Document:

Exhibit 4.49

 

MANAGEMENT AGREEMENT

 

 

 

between

 

TAL INTERNATIONAL CONTAINER CORPORATION

Manager

 

 

and

 

 

TAL ADVANTAGE IV LLC

Owner

 

 

 

Dated as of

June 28, 2010

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.

  	
  Appointment
  of the Manager

  	
  1

  
	
   

  	
  2.1

  	
  Appointment of Manager

  	
  1

  
	
   

  	
  2.2

  	
  Appointment of Subservicers

  	
  2

  
	
   

  	
  2.3

  	
  Retention of Title

  	
  2

  
	
   

  	
  2.4

  	
  Exclusive Representation of Owner

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.

  	
  Manager’s
  Services with Respect to the Managed Containers

  	
  2

  
	
   

  	
  3.1

  	
  Non-Discrimination

  	
  2

  
	
   

  	
  3.2

  	
  Terms of Lease Agreements

  	
  3

  
	
   

  	
  3.3

  	
  Leasing

  	
  3

  
	
   

  	
  3.4

  	
  Maintenance and Repair

  	
  4

  
	
   

  	
  3.5

  	
  Compliance With Law

  	
  4

  
	
   

  	
  3.6

  	
  Markings

  	
  4

  
	
   

  	
  3.7

  	
  Casualty Losses; Sale of Managed Containers; Lost or
  Destroyed Containers

  	
  4

  
	
   

  	
  3.8

  	
  Sales of Managed Containers

  	
  5

  
	
   

  	
  3.9

  	
  Insurance

  	
  5

  
	
   

  	
  3.10

  	
  Books and Records; Inspection of Books and Records;
  Inspection of Managed Containers; Back-up Data Tape

  	
  6

  
	
   

  	
  3.11

  	
  Back-up Management Agreement

  	
  7

  
	
   

  	
  3.12

  	
  Liens

  	
  8

  
	
   

  	
  3.13

  	
  Concentration Account and Payment
  Instructions

  	
  8

  
	
   

  	
  3.14

  	
  Identification of Funds in the
  Concentration Account

  	
  8

  
	
   

  	
  3.15

  	
  Transfer of Funds Received by the
  Manager

  	
  8

  
	
   

  	
  3.16

  	
  Time and Attention to Duties

  	
  9

  
	
   

  	
  3.17

  	
  OFAC

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.

  	
  Reporting
  Obligations of the Manager

  	
  9

  
	
   

  	
  4.1

  	
  Reports Due from the Manager

  	
  9

  
	
   

  	
  4.2

  	
  Manager Advances

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.

  	
  Deposits
  to Trust Account; Payment of Management Fee

  	
  11

  
	
   

  	
  5.1

  	
  Deposits

  	
  11

  
	
   

  	
  5.2

  	
  Compensation of Manager

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.

  	
  Term

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.

  	
  Intercreditor
  Agreement

  	
  14

  

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.

  	
  Representations
  and Warranties; Covenants

  	
  14

  
	
   

  	
  8.1

  	
  Manager Representations

  	
  14

  
	
   

  	
  8.2

  	
  Owner Representations

  	
  16

  
	
   

  	
  8.3

  	
  Covenants of the Manager

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.

  	
  Manager
  Default

  	
  18

  
	
   

  	
  9.1

  	
  Manager Default

  	
  18

  
	
   

  	
  9.2

  	
  Remedies

  	
  21

  
	
   

  	
  9.3

  	
  Transfer of Managed Containers

  	
  21

  
	
   

  	
  9.4

  	
  Power of Attorney

  	
  21

  
	
   

  	
  9.5

  	
  Owner Power of Attorney

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.

  	
  No
  Partnership

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.

  	
  No
  Warranties

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 12.

  	
  Non-Exclusivity

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.

  	
  Assignment

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 14.

  	
  Indemnification

  	
  24

  
	
   

  	
  14.1

  	
  By the Owner

  	
  24

  
	
   

  	
  14.2

  	
  By the Manager

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 15.

  	
  No
  Bankruptcy Petition Against the Owner

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 16.

  	
  Notices

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 17.

  	
  Governing
  Law; Consent to Jurisdiction

  	
  27

  
	
   

  	
  17.1

  	
  Governing Law

  	
  27

  
	
   

  	
  17.2

  	
  Consent to Jurisdiction

  	
  27

  
	
   

  	
  17.3

  	
  Waiver of Jury Trial

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 18.

  	
  Successors
  and Assigns

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 19.

  	
  Severability

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 20.

  	
  Entire
  Agreement; Amendments; Waiver

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 21.

  	
  Counterparts

  	
  28

  

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 22.

  	
  Intended
  Third Party Beneficiaries

  	
  29

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A — MANAGER REPORT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT B — AFFILIATES OF MANAGER AND
  APPROVED SUBSERVICERS

  	
   

  
	
   

  	
   

  
	
  EXHIBIT C — CREDIT AND COLLECTION POLICY

  	
   

  
	
   

  	
   

  
	
  EXHIBIT D — AGREED UPON PROCEDURES

  	
   

  
	
   

  	
   

  
	
  EXHIBIT E — DEPRECIATION POLICY

  	
   

  
	
   

  	
   

  
	
  EXHIBIT F — CRITERIA FOR BACK-UP DATA TAPE

  	
   

  

 

iii

 

This MANAGEMENT
AGREEMENT, dated as of June 28, 2010 (as amended, modified or supplemented
from time to time in accordance with the terms hereof, this “Agreement”),
between TAL ADVANTAGE IV LLC, a limited liability company organized and
existing under the laws of the State of Delaware (together with its successors
and permitted assigns, the “Owner” or the “Issuer”) and TAL INTERNATIONAL
CONTAINER CORPORATION, a Delaware corporation (together with its successors and
permitted assigns, “Manager”).

 

W I T N E S S E T H

 

WHEREAS, the Owner is the
owner of the Managed Containers; and

 

WHEREAS, the Manager is
in the business of leasing Containers to shipping lines and other container
users, and is experienced in administration of a container leasing business;
and

 

WHEREAS, the Owner wishes
to contract with the Manager for the purposes of (i) managing the
operation and leasing of the Managed Containers, and (ii) performing other
administrative duties for the Owner; and

 

WHEREAS, the Manager has
agreed to manage the Owner’s business including the Managed Containers and to
operate and lease out the Managed Containers as part of the Manager’s Container
Fleet and to perform other administrative duties for the Owner; and

 

NOW, THEREFORE, in
consideration of the premises and the mutual representations, warranties,
covenants and agreements contained herein, the parties hereto hereby agree as
follows:

 

Section 1.               Definitions.  Terms
capitalized but not defined herein shall have the meanings ascribed thereto in
Appendix A to that certain Indenture, dated as of June 28, 2010, between
the Issuer and Wells Fargo Bank, National Association, as Indenture Trustee (as
amended, restated or otherwise modified from time to time in accordance with
the terms thereof, the “Indenture”), as such Appendix A may be amended,
supplemented or otherwise modified from time to time in accordance with the
provisions of the Indenture.

 

Section 2.               Appointment of the Manager.

 

2.1           Appointment of Manager.  The Owner hereby exclusively (i) appoints
the Manager as its agent to manage and administer its business, and to manage
the Managed Containers, including performance of all of the Owner’s duties and
observance of all of the Owner’s obligations under the Indenture and the other
Transaction Documents to which it is a party, and (ii) grants to the
Manager the authority on behalf of the Owner to enter into, administer, enforce
and terminate Lease Agreements relating to the Managed Containers, to sell,
transfer or otherwise dispose of and enforce the Owner’s rights with respect to
the Managed Containers, to collect monies and make disbursements on behalf of
the Owner, and to manage its finances, all such activities described in clauses
(i) and (ii) to be conducted on the terms and subject to the
conditions set forth herein.  The Manager
hereby agrees to so manage the Managed Containers and administer the Owner’s
business, including performance of all of the Owner’s duties and observance of
all of the Owner’s obligations under the Indenture and the other Transaction
Documents to which the Owner is a party, upon the terms and conditions herein; 

 

 

provided, however, that nothing contained in
this Agreement or any other Transaction Document shall be or shall be construed
to be either (x) an express or implied guaranty by the Manager of the
Notes or any other Outstanding Obligations incurred by the Owner or (y) an
express or implied agreement to make payments on the Notes or other Outstanding
Obligations.

 

2.2           Appointment of Subservicers.  In performing its duties hereunder, the
Manager may, subject to the restrictions set forth herein, contract with any of
its Affiliates listed on Exhibit B hereto to provide the services required
to be rendered by the Manager hereunder (each resulting agreement, a “Subservicing
Agreement,” and each Affiliate that is a party to such Subservicing Agreement,
a “Subservicer”); provided, however, that (i) the
Manager shall be solely responsible for the receipt and processing of all
Container Revenues, Sales Proceeds, Casualty Proceeds and other Collections, (ii) each
Subservicing Agreement (but not other agreements to which the Manager may be a
party) must expressly provide that such Subservicing Agreement may be
terminated by the Requisite Global Majority if a Manager Default has occurred
and is then continuing, and (iii) the Manager shall be solely responsible
for the payment to each such Subservicer of any and all compensation, expenses
and indemnities to each such Subservicer. 
The Manager will not contract with any other Person to provide any of
the services to be rendered by the Manager to the Owner hereunder without the
prior written consent of the Requisite Global Majority.  Notwithstanding any provision of such
services by its Subservicers, the Manager shall remain obligated and liable to
the Owner, the Indenture Trustee, each Series Enhancer (so long as such Series Enhancer
is the Control Party for a Series of Outstanding Notes) and the
Noteholders for the management and the administration of the Managed Containers
in accordance with the provisions of this Agreement, without diminution of such
obligation or liability by virtue of such agreements or arrangements with its
Subservicers, to the same extent and under the same terms and conditions as if
the Manager alone were servicing and administering the Managed Containers.

 

2.3           Retention of Title.  The Owner shall at all times retain full
legal and equitable title to the Managed Containers, notwithstanding the
management thereof by Manager hereunder. 
Manager shall not make reference to, or otherwise deal with or treat,
the Managed Containers in any manner except in conformity with this Agreement.

 

2.4           Exclusive Representation of Owner.  Except as otherwise provided in this
Agreement, during the term of this Agreement, the Manager will be the exclusive
agent of the Owner with respect to the Owner’s business and with respect to the
management of the Managed Containers and the Owner agrees that it will not
engage any other Person to perform, or pay any consideration to any other
Person for performing, the same or similar services with respect to the owner’s
business or with respect to the Managed Containers.

 

Section 3.               Manager’s Services with Respect to the Managed Containers.

 

3.1           Non-Discrimination.  In performing its duties pursuant to this
Agreement, the Manager shall exercise substantially the same degree of skill
and care with which it services, leases and manages containers held for its own
account and consistent with the reasonable commercial practices of a prudent
container lessor engaged in the administration, leasing and servicing of
shipping containers (such standard of care, the “Servicing Standard”).  Without 

 

2

 

limiting the foregoing, the Manager shall not
knowingly discriminate in favor of or against the Managed Containers in
connection with the management and operation of the Container Fleet.

 

3.2           Terms of Lease Agreements.  Without prejudice to the rights and title of
the Owner with respect to the Managed Containers, the Manager may arrange for
the leasing of the Managed Containers pursuant to Lease Agreements that are in
its own name as principal, and not as agent of the Owner; provided,
however, that it is understood and agreed that the Manager is acting
thereunder solely as agent of the Owner. The Manager shall have sole discretion
to determine to whom to lease, sell or otherwise dispose of the Managed
Containers, to determine the per diem rates and other charges to be paid and
all other terms and conditions of the Lease Agreements and to renegotiate,
amend and consent to waivers under such Lease Agreements.  The Manager shall invoice and collect from
lessees all rental payments and other amounts due under and pursuant to the
Lease Agreements relating to the Managed Containers.

 

3.3           Leasing.  The Manager shall operate and lease the
Managed Containers as part of its Container Fleet and shall perform all
managerial and administrative functions and provide or arrange for the
provision of all services and documentation of any nature which it considers
necessary or desirable for such operation and leasing.  The Manager shall, in compliance with the
Servicing Standard, take all actions the Manager deems appropriate to ensure
compliance by the Lessees with the terms of any Lease Agreement, including the
exercise of the rights of the lessor thereunder.

 

3.3.1        With
respect to the Managed Containers, the Manager shall use reasonable efforts to
include in the terms of lease agreements with lessees a provision requiring
lessees to comply with Applicable Law affecting the Managed Containers and
their use, operation and storage while the Managed Containers are on-hire and
the Manager shall use reasonable efforts to include in the terms of depot
agreements with third-party storage and repair depots a provision requiring the
depots to comply with Applicable Law affecting the Managed Containers while the
Managed Containers are off-hire and stored in the depot.

 

3.3.2        The
Manager will monitor and record the status of the Managed Containers in the
same manner as for containers held for its own account, i.e., for each Managed
Container it will record the on-hire location, the date of on-hire and the
lessee to whom the Managed Container is on-hire, the off-hire date of the
Managed Container and the off-hire location, and the depot where the Managed
Container is located while off-hire.

 

3.3.3        The
Manager shall follow the Credit and Collection Policy with respect to the
leasing of the Managed Containers and, subject to the terms of such Credit and
Collection Policy, the Manager may, in its sole discretion (a) determine
and approve the creditworthiness of any lessee (though the Manager makes no
representation or warranty to the Owner as to the solvency or financial
stability of any lessee), (b) determine that any amount due from any
lessee is not collectible, (c) institute and prosecute legal proceedings
against a lessee as permitted by Applicable Law, (d) terminate or cancel
any Lease Agreement, (e) recover possession of the Managed Containers from
any lessee, (f) settle, compromise or release any proceeding or claim against
a lessee in the name of the Manager or, if appropriate, in the name of the
Owner, or (g) reinstate any Lease Agreement.

 

3

 

3.3.4        In
performing its duties under this Agreement, the Manager shall use reasonable
efforts to comply with the Concentration Limits when entering into new Lease
Agreements and, in any event, shall not, without the prior written consent of
the Requisite Global Majority, lease all, or substantially all, of the Managed
Containers to an Affiliate of the Manager or to a single lessee.

 

3.3.5        The
Manager hereby acknowledges that the Manager and its Affiliates are holding the
leases relating to the Managed Containers (but only to the extent that such
leases relate to the Managed Containers), on behalf of, and for the benefit of,
the Indenture Trustee.

 

3.4           Maintenance and Repair.  The
Manager shall keep, or, with respect to Managed Containers on lease, cause the
related lessee, to keep, each Managed Container (i) in good repair and
working order in a manner consistent with past practices, and (ii) in
accordance with its maintenance and repair standards for the Container
Fleet.  The Manager shall make, or cause
to be made, all necessary inspections, repairs, replacements, additions and
improvements to each Managed Container as are commercially reasonable for the
conduct of its business in accordance with the ordinary course of the Manager’s
business consistent with past practices; it being understood that it may, in
some cases, be commercially reasonable not to repair a Managed Container.  The Manager shall institute and prosecute
claims against the manufacturers and sellers of the Managed Containers as the
Manager may consider advisable for breach of warranty, any defect in condition,
design, operation or fitness or any other nonconformity with the terms of
manufacture.  The Manager shall have no
liability to the Owner for any such breach of any manufacturer’s or seller’s or
any other Person’s warranty or for any such defect in condition, design,
operation or fitness or any other nonconformity with the terms of
manufacture.  The Manager shall at all
times use the Managed Containers, and require the related lessee to use the
Managed Containers, in accordance with good operating practices.  The Manager shall not knowingly use (or
knowingly permit the lessees to use) the Containers for storage or
transportation of contraband in violation of applicable United States law.

 

3.5           Compliance With Law.  The
Manager will comply, in all material respects, with all acts, rules,
regulations, orders, decrees and directions of any governmental authority that
are applicable to the Lease Agreements and the Managed Containers or any part
thereof except for any noncompliance which would not reasonably be expected to result
in a Material Adverse Change; provided,
however, that the Manager may contest any act, rule, regulation,
order, decree or direction in any reasonable manner which shall not materially
and adversely affect the Noteholders or any Series Enhancer; and provided, further, that such contests
shall be in good faith by appropriate proceedings and as to which adequate
reserves in accordance with GAAP have been established, but only so long as
such proceedings shall not, individually or in the aggregate, subject any Series Enhancer,
any Noteholder or Indenture Trustee to any civil or criminal liability.

 

3.6           Markings.  The
Manager shall ensure that each Managed Container shall carry its Container
Identification Number and other markings as may be required for its operation
in marine and intermodal shipping.

 

3.7           Casualty Losses; Sale of Managed Containers;  Lost or Destroyed Containers.  If
any Managed Container shall suffer a Casualty Loss while it is subject to the
terms of this 

 

4

 

Agreement,
the Manager shall remit to the Trust Account, in accordance with the provisions
of Section 5.1.1 hereof, the Casualty Proceeds (net of any expenses, taxes
and reserves in respect thereof), if any, received as a consequence of such
Casualty Loss.

 

3.8           Sales of Managed Containers.  The Manager shall have the ability in its
sole discretion to sell or otherwise dispose of any of the Managed Containers,
subject to compliance with the applicable provisions of Sections 404 and 606 of
the Indenture.  The Manager shall remit
to the Trust Account, in accordance with the provisions of Section 5.1.1
hereof, the Sales Proceeds (net of any expenses, taxes or reserves in respect
thereof) received as a consequence of any such sale.

