Document:

FORM OF INDENTURE

 

Exhibit 4.6

THE GEO GROUP, INC.,

ISSUER

AND

THE BANK OF NEW YORK,

TRUSTEE

Indenture

Dated as of _______, 200_

DEBT SECURITIES

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	

	ARTICLE ONE	 	
DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 	 	 	 	 	 	 
	Section 1.01	 	
Definitions
	 	 	1	 
	Section 1.02	 	
Incorporation by Reference of Trust Indenture Act
	 	 	6	 
	Section 1.03	 	
Rules of Construction
	 	 	7	 
	 	 	 	 	 	 	 
	ARTICLE TWO	 	
ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES
	 	 	7	 
	 	 	 	 	 	 	 
	Section 2.01	 	
Designation And Terms Of Securities
	 	 	7	 
	Section 2.02	 	
Form of Securities and Trustee’s Certificate
	 	 	10	 
	Section 2.03	 	
Denominations: Provisions For Payment
	 	 	10	 
	Section 2.04	 	
Execution and Authentication
	 	 	12	 
	Section 2.05	 	
Transfer and Exchange
	 	 	12	 
	Section 2.06	 	
Temporary Securities
	 	 	13	 
	Section 2.07	 	
Mutilated, Destroyed, Lost Or Stolen Securities
	 	 	14	 
	Section 2.08	 	
Cancellation
	 	 	15	 
	Section 2.09	 	
Benefits Of Indenture
	 	 	15	 
	Section 2.10	 	
Authenticating Agent
	 	 	15	 
	Section 2.11	 	
Global Securities
	 	 	16	 
	 	 	 	 	 	 	 
	ARTICLE THREE	 	
REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
	 	 	17	 
	 	 	 	 	 	 	 
	Section 3.01	 	
Redemption
	 	 	17	 
	Section 3.02	 	
Notice Of Redemption
	 	 	17	 
	Section 3.03	 	
Selection of Securities to be Redeemed
	 	 	18	 
	Section 3.04	 	
Effect of Notice of Redemption
	 	 	18	 
	Section 3.05	 	
Payment Upon Redemption
	 	 	18	 
	Section 3.06	 	
Sinking Fund
	 	 	19	 
	Section 3.07	 	
Satisfaction Of Sinking Fund Payments With Securities
	 	 	19	 
	Section 3.08	 	
Redemption Of Securities For Sinking Fund
	 	 	19	 
	 	 	 	 	 	 	 
	ARTICLE FOUR	 	
COVENANTS
	 	 	20	 
	 	 	 	 	 	 	 
	Section 4.01	 	
Payment Of Principal, Premium And Interest
	 	 	20	 
	Section 4.02	 	
Maintenance of Office or Agency
	 	 	20	 
	Section 4.03	 	
Paying Agents
	 	 	20	 
	Section 4.04	 	
Holder Lists
	 	 	21	 
	Section 4.05	 	
Compliance Certificates
	 	 	21	 
	Section 4.06	 	
Reports By The Company
	 	 	22	 

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	 	 	 	 	Page
	 	 	 	 	

	 	 	 	 	 	 	 
	ARTICLE FIVE	 	
SUCCESSOR ENTITY
	 	 	22	 
	 	 	 	 	 	 	 
	Section 5.01	 	
Company May Consolidate, Etc.
	 	 	22	 
	Section 5.02	 	
Successor Entity Substituted
	 	 	22	 
	Section 5.03	 	
Evidence of Consolidation, Etc to Trustee
	 	 	23	 
	 	 	 	 	 	 	 
	ARTICLE SIX	 	
DEFAULTS AND REMEDIES
	 	 	23	 
	 	 	 	 	 	 	 
	Section 6.01	 	
Events of Default
	 	 	23	 
	Section 6.02	 	
Acceleration
	 	 	24	 
	Section 6.03	 	
Collection of Indebtedness and Suits For Enforcement by Trustee
	 	 	25	 
	Section 6.04	 	
Application Of Moneys Collected
	 	 	26	 
	Section 6.05	 	
Waiver of Past Defaults
	 	 	26	 
	Section 6.06	 	
Control by Majority
	 	 	27	 
	Section 6.07	 	
Limitation On Suits
	 	 	27	 
	Section 6.08	 	
Rights of Holders of Securities to Receive Payment
	 	 	28	 
	Section 6.09	 	
Undertaking for Costs
	 	 	28	 
	 	 	 	 	 	 	 
	ARTICLE SEVEN	 	
TRUSTEE
	 	 	29	 
	 	 	 	 	 	 	 
	Section 7.01	 	
Certain Duties And Responsibilities Of Trustee
	 	 	29	 
	Section 7.02	 	
Certain Rights of Trustee
	 	 	30	 
	Section 7.03	 	
Individual Rights of Trustee
	 	 	31	 
	Section 7.04	 	
Trustee Not Responsible For Recitals Or Issuance Or Securities
	 	 	31	 
	Section 7.05	 	
May Hold Securities
	 	 	32	 
	Section 7.06	 	
Moneys Held In Trust
	 	 	32	 
	Section 7.07	 	
Notice Of Default
	 	 	32	 
	Section 7.08	 	
Reports By The Trustee
	 	 	32	 
	Section 7.09	 	
Reliance On Officers’ Certificate
	 	 	32	 
	Section 7.10	 	
Preservation Of Information; Communications With Holders
	 	 	33	 
	Section 7.11	 	
Preferential Collection of Claims Against Company
	 	 	33	 
	Section 7.12	 	
Corporate Trustee Required; Eligibility; Disqualification; Conflicting Interests
	 	 	33	 
	Section 7.13	 	
Compensation And Reimbursement
	 	 	33	 
	Section 7.14	 	
Resignation And Removal; Appointment Of Successor
	 	 	34	 
	Section 7.15	 	
Acceptance Of Appointment By Successor
	 	 	35	 
	Section 7.16	 	
Merger, Conversion, Consolidation Or Succession To Business
	 	 	36	 
	 	 	 	 	 	 	 
	ARTICLE EIGHT	 	
DEFEASANCE AND COVENANT DEFEASANCE
	 	 	37	 
	 	 	 	 	 	 	 
	Section 8.01	 	
Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	37	 
	Section 8.02	 	
Legal Defeasance and Discharge
	 	 	37	 
	Section 8.03	 	
Covenant Defeasance
	 	 	37	 
	Section 8.04	 	
Conditions to Legal or Covenant Defeasance
	 	 	38	 
	Section 8.05	 	
Deposited Money and Government Securities to Be Held in Trust; Other
Miscellaneous Provisions
	 	 	39	 
	Section 8.06	 	
Repayment to the Company
	 	 	40	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	

	Section 8.07	 	
Reinstatement
	 	 	40	 
	 	 	 	 	 	 	 
	ARTICLE NINE	 	
AMENDMENT, SUPPLEMENT AND WAIVER
	 	 	40	 
	 	 	 	 	 	 	 
	Section 9.01	 	
Without Consent of Holders of Securities
	 	 	40	 
	Section 9.02	 	
With Consent of Holders of Securities
	 	 	41	 
	Section 9.03	 	
Compliance with Trust Indenture Act
	 	 	43	 
	Section 9.04	 	
Revocation and Effect of Consents
	 	 	43	 
	Section 9.05	 	
Notation on or Exchange of Securities
	 	 	43	 
	Section 9.06	 	
Trustee to Sign Amendments, Etc.
	 	 	44	 
	 	 	 	 	 	 	 
	ARTICLE TEN	 	
SATISFACTION AND DISCHARGE
	 	 	44	 
	 	 	 	 	 	 	 
	Section 10.01	 	
Satisfaction and Discharge
	 	 	44	 
	Section 10.02	 	
Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous
Provisions
	 	 	45	 
	Section 10.03	 	
Repayment to the Company
	 	 	45	 
	 	 	 	 	 	 	 
	ARTICLE ELEVEN	 	
MISCELLANEOUS
	 	 	45	 
	 	 	 	 	 	 	 
	Section 11.01	 	
Trust Indenture Act Controls
	 	 	45	 
	Section 11.02	 	
Notices
	 	 	45	 
	Section 11.03	 	
Communication by Holders of Securities with Other Holders of Securities
	 	 	47	 
	Section 11.04	 	
Certificate and Opinion as to Conditions Precedent
	 	 	47	 
	Section 11.05	 	
Statements Required in Certificate or Opinion
	 	 	47	 
	Section 11.06	 	
Rules by Trustee and Agents
	 	 	48	 
	Section 11.07	 	
No Personal Liability of Directors, Officers, Employees and Shareholders
	 	 	48	 
	Section 11.08	 	
Governing Law
	 	 	48	 
	Section 11.09	 	
Consent to Jurisdiction
	 	 	48	 
	Section 11.10	 	
No Adverse Interpretation of Other Agreements
	 	 	49	 
	Section 11.11	 	
Successors and Assigns
	 	 	49	 
	Section 11.12	 	
Severability
	 	 	49	 
	Section 11.13	 	
Counterpart Originals
	 	 	49	 
	Section 11.14	 	
Acts of Holders
	 	 	49	 
	Section 11.15	 	
Benefit of Indenture
	 	 	50	 
	Section 11.16	 	
Table of Contents, Headings, Etc.
	 	 	51	 
	Section 11.17	 	
Waiver of Jury Trial
	 	 	51	 

iii

 

INDENTURE

     INDENTURE, dated as of      , 200     , among THE GEO GROUP, INC.,
a Florida corporation (the “Company”), the guarantors listed on Schedule 1
hereto (herein called the “Guarantors”) and THE BANK OF NEW YORK, as trustee
(the “Trustee”):

     WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance of debt securities (hereinafter referred to as the “Securities”), in
an unlimited aggregate principal amount to be issued from time to time in one
or more series as in this Indenture provided, as registered Securities without
coupons, to be authenticated by the certificate of the Trustee;

     WHEREAS, to provide the terms and conditions upon which the Securities are
to be authenticated, issued and delivered, the Company has duly authorized the
execution of this Indenture; and

     WHEREAS, all things necessary to make this Indenture a valid agreement of
the Company, in accordance with its terms, have been done.

     NOW, THEREFORE, in consideration of the premises and the purchase of the
Securities by the holders thereof, it is mutually covenanted and agreed as
follows for the equal and ratable benefit of the holders of Securities:

ARTICLE ONE

DEFINITIONS AND INCORPORATION

BY REFERENCE

Section 1.01 Definitions.

     The terms defined in this Section (except as in this Indenture or any
indenture supplemental hereto otherwise expressly provided or unless the
context otherwise requires) for all purposes of this Indenture and of any
indenture supplemental hereto shall have the respective meanings specified in
this Section and shall include the plural as well as the singular. All other
terms used in this Indenture that are defined in the Trust Indenture Act of
1939, as amended, or that are by reference in such Act defined in the
Securities Act of 1933, as amended (except as herein or any indenture
supplemental hereto otherwise expressly provided or unless the context
otherwise requires), shall have the meanings assigned to such terms in said
Trust Indenture Act and in said Securities Act as in force at the date of the
execution of this instrument.

     “Affiliate” of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition,
“control,” as used with respect to any Person, shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise; provided that beneficial ownership of
10% or more of the Voting Stock of a Person will be deemed to be control. For
purposes of this definition, the terms “controlling,” “controlled by” and
“under common control with” shall have correlative meanings.

 

 

     “Agent” means any Registrar, paying agent or co-registrar.

     “Authenticating Agent” means an authenticating agent with respect to all
or any of the series of Securities appointed by the Trustee pursuant to Section
2.10.

     “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state
law for the relief of debtors.

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and
Rule 13d-5 under the Exchange Act, except that in calculating the beneficial
ownership of any particular “person” (as that term is used in Section 13(d)(3)
of the Exchange Act), such “person” shall be deemed to have beneficial
ownership of all securities that such “person” has the right to acquire by
conversion or exercise of other securities, whether such right is currently
exercisable or is exercisable only upon the occurrence of a subsequent
condition. The terms “Beneficially Owns” and “Beneficially Owned” shall have a
corresponding meaning.

     “Board of Directors” means: (1) with respect to a corporation, the board
of directors of the corporation; (2) with respect to a partnership, the board
of directors of the general partner of the partnership; and (3) with respect to
any other Person, the board or committee of such Person serving a similar
function.

     “Business Day” means any day which is not a Legal Holiday.

     “Capital Lease Obligation” means, at the time any determination thereof is
to be made, the amount of the liability in respect of a capital lease that
would at that time be required to be capitalized on a balance sheet in
accordance with GAAP.

     “Capital Stock” means (1) in the case of a corporation, corporate stock;
(2) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
corporate stock; (3) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and (4) any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person.

     “Company” means The GEO Group, Inc.

     “Continuing Directors” means, as of any date of determination, any member
of the Board of Directors of the Company who:

		
	 	     (1) was a member of such Board of Directors on the date of this
Indenture; or

		
	 	     (2) was nominated for election or elected to such Board of Directors
with the approval of a majority of the Continuing Directors who were
members of such Board at the time of such nomination or election.

     “Corporate Trust Operations Office” means the principal office of the
Trustee at which at any time its corporate trust business shall be
administered, which office at the date hereof is located at the address of the
Trustee specified in Section 11.02 hereof, or such other

2

 

address as to which the Trustee may from time to time give notice to the
Company and to the Holders.

     “Default” means any event that is, or with the passage of time or the
giving of notice or both, would be, an Event of Default.

     “Defaulted Interest” has the meaning given to it in Section 2.03(c).

     “Depositary” means, with respect to Securities of any series for which the
Company shall determine that such Securities will be issued as a Global
Security, The Depositary Trust Company, New York, New York, another clearing
agency, or any successor registered as a clearing agency under the Exchange
Act, or other applicable statute or regulation, which, in each case, shall be
appointed as depositary hereunder and having become such pursuant to the
applicable provisions of this Indenture.

     “Event of Default” has the meaning given to it in Section 6.01.

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

     “GAAP” means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession as amended and/or modified from time to time.

     “Global Security” means, with respect to any series of Securities, a
Security executed by the Company and delivered by the Trustee to the Depositary
or pursuant to the Depositary’s instruction, all in accordance with the
Indenture, which shall be registered in the name of the Depositary or its
nominee.

     “Government Securities” means securities issued or directly and fully
guaranteed or insured by the United States government or any agency or
instrumentality of the United States government; provided that the full faith
and credit of the United States is pledged in support of those securities.

     “Guarantee” means a guarantee other than by endorsement of negotiable
instruments for collection or deposit in the ordinary course of business,
direct or indirect, in any manner including, without limitation, by way of a
pledge of assets or through letters of credit or reimbursement agreements in
respect thereof, of all or any part of any Indebtedness.

     “Guarantors” means any Subsidiary that executes a Guarantee, in form and
substance acceptable to the Trustee, providing for the Guarantee of the payment
of the Securities of any series in accordance with provisions of this Indenture
or any supplemental indentures, and its respective successors and assigns.

     “Hedging Obligations” means, with respect to any specified Person, the
obligations of such Person under:

3

 

		
	 	     (1) interest rate swap agreements, interest rate cap agreements and
interest rate collar agreements; and

		
	 	     (2) other agreements or arrangements designed to protect such Person
against fluctuations in interest rates.

     “Holder” means a Person in whose name a Security is registered on the
books of the Company kept for that purpose in accordance with the terms of this
Indenture.

     “Indebtedness” means, with respect to any specified Person, any
indebtedness of such Person, whether or not contingent:

		
	 	     (1) in respect of borrowed money;

		
	 	     (2) evidenced by bonds, notes, debentures or similar instruments or
letters of credit (or reimbursement agreements in respect thereof);

		
	 	     (3) in respect of banker’s acceptances;

		
	 	     (4) representing Capital Lease Obligations;

		
	 	     (5) representing the balance deferred and unpaid of the purchase
price of any property, except any such balance that constitutes an
accrued expense or trade payable; or

		
	 	     (6) representing any Hedging Obligations,

if and to the extent any of the preceding items (other than letters of credit
and Hedging Obligations) would appear as a liability upon a balance sheet of
the specified Person prepared in accordance with GAAP. In addition, the term
“Indebtedness” includes all Indebtedness of others secured by a Lien on any
asset of the specified Person (whether or not such Indebtedness is assumed by
the specified Person) and, to the extent not otherwise included, the Guarantee
by the specified Person of any Indebtedness of any other Person.

     The amount of any Indebtedness outstanding as of any date will be:

		
	 	     (A) the accreted value of the Indebtedness, in the case of any
Indebtedness issued with original issue discount; and

		
	 	     (B) the principal amount of the Indebtedness, together with any
interest on the Indebtedness that is more than 30 days past due, in the
case of any other Indebtedness.

     “Indenture” means this Indenture, as amended or supplemented from time to
time.

     “Interest Payment Date,” when used with respect to any installment of
interest on a Security of a particular series, means the date specified in such
Security or in a Board Resolution or in an indenture supplemental hereto with
respect to such series as the fixed date on which an installment of interest
with respect to Securities of that series is due and payable.

4

 

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking
institutions in The City of New York or at a place of payment are authorized by
law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue
on such payment for the intervening period.

     “Officer” means, with respect to any Person, the Chairman of the Board,
the Chief Executive Officer, the President, the Chief Operating Officer, the
Chief Financial Officer, the Treasurer, any Assistant Treasurer, the
Controller, the Secretary, an Assistant Secretary or any Vice-President of such
Person.

     “Officers’ Certificate” means a certificate signed on behalf of the
Company by at least two Officers of the Company, one of whom must be the
principal executive officer, the principal financial officer, the treasurer or
the principal accounting officer of the Company, that meets the requirements of
Section 11.05 hereof.

     “Opinion of Counsel” means an opinion from legal counsel who is reasonably
acceptable to the Trustee, that meets the requirements of Section 11.05 hereof.
The counsel may be an employee of or counsel to the Company, any Subsidiary of
the Company or the Trustee.

     “Person” means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, limited
liability company or government or other entity.

     “Predecessor Security” of any particular Security means every previous
Security evidencing all or a portion of the same Indebtedness as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 2.07 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same Indebtedness
as the lost, destroyed or stolen Security.

     “Responsible Officer,” when used with respect to the Trustee, means any
vice president, assistant vice president, treasurer, assistant treasurer or
other trust officer within the Corporate Trust Operations Office of the Trustee
(or any successor group of the Trustee) or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of his
or her knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Indenture.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the debt Securities authenticated and delivered under
this Indenture.

     “Security Register” has the meaning given to it in Section 2.05.

     “Security Registrar” has the meaning given to it in Section 2.05.

5

 

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

     “Stated Maturity” means, with respect to any installment of interest or
principal on any series of Indebtedness, the date on which such payment of
interest or principal was scheduled to be paid in the original documentation
governing such Indebtedness, and shall not include any contingent obligations
to repay, redeem or repurchase any such interest or principal prior to the date
originally scheduled for the payment thereof.

     “Subsidiary” means, with respect to any specified Person: (1) 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 (2) 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 one or more
Subsidiaries of such Person (or any combination thereof).

     “TIA” means the Trust Indenture Act of 1939, as in effect on the date on
which this Indenture is qualified under the TIA.

     “Trustee” means The Bank of New York, until a successor replaces it in
accordance with the applicable provisions of this Indenture and thereafter
means the successor serving hereunder.

     “U.S. Dollar Equivalent” means with respect to any monetary amount in a
currency other than U.S. dollars, at the time for determination thereof, the
amount of U.S. dollars obtained by converting such foreign currency involved in
such computation into U.S. dollars at the spot rate for the purchase of U.S.
dollars with the applicable foreign currency as published in The Wall Street
Journal in the “Exchange Rates” table under the heading “Currency Trading” on
the date two Business Days prior to such determination.

     Whenever it is necessary to determine whether the Company has complied
with any covenant in this Indenture or a Default has occurred and an amount is
expressed in a currency other than U.S. dollars, such amount will be treated as
the U.S. Dollar Equivalent determined as of the date such amount was initially
incurred in such currency.

     “Voting Stock” of any Person as of any date means the Capital Stock of
such Person that is at the time entitled to vote in the election of the Board
of Directors of such Person.

Section 1.02 Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture.

     The following TIA terms used in this Indenture have the following
meanings:

     “indenture securities” means any Securities issued pursuant to this
Indenture;

6

 

     “indenture security Holder” means a Holder of a Security;

     “indenture to be qualified” means this Indenture;

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

     “obligor” on the Securities means the Company and any successor
obligor upon the Securities.

     All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the
TIA have the meanings so assigned to them.

Section 1.03 Rules of Construction.

     Unless the context otherwise requires:

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

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

		
	 	     (iii) “or” is not exclusive;

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

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

		
	 	     (vi) references to sections of or rules under the Securities Act
shall be deemed to include substitute, replacement of successor sections
or rules adopted by the SEC from time to time.

ARTICLE TWO

ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES

Section 2.01 Designation And Terms Of Securities.

     (a)  The aggregate principal amount of Securities that may be authenticated
and delivered under this Indenture is unlimited. The Securities may be issued
in one or more series up to the aggregate principal amount of Securities of
that series from time to time authorized by or pursuant to a Board Resolution
or pursuant to one or more indentures supplemental hereto. Prior to the
initial issuance of Securities of any series, there shall be established in or
pursuant to a Board Resolution, and set forth in an Officers’ Certificate, or
established in one or more indentures supplemental hereto:

		
	 	     (i) the title of the Securities of the series (which shall
distinguish the Securities of that series from all other Securities);

7

 

		
	 	     (ii) any limit upon the aggregate principal amount of the Securities
of the series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities of that series);

		
	 	     (iii) the date or dates on which the principal of the Securities of
the series is payable, any original issue discount that may apply to the
Securities of that series upon their issuance, the principal amount due
at maturity, and the place(s) of payment;

		
	 	     (iv) the rate or rates at which the Securities of the series shall
bear interest or the manner of calculation of such rate or rates, if any;

		
	 	     (v) the date or dates from which such interest shall accrue, the
Interest Payment Dates on which such interest will be payable or the
manner of determination of such Interest Payment Dates, the place(s) of
payment, and the record date for the determination of holders to whom
interest is payable on any such Interest Payment Dates or the manner of
determination of such record dates;

		
	 	     (vi) the right, if any, to extend the interest payment periods and
the duration of such extension;

		
	 	     (vii) the period or periods within which, the price or prices at
which and the terms and conditions upon which Securities of the series
may be redeemed, in whole or in part, at the option of the Company;

		
	 	     (viii) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund, mandatory
redemption, or analogous provisions (including payments made in cash in
satisfaction of future sinking fund obligations) or at the option of a
holder thereof and the period or periods within which, the price or
prices at which, and the terms and conditions upon which, Securities of
the series shall be redeemed or purchased, in whole or in part, pursuant
to such obligation;

		
	 	     (ix) the form of the Securities of the series including the form of
the certificate of authentication for such series;

		
	 	     (x) if other than denominations of one thousand U.S. dollars
($1,000) or any integral multiple thereof, the denominations in which the
Securities of the series shall be issuable;

		
	 	     (xi) any and all other terms (including terms, to the extent
applicable, relating to any auction or remarketing of the Securities of
the series and any security for the obligations of the Company with
respect to such Securities) with respect to such series of Securities
(which terms shall not be inconsistent with the terms of this Indenture,
as amended by any supplemental indenture) including any terms which may
be required by or advisable under United States laws or regulations or
advisable in connection with the marketing of Securities of that series;

8

 

		
	 	     (xii) whether the Securities of the series are issuable as a Global
Security and, in such case, the terms and the identity of the Depositary
for such series;

		
	 	     (xiii) whether the Securities of the series will be convertible into
or exchangeable for shares of common stock or other securities of the
Company or any other Person and, if so, the terms and conditions upon
which such Securities will be so convertible or exchangeable, including
the conversion or exchange price, as applicable, or how it will be
calculated and may be adjusted, any mandatory or optional (at the
Company’s option or the holders’ option) conversion or exchange features,
and the applicable conversion or exchange period;

		
	 	     (xiv) if other than the principal amount thereof, the portion of the
principal amount of Securities of the series which shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section
6.01;

		
	 	     (xv) any additional or different Events of Default or restrictive
covenants (which may include, among other restrictions, restrictions on
the Company’s ability or the ability of the Company’s Subsidiaries to:
incur additional Indebtedness; issue additional securities; create liens;
pay dividends or make distributions in respect of their capital stock;
redeem capital stock; place restrictions on such Subsidiaries placing
restrictions on their ability to pay dividends, make distributions or
transfer assets; make investments or other restricted payments; sell or
otherwise dispose of assets; enter into sale-leaseback transactions;
engage in transactions with shareholders and affiliates; issue or sell
stock of their Subsidiaries; or effect a consolidation or merger) or
financial covenants (which may include, among other financial covenants,
financial covenants that require the Company and its Subsidiaries to
maintain specified interest coverage, fixed charge, cash flow-based or
asset-based ratios) provided for with respect to the Securities of the
series;

		
	 	     (xvi) if other than dollars, the coin or currency in which the
Securities of the series are denominated (including, but not limited to,
foreign currency);

		
	 	     (xvii) the terms and conditions, if any, upon which the Company
shall pay amounts in addition to the stated interest, premium, if any,
and principal amounts, with respect to the Securities of the series to
any Holder that is not a “United States person” for federal tax purposes;

		
	 	     (xviii) any restrictions on transfer, sale or assignment of the
Securities of the series; and

		
	 	     (xix) the form and terms of any guarantee of any Securities of the
series.

     All Securities of any one series shall be substantially identical except
as to denomination and except as may otherwise be provided in or pursuant to
any such Board Resolution or in any indentures supplemental hereto.

     If any of the terms of the series are established by action taken pursuant
to a Board Resolution of the Company, a copy of an appropriate record of such
action shall be certified by

9

 

 the secretary or an assistant secretary of the Company and delivered to
the Trustee at or prior to the delivery of the Officers’ Certificate of the
Company setting forth the terms of the series.

     Securities of any particular series may be issued at various times, with
different dates on which the principal or any installment of principal is
payable, with different rates of interest, if any, or different methods by
which rates of interest may be determined, with different dates on which such
interest may be payable and with different redemption dates.

Section 2.02 Form of Securities and Trustee’s Certificate.

     General. The Securities of any series and the Trustee’s certificate of
authentication shall be substantially of the tenor and purport as set forth in
one or more indentures supplemental hereto or as provided in a Board
Resolution, and set forth in an Officers’ Certificate, and they may have such
letters, numbers or other marks of identification or designation and such
legends or endorsements printed, lithographed or engraved thereon as the
Company may deem appropriate and as are not inconsistent with the provisions of
this Indenture, or as may be required to comply with any law or with any rule
or regulation made pursuant thereto or with any rule or regulation of any
securities exchange on which Securities of that series may be listed, or to
conform to usage.

Section 2.03 Denominations: Provisions For Payment.

     (a)  The Securities shall be issuable as registered Securities and in the
denominations of one thousand U.S. dollars ($1,000) or any integral multiple
thereof, subject to Section 2.01(10). The Securities of a particular series
shall bear interest payable on the dates and at the rate specified with respect
to that series. The principal of and the interest on the Securities of any
series, as well as any premium thereon in case of redemption thereof prior to
maturity, shall be payable in the coin or currency of the United States of
America that at the time is legal tender for public and private debt, at the
office or agency of the Company maintained for that purpose in the Borough of
Manhattan, the City and State of New York. Each Security shall be dated the
date of its authentication. Interest on the Securities shall be computed on
the basis of a 360-day year composed of twelve 30-day months.

     (b)  The interest installment on any Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date for
Securities of that series shall be paid to the Person in whose name said
Security (or one or more Predecessor Securities) is registered at the close of
business on the regular record date for such interest installment. In the
event that any Security of a particular series or portion thereof is called for
redemption and the redemption date is subsequent to a regular record date with
respect to any Interest Payment Date and prior to such Interest Payment Date,
interest on such Security will be paid upon presentation and surrender of such
Security as provided in Section 3.05.

     (c)  Any interest on any Security that is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date for Securities of the
same series (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the registered holder on the relevant regular record date by virtue
of having been such holder; and such Defaulted Interest shall be paid by the
Company, at its election, as provided in clause (i) or clause (ii) below:

10

 

		
	 	     (i) The Company may make payment of any Defaulted Interest on
Securities to the Persons in whose names such Securities (or their
respective Predecessor Securities) are registered at the close of
business on a special record date for the payment of such Defaulted
Interest, which shall be fixed in the following manner: the Company shall
notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each such Security and the date of the proposed
payment, and at the same time the Company shall deposit with the Trustee
an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this
clause provided. Thereupon the Trustee shall fix a special record date
for the payment of such Defaulted Interest which shall not be more than
15 nor less than 10 days prior to the date of the proposed payment and
not less than 10 days after the receipt by the Trustee of the notice of
the proposed payment. The Trustee shall promptly notify the Company of
such special record date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted
Interest and the special record date therefor to be mailed, first class
postage prepaid, to each Holder at his or her address as it appears in
the Security Register (as hereinafter defined), not less than 10 days
prior to such special record date. Notice of the proposed payment of
such Defaulted Interest and the special record date therefor having been
mailed as aforesaid, such Defaulted Interest shall be paid to the Persons
in whose names such Securities (or their respective Predecessor
Securities) are registered on such special record date.

		
	 	     (ii) The Company may make payment of any Defaulted Interest on any
Securities in any other lawful manner not inconsistent with the
requirements of any securities exchange on which such Securities may be
listed, and upon such notice as may be required by such exchange, if,
after notice given by the Company to the Trustee of the proposed payment
pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

     (d)  Unless otherwise set forth in a Board Resolution or one or more
indentures supplemental hereto establishing the terms of any series of
Securities pursuant to Section 2.01 hereof, the term “regular record date” as
used in this Section with respect to a series of Securities and any Interest
Payment Date for such series shall mean either the fifteenth day of the month
immediately preceding the month in which an Interest Payment Date established
for such series pursuant to Section 2.01 hereof shall occur, if such Interest
Payment Date is the first day of a month, or the last day of the month
immediately preceding the month in which an Interest Payment Date established
for such series pursuant to Section 2.01 hereof shall occur, if such Interest
Payment Date is the fifteenth day of a month, whether or not such date is a
Business Day.

     (e) Subject to the foregoing provisions of this Section, each Security of
a series delivered under this Indenture upon transfer of or in exchange for or
in lieu of any other Security of such series shall carry the rights to interest
accrued and unpaid, and to accrue, that were carried by such other Security.

11

 

Section 2.04 Execution and Authentication.

     The Securities shall be signed on behalf of the Company by one of its
Officers, under its corporate seal attested by its secretary or one of its
assistant secretaries. Signatures may be in the form of a manual or facsimile
signature.

     The Company may use the facsimile signature of any Person who shall have
been an Officer, notwithstanding the fact that at the time the Securities shall
be authenticated and delivered or disposed of such Person shall have ceased to
be such an officer of the Company. The seal of the Company may be in the form
of a facsimile of such seal and may be impressed, affixed, imprinted or
otherwise reproduced on the Securities. The Securities may contain such
notations, legends or endorsements required by law, stock exchange rule or
usage. Each Security shall be dated the date of its authentication by the
Trustee.

     A Security shall not be valid until authenticated manually by an
authorized signatory of the Trustee. Such signature shall be conclusive
evidence that the Security so authenticated has been duly authenticated and
delivered hereunder and that the holder is entitled to the benefits of this
Indenture. At any time and from time to time after the execution and delivery
of this Indenture, the Company may deliver Securities of any series executed by
the Company to the Trustee for authentication, together with a written order of
the Company for the authentication and delivery of such Securities, signed by
an Officer, and the Trustee in accordance with such written order shall
authenticate and deliver such Securities.

     In authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to Section 7.01) shall be
fully protected in relying upon, an Opinion of Counsel stating that the form
and terms thereof have been established in conformity with the provisions of
this Indenture.

     The Trustee shall not be required to authenticate such Securities if the
issue of such Securities pursuant to this Indenture will affect the Trustee’s
own rights, duties or immunities under the Securities and this Indenture or
otherwise in a manner that is not reasonably acceptable to the Trustee.

Section 2.05 Transfer and Exchange.

     (a)  Securities of any series may be exchanged upon presentation thereof at
the office or agency of the Company designated for such purpose in the Borough
of Manhattan, the City and State of New York, for other Securities of such
series of authorized denominations, and for a like aggregate principal amount,
upon payment of a sum sufficient to cover any tax or other governmental charge
in relation thereto, all as provided in this Section. In respect of any
Securities so surrendered for exchange, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in exchange therefor
the Security or Securities of the same series that the Holder making the
exchange shall be entitled to receive, bearing numbers not contemporaneously
outstanding.

