Document:

MLA - GE Cap Corp (Leasing) &

 

Exhibit 10.55

 

 

 

 

 

 

 

 

DATED 28th March, 2002

 

 

 

MASTER LEASE AGREEMENT

 

 

- between -

 

 

GE CAPITAL EQUIPMENT FINANCE LTD

 

 

- and -

 

 

LABOUR READY

TEMPORARY SERVICES UK LIMITED

 

(as Lessee)

 

 

 

 

 

 

 

 

 

MASTER LEASE AGREEMENT

 

 

THIS

AGREEMENT is made on 28th March, 2002

 

BETWEEN:-

 

(1)                                  GE CAPITAL EQUIPMENT FINANCE LTD of Capital House, Bond

Street, Bristol BS1 3LA (registered no.1102466) (the “Lessor”, which expression

shall include its successors and assigns); and

 

(2)                                  LABOUR READY TEMPORARY SERVICES UK

LIMITED whose

registered office is at 1 Springfield Street, Warrington, Cheshire WA1 1BB

(registered no. 3596711)  (“the Lessee”, which expression shall include

its successors).

 

WHEREAS

(A)                              From time to time

the Lessee shall hire from the Lessor products (“Products” which expression

includes each and any part thereof) to be described in schedules (each a

“Schedule”) to be entered into on the occasion of each such transaction.

(B)                                The terms and

conditions herein contained and those contained in the relevant Schedule shall

apply to each transaction undertaken in accordance with a Schedule. Each

Schedule incorporporating the terms herein shall have effect as a separate

contract. References herein to an “Agreement” shall be construed in relation to

Products as referenceds to this Agreement and to the relevant Schedule.

 

IT IS AGREED as follows:-

 

1.                                      ACQUISITION, DELIVERY AND ACCEPTANCE

OF THE PRODUCTS

 

1.1                                 This Agreement shall be

effective from the date on which it is executed by the parties hereto SAVE THAT

the obligation of the Lessor to hire any Products acquired by it to the Lessee

hereunder shall be subject to receipt by the Lessor of the following each in

form and substance satisfactory to the Lessor i) a Schedule and a certificate

of acceptance (“Certificate of Acceptance”) relating to such Products; ii) a

certified copy of the resolution of the Lessee’s Board of Directors authorising

this Agreement and all documents relating thereto; iii) evidence of insurance

pursuant to Clause 5; and  (iv) such

other documents as the Lessor may require.

 

1.2                                 The Lessee shall be

responsible for the delivery and installation (if applicable) of the Products

at the site (if any) specified in the Schedule (the “Products Location”) and

shall indemnify the Lessor on demand against any transportation, delivery and

or installation costs.  Upon the date of

execution of the Certificate of Acceptance (“Acceptance Date”) the Products

referred to therein shall be deemed delivered to, and unconditionally accepted

by, the Lessee from the Lessor for hire hereunder and such acceptance shall be

conclusive evidence that the Lessee has examined such Products and found them

to be complete, in good order and condition, of satisfactory quality, fit for

any purpose for which they may be intended or required and in every other way

satisfactory.

 

1.3                                 If, at the request of the

Lessee, the Lessor becomes liable to any supplier or manufacturer of any

Products or the lessor acquires or becomes obliged to acquire any Products the

Lessee shall thereupon become irrevocably bound to take such Products, if and

when acquired by the Lessor, upon leasefrom the Lessor on the terms hereunder.

 

2.                                      HIRING AND PERIOD OF HIRING

 

As and from the Acceptance Date, the Lessor

agrees to hire and the Lessee agrees to take on hire the Products, upon the

terms and conditions contained herein for the period specified in the Schedule

(“Hire Period”).

 

3.                                      RENTALS AND PAYMENTS

 

3.1                                 The Lessee shall throughout

the Hire Period pay to the Lessor, without demand, the rentals in the amounts and

at the times as set out in the Schedule (“Rental Payments”).  Rental Payments payable in advance shall not

be returnable in the event of termination of the leasing of the Products for

whatever reason.

 

3.2                                 All payments to be made by the

Lessee to the Lessor under the Lease shall be made in immediately available

funds on the due date (PROVIDED THAT if payment falls due on a day

which is not a Working Day, payment shall be made on the preceding Working Day)

and paid to the Lessor as specified in the Schedule or as the Lessor may from

time to time direct.

 

3.3                                 All Rental Payments and other

payments to be made under this Agreement are calculated without regard to Value

Added Tax (or any similar Tax replacing or introduced in addition to the same)

(“VAT”) and the Lessee shall, in addition to such Rental Payments and other

payments, pay to the Lessor, on demand, such VAT as is required from time to

time by law to be paid.

 

3.4                                 If any payment due from the

Lessee to the Lessor under this Agreement is not paid on the due date or if any

Lessor shall make any payment under the powers herein conferred on the Lessor,

the Lessee shall, without prejudice to the Lessor’s other rights and remedies,

pay on demand interest thereon at the Overdue Rate (after as well as before

judgment may be obtained) from and including such due date or the date of

payment by the Lessor, as the case may be, to the date of actual payment or

reimbursement to the Lessor. “Overdue Rate” means the rate of 2% per month

calculated on a daily basis and compounded monthly.

 

3.5                                 All payments due under this

Agreement from the Lessee shall be made without any deduction, set-off,

counterclaim or withholding whatsoever. 

If under applicable law the Lessee is required to make any deduction or

withholding, the Lessee shall increase the payments to the Lessor so that the

net amount received by the Lessor after any deduction or withholding shall be

equal to the full amount which the Lessor would have been paid had payment not

been made subject to any deduction or withholding.

 

4.                                      EXCLUSION OF LESSOR’S LIABILITY AND

BENEFIT OF WARRANTIES

 

4.1                                 The Lessee and the Lessor recognise that

there is a risk that any Products, in particular computer hardware and software

may not perform as expected and may not be satisfactory.  The Lessee and the Lessor both also

acknowledge that salesmen acting on behalf of suppliers may make

representations about Products including computer hardware and software that

are difficult to evaluate until delivery and commissioning.  When Products are financed, the risk of them

not working satisfactorily or according to any representations may be assumed

by the Lessee, by the 

 

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Lessor, by the

Supplier, by an intermediary or by an insurer. 

The Lessee and the Lessor both appreciate that the allocation of risk is

a matter of agreement and have decided that it shall be borne by the Lessee,

save to the extent that the Lessor has been able to obtain a right of recourse

against the Supplier or any intermediary and has been able to pass that right

to the Lessee under the Contracts (Rights of Third Parties) Act 1999.

 

4.2                                 For that reason, the Lessee

and the Lessor agree that there is no term in this Agreement by which the

Lessor is responsible for the performance of the Products, whether generally or

in relation to any particular purpose. 

The Lessor does not know if any representation was made to the Lessee

about the Products, but if it was, the Lessee acknowledges that it was not made

on the Lessor’s behalf and that the Lessee has not entered into this Agreement

in reliance on it.  The Lessee and the

Lessor also agree that the Lessor has not assumed any duty of care towards the

Lessee.

 

4.3                                 For the avoidance of doubt,

the Lessee and the Lessor agree that no terms are to be implied into this

Agreement.

 

4.4                                 If, contrary to sub-paragraph

3 above, the law requires terms to be implied into this Agreement, the Lessee

and the Lessor agree that the Lessor is not liable for any breach of them,

because if the risk of breach of any such terms had been allocated differently

the Lessor would have charged a higher rental; because the Lessor is not in a

position to evaluate and therefore insure against the risk of a breach, whilst

the Lessee is in a better position to do so; and because the Lessee has chosen

the Products and the Supplier.

 

4.5                                 In no event will the Lessor’s

liability under this Agreement exceed the aggregate of the Rental Payments

(less any Maintenance Charges included) paid by the Lessee at the time the liability

arises.

 

4.6                                 In no event will the Lessor be

liable to the Lessee in contract, tort or otherwise including any liability for

negligence:-

(a)                                  for any loss of revenue,

business, anticipated savings or profits or any loss of use or value; or

(b)                                 for any indirect or

consequential loss, however arising.

“Anticipated savings” means any expense

which the Lessee expects to avoid incurring or to incur in a lesser amount than

would otherwise have been the case.

 

5.                                      INSURANCE

5.1                                 Subject to Clause 5.2 the following

shall apply:

 

5.1.1                        The Lessee shall, at its own expense, from the date of

delivery of the Products to the Lessee until the Products are returned to the

Lessor or otherwise sold or disposed of, maintain insurance: (i) of the

Products, in respect of loss or damage howsoever occurring, in an amount at

least equal to their full market replacement value from time to time (on an

agreed value basis), against all risks, naming the Lessor as an additional

insured and, in respect of any Casualty (as hereinafter defined) and any other

loss or damage in excess of £10,000 per occurrence as loss payee; (ii) in

favour of the Lessor and each member of the group of companies of which the

Lessor  is a member (“the Lessor’s Group”),

against all third party liability risks arising out of or in connection with

the Products, in an amount as the Lessor shall approve and naming the

Lessor  and each member of the Lessor ‘s

Group as an additional insured; and (iii) against such other or further risks

as may be required by statute, regulation or order.

 

5.1.2                        All insurance shall be in a form and with insurers

approved by the Lessor  and shall: (i)

provide that the Lessor shall be given 30 days’ prior notice of any

cancellation, amendment and/or non-renewal; (ii) provide that the Lessor ‘s and

such members’ interests shall not be invalidated by any act or omission or

breach of warranty of the Lessee or its servants or agents; and (iii) provide a

waiver by insurers of any right of subrogation against the Lessor  and of any right of contribution from any

other insurance carried by the Lessor.

 

5.1.3                        The Lessee shall on the Acceptance Date and at such

other times as the Lessor may request produce to the Lessor each policy of

insurance together with written evidence of payment of premiums.

 

5.1.4                        The Lessee shall not do or omit to do anything which

is contrary to the terms of any such policy of insurance or which might entitle

the insurers to cancel such policy or reduce or avoid any liability or claim

thereunder.

 

5.1.5                        The Lessee shall notify the Lessor in writing

forthwith of any occurrence which shall or may give rise to a claim under any

policy of insurance and shall not agree to any settlement of any such claim

without the prior consent of the Lessor. Any costs incurred by the Lessor in

connection with the adjustment or collection of insurance proceeds shall be

borne by the Lessee.

 

5.2                                 Where it is indicated in the

Schedule that the parties have agreed that the Lessee may self-insure the

Products the Lessee shall indemnify the Lessor and keep it fully indemnified

against:

 

5.2.1                        any damage to the Products of any nature whatsoever;

 

5.2.2                        any claim for loss, damage or expense or death or

personal injury caused by the Products or their use.  The Lessee shall, at its own expense, arrange for any damage to

the Products to be repaired immediately and shall pay to the Lessor on demand a

sum to compensate the Lessor for any loss, damage, cost or expense suffered or

incurred by the Lessor as a result of damage in connection with the Products or

their use.

 

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6.                                      DESTRUCTION AND DAMAGE

 

6.1                                 If any unit of Products shall

become lost, stolen, confiscated, requisitioned, destroyed or damaged beyond

repair (each a “Casualty”), then the Lessee shall promptly and fully notify the

Lessor in writing thereof and pay forthwith the amounts referred to in Clause

11.2 less any insurance proceeds received and retained by the Lessor in respect

of such Products which shall have been applied in accordance with the last two

sentences of Clause 11.3 but with the reference therein to Clause 11.3  being construed as a references to Clause

5.1.5.

 

6.2                                 As and from the Acceptance

Date, the Products shall be at the sole risk of the Lessee. The Lessee shall be

liable promptly to reinstate or repair, at its own cost, any loss of or damage

to (not amounting to a Casualty) any of the Products from whatsoever

cause.  The Lessor shall apply any

insurance proceeds received in respect of such loss or damage in reimbursement

to the Lessee of the cost of reinstatement or repairs on completion of the same

PROVIDED

THAT such proceeds may be applied first towards payment of any sums

then owing by the Lessee under this Agreement

 

7.                                      USE AND MAINTENANCE

 

7.1                                 The Products shall be used by the

Lessee solely in the conduct of its business, in compliance with all applicable

laws and regulations, and in a skilful and proper manner by qualified and

competent persons in accordance with all operating instructions of the

manufacturer and supplier thereof.

 

7.2                                 Subject (where relevant) to

clause 14 below the Products shall at all times remain in the Lessee’s physical

possession and control and be kept at the Products Location (save for temporary

removal for repairs and maintenance). 