 

3.9           Insurance.  (a) The Manager will, in a
manner consistent with its normal procedures and the Servicing Standard, (i) effect
and maintain with financially sound and reputable companies general liability
insurance, insuring the Issuer and the Indenture Trustee (for the benefit of
the Noteholders) against liability for personal injury and property damage
liability, caused by, or relating to, the Managed Containers then off-lease,
with such levels of coverage and deductibles that are consistent with the
levels in effect as of the Closing Date, and (ii) have a standard form of
lease agreement that requires each lessee to maintain (1) physical damage
insurance in an amount not less than the stipulated loss value agreed to by the
lessee of the Managed Containers on lease to it, and (2) comprehensive
general liability insurance, including contractual liability, against claims
for bodily injury or death and property damage. 
The Indenture Trustee reserves the right (but shall not have the
obligation) to obtain, at the direction of the Requisite Global Majority and at
the Manager’s expense, insurance of the type described in clause (i) above
if the Manager shall fail to obtain such coverage in the specified
amounts.  However, the Indenture Trustee
will notify the Manager prior to obtaining such insurance.

 

(b)           All insurance maintained by the Manager for loss or damage of the Managed
Containers shall provide that losses, if any, shall be payable to the Issuer
and the Indenture Trustee or its designee as an additional loss payee and the
Manager shall utilize its reasonable efforts to have all checks relating to any
such losses delivered promptly to the Indenture Trustee.  The Issuer and the Indenture Trustee shall be
named as additional insureds with respect to all such liability insurance
maintained by the Manager (or on behalf of the Manager by a direct or indirect
parent company thereof).  The Manager
shall pay the premiums with respect to all such insurance and deliver to
Indenture Trustee evidence of such insurance coverage as contemplated by Section 4.1.4.  The Manager shall cause to be provided to
each of the Indenture Trustee and the Requisite Global Majority, not less than
fifteen (15) days prior to the scheduled expiration or lapse of such insurance
coverage, evidence reasonably satisfactory to the Requisite Global Majority of
renewal or replacement coverage.  The
Manager shall use its commercially reasonable efforts to have each insurer
agree, by endorsement upon the policy or policies issued by it or by
independent instrument furnished to the Indenture Trustee, that (i) it
will give each additional insured and the loss payee thirty (30) days’ prior
written notice of the effective date of any material alteration, cancellation
or non-renewal of such policy and (ii) in the event that the cancellation
of such coverage would result in a breach of this Section 3.9 by the
Manager, it will permit the Issuer and the Indenture Trustee to make payments
to effect the continuation of coverage upon notice of cancellation due to
nonpayment of premium.  Such insurance
may be effected by a policy which covers the entire Container Fleet, which
policy shall 

 

5

 

include an additional
insured and loss payee endorsement with respect to the Managed Containers in
favor of the Indenture Trustee, for the benefit of the Noteholders.

 

3.10         Books and Records; Inspection of Books and Records;
Inspection of Managed Containers; Back-up Data Tape.

 

3.10.1      The
Manager shall maintain at its offices (which, as of the Closing Date, are
located at 100 Manhattanville Road, Purchase, New York 10577-2135 USA), such
books and records (including computer records) with respect to the Managed
Containers as it maintains for the Container Fleet and the leasing thereof, including
a computer database including the Managed Containers (containing sufficient
information to generate the List of Containers and the reports required to be
delivered pursuant to this Agreement), any Lease Agreements relating thereto,
their lessees (if on-hire) or location (if off-hire) and their Net Book Value.

 

3.10.2      The
Manager shall make available to the Owner, the Indenture Trustee, the
Transition Agent and each Series Enhancer, for inspection and copying, its
books, records and reports relating to the Managed Containers and copies of all
Lease Agreements or other documents relating thereto, all in the format which
the Manager uses for its own operations. 
The Person(s) desiring to conduct any such inspection of the books,
records and reports shall provide the Manager with not less than (i) five (5) Business
Days’ notice if a Manager Default is not then continuing or (ii) one (1) Business
Day’s notice if a Manager Default shall have occurred and is then continuing,
and shall specify in such notice the matters to be addressed in such
inspection.  All such inspections shall
be conducted during normal business hours and shall not unreasonably disrupt
the Manager’s business, and, subject to the foregoing, the Owner, Indenture
Trustee, the Transition Agent or any Series Enhancer, as applicable, will
be permitted to discuss, with any Authorized Officer, Managing Officer or the
Manager’s independent accountants, the affairs, finances and accounts of the
Manager as they relate to the Managed Containers and this Agreement.  So long as no Manager Default, Early
Amortization Event or Event of Default is continuing, the Manager shall pay the
reasonable and documented costs and expenses incurred by such Person(s) in
conducting not more than one such inspection in any calendar year; provided, however, that the Manager and the Transition Agent
shall coordinate such that, so long as no Manager Default, Early Amortization
Event or Event of Default is continuing, the Manager shall not be responsible
for paying for more than one inspection in total per calendar year pursuant to
this Section 3.10.2 and Section 8.3.6 hereof.  In addition, the Manager shall pay the
reasonable and documented costs and expenses incurred by such Person(s) in
conducting any such examinations during the continuation of any of a Manager
Default, Early Amortization Event or Event of Default.

 

The Manager shall,
subject to the terms of the related Lease Agreements and depot agreements, make
the Managed Containers available for inspection to the Indenture Trustee and
the Transition Agent; provided, however,
that, so long as no Manager Default, Early Amortization Event or Event of
Default is continuing, not more than one such inspection shall occur in any
twelve month period.  So long as no
Manager Default, Early Amortization Event or Event of Default is continuing,
the Manager shall pay the reasonable and documented costs and expenses of such
Persons in conducting not more than one such inspection in any calendar year.

 

6

 

The Owner acknowledges
that the Manager uses certain software under license from unrelated third
parties and that the Manager shall grant the Owner, the Indenture Trustee, the
Transition Agent and each Series Enhancer access to the computer systems
and data contained therein, but not copies of the software itself.

 

3.10.3      The
Manager shall, in accordance with its then existing disaster recovery plan,
deliver monthly (by the tenth (10th)
Business Day of each month) to the Transition Agent electronic copy (the “Back-up
Data Tape”) of the following information, with respect to each of the Managed
Containers as of the last day of the immediately preceding month: (i) the
Container Identification Number, (ii) if then on-lease, the name of the
lessee and the date of the related Lease Agreement, (iii) if then
off-lease, the name and location of the depot in which stored, and (iv) such
other data as is described on Exhibit F hereto.  In addition, the Manager shall make the most
recent Back-up Data Tape available to the Owner, the Indenture Trustee, the
Control Party for any Series and any Series Enhancer for inspection
upon reasonable notice; provided, however,
that, so long as no Manager Default, Early Amortization Event or Event of
Default is continuing, not more than one such inspection shall be made in any
calendar year.  During the continuation
of any of a Manager Default, Early Amortization Event or Event of Default, the
Manager shall pay the reasonable and documented costs and expenses incurred by
such Person(s) in conducting all inspections made in accordance with the
provisions of this Section 3.10.3. 
Upon the termination of this Agreement pursuant to Section 9.2, the
Manager shall deliver or authorize the Transition Agent to deliver to each of
the Control Party for any Series, any applicable Person then acting as a
back-up manager to the Manager, and to the Indenture Trustee, a copy of the
most recent Back-up Data Tape containing information with respect to the
Managed Containers as of such date.

 

3.11         Back-up Management Agreement.

 

3.11.1      The
Manager shall provide the Transition Agent with prompt written notice of the
occurrence (but in any event such notice shall be delivered no later than five (5) Business
Days after the Manager shall have received notice, or become aware of, any such
occurrence) of any of the following events (each, a “Back-up Manager Event”):

 

(A)          The Leverage Ratio of TAL International Group as of the last day of any
fiscal quarter shall be in excess of 4.50 to 1.00; or

 

(B)           As of the last day of each fiscal quarter beginning with the fiscal
quarter ending December 31, 2010, the Consolidated EBIT to Consolidated
Cash Interest Expense Ratio is less than 1.30 to 1.00.

 

3.11.2      Upon
receiving written notice from the Manager that a Back-up Manager Event has
occurred, the Transition Agent shall solicit at least three (3) bids from
prospective managers to act as a back-up manager to the Manager.  The Requisite Global Majority, in
consultation with the Transition Agent, shall select the back-up manager (the “Back-up
Manager”) from among the competing bidders.

 

3.11.3      Back-Up
Management Agreement.  The Transition
Agent shall, at the direction of the Requisite Global Majority, negotiate the
terms and conditions of a back-up 

 

7

 

management agreement to be
executed by the Back-up Manager; provided, however,
the final terms and conditions of any such back-up management agreement must be
approved by the Requisite Global Majority.

 

3.11.4      Each
of the Issuer and the Manager shall cooperate with the Transition Agent in
performing its duties under this Section 3.11 and shall negotiate in good
faith to implement a Back-up Manager Agreement into the Transaction
Documents.  The Manager will work with
the Backup Manager to map and test data systems such that the Back-up Manager
will be able to begin billing using the data in the Back Up Data Tape, which it
will receive if the Manager is Terminated; provided, however,
such mapping shall be blind mapping with no customer or fleet data provided
unless a Manager Default shall have occurred and then be continuing.

 

3.12         Liens.  The Manager agrees not to create, incur,
assume or grant, or suffer to exist, directly or indirectly, any lien, security
interest, pledge or hypothecation of any kind on or concerning the Managed
Containers, the related Lease (to the extent related to a Managed Container),
title thereto or any interest therein or in this Agreement to any Person other
than the Owner, except for Permitted Encumbrances.  The Manager will promptly take or cause to be
taken such actions as may be necessary to discharge any such lien that arises
by, through or under the actions of the Manager in violation of this Section 3.12.

 

3.13         Concentration Account and Payment Instructions.  The Manager shall maintain the Concentration
Account.  The Manager shall instruct all
lessees to submit all payments on the Leases directly to the Concentration
Account (or to a post office box, a lockbox or Collection Account (as defined
in the Intercreditor Agreement) from which the applicable payment items will be
removed and, within one week after receipt, deposited in the Concentration
Account).  The Manager shall not grant
any lien or encumbrance in the Concentration Account or any Collection Account
(as defined in the Intercreditor Agreement) to any Person other than the Lien
created pursuant to the Intercreditor Agreement.

 

3.14         Identification of Funds in the Concentration
Account.  Weekly (or more frequently at
the Manager’s option) beginning with the first full calendar week following the
Closing Date, the Manager shall identify all Container Revenues, Sales Proceeds
or Casualty Proceeds received in the Concentration Account during the preceding
week as relating to either a Managed Container (including any advance payments
of rentals for future Collection Periods) or another container managed by the
Manager.  Any such Container Revenues,
Sales Proceeds or Casualty Proceeds that have been identified as relating to a
Managed Container shall be transferred by the Manager to the Trust Account in
accordance with the procedures outlined in Section 5.1 hereof.  Prior to such transfer to the Trust Account,
all Container Revenues, Sales Proceeds and Casualty Proceeds relating to a
Managed Container received, or held by, the Manager shall be deemed to be held
by the Manager in trust for the benefit of Indenture Trustee.

 

3.15         Transfer of Funds Received by the Manager.  If, notwithstanding the payment instructions
given by the Manager to a lessee in the monthly invoice, lease payments or
other amounts in respect of the Managed Containers are received directly by the
Manager, the Manager agrees to hold any such lease payments or other amounts in
trust and, within two (2) Business Days after receipt, transmit and
deliver to the Concentration Account (or a related post 

 

8

 

office box or lockbox), in the form received, all
cash, checks and other instruments or writings for the payment of money so
received by the Manager.

 

3.16         Time and Attention to Duties.  The Manager shall devote such time and
attention to the performance of its duties hereunder as is reasonably
necessary, it being understood that the Manager shall not be required to devote
all of its time or attention to the performance of such duties, it being
further understood that the Manager manages, and may in the future manage,
containers other than the Managed Containers, either for third parties or for
its own account, and may, as well, conduct business unrelated to managing
containers.  Nothing in this Agreement
shall be construed to prohibit the Manager from performing its obligations to
owners of other containers or from engaging in such (or any other) business
activity.

 

3.17         OFAC.  The Manager shall not (i) in a manner
which would violate the laws of the United States, other than pursuant to a
license issued by OFAC, lease, or consent to any sublease of, any of the
Managed Containers to any Person that is a Sanctioned Person; or (ii) derive
any of its assets or operating income from investments in or transactions with
any such Sanctioned Person.  The Manager
will, immediately upon obtaining knowledge thereof, notify the Indenture
Trustee and the Noteholder of the leasing, or subleasing, of a Managed Container
to, or other use of a Managed Container by, a Sanctioned Person.  The Manager will allow each of the Indenture
Trustee, the Deal Agent and each Noteholder to conduct, at the expense of the
Issuer, on not more than one occasion during any twelve (12) month period and
in conjunction with the examination referred to in the first paragraph of Section 3.10.2,
an audit of the screening and monitoring process employed by the Manager to
ensure compliance during the most recently completed twelve (12) month period
with the laws, rules and regulations promulgated or imposed by OFAC.  The Manager will, immediately upon obtaining
knowledge thereof, notify the Deal Agent of the leasing, or subleasing, of a
Container to, or other use of a Container by, a Sanctioned Person.

 

Section 4.               Reporting Obligations of the Manager.

 

4.1           Reports Due from the Manager.

 

4.1.1        Financial Statements.  The Manager will maintain the Owner’s
financial books and records and prepare the Owner’s financial statements.  The Manager will deliver to the Indenture
Trustee, the Rating Agencies and each Series Enhancer the financial
statements required to be delivered to the Indenture Trustee pursuant to Section 625
of the Indenture.  All such financial
statements shall be prepared in accordance with GAAP, subject to, in the case
of unaudited financial statements, the absence of footnotes, and in the
quarterly financial statements, the absence of year-end adjustments.

 

4.1.2        Manager Reports.  On or prior to each Determination Date, the
Manager shall deliver to the Owner, the Transition Agent, the Indenture Trustee
and each Hedge Counterparty, a report as to deposits into and instructions for
payments out of the Trust Account, substantially in the form of Exhibit A
hereto (each such report, the “Manager Report”), which report shall be
certified by the chief financial officer, controller, treasurer or other
financial officer of the Manager with primary responsibility for matters
arising under this Agreement or another authorized signatory acceptable to the
Requisite Global Majority.  Each such
Manager 

 

9

 

Report shall also include (a) evidence
of the Manager’s compliance with the financial covenants set forth in Sections
9.1.9, 9.1.10 and 9.1.11 hereof and compliance with each of the financial tests
the failure of which triggers a Back-up Manager Event, which calculations shall
be based on the most recently certified quarterly financial information, (b) accounts
receivable agings, (c) top-25 lessee concentrations, (d) a listing of
the number and type of Managed Containers then owned by the Issuer, (e) the
aggregate Net Book Value of the Managed Containers, (f) the aggregate
original cost of the Managed Containers, (g) utilization rates for both
the Managed Containers and the Container Fleet, (h) other information
regarding the Container Fleet upon the reasonable request of the Requisite
Global Majority or the Indenture Trustee, and (i) the calculations
required to demonstrate compliance by the Issuer with clauses (3), (4), (5) and
(6) of Section 1201 of the Indenture.

 

4.1.3        Asset Base Certificates.  On or prior to (i) each Determination
Date, and (ii) each date on which an advance of funds to the Issuer is to
be made in accordance with the terms of a Supplement, the Manager will deliver
to the Owner and the Indenture Trustee, an Asset Base Certificate certified by
the chief financial officer, controller, treasurer or other financial officer
of the Manager with primary responsibility for matters arising under this
Agreement or another authorized signatory acceptable to the Requisite Global
Majority as of the end of the month most recently ended.

 

4.1.4        Evidence of Insurance.  The Manager will provide confirmation of the
renewal of the insurance required by Section 3.9 hereof annually before
the expiration date of such insurance each year, and will forward copies of all
certificates evidencing renewal, and all notices of termination or non-renewal
of such insurance, to the Indenture Trustee and the Transition Agent promptly
after receipt.

 

4.1.5        Lessees in Container Fleet; Other Reports.  Within one hundred twenty (120) days after
the end of each fiscal year of the Manager, the Manager shall send to the
Indenture Trustee and the Transition Agent listing of all Lessees in the
Container Fleet.  The Manager shall
provide, in the format which the Manager uses for its own operations, any
reports filed by the Manager with the Securities and Exchange Commission and
any other reports and information which are reasonably requested by the Owner,
the Indenture Trustee, the Transition Agent, any Series Enhancer, each
Hedge Counterparty or the Rating Agencies provided that such reports and
information are reasonably available from the books and records of the Owner
and can be generated by the Manager’s then existing data processing system.

 

4.1.6        Independent Accountant’s Report.  The Manager shall, at its sole cost and
expense, deliver to the Issuer, the Indenture Trustee, and each Series Enhancer
a report from a firm of nationally recognized independent certified public
accountants, who may also render other services to TAL International Group or
any of its affiliates, on or before May 30th of each year (or 150 days after the end of the
Manager’s fiscal year, if other than December 31st of each year), beginning on May 30,
2011, with respect to the twelve months ended on the preceding December 31
(or other applicable fiscal year-end date) (or such other period as shall have
elapsed from the Closing Date to the date of such statement), a report (the “Accountants’
Report”) addressed to the Board of Directors of TAL International Group, to the
effect that such firm of accountants has audited the books and records of TAL
International Group, and issued its report thereon in connection with the audit
report on the consolidated financial statements of 

 

10

 

TAL International Group
and (1) such audit was made in accordance with generally accepted auditing
standards, and accordingly included such tests of the accounting records and
such other auditing procedures as such firm considered necessary in the
circumstances; (2) the firm is independent of TAL International Group
within the meaning of the Code of Professional Ethics of the American Institute
of Certified Public Accountants; and (3) specifies the results of the
application of such agreed upon procedures, as the Requisite Global Majority
shall reasonably agree from time to time, relating to (i) maintenance of
the separateness of the Issuer for bankruptcy remoteness purposes and
(ii) three selected Manager Reports and Asset Base Certificates delivered
during the preceding year, to achieve the objectives specified on Exhibit D
hereto.

