Document:

Exhibit 4.1

THIS SECURITY (OR ITS PREDECESSOR) WAS
ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS
SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS
SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON
AN EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT.

THE HOLDER OF THIS SECURITY AGREES FOR THE
BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED
OR OTHERWISE TRANSFERRED, ONLY (I) IF THIS SECURITY IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (II) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (III) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (IV) TO THE COMPANY OR ANY OF
ITS SUBSIDIARIES, OR (V) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED ON AN OPINION OF
COUNSEL ACCEPTABLE TO THE COMPANY), IN EACH OF CASES (I) THROUGH (V) IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY SUBSEQUENT PURCHASER OF THIS SECURITY FROM IT OF THE RESALE  RESTRICTIONS REFERRED TO IN CLAUSE (A) ABOVE.

SIRVA,
INC.

10%
CONVERTIBLE NOTE DUE JUNE 1, 2011

	
  $____________

  	
   

  	
  September 29, 2006

  

 

SIRVA,
Inc., a Delaware Corporation (the “Company” which term includes any
successor Company or other successor business entity), for value received,
hereby promises to pay to _____________ (or its successors and permitted
assigns)(“Holder”), the principal sum of _________ Dollars
($___________) (the “Principal Amount”) on the Maturity Date (as defined
below), together with accrued interest on the unpaid balance of the principal
amount of this Note

 

 

 at the rate of ten percent (10%) per
annum.  The maturity date under this Note
shall be June 1, 2011 (the “Maturity Date”).  Certain defined terms used in this Note have
the meanings assigned to them in Section 21.

1.                     Interest.

(a)           Cash Interest.  Interest (“Interest”) on this Note
shall accrue on the unpaid principal at a per annum rate of 10% beginning on
the Issuance Date.  Interest shall be
payable in cash quarterly in arrears on the Quarterly Interest Payment Date and
on the Maturity Date or any other Date this Note is paid in full, commencing on
the first Quarterly Interest Payment Date following the Issuance Date.  Any Interest accrued and not paid on any
Quarterly Interest Payment date shall be added to the principal sum outstanding
and thereafter accrue additional interest in respect thereof at the per annum
rate set forth above, notwithstanding that the failure to pay Interest on any
Quarterly Interest Payment Date also may be considered an Event of Default
under Section 5.  Interest will be
computed on the basis of a 365-day year and actual
days elapsed.

(b)           Common Stock Interest.  If a Conversion Event has not occurred by May
31, 2007, the Company shall pay interest in addition to all other interest
payable under this Note in the form of 
Common Stock on each Quarterly Interest Payment Date thereafter (“Common
Stock Interest”).  The Common Stock
Interest shall be equal to 2% per annum of the outstanding principal amount
hereof, with one quarter of such amount to be issued as Common Stock on each
Quarterly Interest Payment Date at a conversion value of $3.00 per share,
rounding down to the  next whole share
amount.  All such shares shall be issued
in the name of the Holder or its designee and shall be fully paid and
non-assessable and subject only to transfer restrictions which are similar to
those set forth in the Securities Purchase Agreement.

2.                     Payments
of Principal.  On the Maturity Date or upon redemption in
accordance with Section 6, the Company shall pay to the Holder an amount in
cash equal to the Principal Amount plus any accrued but unpaid Interest
and Common Stock Interest to, but not including, the date of payment.

3.                     Method of Payment.  The Company shall pay the Principal Amount
and any accrued Interest in currency of the United States that at the time of
payments is legal tender for payment of public and private debts.  Payments shall be made to the Holder by wire
transfer of immediately available funds to the account designated in writing by
the Holder or by such other means designated in writing by the Holder and provided
to the Company at least five Business Days before any such payment.  If the Principal Amount, accrued Interest and
Common Stock Interest on this Note are not paid in accordance with its terms,
the Company shall pay to the Holder, in addition to the Principal Amount and
accrued Interest and Common Stock 

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Interest thereon, all costs of collection of the
Principal Amount and accrued Interest and Common Stock Interest, including, but
not limited to, reasonable attorneys’ fees, court costs and other costs for the
enforcement of payment of this Note.

4.                     Conversion.

(a)           Conversion after Conversion Event.  Upon the Conversion Event, each $1,000 of the
Original Principal Amount shall automatically convert into one (1) share (“Conversion
Shares”) of Convertible Preferred Stock, subject to any applicable laws.

(b)           Covenants.  The Company covenants and agrees that so long
as this Note is outstanding, (i) the Company shall have authorized and reserved
a sufficient number of shares of Convertible Preferred Stock to enable the
Holder to convert this Note into Convertible Preferred Stock, in addition to
any other terms and preferences agreed to by the Holder in writing, and (ii)
the Company shall issue the shares of Convertible Preferred Stock upon
conversion of this Note in accordance with the terms hereof.  The Company further covenants to cause the
shares of Convertible Preferred Stock, when issued pursuant to this Section 4,
to be fully paid and nonassessable, and free from all taxes, liens and charges
with respect to the issuance thereof (other than any liens that may be imposed
pursuant to applicable securities laws).

(c)           Procedure.   The Company shall immediately provide
written notice to the Holder after the Conversion Event.  Upon prompt surrender of the Note to the
Company by the Holder after the Conversion Event, the Company shall issue and
deliver the Conversion Shares to the Holder on behalf of the Company and pay
any accrued and unpaid Interest and Common Stock Interest owed to the Holder up
to and including the Conversion Date. 
The Holder shall be deemed to have become the holder of record of, and
shall be treated for all purposes as the record holder of, the Conversion
Shares issuable hereunder (and such Conversion Shares shall be deemed to have
been issued) the day following the Conversion Date.

5.                     Events of Default; Rights Upon Event of
Default

(a)           Events of Default.  Each of the following events shall constitute
an “Event of Default”:

(i)            the Company’s failure to pay to the
Holder any amount of Principal, Interest, Common Stock Interest or other
amounts when and as due under this Note (including, without limitation, the
Company’s failure to pay any redemption payments or amounts hereunder), which
such failure continues for a period of at least 30 days;

(ii)           default in the performance, or breach,
of any covenant or warranty of the Company in the Transaction Documents or any
other agreement, document, certificate or other instrument delivered in
connection with the transactions contemplated hereby and thereby to which the
Holder is a party and continuance of such default or breach for a period of 30
days after there has been given, by registered or certified mail, to the
Company by a Holder of at least 20% in principal amount of the then outstanding
Notes a written notice specifying such default 

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or breach and requiring
it to be remedied and stating that such notice is a “notice of default”
hereunder;

(iii)          a default under any bonds, debentures,
notes or other evidences of indebtedness for money borrowed of the Company or
under any mortgages, indentures or instruments under which there may be issued
or by which there may be secured or evidenced any indebtedness for money
borrowed by the Company, whether such indebtedness now exists or shall
hereafter be created, which indebtedness, individually or in the aggregate, has
a principal amount outstanding in excess of $10,000,000, which default shall
have resulted in such indebtedness becoming or being declared due and payable
prior to the date on which it would otherwise have become due and payable, without
such indebtedness having been discharged, or such acceleration having been
rescinded or annulled, within a period of 30 days after there shall have been
given, by registered or certified mail, to the Company by the Holders of at
least 20% in principal amount of the then outstanding Notes, a written notice
specifying such default and requiring the Company to cause such indebtedness to
be discharged or cause such acceleration to be rescinded or annulled and
stating that such notice is a “notice of default” hereunder (unless such
default has been cured or waived);

(iv)          a final judgment or judgments for the
payment of money aggregating in excess of $10,000,000 are rendered against the
Company or any of its Subsidiaries and which judgments are not, within 30 days
after the entry thereof, bonded, discharged or stayed pending appeal, or are
not discharged within 30 days after the expiration of such stay; provided,
however, that any judgment which is covered by insurance or an indemnity from a
credit worthy party shall not be included in calculating the $10,000,000 amount
set forth above so long as the Company provides the Holder a written statement
from such insurer or indemnity provider (which written statement shall be
reasonably satisfactory to the Holder) to the effect that such judgment is
covered by insurance or an indemnity and the Company will receive the proceeds
of such insurance or indemnity within 30 days of the issuance of such judgment;

(v)           the Company or any Subsidiary (as
defined in the Securities Purchase Agreement) pursuant to or within the meaning
of any Bankruptcy Law:

(1)           commences a voluntary case,

(2)           consents to the entry of an order for
relief against it in an involuntary case,

(3)           consents to the appointment of a
Custodian of it or for all or substantially all of its property, or

(4)           makes a general assignment for
the benefit of its creditors; or

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(5)           a court of competent jurisdiction
enters an order or decree under any Bankruptcy Law that:

(a)           is for relief against the Company or
any Subsidiary in an involuntary case,

(b)           appoints a Custodian of the Company
or any Subsidiary or for all or substantially all of the property of any of
them, or

(c)           orders the winding up or liquidation
of the Company or any Subsidiary, and the order or decree remains unstayed and
in effect for 30 days.

As used in this Section 5(a), the term “Bankruptcy Law” means
title 11, U.S.  Code or any similar
Federal or State law for the relief of debtors and the term “Custodian”
means any receiver, trustee, assignee, liquidator or other similar official
under any Bankruptcy Law.

(b)           Consequences of Event of Default.  Promptly after the Company has
knowledge of the occurrence of an Event of Default or any event which with the
giving of notice or the passage of time, or both, could become such an Event of
Default with respect to this Note or any other Note, the Company shall deliver
written notice thereof via facsimile and overnight courier to the Holder.  At any time after the occurrence and during
the continuance of an Event of Default, the Holder may require the Company to
redeem this Note.  The Holder may effect
the redemption by sending written notice (“Redemption Notice”) to the
Company stating the Holder has elected to exercise the redemption option,
surrendering the Note and providing payment instructions.  The Company shall have ten days to pay the Principal
Amount plus any accrued but unpaid Interest and Common Stock Interest up to and
including the payment date (“Redemption Price”) upon receipt of the Redemption Notice. 
The Company shall pay the Redemption Price in cash (except for any
accrued Common Stock Interest).The Holder shall be entitled to seek any
available remedy for the enforcement of this Note, including for the payment of
any Redemption Price).  Nothing shall
preclude the Holder from pursuing or obtaining specific performance or other
equitable relief with respect to this Note.

6.                     Redemption.

(a)           Fundamental Change Redemption.  The Holder shall have the option to have the
Company redeem the Note at the Redemption Price if a Fundamental Change occurs
(“Fundamental Change Redemption”). 
The Holder may effect the Fundamental Change Redemption, by delivering a
Redemption Notice to the Company stating the Holder has elected to exercise the
Fundamental Change Redemption, surrendering the Note and providing payment
instructions.  The Company shall have ten
days to pay the Redemption Price upon receipt of the Redemption Notice.  The Company shall pay the Redemption Price in
cash (except for any accrued Common Stock Interest).

(b)           Limitation on Fundamental Change
Redemption.  A Fundamental Change
Redemption is subject to the Company’s obligation to repay or repurchase any
Indebtedness that 

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may be required to be
repaid or repurchased in connection with a Fundamental Change and to any
contractual restrictions contained in the terms of any Indebtedness that the
Company has at that time.  If a
Redemption Option is exercised at a time when the Company is prohibited from
redeeming this Note for cash under the terms of any Indebtedness, the Company
shall use reasonable best efforts to obtain the consent of its lenders to
redeem this Note for cash or attempt to refinance the debt containing such
prohibition.

7.                     Limitation on Indebtedness.  As long as the Notes remain outstanding, the
Company shall not, without the prior written consent of the holders of the Notes representing at least a majority of the
aggregate principal amount of the Notes, create or issue any series or
class of stock, any promissory notes or incur other Indebtedness which ranks senior to the Notes in right of payment, whether
in respect of payment of redemptions, interest, damages or upon liquidation or
dissolution or otherwise after the date hereof, except such consent
shall not be necessary for Indebtedness pursuant to the Credit Agreement or
relating to a refinancing of the Credit Agreement (defined below) and
Indebtedness relating to working capital not to exceed $50,000,000 in the
aggregate.