In no event shall the Products be removed from the United Kingdom

without the Lessor’s prior written consent.

 

7.3                                 The Lessor and its agents

shall be entitled (but not obliged) at any reasonable time to inspect the

Products.  Upon request, the Lessee will

promptly provide written confirmation of the current location of the Products.

 

7.4                                 The Lessee shall, at its own

expense, maintain the Products in good condition (fair wear and tear excepted)

and in good and safe working order in accordance with all instructions and

recommendations of the manufacturer and supplier.  The Lessee shall also, at its own expense, make all alterations,

additions or modifications required by applicable law or regulation, but shall

not otherwise make alterations, additions or modifications without the Lessor’s

prior consent.  All replacement parts

and additions shall become the property of the Lessor free of all claims and

encumbrances and a part of the Products.

 

7.5                                 The Lessee shall keep in

effect any permits, licenses or other authorisations which are from time to

time necessary for the carrying out of its obligations under the Lease.

 

7.6                                 The Lessee shall be solely

responsible for all loss, theft or damage to the Products and promptly repair

or reinstate any part that is lost, stolen or damaged (otherwise than by reason

of Casualty) and apply any insurance proceeds received to this end.

 

8.                                      TITLE, OWNERSHIP AND PROTECTION OF

LESSOR’S INTERESTS

 

8.1                                 The Products shall at all

times remain the property of the Lessor and the Lessee’s sole rights in relation

thereto shall (save to the extent the same are disturbed by any third party) be

the use and possession thereof throughout the Hire Period subject to and in

accordance with the terms hereunder. 

The Lessee shall not claim capital allowances on the Products.

 

8.2                                 The parties hereto agree that

notwithstanding that the Products may at any time be or become affixed to any

land or buildings, they shall remain the personal property of the Lessor.  The Lessee shall ensure that all persons

having any interest at any time in any such land or buildings in which the

Products may from time to time be located shall prior to the installation of

the Products, or if later upon acquisition of such interest, receive written

notice of the Lessor’s ownership thereof and obtain from such persons written

waivers (in such form as the Lessor may reasonably require) of any rights which

they may have or acquire in the Products.

 

8.3                                 The Lessee shall, at its own

expense, take all steps as may be necessary to safeguard the rights of the

Lessor in the Products and in particular shall:

 

8.3.1                      if so requested by the Lessor, affix and maintain

nameplates on the Products indicating the Lessor’s ownership thereof and not

remove or cover up the same or allow any other nameplates or insignia dealing

with the rights of any other person to be placed on the Products;

 

8.3.2                      subject (where relevant) to clause 14 below not sell,

charge, assign, pledge, sub-let, lend, bail or otherwise dispose of the

Products or any interest therein or in the insurances thereon or its rights

under the Lease nor hold itself out as owner of the Products nor pledge the

credit of the Lessor for the repair of the Products or otherwise nor allow to

arise any lien, encumbrance or security interest over the Products;

 

8.3.3                      keep the Products free of all claims by other persons

(including by way of confiscation, seizure, execution, distress, impounding or

forfeiture) and in the event of any such claim shall procure the immediate

rehire therefrom of the same; and

 

8.3.4                      keep the Lessor immediately informed of the happening

of any event which might affect the rights of the Lessor or involve the Lessor

in any proceedings, loss or liability.

 

9.                                      PAYMENT OF OUTGOINGS AND INDEMNITY

 

                                                The Lessee agrees to pay and

discharge forthwith, and indemnify fully on demand the Lessor and each member

of the Lessor’s Group at all times against:

 

9.1                               all Taxes (other than

Corporation Tax on the Lessor’s overall net profits), insurance premiums,

rents, registration fees, licence duties and other similar outgoings payable in

connection with the Lease or the Products or any premises in which the Products

may from time to time be located and

 

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9.2                               all claims, liabilities,

losses, damages, costs and expenses incurred or suffered directly or indirectly

by the Lessor or any member of the Lessor’s Group in connection with the Lease

or the Products or the design, manufacture, purchase, ownership, delivery, use,

return, sale or other disposition of the Products including without limitation

in relation to any product or strict liability relating to the Products or any

contravention of any intellectual property rights

 

10.          END OF TERM

 

10.1                           If (a) upon expiry of the Hire

Period the Lessee elects not to exercise any option to renew its rental of the

Products contained in the relevant Schedule and (b) if the Lessor elects not to

appoint the Lessee its agent for the sale of the Products in accordance with

any terms to that effect in the relevant Schedule and (c) in any event upon

earlier termination under clause 11  then

the Lessee shall promptly at its own expense return the Products to such

location within the United Kingdom as the Lessor shall direct. If the Lessee

fails to return the Products in accordance with this requirement the Lessee

shall continue to pay Rental Payments on a pro rata basis until the Products

are received and accepted by the Lessor. In addition:

 

10.1.1                  The Products shall be properly packed for shipment in

accordance with the manufacturer’s recommendations and specifications, freight

pre-paid and insured.

 

10.1.2                  Upon the expiration or termination of the leasing of

the Products the Lessee shall no longer be in possession of the Products with

the consent of the Lessor and the Lessor may retake possession of the Products

for which purpose the Lessor or its agents may enter any premises where the

Products are believed to be located.

 

10.2                           On return the Products shall

comply with all return conditions specified in the schedule hereto (the “Return

Conditions”) or, if no Return Conditions have been specified, shall comply with

clause 10.1 above and be in Average Saleable Condition. “Average Saleable

Condition” means that all of the Products are free of markings and immediately

available for use by a third party user or lessee, other than the Lessee,

without the need for repair or refurbishment. Upon return of the Products they

may be inspected by or on behalf of the Lessor and any and all discrepancies

from the Return Conditions or (if there are no Return Conditions) any failure

to meet Average Saleable Condition may be corrected by the Lessor at the

Lessee’s expense. In remedying the condition of the Products the Lessor may

carry out such work as it reasonably considers necessary and the Lessee will in

any event on demand pay for any and all costs, charges and fees which may be

incurred, in connection with any restoration of the Products to the required

condition or which would be incurred if the Lessor carried out such

restoration.  Such costs shall be

calculated on the assumption that the restoration shall use only spare parts

and services recommended by the manufacturer.

 

 

11.                               DEFAULT

 

11.1                           If: (i) the Lessee fails to

pay any Rental Payment or other sum due to the Lessor under this Hire Agreement

within 10 days of its due date; (ii) the Lessee fails to perform and observe

any of its obligations under Clause 5; (iii) the Lessee allows the

Products to be used for any illegal purpose, or does or allows to be done any

act or thing which might jeopardise or prejudice the value of, or the Lessor’s

interest in, the Products or the Products shall for any reason become hazardous

to health or safety; (iv) the Lessee breaches any of the other terms of this

Hire Agreement and fails to remedy such breach within 30 days after receipt of

notice thereof; (v) any representation or warranty made by the Lessee in

connection with this Hire Agreement proves to have been incorrect and/or

misleading when made; (vi) the Lessee or any guarantor of the Lessee’s obligations

or any member of the group of companies of which the Lessee is a member (any

such guarantor or member, “a Relevant Party”) convenes any meeting of, or makes

any arrangement or composition with, its creditors; (vii) the Lessee or any

Relevant Party takes any steps, or has steps taken against it for its winding

up or dissolution or for the making of an administration order against it;

(viii) the Lessee or any Relevant Party has a receiver (including an

administrative receiver), administrator or similar officer appointed over any

of its business or assets; (ix) the Lessee or any Relevant Party is unable, or

admits its inability, to pay its debts as they fall due; (x) any indebtedness

of the Lessee becomes due prior to its stated maturity by reason of default or

is not paid at maturity or when validly demanded; (xi) any distress, execution,

sequestration, or other legal process is levied or enforced upon any of the

assets of the Lessee or upon the Products; (xii) the Lessee or any Relevant

Party is in default under any other agreement with any member of the Lessor ‘s

Group; or (xiii) the Lessee shall transfer or dispose of all or a material part

of its assets or shall cease, or threaten to cease all or a substantial part of

its business, or make a material change to its business or 51% of the ownership

of the shares in the Lessee as at the date of this Agreement changes THEN

this will be considered a “Repudiation”. Repudiation is when a party indicates

it no longer intends to keep to this Agreement and in any of the above cases

the Lessor may give the Lessee notice that the Lessee’s right to p[ossession of

the Products is termminated and the Lessor shall require recovery of the

Products.

 

11.2                           Forthwith on the termination

of the hiring of any of the Products pursuant to Clause 11.1 the Lessee

shall (without prejudice to any other right or remedy or to the Lessee’s

obligations to pay any other sums which may be or may after such termination

become due,) pay to the Lessor the sum of (i) all Rental Payments and all other

sums due or in arrears on the date of such termination; and (ii) as

compensation for the Lessor’s financial loss, by way of additional Rental

Payments, a sum equal to the aggregate of all Rental Payments which (but for

termination)  would have become due in

respect of the Products on or after the date of such termination and

during  the balance of the Hire Period

(if any) less a discount of 3% per annum (altogether the “Termination Sum”) and

(iii) if the Lessor is prevented from recovering the Products for any reason, a

sum equal to the estimated average fair market value of similar products of

like age

 

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11.3                           Provided that the Lessor shall

be in undisputed possession of the Products following a termination pursuant to

Clause 11.1, the Lessor shall at its sole option, either endeavour to sell such

Products upon such terms as theLessor shall in its absolute discretion

determine or have such Products valued by a reputable valuer (acting as expert

and not arbitrator) appointed by the Lessor on the basis of a trade sale

without warranty or recourse, whose valuation shall (save for manifest error)

be conclusive for all purposes. The Lessee shall upon demand pay to the Lessor

any costs incurred by the Lessor in holding, repairing, selling or valuing such

Products. The proceeds (if any) of such sale (net of VAT and any sales

commissions) received by the Lessor or, as the case may be, an amount equal to

the value stated in such valuation, shall be applied in the following order or

priorities:  (i) to the extent not

previously paid by the Lessee, to reimburse the Lessor for any costs incurred

by the Lessor in holding, repairing, selling or valuing the Products; then (ii)

to the extent not previously paid by the Lessee, to pay to the Lessor the

Termination Sum; then (iii) any surplus to be for the account of the Lessee.

Notwithstanding such application, the Lessee shall remain liable for any

shortfall in the amounts referred to under (i) and (ii) above.

 

12.                               RENTAL ADJUSTMENT ETC.

 

                                                The Lessor has assumed that

the basic rate of corporation tax throughout the Hire Period will be that

applying at the date of the Schedule and that Tax law and practice in force at

the date of the Schedule will not be changed in any material respect insofar as

it relates to the availability of writing down allowances or to any other

matter which would affect the net after Tax rate of return to the Lessor, its

principal or assignee from hiring the Products for the Hire Period. If any such

assumption proves to be incorrect the Rental Payments shall be increased by

such amount as the Lessor shall certify to be necessary to maintain the net

after Tax return to it, its principal or assignee. If no Rental Payments remain

to be paid undeder this Agreement such adjustments shall be expressed as a

single payment of additional rent by the Lessee to the Lessor.

 

13.                               DEDUCTIBILITY AND INDEMNITY PAYMENTS

 

13.1                           Notwithstanding any other

provision of this Agreement, the Lessor shall be entitled to withhold from any

payment due to the Lessee under this Agreement such amount as the Lessor

determines to be required to protect the Lessor against such payment not being

deductible by the Lessor for the purpose of computing its liability to

Corporation Tax for any accounting period of the Lessor.

 

13.2                           If at any time any payment

received or receivable by the Lessor under this Agreement by way of indemnity

or reimbursement is, or is determined to be, subject to Tax in the hands of the

Lessor then the amount of such payment shall be increased by or, as the case

may be, the Lessee shall reimburse to the Lessor, an amount which will restore

the after-Tax position of the Lessor to that which it would have been had the

payment by way of indemnity or reimbursement not been so subject to Tax.

 

14.                               SUB-HIRE

 

For the avoidance of doubt the Lessee shall

not be entitled to sub-hire the Equipment.

 

15.                               SOFTWARE

 

15.1                           When a part of the Products

consists of one or more computer disks, tapes, or other media which are

recorded computer programs in machine readable form (“Software”), either:

15.1.1                  The Lessor will obtain from the supplier a licence in

relation to the Software and grant the Lessee a sub-licence to use it (in place

of any pre-existing licence); or

15.1.2                  the supplier (or a third party) will grant the Lessee

a licence to use the Software.

