:

 

(A)          the
Company irrevocably deposits with the Trustee, in trust, for the benefit of the
Holders cash, non-callable U.S. Government Obligations, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally
recognized firm of independent public accountants, to pay the principal of,
premium, if any, and interest on the Notes on the stated date for payment
thereof or on the applicable redemption date, as the case may be;

 

(B)           the
Company shall have delivered to the Trustee an Opinion of Counsel in the United
States reasonably acceptable to such Trustee confirming that the Holders will
not recognize income, gain or loss for U.S. federal income tax purposes as a result
of such Covenant Defeasance and will be subject to U.S. federal income tax on
the same amounts, in the same manner and at the same times as would have been
the case if the Covenant Defeasance had not occurred;

 

(C)           no
Default shall have occurred and be continuing on the date of such deposit
(other than a Default or Event of Default resulting from the borrowing of funds
to be applied to such deposit and the grant of any Lien securing such borrowing);

 

(D)          the
Covenant Defeasance shall not result in a breach or violation of, or constitute
a default under this Indenture (other than a Default or Event of Default resulting
from the borrowing of funds to be applied to such deposit and the grant of any
Lien 

 

85

 

securing such borrowing) or any other material agreement or instrument
(including, without limitation, the Credit Agreement) to which the Company or
any of its Subsidiaries is a party or by which the Company or any of its
Subsidiaries is bound;

 

(E)           the
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by it with the intent of preferring the Holders
over any other of its creditors or with the intent of defeating, hindering,
delaying or defrauding any other of its creditors or others;

 

(F)           the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that the conditions provided for in, in the
case of the Officers’ Certificate, clauses (A) through (E) and, in the case of
the Opinion of Counsel, clauses (A) (with respect to the validity and
perfection of the security interest), (B) and (D) of this Section 8.03 have
been complied with; and

 

(G)           the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that assuming no intervening bankruptcy of the Company between the date of
deposit and the 124th day following the date of deposit and that no Holder is
an insider of the Company, after the 124th day following the date of deposit,
the trust funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights generally.

 

If the funds
deposited with the Trustee to effect Covenant Defeasance are insufficient to
pay the principal of and interest on the Notes when due, then the Company’s obligations
and the obligations of the Guarantors under this Indenture will be revived and
no such defeasance will be deemed to have occurred.

 

SECTION 8.04.            Application of Trust Money.  Subject to Section 8.06, the Trustee or
Paying Agent shall hold in trust money or U.S. Government Obligations deposited
with it pursuant to Section 8.01, 8.02 or 8.03, as the case may be, and shall
apply the deposited money and the money from U.S. Government Obligations in
accordance with the Notes and this Indenture to the payment of principal of,
premium, if any, and interest on the Notes.

 

SECTION 8.05.            Repayment to Company.  Subject to Sections 7.07, 8.01, 8.02 and
8.03, the Trustee and the Paying Agent shall promptly pay to the Company upon
request set forth in an Officers’ Certificate any excess money held by them at
any time and thereupon shall be relieved from all liability with respect to
such money.  The Trustee and the Paying
Agent shall pay to the Company upon written request any money held by them for
the payment of principal, premium, if any, or interest that remains unclaimed
for two years; provided that the Trustee or such Paying Agent before being
required to make any payment shall cause to be published at the expense of the
Company once in a newspaper of general circulation in the City of New York or
mail to each Holder entitled to such money at such Holder’s address (as set
forth in the Register) notice that such money remains unclaimed and that after
a date specified therein (which shall be at least 30 days from the date of such
publication or mailing) any unclaimed balance of such money then remaining will
be repaid to the Company.  After payment
to the Company, Holders entitled to such money must look to the Company for
payment as general creditors unless an

 

86

 

applicable law
designates another Person, and all liability of the Trustee and such Paying
Agent with respect to such money shall cease.

 

SECTION 8.06.            Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with Section 8.01,
8.02 or 8.03, as the case may be, by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 8.01, 8.02 or 8.03, as
the case may be, until such time as the Trustee or Paying Agent is permitted to
apply all such money or U.S. Government Obligations in accordance with Section
8.01, 8.02 or 8.03, as the case may be; provided that if the Company has made any
payment of principal of, premium, if any, or interest on any Notes because of
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or
U.S. Government Obligations held by the Trustee or Paying Agent.

 

ARTICLE NINE

 

AMENDMENTS, SUPPLEMENTS
AND WAIVERS

 

SECTION 9.01.            Without Consent of Holders.  The Company, when authorized by a resolution
of its Board of Directors (as evidenced by a Board Resolution), and the Trustee
may amend or supplement this Indenture, the Notes and any Guarantee without notice
to or the consent of any Holder:

 

(1)           to cure any ambiguity,
defect or inconsistency;

 

(2)           to provide for
uncertificated Notes in addition to or in place of certificated Notes;

 

(3)           to provide for the
assumption of the Company’s or any Guarantor’s obligations to Holders in the
case of a merger, consolidation, amalgamation or other combination of the
Company or any Guarantor or sale of all or substantially all of the Company’s
or such Guarantor’s assets;

 

(4)           to make any change
that would provide any additional rights or benefits to the Holders of Notes or
that does not materially adversely affect the rights or interests under this
Indenture of any such Holder;

 

(5)           to alter the form of
Notes to provide for any changes in applicable tax laws to the extent that such
changes do not materially adversely affect the rights or interests of any
Holder;

 

(6)           to comply with
requirements of the Commission in order to effect or maintain the qualification
of this Indenture under the Trust Indenture Act; or

 

87

 

(7)           to comply with the
requirement that the Supplemental Indenture be executed and delivered by the
New Parent and the Former Parent pursuant to an Inversion Transaction.

 

This Section
9.01 is subject to Section 9.05.

 

SECTION 9.02.            With Consent of Holders.  Subject to Sections 6.04 and 6.07 and
without prior notice to the Holders, the Company, when authorized by its Board
of Directors (as evidenced by a Board Resolution), and the Trustee may amend this
Indenture, the Notes or the Guarantees with the written consent of the Holders
of a majority in aggregate principal amount of the Notes then outstanding, and
the Holders of a majority in aggregate principal amount of the Notes then
outstanding by written notice to the Trustee may waive compliance by the
Company with any provision of this Indenture, the Notes or the Guarantees.

 

Notwithstanding
the foregoing provisions of this Section 9.02, without the consent of each
Holder affected, an amendment or waiver, including a waiver pursuant to Section
6.04, may not:

 

(i)            reduce the amount
of Notes whose Holders must consent to an amendment;

 

(ii)           reduce the rate of
or change or have the effect of changing the time for payment of interest,
including defaulted interest, on any Notes;

 

(iii)          reduce the
principal of or change or have the effect of changing the fixed maturity of any
Notes, or change the date on which any Notes may be subject to redemption or
reduce the redemption price therefor;

 

(iv)          make any Notes
payable in money other than that stated in the Notes;

 

(v)           make any change in
provisions of this Indenture protecting the right of each Holder to receive
payment of principal of and interest on such Note on or after the due date
thereof or to bring suit to enforce such payment, or permitting Holders of a majority
in principal amount of Notes to waive Defaults or Events of Default;

 

(vi)          after the Company’s
obligation to purchase Notes arises thereunder, amend, change or modify in any
material respect the obligation of the Company to make and consummate a Change
of Control Offer in the event of a Change of Control or make and consummate a
Net Proceeds Offer with respect to any Asset Sale that has been consummated or,
after such Change of Control has occurred or such Asset Sale has been
consummated, modify any of the provisions or definitions with respect thereto;

 

(vii)         modify or change any
provision of this Indenture or the related definitions affecting the ranking of
the Notes or the Guarantees in a manner which adversely affects the Holders; or

 

88

 

(viii)        release any
Guarantor that is a Significant Subsidiary from any of its obligations under
its Guarantee or this Indenture otherwise than in accordance with the terms of
this Indenture.

 

It shall not
be necessary for the consent of the Holders under this Section 9.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it
shall be sufficient if such consent approves the substance thereof.

 

After an
amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company shall mail to the Holders affected thereby a notice briefly describing
the amendment, supplement or waiver. 
The Company shall mail supplemental indentures to Holders upon
request.  Any failure of the Company to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture or waiver.

 

This Section
9.02 is subject to Section 9.05.

 

SECTION 9.03.            Revocation and Effect of Consent.  Until an amendment or waiver becomes
effective, a consent to it by a Holder is a continuing consent by the Holder
and every subsequent Holder of a Note or portion of a Note that evidences the
same debt as the Note of the consenting Holder, even if notation of the consent
is not made on any Note.  However, any
such Holder or subsequent Holder may revoke the consent as to its Note or
portion of its Note.  Such revocation
shall be effective only if the Trustee receives the notice of revocation before
the date the amendment, supplement or waiver becomes effective.  An amendment, supplement or waiver shall
become effective on receipt by the Trustee of written consents from the Holders
of the requisite percentage in principal amount of the outstanding Notes and
any other conditions thereto specified in the notice relating thereto.

 

The Company
may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or
waiver.  If a record date is fixed,
then, notwithstanding the last two sentences of the immediately preceding
paragraph, those persons who were Holders at such record date (or their duly
designated proxies) and only those persons shall be entitled to consent to such
amendment, supplement or waiver or to revoke any consent previously given,
whether or not such persons continue to be Holders after such record date.  No such consent shall be valid or effective
for more than 90 days after such record date.

 

After an
amendment, supplement or waiver becomes effective, it shall bind every Holder
unless it is of the type described in any of clauses (i) through (viii) of Section 9.02.  In case of an amendment or waiver of the
type described in clauses (i) through (viii) of Section 9.02, the
amendment or waiver shall bind each Holder who has consented to it and every
subsequent Holder of a Note that evidences the same indebtedness as the Note of
the consenting Holder.