8.                     Existence
of Liens.  So long as the Notes remain outstanding, the Company shall not, and the Company shall not
permit any of its Subsidiaries to, directly or indirectly, allow or suffer to
exist any mortgage, lien, pledge, charge, security interest or other
encumbrance upon or in any property or assets (including accounts and contract
rights) owned by the Company or any of its Subsidiaries other than Permitted
Liens and Liens permitted by the Credit Agreement.

9.                     Restriction
on Redemption and Dividends.  So long as the Notes remain
outstanding, the Company shall not,
directly or indirectly, (A) repurchase (other than the repurchase of shares of
Common Stock from employees in connection with loans made to such employees
prior to the date hereof), redeem, or declare or pay any cash dividend or
distribution on, the Common Stock or (B) distribute any material
property or assets of any kind to holders of the Common Stock in respect of the
Common Stock.

10.                   Amendment
and Waiver.

(a)           Consent Required.  Any term, covenant, agreement or condition of
this Note may, with the consent of the Company and the Holders, be amended or
compliance therewith may be waived (either generally or in a particular
instance and either retroactively or prospectively) if the Company shall have
obtained the consent in writing of the Holders of at least 50% in principal
amount of the then outstanding Notes.

(b)           Effect of Amendment or Waiver.  Any amendment or waiver shall be binding upon
each future holder of this Note and upon the Company and the Holder, whether or
not this Note shall have been marked to indicate such amendment or waiver.  No such amendment or waiver shall extend to
or affect any obligation not expressly amended or waived or impair any right
consequent thereon.

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11.                   Transfer.  This Note (or any portion of it) and any
shares of Convertible Preferred Stock issued upon conversion of this Note may
be offered, sold, assigned or transferred by a Holder without the consent of
the Company, subject only to the provisions of Sections 2(d) and 2(e) of the
Securities Purchase Agreement.

12.                   Reissuance Of A Note.  

(a)           Transfer.  If this Note is to be transferred, the Holder
shall surrender this Note to the Company, whereupon the Company will forthwith
issue and deliver upon the order of the Holder a new Note (in accordance with
Section 12(c)), registered as the Holder may request, representing the
Principal Amount being transferred by the Holder.

(b)           Lost, Stolen or Mutilated Note.  Upon receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Note, and, in the case of loss, theft or destruction, of an
indemnity bond in the Principal Amount of the Note and an indemnification
undertaking by the Holder to the Company, which undertaking shall be reasonably
satisfactory to the Company, and, in the case of mutilation, upon surrender and
cancellation of this Note, the Company shall execute and deliver to the Holder
a new Note (in accordance with Section 12(c)) representing the Principal
Amount.

(c)           Issuance of New Notes.  Whenever the Company is required to issue a
new Note pursuant to the terms of this Note, such new Note (i) shall be of like
tenor with this Note, (ii) shall represent, as indicated on the face of such
new Note, the Principal Amount, (iii) shall have an issuance date, as indicated
on the face of such new Note, which is the same as the Issuance Date of this
Note and (iv) shall have the same rights and conditions as this Note.

13.                   Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief.  The remedies provided in this Note shall be
cumulative and in addition to all other remedies available under this Note and
any of the other Transaction Documents, at law or in equity (including a decree
of specific performance and/or other injunctive relief), and nothing herein
shall limit the Holder’s right to pursue actual damages for any failure by the
Company to comply with the terms of this Note. 
Amounts set forth or provided for herein with respect to payments,
conversion and the like (and the computation thereof) shall be the amounts to
be received by the Holder and shall not, except as expressly provided herein,
be subject to any other obligation of the Company (or the performance
thereof).  The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the
Holder and that the remedy at law for any such breach may be inadequate.  The Company therefore agrees that, in the
event of any such breach or threatened breach, the Holder shall be entitled, in
addition to all other available remedies, to an injunction restraining any
breach, without the necessity of showing economic loss and without any bond or
other security being required.

14.                   Payment of Collection,
Enforcement and Other Costs.  If (a)
this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the Holder
otherwise takes action to collect amounts due under this Note or to enforce the
provisions of this Note or (b) there occurs any bankruptcy, 

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reorganization, receivership of the Company or other
proceedings affecting Company creditors’ rights and involving a claim under
this Note, then the Company shall pay the reasonable costs incurred by the
Holder for such collection, enforcement or action or in connection with such
bankruptcy, reorganization, receivership or other proceeding, including, but
not limited to, reasonable attorneys’ fees and disbursements.

15.                   Failure or Indulgence not
Waiver.  No failure or delay on the
part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof
or of any other right, power or privilege.

16.                   Cancellation.  After the Principal Amount, accrued Interest
and Common Stock Interest and other amounts at any time owed on this Note have
been paid in full, this Note shall automatically be deemed canceled, shall be
surrendered to the Company for cancellation and shall not be reissued.

17.                   Notices.  All notices, requests, consents and demands
shall be made in writing and shall be given by fax or registered or certified
mail postage prepaid to the following addresses:

if to the Company, to

SIRVA, Inc.

700 Oakmont Lane

Westmont, IL 60559

Facsimile:  (630) 468-4706

Attention:  General Counsel

with a copy to:

Debevoise & Plimpton LLP

919 Third Avenue

New York, NY  10022

Facsimile: 
(212) 909-6836

Attention: 
Paul Brusiloff, Esq.

if to the Holder, to:

[_________________]

[_________________]

[_________________]

Attention: [________]

Facsimile: [________]

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with a copy to:

[_________________]

[_________________]

[_________________]

Attention: [________]

Facsimile: [________]

or to such other address
as may be furnished in writing to the Company or the Holder, as
applicable.  Unless otherwise indicated
herein, notices hereunder shall be effective (and deemed to be received) when
delivered, if delivered personally, or, if sent by mail, when mailed or, if faxed,
when faxed during normal business hours (with written confirmation of
receipt).  The Company hereby expressly
waives presentment, demand, and protest, notice of demand, dishonor and
nonpayment of this Note, and all other notices or demands of any kind in
connection with the delivery, acceptance, performance, default or enforcement
hereof, and hereby consents to any delays, extensions of time, renewals,
waivers or modifications that may be granted or consented to by the Holder with
respect to the time of payment or any other provision thereof.

18.                   Governing
Law.  This Note shall be deemed a
contract under, and shall be governed and construed in accordance with, the
laws of the State of New York without giving effect to principles of conflicts
of laws.

19.                   Successors, etc.; Entire
Agreement; Assignment.  This Note
shall be binding upon the Company and its successors and assigns (but the
obligations of the Company hereunder may not be transferred without the written
consent of the Holder) and shall inure to the benefit of the Holder and its
respective successors and assigns.  This
Note constitutes the entire agreement between the parties, superseding all
prior understandings and writings, with respect to the indebtedness represented
hereby.  In the event of any assignment
of this Note, whether in whole or in part, the Holder shall as promptly as
practicable following such assignment give written notice to the Company.

20.                   Headings.  The section headings of this Note are for
convenience only and shall not affect the meaning or interpretation of this
Note or any provision hereof.

21.                   Definitions.

“Business Day” means any day except a Saturday,
Sunday or other day on which commercial banking institutions in New York City
are authorized by law or executive order to close.

“Capital Stock” of any Person means any and all
shares, interests, participations or other equivalents however designated of
corporate stock or other equity participations, including partnership
interests, whether general or limited, of such Person and any rights (other 

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than debt securities convertible or exchangeable into
an equity interest), warrants or options to acquire an equity interest in such
Person.

“Common Stock” means the Company’s Common
Stock, par value $0.01 a share.

“Conversion Date” means the date of shareholder
approval of the Conversion Event.

“Conversion Event” means shareholder approval
by holders of a majority of the shares of Common Stock of issuance of the
Convertible Preferred Stock and conversion of the Notes into 75,000 shares of
Convertible Preferred Stock.

“Convertible Preferred Stock” means the Company’s
8% Convertible Preferred Stock, par value $0.01 per share, having the terms and
preferences set forth in the form of Certificate of Designation attached to the
Securities Purchase Agreement as Exhibit B.

“Credit Agreement” means the Credit Agreement,
dated as of December 1, 2003, as amended from time to time, among SIRVA
Worldwide, Inc., a Delaware corporation, the Foreign Subsidiary Borrowers from
time to time parties thereto, the several banks and other financial
institutions from time to time parties thereto, JPMorgan Chase Bank, N.A.
(formerly known as JPMorgan Chase Bank), as administrative agent, and the other
Agents parties thereto.

“Eligible Market” means any of The New York
Stock Exchange Inc., The Nasdaq National Market, The Nasdaq SmallCap Market or
the American Stock Exchange.

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

“Fundamental Change” means any transaction,
series of related transactions or events (whether by means of an exchange
offer, liquidation, tender offer, consolidation, merger, combination,
reclassification, recapitalization or otherwise) in connection with which:

(a)           a “person” or “group” within the
meaning of Section 13(d) of the Exchange Act other than the Company, its
Subsidiaries or any employee benefit plan of the Company or any of its
Subsidiaries, files a Schedule TO or any schedule, form or report under the
Exchange Act disclosing that the person or group has become the direct or
indirect ultimate “beneficial owner”, as defined in Rule 13d-3 under the
Exchange Act, of the Voting Stock of the Company representing more than 50% of
the voting power of its Voting Stock;

(b)           consummation of any share exchange,
consolidation or merger of the Company pursuant to which the Common Stock will
be converted into cash, securities or other property or any sale, lease or
other transfer in one transaction or a series of transactions of all or
substantially all of the consolidated assets of the Company and its
Subsidiaries, taken as a whole, to any Person other than a Subsidiary of the
Company (“Transferee”); provided, however, that a transaction where the
holders of more than 50% of all classes of the Voting Stock of the Company immediately
prior to the transaction own, directly or indirectly, more than 50% of all 

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classes of Voting Stock
of the continuing or surviving Company or Transferee immediately after the
event shall not be a Fundamental Change;

(c)           the Company is liquidated or
dissolved or holders of its Capital Stock approve any plan or proposal for its
liquidation or dissolution; or

(d)           the Common Stock ceases to be listed
on an Eligible Market in the United States and the Common Stock is not relisted
on a national securities exchange in the United States within five months of
such delisting.

provided, however, that a Fundamental Change shall not
be deemed to have occurred under Subsection (b) to this definition if (i) 100%
of the consideration (excluding cash payments for fractional shares and cash
payment pursuant to statutory appraisal rights) in the transaction or
transactions consists of shares of common stock of a United States company with
full voting rights traded on an Eligible Market or quoted on the NASDAQ Stock Market
(or which shall be so traded or quoted when issued or exchanged in connection
with such transaction), (ii) as a result of such transaction or transactions
this Note shall become convertible solely into such common stock on terms at
least as favorable as the terms in which the Convertible Preferred Stock can be
converted into Common Stock as set forth in the form of Certificate of
Designation and (iii) the Transferee expressly assumes such obligations.