 

15.2                           The Lessee undertakes to

comply with all the terms of the licence which will incorporate the supplier’s

standard terms and conditions of use of the software, whether the Lessor or the

supplier grants it.

 

15.3                           The Lessee acknowledges that

software maintenance is not a condition of this Agreement and Rental Payments

will continue to be payable even if the supplier (or any third party) does not

provide maintenance for the Software.

 

15.4                           The Lessee must obtain any

warranties or guarantees in respect of the Software and its suitability for its

purpose directly from the supplier. The Lessor excludes all express or implied

warranties, conditions and guarantees relating to any Software.

 

 

16.                               DATA PROTECTION

 

The Data

Protection Act gives individuals certain rights about how their personal data

will be used.  By signing this

Agreement (whether as an individual or on behalf of a corporate body) the

Lessee agrees that the Lessor may:

 

•                          obtain from the Lessee and

others (which may include searching with licensed credit reference agencies)

information about the Lessee, its business and directors;

•                          record with licensed credit

reference agencies the existence of this Agreement and how the Lessee conduct

its account.  Credit reference agencies

will retain a record of searches the Lessor carries out about the Lessee and

the other information the Lessor records with them.  These records may be used by other lenders in assessing

applications for credit by the Lessee and members of the Lessee’s household,

and for occasional debt tracing and fraud prevention purposes;

•                          transfer information to any

country. If no satisfactory data protection laws exist in the country to which

the Lessor is transferring the Lessee’s personal data, the Lessor will put in

place equivalent contractual safeguards to those contained in the Act;

•                          disclose information to third

parties, including manufacturers, resellers, brokers, suppliers, funders,

insurers, members of the GE group, agents, sub-contractors or guarantors and

carefully selected organisations so that they can use it to market their

products and services;

 

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•                          use this information for

making credit decisions, crime prevention, tracing defaulters and property,

administration, accounts, compliance, statistical analysis, market research,

internal reporting and marketing our products and services or those of the GE

group;

•                          contact the Lessee by post,

telephone or other means.

If the Lessee

does not want to receive any marketing information the Lessee may write to the

Lessor at any time to tell the Lessor not to send any more.

 

17.                               GENERAL

 

17.1                           The Lessee shall pay on

demand, on a full indemnity basis, all costs, legal fees and expenses of the

Lessor in connection with the enforcement or preservation of any of their

rights under this Agreement or any other documents entered into in connection

therewith or in connection with any waiver, variation, consent or approval

relating to any of the same or in connection with the tracing or recovery of

possession of the Products.

 

17.2                           This Agreement shall not be

varied except by agreement in writing between the parties hereto.  No waiver or consent by the Lessor shall be

effective unless in writing signed by or on behalf of the Lessor.  No failure or delay on the part of the

Lessor  in exercising any right or power

hereunder shall operate as a waiver thereof, nor shall any single or partial

exercise of any such right or power preclude any other or further exercise of

any such right or power.  The rights and

remedies herein provided are cumulative with and not exclusive of any rights or

remedies provided by law.  The

indemnities by the Lessee contained in this Agreement shall continue in full

force and effect notwithstanding the termination of the hiring of any Products

through effluxion of time or otherwise or the disposal of the Products.

 

17.3                           If any provision hereof is

void or unenforceable in any jurisdiction, such voiding or unenforceability

shall not affect the validity or enforceability of (i) such provision in any

other jurisdiction or (ii) the remainder of the provision which is void or

unenforceable and/or the remainder of the Agreement and/or the Agreement.

 

17.4                           All notices or other

communications under this Agreement shall be in writing and sent by first class

post or hand delivered to the addressee at its address set forth in the

Schedule (or to such other address as that party may notify to the other) and

shall be deemed to have been received by the addressee 2 Working Days after

posting if sent by first class post or on delivery if hand delivered.  The contents of any demand, notice or

certificate issued by the Lessor  as to

the amount of any payment due from the Lessee hereunder shall (save for

manifest error) be conclusive and binding on the Lessee.

 

17.5                           Subject to the express periods

of grace referred to in Clause 11.1, punctual payment of amounts payable by the

Lessee and timely performance by the Lessee of each of its obligations under

this Agreement shall be of the essence and shall be conditions of this

Agreement.  Notwithstanding any other

provisions hereof, the Lessor  shall be

entitled to set-off or withhold from any sum or sums expressed in this

Agreement to be payable to the Lessee by the Lessor  any amount due and payable to any member of the Lessor ‘s Group

from the Lessee on any account whatsoever. 

In the case of failure of the Lessee to comply with any provision of the

Agreement, the Lessor  shall have the

right (but not the obligation) to effect such compliance and the Lessee shall

reimburse the Lessor  upon demand for

expenses related thereto.

 

17.6                           Clause headings are for ease

of reference only and references to Clauses are, unless otherwise stated,

references to Clauses of this Agreement. 

References to a statute or statutory provision shall include reference

to any statutory modification or re-enactment of the same. “Working Day” means

any day other than a Saturday or a Sunday on which banks generally are open for

business in London, “Taxes” includes all taxes, levies, imposts, duties, rates

and charges of any nature whatsoever together with any penalties, additions to

tax, fines and interest thereon and “Taxation” shall be construed accordingly.

 

17.7                           If more than one person or

legal entity is named as the Lessee in this Agreement, the liability hereunder

of each such person or entity shall be joint and several.

 

17.8                           Neither the supplier nor any

person (other than an employee of the Lessor) has authority to bind or commit

the Lessor to any obligation.

 

17.9                           The Lessor enters into this

Agreement and each Schedule as either (a) owner of the Products or (b) as agent

of a third party who has acquired title in the Products. The Lessor may assign

the benefit of this Agreement to another party and may pass title in the

Products to another. If this happens, the Lessee shall owe to the principal or

assignee all obligations to be performed by it under this Agreement as if the

principal or assignee was named in this Agreement instead of the Lessor.

Regardless of any assignment or agency, the Lessor shall perform its

obligations directly to the Lessee and will remain responsible for the

management of this Agreement and the Schedule. By signing this Agreement the

Lessee consents to such assignment or agency.

 

17.10                     The Lessee may not assign or transfer any

of its rights or benefits under this Agreement without the Lessor’s prior

written consent.

 

17.11                     The Lessee on executing this Agreement

warrants to the Lessor that it is making this Agreement in the course of its

business.

 

17.12                     The Lessee shall send to the Lessor as soon

as the same are published a copy of every published, audited financial

statement of the Lessee.

 

17.13                     Subject to Clause 17.9 above a person who

is not a party to this Agreement has no right to enforce any term of this

Agreement under the Contracts (Rights of Third Parties) Act 1999.

 

17.14                     This Agreement shall be governed by English

law.  For the benefit of the Lessor, the

Lessee agrees that the English Courts shall have exclusive jurisdiction to

settle any disputes which arise in connection with this Agreement.

 

7

 

AS WITNESS whereof the parties hereto have hereunto set their

hands the day and year first above written.

 

SIGNED for and on behalf of the

Lessor:

GE CAPITAL EQUIPMENT

FINANCE LTD

 

 

 

 

	

  BY:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  TITLE:

  	

   

  

 

 

 

 

SIGNED for and on behalf of the

Lessee:

LABOUR

READY TEMPORARY SERVICES UK LIMITED

 

 

 

 

	

  BY:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  TITLE:

  	

   

  

 

 

8

 

SCHEDULE No. 

001

 

To a Master Lease Agreement dated   28th March, 2002 (the

“Agreement”) between

 

GE CAPITAL EQUIPMENT FINANCE LTD whose registered office is at Capital

House, Bond Street, Bristol BS1 (registered no. 1102466) (the “Lessor”, which

expression shall include its successors and assigns); and

 

LABOUR READY  TEMPORARY SERVICES UK LIMITED whose

registered office is at                                  1 Springfield Street, Warrington, Cheshire WA1 1BB (registered no.

3596711) (“the Lessee”, which expression shall include its successors).

 

THE PARTIES HERETO agree that the Lessor shall lease and the Lessee

shall take on lease the Products described herein on the terms contained in

this schedule and in the Agreement.

 

Terms defined in the Agreement shall, unless defined

by reference to this Schedule, bear the same meanings in this Schedule.   In the event of a conflict between the

provisions of this Schedule and those of the Agreement the provisions of this

Schedule shall prevail.

 

1.             Definitions

 

“Hire Period” means the period commencing on 28th

March, 2002 and ending on 28th February, 2007 inclusive.

 

“Products” means the products specified in the Annex A

to this schedule ‘Description of Equipment’.

 

“Products Location” means location as indicated in

Annex A.

 

“Rental Payments” means the payments payable under

paragraph 2 below.

 

“Supplier” means Diebold EMEA Business Centre, St

Pauls House, 3rd Floor, 23 Park Square South, Leeds LS1 2ND

 

2.             Rental Payments

 

The Lessee shall on or before the date of this

Agreement pay to the Lessor an initial Rental Payment of £11,705.03 inclusive

of VAT. Such Rental Payment shall be made in cleared funds to the Lessor’s bank

which is Barclays Bank PLC, 54 Lombard Street, London, EC4V 9EX Account No:

10021679, Sort Code 20-00-00, quoting reference ‘Labour Ready Schedule

001’.  The Lessee shall thereafter pay

further monthly Rental Payments of £9,961.73 plus VAT payable on 28th

April, 2002. All Rental Payments shall, unless and until the Lessor otherwise

directs, be paid in cleared funds to the Lessor’s bank as specified above.

 

3.             Insurance Details

 

Insurer: Willis North America Inc

11201 N Tabum

Boulevard

Suite 300

Pheonix, Az

85028

USA

Policy No. 877-559-6769

 

4.             Return Conditions —

Not Applicable

 

1

 

5.             Authority to complete

and amend

 

                The Lessee hereby irrevocably

authorises the Lessor to (i) insert in this Schedule the Start Date and the

first monthly Rental payment date and in Annex B to this Schedule the

Acceptance Date(s) and (ii) amend Annex A to this Schedule if necessary to

correct the cost per unit of any of the Products (and make any consequential

amendments to the initial and monthly Rental - Payments) and to include any

additional details in relation to the description of the Products.

 

Extension Option

 

The Lessee may by serving notice in writing not less

than one month prior to the expiry of the Hire Period elect to extend the term

of this Agreement for a further period of ten years at an annual rental of 0.5%

of the original cost of the Products to be paid annually in advance. In the

event that the Lessee exercises this option the remaining terms and conditions

of the Agreement shall continue to apply

 

 

Sales Agency

 

7.1           If

the Hire Period shall terminate by effluxion of time then subject to the Lessee

having paid to the Lessor all sums then due from the Lessee and provided the

Lessee has not elected to exercise any option to extend the term of the Hire

Period, the Lessor may appoint the Lessee, for a period of sixty (60) days as

and from the date of termination (“Final Date”), as the agent of the Lessor

(and if appointed the Lessee agrees to act) to endeavour to sell the Products

on behalf of the Lessor upon terms that the Products shall not be sold:

 

7.1.1        to

the Lessee or any person acting in trust for, as nominee or agent of, or

(within the meaning contained in Section 839 of the Income and Corporation

Taxes Act 1988) connected with, the Lessee;

 

7.1.2        on

terms that involve any warranty by, or recourse to, any of the Lessors or to

any third party whatsoever;

 

7.1.3        otherwise

than for cash payable immediately to the Lessor; and

 

7.1.4        otherwise

than for fair open market value or in compliance with any official trade code

of practice relevant to the offering of products of the same type as the

Products for sale in the Lessee’s name.

 

7.2           Where

the Lessee has been appointed agent for sale of the Products as aforesaid,

pending any such sale the Lessee shall, at the Lessee’s expense, store (but not

use), insure, maintain and keep safe the Products.

 

7.3           If

at the end of the period of sixty (60) days as and from the Final Date the

Products shall remain unsold the Lessee shall, unless the Lessor otherwise

requests pursuant to Clause 10.01 of the Agreement, return the Products to the

Lessor in accordance with Clause 10 of the Agreement.

