Document:

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                                                                     EXHIBIT 4.2

                                                                  EXECUTION COPY

                                  $400,000,000

                           King Pharmaceuticals, Inc.

                    1 1/4% Convertible Senior Notes Due 2026

                          Registration Rights Agreement

                                                                  March 29, 2006

Citigroup Global Markets Inc.
As Representative of the Initial Purchasers
c/o Citigroup Global Markets Inc.
390 Greenwich Street
New York, New York 10013

Ladies and Gentlemen:

     This Registration Rights Agreement (the "Agreement") is made and entered
into as of March 29, 2006, by and among King Pharmaceuticals, Inc., a Tennessee
corporation (the "Company"), the Guarantors (as defined below) and Citigroup
Global Markets Inc. as representative of the several parties named in Schedule I
(the "Initial Purchasers") to that certain Purchase Agreement, dated as of March
24, 2006 (the "Purchase Agreement") among the Company, the Guarantors and the
Initial Purchasers.

     As an inducement to the Initial Purchasers to enter into the Purchase
Agreement and in satisfaction of a condition to the obligations of the Initial
Purchasers thereunder, the Company and the Guarantors agree with the Initial
Purchasers, for the benefit of the holders (including the Initial Purchasers) of
the Notes, the Guarantees and the Shares (each as defined below) (collectively,
the "Holders"), as follows:

     1. Certain Definitions.

     For purposes of this Registration Rights Agreement, the following terms
shall have the following meanings:

          (a) "Agreement" means this Registration Rights Agreement, as the same
     may be amended from time to time pursuant to the terms hereof.

          (b) "Closing Date" means the date on which any Notes are initially
     issued.

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          (c) "Commission" means the Securities and Exchange Commission, or any
     other federal agency at the time administering the Exchange Act or the
     Securities Act, whichever is the relevant statute for the particular
     purpose.

          (d) "Company" has the meaning specified in the first paragraph of this
     Agreement.

          (e) "Deferral Notice" has the meaning assigned thereto in Section
     3(b).

          (f) "Deferral Period" has the meaning assigned thereto in Section
     3(b).

          (g) "Effective Period" has the meaning assigned thereto in Section
     2(d).

          (h) "Exchange Act" means the Securities Exchange Act of 1934, as
     amended, and the rules and regulations promulgated thereunder.

          (i) "Guarantors" means all of the domestic subsidiaries of the Company
     that are signatories hereto and all of the direct and indirect future
     domestic subsidiaries of the Company that execute a supplemental indenture
     in order to become Guarantors, as required by and in accordance with the
     terms of the Indenture.

          (j) "Guarantees" means the full and unconditional unsecured guarantees
     by the Guarantors of the Notes in accordance with the terms of the
     Indenture.

          (k) "Holder" means each holder, from time to time, of Registrable
     Securities (including the Initial Purchasers).

          (l) "Indenture" means the Indenture dated as of March 29, 2006 among
     the Company, the Guarantors and The Bank of New York, as Trustee, pursuant
     to which the Notes are being issued.

          (m) "Initial Purchasers" has the meaning specified in the first
     paragraph of this Agreement.

          (n) "Liquidated Damages" has the meaning assigned thereto in Section
     2(g).

          (o) "Liquidated Damages Payment Date" has the meaning assigned thereto
     in Section 2(g).

          (p) "Material Event" has the meaning assigned thereto in Section
     3(a)(iv).

          (q) "Majority Holders" shall mean, on any date, holders of the
     majority of the Shares constituting Registrable Securities; for the
     purposes of this definition, Holders of Notes constituting Registrable
     Securities shall be deemed to be the Holders of the number of Shares into
     which such Notes are or would be convertible as of such date.

          (r) "NASD" shall mean the National Association of Securities Dealers,
     Inc.

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          (s) "NASD Rules" shall mean the Conduct Rules and the By-Laws of the
     NASD.

          (t) "Notes" mean the 1 1/4% Convertible Senior Notes Due 2026, to be
     issued under the Indenture and sold by the Company to the Initial
     Purchasers.

          (u) "Notice and Questionnaire" means a written notice delivered to the
     Company containing substantially the information called for by the Form of
     Selling Securityholder Notice and Questionnaire attached as Annex A to the
     Offering Memorandum.

          (v) "Notice Holder" means, on any date, any Holder that has delivered
     a Notice and Questionnaire to the Company on or prior to such date.

          (w) "Offering Memorandum" means the Offering Memorandum dated March
     24, 2006 relating to the offer and sale of the Securities.

          (x) "Person" means a corporation, association, partnership,
     organization, business, individual, government or political subdivision
     thereof or governmental agency.

          (y) "Prospectus" means the prospectus included in any Shelf
     Registration Statement, as amended or supplemented by any amendment or
     prospectus supplement, including post-effective amendments, and all
     materials incorporated by reference or explicitly deemed to be incorporated
     by reference in such Prospectus.

          (z) "Purchase Agreement" has the meaning specified in the first
     paragraph of this Agreement.

          (aa) "Registrable Securities" means

               (a)  the Notes, including the Guarantees, until the earliest of
                    (i) their effective registration under the Securities Act
                    and the resale of all such Notes in accordance with the
                    Shelf Registration Statement, (ii) the expiration of the
                    holding period applicable to such Notes under Rule 144(k)
                    under the Securities Act or any successor provision or
                    similar provisions then in effect or (iii) the date on which
                    all such Notes have been converted or otherwise cease to be
                    outstanding; and

               (b)  the Shares, if any, issuable upon conversion of the Notes,
                    until the earliest of (i) their effective registration under
                    the Securities Act and the resale of all such Shares in
                    accordance with the Shelf Registration Statement, (ii) the
                    expiration of the holding period applicable to such Shares
                    under Rule 144(k), (iii) the date on which all such Shares
                    are freely transferable by persons who are not Affiliates of
                    the Company without registration under the

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                    Securities Act, or (iv) the date on which all such Shares
                    cease to be outstanding.

          (bb) "Registration Default" means

          (i) with respect to any Registrable Securities that are Notes or
     Guarantees:

          (A) (i) the Company and the Guarantors shall not have filed a Shelf
Registration Statement providing for the registration of, and the sale on a
continuous or delayed basis by the Holders of, such Registrable Securities with
the Commission within 90 days following the Closing Date (which shall be, if the
Company is then a WKSI, an automatic Shelf Registration Statement); (ii) the
Shelf Registration Statement shall not have been declared effective with respect
to such Registrable Securities by the Commission prior to or on the 120th day
following the Closing Date;

          (B) the Company has failed to perform its obligations set forth in
Section 2(f) in connection with the resale of such Registrable Securities; or

          (C) if the Shelf Registration Statement has been declared effective
with respect to such Registrable Securities but such Shelf Registration
Statement ceases to be effective, or is not usable, for such Registrable
Securities at any time during the Effective Period for such Registrable
Securities, and (i) the Company and the Guarantors shall not have cured the
Shelf Registration Statement within 10 business days by a post-effective
amendment, prospectus supplement or report filed under the Exchange Act (other
than in the case of a Deferral Period described in Section 3(b)), (ii) if
applicable, the Company and the Guarantors shall not have terminated a Deferral
Period by the 45th day of such Deferral Period or (iii) the aggregate duration
of Deferral Periods in any period shall have exceeded the number of days
permitted in respect of such period pursuant to Section 3(b) hereof.

          (ii) with respect to any Registrable Securities that are Shares:

          (A) (i) the Company and the Guarantors shall not have filed a Shelf
Registration Statement providing for the registration of, and the sale on a
continuous or delayed basis by the Holders of, such Registrable Securities with
the Commission within 90 days following the Closing Date (which shall be, if the
Company is then a WKSI, an automatic Shelf Registration Statement); (ii) the
Shelf Registration Statement shall not have been declared effective with respect
to such Registrable Securities by the Commission prior to or on the 120th day
following the Closing Date;

          (B) the Company or any Guarantor shall have failed to perform its
obligations set forth in Section 2(f) in connection with the resale of such
Registrable Securities; or

          (C) if the Shelf Registration Statement has been declared effective
with respect to such Registrable Securities but such Shelf Registration
Statement ceases to be effective, or is not usable, for such Registrable
Securities at any time during the Effective Period for such Registrable
Securities, and (i) the Company and the Guarantors shall not have cured the

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Shelf Registration Statement within 10 business days by a post-effective
amendment, prospectus supplement or report filed under the Exchange Act (other
than in the case of a Deferral Period described in Section 3(b)), (ii) if
applicable, the Company and the Guarantors shall not have terminated a Deferral
Period by the 45th day of such Deferral Period or (iii) the aggregate duration
of Deferral Periods in any period shall have exceeded the number of days
permitted in respect of such period pursuant to Section 3(b) hereof.

          (cc) "Registration Expenses" has the meaning assigned thereto in
     Section 5.

          (dd) "Rule 144," Rule 144(k)," "Rule 144A," "Rule 405" and "Rule 415"
     mean, in each case, such rule as promulgated under the Securities Act.

          (ee) "Securities" means, collectively, the Notes, the Guarantees and
     the Shares.

          (ff) "Securities Act" means the Securities Act of 1933, as amended,
     and the rules and regulations promulgated thereunder.

          (gg) "Shares" means the shares of common stock of the Company, no par
     value into which the Notes may be convertible or that have been issued upon
     any conversion from Notes into common stock of the Company, all pursuant to
     the Indenture.

          (hh) "Shelf Registration Statement" means the shelf registration
     statement referred to in Section 2(a) and 2(b), as amended or supplemented
     by any amendment or supplement, including post-effective amendments, and
     all materials incorporated by reference or explicitly deemed to be
     incorporated by reference in such Shelf Registration Statement.

          (ii) "Special Counsel" shall have the meaning assigned thereto in
     Section 5.

          (jj) "Trust Indenture Act" means the Trust Indenture Act of 1939, as
     amended, or any successor thereto, and the rules, regulations and forms
     promulgated thereunder, all as the same shall be amended from time to time.

          (kk) "Trustee" shall have the meaning assigned such term in the
     Indenture.

          (ll) "Well-known seasoned issuer" or "WKSI" shall have the meaning
     assigned such term in Rule 405 of the Securities Act.

     Unless the context otherwise requires, any reference herein to a "Section"
or "clause" refers to a Section or clause, as the case may be, of this
Agreement, and the words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any particular
Section or other subdivision. Unless the context otherwise requires, any
reference to a statute, rule or regulation refers to the same (including any
successor statute, rule or regulation thereto) as it may be amended from time to
time.

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     2. Registration Under the Securities Act.

          (a) The Company and the Guarantors agree to file under the Securities
     Act as promptly as practicable but in any event within 90 days after the
     Closing Date, a shelf registration statement (which shall be an automatic
     shelf registration statement if the Company is then a WKSI) providing for
     the registration of, and the sale on a continuous or delayed basis by the
     Holders of, all of the Registrable Securities, and, if necessary by the
     Company, of delivery to the Holders of all of the Shares, pursuant to Rule
     415 of the Securities Act or any similar rule that may be adopted by the
     Commission.

          (b) If the Company is not a WKSI on the 90th day after the Closing
     Date, the Company and the Guarantors agree to use their reasonable best
     efforts to cause the Shelf Registration Statement to become or be declared
     effective no later than 120 days after the Closing Date.

          (c) The Company and the Guarantors agree to name as a selling security
     holder in the Shelf Registration Statement, at the time of its
     effectiveness, each Notice Holder from which the Company has received a
     Notice and Questionnaire, together with any other information the Company
     may reasonably request from such Notice Holder on or prior to the tenth day
     before effectiveness of such Shelf Registration Statement.

          (d) The Company and the Guarantors agree to use their reasonable best
     efforts to keep such Shelf Registration Statement continuously effective
     until each of the Registrable Securities ceases to be a Registrable
     Security (the "Effective Period"). None of the Company's or any Guarantor's
     securityholders (other than Holders of Registrable Securities) shall have
     the right to include any of the Company's securities in the Shelf
     Registration Statement.

          (e) The Company and each Guarantor further agrees that they shall
     cause the Shelf Registration Statement and the related Prospectus and any
     amendment or supplement thereto, as of the effective date of the Shelf
     Registration Statement or such amendment or supplement, (i) to comply in
     all material respects with the applicable requirements of the Securities
     Act; and (ii) not to contain any untrue statement of a material fact or
     omit to state a material fact required to be stated therein or necessary in
     order to make the statements therein (in the case of the Prospectus, in the
     light of the circumstances under which they were made) not misleading, and
     the Company and each Guarantor agrees to furnish to the Holders of the
     Registrable Securities copies of any supplement or amendment prior to its
     being used or promptly following its filing with the Commission; provided,
     however, that the Company and each Guarantor shall have no obligation to
     deliver to Holders of Registrable Securities copies of any amendment
     consisting exclusively of an Exchange Act report or other Exchange Act
     filing filed electronically with the Commission or otherwise publicly
     available on the Company's website. If the Shelf Registration Statement, as
     amended or supplemented from time to time, ceases to be effective for any
     reason at any time during the Effective Period (other than because all
     Registrable Securities registered thereunder shall have been sold pursuant
     thereto or shall have otherwise ceased to be Registrable Securities), the

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     Company and each Guarantor shall use their reasonable best efforts to
     obtain the prompt withdrawal of any order suspending the effectiveness
     thereof.