“Indebtedness” means, as to any Person at any
date, (a) all indebtedness of such Person for borrowed money or for the
deferred purchase price of property or services (other than trade liabilities
incurred in the ordinary course of business and payable in accordance with
customary practices), (b) any other indebtedness of such Person which is
evidenced by a note, bond, debenture or similar instrument, (c) all obligations
of such Person under Financing Leases (as defined in the Credit Agreement), (d)
all obligations of such Person in respect of bankers’ acceptances issued or
created for the account of such Person, (e) for purposes of Section 7 only, all
obligations of such Person in respect of interest rate protection agreements,
interest rate futures, interest rate options, interest rate caps and any other
interest rate hedge arrangements and (f) all indebtedness or obligations of the
types referred to in the preceding clauses (a) through (e) to the extent
secured by any Lien on any property owned by such Person even though such
Person has not assumed or otherwise become liable for the payment thereof.  Notwithstanding the foregoing, in no event
shall “Indebtedness” include (i) obligations of SIRVA Relocation, LLC, The
Rowan Group plc, any of their respective Subsidiaries or any other Subsidiary
of SIRVA Worldwide, Inc. primarily engaged in the business of providing
relocation services, including home sale and purchase assistance, management of
tenant responsibilities and other services to corporations that assist
employees in their relocation needs, and other business related thereto, to
make payments under or with respect to mortgage notes payable in the ordinary
course of business in connection with the provision of relocation services or
(ii) such mortgage notes.

“Issuance Date” means the date this Note was issued
as set forth on the first page hereof.

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“Note” means this Note and any other notes
issued pursuant to the terms hereof or of the Securities Purchase Agreement.

“Permitted Liens” means
(i) any lien for taxes not yet due or delinquent or being contested in good
faith by appropriate proceedings for which adequate reserves have been
established in accordance with generally acceptable accounting principles in
the United States applied on a consistent basis, (ii) any statutory lien
arising in the ordinary course of business by operation of law with respect to
a liability that is not yet due or delinquent, (iii) any lien created by
operation of law, such as materialmen’s liens, mechanics’ liens and other
similar liens, arising in the ordinary course of business with respect to a
liability that is not yet due or delinquent, (iv) deposits, pledges or liens
(other than liens arising under ERISA) securing (A) obligations incurred in
respect of workers’ compensation, unemployment insurance or other forms of
governmental insurance or benefits, (B) the performance of bids, tenders,
leases, contracts (other than for the payment of money) and statutory
obligations or (C) obligations on surety or appeal bonds, but only to the
extent such deposits, pledges or liens are incurred or otherwise arise in the
ordinary course of business and secure obligations not past due or delinquent,
(v) restrictions on the use of real property and minor irregularities in the
title thereto which do not (A) secure obligations for the payment of money or
(B) materially impair the value of such property or its use in the ordinary
course of business, (vi) any minor imperfection of title or similar lien which
individually or in the aggregate with other such liens would not reasonably be
expected to have a Material Adverse Effect, (vii) any lien created in
connection with the Credit Agreement and (viii) any lien created in connection
with the incurrence of Indebtedness existing prior to the issuance of this
Note.

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

“Quarterly Interest Payment Date” means the 1st
day of March, June, September, and December, unless such day does not fall on a
Business Day, in which it becomes the first Business Day subsequent to the 1st
day of the respective month.

“Securities Purchase Agreement” means the
Securities Purchase Agreement, dated as of September 25, 2006, by and between
the Company and Holder.

“Subsidiary” means, with respect to any Person,
(i) any corporation, association or other business entity of which more than
50% of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of that
Person (or a combination thereof) and (ii) any partnership (A) the sole general
partner or the managing general partner of which is such Person or a Subsidiary
of such Person or (B) the only general partners of which are such Person or of
one or more Subsidiaries of such Person (or any combination thereof).

 12
 

 

 

“Transaction Documents” means this Note, the
Securities Purchase Agreement, and the Registration Rights Agreement (as
defined in the Securities Purchase Agreement) and each of the other documents
entered into or delivered by the parties hereto in connection with the
transactions contemplated by this Note.

“Voting Stock” of a Person means all classes of
Capital Stock or other interests (including partnership interests) of such
Person then outstanding and normally entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees
thereof.

 13
 

 

 

IN WITNESS WHEREOF,
the Company has caused this Note to be executed by its duly authorized officer.

Dated as of: September 29,
2006

 

	
  

  	
  SIRVA INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 14Exhibit
10.1

SECURITIES PURCHASE AGREEMENT

SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of September 25, 2006, by and among SIRVA,
Inc., a Delaware corporation (the “Company”), ValueAct Capital
Master Fund, L.P., a British Virgin Islands limited partnership (“ValueAct Capital”) and MLF Offshore
Portfolio Company, L.P., a limited partnership (“MLF” and together with
ValueAct Capital, each a “Buyer” and together the “Buyers”).

WHEREAS:

A.            The Company and the Buyers are
executing and delivering this Agreement in reliance upon the exemption from
securities registration afforded by Section 4(2) of the Securities Act of 1933,
as amended (the “1933 Act”), and Rule 506 of Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange Commission
(the “SEC”) under the 1933 Act.

B.            The Company has authorized a series
of 10% senior convertible notes due 2011 (individually a “Note”,
collectively the “Notes”) of the Company in the form attached hereto as Exhibit
A, which Notes shall be convertible into shares of convertible perpetual
preferred stock of the Company designated as 8.00% Convertible Perpetual
Preferred Stock (“Convertible Preferred Stock”), in accordance with the
terms and conditions of the Notes.

C.            The Company has authorized the
Convertible Preferred Stock, which Convertible Preferred Stock shall be
convertible into common stock (“Common Stock”), par value $0.01 per
share (as converted, the “Conversion Shares”), of the Company, the
Convertible Preferred Stock having such voting powers, preferences and other
special rights and the qualifications, limitations or restrictions as set forth
in the Certificate of Designations of the Convertible Preferred Stock, which
shall be in the form attached hereto as Exhibit B (“Convertible
Preferred Stock Certificate of Designations”).

D.            The Company has authorized a series
of preferred stock of the Company, designated as Series A Preferred Stock (“Preferred
Voting Stock”), having such voting powers, preferences and other special rights
and the qualifications, limitations or restrictions as set forth in the
Certificate of Designations of the Preferred Voting Stock, which shall be in
the form attached hereto as Exhibit C (“Preferred Voting Stock
Certificate of Designations”, and together with the Convertible Preferred
Stock Certificate of Designations, the “Certificates of Designations”).

E.             The Notes shall automatically
convert into Convertible Preferred Stock upon majority shareholder approval of
the issuance of the Convertible Preferred Stock and conversion of the Notes
into Convertible Preferred Stock.

F.             ValueAct Capital wishes to purchase
and the Company wishes to sell, upon the terms and conditions stated in this
Agreement, Notes in the principal amount of $60,000,000 and one share of
Preferred Voting Stock.

G.            MLF wishes to purchase and the
Company wishes to sell, upon the terms and conditions stated in this Agreement,
Notes in the principal amount of $15,000,000.

 

H.            In connection with the appointment
of the Note Directors (as defined herein) and the issuance of the Preferred
Voting Stock, the Company will review the size and composition of the Board of
Directors of the Company (“Board of Directors”) to assess whether any
changes are desirable.

I.              Subsequent to the execution and
delivery of this Agreement, the parties hereto are executing and delivering a
Registration Rights Agreement, substantially in the form attached hereto as Exhibit
D (the “Registration Rights Agreement”), pursuant to which the
Company has agreed to provide certain registration rights with respect to the Convertible
Preferred Stock and the Conversion Shares under the 1933 Act and the rules and
regulations promulgated thereunder, and applicable state securities laws.

J.             The Notes, the Convertible
Preferred Stock, the Preferred Voting Stock and the Conversion Shares collectively
are referred to herein as the “Securities”.

NOW,
THEREFORE , the Company
and the Buyers hereby agree as follows:

1.             PURCHASE
AND SALE OF NOTES AND PREFERRED VOTING STOCK.

(a)           Purchase
of Notes and Preferred Voting Stock. Subject to the satisfaction (or
waiver) of the conditions set forth in Section 6 below,(i) the Company shall
issue and sell to ValueAct Capital and ValueAct Capital agrees to purchase from
the Company on the Closing Date (as defined below), a principal amount of Notes
in the amount of $60,000,000 (“Principal Amount”) and one (1) share of
Preferred Voting Stock and (ii) the Company shall issue and sell to MLF and MLF
agrees to purchase from the Company on the Closing Date (as defined below), a
principal amount of Notes in the amount of $15,000,000.

(b)           Issuance
of Preferred Voting Stock. The share of Preferred Voting Stock shall be
issued to ValueAct Capital on the Closing Date (as defined in Section 1(c)),
unless the parties determine that a filing (“HSR Filing”) is necessary
under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended (“HSR”)
prior to the acquisition by ValueAct Capital of the Preferred Voting Stock. If
the Company and ValueAct Capital determine that an HSR Filing is necessary, the
share of Preferred Voting Stock shall be issued to ValueAct Capital as soon as
practicable after the expiration or the early termination of the applicable HSR
waiting period, but in no event later than three Business Days after such time.

(c)           Closing.
The date and time of the closing (the “Closing”) shall be 10:00 a.m.,
New York City Time, at the offices of Dechert LLP, 2929 Arch Street,
Philadelphia, Pennsylvania 19104, immediately following notification of
satisfaction (or waiver) of the conditions to the Closing set forth in Section
6 below or on a date to be mutually agreed to by the Company and the Buyer (“Closing
Date”). This Agreement shall be executed by the Company and the Buyers
prior to the Closing.

(d)           Termination.
If the Closing does not occur prior to 5:00 p.m. New York City time on
September 29, 2006, this Agreement shall automatically terminate (“Closing
Deadline”).

 2
 

 

(e)           Purchase
Price. The purchase price of the Notes and the Preferred Voting Stock to be
purchased by ValueAct Capital at the Closing shall be $60,000,000 and $1,
respectively, and the purchase price of the Notes purchased by MLF at the
Closing shall be $15,000,000 (as to each Buyer’s respective amount, the “Purchase
Price”).

(f)            Purchase
Price Default. If any Buyer (“Defaulting Buyer”) shall default in
its obligation to pay the Purchase Price, the non-defaulting Buyer (“Non-Defaulting
Buyer”) shall have the option (“Additional Purchase Option”) to
purchase the Securities offered to the Defaulting Buyer at the Purchase Price
of the Defaulting Buyer.

(g)           Deliveries.
At the Closing Date, subject to the satisfaction (or waiver) of the conditions
set forth in Section 6 below, the Buyers shall deposit cash in an amount equal
to their Purchase Price for the Securities to be sold to the Buyers, by wire
transfer of immediately available funds to the Company in accordance with wire
instructions previously provided by the Company.  At the Closing, subject to the satisfaction (or waiver) of the conditions
set forth in Section 6 below, the Company shall deliver to the Buyers the Notes
in the aggregate principal amount equal to the Purchase Price, duly executed on
behalf of the Company by manual or facsimile signature, dated as of the Closing
Date and registered in the name of the respective Buyer or its designee.

2.             BUYERS’
REPRESENTATIONS AND WARRANTIES.

Each Buyer, severally, not jointly, represents and warrants to and
covenants with the Company that:

(a)           No
Public Sale or Distribution. The Buyer is(i) acquiring the Notes (and in
the case of ValueAct Capital, the Preferred Voting Stock) and (ii) upon
conversion of the Notes will acquire the Convertible Preferred Stock issuable
upon conversion of the Notes, for its own account and not with a view towards,
or for resale in connection with, the public sale or distribution thereof; provided,
however, that by making the representations herein, the Buyer does not
agree to hold any of the Securities for any minimum or other specific term and
reserves the right to dispose of the Securities at any time in accordance with
or pursuant to a registration statement or an exemption under the 1933 Act. The
Buyer is acquiring the Securities hereunder in the ordinary course of its
business. The Buyer presently does not have any agreement or understanding,
directly or indirectly, with any Person to distribute any of the Securities.
For purposes of this Agreement, “Person” means an individual, a limited
liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a government or any department or agency thereof.