 

2

 

7.4           The

proceeds (if any) of any sale of the Products by the Lessee as agent for sale

pursuant to paragraph 7.1 above (net of VAT and any sales commission payable to

any third party) shall, following receipt thereof by the Lessor, be applied in

the following order of priorities:  (i)

to pay to the Lessor a sum equal to two and one half per cent (2.5%) of such

proceeds; then (ii) to the extent not previously paid by the Lessee, to pay to

the Lessor any sums which may be or become due to the Lessor under this

Agreement; then (iii) to pay to the Lessee the balance by way of a rebate of

rentals

PROVIDED THAT any shortfall in the amounts due to the Lessor

referred to in (ii) above shall notwithstanding such application continue to be

payable by the Lessee.

 

8.             Data Protection

 

The Data Protection Act gives individuals certain

rights about how their personal data will be used. 

By signing this Agreement (whether as an individual or on

behalf of a corporate body) the Lessee agrees that the Lessor may:

 

•                                          obtain from the Lessee and

others (which may include searching with licensed credit reference agencies)

information about the Lessee, its business and directors;

•                                          record with licensed credit

reference agencies the existence of this Agreement and how the Lessee conduct

its account.  Credit reference agencies

will retain a record of searches the Lessor carries out about the Lessee and

the other information the Lessor records with them.  These records may be used by other lenders in assessing

applications for credit by the Lessee and members of the Lessee’s household,

and for occasional debt tracing and fraud prevention purposes;

•                                          transfer information to any

country. If no satisfactory data protection laws exist in the country to which

the Lessor is transferring the Lessee’s personal data, the Lessor will put in

place equivalent contractual safeguards to those contained in the Act;

•                                          disclose information to third

parties, including manufacturers, resellers, brokers, suppliers, funders,

insurers, members of the GE group, agents, sub-contractors or guarantors and

carefully selected organisations so that they can use it to market their

products and services;

•                                          use this information for

making credit decisions, crime prevention, tracing defaulters and property,

administration, accounts, compliance, statistical analysis, market research,

internal reporting and marketing our products and services or those of the GE

group;

contact the

Lessee by post, telephone or other means.

 

3

 

If the Lessee does not want to receive any marketing

information the Lessee may write to the Lessor at any time to tell the Lessor

not to send any more.

 

 

AS WITNESS whereof the parties hereto have hereunto set their

hands the day and year first above written.

 

SIGNED for and on behalf of the Lessor:

GE CAPITAL EQUIPMENT FINANCE LTD

 

 

 

	

  BY:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  TITLE:

  	

   

  

 

 

SIGNED for and on behalf of the Lessee: LABOUR READY TEMPORARY

SERVICES UK LIMITED

 

 

 

	

  BY:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  TITLE:

  	

   

  

 

 

4Exhibit 10

 

Exhibit 10.101

 

EXECUTION

COPY

 

 

 

 

SHARE PURCHASE AGREEMENT

 

 

dated

as of

 

 

May

2, 2001

 

 

between

 

ALLIANCE CAPITAL MANAGEMENT CORPORATION OF DELAWARE

 

 

and

 

 

EFM HOLDINGS GMBH

 

 

relating

to the purchase and sale

 

 

of

 

51% of the outstanding share capital

 

 

of

 

 

EAST FUND MANAGEMENTBERATUNG GMBH

 

 

Table

of Contents

 

	

  ARTICLE

  1

  DEFINITIONS

  
	

   

  
	

  Section 1.01.  Definitions

  
	

   

  
	

  ARTICLE

  2

  PURCHASE AND SALE

  
	

   

  
	

  Section 2.01.  Purchase and Sale

  
	

  Section 2.02.  Closing

  
	

   

  
	

  ARTICLE

  3

  REPRESENTATIONS AND WARRANTIES OF SELLER

  
	

   

  
	

  Section 3.01.  Corporate Existence and Power

  
	

  Section 3.02.  Corporate Authorization

  
	

  Section 3.03.  Governmental Authorization

  
	

  Section 3.04.  Non-contravention

  
	

  Section 3.05.  Ownership of Shares

  
	

  Section 3.06.  Litigation

  
	

  Section 3.07.  Finders’ Fees

  
	

  Section 3.08.  Inspections; No Other Representations

  
	

   

  
	

  ARTICLE

  4

  REPRESENTATIONS AND WARRANTIES OF BUYER

  
	

   

  
	

  Section 4.01.  Corporate Existence and Power

  
	

  Section 4.02.  Corporate Authorization

  
	

  Section 4.03.  Governmental Authorization

  
	

  Section 4.04.  Non-contravention

  
	

  Section 4.05.  Litigation

  
	

  Section 4.06.  Finders’ Fees

  
	

  Section 4.07.  Purchase for Investment

  
	

  Section 4.08.  Inspections; No Other Representations

  
	

   

  
	

  ARTICLE

  5

  COVENANTS OF SELLER

  
	

   

  
	

  Section 5.01.  Confidentiality

  
	

  Section 5.02.  Contribution of Loans

  
	

  Section 5.03.  Use of Alliance Information

  

 

 

	

  Section 5.04.  Maintenance Of Insurance

  
	

  Section 5.05.  Non-solicitation

  
	

   

  
	

  ARTICLE

  6

  COVENANTS OF BUYER

  
	

   

  
	

  Section 6.01.  Access

  
	

  Section 6.02.  Trademarks; Tradenames

  
	

  Section 6.03.  Payment Of Fees

  
	

  Section 6.04.  Release From Partnership Agreement

  
	

   

  
	

  ARTICLE

  7

  COVENANTS OF THE PARTIES

  
	

   

  
	

  Section 7.01.  Reasonable Best Efforts; Further

  Assurances

  
	

  Section 7.02.  Public Announcements

  
	

  Section 7.03.  Release

  
	

  Section 7.04.  Termination of Agreements and Arrangements

  
	

  Section 7.05.  Cooperation on Tax Matters

  
	

   

  
	

  ARTICLE

  8

  SURVIVAL; INDEMNIFICATION

  
	

   

  
	

  Section 8.01.  Survival

  
	

  Section 8.02.  Indemnification

  
	

  Section 8.03.  Procedures

  
	

  Section 8.04.  Calculation of Damages

  
	

  Section 8.05.  Assignment of Claims

  
	

  Section 8.06.  Exclusivity

  
	

   

  
	

  ARTICLE

  9

  MISCELLANEOUS

  
	

   

  
	

  Section 9.01.  Notices

  
	

  Section 9.02.  Amendments and Waivers

  
	

  Section 9.03.  Expenses

  
	

  Section 9.04.  Successors and Assigns

  
	

  Section 9.05.  Governing Law

  
	

  Section 9.06.  Arbitration

  
	

  Section 9.07.  Counterparts; Third Party Beneficiaries

  
	

  Section 9.08.  Entire Agreement

  
	

  Section 9.09.  Severability

  
	

  Section 9.10.  Captions

  

 

ii

 

SHARE PURCHASE AGREEMENT

THIS AGREEMENT dated as of

May 2, 2001 is by and between EFM Holdings GmbH, an Austrian Gesellschaft mit

beschrankter Haftung (“Buyer”) and Alliance Capital Management

Corporation of Delaware, a Delaware corporation (“Seller”).

W  I  T  N 

E  S  S  E  T  H

:

WHEREAS, Buyer is a new entity formed by certain

former executives of Seller or its Affiliates (as defined herein) for the

purpose of effecting the transactions contemplated hereby;

WHEREAS, Seller owns 51% of the issued and

outstanding share capital  of East Fund

Managementberatung GmbH (the “Joint Venture”);

WHEREAS, Seller desires to sell the Share (as

defined herein) to Buyer, and Buyer desires to purchase the Share from Seller,

upon the terms and subject to the conditions hereinafter set forth;

WHEREAS, simultaneous with the consummation of the

transactions contemplated by this Agreement, Buyer intends to purchase the

remaining 49% outstanding interest in the Joint Venture from Capital Invest (as

defined herein)  (the “Concurrent

Purchase”);

NOW, THEREFORE, for good and valuable consideration,

the receipt and sufficiency of which are hereby acknowledged, the parties

hereto agree as follows:

ARTICLE

1

DEFINITIONS

Section 1.01.  Definitions.  (a) The following terms, as used herein, have the following

meanings:

“Affiliate”

means, with respect to any Person, any other Person directly or indirectly

controlling, controlled by, or under common control with such Person; provided

that neither the Joint Venture nor any of its Subsidiaries shall be considered

an Affiliate of either Seller or, prior to the Closing Date, Buyer.  For purposes hereof, the term “control”

(including the correlative terms “controlling,” “controlled by” and “under common

control with”) means the possession of the direct or indirect 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.

“Alliance Capital” means Alliance Capital

Management L.P.

 “Alliance

Research” means all research reports, market research, “sell side”

research, and other investment related research information (including the

related analysis, statistical and economic data) generated by Alliance Capital

or any of its wholly-owned Subsidiaries, (i) including, without limitation,

those generated by economists and analysts employed by Alliance Capital or any

of its wholly-owned Subsidiaries and those made available to Alliance Capital’s

largest clients through a service generally referred to as “Alliance Capital

Express Research” and (ii) excluding any of the foregoing used or to be used by

Alliance Capital or any of its Subsidiaries to evaluate investments to be made

solely for its own account and not otherwise made available to clients of

Alliance Capital or its Subsidiaries.

“ATS” means Austrian Schillings.

“Business Day” means any day other than a

day on which banks are authorized or required to be closed in New York, New

York or Vienna, Austria.

“CAIB” means CA IB Investmentbank

Aktiengesellschaft.

“Capital Invest” means CAPITAL INVEST die

Kapitalanlagegesellschaft der Bank Austria/Creditanstalt Gruppe GmbH.

A “Change of Control” shall be deemed to

occur at any time that (i) the Williams Group ceases to beneficially own

(within the meaning of Rule 13d-3 promulgated under the Securities Act of 1934,

as amended) at least 51% of the direct or indirect voting power of the Joint

Venture or (ii) the Joint Venture sells, leases or otherwise transfers,

directly or indirectly, all or substantially all of its assets to any Person

(other than to an Affiliate thereof, at least 51% of which is beneficially

owned by the Williams Group).

“Closing Date” means the date of this

Agreement.

“Competing

Business” means any investment management business other than the

business of managing, promoting, forming, advising, financing or marketing

investment funds and portfolios in the private equity market.  For the avoidance of doubt, neither the

Joint Venture or any of its Affiliates shall be deemed to be engaged in a

“Competing Business” by virtue of any interest it or any of its directors,

officers or stockholders have in any business conducted by Alliance Capital or

any of its Subsidiaries or by virtue of its winding down all of the retail

funds currently managed by the Joint Venture.

 

2

 

“Joint Venture Documents” means any

contract, agreement or other arrangement relating to the organization,

management, affairs or business of the Joint Venture.

“knowledge of Seller” means matters actually

known to the Chief Executive Officer, the Chief Financial Officer or the

General Counsel of Alliance Capital.

“Lien” means with respect to any property or

asset, any mortgage, lien, pledge, charge, security interest or encumbrance in

respect of such property or asset.

“Notarial Deed and Assignment Agreement”

means the Notarial Deed and Assignment Agreement to be filed in Austria to

effect the purchase and sale of the Share as set forth in this Agreement under

Austrian law.

“Person” means an individual, corporation,

partnership, limited liability company, association, trust or other entity or

organization, including a government or political subdivision or an agency or

instrumentality thereof.

“Powers of Attorney” shall mean the powers of

attorney executed by each of Buyer and Seller sufficient to give each of their

respective agents in Austria the requisite authority to execute and file the

Notarial Deed and Assignment Agreement in Austria on their behalf.

“Subsidiary” means, with respect to any

Person, any entity of which securities or other ownership interests having

ordinary voting power to elect a majority of the board of directors or other

persons performing similar functions are at the time directly or indirectly

owned by such Person.

“Third Party

Research” means all research reports, market research, “sell side”

research, and other investment related research information (including the

related analyses, statistical and economic data) generated by third parties or

entities in which Alliance owns an equity interest (including, but not limited

to, Alliance Capital’s non-wholly owned Subsidiaries and any entity structured

as a joint venture or partnership in which Alliance Capital has an equity

interest) for the benefit or use of Alliance Capital or any of its

Subsidiaries, but excluding any of the foregoing used by Alliance Capital or

any of its Subsidiaries to evaluate investments to be made solely for its own

account and not otherwise made available to clients of Alliance Capital or its

Subsidiaries.

 

3

 

“Williams Group” means,

collectively, Dave H. Williams, Reba W. Williams, their lawful heirs and/or

trust(s) established primarily for the benefit of Mr. and/or Mrs. Williams

and/or members of their family.