 

4.1.7        Direction of Investments.  The Manager in its sole discretion and in
accordance with its normal business practices shall direct the Indenture
Trustee, in accordance with the terms of the Indenture, as to which Eligible
Investments it shall invest funds on deposit in the Trust Account, the
Restricted Cash Account and each Series Account.

 

4.1.8        Interest Rate Hedge Agreements.  When required by Section 628 of the
Indenture, the Manager shall arrange for the Owner to enter into Interest Rate
Hedge Agreements (which Interest Rate Hedge Agreements must be in form and
substance reasonably satisfactory to the Requisite Global Majority) that comply
with the provisions of that Section.

 

4.1.9        Back-up Data Tape.  The Manager shall deliver the Back-up Data
Tape in accordance with the provisions of Section 3.10.3 hereof.

 

4.2           Manager Advances.  The Manager may, at its option, if the funds
then on deposit in the Trust Account, any Series Account or the Restricted
Cash Account are insufficient to make any payments due on the next succeeding
Payment Date pursuant to Section 302 of the Indenture, remit to the Trust
Account by 1:00 p.m. New York time on each Determination Date, any amount
of funds (a “Manager Advance”); provided, that (A) the
Manager deems such Manager Advance to be recoverable from delinquent rental
payments owing with respect to Leases of the Managed Containers and (B) unless
otherwise consented to in writing in each instance by the Indenture Trustee
(acting at the direction of the Requisite Global Majority); the aggregate
amount of all Manager Advances outstanding at any time shall not exceed fifty
percent (50%) of the outstanding balance of all Lease receivables which are
less than ninety (90) days delinquent. 
Under no circumstances shall this Section 4.2 be interpreted as
obligating the Manager to make any Manager Advance.  The Manager shall be reimbursed for Manager
Advances on each Payment Date from amounts on deposit in the Trust Account,
subject to the priority of payments set forth in Sections 302 and 806 of the
Indenture.

 

Section 5.               Deposits to Trust Account; Payment of Management Fee.

 

5.1           Deposits.

 

5.1.1        Weekly Deposits to Trust Account.  On or before the last Business Day in New
York of each calendar week beginning with the first full calendar week
following the week of the Closing Date, the Manager shall cause to be
transferred from the Concentration Account to the Trust Account an amount equal
to the excess (if any) of (x) the sum of (A) the Manager’s 

 

11

 

good faith estimate of the
Container Revenues for the Managed Containers received during the immediately
preceding calendar week (including any customer advance payments) and (B) subject
to Section 311 of the Indenture, the Manager’s good faith estimate of the
Sales Proceeds and Casualty Proceeds received during the immediately preceding
calendar week, over (y) the Manager’s good faith estimate of Direct
Operating Expenses for the Managed Containers accrued during the immediately
preceding calendar week (the excess of (x) over (y), the “Estimated Net
Operating Income”).  Prior to such
transfer or deposit, all Container Revenues, Sales Proceeds and Casualty
Proceeds received, or held by, the Manager with respect to the Managed
Containers shall be deemed to be held by the Manager in trust for the benefit
of the Indenture Trustee.

 

On or before each
Determination Date, the Manager shall determine the excess (if any) of (x) the
aggregate amount of Container Revenues, Sales Proceeds and Casualty Proceeds
for the Managed Containers actually received during the immediately preceding
Collection Period over (y) the aggregate amount of Direct Operating
Expenses accrued during such Collection Period and to be paid in the current or
a subsequent Collection Period (the excess of (x) over (y), the “Actual
Net Operating Income”).  If the Actual
Net Operating Income for such Collection Period exceeds the Estimated Net
Operating Income for such Collection Period, then the Manager will cause to be
transferred from the Concentration Account to the Trust Account on such
Determination Date funds in an amount equal to such excess.  However, if the Estimated Net Operating
Income for such Collection Period exceeds the Actual Net Operating Income for
such Collection Period, then the Manager shall indicate so on that month’s
Manager Report and the amount of such excess (such excess, the “Excess Deposit”)
will be distributed to the Manager on the immediately succeeding Payment Date.

 

5.2           Compensation of Manager.

 

5.2.1        Management Fee.  As compensation to the Manager for the performance
of its services hereunder, the Owner shall pay to the Manager the Management
Fee for the immediately preceding Collection Period in arrears on each Payment
Date (or, in the case of the first payment of the Management Fee, for the
payment thereof, commencing on the Closing Date).  Subject to the terms and conditions of the
Indenture, the Management Fee shall be payable to the Manager (to the extent
not previously withheld in accordance with the terms hereof) from amounts on
deposit in the Trust Account to the extent monies are available for the payment
thereof in accordance with the provisions of Section 302(c) of the
Indenture;  provided,
however, that, as long as no Manager Default shall have occurred and
been continuing for thirty (30) days, the Manager shall be entitled to withhold
in advance, at periodic intervals more frequent than each Payment Date, the pro rata portion of the Management Fee owing to the Manager
for such interval from the actual Container Revenues, Sales Proceeds or
Casualty Proceeds received by it from lessees or sublessees.  For the sake of clarity, to the extent the
Manager has withheld amounts from the actual Container Revenues, Sales Proceeds
or Casualty Proceeds received by it from lessees or sublessees, then such
amounts shall be deducted from the Management Fee owing to the Manager from the
Owner hereunder.  On each Payment Date,
the Manager and the Owner shall determine whether the amounts actually paid to
or withheld by the Manager during the preceding calendar month pursuant to the
terms of this Section 5.2.1 accord with the Management Fee owing under
this Agreement for such month and shall arrange that any excess or deficiency
promptly be corrected (i.e., in the case of an overpayment to the Manager, 

 

12

 

the Manager shall promptly
repay such overpayment, and in the case of an underpayment to the Manager such
underpayment shall be added to the Management Fee payable to the Manager on
such Payment Date). Upon any resignation or termination of the Manager in
accordance with the terms of this Agreement and the other Transaction
Documents, such resigning or terminated Manager shall not be entitled to
receive any Management Fee accruing on or after the effective date of such termination
or resignation and such resigning or terminated Manager shall immediately remit
to the Trust Account any portion of the Management Fee deducted in advance by
such resigning or terminated Manager which did not accrue as of the date
following such termination or resignation on which a replacement Manager has
assumed the responsibilities of the resigning or terminated Manager.

 

5.2.2        Business Day.  Notwithstanding anything to the contrary
contained herein, if any date on which a payment becomes due hereunder is not a
Business Day, then such payment may be made on the next succeeding Business Day
with the same force and effect as if made on such scheduled date.

 

5.2.3        No Set-Off, Counterclaim, etc.  The Manager’s obligation under this Agreement
to transfer to or to deposit any amount to the Trust Account shall (subject to
the withholding of the Management Fee as contemplated by Section 5.2.1
hereof) be absolute and unconditional and all payments thereof shall be made
free and clear of and without any deduction for or on account of any set-off or
counterclaim or any circumstance, recoupment, defense or other right which the
Manager may have against the Owner or any other Person for any reason
whatsoever (whether in connection with the transactions contemplated hereby or
any other transactions), including without limitation, (i) any defect in
title, condition, design or fitness for use, of, or any damage to or loss or
destruction of, any Managed Container, (ii) any insolvency, bankruptcy,
moratorium, reorganization or similar proceeding by or against the Manager or
any other Person, or (iii) any other circumstance, happening or event
whatsoever, whether or not unforeseen or similar to any of the foregoing.

 

5.2.4        Manner of Payment.  All payments hereunder shall be made in
United States Dollars by wire transfer of immediately available funds prior to
2:00 P.M. prevailing Eastern Time, on the date of payment.

 

Section 6.               Term.

 

6.1.1        Term.  The Term of this Agreement shall commence on
the date hereof and shall end on the date on which all Outstanding Obligations
have been repaid, unless earlier terminated in accordance with the provisions
hereof.

 

6.1.2        Resignation by Manager.  The Manager may not resign from its
obligations and duties as Manager hereunder, except (i) with the prior
written consent of Owner and the Requisite Global Majority or (ii) upon a
determination by the Manager that the performance by Manager of its duties
under this Agreement is no longer permissible under Applicable Law, which
determination shall be evidenced by an Opinion of Counsel, in form and
substance reasonably satisfactory to Owner and the Requisite Global Majority,
to such effect delivered to the Indenture Trustee, the Transition Agent and
each Series Enhancer.  No such
resignation shall, to the extent consistent with Applicable Law, become
effective until a 

 

13

 

replacement Manager has
assumed the responsibilities of the resigning Manager in accordance with the
terms of this Agreement, Section 405 of the Indenture and the other
Transaction Documents.

 

Section 7.               Intercreditor Agreement.

 

(a)           TAL will use commercially reasonable efforts to join the Issuer and the
Indenture Trustee as parties to the Intercreditor Agreement.

 

(b)           To the extent that neither the Indenture nor this Agreement is considered
to be an “Equipment Loan Agreement” within the meaning of the Intercreditor
Agreement, the Manager hereby extends to the Owner and the Indenture Trustee
the benefit of the same covenants and rights set forth in Section 5 of the
Intercreditor Agreement.

 

Section 8.               Representations and Warranties; Covenants.

 

8.1           Manager Representations.  The
Manager represents and warrants to the Owner, the Indenture Trustee and each Series Enhancer
that:

 

8.1.1        The
Manager is a corporation duly organized and validly existing under the laws of
the State of Delaware and is duly qualified and is authorized to do business
and is in good standing (or its equivalent) in all jurisdictions where it is
required by Applicable Law to be so qualified (or its equivalent) and has all
licenses, permits, charters and registrations necessary for the operation of
its container management business, except for any such jurisdiction where the
failure to be so qualified or for any licenses the failure to hold which,
either individually or in the aggregate, would not reasonably be expected to
have a Material Adverse Effect.

 

8.1.2        The
Manager has the requisite power and authority to enter into and perform its
obligations under this Agreement, and all requisite corporate authorizations
have been given for it to enter into this Agreement and to perform all the
matters envisaged hereby, this Agreement has been duly executed and delivered
and constitutes the valid, legally binding and enforceable obligation of the
Manager, subject to bankruptcy, insolvency, moratorium, reorganization and
other laws of general applicability relating to or affecting creditors’ rights
and to general equity principles.

 

8.1.3        The
Manager has not breached its certificate of incorporation or by-laws or any
other agreement to which it is a party or by which it is bound in the course of
conduct of its business and corporate affairs and has not breached any
applicable laws and regulations, except for such breaches which would not have
a materially adverse effect on the Manager’s ability to perform its obligations
under this Agreement.

 

8.1.4        There
are no Proceedings or investigations to which the Manager or any of its
Affiliates is a party pending or, to the Manager’s knowledge, threatened,
before any court, regulatory body, administrative agency or other tribunal or
governmental instrumentality (A) asserting the invalidity of this
Agreement or any other Transaction Document, (B) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement or any
other Transaction Document or (C) seeking any determination or ruling that
is reasonably likely to materially and adversely affect the performance by the
Manager of its obligations under, or the 

 

14

 

validity or enforceability
of, this Agreement or any other Transaction Document to which it is a party.

 

8.1.5        The
execution, delivery and performance of the transactions contemplated by and the
fulfillment of the terms of this Agreement and the other Transaction Documents
will not conflict with, result in any breach of any of the terms and provisions
of, or constitute (with or without notice or lapse of time or both) a default
under, the organizational documents of the Manager, or any material term of any
indenture, agreement, mortgage, deed of trust, or other instrument to which
Manager is a party or by which it is bound, or result in the creation or
imposition of any Lien upon any of its properties pursuant to the terms of any
such indenture, agreement, mortgage, deed of trust, or other instrument, or
violate any law or any order, rule, or regulation applicable to Manager of any
court or of any federal or state regulatory body, administrative agency, or
other Governmental Authority having jurisdiction over Manager or any of its
properties, in each case, other than any conflict, breach, default, Lien, or
violation that would not reasonably be expected to result in a Material Adverse
Change.

 

8.1.6        The
Manager shall take all actions as may be necessary to perform the Issuer’s
obligations under Section 604 of the Indenture.

 

8.1.7        The
Manager will fulfill all of its obligations as lessor under any Lease Agreement
to which a Managed Container is subject except where any such nonfulfillment
would not reasonably be expected to materially and adversely affect the rights
of the Owner under such Lease.  The
Manager shall use commercially reasonable efforts to perform all of the Owner’s
duties and obligations under the Transaction Documents to which the Owner is a
party; provided, however, that nothing
contained herein shall be construed as an express or implied guaranty by the
Manager of the Notes or any other Outstanding Obligation incurred by the Owner.

 

8.1.8        Promptly,
but in any case within seven (7) Business Days of an Authorized Officer
becoming aware of a Manager Default, Early Amortization Event or an Event of
Default, and which, in each case, has not been waived in writing by the
Requisite Global Majority, the Manager shall deliver to the Owner, the
Transition Agent, the Indenture Trustee and each Series Enhancer a written
notice describing the nature of such event and period of existence and, in the
case of a Manager Default, the action the Manager is taking or proposed to take
with respect thereto.

 

8.1.9        Since
December 31, 2009, there has been no Material Adverse Change in the
financial condition of the Manager.

 

8.1.10      The
Manager will operate the Managed Containers so as not knowingly cause a
violation of the Trading With the Enemy Act (50 U.S.C. § 1 et seq., as
amended) (the “Trading With the Enemy Act”) or any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) (the “Foreign Assets Control Regulations”) or any
enabling legislation or executive order relating thereto (which for the
avoidance of doubt shall include, but shall not be limited to (a) Executive
Order 13224 of September 21, 2001 Blocking Property and Prohibiting Transactions
With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg.
49079 (2001)) (the 

 

15

 

“Executive Order”) and (b) the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)).  Furthermore, none of the Manager or its
Affiliates (i) is or will become a “blocked person” as described in the
Executive Order, the Trading With the Enemy Act or the Foreign Assets Control
Regulations or (ii) engages or will engage in any dealings or
transactions, or be otherwise associated, with any such “blocked person.”

 

8.1.11      The
credit and collection policy used by the Manager as in effect on the Closing
Date (which policy also addresses the criteria under which a lessee is allowed
to self-insure for property and liability risks) is attached as Exhibit C
hereto.  The credit and collection policy
used by the Manager is subject to modification from time to time at the discretion
of the Manager.  The “Credit and
Collection Policy” shall mean the credit and collection policy used by the
Manager as modified by the Manager from time to time.

 

8.1.12      The
depreciation policy as in effect on the Closing Date used in the calculation of
the Asset Base for the purposes of the Transaction Documents is attached as Exhibit E
hereto.

 

8.2           Owner Representations.  The
Owner represents and warrants to the Manager:

 

8.2.1        The
Owner is a limited liability company duly organized and validly existing under
the laws of Delaware;

 

8.2.2        The
Owner has the requisite power and authority to enter into and perform its
obligations under this Agreement and all requisite limited liability company
authorizations have been given for it to enter into this Agreement and to
perform all the matters envisaged hereby, this Agreement has been duly executed
and delivered by the Owner and constitutes the valid, legally binding and
enforceable obligation of the Owner, subject to bankruptcy, insolvency,
moratorium, reorganization and other laws of general applicability relating to
or affecting creditors’ rights and to general equity principles; and

 

8.2.3        The
Owner has not breached its limited liability company agreement or any other
agreement to which it is a party or by which it is bound in the course of
conduct of its business and corporate affairs and has not breached any
applicable laws and regulations of Delaware in such manner as would in any case
have a materially adverse effect on its ability to perform its obligations
under this Agreement.

 

8.2.4        Since
its formation, there has been no Material Adverse Change in the financial
condition of the Owner.

 

8.3           Covenants of the Manager.

 

8.3.1        Location of Books and Records.  The Manager shall not change the location at
which the Owner’s books and records are maintained unless (i) the Manager
shall have given the Indenture Trustee, the Transition Agent and each Series Enhancer
at least thirty (30) days’ prior written notice thereof and (ii) the
Manager shall cause to be filed any necessary registration of charges or
documents of similar import necessary to continue the Indenture Trustee’s
security interest in the Collateral.

 

16

 

8.3.2                        Liens.  Except for the Lien created pursuant to the
Contribution and Sale Agreement and Permitted Encumbrances: (a) Manager
agrees not to create, incur, or grant, directly or indirectly, any lien,
security interest, pledge or hypothecation of any kind on or concerning (i) its
rights under this Agreement or (ii) the Managed Containers or any interest
therein; and (b) Manager shall promptly take, or cause to be taken, such
action as may be necessary to discharge any such lien arising by, through or
under the Manager.

 

8.3.3                        UNIDROIT Convention.  The Manager will comply with the terms and
provisions of the UNIDROIT Convention on International Interests in Mobile
Equipment or any other internationally recognized system for recording
interests in or liens against shipping containers at the time that such
convention is adopted for containers.

 

8.3.4                        Identification of Gross Lease Revenues and Direct Operating Expense; Transfer of Gross Lease Revenues.  The Manager will establish and maintain such
procedures as are necessary for determining and for identifying Container
Revenues and Direct Operating Expenses to a specific Managed Container.  Notwithstanding the foregoing, Manager shall
have the right to allocate various indirect overhead expenses among containers
in the Container Fleet (including the Managed Containers) in any way it deems
appropriate as long as such allocation is non-discriminatory, fair and
equitable, after giving due recognition to the cost, age and other factors
relevant to the Managed Containers as compared to other containers in the
Container Fleet.

 

8.3.5                        Compliance with Credit and Collection Policy.  The Manager will comply in all
material respects with the Credit and Collection Policy in regard to the
origination of, and amendments and modifications to, Leases of Managed
Containers.  The Manager shall not amend
the Credit and Collection Policy in any respect which would materially and
adversely affect the Noteholders without the prior written consent of the
Requisite Global Majority in each instance. 
The Manager shall promptly provide the Owner, the Transition Agent and
the Indenture Trustee with a copy of all amendments to the Credit and
Collection Policy.