(b)           Accredited
Investor Status. The Buyer is an “accredited investor” (as that term is
defined in Rule 501(a) of Regulation D). The Buyer, taking into account the
personnel and resources it can practically bring to bear on the purchase of the
Notes (and in the case of ValueAct Capital, the Preferred Voting Stock) contemplated
hereby, is knowledgeable, sophisticated and experienced in making, and is
qualified to make, decisions with respect to investments in debt and equity
securities presenting an investment decision like that involved in the purchase
of the Notes (and in the case of ValueAct Capital, the Preferred Voting Stock).
The Buyer is able to bear the economic risk of an investment in the Securities.

 3
 

 

(c)           The
Buyer acknowledges that (a) it has conducted its own investigation of the
Company and the terms of the Securities, (b) it has had access to the Company’s
public filings with the SEC and to such financial and other information as it
deems necessary to make its decision to purchase the Securities, and (c) it has
been offered the opportunity to ask questions of the Company and, if asked
questions, received answers thereto, as it deemed necessary in connection with
the decision to purchase the Securities.

(d)           The
Buyer, its affiliates and any of its and their directors, officers, employees,
agents, advisors and controlling persons are aware that the U.S. securities
laws prohibit any person that has material non-public information about a
company from purchasing or selling, directly or indirectly, securities of such
company (including entering into hedging transactions involving such
securities) or from communicating such information to any other person under
circumstances in which it is reasonably foreseeable that such other person is
likely to purchase or sell securities.

(e)           The
Buyer has not solicited offers for, or offered or sold, and will not solicit
offers for, or offer to sell, the Securities by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c) of
Regulation D under the 1933 Act or in any manner involving a public offering
within the meaning of Section 4(2) of the 1933 Act.

(f)            The
Buyer acknowledges that no action has been or will be taken in any jurisdiction
outside the United States by the Company that would permit an offering of the
Securities in any jurisdiction outside the United States where action for that
purpose is required. The Buyer will comply with all applicable laws and
regulations in each foreign jurisdiction in which it purchases, offers, sells,
or delivers Securities at its own expense.

(g)           The
Buyer understands that nothing in this Agreement, the Company’s public filings
with the SEC or any other materials presented to the Buyer in connection with
the purchase and sale of the Securities constitutes legal, tax or investment
advice. The Buyer has consulted such legal, tax and investment advisors and
made its own assessments as it, in its sole discretion, has deemed necessary or
appropriate in connection with its purchase of Securities.

(h)           Reliance
on Exemptions. The Buyer understands that the Securities are being offered
and sold to it in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and that the
Company is relying in part upon the truth and accuracy of, and the Buyer’s
compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Buyer set forth herein in order to determine the
availability of such exemptions and the eligibility of the Buyer to acquire the
Securities. The Buyer agrees that if any of the representations and
acknowledgements deemed to have been made by it by its purchase of the Securities
are no longer accurate, the Buyer shall promptly notify the Company. The Buyer
hereby consents to such reliance.

(i)            Transfer
or Resale. The Buyer understands that except as provided in the
Registration Rights Agreement: (i) the Securities have not been and are not
being registered under the 1933 Act or any state securities laws, and may not,
directly or indirectly, be offered for sale, sold, assigned, transferred or
otherwise disposed unless (A) subsequently registered thereunder, (B) the Buyer
shall have delivered to the Company an opinion of counsel reasonably 

 4
 

 

acceptable
to the Company, in a form reasonably acceptable to the Company, to the effect
that such Securities to be sold, assigned or transferred may be sold, assigned
or transferred pursuant to an exemption from such registration, (C) transferred
to an Affiliate (as defined in Rule 144, an “Affiliate”) of the Buyer
that certifies that it is an Accredited Investor (as defined in Rule 501(a) of
Regulation D under the 1933 Act) or (D) in the case of a sale pursuant to Rule
144, the Buyer provides the Company with reasonable assurance, including any
reasonably requested opinion of counsel, that such Securities can be sold,
assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the
1933 Act (or a successor rule thereto) (collectively, “Rule 144”); (ii)
any sale of the Securities made in reliance on Rule 144 may be made only in
accordance with the terms of Rule 144 and further, if Rule 144 is not
applicable, any resale of the Securities under circumstances in which the
seller (or the Person) through whom the sale is made) may be deemed to be an
underwriter (as that term is defined in the 1933 Act) may require compliance
with some other exemption under the 1933 Act or the rules and regulations of
the SEC thereunder; and (iii) neither the Company nor any other Person is under
any obligation to register the Securities under the 1933 Act or any state
securities laws or to comply with the terms and conditions of any exemption
thereunder. The Buyer will, and each subsequent holder of the Notes is required
to, notify any subsequent purchaser of the Securities of the resale
restrictions in this section and will provide the Company and the transfer
agent such certificates and other information as they may reasonably require to
confirm that the transfer by it complies with the foregoing restrictions, if
applicable.

(j)            Legends.
The Buyer understands that the certificates or other instruments representing
the Notes, the Preferred Voting Stock and, until such time as the resale of the
Convertible Preferred Stock has been registered under the 1933 Act as
contemplated by the Registration Rights Agreement, the stock certificates
representing the Convertible Preferred Stock, except as set forth below, shall
bear any legend as required by the “blue sky” laws of any state and a
restrictive legend in substantially the following forms (and a stop-transfer
order may be placed against transfer of such stock certificates):

Convertible Preferred Stock/Notes legend:

THIS SECURITY (OR ITS PREDECESSOR) WAS
ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS
SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS
SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON
AN EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT.

THE HOLDER OF THIS SECURITY AGREES FOR THE
BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED
OR OTHERWISE TRANSFERRED, ONLY (I) IF THIS SECURITY IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (II) PURSUANT TO AN EXEMPTION FROM 

 5
 

 

REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
RULE 144 THEREUNDER (IF AVAILABLE), (III) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, (IV) TO THE COMPANY OR ANY OF ITS
SUBSIDIARIES, OR (V) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED ON AN OPINION OF
COUNSEL ACCEPTABLE TO THE COMPANY), IN EACH OF CASES (I) THROUGH (V) IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY SUBSEQUENT PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN CLAUSE (A) ABOVE.

Preferred Voting Stock legend:

THIS SECURITY (OR ITS PREDECESSOR) WAS
ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS
SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS
SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON
AN EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT.

THE HOLDER OF THIS SECURITY AGREES FOR THE
BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED
OR OTHERWISE TRANSFERRED, ONLY (I) IF THIS SECURITY IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (II) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (III) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (IV) TO THE COMPANY OR ANY OF
ITS SUBSIDIARIES, OR (V) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED ON AN OPINION OF
COUNSEL ACCEPTABLE TO THE COMPANY), IN EACH OF CASES (I) THROUGH (V) IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY SUBSEQUENT PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN CLAUSE (A) ABOVE.

THE HOLDER OF THIS SECURITY AGREES FOR THE
BENEFIT OF THE COMPANY THAT, NOTWITHSTANDING THE FOREGOING, THIS SECURITY MAY
NOT BE TRANSFERRED OTHER THAN IN ACCORDANCE WITH THE TERMS OF THE 

 6
 

 

CERTIFICATE OF DESIGNATIONS GOVERNING THE
SERIES A PREFERRED STOCK FILED WITH THE SECRETARY OF STATE OF THE STATE OF
DELAWARE.

The
applicable legend set forth above shall be removed and the Company shall issue
a certificate without such legend to the holder of the Securities upon which it
is stamped, if, unless otherwise required by state securities laws, (i) upon
transfer such Securities are registered for resale under the 1933 Act, (ii) in
connection with a sale, assignment or other transfer, such holder provides the
Company with an opinion of counsel reasonably acceptable to the Company, in a
form reasonably acceptable to the Company, to the effect that such legend is
not required under the applicable requirements of the 1933 Act, or (iii) such
holder provides the Company with reasonable assurance that the Securities can
be sold, assigned or transferred pursuant to Rule 144(k).

(k)           Validity;
Enforcement. This Agreement and each of the other Transaction Documents to
which the Buyer is a party has been duly and validly authorized, executed and
delivered on behalf of the Buyer and shall constitute the legal, valid and
binding obligations of the Buyer, enforceable against the Buyer in accordance
with their respective terms.

(l)            No
Conflicts. The execution, delivery and performance by the Buyer of this
Agreement and each of the other Transaction Documents to which the Buyer is a
party and the consummation by the Buyer of the transactions contemplated hereby
and thereby will not (i) result in a violation of the organizational documents
of the Buyer or (ii) conflict with, or constitute a default (or an event which
with notice or lapse of time or both would become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of,
any agreement, indenture or instrument to which the Buyer is a party, or (iii)
result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws) applicable to the Buyer, except
in the case of clauses (ii) and (iii) above, for such conflicts, defaults,
rights or violations which, individually or in the aggregate, have not had, and
would not reasonably be expected to have, a material adverse effect on the
ability of the Buyer to perform its obligations hereunder.

3.             REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

The Company hereby represents and warrants to each Buyer as follows:

(a)           Subsidiaries.
Except (i) for directors’ qualifying shares or foreign national qualifying
capital stock, if applicable, (ii) as otherwise disclosed in the Exchange Act
Filings, or (iii) as pledged to secure indebtedness of the Company and/or its
subsidiaries pursuant to credit facilities, indentures and other instruments
evidencing Indebtedness as contemplated by the Company’s Exchange Act Filings
and existing or to be entered into on the Closing Date, the Company owns,
directly or indirectly, the capital stock or comparable equity interests of
each Subsidiary free and clear of any Lien (as defined in Section 3(f) below)
and all the issued and outstanding shares of capital stock or comparable equity
interest of each Subsidiary are validly issued and are fully paid,
non-assessable and free of preemptive and similar rights. For purposes of this
Agreement, “Subsidiary” means a direct or indirect Significant
Subsidiary (as defined in Rule 1-02(w) of Regulation S-X promulgated by the SEC
pursuant to the Securities Exchange Act of 1934, as amended (the “1934 Act”))
of the Company. For purposes of this Agreement, 

 7
 

 

“Exchange
Act Filings” means the Company’s public filings on Form 10-K, 10-Q and 8-K,
including any amendments thereto.

(b)           Organization and
Qualification. Each of the Company and the Subsidiaries is an entity duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization (as applicable), with the
requisite power and authority to own and use its properties and assets and to
carry on its business as currently conducted. Neither the Company nor any
Subsidiary is in violation of any of the provisions of its respective
certificate or articles of incorporation, bylaws or other organizational or
charter documents. Each of the Company and the Subsidiaries is duly qualified
to do business and is in good standing as a foreign corporation or other entity
in each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, do not and could not,
individually or in the aggregate, (i) adversely affect the legality, validity
or enforceability of any provisions of the Transaction Documents, (ii)
reasonably be expected to have or result in a material adverse effect on the
results of operations, assets, business or condition (financial or otherwise)
of the Company and the Subsidiaries, taken as a whole on a consolidated basis,
or (iii) adversely impair the Company’s ability to perform fully on a timely
basis its material obligations under any of the Transaction Documents (any of
(i), (ii) or (iii), a “Material Adverse Effect”). For purposes of this
Agreement, “Transaction Documents” means, collectively, this Agreement,
the Note, the Registration Rights Agreement, and each of the other documents
entered into or delivered by the parties hereto in connection with the
transactions contemplated by this Agreement.

(c)           Authorization;
Enforcement. The Company has the requisite corporate power and authority to
enter into and to consummate the transactions contemplated by each of the
Transaction Documents to which it is a party and otherwise to carry out its
obligations hereunder and thereunder. The execution and delivery of each of the
Transaction Documents to which it is a party by the Company and the
consummation by it of the transactions contemplated hereby and thereby,
including, without limitation, the issuance of the Notes, the creation of the
Preferred Voting Stock series and the reservation for issuance of the Preferred
Voting Stock issuable in accordance with this Agreement, the creation of the
Convertible Preferred Stock series and the reservation for issuance of the Convertible
Preferred Stock issuable upon conversion of the Notes and the issuance of the
Conversion Stock upon conversion of the Convertible Preferred Stock, have been
duly authorized by all necessary action on the part of the Company and no
further consent or action is required by the Company, its Board of Directors or
its stockholders, except for stockholder consent relating to the Conversion
Event. Each of the Transaction Documents has been duly executed by the Company
and is, or when delivered in accordance with the terms hereof, will constitute,
the legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms.