(b)   Each of the following terms is defined in the

Section set forth opposite such term:

 

	

  Term

  	

   

  	

  Section

  	

   

  
	

  Alliance Information

  	

   

  	

  5.03

  	

   

  
	

  Arbitration Notice

  	

   

  	

  9.06

  	

   

  
	

  ATS

  	

   

  	

  Recitals

  	

   

  
	

  BankAustria

  	

   

  	

  2.02

  	

   

  
	

  Claim

  	

   

  	

  8.03

  	

   

  
	

  Closing

  	

   

  	

  2.02

  	

   

  
	

  Concurrent Purchase

  	

   

  	

  Recitals

  	

   

  
	

  Damages

  	

   

  	

  8.02

  	

   

  
	

  Indemnified Party

  	

   

  	

  8.03

  	

   

  
	

  Indemnifying Party

  	

   

  	

  8.03

  	

   

  
	

  Joint Venture

  	

   

  	

  Recitals

  	

   

  
	

  Non-Compete

  	

   

  	

  2.02

  	

   

  
	

  Partnership Agreement

  	

   

  	

  6.04

  	

   

  
	

  Potential Contributor

  	

   

  	

  8.05

  	

   

  
	

  Purchase Price

  	

   

  	

  2.01

  	

   

  
	

  Releasing Party

  	

   

  	

  5.02

  	

   

  
	

  Rules

  	

   

  	

  9.06

  	

   

  
	

  Share

  	

   

  	

  2.01

  	

   

  
	

  Third Party Claim

  	

   

  	

  8.03

  	

   

  
	

  Transfer Taxes

  	

   

  	

  2.02

  	

   

  

ARTICLE

2

PURCHASE AND SALE

Section

2.01.  Purchase and Sale.  Upon the terms and subject to the conditions

of this Agreement, Seller agrees to sell to Buyer, and Buyer agrees to purchase

from Seller, Seller’s entire participation (Geschäftsanteil) in the share capital of

the Joint Venture, corresponding to a share (Stammeinlage) of nominal

value ATS 2,040,000 (the “Share”). 

The purchase price for the Share (the “Purchase Price”) is

$2,500,000 (two million and five hundred thousand United States dollars) in

cash.  The Purchase Price shall be paid

as provided in Section 2.02.

 

4

 

Section 2.02.  Closing.  (a) The

closing (the “Closing”) of the purchase and sale of the Share hereunder

shall take place at the offices of Davis Polk & Wardwell, 450 Lexington

Avenue, New York, New York, or such other place as Buyer and Seller may agree,

simultaneously with the execution and delivery of this Agreement.

(b)   At the Closing:

(i)    Buyer shall cause to be

delivered to Seller the Purchase Price in immediately available funds by wire

transfer to an account of Seller with a bank previously designated by Seller;

(ii)   The Notarial Deed and

Assignment Agreement shall be executed and filed in Austria by the agents

designated by each of Buyer and Seller pursuant to the Powers of Attorney;

(iii)  Buyer shall deliver to

Seller a certificate or certificates (A) signed by the Joint Venture, CA IB (or

its successor) and BankAustria Aktiengesellschaft (“BankAustria”) acknowledging

that Seller’s obligations under Article 10 (Non-Competition/Exclusivity

Covenant) of the Stock Purchase Agreement dated as of March 3, 1998 among the

Joint Venture, CA, IB, Bank Austria and Seller (the “Non-Compete”) are no longer

in effect, (B) signed by Capital Invest acknowledging that its right of first

refusal under Section 11 of the articles of association of the Joint Venture is

no longer in effect and (C) signed by CAIB acknowledging that its right to

purchase 1% of the Share pursuant to a Stockholder Option Agreement dated

August 26, 1998 between Seller and CAIB is no longer in effect;

(iv)  Seller shall deliver to

Buyer a certificate signed by Seller (A) acknowledging that the obligations of

CA IB, Bank Austria and the Joint Venture under the Non-Compete are no longer

in effect and (B) acknowledging that its right of first refusal under Section

11 of the articles of association of the Joint Venture is no longer in effect;

and

(v)   Seller will deliver to Buyer

the resignation and general release in favor of the Joint Venture (in form and

substance satisfactory to Buyer) of each of Robert Joseph and Norman Bergel,

effective as of the Closing, from their position with the Joint Venture; provided

that any such release shall specifically exclude any present or future claim

Mr. Joseph or Mr. Bergel (as applicable) may have against the Joint Venture for

indemnification related to third party claims arising out or related to his

service as a director or representative of the Joint Venture.

 

5

 

(c)   All transfer, documentary, sales, use, stamp,

registration, value added and other such taxes and fees (including any

penalties and interest) incurred in connection with transactions contemplated

by this Agreement (including any real property transfer tax and any similar

tax) (“Transfer

Taxes”) and any expenses in connection with the filing of necessary

tax returns and other documentation with respect to such taxes shall be borne

equally by Buyer and Seller.  Seller and

Buyer shall cooperate in the filing of all necessary tax returns and other

documentation with respect to all such taxes and fees.

ARTICLE

3

REPRESENTATIONS AND WARRANTIES OF SELLER

Seller represents and warrants to Buyer as of the

date hereof that:

Section 3.01.  Corporate Existence and Power.  Seller is a corporation duly incorporated, validly existing and

in good standing under the laws of the State of Delaware and has all requisite

powers and all material governmental licenses, authorizations, permits,

consents and approvals required to carry on its business as now conducted.

Section 3.02.  Corporate Authorization. 

The execution, delivery and performance by Seller of this Agreement and

the Notarial Deed and Assignment Agreement and the consummation by Seller of

the transactions contemplated hereby and thereby are within the corporate

powers of Seller and have been duly authorized by all necessary corporate

action on the part of Seller.  This

Agreement constitutes and, when executed and delivered in accordance with its

terms, the Notarial Deed and Assignment Agreement will constitute, a valid and

binding agreement of Seller, enforceable in accordance with its terms.

Section 3.03.  Governmental Authorization. 

The execution, delivery and performance by Seller of this Agreement and

the Notarial Deed and Assignment Agreement and the consummation by Seller of

the transactions contemplated hereby and thereby, require no material action by

or in respect of, or material filing with, any governmental body, agency or

official.

Section

3.04.  Non-contravention. The

execution, delivery and performance by Seller of this Agreement and the

Notarial Deed and Assignment Agreement and the consummation of the transactions

contemplated hereby and thereby do not and will not (i) violate the constituent

documents of Seller, (ii) violate any law, rule, regulation, judgment,

injunction, order or decree applicable to Seller, (iii) require any consent or

other action by any Person under, constitute a default under, or give rise to

any right of termination, cancellation or acceleration of any right or

obligation of Seller or to a loss of any benefit to which Seller is entitled

under any provision of any agreement or other instrument 

 

6

 

binding upon Seller or (iv) result in the

creation or imposition of any material Lien on any asset of Seller.

 

Section 3.05.  Ownership of Shares. 

Seller is the record and beneficial owner of the Share, which, to the

knowledge of Seller, constitutes 51% of the entire authorized and outstanding

share capital of the Joint Venture, free and clear of any Lien, and will

transfer and deliver to Buyer at the Closing valid title to the Share, free and

clear of any Lien.  Seller has not sold,

assigned or transferred any portion of the Share, nor is there any outstanding

subscriptions, options, warrants, calls, puts, contracts, demands, commitments,

rights of first refusal or other arrangements or agreements with respect to the

Share.

Section 3.06.  Litigation. There is no action, suit, investigation or

proceeding pending against, or to the knowledge of Seller threatened against or

affecting, Seller or any of its officers or directors before any court or

arbitrator or any governmental body, agency or official which in any manner

challenges or seeks to prevent, enjoin, alter or materially delay the

transactions contemplated by this Agreement or the Notarial Deed and Assignment

Agreement.

Section 3.07.  Finders’ Fees.  There

is no investment banker, broker, finder or other intermediary which has been

retained by or is authorized to act on behalf of Seller that might be entitled

to any fee or commission from Buyer or the Joint Venture in connection with the

transactions contemplated by this Agreement or the Notarial Deed and Assignment

Agreement.

Section 3.08. 

Inspections; No Other Representations. 

Except expressly as set forth in this Agreement, Seller has not relied

on any representations or warranties of Buyer to make its decision with respect

to the execution, delivery and performance of this Agreement and the Notarial

Deed and Assignment Agreement.

ARTICLE

4

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents and warrants to Seller as of the

date that:

Section 4.01.  Corporate Existence and Power.  Buyer is a Gesellschaft mit beschrankter Haftung duly

incorporated, validly existing and in good standing under the laws of Austria

and has all requisite powers and all material governmental licenses,

authorizations, permits, consents and approvals required to carry on its

business as now conducted.

Section

4.02.  Corporate Authorization.  The execution, delivery and performance by

Buyer of this Agreement and the Notarial Deed and Assignment 

 

7

 

Agreement

and the consummation by Buyer of the transactions contemplated hereby and

thereby are within the corporate powers of Buyer and have been duly authorized

by all necessary corporate action on the part of Buyer.  This Agreement constitutes and, when

executed and delivered in accordance with its terms, the Notarial Deed and

Assignment Agreement will constitute, a valid and binding agreement of Buyer,

enforceable in accordance with its terms.

Section 4.03.  Governmental Authorization.  The execution, delivery and performance by

Buyer of this Agreement and the Notarial Deed and Assignment Agreement and the

consummation by Buyer of the transactions contemplated hereby and thereby

require no material action by or in respect of, or material filing with, any

governmental body, agency or official.

Section 4.04.  Non-contravention. 

The execution, delivery and performance by Buyer of this Agreement and

the Notarial Deed and Assignment Agreement and the consummation of the

transactions contemplated hereby and thereby do not and will not (i) violate

the certificate of incorporation or bylaws of Buyer, (ii) violate any

applicable law, rule, regulation, judgment, injunction, order or decree,

(iii)  require any consent or other

action by any Person under, constitute a default under, or give rise to any

right of termination, cancellation or acceleration of any right or obligation

of Buyer or to a loss of any benefit to which Buyer is entitled under any

provision of any agreement or other instrument binding upon Buyer or (iv)

result in the creation or imposition of any material Lien on any asset of

Buyer.

Section 4.05.  Litigation.  There is

no action, suit, investigation or proceeding pending against, or to the

knowledge of Buyer threatened against or affecting, Buyer or any of its

officers or directors before any court or arbitrator or any governmental body,

agency or official which in any manner challenges or seeks to prevent, enjoin,

alter or materially delay the transactions contemplated by this Agreement or

the Notarial Deed and Assignment Agreement.

Section 4.06.  Finders’ Fees.  There

is no investment banker, broker, finder or other intermediary which has been

retained by or is authorized to act on behalf of Buyer that might be entitled

to any fee or commission from Seller or any of its Affiliates in connection

with the transactions contemplated by this Agreement or the Notarial Deed and

Assignment Agreement.

Section

4.07.  Purchase for Investment.

Buyer is purchasing the Share for investment for its own account and not with a

view to, or for sale in connection with, any distribution thereof.  Buyer (either alone or together with its

advisors) has sufficient knowledge and experience in financial and business

matters so as to be capable of evaluating the merits and risks of its

investment in the Share and is capable of bearing the economic risks of such

investment. To the extent necessary 

 

8

 

or

appropriate, Buyer has engaged expert advisors, experienced in the evaluation

and purchase of companies such as the Joint Venture as contemplated hereunder.

Section 4.08.  Inspections; No Other Representations.  (a) Certain of the directors and

shareholders, direct or indirect, of Buyer have been, and were, immediately

prior to the date hereof, employed by Seller and its Affiliates and have been

actively involved in the management of the Joint Venture.  Accordingly, Buyer (i) is familiar with the

Joint Venture and its business, (ii) has at all times had complete and open

access to the key employees, documents and facilities of the Joint Venture and

(iii) has conducted such investigation as it has deemed necessary to enable it

to make an informed decision with respect to the execution, delivery and

performance of this Agreement and the Notarial Deed and Assignment Agreement.