 

SECTION 9.04.            Notation on or Exchange of Notes.  If an amendment, supplement or waiver
changes the terms of a Note, the Trustee may require the Holder to deliver it
to the Trustee.  The Trustee shall, if
directed in writing by the Company, place an appropriate notation on the Note
about the changed terms and return it to the Holder and the Trustee shall, if directed

 

89

 

in writing by
the Company, place an appropriate notation on any Note thereafter authenticated.  Alternatively, if the Company so determines,
the Company in exchange for the Note shall issue and the Trustee upon the
Company’s written direction in the form of a Company Order shall authenticate a
new Note that reflects the changed terms.

 

SECTION 9.05.            Trustee to Sign Amendments, Etc.  The Trustee shall receive, and shall be
fully protected in relying upon an Officers’ Certificate and an Opinion of
Counsel stating that the execution of any amendment, supplement or waiver
authorized pursuant to this Article Nine is authorized and permitted by this
Indenture (and otherwise in form and substance satisfactory to the Trustee)
and, in the case of an Inversion Transaction, that the Supplemental Indenture
is a legal and binding obligation of the New Parent and enforceable against the
New Parent in accordance with its terms. 
Subject to the preceding sentence, the Trustee shall sign such
amendment, supplement or waiver if the same does not adversely affect the
rights, duties, liabilities or immunities of the Trustee.  The Trustee may, but shall not be obligated
to, execute any such amendment, supplement or waiver that affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise.

 

SECTION 9.06.            Conformity with Trust Indenture
Act.  Every supplemental indenture
executed pursuant to this Article Nine shall conform to the requirement of the
TIA as then in effect.

 

ARTICLE TEN

[RESERVED]

 

ARTICLE ELEVEN

GUARANTEE OF NOTES

 

SECTION 11.01.          Guarantee.  Each Guarantor hereby unconditionally
guarantees, as a primary obligor and not merely a surety, to each Holder of a
Note authenticated and delivered by a Trustee and to the Trustee and their
successors, that:  (a) the
principal of, premium, if any, and interest on the Notes (and any Additional
Interest payable thereon) will be duly and punctually paid in full when due,
whether at maturity, by acceleration or otherwise, and interest on the overdue
principal and (to the extent permitted by law) interest, Additional Interest,
if any, on the Notes and all other obligations of the Company to the Holders or
the Trustee hereunder (including amounts due the Trustee under
Section 7.07) and all other obligations under this Indenture (the “Indenture
Obligations”) will be promptly paid in full or performed, all in accordance
with the terms hereof and thereof; and (b) in case of any extension of
time of payment or renewal of any Notes or any of such other Obligations
hereunder, the same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at the maturity
date of the Notes, by acceleration or otherwise.  An Event of Default under this Indenture or the Notes shall
constitute an event of default under any of the Guarantees, and shall entitle
the Holders of Notes to accelerate the obligations of each Guarantor hereunder
in the same manner and to the same extent as the obligations of the Company hereunder.

 

90

 

Each Guarantor
hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the absence of any action to enforce the Notes or this
Indenture, any release of any other Guarantor, the recovery of any judgment
against the Company, any action to enforce the same, whether or not its
Guarantee is affixed to any particular Note, or any other circumstance (other
than payment in full) which might otherwise constitute a legal or equitable discharge
or defense of each Guarantor.  Each
Guarantor hereby waives the benefit of diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that its Guarantee
will not be discharged except by complete performance of the obligations
contained in the Notes, this Indenture and its Guarantee or as otherwise provided
herein for the release of such Guarantee. 
The Guarantees are guarantees of payment and not of collection.  If any Holder or the Trustee is required by
any court or otherwise to return to the Company or to the Guarantors, or any
custodian, trustee, liquidator or other similar official acting in relation to
the Company or the Guarantors, any amount paid by the Company or the Guarantors
to the Trustee or such Holder, each Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect.  Each Guarantor further agrees that, as
between it, on the one hand, and the Holders of Notes and the Trustee, on the
other hand, (a) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article Six for the purposes of each Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (b) in
the event of any acceleration of such obligations as provided in Article Six,
such obligations (whether or not due and payable) shall forthwith become due
and payable by each Guarantor for the purpose of its Guarantee.

 

The
obligations of each Guarantor to the Holders and to the Trustee pursuant to the
Guarantee of such Guarantor and this Indenture are expressly subordinate and
subject in right of payment to the prior payment in full of all Guarantor
Senior Debt of such Guarantor, to the extent and in the manner provided in
Article Twelve.

 

The
obligations of each Guarantor pursuant to the Guarantee of such Guarantor and
this Indenture rank senior in right of payment to the obligations of such
Guarantor pursuant to its guarantee of the Existing Notes.

 

SECTION 11.02.          Execution and Delivery of Guarantee.  Guarantees, substantially in the form
included in Exhibit E of this Indenture, shall be executed by
either manual or facsimile signature of an Officer of each Guarantor.  The validity and enforceability of each
Guarantee shall not be affected by the fact that it is not affixed to any
particular Note.

 

Guarantees set
forth in Section 11.01 shall remain in full force and effect notwithstanding
any failure to endorse on each Note a notation of such Guarantee.

 

If an Officer
of a Guarantor whose signature is on this Indenture or a Guarantee no longer
holds that office at the time a Trustee authenticates the Note on which such
Guarantee is endorsed or at any time thereafter, such Guarantor’s Guarantee of
such Note shall be valid nevertheless.

 

91

 

The delivery
of any Note by a Trustee, after the authentication thereof hereunder, shall
constitute due delivery of each Guarantee set forth in this Indenture on behalf
of its respective Guarantor.

 

SECTION 11.03.          Waiver of Subrogation.  Until the Notes are paid in full, each
Guarantor hereby irrevocably waives and agrees not to exercise any claim or
other rights which it may now or hereafter acquire against the Company or any
other Restricted Subsidiary that arise from the existence, payment, performance
or enforcement of the Company’s obligations under the Notes or this Indenture
and such Guarantor’s obligations under its Guarantee and this Indenture, in any
such instance including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution, indemnification, and any right to participate in any
claim or remedy of the Holders, any Agent and the Trustee against the Company
or any other Restricted Subsidiary, whether or not such claim, remedy or right
arises in equity, or under contract, statute or common law, including, without
limitation, the right to take or receive from the Company or any other
Restricted Subsidiary, directly or indirectly, in cash or other property or by
set-off or in any other manner, payment or security on account of such claim or
other rights.  If any amount shall be
paid to any Guarantor in violation of the preceding sentence and any amounts
owing to the Trustee, any Agent or the Holders of Notes under the Notes, this Indenture,
or any other document or instrument delivered under or in connection with such
agreements or instruments, shall not have been paid in full, such amount shall
have been deemed to have been paid to such Guarantor for the benefit of, and
held in trust for the benefit of, the Holders, such Agent, and the Trustee and
shall, subject to the provisions of the last paragraph of Section 11.01, forthwith
be paid to the Trustee for the benefit of such Holders, such Agent and the
Trustee to be credited and applied to the obligations in favor of the Holders,
such Agent and the Trustee, whether matured or unmatured, in accordance with
the terms of this Indenture.  Each
Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by this Indenture and that the waiver
set forth in this Section 11.03 is knowingly made in contemplation of such benefits.

 

SECTION 11.04.          Immediate Payment.  Each Guarantor shall make immediate payment
to the Trustee on behalf of the Holders and the Trustee of all obligations with
respect to its Guarantee owing or payable to the respective Holders upon
receipt of a demand for payment therefor by the Trustee to such Guarantor in
writing.

 

SECTION 11.05.          No Set-Off.  Each payment to be made by a Guarantor hereunder
in respect of any obligations with respect to its Guarantee shall be payable in
the currency or currencies in which such obligations are denominated, and shall
be made without set-off, counterclaim, reduction or diminution of any kind or nature.

 

SECTION 11.06.          Obligations Absolute.  The obligations of each Guarantor hereunder
are and shall be absolute and unconditional and any monies or amounts expressed
to be owing or payable by such Guarantor hereunder which may not be recoverable
from such Guarantor on the basis of a Guarantee shall be recoverable from such
Guarantor as a primary obligor and principal debtor in respect thereof.

 

SECTION 11.07.          Obligations Continuing.  The obligations of each Guarantor hereunder
shall be continuing and shall remain in full force and effect until all of the
obligations 

 

92

 

with respect
thereto have been paid and satisfied in full. 
Each Guarantor agrees with the Trustee that it will from time to time
deliver to the Trustee suitable acknowledgments of this continued liability
hereunder and under any other instrument or instruments in such form as counsel
to the Trustee may advise and as will prevent any action brought against it in
respect of any default hereunder being barred by any statute of limitations now
or hereafter in force in the jurisdiction of incorporation or organization of
such Guarantor or elsewhere and, in the event of the failure of such Guarantor
so to do, it hereby irrevocably appoints the Trustee and each of them the attorneys
and agents of such Guarantor to make, execute and deliver such written acknowledgment
or acknowledgments or other instruments as may from time to time become
necessary or advisable, in the judgment of the Trustee on the advice of
counsel, to fully maintain and keep in force the liability of such Guarantor
hereunder.

 

SECTION 11.08.          Obligations Not Reduced.  The obligations of each Guarantor hereunder
shall not be satisfied, reduced or discharged by any intermediate payment or
satisfaction of the whole or any part of the principal, interest, fees and
other monies or amounts which may at any time be or become owing or payable under
or by virtue of or otherwise in connection with the Notes or this Indenture.

 

SECTION 11.09.          Obligations Reinstated.  The obligations of each Guarantor hereunder
shall continue to be effective or shall be reinstated, as the case may be, if
at any time any payment which would otherwise have reduced the obligations of
each Guarantor hereunder (whether such payment shall have been made by or on
behalf of the Company or by or on behalf of such Guarantor) is rescinded or
reclaimed from any of the Holders and the Trustee upon the insolvency,
bankruptcy, liquidation or reorganization of the Company or such Guarantor or
otherwise, all as though such payment had not been made.  If demand for, or acceleration of the time
for, payment by the Company is stayed upon the insolvency, bankruptcy,
liquidation or reorganization of the Company, all such indebtedness otherwise
subject to demand for payment or acceleration shall nonetheless be payable by
each Guarantor as provided herein.