(d)           No
Conflicts. The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby, including, without limitation,
the issuance of the Notes, the creation and issuance of the Convertible
Preferred Stock series, the reservation for issuance of the Convertible
Preferred Stock issuable upon conversion of the Notes and the issuance of the
Conversion Stock upon conversion of the Convertible Preferred Stock, do not and
will not (i) 

 8
 

 

conflict
with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter
documents, (ii) conflict with, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation (with
or without notice, lapse of time or both) of, any agreement, credit facility,
debt or other instrument (evidencing a debt of the Company or a Subsidiary or
otherwise) or other understanding to which the Company or any Subsidiary is a
party or by which any property or asset of the Company or any Subsidiary is
bound or affected, except to the extent that such conflict, default or
termination right has not had, and could not reasonably be expected to have, a
Material Adverse Effect, or (iii) result in a violation of any law, rule,
regulation, order, judgment, injunction, decree or other restriction of any
court or governmental authority to which the Company or a Subsidiary is subject
(including federal and state securities laws and regulations and the rules and
regulations of the New York Stock Exchange (the “Principal Market”) or
any other self-regulatory organization to which the Company or its securities
are subject), or by which any property or asset of the Company or a Subsidiary
is bound or affected, except to the extent that such violation has not had, and
could not reasonably be expected to have, a Material Adverse Effect.

(e)           Consents.
Except for filing a Supplemental Listing Application with the Principal Market
to list the Conversion Shares (“the Listing Application”) or as provided
in the Transaction Documents, neither the Company nor any of its Subsidiaries
is required to obtain any consent, authorization or order of, or make any
filing or registration with, any court, governmental agency or any regulatory
or self-regulatory agency or any other Person in order for the Company to
execute, deliver or perform any of its obligations under or contemplated by the
Transaction Documents, in each case in accordance with the terms hereof or
thereof. All consents, authorizations, orders, filings and registrations which
the Company or any of its Subsidiaries is required to obtain pursuant to the
preceding sentence have been, or will be, obtained or effected on or prior to
the Closing Date or the applicable deadlines specified in the Transaction
Documents, except the Listing Application which will be filed with the
Principal Market prior to the issuance of the Conversion Shares. The Company
and its Subsidiaries are unaware of any facts or circumstances which might
prevent the Company from obtaining or effecting any of the foregoing.

(f)            Issuance
of the Securities. The Securities and the Common Stock to be paid as Common
Stock Interest (as that term is defined in the Note) if necessary are duly
authorized and, when issued and paid for in accordance with the Transaction
Documents, will be duly and validly issued, fully paid and nonassessable (if
applicable), free and clear of all liens, charges, claims, security interests,
encumbrances, rights of first refusal or other restrictions (“Liens”)
and shall not be subject to preemptive rights or similar rights of
stockholders. As of the date hereof, the Company shall have reserved from its
duly authorized capital stock at least 75,000 shares of Convertible Preferred
Stock, 1 share of Preferred Voting Stock and the number of shares of Conversion
Stock issuable upon conversion of the Convertible Preferred Stock (assuming for
purposes hereof, that the Convertible Preferred Stock is convertible at the
Conversion Price (as defined in the Convertible Preferred Stock Certificate of
Designation)).

(g)           Exchange
Act Filings. The Company’s Exchange Act Filings that are publicly filed as
of the date hereof, did not contain any untrue statement of a material fact or 

 9
 

 

omit
to state a material fact required to be stated therein or necessary in order to
make the statements made therein, in light of the circumstances under which
they were made, not misleading. The Company notes that as of the date hereof,
it has previously restated prior financial statements in its Form 10-K for the
year ended December 31, 2004 (the “2004 10-K”), and has since indicated
that the 2004 10-K should not be relied upon and it has not filed, and does not
intend to file prior to the date hereof, with the SEC its annual report for the
year ended December 31, 2005 and its quarterly reports for its fiscal quarters
ended March 31, 2005, June 30, 2005, September 30, 2005, March 31, 2006 and
June 30, 2006, and in connection with the purchase of the Securities the Buyers
will not have access to the information that would have been contained in such
annual and quarterly reports.

(h)           Financial
Statements. Subject to the qualifications and limitations set forth in the
Company’s Current Report on Form 8-K filed with the SEC on August 15, 2006, the
Company’s preliminary unaudited consolidated balance sheets as of December 31,
2004 (as restated) and December 31, 2005, and the related preliminary unaudited
consolidated statements of income and of cash flows for each of the fiscal
years ended December 31, 2003 (as restated), December 31, 2004 (as restated)
and December 31, 2005 (the “Preliminary Unaudited Financial Statements”)
included therein, present fairly in all material respects the consolidated
financial position, results of operations and cash flows of the Company and its
subsidiaries as of and for the dates thereof and for the periods then ended;
such Preliminary Unaudited Financial Statements have been prepared in
accordance with U.S. generally accepted accounting principles (“GAAP”)
consistently applied throughout the periods involved, except as disclosed
therein.

(i)            Capitalization.
As of the date hereof, the capital stock of the Company consists of 500,000,000
shares of Common Stock, 73,955,263 which are outstanding, and 50,000,000 shares
of preferred stock shares, none
of which are outstanding. There has been no material change in the Company’s
capitalization since December 31, 2004, other than the creation and
authorization of the Convertible Preferred Stock and the Preferred Voting
Stock. All outstanding shares of capital stock are duly authorized. All
outstanding shares of Common Stock are validly issued, fully paid and
nonassessable and have been issued in compliance with all applicable securities
laws. Except as disclosed in Exchange Act Filings, there are no outstanding
options, warrants, script rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any
right to subscribe for or acquire, any shares of Common Stock, or contracts,
commitments, understandings or arrangements by which the Company or any
Subsidiary is or may become bound to issue additional shares of Common Stock,
or securities or rights convertible or exchangeable into shares of Common
Stock. The issue and sale of the Securities will not obligate the Company to
issue shares of Common Stock or other securities to any Person (other than the
Buyers) and will not result in a right of any holder of securities of the
Company to adjust the exercise, conversion, exchange or reset price under such
securities. To the knowledge of the Company, no Person or group of related
Persons beneficially owns (as determined pursuant to Rule 13d-3 under the 1934
Act), or has the right to acquire, by agreement with or by obligation binding
upon the Company, beneficial ownership of in excess of 5% of the outstanding
Common Stock, ignoring for such purposes any limitation on the number of shares
of Common Stock that may be owned at any single time, other than Clayton,
Dubilier & Rice, Inc. and the Buyers hereunder.

 10
 

 

(j)            Material
Changes. Since December 31, 2004, except as specifically disclosed in the
Exchange Act Filings: (A) there has been no event, occurrence or development
that, individually or in the aggregate, has resulted in, or that could
reasonably be expected to result in, a Material Adverse Effect, (B) the Company
has not incurred any liabilities (contingent or otherwise) other than (1)
transactions in the ordinary course of business consistent with past practice
(including, without limitation, investments in and incurrence of obligations on
behalf of new or existing partner companies in the ordinary course of business
consistent with past practice) and (2) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or required to be
disclosed in filings made with the SEC, (C) the Company has not altered its
method of accounting or the identity of its auditors, (D) the Company has not
declared or made any dividend or distribution of cash or other property to its
stockholders or purchased, redeemed or made any agreements to purchase or
redeem any shares of its capital stock, (E) the Company has not sold any
assets, individually or in the aggregate, in excess of $50,000, (F) there has
not occurred any material adverse change in the condition, financial or
otherwise, or in the business prospects, earnings, or business affairs of the
Company and its Subsidiaries, taken as a whole and (G) the Company has not
issued any equity securities to any officer, director or Affiliate, except
pursuant to existing Company stock-based plans that in the case of (A) through
(G) would require disclosure in Exchange Act Filings.

(k)           Indebtedness.

(i)            Except
as disclosed in the Exchange Act Filings, or incurred in the ordinary course of
business, to the best of the Company’s knowledge, neither the Company nor any
of its Subsidiaries has any outstanding Indebtedness in excess of $1,000,000 in
the aggregate. Except as disclosed in the Exchange Act Filings or incurred in
the ordinary course of business, to the best of the Company’s knowledge, no
Indebtedness of the Company individually in excess of $1,000,000 is senior to
or ranks pari passu with the Note in right of
payment, whether with respect of payment of redemptions, interest, damages or
upon liquidation or dissolution or otherwise.

(ii)           For
purposes of this Agreement “Indebtedness” of any Person means, without
duplication (A) all indebtedness for borrowed money, (B) all obligations
issued, undertaken or assumed as the deferred purchase price of property or
services (other than trade payables entered into in the ordinary course of
business), (C) all reimbursement or payment obligations with respect to letters
of credit, surety bonds and other similar instruments, (D) all obligations
evidenced by notes, bonds, debentures or similar instruments, including
obligations so evidenced incurred in connection with the acquisition of
property, assets or businesses, (E) all indebtedness created or arising under
any conditional sale or other title retention agreement, or incurred as
financing, in either case with respect to any property or assets acquired with
the proceeds of such indebtedness (even though the rights and remedies of the
seller or bank under such agreement in the event of default are limited to repossession
or sale of such property), (F) all monetary obligations under any leasing or
similar arrangement which, in accordance with GAAP, is classified as a capital
lease, (G) all indebtedness referred to in clauses (A) through (F) above
secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien upon or in any property or
assets (including accounts and contract rights) owned by any Person, even
though the Person which owns such assets or property has not assumed or become
liable for the payment of such indebtedness, and (H) all 

 11
 

 

Contingent
Obligations in respect of indebtedness or obligations of others of the kinds
referred to in clauses (A) through (G) above; and (z) “Contingent Obligation”
means, as to any Person, any known direct or indirect liability, contingent or
otherwise, of that Person with respect to any Indebtedness, of another Person.

(l)            Absence
of Litigation. Except for two lawsuits brought by the Owner-Operator
Independent Drivers Association against Allied Van Lines, Inc. and North
American Van Lines, Inc. or as disclosed in the Exchange Act Filings, there is
no action, suit, claim, proceeding, inquiry or investigation before or by any
court, public board, government agency, self-regulatory organization or body
pending or, to the knowledge of the Company, threatened against or affecting
the Company or any of its Subsidiaries that, individually or in the aggregate,
has resulted in, or would reasonably be expected to result in, a Material
Adverse Effect.

(m)          Compliance.
Neither the Company nor any Subsidiary (i) is in default under or in violation
of (and no event has occurred that has not been waived that, with notice or
lapse of time or both, would result in a default by the Company or any
Subsidiary under), nor has the Company or any Subsidiary received written
notice of a claim that it is in default under or that it is in violation of,
any indenture, loan or credit agreement or any other agreement or instrument to
which it is a party or by which it or any of its properties is bound (whether
or not such default or violation has been waived), (ii) is in violation of any
order of any court, arbitrator, governmental body or exchange or automated
quotation system on which any of the securities of the Company are listed or
designated, or (iii) is or has been in violation of any statute, rule or
regulation of any governmental authority, including without limitation all
foreign, federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and
employment and labor matters, except in each case as, individually or in the
aggregate, has not had or resulted in, or could not reasonably be expected to
have or result in, a Material Adverse Effect.