     (b)  The Company shall keep, or cause to be kept, at its office or agency
designated for such purpose in the Borough of Manhattan, the City and State of
New York, or such other location designated by the Company, a register or
registers (herein referred to as the

12

 

 “Security Register”) in which, subject to such reasonable regulations as
it may prescribe (including, but not limited to, compliance with the provisions
of the Securities Act and any rules and regulations promulgated thereunder, and
any other applicable securities laws), the Company shall register the
Securities and the transfers of Securities as in this Article provided and
which at all reasonable times shall be open for inspection by the Trustee. The
registrar for the purpose of registering Securities and transfer of Securities
as herein provided shall be appointed as authorized by Board Resolution (the
“Security Registrar”).

     Upon surrender for transfer of any Security at the office or agency of the
Company designated for such purpose, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in the name of the
transferee or transferees a new Security or Securities of the same series as
the Security presented for a like aggregate principal amount.

     All Securities presented or surrendered for exchange or registration of
transfer, as provided in this Section, shall be accompanied (if so required by
the Company or the Security Registrar) by a written instrument or instruments
of transfer, in form satisfactory to the Company or the Security Registrar,
duly executed by the registered holder or by such holder’s duly authorized
attorney in writing.

     (c)  Except as provided pursuant to Section 2.01 pursuant to a Board
Resolution, and set forth in an Officers’ Certificate, or established in one or
more indentures supplemental to this Indenture, no service charge shall be made
for any exchange or registration of transfer of Securities, or issue of new
Securities in case of partial redemption of any series, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, other than exchanges pursuant to Section 2.06,
Section 3.05(b)and Section 9.05 not involving any transfer.

     (d)  The Company shall not be required (i) to issue, exchange or register
the transfer of any Securities during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of
less than all the outstanding Securities of the same series and ending at the
close of business on the day of such mailing, nor (ii) to register the transfer
of or exchange any Securities of any series or portions thereof called for
redemption, other than the unredeemed portion of any such Securities being
redeemed in part. The provisions of this Section 2.05 are, with respect to any
Global Security, subject to Section 2.11 hereof.

Section 2.06 Temporary Securities.

     Pending the preparation of definitive Securities of any series, the
Company may execute, and the Trustee shall authenticate and deliver, temporary
Securities (printed, lithographed or typewritten) of any authorized
denomination. Such temporary Securities shall be substantially in the form of
the definitive Securities in lieu of which they are issued, but with such
omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Company. Every temporary Security
of any series shall be executed by the Company and be authenticated by the
Trustee upon the same conditions and in substantially the same manner, and with
like effect, as the definitive Securities of such series. Without unnecessary
delay the Company will execute and will furnish definitive Securities of such
series and thereupon any or all temporary Securities of such series may be
surrendered in exchange

13

 

 therefor (without charge to the holders), at the office or agency of the
Company designated for the purpose in the Borough of Manhattan, the City and
State of New York, and the Trustee shall authenticate and such office or agency
shall deliver in exchange for such temporary Securities an equal aggregate
principal amount of definitive Securities of such series, unless the Company
advises the Trustee to the effect that definitive Securities need not be
executed and furnished until further notice from the Company. Until so
exchanged, the temporary Securities of such series shall be entitled to the
same benefits under this Indenture as definitive Securities of such series
authenticated and delivered hereunder.

Section 2.07 Mutilated, Destroyed, Lost Or Stolen Securities.

     In case any temporary or definitive Security shall become mutilated or be
destroyed, lost or stolen, the Company (subject to the next succeeding
sentence) shall execute, and upon the Company’s request the Trustee (subject as
aforesaid) shall authenticate and deliver, a new Security of the same series,
bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Security, or in lieu of and in substitution for
the Security so destroyed, lost or stolen. In every case the applicant for a
substituted Security shall furnish to the Company and the Trustee such security
or indemnity as may be required by them to save each of them harmless, and, in
every case of destruction, loss or theft, the applicant shall also furnish to
the Company and the Trustee evidence to their satisfaction of the destruction,
loss or theft of the applicant’s Security and of the ownership thereof. The
Trustee may authenticate any such substituted Security and deliver the same
upon the written request or authorization of any officer of the Company. Upon
the issuance of any substituted Security, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith.

     In case any Security that has matured or is about to mature shall become
mutilated or be destroyed, lost or stolen, the Company may, instead of issuing
a substitute Security, pay or authorize the payment of the same (without
surrender thereof except in the case of a mutilated Security) if the applicant
for such payment shall furnish to the Company and the Trustee such security or
indemnity as they may require to save them harmless, and, in case of
destruction, loss or theft, evidence to the satisfaction of the Company and the
Trustee of the destruction, loss or theft of such Security and of the ownership
thereof.

     Every replacement Security issued pursuant to the provisions of this
Section shall constitute an additional contractual obligation of the Company
whether or not the mutilated, destroyed, lost or stolen Security shall be found
at any time, or be enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities of the same series duly issued hereunder. All Securities shall be
held and owned upon the express condition that the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities, and shall preclude (to the extent lawful) any and
all other rights or remedies, notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

14

 

Section 2.08 Cancellation.

     All Securities surrendered for the purpose of payment, redemption,
exchange or registration of transfer shall, if surrendered to the Company or
any paying agent, be delivered to the Trustee for cancellation, or, if
surrendered to the Trustee, shall be cancelled by it, and no Securities shall
be issued in lieu thereof except as expressly required or permitted by any of
the provisions of this Indenture. On request of the Company at the time of
such surrender, the Trustee shall deliver to the Company canceled Securities
held by the Trustee. In the absence of such request the Trustee may dispose of
canceled Securities in accordance with its standard procedures and deliver a
certificate of disposition to the Company. If the Company shall otherwise
acquire any of the Securities, however, such acquisition shall not operate as a
redemption or satisfaction of the Indebtedness represented by such Securities
unless and until the same are delivered to the Trustee for cancellation.

Section 2.09 Benefits Of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall
give or be construed to give to any Person, other than the parties hereto and
the holders of the Securities any legal or equitable right, remedy or claim
under or in respect of this Indenture, or under any covenant, condition or
provision herein contained; all such covenants, conditions and provisions being
for the sole benefit of the parties hereto and of the holders of the
Securities.

Section 2.10 Authenticating Agent.

     So long as any of the Securities of any series remain outstanding there
may be an Authenticating Agent for any or all such series of Securities which
the Trustee shall have the right to appoint. Said Authenticating Agent shall
be authorized to act on behalf of the Trustee to authenticate Securities of
such series issued upon exchange, transfer or partial redemption thereof, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. An Authenticating Agent has the same rights as an Agent to
deal with Holders or an Affiliate of the Company. All references in this
Indenture to the authentication of Securities by the Trustee shall be deemed to
include authentication by an Authenticating Agent for such series. Each
Authenticating Agent shall be acceptable to the Company and shall be a
corporation that has a combined capital and surplus, as most recently reported
or determined by it, sufficient under the laws of any jurisdiction under which
it is organized or in which it is doing business to conduct a trust business,
and that is otherwise authorized under such laws to conduct such business and
is subject to supervision or examination by federal or state authorities. If
at any time any Authenticating Agent shall cease to be eligible in accordance
with these provisions, it shall resign immediately.

     Any Authenticating Agent may at any time resign by giving written notice
of resignation to the Trustee and to the Company. The Trustee may at any time
(and upon request by the Company shall) terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or
cessation of eligibility of any Authenticating Agent, the Trustee may appoint
an eligible successor Authenticating Agent acceptable to the Company. Any
successor Authenticating

15

 

 Agent, upon acceptance of its appointment hereunder, shall become vested
with all the rights, powers and duties of its predecessor hereunder as if
originally named as an Authenticating Agent pursuant hereto.

Section 2.11 Global Securities.

     (a)  If the Company shall establish pursuant to Section 2.01 that the
Securities of a particular series are to be issued as a Global Security, then
the Company shall execute and the Trustee shall, in accordance with Section
2.04, authenticate and deliver, a Global Security that (i) shall represent, and
shall be denominated in an amount equal to the aggregate principal amount of,
all of the outstanding Securities of such series, (ii) shall be registered in
the name of the Depositary or its nominee, (iii) shall be delivered by the
Trustee to the Depositary or pursuant to the Depositary’s instruction and (iv)
shall bear a legend substantially to the following effect: “Except as otherwise
provided in Section 2.11 of the Indenture, this Security may be transferred, in
whole but not in part, only to another nominee of the Depositary or to a
successor Depositary or to a nominee of such successor Depositary.”

     (b)  Notwithstanding the provisions of Section 2.05, the Global Security of
a series may be transferred, in whole but not in part and in the manner
provided in Section 2.05, only to another nominee of the Depositary for such
series, or to a successor Depositary for such series selected or approved by
the Company or to a nominee of such successor Depositary.

     (c)  If at any time the Depositary for a series of the Securities notifies
the Company that it is unwilling or unable to continue as Depositary for such
series or if at any time the Depositary for such series shall no longer be
registered or in good standing under the Exchange Act, or other applicable
statute or regulation, and a successor Depositary for such series is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such condition, as the case may be, or if an Event of
Default has occurred and is continuing and the Company has received a request
from the Depositary, this Section shall no longer be applicable to the
Securities of such series and the Company will execute, and subject to Section
2.04, the Trustee will authenticate and deliver the Securities of such series
in definitive registered form without coupons, in authorized denominations, and
in an aggregate principal amount equal to the principal amount of the Global
Security of such series in exchange for such Global Security. In addition, the
Company may at any time determine that the Securities of any series shall no
longer be represented by a Global Security and that the provisions of this
Section shall no longer apply to the Securities of such series. In such event
the Company will execute and, subject to Section 2.04, the Trustee, upon
receipt of an Officers’ Certificate evidencing such determination by the
Company, will authenticate and deliver the Securities of such series in
definitive registered form without coupons, in authorized denominations, and in
an aggregate principal amount equal to the principal amount of the Global
Security of such series in exchange for such Global Security. Upon the
exchange of the Global Security for such Securities in definitive registered
form without coupons, in authorized denominations, the Global Security shall be
canceled by the Trustee. Such Securities in definitive registered form issued
in exchange for the Global Security pursuant to this Section shall be
registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants
or otherwise, shall instruct the Trustee. The Trustee shall deliver such

16

 

 Securities to the Depositary for delivery to the Persons in whose names
such Securities are so registered.

ARTICLE THREE

REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

Section 3.01 Redemption.

     The Company may redeem the Securities of any series issued hereunder on
and after the dates and in accordance with the terms established for such
series pursuant to Section 2.01 hereof.

Section 3.02 Notice Of Redemption.

     (a)  In case the Company shall desire to exercise such right to redeem all
or, as the case may be, a portion of the Securities of any series in accordance
with any right the Company reserved for itself to do so pursuant to Section
2.01 hereof, the Company shall, or shall cause the Trustee to, give notice of
such redemption to holders of the Securities of such series to be redeemed by
mailing, first class postage prepaid, a notice of such redemption not less than
30 days and not more than 60 days before the date fixed for redemption of that
series to such holders at their last addresses as they shall appear upon the
Security Register, unless a shorter period is specified in the Securities to be
redeemed. Any notice that is mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the registered
holder receives the notice. In any case, failure duly to give such notice to
the holder of any Security of any series designated for redemption in whole or
in part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Securities of such series or any
other series. In the case of any redemption of Securities prior to the
expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, the Company shall furnish the
Trustee with an Officers’ Certificate evidencing compliance with any such
restriction.

     (b)  Each such notice of redemption shall specify the date fixed for
redemption and the redemption price at which Securities of that series are to
be redeemed, and shall state that payment of the redemption price of such
Securities to be redeemed will be made at the office or agency of the Company
in the Borough of Manhattan, the City and State of New York, upon presentation
and surrender of such Securities, that interest accrued to the date fixed for
redemption will be paid as specified in said notice, that from and after said
date interest will cease to accrue and that the redemption is for a sinking
fund, if such is the case. If less than all the Securities of a series are to
be redeemed, the notice to the holders of Securities of that series to be
redeemed in part shall specify the particular Securities to be so redeemed.

     (c)  In case any Security is to be redeemed in part only, the notice that
relates to such Security shall state the portion of the principal amount
thereof to be redeemed, and shall state that on and after the redemption date,
upon surrender of such Security, a new Security or Securities of such series in
principal amount equal to the unredeemed portion thereof will be issued.

17

 

Section 3.03 Selection of Securities to be Redeemed.

     (a)  If less than all the Securities of a series are to be redeemed, the
Company shall give the Trustee at least 45 days’ notice in advance of the date
fixed for redemption as to the aggregate principal amount of Securities of the
series to be redeemed, and thereupon the Trustee shall select, by lot or in
such other manner as it shall deem appropriate and fair in its discretion and
that may provide for the selection of a portion or portions (equal to one
thousand U.S. dollars ($1,000) or any integral multiple thereof) of the
principal amount of such Securities of a denomination larger than $1,000, the
Securities to be redeemed and shall thereafter promptly notify the Company in
writing of the numbers of the Securities to be redeemed, in whole or in part.

     (b)  The Company may, if and whenever it shall so elect, by delivery of
instructions signed on its behalf by an Officer listed in clause (i) of the
definition thereof, instruct the Trustee or any paying agent to call all or any
part of the Securities of a particular series for redemption and to give notice
of redemption in the manner set forth in this Section, such notice to be in the
name of the Company or its own name as the Trustee or such paying agent may
deem advisable. In any case in which notice of redemption is to be given by
the Trustee or any such paying agent, the Company shall deliver or cause to be
delivered to, or permit to remain with, the Trustee or such paying agent, as
the case may be, such Security Register, transfer books or other records, or
suitable copies or extracts therefrom, sufficient to enable the Trustee or such
paying agent to give any notice by mail that may be required under the
provisions of this Section.

Section 3.04 Effect of Notice of Redemption.

     Once notice of redemption is mailed in accordance with Section 3.02
hereof, Securities of any series called for redemption become irrevocably due
and payable on the redemption date at the redemption price.

Section 3.05 Payment Upon Redemption.

     (a)  If the giving of notice of redemption shall have been completed as
above provided, the Securities or portions of Securities of the series to be
redeemed specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption and interest on such
Securities or portions of Securities shall cease to accrue on and after the
date fixed for redemption, unless the Company shall default in the payment of
such redemption price and accrued interest with respect to any such Security or
portion thereof. On presentation and surrender of such Securities on or after
the date fixed for redemption at the place of payment specified in the notice,
said Securities shall be paid and redeemed at the applicable redemption price
for such series, together with interest accrued thereon to the date fixed for
redemption (but if the date fixed for redemption is an interest payment date,
the interest installment payable on such date shall be payable to the
registered holder at the close of business on the applicable record date
pursuant to Section 2.03).

     (b)  Upon presentation of any Security of such series that is to be
redeemed in part only, the Company shall execute and the Trustee shall
authenticate and the office or agency

18

 

 where the Security is presented shall deliver to the holder thereof, at
the expense of the Company, a new Security of the same series of authorized
denominations in principal amount equal to the unredeemed portion of the
Security so presented.

Section 3.06 Sinking Fund.

     The provisions of Sections 3.06, 3.07 and 3.08 shall be applicable to any
sinking fund for the retirement of Securities of a series, except as otherwise
specified as contemplated by Section 2.01 for Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms
of Securities of any series is herein referred to as a “mandatory sinking fund
payment,” and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an “optional sinking
fund payment.” If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 3.07. Each sinking fund payment shall be applied to the redemption
of Securities of any series as provided for by the terms of Securities of such
series.

Section 3.07 Satisfaction Of Sinking Fund Payments With Securities.

     The Company (i) may deliver outstanding Securities of a series and (ii)
may apply as a credit Securities of a series that have been redeemed either at
the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the
terms of such Securities, in each case in satisfaction of all or any part of
any sinking fund payment with respect to the Securities of such series required
to be made pursuant to the terms of such Securities as provided for by the
terms of such series, provided that such Securities have not been previously so
credited. Such Securities shall be received and credited for such purpose by
the Trustee at the redemption price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund
payment shall be reduced accordingly.

Section 3.08 Redemption Of Securities For Sinking Fund.

     Not less than 45 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers’
Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of the series, the portion thereof, if any,
that is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 3.07 and the basis for such credit and will, together with
such Officers’ Certificate, deliver to the Trustee any Securities to be so
delivered. Not less than 30 days before each such sinking fund payment date
the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 3.03 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 3.02. Such notice having been duly given,
the redemption of such Securities shall be made upon the terms and in the
manner stated in Section 3.05.

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ARTICLE FOUR

COVENANTS

Section 4.01 Payment Of Principal, Premium And Interest.

     The Company will duly and punctually pay or cause to be paid the principal
of (and premium, if any) and interest on the Securities of that series at the
time and place and in the manner provided herein and established with respect
to such Securities.

Section 4.02 Maintenance of Office or Agency.

     So long as any series of the Securities remain outstanding, the Company
agrees to maintain an office or agency in the Borough of Manhattan, the City
and State of New York, with respect to each such series and at such other
location or locations as may be designated as provided in this Section, where
(i) Securities of that series may be presented for payment, (ii) Securities of
that series may be presented as herein above authorized for registration of
transfer and exchange, and (iii) notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be given or
served, such designation to continue with respect to such office or agency
until the Company shall, by written notice signed by any officer authorized to
sign an Officers’ Certificate and delivered to the Trustee, designate some
other office or agency for such purposes or any of them. If at any time the
Company shall fail to maintain any such required office or agency or shall fail
to furnish the Trustee with the address thereof, such presentations, notices
and demands may be made or served at the Corporate Trust Operations Office of
the Trustee, and the Company hereby appoints the Trustee as its agent to
receive all such presentations, notices and demands. The Company initially
appoints the Corporate Trust Operations Office of the Trustee located in the
Borough of Manhattan, the City of New York as its paying agent with respect to
the Securities.

Section 4.03 Paying Agents.

     (a)  If the Company shall appoint one or more paying agents for all or any
series of the Securities, other than the Trustee, the Company will cause each
such paying agent to execute and deliver to the Trustee an instrument in which
such agent shall agree with the Trustee, subject to the provisions of this
Section:

		
	 	     (i) that it will hold all sums held by it as such agent for the
payment of the principal of (and premium, if any) or interest on the
Securities of that series (whether such sums have been paid to it by the
Company or by any other obligor of such Securities) in trust for the
benefit of the Persons entitled thereto;

		
	 	     (ii) that it will give the Trustee notice of any failure by the
Company (or by any other obligor of such Securities) to make any payment
of the principal of (and premium, if any) or interest on the Securities
of that series when the same shall be due and payable;

		
	 	     (iii) that it will, at any time during the continuance of any
failure referred to in the preceding paragraph (a)(2) above, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such paying agent; and

20

 

		
	 	     (iv) that it will perform all other duties of paying agent as set
forth in this Indenture.

     (b)  If the Company shall act as its own paying agent with respect to any
series of the Securities, it will on or before each due date of the principal
of (and premium, if any) or interest on Securities of that series, set aside,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay such principal (and premium, if any) or interest so
becoming due on Securities of that series until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and will promptly notify
the Trustee of such action, or any failure (by it or any other obligor on such
Securities) to take such action. Whenever the Company shall have one or more
paying agents for any series of Securities, it will, prior to each due date of
the principal of (and premium, if any) or interest on any Securities of that
series, deposit with the paying agent a sum sufficient to pay the principal
(and premium, if any) or interest so becoming due, such sum to be held in trust
for the benefit of the Persons entitled to such principal, premium or interest,
and (unless such paying agent is the Trustee) the Company will promptly notify
the Trustee of this action or failure so to act.

     (c)  Notwithstanding anything in this Section to the contrary, (i) the
agreement to hold sums in trust as provided in this Section is subject to the
provisions of Section 8.06 and Section 10.03, and (ii) the Company may at any
time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or direct any paying agent to pay, to
the Trustee all sums held in trust by the Company or such paying agent, such
sums to be held by the Trustee upon the same terms and conditions as those upon
which such sums were held by the Company or such paying agent; and, upon such
payment by the Company or any paying agent to the Trustee, the Company or such
paying agent shall be released from all further liability with respect to such
money.

Section 4.04 Holder Lists.

     The Company will furnish or cause to be furnished to the Trustee (a) on
each regular record date (as defined in Section 2.03) a list, in such form as
the Trustee may reasonably require, of the names and addresses of the holders
of each series of Securities as of such regular record date, provided that the
Company shall not be obligated to furnish or cause to furnish such list at any
time that the list shall not differ in any respect from the most recent list
furnished to the Trustee by the Company and (b) at such other times as the
Trustee may request in writing within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished; provided, however, that,
in either case, no such list need be furnished for any series for which the
Trustee shall be the Security Registrar and the Company shall otherwise comply
with TIA § 312(a).

Section 4.05 Compliance Certificates.

     The Company or any Guarantors shall deliver to the Trustee, within 120
days after the end of each fiscal year during which any Securities of any
series were outstanding, an Officers’ Certificate stating whether or not the
signers know of any Default or Event of Default that occurred during such
fiscal year. Such certificate shall contain a certification from the principal
executive officer, principal financial officer or principal accounting officer
of the Company that

21

 

 a review has been conducted of the activities of the Company and the
Company’s performance under this Indenture and that the Company has complied
with all conditions and covenants under this Indenture. For purposes of this
Section, such compliance shall be determined without regard to any period of
grace or requirement of notice provided under this Indenture. If any of the
officers of the Company signing such certificate has knowledge of such a
Default or Event of Default, the certificate shall describe any such Default or
Event of Default and its status.

Section 4.06 Reports By The Company.

     The Company covenants and agrees to provide to the Trustee, after the
Company is required to file the same with the SEC, copies of the annual reports
and of the information, documents and other reports (or copies of such portions
of any of the foregoing as the SEC may from time to time by rules and
regulations prescribe) that the Company may be required to file with the SEC
pursuant to Section 13 or Section 15(d) of the Exchange Act.

ARTICLE FIVE

SUCCESSOR ENTITY

Section 5.01 Company May Consolidate, Etc.

     Except as established in one or more indentures supplemental to this
Indenture, nothing contained in this Indenture shall prevent any consolidation
or merger of the Company with or into any other Person (whether or not
affiliated with the Company) or successive consolidations or mergers in which
the Company or its successor or successors shall be a party or parties, or
shall prevent any sale, conveyance, transfer or other disposition of the
property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not
affiliated with the Company or its successor or successors) authorized to
acquire and operate the same; provided, however, the Company hereby covenants
and agrees that, upon any such consolidation or merger (in each case, if the
Company is not the survivor of such transaction), sale, conveyance, transfer or
other disposition, the due and punctual payment of the principal of (premium,
if any) and interest on all of the Securities of all series in accordance with
the terms of each series, according to their tenor, and the due and punctual
performance and observance of all the covenants and conditions of this
Indenture with respect to each series or established with respect to such
series pursuant to Section 2.01 to be kept or performed by the Company shall be
expressly assumed, by supplemental indenture (which shall conform to the
provisions of the TIA, as then in effect) reasonably satisfactory in form to
the Trustee executed and delivered to the Trustee by the entity formed by such
consolidation, or into which the Company shall have been merged, or by the
entity which shall have acquired such property.

Section 5.02 Successor Entity Substituted.

     (a)  In case of any such consolidation, merger, sale, conveyance, transfer
or other disposition and upon the assumption by the successor entity by
supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the obligations set forth under Section 5.01 on all
of the Securities of all series outstanding, such successor entity shall
succeed to and be substituted for the Company with the same effect as if it had
been

22

 

 named as the Company herein, and thereupon the predecessor corporation
shall be relieved of all obligations and covenants under this Indenture and the
Securities.

     (b)  In case of any such consolidation, merger, sale, conveyance, transfer
or other disposition, such changes in phraseology and form (but not in
substance) may be made in the Securities thereafter to be issued as may be
appropriate.

     (c)  Nothing contained in this Article shall require any action by the
Company in the case of a consolidation or merger of any Person into the Company
where the Company is the survivor of such transaction, or the acquisition by
the Company, by purchase or otherwise, of all or any part of the property of
any other Person (whether or not affiliated with the Company).

Section 5.03 Evidence of Consolidation, Etc to Trustee.

     The Trustee, subject to the provisions of Section 7.01, may receive an
Officers’ Certificate or an Opinion of Counsel as conclusive evidence that any
such consolidation, merger, sale, conveyance, transfer or other disposition,
and any such assumption, comply with the provisions of this Article.

ARTICLE SIX

DEFAULTS AND REMEDIES

Section 6.01 Events of Default.

     (a)  Each of the following is an “Event of Default”:

		
	 	     (i) the Company defaults in the payment of any installment of
interest upon any of the Securities of that series, as and when the same
shall become due and payable, and such default continues for a period of
90 days; provided, however, that a valid extension of an interest payment
period by the Company in accordance with the terms of any indenture
supplemental hereto shall not constitute a default in the payment of
interest for this purpose;

		
	 	     (ii) the Company defaults in the payment of the principal of (or
premium, if any, on) any of the Securities of that series as and when the
same shall become due and payable whether at maturity, upon redemption,
by declaration or otherwise, or in any payment required by any sinking or
analogous fund established with respect to that series; provided,
however, that a valid extension of the maturity of such Securities in
accordance with the terms of any indenture supplemental hereto shall not
constitute a default in the payment of principal or premium, if any;

		
	 	     (iii) the Company fails to observe or perform any other of its
covenants or agreements with respect to that series contained in this
Indenture or otherwise established with respect to that series of
Securities pursuant to Section 2.01 hereof (other than a covenant or
agreement that has been expressly included in this Indenture solely for
the benefit of one or more series of Securities other than such series)
for a period of 90 days after the date on which written notice of such
failure, requiring the same to be remedied and stating that such notice
is a “Notice of Default” hereunder, shall have been given to

23

 

		
	 	the Company by the Trustee, by registered or certified mail, or to
the Company and the Trustee by the holders of at least 25% in principal
amount of the Securities of that series at the time outstanding;

		
	 	     (iv) the Company pursuant to or within the meaning of any Bankruptcy
Law (i) commences a voluntary case, (ii) consents to the entry of an
order for relief against it in an involuntary case, (iii) consents to the
appointment of a custodian of it or for all or substantially all of its
property or (iv) makes a general assignment for the benefit of its
creditors; or

		
	 	     (v) a court of competent jurisdiction enters an order under any
Bankruptcy Law that (i) is for relief against the Company in an
involuntary case, (ii) appoints a custodian of the Company for all or
substantially all of its property or (iii) orders the liquidation of the
Company, and the order or decree remains unstayed and in effect for 90
days.

Section 6.02 Acceleration.

     (a)  In the case of an Event of Default (other than an Event of Default
specified in Section 6.01(a)(iv) or Section 6.01(a)(v) above), unless the
principal of all the Securities of that series shall have already become due
and payable, either the Trustee or the Holders of not less than a majority in
aggregate principal amount of the Securities of that series then outstanding
hereunder, by notice in writing to the Company (and to the Trustee if given by
such Holders), may declare the principal of (and premium, if any, on) and
accrued and unpaid interest on all the Securities of that series to be due and
payable immediately, and upon any such declaration the same shall become and
shall be immediately due and payable. If an Event of Default specified in
Section 6.01(a)(iv) or Section 6.01(a)(v) above occurs, the principal of and
accrued and unpaid interest on all the Securities of that series shall
automatically be immediately due and payable without any declaration or other
act on the part of the Trustee or the holders of the Securities.

     (b)  At any time after the principal of (and premium, if any, on) and
accrued and unpaid interest on the Securities of that series shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
holders of a majority in aggregate principal amount of the Securities of that
series then outstanding hereunder, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if any and
all Events of Default under the Indenture with respect to such series shall
have been remedied or waived as provided in Section 6.05. No such rescission
and annulment shall extend to or shall affect any subsequent default or impair
any right consequent thereon.

     (c)  In case the Trustee shall have proceeded to enforce any right with
respect to Securities of that series under this Indenture and such proceedings
shall have been discontinued or abandoned because of such rescission or
annulment or for any other reason or shall have been determined adversely to
the Trustee, then and in every such case, subject to any determination in such
proceedings, the Company and the Trustee shall be restored respectively to

24

 

 their former positions and rights hereunder, and all rights, remedies and
powers of the Company and the Trustee shall continue as though no such
proceedings had been taken.

Section 6.03 Collection of Indebtedness and Suits For Enforcement by Trustee.

     (a)  The Company covenants that (i) in case it shall default in the payment
of any installment of interest on any of the Securities of a series, and such
default shall have continued for a period of 30 days, or (ii) in case it shall
default in the payment of the principal of (or premium, if any, on) any of the
Securities of a series when the same shall have become due and payable, whether
upon maturity of the Securities of a series or upon redemption or upon
declaration or otherwise, or in any payment required by any sinking or
analogous fund established with respect to that series as and when the same
shall have become due and payable, then, upon demand of the Trustee, the
Company will pay to the Trustee, for the benefit of the holders of the
Securities of that series, the whole amount that then shall have been become
due and payable on all such Securities for principal (and premium, if any) or
interest, or both, as the case may be, with interest upon the overdue principal
(and premium, if any) and (to the extent that payment of such interest is
enforceable under applicable law) upon overdue installments of interest at the
rate per annum expressed in the Securities of that series; and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, and the amount payable to the Trustee under Section
7.13.

     (b)  If the Company shall fail to pay such amounts forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any action or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or other obligor upon the
Securities of that series and collect the moneys adjudged or decreed to be
payable in the manner provided by law or equity out of the property of the
Company or other obligor upon the Securities of that series, wherever situated.

     (c)  The Trustee is authorized and entitled to intervene and file in any
judicial proceedings to file such proofs of claim and other papers and
documents as may be necessary or advisable in order to have the claims of the
Trustee and of the Holders of Securities of such series allowed for the entire
amount due and payable by the Company under the Indenture at the date of
institution of such proceedings and for any additional amount that may become
due and payable by the Company after such date, and to collect and receive any
moneys or other property payable or deliverable on any such claim, and to
distribute the same after the deduction of the amount payable to the Trustee
under Section 7.13; and any receiver, assignee or trustee in bankruptcy or
reorganization of the Company in any such proceedings is hereby authorized by
each of the Holders of Securities of such series to make such payments to the
Trustee, and, in the event that the Trustee shall consent to the making of such
payments directly to such Holders, to pay to the Trustee any amount due it
under Section 7.13.

     (d)  All rights of action and of asserting claims under this Indenture, or
under any of the terms established with respect to Securities of that series,
may be enforced by the Trustee without the possession of any of such
Securities, or the production thereof at any trial or other proceeding relative
thereto, and any such suit or proceeding instituted by the Trustee shall

25

 

 be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for payment to the Trustee of any
amounts due under Section 7.13, be for the ratable benefit of the Holders of
the Securities of such series.

     (e)  In case of an Event of Default hereunder, the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in the Indenture or in aid of the exercise
of any power granted in this Indenture, or to enforce any other legal or
equitable right vested in the Trustee by this Indenture or by law.

     (f)  Nothing contained herein shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
of that series or the rights of any holder thereof or to authorize the Trustee
to vote in respect of the claim of any Holder in any such proceeding.

Section 6.04 Application Of Moneys Collected.

     (a)  Any moneys collected by the Trustee pursuant to this Article with
respect to a particular series of Securities shall be applied in the following
order and, in case of the distribution of such moneys on account of principal
(or premium, if any) or interest, upon presentation of the Securities of that
series, and notation thereon of the payment, if only partially paid, and upon
surrender thereof if fully paid:

		
	 	     First: To the payment of reasonable costs and expenses of collection and
of all amounts payable to the Trustee under Section 7.13;

		
	 	     Second: To the payment of the amounts then due and unpaid upon Securities
of such series for principal (and premium, if any) and interest, in respect of
which or for the benefit of which such money has been collected, ratably,
without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal (and premium, if any) and interest,
respectively; and

		
	 	     Third: To the payment of the remainder, if any, to the Company or any
other Person lawfully entitled thereto.

     (b)  The Trustee may fix a record date and payment date for any payment to
Holders of Securities pursuant to this Section.

Section 6.05 Waiver of Past Defaults.

     The Holders of a majority in aggregate principal amount of any series of
Securities then outstanding by notice to the Trustee, may on behalf of the
Holders of all of the Securities of that series, waive any existing Default or
Event of Default and its consequences hereunder, except a continuing Default or
Event of Default in the payment of interest on, or the principal of, the
Securities of that series (unless such Default or Event of Default has been
cured and a sum

26

 

 sufficient to pay all matured installments of interest and principal and
any premium has been deposited with the Trustee (in accordance with Section
6.02(b)) or a Default in respect of a covenant or provision which cannot be
modified or amended without the consent of each Holder of a Security of that
series; provided, however, that the Holders of a majority in aggregate
principal amount of the then outstanding Securities of that series may rescind
an acceleration and its consequences, including any related payment default
that resulted from such acceleration. The Company shall deliver to the Trustee
an Officers’ Certificate stating that the requisite percentage of Holders have
consented to such waiver and attaching copies of such consents. In case of any
such waiver, the Company, the Trustee and the Holders shall be restored to
their former positions and rights hereunder and under the Securities,
respectively. This Section shall be in lieu of Section 316(a)(1)(B) of the TIA
and such Section 316(a)(1)(B) of the TIA is hereby expressly excluded from this
Indenture, as permitted by the TIA. Upon any such waiver, such Default or
Event of Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon.