 

SECTION 11.10.          Obligations Not Affected.  The obligations of each Guarantor hereunder
shall not be affected, impaired or diminished in any way by any act, omission,
matter or thing whatsoever, occurring before, upon or after any demand for
payment hereunder (and whether or not known or consented to by such Guarantor
or any of the Holders and the Trustee) which, but for this provision, might
constitute a whole or partial defense to a claim against each Guarantor
hereunder or might operate to release or otherwise exonerate such Guarantor
from any of its obligations hereunder or otherwise affect such obligations,
whether occasioned by default of any of the Holders and the Trustee or
otherwise, including, without limitation:

 

(i)            any limitation of
status or power, disability, incapacity or other circumstance relating to the
Company or any other person, including any insolvency, bankruptcy, liquidation,
reorganization, readjustment, composition, dissolution, winding-up or other
proceeding involving or affecting the Company or any other person;

 

(ii)           any failure of the
Company, whether or not without fault on its part, to perform or comply with
any of the provisions of this Indenture or the Notes, or to give notice thereof
to any Guarantor;

 

93

 

(iii)          the taking or
enforcing or exercising or the refusal or neglect to take or enforce or
exercise any right or remedy from or against the Company or any other Person or
their respective assets or the release or discharge of any such right or remedy;

 

(iv)          the granting of
time, renewals, extensions, compromises, concessions, waivers, releases,
discharges and other indulgences to the Company or any other person;

 

(v)           any change in the
time, manner or place of payment of, or in any other term of, any of the Notes,
or any other amendment, variation, supplement, replacement or waiver of, or any
consent to departure from, any of the Notes or this Indenture, including,
without limitation, any increase or decrease in the principal amount of or premium,
if any, or interest on any of the Notes;

 

(vi)          any change in the
ownership, control, name, objects, businesses, assets, capital structure or
constitution of the Company or any Guarantor;

 

(vii)         any merger or
amalgamation of the Company or any Guarantor with any Person or Persons;

 

(viii)        the occurrence of
any change in the laws, rules, regulations or ordinances of any jurisdiction by
any present or future action of any governmental authority or court amending,
varying, reducing or otherwise affecting, or purporting to amend, vary, reduce
or otherwise affect, any of the obligations of any Guarantor under its Guarantee;
and

 

(ix)           any other
circumstance (other than by complete, irrevocable payment) that might otherwise
constitute a legal or equitable discharge or defense of the Company under this
Indenture or the Notes or of any Guarantor in respect of its guarantee hereunder.

 

SECTION 11.11.          Waiver.  Without in any way limiting the provisions
of Section 11.01, each Guarantor hereby waives notice of acceptance
hereof, notice of any liability of such Guarantor hereunder, notice or proof of
reliance by the Holders and the Trustee upon the obligations of such Guarantor
hereunder, and diligence, presentment, demand for payment on the Company,
protest, notice of dishonor or non-payment of any of the obligations under its
Guarantee, or other notice or formalities to the Company or such Guarantor of
any kind whatsoever.

 

SECTION 11.12.          No Obligation to Take Action
Against Company.  Neither the
Trustee nor any of the Holders shall have any obligation to enforce or exhaust
any rights or remedies or to take any other steps under any security for the
obligations under the Guarantees or against the Company or any other person or
any property of the Company or any other person before the Trustee is entitled
to demand payment and performance by any Guarantor of its liabilities and
obligations under its Guarantee, and each Guarantor hereby waives all benefit
of discussion.

 

SECTION 11.13.          Default and Enforcement.  (a)  If any Guarantor fails to pay
in accordance with Section 11.01, the Trustee may proceed in its name as
trustee hereunder in the enforcement of such Guarantee and such Guarantor’s
obligations thereunder and hereunder by 

 

94

 

any remedy
provided by law, whether by legal proceedings or otherwise, and to recover from
any Guarantor the obligations of such Guarantor with respect to its Guarantee.

 

(b)           No Holder shall have
the right to institute any suit, action or proceeding against any Guarantor for
any default hereunder except in the manner and subject to the conditions set
forth in Article Six, it being understood and intended that no one or more
Holders shall have any right in any manner whatsoever to enforce any right hereunder
by his or their action except as aforesaid and that all powers and trusts
hereunder shall be exercised and all proceedings at law or in equity shall be
instituted, had and maintained by the Trustee, only as aforesaid and in any
event for the benefit of all Holders as provided in this Indenture.

 

SECTION 11.14.          Costs and Expenses.  Each Guarantor shall pay on demand by the
Trustee any and all costs, fees and expenses (including, without limitation,
the fees and the expenses of its counsel) incurred by the Trustee or any of the
Holders in enforcing any of their rights under its Guarantee.

 

SECTION 11.15.          No Merger or Waiver; Cumulative
Remedies.  No Guarantee shall
operate by way of merger of any of the obligations of any Guarantor under any
other agreement, including, without limitation, this Indenture.  No failure to exercise and no delay in
exercising, on the part of the Trustee or the Holders, any right, remedy, power
or privilege hereunder or under this Indenture or the Notes, shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder or under this Indenture or the Notes preclude any
other or further exercise thereof or the exercise of any other right, remedy,
power or privilege.  The rights, remedies,
powers and privileges herein and under this Indenture, the Notes and any other
document or instrument between any Guarantor and/or the Company and the
Trustee, are cumulative and not exclusive of any rights, remedies, powers and
privilege provided by law.

 

SECTION 11.16.          Survival of Obligations.  Without prejudice to the survival of any of
the other obligations of any Guarantor hereunder, the obligations of each
Guarantor under Section 11.01 shall survive the payment in full of any
obligations with respect to its Guarantee and shall be enforceable against each
Guarantor without regard to and without giving effect to any defense, right of
offset or counterclaim available to or which may be asserted by the Company or
any Guarantor.

 

SECTION 11.17.          Guarantee in Addition to Other
Obligations.  The obligations of
each Guarantor under its Guarantee and this Indenture are in addition to and
not in substitution for any other obligations to the Trustee or to any of the
Holders in relation to this Indenture or the Notes and any guarantees or
security at any time held by or for the benefit of any of them.

 

SECTION 11.18.          Successors and Assigns.  Each Guarantee shall be binding upon and
inure to the benefit of each Guarantor and the Trustee and the other Holders
and their respective successors and permitted assigns, except that no Guarantor
may assign any of its obligations hereunder except in accordance with the
provisions of Section 9.01 or 9.02 , as applicable, or Section 5.01(c).

 

95

 

SECTION 11.19.          Governing Law; Agent for Service;
Submission to Jurisdiction; Waiver of Immunities; Judgment Currency.  Each Guarantor hereby acknowledges and
agrees to comply with and be bound by Sections 13.07, 13.15 and 13.16 on
the same terms as the Company and as if the term “Guarantor” had therein been
substituted for the term “Company.”

 

SECTION 11.20.          Limitation of Guarantor’s Liability.  Any term or provision of this Indenture to
the contrary notwithstanding, the maximum aggregate amount of the obligations
guaranteed hereunder by any Guarantor shall not exceed the maximum amount that
can be hereby guaranteed without rendering this Indenture, as it relates to
such Guarantor, voidable under applicable law relating to fraudulent conveyance
or fraudulent transfer or similar laws affecting the rights of creditors
generally.  To effectuate the foregoing
intention, the obligations of each Guarantor shall be limited to the maximum
amount as will, after giving effect to all other contingent and fixed
liabilities of such Guarantor (including, but not limited to, all Guarantor
Senior Debt of such Guarantor) and after giving effect to any collections from
or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Guarantee or pursuant to its
contribution obligations hereunder, result in the obligations of such Guarantor
under its Guarantee not constituting a fraudulent conveyance or fraudulent transfer
under federal, state or foreign law. 
Each Guarantor that makes a payment or distribution under a Guarantee
shall be entitled to a contribution from each other Guarantor in an amount
based on the consolidated net worth of each Guarantor.

 

SECTION 11.21.          Release of Guarantee.  In the event of a sale or other disposition
of all of the assets of any Guarantor, by way of merger, consolidation or otherwise,
or a sale or other disposition of all of the Capital Stock of any Guarantor
then held by the Company and the Restricted Subsidiaries, then that Guarantor
will be released and relieved of any obligations under its Guarantee; provided
that the Net Cash Proceeds of such sale or other disposition are applied in
accordance with Section 4.10, to the extent required thereby.  In addition, any Guarantor that is
designated as an Unrestricted Subsidiary or that otherwise ceases to be a
Guarantor, in each case in accordance with the provisions of this Indenture,
will be released from its Guarantee upon effectiveness of such designation or
when it first ceases to be a Restricted Subsidiary, as the case may be.

 

ARTICLE TWELVE

RESERVED

 

ARTICLE
THIRTEEN

MISCELLANEOUS

 

SECTION 13.01.          Trust Indenture Act of 1939.  Prior to the effectiveness of the Registration
Statement, this Indenture shall incorporate and be governed by the provisions
of the TIA that are required to be part of and to govern indentures qualified
under the TIA.  After the effectiveness
of the Registration Statement, this Indenture shall be subject to the
provisions of the TIA that are required to be a part of this Indenture and
shall, to the extent applicable, be governed by such provisions.

 

96

 

SECTION 13.02.          Notices.  Any notice or communication shall be
sufficiently given if in writing (which may be via facsimile) and delivered in
person or mailed by first class mail addressed as follows:

 

if to the Company
or the Guarantors:

 

	
   

  	
  The
  Manitowoc Company, Inc.

  
	
   

  	
  2400
  South 44th Street

  
	
   

  	
  Manitowoc,
  Wisconsin  54221

  
	
   

  	
  Telecopier
  No.:  (920) 683-8123

  
	
   

  	
  Attention:  Maurice D. Jones

  

 

if to the Trustee,
Paying Agent or Registrar:

 

	
   

  	
  BNY
  Midwest Trust Company

  
	
   

  	
  2
  North LaSalle Street

  
	
   

  	
  Suite
  1020

  
	
   

  	
  Chicago,
  Illinois  60602

  
	
   

  	
  Telecopier
  No.:  (312) 827-8542

  
	
   

  	
  Attention:  Corporate Trust Administration

  

 

The Company or
the Trustee by notice to the other (and to each Representative for Designated
Senior Debt known to it to be then outstanding) may designate additional or
different addresses for subsequent notices or communications.