(n)           Title
to Assets. Except as disclosed in Exchange Act Filings, the Company and the
Subsidiaries have good and valid title in fee simple to all real property owned
by them that is material to the business of the Company and the Subsidiaries
and good and marketable title in all personal property owned by them that is
material to the business of the Company and the Subsidiaries, in each case free
and clear of all Liens, except for Liens that do not materially affect the
value of such property, do not materially interfere with the use made and
proposed to be made of such property by the Company and the Subsidiaries and,
individually or in the aggregate, has not had or resulted in, and could not
reasonably be expected to have or result in, a Material Adverse Effect. Any
real property and facilities held under lease by the Company and the
Subsidiaries are held by them under valid, subsisting and enforceable leases of
which the Company and the Subsidiaries are in compliance except, in each case,
as do not result in, and could not reasonably be expected to result in, a
Material Adverse Effect.

(o)           Certain
Fees. No brokerage or finder’s fees or commissions or any other payment,
whether in the form of cash, securities or other consideration, or any
combination of the foregoing, are or will be payable, directly or indirectly,
by the Company, any Subsidiary or any Affiliate thereof to any broker,
financial advisor or consultant, finder, placement agent, investment banker, or
other Person directly or indirectly with respect to the transactions
contemplated by this Agreement or any of the other Transaction Documents,
except as 

 12
 

 

contemplated
by the Transaction Documents (including any fees payable in connection with the
Amendment (as defined below)), and the Company has not taken any action that
would cause the Buyer to be liable for any such fees or commissions pursuant to
any agreement or arrangement to which the Company is a party. The Company shall
pay, and hold the Buyer harmless against, any liability, loss or expense
(including, without limitation, attorney’s fees and out-of-pocket expenses)
arising in connection with any claim against the Buyer relating to a breach of
this representation.

(p)           Issuance
or Transfer Taxes.  There are no stamp or other issuance or transfer
taxes or duties or other similar fees or charges required to be paid in
connection with the execution and delivery of the Transaction Documents or the
issuance or sale by the Company of the Securities.

(q)           Private
Placement. Neither the Company nor any Person acting on the Company’s
behalf has sold or offered to sell or solicited any offer to buy the Securities
by means of any form of general solicitation or advertising within the meaning
of Rule 502 under the Securities Act. Neither the Company nor any of its
Affiliates nor any person acting on the Company’s behalf has, directly or
indirectly, at any time within the past six months, made any offer or sale of
any security or solicitation of any offer to buy any security of the Company
under circumstances that would (i) eliminate the availability of the exemption
from registration under Regulation D in connection with the offer and sale by
the Company of the Securities as contemplated hereby or (ii) cause the offering
of the Securities pursuant to the Transaction Documents to be integrated with
prior offerings by the Company for purposes of any applicable law, regulation
or stockholder approval provisions, including, without limitation, under the
rules and regulations of any exchange or automated quotation system on which
any of the securities of the Company are listed or designated. None of the
Company, its Subsidiaries, their Affiliates and any Person acting on their
behalf will take any action or steps referred to in the preceding sentence that
would require the registration of any of the Securities under the 1933 Act or
cause the offering to be integrated with the other offerings for purposes of
any applicable law, regulation or stockholder approval provisions. The Company
is not, and is not an Affiliate of, an “investment company” within the meaning
of the Investment Company Act of 1940, as amended. The Company is not a United
States real property holding corporation within the meaning of the Foreign
Investment in Real Property Tax Act of 1980. No consent, license, permit,
waiver approval or authorization of, or designation, declaration, registration
or filing with, the SEC or any state securities regulatory authority is
required in connection with the offer, sale, issuance or delivery of the
Securities, other than the possible filing of a Form D with the SEC.

(r)            Listing
and Maintenance Requirements. Except for not timely filing its Form 10-K
for the year ended December 31, 2005 and not holding its annual meeting of
stockholders, the Company has no knowledge of any facts or circumstances which
would reasonably lead to delisting or suspension of the Common Stock by the
Principal Market in the foreseeable future. Except for a letter from the
Principal Market, dated September 5, 2006, reviewing the Principal Market’s
continued listing criteria, since December 31, 2005, the Company has not
received any communication, written or oral, from the SEC or the Principal
Market regarding the suspension or delisting of the Common Stock from the
Principal Market.

 13
 

 

(s)           Application
of Takeover Protections. There is no control share acquisition, business
combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s charter documents
or the laws of its state of incorporation that is or could become applicable to
the Buyer solely as a result of the Buyer and the Company fulfilling their
obligations or exercising their rights under the Transaction Documents,
including, without limitation, as a result of the Company’s issuance of the
Securities and the Buyer’s ownership of the Securities.

(t)            Acknowledgment
Regarding Buyer’s Purchase of Company Securities. The Company acknowledges
and agrees that the Buyer is acting solely in the capacity of an arm’s length
purchaser with respect to the Transaction Documents and the transactions
contemplated hereby and thereby. The Company further acknowledges that the
Buyer is not acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the
transactions contemplated hereby and thereby and any advice given by the Buyer
or any of their respective representatives or agents in connection with the
Transaction Documents and the transactions contemplated hereby and thereby is
merely incidental to the Buyer’s purchase of the Securities. The Company
further represents to the Buyer that the Company’s decision to enter into the
Transaction Documents has been based solely on the independent evaluation of
the transactions contemplated hereby and thereby by the Company and its
representatives.

(u)           Intellectual
Property. Except as disclosed in the Exchange Act Filings, to the knowledge
of the Company, the Company and the Subsidiaries have, or have rights to use,
all patents, patent applications, trademarks, trademark applications, service
marks, trade names, copyrights, licenses and other similar rights that are
necessary or material for use in connection with each of such company’s operations
as currently conducted and which the failure to do so has had, or could
reasonably be expected to have, a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). Neither the Company nor any Subsidiary has received a
written notice that the Intellectual Property Rights used by the Company or any
Subsidiary violates or infringes upon the rights of any Person except as may be
described in the Exchange Act Filings or as does not result in, and could not
reasonably be expected to result in, a Material Adverse Effect. To the
knowledge of the Company, all such Intellectual Property Rights are enforceable
and there is no existing infringement by another Person of any of the
Intellectual Property Rights, in each case except as may be described in the Exchange
Act Filings, or as does not result in, and could not reasonably be expected to
result in, a Material Adverse Effect.

(v)           Regulatory
Permits. The Company and its Subsidiaries possess adequate permits,
licenses, approvals, consents and other authorizations (collectively, “Governmental
Licenses”) issued by the appropriate federal, state, local or foreign
regulatory agencies or bodies necessary to conduct the business now operated by
them (except where the failure to so possess such Governmental Licenses would
not singly or in the aggregate have a Material Adverse Effect); the Company and
its Subsidiaries are in compliance with the terms and conditions of all such
Governmental Licenses, except where the failure so to comply would not, singly
or in the aggregate, have a Material Adverse Effect; all of the Governmental
Licenses are valid and in full force and effect, except when the invalidity of
such Governmental Licenses or the failure of such Governmental Licenses to be
in full force and effect would not have a Material Adverse Effect; and neither
the Company nor any of its Subsidiaries has received any notice of proceedings 

 14
 

 

relating to the
revocation or modification of any such Governmental Licenses which, singly or
in the aggregate, if the subject of an unfavorable decision, ruling or finding,
would result in a Material Adverse Effect.

(w)          Transactions
With Affiliates and Employees. Except as set forth in the Exchange Act
Filings, none of the officers or directors of the Company and, to the knowledge
of the Company, none of the employees of the Company is presently a party to
any transaction with the Company or any Subsidiary (other than for services as
employees, officers and directors) exceeding $250,000, including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the
knowledge of the Company, any entity in which any officer, director, or any
such employee has a substantial interest or is an officer, director, trustee or
partner.

(x)            Insurance.
The Company and each of its Subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such
amounts as are prudent and customary in the businesses in which they are
engaged; all policies of insurance and fidelity or surety bonds insuring the
Company or any of its Subsidiaries or their respective businesses, assets,
employees, officers and directors are in full force and effect; neither the
Company nor any such Subsidiary has any reason to believe that it will not be
able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to
continue its business at a cost that would not have a Material Adverse Effect.

(y)           Internal
Accounting Controls. Except for material weaknesses and control
deficiencies identified in Exchange Act filings or additional material
weaknesses and control deficiencies that the Company may identify during the
course of its 2005 audit, the Company and the Subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with management’s general or
specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management’s general or specific
authorization, and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

(z)            Certificates
of Designation. The Certificates of Designation have been duly authorized
by the Company. Upon the filing of the Convertible Preferred Stock Certificate
of Designation with the Secretary of State of the State of Delaware and the
issuance and delivery of the Convertible Preferred Stock in accordance with
this Agreement, the Convertible Preferred Stock will be convertible at the
option of the holder thereof into the Common Stock in accordance with the terms
of the Convertible Preferred Stock Certificate of Designation.

 15
 

 

4.             COVENANTS.

(a)           Reasonable
Best Efforts. Each party shall use its reasonable best efforts timely to
satisfy each of the conditions to be satisfied by it as provided in Sections 6
and 7 of this Agreement.

(b)           Form
D and Blue Sky. The Company agrees to file a Form D with respect to the
Securities as required under Regulation D and to provide a copy thereof to the
Buyer promptly after such filing. The Company shall take such action as the
Company shall reasonably determine is necessary in order to obtain an exemption
for or to qualify the Securities for sale to the Buyers at the Closing pursuant
to this Agreement under applicable securities or “Blue Sky” laws of the states
of the United States (or to obtain an exemption from such qualification), and
shall provide evidence of any such action so taken to the Buyers on or prior to
the date hereof to the extent action is required prior to the Closing. The
Company shall make all filings and reports relating to the offer and sale of
the Securities required under applicable securities or “Blue Sky” laws of the
states of the United States following the date hereof.

(c)           Reporting Status. Until
the date on which none of the Securities are outstanding, the Company shall
file all reports required to be filed with the SEC pursuant to the 1934 Act,
and the Company shall not terminate its status as an issuer required to file
reports under the 1934 Act even if the 1934 Act or the rules and regulations
thereunder would otherwise permit such termination; provided  that
nothing in this Section 4(c) shall relieve the Company of its obligations under
the Registration Rights Agreement.

(d)           Use of Proceeds; Redemption of the Existing Notes. The Company will use the proceeds from the sale
of the Notes for the prepayment of existing Indebtedness (as defined in Section
3(k)(ii)) of the Company or its subsidiaries and general working capital
purposes.

(e)           Limitation on New Series of Stock
and Indebtedness. As long as the Notes remain outstanding, the Company
shall not, without the prior written consent of the holders of the Notes representing at least a majority of the
aggregate principal amount of the Notes, create or issue any series or
class of stock, any promissory notes or incur other Indebtedness which ranks senior to the Notes in right of payment, whether
in respect of payment of redemptions, interest, damages or upon liquidation or
dissolution or otherwise after the date hereof, except such consent
shall not be necessary for Indebtedness pursuant to the Credit Agreement (as
defined below) or relating to a refinancing of the Credit Agreement and
Indebtedness relating to working capital not to exceed $50,000,000 in the
aggregate. As long as the Convertible Preferred Stock is outstanding, the
Company shall not, without the prior written consent of two-thirds (2/3) of the
holders of Convertible Preferred Stock create or issue any series or class of
stock, any promissory notes or incur other Indebtedness which ranks senior to or pari passu with
the Convertible Preferred in right of payment, whether with respect of payment
of redemptions, interest, damages or upon liquidation or dissolution or
otherwise after the date hereof, except such consent shall not be
necessary for actions taken pursuant to the Credit Agreement or in relation to
a refinancing of the Credit Agreement and Indebtedness relating to working
capital not to exceed $50,000,000 in the aggregate. For purposes of this
Agreement, “Credit Agreement” means the Credit Agreement, dated as of
December 1, 2003, as 

 16
 

 

amended from time to
time, among SIRVA Worldwide, Inc., a Delaware corporation, the Foreign
Subsidiary Borrowers from time to time parties thereto, the several banks and
other financial institutions from time to time parties thereto, JPMorgan Chase
Bank, N.A. (formerly known as JPMorgan Chase Bank), as administrative agent,
and the other Agents parties thereto.