 

8.3.6                        Inspections.                              The Manager shall, upon reasonable prior notice, allow the Transition
Agent, each Series Enhancer and each Hedge Counterparty to inspect, under
guidance of officers of the Manager, the Manager’s facilities during normal
business hours.  So long as no Manager
Default, Early Amortization Event or Event of Default is continuing, the
Manager shall pay the reasonable and documented costs and expenses incurred by
such Person(s) in conducting not more than one such inspection in any
calendar year; provided, however, that the
Manager and such designee selected by the Requisite Global Majority shall
coordinate such that, so long as no Manager Default, Early Amortization Event
or Event of Default is continuing, the Manager shall not be responsible for
paying for more than one inspection in total per calendar year pursuant to this
Section 8.3.6 and Section 3.10 hereof.  In addition, the Manager shall pay the
reasonable and documented costs and expenses incurred by such Person(s) in
conducting any such examinations during the continuation of any of a Manager
Default, Early Amortization Event or Event of Default.

 

8.3.7                        Container Management System.  Without the prior written consent of the
Indenture Trustee, acting at the direction of the Requisite Global Majority,
the Manager agrees that it will not grant to any Person, or permit any Person
to obtain, a Lien (other than items listed 

 

17

 

in clauses (i), (ii),
(iii), (iv) or (v) of the definition of “Permitted Encumbrances” (as
determined as though the Container Management System were deemed “Collateral”
for the purposes of the definition of “Permitted Encumbrance”)) over the
Container Management System.

 

8.3.8                        Rating Agency Notices.  Subject to the application of applicable law,
the Manager shall promptly deliver a copy of any written notice concerning the
Owner’s credit rating received by it from any Rating Agency to the Indenture
Trustee, the Transition Agent and each Series Enhancer.

 

Section 9.                                            Manager Default.

 

9.1                                 Manager Default.  Each of
the following is a Manager Default:

 

9.1.1                        The Manager shall fail to make any deposits of Container Revenues, Sales
Proceeds, Casualty Proceeds or any other amounts due and payable under this
Agreement to the Trust Account within one (1) Business Day after the date
such deposit is due; provided, that
if such failure to make a deposit shall result from administrative failure
beyond the control of the Manager, the Manager shall have two (2) additional
Business Days to cure such failure before such failure shall constitute a
Manager Default.

 

9.1.2                        The Manager shall fail (A) to deliver any report required to be
delivered to the Indenture Trustee pursuant to the terms of Sections 4.1.2 or
4.1.3 hereof such failure shall continue unremedied for three (3) Business
Days or (B) in any material respect to perform the covenant of the Manager
to deliver financial statements set forth in the second sentence of Section 4.1.1
and such failure shall continue unremedied for thirty (30) days after the
earlier of the date (x) on which there has been given to the Manager, by
the Indenture Trustee, the Transition Agent, any Series Enhancer or any
Noteholder, a written notice specifying such default or breach and requiring it
to be remedied and (y) on which any Authorized Officer of the Manager
shall have knowledge of such default or breach; 
provided, however, that (x) if the
reason for such failure is primarily attributable to changes in accounting
principles or interpretations or the application of the same, (y) such
changes are not related to the assets of the Issuer and (z) no Manager
Default then exists under clauses (9) through (12) below, then such
failure shall not constitute a Manager Default under this Section 9.1.2
unless such failure materially and adversely affects the interests of any
Noteholder or any Series Enhancer (if such Series Enhancer is then
the Control Party for a Series of Outstanding Notes or shall have made an
unreimbursed payment pursuant to its Enhancement Agreement);

 

9.1.3                        The Manager shall fail to (A) deliver any report required to be delivered
to the Indenture Trustee pursuant to the terms hereof or of any other
Transaction Document (which is not otherwise addressed in Section 9.1.2)
and such failure shall continue unremedied for thirty (30) days, or (B) perform
or observe, or cause to be performed or observed, in any material respect any
other covenant or agreement contained herein or in any other Transaction
Document (including in its capacity as Seller) (which is not otherwise
addressed in this Section 9.1), which failure materially and adversely
affects the interests of the Noteholders or (if it is then the Control Party
for a Series of Outstanding Notes or shall have made an unreimbursed
payment pursuant to its Enhancement Agreement) any Series Enhancer, and
such failure, if capable of remedy, shall continue unremedied for a period of
thirty (30) days after earlier of the date (x) on 

 

18

 

which there has been given
to the Manager, by the Indenture Trustee, the Transition Agent, any Series Enhancer
or any Noteholder, a written notice specifying such default or breach and
requiring it to be remedied and (y) on which any Authorized Officer of the
Manager shall have knowledge of such default or breach.

 

9.1.4                        Any representation or warranty made by the Manager in this Agreement or
any other Transaction Document (including in its capacity as Seller), or in any
certificate, report or financial statement delivered by it pursuant hereto or
thereto proves to have been untrue in any material respect when made, such
breach materially and adversely affects the interests of the Noteholders or (if
it is then the Control Party for a Series of Outstanding Notes or shall
have made an unreimbursed payment pursuant to its Enhancement Agreement) any Series Enhancer,
and such breach, if capable of remedy, shall continue unremedied for a period
of thirty (30) days after the earlier of the date (x) on which there has
been given to the Manager, by the Indenture Trustee, the Transition Agent, any Series Enhancer
or any Noteholder, a written notice specifying such default or breach and
requiring it to be remedied and (y) on which any Authorized Officer of the
Manager shall have knowledge of such default or breach.

 

9.1.5                        TAL ceases to be engaged in the container leasing or management business.

 

9.1.6                        The Manager shall commence a voluntary case concerning itself under the
Bankruptcy Code; or an involuntary case is commenced against the Manager or any
of its Subsidiaries and the petition is not controverted within 10 days, or is
not dismissed within 60 days, after commencement of the case; or a custodian
(as defined in the Bankruptcy Code) is appointed for, or takes charge of, all
or substantially all of the property of the Manager; or the Manager commences
any other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to the Manager and
such proceeding remains undismissed for a period of 60 days; or the Manager is
adjudicated insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or the Manager suffers any
appointment of any custodian or the like for it or any substantial part of its
property to continue undischarged or unstayed for a period of 60 days; or the
Manager makes a general assignment for the benefit of creditors; or any action
is taken by the Manager for the purpose of effecting any of the foregoing;

 

9.1.7                        Except as permitted by Sections 2 and 13 hereof, Manager assigns or
attempts to assign its interest under this Agreement.

 

9.1.8                        A Change of Control shall have occurred with respect to the Manager.

 

9.1.9                        The Leverage Ratio of TAL International Group as of the last day of any
fiscal quarter shall be in excess of 4.75 to 1.00.

 

9.1.10                  As of the last day of each fiscal quarter beginning with the fiscal
quarter ending September 30, 2010, the Consolidated EBIT to Consolidated
Cash Interest Expense Ratio is less than 1.10 to 1.00.

 

19

 

9.1.11                  As of the last day of each fiscal quarter beginning with the fiscal
quarter ending September 30, 2010, the Consolidated Tangible Net Worth of
TAL International Group is less than the sum of (i) $321,351,326; plus (ii) an
amount equal to fifty percent (50%) of the cumulative sum of the aggregate net
income of TAL International Group and its Consolidated Subsidiaries (as such
term is defined in the Credit Agreement) on a consolidated basis, determined in
accordance with GAAP for the period commencing on January 1, 2006 and
terminating on such date of determination.

 

9.1.12                  Any of the Manager, TAL International Group, the Borrower (as such term
is defined in the Credit Agreement) or any Restricted Subsidiary (as such term
is defined in the Credit Agreement) fails to make any payment when due (beyond
the applicable grace or cure period with respect thereto, if any) or defaults
in the observance or performance (beyond the applicable grace or cure period
with respect thereto, if any) of any payment obligation, or any other agreement
or covenant with respect to the Indebtedness that, individually or in the
aggregate for all such Persons, exceeds Twenty Million Dollars ($20,000,000)
and, such condition is not remedied by a permanent and unconditional cure or
waiver of such default within thirty (30) days.

 

9.1.13                  One or more judgments or decrees shall be entered against TAL
International Group, the Borrower (as such term is defined in the Credit
Agreement) or any of its Restricted Subsidiaries (as such term is defined in
the Credit Agreement) (other than a Special Purpose Vehicle (as such term is
defined in the Credit Agreement)) involving a liability (to the extent not paid
when due or covered by a reputable and solvent insurance company (with any
portion of any judgment or decree not so covered to be included in any
determination hereunder)) equal to or in excess of Twenty Million Dollars
($20,000,000) for all such judgments and decrees and all such judgments or
decrees shall either be final and non-appealable or shall not have been
vacated, discharged or stayed or bonded pending appeal for any period of 30
consecutive days.

 

9.1.14                  This Agreement shall at any time cease to be the legal, valid and binding
obligation of the Manager, enforceable in accordance with its terms.

 

9.1.15                  The Manager shall fail to deliver to the Transition Agent the Back-up
Data File in accordance with Section 3.10.3 hereof, and such failure, if
capable of remedy, shall continue unremedied for a period of three (3) days
after earlier of the date (x) on which there has been given to the
Manager, by the Indenture Trustee, the Transition Agent, any Series Enhancer
or any Noteholder, a written notice specifying such default or breach and
requiring it to be remedied and (y) on which any Authorized Officer of the
Manager shall have knowledge of such default or breach.

 

The occurrence of a
Manager Default shall constitute an “Actionable Default” under the
Intercreditor Agreement for so long as Manager Default is continuing.  A Manager Default may be waived in a written
instrument executed by the Requisite Global Majority in each such
instance.  Any such waiver of a Manager
Default shall not be construed as a waiver of any subsequent Manager
Default.  No delay by the Requisite
Global Majority or any of its assigns, shall constitute any such waiver or
prejudice the Requisite Global Majority in exercising any right, power or
privilege arising out of such Manager Default.

 

20

 

9.2                                 Remedies.  If a Manager Default shall have occurred and
be continuing, and any Notes are then Outstanding, the Indenture Trustee,
acting at the direction of the Requisite Global Majority and in the Requisite Global
Majority’s discretion, shall have the right (upon written notice (a “Manager
Termination Notice”) to the Manager, the Issuer, the Transition Agent, each
Interest Rate Hedge Counterparty and the Rating Agencies), in addition to other
rights or remedies that the Issuer or its assignee may have under any
Applicable Law or in equity to: (i) terminate this Agreement,
(ii) appoint a replacement Manager selected by the Requisite Global
Majority to manage the Managed Containers, (iii) take control of the Managed
Containers wherever located, subject to the rights of lessees under Lease
Agreements to which any of the Managed Containers shall at the time be subject
or to appoint a replacement Manager to manage the Managed Containers,
(iv) appoint an independent auditor of national reputation and mutually
acceptable to the Issuer and the Requisite Global Majority (the “Verification
Auditor”) to verify that all prior Manager Reports and Asset Base Certificates
prepared by the Manager are in accordance with this Agreement and/or (v) exercise
any other remedies specifically set forth in this Agreement, the Indenture and
the other Related Documents that are exercisable while a Manager Default is
continuing.  Notwithstanding such
termination, until the Manager is notified of the appointment of a replacement
manager and the replacement manager has assumed such responsibility, the
Manager shall (i) continue to manage the Managed Containers and the Owner’s
business, and deposit into the Trust Account all Container Revenues, Sales
Proceeds, Casualty Proceeds and other amounts, and submit all reports due
hereunder and perform all other services required hereunder, all in accordance
with this Agreement and (ii) not make any disbursement of funds from the
Concentration Accounts (whether to the Owner or any other Person) until the
Verification Auditor has verified the allocation of such amounts.

 

9.3                                 Transfer of Managed Containers.  Upon any termination of this Agreement
pursuant to Section 9.2, the Manager shall cooperate with the Owner, the
Indenture Trustee, the Transition Agent and the Requisite Global Majority in
transferring management of the Managed Containers as provided in the Indenture,
including, but not limited to making available all books and records (including
computer systems and data contained therein) pertaining to the Manager’s
activities hereunder, providing access to, and cooperating in the transfer of,
information from the Manager’s computer system to the Owner’s or its designee’s
system, promptly notifying lessees of the termination of management of the
Managed Containers by the Manager and assumption of management by the Owner or
its designee, depositing funds belonging to the Owner but not yet in the Trust
Account to such account as designated by the Owner or its assignee, executing
assignments of interests in Lease Agreements pertaining to the Managed
Containers and taking any other action as may be reasonably requested by the
Owner or its assignee to ensure the orderly assumption of management of the
Managed Containers by the Owner or its designee.  During such transition period, the outgoing
Manager shall continue to provide notices pursuant to Section 8.1.8 and Section 6.19
of the Indenture that relate to occurrences of which it is aware.

 

9.4                                 Power of Attorney.  The Manager hereby irrevocably constitutes
and appoints the Indenture Trustee, with full power of substitution (such
appointment being coupled with an interest), as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of the Manager and in the name of the Manager or in its own name, for the
purpose of carrying out the terms of this Agreement, to take (subject to the
limitations set forth below) any and all appropriate action and to execute any
and all documents and instruments which may be necessary or desirable to
accomplish the purposes of this Agreement, and, without 

 

21

 

limiting the generality of the foregoing, the
Manager hereby gives the Indenture Trustee the power and right, on behalf of
the Manager, without notice to or assent by the Manager (subject to the
limitation set forth below), to do any or all of the following:

 

(i)                                     So long as a Manager Default has occurred and
is continuing and a Manager Termination Notice has been delivered in accordance
with the terms hereof, at any time, in the name of the Manager or its own name,
or otherwise, to take possession of and endorse and collect any checks, drafts,
notes, acceptances or other instrument, general intangible or contract or any
other Collateral and to file any claim or to take any other action or
proceeding in any court of law or equity or otherwise deemed appropriate by the
Indenture Trustee, the Transition Agent or any Series Enhancer for the purpose
of collecting any and all such moneys due under any account, instrument,
general intangible or contract with respect to the Managed Containers and the
other Collateral whenever payable;

 

(ii)                                  So long as a Manager Default has occurred and
is continuing and a Manager Termination Notice has been delivered in accordance
with the terms hereof, at any time, to enter and use the premises of the
Manager and make use of the Manager’s computer database, software system and
all other books and records relating to the Managed Containers and the other
Collateral.  The Manager hereby grants,
and agrees to grant from time to time, to the Indenture Trustee a non-exclusive
royalty-free license (such license not to be exercised until, and only so long
as, a Manager Default has occurred and is continuing and a Manager Termination
Notice has been delivered in accordance with the terms hereof) of all its
intellectual property rights arising in connection with the software system
used by the Manager in connection with the Managed Containers, such license to
be irrevocable until the later of (a) the last date on which any Note was
Outstanding or (b) the date on which all amounts owed to the Indenture
Trustee, the Noteholders and any Series Enhancer pursuant to the terms of
the Indenture and the related Enhancement Agreement shall have been paid in
full, subject, in the case of intellectual property rights held under license
by the Manager, to the prior consent of the relevant licensor, if required,
which consent the Manager undertakes to use its reasonable efforts forthwith to
obtain at its own expense on terms reasonably acceptable to the Indenture
Trustee and any Series Enhancer so long as a Manager Default has occurred
and is continuing and a Manager Termination Notice has been delivered in
accordance with the terms hereof; and

 

(iii)                               So long as an Event of Default or Manager
Default has not occurred, upon the failure of the Manager to comply with the
provisions of Section 8.1.6 (and so long as an Event of Default or Manager
Default has occurred, whether or not the Manager has complied with the
provisions of Section 8.1.6), to execute and deliver those agreements,
instruments, documents and papers (including, without limitation, deeds of
trust) as the Manager may otherwise be required to file in accordance with the
provisions of Section 8.1.6 hereof.

 

The Manager hereby
ratifies and confirms and agrees to ratify and confirm whatever any such
attorney shall do or propose to do in the exercise or purported exercise of all
or any of the powers, authorities and discretion referred to in this Section.

 

9.5                                 Owner Power of Attorney.  The
Owner hereby irrevocably constitutes and appoints the Indenture Trustee, with
full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of the Owner and in the 

 

22

 

name
of the Owner or in its own name, for the purpose of carrying out the terms of
this Agreement and the other Transaction Documents to which the Owner is a
party, to take (subject to the limitations set forth below) any and all
appropriate action and to execute any and all documents and instruments which
may be necessary or desirable to accomplish the purposes of this Agreement,
and, without limiting the generality of the foregoing, the Owner hereby gives
the Indenture Trustee the power and right, on behalf of the Owner, without
notice to or assent by the Owner (subject to the limitation set forth below),
to do any or all of the following:

 

(i)                                     So long as a Manager Default has occurred and
is continuing and a Manager Termination Notice has been delivered in accordance
with the terms hereof, at any time, in the name of the Owner or its own name,
or otherwise, to take possession of and indorse and collect any checks, drafts,
notes, acceptances or other instrument, general intangible or contract or any
other Collateral and to file any claim or to take any other action or
proceeding in any court of law or equity or otherwise deemed appropriate by the
Indenture Trustee or any Series Enhancer for the purpose of collecting any
and all such moneys due under any account, instrument, general intangible or
contract with respect to the Managed Containers and the other Collateral whenever
payable;

 

(ii)                                  So long as an Event of Default or Manager
Default has occurred and is continuing, at any time, to enter and use the
premises of the Owner and make use of the Owner’s computer database, software
system and all other books and records relating to the Managed Containers and
the other Collateral.  The Owner hereby
grants, and agrees to grant from time to time, to the Indenture Trustee a
non-exclusive royalty-free license (such license not to be exercised until, and
only so long as, a Manager Default has occurred and is continuing and a Manager
Termination Notice has been delivered in accordance with the terms hereof) of
all its intellectual property rights arising in connection with the software
system used by the Owner in connection with the Managed Containers, such
license to be irrevocable until the later of (a) the last date on which
any Note was Outstanding or (b) the date on which all amounts owed to any Series Enhancer
pursuant to the terms of the Indenture and any related Enhancement Agreement
shall have been paid in full, subject, in the case of intellectual property
rights held under license by the Owner, to the prior consent of the relevant
licensor, if required, which consent the Owner undertakes to use its reasonable
efforts forthwith to obtain at its own expense on terms reasonably acceptable
to the Indenture Trustee, the Transition Agent and any Series Enhancer;
and

 

(iii)                               So long as an Event of Default or Manager
Default has not occurred, upon the failure of the Manager to comply with the
provisions of Section 8.1.6 (and so long as an Event of Default or Manager
Default has occurred, whether or not the Manager has complied with the
provisions of Section 8.1.6), to execute and deliver those agreements,
instruments, documents and papers (including, without limitation, deeds of
trust) as the Owner (or the Manager, on behalf of the Owner) may otherwise be
required to file in accordance with the provisions of Section 8.1.6 hereof
or in accordance with Section 604 of the Indenture.