 

Any notice or
communication mailed to a Holder shall be mailed to it at such Holder’s address
as it appears on the Register by first class mail and shall be sufficiently
given to it if so mailed within the time prescribed.  Copies of any such communication or notice to a Holder shall also
be mailed to the Trustee and each Agent at the same time.

 

Failure to
mail a notice or communication to a Holder or any defect in it shall not affect
its sufficiency with respect to other Holders. 
Except for a notice to the Trustee, which is deemed given only when
received, and except as otherwise provided in this Indenture, if a notice or
communication is mailed in the manner provided in this Section 13.02, it
is duly given, whether or not the addressee receives it.

 

Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Holders shall be filed
with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

 

In case by
reason of the suspension of regular mail service or by reason of any other
cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.

 

97

 

SECTION 13.03.          Certificate and Opinion as to
Conditions Precedent.  Upon any
request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee:

 

(i)            an Officers’
Certificate, upon which the Trustee may conclusively rely, stating that, in the
opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and

 

(ii)           an Opinion of
Counsel, upon which the Trustee may conclusively rely, in form and substance
satisfactory to the Trustee stating that, in the opinion of such counsel, all
such conditions precedent have been complied with; provided, however,
that, with respect to matters of fact, an Opinion of Counsel may rely on an
Officers’ Certificate or certificates of public officials.

 

SECTION 13.04.          Statements Required in Certificate.  Each Officers’ Certificate with respect to
compliance with a condition or covenant provided for in this Indenture shall include:

 

(i)            a statement that
each person signing such certificate has read such covenant or condition and
the definitions herein relating thereto;

 

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

 

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

 

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

 

SECTION 13.05.          Rules by Trustee, Paying Agent or
Registrar.  The Trustee may make
reasonable rules for action by or at a meeting of Holders.  The Paying Agent or Registrar may make
reasonable rules for its functions.

 

SECTION 13.06.          Payment Date Other Than a Business
Day.  If an Interest Payment Date,
Redemption Date, Stated Maturity or date of maturity or repurchase of any Note
or any other payment date shall not be a Business Day, then payment of
principal of, premium, if any, or interest on such Note, as the case may be,
need not be made on such date, but may be made on the next succeeding Business
Day with the same force and effect as if made on the Interest Payment Date or
Redemption Date, or at the Stated Maturity or date of maturity or repurchase of
such Note; provided
that no interest shall accrue for the period from and after such Interest
Payment Date, Redemption Date, Stated Maturity or date of maturity or
repurchase, as the case may be.

 

SECTION 13.07.          Governing Law.  The laws of the State of New York shall govern
this Indenture, the Notes and the Guarantees, without regard to conflicts of
laws principles 

 

98

 

thereof.  The Trustee, the Company and the Guarantors
agree to submit to the jurisdiction of any federal or state court situated in
the State of New York, the City of New York, the Borough of Manhattan in any
action or proceeding arising out of or relating to this Indenture, the Notes
and the Guarantees.  Each of the Company
and each Guarantor hereby irrevocably submits to the non-exclusive jurisdiction
of each such court for the purpose of any such action or proceeding.  Each of the Company and each Guarantor
irrevocably waives, to the fullest extent it may effectively do so, any
objection to the laying of venue of any such action or proceeding in any such
court and the defense of inconvenient forum to the maintenance of any such action
or proceeding in any such court.

 

SECTION 13.08.          No Adverse Interpretation of Other
Agreements.  This Indenture may not
be used to interpret another indenture, loan or debt agreement of the
Company.  Any such indenture, loan or
debt agreement may not be used to interpret this Indenture.

 

SECTION 13.09.          No Recourse Against Others.  No recourse for the payment of the principal
of, premium, if any, or interest on any of the Notes, or for any claim based
thereon or otherwise in respect thereof, and no recourse under or upon any
obligation, covenant or agreement of the Company or the Guarantors contained in
this Indenture or in any of the Notes, or because of the creation of any
Indebtedness represented thereby, shall be had against any incorporator or
against any past, present or future partner, shareholder, other equityholder,
officer, director, employee, management board member, supervisory board member
or controlling person, as such, of the Company or the Guarantors or of any
successor Person, either directly or through the Company, the Guarantors or any
successor Person, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issue of the Notes.

 

SECTION 13.10.          Successors.  All agreements of the Company and the
Guarantors in this Indenture and the Notes shall bind their respective
successors.  All agreements of the
Trustee of this Indenture shall bind its successor.

 

SECTION 13.11.          Duplicate Originals.  The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.

 

SECTION 13.12.          Separability.  In case any provision in this Indenture, in
the Guarantees or in the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

SECTION 13.13.          Table of Contents, Headings, Etc.  The Table of Contents, Cross-Reference Table
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not to be considered a part hereof and
shall in no way modify or restrict any of the terms and provisions hereof.

 

SECTION 13.14.          Waiver of Jury Trial.  Each of the Company, the Guarantors,
Trustee, Paying Agent, and Registrar hereby irrevocably waives, to the fullest
extent permitted 

 

99

 

by applicable
law, any and all right to trial by jury in any legal proceeding arising out of
or relating to this Indenture, the Notes, the Guarantees or the transactions
contemplated hereby.

 

SECTION 13.15.          Unclaimed Money; Prescription.  If money deposited with the Trustee or any
Paying Agent for the payment of principal, premium (if any), interest or Additional
Interest (if any) remains unclaimed for two years, the Trustee and such Paying
Agent shall, upon written request of the Company, pay such money back to the
Company.  Following such repayment to
the Company, Holders of the Notes entitled to such payment must look to the
Company for such payment unless applicable abandoned property law designates
another Person and all liability of the Trustee and Paying Agent shall
cease.  Other than as set forth in this
paragraph, this Indenture does not provide for any prescription period for the
payment of principal, premium (if any), interest and Additional Interest (if
any) on the Notes.

 

ARTICLE
FOURTEEN

 

PAYING AGENT, TRANSFER AGENT AND REGISTRAR

 

SECTION 14.01.          Duties of the Paying Agent,
Transfer Agent and Registrar.  Each
of the Paying Agent, Transfer Agent and the Registrar shall be obliged to
perform such duties, and only such duties, as are herein specifically set
forth, and no implied duties or obligations shall be read into this Indenture
against it.  No provision of this
Indenture shall require the Paying Agent, the Transfer Agent or the Registrar
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties, or in the exercise of its rights and
powers, hereunder.

 

SECTION 14.02.          Agent of the Company.  In acting hereunder and in connection with
the Securities, the Paying Agent, the Transfer Agent and the Registrar shall
act solely as agents of the Company and will not thereby assume any obligations
towards, or relationship of agency or trust for, any of the Holders.

 

SECTION 14.03.          Certain Rights of Paying Agent,
Transfer Agent and Registrar. 
(a)  Each of the Paying Agent,
the Transfer Agent and the Registrar may consult with legal or other
professional advisers satisfactory to it, and the opinion of such advisers
shall be full and complete protection in respect of any action taken, omitted
or suffer hereunder in good faith and in accordance with the opinion of such
advisers.

 

(b)              Each
of the Paying Agent, the Transfer Agent and the Registrar shall be protected
and shall incur no liability for or in respect of any action taken, omitted or
suffered in reliance upon any instruction, request or order from the Company or
the Trustee, or any Note, form or transfer, resolution, direction, consent,
certificate, affidavit, statement, telex, facsimile transmission or other paper
or document believed by it in good faith to be genuine and to have been
delivered, signed or sent by the proper party or parties.

 

(c)              Except
as may be required by law, each of the Paying Agent, the Transfer Agent and the
Registrar shall (whether or not the relevant Note is overdue and regardless of
any notice of ownership, trust or any interest, or writing on, or the loss or
theft of, the certificate 

 

100

 

issued in respect of such Note)
be entitled to treat the registered owner of any Note as the absolute owner for
all purposes.

 

(d)              Each
of the Paying Agent, the Transfer Agent and the Registrar shall not be liable
for any action taken, suffered or omitted by it in good faith and believed by
it to be authorized or within the discretion or rights or powers conferred upon
it by this Indenture.

 

(e)              None
of the Paying Agent, the Transfer Agent or the Registrar shall have any duty or
responsibility in case of any default by the Company or any Guarantor in the performance
of its obligations hereunder or under the Notes or any Guarantee (including,
without limitation, the generality of the foregoing, any duty or responsibility
to accelerate all or any of the Notes or to initiate or to attempt to initiate
any proceedings at law or otherwise or to make any demand for the payment
thereof upon the Company or any Guarantor).

 

SECTION 14.04.          May Hold Notes.  Each of the Paying Agent, the Transfer Agent
and the Registrar and each’s respective officers, directors and employees, may
become the owner of, or acquire any interest in, any Notes with the same rights
that it or they would have if it were not appointed hereunder, and may engage
or be interested in any financial or other transaction with the Company and may
act on, or as depositary, trustee or agent for, any committee or body of
Holders of Securities or other obligations of the Company as freely as if it
were not appointed hereunder.

 

SECTION 14.05.          Appointment of Agents.  Each of the Paying Agent, the Transfer Agent
and the Registrar may perform the services required to be rendered by it
hereunder either directly or through attorneys-in-fact or agents not regularly
in its employ and the Paying Agent, the Transfer Agent or the Registrar, as the
case may be, shall not be responsible or liable for any willful misconduct or
negligence on the part of any such attorney or agent appointed by it with due
care hereunder.

 

SECTION 14.06.          Money Held.  The Paying Agent shall be entitled to deal
with moneys paid to it hereunder in the same manner as other moneys paid to it
as a banker by its customers except that the Paying Agent shall not be liable
to any Person for interest on, or have any responsibility to invest, any sums
held by it under this Indenture.