Section 6.06 Control by Majority.

     The holders of a majority in aggregate principal amount of the Securities
of any series at the time outstanding shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee with respect
to such series; provided, however, that such direction shall not be in conflict
with any rule of law or with this Indenture. Subject to the provisions of
Section 7.01, the Trustee shall have the right to decline to follow any such
direction if the Trustee in good faith shall, by a Responsible Officer or
officers of the Trustee, determine that the proceeding so directed, subject to
the Trustee’s duties under the TIA, would involve the Trustee in personal
liability or might be unduly prejudicial to the Holders not involved in the
proceeding.

Section 6.07 Limitation On Suits.

     (a)  No Holder of any Security of any series shall have any right by virtue
or by availing of any provision of this Indenture to institute any suit, action
or proceeding in equity or at law upon or under or with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

		
	 	     (i) such Holder previously shall have given to the Trustee written
notice of an Event of Default and of the continuance thereof with respect
to the Securities of such series specifying such Event of Default, as
hereinbefore provided;

		
	 	     (ii) the Holders of not less than a majority in aggregate principal
amount of the Securities of such series then outstanding shall have made
written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder;

		
	 	     (iii) such Holder shall have offered to the Trustee such reasonable
indemnity as it may require against the costs, expenses and liabilities
to be incurred therein or thereby;

27

 

		
	 	     (iv) the Trustee for 60 days after its receipt of such notice,
request and offer of indemnity, shall have failed to institute any such
action, suit or proceeding; and

		
	 	     (v) during such 60 day period, the Holders of a majority in
aggregate principal amount of the Securities of that series do not give
the Trustee a direction inconsistent with the request.

     (b)  A Holder of a Security may not use this Indenture to prejudice the
rights of another Holder of a Security or to obtain a preference over another
Holder of a Security.

Section 6.08 Rights of Holders of Securities to Receive Payment.

     Notwithstanding anything contained herein to the contrary or any other
provisions of this Indenture, the right of any Holder of any Security to
receive payment of the principal of (and premium, if any) and interest on such
Security, as therein provided, on or after the respective due dates expressed
in such Security (or in the case of redemption, on the redemption date), or to
institute suit for the enforcement of any such payment on or after such
respective dates or redemption date, shall not be impaired or affected without
the consent of such Holder and by accepting a Security hereunder it is
expressly understood, intended and covenanted by the taker and Holder of every
Security of such series with every other such taker and Holder and the Trustee,
that no one or more Holders of Securities of such series shall have any right
in any manner whatsoever by virtue or by availing of any provision of this
Indenture to affect, disturb or prejudice the rights of the Holders of any
other of such Securities, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all Holders of Securities of such series. For the protection
and enforcement of the provisions of this Section, each and every Holder and
the Trustee shall be entitled to such relief as can be given either at law or
in equity.

Section 6.09 Undertaking for Costs.

     All parties to this Indenture agree, and each Holder of any Securities by
such Holder’s acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding
more than 10% in aggregate principal amount of the outstanding Securities of
any series, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of (or premium, if any) or interest on any Security of
such series, on or after the respective due dates expressed in such Security or
established pursuant to this Indenture.

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ARTICLE SEVEN

TRUSTEE

Section 7.01 Certain Duties And Responsibilities Of Trustee.

     (a)  The Trustee, prior to the occurrence of an Event of Default with
respect to the Securities of a series and after the curing of all Events of
Default with respect to the Securities of that series that may have occurred,
shall undertake to perform with respect to the Securities of such series such
duties and only such duties as are specifically set forth in this Indenture,
and no implied covenants shall be read into this Indenture against the Trustee.
In case an Event of Default with respect to the Securities of a series has
occurred (that has not been cured or waived), the Trustee shall exercise with
respect to Securities of that series such of the rights and powers vested in it
by this Indenture, and use the same degree of care and skill in their exercise,
as a prudent man would exercise or use under the circumstances in the conduct
of his own affairs.

     (b)  No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that:

		
	 	     (i) prior to the occurrence of an Event of Default with respect to
the Securities of a series and after the curing or waiving of all such
Events of Default with respect to that series that may have occurred:

		
	 	     (A) the duties and obligations of the Trustee shall with respect to
the Securities of such series be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable with
respect to the Securities of such series except for the performance of
such duties and obligations as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into
this Indenture against the Trustee; and

		
	 	     (B) in the absence of bad faith on the part of the Trustee, the
Trustee may with respect to the Securities of such series conclusively
rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished
to the Trustee and conforming to the requirements of this Indenture; but
in the case of any such certificates or opinions that by any provision
hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or
not they conform to the requirement of this Indenture;

		
	 	     (ii) the Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer or Responsible Officers of the
Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

		
	 	     (iii) the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the holders of not less than a majority in aggregate
principal amount of the Securities of any series at the time outstanding
relating to the time, method and place of conducting any proceeding for
any

29

 

		
	 	remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee under this Indenture with respect to the
Securities of that series; and

		
	 	     (iv) None of the provisions contained in this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur
personal financial liability in the performance of any of its duties or
in the exercise of any of its rights or powers if there is reasonable
ground for believing that the repayment of such funds or liability is not
reasonably assured to it under the terms of this Indenture or adequate
indemnity against such risk is not reasonably assured to it.

Section 7.02 Certain Rights of Trustee.

     Except as otherwise provided in Section 7.01:

     (a)  The Trustee may rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond, security or other
paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;

     (b)  Any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by a Board Resolution or an instrument
signed in the name of the Company by any authorized officer of the Company
(unless other evidence in respect thereof is specifically prescribed herein);

     (c)  The Trustee may consult with counsel and the written advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or suffered or omitted hereunder in
good faith and in reliance thereon;

     (d)  The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of
any of the Holders pursuant to the provisions of this Indenture, unless such
Holders shall have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities that may be incurred therein or
thereby; nothing contained herein shall, however, relieve the Trustee of the
obligation, upon the occurrence of an Event of Default with respect to a series
of the Securities (that has not been cured or waived), to exercise with respect
to Securities of that series such of the rights and powers vested in it by this
Indenture, and to use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs;

     (e)  The Trustee shall not be liable for any action taken or omitted to be
taken by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture;

     (f)  The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, security, or
other papers or documents, unless requested in writing so to do by the Holders
of not less than a majority in aggregate principal amount of the outstanding
Securities of the particular series affected thereby; provided, however, that
if the

30

 

 payment within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Trustee, not reasonably assured to the Trustee by the
security afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such costs, expenses or liabilities as a condition
to so proceeding. The reasonable expense of every such examination shall be
paid by the Company or, if paid by the Trustee, shall be repaid by the Company
upon demand; and

     (g)  The Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder.

     In addition, the Trustee shall not be deemed to have knowledge of any
Default or Event of Default except (1) any Event of Default occurring pursuant
to Sections 6.01(a)(i), 6.01(a)(ii) and 4.01 hereof or (2) any Default or Event
of Default of which the Trustee shall have received written notification in the
manner set forth in this Indenture or a Responsible Officer of the Trustee
shall have obtained actual knowledge. Delivery of reports to the Trustee as
required pursuant to this Indenture under Section 4.06 is for informational
purposes only and the information and the Trustee’s receipt of the foregoing
shall not constitute constructive notice of any information contained therein,
or determinable from information contained therein including the Company’s
compliance with any of their covenants thereunder (as to which the Trustee is
entitled to rely exclusively on an Officers’ Certificate).

Section 7.03 Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner
or pledgee of Securities and may become a creditor of, or otherwise deal with,
the Company or any of its Affiliates with the same rights it would have if it
were not Trustee. However, in the event that the Trustee acquires any
conflicting interest as described in the TIA, it must eliminate such conflict
within 90 days, apply to the SEC for permission to continue as trustee or
resign. Any Agent may do the same with like rights and duties. The Trustee is
also subject to Sections 7.11 and 7.12 hereof.

Section 7.04 Trustee Not Responsible For Recitals Or Issuance Or Securities.

     (a)  The recitals contained herein and in the Securities shall be taken as
the statements of the Company, and the Trustee assumes no responsibility for
the correctness of the same.

     (b)  The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Securities.

     (c)  The Trustee shall not be accountable for the use or application by the
Company of any of the Securities or of the proceeds of such Securities, or for
the use or application of any moneys paid over by the Trustee in accordance
with any provision of this Indenture or established pursuant to Section 2.01,
or for the use or application of any moneys received by any paying agent other
than the Trustee.

31

 

Section 7.05 May Hold Securities.

     The Trustee or any paying agent or Security Registrar, in its individual
or any other capacity, may become the owner or pledgee of Securities with the
same rights it would have if it were not Trustee, paying agent or Security
Registrar.

Section 7.06 Moneys Held In Trust.

     Subject to the provisions of Section 8.06 and Section 10.03, all moneys
received by the Trustee shall, until used or applied as herein provided, be
held in trust for the purposes for which they were received, but need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any moneys received by it hereunder
except such as it may agree with the Company to pay thereon.

Section 7.07 Notice Of Default.

     If any Default or any Event of Default occurs and is continuing and if
such Default or Event of Default is known to a Responsible Officer of the
Trustee, the Trustee shall mail to each Holder in the manner and to the extent
provided in Section 313(c) of the TIA notice of the Default or Event of Default
within 45 days after it occurs, unless such Default or Event of Default has
been cured; provided, however, that, except in the case of a default in the
payment of the principal of (or premium, if any) or interest on any Security,
the Trustee shall be protected in withholding such notice if and so long as the
board of directors, the executive committee or a trust committee of directors
and/or Responsible Officers of the Trustee in good faith determine that the
withholding of such notice is in the interest of the Holders.

Section 7.08 Reports By The Trustee.

     (a)  On or before July 1 in each year in which any of the Securities are
outstanding, the Trustee shall transmit by mail, first class postage prepaid,
to the Holders, as their names and addresses appear upon the Security Register,
a brief report dated as of the preceding May 1, if and to the extent required
under Section 313(a) of the TIA.

     (b)  The Trustee shall comply with Section 313(b) and 313(c) of the TIA.

     (c)  A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with the Company, with each securities
exchange upon which any Securities are listed (if so listed) and also with the
SEC. The Company agrees to notify the Trustee when any Securities become
listed on any securities exchange.

Section 7.09 Reliance On Officers’ Certificate.

     Except as otherwise provided in Section 7.01, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
reasonably necessary or desirable that a matter be proved or established prior
to taking or suffering or omitting to take any action hereunder, such matter
(unless other evidence in respect thereof be herein specifically prescribed)
may, in the absence of negligence or bad faith on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers’ Certificate
delivered to the Trustee and

32

 

 such certificate, in the absence of negligence or bad faith on the part of
the Trustee, shall be full warrant to the Trustee for any action taken,
suffered or omitted to be taken by it under the provisions of this Indenture
upon the faith thereof.

Section 7.10 Preservation Of Information; Communications With Holders.

     (a)  The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
Securities contained in the most recent list furnished to it as provided in
Section 4.04 and as to the names and addresses of holders of Securities
received by the Trustee in its capacity as Security Registrar (if acting in
such capacity).

     (b)  The Trustee may destroy any list furnished to it as provided in
Section 4.04 upon receipt of a new list so furnished.

Section 7.11 Preferential Collection of Claims Against Company.

     The Trustee is subject to TIA § 311(a), excluding any creditor
relationship listed in TIA § 311(b). A Trustee who has resigned or been
removed shall be subject to TIA § 311(a) to the extent indicated therein. The
Trustee hereby waives any right to set-off any claim that it may have against
the Company in any capacity (other than as Trustee and paying agent) against
any of the assets of the Company held by the Trustee; provided, however, that
if the Trustee is or becomes a lender of any other Indebtedness permitted
hereunder to be pari passu with the Securities of any series, then such waiver
shall not apply to the extent of such Indebtedness.

Section 7.12 Corporate Trustee Required; Eligibility; Disqualification;
Conflicting Interests.

     (a)  There shall at all times be a Trustee with respect to the Securities
issued hereunder which shall at all times be a corporation organized and doing
business under the laws of the United States of America or any state or
territory thereof or of the District of Columbia, or a corporation or other
Person permitted to act as trustee by the SEC, authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at
least fifty million U.S. dollars ($50,000,000), and subject to supervision or
examination by federal, state, territorial, or District of Columbia authority.

     (b)  If the Trustee has or shall acquire any “conflicting interest” within
the meaning of Section 310(b) of the TIA, the Trustee and the Company shall in
all respects comply with the provisions of Section 310(b) of the TIA.

Section 7.13 Compensation And Reimbursement.

     (a)  The Company covenants and agrees to pay to the Trustee, and the
Trustee shall be entitled to, such reasonable compensation (which shall not be
limited by any provision of law in regard to the compensation of a trustee of
an express trust) as the Company and the Trustee may from time to time agree in
writing, for all services rendered by it in the execution of the trusts hereby
created and in the exercise and performance of any of the powers and duties
hereunder of the Trustee, and, except as otherwise expressly provided herein,
the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and

33

 

 advances incurred or made by the Trustee in accordance with any of the
provisions of this Indenture (including the reasonable compensation and the
expenses and disbursements of its counsel and of all Persons not regularly in
its employ), except any such expense, disbursement or advance as may arise from
its negligence or bad faith and except as the Company and Trustee may from time
to time agree in writing. The Company also covenants to indemnify the Trustee
(and its officers, agents, directors and employees) for, and to hold it
harmless against, any loss, liability or expense incurred without negligence or
bad faith on the part of the Trustee and arising out of or in connection with
the acceptance or administration of this trust, including the reasonable costs
and expenses of defending itself against any claim of liability in the
premises.

     (b)  The obligations of the Company under this Section to compensate and
indemnify the Trustee and to pay or reimburse the Trustee for reasonable
expenses, disbursements and advances shall constitute additional Indebtedness
hereunder. Such additional Indebtedness shall be secured by a lien prior to
that of the Securities upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the benefit of the holders of
particular Securities.

Section 7.14 Resignation And Removal; Appointment Of Successor.

     (a)  The Trustee or any successor hereafter appointed may at any time
resign with respect to the Securities of one or more series by giving written
notice thereof to the Company and by transmitting notice of resignation by
mail, first class postage prepaid, to the Holders of such series, as their
names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee
with respect to the Securities of such series by written instrument, in
duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed and
have accepted appointment within 30 days after the mailing of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee with respect to the
Securities of such series, or any Holder of that series who has been a bona
fide holder of a Security or Securities for at least six months may on behalf
of himself and all others similarly situated, petition any such court for the
appointment of a successor trustee. Such court may thereupon after such
notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

     (b)  In case at any time any one of the following shall occur:

		
	 	     (i) the Trustee shall fail to comply with the provisions of Section
7.12 after written request therefor by the Company or by any Holder who
has been a bona fide holder of a Security or Securities for at least six
months; or

		
	 	     (ii) the Trustee shall cease to be eligible in accordance with the
provisions of Section 7.12 and shall fail to resign after written request
therefor by the Company or by any such Holder; or

		
	 	     (iii) the Trustee shall become incapable of acting, or shall be
adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy
proceeding, or a receiver of

34

 

		
	 	the Trustee or of its property shall be appointed or consented to,
or any public officer shall take charge or control of the Trustee or of
its property or affairs for the purpose of rehabilitation, conservation
or liquidation;

     then, in any such case, the Company may remove the Trustee with respect to
all Securities and appoint a successor trustee by written instrument, in
duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or any Holder who has been a bona fide holder of a Security
or Securities for at least six months may, on behalf of that Holder and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee. Such court
may thereupon after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor trustee.

     (c)  The holders of a majority in aggregate principal amount of the
Securities of any series at the time outstanding may at any time remove the
Trustee with respect to such series by so notifying the Trustee and the Company
and may appoint a successor Trustee for such series with the consent of the
Company.

     (d)  Any resignation or removal of the Trustee and appointment of a
successor trustee with respect to the Securities of a series pursuant to any of
the provisions of this Section shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 7.15.

     (e)  Any successor trustee appointed pursuant to this Section may be
appointed with respect to the Securities of one or more series or all of such
series, and at any time there shall be only one Trustee with respect to the
Securities of any particular series.

Section 7.15 Acceptance Of Appointment By Successor.

     (a)  In case of the appointment hereunder of a successor trustee with
respect to all Securities, every such successor trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor trustee all the rights, powers, and trusts of the retiring Trustee
and shall duly assign, transfer and deliver to such successor trustee all
property and money held by such retiring Trustee hereunder.

     (b)  In case of the appointment hereunder of a successor trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor trustee shall accept such appointment and which (i)
shall contain such provisions as shall be necessary or desirable to transfer
and confirm to, and to vest in, each successor trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such

35

 

 successor trustee relates, (ii) shall contain such provisions as shall be
deemed necessary or desirable to confirm that all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Securities of that or
those series as to which the retiring Trustee is not retiring shall continue to
be vested in the retiring Trustee, and (iii) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any
trust or trusts hereunder administered by any other such Trustee and that no
Trustee shall be responsible for any act or failure to act on the part of any
other Trustee hereunder; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Trustee shall
become effective to the extent provided therein, such retiring Trustee shall
with respect to the Securities of that or those series to which the appointment
of such successor trustee relates have no further responsibility for the
exercise of rights and powers or for the performance of the duties and
obligations vested in the Trustee under this Indenture, and each such successor
trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor trustee relates; but, on request of the Company or any successor
trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor trustee, to the extent contemplated by such supplemental indenture,
the property and money held by such retiring Trustee hereunder with respect to
the Securities of that or those series to which the appointment of such
successor trustee relates.

     (c)  Upon request of any such successor trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor trustee all such rights, powers and trusts referred to in
paragraph (a) or (b) of this Section, as the case may be.

     (d)  No successor trustee shall accept its appointment unless at the time
of such acceptance such successor trustee shall be qualified and eligible under
this Article.

     (e)  Upon acceptance of appointment by a successor trustee as provided in
this Section, the Company shall transmit notice of the succession of such
trustee hereunder by mail, first class postage prepaid, to the Holders, as
their names and addresses appear upon the Security Register. If the Company
fails to transmit such notice within ten days after acceptance of appointment
by the successor trustee, the successor trustee shall cause such notice to be
transmitted at the expense of the Company.

Section 7.16 Merger, Conversion, Consolidation Or Succession To Business.

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the corporate trust business of the Trustee, shall be
the successor of the Trustee hereunder, provided that such corporation shall be
qualified and eligible under the provisions of Section 7.12, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding. In case any
Securities shall have been

36

 

 authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Securities so authenticated with
the same effect as if such successor Trustee had itself authenticated such
Securities.

ARTICLE EIGHT

DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

     The Company may, at the option of the Board of Directors evidenced by a
resolution set forth in an Officers’ Certificate, at any time, elect to have
either Section 8.02 or 8.03 hereof be applied to all of the outstanding
Securities of any series upon compliance with the conditions set forth below in
this Article Eight.

Section 8.02 Legal Defeasance and Discharge.

     Upon the Company’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from its obligations with respect to all of the outstanding
Securities of any series on the date the conditions set forth below are
satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal
Defeasance means that, with respect to a series of Securities, the Company
shall be deemed to have paid and discharged all of its obligations under the
terms of such series of Securities and this Indenture (and the Trustee, on
reasonable demand of and at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following provisions which
shall survive until otherwise terminated or discharged hereunder: (a) the
rights of Holders of outstanding Securities of that series to receive solely
from the trust fund described in Section 8.04 hereof, and as more fully set
forth in such Section, payments in respect of the principal of, premium, if
any, and interest on such Securities when such payments are due, (b) the
Company’s obligations with respect to such Securities under Article 2
concerning issuing temporary Securities, registration of Securities and
mutilated, destroyed, lost or stolen Securities and Company’s obligations under
Section 4.02 hereof, (c) the rights, powers, trusts, duties and immunities of
the Trustee hereunder and the Company’s obligations in connection therewith and
(d) this Article 8. Subject to compliance with this Article 8, the Company may
exercise its option under this Section 8.02 notwithstanding the prior exercise
of its option under Section 8.03 hereof.

Section 8.03 Covenant Defeasance.

     Upon the Company’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be released from its
obligations under any covenants that are made applicable to such series of
Securities through a supplemental indenture pursuant to Section 2.01 of this
Indenture, on and after the date the conditions set forth in Section 8.04 are
satisfied (hereinafter, “Covenant Defeasance”), and the Securities of that
series shall thereafter be deemed not “outstanding” for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to

37

 

 be deemed “outstanding” for all other purposes hereunder (it being
understood that such Securities shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to
the outstanding series of Securities, the Company may omit to comply with and
shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference
in any such covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a Default or an Event of Default
under Section 6.01 hereof, but, except as specified above, the remainder of
this Indenture and such series of Securities shall be unaffected thereby. In
addition, upon the Company’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, Section 6.01(a)(iii) shall no longer
constitute an Event of Default.

Section 8.04 Conditions to Legal or Covenant Defeasance.

     The following shall be the conditions to the application of either Section
8.02 or Section 8.03 hereof to any outstanding series of Securities:

     (a)  the Company must irrevocably deposit with the Trustee, in trust, for
the benefit of the Holders of the series of Securities, cash in U.S. dollars,
non-callable Government Securities, or a combination of cash in U.S. dollars
and non-callable Government Securities, in amounts as will be sufficient, in
the opinion of a nationally recognized firm of independent public accountants,
to pay the principal of, or interest and premium on the series of Securities on
the Stated Maturity or on the applicable redemption date, as the case may be,
and the Company must specify whether the Securities of the series are being
defeased to maturity or to a particular redemption date and, if the Securities
of the series are being defeased to a particular redemption date, the Company
must have delivered to the Trustee an irrevocable notice of redemption;

     (b)  in the case of Legal Defeasance, the Company shall have delivered to
the Trustee an Opinion of Counsel reasonably acceptable to the Trustee
confirming that (a) the Company has received from, or there has been published
by, the Internal Revenue Service a ruling or (b) since the date hereof, there
has been a change in the applicable federal income tax law, in either case to
the effect that, and based thereon such Opinion of Counsel will confirm that,
the Holders of the series of Securities will not recognize income, gain or loss
for federal income tax purposes as a result of such Legal Defeasance and will
be subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such Legal Defeasance had not
occurred;

     (c)  in the case of Covenant Defeasance, the Company shall have delivered
to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee
confirming that the Holders of the series of Securities will not recognize
income, gain or loss for federal income tax purposes as a result of such
Covenant Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such Covenant Defeasance had not occurred;

38

 

     (d) no Default or Event of Default has occurred and is continuing either
(a) on the date of such deposit or (b) insofar as Events of Default from
bankruptcy or insolvency events are concerned, at any time in the period ending
on the 123rd day after the date of deposit;

     (e)  such Legal Defeasance or Covenant Defeasance will not result in a
breach or violation of, or constitute a default under, any material agreement
or instrument (other than this Indenture) to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

     (f)  the Company must have delivered to the Trustee an Officers’
Certificate stating that the deposit was not made by the Company with the
intent of preferring the Holders of the series of Securities of that series
over the other creditors of the Company or with the intent of defeating,
hindering, delaying or defrauding creditors of the Company or others;

     (g)  the Company must have delivered to the Trustee an Opinion of Counsel
to the effect that the creation of the defeasance trust does not violate the
Investment Company Act of 1940 and after the passage of 123 days following the
deposit, the trust fund will not be subject to the effect of Section 547 of the
U.S. Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law; and

     (h)  the Company must deliver to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that all conditions precedent relating to
the Legal Defeasance or the Covenant Defeasance have been complied with.

Section 8.05 Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous Provisions.

     (a)  Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee pursuant
to Section 8.04 hereof in respect of any outstanding series of Securities shall
be held in trust and applied by the Trustee, in accordance with the provisions
of such series of Securities and this Indenture, to the payment, either
directly or through any paying agent (including the Company acting as paying
agent) as the Trustee may determine, to the Holders of such series of
Securities of all sums due and to become due thereon in respect of principal,
premium, if any, and interest, but such money need not be segregated from other
funds except to the extent required by law.

     (b)  The Company shall pay and indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the cash or non-callable
Government Securities deposited pursuant to Section 8.04 hereof or the
principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the
outstanding series of Securities.

     (c)  Anything in this Article Eight to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon the request
of the Company any money or non-callable Government Securities held by it as
provided in Section 8.04 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion

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 delivered under Section 8.04 hereof), are in excess of the amount thereof
that would then be required to be deposited to effect an equivalent Legal
Defeasance or Covenant Defeasance.

Section 8.06 Repayment to the Company.

     Any money deposited with the Trustee or any paying agent, or then held by
the Company, in trust for the payment of the principal of, premium, if any, or
interest on any Security and remaining unclaimed for two years after such
principal, and premium, if any, or interest has become due and payable shall be
paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter
look only to the Company for payment thereof, and all liability of the Trustee
or such paying agent with respect to such trust money, and all liability of the
Company as Trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such paying agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in the New York
Times and The Wall Street Journal (national edition), notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining shall be repaid to the Company.

Section 8.07 Reinstatement.

     If the Trustee or paying agent is unable to apply any United States
dollars or non-callable Government Securities in accordance with Section 8.02
or Section 8.03 hereof, as the case may be, by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company’s obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to Section 8.02 or Section 8.03 hereof until such
time as the Trustee or paying agent is permitted to apply all such money in
accordance with Section 8.02 or Section 8.03 hereof, as the case may be;
provided, however, that, if the Company makes any payment of principal of,
premium, if any, or interest on any Securities following the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Holders
of such Securities to receive such payment from the money held by the Trustee
or paying agent.

ARTICLE NINE

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Securities.

     (a)  Notwithstanding Section 9.02 of this Indenture, the Company and the
Trustee may amend or supplement this Indenture or any series of Securities
without the consent of any Holder of a Security of such series:

		
	 	     (i) to cure any ambiguity, defect or inconsistency;

		
	 	     (ii) to provide for uncertificated Securities in addition to or in
place of certificated Securities;

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	 	     (iii) to provide for the assumption of the Company’s obligations to
Holders of Securities in the case of a merger or consolidation or sale of
all or substantially all of the Company’s assets;

		
	 	     (iv) to make any change that would provide any additional rights or
benefits to the Holders of Securities or that does not adversely affect
the legal rights under this Indenture of any such Holder;

		
	 	     (v) to comply with requirements of the SEC in order to effect or
maintain the qualification of this Indenture under the TIA; or

		
	 	     (vi) to allow any Subsidiary to guarantee the Securities.

     (b)  Upon the request of the Company accompanied by a resolution of its
Board of Directors authorizing the execution of any such amended or
supplemental indenture, and upon receipt by the Trustee of the documents
described in Section 7.02 hereof, the Trustee shall join with the Company in
the execution of any amended or supplemental indenture authorized or permitted
by the terms of this Indenture and to make any further appropriate agreements
and stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

Section 9.02 With Consent of Holders of Securities.

     (a)  Except as provided in Sections 9.02(b) and 9.02(d):

		
	 	     (i) the Company and the Trustee may, with respect to any series of
Securities, amend or supplement this Indenture or the Securities of such
series with the consent of the Holders of at least a majority in
aggregate principal amount of the then outstanding Securities of that
series (including, without limitation, consents obtained in connection
with a purchase of, or tender offer or exchange offer for, Securities);
and

		
	 	     (ii) subject to Section 6.05 and Section 6.08 hereof, any existing
Default or Event of Default or compliance in a particular instance by the
Company with any provision of this Indenture, or the Securities of that
series, may be waived with the consent of the Holders of a majority in
aggregate principal amount of the then outstanding Securities of that
series (including, without limitation, consents obtained in connection
with a purchase of, or tender offer or exchange offer for, Securities).

     (b)  Notwithstanding anything contained herein to the contrary, without the
consent of each Holder affected, an amendment or waiver under this Section 9.02
may not (with respect to any Securities held by a non-consenting Holder):

		
	 	     (i) reduce the principal amount of Securities of a series whose
Holders must consent to an amendment, supplement or waiver;

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	 	     (ii) reduce the principal of or change the fixed maturity of any
Security of a series or alter the provisions, or waive any payment, with
respect to the redemption of the Securities of that series;

		
	 	     (iii) reduce the rate of or change the time for payment of interest
on any Security of a series;

		
	 	     (iv) waive a Default or Event of Default in the payment of principal
of, or interest or premium, if any, on any Securities of a series (except
a rescission of acceleration of such Securities by the Holders of at
least a majority in aggregate principal amount of such Securities and a
waiver of the payment default that resulted from such acceleration);

		
	 	     (v) make the principal of or interest or premium, if any, on any
Security of a series payable in money other than U.S. dollars;

		
	 	     (vi) make any change in the provisions of this Indenture relating to
waivers of past Defaults or the rights of Holders of Securities of a
series to receive payments of principal of, or interest or premium, if
any, on such Securities;

		
	 	     (vii) waive a redemption payment with respect to any Security of a
series;

		
	 	     (viii) release any Guarantor from any of its obligations under its
Guarantee or this Indenture, except in accordance with the terms of this
Indenture;

		
	 	     (ix) impair the right to institute suit for the enforcement of any
payment on or with respect to the Securities or the Guarantees; or

		
	 	     (x) make any change in the preceding amendment and waiver
provisions.

     (c)  The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Persons entitled to consent to any indenture
supplemental hereto. If a record date is fixed, the Holders on such record
date, or its duly designated proxies, and only such Persons, shall be entitled
to consent to such supplemental indenture, whether or not such Holders remain
Holders after such record date; provided that unless such consent shall have
become effective by virtue of the requisite percentage having been obtained
prior to the date which is 90 days after such record date, any such consent
previously given shall automatically and without further action by any Holder
be cancelled and of no further effect.

     (d)  Upon the request of the Company accompanied by a resolution of its
Board of Directors authorizing the execution of any such amended or
supplemental indenture, and upon the filing with the Trustee of evidence
satisfactory to the Trustee of the consent of the Holders of the affected
series of Securities as aforesaid, and upon receipt by the Trustee of the
documents described in Section 7.02 hereof, the Trustee shall join with the
Company in the execution of such amended or supplemental indenture unless such
amended or supplemental indenture directly affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but shall not be obligated to, enter into such
amended or supplemental indenture.

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     (e)  Upon the execution of any amended or supplemental indenture with
respect to a series of Securities pursuant to the provisions of this Article or
of Section 5.01, this Indenture shall, with respect to such series of
Securities, be and be deemed to be modified and amended in accordance therewith
and the respective rights, limitations of rights, obligations, duties and
immunities under this Indenture of the Trustee, the Company and the holders of
Securities of the series affected thereby shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

     (f)  It shall not be necessary for the consent of the Holders of a series
of Securities under this Section to approve the particular form of any proposed
amendment or waiver, but it shall be sufficient if such consent approves the
substance thereof.

     (g)  After an amendment, supplement or waiver under this Section becomes
effective, the Company shall mail to the Holders of the series of Securities
affected thereby a notice briefly describing the amendment, supplement or
waiver. Any failure of the Company to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such
amended or supplemental indenture or waiver.

Section 9.03 Compliance with Trust Indenture Act.

     Every amendment or supplement to this Indenture or the Securities of any
series shall be set forth in an amended or supplemental indenture that complies
with the TIA as then in effect.

Section 9.04 Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to
it by a Holder of a Security is a continuing consent by the Holder of a
Security and every subsequent Holder of a Security or portion of a Security
that evidences the same Indebtedness as the consenting Holder’s Security, even
if notation of the consent is not made on any Security. However, any such
Holder of a Security or subsequent Holder of a Security may revoke the consent
as to its Security if the Trustee receives written notice of revocation before
the date the waiver, supplement or amendment becomes effective. An amendment,
supplement or waiver becomes effective in accordance with its terms and
thereafter binds every Holder.

Section 9.05 Notation on or Exchange of Securities.

     (a)  The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Security thereafter authenticated. The Company in
exchange for all Securities of a series may issue and the Trustee shall, upon
receipt of an authentication order, authenticate new Securities of that series
that reflect the amendment, supplement or waiver.

     (b) Failure to make the appropriate notation or issue a new Security shall
not affect the validity and effect of such amendment, supplement or waiver.

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Section 9.06 Trustee to Sign Amendments, Etc.

     The Trustee shall sign any amended or supplemental indenture or Security
authorized pursuant to this Article Nine if the amendment or supplement does
not adversely affect the rights, duties, liabilities or immunities of the
Trustee. The Company may not sign an amendment or supplemental indenture or
Security until its Board of Directors approves it. In executing any amended or
supplemental indenture or Security, the Trustee shall be entitled to receive
and (subject to Section 7.01 hereof) shall be fully protected in relying upon
an Officers’ Certificate and an Opinion of Counsel stating that the execution
of such amended or supplemental indenture is authorized or permitted by this
Indenture and that all conditions precedent to such execution have been met.