          (f) Each Holder of Registrable Securities agrees that if such Holder
     wishes to sell Registrable Securities pursuant to the Shelf Registration
     Statement and related Prospectus, it will do so only in accordance with
     this Section 2(f) and Section 3(b). From and after the date the Shelf
     Registration Statement is declared effective, the Company and each
     Guarantor shall, as promptly as is practicable after the date a Notice and
     Questionnaire is delivered by a Holder, together with any other information
     the Company may reasonably request from such Holder, and in any event
     within fifteen (15) business days after such date,

               (i) if required by applicable law, file with the Commission a
          post-effective amendment to the Shelf Registration Statement or
          prepare and, if required by applicable law, file a supplement to the
          related Prospectus or a supplement or amendment to any document
          incorporated therein by reference or file any other required document
          so that the Holder delivering such Notice and Questionnaire is named
          as a selling security holder in the Shelf Registration Statement and
          the related Prospectus in such a manner as to permit such Holder to
          deliver such Prospectus to purchasers of the Registrable Securities in
          accordance with applicable law and, if the Company and each Guarantor
          shall file a post-effective amendment to the Shelf Registration
          Statement, use their reasonable best efforts to cause such
          post-effective amendment to be declared effective under the Securities
          Act as promptly as is practicable;

               (ii) provide such Holder copies of any documents filed pursuant
          to Section 2(f)(i); and

               (iii) notify such Holder as promptly as practicable after the
          effectiveness under the Securities Act of any post-effective amendment
          filed pursuant to Section 2(f)(i);

     provided, that if such Notice and Questionnaire is delivered during a
     Deferral Period, the Company shall so inform the Holder delivering such
     Notice and Questionnaire and shall take the actions set forth in clauses
     (i), (ii) and (iii) above upon expiration of the Deferral Period in
     accordance with Section 3(b). Notwithstanding anything contained herein to
     the contrary, the Company shall be under no obligation to name any Holder
     that is not a Notice Holder as a selling securityholder in any Shelf
     Registration Statement or related Prospectus; provided, however, that any
     Holder that becomes a Notice Holder pursuant to the provisions of this
     Section 2(f) (whether or not such Holder was a Notice Holder at the time
     the Shelf Registration Statement was declared effective) shall be named as
     a selling securityholder in the Shelf Registration Statement or related
     Prospectus in accordance with the requirements of this Section 2(f).

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          (g) If a Registration Default shall occur, then liquidated damages
     ("Liquidated Damages") shall become payable by the Company and each
     Guarantor to Holders in respect of the Notes as follows:

               (i) in the case of a Registration Default with respect to the
          Notes or the Guarantees, Liquidated Damages shall accrue on the
          principal amount of Notes that are Registrable Securities at a rate of
          0.25% per annum for the first 90 days following the occurrence of such
          Registration Default and at a rate of 0.50% per annum thereafter, to
          but excluding the earlier of (1) the day on which such Registration
          Default has been cured and (2) the date there are no longer any Notes
          that are Registrable Securities;

               (ii) in the case of a Registration Default with respect to the
          Shares, no Liquidated Damages shall accrue on any Shares and, in lieu
          thereof, the Company shall increase the Conversion Rate (as defined in
          the Indenture) by 3% for each $1,000 principal amount of Notes
          converted at a time when such Registration Default has occurred and is
          continuing;

     provided, however, that the Liquidated Damages rate on the Notes shall not
     exceed in the aggregate 0.5% per annum and shall not be payable under more
     than one clause above for any given period of time, except that if
     Liquidated Damages would be payable because of more than one Registration
     Default, but at a rate of 0.25% per annum under one Registration Default
     and at a rate of 0.5% per annum under the other, then the Liquidated
     Damages rate shall be the higher rate of 0.5% per annum.

               Liquidated Damages on the Notes, if any, will be payable in cash
     on April 1 and October 1 of each year (the "Liquidated Damages Payment
     Date") to holders of record of outstanding Notes that are Registrable
     Securities at the close of business on March 15 or September 15, as the
     case may be, immediately preceding the relevant interest payment date.
     Following the cure of all Registration Defaults requiring the payment of
     Liquidated Damages to the Holders of Notes that are Registrable Securities
     pursuant to this Section, the accrual of Liquidated Damages will cease
     (without in any way limiting the effect of any subsequent Registration
     Default requiring the payment of Liquidated Damages). Following the cure of
     all Registration Defaults requiring an increase of the Conversion Rate for
     Notes converted, such increase in the Conversion Rate will cease (without
     in any way limiting the effect of any subsequent Registration Default
     requiring an increase in the Conversion Rate).

               The Company and each Guarantor shall notify the Trustee
     immediately upon the happening of each and every Registration Default. The
     Trustee shall be entitled, on behalf of Holders of Securities, to seek any
     available remedy for the enforcement of this Agreement, including for the
     payment of any Liquidated Damages. Notwithstanding the foregoing, the
     parties agree that the sole monetary damages payable for a violation of the
     terms of this Agreement with respect to which additional monetary amounts
     are expressly provided shall be as set forth in this Section 2(g).
     Notwithstanding the foregoing, the parties agree that the sole remedy for a
     violation of the terms of this

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     Agreement with respect to which an increased Conversion Rate is expressly
     provided shall be as set forth in this Section 2(g). Nothing shall preclude
     a Notice Holder or Holder of Registrable Securities from pursuing or
     obtaining specific performance or other equitable relief with respect to
     this Agreement.

     3. Registration Procedures.

     The following provisions shall apply to the Shelf Registration Statement
filed pursuant to Section 2:

          (a) The Company and each Guarantor shall:

               (i) prepare and file with the Commission a registration statement
          with respect to the shelf registration on any form which may be
          utilized by the Company and which shall permit the disposition of the
          Registrable Securities in accordance with the intended method or
          methods thereof, as specified in writing by the Holders of the
          Registrable Securities, and use its reasonable best efforts to cause
          such registration statement to become effective in accordance with
          Section 2(a) or 2(b) above;

               (ii) before filing any Shelf Registration Statement or Prospectus
          or any amendments or supplements thereto with the Commission, furnish
          to the Special Counsel copies of all such documents proposed to be
          filed and use reasonable best efforts to reflect in each such document
          when so filed with the Commission such comments as the Special Counsel
          reasonably shall propose within three (3) business days of the
          delivery of such copies to the Special Counsel; provided, however,
          that the Company and each Guarantor shall have no obligation hereunder
          with respect to any amendment consisting exclusively of an Exchange
          Act report or other Exchange Act filing filed electronically with the
          Commission or otherwise publicly available on the Company's website or
          with respect to any amendment or supplement filed solely pursuant to
          Section 2(f)(i) hereof;

               (iii) use its reasonable best efforts to prepare and file with
          the Commission such amendments and post-effective amendments to the
          Shelf Registration Statement and file with the Commission any other
          required document as may be necessary to keep such Shelf Registration
          Statement continuously effective until the expiration of the Effective
          Period; cause the related Prospectus to be supplemented by any
          required prospectus supplement, and as so supplemented to be filed
          pursuant to Rule 424 (or any similar provisions then in force) under
          the Securities Act; and comply with the provisions of the Securities
          Act applicable to it with respect to the disposition of all Securities
          covered by such Shelf Registration Statement during the Effective
          Period in accordance with the intended methods of disposition by the
          sellers thereof set forth in such Shelf Registration Statement as so
          amended or such Prospectus as so supplemented;

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               (iv) promptly notify the Notice Holders of Registrable Securities
          (A) when such Shelf Registration Statement or the Prospectus included
          therein or any amendment or supplement to the Prospectus or
          post-effective amendment has been filed with the Commission, and, with
          respect to such Shelf Registration Statement or any post-effective
          amendment, when the same has become effective, (B) of any request,
          following the effectiveness of the Shelf Registration Statement, by
          the Commission or any other Federal or state governmental authority
          for amendments or supplements to the Shelf Registration Statement or
          related Prospectus or for additional information, (C) of the issuance
          by the Commission of any stop order suspending the effectiveness of
          such Shelf Registration Statement or the initiation or written threat
          of any proceedings for that purpose, (D) of the receipt by the Company
          or any Guarantor of any notification with respect to the suspension of
          the qualification of the Registrable Securities for sale in any
          jurisdiction or the initiation or written threat of any proceeding for
          such purpose, (E) of the occurrence of (but not the nature of or
          details concerning) any event or the existence of any fact (a
          "Material Event") as a result of which any Shelf Registration
          Statement shall contain any untrue statement of a material fact or
          omit to state any material fact required to be stated therein or
          necessary to make the statements therein not misleading, or any
          Prospectus shall contain any untrue statement of a material fact or
          omit to state any material fact required to be stated therein or
          necessary to make the statements therein, in the light of the
          circumstances under which they were made, not misleading (provided,
          however, that no notice by the Company shall be required pursuant to
          this clause (E) in the event that the Company either promptly files a
          prospectus supplement to update the Prospectus or a Form 8-K or other
          appropriate Exchange Act report that is incorporated by reference into
          the Shelf Registration Statement, which, in either case, contains the
          requisite information with respect to such Material Event that results
          in such Shelf Registration Statement no longer containing any untrue
          statement of material fact or omitting to state a material fact
          necessary to make the statements contained therein not misleading),
          (F) of the determination by the Company that a post-effective
          amendment to the Shelf Registration Statement will be filed with the
          Commission, which notice may, at the discretion of the Company (or as
          required pursuant to Section 3(b)), state that it constitutes a
          Deferral Notice, in which event the provisions of Section 3(b) shall
          apply or (G) at any time when a Prospectus is required to be delivered
          under the Securities Act, that the Shelf Registration Statement,
          Prospectus, Prospectus amendment or supplement or post-effective
          amendment does not conform in all material respects to the applicable
          requirements of the Securities Act and the Trust Indenture Act and the
          rules and regulations of the Commission thereunder;

               (v) prior to any public offering of the Registrable Securities
          pursuant to the Shelf Registration Statement, use its reasonable best
          efforts to register or qualify, or cooperate with the Notice Holders
          of Securities included therein and their respective counsel in
          connection with the registration or qualification of,

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          such Securities for offer and sale under the securities or Blue Sky
          laws of such jurisdictions as any such Notice Holders reasonably
          requests in writing and do any and all other acts or things necessary
          or advisable to enable the offer and sale in such jurisdictions of the
          Securities covered by the Shelf Registration Statement; prior to any
          public offering of the Registrable Securities pursuant to the Shelf
          Registration Statement, use its reasonable best efforts to keep each
          such registration or qualification (or exemption therefrom) effective
          during the Effective Period in connection with such Notice Holder's
          offer and sale of Registrable Securities pursuant to such registration
          or qualification (or exemption therefrom) and do any and all other
          acts or things necessary or advisable to enable the disposition in
          such jurisdictions of such Registrable Securities in the manner set
          forth in the Shelf Registration Statement and the related Prospectus;
          provided that the Company will not be required to qualify generally to
          do business in any jurisdiction where it is not then so qualified or
          to take any action which would subject it to general service of
          process or to taxation in any such jurisdiction where it is not then
          so subject;

               (vi) use its reasonable best efforts to prevent the issuance of,
          and if issued, to obtain the withdrawal of any order suspending the
          effectiveness of the Shelf Registration Statement or any
          post-effective amendment thereto, and to lift any suspension of the
          qualification of any of the Registrable Securities for sale in any
          jurisdiction in which they have been qualified for sale, in each case
          at the earliest practicable date;

               (vii) upon reasonable notice, for a reasonable period prior to
          the filing of the Shelf Registration Statement, and throughout the
          Effective Period, (i) make reasonably available for inspection by a
          representative of, and Special Counsel acting for, Majority Holders of
          the Securities being sold and any underwriter (and its counsel)
          participating in any disposition of Securities pursuant to such Shelf
          Registration Statement, all relevant financial and other records,
          pertinent corporate documents and properties of the Company and its
          subsidiaries and (ii) use reasonable best efforts to have their
          officers, directors, employees, accountants and counsel supply all
          relevant information reasonably requested by such representative,
          Special Counsel or any such underwriter in connection with such Shelf
          Registration Statement; provided, however, that the Company shall not
          have any obligation to deliver information to any such representative
          or any such underwriter pursuant to this Section 3(a)(vii) unless such
          representative or any such underwriter shall have executed and
          delivered a confidentiality agreement in a form reasonably acceptable
          to the Company relating to such information;

               (viii) if requested by Majority Holders of the Securities being
          sold in an underwriting, its Special Counsel or the managing
          underwriters (if any) in connection with such Shelf Registration
          Statement, use its reasonable best efforts to cause (i) its counsel to
          deliver an opinion relating to the Shelf Registration Statement and
          the Securities in customary form, (ii) its officers to execute and
          deliver all customary documents and certificates requested by the
          Majority

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          Holders of the Securities being sold, their Special Counsel or the
          managing underwriters (if any) and (iii) its independent public
          accountants to provide a comfort letter or letters in customary form,
          subject to receipt of appropriate documentation as contemplated, and
          only if permitted, by Statement of Auditing Standards No. 72;

               (ix) if reasonably requested by the Initial Purchasers or any
          Notice Holder, promptly incorporate in a prospectus supplement or
          post-effective amendment to the Shelf Registration Statement such
          information as the Initial Purchasers or such Notice Holder shall, on
          the basis of a written opinion of nationally-recognized counsel
          experienced in such matters, determine to be required to be included
          therein by applicable law and make any required filings of such
          prospectus supplement or such post-effective amendment; provided, that
          the Company shall not be required to take any actions under this
          Section 3(a)(ix) that are not, in the reasonable opinion of counsel
          for the Company, in compliance with applicable law;

               (x) promptly furnish to each Notice Holder and the Initial
          Purchasers, upon their request and without charge, at least one (1)
          conformed copy of the Shelf Registration Statement and any amendments
          thereto, including financial statements but excluding schedules, all
          documents incorporated or deemed to be incorporated therein by
          reference and all exhibits; provided, however, that the Company shall
          have no obligation to deliver to Notice Holders or the Initial
          Purchasers a copy of any amendment consisting exclusively of an
          Exchange Act report or other Exchange Act filing otherwise publicly
          available on the Company's website;

               (xi) during the Effective Period, deliver to each Notice Holder
          in connection with any sale of Registrable Securities pursuant to the
          Shelf Registration Statement, without charge, as many copies of the
          Prospectus relating to such Registrable Securities (including each
          preliminary prospectus) and any amendment or supplement thereto as
          such Notice Holder may reasonably request; and the Company hereby
          consents (except during such periods that a Deferral Notice is
          outstanding and has not been revoked) to the use of such Prospectus or
          each amendment or supplement thereto by each Notice Holder in
          connection with any offering and sale of the Registrable Securities
          covered by such Prospectus or any amendment or supplement thereto in
          the manner set forth therein; and

               (xii) cooperate with the Notice Holders of Securities to
          facilitate the timely preparation and delivery of certificates
          representing Securities to be sold pursuant to the Shelf Registration
          Statement free of any restrictive legends and in such denominations
          and registered in such names as the Holders thereof may request in
          writing at least two business days prior to sales of Securities
          pursuant to such Shelf Registration Statement.