 

SECTION 14.07.          Paying Agent, Transfer Agent and
Registrar Not Responsible for Notes. 
The recitals contained herein and in the Notes shall be taken as the
statements of the Company and the Paying Agent, the Transfer Agent and the Registrar
assume no responsibility for the correctness of the same.  None of the Paying Agent, the Transfer Agent
or the Registrar makes any representation as to the validity or sufficiency of
this Indenture, the Notes, any Guarantee or any offering material.  The Paying Agent, the Transfer Agent and the
Registrar shall not be accountable for the use or application by the Company of
the proceeds of any Notes.

 

SECTION 14.08.          Compensation and Indemnification.  (a) 
The Company shall pay to each of the Paying Agent, the Transfer Agent
and the Registrar from time to time such compensation as may be agreed upon in
writing by the Company and each such agent for all services rendered by it
hereunder and shall reimburse each such agent upon its request for all reasonable
expenses, disbursements and advances incurred or made by it in accordance with
or in 

 

101

 

connection
with this Indenture (including the reasonable compensation and expenses of its
agents and counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or willful misconduct.

 

(b)              The
Company shall indemnify each of the Paying Agent, the Transfer Agent and the
Registrar for, and hold each harmless against, any and all claims, damages,
losses, costs, liability or expense (including, without limitation, the
reasonable fees and expenses of its counsel and advisors) and taxes (other than
taxes based on the income of the Trustee) incurred by it without negligence or
willful misconduct on each of their part arising out of or in connection with
the acceptance or administration of this Indenture and each of their duties
under this Indenture and the Notes and the exercise of each of their rights and
powers under this Indenture, including the costs and expenses of defending
itself against any claim or liability (whether asserted by the Company, any
Holder or any other Person) and of complying with any process served upon any
of them or their officers in connection with the exercise or performance by any
of them of their powers or duties under this Indenture and the Notes and the
exercise of the rights of the Trustee thereunder.  The Company need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld.  The provision of this subsection (b) of Section
14.08 shall remain in full force and effect notwithstanding the resignation or
removal of any of the Paying Agent, the Transfer Agent and the Registrar, the
payment of the Notes or the termination of this Indenture.

 

[Signature Pages Follow]

 

102

 

SIGNATURES

 

IN WITNESS
WHEREOF, the parties hereto have caused this Indenture to be duly executed, all
as of the date first written above.

 

 

	
   

  	
  THE MANITOWOC COMPANY, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President, General Counsel

  and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANITOWOC CRANE COMPANIES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stanley St. John

  
	
   

  	
   

  	
  Name:

  	
  Stanley St. John

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANITOWOC MARINE GROUP, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  The Manitowoc Company, Inc.,

  
	
   

  	
   

  	
  as sole member and manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President, General Counsel

  
	
   

  	
   

  	
   

  	
  and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANITOWOC FOODSERVICE COMPANIES,

  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stanley St. John

  
	
   

  	
   

  	
  Name:

  	
  Stanley St. John

  
	
   

  	
   

  	
  Title:

  	
  President

  

 

S-1

 

	
   

  	
  MANITOWOC WESTERN COMPANY, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANITOWOC RE-MANUFACTURING, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANITOWOC CRANES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WEST-MANITOWOC, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FEMCO MACHINE COMPANY, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANITOWOC CP, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stanley St. John

  
	
   

  	
   

  	
  Name:

  	
  Stanley St. John

  
	
   

  	
   

  	
  Title:

  	
  President

  

 

S-2

 

	
   

  	
  KMT REFRIGERATION, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HARFORD DURACOOL, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DIVERSIFIED REFRIGERATION, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SERVEND SALES CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANITOWOC BEVERAGE SYSTEMS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANITOWOC ICE, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  

 

S-3

 

	
   

  	
  MANITOWOC EQUIPMENT WORKS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANITOWOC FP, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stanley St. John

  
	
   

  	
   

  	
  Name:

  	
  Stanley St. John

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KMT SALES CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANITOWOC BEVERAGE EQUIPMENT,

  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NORTH CENTRAL CRANE & EXCAVATOR

  SALES CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ENVIRONMENTAL REHAB, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  

 

S-4

 

	
   

  	
  MANITOWOC MEC, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MARINETTE MARINE CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GROVE INVESTORS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GROVE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GROVE WORLDWIDE, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  

 

S-5

 

	
   

  	
  GROVE U.S. LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Grove Worldwide, Inc., Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CRANE ACQUISITION CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CRANE HOLDING, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice D. Jones

  
	
   

  	
   

  	
  Name:

  	
  Maurice D. Jones

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Secretary

  

 

S-6

 

	
   

  	
  BNY MIDWEST TRUST COMPANY, as Trustee, Registrar, Transfer Agent and
  Paying Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roxane Ellwanger

  
	
   

  	
   

  	
  Name:

  	
  Roxane Ellwanger

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  

 

S-7

 

EXHIBIT A

 

[FACE OF NOTE]

 

 

[Insert Private Placement Legend and Global
Notes if Applicable]

 

THE MANITOWOC COMPANY, INC.

 

7 1/8% Senior Note
due 2013

 

$

 

CUSIP No.

 

No.

 

THE MANITOWOC
COMPANY, INC., a Wisconsin corporation (the “Company”, which term
includes any successor under the Indenture hereinafter referred to), for value
received, promise to pay to
                        ,
or its registered assigns, the principal sum of
$           on
November 1, 2013.

 

Interest
Payment Dates:  May 1 and
November 1 commencing May 1, 2004.

 

Regular Record
Dates:  April 15 and
October 15.

 

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.

 

A-1

 

IN WITNESS
WHEREOF, the Company has caused this Note to be signed manually by its duly
authorized signatories.

 

	
   

  	
  THE MANITOWOC COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(Trustee’s Certificate of Authentication)

 

This is one of
the 7 1/8% Senior Subordinated Notes due 2013
described in the within-mentioned Indenture.

 

Date:

 

	
   

  	
  BNY MIDWEST TRUST COMPANY, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-2

 

{REVERSE SIDE OF NOTE}

 

THE MANITOWOC COMPANY, INC.

 

7 1/8% Senior
Subordinated Note due 2013

 

1.             Principal and
Interest.

 

The Company
shall pay the principal of this Note on November 1, 2013.

 

The Company
promises to pay interest on the principal amount of this Note on each Interest
Payment Date, as set forth below, at the rate per annum shown above.

 

Interest will be paid semi-annually in arrears on each Interest Payment
Date, commencing May 1, 2004. 
Interest on this Note will accrue from the latest date to which interest
has been paid on the Notes or, if no interest has been paid, the Issue Date; provided, however,
that, if the Exchange Offer is consummated and Unrestricted Notes are issued in
exchange for this Note in connection therewith, any accrued and unpaid interest
on this Note shall be deemed to have accrued with respect to, and shall be paid
with respect to, such Unrestricted Notes. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months.

 

The Company
shall pay interest on overdue principal and premium, if any, and interest on
overdue installments of interest, to the extent lawful, at a rate per annum
that is the then applicable interest rate borne by the Notes.

 

2.             Method of
Payment.

 

The Company
shall pay interest on the principal amount of the Notes on each May 1 and
November 1 to the persons who are Holders of the relevant Notes on the
April 15 or October 15, as the case may be, immediately preceding
such Interest Payment Date (as reflected in the Register at the close of
business on the Regular Record Date), in each case, even if the Note is
canceled on registration of transfer or registration of exchange after such
record date.  The Company shall make
payments of principal on the Notes to Holders that surrender Notes to the
Paying Agent.

 

If a Holder
has given wire transfer instructions to the Paying Agent at least 15 days prior
to any payment, the Company shall make all principal, premium and interest and
Additional Interest, if any, payments on the Notes owned by such Holder in
accordance with those instructions.  All
other payments on the Notes shall be made by check mailed to the Holders at
their address set forth in the register of Holders, or in the case of the final
payment of principal and interest, if any, on any Note, upon presentation and
surrender of such Note at the office of the Paying Agent.  All payments on the Notes will be made in
Dollars.

 

A-3

 

3.             Paying Agent and
Registrar.

 

Initially, the
Company has appointed the corporate trust office of the Trustee located at the
address set forth in Section 13.02 of the Indenture as Paying Agent.

 

4.             Indenture;
Limitations.

 

The Company
issued the Notes under an Indenture dated as of November 6, 2003 (the “Indenture”),
among the Company, the Guarantors named therein and BNY Midwest Trust Company,
as trustee (the “Trustee”).  Capitalized terms herein are used as defined in the Indenture
unless otherwise indicated.  This Note
is one of a duly authorized issue of Notes of the Company designated as its
7 1/8% Senior Notes due 2013 (the “Initial Notes”).  The Initial Notes are initially being issued
in the aggregate principal amount of $150,000,000.  Subject to Section 4.03, the Company shall be entitled to issue
Additional Notes pursuant to Section 2.14 of the Indenture (the “Additional
Notes”).  The Notes include the
Unrestricted Notes (as defined below) issued in exchange for the Additional
Notes pursuant to the Registration Rights Agreement.  The Initial Notes issued on the Issue Date, any Additional Notes
and all Exchange Notes are treated as a single class of securities under the
Indenture.  The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act. 
The Notes are subject to all such terms, and Holders are referred to the
Indenture and the Trust Indenture Act for a statement of all such terms.  To the extent permitted by applicable law,
in the event of any inconsistency between the terms of this Note and the terms
of the Indenture, the terms of the Indenture shall control.  This is one of the Notes referred to in the
Indenture.  The Notes are unsecured.

 

5.             Redemption.

 

Optional Redemption.  Except as described below, the Notes are not
redeemable before November 1, 2008. 
Thereafter, the Company may redeem the Notes at its option, in whole or
in part, upon not less than 30 nor more than 60 days’ notice to the Holders, at
the following redemption prices (expressed as percentages of the principal
amount thereof) if redeemed during the twelve-month period commencing on
November 1 of the years set forth below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2008

  	
   

  	
  103.563

  	
  %

  
	
  2009

  	
   

  	
  102.375

  	
  %

  
	
  2010

  	
   

  	
  101.188

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition,
the Company must pay accrued and unpaid interest on the Notes redeemed.