(b)   Buyer agrees to accept the Share and the

Joint Venture in the condition they are in on the Closing Date based upon its

own inspection, examination and determination with respect thereto as to all

matters, and without reliance upon any express or implied representations or

warranties of any nature made by or on behalf of or imputed to Seller, except

as expressly set forth in this Agreement or the Notarial Deed and Assignment

Agreement.  Without limiting the

generality of the foregoing, Buyer acknowledges that Seller makes no

representation or warranty with respect to (i) any projections, estimates or

budgets delivered to or made available to Buyer, its shareholders, directors or

officers of future revenues, future results of operations (or any component

thereof), future cash flows or future financial condition (or any component

thereof) of the Joint Venture or the future business and operations of the

Joint Venture or (ii) any other information or documents made available to

Buyer or its counsel, accountants or advisors with respect to the Joint Venture

or its business or operations, except, in each case, as expressly set forth in

this Agreement or the Notarial Deed and Assignment Agreement.

ARTICLE

5

COVENANTS OF SELLER

Seller agrees that:

Section

5.01.  Confidentiality.  Seller and its Subsidiaries will hold, and

will use their best efforts to cause their respective officers, directors,

employees, accountants, counsel, consultants, advisors, agents and Affiliates

to hold, in confidence, unless compelled to disclose by judicial or

administrative process or by other requirements of law, all confidential

documents and information concerning the Joint Venture and Buyer furnished or

otherwise made available to Seller or its Subsidiaries on or prior to the

Closing Date, except to the extent such information can be shown to have been

(i) in the public domain through no fault 

 

9

 

of

Seller or its Subsidiaries or Affiliates (other than Affiliates of Seller that

are, after the date hereof, also Affiliates of the Joint Venture) or (ii)

lawfully acquired by Seller after the Closing Date from sources other than

Buyer or the Joint Venture; provided that Seller may disclose such

information to its officers, directors, employees, accountants, counsel,

consultants, advisors, agents and Affiliates in connection with any matter

relating to this Agreement or the Notarial Deed and Assignment Agreement so

long as such Persons are informed by Seller of the confidential nature of such

information and are directed by Seller to treat such information

confidentially.  Seller shall be

responsible for any failure to treat such information confidentially by such

Persons.  The obligation of Seller and

its Subsidiaries to hold any such information in confidence shall be satisfied

if they exercise the same care with respect to such information as they would

take to preserve the confidentiality of their own similar information.

Section 5.02.  Contribution of Loans. 

Effective as of the Closing Date and in partial consideration of the

Joint Venture’s agreement to comply with the provisions of this Agreement

applicable to it, Seller for itself and on behalf of all of its Subsidiaries

(each, a “Releasing

Party”) hereby releases the Joint Venture from any and all

indebtedness, liabilities and obligations with respect to the Joint Venture in

respect of all funds that have been previously loaned and/or advanced to the

Joint Venture by any of the Releasing Parties, such amounts to be treated by

all parties as having been contributed to the capital of the Joint Venture by

the Releasing Parties.  As of the date

hereof, such outstanding balance is the equivalent in Austrian Schillings of

$210,000 (two hundred and ten thousand United States dollars).  Seller agrees that the Joint Venture shall

be entitled to the benefits of the provisions of this Section 5.02 with the

right to enforce the terms hereof.

Section

5.03.  Use of Alliance Information.  (a) For the period beginning on the Closing

Date and ending on the earliest to occur of (i) the fifth anniversary thereof,

(ii) the date on which a Change of Control shall have occurred and (iii) the

date on which the Joint Venture or any of its Affiliates engages (whether

directly or indirectly, as a principal or for its own account or solely or

jointly with others, or as a stockholder in any corporation or joint stock

association (other than where the Joint Venture or any of its Affiliates

beneficially owns, as a passive investor, less than 5% of the equity or voting

interest in such corporation or joint stock association)) in a Competing

Business, Seller agrees, subject to the provisions of clause (b) below, to (A)

provide the Joint Venture and its Affiliates with full access to the Alliance

Research and to the Third Party Research and (B) provide the employees of the

Joint Venture and its Affiliates reasonable access, from time to time by way of

telephone conversations, to analysts of Alliance Capital; provided that in the case of

clause (B) above, any such access shall not unreasonably interfere with the

performance by any such analysts’ of the tasks, duties and responsibilities

assigned to them by Alliance Capital and its Affiliates.  

 

10

 

The

Joint Venture and its Affiliates shall have the right to use the information

provided to it by Alliance Capital pursuant to this Section 5.03 (the “Alliance

Information”) internally and in making any investment decisions,

provided that such use complies with (i) all regulatory and legal requirements

applicable to the Joint Venture and (ii) all contractual and licensing restrictions

applicable to the use of the Third Party Research.

(b)   The Alliance Research shall be made available

to the Joint Venture and its Affiliates on, and in accordance with, the most

favorable terms offered by Alliance Capital to any of its clients.  The Third Party Research shall be made

available to the Joint Venture and its Affiliates in accordance with the legal

and contractual provisions applicable to such Third Party Research.  The foregoing notwithstanding, Seller shall

have no obligation to provide the Joint Venture or any of its Affiliates access

to any Third Party Research if the granting of such access would, in the

reasonable judgment of Seller, (i) violate any legal or contractual obligation

of Seller or its Affiliates to any third party or (ii) require Seller or any of

its Affiliates to pay additional or incremental fees or other amounts to any

third party in connection with the use, dissemination or licensing of such

Third Party Research; provided that, in the case of clause (i)

above, Seller agrees to use commercially reasonable efforts to obtain the

consent of the relevant third party for the dissemination of such Third Party

Research to the Joint Venture and its Affiliates and, in the case of clause

(ii) above, if Buyer or the Joint Venture is notified in advance of the amount

of any such incremental fees or other amounts and agrees to pay such amount,

Seller shall provide the Joint Venture with access to the relevant Third Party

Research.  Any amounts which Buyer or

the Joint Venture agrees to pay pursuant to this Section 5.03(b), shall be

payable within 30 Business Days after demand for payment by Alliance Capital.

(c)   Nothing contained in this Section 5.03 shall

be construed or interpreted as creating an obligation on Alliance Capital to

create or procure any Alliance Research, Third Party Research or other

information for the benefit of the Joint Venture or any of its Affiliates, nor

shall Buyer, the Joint Venture or any of its Affiliates have any right to

direct the creation, or determine the substance or frequency, of any Alliance

Information.  As of any date, Seller’s

obligations under this Section 5.03 shall be satisfied if it provides the Joint

Venture and its Affiliates access to all of the Alliance Information that

exists as of such date in accordance with the terms and conditions of this

Section 5.03.

(d)   Buyer

understands that the Alliance Information is intended solely for the internal

use and benefit of the Joint Venture and its Affiliates and may not be

disseminated, sold or otherwise provided to any third parties by the Joint

Venture or any of its Affiliates.  Buyer

acknowledges that Seller makes no representation or warranty with respect to

the Alliance Information and any use of or reliance upon such Alliance

Information by Buyer, the Joint Venture or any of its Affiliates shall be at

their own risk.  Without limiting the

generality the 

 

11

 

foregoing, Buyer hereby

waives, and shall cause the Joint Venture and its Affiliates to waive, any and

all actions or claims that it may have against Alliance Capital or its

Affiliates relating to or arising out of the Alliance Information, or the use

thereof by Buyer, the Joint Venture or its Affiliates, including any claim or

action based upon any alleged negligence, gross negligence or strict liability

of Alliance Capital or any of its Affiliates.

(e)   Buyer will hold, will cause its Affiliates to

hold and will use their best efforts to cause their respective officers,

directors, employees, accountants, counsel, consultants, advisors and agents to

hold, in confidence, unless compelled to disclose by judicial or administrative

process or by other requirements of law, the Alliance Information made

available to the Joint Venture and its Affiliates by Seller pursuant to this

Section 5.03, except to the extent that such information can be shown to have

been (i) previously known on a nonconfidential basis by Buyer or any of its

Affiliates, (ii) in the public domain through no fault of Buyer or (iii) later

lawfully acquired by Buyer or any of its Affiliates from sources other than

Alliance Capital or its Subsidiaries; provided that Buyer may disclose such

information to its officers, directors, employees, accountants, counsel,

consultants, advisors and agents for use as contemplated by this Section 5.03,

so long as such Persons are informed by Buyer of the confidential nature of

such information and are directed by Buyer to treat such information

confidentially.  Buyer shall be

responsible for any failure to treat such information confidentially by such

Persons.  The obligation of Buyer to

hold, and to cause its Affiliates to hold, any such information in confidence

shall be satisfied if they exercise the same care with respect to such

information as they would take to preserve the confidentiality of their own

similar information.

Section 5.04. 

Maintenance Of Insurance.  Seller agrees,

for the period beginning on the Closing Date and ending on the earliest to

occur of (i) six months thereafter, (ii) the date on which a Change of Control

shall have occurred and (iii) the date on which the Joint Venture notifies

Seller that such coverage is no longer required, to maintain for the benefit of

the Joint Venture, errors and omissions insurance covering the periods ending

on or prior to the Closing Date on terms with respect to coverage and amount no

less favorable than those of such policy in effect immediately prior to the

date hereof.  The allocable cost of such

insurance coverage shall be borne by the Joint Venture.

Section

5.05.  Non-solicitation.  For one year after the Closing Date, Seller agrees,

and agrees to cause each of its Subsidiaries, not to solicit for employment or

as a consultant or hire or retain as a consultant any employee  (other than through public advertisement) of

Buyer or the Joint Venture or any of their respective Affiliates or in any way

induce any such employee into terminating his or her employment, except (i)

with the prior written consent of Buyer or the Joint Venture, respectively or

(ii) for employees that have been terminated by Buyer or the Joint Venture,

respectively.

 

12

 

ARTICLE

6

COVENANTS OF BUYER

Buyer agrees that:

Section 6.01.  Access.  Buyer will

cause the Joint Venture and its Subsidiaries, on and after the Closing Date, to

(a) afford promptly to Seller and its agents reasonable access upon prior

written notice and during normal business hours to their books of account,

financial, tax and other records, employees and auditors (and furnish financial

and other data) to the extent reasonably necessary to permit Seller to respond

to, defend, or determine the facts surrounding any claim, action, proceeding,

investigation or tax matter directed at or brought against Seller by any third

party or taxing authority relating to the activities or business of the Joint

Venture and its Subsidiaries as conducted prior to the Closing Date; provided

that any such access by Seller shall not unreasonably interfere with the

conduct of the business of the Joint Venture or its Subsidiaries and (b)

instruct the employees of the Joint Venture and its Subsidiaries to cooperate

with the reasonable requests of Seller, its employees and its independent

accountants in connection with the foregoing. 

Seller shall treat all information provided to it pursuant to this

Section 6.01 as strictly confidential and shall comply with the terms of

Section 5.01 with respect to such information.

Section 6.02.  Trademarks; Tradenames. 

(a) Except as set forth in Section 6.02(b), after the Closing, Buyer

shall not, and shall not permit the Joint Venture (or any of its Affiliates)

to, use any trademarks or tradenames owned or used by Seller on the date hereof

(or any derivations thereof), including without limitation, the name “Alliance

Capital”.

(b)   For

the period beginning on the Closing Date and ending on the earliest to occur of

(i) the fifth anniversary thereof, (ii) the date on which a Change of Control

shall have occurred and (iii) the date on which the Joint Venture or any of its

Affiliates engages (whether directly or indirectly, as a principal or for its

own account or solely or jointly with others, or as a stockholder in any

corporation or joint stock association (other than where the Joint Venture or

any of its Affiliates beneficially owns, as a passive investor, less than 5% of

the equity or voting interest in such corporation or joint stock association))

in a Competing Business, the Joint Venture and its Affiliates shall have the

right to state in its marketing materials, advertisement or other materials

provided or distributed to clients, potential clients, portfolio companies or

potential portfolio companies of the Joint Venture or its Affiliates that it is

“a research associate of Alliance Capital” or a “research affiliate of Alliance

Capital” and shall have the right to include in any such materials a

description of Alliance Capital; provided, that Alliance Capital has

previously reviewed and approved of such description of Alliance Capital and

the use thereof, which approval shall not be unreasonably withheld; and provided

further

that if such description is delivered by the Joint 

 

13

 

Venture to the attention of

each of the General Counsel and the Chief Executive Officer of Alliance Capital

and neither such individuals respond to the Joint Venture within 10 days after

receipt, the consent of Alliance Capital shall be deemed to have been received

for the purposes of this Section 6.02(b). 