 

Section 10.                                      No Partnership.

 

Except as otherwise
provided herein, the Manager’s activities taken on behalf of the Owner
hereunder will be taken solely as manager of the Managed Containers.  The parties hereto 

 

23

 

expressly recognize and
acknowledge that this Agreement is not intended to create a partnership, joint
venture or other entity between the Manager and the Owner.

 

Section 11.                                      No Warranties.

 

THE MANAGED CONTAINERS
ARE BEING DELIVERED BY THE OWNER TO THE MANAGER “AS IS”.  THE OWNER MAKES NO REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE CONDITION, MERCHANTABILITY
OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE MANAGED CONTAINERS, THE ABSENCE OF
LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, THE ABSENCE OF
OBLIGATIONS BASED ON STRICT LIABILITY IN TORT, OR ANY OTHER REPRESENTATION OR
WARRANTY WHATSOEVER, EXPRESS OR IMPLIED.

 

Section 12.                                      Non-Exclusivity.

 

During the term of this
Agreement, the Manager may provide container, management, sales, leasing or
remarketing services directly or indirectly to any other Person or on behalf of
any other Person.

 

Section 13.                                      Assignment.

 

This Agreement, and the
rights and duties of the Manager hereunder, may not be assigned by the Manager
to any other Person without the prior written consent of the Owner and the
Indenture Trustee (acting at the direction of the Requisite Global
Majority).  The Owner may charge, assign,
pledge or hypothecate its rights (but not its obligations) under this Agreement
as provided herein.  The Manager hereby
acknowledges that the Owner shall pledge all of its rights, title and interest
under this Agreement to the Indenture Trustee (for the benefit of the
Noteholders), and the Manager hereby consents to such pledge.  The Manager will give any Rating Agency prior
notice of any assignment effected pursuant to this Section 13.

 

Section 14.                                      Indemnification.

 

14.1                           By the Owner.  The Owner,
at its own expense, shall defend, indemnify and hold the Manager harmless from
and against any and all claims, actions, damages, losses, liabilities, costs
and expenses (including reasonable legal fees) (each, a “Claim”) incurred by or
asserted against the Manager to the extent resulting or arising from the
Manager’s performance of its obligations under this Agreement or from the Owner’s
failure to comply with or perform its obligations under this Agreement, except
for Claims which arise out of the Manager’s willful misconduct, or gross
negligence, or failure to comply with or perform its obligations under this
Agreement.  Manager subordinates its
claims under this Section 14.1 to all claims which have priority in
payment pursuant to the provisions of Section 302 and Section 806 of
the Indenture.

 

14.2                           By the Manager.

 

14.2.1                  The Manager, in its capacity as the Manager, agrees to, and hereby does,
indemnify and hold harmless the Owner, the Indenture Trustee (for the benefit
of the Noteholders), any Series Enhancer, any Hedge Counterparty, the Deal
Agents (as such term is 

 

24

 

defined in the Note
Purchase Agreement), the Liquidity Agents (as such term is defined in the Note
Purchase Agreement), the Purchasers (as such term is defined in the Note
Purchase Agreement), the Transition Agent and their respective officers,
directors, employees and agents (each of the foregoing, an “Indemnified Party”)
against any and all liabilities, losses, damages, penalties, costs and expenses
which may be incurred or suffered by such Indemnified Party (except to the extent
caused by the gross negligence or willful misconduct on the part of the
Indemnified Party) as a result of claims, actions, suits or judgments asserted
or imposed against an Indemnified Party and arising out of (i) an action
or inaction by the Manager that is contrary to the Servicing Standard or
otherwise in violation of the terms of this Agreement; or (ii) any breach
of or any inaccuracy in any representation or warranty made by the Manager in
this Agreement or in any certificate delivered by the Manager pursuant hereto;
or (iii) any breach of or failure by the Manager to perform any covenant
or obligation of the Manager set out or contemplated in this Agreement; (iv) personal
injury or property damage claim arising out of or in connection with the negligence
of the Manager; or (v) any defense, setoff or counterclaim arising out of
any negligence of the Manager or any acts or omissions of the Manager related
to the performance hereunder of its duties with respect to the Managed
Containers; provided however, that the foregoing
indemnity shall in no way be deemed to impose on the Manager any obligation to
reimburse an Indemnified Party for: (A) losses arising from the financial
inability of the related obligor on a Lease Agreement to make the payments due thereunder
or because the Leases otherwise are uncollectible, or (B) losses arising
from the failure of the remarketing proceeds of the Managed Containers to
achieve historical or projected levels for reasons other than the Manager’s
failure to comply with the terms of this Agreement.  The provisions of this Section 14.2
shall run directly to and be enforceable by an injured party, subject to the
limitations hereof.  The obligations of
the Manager under this Section 14.2 shall survive the resignation or removal
of the Manager and each Indemnified Party, the payment of the Notes and
Outstanding Obligations and the termination of this Agreement or the Indenture;
it being understood and agreed that the Manager shall have no liability for the
actions or inactions of any replacement Manager.

 

14.2.2                  The Manager shall pay any amounts owing by it pursuant to this Section 14
directly to the Indemnified Party, and such amounts shall not be deposited in
the Trust Account.

 

14.2.3                  Indemnification payments owing pursuant to the provisions of this Section 14
shall include, without limitation, reasonable and documented fees and expenses
of counsel and expenses of litigation reasonably incurred.

 

Section 15.                                      No Bankruptcy Petition Against the Owner.

 

The Manager will not, prior
to the date that is one year and one day after the payment in full of all
Outstanding Obligations under the Indenture or obligations of the Issuer under
any of the other Transaction Documents, institute against the Owner, or join
any other Person in instituting against the Owner, an Insolvency
Proceeding.  The provision of this Section 15
shall survive the termination of this Agreement.

 

25

 

Section 16.                                      Notices.

 

All notices, demands or
requests given pursuant to this Agreement shall be in writing, sent by
internationally recognized overnight courier service or by telecopy or hand
delivery, to the following addresses:

 

	
  To
  the Manager:

  	
   

  	
  TAL
  International Container Corporation

  
	
   

  	
   

  	
  100
  Manhattanville Road

  
	
   

  	
   

  	
  Purchase,
  New York 10577-2135

  
	
   

  	
   

  	
  Attn:     Jeffrey
  Casucci, Vice President, Treasury and Credit

  
	
   

  	
   

  	
  Fax:
  (914) 697-2526

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with
  a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TAL
  International Container Corporation

  
	
   

  	
   

  	
  100
  Manhattanville Road

  
	
   

  	
   

  	
  Purchase,
  New York 10577-2135

  
	
   

  	
   

  	
  Attn:     Marc
  A. Pearlin, Vice President, General Counsel & Secretary

  
	
   

  	
   

  	
  Fax:      (914)
  697-2526

  
	
   

  	
   

  	
   

  
	
  To
  the Owner:

  	
   

  	
  TAL
  Advantage IV LLC

  
	
   

  	
   

  	
  100
  Manhattanville Road

  
	
   

  	
   

  	
  Purchase,
  New York 10577-2135

  
	
   

  	
   

  	
  Attn:     Jeffrey
  Casucci

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with
  a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TAL
  International Container Corporation

  
	
   

  	
   

  	
  100
  Manhattanville Road

  
	
   

  	
   

  	
  Purchase,
  New York 10577-2135

  
	
   

  	
   

  	
  Attn:     Jeffrey
  Casucci, Vice President, Treasury and Credit

  
	
   

  	
   

  	
  Fax:      (914)
  697-2526

  
	
   

  	
   

  	
   

  
	
  To
  the Indenture Trustee:

  	
   

  	
  Wells
  Fargo Bank, National Association

  
	
   

  	
   

  	
  MAC
  N9311-161

  
	
   

  	
   

  	
  Sixth
  Street and Marquette Avenue

  
	
   

  	
   

  	
  Minneapolis,
  MN 55479

  
	
   

  	
   

  	
  Attention:
  Corporate Trust Services - Asset-Backed Administration

  
	
   

  	
   

  	
  Tel:
   (612) 667-8058

  
	
   

  	
   

  	
  Fax:
   (612) 667-3469

  

 

26

 

	
  To
  the Transition Agent:

  	
   

  	
  Wells
  Fargo Bank, National Association

  
	
   

  	
   

  	
  MAC
  N9311-161

  
	
   

  	
   

  	
  Sixth
  Street and Marquette Avenue

  
	
   

  	
   

  	
  Minneapolis,
  Minnesota 55479

  
	
   

  	
   

  	
  Attn:     Corporate
  Trust Services - Asset-Backed Administration

  
	
   

  	
   

  	
  Fax:      (612)
  667-3464

  
	
   

  	
   

  	
   

  
	
  To
  any Series Enhancer:

  	
   

  	
  At
  the address set forth in the related Enhancement Agreement

  
	
   

  	
   

  	
   

  
	
  To
  any Hedge Counterparty:

  	
   

  	
  At
  the address set forth in the related Hedge Agreement

  

 

Notice shall be effective
and deemed received (a) two days after being delivered to the courier
service, if sent by courier, (b) upon receipt of confirmation of
transmission, if sent by telecopy or (c) when delivered, if delivered by
hand.

 

Section 17.                                      Governing Law; Consent to Jurisdiction.

 

17.1                           Governing Law.  THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW, BUT WITHOUT GIVING EFFECT TO ANY OTHER PRINCIPLES OF
CONFLICTS OF LAW).

 

17.2                           Consent to Jurisdiction.  Any
legal suit, action or proceeding against Owner or Manager arising out of or
relating to this Agreement, or any transaction contemplated hereby, may be
instituted in any federal or state court in the County of New York, State of
New York and each of Owner and Manager hereby waives any objection which it may
now or hereafter have to the laying of venue of any such suit, action or
proceeding, and, solely for the purposes of enforcing this Agreement, Owner and
Manager each hereby irrevocably submits to the jurisdiction of any such court
in any such suit, action or proceeding.

 

17.3                           Waiver of Jury Trial.  EACH
OF THE PARTIES HERETO IRREVOCABLY WAIVES, AS AGAINST EACH OTHER PARTY HERETO,
ANY RIGHTS IT MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY CIVIL ACTION OR
PROCEEDING (WHETHER ARISING IN CONTRACT OR TORT OR OTHERWISE), INCLUDING
ANY COUNTERCLAIM ARISING UNDER THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT, INCLUDING
IN RESPECT OF THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT HEREOF OR THEREOF.

 

Section 18.                                      Successors and Assigns.

 

The terms and conditions
of this Agreement shall inure to the benefit of and be binding upon the
successors and permitted assigns of the parties hereto.

 

27

 

Section 19.                                      Severability.

 

If any term or provision
of this Agreement or the performance thereof shall to any extent be or become
invalid or unenforceable, such invalidity or unenforceability shall not affect
or render invalid or unenforceable any other provisions of this Agreement, and
this Agreement shall continue to be valid and enforceable to the fullest extent
permitted by law.

 

Section 20.                                      Entire Agreement; Amendments; Waiver.

 

This Agreement represents
the entire agreement between the parties with respect to the subject matter
hereof and may not be amended or modified except by an instrument in writing
signed by the parties hereto and approved by (x) the Requisite Global
Majority, (y) if such amendment or modification would directly affect the
Transition Agent, the Transition Agent, and (z) if such amendment or
modification would cause any of the events set forth in Section 1002(a)(i) through
(vii) of the Indenture to occur, the Persons specified in Section 1002(a) of
the Indenture which are then the Control Party for such Series or shall
have made an unreimbursed payment; provided,
that, if any such amendment or modification would (i) reduce the amount
payable to such Series Enhancer, (ii) amend the relative priority of
any such payment pursuant to Sections 302 or 806 of the indenture (other than
to increase the priority thereof) or increase the amount of any applicable
dollar limitations on amounts having a higher payment priority to such payments
pursuant to Sections 302 or 806 of the Indenture or otherwise change such
payments in a manner adverse to such Series Enhancer, (iii) change
the date on which or the amount of which, or the place or payment where, or the
coin or currency in which, such amount is paid to such Series Enhancer, (iv) increase
or accelerate such Series Enhancer’s payment obligations under its
Enhancement Agreement or otherwise materially and adversely affect the rights,
interests or obligations of such Series Enhancer under this Agreement and
the other Transaction Documents, or (v) modify provisions of any
Transaction Document relating to requirements that the consent of such Series Enhancer
be obtained, then the approval of such Series Enhancer shall also be
required.  The Manager will send prior
notice of any amendment or modification to the Rating Agencies setting forth in
general terms the substance of such amendment or modification.  Waiver of any terms or conditions of this
Agreement (including any extension of time required for performance) shall be
effective only if in writing and shall not be construed as a waiver of any
subsequent breach or waiver of the same terms or conditions or a waiver of any
other term or condition of this Agreement. 
No delay on the part of any party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof.

 

Section 21.                                      Counterparts.

 

This Agreement may be
executed in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed shall be deemed to be an
original but all of which taken together shall constitute one and the same
agreement.  Delivery of an executed
counterpart of a signature page to this Agreement by facsimile or PDF file
shall be effective as delivery of a manually executed counterpart of this
Agreement.

 

28

 

Section 22.                                      Intended Third Party Beneficiaries.

 

Each of the Transition
Agent, each Series Enhancer, the Requisite Global Majority, each Hedge
Counterparty and the Indenture Trustee are express third party beneficiaries of
this Agreement; and, as such, shall have full power and authority to enforce
the provisions of this Agreement against the parties hereto.  Except as set forth in the immediately preceding
sentence, this Agreement shall be binding upon and inure solely to the benefit
of each party hereto, and nothing in this Agreement, express or implied, is
intended to or shall confer on any other Person any right, benefit or remedy of
any nature whatsoever under or by reason of this Agreement.

 

29

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be duly executed as of the date first
written above.

 

	
   

  	
  TAL
  INTERNATIONAL CONTAINER CORPORATION, as Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

MANAGEMENT
AGREEMENT

 

 

	
   

  	
  TAL
  ADVANTAGE IV LLC, as Owner,

  
	
   

  	
  By:

  	
  TAL
  International Container Corporation, its manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

MANAGEMENT AGREEMENTExhibit 4.50

 

 

CONTRIBUTION AND SALE AGREEMENT

 

 

 

between

 

 

TAL INTERNATIONAL CONTAINER CORPORATION,

 

 

and

 

 

TAL ADVANTAGE IV LLC

 

 

 

Dated as of

 

 

June 28, 2010

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
   

  
	
  DEFINITIONS

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01

  	
  Definitions

  	
  1

  
	
  SECTION 1.02

  	
  General Interpretive Principles

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  
	
  TRANSFER OF CONTAINERS

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01

  	
  Transfer of Transferred Assets on the Closing Date

  	
  2

  
	
  SECTION 2.02

  	
  Transferred Containers and Related Assets after the Closing
  Date

  	
  2

  
	
  SECTION 2.03

  	
  Required Financing Statements; Marking of Records

  	
  3

  
	
  SECTION 2.04

  	
  General Provisions Regarding All Transfers of Containers

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  
	
  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01

  	
  Representations and Warranties of the Seller

  	
  6

  
	
  SECTION 3.02

  	
  Representations and Warranties of the Issuer

  	
  12

  
	
  SECTION 3.03

  	
  Breach of Representations and Warranties Regarding Certain
  Transferred Assets

  	
  15

  
	
  SECTION 3.04

  	
  Substitute Container

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  
	
  COVENANTS OF THE SELLER

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01

  	
  Seller Covenants

  	
  16

  
	
  SECTION 4.02

  	
  Pledge of Transferred Assets

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  CONDITIONS PRECEDENT

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01

  	
  Conditions to Issuer Obligations

  	
  19

  
	
  SECTION 5.02

  	
  Conditions to the Seller’s Obligations

  	
  19

  
	
  SECTION 5.03

  	
  Waiver of Conditions

  	
  20

  

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  
	
  TERMINATION

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01

  	
  Termination

  	
  20

  
	
  SECTION 6.02

  	
  Effect of Termination

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  
	
  INDEMNIFICATION PAYMENTS

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01

  	
  Indemnification

  	
  20

  
	
  SECTION 7.02

  	
  Procedure for Indemnification

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  MISCELLANEOUS PROVISIONS

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01

  	
  Amendment

  	
  21

  
	
  SECTION 8.02

  	
  Governing Law

  	
  22

  
	
  SECTION 8.03

  	
  Notices

  	
  22

  
	
  SECTION 8.04

  	
  Severability of Provisions

  	
  23

  
	
  SECTION 8.05

  	
  Assignment

  	
  24

  
	
  SECTION 8.06

  	
  Further Assurances

  	
  24

  
	
  SECTION 8.07

  	
  Waiver; Cumulative Remedies

  	
  24

  
	
  SECTION 8.08

  	
  Counterparts

  	
  24

  
	
  SECTION 8.09

  	
  Binding

  	
  24

  
	
  SECTION 8.10

  	
  Merger and Integration

  	
  24

  
	
  SECTION 8.11

  	
  Headings

  	
  24

  
	
  SECTION 8.12

  	
  Schedules and Exhibits

  	
  24

  
	
  SECTION 8.13

  	
  Intended Third Party Beneficiaries

  	
  25

  
	
  SECTION 8.14

  	
  Consent to Jurisdiction

  	
  25

  
	
  SECTION 8.15

  	
  WAIVER OF JURY TRIAL

  	
  25

  
	
  SECTION 8.16

  	
  No Claim

  	
  25

  

 

EXHIBIT A
— List of Containers

EXHIBIT B
— Container Transfer Certificate

SCHEDULE
3.01 — Other Names of Seller

 

ii

 

CONTRIBUTION
AND SALE AGREEMENT

 

THIS
CONTRIBUTION AND SALE AGREEMENT, dated as of June 28, 2010 (as amended,
modified or supplemented from time to time in accordance with the terms hereof,
this “Agreement”), is entered into between TAL INTERNATIONAL CONTAINER
CORPORATION (together with its permitted successors and assigns, the “Seller”),
a Delaware corporation, and TAL ADVANTAGE IV LLC (together with its permitted
successors and assigns, the “Issuer”), a limited liability company organized
under the laws of Delaware.