ARTICLE TEN

SATISFACTION AND DISCHARGE

Section 10.01 Satisfaction and Discharge.

     (a)  This Indenture shall be discharged and shall cease to be of further
effect as to all Securities of a series issued thereunder, when:

		
	 	     (i) either:

		
	 	     (A) all Securities of that series which have been
authenticated (except lost, stolen or destroyed Securities of the
series that have been replaced or paid and Securities of the series
for whose payment money has theretofore been deposited in trust and
thereafter repaid to the Company) have been delivered to the
Trustee for cancellation; or

		
	 	     (B) all Securities of that series which have not been
delivered to the Trustee for cancellation have become due and
payable by reason of the making of a notice of redemption or
otherwise or will become due and payable within one year and the
Company has irrevocably deposited or caused to be deposited with
the Trustee as trust funds in trust solely for the benefit of the
Holders of such Securities of that series, cash in U.S. dollars,
non-callable Government Securities, or a combination thereof, in
such amounts as will be sufficient without consideration of any
reinvestment of interest to pay and discharge the entire
Indebtedness on the Securities of that series not delivered to the
Trustee for cancellation for principal, premium, if any, and
accrued interest to the date of maturity or redemption;

		
	 	     (ii) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit or shall occur as a result of such
deposit and such deposit will not result in a breach or violation of, or
constitute a default under, any other instrument to which the Company is
a party or by which the Company is bound;

		
	 	     (iii) the Company has paid or caused to be paid all sums payable by
it hereunder; and

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	 	     (iv) the Company has delivered irrevocable instructions to the
Trustee hereunder to apply the deposited money toward the payment of the
Securities of that series at maturity or the redemption date, as the case
may be.

     (b)  In addition, the Company must deliver an Officers’ Certificate and an
Opinion of Counsel to the Trustee stating that all conditions precedent to
satisfaction and discharge have been satisfied.

Section 10.02 Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous Provisions.

     Subject to Section 10.03 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee pursuant
to Section 10.01 hereof in respect of the outstanding Securities of any series
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Securities and this Indenture, to the payment, either
directly or through any paying agent (including the Company acting as paying
agent) as the Trustee may determine, to the Holders of such Securities of that
series of all sums due and to become due thereon in respect of principal,
premium, if any, and interest, but such money be segregated from other funds
except to the extent required by law.

Section 10.03 Repayment to the Company.

     Any money deposited with the Trustee or any paying agent, or then held by
the Company, in trust for the payment of the principal of, premium, if any, or
interest on any Securities of any series and remaining unclaimed for two years
after such principal, and premium, if any, or interest has become due and
payable shall be paid to the Company on its request or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter look only to the Company for payment thereof, and all
liability of the Trustee or such paying agent with respect to such trust money,
and all liability of the Company as Trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such paying agent, before being required
to make any such repayment, may at the expense of the Company cause to be
published once, in the New York Times or The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining
shall be repaid to the Company.

ARTICLE ELEVEN

MISCELLANEOUS

Section 11.01 Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by TIA § 318(c), the imposed duties shall control.

Section 11.02 Notices.

     (a)  Any notice or communication by the Company or any Guarantor, on the
one hand, or the Trustee on the other hand, to the other is duly given if in
writing and delivered

45

 

 in Person or mailed by first class mail (registered or certified, return
receipt requested), telecopier or overnight air courier guaranteeing next day
delivery, to the others’ address:

     If to the Company:

	 	 	 
	 	 	
The GEO Group, Inc.

One Park Place

621 NW 53rd Street

Suite 700

Boca Raton, Florida 33487

Facsimile: (561) 999-7742

Attention: John G. O’Rourke

	 	 	 
	 	 	
With a copy to:
	 	 	 
	 	 	
Akerman Senterfitt

One Southeast Third Avenue

28th Floor

Miami, Florida 33131-1714

Facsimile: (305) 374-5095

Attention: Stephen K. Roddenberry
	 	 	 
	 	 	
If to the Trustee:
	 	 	
The Bank of New York

101 Barclay Street, 8W

New York, New York 10286

Facsimile: (212) 815-5704

Attention: Corporate Finance Unit, Ref: The GEO Group, Inc.

     (b)  The Company the Guarantors if any, or the Trustee, by notice to the
others may designate additional or different addresses for subsequent notices
or communications.

     (c)  All notices and communications (other than those sent to Holders)
shall be deemed to have been duly given: at the time delivered by hand, if
personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when receipt acknowledged, if telecopied; and the
next Business Day after timely delivery to the courier, if sent by overnight
air courier guaranteeing next day delivery.

     (d)  Any notice or communication to a Holder shall be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register
kept by the Registrar. Any notice or communication shall also be so mailed to
any Person described in TIA § 313(c), to the extent required by the TIA.
Failure to mail a notice or communication to a Holder or any defect in it shall
not affect its sufficiency with respect to other Holders.

     (e) If a notice or communication is mailed in the manner provided above
within the time prescribed, it is duly given, whether or not the addressee
receives it.

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Notwithstanding the foregoing, notices to the Trustee shall be deemed to
be effective only when actually received by the Trustee’s Corporate Trust
Department.

     (f)  If the Company mails a notice or communication to Holders, it shall
mail a copy to the Trustee and each Agent at the same time.

Section 11.03 Communication by Holders of Securities with Other Holders of Securities.

     Holders may communicate as provided in Section 312(b) of the TIA with
other Holders with respect to their rights under this Indenture or under the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA § 312(c).

Section 11.04 Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Company to the Trustee to take any
action under this Indenture, the Company shall furnish to the Trustee:

		
	 	     (i) an Officers’ Certificate in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth
in Section 11.05 hereof) stating that, in the opinion of the signers, all
conditions precedent and covenants, if any, provided for in this
Indenture relating to the proposed action have been satisfied; and

		
	 	     (ii) an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth
in Section 11.05 hereof) stating that, in the opinion of such counsel
(who may rely upon the Officer’s Certificate as to matters of fact), all
such conditions precedent and covenants have been satisfied.

Section 11.05 Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e)
and shall include:

		
	 	     (i) a statement that the Person making such certificate or opinion
has read such covenant or condition;

		
	 	     (ii) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;

		
	 	     (iii) a statement that, in the opinion of such Person, he or she has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or
condition has been satisfied; and

		
	 	     (iv) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been satisfied.

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Section 11.06 Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or paying agent may make reasonable rules and set
reasonable requirements for its functions.

Section 11.07 No Personal Liability of Directors, Officers, Employees and Shareholders.

     No recourse under or upon any obligation, covenant or agreement of this
Indenture, or of any Security, or any guarantee thereof or for any claim based
thereon or otherwise in respect thereof, shall be had against any incorporator,
shareholder, officer or director, past, present or future as such, of the
Company or any Guarantor or of any predecessor or successor corporation of the
Company or any Guarantor, either directly or through the Company or any
Guarantor or any such predecessor or successor corporation of the Company or
any Guarantor, whether by virtue of any constitution, statute or rule of law,
or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that this Indenture and the obligations issued hereunder
are solely corporate obligations, and that no such personal liability whatever
shall attach to, or is or shall be incurred by, the incorporators,
shareholders, officers or directors as such, of the Company, or any Guarantor
or of any predecessor or successor corporation of the Company or any Guarantor,
or any of them, because of the creation of the Indebtedness hereby authorized,
or under or by reason of the obligations, covenants or agreements contained in
this Indenture or in any of the Securities, or any guarantees thereof, or
implied therefrom; and that any and all such personal liability of every name
and nature, either at common law or in equity or by constitution or statute,
of, and any and all such rights and claims against, every such incorporator,
shareholder, officer or director as such, because of the creation of the
Indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Indenture or in any of the
Securities, or any guarantees thereof, or implied therefrom, are hereby
expressly waived and released as a condition of, and as a consideration for,
the execution of this Indenture, the issuance of such Securities, and any
guarantees thereof. Each Holder waives and releases all such liability. The
waiver and release are part of the consideration for issuance of the
Securities. The waiver may not be effective to waive liabilities under the
federal securities laws.

Section 11.08 Governing Law.

     THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

Section 11.09 Consent to Jurisdiction.

     Any legal suit, action or proceeding arising out of or based upon this
Indenture or the transactions contemplated hereby (“Related Proceedings”) may
be instituted in the federal courts of the United States of America located in
the City of New York or the courts of the State of New York in each case
located in the City of New York (collectively, the “Specified Courts”), and
each party irrevocably submits to the exclusive jurisdiction (except for
proceedings instituted in regard to the enforcement of a judgment of any such
court (a “Related Judgment”), as to which such jurisdiction is non-exclusive)
of such courts in any such suit, action or proceeding. Service

48

 

 of any process, summons, notice or document by mail to such party’s (other
than the Trustee) address set forth above shall be effective service of process
for any suit, action or other proceeding brought in any such court. The
parties irrevocably and unconditionally waive any objection to the laying of
venue of any suit, action or other proceeding in the Specified Courts and
irrevocably and unconditionally waive and agree not to plead or claim in any
such court has been brought in an inconvenient forum.

Section 11.10 No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or any of its Subsidiaries or of any other
Person. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

Section 11.11 Successors and Assigns.

     All agreements of the Company in this Indenture and the Securities shall
bind its successors and assigns. All agreements of the Trustee in this
Indenture shall bind its successors and assigns. .

Section 11.12 Severability.

     In case any provision in this Indenture or the Securities of any series
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

Section 11.13 Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed
copy shall be an original, but all of them together represent the same
agreement.

Section 11.14 Acts of Holders.

     (a)  Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by the Holders
may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Holders in person or by agents duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the
Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and conclusive in favor of the Trustee and the Company if made
in the manner provided in this Section.

     (b)  The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to such witness, notary or

49

 

 officer the execution thereof. Where such execution is by a signer acting
in a capacity other than his individual capacity, such certificate or affidavit
shall also constitute sufficient proof of authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

     (c)  Notwithstanding anything to the contrary contained in this Section,
the principal amount and serial numbers of Securities of any series held by any
Holder, and the date of holding the same, shall be proved by the register of
the Securities of that series maintained by the Registrar as provided in
Section 2.05 hereof.

     (d)  If the Company shall solicit from the Holders of the Securities any
request, demand, authorization, direction, notice, consent, waiver or other
Act, the Company may, at its option, by or pursuant to a resolution of its
Board of Directors, fix in advance a record date for the determination of
Holders entitled to give such request, demand, authorization, direction,
notice, consent, waiver or other Act, but the Company shall have no obligation
to do so. Notwithstanding TIA § 316(c), such record date shall be the record
date specified in or pursuant to such resolution, which shall be a date not
earlier than the date 30 days prior to the first solicitation of Holders
generally in connection therewith or the date of the most recent list of
Holders forwarded to the Trustee prior to such solicitation pursuant to Section
4.04 hereof and not later than the date such solicitation is completed. If
such a record date is fixed, such request, demand, authorization, direction,
notice, consent, waiver or other Act may be given before or after such record
date, but only the Holders of record at the close of business on such record
date shall be deemed to be Holders for the purposes of determining whether
Holders of the requisite proportion of the then outstanding Securities of that
series have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other Act, and for that
purpose the then outstanding Securities of that series shall be computed as of
such record date; provided that no such authorization, agreement or consent by
the Holders on such record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than 90
days after the record date.

     (e)  Any request, demand, authorization, direction, notice, consent, waiver
or other Act of the Holder of any Security of a series shall bind every future
Holder of the same Security and the Holder of every Security issued upon the
registration or transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done, omitted or suffered to be done by the Trustee or the
Company in reliance thereon, whether or not notation of such action is made
upon such Security.

     (f)  Without limiting the foregoing, a Holder entitled hereunder to take
any action hereunder with regard to any particular Security may do so itself
with regard to all or any part of the principal amount of such Security or by
one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such principal amount.

Section 11.15 Benefit of Indenture.

     Nothing, in this Indenture or in the Securities of any series, express or
implied, shall give to any Person, other than the parties hereto, any paying
agent, any Registrar and its successors

50

 

 hereunder, and the Holders of Securities of that series, any benefit or
any legal or equitable right, remedy or claim under this Indenture.

Section 11.16 Table of Contents, Headings, Etc.

     The Table of Contents, Cross-Reference Table and Headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and shall in no way
modify or restrict any of the terms or provisions hereof.

Section 11.17 Waiver of Jury Trial.

     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

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SIGNATURES:

	 	 	 	 
	 	 	
THE GEO GROUP, INC.
	 	 	 
	 	 	 
	 	 	
By:
	 	 	

	 	 	
Name:

Title:
	 	 	 
	 	 	 
	 	 	
THE BANK OF NEW YORK, as Trustee
	 	 	 
	 	 	 
	 	 	
By:
	 	 	

	 	 	
Name:

Title:

52<PAGE>
                                                                    Exhibit 10.1

                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT (the "AGREEMENT") is executed and
delivered as of November 13, 2003, by and among Waste Services, Inc., a Delaware
corporation ("BUYER PARENT"); the Affiliates of Buyer Parent set forth on
EXHIBIT A ("BUYERS"); Capital Environmental Resource Inc. ("CAPITAL"), an
Ontario (Canada) corporation and an Affiliate of Buyer Parent and Buyers; Allied
Waste Industries, Inc., a Delaware corporation ("SELLER PARENT"); and the
Affiliates of Seller Parent set forth on EXHIBIT A ("SELLERS").

                                    RECITALS

         A. Sellers own and operate the collection and hauling operations,
transfer stations, landfills and recycling facilities identified opposite their
names on EXHIBIT A (collectively, the "BUSINESS").

         B. Buyers desire to purchase and acquire substantially all of the
assets, properties and contractual rights of Sellers used in connection with the
Business, and Sellers desire to sell such assets, properties and contractual
rights to Buyers, all in accordance with the terms and conditions set forth in
this Agreement.

         C. Sellers and the Partnership own the real property described on
EXHIBIT B-1 as "Owned Land" (the "OWNED LAND") and lease the real property
described on EXHIBIT B-2 as "Leased Land" (the "LEASED LAND" and, together with
the "OWNED LAND", the "LAND").

         D. Seller Parent owns (directly or indirectly) all of the issued and
outstanding shares of the capital stock of Sellers.

         E. Buyers and Buyer Parent are unwilling to enter into this Agreement
without the covenants and promises of Seller Parent set forth herein.

         F. Seller Parent desires that Sellers sell such assets, properties and
contractual rights to Buyers upon the terms and subject to the conditions set
forth in this Agreement and, in order to induce Buyers to enter into this
Agreement, is willing to make the covenants and promises set forth herein.

         G. As of the date hereof, Capital owns (directly or indirectly) all of
the issued and outstanding shares of the capital stock of Buyer Parent and
Buyers. Following the US Reorganization Transaction, Buyer Parent will own
(directly or indirectly) all of the issued and outstanding shares of the capital
stock of Capital and Buyers.

         H. Sellers and Seller Parent are unwilling to enter into this Agreement
without the covenants and promises of Buyer Parent and Capital set forth herein.

         I. Buyer Parent and Capital desire that Buyers purchase and acquire
substantially all of the assets, properties and contractual rights of Sellers
used in connection with the Business upon the terms and subject to the
conditions set forth in this Agreement and, in order to induce Sellers and
Seller Parent to enter into this Agreement, are willing to make the covenants
and promises set forth herein.

         J. Except as the context otherwise requires, capitalized terms used in
this Agreement shall have the meanings assigned to them in EXHIBIT C.

<PAGE>

         NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained and other good and valuable consideration, received to the full
satisfaction of each of them, the parties hereby agree as follows:

                                   ARTICLE I

                                 SALE OF ASSETS

         1.1 SALE OF ASSETS BY SELLERS. On the terms and subject to the
conditions set forth in this Agreement, at the Closing, Sellers shall grant,
convey, sell, transfer and assign to Buyers, and Buyers shall purchase from
Sellers, all of Sellers' right, title and interest in and to the properties,
assets, rights, licenses, permits and contracts, wherever located, whether
tangible or intangible, real, personal or mixed, in each case that are used,
owned by, leased by or in the possession of Sellers principally in connection
with the Business, whether or not reflected on the books and records of Sellers
(the collective assets, properties, rights, licenses, permits and contracts to
be transferred by Sellers pursuant hereto are referred to collectively herein as
the "ASSETS"), free and clear of all Encumbrances except Permitted Exceptions,
and including all right, title and interest of Sellers in, to and under the
following used, owned by, leased by or in the possession of Sellers principally
in connection with the Business (but excluding the Excluded Assets):

                  (a) the Land, including with respect to (i) the Leased Land,
all of Sellers' leasehold interests in and to the Leased Land and improvements
thereon, and (ii) the Owned Land, all structures, improvements, buildings,
fixtures, easements and mineral, water and irrigation rights and other
appurtenances and rights and interests relating thereto owned by Sellers;

                  (b) subject to SECTION 1.3, all Permits held by Sellers,
including the Permits listed on SCHEDULE 1.1(B);

                  (c) all Equipment, including the Equipment listed on SCHEDULE
1.1(C);

                  (d) all Rolling Stock, including the Rolling Stock described
on SCHEDULE 1.1(D);

                  (e) all computer hardware and transferable, non-proprietary
software programs used, or held for use, principally in connection with the
Business;

                  (f) all Inventory, including the Inventory listed on SCHEDULE
1.1(F);

                  (g) all intangible property owned by Sellers and used or held
for use principally in connection with the Business, including all trade
secrets, intellectual property rights, patents, copyrights, inventions, symbols,
trademarks, service marks, logos and trade names used or held for use
principally in connection with the Business and owned by Sellers, except
(subject to SECTION 4.1) those symbols, trademarks, service marks, logos and
trade names that include the names of or otherwise identify Seller Parent or
include the names "Allied," "Browning-Ferris" or "BFI" (the "RETAINED IP");

                  (h) all Real Estate Leases, Customer Contracts, Assumed
Leases, Employee Contracts, Other Contracts and other contracts principally
relating to the Business (collectively, the "ASSUMED CONTRACTS");

                  (i) the Business Names listed on SCHEDULE 1.1(I);

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                  (j) the telephone number(s) used in the conduct of the
Business;

                  (k) all shop tools, nuts and bolts owned by Sellers and used
or held for use principally in connection with the Business;

                  (l) all recycling property, plant or equipment used or held
for use principally in connection with the Business, wherever located (including
any items located on a customer's site);

                  (m) all books and records relating to the Business, whether in
hard copy or computer format, including sales and promotional material, customer
lists and vendor lists and personnel records;

                  (n) to the extent relating to the Business, all prepaid
expenses and deposits, including any such expenses and deposits with respect to
leases, rentals and utilities;

                  (o) all Accounts Receivable of the Business;

                  (p) all furniture, fixtures and office equipment relating to
the Business;

                  (q) all of Sellers' claims pursuant to any representations,
warranties and guarantees made by suppliers, manufacturers, contractors and
other third Persons in connection with products or services purchased by or
furnished to the Business prior to the Closing;

                  (r) to the extent relating to the Business, all rights under
agreements with employees and other third Persons concerning confidentiality and
assignment of inventions;

                  (s) all goodwill of the Business;

                  (t) all of the general and limited partnership interests of
Jones Road Landfill and Recycling, Ltd. (the "PARTNERSHIP"); and

                  (u) all commodities and recycling inventories of the Business.

         Notwithstanding the foregoing, the transfer of Assets pursuant to this
Agreement shall not include the assumption of any Liability related to any Asset
or the Assets (other than the Assumed Liabilities).

         1.2 EXCLUDED ASSETS. The parties agree that certain assets of Sellers
shall remain the property of Sellers and shall not be sold to Buyers at the
Closing (the "EXCLUDED ASSETS"). Such Excluded Assets are as follows: (a) all
real property and all buildings on and fixtures to all real property of Sellers
not set forth on EXHIBIT B-1 or B-2; (b) all contracts and contract rights and
obligations of Sellers (whether oral or in writing) that do not relate
principally to the Business; (c) records which relate primarily to Excluded
Assets, Excluded Liabilities, or Taxes; (d) the stock and corporate record books
of Sellers; (e) the rights which accrue or will accrue to Sellers under this
Agreement; (f) all right, title and interest in and to any financial
responsibility, financial assurance or similar mechanisms required to be
maintained by owners or operators of landfill, transfer station or recycling
facilities under Applicable Laws; (g) any inter-company receivables from
Sellers, Seller Parent, or their Affiliates; (h) all present and future refunds
relating to Taxes of Sellers for periods prior to the Closing Date; (i) all
insurance policies and all rights with respect thereto; (j) all litigation
rights to which a Seller is plaintiff and all causes of action and claims of
every nature, kind and description; (k) all billing, route management and other
proprietary software programs and all other software programs that are not
transferable; (l) all petty and other cash

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and cash equivalents on hand or in a bank; (m) all bank accounts; (n) all escrow
accounts; and (o) all properties, assets, rights, licenses, permits, and
contracts that are not used, owned by, leased by or in the possession of Sellers
principally in connection with the Business. With respect to any Excluded Assets
held by the Partnership, Seller Parent will cause the Partnership to distribute
or transfer such Excluded Assets to a Seller or an Affiliate before Closing.

         1.3 NON-ASSIGNMENT OF CERTAIN CUSTOMER CONTRACTS AND PERMITS.
Notwithstanding anything to the contrary in this Agreement, to the extent that
the sale or assignment hereunder of any Customer Contract, Assumed Lease or
Permit included within the Assets shall require the consent of any third Person,
neither this Agreement nor any action taken pursuant to its provisions shall
constitute an assignment or an agreement to assign if such assignment or
attempted assignment would constitute a breach thereof or be ineffective or
result in the loss or diminution thereof; provided, however, that in each such
case, Sellers and Buyers shall each use commercially reasonable efforts to
obtain the consent of such other party to such assignment to Buyers both before
and after the Closing. If any Customer Contract, Assumed Lease or Permit is not
assigned at the Closing, Sellers shall hire a Buyer as a subcontractor to
perform the obligations under such Customer Contracts, Assumed Leases and
Permits. Pursuant to the subcontractor relationship, such Buyer shall be
entitled to receive all payments due under such Customer Contracts, Assumed
Leases and Permits with respect to work performed after Closing, and such Buyer
shall bear all expenses incurred after Closing related to such work performed
after Closing under such subcontracts. In the event that a Customer Contract,
Assumed Lease or Permit included within the Assets does not permit a
subcontractor relationship, Buyers and Sellers shall execute at Closing such
documents as may be necessary to accomplish performance of the Customer
Contract, Assumed Lease or Permit while retaining for Buyers' account the
financial, accounting and economic results associated with such Customer
Contract, Assumed Lease or Permit.

                                   ARTICLE II

                                 PURCHASE PRICE

         2.1 PURCHASE PRICE.

                  (a) Subject to adjustment as provided in this ARTICLE II, the
purchase price for the Assets and the covenants of Seller Parent and Sellers
contained in ARTICLE XIII shall be $120,000,000 (the "PURCHASE PRICE"). The
Purchase Price shall be paid by Buyers as follows: (i) $7,500,000 (the
"DEPOSIT") by wire transfer of immediately available funds concurrently with the
execution of this Agreement; and (ii) subject to possible adjustment as provided
in SECTION 9.7, $112,500,000 by wire transfer of immediately available funds at
the Closing. The Purchase Price and all other dollar amounts contemplated by
this Agreement are stated in United States dollars, and all amounts payable
pursuant to this Agreement shall be paid in United States dollars.

                  (b) The following capitalized terms used in this Agreement
shall have the following meanings:

                           (i) "ADJUSTMENT AMOUNT" means an amount (which may be
positive or negative) equal to: (A) the amount of Net Working Capital as of
Closing, which amount may be positive or negative; MINUS (B) the agreed-upon
value of any Liabilities assumed by Buyers pursuant to SECTION 10.2(D)(IV).

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                           (ii) "NET WORKING CAPITAL" means (A) the aggregate
current assets included within the Assets, LESS (B) the aggregate current
liabilities of Sellers assumed by Buyers under SECTION 10.2, in each case
determined in accordance with GAAP on a basis consistent with the balance sheet
dated December 31, 2002 included within the Sellers' Financial Statements.
Notwithstanding the foregoing, however: (A) any liabilities described in SECTION
10.2(D) shall not be deemed current liabilities; (B) the Stay-On Bonuses to be
paid by Buyers at the Closing shall not be deemed liabilities (current or
otherwise); (C) the prepaid deposits (current or otherwise) shall be deemed
current assets; (D) the commodities and recycling inventories shall be deemed
current assets and shall be valued according to fair market value; and (E)
current liabilities shall include a reserve for bad debts calculated on a basis
consistent with the bad debt reserve for the year ended December 31, 2002
included within the Sellers' Financial Statements.

         2.2 PURCHASE PRICE ADJUSTMENT.

                  (a) Within sixty (60) days after the Closing, Buyer Parent
shall prepare a computation of the Adjustment Amount as of the Closing Date and
deliver such computation to Seller Parent. If within twenty (20) days following
delivery of such computation Seller Parent does not deliver a written objection
thereto to Buyer Parent, then the Adjustment Amount shall be as reflected on the
computation provided pursuant to the preceding sentence. If Seller Parent timely
objects to the computation, then Buyer Parent and Seller Parent shall negotiate
in good faith and attempt to resolve their disagreement. Should such
negotiations not result in an agreement within twenty (20) days after delivery
of such written objection, then the matter shall be submitted to KPMG, LLP (the
"NEUTRAL AUDITOR"). All fees and expenses relating to the work, if any, to be
performed by the Neutral Auditor will be borne equally by Buyers and Sellers.
The Neutral Auditor will deliver to Buyer Parent and Seller Parent a written
determination (such determination to include a worksheet setting forth all
material calculations used in arriving at such determination and to be based
solely on information provided to the Neutral Auditor by Buyer Parent and Seller
Parent, or their respective Affiliates) of the disputed items within thirty (30)
days of receipt of the disputed items, which determination will be final,
binding and conclusive on the parties.

                  (b) Promptly following agreement on or delivery of the final,
binding and conclusive computation setting forth the Adjustment Amount, Buyer
Parent and Seller Parent shall account to each other as provided for in this
SECTION 2.2(B). If the Adjustment Amount is a positive number, then Buyers shall
pay Sellers a cash payment equal to such excess as an increase in the Purchase
Price. If the Adjustment Amount is a negative number, then Sellers shall pay
Buyers a cash payment equal to such deficit as a decrease in the Purchase Price.
Any such excess or deficit payment shall be due and payable within five (5) days
after the Adjustment Amount is determined pursuant to this SECTION 2.2 and shall
be payable in immediately available funds by wire transfer to an account
designated by Buyers or Sellers, as applicable, for such purpose.

         2.3 ALLOCATION OF PURCHASE PRICE. Within thirty (30) days following the
final determination of the Adjustment Amount, the parties shall negotiate in
good faith the allocation of the Purchase Price and the Assumed Liabilities
among the Assets. The parties agree to file (or cause to be filed) all Tax
returns (including amended Tax returns and claims for refund) in a manner
consistent with such allocation of the Purchase Price described in this SECTION
2.3, and shall use their commercially reasonable efforts to sustain such
allocation in any subsequent Tax audit or Tax dispute. The parties acknowledge
and agree that the allocation reflected in this SECTION 2.3 is intended to be
made in accordance with the requirements of Code Section 1060 and will be based
on the fair market value of the Assets as determined by arm's length
negotiations.

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                                   ARTICLE III

                                     CLOSING

         3.1 TIME AND PLACE OF CLOSING.

                  (a) GENERALLY. Subject to SECTION 3.1(B), the purchase and
sale provided for in this Agreement (the "Closing") shall take place at the
offices of Fennemore Craig, P.C., 3003 North Central Avenue, Suite 2600,
Phoenix, Arizona 85012 at 9:00 a.m., local time, as promptly as practicable (but
in any event within ten (10) Business Days) following the date on which the last
of the conditions set forth in ARTICLE VIII and ARTICLE IX are fulfilled,
satisfied or waived or at such other time or place as the parties shall agree in
writing. The date on which the Closing occurs is herein referred to as the
"CLOSING DATE." From the date hereof through the Closing Date or the earlier
termination of this Agreement, Buyer Parent and its Affiliates shall not close
any acquisition of hauling assets in Florida involving more than $5,000,000 in
annual revenues from a single seller (or Affiliates of such seller).

                  (b) REAL ESTATE. At the Closing, the sale and conveyance of
the Owned Land shall be consummated through an escrow established at the Title
Company, although actual payment of the Purchase Price allocable to the Owned
Land shall not be paid through the escrow.

         3.2 DELIVERIES BY SELLERS AND SELLER PARENT. At the Closing, Sellers
and Seller Parent shall deliver or cause to be delivered to Buyers, all duly and
properly executed (where applicable):

                  (a) subject to SECTION 3.8, Deeds conveying to Buyers title to
each parcel of Owned Land subject only to the Permitted Exceptions and, for all
Leased Land, an Assignment, Assumption and Consent to Leased Land executed by
Sellers and the applicable landlord under the Real Estate Leases (if necessary);

                  (b) subject to SECTION 3.8, a standard owner's policy of title
insurance, or irrevocable commitment therefor, from the Title Company for each
parcel of Owned Land providing or agreeing to provide, as applicable, title
insurance in favor of Buyers in the amount determined for such parcel of Land in
accordance with SECTION 3.4(B), subject only to the Permitted Exceptions;

                  (c) a Bill of Sale;

                  (d) patent, trademark and copyright assignments, in form and
substance reasonably acceptable to Buyers and Sellers, providing for the
transfer of any patents, trademarks and copyrights included in the Assets;

                  (e) a receipt for the Purchase Price (as adjusted pursuant to
ARTICLE II);

                  (f) good standing certificates (i) with respect to Seller
Parent, the Partnership and Sellers, from their states of formation and (ii)
with respect to Sellers and the Partnership, from each state in which they own
any of the Assets or are carrying out the Business;

                  (g) sworn affidavits stating, under penalty of perjury, that
Sellers are not "foreign persons" as defined under the Code and other
appropriate evidence or documents (including any Tax clearance certificate or
similar document that may be required by any state Tax authority) necessary in
order to relieve Buyers of any obligation to withhold any portion of the
Purchase Price under Section 1445(a) of the Code or any other withholding
provision of any other Tax law;

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                  (h) certified copies of resolutions of the boards of directors
of Sellers and the board of directors or executive committee of Seller Parent
authorizing the execution of this Agreement and the other documents and
agreements contemplated hereby, the sale of the Assets to Buyers, and the
consummation of the Transactions, along with incumbency certificates of Sellers
and Seller Parent;

                  (i) a National Account subcontract substantially in the form
of EXHIBIT D (the "NATIONAL ACCOUNT Subcontract");

                  (j) a letter from Seller Parent's lenders confirming that all
blanket liens on the Assets will be released concurrently with the Closing;

                  (k) a right of first refusal agreement substantially in the
form of EXHIBIT G (the "RIGHT OF FIRST REFUSAL AGREEMENT");

                  (l) the payment described in SECTION 15.6(C); and

                  (m) such other separate documents or instruments of sale,
assignment, or transfer as Buyers shall reasonably request, including titles and
registrations for the Rolling Stock.

         3.3 DELIVERIES BY BUYERS AND BUYER PARENT. At the Closing, Buyers and
Buyer Parent shall deliver or cause to be delivered to Sellers, all duly and
properly executed (where applicable):

                  (a) the portion of the Purchase Price to be paid at Closing as
provided in SECTION 2.1, by wire transfer of immediately available funds to such
account as shall have been specified in writing by Sellers to Buyers not less
than two (2) Business Days prior to Closing;

                  (b) certified copies of resolutions of the boards of directors
of Buyers, Buyer Parent and Capital authorizing the execution and delivery of
this Agreement and the other documents and agreements contemplated hereby and
the consummation of the Transactions, along with incumbency certificates of
Buyers, Buyer Parent and Capital;

                  (c) for all Leased Land, an Assignment, Assumption and Consent
to Leased Land;

                  (d) good standing certificates (i) with respect to Buyer
Parent and Buyers, from their states of incorporation and (ii) with respect to
Buyers, from each state in which they will own any of the Assets or carry out
the Business;

                  (e) the Buyers' Assumption Agreements;

                  (f) the National Account Subcontract;

                  (g) the Right of First Refusal Agreement;

                  (h) the Environmental Access Agreement with respect to the
Jones Road Landfill in substantially the form of EXHIBIT J; and

                  (i) such other separate documents or instruments of sale,
assignment, transfer or assumption as Sellers shall reasonably request.