For the avoidance of doubt, it shall not be unreasonable for Alliance

Capital to withhold its approval if in its reasonable judgment any such

statements, or the use thereof in any materials, would adversely affect any

relationship that Alliance Capital or its Subsidiaries has with a third party

or would otherwise have an adverse effect on the business or affairs of

Alliance Capital or its Subsidiaries.

(c)   The foregoing notwithstanding, (i) neither

the Joint Venture nor any of its Affiliates may publicly display or use the name

“Alliance Capital” (or any derivation thereof) in Germany or in Austria and

(ii) it shall be the sole responsibility of the Joint Venture and its

Affiliates to ensure that the use by any of them of the name “Alliance Capital”

as contemplated by Section 6.02(b) strictly complies, and is in accordance,

with all applicable regulatory and legal requirements (including requirements

under all applicable unfair competition laws) relating to (A) the Joint Venture

or the applicable Affiliate and (B) Alliance Capital or its Subsidiaries.  No consent granted by Alliance Capital for

the use of the name “Alliance Capital” shall in any way relieve the Joint

Venture or its Affiliates of their obligations under this Section 6.02(c); provided that,

the foregoing notwithstanding, (x) the Joint Venture and its Affiliates shall

not be deemed to have violated the provisions of Section 6.02(c)(i) above

solely because they state that they are “a research associate of Alliance

Capital” or a “research affiliate of Alliance Capital” on any of their business

cards or letterhead or in any private meetings that they may have with

institutional investors and (y) the Joint Venture and its Affiliates shall be

deemed to be in compliance with the provisions of Section 6.02(c)(ii)(B) above

if, in any circumstance and in any jurisdiction, it uses and displays the name

“Alliance Capital” strictly in accordance with the provisions of Section

6.02(b) and in a manner that is substantially similar to the manner in which

Alliance Capital or its Subsidiaries use the name “Alliance Capital” in such

circumstance and in such jurisdiction.

Section

6.03.  Payment Of Fees.  As consideration to Seller for affording the Joint

Venture and its Affiliates access to the Alliance Information pursuant to

Section 5.03, and for granting the Joint Venture and its Affiliates certain

rights of association with Alliance Capital pursuant to Section 6.02(b), the

Joint Venture hereby agrees to pay, and Buyer agrees to cause the Joint Venture

to pay, to Seller a fee in an amount equal to (A) 51% of the portion of (i) the

net cash proceeds received by the Joint Venture and its Subsidiaries as a

“carry interest” fee under its Investment Management Agreement dated May 9,

1997 with the Romanian Investment Fund Limited in respect of such fund’s

investment in Titan Mar minus (ii) any portion of such fee that is

payable to the employees of the Joint Venture and its Subsidiaries pursuant to

the agreements that exist on the date hereof and, 

 

14

 

in

the aggregate, does not exceed 50% of the total “carry” interest received by

the Joint Venture less (B) any and all value added, withholding and similar

taxes that would be imposed on the Joint Venture as a result of a payment to

Seller pursuant to this Section 6.03. 

Such payment shall be made to Seller in cash within thirty days of the

earlier to occur of (x) the date on which the amount of such “carry interest”

fee has been finally determined by the Joint Venture and (y) the date on which

any portion of such “carry interest” fee (or any estimate thereof) has been

paid to any employee of the Joint Venture or its Subsidiaries.

Section 6.04. 

Release From Partnership Agreement. 

The Joint Venture and Seller each agree to cooperate with one another

and to use its commercially reasonable efforts (but without any payment of

money) to (i) effect the transfer of 

Albion Alliance LLC’s interest in Albion Alliance EFM Limited to the

Joint Venture and (ii) procure from the required parties to the Amended and

Restated Agreement of Limited Partnership of the Czech Direct Equity Fund I

L.P. dated January 16, 1998 (the “Partnership Agreement”) an unconditional

release of Seller from its obligations under Section 5.11 (Exclusivity) of the

Partnership Agreement, in each case, as promptly as possible after the Closing

Date.

ARTICLE

7

COVENANTS OF THE PARTIES

Each party hereto agrees that:

Section 7.01.  Reasonable Best Efforts; Further Assurances.  (a) Subject to the terms and conditions of

this Agreement and the Notarial Deed and Assignment Agreement, each party will

use its reasonable best efforts to take, or cause to be taken, all actions and

to do, or cause to be done, all things necessary, proper or desirable under

applicable laws and regulations to consummate the transactions contemplated

hereby and thereby.

(b)   The parties agree after the Closing to use

reasonable commercial efforts to execute and deliver, or to cause to be

executed and deliver such other documents, certificates, agreements and other

writings and to take such other actions as may be necessary or desirable in

order to consummate or implement expeditiously the transactions contemplated by

this Agreement.

Section

7.02.  Public Announcements.  Except as may be required by applicable law

or any listing agreement with any national securities exchange, neither of the

parties to this Agreement shall issue any press release or make any other

public statement, in each case relating to, connected with or arising out of

the consummation of the transactions contemplated by this Agreement or the

Notarial Deed and Assignment Agreement 

or the terms of such transactions 

 

15

 

without

obtaining the prior written approval of the other party, and the parties shall

cooperate as to the timing and contents of any such release or statement.

Section 7.03.  Release.  Effective

as of the Closing Date and in consideration for the mutual agreements contained

herein, the Joint Venture, on the one hand, and Seller, on the other hand,

hereby waive, release and discharge each other from any and all liabilities and

obligations (of any kind or nature whatsoever (including without limitation, in

respect of rights of contribution or indemnification), in each case whether

absolute or contingent, liquidated or unliquidated, and whether arising under

the Joint Venture Documents or any other agreement or otherwise at law or

equity) arising from or in connection with or related to the business or

affairs of the Joint Venture and its Subsidiaries.  Effective as of the Closing Date, neither Seller nor any of its

Affiliates shall have any right, title or interest in or to the Joint Venture

or any of its Subsidiaries or any of the capital, profits, assets, business or

operations of the Joint Venture or any of its Subsidiaries or any right under

the Joint Venture Documents and the terms of the Joint Venture Documents or any

other agreement shall be modified accordingly. 

The foregoing notwithstanding, the provisions of this Section 7.03 shall

not release any party from its respective obligations under this Agreement.

Section 7.04.  Termination of Agreements and Arrangements.  In partial consideration of the provisions

set forth in Section 5.02 and except as set forth in Section 5.04, effective as

of the Closing Date, (a) all agreements and arrangements between the Seller and

the Joint Venture shall be terminated without further action by either party

and thereafter neither party thereto shall have any further rights or

obligations thereunder and (b) coverage of the Joint Venture and its

Subsidiaries under all insurance policies of Seller or its Affiliates shall

cease.

Section

7.05.  Cooperation on Tax Matters.   (a) 

Seller and Buyer shall cooperate fully, as and to the extent reasonably

requested by the other party, in connection with the preparation and filing of

any return for income or other taxes of or in connection with the Joint Venture

or the transactions contemplated hereby and any audit, litigation or other

proceeding with respect to such taxes. 

Such cooperation shall include the retention and (upon the other party’s

request) the provision of records and information which are reasonably relevant

to any such audit, litigation or other proceeding and making employees

available on a mutually convenient basis to provide additional information and

explanation of any material provided hereunder.  The Seller and Buyer agree (i) to retain all books and records

with respect to tax matters pertinent to the Joint Venture relating to any

taxable period ending before the Closing Date and the taxable period during

which the Closing Date falls for a period of three years after the Closing Date

and (ii) to give the other party reasonable written notice prior to

transferring, destroying or discarding any such books and records and, if the

other 

 

16

 

party

so requests, the Seller or Buyer, as the case may be, shall allow the other

party to take possession of such books and records at the other party’s

expense.

(b)           Seller

and Buyer further agree, upon request (and at the requesting party’s expense),

to use all reasonable efforts to obtain any certificate or other document from

any governmental authority or other Person as may be necessary to mitigate,

reduce or eliminate any taxes that could be imposed (including but not limited

to with respect to the transactions contemplated hereby).

ARTICLE

8

SURVIVAL; INDEMNIFICATION

Section 8.01.  Survival.  The

representations and warranties of the parties hereto contained in this

Agreement shall survive the Closing until the first anniversary of the Closing

Date; provided

that the representations and warranties contained in Section 3.02, 3.05, 3.07,

3.08, 4.02, 4.06, 4.07 and 4.08 shall survive indefinitely.  The covenants and agreements contained in

this Agreement shall survive in accordance with their terms (or if no survival

period is specified, until the end of the applicable statute of limitations

(after giving effect to any waiver, mitigation or extension thereof)).  Notwithstanding the preceding sentences of

this Section 8.01, any covenant, agreement, representation or warranty in

respect of which indemnity may be sought under this Agreement shall survive the

time at which it would otherwise terminate pursuant to the preceding sentences,

if notice of the inaccuracy or breach thereof giving rise to such right of

indemnity shall specify with reasonable detail such inaccuracy or breach and

shall have been given to the party against whom such indemnity may be sought

prior to such time.

Section 8.02.  Indemnification.  (a)

Seller hereby indemnifies Buyer and its Affiliates against and agrees to hold

it harmless from any and all damage, loss, liability and expense (including,

without limitation, reasonable expenses of investigation and reasonable

attorneys’ fees and expenses in connection with any action, suit or proceeding

(whether between the parties to this agreement or involving a third party)) (“Damages”)

incurred or suffered by Buyer or its Affiliates arising out of any (i) misrepresentation

or breach of any warranty or (ii)  any

breach of  any covenant or agreement, in

each case, made or to be performed by Seller pursuant to this Agreement regardless

of whether such Damages arise as a result of the negligence, gross negligence,

strict liability or any other liability under any theory of law or equity of

Buyer or its Affiliates; provided that Seller’s maximum liability

relating to the matters specified in clause (i) above shall not exceed the

aggregate amount of the Purchase Price.

(b)   Each

of Buyer and, following the Closing, the Joint Venture and its Subsidiaries (on

a joint and several basis with Buyer) (collectively, the “Buyer Parties”) hereby

indemnifies Seller and its Affiliates against and agrees to hold 

 

17

 

each of them harmless from

any and all Damages incurred or suffered by Seller or any of its Affiliates

arising out of (i) (A) any misrepresentation or breach of any warranty or (B)

any breach of any covenant or agreement, in each case, made or to be performed

by Buyer pursuant to this Agreement and (ii) any claim, suit, proceeding,

investigation or other action by a third party and directed at or against

Seller or any of its Affiliates to the extent relating to or arising out of (A)

the use by Buyer, the Joint Venture or any of its Subsidiaries of any of the

Alliance Information or (B) the use by Buyer, the Joint Venture or any of its

Subsidiaries of the name “Alliance Capital” (or any derivation thereof), in

each case regardless of whether such Damages arise as a result of the

negligence, gross negligence, strict liability or any other liability under any

theory of law or equity of Seller or any of its Affiliates; provided

however, that the Buyer Parties’ maximum aggregate liability

relating to the matters specified in clause (i)(A) above shall not exceed the

aggregate amount of the Purchase Price.

Section 8.03.  Procedures.  (a) The

party seeking indemnification under Section 8.02 (the “Indemnified Party”) agrees to

give prompt notice to the party against whom indemnification is sought (the “Indemnifying

Party”) (i) of the assertion of any claim, or the commencement of

any suit, action or proceeding (each, a “Claim”) in respect of which indemnification

may be sought under such Section or (ii) if the Indemnified Party becomes aware

of any fact, condition or event which is likely to give rise to Damages for

which indemnification may be sought under such Section, and in each case will

provide the Indemnifying Party such information with respect thereto that the

Indemnifying Party may reasonably request. The failure to so notify the

Indemnifying Party shall not relieve the Indemnifying Party of its obligations

hereunder, except to the extent such failure shall have adversely affected the

Indemnifying Party.

(b)   The

Indemnifying Party shall have the right, through counsel of its own choosing

and at its own expense, to reasonably and prudently direct the defense or

settlement of any Claim asserted by any third party (a “Third Party Claim”), other

than any Third Party Claim in which (i) the remedy sought (or likely to be

provided) is equitable relief or other non-monetary damages or (ii) there is a

significant risk that the Indemnifying Party will be unable to satisfy in full

the judgment amount sought (or likely to be provided) or the proposed

settlement amount.  The foregoing

notwithstanding, in any Third Party Claim in which the name “Alliance Capital”

(or any derivation thereof), or the use of such name, is at issue (w) Seller shall

have the right, through counsel reasonably acceptable to Buyer, to reasonably

and prudently direct the defense or settlement of such Third Party Claim, (x)

the fees and expense of such counsel shall be paid by Buyer or the Joint

Venture if and to the extent required by Section 8.02(b), (y) Buyer shall be

entitled to participate in the defense of such Third Party Claim and to employ

separate counsel of its choice for such purpose and (z) Seller shall obtain the

prior written consent of Buyer (which shall not be unreasonably 

 

18

 

withheld or delayed) before

entering into any settlement of such Third Party Claim if the settlement does

not release Buyer or the Joint Venture (as applicable) from all liabilities and

obligations with respect to such Third Party Claim or the settlement imposes

injunctive or other equitable relief against Buyer or the Joint Venture.