                                       12

<PAGE>

          (b) Upon (A) the issuance by the Commission of a stop order suspending
     the effectiveness of the Shelf Registration Statement or the initiation of
     proceedings with respect to the Shelf Registration Statement under Section
     8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the
     existence of any Material Event as a result of which the Shelf Registration
     Statement shall contain any untrue statement of a material fact or omit to
     state any material fact required to be stated therein or necessary to make
     the statements therein not misleading, or any Prospectus shall contain any
     untrue statement of a material fact or omit to state any material fact
     required to be stated therein or necessary to make the statements therein,
     in the light of the circumstances under which they were made, not
     misleading, or (C) the occurrence or existence of any corporate development
     that, in the discretion of the Company, makes it appropriate to suspend the
     availability of the Shelf Registration Statement and the related
     Prospectus, the Company will (i) in the case of clause (B) above, subject
     to the fifth sentence of this provision, as promptly as practicable prepare
     and file a post-effective amendment to such Shelf Registration Statement or
     a supplement to the related Prospectus or any document incorporated therein
     by reference or file any other required document that would be incorporated
     by reference into such Shelf Registration Statement and Prospectus so that
     such Shelf Registration Statement does not contain any untrue statement of
     a material fact or omit to state any material fact required to be stated
     therein or necessary to make the statements therein not misleading, and
     such Prospectus does not contain any untrue statement of a material fact or
     omit to state any material fact required to be stated therein or necessary
     to make the statements therein, in the light of the circumstances under
     which they were made, not misleading, as thereafter delivered to the
     purchasers of the Registrable Securities being sold thereunder, and, in the
     case of a post-effective amendment to the Shelf Registration Statement,
     subject to the fifth sentence of this provision, use reasonable best
     efforts to cause it to be declared effective as promptly as is practicable,
     and (ii) give notice to the Notice Holders that the availability of the
     Shelf Registration Statement is suspended (a "Deferral Notice"). The
     Company and the Guarantors need not specify the nature of the event giving
     rise to a suspension in any Deferral Notice. Each Holder agrees to hold any
     such Deferral Notice in confidence. Upon receipt of any Deferral Notice,
     each Notice Holder agrees not to sell any Registrable Securities pursuant
     to the Shelf Registration Statement until such Notice Holder's receipt of
     copies of the supplemented or amended Prospectus provided for in clause (i)
     above, or until it is advised in writing by the Company that the Prospectus
     may be used, and has received copies of any additional or supplemental
     filings that are incorporated or deemed incorporated by reference in such
     Prospectus. The Company and each Guarantor will use its reasonable best
     efforts to ensure that the use of the Prospectus may be resumed (x) in the
     case of clause (A) above, as promptly as practicable, (y) in the case of
     clause (B) above, as soon as, in the sole judgment of the Company, public
     disclosure of such Material Event would not be prejudicial to or contrary
     to the interests of the Company or, if necessary to avoid unreasonable
     burden or expense, as soon as practicable thereafter and (z) in the case of
     clause (C) above, as soon as, in the discretion of the Company, such
     suspension is no longer appropriate; provided that the period during which
     the availability of the Shelf Registration Statement and any Prospectus is
     suspended (the "Deferral Period"), without the Company incurring any
     obligation to pay

                                       13

<PAGE>

     Liquidated Damages pursuant to Section 2(g), shall not exceed an aggregate
     of forty-five (45) days in any 90-day period or ninety (90) days in any
     360-day period.

          (c) Each Holder of Registrable Securities agrees that upon receipt of
     any Deferral Notice from the Company, such Holder shall forthwith
     discontinue (and cause any placement or sales agent or underwriters acting
     on their behalf to discontinue) the disposition of Registrable Securities
     pursuant to the registration statement applicable to such Registrable
     Securities until such Holder (i) shall have received copies of such amended
     or supplemented Prospectus and, if so directed by the Company, such Holder
     shall deliver to the Company (at the Company's expense) all copies, other
     than permanent file copies, then in such Holder's possession of the
     Prospectus covering such Registrable Securities at the time of receipt of
     such notice or (ii) shall have received notice from the Company that the
     disposition of Registrable Securities pursuant to the Shelf Registration
     may continue.

          (d) The Company may require each Holder of Registrable Securities as
     to which any registration pursuant to Section 2 is being effected to
     furnish to the Company such information regarding such Holder and such
     Holder's intended method of distribution of such Registrable Securities as
     the Company may from time to time reasonably request in writing, but only
     to the extent that such information is required in order to comply with the
     Securities Act. Each such Holder agrees to notify the Company as promptly
     as practicable of any inaccuracy or change in information previously
     furnished by such Holder to the Company or of the occurrence of any event
     in either case as a result of which any Prospectus relating to such
     registration contains or would contain an untrue statement of a material
     fact regarding such Holder or such Holder's intended method of disposition
     of such Registrable Securities or omits to state any material fact
     regarding such Holder or such Holder's intended method of disposition of
     such Registrable Securities required to be stated therein or necessary to
     make the statements therein not misleading, and promptly to furnish to the
     Company any additional information required to correct and update any
     previously furnished information or required so that such Prospectus shall
     not contain, with respect to such Holder or the disposition of such
     Registrable Securities, an untrue statement of a material fact or omit to
     state a material fact required to be stated therein or necessary to make
     the statements therein not misleading.

          (e) The Company and each Guarantor shall comply with all applicable
     rules and regulations of the Commission and make generally available to its
     securityholders earning statements (which need not be audited) satisfying
     the provisions of Section 11(a) of the Securities Act and Rule 158
     thereunder (or any similar rule promulgated under the Securities Act) no
     later than 40 days after the end of any 12-month period (or 75 days after
     the end of any 12-month period if such period is a fiscal year) commencing
     on the first day of the first fiscal quarter of the Company commencing
     after the effective date of the Shelf Registration Statement, which
     statements shall cover said 12-month periods.

          (f) The Company shall provide a CUSIP number for all Registrable
     Securities covered by the Shelf Registration Statement not later than the
     effective date of such Shelf

                                       14

<PAGE>

     Registration Statement and provide the Trustee for the Notes and the
     transfer agent for the Shares with printed certificates for the Registrable
     Securities that are in a form eligible for deposit with The Depository
     Trust Company.

          (g) The Company and each Guarantor shall use its reasonable best
     efforts to provide such information as is required for any filings required
     to be made with the NASD.

          (h) Until the expiration of the Effectiveness Period, the Company will
     not, and will not permit any of its "affiliates" (as defined in Rule 144)
     to, resell any of the Securities that have been reacquired by any of them
     except pursuant to an effective registration statement under the Securities
     Act.

          (i) The Company and each of the Guarantors shall cause the Indenture
     to be qualified under the Trust Indenture Act in a timely manner.

          (j) The Company shall enter into such customary agreements and take
     all such actions as are commercially reasonable, necessary and lawful in
     connection therewith (including those requested by the Majority Holders of
     the Registrable Securities being sold) in order to expedite or facilitate
     disposition of such Registrable Securities.

     4. Holder's Obligations.

     Each Holder agrees, by acquisition of the Registrable Securities, that no
Holder of Registrable Securities shall be entitled to sell any of such
Registrable Securities pursuant to the Shelf Registration Statement or to
receive a Prospectus relating thereto, unless such Holder has furnished the
Company with a Notice and Questionnaire as required pursuant to Section 2(f)
hereof (including the information required to be included in such Notice and
Questionnaire) and the information set forth in the next sentence. Each Notice
Holder agrees promptly to furnish to the Company all information required to be
disclosed in order to make the information previously furnished to the Company
by such Notice Holder not misleading and any other information regarding such
Notice Holder and the distribution of such Registrable Securities as may be
required to be disclosed in the Shelf Registration Statement under applicable
law or pursuant to Commission comments. Each Holder further agrees not to sell
any Registrable Securities pursuant to the Shelf Registration Statement without
delivering, or causing to be delivered, a Prospectus to the purchaser thereof
and, following termination of the Effective Period, to notify the Company,
within 10 business days of a request by the Company, of the amount of
Registrable Securities sold pursuant to the Shelf Registration Statement and, in
the absence of a response, the Company may assume that all of the Holder's
Registrable Securities were so sold.

     5. Registration Expenses.

     The Company and each Guarantor agrees to bear and to pay or cause to be
paid promptly upon request being made therefor all expenses incident to the
Company's performance of or

                                       15

<PAGE>

compliance with this Agreement, including, but not limited to, (a) all
Commission and any NASD registration and filing fees and expenses, (b) all fees
and expenses in connection with the qualification of the Securities for offering
and sale under the State securities and Blue Sky laws referred to in Section
3(a)(v) hereof, including reasonable fees and disbursements of one counsel for
the placement agent or underwriters, if any, in connection with such
qualifications, (c) all expenses relating to the preparation, printing,
distribution and reproduction of the Shelf Registration Statement, the related
Prospectus, each amendment or supplement to each of the foregoing, the
certificates representing the Securities and all other documents relating
hereto, (d) fees and expenses of the Trustee under the Indenture, any escrow
agent or custodian, and of the registrar and transfer agent for the Shares, (e)
fees, disbursements and expenses of counsel and independent certified public
accountants of the Company (including the expenses of any reports required by
the Securities Act or the rules and regulations thereunder to be included or
incorporated by reference in the Shelf Registration Statement or "cold comfort"
letters required by or incident to such performance and compliance) and (f)
reasonable fees, disbursements and expenses of one counsel for the Holders of
Registrable Securities retained in connection with the Shelf Registration
Statement, as selected by the Company (unless reasonably objected to by the
Majority Holders of the Registrable Securities being registered, in which case
the Majority Holders shall select such counsel for the Holders) who shall
initially be Davis Polk & Wardwell ("Special Counsel"), and fees, expenses and
disbursements of any other Persons, including special experts, retained by the
Company in connection with such registration (collectively, the "Registration
Expenses"). To the extent that any Registration Expenses are incurred, assumed
or paid by any Holder of Registrable Securities or any underwriter or placement
agent therefor, the Company shall reimburse such Person for the full amount of
the Registration Expenses so incurred, assumed or paid promptly after receipt of
a documented request therefor. Notwithstanding the foregoing, the Holders of the
Registrable Securities being registered shall pay all underwriting discounts and
commissions and placement agent fees and commissions attributable to the sale of
such Registrable Securities and the fees and disbursements of any counsel or
other advisors or experts retained by such Holders (severally or jointly), other
than the counsel and experts specifically referred to above.

     6. Indemnification.

          (a) The Company and each Guarantor agrees to indemnify and hold
     harmless each Holder (including, without limitation, the Initial
     Purchasers), the directors, officers, employees and Affiliates of the
     Initial Purchasers and each person who controls such Holder within the
     meaning of either the Securities Act or the Exchange Act against any and
     all losses, claims, damages or liabilities, joint or several, to which they
     or any of them may become subject under the Securities Act, the Exchange
     Act or other federal or state statutory law or regulation, at common law or
     otherwise, insofar as such losses, claims, damages or liabilities (or
     actions in respect thereof) arise out of or are based upon any untrue
     statement or alleged untrue statement of a material fact contained in any
     such Registration Statement or any prospectus forming part thereof or in
     any amendment or supplement thereto, or arise out of or are based upon the
     omission or alleged omission to state therein a material fact required to
     be stated therein or necessary to make the statements therein, in the light
     of the circumstances under which they were made, not

                                       16

<PAGE>

     misleading, and agrees to reimburse each such indemnified party, as
     incurred, for any legal or other expenses reasonably incurred by it in
     connection with investigating or defending any such loss, claim, damage,
     liability or action; provided, however, that neither the Company nor any
     Guarantor will be liable in any such case to the extent that any such loss,
     claim, damage or liability arises out of or is based upon any such untrue
     statement or alleged untrue statement or omission or alleged omission from
     any such document, in reliance upon and in conformity with written
     information provided by a Holder; provided further, that with respect to
     any untrue statement or omission of material fact from any prospectus, the
     indemnity agreement contained in this Section 6(a) shall not inure to the
     benefit of any Holder from whom the Person asserting any such loss, claim,
     damage or liability purchased the securities concerned, to the extent that
     any such loss, claim, damage or liability of such Holder occurs under the
     circumstance that (y) the untrue statement or omission of a material fact
     from the prospectus was corrected in an amendment or supplement in
     accordance with the terms of this agreement and (z) there was not sent or
     given to such Person, at or prior to the written confirmation of the sale
     of such securities to such Person, a copy of the prospectus as amended or
     supplemented, unless such failure to deliver the prospectus, as amended or
     supplemented, was a result of non-compliance by the Company with Section 3;
     provided, further, that the indemnity agreement contained in this Section
     6(a) shall not inure to the benefit of any Holder to the extent that any
     such loss, claim, damage or liability of or with respect to such Holder to
     any person results from an offer or sale by the Holder of Securities during
     a Deferral Period if such Holder received a Deferral Notice prior to the
     making of such offer or sale. This indemnity agreement will be in addition
     to any liability that the Company or any Guarantor may otherwise have.