         3.4 TITLE POLICIES AND DOCUMENTS.

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                  (a) The parties acknowledge and agree that before the
execution of this Agreement, the Title Company delivered to Buyers and Buyers
delivered to Sellers the following: (i) a Title Commitment insuring fee simple
title in the name of Buyers for each parcel of Owned Land (except for a portion
of 6800 Osteen Road, New Port Richey, Florida and a portion of the Nassau
Landfill), and (ii) legible copies of the documents identified in Schedule B or
the requirements section of each Title Commitment. Within two (2) Business Days
after receipt of a written request from Buyers, Sellers shall execute and
deliver authorizations that may be sent by Buyers to governmental and other
public authorities that authorize such authorities to reveal to Buyers all
information, if any, in any files the authorities have on the Land, or any part
thereof, provided such authorizations do not authorize or request inspections
with respect to the Land. Except as expressly provided in SECTION 3.5, all costs
attributable to the issuance of the Title Commitments, any title searches, title
reports, standard owners' title policies, standard leasehold title policies,
endorsements, modifications to standard exceptions, and other title-related
costs shall be borne solely by Buyers and paid to the Title Company at the
Closing. Sellers agrees to execute all customary affidavits, in reasonable form,
and other reasonable documents, in order to permit the issuance of the title
policies and the requested endorsements, including (if applicable) a
"non-imputation" endorsement to the effect that title defects known to the
officers, directors, and stockholders of the owner prior to the Closing shall
not be deemed "facts known to the insured" for purposes of the policies.

                  (b) The value of the Land for title insurance, transfer tax,
documentary stamps and other relevant purposes will equal the fair value of each
parcel as determined by the relevant governmental assessor, as adjusted by the
multiplier covering such assessor, as determined by National Property Tax
Management, Inc.

         3.5 TITLE AND SURVEY REVIEW; PERMITTED EXCEPTIONS; OTHER TERMINATION
RIGHTS. Except as provided below, Buyers shall have thirty (30) days after the
execution of this Agreement to notify Sellers in writing of any Unpermitted
Exceptions for any parcel of Land. Buyers will deliver to Sellers all new Title
Commitments, all amendments to any Title Commitments, all new Surveys and any
updates to any Surveys within five (5) days after Buyers' receipt thereof. In
addition, if a new Title Commitment, an amendment to a Title Commitment, a new
Survey or an updated Survey is issued after the applicable thirty (30) day
period that discloses an Unpermitted Exception not previously disclosed, Buyers
shall provide notice of objection to such Unpermitted Exception to Sellers
within ten (10) days after receipt of the amendment to the Title Commitment or
new Survey or an update to the Survey, as applicable. If Buyers fails to timely
deliver an objection notice as required by the previous sentence, Buyers shall
be conclusively deemed to have approved the matter as of the last day of the
relevant objection period. Sellers shall have ten (10) days after notice of any
Unpermitted Exception is given by Buyers within which to give notice to Buyers
in writing as to whether Sellers elect to cure or insure around any such matter;
provided, however, that Sellers shall be required to cure, or insure around at
Sellers' expense, any monetary Unpermitted Exception (i.e., financing
Encumbrances and other monetary liens affecting the Land). Except with respect
to a monetary Unpermitted Exception, failure to notify Buyers in writing within
such period of their election to cure or insure around shall be deemed Sellers'
election not to cure or insure around. Buyers shall have five (5) days following
receipt of Sellers' notice or deemed notice electing not to cure or insure
around in which to (a) elect to waive their objection to any Unpermitted
Exception that Sellers do not elect to cure or insure around, or (b) remove the
affected parcel of Land from the Transactions (in which case the Purchase Price
shall be reduced by the value of such parcel as determined in accordance with
SECTION 3.4(b)). If Buyers fail to notify Sellers in writing of Buyers' election
within such five (5)-day period, Buyers shall be deemed to have elected in
accordance with (a) of the preceding sentence and such Unpermitted Exception
shall be

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deemed a Permitted Exception. In addition to Buyers' other rights under this
SECTION 3.5, Buyers may also terminate this Agreement under this SECTION 3.5 if
the Unpermitted Exceptions that Sellers do not elect to cure or insure around,
taken as a whole, could reasonably be expected to result in a Material Adverse
Change if the rights, benefits or privileges under such Unpermitted Exceptions
are properly asserted or enforced by the beneficiaries thereof or the
restrictions affecting such Owned Land under such Unpermitted Exceptions are
enforced.

         3.6 SURVEY. Buyers acknowledge and agree that before the execution of
this Agreement, they have obtained any ALTA surveys they desire with respect to
the Land (the "SURVEYS"), except for a portion of 6800 Osteen Road, New Port
Richey, Florida and a portion of the Nassau Landfill. Within ten (10) days after
the execution of this Agreement, Buyers shall deliver to Sellers any Survey they
have obtained and not yet delivered with respect to the Land, except for a
portion of 6800 Osteen Road, New Port Richey, Florida and a portion of the
Nassau Landfill (which Buyers shall deliver to Sellers within five (5) days
after they receive the same). The costs of all Surveys obtained under this
SECTION 3.6 shall be borne solely by Buyers and paid to the appropriate Survey
preparer in accordance with Buyers' separate arrangements with each such
preparer.

         3.7 PRORATIONS AND CHARGES. All Taxes relating to the Owned Land for
any tax year prior to the real estate tax year in which the Closing occurs shall
be paid in full by Sellers on or before the Closing Date or an amount sufficient
to fully discharge the same shall be deposited in escrow by Sellers on the
Closing Date with the Title Company for payment to the relevant Tax authority.
Taxes relating to the Owned Land for the current tax year shall be prorated
between Sellers and Buyers as of the Closing Date on a daily, pro-rata basis
based upon the latest available estimates of the amount thereof or the actual
amount of such Taxes. With respect to Leased Land, the appropriate parties shall
prorate, effective as of the close of business on the Closing Date, to the
extent relevant rent, real estate taxes, operating costs (e.g., CAMs) and any
other amounts (other than payments attributable to a breach of the Real Estate
Lease by Sellers) due under the applicable Real Estate Lease, which proration
shall be included within the adjustment under SECTION 2.2. Buyers and Sellers
shall each pay one-half of the escrow fees and any cancellation fees owing to
the Title Company. Documentary and other customary Closing costs, such as
recording fees, shall be allocated to and paid by Sellers or Buyers, as the case
may be, in accordance with the custom for similar transactions in the county
where the Owned Land is located.

         3.8 UNSATISFIED CONDITIONS; OTHER TERMINATION RIGHTS. If, as of the
Closing Date, any Unsatisfied Conditions exist, then Buyers shall have the
following rights:

                  (a) Buyers may close under this Agreement subject to the
Unsatisfied Conditions, in which case (i) that portion of the Purchase Price
allocated to each parcel of Land affected by any Unsatisfied Conditions,
together with a reasonable allocation of Closing costs, including tax
prorations, title costs, and transfer taxes, will be placed in escrow with the
Title Company until all Unsatisfied Conditions have been resolved, satisfied
and/or delivered, as applicable, and all items listed in SECTION 3.2 have been
delivered with respect to each parcel of Land affected by Unsatisfied
Conditions, (ii) Sellers or Buyers, as applicable, shall diligently work to
ensure that the Unsatisfied Conditions are resolved, satisfied or delivered as
soon as reasonably possible, but in no event later than thirty (30) days
following Closing, (iii) Buyers' right to remove an affected parcel of Land from
the Transactions pursuant to SECTION 3.5 shall continue to apply notwithstanding
the Closing, (iv) Buyers may, upon written notice to Sellers, remove any parcel
of Land affected by Unsatisfied Conditions which are not resolved, satisfied
and/or delivered, as applicable, within thirty (30) days following the Closing
Date, (v) Buyers and Sellers shall enter into, on or before Closing, Temporary
Use Agreements with respect to

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any affected parcel of Land that Buyers reasonably deem to be necessary for the
operation of the Business following the Closing Date, and (vi) notwithstanding
clause (i) of this SECTION 3.8(A), with respect to each parcel of Land that
Buyers remove from the Transactions pursuant to SECTION 3.5 or pursuant to
clause (iv) of this SECTION 3.8(a), the Title Company shall immediately return
the escrowed Purchase Price for such parcel of Land to Buyers unless Sellers
offer Buyers the economic rights associated with the Land, through an operating
agreement, long term lease or other mechanism reasonably acceptable to Buyers,
in which case an amount equal to the funds due to Sellers for the first payment
period (e.g., if payments are made on an annual basis, the first year's
payments; if payments are made on a monthly basis, the first month's payments)
under such operating agreement, long term lease or other mechanism shall be paid
to Sellers and the remainder of the escrowed Purchase Price for such parcel
shall be paid to Buyers; or

                  (b) If the Unsatisfied Conditions existing as of the scheduled
Closing Date, taken as a whole, could reasonably be expected to result in a
Material Adverse Change if not resolved, Buyers may terminate this Agreement by
delivering written notice to Sellers.

         3.9 STAY-ON BONUSES. Buyer Parent shall perform the obligations of
Seller Parent to make payments in an aggregate amount of $350,000 (the "STAY-ON
BONUSES") under the Retention Bonus Agreements in substantially the form of
EXHIBIT E (the "RETENTION BONUS AGREEMENTS") in accordance with the terms of
such agreements.

                                   ARTICLE IV

                             POST CLOSING COVENANTS

         4.1 REMOVAL OF IDENTIFICATION. On or before the date which is six (6)
months after the Closing, Buyers shall remove from the Assets or otherwise
conceal all visible usage of the Retained IP; provided, however, that Buyers
shall have until the date which is twelve (12) months after the Closing to
remove or conceal all usage of Retained IP in connection with customer
containers. Until the relevant date, Buyers shall have a non-transferable,
non-exclusive, royalty-free right and license to use the Retained IP in the
conduct of the Business in a manner consistent with Sellers' pre-Closing usage
thereof.

         4.2 FURTHER ASSURANCES. From time to time on and after the Closing and
without further consideration except as provided herein, the parties shall each
deliver or cause to be delivered to any other party at such times and places as
shall be reasonably requested, such additional instruments as any of the others
may reasonably request for the purpose of carrying out this Agreement and the
Transactions. Seller Parent, also without further consideration, agrees to
cooperate with Buyers and to use its reasonable commercial efforts to have its
officers and employees and the officers and employees of Sellers cooperate on
and after the Closing Date in furnishing to Buyers information, evidence,
testimony, and other assistance in connection with obtaining all necessary
Permits and approvals and in connection with any third party actions,
proceedings, arrangements or disputes of any nature with respect to matters
pertaining to all periods prior to the Closing Date; provided, however, that
this obligation shall not apply to disputes among the parties, and that Seller
Parent shall not be required to expend any sum of money toward that end beyond
reasonable and typical overhead expenditures. Seller Parent and Sellers shall
also, upon Buyers' request, provide Buyers with copies of any records which
Buyers reasonably request relating to the Business but which constitute Excluded
Assets with, at Sellers' option, all information not related to the Business
redacted. Buyer Parent, also without further consideration, agrees to cooperate
with Sellers and to use its reasonable commercial efforts to have the

                                       10
<PAGE>

officers and employees of Buyers cooperate on and after the Closing Date in
furnishing to Sellers information, evidence, testimony, and other assistance
(including reasonable access to the Assets and Land) in connection with any
third party actions, proceedings, arrangements or disputes of any nature with
respect to matters pertaining to all periods prior to the Closing Date;
provided, however, that this obligation shall not apply to disputes among the
parties, and that Buyer Parent shall not be required to expend any sum of money
toward that end beyond reasonable and typical overhead expenditures.

         4.3 TRANSITION MATTERS.

                  (a) BILLING AND CASH PROCESSING SERVICES. For a period of
ninety (90) days following the Closing Date (the "TRANSITION PERIOD"), Sellers
shall perform the billing and cash processing services relating to the Business
for Buyers' account and without additional consideration to Sellers. Sellers
agree to perform the billing and cash processing services in accordance with
past practices of Sellers. All payments made to Sellers on behalf of Buyers
after the Closing and relating to the Assets shall be deemed to be the property
of Buyers. At least once per month, if Sellers receive any cash from the
Accounts Receivable, whether deposited in Sellers' lock boxes or otherwise,
Sellers shall transfer and deliver such cash, checks and other property to
Buyers without charge by Sellers, and will account to Buyers for all such
receipts. The parties agree that after the Closing they will transfer and
deliver to the other, from time to time and at least once per month, any cash,
checks or other property that they may receive on or after the Closing which
properly belongs to the other party.

                  (b) COMPUTER SUPPORT. During the Transition Period, Sellers
shall provide or cause to be provided to Buyers, without additional
consideration, access during normal business hours, through Seller Parent's or
its Affiliates' personnel, to the customer billing, collection and route
management systems used in the Business and will provide such standard reports
with respect to the Business as Buyers reasonably require to efficiently operate
the Business and to facilitate a smooth transition of the Assets.

                  (c) EMPLOYEE BENEFITS. Upon Buyers' request, Seller Parent
shall continue to provide health care benefits to the Business Employees on the
same terms and conditions as presently provided for a period of up to ninety
(90) days following the Closing. Buyers shall reimburse Seller Parent for its
actual costs in providing such benefits.

                  (d) UNUSED VACATION. Sellers shall pay all amounts owing to
Business Employees for unused, accrued vacation and sick days up to the Closing
Date.

         4.4 UNIFORM RENTAL AGREEMENT. Beginning on the first day of the first
month following Closing and ending on October 15, 2006, Buyer Parent shall cause
Buyers to, and Buyers shall, rent uniforms for the Business pursuant to that
certain Cintas Corporation Multiple Location Rental Account Agreement, dated
April 16, 2001, between Cintas Sales Corporation ("CINTAS") and Allied Waste
Industries, Inc. - Southeast Region (the "UNIFORM Contract"). Buyers' obligation
to rent uniforms under the Uniform Contract shall extend to all of the Business
Employees (the "MINIMUM UNIFORMED EMPLOYEES"); provided, however, that, in the
event Buyers close or cease to operate any one of the facilities included among
the Assets, and terminate the employment of Business Employees on account
thereof, the number of Minimum Uniformed Employees shall be reduced accordingly.
Buyers may, but are not obligated to, rent uniforms under the Uniform Contract
for more than the Minimum Uniformed Employees. Notwithstanding anything herein
to the contrary, if in the judgment of Buyer Parent acting reasonably, (a) the
Uniform Contract is amended in a manner adverse to Buyers or (b) Cintas, Seller
Parent or their respective Affiliates breach any of their obligations under the
Uniform Contract or this

                                       11
<PAGE>

SECTION 4.4, Buyers may terminate their obligations under this SECTION 4.4 by
written notice to Seller Parent. Seller Parent and its Affiliates may terminate
the Uniform Contract or enter into a new uniform contract that would not impose
any Liability or obligation on Buyers without the consent of or liability to
Buyers or Buyer Parent. The price and delivery terms for the uniforms rented by
Buyers shall not differ from the price and delivery terms provided to Sellers
under the terms of the Uniform Contract. Notwithstanding anything to the
contrary contained herein, if Cintas does not deliver the uniforms to Buyers
(after Closing) in accordance with the terms of the Uniform Contract, Buyers
shall not be required to pay Sellers for the uniforms that were not delivered
and Buyers shall be entitled to terminate their obligations under this SECTION
4.4. Within fifteen (15) days following the end of each calendar month
(beginning after the second calendar month following the Closing Date), Sellers
shall provide Buyers with an invoice, including appropriate supporting
documentation in reasonable detail, setting forth the aggregate amount of
uniforms rented by Buyers during the previous calendar month. If there is no
dispute relating to the invoice, Buyers shall pay each invoice received from
Sellers no later than thirty (30) days after receipt of such invoice. Buyer
Parent and Buyers acknowledge and agree that: (a) the current terms of the
Cintas Uniform Contract are acceptable to them; and (b) their sole remedy for
any violation by Seller Parent or its Affiliates of this SECTION 4.4 shall be
termination of their obligations pursuant to this SECTION 4.4.

         4.5 BLANKET LIEN RELEASES. The Assets are encumbered by blanket liens
in favor of Seller Parent's various lenders, all of which liens will be released
concurrently with the Closing. Within sixty (60) days after the Closing Date,
Sellers shall deliver evidence to Buyers of the release of all such security
interests as of the Closing Date.

         4.6 NATIONAL ACCOUNTS. For a period of three (3) years following the
Closing Date, if Seller Parent or any of its Affiliates acquires a new National
Account after the Closing with operations in the Counties described in SECTION
13.3, Seller Parent shall subcontract these new National Accounts to Buyers
pursuant to subcontract arrangements substantially similar to the National
Account Subcontract.

         4.7 FUEL PURCHASE AGREEMENT. Beginning on the first day of the first
month following Closing and ending on February 28, 2005, Buyer Parent shall
cause Buyers to, and Buyers shall, purchase from Sellers an aggregate of 87,339
gallons of fuel per calendar month (the "MONTHLY MINIMUM"), allocated among the
portions of the Business as provided in EXHIBIT F, from Sellers' Midwest
allotment of fuel under the Contractual Delivered Fuel Supply Sales Agreement
(the "TRANSMONTAIGNE AGREEMENT"), dated February 27, 2002, between Seller Parent
and TransMontaigne Product Services, Inc. ("TRANSMONTAIGNE"). Seller Parent
shall inform Buyers of any amendment to the TransMontaigne Agreement.
Notwithstanding anything herein to the contrary, if in the judgment of Buyer
Parent acting reasonably, (a) the TransMontaigne Agreement is amended in a
manner adverse to Buyers or (b) TransMontaigne, Seller Parent or their
respective Affiliates breach any of their obligations under the TransMontaigne
Agreement or this SECTION 4.7, Buyers may terminate their obligations under this
SECTION 4.7 by written notice to Seller Parent. Seller Parent and its Affiliates
may terminate the TransMontaigne Agreement or enter into a new fuel supply
agreement which would not impose any Liability or obligation on Buyers without
the consent of or liability to Buyers or Buyer Parent. The sales price and
delivery terms for the fuel purchased by Buyers shall not differ from the sales
price and delivery terms provided to Sellers under the terms of the
TransMontaigne Agreement. Notwithstanding anything to the contrary contained
herein, if TransMontaigne does not deliver the fuel to Buyers (after Closing) in
accordance with the terms of the TransMontaigne Agreement, Buyers shall not be
required to pay Sellers for the fuel that was not delivered. Within fifteen (15)
days following the end of each calendar month (beginning after the second
calendar month following the Closing Date), Sellers shall

                                       12
<PAGE>

provide Buyer Parent with an invoice, including appropriate supporting
documentation in reasonable detail, setting forth the aggregate amount of fuel
purchased by Buyers during the previous calendar month. If there is no dispute
relating to the invoice, Buyer Parent agrees to pay each invoice received from
Sellers no later than thirty (30) days after receipt of such invoice. Buyer
Parent and Buyers acknowledge and agree that: (a) the current terms of the
TransMontaigne Agreement are acceptable to them; and (b) their sole remedy for
any violation by Seller Parent or its Affiliates of this SECTION 4.7 shall be
termination of their obligations pursuant to this SECTION 4.7.

         4.8 RECYCLING MATERIALS MARKETING. If any party to the contracts listed
on SCHEDULE 4.8 for the sale of recyclable materials refuses to consent to the
assignment or subcontracting to Buyers of such contract, Buyers agree, and Buyer
Parent agrees to cause Buyers, to sell to Sellers, if requested by Sellers, on a
pass through basis and consistent with the terms of the applicable contract, an
amount of the type and quality of recyclable materials (consistent with historic
volumes) called for by the contract during the term of such contract, including
any renewals.

                                   ARTICLE V

                        REPRESENTATIONS AND WARRANTIES OF
                            SELLERS AND SELLER PARENT

         Sellers and Seller Parent, jointly and severally, represent and warrant
to Buyers and Buyer Parent that the statements contained in this ARTICLE V: (i)
are correct and complete as of the date of this Agreement; (ii) will be correct
and complete as of the Closing Date (as though made then and as though the
Closing Date were substituted for the date of this Agreement throughout this
ARTICLE V), subject to supplements to the Disclosure Schedules as provided in
SECTION 7.8, and except for those representations and warranties that, by their
terms or nature, speak as of a specific date that is not the Closing Date; and
(iii) shall survive the Closing in accordance with SECTION 11.1. Each matter
referred to in any Disclosure Schedule shall be deemed to have been disclosed
for all relevant purposes in all other parts or sections of all other Disclosure
Schedules the subject matter of which is reasonably related to the subject
matter of the Disclosure Schedule in which disclosure is made.

         5.1 ORGANIZATION; AUTHORITY.

                  (a) Each of Sellers, the Partnership and Seller Parent is a
corporation or limited partnership duly organized, validly existing and in good
standing under the laws of the state of its formation and is duly authorized,
qualified and licensed under all Applicable Laws to carry on the Business in the
places and in the manner in which the Business is presently conducted.

                  (b) Each of Sellers and Seller Parent has all necessary power
and authority to enter into this Agreement and the Ancillary Agreements, to
consummate the Transactions and perform its obligations under this Agreement and
the Ancillary Agreements.

                  (c) The Partnership does not own or control (directly or
indirectly) any equity interest or investment in any corporation, partnership,
joint venture, association or other business organization.

                  (d) The entire general partnership interest in the Partnership
is owned by BFI Waste Systems of North America, Inc. and the entire limited
partnership interest in the Partnership is owned by Browning-Ferris Industries
of Florida, Inc., and no other equity interests of the Partnership are (or will
be as of Closing) issued and outstanding. All of the issued and outstanding
partnership interests of the

                                       13
<PAGE>

Partnership were validly issued and are fully paid, nonassessable and free of
preemptive rights and are owned beneficially and of record as set forth in this
SECTION 5.1(D). All distributions declared with respect to the partnership
interests of the Partnership have been paid or distributed.

                  (e) There are no outstanding (i) subscriptions, options,
calls, puts, contracts, commitments, understandings, restrictions, arrangements,
rights or warrants, including any right of conversion or exchange under any
outstanding security, debenture, instrument or other agreement obligating the
Partnership or any Seller to issue, deliver or sell, or cause to be issued,
delivered or sold, additional equity interests in the Partnership or obligating
the Partnership or any Seller to grant, extend or enter into any such agreement
or commitment, or (ii) obligations of the Partnership to repurchase, redeem or
otherwise acquire any securities referred to in clause (i) above. There are no
voting trusts, proxies or other agreements or understandings to which the
Partnership is a party or is bound with respect to the voting of any of the
partnership interests of the Partnership.

         5.2 BINDING EFFECT. The execution, delivery and performance of this
Agreement and the Ancillary Agreements by Sellers and Seller Parent are within
their respective corporate powers and have been approved by all requisite action
of Sellers and Seller Parent, and no other proceedings on the part of Sellers
and Seller Parent are necessary to authorize the execution and delivery of this
Agreement and the Ancillary Agreements or the consummation by Sellers and Seller
Parent of the Transactions and the performance of their obligations under this
Agreement and the Ancillary Agreements. This Agreement has been, and upon
delivery, the Ancillary Agreements will be, duly executed and delivered by each
of Sellers and Seller Parent and, assuming the due authorization, execution and
delivery hereof by Buyers, Buyer Parent and Capital, constitutes and will
constitute the valid and legally binding agreement of Sellers and Seller Parent
enforceable against Sellers and Seller Parent in accordance with their
respective terms.

         5.3 PERMITS. Sellers and the Partnership have all Permits necessary in
order to enable them to own the Assets and conduct the Business as currently
conducted. Except as set forth on SCHEDULE 5.3, to the best of Sellers'
knowledge, Sellers and the Partnership are and have been in compliance with the
terms and conditions of all Permits and all of the Permits are now valid, in
good standing and in full force and effect. Sellers shall not undertake,
following the Closing, any challenges to the Permits or applications for
Permits.

         5.4 ASSETS; PERSONAL PROPERTY.

                  (a) The Assets constitute all real, personal, tangible and
intangible property and assets (i) presently used in the Business or (ii)
necessary for the conduct of the Business as such business has been heretofore
conducted. Except as set forth on SCHEDULE 5.4, there are no existing options or
rights of first refusal granted by Sellers, the Partnership or Seller Parent to
any Person to acquire any of the Assets or the Business and there are no
outstanding governmental orders that would give any Person any such option or
right.

                  (b) No Affiliates of Seller Parent other than Sellers and the
Partnership are presently engaged in business activities in the Counties
described in SECTION 13.3.

                  (c) Each piece of Equipment is being transferred to Buyers in
its "as is" condition.

                  (d) Each motor vehicle, attachment, accessory and piece of
materials handling equipment comprising the Rolling Stock is being transferred
to Buyers in its "as is" condition.

                                       14
<PAGE>

                  (e) All of the Assets are either owned by Sellers or are
leased by Sellers under an agreement set forth on SCHEDULE 5.4(E) (the "ASSUMED
LEASES"). Each Assumed Lease is in full force and effect. No default by Sellers
or, to the best of Sellers' knowledge, any other party to any Assumed Lease,
exists.

                  (f) At the Closing, Sellers shall have good and marketable
title to the owned Assets and valid leasehold interests in the leased Assets,
free and clear of all Encumbrances other than Permitted Exceptions. By virtue of
the grant, conveyance, sale, transfer, and assignment of the Assets under the
Deeds and the Bill of Sale, Buyers shall receive good and marketable title to
the owned Assets, free and clear of all Encumbrances other than Permitted
Exceptions.

         5.5 REAL PROPERTY.

                  (a) Sellers and the Partnership have good, valid and
marketable title in fee simple to the Owned Land and valid leasehold interests
in the Leased Land, and at Closing such title and leasehold interest shall be
free of all Encumbrances, subject to the Permitted Exceptions. To the extent in
its possession or under its control, Seller Parent has delivered to Buyer Parent
copies of (i) all title policies, title commitments or any certificate of title
relating to the Owned Land, (ii) complete and legible copies of all instruments
and documents affecting title to the Owned Land and (iii) all surveys of the
Owned Land. Seller Parent and Sellers are not aware of any error in the
documents referred to in the preceding sentence delivered to Buyer Parent.

                  (b) Except as set forth on SCHEDULE 5.5(B):

                           (i) There are no Proceedings pending, or to the best
of Sellers' knowledge, threatened, which would result in a change in the
allowable uses of the Land or which would modify the right of Buyers to use the
Land for its current uses after the Closing Date.

                           (ii) Neither Sellers, nor to the best of Sellers'
knowledge, the landlords, are in default under any Real Estate Lease.

                           (iii) Each Real Estate Lease is in full force and
effect.

                           (iv) There are no tenants, licensees or parties with
a possessory right or reversionary interest with respect to the Land.

                           (v) There are no Proceedings (including condemnation
or eminent domain proceedings) pending or, to the best of Sellers' knowledge,
threatened against all or any part of the Land.

                           (vi) Seller Parent and Sellers have delivered to
Buyers true and complete copies of all Real Estate Leases.

                           (vii) Sellers, the Partnership and Seller Parent have
not received any notice of, nor to the best of Sellers' knowledge is there (A)
any violation of any applicable zoning ordinance, building code, use or
occupancy restriction, covenant, condition or restriction of record or any other
violation of applicable law relating to the Land or the improvements thereon or
(B) any pending special assessments affecting all or any part of the Land.

                                       15
<PAGE>

                           (viii) No Person has any right of first refusal,
option or the right to acquire all or any part of the Land.

                  (c) Neither Sellers nor the Partnership are "foreign persons"
as the term is defined in Section 1445 of the Code and any applicable
regulations promulgated thereunder.

         5.6 CONTRACTS.

                  (a) Listed on SCHEDULE 5.6 hereto is a complete and accurate
list of all (i) Customer Contracts that accounted for annual revenues in excess
of $200,000 during the 2002 fiscal year, (ii) Employee Contracts and (iii) all
other agreements, contracts or other instruments ("OTHER CONTRACTS") to which a
Seller, the Partnership or Seller Parent is a party and by which the Assets are
affected or bound (A) which relate to the ownership or use of real property
(including the Land), (B) which relate to the purchase or lease of any fixed
asset with respect to the Business, whether or not such purchase or lease was
made in the ordinary course of business, for an aggregate price in excess of
$125,000 in any twelve (12) month period, (C) which contain a covenant or
agreement limiting the freedom of the Business to compete in any line of
business or in any line of business in any location, or (D) which have payment
obligations (whether to or by Sellers, the Partnership or Seller Parent) in
excess of $125,000 in any twelve (12) month period, in each case as of the date
hereof, true and complete copies of which have been made available to Buyers.
The disclosure of a contract on SCHEDULE 5.6 shall not constitute a
representation that such contract satisfies one or more of the foregoing
criteria.

                  (b) Except as set forth in SCHEDULE 5.6, all Customer
Contracts, Employee Contracts and Other Contracts are in full force and effect
and are valid, binding and enforceable against the respective parties thereto in
accordance with their respective provisions, and neither Sellers nor the
Partnership, as applicable, are in default, nor has there occurred an event or
condition which with the passage of time or the giving of notice (or both) would
constitute a default by Sellers or the Partnership, with regard to the payment
or performance of any obligation under any Customer Contract, Employee Contract
or Other Contract. Seller Parent, the Partnership and Sellers have not received
any notice that any Person intends or desires to modify, waive, amend, rescind,
release, cancel or terminate any Customer Contract, Employee Contract or Other
Contract.

                  (c) To the best of Sellers' knowledge, neither the execution
and delivery of this Agreement, the consummation of the Transactions nor the
performance of the parties' respective obligations under this Agreement and the
Ancillary Agreements will have an adverse effect on any Customer Contract,
Employee Contract, Other Contract, Assumed Lease, Real Estate Lease or Permit.

         5.7 EMPLOYEES; COMPENSATION. Attached as SCHEDULE 5.7 is a complete and
accurate list of (i) all Business Employees, (ii) their rate of compensation as
of the date of delivery of the Disclosure Schedules (including a breakdown of
the portion thereof attributable to salary, bonus, and other compensation,
respectively), (iii) any bonus, incentive or compensation plans (other than
plans subject to ERISA) in which they participate, (iv) any vacation and sick
pay plans, including accruals thereunder, and (v) any severance plans,
agreements, arrangements or obligations relating to any such employee, including
any amounts owed to any such employee thereunder as of the Closing Date or
arising out of or in connection with the consummation of the Transactions or the
performance of the parties' respective obligations under this Agreement and the
Ancillary Agreements. Except (i) as otherwise contemplated by this Agreement or
the Ancillary Agreements, (ii) as set forth on SCHEDULE 5.7, and (iii) for
employees governed by Employee Contracts, each Business Employee is an employee
at will. Except as set forth on SCHEDULE 5.7, Sellers and the Partnership are in
compliance with all Applicable Laws affecting

                                       16
<PAGE>

employment and employment practices with respect to the Business, including
terms and conditions of employment and wages and hours.

         5.8 COMPLIANCE WITH LAW; NO CONFLICTS.

                  (a) Except as set forth in SCHEDULE 5.8(A): (i) to the best of
Sellers' knowledge, Sellers, the Partnership and the Business are, and at all
times since January 1, 2000 have been, in compliance with Applicable Law; (ii)
Sellers, the Partnership and Seller Parent are not involved in any litigation or
administrative proceeding relating to any of the Assets or the Business seeking
to impose fines, penalties or other liabilities or seeking injunctive relief for
violation of any Applicable Laws or Permits; (iii) Sellers, the Partnership and
Seller Parent are not aware of any investigation or other form of review
relating to Sellers, the Partnership, the Business or any of the Assets with
respect to any Applicable Law or Permit; and (iv) Sellers and the Partnership
have been issued, and have kept in force and effect, all Permits necessary to
own the Assets and operate the Business under Applicable Laws.

                  (b) Except as set forth in SCHEDULE 5.8(B), the execution,
delivery and performance of this Agreement and the Ancillary Agreements, the
consummation of the Transactions and the fulfillment of the terms of this
Agreement and the Ancillary Agreements by Sellers and Seller Parent do not and
will not:

                           (i) conflict with, or result in a breach or violation
of, the Organizational Documents;

                           (ii) conflict with, or result in a material breach
under any document, agreement or instrument to which Seller Parent or a Seller
is a party or the creation or imposition of any Encumbrance on any of the Assets
or the Business pursuant to: (A) any Applicable Law to which Seller Parent,
Sellers or any of their respective properties are subject, or (B) any judgment,
order or decree to which Seller Parent or a Seller is bound or any of their
respective property is subject; or

                           (iii) except for those notices, consents or approvals
required under the HSR Act and the Attwoods Consent Decree, and except for the
notices, consents or approvals required under the Customer Contracts and Other
Contracts required to be listed on SCHEDULE 5.6, the Permits, the Assumed Leases
and the Real Estate Leases (collectively, the "REQUIRED CONSENTS") all as set
forth on SCHEDULE 5.8(B)(III), (A) require Sellers or the Partnership to provide
notice to, or obtain the consent or approval of, any governmental authority or
agency or other third Person, (B) constitute a default under or give rise to any
right of termination, cancellation or acceleration of, or to a loss of any
benefit to which Sellers or the Partnership are entitled under such Permit,
Customer Contract, Other Contract, Assumed Lease or Real Estate Lease or (C)
result in the creation or imposition of any Encumbrance on any Asset, other than
Permitted Exceptions.