 

W I T N E S S E T H:

 

WHEREAS,
the Seller wishes to transfer to the Issuer from time to time containers,
leases and other related assets, and the Issuer desires to acquire such assets
from the Seller, in each case on the terms and conditions set forth herein;

 

WHEREAS,
the assets transferred by the Seller to the Issuer hereunder will subsequently
be pledged by the Issuer to the Indenture Trustee as collateral for the Notes
to be issued from time to time pursuant to the terms of the Indenture;

 

NOW
THEREFORE, in consideration of the mutual covenants contained herein, and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.01               Definitions. 
Capitalized terms used in this Agreement but not defined herein shall
have the meaning assigned to such terms in Appendix A to the Indenture dated as
of June 28, 2010, between the Issuer and Wells Fargo Bank, National
Association, as Indenture Trustee, as such Appendix A may be amended,
supplemented or otherwise modified from time to time in accordance with the
terms of the Indenture.

 

SECTION 1.02               General Interpretive Principles.  For
purposes of this Agreement except as otherwise expressly provided or unless the
context otherwise requires:

 

(a)           the terms defined in this Agreement have the meanings assigned to them in
this Agreement and include the plural as well as the singular, and the use of
any gender herein shall be deemed to include the other gender;

 

(b)           accounting terms not otherwise defined herein have the meanings assigned
to them in accordance with Generally Accepted Accounting Principles;

 

(c)           references herein to “Articles”, “Sections”, “Subsections”, “paragraphs”,
and other subdivisions without reference to a document are to designated
Articles, Sections, Subsections, paragraphs and other subdivisions of this
Agreement;

 

 

(d)           a reference to a Subsection without further reference to a Section is
a reference to such Subsection as contained in the same Section in which
the reference appears, and this rule shall also apply to paragraphs and
other subdivisions;

 

(e)           the words “herein”, “hereof”, “hereunder” and other words of similar import
refer to this Agreement as a whole and not to any particular provision; and

 

(f)            the term “include” or “including” shall mean without limitation by reason
of enumeration.

 

ARTICLE II

 

TRANSFER
OF CONTAINERS

 

SECTION 2.01               Transfer of Transferred Assets on the Closing
Date.

 

On
the Closing Date, the Seller shall sell, transfer and convey to the Issuer, and
the Issuer shall acquire from the Seller, all of the Seller’s rights, title and
interest in, and under (i) the Containers identified on Exhibit A
hereto and (ii) the Related Assets with respect thereto (the items
described in clauses (i) and (ii) collectively, the “Initial
Transferred Assets”).  The purchase price
for the Initial Transferred Assets shall be an amount equal to the sum of (x) the
sum of the Net Book Values (determined as of the last day of the month
preceding the Closing Date) of such Containers, and (y) the sum of the
then Fair Market Values of such Related Assets (the sum of (x) and (y),
the “Initial Purchase Price”).  The
Initial Purchase Price shall be paid by the Issuer on the Closing Date by (i) making
a cash payment to the Seller in an amount equal to One Hundred Eighty-Five
Million Eight Hundred Eighty Thousand Four Hundred Dollars ($185,880,400), and (ii) the
issuance by Issuer to the Seller of all of the authorized membership interests
of the Issuer.  The excess of (a) the
aggregate Fair Market Value of the Initial Transferred Assets, over (b) the
amount of cash described in the preceding sentence, shall be treated as a
contribution to capital of the Issuer.

 

SECTION 2.02               Transferred Containers and Related Assets
after the Closing Date.

 

(a)           Subsequent to the Closing Date, the Seller may, from time to time, sell,
transfer and convey, to the Issuer, and the Issuer may in its sole discretion,
acquire from the Seller, all of such Seller’s rights, title and interest in, to
and under such additional Containers and the Related Assets  with respect thereto (collectively, the “Additional
Transferred Assets”) as shall be identified from time to time on a Container
Transfer Certificate substantially in the form of Exhibit B hereto
to be delivered on such Transfer Date. 
The Seller and the Issuer hereby agree that the purchase price of such
Additional Transferred Assets (such purchase price, the “Additional Purchase
Price”) sold by the Seller on any such subsequent Transfer Date shall be an
amount equal to the sum of (x) the sum of the Net Book Values (determined
as of the last day of the month preceding such Transfer Date) of such
additional Containers and (y) the sum of the Fair Market Values of such
Related Assets.  The Additional Purchase
Price will be paid on the related Transfer Date in full.

 

2

 

At
the option of the Seller, some or all of the Additional Transferred Assets may
be transferred by the Seller to the Issuer as a capital contribution.

 

In
connection with any transfer of Additional Transferred Assets to the Issuer,
the Seller shall, on or prior to the respective Transfer Date, (i) execute
and deliver each of the documents set forth in Section 2.02(b) hereof,
and (ii) complete the actions required by Section 2.03 hereof.

 

(b)           In connection with any transfer of Transferred Assets by the Seller to
the Issuer in accordance with the provisions of Section 2.01 or Section 2.02
of this Agreement, the Seller shall execute and deliver to the Issuer  (and the Issuer shall deliver to the
Requisite Global Majority and the Indenture Trustee) on or before the related
Transfer Date, each of the following documents:

 

(i)            A completed Container Transfer Certificate which certificate shall
operate as an assignment, without recourse, representation or warranty (except
for the representations and warranties specifically set forth in this
Agreement) of all such Seller’s right, title, and interest in and to the
Transferred Assets identified in such Container Transfer Certificate;

 

(ii)           Completed UCC financing statements and documents of similar import, if
applicable, described in Section 2.03(a) hereof, together with
evidence of filing of such financing statements, changes or similar documents,
in the appropriate filing offices and jurisdictions as may be required to
perfect the Issuer’s ownership of the Related Assets; and

 

(iii)          A supplement to the List of Containers (or, in the case of the initial
Transfer Date, the List of Containers itself). 
Upon delivery of such supplement, the List of Containers shall be deemed
to have been amended to incorporate the information contained in such
supplement.

 

SECTION 2.03               Required Financing Statements; Marking of
Records.

 

(a)           In connection with the transfer by it on any Transfer Date, the Seller
agrees to record and file, at its own expense, the following UCC financing
statements (and/or amendments to previously filed UCC financing statements)
with respect to the Related Assets, such filings to be made (unless otherwise
requested by the Requisite Global Majority or any Series Enhancer) in each
case only to the extent necessary pursuant to applicable law to perfect the
ownership interest of the Issuer:

 

(i)            UCC financing statements filed against the Seller and  covering the Transferred Assets.  Such financing statements (or documents of
similar import) shall be filed in the appropriate filing offices in the
jurisdiction in which the Seller is located (as defined in the UCC) or as
otherwise required under Applicable Law;

 

(ii)           UCC financing statements or documents of similar import, evidencing the
release of the security interest of any other Person with respect to any of the
Transferred Assets; and

 

3

 

(iii)          With respect to each Finance Lease included in the Transferred Assets, a
UCC financing statement (or document of similar import), naming each lessee of
Containers subject to such Finance Lease, as debtor, the Seller, as secured
party, and the Containers under such related Finance Lease as collateral, such
financing statement against the lessee shall be filed in the appropriate filing
offices in the jurisdiction in which the lessee is located (as determined under
the UCC); provided, however, that the Seller shall
not be required to change the name of the secured party as of record in any
such filing office.

 

All
UCC financing statements required pursuant to this Section 2.03 shall meet
the requirements of Applicable Law. 
Nothing contained in this Section 2.03 shall limit the Seller’s
obligation to file continuation or termination statements in accordance with Section 4.01(g) of
this Agreement and Applicable Law.

 

The
Seller shall forward, promptly upon receipt, file-stamped copies of all UCC
financing documents described in paragraphs (i) and (ii) above to the
Indenture Trustee, the Requisite Global Majority and each Series Enhancer.

 

(b)           In connection with each transfer of Transferred Assets, the Seller shall,
at its own expense on or prior to each Transfer Date, cause its master
accounting and data processing records to be marked to indicate that all right,
title and interest in each Transferred Asset has been irrevocably and absolutely
transferred to the Issuer.

 

SECTION 2.04               General Provisions Regarding All Transfers of
Containers.

 

(a)           Except as specifically provided in Sections 3.03 and 7.01 of this
Agreement, all transfers of Transferred Assets by the Seller to the Issuer pursuant
to this Agreement shall be without recourse to the Seller; it being understood that the Seller shall
be liable to the Issuer for all representations, warranties, covenants and
indemnities made by the Seller pursuant to the terms of this Agreement, all of
which representations, warranties, covenants and indemnifications shall survive
the transfer of such Transferred Assts hereunder.  Notwithstanding any term or provision of this
Agreement, nothing in this Agreement shall create (or shall be deemed to create)
recourse to the Seller for (i) the failure of the lessees under the Leases
included in the Transferred Assets to make any payments under such Leases or
the Leases otherwise being uncollectible and/or (ii) the failure of the
Issuer to realize an amount equal to the sum of (x) the Net Book Value of
a Transferred Container and (y) the Fair Market Value of the Related
Assets with respect to such Transferred Containers.

 

(b)           The Seller and the Issuer intend all transfers of Transferred Assets to
be “true sales” or “true contributions” by the Seller to the Issuer that are
absolute and irrevocable and that provide the Issuer with the full benefits of
ownership of the Transferred Assets, and neither the Seller nor the Issuer
intend the transactions contemplated hereunder to be, or for any purpose to be
characterized as, loans from the Issuer to the Seller.  It is, further, not the intention of the
Issuer or the Seller that the conveyance of the Transferred Assets by the Seller
be deemed a grant of a security interest in the Transferred Assets by the
Seller to the Issuer to secure a debt or other obligation of the Seller.  However, in the event that, notwithstanding
the intent of the parties, any Transferred Assets are considered to be property
of the Seller’s estate, then (i) this 

 

4

 

Agreement also shall be deemed to be and
hereby is a security agreement within the meaning of Applicable Law, and (ii) the
conveyance by the Seller provided for in this Agreement shall be deemed to be a
grant by the Seller to the Issuer of, and the Seller hereby grants to the
Issuer, a security interest in and to all of the Seller’s right, title and
interest in, to and under the Transferred Assets, whether now or hereafter
existing or created, to secure (A) the rights of the Issuer hereunder, (B) a
loan by the Issuer to the Seller in an amount equal to the sum of (1) the
sum of the Net Book Values of all Transferred Containers and (2) the sum
of the Fair Market Values of all Related Assets, in each case to the extent of
all of the Transferred Containers transferred or purported to be transferred by
the Seller hereunder, (C) without limiting the foregoing, the payment and
performance of the Seller’s obligations (whether monetary or otherwise)
hereunder, and (D) payment to the Issuer of all lease rentals, and other
payments in respect of the Leases and proceeds of the Transferred Assets
transferred or purported to be transferred hereunder.  The Seller and the Issuer shall, to the
extent consistent with this Agreement, take such actions as may be necessary to
ensure that, if this Agreement were deemed to create a security interest in the
Transferred Assets, such security interest would be deemed to be a perfected
security interest of first priority in favor of the Issuer under Applicable Law
and will be maintained as such throughout the term of this Agreement.  The Seller hereby irrevocably authorizes the
Issuer (and the Issuer hereby authorizes the Indenture Trustee (as pledgee of
the Issuer’s rights hereunder)), at any time, and from time to time, to file in
any filing office in any jurisdiction any initial financing statements or
documents of similar import and amendments thereto that (x) indicate
Transferred Assets as collateral regardless of whether any particular asset
included in the Transferred Assets falls within the scope of Article 9 of
the UCC, and (y) provide any other information required for the
sufficiency or filing office acceptance of any financing statement or document
of similar import or amendment.  The
Seller agrees to furnish any such information to the Issuer promptly upon the
Issuer’s request, and the Issuer agrees to furnish any such information to the
Indenture Trustee (as pledgee of the Issuer’s rights hereunder) promptly upon
the Indenture Trustee’s request.  The
Seller also ratifies its authorization for the Issuer and the Issuer also
ratifies its authorization for the Indenture Trustee having filed in any
jurisdiction any financing statements or documents of similar import or
amendments thereto if filed prior to the date hereof.

 

(c)           Consistent with the Issuer’s ownership of the Transferred Assets, as
between the parties to this Agreement, the Issuer shall have the sole right to
service, administer and collect the Transferred Assets and to assign and/or
delegate such right to others;

 

(d)           Except as specifically provided for in Section 3.03 and Section 3.04
hereof, the Issuer shall have no obligation to account to the Seller for the
Transferred Assets.  The Issuer shall
have no obligation to account for, or to return rental payments on or with
respect to any Transferred Asset, or any interest or other finance charge
collected pursuant thereto, to the Seller, irrespective of whether such
collections and charges are in excess of the Initial Purchase Price or
Additional Purchase Price, as appropriate, of such Transferred Asset.  The Issuer shall have the sole right to
retain any gains or profits created by buying, selling or holding the
Transferred Assets and shall have the sole risk of and responsibility for
losses or damages created by such buying, selling or holding;

 

(e)           The Issuer shall have the unrestricted right to further assign, transfer,
deliver, hypothecate, subdivide or otherwise deal with the Transferred Assets,
and all of the 

 

5

 

Issuer’s right, title and interest in, to and
under this Agreement, on whatever terms the Issuer shall determine, pursuant to
this Agreement or otherwise.

 

ARTICLE III

 

REPRESENTATIONS
AND WARRANTIES

 

SECTION 3.01               Representations and Warranties of the Seller.  The
Seller hereby makes the following representations and warranties.  The Issuer has relied upon such
representations and warranties in accepting the conveyance of the Transferred Assets.  Such representations and warranties are made
only as of a Transfer Date with respect to the Transferred Assets transferred
to the Issuer on such date and, with respect to the representation and warranty
set forth in clause (v) below, as of the date which is two Business Days
following the later of the acquisition of the applicable Transferred Asset by
the Issuer or the inclusion of the applicable Transferred Asset in the Asset
Base, but shall survive each transfer and conveyance of the respective Transferred
Assets to the Issuer.