(f)            Shareholder Approval of
Conversion Event. Provided the Notes remain outstanding, the Company shall
provide each stockholder entitled to vote at the 2007 annual meeting of
stockholders of the Company, which shall not be later than May 31, 2007 (the “Stockholder
Meeting Deadline”), a proxy statement, which has been previously reviewed
by the Buyers, soliciting each such stockholder’s affirmative vote at such
stockholder meeting for approval of the
issuance of the Convertible Preferred Stock and conversion of the Notes into
Convertible Preferred Stock (the “Conversion Event”) as described in the
Transaction Documents in accordance with applicable law and the rules and
regulations of the Principal Market, and the Company shall use its
reasonable best efforts to solicit its stockholders’ approval of such
Conversion Event and to cause the Board of Directors of the Company to
recommend to the stockholders that they approve such proposal.

(g)           Listing
Matters. The Company shall use its reasonable best efforts to maintain the
Common Stock’s authorization for listing on the Principal Market. In the event
that the Company is unable to maintain its Common Stock’s authorization for listing
on the Principal Market, the Company shall use its reasonable best efforts to
cause its Common Stock to be listed or quoted on any of the Nasdaq National Market,
the Nasdaq SmallCap Market or the American Stock Exchange (the “Other
Markets”).

(h)           Fees.
The Company shall be responsible for the payment of any placement agent’s fees,
financial advisory fees, or broker’s commissions relating to or arising out of
the transactions contemplated hereby for placement agents, financial advisors
or brokers engaged by the Company or its Affiliates or agents. The Company
shall pay, and hold the Buyers harmless against, any liability, loss or expense
(including, without limitation, reasonable attorney’s fees and out-of-pocket
expenses) arising in connection with any claim relating to any such payment. Except
as otherwise set forth in the Transaction Documents, each party to this
Agreement shall bear its own expenses in connection with the sale of the
Securities to the Buyers.

(i)            Disclosure
of Transactions and Other Material Information. No later than one Business
Day following the date hereof, the Company shall issue a press release (which
has been previously approved by ValueAct Capital) disclosing the transaction
(the “Press Release”). No later than four Business Days following the date
hereof, the Company shall file a Current Report on Form 8-K (which has been previously
reviewed by ValueAct Capital) describing the terms of the transactions
contemplated by the Transaction Documents in the form required by the 1934 Act,
and attaching the Press Release and this Agreement as exhibits to such Form 8-K
(including all attachments, the “Signing 8-K Filing”). No later than four
Business Days following the Closing, the Company shall file a Current Report on
Form 8-K (which has been previously reviewed by ValueAct Capital) describing
the consummation of the transactions contemplated by the Transaction Documents
and the Amendment (as defined below) in the form required by the 1934 Act, and
attaching the Certificates of Designation and the material Transaction
Documents (the “Closing 8-K Filing”). Subject to the foregoing, neither
the 

 17
 

 

Company
nor the Buyers shall issue any press releases or any other public statements
with respect to the transactions contemplated hereby; provided, however,
that the Company shall be entitled, without the prior approval of the Buyers,
to make any press release or other public disclosure with respect to such
transactions (i) in substantial conformity with the Signing 8-K Filing and the
Closing 8-K Filing and contemporaneously therewith, (ii) as is required by
applicable law and regulations or (iii) to explain the Company’s reasons for
and business analysis behind the transactions contemplated by this Agreement
and the impact of such transactions on the Company’s business. As used herein, “Business
Day” means any day other than Saturday, Sunday or other day on which
commercial banks in The City of New York are authorized or required by law to
remain closed.

(j)            Corporate
Existence. The Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence, rights
(charter and statutory) and franchises, except to the extent that the Board of
Directors shall determine that the failure to do so does not have, and could
not reasonably be expected to have, a Material Adverse Effect; provided,
however, that the Company shall not be required to preserve any right or
franchise if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company
and that the loss thereof is not disadvantageous in any material respect to the
holders of the Securities.

(k)           Payment
of Taxes and Other Claims. The Company will pay or discharge or cause to be
paid or discharged, before the same shall become delinquent, (1) all taxes,
assessments and governmental charges levied or imposed upon it or any
Subsidiary or upon the income, profits or property of the Company or any
Subsidiary, and (2) all lawful claims for labor, materials and supplies which,
if unpaid, becomes, or could reasonably be expected to become, a lien upon the
property of the Company or any Subsidiary and have, or be reasonably expected
to have, a Material Adverse Effect; provided, however, that the
Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings.

(l)            Fundamental
Change Redemption. If a Fundamental Change Purchase Notice (as defined in
the Convertible Preferred Stock Certificate of Designations) is exercised at a
time when the Company is prohibited from repurchasing the Convertible Preferred
Stock for cash by the terms of its Indebtedness, the Company shall use its
reasonable best efforts to obtain the consent of the holders of its
Indebtedness to repurchase the Convertible Preferred Stock for cash or attempt
to refinance the Indebtedness to eliminate such prohibition.

5.             REGISTER;
TRANSFER AGENT INSTRUCTIONS.

(a)           Register.
The Company shall maintain at its principal executive offices (or such other
office or agency of the Company as it may designate by notice to each holder of
the Notes), a register for the Notes, in which the Company shall record the
name and address of the Person in whose name the Notes have been issued
(including the name and address of each transferee) and the principal amount of
Notes held by such Person. The Company shall keep the register open and
available at all times during its business hours for inspection by any holder
or its legal representatives.

 18
 

 

(b)           Transfer
Agent Instructions. The Company shall issue instructions to its transfer
agent, and any subsequent transfer agent, to issue certificates or credit
shares to the applicable balance accounts at The Depository Trust Company (“DTC”),
registered in the name of the applicable Buyer or any subsequent holder or
their respective nominee(s), for the Convertible Preferred Stock and the
Conversion Shares, if any, in such amounts as specified from time to time by the
Company upon conversion of the Note or the conversion of the Convertible
Preferred Stock in the form of Exhibit E attached hereto (the “Transfer
Agent Instructions”). The Company warrants that no instruction other than
the Transfer Agent Instructions referred to in this Section 5(b), and stop
transfer instructions to give effect to Section 2(j) hereof, will be given by
the Company to its transfer agent, and that the Securities shall otherwise be
transferable on the books and records of the Company as and to the extent
provided in this Agreement and the other Transaction Documents. If a Buyer or
subsequent holder effects a sale, assignment or transfer of the Securities in
accordance with Section 2(i), the Company shall permit the transfer in
accordance with the provisions of this Agreement and shall promptly instruct
its transfer agent to issue one or more certificates to the applicable Buyer or
any subsequent holder or their respective nominee(s), if applicable, or certificates
or credit shares to the applicable balance accounts at DTC in such name and in
such denominations as specified by the Company to effect such sale, transfer or
assignment. In the event that such sale, assignment or transfer involves Convertible
Preferred Stock or Conversion Shares sold, assigned or transferred pursuant to
an effective registration statement or pursuant to Rule 144, the transfer agent
shall issue such Securities to the purchaser, assignee or transferee, as the
case may be, without any restrictive legend. The Company acknowledges that a
breach by it of its obligations hereunder will cause irreparable harm to a holder.
Accordingly, the Company acknowledges that the remedy at law for a breach of
its obligations under this Section 5(b) will be inadequate and agrees, in the
event of a breach or threatened breach by the Company of the provisions of this
Section 5(b), that a holder shall be entitled, in addition to all other
available remedies, to an order and/or injunction restraining any breach and
requiring immediate issuance and transfer, without the necessity of showing
economic loss and without any bond or other security being required.

6.             CONDITIONS
TO CLOSING.

(a)           Conditions
to the Company’s Obligations. The obligation of the Company hereunder to
issue the Notes at the Closing is subject to the satisfaction, at or before the
Closing Date, of each of the following conditions; provided that these
conditions are for the Company’s sole benefit and may be waived by the Company
at any time in its sole discretion by providing the Buyers with prior written
notice thereof:

(i)            Each
Buyer shall have executed each of the Transaction Documents to which it is a
party and delivered the same to the Company.

(ii)           The
Company shall have received the Purchase Price for the Notes being purchased by
each Buyer, or in the case of the exercise of the Additional Purchase Option
(as defined in 1(f)), solely from the Non-Defaulting Buyer, by wire transfer of
immediately available funds pursuant to the wire instructions provided by the
Company.

(iii)          The
representations and warranties of the Buyers contained in the Transaction
Documents shall be true and correct in all material respects as of the Closing
Date 

 19
 

 

with the same effect as
though such representations and warranties were made at and as of the Closing
Date (other than any representation or warranty that is expressly made as of a
specified date, which shall be true and correct in all material respects as of
such specified date only), and the Buyers
shall have performed, satisfied and complied in all material respects with the
covenants, agreements and conditions required by this Agreement to be
performed, satisfied or complied with by the Buyers at or prior to the Closing
Date.

(b)           Conditions
to the Buyers’ Obligation. The obligation of the Buyers hereunder to pay their
respective Purchase Price to the Company at the Closing is subject to the
satisfaction, at or before the Closing Date, of each of the following
conditions, provided that these conditions are for Buyers’ sole benefit and may
be waived by the Buyers at any time in their sole discretion by providing the
Company with prior written notice thereof:

(i)            The
Company shall have executed and delivered to the Buyers each of the Transaction
Documents, Certificates of Designations satisfactory to the Buyers in form,
scope and substance in the forms attached as Exhibits hereto and the Notes,
which Notes shall be dated as of the Closing Date.

(ii)           The
Company shall have obtained an eighth amendment (the “Amendment”) to the
Credit Agreement (as defined in Section 4(e)) on or prior to the Closing
Deadline (as defined in Section 1(d)).

(iii)          The
Company shall not have paid, or be obligated to pay, a fee or other charge in
excess of $100,000 (not including legal fees) in order to effect the Amendment.

(iv)          Peter
Kamin and Kelly Barlow (collectively, the “Note Directors”) shall have
been elected or appointed to the Board of Directors and the Company shall have
taken any necessary action to increase the size of the Board of Directors to
allow such election.

(v)           A
Material Adverse Effect that relates to the Company or its performance of its
obligations arising under the Transaction Documents shall not have occurred, or
have been disclosed in an Exchange Act Filing, between the date hereof and the
Closing.

(vi)          The
Buyers shall have received the opinions of Debevoise & Plimpton LLP, the
Company’s counsel, Richard, Layton & Finger, P.A. and the Company’s General
Counsel, each dated as of the Closing Date, in form, scope and substance satisfactory
to the Buyers.

(vii)         The
Company shall have delivered to the Buyers a certificate evidencing the
incorporation and good standing of the Company issued by the Secretary of State
of the State of Delaware as of a date within 10 days of the Closing Date.

(viii)        The
Company shall have delivered to the Buyers a certified copy of the Certificate
of Incorporation as certified by the Secretary of State of the State of
Delaware within 10 days of the Closing Date.

(ix)           The
Company shall have delivered to the Buyers a certificate executed by the
Secretary of the Company and dated as of the Closing Date, in form and substance
acceptable 

 20
 

 

to
Buyers, as to (i) the resolutions consistent with Section 3(c) as adopted by
the Company’s Board of Directors in a form acceptable to the Buyers (the “Resolutions”),
(ii) the Certificate of Incorporation and (iii) the Bylaws, each as in effect
at the Closing.