         5.9 TAXES. Except as set forth on SCHEDULE 5.9:

                  (a) Seller Parent, the Partnership and Sellers, either
separately or as members of an Affiliated Group, have completed and filed all
Tax returns required to be filed with any Tax authority, and have paid (or have
had paid on their behalf) all Taxes shown as due and payable thereon. Such Tax
returns reflect all Taxes due and payable with respect to the periods covered by
them. No Tax return filed by Sellers or the Partnership, either separately or as
a member of an Affiliated Group, for any Pre-Closing Period will result in any
Taxes or other governmental charges upon the Assets, Buyer Parent, Buyers, or
Capital whether as a transferee of the transferred assets or otherwise. There
are no

                                       17
<PAGE>

Encumbrances for Taxes on any of the Assets other than Encumbrances for Taxes
not yet due and payable.

                  (b) There is no actual pending or, to the best of Sellers'
knowledge, threatened or expected claim, audit, investigation, dispute or other
proceeding concerning any Taxes of Seller Parent or Sellers or the Partnership
that will result in a claim against any of the Assets, Buyer Parent, Buyers or
Capital.

                  Seller Parent, Sellers and the Partnership have timely
withheld and paid all Taxes required to be paid or owing with respect to any
payment to any officer, shareholder, director, current or former employee,
independent contractor or third party.

         5.10 LITIGATION. Except as set forth on SCHEDULE 5.10, (a) there are no
Proceedings pending or, to the best of Sellers' knowledge, threatened, against
Sellers, the Partnership or Seller Parent relating to any of the Assets or the
Business, at law or in equity, before any federal, state or local court or
regulatory agency, or other governmental or private authority and (b) there are
no existing orders, judgments or decrees of any governmental or private
authority affecting any of the Assets or the Business.

         5.11 FINANCIAL STATEMENTS. Sellers have provided Buyers with complete
copies of (a) the audited combined balance sheets of the Business as of December
31, 2001, and 2002, the related audited combined statements of operations and
cash flows for each of the three (3) years in the period ended December 31,
2002, and the related combined statements of district's equity at December 31,
1999, 2000, 2001 and 2002 (the "ANNUAL FINANCIAL STATEMENTS") and (b) the
unaudited balance sheet of the Business as of September 30, 2003, and the
related unaudited statements of operations and cash flows for the nine (9)
months then ended (the "INTERIM FINANCIAL STATEMENTS" and, together with the
Annual Financial Statements, the "SELLERS' FINANCIAL STATEMENTS"). The Sellers'
Financial Statements present fairly in all material respects the financial
position, results of operations, cash flows and, in the case of the Annual
Financial Statements, the changes in equity of the Business as of and for the
periods indicated. The Sellers' Financial Statements have been prepared in
accordance with GAAP.

         5.12 CONDUCT OF SELLERS' BUSINESS. Since the Balance Sheet Date, except
as disclosed on SCHEDULE 5.12 or as contemplated by this Agreement there has not
been any:

                  (a) sale or transfer of, or any agreement to sell or transfer,
any assets of the Business, or any plan, agreement or arrangement granting any
preferential right to purchase or acquire any interest in any of the assets of
the Business, or requiring consent of any Person to the transfer and assignment
of any of the assets of the Business;

                  (b) sale or transfer of any motor vehicle, attachment,
accessory or piece of materials handling equipment comprising rolling stock of
the Business from the Business to any other business operation of Seller Parent
or its Affiliates, other than in the ordinary course of business consistent with
the past practice of the Business;

                  (c) waiver of any material rights or claims of Sellers, the
Partnership or Seller Parent related to the assets of the Business;

                  (d) material breach, amendment or termination of any contract,
agreement or other instrument to which Sellers, the Partnership or Seller Parent
is a party and by which the respective assets

                                       18
<PAGE>

of Seller Parent, the Partnership or Sellers are affected or bound or loss of
any material customer of the Business;

                  (e) transaction by Seller Parent, the Partnership or Sellers
outside the ordinary course of business with respect to the assets of the
Business or the Business;

                  (f) change in the pricing and purchasing policies of Sellers,
the Partnership with respect to the Business, other than in the ordinary course
of business consistent with the past practice of the Business;

                  (g) change in the customary payment cycles for any of Sellers'
or the Partnership's payables or receivables with respect to the Business;

                  (h) change in any method of accounting or accounting policies
or policy used by Seller Parent, the Partnership or Sellers, except as required
by Applicable Law or by the Financial Accounting Standards Board;

                  (i) change in the customary methods of operation of the
Business;

                  (j) change or increase in any compensation payable to, or
benefits made available to, any Business Employees, except (i) to the extent
required by Applicable Law, or (ii) pursuant to a collective bargaining
agreement, or (iii) in the ordinary course of business consistent with past
practice; or

                  (k) action by Sellers, the Partnership Seller Parent, or any
employee, officer or agent of Sellers, the Partnership or Seller Parent
committing to do any of the foregoing.

         5.13 ENVIRONMENTAL COMPLIANCE; HAZARDOUS MATERIALS; DISPOSAL SITES.

                  (a) Except as set forth in SCHEDULE 5.13(A):

                           (i) Except in compliance with all Applicable Laws,
neither Sellers, with respect to the Business or the Assets, nor the
Partnership, have owned, leased, had an interest in, generated, transported,
stored, handled, recycled, reclaimed, disposed of, or contracted for the
disposal of, Hazardous Materials;

                           (ii) There have been no spills, leaks, deposits or
other releases into the environment or onto or under the Land of any Hazardous
Materials except in compliance with Applicable Laws; and

                           (iii) No Encumbrances with respect to environmental
liability have been imposed against Sellers, the Partnership or Seller Parent
(insofar as they relate to any of the Land or the Assets) or any of the Assets
under CERCLA, any comparable state statute or other Applicable Law.

                  (b) Except as set forth in SCHEDULE 5.13(B), none of Seller
Parent, the Partnership or Sellers has received written notice from any
governmental or regulatory authority or unaffiliated third Person alleging a
violation of or liability or potential liability arising under Environmental
Laws relating to the Business or the Assets.

                                       19
<PAGE>

                  (c) Included on SCHEDULE 5.13(C) is a complete list of the
names and addresses of all disposal sites (including Hazardous Materials
disposal sites) at any time now or in the past utilized by Sellers relating to
the Business or the Assets or the Partnership.

         5.14 CORRUPT PRACTICES. Except in compliance with all Applicable Laws,
none of Seller Parent, the Partnership or Sellers, nor any of their respective
officers, directors, employees or agents, has, directly or indirectly, ever
made, offered or agreed to offer anything of value to (a) any employees,
representatives or agents of any customers of the Business for the purpose of
attracting business or (b) any domestic governmental official, political party
or candidate for government office or any of their employees, representatives or
agents with respect to the Business or the Assets.

         5.15 ACCOUNTS RECEIVABLE. All Accounts Receivable represent, or will
represent as of Closing, valid obligations from sales actually made or services
actually performed by Sellers in the ordinary course of business, except that
the Accounts Receivable may include certain pre-billed services. No Account
Receivable is subject to a valid defense, set-off or counterclaim. The Accounts
Receivable will be collectible by Buyers in the ordinary course of business
through the use of commercially reasonable efforts, subject to the reserves
therefor included within the Net Working Capital as of the Closing, as reflected
in the Adjustment Amount.

         5.16 AFFILIATES' RELATIONSHIPS.

                  (a) SCHEDULE 5.16 contains an accurate and complete list of
all contractual arrangements between Sellers, the Partnership and their
respective Affiliates that (i) are currently in effect and (ii) relate to the
Land or the Assets.

                  (b) Since the Balance Sheet Date, and except as contemplated
by this Agreement, no Seller has transferred or otherwise disposed of any assets
of the Business to any of its Affiliates.

         5.17 PERFORMANCE BONDS; LETTERS OF CREDIT; FINANCIAL ASSURANCES. Set
forth on SCHEDULE 5.17 are all of the outstanding performance bonds, letters of
credit and other financial assurances provided by or on behalf of Sellers or the
Partnership with respect to the Land or the Assets. To the best of Sellers'
knowledge, there are no financial assurance requirements with respect to the
Assets other than those set forth on SCHEDULE 5.17.

         5.18 EMPLOYMENT AND LABOR MATTERS. Except as set forth in SCHEDULE
5.18, neither the Partnership nor, with respect to the Business, Sellers, are a
party to (a) any collective bargaining agreement, (b) any agreement respecting
the employment of any Business Employee other than the Employee Contracts, or
(c) any agreement for the provision of consulting or other professional services
which is not cancelable without penalty on less than thirty (30) days' notice.
Except as set forth in SCHEDULE 5.18, within the last five (5) years the
Business has not experienced any labor disputes, union organization attempts or
any work stoppage due to labor disagreements. Except to the extent set forth in
SCHEDULE 5.18, (a) there is no unfair labor practice charge or complaint against
the Partnership or Sellers, with respect to the Business, pending or, to the
best of Sellers' knowledge, threatened; (b) there is no labor strike, dispute,
request for representation, slowdown or stoppage actually pending or, to the
best of Sellers' knowledge, threatened against or affecting the Business nor any
secondary boycott with respect to services of the Business; (c) no question
concerning representation has been raised to the Partnership or Sellers or, to
the best of Sellers' knowledge, is threatened respecting the employees of the
Business; (d) no grievance, nor any arbitration proceedings arising out of or
under collective bargaining agreements, is pending with respect to the Business;
and (e) there are no administrative charges, court

                                       20
<PAGE>

complaints or written threatened complaints against Sellers or the Partnership
concerning alleged employment discrimination or other employment related matters
with respect to the Business pending or, to the best of Sellers' knowledge,
threatened before the U.S. Equal Employment Opportunity Commission or any other
governmental entity.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES
                       OF BUYERS, BUYER PARENT AND CAPITAL

         Buyers, Buyer Parent and Capital, jointly and severally, represent and
warrant to Sellers and Seller Parent that the statements contained in this
ARTICLE VI: (i) are correct and complete as of the date of this Agreement; (ii)
will be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement
throughout this ARTICLE VI), except for those representations and warranties
that, by their terms or nature, speak as of a specific date that is not the
Closing Date; and (iii) shall survive the Closing in accordance with SECTION
11.1.

         6.1 ORGANIZATION. Each of Buyers, Buyer Parent and Capital is duly
organized, validly existing and in good standing under the laws of the state of
its organization.

         6.2 AUTHORITY. Each of Buyers, Buyer Parent and Capital has all
necessary power and authority to enter into this Agreement and the Ancillary
Agreements and to consummate the Transactions and perform its obligations under
this Agreement and the Ancillary Agreements to which it is a party.

         6.3 NO CONFLICTS. The execution, delivery and performance of this
Agreement, the Ancillary Agreements, the consummation of the Transactions and
the fulfillment of the terms of this Agreement and the Ancillary Agreements, as
applicable, by Buyers, Buyer Parent and Capital do not and will not:

                  (a) conflict with, or result in a breach or violation of the
Articles or Certificates of Incorporation and Bylaws of Buyers, Buyer Parent or
Capital;

                  (b) conflict with, or result in a material breach under any
document, agreement or other instrument to which Buyers or Buyer Parent is a
party, or result in the creation or imposition of any Encumbrance on any
properties of Buyers or Buyer Parent pursuant to: (i) any law or regulation to
which Buyers or Buyer Parent or any of their property is subject, or (ii) any
judgment, order or decree to which Buyers or Buyer Parent is bound or any of
their property is subject; or

                  (c) except for any filings required under the HSR Act and
pursuant to the Attwoods Consent Decree, and except for the Required Consents,
require Buyers to provide notice to, or to obtain the consent or approval of,
any governmental authority or agency or any other third Person.

         6.4 BINDING EFFECT. The execution, delivery and performance of this
Agreement and the Ancillary Agreements by Buyer Parent are within its corporate
powers and have been approved by all requisite action of Buyer Parent, and no
other proceedings on the part of Buyer Parent are necessary to authorize the
execution and delivery of this Agreement and the Ancillary Agreements, the
consummation by Buyer Parent of the Transactions and the performance of its
obligations under this Agreement and the Ancillary Agreements. The execution,
delivery and performance by Buyers of this Agreement and the Ancillary
Agreements to which they are parties are within the corporate powers of

                                       21
<PAGE>

Buyers and have been approved by all requisite action of Buyers and no other
proceedings on the part of Buyers are necessary to authorize the execution and
delivery of this Agreement and each Ancillary Agreement to which Buyers are
parties. The execution, delivery and performance by Capital of this Agreement
and the Ancillary Agreements to which it is a party are within the corporate
powers of Capital and have been approved by all requisite action of Capital and
no other proceedings on the part of Capital are necessary to authorize the
execution and delivery of this Agreement and each Ancillary Agreement to which
Capital is a party. This Agreement has been, and upon delivery, the Ancillary
Agreements will be, duly executed and delivered by Buyer Parent and, assuming
the due authorization, execution and delivery hereof by Sellers and Seller
Parent, constitutes and will constitute the valid and legally binding agreement
of Buyer Parent enforceable against Buyer Parent in accordance with their
respective terms. This Agreement has been duly executed and delivered by Buyers
and each Ancillary Agreement will be, upon its delivery by Buyers that are
parties to such agreement, duly executed and delivered by Buyers and, assuming
the due authorization, execution and delivery hereof by Sellers and Seller
Parent, this Agreement constitutes and each such Ancillary Agreement will
constitute the valid and legally binding agreement of Buyers enforceable against
Buyers in accordance with their respective terms. This Agreement has been, and
upon delivery, the Ancillary Agreements to which it is a party will be, duly
executed and delivered by Capital and, assuming the due authorization, execution
and delivery hereof by Sellers and Seller Parent, constitutes and will
constitute the valid and legally binding agreement of Capital enforceable
against Capital in accordance with their respective terms.

         6.5 INDEPENDENT INVESTIGATION. Buyers, Buyer Parent and Capital
acknowledge that, except as otherwise expressly set forth in this Agreement, (i)
THE ASSETS AND THE BUSINESS ARE CONVEYED "AS IS, WHERE IS" AND "WITH ALL
FAULTS," AND (II) NEITHER SELLERS NOR SELLER PARENT HAS MADE, AND SELLERS AND
SELLER PARENT HEREBY EXPRESSLY DISCLAIM AND NEGATE, ANY REPRESENTATION OR
WARRANTY, EXPRESS OR IMPLIED, OF ANY KIND OR NATURE, WHATSOEVER, RELATING TO THE
ASSETS OR THE BUSINESS (INCLUDING ANY IMPLIED OR EXPRESSED WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE). As of the date hereof,
Buyers, Buyer Parent and Capital are not aware of a breach of the
representations or warranties made by Sellers and Seller Parent in ARTICLE V.

                                  ARTICLE VII

                                    COVENANTS

         7.1 ACCESS TO LAND AND RECORDS; DUE DILIGENCE.

                  (a) Between the date of this Agreement and the Closing or the
earlier termination of this Agreement, Sellers shall, and Seller Parent shall
cause Sellers to, afford to or obtain for the officers and authorized
representatives of Buyers, Buyer Parent and Capital reasonable access to all of
the Land (including for the purpose of permitting Buyers, Buyer Parent and
Capital to perform or cause to be performed, at the sole risk and expense of
Buyers, Buyer Parent, Capital and their representatives, all testing,
inspections and other procedures (i) considered desirable by Buyers, Buyer
Parent, Capital and their representatives in their sole discretion or (ii)
requested by their lenders, investors and other financing sources) in their sole
discretion, Assets, sites, and the books and records of Seller Parent and
Sellers related to the Business, all upon reasonable notice and conducted at
times agreed to by Buyer Parent. Without limiting the generality of the
foregoing, Buyers and Buyer Parent shall have the right to conduct Phase I
environmental investigations and the right to conduct Phase II environmental

                                       22
<PAGE>

investigations if the results of the Phase I environmental investigations
indicate that a Phase II investigation is necessary or desirable. Sellers and
Seller Parent shall allow access to Buyers, Buyer Parent, and their consultants
for the purposes of conducting such an investigation. Such access shall be
granted in accordance with an Environmental Access Agreement substantially in
the form attached as EXHIBIT H. If any Phase I or Phase II investigation
commissioned by Buyers, Buyer Parent or Capital reveals any environmental
condition (including the presence of any Hazardous Materials) on any parcel of
Owned Land that was not presented in the internally-prepared environmental
reports prepared by Seller Parent and delivered to Buyer Parent and Buyers prior
to the date hereof, Seller Parent shall be responsible, at Buyers' request, to
promptly and fully remediate such environmental condition if and solely to the
extent that remediation of such condition is required by Applicable Law and is
required by the applicable regulatory authority (e.g., remediation shall not be
required if Seller Parent receives approval from the applicable regulatory
authority to leave such environmental condition as it is without remediation).
Such remediation, to the extent required, shall comply with Applicable Law and
shall be conducted by Persons selected by Seller Parent and reasonably
acceptable to Buyer Parent, and shall follow a remediation plan prepared by
Seller Parent and reasonably acceptable to Buyer Parent. The foregoing
obligation to remediate shall continue after the Closing, and shall include any
environmental monitoring or testing following completion of remediation. Access
for such remediation shall be granted by Buyers following the Closing in
accordance with an access agreement to be agreed upon by the parties.
Notwithstanding the foregoing, if the anticipated expense to remediate any such
parcel of Owned Land exceeds $5,000,000, Seller Parent may elect not to sell
such parcel of Owned Land by promptly notifying Buyer Parent in writing of such
decision. Such parcel of Owned Land will not be transferred hereunder and the
Purchase Price will be reduced by the value of such parcel as determined in
accordance with SECTION 3.4(B). In addition to Buyers' other rights under this
SECTION 7.1(A), Buyers may also terminate this Agreement under this SECTION
7.1(A) if Seller Parent's election not to sell such parcel of Owned Land could
reasonably be expected to result in a Material Adverse Change after giving
effect to the Purchase Price reduction pursuant to the preceding sentence.

                  (b) Between the date of this Agreement and the Closing or the
earlier termination of this Agreement, Buyers and Buyer Parent will have
reasonable access to employees of the Business designated in writing by Seller
Parent (all of whom will be district managers or higher in the organization) and
former employees designated in writing by Seller Parent who are bound by
confidentiality agreements.

                  (c) Between the date of this Agreement and the Closing or the
earlier termination of this Agreement, Seller Parent and Sellers shall furnish
Buyers with such additional financial and operating data and other information
as to the Business as Buyers may from time to time reasonably request.

                  (d) Between the date of this Agreement and the Closing or the
earlier termination of this Agreement, Seller Parent and Sellers shall use
commercially reasonable efforts to cooperate with Buyers, their representatives,
engineers, auditors and counsel in the preparation of any documents or other
materials that may be reasonably required in connection with Buyer Parent's,
Buyers' or Capital's financing of the Transactions and any documents or
materials required by any governmental agency. Seller Parent and Sellers shall,
promptly after the date hereof and from time to time hereafter (including after
the Closing Date, but only to the extent Seller Parent or Sellers retain or have
access to such information and documents): (i) provide such information and
documents to Buyer Parent concerning Seller Parent, Sellers, the Business or the
assets of the Business as may be required or appropriate for inclusion in a
proxy statement, registration statement or any other filing, notification or
report made by Buyer Parent or any of its Affiliates pursuant to Applicable Law
or in any offering memorandum,

                                       23
<PAGE>

prospectus or other offering document or bank book prepared in connection with
Buyers', Buyer Parent's or Capital's financing efforts related to the
Transactions; (ii) cause counsel and independent accountants of Seller Parent
and Sellers to cooperate with Buyer Parent, its Affiliates and its investment
bankers, counsel and independent accountants in the preparation of such filings,
notifications, reports and offering documents; and (iii) use their commercially
reasonable efforts to obtain consents and "comfort letters" from such
accountants as required in connection with such filings, notifications and
reports.

                  (e) Unless Seller Parent otherwise agrees in writing, all
access shall be coordinated with Seller Parent, and Buyers, Buyer Parent and
their agents and employees shall not enter the Land and perform inspections or
meet with employees unless accompanied by a representative of Seller Parent.
Seller Parent shall have the right to approve, or to refuse approval for,
testing which in Seller Parent's reasonable opinion would materially interfere
with the operations of the Business, prior to such testing being undertaken.

                  (f) Buyer Parent and Buyers agree to repair any damage caused
by or attributable to their exercise of their rights pursuant to this SECTION
7.1 or to Buyer Parent, Buyers or any of their agents or employees being in or
on the Land, including any damage caused by the customary drilling and boring
carried out by environmental consultants, and Buyer Parent and Buyers shall
jointly and severally indemnify and save harmless Seller Parent and Sellers from
all costs of repairing any such damage attributable to Buyer Parent's and
Buyers' exercise of their rights pursuant to this SECTION 7.1 or to Buyer
Parent, Buyers or any of their respective agents or employees being in or on the
Land. If Buyer Parent and Buyers do not perform such repairs, Seller Parent and
Sellers shall have the right to perform, or cause to be performed, such work and
to obtain reimbursement for the reasonable costs of such work (including
reasonable legal and consulting fees) from Buyer Parent and Buyers, which costs
shall be payable by Buyer Parent and Buyers to Sellers upon demand. The
provisions of this paragraph of this SECTION 7.1 shall survive the termination
of this Agreement.

         7.2 ACTIVITIES OF SELLERS PRIOR TO CLOSING. Between the date of this
Agreement and the Closing or the earlier termination of this Agreement, Sellers
shall, and Seller Parent shall cause Sellers and the Partnership to:

                  (a) carry on the Business in the ordinary and usual course
consistent with past practice;

                  (b) maintain the Assets in as good working order and condition
as at present, ordinary wear and tear excepted;

                  (c) use commercially reasonable efforts to maintain their
relationships with suppliers, customers, consultants, employees, independent
contractors, government agencies, communities and others having business
relations with Sellers in the operation of the Business, and promptly notify
Buyers of the loss of any customer or group of customers material to the
Business;

                  (d) provide unaudited balance sheets and the related unaudited
statements of operations for each month between the date hereof and the Closing;
and

                  (e) provide all commercially reasonable assistance to Buyers
to provide for an orderly transfer of the Assets and the Business from Sellers
to Buyers.

                                       24
<PAGE>

         7.3 PROHIBITED ACTIVITIES PRIOR TO CLOSING. Between the date of this
Agreement and the Closing or earlier termination of this Agreement, except as
contemplated by this Agreement, Seller Parent shall not (as its relates to the
Business) and shall cause Sellers and the Partnership not to, without the prior
written consent of Buyers, which consent will not be unreasonably withheld:

                  (a) change their pricing and purchasing policies, other than
in the ordinary course of business consistent with the past practice of the
Business;

                  (b) shorten or lengthen the customary payment cycles for any
of their payables or receivables;

                  (c) engage in any practice, take any action, fail to take any
action or enter into any transaction which could cause any representation or
warranty of Seller Parent or Sellers in this Agreement to be untrue or result in
a breach of any covenant made by Seller Parent or Sellers in this Agreement;

                  (d) make any change in any method of accounting or accounting
policies or policy used by Seller Parent or Sellers, except as required by
Applicable Law or by the Financial Accounting Standards Board;

                  (e) make any changes in the customary methods of operation of
the Business;

                  (f) breach, amend or terminate any Real Estate Lease, other
Assumed Lease, Permit, Customer Contract, Employee Contract or Other Contract;

                  (g) enter into any transaction outside the ordinary course of
the business of Sellers or otherwise prohibited hereunder;

                  (h) sell, transfer, lease or otherwise dispose of any Assets
other than in the ordinary course of business;

                  (i) sell or transfer any motor vehicle, attachment, accessory
or piece of materials handling equipment comprising the Rolling Stock from the
Business to any other business operation of Seller Parent or its Affiliates,
other than in the ordinary course of business consistent with the past practice
of the Business;

                  (j) except for the Encumbrance of real property Taxes, cause,
permit or suffer to exist any Encumbrance, covenant, condition, restriction,
assessment, easement, right of way, obligation, encroachment or liability
("TITLE DEFECT") whatsoever with respect to the Land;

                  (k) change or increase any compensation payable to, or
benefits made available to, any Business Employees, except (i) to the extent
required by law, or (ii) pursuant to a collective bargaining agreement in effect
on the date hereof, or (iii) in the ordinary course of business consistent with
past practice;

                  (l) relinquish, or seek to modify or amend any substantive
term of, any Permit; or

                  (m) agree to do any of the foregoing.

                                       25
<PAGE>

         7.4 CONTACT WITH GOVERNMENT OFFICIALS AND CUSTOMERS. Sellers and Seller
Parent shall use their commercially reasonable efforts to cooperate with Buyers
in making contact with (a) the appropriate governmental agencies and officials
having information about or jurisdiction over Sellers, the Partnership, Seller
Parent, the Business, the Land, Assets or obligations or rights of Sellers,
including environmental and land use agencies and officials, in order to assist
Buyers in completing their regulatory evaluation of the Business and the Assets
and securing any consents necessary to transfer the Permits or in securing new
permits; and (b) the customers under the Customer Contracts, in order to secure
any consents necessary to transfer the Customer Contracts to Buyers as
contemplated by this Agreement. Buyers and Sellers shall use commercially
reasonable efforts to obtain before Closing all consents necessary to transfer
the Permits (or Buyers will use commercially reasonable efforts to obtain new
permits for any non-transferable Permits), the Customer Contracts, the Real
Estate Leases and the other Assumed Leases to Buyers at the Closing.

         7.5 PUBLIC ANNOUNCEMENTS. Except as otherwise required by law or the
rules of the New York Stock Exchange or The Nasdaq Stock Market, the parties
agree that no press release or other written communication shall be issued by
Sellers or Seller Parent, on the one hand, or Buyers, Buyer Parent or Capital,
on the other hand, containing information regarding the other party, this
Agreement or the Transactions (including the fact that the Transactions are
being discussed or the terms of the Transactions) without the prior written
approval of both Seller Parent and Buyer Parent, which approval may not be
unreasonably withheld; provided, however, that Buyer Parent, Buyers and Capital
shall be entitled to disclose information regarding this Agreement or the
Transactions to prospective lenders, purchasers of debt securities and investors
and their counsel without the approval of Sellers or Seller Parent. The parties
shall consult with each other concerning the means by which Sellers' employees,
customers and suppliers and others having dealings with Sellers will be informed
of the Transactions.

         7.6 HSR APPROVAL AND ATTWOODS NOTICES. Seller Parent and Sellers
undertake and agree to file by no later than 4:00 p.m. Eastern Standard Time on
November 14, 2003, all documents required under the Attwoods Consent Decree.
Buyer Parent, Buyers, Seller Parent and Sellers undertake and agree to file by
no later than 4:00 p.m. Eastern Standard Time on November 19, 2003, all
documents required under the HSR Act. Buyer Parent and Buyers shall pay all HSR
Act filing fees. Buyer Parent, Buyers, Seller Parent and Sellers shall use
commercially reasonable efforts to cooperate with each other with respect to
such filings, and shall respond as promptly as reasonably practicable to any
inquiries received from the FTC or the Antitrust Division for additional
information or documentation and to all inquiries and requests received from any
other local, state or federal governmental authority in connection therewith.
Buyer Parent and Buyers shall use commercially reasonable efforts to avoid or
eliminate impediments under any antitrust, competition, or trade regulation law
that may be asserted by the FTC, the Antitrust Division or any other local,
state or federal governmental authority with respect to the Transactions so as
to enable the Closing Date to occur prior to the Termination Date, including by
selling, divesting or otherwise disposing of, or agreeing to sell, divest or
otherwise dispose of, any assets or businesses necessary to secure HSR Act and
other antitrust law approval, unless the FTC or Antitrust Division or other
local, state or federal governmental authority completely blocks the
Transactions. Notwithstanding anything in this Agreement to the contrary, Buyer
Parent, Buyers and Capital shall not be required to sell, divest or otherwise
dispose of, or agree to sell, divest or otherwise dispose of, any assets or
businesses with aggregate 2002 revenues in excess of ten percent (10%) of the
aggregate 2002 revenues of the Business in order to avoid or eliminate
impediments under any antitrust, competition, or trade regulation law that may
be asserted by the FTC, the Antitrust Division or any other local, state or
federal governmental authority with respect to the Transactions in order to
enable the Closing Date to occur prior to the Termination Date. Each party shall
(a) subject to Applicable Laws, promptly notify

                                       26
<PAGE>

the other party of any written communication to that party from the FTC, the
Antitrust Division or any other governmental entity relating to this Agreement
and, subject to Applicable Law, permit the other party to review in advance any
proposed written communication to any of the foregoing relating to this
Agreement; (b) to the extent permitted by Applicable Laws, not agree to
participate in any substantive meeting or discussion with any governmental
authority in respect of any filings, investigation or inquiry concerning this
Agreement or the Transactions unless it consults with the other party in advance
and, to the extent permitted by such governmental authority, gives the other
party the opportunity to attend and participate thereat; and (c) to the extent
permitted by Applicable Laws, furnish the other party with copies of all
correspondence, filings, and communications between them and their Affiliates
and their respective representatives on the one hand, and any government or
regulatory authority or members or their respective staffs on the other hand,
with respect to this Agreement and the Transactions. If a party shall have
complied with all of its obligations under this SECTION 7.6, but there is no
action that such party can undertake or offer to undertake in compliance with,
and subject to, this Section that would eliminate the impediment asserted by the
FTC, the Antitrust Division or other governmental authority or any order in any
suit or Proceeding, in order for the Closing Date to occur prior to the
Termination Date, assuming all conditions other than those relating to such
impediment or order have been satisfied or waived, then such party shall not be
deemed to have breached its obligations under this SECTION 7.6.

         7.7 STANDSTILL AGREEMENT. Unless and until this Agreement is terminated
pursuant to ARTICLE XII without the Closing having taken place, Sellers and
Seller Parent will not directly or indirectly (through a representative, agent,
employee or otherwise) solicit or accept offers for any of the Assets or the
Business or for a merger, stock sale, consolidation or other business
combination involving any of the Assets or the Business, or respond to inquiries
from, provide or share information with, negotiate with or in any way facilitate
inquiries or offers from, third parties who express or who have heretofore
expressed an interest in acquiring any of the Assets or the Business by merger,
stock sale, consolidation or other business combination, nor will Seller Parent
permit Sellers to do any of the foregoing.

         7.8 SUPPLEMENTS TO SELLERS' SCHEDULES. From time to time prior to the
date which is two (2) Business Days prior to the Closing, Sellers shall
supplement and update Sellers' Disclosure Schedules delivered pursuant to this
Agreement with respect to any matter hereafter arising which, if existing or
occurring on the date of this Agreement, would have been required to have been
set forth on such Schedules hereto. No supplement or update of a Schedule made
pursuant to this SECTION 7.8 that discloses material, adverse information shall
be deemed to cure any breach of, affect or otherwise diminish any representation
and warranty made in this Agreement unless Buyer Parent specifically agrees
thereto in writing.

         Any supplement or update of a Schedule that discloses immaterial or
non-adverse information shall not constitute a breach of any representation or
warranty made in this Agreement and shall be deemed accepted by Buyers.

         7.9 COMMERCIALLY REASONABLE EFFORTS. Upon the terms and subject to the
conditions of this Agreement, the parties shall each use commercially reasonable
efforts to take, or cause to be taken, all actions, and to do, or cause to be
done, all things necessary, proper or advisable to consummate and make effective
the transactions contemplated by this Agreement.

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                                  ARTICLE VIII

                     CONDITIONS PRECEDENT TO OBLIGATIONS OF
                            SELLER PARENT AND SELLERS

         The obligations of Seller Parent and Sellers to consummate the
Transactions are subject to the completion, satisfaction, or at their option,
waiver, on or prior to the Closing Date, of each of the following conditions.

         8.1 REPRESENTATIONS AND WARRANTIES. The representations and warranties
of Buyers, Buyer Parent and Capital contained in this Agreement shall have been
true and correct in all material respects on and as of the date made and shall
be true and correct in all material respects on and as of the Closing Date with
the same effect as though such representations and warranties had been made on
and as of such date. Buyers, Buyer Parent and Capital shall have delivered to
Sellers a certificate of a duly authorized officer to the foregoing effect.

         8.2 COVENANTS. Each and all of the terms, covenants and conditions of
this Agreement to be complied with and performed by Buyers and Buyer Parent on
or before the Closing Date shall have been duly complied with and performed in
all material respects. Buyers and Buyer Parent shall have delivered to Sellers a
certificate of a duly authorized officer to the foregoing effect.

         8.3 NO LEGAL PROHIBITION. No injunction or order shall be in effect
prohibiting consummation of the Transactions or which would make the
consummation of the Transactions unlawful.