          (b) Each Holder agrees to indemnify and hold harmless the Company,
     each Guarantor, each of its directors, each of its officers, and each
     person, if any, who controls the Company or any Guarantor within the
     meaning of either the Securities Act or the Exchange Act, against any and
     all losses, claims, damages or liabilities, joint or several, to which the
     Company or any Guarantor may become subject under the Securities Act, the
     Exchange Act or other federal or state statutory law or regulation, at
     common law or otherwise, insofar as such losses, claims, damages or
     liabilities (or actions in respect thereof) arise out of or are based upon
     any untrue statement or alleged untrue statement of a material fact
     contained in any such Registration Statement or any prospectus forming part
     thereof or in any amendment or supplement thereto, or arise out of or are
     based upon the omission or alleged omission to state therein a material
     fact required to be stated therein or necessary to make the statements
     therein, in the light of the circumstances under which they were made, not
     misleading, but in each case only to the extent that the untrue statement
     or alleged untrue statement or omission or alleged omission was made in
     reliance upon and in conformity with any information furnished to the
     Company by such Holder, and agrees to reimburse the Company, as incurred,
     for any legal or other expenses reasonably incurred by it in connection
     with investigating or defending any such loss, claim, damage, liability or
     action; provided, however, that no such Holder shall be liable for any
     indemnity claims hereunder in excess of the amount of net proceeds received
     by such Holder from the sale of Securities pursuant to such Shelf
     Registration

                                       17

<PAGE>

     Statement. This indemnity agreement will be in addition to any liability
     which any such Holder may otherwise have.

          (c) Promptly after receipt by an indemnified party under this Section
     6 of notice of the commencement of any action or investigation, such
     indemnified party will, if a claim in respect thereof is to be made against
     the indemnifying party under this Section 6, notify the indemnifying party
     in writing of the commencement thereof; but the failure so to notify the
     indemnifying party (i) will not relieve the indemnifying party from
     liability under paragraph (a) or (b) above unless and to the extent the
     indemnifying party has been materially prejudiced through the forfeiture by
     the indemnified party of substantial rights and defenses and (ii) will not,
     in any event, relieve the indemnifying party from any obligations to any
     indemnified party other than the indemnification obligation provided in
     paragraph (a) or (b). If any action shall be brought against an indemnified
     party and it shall have notified the indemnifying party thereof, the
     indemnifying party shall be entitled to appoint counsel (including local
     counsel) of the indemnifying party's choice at the indemnifying party's
     expense to represent the indemnified party in any action for which
     indemnification is sought (in which case the indemnifying party shall not
     thereafter be responsible for the fees and expenses of any separate
     counsel, other than local counsel if not appointed by the indemnifying
     party, retained by the indemnified party or parties except as set forth
     below); provided, however, that such counsel shall be reasonably
     satisfactory to the indemnified party. Notwithstanding the indemnifying
     party's election to appoint counsel (including local counsel) to represent
     the indemnified party in an action, the indemnified party shall have the
     right to employ separate counsel (including local counsel), and the
     indemnifying party shall bear the reasonable fees, costs and expenses of
     such separate counsel if (i) the use of counsel chosen by the indemnifying
     party to represent the indemnified party would present such counsel with a
     conflict of interest; (ii) the actual or potential defendants in, or
     targets of, any such action include both the indemnified party and the
     indemnifying party and the indemnified party shall have reasonably
     concluded that there may be legal defenses available to it and/or other
     indemnified parties that are different from or additional to those
     available to the indemnifying party; (iii) the indemnifying party shall not
     have employed counsel reasonably satisfactory to the indemnified party to
     represent the indemnified party within a reasonable time after notice of
     the institution of such action; or (iv) the indemnifying party shall
     authorize the indemnified party to employ separate counsel at the expense
     of the indemnifying party. It is understood that an indemnifying party
     shall not, in connection with any proceeding or related proceeding in the
     same jurisdiction, be liable for the fees and expenses of more than one
     separate firm (in addition to any local counsel) for all indemnified
     parties. An indemnifying party will not, without the prior written consent
     of the indemnified parties, settle or compromise or consent to the entry of
     any judgment with respect to any pending or threatened claim, action, suit
     or proceeding in respect of which indemnification or contribution may be
     sought hereunder (whether or not the indemnified parties are actual or
     potential parties to such claim or action) unless such settlement,
     compromise or consent includes an unconditional release of each indemnified
     party from all liability arising out of such claim, action, suit or
     proceeding

                                       18

<PAGE>

     and does not include an admission of fault, culpability or a failure to
     act, by or on behalf of such indemnified party.

          (d) The provisions of this Section 6 and Section 7 shall remain in
     full force and effect, regardless of any investigation made by or on behalf
     of any Holder, the Company, or any of the indemnified Persons referred to
     in this Section 6 and Section 7, and shall survive the sale by a Holder of
     securities covered by the Shelf Registration Statement.

     7. Contribution.

     If the indemnification provided for in Section 6 is unavailable or
insufficient to hold harmless an indemnified party under Section 6(a) or 6(b),
then each indemnifying party shall, in lieu of indemnifying such indemnified
party, contribute to the amount paid or payable by such indemnified party as a
result of such loss, claim, damage or liability, or action in respect thereof,
(i) in such proportion as shall be appropriate to reflect the relative benefits
received by the Company from the offering and sale of the Notes, on the one
hand, and a Holder with respect to the sale by such Holder of Securities, on the
other, or (ii) if the allocation provided by clause (i) above is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Company and the Guarantors, on the one hand, and such Holder, on the other,
with respect to the statements or omissions that resulted in such loss, claim,
damage or liability, or action in respect thereof, as well as any other relevant
equitable considerations. The relative benefits received by the Company and the
Guarantors, on the one hand, and a Holder, on the other, with respect to such
offering and such sale shall be deemed to be in the same proportion as the total
net proceeds from the offering of the Notes (excluding discounts and
commissions, but before deducting expenses) received by or on behalf of the
Company and the Guarantors, on the one hand, and the total net proceeds
(excluding discounts and commissions, but before deducting expenses) received by
such Holder upon a resale of the Securities, on the other, bear to the total
gross proceeds from the sale all Securities pursuant to the Shelf Registration
Statement in the offering of the Securities from which the contribution claim
arises. The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to the Company and
the Guarantors or information supplied by the Company and the Guarantors, on the
one hand, or to any information contained in the relevant Notice and
Questionnaire supplied by such Holder, on the other, the intent of the parties
and their relative knowledge, access to information and opportunity to correct
or prevent such untrue statement or omission. The parties hereto agree that it
would not be just and equitable if contributions pursuant to this Section 7 were
to be determined by pro rata allocation or by any other method of allocation
that does not take into account the equitable considerations referred to herein.
The amount paid or payable by an indemnified party as a result of the loss,
claim, damage or liability, or action in respect thereof, referred to above in
this Section 7 shall be deemed to include, for purposes of this Section 7, any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending or preparing to defend any such
action or claim. Notwithstanding the provisions of this Section 7, an
indemnifying party that is a Holder of Securities shall not be required to
contribute any amount in excess of the amount by which the total price at which
the Securities sold by such indemnifying party to any purchaser exceeds the
amount of any damages

                                       19

<PAGE>

which such indemnifying party has otherwise paid or become liable to pay by
reason of any untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.

     8. Rule 144A and Rule 144.

     So long as any Registrable Securities remain outstanding, the Company and
each of the Guarantors shall use its reasonable best efforts to file the reports
required to be filed by it under Rule 144A(d)(4) under the Securities Act and
the Exchange Act in a timely manner and, if at any time the Company and each of
the Guarantors is not required to file such reports, it will, upon the written
request of any Holder of Registrable Securities, make publicly available other
information so long as necessary to permit sales of such Holder's securities
pursuant to Rules 144 and 144A of the Securities Act. The Company and each of
the Guarantors covenants that it will take such further action as any Holder of
Restricted Securities may reasonably request, all to the extent required from
time to time to enable such Holder to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemptions
provided by Rules 144 and 144A (including, without limitation, the requirements
of Rule 144A(d)(4)). Upon the written request of any Holder of Registrable
Securities, the Company shall deliver to such Holder a written statement as to
whether it and each of the Guarantors has complied with such requirements.
Notwithstanding the foregoing, nothing in this Section 8 shall be deemed to
require the Company or any of the Guarantors to register any of its securities
pursuant to the Exchange Act.

     9. Miscellaneous.

          (a) Amendments and Waivers. The provisions of this Agreement may not
     be amended, modified or supplemented, and waivers or consents to departures
     from the provisions hereof may not be given, unless the Company has
     obtained the written consent of the Majority Holders. Notwithstanding the
     foregoing, a waiver or consent to depart from the provisions hereof with
     respect to a matter that relates exclusively to the rights of Holders whose
     Securities are being sold pursuant to the Shelf Registration Statement and
     that does not directly or indirectly affect the rights of other Holders may
     be given by Holders of a majority in aggregate amount of the Securities
     being sold by such Holders pursuant to the Shelf Registration Statement.

          (b) Notices. All notices and other communications provided for or
     permitted hereunder shall be made in writing by hand-delivery, first-class
     mail, telecopier or air courier guaranteeing next-day delivery:

               (1) If to the Company, initially at the address set forth in the
          Purchase Agreement;

               (2) If to the Initial Purchasers, initially at the address set
          forth in the Purchase Agreement; and

                                       20

<PAGE>

               (3) If to a Holder, to the address of such Holder set forth in
          the security register, the Notice and Questionnaire or other records
          of the Company.

          All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; one business day after
being delivered to a next-day air courier; five business days after being
deposited in the mail; and when receipt is acknowledged by the recipient's
telecopier machine, if sent by telecopier.

          (c) Successors and Assigns. This Agreement shall be binding upon the
     Company, each Guarantor and each of their respective successors and
     assigns.

          (d) Counterparts. This Agreement may be executed in any number of
     counterparts (which may be delivered in original form or by telecopier) and
     by the parties hereto in separate counterparts, each of which when so
     executed shall be deemed to be an original and all of which taken together
     shall constitute one and the same agreement.

          (e) Definition of Terms. For purposes of this Agreement, (a) the term
     "business day" means any day on which the New York Stock Exchange, Inc. is
     open for trading, (b) the term "subsidiary" has the meaning set forth in
     Rule 405 under the Securities Act and (c) except where otherwise expressly
     provided, the term "affiliate" has the meaning set forth in Rule 405 under
     the Securities Act.

          (f) Headings. The headings in this Agreement are for convenience of
     reference only and shall not limit or otherwise affect the meaning hereof.

          (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
     IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

          (h) Remedies. In the event of a breach by the Company or by any Holder
     of any of their respective obligations under this Agreement, each Holder or
     the Company, as the case may be, in addition to being entitled to exercise
     all rights granted by law, including recovery of damages (other than the
     recovery of damages for a breach by the Company of its obligations under
     Section 3 hereof for which Liquidated Damages has been paid pursuant to
     Section 2 hereof), will be entitled to specific performance of its rights
     under this Agreement. The Company and each Holder agree that monetary
     damages would not be adequate compensation for any loss incurred by reason
     of a breach by it of any of the provisions of this Agreement and hereby
     further agree that, in the event of any action for specific performance in
     respect of such breach, it shall waive the defense that a remedy at law
     would be adequate.

          (i) No Inconsistent Agreements. The Company and each of the Guarantors
     represents, warrants and agrees that (i) it has not entered into, shall
     not, on or after the date of this Agreement, enter into any agreement that
     is inconsistent with the rights granted to the Holders in this Agreement or
     otherwise conflicts with the provisions hereof, (ii) it has not previously
     entered into any agreement which remains in effect granting any
     registration rights with respect to any of its debt securities to any
     Person and (iii) without limiting the generality of the foregoing, without
     the written consent of the Majority Holders, it shall not grant to any

                                       21

<PAGE>

     Person the right to request the Company to register any securities of the
     Company under the Securities Act unless the rights so granted are not in
     conflict or inconsistent with the provisions of this Agreement.

          (j) No Piggyback on Registrations. Neither the Company nor any of its
     security holders (other than the Holders of Restricted Securities in such
     capacity) shall have the right to include any securities of the Company in
     any Shelf Registration Statement other than Registrable Securities.

          (k) Severability. The remedies provided herein are cumulative and not
     exclusive of any remedies provided by law. If any term, provision, covenant
     or restriction of this Agreement is held by a court of competent
     jurisdiction to be invalid, illegal, void or unenforceable, the remainder
     of the terms, provisions, covenants and restrictions set forth herein shall
     remain in full force and effect and shall in no way be affected, impaired
     or invalidated, and the parties hereto shall use their reasonable best
     efforts to find and employ an alternative means to achieve the same or
     substantially the same result as that contemplated by such term, provision,
     covenant or restriction. It is hereby stipulated and declared to be the
     intention of the parties that they would have executed the remaining terms,
     provisions, covenants and restrictions without including any of such that
     may be hereafter declared invalid, illegal, void or unenforceable.