 

Optional Redemption upon Public Equity
Offerings.  At
any time, or from time to time, on or prior to November 1, 2006, the
Company may, at its option, use the net cash proceeds of one or more Public
Equity Offerings (as defined below) to redeem up to 35% of the principal 

 

A-4

 

amount of the
Notes (including any Additional Notes) outstanding under the Indenture at a redemption
price of 107.125% of the principal amount thereof plus accrued and unpaid interest
thereon, if any, to the date of redemption; provided that:

 

(1)           at least 65% of the principal amount
of Notes (including any Additional Notes) outstanding under the Indenture
remains outstanding immediately after any such redemption; and

 

(2)           the Company makes such redemption not
more than 90 days after the consummation of any such Public Equity Offering.

 

“Public
Equity Offering” means an underwritten public offering of Qualified Capital
Stock of the Company pursuant to a registration statement filed with the
Commission in accordance with the Securities Act.

 

In the event
that the Company chooses to redeem less than all of the Notes, selection of the
Notes for redemption will be made by the Trustee either:

 

(1)           in compliance with the requirements
of the principal national securities exchange, if any, on which the Notes are
listed; or,

 

(2)           on a pro rata basis, by lot or by
such method as the Trustee shall deem fair and appropriate.

 

No Notes of a
principal amount of $1,000 or less shall be redeemed in part.  If a partial redemption is made with the proceeds
of a Public Equity Offering, the Trustee will select the Notes only on a pro rata
basis or on as nearly a pro rata basis as is practicable (subject
to the Depositary’s procedures, if any).

 

Notice of any
optional redemption will be mailed at least 30 days but not more than 60 days
before the redemption date to each Holder of Notes to be redeemed at its last address
as it appears in the Register.  On and
after the Redemption Date, interest ceases to accrue on Notes or portions of
Notes called for redemption so long as the Company has deposited with the
Paying Agent funds in satisfaction of the Redemption Price pursuant to the
terms of the Indenture, unless the Company defaults in the payment of the
Redemption Price.  The Trustee may
select for redemption portions of the principal amount of the Notes that have denominations
equal to $1,000 integral multiples thereof in accordance with Section 3.03 of
the Indenture.

 

6.             Repurchase upon
Change in Control.

 

Upon the
occurrence of a Change of Control, each Holder shall have the right, subject to
the terms and conditions set forth in the Indenture, to require the Company to
repurchase its Notes in cash pursuant to the offer described in the Indenture
at a purchase price equal to 101% of the principal amount thereof, plus accrued
and unpaid interest, and Additional Interest, if any, to the date of purchase
(the “Change of Control Payment”).

 

A-5

 

A notice of
such Change of Control will be mailed within 30 days after any Change of Control
occurs to each Holder at its last address as it appears in the Register and to
the Trustee.  The notice to the Holders
shall contain all instructions and materials necessary to enable such Holders
to tender Notes pursuant to the Change of Control Offer.  Such notice shall state:

 

(1)           that the Change of Control Offer is being made pursuant to
Section 4.11 of the Indenture and that all Notes tendered will be accepted for
payment;

 

(2)           the purchase price (including the amount of accrued
interest) and the purchase date (which shall be no earlier than the Change of
Control Payment Date);

 

(3)           that any Note not tendered will continue to accrue
interest if interest is then accruing;

 

(4)           that, unless the Company defaults in making payment
therefor, any Note accepted for payment pursuant to the Change of Control Offer
shall cease to accrue interest after the Change of Control Payment Date;

 

(5)           that Holders electing to have a Note purchased pursuant to
a Change of Control Offer will be required to surrender the Note, with the form
entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed,
to the Paying Agent at the address specified in the notice prior to the close
of business on the third business day prior to the Change of Control Payment
Date;

 

(6)           that Holders will be entitled to withdraw their election
if the Paying Agent receives, not later than 5:00 p.m., New York City time, on
the second Business Day preceding the Change of Control Payment Date, a
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Notes the Holder delivered for purchase and a statement
that such Holder is withdrawing his election to have such Note purchased; and

 

(7)           the circumstances and relevant facts regarding such Change
of Control.

 

7.             Denominations;
Transfer; Exchange.

 

The Notes are
in registered form without coupons in denominations of $1,000 principal amount
and multiples of $1,000 in excess thereof. 
A Holder may register the transfer or exchange of Notes in accordance
with the Indenture.  The Registrar may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay any taxes and fees required by law or permitted
by the Indenture.

 

8.             Persons Deemed
Owners.

 

A Holder shall
be treated as the owner of a Note for all purposes.

 

A-6

 

9.             Unclaimed Money.

 

If money
deposited with the Trustee or any Paying Agent for the payment of principal,
premium (if any), interest or Additional Interest (if any) remains unclaimed
for two years, the Trustee and each such Paying Agent shall pay such money back
to the Company upon written request of the Company.  Following such repayment to the Company, Holders of the Notes
entitled to such payment must look to the Company for such payment unless
applicable abandoned property law designates another Person and all liability
of the Trustee and such Paying Agent shall cease.  Other than as set forth in this paragraph, the Indenture does not
provide for any prescription period for the payment of principal, premium (if
any), interest and Additional Interest (if any) on the Notes.

 

10.           Discharge Prior
to Redemption or Maturity.

 

If the Company
deposits with the Trustee money or U.S. Government Obligations sufficient to
pay the then outstanding principal of and accrued interest on the Notes to
redemption or maturity, the Company and the Guarantors will be discharged from
the Indenture, the Notes and the Guarantees except in certain circumstances set
forth in the Indenture.

 

11.           Legal Defeasance
and Covenant Defeasance.

 

The Company
and each Guarantor may be discharged from their obligations under the
Indenture, the Notes and the Guarantees except for certain provisions thereof,
and the Company may be discharged from its obligations to comply with certain
covenants contained therein, in each case upon satisfaction of certain
conditions specified in the Indenture.

 

12.           Amendment;
Supplement; Waiver.

 

Subject to
certain exceptions, the Indenture, the Notes and the Guarantees may be amended
or supplemented with the consent of the Holders of at least a majority in
principal amount of the Notes then outstanding, and any existing default or
compliance with any provision may be waived with the consent of the Holders of
at least a majority in principal amount of the Notes then outstanding.  Without notice to or the consent of any
Holder, the parties thereto may amend or supplement the Indenture, the Notes
and the Guarantees to, among other things, cure any ambiguity, defect or
inconsistency.  Certain modifications
will require the consent of each Holder affected thereby.

 

13.           Restrictive
Covenants.

 

The Indenture
imposes certain limitations on the ability of the Company and its Restricted
Subsidiaries, among other things, to incur additional Indebtedness, make
Restricted 

 

A-7

 

Payments, use
the proceeds from Asset Sales, engage in transactions with Affiliates and, in
the case of the Company and the Guarantors, to merge, consolidate or transfer
substantially all of its assets.

 

14.           Successor Persons.

 

When a
successor person or other entity assumes all the obligations of its predecessor
under the Notes and the Indenture, the predecessor person will be released from
those obligations.

 

15.           Defaults and
Remedies.

 

If an Event of
Default (other than an Event of Default specified in clause (a)(6) or (a)(7) of
Section 6.01 of the Indenture that occurs with respect to the Company) occurs
and is continuing, the Trustee by notice to the Company, or the Holders of at
least 25% in aggregate principal amount of the Notes then outstanding under the
Indenture by notice to the Company and the Trustee, may declare the principal
of, premium, if any, and accrued interest, if any, on all Notes to be due and
payable.  If an Event of Default
specified in clause (a)(6) or (a)(7) of Section 6.01 occurs and is
continuing with respect to the Company, such amount with respect to all the
Notes shall, ipso facto, become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any
Holders.  Holders may not enforce the
Indenture, the Notes or the Guarantees except as provided in the Indenture.  The Trustee may require indemnity
satisfactory to it before it enforces the Indenture, the Notes or the
Guarantees.  Subject to certain
limitations, Holders of at least a majority in principal amount of the Notes
then outstanding may direct the Trustee in its exercise of any trust or power.

 

16.           Trustee Dealings
with Company.

 

Subject to the
Trust Indenture Act, the Trustee under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from and perform services
for the Company or its Affiliates and may otherwise deal with the Company or
its Affiliates as if it were not the Trustee.

 

17.           No Recourse
Against Others.

 

No recourse
for the payment of the principal of, premium, if any, or interest on any of the
Notes or the Guarantees, or for any claim based thereon or otherwise in respect
thereof, and no recourse under or upon any obligation, covenant or agreement of
the Company contained in the Indenture, in any of the Notes or the Guarantees,
or because of the creation of any Indebtedness represented thereby, shall be
had against any incorporator or against any past, present or future partner,
shareholder, other equityholder, officer, director, employee, management board
member, supervisory board member or controlling person, as such, of the
Company, the Guarantors or of any successor Person, either directly or through
the Company or any successor 

 

A-8

 

Person,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise.

 

18.           Authentication.

 

This Note
shall not be valid until the Trustee or authenticating agent signs the certificate
of authentication on the other side of this Note.

 

19.           Abbreviations.

 

Customary
abbreviations may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian) and U/G/M/A
(= Uniform Gifts to Minors Act).

 

The Company
shall furnish to any Holder upon written request and without charge a copy of
the Indenture.  Requests may be made to
The Manitowoc Company, Inc., 2400 South 44th Street, Manitowoc, Wisconsin
54221.

 

20.           Choice of Law.

 

The laws of
the State of New York shall govern the Indenture and this Note, without regard
to conflicts of laws principles thereof.

 

21.           [Registration
Rights.

 

Holders of
Restricted Notes are entitled to the benefits of the registration rights as set
forth in the Registration Rights Agreement. 
The Holders may be entitled to receive Additional Interest pursuant to
and in accordance with the terms of the Registration Rights Agreement.]