 

(a)           Organization and Good Standing.  The Seller is a corporation duly organized,
validly existing and in compliance under the laws of the State of Delaware,
with power and authority to own its properties and to conduct its business as
such properties are currently owned and such business is currently conducted,
had at all relevant times, and now has, power, authority, and legal right to
acquire and own the Transferred Assets and to perform its obligations hereunder
and under any Transaction Document to which it is a party;

 

(b)           Due Qualification.  The Seller is qualified as a foreign
corporation in each jurisdiction where failure to be so qualified would have a
material adverse effect upon its business and has obtained all necessary
licenses and approvals as required under Applicable Law, in each case, where
the failure to be so qualified, licensed or approved, would reasonably be
expected to materially and adversely affect the ability of the Seller to
perform its obligations under and comply with the terms of this Agreement and
any other Transaction Document to which it is a party;

 

(c)           Power and Authority; Due Execution and Delivery.  The Seller has the corporate
power and authority to execute and deliver this Agreement and any other
Transaction Document to which it is a party and to carry out the terms thereof;
the Seller has duly authorized the transfer and conveyance to the Issuer of the
Transferred Assets by all necessary corporate action; the execution, delivery,
and performance by the Seller of this Agreement and any other Transaction
Document to which it is a party has been duly authorized by the Seller by all
necessary corporate action and this Agreement and any other Transaction
Document to which it is a party have been duly executed and delivered by the
Seller;

 

(d)           Legal Name.  The legal name of the Seller is as set forth
on the signature page of the Seller for this Agreement, and, except as set
forth in Schedule 3.01 hereof, in the five years preceding the date of this
Agreement:  (a) the Seller has not
changed its name, the Seller has not used, and does not currently use, any
trade names, fictitious names, assumed names or “doing business as” names, and (b) the
Seller has not been known by any name other than “TAL International Container
Corporation”;

 

6

 

(e)           Valid Assignment; Binding Obligations.  This Agreement constitutes a valid transfer
and conveyance to the Issuer of all right, title, and interest of the Seller
in, to and under the Transferred Assets and the Transferred Assets will be held
by the Issuer free and clear of any Lien of any Person claiming through or
under the Seller, except for Permitted Encumbrances; and this Agreement and
each other Transaction Document to which the Seller is a party, when duly
executed and delivered by the other parties thereto, will constitute a legal,
valid, and binding obligation of the Seller enforceable against the Seller in
accordance with its terms subject as to enforceability to applicable
bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or
other laws affecting creditors’ rights generally and to general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity
or at law);

 

(f)            No Violation.  The consummation of the transactions
contemplated by and the fulfillment of the terms of this Agreement and the
Transaction Documents to which it is a party will not conflict with, result in
any breach of any of the terms and provisions of, or constitute (with or
without notice or lapse of time or both) a default under, the charter documents
or by-laws of the Seller, or any material term of any indenture, agreement,
mortgage, deed of trust, or other instrument to which the Seller is a party or
by which it is bound, or result in the creation or imposition of any Lien upon
any of its properties pursuant to the terms of any such indenture, agreement,
mortgage, deed of trust, or other instrument, other than this Agreement and the
Indenture, or violate any material provision of any law, order, rule, or
regulation applicable to the Seller of any court or of any federal or state
regulatory body, administrative agency, or other Governmental Authority having
jurisdiction over the Seller or any of its properties, in each case, other than
any conflict, breach, default, Lien, or violation that would not reasonably be
expected to result in a Material Adverse Change;

 

(g)           No Proceedings or Injunctions.  There are (i) no actions, suits,
proceedings or investigations pending, or, to the knowledge of the Seller,
threatened, before any court, regulatory body, administrative agency, or other
tribunal or Governmental Authority (A) asserting the invalidity of this
Agreement or any other Transaction Document to which it is a party, (B) seeking
to prevent the consummation of any of the transactions contemplated by this
Agreement or any other Transaction Document to which it is a party, or (C) seeking
any determination or ruling that might materially and adversely affect the
performance by the Seller of its obligations under, or the validity or
enforceability of, this Agreement or any other Transaction Document to which it
is a party, and (ii) no injunctions, writs, restraining orders or other
orders are in effect against the Seller that would materially and adversely
affect its ability to perform under this Agreement or any other Transaction
Document to which it is a party;

 

(h)           Compliance with Law.  The Seller:

 

(i)                         is not in violation of any laws, ordinances, governmental rules or
regulations or any court order to which it is subject or by which it is bound,
in each case the violation of which would reasonably be expected to materially
and adversely affect the ability of the Seller to perform its obligations under
this Agreement or any other Transaction Document to which it is a party; and

 

7

 

(ii)                       has obtained all licenses, permits, franchises or other governmental
authorizations necessary to the ownership of its property or to the conduct of
its business including, without limitation, with respect to transactions
contemplated by this Agreement and the other Transaction Documents to which it
is a party, in each case, other than any such license, permit, franchise or
other authorization the failure to so obtain will not reasonably be expected to
result in a Material Adverse Change;

 

(i)            Insolvency.  The Seller is not insolvent under the
Insolvency Law and will not be rendered insolvent by the transactions
contemplated by this Agreement; the Seller is paying its debts as they become
due and, after giving effect to the transactions contemplated hereby, will have
adequate capital to conduct its business;

 

(j)            [Reserved];

 

(k)           Place of Business.  As of the Closing Date, the principal place
of business and chief executive office of the Seller and the place where the
accounting books and records of the Seller are maintained is located at its
address set forth in Section 8.03 and has been located at such address at
all times since the later of (i) the date of formation of the Seller, and (ii) the
date that is five years prior to the Closing Date;

 

(l)            Accounting and Tax Treatment.  The Seller will treat the transfer of the
Transferred Assets to the Issuer pursuant to this Agreement as a capital
contribution (in part) and sale (in part) of such Transferred Assets (which
allocation between capital contribution and sale will be determined in
accordance with Sections 2.01 and Section 2.02 hereof) for financial
reporting and accounting purposes.  The
Seller will treat the transfer of the Transferred Assets as a transfer to an
entity disregarded as separate from its owner for U.S. federal, state and local
income tax purposes (“Tax Purposes”); provided, that in the event Issuer may
become treated as a “partnership” for Tax Purposes, then from and after such
time Seller will treat the transfer of the Transferred Assets as a transfer to
a “partnership” for such purposes;

 

(m)          Bulk Transfer Provisions.  No transfer, assignment or conveyance of the
Transferred Assets by the Seller to the Issuer contemplated by this Agreement
will be subject to the bulk transfer or any similar statutory provisions in
effect in any applicable jurisdiction;

 

(n)           All Representations and Warranties True.  All representations, warranties,
certifications and statements made by the Seller in any certificate or other
document delivered in connection with the closing of the transactions
contemplated by the Transaction Documents including all representations,
warranties, certifications and statements made to Vedder Price P.C. in support
of its opinions issued and delivered in connection with the issuance of the
Notes and each of the factual assumptions contained in such opinions, to the
extent compliance with such assumptions is in the control of the Seller, are
true and correct in all material respects as of the date made and do not omit
or fail to state a material fact necessary to make the statements contained
therein not misleading as of such date.

 

8

 

(o)           Approvals.  All approvals, authorizations, consents,
orders or other actions of any Person required to be obtained by the Seller in
order to execute and deliver this Agreement and any other Transaction Documents
to which it is a party have been or will be taken or obtained on or prior to
the Closing Date;

 

(p)           Financial Statements.  The consolidated balance sheet of TAL
International Group at December 31, 2009 and the consolidated statements
of income, retained earnings and cash flows for the twelve months ended on such
date, are accompanied by reports thereon containing opinions without qualification,
except as therein noted, by the independent accountants, have been prepared in
accordance with Generally Accepted Accounting Principles consistently applied,
and present fairly the financial position of TAL International Group and its
consolidated Subsidiaries (including the Seller) as of such dates and the
results of their operations for such periods;

 

Since
December 31, 2009 there has been no change in the business or financial
condition of TAL International Group and its consolidated Subsidiaries (including
the Seller) except as disclosed in TAL International Group’s financial reports,
or changes in the ordinary course of business, which individually or in the
aggregate may have been materially adverse. 
Neither TAL International Group nor any of its consolidated Subsidiaries
(including the Seller) has any material liabilities or obligations other than
those disclosed in the financial statements (including the notes thereto)
referred to in the preceding paragraph or for which adequate reserves are reflected
in such financial statements or which were incurred in the ordinary course of
business since the date of such financial statements;

 

(q)           Governmental Consent.  No consent, approval or authorization of, or
filing, registration or qualification with, any Governmental Authority is or
will be necessary or required on the part of the Seller in connection with the
execution, delivery, legality, binding effect or enforceability of this
Agreement or any other Transaction Document to which it is a party or the
transfer and conveyance of the Transferred Assets hereunder except for (A) the
filing of any financing statements and (B) such the failure of which to
make or obtain, individually or in the aggregate, would not reasonably be
expected to result in a material adverse effect on the Seller;

 

(r)            Investment Company.  The Seller is not an “investment company” or
a company controlled by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended;

 

(s)           Substantive Consolidation.  The Seller is operated such that the Issuer
would not be “substantively consolidated” in the bankruptcy estate of the
Seller and its separate existence disregarded in the event of the bankruptcy of
the Seller under any applicable Insolvency Law;

 

(t)            Financial Statements.  The financial statements and books and
records of the Seller will reflect the separate existence of the Issuer, the
annual consolidated financial statements of the Seller after the date hereof
will contain disclosures to the effect that the Seller has or will have one or
more direct and indirect Subsidiaries that were or may be established as
bankruptcy remote entities to facilitate asset securitization transactions;

 

9

 

(u)           Valid Business Purpose.  The transfers and conveyances of Transferred
Assets by the Seller to the Issuer pursuant to the terms of this Agreement are
being consummated by the Seller in good faith, with no contemplation of
insolvency and with no intent to hinder, delay or defraud any of its present or
future creditors of the Seller;

 

(v)           Title to Containers.  Immediately prior to the transfer of any
Transferred Asset to the Issuer pursuant to the terms of this Agreement, the
Seller had good and marketable title to such Transferred Asset, free and clear
of all Liens, except (i) Permitted Encumbrances and (ii) a
manufacturer’s or vendor’s lien for the unpaid purchase price of such
Transferred Asset so long as such unpaid purchase price is paid within two
Business Days following the later of the acquisition of such Transferred Asset
by the Issuer or the inclusion of such Transferred Asset in the Asset Base. The
Seller has not authorized the filing of, and is not aware of, any financing
statements against the Seller that include a description of collateral covering
the Transferred Assets other than any financing statement or document of
similar import (i) in favor of the Issuer pursuant to this Agreement or (ii) that
has been terminated.  The Seller is not
aware of any judgment or tax lien filings against the Seller;

 

(w)          Rights to Lease Agreements are Assignable.  The assignment of the rights with respect to
each Lease Agreement (to the extent related to a Transferred Container) and all
scheduled lease payments to become due thereunder (which relate to a
Transferred Container) pursuant to this Agreement does not violate the terms of
the applicable Lease Agreement and such assignment by the Seller is permitted
without the consent of any Person other than consents which will have been
obtained on or before the related Transfer Date;

 

(x)            All Necessary Action Taken.  Immediately after each of the transfers and
conveyances to the Issuer as contemplated in this Agreement, all necessary
action will have been taken by the Seller to validly transfer and convey to the
Issuer all right, title and interest of the Seller in and to the Transferred
Containers and the Related Assets;

 

(y)           Eligible Container.  As of the related Transfer Date for a
Container, such  Container is an
Eligible Container.

 

(z)            Ordinary Course of Business.  All Lease Agreements related to Transferred
Containers were originated in the ordinary course of business of the Seller’s
business and in accordance with the Credit and Collection Policy as in effect
on such origination date;

 

(aa)         Binding Obligation.  Each Lease included in the Related Assets
being transferred to the Issuer on the applicable Transfer Date represents the
genuine, legal, valid and binding payment obligation in writing of the related
lessee, enforceable in accordance with its terms, except only as such
enforcement may be limited by bankruptcy, insolvency or similar laws affecting
the enforcement of creditors’ rights generally;

 

(bb)         No Defenses.  No right of rescission, setoff, counterclaim
or defense exists or has been asserted in writing or threatened in writing with
respect to any Lease included in the Related Assets being transferred to the
Issuer on the applicable Transfer Date. 
The exercise of any right under any such Lease will not render such
Lease unenforceable in whole or in part or subject to any such right of
rescission, setoff, counterclaim or defense;

 

10

 

(cc)         Servicing.  The servicing of each Lease included in the
Related Assets and the collection practices relating thereto have been lawful
and in accordance with the standards set forth in the Credit and Collection
Policy;

 

(dd)         Seller Acquisition Cost.  One of the following: (A) with respect
to any Container originally acquired by the Seller subsequent to August 1,
2005, the vendor’s or manufacturer’s invoice price of such Container was
representative of the market price of containers of similar specifications with
such vendor or manufacturer on the date on which the Seller placed the order
for such Container with the vendor or manufacturer thereof; or (B) with
respect to any Container not covered by clause (A), the purchase price
allocated to such Container by the Seller on the Closing Date was reflective of
the market value (as determined in the Issuer’s good faith estimation) of such
class of Container;

 

(ee)         Creation of Security Interest.  In the event that, contrary to the intention
of the parties hereto, the transfer of the Transferred Assets pursuant to the
terms of this Agreement is held not to constitute a “true sale” or a “true
contribution”, this Agreement creates a valid and continuing security interest
(as defined in the UCC) in the Transferred Assets in favor of the Issuer, which
security interest is prior to all other Liens other than Permitted
Encumbrances, and is enforceable as such against creditors of and purchasers
from the Seller;

 

(ff)           UCC Classification.  As of the Transfer Date for a Transferred
Container:  (x) such Transferred
Container constitutes “goods” within the meaning of the applicable UCC; (y) the
related Lease constitutes “tangible chattel paper” within the meaning of the
UCC; and (z) the lease receivables under such Lease constitute “accounts”
or “proceeds” of such Lease within the meaning of the UCC;

 

(gg)         Perfection of Security Interest.  The Seller has caused the filing of all
appropriate financing statements or documents of similar import in the proper
filing office in the appropriate jurisdictions under Applicable Law in order to
perfect the Issuer’s ownership interest in the Transferred Assets.  All financing statements filed or to be filed
against the Seller in favor of the Issuer in connection herewith contain a
statement to the following effect:  “A
purchase of or any other security interest in any collateral described in this
financing statement will violate the rights of the Issuer and the Indenture
Trustee (as the pledgee of the Issuer)”;

 

(hh)         Possession of Leases.  Aside from any original counterparts of such
Lease included in such Transferred Assets in the possession of the lessee, the
only other original counterpart(s) of such Lease is in the possession of
the Manager or an Affiliate of the Manager. 
Such Lease (to the extent that such Lease relates to the Transferred
Containers) does not have any marks or notations indicating that such Lease (to
the extent that such Lease relates to the Transferred Containers) has been
pledged, assigned or otherwise conveyed to any Person; and

 

(ii)           OFAC.  None of the Containers are leased, nor has
Seller consented to a sublease, to a Sanctioned Person or an entity organized
in a Sanctioned Country in a manner which would violate the laws of the United
States (other than pursuant to a license issued by OFAC).  None of the Seller, any Subsidiary of the
Seller or, to the knowledge of the Seller, any Affiliate of the Seller (i) is
a Sanctioned Person, (ii) has, to the knowledge of the Seller, any of its
assets in Sanctioned Countries, and (iii) derives any of its operating
income from investments 

 

11

 

in, or transactions with, Sanctioned Persons
or Sanctioned Countries. The Purchase Price will not be used by the Seller, any
Subsidiary of the Seller or, to the knowledge of the Seller, any Affiliate of
the Seller, and has not been used to fund any operations in, finance any
investments or activities in or make any payments to, a Sanctioned Person or a
Sanctioned Country.

 

SECTION 3.02               Representations and Warranties of the Issuer.  The
Issuer hereby makes the following representations and warranties.  The Seller has relied upon such
representations and warranties in transferring the Transferred Assets to the
Issuer.  Such representations and
warranties speak only as of the Transfer Date with respect to the Transferred
Assets transferred to the Issuer on such date, but shall survive each transfer
and conveyance of the respective Transferred Assets to the Issuer.

 

(a)           Organization and Good Standing.  The Issuer is a limited liability company
duly organized and validly existing in compliance under the laws of the State
of Delaware, with full corporate power and authority to own and operate its
properties and to conduct its business as presently conducted and to enter into
and perform its obligations under this Agreement and each other Transaction
Document to which it is a party and the transactions contemplated hereby and
thereby;

 

(b)           Due Qualification.  The Issuer is duly qualified to do business
as a foreign company in good standing, and has obtained all necessary licenses
and approvals in all jurisdictions in which the ownership or lease of property
or the conduct of its business requires such qualification, except to the
extent that the failure to be so qualified, licensed or approved would not, in
the aggregate, materially and adversely affect the ability of the Issuer to
perform its obligations under and comply with the terms of this Agreement or
any other Transaction Documents to which it is a party;

 

(c)           Power and Authority.  The Issuer has the corporate power and
authority to execute and deliver this Agreement and to carry out its terms; and
the execution, delivery, and performance of this Agreement by the Issuer have
been duly authorized by the Issuer by all necessary company action;

 

(d)           Binding Obligations.  This Agreement and each other Transaction
Document to which the Issuer is a party, when duly executed and delivered by
the other parties hereto or thereto, will constitute a legal, valid, and
binding obligation of the Issuer enforceable in accordance with its terms
subject as to enforceability to applicable bankruptcy, reorganization,
insolvency, moratorium or other laws affecting creditors’ rights generally and
to general principles of equity (regardless of whether enforcement is sought in
a proceeding in equity or at law);

 

(e)           No Violation.  The consummation of the transactions
contemplated by and the fulfillment of the terms of this Agreement and the
Transaction Documents to which it is a party will not conflict with, result in
any breach of any of the terms and provisions of, or constitute (with or
without notice or lapse of time or both) a default under, the charter documents
or by-laws of the Issuer, or any material term of any indenture, agreement,
mortgage, deed of trust, or other instrument to which the Issuer is a party or
by which it is bound, or result in the creation or imposition of any Lien upon
any of its properties pursuant to the terms of any such 

 

12

 

indenture, agreement, mortgage, deed of
trust, or other instrument, other than pursuant to the Indenture, or violate
any law or any order, rule, or regulation applicable to the Issuer of any court
or of any federal or state regulatory body, administrative agency, or other
Governmental Authority having jurisdiction over the Issuer or any of its
properties;

 

(f)            No Proceedings or Injunctions.  There are (i) no proceedings or
investigations to which the Issuer is a party pending or, to the knowledge of
Issuer, threatened before any court, regulatory body, administrative agency or
other tribunal or Governmental Authority (A) asserting the invalidity of
this Agreement or any of the other Transaction Documents to which the Issuer is
a party, (B) seeking to prevent the consummation of any of the
transactions contemplated by this Agreement or any of the other Transaction
Documents to which the Issuer is a party, or (C) seeking any determination
or ruling that would materially and adversely affect the performance by the
Issuer of its obligations under, or the validity or enforceability of, this
Agreement or the other Transaction Documents to which the Issuer is a party and
(ii) no injunctions, writs, restraining orders or other orders are in
effect against the Issuer that would adversely affect its ability to perform
under this Agreement or the other Transaction Documents to which it is a party;

 

(g)           Approvals.  All approvals, authorizations, consents,
orders or other actions of any Person required to be obtained by the Issuer in
connection with the execution and delivery of this Agreement or any other
Transaction Document to which it is a party have been or will be taken or
obtained on or prior to the Closing Date;

 

(h)           Solvency.  The Issuer is not insolvent under the
Insolvency Law and will not be rendered insolvent by the transactions
contemplated by this Agreement; the Issuer is paying its debts as they become
due and, after giving effect to the transactions contemplated hereby, will have
adequate capital to conduct its business;

 

(i)            Principal Place of Business; Trade Names.  The Issuer is a limited liability company
organized under the laws of the State of Delaware.  The Issuer’s only “place of business” (as
such term is referred to in Section 9-307 of the UCC) and its “chief
executive office” (as such term is referred to in Section 9-307 of the
UCC) is located at and has been located at such address at all times since the
date of formation of the Issuer, and the accounting books and records of the
Issuer are maintained at its address determined in accordance with Section 8.03.  The Issuer has not been known by any name
other than “TAL ADVANTAGE IV LLC”;