          (l) Survival. The respective indemnities, agreements, representations,
     warranties and each other provision set forth in this Agreement or made
     pursuant hereto shall remain in full force and effect regardless of any
     investigation (or statement as to the results thereof) made by or on behalf
     of any Holder of Registrable Securities, any director, officer or partner
     of such Holder, any agent or underwriter or any director, officer or
     partner thereof, or any controlling person of any of the foregoing, and
     shall survive delivery of and payment for the Registrable Securities
     pursuant to the Purchase Agreement and the transfer and registration of
     Registrable Securities by such Holder.

          (m) Securities Held by the Company, etc. Whenever the consent or
     approval of Holders of a specified percentage of Securities is required
     hereunder, Securities held by the Company or its affiliates (other than
     subsequent Holders of Securities if such subsequent Holders are deemed to
     be affiliates solely by reason of their holdings of such Securities) shall
     not be counted in determining whether such consent or approval was given by
     the Holders of such required percentage.

                                       22

<PAGE>

          If the foregoing is in accordance with your understanding of our
agreement, kindly sign and return to us a counterpart hereof, whereupon this
instrument will become a binding agreement among the Company, the Guarantors and
the Initial Purchasers in accordance with its terms.

                                        Very truly yours,

                                        THE COMPANY

                                        KING PHARMACEUTICALS, INC.

                                        By: /s/ Brian A. Markison
                                            ------------------------------------
                                        Name: Brian A. Markison
                                        Title: President and CEO

                                        THE GUARANTORS

                                        PARKEDALE PHARMACEUTICALS, INC.

                                        By: /s/ Brian A. Markison
                                            ------------------------------------
                                        Name: Brian A. Markison
                                        Title: President and CEO

                                        KING PHARMACEUTICALS RESEARCH AND
                                        DEVELOPMENT, INC.

                                        By: /s/ Brian A. Markison
                                            ------------------------------------
                                        Name: Brian A. Markison
                                        Title: President and CEO

<PAGE>

                                        KING PHARMACEUTICALS OF NEVADA, INC.

                                        By: /s/ Brian A. Markison
                                            ------------------------------------
                                        Name: Brian A. Markison
                                        Title: President and CEO

                                        MERIDIAN MEDICAL TECHNOLOGIES, INC.

                                        By: /s/ Brian A. Markison
                                            ------------------------------------
                                        Name: Brian A. Markison
                                        Title: CEO

                                        MONARCH PHARMACEUTICALS, INC.

                                        By: /s/ Brian A. Markison
                                            ------------------------------------
                                        Name: Brian A. Markison
                                        Title: President and CEO

<PAGE>

THE INITIAL PURCHASERS

Accepted: March 29, 2006

By: CITIGROUP GLOBAL MARKETS INC.

By: /s/ Dung Nguyen
    ---------------------------------
Name: Dung Nguyen
Title: Directorexv10w13

 

Exhibit 10.13

MEMBERS AGREEMENT

     THIS MEMBERS AGREEMENT (this “Agreement"), dated as of September 18, 2002, is made among CF
Leasing Ltd., a limited liability company organized and existing under the laws of Bermuda (the
“Borrower” or the “Company"), MeesPierson Transport & Logistics Holding B.V., a Besloten
Vennootschap organized and existing under the laws of The Netherlands (“MeesPierson"), and Cronos
Equipment (Bermuda) Limited, a limited liability company organized and existing under the laws of
Bermuda (“Cronos"), and joined by Cronos Containers (Cayman) Ltd., a company organized and existing
under the laws of the Cayman Islands and by The Cronos Group, a société anonyme holding organized
and existing under the laws of Grand Duchy of Luxembourg.

RECITALS

     A. WHEREAS, the Company previously issued 12,000 Common Shares (as defined below) to
MeesPierson and, simultaneously with the execution of this Agreement, the Company will authorize
the creation and issuance of 12,000 Common Shares to Cronos.

     B. WHEREAS, the Company desires to issue 12,000 Common Shares to Cronos, and Cronos desires to
acquire its Common Shares in consideration of its contribution to the capital of Company pursuant
to Section 2.1(b) hereof.

     C. NOW, THEREFORE, in consideration of the mutual agreements herein contained, each party
agrees as follows:

ARTICLE I

DEFINITIONS; SHARE SUBSCRIPTION

     SECTION 1.1. Definitions.

Capitalized terms used and not otherwise defined herein shall have the following meanings:

Acquisition Date. Any date on which the Company acquires one or more Containers.

Acquisition Fee. This term shall have the meaning set forth in the Management Agreement.

Acquisition Indebtedness. This term shall have the meaning set forth in Section 2.1(a) hereof.

Additional Contribution Amount. This term shall have the meaning set forth in Section 2.2(b)(iii)
hereof.

Adjusted Capital Account. With respect to any Member as of the end of each fiscal year of the
Company, such Member’s Capital Account (i) if United States federal income tax principles are then
applicable to any Member, reduced by any anticipated allocations, adjustments and distributions
described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4)-(6), and (ii) if

 

 

United States federal income tax principles are then applicable to any Member, increased by the amount of any
deficit in such Member’s Capital Account that such Member is obligated to restore pursuant to the
terms of this Agreement or is deemed obligated to restore pursuant to the penultimate sentences of
the Treasury Regulation Sections 1.704-2(g)(1) and 1.704-2(i)(5) or under Section
1.704-1(b)(2)(ii)(c) of the Treasury Regulations as of the end of such fiscal year.

Affiliate. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Agent. The Person acting as agent on behalf of the financial institutions from time to time party
to the Loan Agreement, its successors and permitted assigns; initially, Fortis Bank (Nederland)
N.V.

Aggregate Principal Balance. This term shall have the meaning set forth in Section 101 of the Loan
Agreement.

Agreed Value. With respect to any Container acquired by the Borrower, an amount equal to the sum
of (x) the net book value of such Container determined as of the effective date of such
acquisition, and (y) the fair market value of the Related Transferred Assets determined as of the
effective date of such acquisition.

Applicable Law. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Authorized Persons. This term shall have the meaning set forth in Section 7.4(c) hereof.

Bankruptcy Matters. The commencement of a voluntary case or other proceeding under any applicable
bankruptcy, winding up, insolvency, reorganization, debt arrangement, dissolution or other similar
law now or hereafter in effect, or the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator or the like, for the Company or any
substantial part of its property, or to make any general assignment for the benefit of creditors,
or for the Company to admit in writing its inability to pay its debts generally as they become due.

Bill of Sale. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Board Majority. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Book Net Income and Book Net Losses. For each fiscal year or other period, an amount equal to the
Company’s taxable income or loss, as the case may be, for such year or period, determined in
accordance with all applicable tax laws including, if United States
federal income tax principles are then applicable to any Member, in accordance with Section 703(a)
of the Code (for this purpose, all items of income, gain, loss and deduction required to be stated
separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or loss);
provided, however, for purposes of computing such taxable income or loss, (i) such taxable income
or loss shall be adjusted by any and all adjustments required to be made in order to maintain
Capital Account balances in compliance with Treasury Regulation Section 1.704-1(b) and (ii) any and
all items of gross income or gain and/or partnership and/or partner “nonrecourse deductions”

 

 

specially allocated to any Member pursuant to Section 4.3 shall not be taken into account in
calculating such taxable income or loss.

Capital Account. A separate capital account maintained for each Member throughout the term of the
Company, to which the following provisions apply:

     (a) Each Member’s Capital Account shall be credited with: (i) the amount of money contributed
by such Member to the capital of the Company; (ii) the fair market value of any Property (other
than money) contributed by such Member to the capital of the Company; and (iii) such Member’s share
of Book Net Income allocated to such Member pursuant to Section 4.2 hereof.

     (b) Each Member’s Capital Account shall be debited with: (i) the amount of money distributed
to such Member by the Company other than amounts which are in repayment of debt obligations of the
Company to such Member; (ii) the fair market value of Property (other than money) distributed to
such Member; and (iii) such Member’s share of Book Net Losses that are allocated to such Member
pursuant to Section 4.2 hereof.

     (c) All such contributions, allocations and distributions shall be credited or charged, as the
case may be, to the appropriate Capital Accounts of the respective Members to whom they apply, as
of the time the contributions, allocations or distributions are made.

     (d) Each Member’s Capital Account shall be maintained in accordance with applicable tax laws
including, if United States federal income tax principles are then applicable to any Member,
Treasury Regulation Section 1.704-1(b).

Capital Contribution. Any contribution of Property made by, or on behalf of, a Member to the
capital of the Company.

CEU. A cost-equivalent unit that is a fixed unit of measurement based on the cost of a Container
relative to the cost of a twenty-foot standard dry freight container.

Change of Control. This term shall have the meaning set forth in Section 101 of the Loan
Agreement.

Closing Date. The date on which the conditions precedent set forth in Section 6.1 hereof have been
satisfied.

Code. The Internal Revenue Code of 1986, as heretofore and hereafter amended from time to time
(and/or any corresponding provision of any superseding revenue law).

Collection Period. This term shall have the meaning set forth in Section 101 of the Loan
Agreement.

Commitment. With respect to each Member, the amount set forth on Exhibit C hereto opposite
the name of such Member. The amount of any Member’s Commitment shall be determined without regard
to any distributions made by the Company to such Member (except for the

 

 

distributions made to
Cronos or MeesPierson under Section 2.1 of the Purchase Agreement, which distributions shall not
reduce Cronos’ or MeesPierson’s Commitment).

Commitment Expiration Date. The earlier to occur of (x) the date on which an Early Amortization
Event occurs and (y) September 18, 2004 (or, in the case of clause (y), such later date as may be
agreed by all of the Members).

Common Share. This term shall have the meaning set forth in Bye-Law 50 of the Company’s bye-laws.

Companies Act. This term shall have the meaning set forth in Section 2.1(a) hereof.

Container. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Cronos Capital Contribution. This term shall have the meaning set forth in Section 2.1(b) hereof.

Cronos Shares. This term shall have the meaning set forth in Section 2.1(b) hereof.

Cronos Transferred Assets. This term shall have the meaning set forth in Section 2.1(b) hereof.

Dollars. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Early Amortization Event. This term shall have the meaning set forth in Section 101 of the Loan
Agreement.

Eligible Container. This term shall have the meaning set forth in Section 101 of the Loan
Agreement.

Event of Default. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Finance Lease. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Fiscal Quarter. The three month period ending on each March 31, June 30, September 30 and December
31.

Further Shares. This term shall have the meaning set forth in Section 7.3 hereof.

Lenders. The financial institutions from time to time party to the Loan Agreement, their
successors and permitted assigns.

Loan Agreement. The Loan Agreement, dated as of the Closing Date, by and among the Company, the
Agent and the Lenders, as such agreement shall be amended, supplemented or modified from time to
time in accordance with its terms.

 

 

Managed Container. This term shall have the meaning set forth in Section 1 of the Management
Agreement.

Management Agreement. The Management Agreement, dated as of the Closing Date, by and between the
Manager and the Company, as such agreement shall be amended, supplemented or modified from time to
time in accordance with its terms.

Manager Default. This term shall have the meaning set forth in Clause 11.1 of the Management
Agreement.

Manager. The Person performing the duties of the Manager under the Management Agreement;
initially, Cronos Containers (Cayman) Ltd., a company organized under the laws of the Cayman
Islands.

Master Lease. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

MeesPierson Cash Contribution. This term shall have the meaning set forth in Section 2.1(a)
hereof.

MeesPierson Shares. This term shall have the meaning set forth in Section 2.1(a) hereof.

MeesPierson Transferred Assets. This term shall have the meaning set forth in Section 2.1(a)
hereof.

Member. When in the singular, means each Person who holds Common Shares; when used in the plural,
means all Persons who hold Common Shares, collectively.

Member Representations and Warranties. This term shall have the meaning set forth in Section
2.1(c) hereof.

Member Transferred Assets. This term shall have the meaning set forth in Section 2.1(b) hereof.

Net Book Value. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Net Cash Flow. Net Cash Flow shall mean, with respect to any Collection Period, the amount of cash
(if any) available to the Borrower for distribution pursuant to the provisions of Section 302(a)
the Loan Agreement in excess of the sum of (i) all cash disbursements (inclusive, if United States
federal income tax principles are then applicable to any Member, of any guaranteed payments within
the meaning of Section 707(c) of the Code paid to any Member, but exclusive of distributions to the
Members in their capacities as such) of the Borrower prior to that date, and (ii) a reserve,
established in the reasonable discretion of the Company’s Board of Directors or, if authorized by
the Board of Directors, the Authorized Persons, for anticipated cash disbursements that will have
to be made by the Borrower before additional cash receipts from third parties will provide the
funds therefor. Net Cash Flow shall only be distributed by the

 

 

Company to the Members by way of
dividends or other distributions in accordance with Section 54 of the Companies Act.

New Containers. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Note. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Outstanding Obligations. This term shall have the meaning set forth in Section 101 of the Loan
Agreement.

Payment Date. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Person. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Property. Any property, real or personal, tangible or intangible, including money, and any legal
or equitable interest in such property, but excluding services and promises to perform services in
the future.

Purchase Agreement. This term shall have the meaning set forth in Section 101 of the Loan
Agreement.