         8.4 NO ADVERSE PROCEEDING. No Proceeding shall have been instituted and
be pending before a court or any other governmental agency or body which seeks
to restrain or prohibit any of the Transactions; provided, however, that the
provisions of this SECTION 8.4 shall not apply if Seller Parent or a Seller has
directly or indirectly solicited or encouraged any such Proceeding.

         8.5 DELIVERIES. Buyer Parent and Buyers shall be prepared to make or
cause to be made the deliveries described in SECTIONS 3.3.

         8.6 HSR ACT. The waiting period (and any extension thereof) under the
HSR Act applicable to the Transactions shall have expired or been earlier
terminated by the FTC or the Antitrust Division.

                                   ARTICLE IX

                       CONDITIONS PRECEDENT TO OBLIGATIONS
                       OF BUYERS, BUYER PARENT AND CAPITAL

         The obligations of Buyers, Buyer Parent and Capital to consummate the
Transactions are subject to the completion, satisfaction or, at their option,
waiver, on or prior to the Closing Date, of each of the following conditions.

         9.1 REPRESENTATIONS AND WARRANTIES. The representations and warranties
of Sellers and Seller Parent contained in this Agreement shall have been true
and correct in all material respects on and as of the date made and shall be
true and correct in all material respects on and as of the Closing Date with the
same effect as though such representations and warranties had been made on and
as of such date. Sellers and Seller Parent shall have delivered to Buyers a
certificate of a duly authorized officer to the foregoing effect.

                                       28
<PAGE>

         9.2 COVENANTS. Each and all of the terms, covenants and conditions of
this Agreement to be complied with and performed by Sellers and Seller Parent on
or before the Closing Date shall have been duly complied with and performed in
all material respects. Sellers and Seller Parent shall have delivered to Buyers
a certificate of a duly authorized officer to the foregoing effect.

         9.3 NO LEGAL PROHIBITION. No injunction or order shall be in effect
prohibiting consummation of the Transactions or which would make the
consummation of the Transactions unlawful.

         9.4 NO ADVERSE PROCEEDING. No Proceeding shall have been instituted and
be pending before a court or any other governmental agency or body which seeks
to restrain or prohibit any of the Transactions; PROVIDED, HOWEVER, that the
provisions of this SECTION 9.4 shall not apply if Buyer Parent or Buyers has
directly or indirectly solicited or encouraged any such Proceeding.

         9.5 DELIVERIES. Sellers and Seller Parent shall be prepared to make or
cause to be made the deliveries described in SECTION 3.2.

         9.6 HSR ACT. The waiting period (and any extension thereof) under the
HSR Act applicable to the Transactions shall have expired or been earlier
terminated by the FTC or the Antitrust Division.

         9.7 CONSENTS AND APPROVALS. Buyers shall have received the Required
Consents. Notwithstanding the foregoing, (i) the condition set forth in this
SECTION 9.7 shall not apply with respect to the Required Consents for Permits if
the relevant Permit authority approves a management or operating agreement
reasonably acceptable to Sellers and Buyers allowing the Transactions to close
without transfer or reissuance of a Permit having been completed, and (ii) with
respect to Customer Contracts, Required Consents need only be obtained for those
Customer Contracts identified on EXHIBIT I; provided that if any Required
Consent for any Permit or Customer Contract set forth on EXHIBIT I is not
obtained by the time that the other conditions to Closing have been satisfied or
are waived, and the parties are not permitted to enter into a management or
operating agreement as contemplated by clause (i) of this SECTION 9.7 or a
subcontractor or other relationship as contemplated by SECTION 1.3 (a
"MANAGEMENT ARRANGEMENT"), then:

                  (a) with respect to Assets of the Business other than those
relating to the Jacksonville Division (as defined on EXHIBIT I):

                           (1) the Closing shall nevertheless occur, the Permit
or Customer Contract and related Assets (other than the related Land (as
identified on EXHIBITS B-1 and B-2), which shall be transferred at the Closing)
and Business Employees for which the Required Consent was not obtained shall be
withheld from the Closing, and the Purchase Price shall be adjusted by the
amount identified on EXHIBIT I for each Required Consent not obtained; and

                           (2) with respect to any Permits, Customer Contracts
and related Assets that are withheld from the Closing pursuant to subsection
(a)(1) above, the relevant Permits, Customer Contract and Assets shall be
transferred to Buyers, the Business Employees will be employed by Buyers, and
the withheld Purchase Price shall be paid by Buyers to Sellers, promptly
following the receipt of the Required Consent or the execution by Buyers and
Sellers of an agreement for a Management Arrangement; and

                  (b) with respect to the Assets of the Business relating to the
Jacksonville Division (including all related Land (as identified on EXHIBITS B-1
and B-2) (the "JACKSONVILLE LAND")):

                                       29
<PAGE>

                           (1) the Closing with respect thereto shall not occur
until such time as Required Consents for the Jacksonville Division Permits and
Customer Contracts set forth on EXHIBIT I representing an aggregate of at least
$3,276,000 of the aggregate Purchase Price Adjustment Amount shown on EXHIBIT I
have either (x) been obtained or (y) an agreement for a Management Arrangement
relating thereto shall have been executed (the "JACKSONVILLE CONDITION"). If the
Closing with respect to the Assets of the Jacksonville Division is delayed in
accordance with this clause (b)(1), the Purchase Price payable at the Closing
shall be reduced by $27,789,000;

                           (2) following the satisfaction of the Jacksonville
Condition, (x) the Jacksonville Land and (y) those Permits, Customer Contracts
and related Assets and Business Employees for which the Required Consent was
obtained or with respect to which an agreement for a Management Arrangement
shall have been executed shall be promptly transferred to Buyers, the relevant
Business Employees will be employed by Buyers, and an amount equal to the excess
of (I) $27,789,000 over (II) the aggregate Purchase Price identified on EXHIBIT
I relating to those Permits, Customer Contracts and related Assets and Business
Employees for which the Required Consent has not yet been obtained or an
agreement for a Management Arrangement has not yet been executed shall be paid
by Buyers to Sellers; and

                           (3) all remaining Permits, Customer Contracts and
related Assets and Business Employees for which the Required Consent shall not
have been obtained or an agreement for a Management Arrangement shall not have
been executed shall be transferred to Buyers, the related Business Employees
will be employed by Buyers, and the withheld Purchase Price relating thereto
shall be paid by Buyers to Sellers promptly following the receipt of the
Required Consent or the execution by Buyers and Sellers of an agreement for a
Management Arrangement.

No consent or approval (a) shall be conditioned on the cancellation or
termination of, or any material adverse modification to, any Permit, Real Estate
Lease, Assumed Lease, Customer Contract, Employee Contract and Other Contract or
(b) shall impose on Buyers or any of their Affiliates any condition, provision
or requirement with respect to the Business or its operations that is materially
more restrictive, or materially more expensive to comply with, than the
conditions imposed upon such operation prior to the Closing.

         9.8 NO MATERIAL ADVERSE CHANGE. No Material Adverse Change shall have
occurred since December 31, 2002; provided, however, that nothing disclosed in
the Disclosure Schedules (without giving effect to any supplements or updates
made by Sellers after the date hereof) or the Sellers' Financial Statements,
individually or in the aggregate, shall be deemed to be a Material Adverse
Change.

         9.9 FINANCING. Buyers, Buyer Parent and Capital shall have received the
proceeds of a financing, in an amount and on terms reasonably acceptable to
Buyer Parent, sufficient to enable Buyers to consummate the Transactions.

                                   ARTICLE X

                           LIABILITIES AND OBLIGATIONS

         10.1 EXCLUDED LIABILITIES. Except as explicitly set forth in SECTION
10.2, neither Buyer Parent nor Buyers shall, by the execution and performance of
this Agreement or otherwise (including by acquisition of the partnership
interests in the Partnership or under theories of successor liability),

                                       30
<PAGE>

assume, become directly or indirectly responsible for or incur, and Seller
Parent and Sellers, jointly and severally, hereby expressly agree to pay and
perform, all liabilities and obligations of any kind, character or description,
whether known or unknown, absolute or contingent, accrued or unaccrued,
liquidated or unliquidated, secured or unsecured, joint or several, due or to
become due, vested or unvested, executory, determined, determinable or otherwise
(each, a "LIABILITY") of Sellers, Seller Parent or the Partnership arising out
of or relating to actions or omissions occurring or conditions existing on or
prior to the Closing Date, including those matters disclosed in SCHEDULES
5.13(A), 5.13(B) AND 5.13(C) (collectively, the "EXCLUDED LIABILITIES")
including any Liability of Sellers to Seller Parent, any other Sellers or any
other Affiliate of Seller Parent.

         10.2 ASSUMPTION OF OBLIGATIONS. Subject to the terms and conditions set
forth herein, at the Closing Buyers shall assume from Sellers only the
Liabilities described in the remainder of this SECTION 10.2 (the "ASSUMED
LIABILITIES"):

                  (a) Buyers shall assume and perform, and Buyer Parent shall
cause Buyers to assume and perform, all obligations under the Customer
Contracts, Employee Contracts, Other Contracts, Assumed Leases, Permits, Real
Estate Leases and other contracts included within the Assets, to the extent such
obligations first accrue and are required to be performed subsequent to the
completion of the Closing (provided that such obligations do not arise as a
result of a breach by Sellers thereof on or prior to Closing).

                  (b) Buyers shall assume and perform, and Buyer Parent shall
cause Buyers to assume and perform, at the Closing all closure/post-closure
obligations with respect to the Assets (including those set forth on SCHEDULE
5.17), and, subject to SECTION 10.2(C), to provide all required financial
responsibility/assurance related thereto, enabling Sellers to gain release of
financial responsibility/assurance they have posted.

                  (c) Buyers shall, and Buyer Parent shall cause Buyers to, use
commercially reasonable efforts to replace performance bonds and letters of
credit with respect to the Assets set forth on SCHEDULE 5.17 and post substitute
financial assurances as required under environmental Permits within thirty (30)
days after the Closing. Buyers shall, and Buyer Parent shall cause Buyers to,
pay Sellers interest at the rate of nine and one-half percent (9.5%) per annum
on un-replaced or un-substituted instruments from the 31st day after the Closing
until they are replaced or substituted.

                  (d) Buyers agree to assume and perform, and Buyer Parent
agrees to cause Buyers to assume and perform, (i) the direct costs of relocation
of a possible overfill at Nassau Landfill existing as of the date of this
Agreement, (ii) the direct costs of any additional capping required at Nassau
Landfill after the Closing Date, (iii) the direct costs of additional cell
development at Jones Road Landfill after the Closing Date, and (iv) all other
Liabilities which Buyer Parent designates in writing prior to the Closing and
which Sellers agree to assume.

                                   ARTICLE XI

                                 INDEMNIFICATION

         11.1 SURVIVAL OF REPRESENTATIONS AND WARRANTIES AND COVENANTS.

                  (a) The representations and warranties contained in this
Agreement and the liabilities and obligations of the parties with respect
thereto shall survive the Closing hereunder as follows:

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<PAGE>

                           (i) the representations and warranties in SECTIONS
5.6(C), 5.10, 5.12(A) AND 5.15 shall survive the Closing for a period of six (6)
months after the Closing Date;

                           (ii) the representations and warranties in SECTIONS
5.5(B)-(C), 5.6(A)-(B), 5.7, 5.11, 5.17 AND 5.18 shall survive the Closing for a
period of fifteen (15) months after the Closing Date;

                           (iii) the representations and warranties in SECTIONS
5.4(B), 5.4(C), 5.4(D), 5.14, 5.16, 6.1, 6.2, 6.3 AND 6.4 shall survive the
Closing for a period of twenty-four (24) months after the Closing Date;

                           (iv) the representations and warranties in SECTIONS
5.3 AND 5.8 shall survive the Closing for a period of forty-eight (48) months
after the Closing Date;

                           (v) the representations and warranties in SECTIONS
5.9 AND 5.13 shall survive until expiration of the applicable statute of
limitations period; and

                           (vi) the representations and warranties in SECTIONS
5.1, 5.2, 5.4(A), 5.4(E), 5.4(F), 5.5(A) 5.12(B), AND 6.5 shall survive the
Closing for a period of eighty four (84) months after the Closing Date;

provided that the foregoing shall not limit an indemnification claim alleging
fraud by a party to this Agreement or its Affiliates.

                  (b) The covenants and agreements set forth in this Agreement
(including the covenants and agreements set forth in SECTIONS 10.1 and 10.2 and
the indemnification obligations set forth in SECTION 7.1, SECTION 11.2, SECTION
11.3 and SECTION 15.5) shall survive the Closing without limitation.

         11.2 INDEMNIFICATION BY SELLER PARENT AND SELLERS. Sellers and Seller
Parent agree that they shall, jointly and severally, indemnify, defend (as to
Third Party Claims only), protect and hold harmless Buyer Parent, Buyers, and,
after the Closing, the Partnership, their respective officers, shareholders,
directors, divisions, subdivisions, Affiliates, subsidiaries, parent, agents,
employees, successors and assigns at all times from and after the Closing Date
from and against all Liabilities, claims, damages, actions, suits, Proceedings,
demands, assessments, adjustments, penalties, losses, costs and expenses
whatsoever (including court costs, reasonable attorneys' and expert witness fees
and expenses and expenses of investigation) (collectively, "DAMAGES") whether
equitable or legal, matured or contingent, known or unknown, foreseen or
unforeseen, ordinary or extraordinary, patent or latent, whether arising out of
occurrences prior to, at or after the date of this Agreement, incurred as a
result of or incident to: (a) any breach of, or misrepresentation in, the
representations and warranties by Sellers or Seller Parent set forth herein, or
in the Schedules, Exhibits, certificates, documents or agreements attached
hereto or delivered pursuant hereto by Sellers or Seller Parent; (b) breach of
any agreement or covenant on the part of Seller Parent or Sellers made in this
Agreement, or in the Schedules, Exhibits, certificates, documents or agreements
attached hereto or delivered pursuant hereto by Sellers or Seller Parent; (c)
any Excluded Liability; or (d) any Excluded Asset. Notwithstanding any other
provision set forth in this Agreement, indemnifiable claims set forth in (a)
through (d) of this SECTION 11.2 shall include any claim by a third Person that,
if true, would mean that a condition for indemnification set forth in
subsections (a) through (d) of this SECTION 11.2 had been satisfied.

                                       32
<PAGE>

         11.3 INDEMNIFICATION BY BUYERS AND BUYER PARENT. Buyers and Buyer
Parent agree that they shall, jointly and severally, indemnify, defend (as to
Third Party Claims only), protect and hold harmless Sellers and Seller Parent
and their respective officers, shareholders, directors, divisions, subdivisions,
Affiliates, subsidiaries, parent, agents, employees, successors and assigns at
all times from and after the Closing Date from and against all Damages, whether
equitable or legal, matured or contingent, known or unknown, foreseen or
unforeseen, ordinary or extraordinary, patent or latent, incurred by Sellers or
Seller Parent as a result of or incident to: (a) any breach of, or
misrepresentation in, the representations and warranties of Buyers, Buyer Parent
or Capital set forth herein, or in the Schedules, Exhibits, certificates,
documents or agreements attached hereto or delivered pursuant hereto by Buyers,
Buyer Parent or Capital; (b) breach of any agreement or covenant on the part of
Buyers, Buyer Parent or Capital made in this Agreement, or in the Schedules,
Exhibits, certificates, documents or agreements attached hereto or delivered
pursuant hereto by Buyers, Buyer Parent or Capital; or (c) any Assumed
Liability. Notwithstanding any other provision set forth in this Agreement,
indemnifiable claims set forth in (a) through (c) of this SECTION 11.3 shall
include any claim by a third Person that, if true, would mean that a condition
for indemnification set forth in subsections (a) through (c) of this SECTION
11.3 had been satisfied.

         11.4 LIMITATION ON LIABILITY. The indemnification obligations set forth
in SECTIONS 11.2(A) and 11.3(A): (a) shall apply only if a Closing occurs, and
then only after the aggregate amount of claims for indemnification from the
Indemnifying Party and its Affiliates under this Agreement exceeds $4,500,000
and thereafter the Indemnifying Party shall be liable for all indemnification
obligations above $4,500,000; and (b) shall be limited to an aggregate amount
not to exceed thirty-five percent (35%) of the Purchase Price actually paid by
Buyers, Buyer Parent and their Affiliates; PROVIDED, HOWEVER, that (x) the
foregoing limitations shall not apply to the indemnification obligations of an
Indemnifying Party in connection with an indemnification claim arising out of
(i) a breach of the representation and warranty in SECTION 5.1, 5.2, 5.4(A),
5.4(E), 5.4(F), 5.5(A) OR 5.12(B) or (ii) the fraud of the Indemnifying Party or
its Affiliates, and (y) only claims, or series of related claims, equal to or in
excess of $100,000 shall apply toward the $4,500,000 deductible.

         11.5 INDEMNIFICATION PROCEDURE BETWEEN BUYERS AND SELLERS. Upon the
occurrence of any claim for which indemnification is believed to be due
hereunder, the Indemnified Party shall provide notice of such claim to the
Indemnifying Party, stating in general terms the circumstances giving rise to
the claim, specifying the amount of the claim (or an estimate thereof) and
making a request for any payment then believed due (subject to the limitations
herein). Upon receipt of any such notice, both the Indemnified Party and the
Indemnifying Party shall use all reasonable efforts to cooperate and arrive at a
mutually acceptable resolution of such dispute within the next thirty (30) days.
If a resolution is not reached within the thirty (30) day period, either party
may commence the dispute resolution procedures set forth in ARTICLE XVI. If the
Indemnifying Party does not respond within such thirty (30) day period, the
claim for indemnification shall be deemed accepted by the Indemnifying Party. If
all or a portion of such claim amount is owed to the Indemnified Party, the
Indemnifying Party shall (subject to the terms of SECTION 11.4) within ten (10)
days of such determination, pay the Indemnified Party such amount owed in cash.

         11.6 PROCEDURE FOR INDEMNIFICATION WITH RESPECT TO THIRD-PARTY CLAIMS.

                  (a) If any third Person shall notify an Indemnified Party with
respect to any matter (a "THIRD PARTY CLAIM") that may give rise to a claim for
indemnification against an Indemnifying Party or if any party who may make a
claim for indemnification under this Agreement otherwise becomes aware of any
matter that may give rise to such a claim or wishes to make such a claim
(whether or not related

                                       33
<PAGE>

to a Third Party Claim), then the Indemnified Party shall promptly notify each
Indemnifying Party thereof in writing; provided, however, that no delay on the
part of the Indemnified Party in notifying any Indemnifying Party shall relieve
the Indemnifying Party from any obligation hereunder unless (and then solely to
the extent) the Indemnifying Party is thereby prejudiced.

                  (b) Any Indemnifying Party will have the right to assume the
defense of any claim or any litigation resulting therefrom, provided that (i)
the counsel for the Indemnifying Party who shall conduct the defense of such
claim or litigation shall be reasonably satisfactory to the Indemnified Party
and (ii) the Indemnified Party may participate in such defense at such
Indemnified Party's expense. Except with the prior written consent of the
Indemnified Party, no Indemnifying Party, in the defense of any such claim or
litigation, shall consent to entry of any judgment or order, interim or
otherwise, or enter into any settlement that provides for injunctive or other
nonmonetary relief affecting the Indemnified Party or that does not include as
an unconditional term thereof the giving by each claimant or plaintiff to such
Indemnified Party of a release from all liability with respect to such claim or
litigation. In the event that the Indemnified Party shall in good faith
determine that the conduct of the defense of any claim subject to
indemnification hereunder or any proposed settlement of any such claim by the
Indemnifying Party might be expected to affect adversely the Indemnified Party,
or that the Indemnified Party may have available to it one or more defenses or
counterclaims that are inconsistent with one or more of those that may be
available to the Indemnifying Party in respect of such claim or any litigation
relating thereto, the Indemnified Party shall have the right at all times to
take over and assume control over the defense, settlement, negotiations or
litigation relating to any such claim at the sole cost of the Indemnifying
Party, provided that if the Indemnified Party does so take over and assume
control, the Indemnified Party shall not settle such claim or litigation without
the written consent of the Indemnifying Party, such consent not to be
unreasonably withheld or delayed. In the event that the Indemnifying Party does
not accept the defense of any matter as above provided, the Indemnified Party
shall have the full right to defend against any such claim or demand and shall
be entitled to settle or agree to pay in full such claim or demand. In any
event, the Indemnifying Party and the Indemnified Party shall cooperate in the
defense of any claim or litigation subject to this ARTICLE XI and the records
and personnel of each shall be reasonably available to the other with respect to
such defense.

                                  ARTICLE XII

                            TERMINATION OF AGREEMENT

         12.1 TERMINATION BY BUYER PARENT. Buyer Parent may at any time prior to
the Closing, by written notice in the manner hereinafter provided, terminate
this Agreement in the event of a material breach by Sellers or Seller Parent (i)
of the representations and warranties of Sellers and Seller Parent or (ii) in
the observance, or in the due and timely performance of any of the covenants or
agreements contained herein on their part to be performed, which breach of
covenant or agreement shall not have been cured within fifteen (15) Business
Days following written notice thereof from Buyer Parent. In addition, Buyer
Parent, by notice in the manner hereinafter provided, may terminate this
Agreement if any of the conditions set forth in ARTICLE IX shall become
incapable of fulfillment (other than due to acts or omissions of Buyer Parent or
its Affiliates) on or before the Closing Date and shall not have been waived by
Buyers.

         12.2 TERMINATION BY SELLER PARENT. Seller Parent may at any time prior
to the Closing, by written notice in the manner hereinafter provided, terminate
this Agreement in the event of a material breach by Buyers, Buyer Parent or
Capital (i) of the representations and warranties of Buyers, Buyer Parent or
Capital or (ii) in the observance, or in the due and timely performance of any
of the covenants

                                       34
<PAGE>

or agreements contained herein on their part to be performed, which breach of
covenant or agreement shall not have been cured within fifteen (15) Business
Days following written notice thereof from Seller Parent. In addition, Seller
Parent, by notice in the manner hereinafter provided, may terminate this
Agreement if any of the conditions in ARTICLE VIII shall become incapable of
fulfillment (other than due to acts or omissions of Seller Parent or its
Affiliates) by or before the Closing Date and shall not have been waived by
Sellers.

         12.3 TERMINATION DATE. This Agreement may be terminated by Seller
Parent or Buyer Parent by notice to the other if the Transactions shall not have
been consummated by 5:00 p.m. (MST) on December 31, 2003 (other than as a result
of a breach of this Agreement by the party giving such notice or by its
Affiliates), unless such date shall be extended by the mutual written consent of
Seller Parent or Buyer Parent.

         12.4 EFFECT OF TERMINATION. If this Agreement is validly terminated
pursuant to SECTION 12.1, 12.2 or 12.3, this Agreement shall thereafter become
null and void, and there shall be no liability or obligation on the part of any
of the parties (or any other their respective officers, director, employees,
agents or other representatives or Affiliates), except that (a) the provisions
of SECTIONS 13.1, 13.2, 13.5, 15.6 and ARTICLE XVI shall survive such
termination, (b) such termination shall not relieve any party hereto of any
liability for any willful material breach of this Agreement prior to such
termination and (c) such termination shall not relieve any party hereto of its
obligations under SECTION 12.5, if applicable.

         12.5 CERTAIN CONSEQUENCES OF TERMINATION.

                  (a) If this Agreement is terminated by Seller Parent pursuant
to SECTION 12.2(I) or (II), or if this Agreement is terminated because the
condition set forth in SECTION 9.9 has not been satisfied, then Seller Parent
shall be entitled to retain the Deposit as a termination fee.

                  (b) If this Agreement is terminated by Buyer Parent pursuant
to SECTION 12.1(I) or (II), then Seller Parent shall return the Deposit to Buyer
Parent and Seller Parent shall pay Buyer Parent an amount equal to the Deposit
as a termination fee.

                  (c) If this Agreement is terminated other than in accordance
with SECTION 12.5(A) or (B), then Seller Parent shall return the Deposit to
Buyer Parent.

                  (d) The parties acknowledge that the agreements contained in
this SECTION 12.5 are an integral part of the transactions contemplated by this
Agreement. Except as provided in SECTION 12.4(B), the remedies set forth in this
SECTION 12.5 constitute the parties' sole and exclusive remedies in the event of
or with respect to a termination of this Agreement.

                                  ARTICLE XIII

                          NONDISCLOSURE; NONCOMPETITION

         13.1 NONDISCLOSURE BY SELLERS AND SELLER PARENT. Sellers and Seller
Parent recognize and acknowledge that they had in the past, currently have, and
in the future may possibly have, access to confidential information of Buyers,
Buyer Parent or Capital, including lists of customers, operational policies, and
pricing and cost policies that are valuable, special and unique assets of
Buyers, Buyer Parent or Capital and their respective businesses. Sellers and
Seller Parent each agree that they will not, except as may be required by law or
valid legal process, disclose such confidential information to any

                                       35
<PAGE>

Person for any purpose or reason whatsoever, except to authorized
representatives of Buyers, unless such information is or becomes known to the
public generally through no fault of Sellers or Seller Parent. In connection
with the foregoing, the parties acknowledge and agree that they may be
competitors in the waste collection, hauling, disposal and recycling business in
the markets serviced by Buyers, Buyer Parent and Capital, and that, except as
specifically set forth herein, this Agreement shall not be interpreted to
preclude Sellers from providing waste collection, hauling, disposal or recycling
services in such markets or elsewhere. The provisions of this SECTION 13.1 shall
apply at all times prior to the Closing Date and for a period of one (1) year
following the first to occur of (i) the Closing Date and (ii) termination of
this Agreement without a Closing having occurred.

         13.2 NONDISCLOSURE BY BUYERS AND BUYER PARENT. Buyers, Buyer Parent and
Capital recognize and acknowledge that they have in the past, currently have,
and prior to the Closing Date, will have access to confidential information of
Sellers and Seller Parent, including lists of customers, operational policies,
and pricing and cost policies that are valuable, special and unique assets of
Sellers. Buyers, Buyer Parent and Capital agree that they will not, except as
may be required by law or valid legal process, disclose such confidential
information to any Person for any purpose or reason whatsoever, prior to the
Closing Date except to authorized representatives of Sellers (including lenders,
investors and other financing sources and their respective representatives),
unless such information is or becomes known to the public generally through no
fault of Buyers or Buyer Parent. Notwithstanding the foregoing, Buyers, Buyer
Parent and Capital shall be permitted to disclose such information regarding the
Business as is determined by Buyers, Buyer Parent or Capital to be necessary or
appropriate to be disclosed in any proxy or registration statement, or any other
filing, notification or report made by Buyer Parent or any of its Affiliates
pursuant to Applicable Law or in any offering memorandum, prospectus or other
offering document or bank book prepared in connection with Buyer Parent's,
Buyers' or Capital's financing of the Transactions. In connection with the
foregoing, the parties acknowledge and agree that they may be competitors in the
waste collection, hauling, disposal and recycling business in the markets
serviced by Sellers, Seller Parent and the Business, and that nothing contained
herein shall be interpreted to preclude Buyers from providing waste collection,
hauling, disposal or recycling services in such markets or elsewhere. The
provisions of this SECTION 13.2 shall apply at all times prior to the Closing
Date and for a period of one (1) year following the first to occur of (i) the
Closing Date and (ii) termination of this Agreement without a Closing having
occurred.

         13.3 NONCOMPETITION BY SELLERS. Sellers and Seller Parent agree that
for a period of three (3) years following the Closing Date (the "RESTRICTED
PERIOD"), they shall not, and shall cause their Affiliates not to, engage or
have any interest, direct or indirect, in any business in competition with the
Business, as the Business is constituted as of the Closing Date within any
county in Florida in which the Business provided services as of the Closing
Date. Notwithstanding the foregoing, however: (A) this shall not preclude
Sellers, Seller Parent or any such Affiliate from (i) owning less than one
percent (1%) in the aggregate of the securities of any publicly traded entity or
(ii) any operations subsequently acquired in Florida (the "NEW FLORIDA
Operations") as part of their acquisition of a company with operations primarily
outside of Florida; PROVIDED that Sellers and Seller Parent shall cause the New
Florida Operations to refrain from inducing, or attempting to induce, any
customer of the Business as of the Closing Date to conduct business with such
New Florida Operations unless such customer already was a customer of the New
Florida Operations at the time Sellers, Seller Parent or such Affiliate acquired
the New Florida Operations; (B) Sellers, Seller Parent and such Affiliates shall
be permitted to service any national account within such Counties if pursuant to
the terms of the relevant national account agreement, and despite their
commercially reasonable efforts, Sellers and Seller Parent are unable to
subcontract or assign the services to Buyers and Sellers and Seller Parent are
not in violation of the

                                       36
<PAGE>

National Account Subcontract; and (C) Sellers, Seller Parent and such Affiliates
shall be permitted to service any Customer Contract withheld from the Closing
pursuant to SECTION 9.7 until such time that such Customer Contract is
transferred to Buyers or the Purchase Price applicable to such withheld Customer
Contract is paid by Buyers to Sellers, in each case pursuant to SECTION 9.7. If
Seller Parent, Sellers or any such Affiliate shall acquire any operations in
Florida within three (3) years following the Closing Date in accordance with
clause (A) above, Buyer Parent shall have a right of first refusal for a period
of two (2) years following acquisition of such operations on the following terms
(the "RIGHT OF FIRST REFUSAL"):

                  (a) RIGHT OF FIRST REFUSAL.

                           (i) GRANT OF RIGHT. If Seller Parent, Sellers or any
such Affiliate shall receive a bona fide offer for the purchase and sale of such
operations substantially as an entirety (the "OFFER"), and if the Offer is
acceptable, then Seller Parent shall give to Buyer Parent a Right of First
Refusal to purchase such operations at the price and on the terms of the Offer.
Upon receipt of an Offer, Seller Parent shall, prior to the acceptance of such
Offer, give written notice (an "OFFER NOTICE") to Buyer Parent of the Offer,
setting forth the terms and conditions of the Offer. Notwithstanding the
foregoing, however, Buyer Parent shall have no Right of First Refusal, and
Seller Parent shall not be required to give Buyer Parent an Offer Notice, with
respect to any Offer that also involves as an integral part thereof a purchase
by Seller Parent or its Affiliates of material assets from the offeror or its
Affiliates.

                           (ii) PROCEDURE. If Buyer Parent elects to acquire
such operations at the price and on the terms of the Offer, it shall so notify
Seller Parent within fifteen (15) days after receiving the Offer Notice. If
Buyer Parent fails to so notify Seller Parent within this time period, then
Buyer Parent shall be deemed to have waived and relinquished its right to
acquire the operations as to the Offer, and Seller Parent, Sellers or any such
Affiliate shall be at liberty to transfer the operations to the entity making
the Offer at the price and on terms no more favorable to the offeror than those
set forth in the Offer. If for any reason the operations are not sold to the
person or entity making the Offer, or if the terms of the Offer are changed in a
manner that is more favorable to the offeror, then this Right of First Refusal
shall be reinstated and notice of any subsequent offers or revised terms shall
be given to Buyer Parent upon the same provisions for acceptance or rejection as
provided herein.

                           (iii) TERMS OF PURCHASE. All relevant terms and
conditions of this Agreement regarding title matters, the transfer of good and
marketable title to Buyer Parent, allocation of liabilities (including
environmental liabilities), risk of loss, representations, warranties, covenants
and agreements, and survival of representations, warranties, covenants and
agreements shall apply to the transfer of the operations as if fully set forth
herein and shall be complied with by the parties as a condition to closing for
the operations. Notwithstanding the foregoing, however, the terms and conditions
of this Agreement shall be modified as necessary to give effect to the terms,
conditions and provisions of the Offer.

                  (b) ASSIGNMENT AND SUCCESSION. Buyer Parent shall not assign
the Right of First Refusal without the prior written consent of Seller Parent,
which consent may not be unreasonably withheld. Seller Parent shall not assign
this Right of First Refusal. This Right of First Refusal, and all rights and
powers granted hereby, will bind and inure to the benefit of the parties and
their respective successors and permitted assigns. Notwithstanding the
foregoing, Buyer Parent may nominate an Affiliate of Buyer Parent for the
acquisition of all or a portion of the operations under this Right of First
Refusal (a "NOMINEE"), and to be "Buyer Parent" under this Right of First
Refusal, in which case all references in this SECTION 13.3 to "Buyer Parent"
shall mean and refer to such Nominee, and Seller Parent may nominate an
Affiliate of Seller Parent for the sale of all or a portion of the operations
under

                                       37
<PAGE>

this Right of First Refusal (a "SELLER NOMINEE"), and to be "Seller Parent"
under this Right of First Refusal, in which case all references in this SECTION
13.3 to "Seller Parent" shall mean and refer to such Sellers Nominee.

                  (c) NO RECORDING. Except as may be required by Applicable Law,
(a) this Right of First Refusal shall be maintained as confidential by the
parties and (b) no documents evidencing this Right of First Refusal will be
recorded or otherwise made public by the parties.