(x)            The
representations and warranties of the Company contained in the Transaction
Documents shall be true and correct in all material respects (except that any
representation or warranty that is qualified by materiality or Material Adverse
Effect shall be true and correct in all respects) at and as of the Closing Date
with the same effect as though such representations and warranties were made at
and as of the Closing Date (other than any representation or warranty that is
expressly made as of a specified date, which shall be true and correct in all
material respects (or in the case of any representation and warranty that is
qualified by materiality or Material Adverse Effect shall be true and correct
in all respects) as of such specified date only), and the Company shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the
Company at or prior to the Closing Date. The Buyers shall have received a certificate, executed by the Chief
Executive Officer of the Company, dated as of the Closing Date, to the
foregoing effect.

(xi)           The
Company shall have delivered to the Buyers a letter from the Company’s transfer
agent certifying the number of shares of Common Stock outstanding as of a date
within five days of the Closing Date.

(xii)          The
Company shall have delivered to the Buyers such other documents relating to the
transactions contemplated by this Agreement as the Buyer or its counsel may
reasonably request.

(xiii)         Clayton,
Dubilier & Rice Fund V Limited Partnership, Clayton, Dubilier & Rice
Fund VI Limited Partnership, MLF and ValueAct Capital shall have executed the Stockholder Voting Agreement (attached hereto as Exhibit
F).

7.             MISCELLANEOUS.

(a)           Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
the internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New York
or any other jurisdictions) to the extent such provision or rule is not
mandatorily applicable by statute and would cause the application of the laws
of any jurisdictions other than the State of New York. Each party hereby
irrevocably submits to the non-exclusive jurisdiction of the state and federal
courts sitting in The City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party
at the address for such notices to it under this Agreement and agrees that such

 21
 

 

service
shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

(b)           Counterparts.
This Agreement may be executed in two or more identical counterparts, all of
which shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other
parties; provided that a facsimile signature shall be considered due execution
and shall be binding upon the signatory thereto with the same force and effect
as if the signature were an original, not a facsimile signature.

(c)           Headings.
The headings of this Agreement are for convenience of reference and shall not
form part of, or affect the interpretation of, this Agreement.

(d)           Severability.
If any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other
jurisdiction.

(e)           Entire
Agreement; Amendments. This Agreement and the other Transaction Documents
supersede all other prior oral or written agreements between the Buyer, the
Company, their Affiliates and Persons acting on their behalf with respect to
the matters discussed herein, and this Agreement, the other Transaction
Documents and the instruments referenced herein and therein contain the entire
understanding of the parties with respect to the matters covered herein and
therein and, except as specifically set forth herein or therein, neither the
Company nor the Buyers make any representation, warranty, covenant or
undertaking with respect to such matters. No provision of this Agreement may be
amended other than by an instrument in writing signed by the Company and the
holders of the Notes representing at least a majority of the aggregate
principal amount of the Notes, or, if prior to the Closing Date, the Company
and the Buyers. No provision hereof may be waived other than by an instrument
in writing signed by the party against whom enforcement is sought. No such
amendment shall be effective to the extent that it applies to less than all of
the holders of the Notes then outstanding. No consideration shall be offered or
paid to any Person to amend or consent to a waiver or modification of any
provision of any of the Transaction Documents unless the same consideration
also is offered to all of the parties to the Transaction Documents or holders
of Notes, as the case may be. The Company has not, directly or indirectly, made
any agreements with the Buyers relating to the terms or conditions of the
transactions contemplated by the Transaction Documents except as set forth in
the Transaction Documents. Without limiting the foregoing, the Company confirms
that, except as set forth in this Agreement, the Buyers have not made any
commitment or promise and does not have any other obligation to provide any
financing to the Company or otherwise.

 22
 

 

(f)            Notices.
Any notices, consents, waivers or other communications required or permitted to
be given under the terms of this Agreement must be in writing and will be
deemed to have been delivered: (i) upon receipt, when delivered personally;
(ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by
the sending party); or (iii) one Business Day after deposit with an overnight
courier service, in each case properly addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be:

If to the Company:

SIRVA, Inc.

700 Oakmont Lane

Westmont, IL 60559

Facsimile: (630) 468-4706

Attention: General Counsel

with a copy to:

Debevoise & Plimpton LLP

919 Third Avenue

New York, NY 10022

Facsimile: (212) 909-6836

Attention: Paul Brusiloff, Esq.

If to the Transfer Agent:

Mellon Investor Services

200 West Monroe, Suite 1590

Chicago, IL 60601

Facsimile: (312) 325-7610

Attention: Georg Drake

If to ValueAct Capital:

ValueAct Capital Master Fund,
L.P.

435 Pacific Avenue, 4th Floor

San Francisco, California

Facsimile:               (415) 362-5727

Attention:              General Counsel

with a copy to:

Dechert LLP

2929 Arch Street

Philadelphia, Pennsylvania 19104

 23
 

 

Facsimile:               (215) 992-2222

Attention:              Christopher G. Karras,
Esq.

If to MLF:

MLF Offshore Portfolio Company,
L.P.

455 N. Indian Rocks Road, Suite B

Belleair Bluffs, FL 33770

Attention: Matthew L. Feshbach

Fax Number: (727) 450-4959

or
to such other address and/or facsimile number and/or to the attention of such
other Person as the recipient party has specified by written notice given to
each other party five (5) days prior to the effectiveness of such change. Written
confirmation of receipt (A) given by the recipient of such notice, consent,
waiver or other communication, (B) mechanically or electronically generated by
the sender’s facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (C) provided by
an overnight courier service shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from an overnight courier service in accordance
with clause (i), (ii) or (iii) above, respectively.

(g)           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties and their respective successors and assigns, including any
purchasers of the Securities. The Company shall not assign this Agreement or
any rights or obligations hereunder without the prior written consent of the
holders of the Securities representing at least a majority of the aggregate
principal amount of the Notes then outstanding or a majority of the Convertible
Preferred Stock then outstanding, as the case may be, including by merger or
consolidation, except in accordance with the applicable provisions of the Transaction
Documents with respect to which the Company is in compliance with such
provisions of the Transaction Documents. A Buyer may assign, without the
consent of the Company, some or all of its rights hereunder to any Person to
whom such Buyer assigns or transfers Securities, or the right to acquire
Securities, in accordance herewith, provided such transferee agrees in writing
to be bound with respect to the transferred Securities to the provisions hereof
that apply to the transferring Buyer, in which event such assignee shall be
deemed to be a Buyer hereunder with respect to such assigned rights.

(h)           No
Third Party Beneficiaries. This Agreement is intended for the benefit of
the parties hereto and their respective permitted successors and assigns, and
is not for the benefit of, nor may any provision hereof be enforced by, any
other Person.

(i)            Survival.
The representations and warranties of the Company and the Buyer contained in
Sections 2 and 3 and the agreements and covenants set forth in Sections 4, 5
and 7 shall survive the Closing.

(j)            Further
Assurances. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as any other
party may reasonably request 

 24
 

 

in
order to carry out the intent and accomplish the purposes of this Agreement and
the consummation of the transactions contemplated hereby.

(k)           Indemnification.
In consideration of the Buyers’ execution and delivery of the Transaction
Documents and acquiring the Securities hereunder and thereunder and in addition
to all of the Company’s other obligations under the Transaction Documents, the
Company shall defend, protect, indemnify and hold harmless the Buyers and each
other holder of the Securities and all of their stockholders, partners,
members, officers, directors, employees and direct or indirect investors and
any of the foregoing Persons’ agents or other representatives (including,
without limitation, those retained in connection with the transactions
contemplated by this Agreement) (collectively, the “Buyer Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses,
costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Buyer Indemnitee is a party to the
action for which indemnification hereunder is sought), and including reasonable
attorneys’ fees and disbursements (the “Buyer Indemnified Liabilities”),
incurred by any Buyer Indemnitee as a result of, or arising out of, or relating
to (a) any misrepresentation or breach of any representation or warranty made
by the Company in the Transaction Documents, (b) any breach of any covenant,
agreement or obligation of the Company contained in the Transaction Documents
or (c) any cause of action, suit or claim brought or made against such Buyer
Indemnitee by a third party (including for these purposes a derivative action
brought on behalf of the Company) and arising out of or resulting from other
than those arising from or resulting from a misrepresentation or breach of any
representation or warranty made by such Buyer Indemnitee contained in the
Transaction Documents or a breach of any covenant, agreement or obligation by
such Buyer Indemnitee contained in the Transaction Documents or from the gross
negligence, willful misconduct or bad faith of such Buyer Indemnitee, the
execution, delivery, performance or enforcement of the Transaction Documents. To
the extent that the foregoing undertaking by the Company may be unenforceable
for any reason, the Company shall make the maximum contribution to the payment
and satisfaction of each of the Indemnified Liabilities which is permissible
under applicable law. Except as otherwise set forth herein, the mechanics and
procedures with respect to the rights and obligations under this Section 7(k)
shall be the same as those set forth in Section 6 of the Registration Rights
Agreement.

(l)            No
Strict Construction. The language used in this Agreement will be deemed to
be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party.

(m)          Remedies.
The Buyers and each holder of the Securities shall have all rights and remedies
set forth in the Transaction Documents and all rights and remedies which such
holders have been granted at any time under any other agreement or contract and
all of the rights which such holders have under any law. Any Person having any
rights under any provision of any of the Transaction Documents shall be
entitled to enforce such rights specifically (without posting a bond or other
security), to recover damages by reason of any breach of any provision of any
of the Transaction Documents and to exercise all other rights granted by law. Furthermore,
the Company recognizes that in the event that it fails to perform, observe, or
discharge any or all of its obligations under any of the Transaction Documents,
any remedy at law may prove to be inadequate relief to the Buyers. The Company therefore
agrees that the Buyers shall be entitled to seek temporary and permanent
injunctive relief in any such 

 25
 

 

case
without the necessity of proving actual damages and without posting a bond or
other security.

(n)           Payment
Set Aside. To the extent that the Company makes a payment or payments to
the Buyers hereunder or pursuant to any of the other Transaction Documents or
the Buyers enforce or exercises their rights hereunder or thereunder, and such
payment or payments or the proceeds of such enforcement or exercise or any part
thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside, recovered from, disgorged by or are required to be
refunded, repaid or otherwise restored to the Company, a trustee, receiver or
any other Person under any law (including, without limitation, any bankruptcy
law, state or federal law, common law or equitable cause of action), then to
the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and
effect as if such payment had not been made or such enforcement or setoff had
not occurred.

(o)           Knowledge.
For purposes of this Agreement, the terms “knowledge of the Company” or “the
Company’s knowledge” means the actual knowledge of the executive officers of
the Company.

[Signature Pages Follow]

 26

 

IN WITNESS WHEREOF, the Buyers and the Company have caused their respective signature page to
this Securities Purchase Agreement to be duly executed as of the date first
written above.

	
  

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  SIRVA, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Michael Kirksey

  
	
   

  	
  Name:

  	
  J. Michael Kirksey

  
	
   

  	
  Title:

  	
  Senior Vice President and Chief Financial Officer

  

 

 

IN WITNESS WHEREOF, the Buyers and the Company have caused their respective signature page to
this Securities Purchase Agreement to be duly executed as of the date first
written above.

	
  

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  VALUEACT CAPITAL MASTER FUND, L.P.

  
	
   

  	
  By: VA Partners, LLC, its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George F. Hamel, Jr.

  
	
   

  	
  Name:

  	
  George F. Hamel, Jr.

  
	
   

  	
  Title:

  	
  Managing Member

  

 

 

IN WITNESS WHEREOF, the Buyers and the Company have caused their respective signature page to
this Securities Purchase Agreement to be duly executed as of the date first
written above.

	
  

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  MLF OFFSHORE PORTFOLIO COMPANY, LP

  
	
   

  	
  By: its general partner, MLF Cayman GP, Ltd.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Matthew L. Feshbach

  
	
   

  	
  Name:

  	
  Matthew L. Feshbach

  
	
   

  	
  Title:

  	
  Director

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