Purchase Parameters. The policy employed by the Manager from time to time in acquiring New
Containers for the account of the Borrower, as such policy may be amended from time to time by a
Board Majority. Initially, the “Purchase Parameters” are as follows:

     (i) the maximum purchase price to be paid by the Borrower for any standard dry
cargo Container shall not exceed $1,450 per CEU;

     (ii) the maximum purchase price to be paid by the Borrower for any Specialized
Containers shall not exceed the amount in effect and previously approved by a Board
Majority;

     (iii) if such Container is a New Container and will be subject to either a
Term Lease or a Finance Lease on the date on which it is acquired by the Borrower,
the projected ARPEC for such Lease shall be not less than the sum of (A) three
month LIBOR on such date and (B) eleven percent (11%). In this regard, “ARPEC”
shall mean a fraction (expressed as a percentage) the numerator of which is equal
to the product of (A) the daily lease rental attributable to such Container
pursuant to the terms of such Lease and (B) 365, and the denominator is equal to
the original equipment cost of such Container;

     (iv) if such Container is a New Container and will be subject to a Master
Lease on the date of acquisition by the Borrower, then, when considered with all
other New Containers then owned by the Borrower, the sum of the Net Book Values of
all New Containers then subject to the terms of a Master Lease will shall not
exceed an amount equal to the product of (A) ten percent (10%) and

 

 

(B) the sum of
the then Net Book Values of all New Containers then owned by the Borrower; and

     (v) if (A) such Container is a New Container and will be subject to either a
Term Lease or a Finance Lease on the date on which it is acquired by the Borrower
and (B) the aggregate amount of the manufacturers’ invoices for all such Containers
subject to such Term Leases or Finance Leases shall be equal to or greater than
Three Million Dollars ($3,000,000), then Lease and Lessee associated with such
Containers shall have received the prior written approval in writing of a
designated Board Member of the Borrower selected by MeesPierson.

Related Debt Documents. Any loan or other documents executed by the Company pursuant to which the
Company will borrow money in order to finance all or a portion of the purchase of Containers. For
avoidance of doubt, the term “Related Debt Document” includes the Transaction Documents as defined
in the Loan Agreement.

Related Transferred Assets. This term shall have the meaning set forth in Section 101 of the
Purchase Agreement.

Securities Act. The U.S. Securities Act of 1933, as amended from time to time.

Shares. An ownership interest in the Company which will be evidenced by a share certificate.
There is one class of Shares in the Company, the Common Shares.

Sharing Ratio. With respect to each Member, as of any date, the ratio of the number of outstanding
Common Shares issued to such Member to the number of outstanding Common Shares issued to all of the
Members.

Specialized Containers. This term shall have the meaning set forth in Section 101 of the Loan
Agreement.

Structuring/Arrangement Fee. This term shall have the meaning set forth in the Management
Agreement.

Term Lease. This term shall have the meaning set forth in Section 101 of the Loan Agreement.

Treasury Regulation. Any proposed, temporary, and/or final federal income tax regulation
promulgated by the United States Department of the Treasury as heretofore and hereafter amended
form time to time.

Unrecovered Contribution Account. The amount of money and/or the agreed upon fair market value of
any Property contributed by any Member to the capital of the Company pursuant to Section 2.1 hereof
(net of liabilities secured by such contributed property that the Company is considered to assume
or take subject to), and decreased by the amount of money distributed by the Company to such Member
pursuant to Section 4.1(b) hereof and the agreed upon fair market value of any property distributed
to such Member by the Company (net of liabilities secured by such distributed property that such
Member is considered to assume or take subject to) pursuant to Section 4.1(b) hereof.

 

 

     Other capitalized terms used herein and not otherwise defined shall have the meaning set forth
in Section 101 of the Loan Agreement.

ARTICLE II

PURCHASE OF SHARES AND ADDITIONAL INVESTMENTS

     SECTION 2.1. Capital Contributions for Shares.

     (a) The Company has issued 12,000 Common Shares, par value U.S. $1.00 per share, to
MeesPierson (the “MeesPierson Shares”) on a nil paid basis. The Company owns the Containers as set
forth on Exhibit A hereto and the Related Transferred Assets thereto (collectively, the
“MeesPierson Transferred Assets”) with a collective Net Book Value of $4,672,452. The MeesPierson
Transferred Assets were acquired by the Company by purchase from Eurovos B.V. through a loan made
to the Company by the Agent (the “Acquisition Indebtedness”). On the Closing Date, and prior to
the transfer contemplated in Section 2.1(b), MeesPierson will contribute $4,672,452 (the
“MeesPierson Cash Contribution”) to the Company. Effective the Closing Date, the Company shall
credit MeesPierson’s Capital Account with the MeesPierson Cash Contribution and, for purposes of
the Companies Act 1981 of Bermuda, as amended (the “Companies Act”), shall credit the MeesPierson
Shares as being fully paid by $12,000, with the excess of the MeesPierson Cash Contribution
credited to the contributed surplus account of the Company. The Company shall utilize the
MeesPierson Cash Contribution to repay, in full, the Acquisition Indebtedness.

     (b) On the Closing Date, Cronos shall contribute the Containers as set forth on Exhibit
B hereto and the Related Transferred Assets thereto (collectively, the “Cronos Transferred
Assets”; and together with the MeesPierson Transferred Assets, the “Member Transferred Assets”).
The collective Net Book Value of the Cronos Transferred Assets is $4,672,452 (the “Cronos Capital
Contribution”). Effective the Closing Date, the Company shall issue 12,000 Common Shares, par
value U.S. $1.00 per share, to Cronos (the “Cronos Shares”) in consideration of Cronos’
contribution of the Cronos Transferred Assets to the Company, and shall credit Cronos’ Capital
Account by $4,672,452. For purposes of the Companies Act, the Company shall credit the Cronos
Shares as fully paid by $12,000 and credit the balance of the Cronos Capital Contribution to the
share premium account of the Company.

     (c) In connection with their respective contributions of Member Transferred Assets,
MeesPierson made, and Cronos hereby makes, to the Company and its successors and assigns the
following representations and warranties (the “Member Representations and Warranties”):

     (i) Title. At the time of delivery of its Member Transferred Assets to
the Company, the related Member had good title to such Member Transferred Assets,
free and clear of all liens, encumbrances and rights of others. The Member hereby
covenants to defend such title to its Member Transferred Assets forever against all
claims and demands originating prior to the delivery of such Member Transferred
Assets to the Company.

 

 

     (ii) Ordinary Course of Business. If such Container is subject to a
Lease on the date of transfer, such Lease was originated in the ordinary course of
the related Member’s business;

     (iii) No Violation of Lease. If such Container is subject to a Lease
on the date of transfer, the transfer and conveyance to the Company of such
Containers and the Lease (to the extent that it relates to such Container) will not
violate the terms or provisions of any Lease;

     (iv) Specifications. The Container conforms to the standard
specifications used by the related Member for containers purchased for its own
account for that category of Container and to any applicable standards promulgated
by applicable international standards organizations; and

     (v) Purchase Price. The purchase price paid by the Company for such
Container was not greater than the fair market value of the Container at the time
of acquisition from the related Member.

     (d) In the event that the Company discovers a breach of any of the Member Representation and
Warranties, and the Company determines that such breach has a material adverse effect on the
Company, then unless the breach shall have been cured
(which cure may be effected through the exercise of remedies against the manufacturer) or
waived by the Company within 30 days after the earlier to occur of the related Member’s discovery
or receipt of written notice of such breach, then the transferring Member will be obligated to
purchase the non-conforming Containers and the Related Transferred Assets at the purchase price
allocable to such Container. Upon receipt by the Company of an amount equal to the purchase price
allocable to a Container, the Company shall convey to the applicable Member the related
non-conforming Containers and the Related Transferred Assets free and clear of any liens arising
by, through or under the Company.

     SECTION 2.2. Capital Contributions for Purchase of Eligible Containers.

     (a) The Members shall, from time to time after the Closing Date on a several basis, make
additional Capital Contributions by way of contributed surplus, in proportion to their respective
Sharing Ratios, to the Company as provided herein, but in no event shall the aggregate amount of
any Member’s Capital Contributions exceed the amount of such Member’s Commitment set forth on
Exhibit C hereto, and provided, further, that no Member shall be required to make an
additional Capital Contribution unless the other Member shall have made an additional Capital
Contribution of equal amount. The actual amount of funds contributed by each Member will be
determined pursuant to the applicable procedures set forth in this Section 2.2.

     (b) No Member shall make an additional Capital Contribution on any date if:

     (i) the conditions set forth in Section 6.2 (relating to conditions precedent)
have not been satisfied;

 

 

     (ii) such additional Capital Contribution is to be made after the Commitment
Expiration Date;

     (iii) such additional Capital Contribution exceeds an amount equal to the
excess of (1) the product of (x) such Member’s Sharing Ratio and (y) the sum of (i)
the aggregate Agreed Values of the Eligible Containers to be acquired by the
Company on such date and (ii) total Acquisition Fees and Structuring/Arrangement
Fees payable on such date (the product of (x) and (y) being referred to as the
“Additional Contribution Amount”) over (2) any associated debt utilized to fund the
acquisition of such Containers; or

     (iv) any other Member fails to contribute its Additional Contribution Amount
on such date.

     (c) The additional Capital Contributions of each Member under this Section 2.2 shall be made
in accordance with the procedures set forth in this Article II, and no Member’s additional Capital
Contribution shall become the property of the Company or be added to such Member’s Unrecovered
Contribution Account unless and until the other Member shall have made an equal Capital
Contribution. Until such time as the other Member(s) contributes all or any portion of such
Member’s Additional Contribution Amount as provided in this Section 2.2 then the moneys advanced shall be held in trust by the
Company for the Member making such advance, and no other Member shall have any rights or remedies
at law and/or in equity against any such non-performing Member. Each other Member shall be
entitled to demand immediate repayment of such amounts held in trust made by such Member with
respect to such Additional Contribution Amount.

     SECTION 2.3. [Reserved].

     SECTION 2.4. Procedures for Additional Capital Contributions.

Whenever the Company requests the Members to make additional Capital Contributions pursuant to
Section 2.2 hereof, the Company shall notify the Members in writing, not later than 1:00 p.m.
(Amsterdam time) on the third (3rd) Business Day prior to the date of the proposed
additional Capital Contribution. Each notice shall be irrevocable and shall in each case refer to
this Agreement and specify all of the following: (i) the amount of the requested additional Capital
Contribution (which shall be in a minimum amount equal to the lesser of (x) $50,000 and (y) the
unutilized amount of the various Commitments)), (ii) the dollar amount of such Capital Contribution
allocated to each Member, and (iii) the related Acquisition Date. Each Additional Contribution
Amount to be made under this Section 2.4 shall be made on or before the related Acquisition Date by
wire transfer in Dollars of immediately available funds to the Borrower by not later than 1:00 p.m.
(Amsterdam time).

     SECTION 2.5. Investment.

Each Member shall and is hereby authorized to record in its internal books and records the date and
amount of each increase in its cash Capital Contributions and the amount of each distribution in
respect of its Shares; provided, that failure to make any recordation on such books and records or
any error in such books and records shall not adversely affect each Member’s rights under or

 

 

in connection with this Agreement or any other document executed in connection with the transaction
contemplated hereby.

ARTICLE III

CERTAIN AGREEMENTS AND OBLIGATIONS

     SECTION 3.1. Deficits.

     If required by Applicable Law (including applicable tax law), each Member may be required to
make payments to the Borrower in order to restore any deficit balance in its Capital Account.

ARTICLE IV

DISTRIBUTIONS AND ALLOCATIONS

     SECTION 4.1. Cash Distributions.

     (a) Except as set forth in Section 4.1(b) below, and subject to (1) Applicable Law (including,
without limitation, Section 54 of the Companies Act 1981 of Bermuda) and (2) reasonable reserves as
determined by the Company’s Board of Directors, on each Payment Date, the Net Cash Flow will be
distributed by way of dividend, distribution of contributed surplus or other distribution as
follows:

     Any and all Net Cash Flow shall be distributed to the Members in the following order of
priority: (A) first, to the Members in proportion to, and to the extent of, the positive balance
standing in each such Member’s Unrecovered Contribution Account, if any, and (B) thereafter, to the
Members in proportion to their respective Sharing Ratios.

     (b) Notwithstanding the provisions of Section 4.1(a) above, upon the liquidation of the
Company, all Net Cash Flow of the Company shall be distributed to the Members in proportion to, and
to the extent of, the positive balance standing in each such Member’s Capital Account (after taking
into account all Capital Account adjustments for the taxable year of such liquidation).

     (c) All amounts required to be withheld pursuant to the Applicable Law with respect to any
payment, distribution, or allocation to the Members shall be treated as amounts distributed to the
Members pursuant to this Section 4.1 for all purposes under this Agreement. The Borrower is
authorized to withhold from distributions, or with respect to allocations, to the Members and to
pay over to any federal, state, or local government any amounts required to be so withheld pursuant
to the Code or any provisions of any other Applicable Law, and shall allocate any such amounts to
the Members with respect to which such amount was withheld.

     (d) On the Closing Date, or as soon thereafter as practicable, the Company shall make an
additional special distribution to the Members in accordance with their respective Sharing Ratios
from loan proceeds received by the Company pursuant to the Loan Agreement.

 

 

     SECTION 4.2. Allocations of Book Net Income and Book Net Losses.

Book Net Income and Book Net Losses of the Company for each fiscal year (or part thereof) shall be
allocated at the end of such fiscal year (or part thereof) to the Members in proportion to their
respective Sharing Ratios.

     SECTION 4.3. Special Allocations.