(c)   If the Indemnifying Party shall assume the

control of the defense of any Third Party Claim in accordance with the

provisions of this Section 8.03, (x) the Indemnifying Party shall obtain the

prior written consent of the Indemnified Party (which shall not be unreasonably

withheld or delayed) before entering into any settlement of such Third Party Claim

if the settlement does not release the Indemnified Party from all liabilities

and obligations with respect to such Third Party Claim or the settlement

imposes injunctive or other equitable relief against the Indemnified Party and

(y) the Indemnified Party shall be entitled to participate in the defense of

such Third Party Claim and to employ separate counsel of its choice for such

purpose.  If the Indemnified Party

elects to employ separate counsel pursuant to clause (y) above, the fees and

expenses of such separate counsel shall be paid by the Indemnified Party,

unless (i) the Indemnifying Party and such Indemnified Party shall have

mutually agreed in writing to the retention of such counsel or (ii) the named

parties to any Third Party Claim (including any impleaded parties) include the

Indemnifying Party and such Indemnified Party and representation of both

parties by the same counsel would, in the opinion of counsel to such

Indemnified Party, be inappropriate due to actual or potential differing interests

between the Indemnifying Party and such Indemnified Party.  For the avoidance of doubt, the immediately

preceding sentence is not applicable to the employment of counsel by the

Indemnified Party where the Indemnifying Party has no right, or fails to exercise

its right, to direct the defense or settlement of a Third Party Claim.  In such cases, all fees of counsel employed

by the Indemnified Party shall be paid by Indemnifying Party if and to the

extent required by provisions of Section 8.02. 

Upon the assumption of the defense of any Third Party Claim by the

Indemnifying Party, the Indemnified Party shall not pay, or permit to be paid,

any part of any claim or demand arising from such asserted liability unless the

Indemnifying Party consents in writing to such payment.

(d)   If

the Indemnifying Party shall fail promptly to defend such Third Party Claim or

withdraws from such defense, the Indemnified Party shall have the right to

undertake the defense or settlement thereof, at the Indemnifying Party’s expense;

provided

that the Indemnifying Party shall not be liable for any settlement or

compromise of any Third Party Claim made by the Indemnified Party without the

consent of the Indemnifying Party.  If

the Indemnified Party  assumes the

defense of any such Third Party Claim pursuant to this Section and proposes to

forego any appeal with respect thereto, then the Indemnified Party shall give

the Indemnifying Party prompt written notice thereof and the 

 

19

 

Indemnifying Party shall

have the right to assume or reassume the defense of such Third Party Claim.

(e)   Each party shall cooperate, and cause its

Affiliates to cooperate, in the defense or prosecution of any Third Party Claim

and shall furnish or cause to be furnished such records, information and

testimony, and attend such conferences, discovery proceedings, hearings, trials

or appeals, as may be reasonably requested in connection therewith.

Section 8.04.  Calculation of Damages. 

(a) The amount of any Damages payable under Section 8.02 by the

Indemnifying Party shall be net of any amounts recovered or recoverable by the

Indemnified Party under applicable insurance policies.

(b)   The Indemnifying Party shall not be liable

under Section 8.02 for any consequential or punitive Damages or Damages for

lost profits.

(c)   Notwithstanding any other provision of this

Agreement to the contrary, if on the Closing Date the Indemnified Party has

actual knowledge of any information that would cause one or more of the

representations and warranties made by the Indemnifying Party to be inaccurate

as of the date made, the Indemnified Party shall have no right or remedy after

the Closing with respect to such inaccuracy and shall be deemed to have waived

its rights to indemnification in respect thereof.

Section 8.05.  Assignment of Claims. 

If the Indemnified Party receives any payment from the Indemnifying

Party in respect of any Damages pursuant to Section 8.02 and the Indemnified

Party could have recovered all or a part of such Damages from a third party (a

“Potential

Contributor”) based on the underlying Claim asserted against the

Indemnifying Party, the Indemnified Party shall assign such of its rights to

proceed against the Potential Contributor as are necessary to permit the Indemnifying

Party to recover from the Potential Contributor the amount of such payment.

Section

8.06.  Exclusivity.  After the Closing, Section 8.02 will, to the

extent permitted by law, provide the exclusive remedy for any claim hereunder,

misrepresentation, breach of warranty, covenant or other agreement (other than

those contained in Sections 5.01, 5.03, 5.04, 6.01 6.02, 7.02 and 7.05, in each

case as to which the parties agree that the remedy of specific performance or

injunctive relief may be appropriate) or other claim relating to or arising out

of this Agreement or the Notarial Deed and Assignment Agreement, the

transactions contemplated hereby or thereby or the Joint Venture.

 

20

 

ARTICLE

9

MISCELLANEOUS

Section 9.01.  Notices.  All

notices, requests and other communications to any party hereunder shall be in

writing (including facsimile transmission) and shall be given,

if to Buyer, to:

EFM

Holdings GmbH

Palais

Corso

Kärntner-Ring

11-16/6.7.3

A-1010

Vienna

Austria

Attention:  Roland Haas

Fax:

++43-1-51671-600

 

with

a copy to:

 

Golenbock,

Eiseman, Assor & Bell

437

Madison Avenue

40th

Floor

New

York, NY 10022

Attention:  Nathan Assor

Fax:  212-754-0330

 

if

to Seller, to:

 

Alliance Capital Management Corporation

1345 Avenue of the Americas

New York, New York 10105

Attention:  David R. Brewer, Jr.

Fax:  212-969-1334

 

 

with a copy to:

 

Davis Polk & Wardwell

450 Lexington Avenue

New York, New York 10017

Attention:  Phillip R. Mills

Fax:  212-450-4800

 

 

21

 

All

such notices, requests and other communications shall be deemed received on the

date of receipt by the recipient thereof if received prior to 5 p.m. in the

place of receipt and such day is a Business Day in the place of receipt.  Otherwise, any such notice, request or

communication shall be deemed not to have been received until the next

succeeding Business Day in the place of receipt.

Section 9.02.  Amendments and Waivers. 

(a) Any provision of this Agreement may be amended or waived if, but

only if, such amendment or waiver is in writing and is signed, in the case of

an amendment, by each party to this Agreement, or in the case of a waiver, by

the party against whom the waiver is to be effective.

(b)   No failure or delay by any party in

exercising any right, power or privilege hereunder shall operate as a waiver

thereof nor shall any single or partial exercise thereof preclude any other or

further exercise thereof or the exercise of any other right, power or privilege.

Section 9.03.  Expenses.  Except as

otherwise provided in this Agreement, all costs and expenses incurred in

connection with this Agreement shall be paid by the party incurring such cost

or expense.

Section 9.04.  Successors and Assigns. 

The provisions of this Agreement shall be binding upon and inure to the

benefit of the parties hereto and their respective successors and permitted

assigns; provided

that no party may assign, delegate or otherwise transfer any of its rights or

obligations under this Agreement without the consent of the other party hereto.

Section 9.05.  Governing Law.  This

Agreement shall be governed by and construed in accordance with the law of the

State of New York, without regard to the conflict of laws rules of such state.

Section

9.06.  Arbitration.  (a) All disputes, controversies, or claims

arising out of or relating to this Agreement or the Notarial Deed and

Assignment Agreement, or any breach, interpretation of enforcement thereof

shall be resolved by arbitration administered by the  American Arbitration Association under its Commercial Arbitration

Rules then prevailing (the “Rules”). 

Such arbitration shall be held in New York, New York.  Either party may initiate arbitration by

sending written notice of its intention to arbitrate to the other specifying a

description of the dispute and the remedy sought (the “Arbitration Notice”); provided

that in no event may an Arbitration Notice be delivered, or other demand for

arbitration be made, after the date on which the institution of a legal or

equitable proceeding based on such claim, dispute or other matter in question

would be barred by New York law. 

Arbitration shall be by a single arbitrator chosen by the parties; provided

that if the parties fail to agree and approve such single arbitrator within

thirty (30) days after delivery of the Arbitration Notice, 

 

22

 

each

party shall then select an arbitrator and the two arbitrators so selected shall

themselves appoint a third arbitrator. 

The arbitration hearing will commence no later than sixty (60) days

after the arbitrator(s) is selected. 

Expenses of the arbitrator(s) shall be borne by the parties in

accordance with the Rules.  

Notwithstanding the foregoing, the arbitrator(s) shall not be authorized

to award any punitive damages with respect to any such dispute, controversy or

claim, nor may either party seek any such damages relating to any matter

arising out of, or relating to, this Agreement, the Notarial Deed and Assignment

Agreement or the parties’ performance hereunder and thereunder in any other

forum.

(b)   The decision of the arbitrator(s) shall be

final and binding on the parties, their successors and permitted assigns.  Judgment on the award rendered by the

arbitrator(s) may be entered in any court having jurisdiction, and then shall

be enforceable against the parties in accordance with the 1958 Convention on

the Recognition and Enforcement of Foreign Arbitral Awards, as amended.  The parties intend that this agreement to

arbitrate be irrevocable.

Section 9.07.  Counterparts; Third Party Beneficiaries.  This Agreement may be signed in two

counterparts, each of which shall be an original, with the same effect as if

the signatures thereto and hereto were upon the same instrument.  Other than as set forth in Section 5.02, no

provision of this Agreement is intended to confer upon any Person other than

the parties hereto any rights or remedies hereunder.

Section 9.08.  Entire Agreement. 

This Agreement and the Notarial Deed and Assignment Agreement including

the exhibits, annexes and schedules hereto and thereto, constitute the entire

agreement between the parties with respect to the subject matter hereof and

thereof and supersede all prior agreements and understandings, both oral and

written, between the parties with respect hereto and thereto.

Section 9.09.  Severability.  If any

provision of this Agreement or any Notarial Deed and Assignment Agreement  shall be invalid, illegal or unenforceable

in any respect, the validity, legality or enforceability of the other

provisions hereof or thereof shall not be affected or impaired thereby.  Upon such a declaration, the parties shall

modify this Agreement or the relevant Notarial Deed and Assignment

Agreement  so as to effect the original

intent of the parties as closely as possible in an acceptable manner so that

the transactions contemplated hereby and thereby are consummated as originally

contemplated to the fullest extent possible.

Section

9.10.  Captions.  The captions herein are included for

convenience of reference only and shall be ignored in the construction or

interpretation hereof.

 

23

 

IN WITNESS WHEREOF, the parties hereto have caused

this Agreement to be duly executed by their respective authorized officers as

of the day and year first above written.

	

   

  	

  ALLIANCE CAPITAL MANAGEMENT CORPORATION OF DELAWARE

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Robert H. Joseph, Jr.

  
	

   

  	

   

  	

  Name:

  	

  Robert H. Joseph, Jr.

  
	

   

  	

   

  	

  Title:

  	

  Senior Vice President

  & Chief Financial Officer

  

 

	

   

  	

  EFM HOLDINGS GMBH

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Roland Haas

  
	

   

  	

   

  	

  Name:

  	

  Roland Haas

  
	

   

  	

   

  	

  Title:

  	

  Managing Director

  

 

In consideration of the

forgiveness of the

loans owed to Seller by the Joint Venture

pursuant to Section 5.02, and other good 

and valuable consideration, the receipt and

sufficiency of which are hereby

acknowledged, the Joint Venture expressly

acknowledges and accepts the provisions of

Sections 6.03, 6.04, 7.03, 7.04 and 8.02(b)

and agrees to comply with and be bound by

the terms thereof:

 

	

  EAST FUND MANAGEMENTBERATUNG GMBH

  
	

   

  
	

   

  
	

  By:

  	

  /s/ Roland Haas

  
	

   

  	

  Name:

  	

  Roland Hass

  
	

   

  	

  Title:

  	

  Managing Director

  

 

24

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