 

A-9

 

ASSIGNMENT FORM

 

I or we assign and transfer
this Note to

 

 

 

 

(Print or type
name, address and zip code of assignee or transferee)

 

 

(Insert
Company Registration, Social Security or other identifying number of assignee
or transferee)

 

and
irrevocably appoint

agent to
transfer this Security on the books of the Company.  The agent may substitute another

to act for him.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name appears on

  the other side of this Note)

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
   

  	
  Participant in a recognized Signature Guarantee Medallion 

  Program (or other signature guarantor program reasonably 

  acceptable to the Trustee)

  
							

 

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you wish to
have this Note purchased by the Company pursuant to Section 4.10 or Section
4.11 of the Indenture, check the box:  o

 

If you wish to
have a portion of this Note purchased by the Company pursuant to Section 4.10
or Section 4.11 of the Indenture, state the amount (in principal amount): 
$             .

 

	
  Date:

  	
   

  	
   

  
	
  Your
  Signature:

  	
   

  
	
   

  	
   

  
	
   

  
	
  (Sign exactly as your name appears on the
  other side of this Note)

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
						

 

A-11

 

SCHEDULE A

 

SCHEDULE OF
PRINCIPAL AMOUNT

OF INDEBTEDNESS EVIDENCED BY THIS NOTE

 

The initial principal amount of indebtedness evidenced by this Note
shall be $        .  The following decreases/increases in the
principal amount of indebtedness evidenced by this Note have been made:

 

	
  Date of 

  Decrease/Increase

  	
   

  	
  Decrease in 

  Principal Amount 

  of Indebtedness

  Evidenced

  	
   

  	
  Increase in 

  Principal Amount 

  of Indebtedness

  Evidenced

  	
   

  	
  Total Principal 

  Amount of Indebt-

  edness Evidenced

  Following Such 

  Decrease/Increase

  	
   

  	
  Notation Made 

  by or on Behalf of

  Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-12

 

EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

 

The Manitowoc Company, Inc.

2400 South 44th Street

Manitowoc, WI  54221

Attention:  Maurice D. Jones

 

BNY Midwest Trust Company

2 North LaSalle Street

Suite 1020

Chicago, Illinois  60602

Attn:  Corporate Trust Administration

 

Re:                               7 1/8%
Senior Notes due 2013

The Manitowoc Company, Inc.

 

Reference is
hereby made to the Indenture, dated as of November 6, 2003 (the “Indenture”),
by and among The Manitowoc Company, Inc., as Company (the “Company”),
the Guarantors named therein and BNY Midwest Trust Company, as trustee.  Capitalized terms used but not defined
herein shall have the meanings given to them in the Indenture.

 

                                       
(the “Transferor”) owns and proposes to transfer the Note[s] or interest
in such Note[s] specified in Annex A hereto, in a principal amount of
$                      
(the “Transfer”), to
                                     
(the “Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the
Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.             o            Check if Transferee will take delivery of a Book-Entry
Interest in the 144A Global Note or a Definitive Registered Note pursuant to
Rule 144A.  The Transfer is
being effected pursuant to and in accordance with Rule 144A under the United
States Securities Act of 1933, as amended (the “Securities Act”), and,
accordingly, the Transferor hereby further certifies that the Book-Entry Interest
or Definitive Registered Note is being transferred to a Person that the
Transferor reasonably believed and believes is purchasing the Book-Entry Interest
or Definitive Registered Note for its own account, or for one or more accounts
with respect to which such Person exercises sole investment discretion, and
such Person and each such account is a “qualified institutional buyer” within
the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A
and such Transfer is in compliance with any applicable blue sky securities laws
of any state of the United States.  Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred Book-Entry Interest or Definitive Registered Note
will be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the 144A Global Note and/or the Definitive Registered Note
and in the Indenture and the Securities Act.

 

B-1

 

2.             o            Check if Transferee will take delivery of a Book-Entry
Interest in the Regulation S Global Note or a Definitive Registered Note
pursuant to Regulation S.  The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
904 under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not being made to a person in the United
States and (x) at the time the buy order was originated, the Transferee was
outside the United States or such Transferor and any Person acting on its behalf
reasonably believed and believes that the Transferee was outside the United
States or (y) the transaction was executed in, on or through the facilities of
a designated offshore securities market and neither such Transferor nor any
Person acting on its behalf knows that the transaction was prearranged with a
buyer in the United States, (ii) no directed selling efforts have been made in
contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S under the Securities Act and (iii) the transaction is not
part of a plan or scheme to evade the registration requirements of the
Securities Act.  Upon consummation of
the proposed transfer in accordance with the terms of the Indenture, the
transferred Book-Entry Interest or Definitive Registered Note will be subject
to the restrictions on Transfer enumerated in the Private Placement Legend
printed on the Regulation S Global Note and/or the Definitive Registered
Note and in the Indenture and the Securities Act.

 

3.             o            Check and complete if Transferee will take delivery of
a Book-Entry Interest in the IAI Global Note, the 144A Global Note or a
Definitive Registered Note pursuant to any provision of the Securities Act
other than Rule 144A or Regulation S. 
The Transfer is being effected in compliance with the
transfer restrictions applicable to Book-Entry Interests in Restricted Global
Notes and Restricted Definitive Registered Notes and pursuant to and in
accordance with the Securities Act and any applicable blue sky securities laws
of any state of the United States, and accordingly the Transferor hereby
further certifies that (check one):

 

(a)           o            such Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act;

 

or

 

(b)           o            such Transfer is being effected to
the Company or a subsidiary thereof;

 

or

 

(c)           o            such Transfer is being effected to
an institutional “Accredited Investor,” as defined in Rule 501(a)(1), (2), (3)
or (7) of Regulation D under the Securities Act, and pursuant to an exemption from
the registration requirements of the Securities Act other than Rule 144A, Rule
144 or Rule 904, and the Transferor hereby further certifies that it has not engaged
in any general solicitation within the meaning of Regulation D under the Securities
Act and the Transfer complies with the transfer restrictions applicable to
Book-Entry Interests in a Restricted Global Note or Restricted Definitive
Registered Notes and the requirements of the exemption claimed, which
certification is supported by (1) a certificate executed by the Transferee in
the form of Exhibit D to the Indenture and (2) if such Transfer is in
respect of a principal amount of Notes at the time of transfer of less than
$250,000, an Opinion of Counsel provided by the Transferor or the Transferee (a
copy of which the Transferor has attached to this certification), 

 

B-2

 

to the effect
that such Transfer is in compliance with the Securities Act.  Upon consummation of the proposed transfer
in accordance with the terms of the Indenture, the transferred Book-Entry
Interest or Definitive Registered Note will be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Global Note and/or the Restricted Definitive Registered Notes and in the
Indenture and the Securities Act.

 

4.             o            Check if Transferee will take delivery of a Book-Entry
Interest in an Unrestricted Global Note or an Unrestricted Definitive Registered
Note.  The Transfer is being
effected pursuant to an effective registration statement under the Securities
Act and in compliance with the prospectus delivery requirements of the
Securities Act.  Upon consummation of
the proposed transfer in accordance with the terms of the Indenture, the
transferred Book-Entry Interest or Definitive Registered Note will not be
subject to the restrictions on transfer enumerated in the Private Placement
Legend.

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company.

 

	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
						

 

B-3

 

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.             The Transferor owns and proposes to
transfer the following:

 

[CHECK ONE]

 

(a)           o            a Book-Entry Interest in the:

 

(i)            o            144A Global Note (CUSIP
                ),
held through Participant Account
                ,
or

 

(ii)           o            Regulation S Global Note (CUSIP
                ),
held through Participant Account
                ,
or

 

(iii)          o            Unrestricted Global Note (CUSIP
                ),
held through Participant Account
                ,
or

 

(b)           o            a Restricted Definitive Registered
Note; or

 

2.             After the Transfer the Transferee
will hold:

 

[CHECK ONE]

 

(a)           o            a Book-Entry Interest in the :

 

(i)            o            144A Global Note (CUSIP
                ),
held through Participant Account
                ,
or

 

(ii)           o            Regulation S Global Note (CUSIP
                ),
held through Participant Account
                ,
or

 

(iii)          o            Unrestricted Global Note (CUSIP
                ),
held through Participant Account
                ,
or

 

(b)           o            a Restricted Definitive Registered
Note; or

 

(c)           o            an Unrestricted Definitive
Registered Note.

 

B-4

 

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

The Manitowoc Company, Inc.

2400 South 44th Street

Manitowoc, WI  54221

Attention:  Maurice D. Jones

 

BNY Midwest Trust Company

2 North LaSalle Street

Suite 1020

Chicago, Illinois  60602

Attn:  Corporate Trust Administration

 

Re:                               7 1/8%
Senior Notes due 2013

The Manitowoc Company, Inc.

 

(Regulation S
CUSIP
              )

(144A CUSIP
              )

(IAI CUSIP
              )

 

Reference is
hereby made to the Indenture, dated as of November 6, 2003 (the “Indenture”),
by and among The Manitowoc Company, Inc., as Company (the “Company”),
the Guarantors named therein and BNY Midwest Trust Company, as trustee.  Capitalized terms used but not defined
herein shall have the meanings given to them in the Indenture.