Notwithstanding any other provisions of this Agreement, if United States federal income tax
principles are then applicable to any Member, then provisions of this Section 4.3 shall apply. No
allocation of Book Net Losses shall be made to any Member to the extent such an allocation would
cause a, or increase the, deficit balance standing in such Member’s Adjusted Capital Account and
any such Book Net Losses shall instead be allocated to the Members based upon their respective
“interests” in the Company as determined in accordance with Treasury Regulation Section 1.704-1(b).
In addition, items of income and gain shall be specially allocated to the Members in accordance
with the qualified income offset provisions set forth in Treasury Regulation Section
1.704-1(b)(2)(ii)(d). Notwithstanding any other provision in this Article IV, (i) any and all
“partnership nonrecourse deductions” (as defined in Treasury Regulation Section 1.704-2(b)(1)) of
the Company for any fiscal year or other period shall be allocated to the Members in proportion to
their respective Sharing Ratios; (ii) any and all “partner nonrecourse deductions” (as such term is
defined in Treasury Regulation Sections 1.704-2(i)(2)) attributable to any “partner nonrecourse
debt” (as such term is defined in Treasury Regulation Section 1.704-2(b)(4)) shall be allocated to
the Member that bears the “economic risk of loss” (as determined under Treasury Regulation Section
1.752-2) for such “partner nonrecourse debt” in accordance with Treasury Regulation Section
1.704-2(i)(l); (iii) each Member shall be specially allocated items of Company income and gain in
accordance with the partnership minimum gain chargeback requirements set forth in Treasury
Regulation Sections 1.704-2(f) and 1.704-2(g); and (iv) each Member with a share of the minimum
gain attributable to any “partner nonrecourse debt” shall be specially allocated items of Company
income and gain in accordance with the partner minimum chargeback requirements of Treasury
Regulation Sections 1.704-2(i)(4) and 1.704-2(i)(5). For purposes of determining the Members’
respective shares of Company nonrecourse liabilities pursuant to Section 752 of the Code and the
Treasury Regulations promulgated thereunder, (i) a Member’s interest in Company profits shall be
deemed to include the allocable share of minimum gain (as determined under Treasury Regulation
Section 1.704-2(g)), Code Section 704(c) gain and any Book Net Incomes allocable to such Member
pursuant to this Article IV, and (ii) such Company profits shall be deemed allocable to the Members
in the following order of priority: (a) first, to the Members to the extent of, and in proportion
to, their respective allocable shares of minimum gain, (b) second, to the Members to the extent of,
and in proportion to, their respective shares of Code Section 704(c) gain, (c) third, to the
Members to the extent of, and in proportion to, their respective negative Capital Account balances,
if any; and (d) thereafter, to the Members in proportion to their respective Sharing Ratios.

SECTION 4.4. Curative Allocations.

If United States federal income tax principles are then applicable to any Member, then the
provisions of this Section 4.4 shall apply. The effect of the limitation on the amount of Book Net
Losses and the qualified income offset provision set forth in the first two (2) sentences of
Section

 

 

4.3 above shall be taken into account in computing subsequent allocations of Book Net Income and
Book Net Losses pursuant to this Article IV, so that the net amount of any items so allocated and
the Book Net Income, Book Net Losses and all other items allocated to each Member pursuant to this
Article IV shall, to the extent possible, be equal to the net amount that would have been allocated
to each such Member pursuant to the provisions of this Article IV if such special allocations had
not occurred.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     SECTION 5.1. The Company.

As of the Closing Date and each date on which a Capital Contribution is made to the Company under
Section 2.2 hereof, the Company represents and warrants to each Member (and such representations
and warranties shall survive the Closing Date and each date on which such a Capital Contribution is
so made) that:

     (a) no Event of Default or Early Amortization Event (or event or condition which, with the
giving of notice or passage of time or both, would constitute an Event of Default or Early
Amortization Event) exists;

     (b) assuming the accuracy of the representation of the Members set forth in Section 5.2, the
offer and sale of the Shares in the manner contemplated by this Agreement is a transaction exempt
from the registration requirements of the Securities Act;

     (c) no information supplied by or on behalf of the Company to any Member in connection with
the transaction contemplated hereby contains any untrue statement of a material fact or omits to
state a material fact necessary to make the statements contained herein or therein not misleading
in light of the circumstances under which they were made;

     (d) the proceeds of each Capital Contribution will be used for the following purposes: (i) to
pay the Agreed Value of Eligible Containers and Related Transferred Assets, and any related
Acquisition Fees and Structuring/Arrangement Fees, and (ii) for general Company purposes; and

     (e) each of the representations and warranties, of the Company set forth in the Related Debt
Documents are true and correct and each of the Members are entitled to rely on such representations
and warranties with the same effect as if each such representation and warranty was set forth
therein.

     SECTION 5.2. Member.

     As of the date of the issuance of the Common Shares to MeesPierson and Cronos, each of
MeesPierson and Cronos warrants and represents to the parties and, as of the date of its admission
as a member in the Company, each Member, on a several basis, warrants and represents to the parties
hereto that:

 

 

     (a) such Member is not acquiring and has not acquired its Shares with a view to any
distribution thereof that would violate the Securities Act or the securities laws of any state of
the United States or any other applicable jurisdiction;

     (b) no form of general solicitation or general advertising (as those terms are used in
Regulation D under the Securities Act) has been or will be used by such Member or any of its
representatives in connection with the offer and sale of any of the Shares (as those terms are used
in Regulation D under the Securities Act to such Member);

     (c) such Member is aware that the Shares are highly speculative and that there can be no
assurance as to what return, if any, there may be;

     (d) such Member is aware of the Company’s business affairs and financial condition; has
acquired sufficient information about the Company to reach an informed and knowledgeable decision
to acquire its Shares; and has received an opportunity to ask questions relating to the Company’s
business, legal and financial affairs and to obtain all additional information which such Member or
his or her personal representative or professional adviser requested;

     (e) such Member does not have any contract, undertaking, agreement or arrangement with any
Person to sell, transfer, pledge or grant a participation in the Shares to be issued to such Member
to such person or to any third Person;

     (f) such Member understands that the Shares have not been registered under the Securities Act
or any other applicable securities law by reason of specific exemptions therefrom, which exemptions
may depend upon, among other things, the bona fide nature of the Members investment intent as
expressed herein;

     (g) such Member further understands that the Shares must be held indefinitely unless the
Shares are subsequently registered under the Securities Act and qualified under any applicable
securities law or are exempt from such registration and such qualification is available;

     (h) such Member has either (i) a preexisting business or personal relationship with the
Company or its directors or officers or (ii) by reason of such Member’s business or financial
experience, the capacity to protect such Member’s own interest in connection with the transaction
contemplated by this Agreement; and

     (i) such Member is able to bear the economic risk of this investment.

ARTICLE VI

CONDITIONS

SECTION 6.1. Conditions to Purchase of Common Shares.

     The purchase by Cronos of its Common Shares and its Capital Contribution with respect thereto
shall be subject to the execution and delivery of the Related Debt Documents and the satisfaction
of the conditions precedent set forth in the Related Debt Documents.

 

 

SECTION 6.2. Conditions to Each Additional Capital Contribution.

     No Member shall make an additional Capital Contribution under Section 2.2 hereof unless on the
date of such Capital Contribution, before and after giving effect thereto and to the application
of any proceeds therefrom, the following statements shall be true:

     (a) all of the conditions precedent set forth in the Related Debt Documents have been
fulfilled in all material respects;

     (b) the representations and warranties of the Company herein and in the other Related Debt
Documents are true and accurate in all material respects as of that date with the same effect as
though made on that date (unless specifically stated to relate to an earlier date);

     (c) no Event of Default or Early Amortization Event (or event or condition which, with the
giving of notice or passage of time or both, would constitute an Event of Default or Early
Amortization Event) has occurred and is continuing; and

     (d) each of the Containers to be acquired with the proceeds of such Capital Contribution shall
meet each of the Purchase Parameters then in effect.

     The giving of any notice pursuant to Section 2.4 shall constitute a representation and
warranty by the Company that the foregoing statements (limited, in the case of paragraph (b)
above), are true and correct as of the date of such Capital Contribution.

ARTICLE VII

GOVERNANCE

     SECTION 7.1. Member Inspection of Books.

     The Company shall keep complete and correct books and records of member proceedings; board and
committee meetings; and the names and addresses of all members, including the number and class of
shares held by each member and the dates when they became owners thereof (collectively called the
“books and records”). All Members shall have the right to inspect the books and records of the
Company upon providing the Company or its designated agent with five days written notice, subject
to Applicable Law.

     SECTION 7.2. Injunctive Relief; Specific Performance.

     Each of the Members acknowledges that his or its interest in the Agreement is unique to it,
that its Shares cannot be readily purchased or sold in the open market and that the other Members
and the Company will be irreparably damaged in the event of a breach or threatened breach of the
terms, covenants and/or conditions of this Agreement by any Member, which damages will not be
measurable or compensable in money damages unless this Agreement shall be specifically enforced.
In addition to any other remedy to which the other Members or the Company may be entitled, the
other Members or the Company shall be entitled to a preliminary and permanent injunction, without
showing any actual damage or threat of irreparable injury,

 

 

and/or a decree for specific performance, without any bond or other security being required in
connection therewith, in accordance with the provisions hereof.

     SECTION 7.3. Proportionality.

     The Company shall not issue further Common Shares (the “Further Shares”) to any Person unless
the Company also offers to issue, on the same terms as the issuance of the Further Shares, an
amount of Common Shares to the Members sufficient to maintain the Sharing Ratios in effect
immediately prior to such issuance of the Further Shares.

     SECTION 7.4. Directors of the Company.

     (a) The number of Directors of the Company shall be four (4), unless changed in accordance
with sub-paragraph (4) of Bye-Law 19 of the Company’s bye-laws. Two Directors shall be appointed
from time to time by Cronos and two Directors shall be appointed from time to time by MeesPierson.
The vote of the Directors required to take any action as Directors shall be as set forth in the
Company’s Bye-laws.

     (b) Each Member covenants that during the term of this Agreement such Member will vote for the
election and re-election of the designees of Cronos and MeesPierson to serve as Directors of the
Company, as long as each of them is a Member or is directly or indirectly in control of a Member.
All powers and discretion given to Cronos and MeesPierson under this Section 7.4(b) shall devolve
upon and be exercisable by their respective assigns, successors and legal representatives.

     (c) Cronos hereby confirms its designation of Dennis J. Tietz and Peter J. Younger, and
MeesPierson hereby confirms its designation of Merijn Zondag and Milton Anderson, as Directors, and
the Members hereby confirm their designation of each of such Persons as Directors of the Company
until such person’s successor is elected and has qualified or until such person’s earlier
resignation or removal. The Directors designated by Cronos may designate one person and the
Directors designated by MeesPierson may designate one person (each an “Authorized Person”) for
purposes of authorizing the sale of one or more Containers in a manner or in an amount that falls
outside the normal parameters permitted under Clause 3.1(a)(vii) of the Management Agreement, in
which case the Company shall be authorized to take such actions if both persons so designated
approve such action in writing.

     By authorizing the Company to enter into this Agreement, the Directors designated by Cronos
hereby initially designate Peter J. Younger as an Authorized Person and the Directors designated by
MeesPierson hereby initially designate Milton Anderson as an Authorized Person.

ARTICLE VIII

MISCELLANEOUS PROVISIONS

     SECTION 8.1. Amendments.

     The parties hereto shall not amend, waive or otherwise modify any provision of this Agreement,
consent to any departure therefrom, or grant any waiver or consent thereunder,

 

 

unless such amendment, waiver or modification is in writing and signed by the each of the
parties hereto.

     SECTION 8.2. No Waiver; Remedies.

     Any waiver, consent or approval given by any party hereto shall be effective only in the
specific instance and for the specific purpose for which given, and no waiver by a party of any
breach or default under this Agreement shall be deemed a waiver of any other breach or default. No
failure on the part of any party hereto to exercise, and no delay in exercising, any right, power
or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise
of any right, power or privilege hereunder, or any abandonment or discontinuation of steps to
enforce the right, power or privilege, preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. Except as specifically provided in this Agreement,
no notice to or demand on any party hereto in any case shall entitle such party to any other or
further notice or demand in the same, similar or other circumstances. The remedies herein provided
are cumulative and not exclusive of any remedies provided by law.

SECTION 8.3. Restrictions on Transfers; Assignment; Successors and Assigns.

     (a) No Member shall sell, make any short sale of, loan, pledge, grant any option for the
purchase of, or otherwise transfer or dispose of (each referred to as “Transfer”) any of its Shares
or assign its rights and obligations under this Agreement except in accordance with this Section
8.3.

     (b) No Member shall Transfer its Shares if such Transfer (i) would not be in full compliance
with the Securities Act and the securities laws of the applicable states of the United States and
any other applicable jurisdiction (to the extent that any such laws would then be applicable to
such Transfer), (ii) would cause a termination of the Company under the U.S. Internal Revenue Code
of 1986, as amended from time to time, the provisions of succeeding law, and to the extent
applicable, the regulations currently in force as final or temporary that have been issued by the
U.S. Department of Treasury pursuant to its authority thereunder (to the extent that any such laws
would then be applicable to such Transfer), or (iii) would result in a violation of any provision
of any Related Debt Document or any other agreement by which such Member is bound.

     (c) Subject to the foregoing and subject to the Company’s bye-laws, either of Cronos or
MeesPierson may Transfer its Shares to an Affiliate or to another Member, provided that the
transferor or such transferee bears all liabilities, costs and expenses incurred by the Company,
Manager or any other Member in connection with such Transfer and provided further that such
transferee in writing accepts and adopts all of the terms and conditions of this Agreement, as the
same may have been amended in a written document acceptable to the Company’s Directors.

     (d) Except as provided in Section 8.3(c), no Member shall Transfer its Shares without the
approval of such Transfer as a Super-Majority Matter (as defined in the Company’s bye-laws) in
accordance with the Company’s bye-laws. No Transfer of Shares in accordance with the Company’s
bye-laws shall be effective unless (i) the transferor or such transferee bears all liabilities,
costs and expenses incurred by the Company, Manager or any other Member in

 

 

connection with such Transfer and (ii) such transferee in writing accepts and adopts all of
the terms and conditions of this Agreement, as the same may have been amended in a written document
acceptable to the Company’s Directors.