         13.4 CONFIDENTIAL INFORMATION. Neither Seller Parent nor Sellers (nor
any of their respective Affiliates) shall at any time subsequent to the Closing,
except as explicitly requested by Buyers or as otherwise provided in this
Agreement, use for any purpose, disclose to any Person, or keep or make copies
of any records and files containing, any confidential information relating
primarily to the Business, the Assets or the Assumed Liabilities, all such
information being deemed to be transferred to Buyers hereunder. For purposes
hereof, "CONFIDENTIAL INFORMATION" shall mean information relating primarily to
the Business, the Assets or the Assumed Liabilities, including all customer and
vendor lists and related information, all information concerning the Business'
processes, products, costs, prices, sales, marketing and distribution methods,
properties and assets, Assumed Liabilities, and other information not previously
disclosed to the public directly by Seller Parent or Sellers. The foregoing
provisions shall not apply to any information which is or relates primarily to
an Excluded Asset or which is or relates primarily to the Excluded Liabilities,
or which relates to Tax matters. Confidential information that relates to both
Assumed Liabilities and Excluded Liabilities shall be maintained in duplicate by
both Sellers and Buyers. If at any time after the Closing, Seller Parent or
Sellers should discover that it is in possession of any records and files
containing the confidential information of Buyers, then the party making such
discovery shall immediately turn such records and files over to Buyers, which
shall upon request make available to the surrendering party any information
contained therein which is not confidential information. Seller Parent and
Sellers agree that they will not assert a waiver of loss of confidential or
privileged status of the information based upon such possession or discovery.

         13.5 EQUITABLE RELIEF FOR VIOLATIONS. The parties expressly covenant
and agree that if any of them violates, or overtly threatens to violate, the
Restrictive Covenants, the non-violating party shall be entitled to an
accounting and repayment of all profits, compensation, commissions,
remuneration, or benefits which the violating party, directly or indirectly,
realized and/or may realize as the result of, arising out of, or in connection
with any such violation or threatened violation. The parties acknowledge further
that an irreparable injury may result to the non-violating party and its
Business in the event of a breach by the violating party of the Restrictive
Covenants. The parties also acknowledge and agree that the damages or injuries
that a non-violating party sustains as a result of a breach by a violating party
of the Restrictive Covenants are difficult to ascertain and money damages alone
may not be an adequate remedy to a non-violating party. The parties therefore
expressly agree that if a controversy arises concerning the rights or
obligations of a party under the Restrictive Covenants, such rights or
obligations shall be enforceable by a court decree of specific performance and a
non-violating party shall also be entitled to any injunctive relief from the
court pursuant to ARTICLE XVI necessary to prevent or restrain any violation of
the Restrictive Covenants. Such relief shall be granted without the necessity of
a showing of irreparable harm and without the posting of a bond or other
security. Such relief, however, shall be cumulative and non-exclusive and shall
be in addition to any other remedy to which the parties may be entitled in
accordance with this Agreement.

         13.6 EXCEPTION FOR CERTAIN TAX DISCLOSURES. Further and notwithstanding
anything herein to the contrary, except as reasonably necessary to comply with
applicable securities laws, each party (and

                                       38
<PAGE>

each Affiliate, officer, employee, director, advisor, representative, or other
agent of such party) is, and has been from commencement of discussions
concerning the Transactions, permitted to (a) disclose to any and all Persons,
without limitation of any kind, the U.S. federal income tax treatment and tax
structure of the Transactions and all materials of any kind (including opinions
or other tax analyses) that are provided to such party relating to such tax
treatment and tax structure, and (b) consult any tax advisor regarding the U.S.
federal income tax treatment or tax structure of the Transactions. For this
purpose, "tax structure" is limited to any fact that may be relevant to the
understanding of the purported or claimed U.S. federal income tax treatment of
the Transactions, and "tax treatment" means the purported or claimed U.S.
federal income tax treatment of the Transactions. Neither of such terms includes
information relating to the identity of the parties.

                                  ARTICLE XIV

                                   TAX MATTERS

         14.1 TRANSACTION TAXES. Buyers and Buyer Parent shall pay all transfer
and conveyance Taxes attributable to the Transactions, including Taxes payable
in connection with the registration of Rolling Stock.

                                   ARTICLE XV

                                     GENERAL

         15.1 GUARANTIES.

                  (a) Buyer Parent hereby unconditionally and absolutely
guarantees to Seller Parent and Sellers the prompt and full payment and
performance of all covenants, agreements and other obligations of Buyers under
this Agreement and the Ancillary Agreements, including payment of the Purchase
Price and all of Buyers' indemnification obligations pursuant to ARTICLE XI. The
foregoing guaranty shall be direct, absolute, irrevocable and unconditional and
shall not be impaired irrespective of any modification, release, supplement,
extension or other change in the terms of all or any of the obligations of
Buyers under this Agreement or the Ancillary Agreements or for any other reason
whatsoever. Buyer Parent hereby waives any requirement of promptness, diligence
or notice with respect to the foregoing guaranty and any requirement that the
Seller Parent or Sellers exhaust any right or take any action against Buyers in
respect of any of their obligations hereunder.

                  (b) Capital hereby unconditionally and absolutely guarantees
to Seller Parent and Sellers the prompt and full payment and performance of all
covenants, agreements and other obligations of Buyer Parent and Buyers under
this Agreement and the Ancillary Agreements, including payment of the Purchase
Price and all of Buyers' indemnification obligations pursuant to ARTICLE XI. The
foregoing guaranty shall be direct, absolute, irrevocable and unconditional and,
except as set forth in the immediately preceding sentence, shall not be impaired
irrespective of any modification, release, supplement, extension or other change
in the terms of all or any of the obligations of Buyer Parent or Buyers under
this Agreement or the Ancillary Agreements or for any other reason whatsoever.
Capital hereby waives any requirement of promptness, diligence or notice with
respect to the foregoing guaranty and any requirement that the Seller Parent or
Sellers exhaust any right or take any action against Buyer Parent or Buyers in
respect of any of its obligations hereunder.

                                       39
<PAGE>

                  (c) Seller Parent hereby unconditionally and absolutely
guarantees to Buyer Parent and Buyers the prompt and full payment and
performance of all covenants, agreements and other obligations of Sellers under
this Agreement and the Ancillary Agreements, including payment of any adjustment
to the Purchase Price pursuant to ARTICLE II and all of Sellers' indemnification
obligations pursuant to ARTICLE XI. The foregoing guaranty shall be direct,
absolute, irrevocable and unconditional and shall not be impaired irrespective
of any modification, release, supplement, extension or other change in the terms
of all or any of the obligations of Sellers under this Agreement or the
Ancillary Agreements or for any other reason whatsoever. Seller Parent hereby
waives any requirement of promptness, diligence or notice with respect to the
foregoing guaranty and any requirement that Buyer Parent or Buyers exhaust any
right or take any action against Sellers in respect of any of their obligations
hereunder.

         15.2 ASSIGNMENT; BINDING EFFECT; AMENDMENT. This Agreement and the
rights of the parties hereunder may not be assigned (except by operation of law)
without the prior consent of the others; provided, however, that Buyers may
assign all or any portion of this Agreement to any Affiliate of Buyers (but
Buyers shall remain responsible for their obligations hereunder) and provided,
further, however, that Buyers, Buyer Parent and Capital may assign any and all
of their respective rights, interests and obligations hereunder as security for
obligations to their lenders, financing sources, investors and other secured
parties. Notwithstanding the foregoing, however, SECTION 13.3(B) shall take
precedence over this SECTION 15.2 solely with respect to the assignment of the
Right of First Refusal. This Agreement shall be binding upon and shall inure to
the benefit of the parties, and the successors and permitted assigns of Buyers,
Buyer Parent, Sellers and Seller Parent. This Agreement may be modified or
amended only by a written instrument executed by all parties.

         15.3 ENTIRE AGREEMENT. This Agreement, together with the Exhibits and
Schedules hereto, is the final, complete and exclusive statement and expression
of the agreement among the parties with relation to the subject matter of this
Agreement. This Agreement supersedes, and cannot be varied, contradicted or
supplemented by evidence of, any prior or contemporaneous discussions,
correspondence, or oral or written agreements of any kind.

         15.4 COUNTERPARTS. This Agreement may be executed simultaneously in two
or more counterparts, each of which shall be deemed an original and all of which
together shall constitute but one and the same instrument.

         15.5 NO BROKERS. Except with respect to the fees of Lehman Brothers
(which are the responsibility of Buyers and Buyer Parent), Sellers and Seller
Parent represent and warrant to Buyers and Buyer Parent, and Buyers and Buyer
Parent represent and warrant to Sellers and Seller Parent, that the warranting
party has had no dealings with any broker or agent so as to entitle such broker
or agent to a commission or fee in connection with the Transactions. If for any
reason a commission or fee shall become due, the party dealing with such agent
or broker (which party is Buyers and Buyer Parent in the case of Lehman
Brothers) shall pay such commission or fee and agrees to indemnify and save
harmless each of the other parties from all claims for such commission or fee
and from all attorneys' fees, litigation costs and other expenses relating to
such claim.

         15.6 EXPENSES OF TRANSACTION. Except as otherwise provided in this
Agreement:

                  (a) Whether or not the Transactions shall be consummated,
Buyers will pay the fees, expenses and disbursements of Buyers, Buyer Parent,
Capital and their agents, representatives, accountants and counsel incurred in
connection with the subject matter of this Agreement and any

                                       40
<PAGE>

amendments hereto and all other costs and expenses incurred in the performance
and compliance with all conditions to be performed by Buyers and Buyer Parent
under this Agreement;

                  (b) Whether or not the Transactions shall be consummated,
Sellers will pay the fees, expenses and disbursements of Sellers and Seller
Parent and their respective agents, representatives, accountants and counsel
incurred in connection with the subject matter of this Agreement and any
amendments hereto and all other costs and expenses incurred in the performance
and compliance with all conditions to be performed by Seller Parent and Sellers
under this Agreement;

                  (c) At the Closing, Sellers will pay or reimburse Buyers for
$1,500,000 of financing costs incurred in connection with the financing for the
Transactions; and

                  (d) Whether or not the Transactions shall be consummated,
nothing in this SECTION 15.6 shall limit the rights of a non-breaching party to
recover damages, including fees and expenses if so awarded, in connection with
any claim against a party in breach hereunder.

         15.7 NOTICES. All notices or other communications required or permitted
hereunder shall be in writing and may be given by overnight courier or by
delivering the same in person to such party.

                  (a) If to Buyers, Buyer Parent or Capital, addressed to it at:

                      c/o Capital Environmental Resource Inc.
                      1005 Skyview Drive
                      Burlington, Ontario L7P 5B1
                      Attn: Mr. David Sutherland-Yoest, Chairman and CEO

                      with a copy to:

                      Capital Environmental Resource Inc.
                      1005 Skyview Drive
                      Burlington, Ontario L7P 5B1
                      Attn: Thomas E. Durkin, Esq., General Counsel

                      and a copy to:

                      McDermott, Will & Emery
                      600 13th Street, N.W.
                      Washington, D.C.  20005-3096
                      Attn: Karen Dewis, Esq.

                  (b) If to Sellers or Seller Parent, addressed to it at:

                      Allied Waste Industries, Inc.
                      15880 N. Greenway-Hayden Loop
                      Suite 100
                      Scottsdale, Arizona  85260
                      Attn: Mr. Thomas H. Van Weelden, Chairman and CEO

                      with a copy to:

                                       41
<PAGE>

                      Allied Waste Industries, Inc.
                      15880 N. Greenway-Hayden Loop
                      Suite 100
                      Scottsdale, Arizona  85260
                      Attn: Steven M. Helm, Esq., Senior Vice President
                            and General Counsel

                      and a copy to:

                      Fennemore Craig, P.C.
                      3003 N. Central Avenue, Suite 2600
                      Phoenix, Arizona  85012
                      Attn: Karen McConnell, Esq.

Notice shall be deemed given and effective the day personally delivered and one
(1) Business Day after being sent by overnight courier, subject to signature
verification. Any party may change the address for notice by notifying the other
parties of such change in accordance with this SECTION 15.7. Notwithstanding the
foregoing, copies of notices and other communications regarding title and survey
matters shall also be provided to: (a) if to Sellers or Seller Parent, addressed
to M. Virginia Perry, Fennemore Craig, P.C., 3003 N. Central Avenue, Suite 2600,
Phoenix, Arizona 85012, and (b) if to Buyers, Buyer Parent or Capital, addressed
to Gregg H. Fierman, Esq., McDermott, Will & Emery, 201 South Biscayne
Boulevard, 22nd Floor, Miami, FL 33131-4336.

         15.8 NO WAIVER. No delay of or omission in the exercise of any right,
power or remedy accruing to any party as a result of any breach or default by
any other party under this Agreement shall impair any such right, power or
remedy, nor shall it be construed as a waiver of or acquiescence in any such
breach or default, or of any similar breach or default occurring later; nor
shall any waiver of any single breach or default be deemed a waiver of any other
breach of default occurring before or after that waiver.

         15.9 CAPTIONS. The headings of this Agreement are inserted for
convenience only, shall not constitute a part of this Agreement or be used to
construe or interpret any provision hereof.

         15.10 NO THIRD PARTY BENEFICIARIES. Except for the provisions of
ARTICLE XI relating to indemnified parties, nothing contained in this Agreement
is intended or shall confer upon any other Person, including any union or
employee or former employee of Seller Parent or Sellers, any legal or equitable
right, benefit or remedy of any nature whatsoever, including any rights of
employment for any specified period, under or by reason of this Agreement.

         15.11 SEVERABILITY. In case any provision of this Agreement shall be
invalid, illegal or unenforceable, it shall, to the extent possible, be modified
in such manner as to be valid, legal and enforceable but so as most nearly to
retain the intent of the parties. If such modification is not possible, such
provision shall be severed from this Agreement. In either case the validity,
legality and enforceability of the remaining provisions of this Agreement shall
not in any way be affected or impaired thereby.

         15.12 CONSTRUCTION. The parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties and no presumption or burden of proof shall
arise

                                       42
<PAGE>

favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Agreement. Any reference to any federal, state, local or
foreign statute shall be deemed to refer to all rules and regulations
promulgated thereunder, unless the context requires otherwise. The word
"include" or "including" means include or including, without limitation. All
references herein to Articles, Sections, Exhibits and Schedules shall be deemed
references to Articles and Sections of, and Exhibits and Schedules to, this
Agreement unless the context shall otherwise require.

                                  ARTICLE XVI

                               DISPUTE RESOLUTION

         16.1 GENERAL. The parties agree that any disputes arising out of or
related in any way to this Agreement, including a breach of this Agreement,
shall be brought exclusively in the courts of the State of Delaware and federal
courts of United States of America located in such state. By execution and
delivery of this Agreement, with respect to any dispute, each of the parties
knowingly, voluntarily and irrevocably: (a) consents, for itself and in respect
of its property, to the exclusive jurisdiction of these courts; (b) waives any
immunity or objection, including any objection to personal jurisdiction or the
laying of venue or based on the grounds of forum non conveniens, which it may
have from or to the bringing of the dispute in such jurisdiction; (c) waives any
personal service of any summons, complaint or other process that may be made by
any other means permitted by the State of Delaware; (d) waives any right to
trial by jury; (e) agrees that any such dispute will be decided by court trial
without a jury; (f) understands that it is giving up valuable legal rights under
this provision, including the right to trial by jury, and that it voluntarily
and knowingly waives those rights; and (g) agrees that any party to this
Agreement may file an original counterpart or a copy of this SECTION 16.1 with
any court as written evidence of the consents, waivers and agreements of the
parties set forth in this SECTION 16.1.

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

         16.3 ATTORNEYS' FEES. Should any litigation be commenced under this
Agreement, the successful party in such litigation shall be entitled to recover,
in addition to such other relief as the court may award, its reasonable
attorneys' fees, expert witness fees, litigation related expenses, and court or
other costs incurred in such litigation or proceeding. For purposes of this
clause, the term "successful party" means the net winner of the dispute, taking
into account the claims pursued, the claims on which the pursuing party was
successful, the amount of money sought, the amount of money awarded, and offsets
or counterclaims pursued (successfully or unsuccessfully) by the other party. If
a written settlement offer is rejected and the judgment or award finally
obtained is equal to or more favorable to the offeror than an offer made in
writing to settle, the offeror is deemed to be the successful party from the
date of the offer forward.

                            [SIGNATURES ON NEXT PAGE]

                                       43
<PAGE>

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

                                     BUYERS:

                                     Waste Services of Florida, Inc.

                                     By: /s/ Larry D. Henk
                                         ---------------------------------------
                                     Its: President
                                          --------------------------------------

                                     Jacksonville Florida Landfill, Inc.

                                     By: /s/ Larry D. Henk
                                         ---------------------------------------
                                     Its: President
                                          --------------------------------------

                                     BUYER PARENT:

                                     Waste Services, Inc.

                                     By: /s/ Larry D. Henk
                                         ---------------------------------------
                                     Its: President and Chief Operating Officer
                                          --------------------------------------

                                     CAPITAL:

                                     Capital Environmental Resource Inc.

                                     By: /s/ Larry D. Henk
                                         ---------------------------------------
                                     Its: President and Chief Operating Officer
                                          --------------------------------------

                                     SELLERS:

                                     BFI Waste Systems of North America, Inc.

                                     By: /s/ Nicholas Skaff
                                         -------------------------------------
                                     Its: Director Market Development
                                          ------------------------------------

                                       44
<PAGE>

                                       Browning-Ferris Industries of Florida,
                                       Inc.

                                       By: /s/ Nicholas Skaff
                                           -------------------------------------
                                       Its: Director Market Development
                                            ------------------------------------

                                       E Leasing Company, LLC

                                       By: /s/ Nicholas Skaff
                                           -------------------------------------
                                       Its: Director Market Development
                                            ------------------------------------

                                       SELLER PARENT:

                                       Allied Waste Industries, Inc.

                                       By: /s/ Nicholas Skaff
                                           -------------------------------------
                                       Its: Director Market Development
                                            ------------------------------------

                                       45
<PAGE>
                                    EXHIBIT C
                                   DEFINITIONS

         "ACCOUNTS RECEIVABLE" means all accounts receivable of Sellers and the
Partnership as of the Closing Date arising from the operation of the Business.

         "ADJUSTMENT AMOUNT" has the meaning specified in SECTION 2.1(B)(I).

         "AFFILIATE" means, with respect to any specified Person, a Person
controlled by, controlling or under common control with such Person.

         "AFFILIATED GROUP" means an affiliated group as defined in Code Section
1504(a) or any similar group defined under a similar provision of state or local
Tax law.

         "AGREEMENT" has the meaning specified in the introductory paragraph of
the Agreement.

         "ANCILLARY AGREEMENTS" means the Deeds, the Bill of Sale, the National
Accounts Subcontract, the Retention Bonus Agreements and the other documents and
agreements delivered by the parties pursuant to the terms of this Agreement.

         "ANNUAL FINANCIAL STATEMENTS" has the meaning specified in SECTION
5.11.

         "ANTITRUST DIVISION" means the Antitrust Division of the United States
Department of Justice.

         "APPLICABLE LAWS" means all federal, state and local statutes, laws,
rules, regulations, orders, permits (including zoning restrictions and land use
requirements and environmental laws and regulations) and licenses and all
administrative and judicial judgments, rulings, decisions and orders applicable
to Sellers, the Partnership the Assets or the Business.

         "ASSETS" has the meaning specified in SECTION 1.1.

         "ASSIGNMENT, ASSUMPTION AND CONSENT TO LEASED LAND" means an
assignment, in form and substance reasonably satisfactory to Buyers, for each
parcel of Leased Land of all of Sellers' rights, title and interest under each
such Real Estate Lease, together with the consent of the landlord to such
assignment if required by the applicable lease or by law.

         "ASSUMED CONTRACTS" has the meaning specified in SECTION 1.1(H).

         "ASSUMED LEASES" has the meaning specified in SECTION 5.4(E).

         "ASSUMED LIABILITIES" has the meaning specified in SECTION 10.2.

         "ATTWOODS CONSENT DECREE" means the Final Judgment of the United States
District Court for the District of Columbia, filed 12/1/94 and captioned UNITED
STATES OF AMERICA V. BROWNING-FERRIS INDUSTRIES, INC. (Civ. Action No.
1:94CV02588).

         "BALANCE SHEET DATE" means December 31, 2002.

                                      C-1
<PAGE>

         "BILL OF SALE" means a General Conveyance, Assignment and Bill of Sale
in form and substance reasonably satisfactory to Buyers and Sellers, providing
for the conveyance, sale, transfer and assignment to Buyers of all of the Assets
(other than the Owned Land and Leased Land).

         "BUSINESS" has the meaning specified in RECITAL A.

         "BUSINESS DAY" means any day that is not a Saturday, a Sunday or other
day in which banks are authorized or required by law to be closed in Phoenix,
Arizona and Toronto, Ontario.

         "BUSINESS EMPLOYEES" means all employees of Sellers employed
principally in the Business.

         "BUSINESS NAMES" means names and the right to use such names and all
similar names in the state(s) listed on SCHEDULE 1.1(I).

         "BUYER PARENT" has the meaning specified in the introductory paragraph
of the Agreement.

         "BUYERS" has the meaning specified in the introductory paragraph of the
Agreement.

         "BUYERS' ASSUMPTION AGREEMENTS" means assumption agreements in form and
substance reasonably satisfactory to Buyers and Sellers, providing for the
assumption by Buyers of the Assumed Liabilities.

         "CAPITAL" has the meaning specified in the introductory paragraph of
the Agreement.

         "CERCLA" means the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended.

         "CINTAS" has the meaning specified in SECTION 4.4.

         "CLOSING" and "CLOSING DATE" have the meanings specified in SECTION
3.1(A).

         "CODE" means the Internal Revenue Code of 1986, as amended.

         "CUSTOMER CONTRACTS" means all contractual rights of Sellers with
Sellers' customers (whether oral or in writing) exclusively relating to the
Business, except the National Accounts.

         "DAMAGES" has the meaning specified in SECTION 11.2.

         "DEED" means a special or limited warranty deed, in recordable form.

         "DEPOSIT" has the meaning specified in SECTION 2.1(A)(I).

         "DISCLOSURE SCHEDULES" means the schedules to the specific Sections of
the Agreement delivered by Sellers and Seller Parent to Buyers, as supplemented
pursuant to SECTION 7.8.

                                      C-2
<PAGE>

         "EMPLOYEE CONTRACTS" means all employment contracts and collective
bargaining agreements with any union insofar as they apply to persons who are
employees of the Business (but excluding employee benefit plans).

         "ENCUMBRANCES" means liens, security interests, encumbrances, adverse
claims, leases, rights of repurchase or purchase, rights of first refusal,
pledges, charges, voting trusts, equities and other restrictions, limitations or
conditions on transfer of any nature whatsoever.

         "ENVIRONMENTAL LAWS" means all federal, state, and local laws,
including common law, statutes, codes, ordinances, rules, regulations, permits,
or orders relating to or addressing the environment, health or safety, which
shall include the use, handling or disposal of any Hazardous Material, or
workplace or worker safety and health.

         "EQUIPMENT" means all machinery, equipment, including containers, used
or held for use principally in connection with the Business and owned by Sellers
or the Partnership or, if leased, Sellers' or the Partnership's leasehold
interest therein.

         "EXCLUDED ASSETS" has the meaning specified in SECTION 1.2.

         "EXCLUDED LIABILITIES" has the meaning specified in SECTION 10.1.

         "FTC" means the United States Federal Trade Commission. ---

         "GAAP" means United States generally accepted accounting principles
applied on a consistent basis.

         "HAZARDOUS MATERIALS" means hazardous wastes or hazardous substances,
infectious or medical waste, radioactive waste, pollutants, toxic substances,
toxic pollutants, or sewage sludges as those terms are defined by and/or
regulated under the Resource Conservation and Recovery Act of 1976; CERCLA; the
Atomic Energy Act of 1954; the Toxic Substances Control Act; the Occupational
Health and Safety Act; the Federal Water Pollution Control Act; the Clean Air
Act; any comparable or similar state statute; any other Applicable Law or the
rules and regulations promulgated under any of the foregoing, as each of the
foregoing may have been from time to time amended.

         "HSR ACT" means the Hart-Scott-Rodino Antitrust Improvement Act of
1976, as amended.

         "INDEMNIFIED PARTY" means a party seeking indemnification under ARTICLE
XI.

         "INDEMNIFYING PARTY" means a party from whom indemnification is sought
under ARTICLE XI.

         "INTERIM FINANCIAL STATEMENTS" has the meaning specified in SECTION
5.11.

         "INVENTORY" means all inventory of supplies, fuel, parts, tires,
accessories and other tangible assets of every kind, nature and description (and
interests in any of the foregoing) used,

                                      C-3
<PAGE>

or held for use, principally in connection with the Business and owned by
Sellers or the Partnership.

         "KNOWLEDGE," whether capitalized or not, means the actual knowledge of
the following Persons, without inquiry: Rick Wojahn, Nicholas Skaff, Bruce
Emley, Doug Borro, Bruce Roy and Eric Mead.

         "LAND" has the meaning specified in RECITAL C.

         "LEASED LAND" has the meaning specified in RECITAL C.

         "LIABILITY" has the meaning specified in SECTION 10.1.

         "MATERIAL ADVERSE CHANGE" means a material adverse change in the
business, financial condition or results of operations of the Business described
in this Agreement, taken as a whole.

         "MINIMUM UNIFORMED EMPLOYEES" has the meaning specified in SECTION 4.4.

         "MONTHLY MINIMUM" has the meaning specified in SECTION 4.7.

         "NATIONAL ACCOUNT SUBCONTRACT" has the meaning specified in SECTION
3.2(I).

         "NATIONAL ACCOUNTS" means customer accounts that involve a broader area
than the area served by the Business and that are managed by Sellers or by an
Affiliate of Sellers pursuant to a national account program.

         "NEUTRAL AUDITOR" has the meaning specified in SECTION 2.2(B).

         "NET WORKING CAPITAL" has the meaning specified in SECTION 2.1(B)(II).

         "NEW FLORIDA OPERATIONS" has the meaning specified in SECTION 13.3.

         "NOMINEE" has the meaning specified in SECTION 13.3(B).

         "OFFER" and "OFFER NOTICE" have the meanings specified in SECTION
13.3(A)(I).

         "ORGANIZATIONAL DOCUMENTS" means the Certificates or Articles of
Incorporation and Bylaws of Sellers and Seller Parent.

         "OTHER CONTRACTS" has the meaning specified in SECTION 5.6.

         "OWNED LAND" has the meaning specified in RECITAL C.

         "PARTNERSHIP" has the meaning specified in SECTION 1.1(T).

         "PERMITS" means all permits, filings, notices of intent, exemptions,
licenses, authorizations, registrations, franchises, consents, approvals and
related applications of every kind held by Sellers or the Partnership in
connection with the Business from or with any federal,

                                      C-4
<PAGE>

state, local or foreign government or regulatory authorities or industrial
bodies, including all FCC radio licenses or call signs.

         "PERMITTED EXCEPTIONS" means: (i) zoning ordinances and regulations
which do not materially adversely affect Buyers' use or marketability of the
Land for its current uses; (ii) real estate taxes and assessments, both general
and special, which are a lien but are not yet due and payable at the Closing
Date; (iii) easements, encumbrances not securing a financial obligation,
covenants, conditions, reservations, restrictions and other matters of record,
if any, that are not Unpermitted Exceptions; and (iv) if the Land is leased, the
Real Estate Leases.

         "PERSON" means any individual, firm, partnership, association, trust,
corporation, joint venture, unincorporated organization, limited liability
company, governmental body or other entity.

         "PRE-CLOSING PERIOD" means any Tax period or portion thereof ending on
or before the Closing Date.

         "PROCEEDINGS" means any claim, investigation, litigation, action, suit
or proceeding, formal arbitration, informal arbitration or mediation,
administrative, judicial or otherwise. "PURCHASE PRICE" has the meaning
specified in SECTION 2.1(A).

         "REAL ESTATE LEASES" means all existing leases, occupancy agreements or
licenses or similar agreements and any amendments thereto in effect in
connection with the Land.

         "REQUIRED CONSENTS" has the meaning specified in SECTION 5.8(B)(III).

         "RESTRICTIVE COVENANTS" means the covenants set forth in ARTICLE XIII.

         "RESTRICTED PERIOD" has the meaning provided in SECTION 13.3.

         "RETAINED IP" has the meaning specified in SECTION 1.1(G).

         "RETENTION BONUS AGREEMENTS" has the meaning specified in SECTION 3.9.

         "RIGHT OF FIRST REFUSAL" has the meaning specified in SECTION 13.3.

         "RIGHT OF FIRST REFUSAL AGREEMENT" has the meaning specified in SECTION
3.2(K).

         "RIGHTS" means the Permits, the Rolling Stock and the intangible assets
identified in SCHEDULE 1.1(G).

         "ROLLING STOCK" means all of the motor vehicles used or held for use
principally in connection with the Business and owned by Sellers or the
Partnership or, if leased, Sellers' or the Partnership's leasehold interest
therein, and all attachments, accessories and materials handling equipment now
located in or on such motor vehicles, including all radios and the radio base
station, if any.

                                      C-5
<PAGE>

         "SELLER PARENT" has the meaning specified in the introductory paragraph
of the Agreement.

         "SELLERS" has the meaning specified in the introductory paragraph of
the Agreement.

         "SELLERS' FINANCIAL STATEMENTS" has the meaning specified in SECTION
5.11.

         "SELLER NOMINEE" has the meaning specified in SECTION 13.3(B).

         "STAY-ON BONUSES" has the meaning specified in SECTION 3.9.

         "SURVEYS" has the meaning specified in SECTION 3.6.

         "TAX" or "TAXES" means any federal, state, local, foreign, and other
income, gross receipts, sales, use, ad valorem, transfer, franchise, real
property, profits, payroll, withholding, unemployment, excise, customs, duties
and other taxes, fees, assessments and charges of any kind whatsoever, together
with any interest and any penalties and additions to tax with respect thereto.

         "TEMPORARY USE AGREEMENT" means a lease, sublease, license or other
agreement between Buyers and Sellers, in form and substance reasonably
acceptable to Buyers and Sellers, which allows Buyers to use the parcel of Land
covered thereby in the manner used by Sellers prior to the Closing Date from the
Closing Date until the earlier to occur of (i) removal of such parcel of Land
from the Transactions, or (ii) resolution, satisfaction and/or delivery of all
Unsatisfied Conditions with respect to such parcel of Land and Buyers' release
of the escrowed Purchase Price for such parcel of Land to Sellers.

         "THIRD PARTY CLAIM" has the meaning specified in SECTION 11.6(A).

         "TITLE COMMITMENT" means a preliminary title commitment for the
issuance of an ALTA Owner's Policy of Title Insurance or for the issuance of an
ALTA Leasehold Policy of Title Insurance, as applicable.

         "TITLE COMPANY" means a title company selected by Buyers.

         "TITLE DEFECT" has the meaning specified in SECTION 7.3(J).

         "TRANSACTIONS" means the transactions contemplated by this Agreement.

         "TRANSITION PERIOD" has the meaning specified in SECTION 4.3(A).

         "TRANSMONTAIGNE" has the meaning specified in SECTION 4.7.

         "TRANSMONTAIGNE AGREEMENT" has the meaning specified in SECTION 4.7.

         "UNIFORM CONTRACT" has the meaning specified in SECTION 4.4.

                                      C-6
<PAGE>

         "UNPERMITTED EXCEPTION" means any defect in the title of any of the
Land or any other matter unacceptable to Buyers disclosed by the Title
Commitments or title reports, title exception documents or the Surveys, or any
update of any of the foregoing.

         "UNSATISFIED CONDITIONS" means the following conditions: (i) through no
fault of Buyers, the Title Company is not prepared to issue the title insurance
required under SECTION 3.2(B) hereof; (ii) for any parcel of Land, Buyers have
not had the time permitted under SECTION 3.5 to review Title Commitments, title
exception documents and Surveys, or any update of any of the foregoing; (iii)
for any parcel of Land, Sellers have not responded to Buyers' notice of
Unpermitted Exceptions under SECTION 3.5 and the time period set forth in
SECTION 3.5 for Sellers' response has not lapsed; (iv) for any parcel of Land,
Buyers have not responded to Sellers' response or deemed response under SECTION
3.5 and the time period set forth in SECTION 3.5 for Buyers' response has not
lapsed; and/or (v) for any parcel of Leased Land, Buyers have not received an
Assignment, Assumption and Consent to Leased Land.

         "US REORGANIZATION TRANSACTION" means any restructuring or
reorganization transaction in which Capital becomes a direct or indirect
subsidiary of Buyer Parent.

                                      C-7

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