 

                                                 
(the “Owner”) owns and proposes to exchange the Note[s] or interest in
such Note[s] specified on Annex A hereto, in a principal amount of
$                        
(the “Exchange”).  In connection
with the Exchange, the Owner hereby certifies that:

 

1.             Exchange of Restricted Definitive
Registered Notes or Book-Entry Interests in a Restricted Global Note for Unrestricted
Definitive Registered Notes or Book-Entry Interests in an Unrestricted Global
Note

 

(a)           o            Check if Exchange is from Book-Entry Interest in a Restricted
Global Note to Book-Entry Interest in an Unrestricted Global Note.  In connection with the Exchange of the
Owner’s Book-Entry Interest in a Restricted Global Note for a Book-Entry
Interest in an Unrestricted Global Note in an equal principal amount, the Owner
hereby certifies (i) the Book-Entry Interest is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Global Notes and pursuant
to and in accordance with the United States Securities Act of 1933, as amended
(the “Securities
Act”), (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Book-

 

C-1

 

Entry Interest
in an Unrestricted Global Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

 

(b)           o            Check if Exchange is from Book-Entry Interest in a Restricted
Global Note to Unrestricted Definitive Note.  In connection with the Exchange of the
Owner’s Book-Entry Interest in a Restricted Global Note for an Unrestricted
Definitive Note, the Owner hereby certifies (i) the Definitive Note is being
acquired for the Owner’s own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to the
Restricted Global Notes and pursuant to and in accordance with the Securities
Act, (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

 

(c)           o            Check if Exchange is from Restricted Definitive Note
to Book-Entry Interest in an Unrestricted Global Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for a Book-Entry Interest in an Unrestricted Global
Note, the Owner hereby certifies (i) the Book-Entry Interest is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to Restricted
Definitive Registered Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Book-Entry Interest is being acquired
in compliance with any applicable blue sky securities laws of any state of the
United States.

 

(d)           o            Check if Exchange is from Restricted Definitive Note
to Unrestricted Definitive Note. 
In connection with the Owner’s Exchange of a Restricted Definitive Note
for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted
Definitive Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to Restricted Definitive Registered Notes and pursuant
to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not required
in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

 

2.             Exchange of Restricted Definitive
Registered Notes or Book-Entry Interests in Restricted Global Notes for Restricted
Definitive Registered Notes or Book-Entry Interests in Restricted Global Notes

 

(a)           o            Check if Exchange is from Book-Entry Interest in a Restricted
Global Note to Restricted Definitive Note.  In connection with the Exchange of the Owner’s Book-Entry
Interest in a Restricted Global Note for a Restricted Definitive Note with an
equal principal amount, the Owner hereby certifies that the Restricted
Definitive Note is being acquired for the Owner’s own account without
transfer.  Upon consummation of the
proposed Exchange in accordance with the terms of the Indenture, the Restricted

 

C-2

 

Definitive
Note issued will continue to be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Definitive
Note and in the Indenture and the Securities Act.

 

(b)           o            Check if Exchange is from Restricted Definitive Note
to Book-Entry Interest in a Restricted Global Note.  In connection with the Exchange of the
Owner’s Restricted Definitive Note for a Book-Entry Interest in the [CHECK ONE]
o  144A
Global Note, o  Regulation S Global Note, o  IAI Global Note with an equal principal
amount, the Owner hereby certifies (i) the Book-Entry Interest is being
acquired for the Owner’s own account without transfer and (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to
the Restricted Global Notes and pursuant to and in accordance with the Securities
Act, and in compliance with any applicable blue sky securities laws of any
state of the United States.  Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the Book-Entry Interest issued will be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company.

 

	
   

  	
  [Insert Name of Owner]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Dated:  ______________________

  	
   

  	
   

  
					

 

C-3

 

ANNEX A TO CERTIFICATE OF EXCHANGE

 

1.             The Owner currently owns and
proposes to Exchange the following:

 

[CHECK ONE OF (a)(i), (a)(ii), (a)(iii)or (b)]

 

(a)           a Book-Entry Interest in the:

 

(i)            o            144A Global Note (CUSIP
                    ),
held through Participant Account
                      ,
or

 

(ii)           o            Regulation S Global Note (CUSIP
                     ),
held through Participant Account
                     ,
or

 

(iii)          o            IAI Global Note (CUSIP
                     ),
held through Participant Account
                     ,
or

 

(b)           o            a Restricted Definitive Registered
Note.

 

2.             After the Exchange the Owner will
hold:

 

[CHECK ONE]

 

(a)           a Book-Entry Interest in the:

 

(i)            o            144A Global Note (CUSIP
                     ),
through Participant Account                      ,
or

 

(ii)           o            Regulation S Global Note (CUSIP
                     ),
through Participant Account
                     ,
or

 

(iii)          o            IAI Global Note (CUSIP
                     ),
through Participant Account
                     ,
or

 

(b)           o            a Restricted Definitive Registered
Note.

 

2.             The Owner requests that Definitive
Registered Notes be registered in the following name:

 

 

 

and sent to
the Owner at the following address:

 

 

 

C-4

 

EXHIBIT D

 

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

 

The Manitowoc Company, Inc.

2400 South 44th Street

Manitowoc, WI  54221

Attention:  Maurice D. Jones

 

BNY Midwest Trust Company

2 North LaSalle Street

Suite 1020

Chicago, IL  60602

Attn:  Corporate Trust Administration

 

Re:                               7 1/8%
Senior Notes due 2013

The Manitowoc Company, Inc.

 

Reference is
hereby made to the Indenture, dated as of November 6, 2003 (the “Indenture”),
by and among The Manitowoc Company, Inc., as Company (the “Company”),
the Guarantors named therein and BNY Midwest Trust Company, as trustee.  Capitalized terms used but not defined
herein shall have the meanings given to them in the Indenture.

 

In connection
with our proposed purchase of
$                  
aggregate principal amount of:

 

(a)           o            a Book-Entry Interest in a Global
Note, or

 

(b)           o            a Definitive Registered Note,

 

we confirm
that:

 

1.             We understand that any subsequent
transfer of the Notes or any interest therein is subject to certain
restrictions and conditions set forth in the Indenture and the undersigned
agrees to be bound by, and not to resell, pledge or otherwise transfer the
Notes or any interest therein except in compliance with, such restrictions and
conditions and the United States Securities Act of 1933, as amended (the “Securities
Act”).

 

2.             We understand that the offer and
sale of the Notes have not been registered under the Securities Act and that
the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence.  We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (a) to The Manitowoc Company, Inc. or any of its subsidiaries,
(b) pursuant to a registration statement that has been declared effective under
the U.S. Securities Act, (c) for so long as the Notes are eligible for resale
pursuant to Rule 144A under the U.S. Securities Act, to a person who the holder
reasonably believes is a QIB purchasing for

 

D-1

 

its own
account or for the account of a QIB in compliance with Rule 144A and to whom
notice is given that the transfer is being made in reliance on Rule 144A, (d)
pursuant to offshore transactions in compliance with Rule 903 and 904 under the
U.S. Securities Act, (e) in a transaction meeting the requirements of Rule
144 under the U.S. Securities Act, (f) to an institutional accredited
investor that, prior to such transfer, furnishes to the trustee or the
registrar a signed letter containing certain representations and agreements
relating to the transfer (the form of which letter has been obtained from the
trustee) and, if such transfer is in respect of an aggregate principal amount
of Notes less than $250,000, an opinion of counsel acceptable to the Company
that such transfer is in accordance with the U.S. Securities Act, or
(g) in accordance with another exemption from the registration
requirements of the U.S. Securities Act (and based upon an opinion of counsel
acceptable to The Manitowoc Company, Inc.), subject in each of the foregoing
cases to any requirements of law that the disposition of its property or the
property of such investor account or accounts be at all times within its or
their control and in compliance with any applicable state securities laws.  We further agree to provide to any person
purchasing the Definitive Registered Note or Book-Entry Interest in a Global
Note from us in a transaction meeting the requirements of clauses (a) through
(g) of this paragraph a notice advising such purchaser that resales thereof are
restricted as stated herein.

 

3.             We understand that, on any proposed
resale of the Notes or Book-Entry Interest therein, we will be required to
furnish to you and the Company such certifications, legal opinions and other
information as you and the Company may reasonably require to confirm that the
proposed sale complies with the foregoing restrictions.  We further understand that the Notes
purchased by us will bear a legend to the foregoing effect.

 

4.             We are an institutional “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under
the Securities Act) and have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are acting are
each able to bear the economic risk of our or its investment.

 

5.             We are acquiring the Notes or
Book-Entry Interest therein purchased by us for our own account or for one or
more accounts (each of which is an institutional “accredited investor”) as to
each of which we exercise sole investment discretion without a view to distribution
thereof and without any present intention of selling such Notes or Book-Entry
Interests in a transaction that would violate the Securities Act.

 

D-2

 

You and the
Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the matters
covered hereby.

	
   

  	
  [Insert Name of Accredited Investor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
   

  
					

 

D-3

 

EXHIBIT E

 

FORM OF GUARANTEE

 

For value
received, the undersigned hereby unconditionally guarantees to the Holder of
this Note the cash payments in Dollars of principal of, premium, if any,
Additional Interest, if any, and interest on this Note in the amounts and at
the time when due and interest on the overdue principal and premium and, to the
extent lawful, Additional Interest, if any, and interest, if any, on this Note,
if lawful, and the payment or performance of all other obligations of the
Company under the Indenture or the Notes, to the Holder of this Note and the
Trustee, all in accordance with and subject to the terms and limitations of
this Note and Article Eleven of the Indenture and this Guarantee.  This Guarantee will become effective in
accordance with Article Eleven of the Indenture and its terms shall be
evidenced therein.  The validity and
enforceability of each Guarantee shall not be affected by the fact that it may
not be affixed to any particular Note. 
Capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Indenture dated as of November 6, 2003, between
The Manitowoc Company, Inc. and BNY Midwest Trust Company, as Trustee, as
amended or supplemented (the “Indenture”).

 

The
obligations of the undersigned to the Holders of Notes and to the Trustee pursuant
to this Guarantee and the Indenture are expressly set forth in Article Eleven
of the Indenture and reference is hereby made to the Indenture for the precise
terms of this Guarantee and all of the other provisions of the Indenture to
which this Guarantee relates.

 

THIS GUARANTEE WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  EACH GUARANTOR HEREUNDER AGREES TO SUBMIT TO
THE JURISDICTION OF ANY FEDERAL OR STATE COURT SITUATED IN THE STATE OF NEW
YORK, THE CITY OF NEW YORK, THE BOROUGH OF MANHATTAN FOR THE PURPOSES SET FORTH
IN THE INDENTURE, THE NOTES OR THIS GUARANTEE.

 

Date:  November 6, 2003

 

	
   

  	
   

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

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