     (e) Subject to the provisions of this Section 8.3, this Agreement shall be binding upon, and
inure to the benefit of, the Company and each Member and their respective affiliates, successors
and permitted assigns.

     SECTION 8.4. Entire Agreement.

     This Agreement, including the exhibits, appendices and schedules thereto, together with the
bye-laws, the Loan Agreement, the Management Agreement and the Purchase Agreement, contains a final
and complete integration of all prior expressions by the parties hereto with respect to the subject
matter hereof and shall constitute the entire agreement among the parties hereto with respect to
the subject matter hereof, superseding all previous oral statements and other writings with respect
thereto.

     SECTION 8.5. Notices.

     All communications hereunder shall be in writing and shall be deemed to have been duly given
if personally delivered, sent by overnight courier or mailed by registered mail, postage prepaid
and return receipt requested, or transmitted by facsimile transmission and confirmed by a similar
mailed writing to any party at the address for that party set forth (a) on the signature page to
this Agreement or (b) to another address as that party may designate in writing.

     SECTION 8.6. No Third-Party Beneficiaries.

     Nothing expressed herein is intended or shall be construed to give any Person (other than the
parties hereto) any legal or equitable right, remedy or claim under or in respect of this
Agreement.

     SECTION 8.7. Severability of Provisions.

     Any covenant, provision, agreement or term of this Agreement that is prohibited or is held to
be void or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to
invalidate the remaining provisions of this Agreement.

     SECTION 8.8. Counterparts.

     This Agreement may be executed in any number of counterparts (which may include facsimile) and
by the different parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original, and all of which together shall constitute one and the same instrument.

     SECTION 8.9. Governing Law.

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICT OF LAWS

 

 

PRINCIPLES, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     SECTION 8.10. No Petition Against the Company.

     Each of the parties hereto covenants and agrees that it will not at any time, until one year
and one day after all of the aggregate Outstanding Obligations shall have been paid in full,
institute against the Company, or join in any institution against the Company of, any bankruptcy,
winding-up, reorganization, arrangement, insolvency or liquidation proceedings under any United
States federal or state bankruptcy or foreign bankruptcy law. This provision shall survive the
termination of this Agreement.

     SECTION 8.11. Fiduciary Duties.

     No Member shall have any obligations (fiduciary or otherwise) with respect to the Company or
to the other Members insofar as making other investment opportunities available to the Company or
to the other Members. Each Member may engage in whatever activities such Member may choose,
whether the same are competitive with the Company or otherwise, without having or incurring any
obligation to offer any interest in such activities to the Company or to the other Members. Except
as set forth in the foregoing provisions of this Section 8.11, neither this Agreement nor any
activities undertaken pursuant hereto shall prevent any Member from engaging in such activities,
and the fiduciary duties of the Members to each other and to the Company shall be limited solely to
those arising from the purposes of the Company.

     SECTION 8.12. Reimbursements.

     Each Member shall be reimbursed by the Company from the first available funds for all legal
fees and costs incurred by such Member in connection with the drafting, negotiation, execution and
delivery of this and future amendments to this Agreement, the bye-laws, the Loan Agreement, the
Management Agreement, the Purchase Agreement and any other Transaction Document.

     SECTION 8.13. Acquisition of Additional Containers.

     During the term of the Management Agreement, the Manager shall offer to the Company, prior to
making similar offers to other Persons (other than any public limited partnerships administered by
Cronos or any of its Affiliates), the opportunity to purchase on an annual basis Containers
complying with the Purchase Parameters and having an aggregate initial purchase price of up to
Sixty Million Dollars ($60,000,000); provided, however, that if the Company lacks sufficient
available funds under the Loan Agreement or this Agreement to effectuate such purchases, the
Manager’s obligations under this Section 8.13 shall be of no force or effect.

     SECTION 8.14. Mandatory Redemption Upon Change of Control.

     If a Change of Control occurs with respect to either the Manager or The Cronos Group, then The
Cronos Group shall, at the direction of the Agent, cause the Manager to purchase all assets of the
Borrower from the Borrower at a purchase price (i) with respect to the New

 

 

Containers and the Category 2 Containers, equal to one hundred ten percent (110%) of the then
existing Net Book Value of such assets and (ii) with respect to all other assets of the Borrower,
equal to one hundred percent (100%) of the then existing Net Book Value of such assets.
Simultaneously with such purchase, the Borrower shall, at the direction of the Agent, redeem the
Notes by not later than the sixtieth (60th) day after receipt of notice requesting such
redemption for a purchase price equal to the then Aggregate Principal Balance plus all accrued
interest thereon and all other amounts owing pursuant to the Loan Agreement and the other
Transaction Documents.

     SECTION 8.15. Confidentiality.

     Each of parties hereto agree that it and its shareholders, directors, agents, accountants and
attorneys shall keep confidential the terms of this agreement, except as may be otherwise required
by regulation, law or court order or required by appropriate governmental authorities or as
necessary to preserve its rights or security under or to enforce any Transaction Documents.

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
duly authorized officers and delivered as of the day and year first above written.

	 	 	 	 	 
	 	 	CF LEASING LTD.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ PETER J. YOUNGER
	 

	 	Name:
	 	Peter J. Younger
	 

	 	Title:
	 	Director
	 
	 	 	 	 
	 

	 	Address:
	 	CF Leasing Ltd.
	 

	 	 	 	Clarendon House
	 

	 	 	 	Church Street
	 

	 	 	 	Hamilton HM 11, Bermuda
	 
	 	 	 	 
	 

	 	Attention:
	 	Secretary
	 

	 	Telephone:
	 	(441) 295-1422
	 

	 	Facsimile:
	 	(441) 292-4720
	 
	 	 	 	 
	 

	 	with copy to:	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	Cronos Containers Limited
	 

	 	 	 	The Ice House
	 

	 	 	 	Dean Street
	 

	 	 	 	Marlow
	 

	 	 	 	Buckinghamshire SL7 3AB
	 

	 	 	 	England
	 
	 	 	 	 
	 

	 	Attention:
	 	Peter J. Younger
	 

	 	Telephone:
	 	44 1628-405580
	 

	 	Facsimile:
	 	44 1628-405648

 

 

	 	 	 	 	 
	 	 	CRONOS EQUIPMENT (BERMUDA) LIMITED
	 
	 	 	 	 
	 

	 	By:
	 	/s/ PETER J. YOUNGER
	 

	 	Name:
	 	Peter J. Younger
	 

	 	Title:
	 	Director
	 
	 	 	 	 
	 

	 	Address:
	 	Cronos Equipment (Bermuda) Limited,
	 

	 	 	 	Clarendon House
	 

	 	 	 	2 Church Street West
	 

	 	 	 	Hamilton HM 11
	 

	 	 	 	Bermuda
	 
	 	 	 	 
	 

	 	Attention:
	 	Peter J. Younger
	 

	 	Telephone:
	 	(441) 295-1422
	 

	 	Facsimile:
	 	(441) 292-4720
	 
	 	 	 	 
	 

	 	with copy to:	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	Cronos Containers Limited
	 

	 	 	 	The Ice House
	 

	 	 	 	Dean Street
	 

	 	 	 	Marlow
	 

	 	 	 	Buckinghamshire SL7 3AB
	 

	 	 	 	England
	 
	 	 	 	 
	 

	 	Attention:
	 	Chief Financial Officer
	 

	 	Telephone:
	 	(44) 1628-405605
	 

	 	Facsimile:
	 	(44) 1628-405646

 

 

	 	 	 	 	 
	 	 	MEESPIERSON TRANSPORT & LOGISTICS
	 	 	HOLDING B.V.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ ZONDAG
	 

	 	Name:
	 	Zondag
	 

	 	Title:
	 	Director
	 
	 	 	 	 
	 

	 	Address:
	 	MeesPierson Transport & Logistics
	 

	 	 	 	Holding B.V.
	 

	 	 	 	c/o Fortis Bank (Nederland) N.V.
	 

	 	 	 	Coolsingel 93
	 

	 	 	 	P.O. Box 749
	 

	 	 	 	3000 AS Rotterdam
	 

	 	 	 	The Netherlands
	 
	 	 	 	 
	 

	 	Attention:
	 	Merijn Zondag
	 

	 	Facsimile:
	 	31 10 401 63 43

 

 

By executing this Agreement, the undersigned hereby agrees to comply with the provisions of Section
8.13 of this Agreement.

	 	 	 	 	 
	 	 	CRONOS CONTAINERS (CAYMAN) LTD.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ DENNIS J. TIETZ
	 

	 	Name:
	 	Dennis J. Tietz
	 

	 	Title:
	 	Director
	 
	 	 	 	 
	 

	 	Address:
	 	Cronos Containers (Cayman) Ltd.
	 

	 	 	 	P.O. Box 30464 SMB
	 

	 	 	 	Queensgate House
	 

	 	 	 	George Town Grand Cayman
	 

	 	 	 	Cayman Islands
	 
	 	 	 	 
	 

	 	Attention:	 	 
	 

	 	Telephone:	 	 
	 

	 	Telefax:	 	 

 

 

By executing this Agreement, the undersigned hereby agrees to comply with its contingent
repurchase obligation set forth in Section 8.14 of this Agreement.

	 	 	 	 	 
	 	 	THE CRONOS GROUP
	 
	 	 	 	 
	 

	 	By:
	 	/s/ DENNIS J. TIETZ
	 

	 	Name:
	 	Dennis J. Tietz
	 

	 	Title:
	 	Director
	 
	 	 	 	 
	 

	 	Address:
	 	The Cronos Group
	 

	 	 	 	16 Allée Marconi
	 

	 	 	 	L-2120 Luxembourg
	 
	 	 	 	 
	 

	 	Attention:
	 	Chief Executive Officer
	 

	 	Telephone:
	 	                    
	 

	 	Facsimile:
	 	(352) 653-147

 

 

EXHIBIT C

to Members Agreement

STATED AMOUNTS AND PERCENTAGES

FOR MEMBERS

	 	 	 	 	 
	 	 	Sharing Ratio	 	Aggregate Commitment
	Name of Member	 	 	 	on the Closing Date
	 
	 	 	 	 
	Cronos Equipment (Bermuda) Limited
	 	50%	 	$10,000,000
	 
	 	 	 	 
	MeesPierson Transport & Logistics
Holding B.V.
	 	50%	 	$10,000,000

 

 

 

MEMBERS AGREEMENT

dated as of September 18, 2002

among

CF LEASING LTD.,

as Company

and

MEESPIERSON TRANSPORT & LOGISTICS HOLDING B.V.

and

CRONOS EQUIPMENT (BERMUDA) LIMITED,

as Members

 

 

 

	 	 	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS; SHARE SUBSCRIPTION	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 1.1.	 	Definitions.	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II PURCHASE OF SHARES AND ADDITIONAL INVESTMENTS	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.1.	 	Capital Contributions for Shares.	 	 	8	 
	 
	 	SECTION 2.2.	 	Capital Contributions for Purchase of Eligible Containers.	 	 	9	 
	 
	 	SECTION 2.3.	 	[Reserved].	 	 	10	 
	 
	 	SECTION 2.4.	 	Procedures for Additional Capital Contributions.	 	 	10	 
	 
	 	SECTION 2.5.	 	Investment.	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III CERTAIN AGREEMENTS AND OBLIGATIONS	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 3.1.	 	Deficits.	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV DISTRIBUTIONS AND ALLOCATIONS	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 4.1.	 	Cash Distributions.	 	 	11	 
	 
	 	SECTION 4.2.	 	Allocations of Book Net Income and Book Net Losses.	 	 	12	 
	 
	 	SECTION 4.3.	 	Special Allocations.	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.1.	 	The Company.	 	 	13	 
	 
	 	SECTION 5.2.	 	Member.	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI CONDITIONS	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.1.	 	Conditions to Purchase of Common Shares.	 	 	14	 
	 
	 	SECTION 6.2.	 	Conditions to Each Additional Capital Contribution.	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII GOVERNANCE	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 7.1.	 	Member Inspection of Books.	 	 	15	 
	 
	 	SECTION 7.2.	 	Injunctive Relief; Specific Performance.	 	 	15	 
	 
	 	SECTION 7.3.	 	Proportionality.	 	 	16	 
	 
	 	SECTION 7.4.	 	Directors of the Company.	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII MISCELLANEOUS PROVISIONS	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 8.1.	 	Amendments.	 	 	16	 
	 
	 	SECTION 8.2.	 	No Waiver; Remedies.	 	 	17	 
	 
	 	SECTION 8.3.	 	Restrictions on Transfers; Assignment; Successors and Assigns.	 	 	17	 
	 
	 	SECTION 8.4.	 	Entire Agreement.	 	 	18	 
	 
	 	SECTION 8.5.	 	Notices.	 	 	18	 
	 
	 	SECTION 8.6.	 	No Third-Party Beneficiaries.	 	 	18	 
	 
	 	SECTION 8.7.	 	Severability of Provisions.	 	 	18	 
	 
	 	SECTION 8.8.	 	Counterparts.	 	 	18	 
	 
	 	SECTION 8.9.	 	Governing Law.	 	 	18	 
	 
	 	SECTION 8.10.	 	No Petition Against the Company.	 	 	19	 
	 
	 	SECTION 8.11.	 	Fiduciary Duties.	 	 	19	 
	 
	 	SECTION 8.12.	 	Reimbursements.	 	 	19	 

 

 

	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 8.13.	 	Acquisition of Additional Containers.	 	 	19	 
	 
	 	SECTION 8.14.	 	Mandatory Redemption Upon Change of Control.	 	 	19	 
	 
	 	SECTION 8.15.	 	Confidentiality.	 	 	20	 

EXHIBIT A List of Containers

EXHIBIT B Stated Amounts and Percentage for Members

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