 

(j)            Accounting and Tax Treatment.  The Issuer will treat the transfer of the
Transferred Assets to the Issuer by the Seller pursuant to this Agreement as a
capital contribution (in part) and sale (in part) of such Transferred Assets by
the Seller (which allocation between capital contribution and sale will be
determined in accordance with Sections 2.01 and Section 2.02 hereof) for
financial reporting and accounting purposes. 
The Issuer will treat the transfer of the Transferred Assets to the
Issuer as a transfer to an entity disregarded as separate from its owner for
U.S. federal, state and local income tax purposes (“Tax Purposes”); provided,
that in the event Issuer may become treated as a “partnership” for Tax
Purposes, then from and after such time Issuer will treat the transfer of the
Transferred Assets as a transfer to a “partnership” for such purposes;

 

13

 

(k)           Investment Company.  The Issuer is not an “investment company” or
a company controlled by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended;

 

(l)            Separateness.  The Issuer: (1) conducts its business in
its own name, it being understood that the Issuer’s assets will be managed by
the Manager in accordance with the terms of the Management Agreement, (2) maintains
its books and records separate from those of any other Person, (3) does
not commingle its funds with any other Person (except for any commingling of
Collections which may occur prior to the identification and segregation of such
amounts in accordance with the terms of the Management Agreement), (4) maintains
separate financial statements, showing its assets and liabilities separate and
apart from those of any other Person, (5) holds itself out as a separate
entity, and (6) observes all other organizational formalities;

 

(m)          All Representations and Warranties True.  All representations, warranties,
certifications and statements made by Issuer in any certificate or document
delivered in connection with the closing of the transactions contemplated by
the Transaction Documents including all representations, warranties,
certifications and statements made by the Issuer to Vedder Price P.C. in
support of its opinions issued and delivered in connection with the issuance of
the Notes and each of the factual assumptions contained in such opinions, to
the extent compliance with such assumptions is in the control of the Issuer,
are true and correct in all material respects as of the date made and do not
omit to state a material fact necessary to make the statements contained
therein not misleading as of such date;

 

(n)           Financial Statements.  The financial statements and books and
records of the Issuer will reflect the separate existence of the Issuer and the
Seller;

 

(o)           No Subsidiaries.  The Issuer has no Subsidiaries;

 

(p)           Ordinary Course.  The transactions contemplated by this
Agreement are being consummated by the Issuer in good faith and in furtherance
of the Issuer’s ordinary business purposes, with no contemplation of insolvency
and with no intent to hinder, delay or defraud any of its present or future
creditors; and

 

(q)           OFAC.  None of the Containers are leased, nor has
the Issuer consented to a sublease, to a Sanctioned Person or an entity
organized in a Sanctioned Country in a manner which would violate the laws of
the United States (other than pursuant to a license issued by OFAC).  The Issuer (i) is not a Sanctioned
Person, (ii) does not, to the knowledge of the Issuer, have any of its
assets in Sanctioned Countries, and (iii) derives any of its
operating income from investments in, or transactions with, Sanctioned Persons
or Sanctioned Countries. The Purchase Price will not be used and has not been
used by the Issuer to fund any operations in, finance any investments or
activities in or make any payments to, a Sanctioned Person or a Sanctioned
Country.

 

14

 

SECTION 3.03               Breach of Representations and Warranties
Regarding Certain Transferred Assets.

 

(a)           Upon discovery by the Seller or the Issuer (or any of their respective
successors or permitted assigns) of a breach of any of the Container
Representations and Warranties made by the Seller on the related Transfer Date,
the party (including any such successor or permitted assign) discovering such
breach shall give prompt written notice to the other party (and the Issuer
shall give prompt notice thereof to each of the Indenture Trustee and the
Requisite Global Majority).  If the
Issuer (or its successors or permitted assigns) reasonably determines that such
breach materially and adversely affects the interests of the Issuer or its
successors and permitted assigns, then, unless the breach shall have been
cured, or waived by the Issuer, within thirty (30) days after the receipt by
the Seller of written notice of such breach from the Issuer (or its successors
and permitted assigns), the Seller shall, on or prior to such thirtieth (30th)
day, repurchase the applicable Container (and all Related Assets with respect
thereto) by paying the Warranty Purchase Amount to the Issuer for deposit into
the Trust Account and, upon deposit of such payment in the Trust Account, such
repurchase shall occur automatically without further action by any Person.

 

(b)           The Issuer agrees that the obligation of the Seller to make the
indemnification payments pursuant to this Section 3.03 shall constitute
the sole remedy available against the Seller by the Issuer and its successors
and permitted assigns for breach of a Container Representation or Warranty; provided, however, that nothing contained
herein shall derogate from the Seller’s indemnification obligations set forth
in Section 7.01 hereof for matters other than a breach of a Container
Representation and Warranty.

 

SECTION 3.04               Substitute Container.

 

(a)           The Seller will have the right (exercisable solely at its option) at any
time to transfer to the Issuer one or more Containers and Related Assets (such
Containers and Related Assets, collectively, a “Substitute Container”) in
substitution for one or more Transferred Containers and Related Assets (such
Transferred Containers and Related Assets, collectively, a “Predecessor
Container”) if:

 

(i)            the Predecessor Container is required to be repurchased pursuant to Section 3.03
hereof;

 

(ii)           after giving effect to such substitution, no Asset Base Deficiency shall
exist;

 

(iii)          the Substitute Container, when considered with all other Eligible
Containers, will satisfy the Concentration Limits; and

 

(iv)          the ownership of such containers by the Issuer will not result in an
Early Amortization Event.

 

If
more than one Substitute Container is being transferred on any date, the
criteria set forth in clause (ii) above shall be determined on an
aggregate basis.

 

(b)           Any substitution pursuant to this Section 3.04 shall become
effective upon compliance with the provisions of Section 2.02(b) hereof.  Upon the effectiveness of such 

 

15

 

substitution, the Predecessor Container shall
automatically be reconveyed by the Issuer to the Seller without further action
by any Person.

 

ARTICLE IV

 

COVENANTS
OF THE SELLER

 

SECTION 4.01               Seller Covenants. 
Seller hereby covenants and agrees with the Issuer (and its successors
and assigns) as follows:

 

(a)           Merger or Consolidation of, or Assumption of the Obligations of, the
Seller. 
Notwithstanding anything in this Agreement to the contrary, any Person (i) into
which the Seller may be merged or consolidated, (ii) resulting from any
merger, conversion, or consolidation to which the Seller shall be party, or (iii) succeeding
to the business of the Seller substantially as a whole, will be the successor
to the Seller under this Agreement, without the execution or filing of any
document or any further act on the part of any of the parties to this
Agreement; provided, however, that the Seller shall not enter into any merger
or consolidation unless (x) immediately after giving effect to such
transaction, no Event of Default or Early Amortization Event shall result
therefrom, (y) the Seller shall have delivered to the Issuer, an Officer’s
Certificate and an Opinion of Counsel (which the Issuer shall forward to the
Indenture Trustee and the Requisite Global Majority) each stating that such
consolidation, merger, or succession complies with this Section 4.01 and
that all conditions precedent, if any, provided for in this Agreement relating
to such transaction have been complied with and (z) the Seller shall have
delivered to the Issuer an Opinion of Counsel (which the Issuer shall forward
to the Indenture Trustee and the Requisite Global Majority), either (1) stating
that, in the opinion of such counsel, all financing statements or other
documents of similar import, and amendments thereto have been executed (if
applicable) and filed that are necessary fully to perfect the interest of the
Issuer in the Transferred Assets, or (2) stating that, in the opinion of
such counsel, no such action shall be necessary to perfect such interest.

 

(b)           Limitation on Liability of the Seller and Others.  The Seller and any director,
officer, employee or agent of the Seller may rely in good faith on any document
of any kind, prima facie properly executed and submitted by any Person
respecting any matters arising under this Agreement; provided, however, that
any such limitation does not affect the obligation of the Seller to accept
reconveyance of certain Containers and the Related Assets and to pay the
consideration therefor pursuant to Section 3.03.  The Seller in its capacity as such shall not
be under any obligation to appear in, prosecute, or defend any legal action
that is not incidental to its obligations as the transferor of the Transferred
Assets under this Agreement and that in its opinion may involve it in any
expense or liability.

 

(c)           Preservation of Name, etc.  The Seller will not change its name,
identity, location of chief executive office, jurisdiction of incorporation or
corporate structure in any manner that would make ineffective any financing
statement, continuation statement, or documents of similar import, filed by the
Seller in accordance with Section 2.03 above unless (i) the Seller
shall have given the Issuer at least thirty (30) days’ prior written notice
thereof (which the Issuer promptly shall forward to the Indenture Trustee and
the Requisite Global Majority), (ii) the Seller shall have filed any
necessary financing statements or amendments thereof or 

 

16

 

documents of similar import necessary to
continue the effectiveness of any financing statement or document of similar
import referred to in Section 2.03 above and (iii) the Seller shall
have delivered to the Issuer one or more Opinions of Counsel (which the Issuer
promptly shall forward to the Indenture Trustee and the Requisite Global
Majority), stating that, after giving effect to such change in name, identity,
location of chief executive office, jurisdiction of incorporation or corporate
structure: (A) the Seller and the Issuer will not, pursuant to applicable
Insolvency Law, be substantively consolidated in the event of any Insolvency
Proceeding by, or against, the Seller, (B) under applicable Insolvency
Law, the transfers of Transferred Assets made in accordance with the terms of
this Agreement will be treated as a “true sale” in the event of any Insolvency
Proceeding by, or against, the Seller and (C) either (1) in the
opinion of such counsel, all financing statements or other documents of similar
import, and amendments thereto have been executed (if applicable) and filed
that are necessary fully to perfect the interest of the Issuer in the
Transferred Assets, or (2) stating that, in the opinion of such counsel,
no such action shall be necessary to perfect such interest; provided that the
opinions described in clause (A) and clause (B) shall not be required
unless,  as a result of the Seller’s
change of chief executive office or jurisdiction of incorporation, the Seller’s
chief executive office or the Seller’s jurisdiction of location is outside of
the United States.  The Seller shall
observe all formalities necessary to maintain its corporate existence, subject
to its rights under Section 4.01(a), and shall maintain all licenses,
permits, charters and registration, the suspension of which or the failure to
hold which, would reasonably be expected to result in a Material Adverse
Change.

 

(d)           Books and Records.  The Seller will, at its own cost and expense,
mark its books and records (which may include computerized records) to the
effect that each Transferred Container and Related Assets have been transferred
to the Issuer.

 

(e)           Compliance with Law.  The Seller will comply, in all material
respects, with all acts, rules, regulations, orders, decrees and directions of
any Governmental Authority except for any such noncompliance which would not
reasonably be expected to result in a Material Adverse Change; provided,
however, that the Seller may contest any act, rule, regulation, order,
decree or direction in any reasonable manner which shall not materially and
adversely affect the rights of the Issuer, the Noteholders, any Series Enhancers
or the Indenture Trustee in the Transferred Assets.

 

(f)            Conveyance of Transferred Assets; Security Interests.  Except for the transfers and
conveyances hereunder, the Seller will not pledge, assign or transfer to any
other Person, or grant, create, incur or assume, or permit or suffer to exist,
any Lien other than Permitted Encumbrances on, any Transferred Asset, or any
interest therein and the Seller shall defend the right, title, and interest of
the Issuer and its successors and assigns in, to, and under the Transferred
Assets, against all claims of third parties claiming through or under the
Seller.

 

(g)           Notification of Breach.  The Seller will advise the Issuer promptly,
in reasonable detail, upon discovery of the occurrence of any breach in any
material respect by the Seller of any of its representations, warranties and
covenants contained herein or in any other Transaction Documents (and the Issuer
promptly shall forward such notice to the Requisite Global Majority and the
Indenture Trustee).

 

17

 

(h)           Further Assurances.  The Seller will make, execute or endorse,
acknowledge and file or deliver to the Issuer from time to time such UCC
financing statements or documents of similar import (including any termination
or continuation statements), schedules, confirmatory assignments, conveyances,
transfer endorsements, powers of attorney, certificates, reports and other
assurances or instruments and take such further steps relating to the
Transferred Assets and other rights covered by this Agreement, as the Issuer or
its successors and assigns may reasonably request.  Any such requested UCC financing statement or
document of similar import must be required pursuant to Applicable Law to fully
preserve, maintain, and protect the interest of the Issuer under this Agreement
in the Transferred Assets.  The Seller
shall comply with the terms and provisions of the UNIDROIT Convention or any
other internationally recognized system for recording interests in or license
against shipping containers at the time that such convention is adopted by the
container leasing industry.

 

(i)            Notice of Liens.  The Seller shall notify the Issuer promptly
after becoming aware of any Lien other than Permitted Encumbrances on the
Transferred Assets (and the Issuer promptly shall forward such notice to the
Requisite Global Majority and the Indenture Trustee).

 

(j)            Transfer Taxes.  The Seller shall pay any transfer taxes, if
any, required to be paid in connection with the conveyance of the Transferred
Assets by the Seller to the Issuer and acknowledges that the Issuer shall have
no responsibility with respect thereto.

 

(k)           No Bankruptcy Petition Against the Issuer.  The Seller will not, prior to the date that
is one year and one day after the payment in full of all amounts owing pursuant
to the Indenture, this Agreement and the Transaction Documents, institute
against the Issuer, or join any other Person in instituting against the Issuer,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceedings under the laws of any applicable
jurisdiction.  This subsection 4.01(k) shall
survive the termination of this Agreement.

 

(l)            ERISA.  The Seller agrees to indemnify, defend and
hold the Issuer harmless from and against any and all loss, liability, damage,
judgment, claim, deficiency, or expense (including interest, penalties,
reasonable and documented attorneys’ fees and amounts paid in settlement) to
which the Issuer may become subject insofar as such loss, liability, damage,
judgment, claim, deficiency or expense arises out of any Plan of the Seller.

 

(m)          Issuer’s Ownership.  The Seller shall take no action inconsistent
with the Issuer’s ownership of the Managed Containers (except for such actions
as are specifically authorized in the Management Agreement).

 

(n)           Access to Information; Notices.  In the event that the Seller is no longer the
Manager, the Seller shall continue to make available to the Issuer, the
Indenture Trustee and each Series Enhancer its books and records
concerning the Transferred Assets, subject to the terms and limitations set
forth in Section 3.10.2 of the Management Agreement.

 

SECTION 4.02               Pledge of Transferred Assets.  The
Seller understands that the Issuer has pledged the Transferred Assets and its
rights under this Agreement to the Indenture 

 

18

 

Trustee
under the Indenture, and consents to such pledge.  The Seller agrees that the Indenture Trustee
may exercise the rights of the Issuer hereunder.

 

ARTICLE V

 

CONDITIONS
PRECEDENT

 

SECTION 5.01               Conditions to Issuer Obligations.  The
obligations of the Issuer to acquire Transferred Assets on any Transfer Date
occurring on or after the Closing Date shall be subject to the satisfaction of
the following conditions (in addition to the procedures required by Section 2.02(b)):

 

(a)           All representations and warranties of the Seller contained in this
Agreement shall be true and correct in all material respects on such Transfer
Date (including without limitation the Container Representations and
Warranties);

 

(b)           All written information concerning the Transferred Assets provided by the
Seller to the Issuer shall be true and correct in all material respects;

 

(c)           The Seller shall have materially performed all other obligations required
to be performed by the Seller pursuant to the provisions of this Agreement and
the other Transaction Documents to which it is a party other than any such
obligation the failure to so perform shall have not materially and adversely
affected the interests of the Issuer;

 

(d)           All corporate and legal proceedings and all instruments in connection
with the transactions contemplated by this Agreement shall be satisfactory in
form and substance to the Issuer, and the Issuer shall have received from the
Seller copies of all documents (including without limitation records of
corporate proceedings) relevant to the transactions herein contemplated as the
Issuer may reasonably have requested;

 

(e)           No Event of Default, Early Amortization Event or Manager Default shall
have occurred and then be continuing (other than any such Event of Default,
Early Amortization Event or Manager Default that will be cured upon the
consummation of such acquisition) or result from the acquisition of such
Transferred Assets; and

 

(f)            The Issuer has adequate means of financing available in order to complete
the acquisition of such Transferred Assets.

 

Notwithstanding
the foregoing conditions precedent, upon the making of a transfer of
Transferred Assets hereunder, all of Issuer’s rights under this Agreement (and
by operation of law) shall vest in Issuer, whether or not the conditions
precedent to such transfer were in fact satisfied.

 

SECTION 5.02               Conditions to the Seller’s Obligations.  The
obligations of the Seller to convey and contribute the Transferred Assets on
any Transfer Date occurring on or after the Closing Date shall be subject to
the satisfaction of the following conditions (in addition to the procedures
required by Section 2.02 hereof):

 

19

 

(a)           All representations and warranties of the Issuer contained in this
Agreement shall be true and correct with the same effect as though such
representations and warranties had been made on such date; and

 

(b)           All corporate and legal proceedings and all instruments in connection
with the transactions contemplated by this Agreement shall be satisfactory in
form and substance to the Seller, and the Seller shall have received from the
Issuer copies of all documents (including without limitation records of
corporate proceedings) relevant to the transactions herein contemplated as the
Seller may reasonably have requested.

 

SECTION 5.03               Waiver of Conditions.  None
of the conditions precedent set forth in Section 5.01 or Section 5.02
may be waived without the prior written consent of the Issuer and Indenture
Trustee (acting at the direction of the Requisite Global Majority) in each such
instance.

 

ARTICLE VI

 

TERMINATION

 

SECTION 6.01               Termination.  The respective obligations and responsibilities of
the Seller and the Issuer created by this Agreement shall not terminate prior
to payment in full of all Outstanding Obligations.

 

SECTION 6.02               Effect of Termination.  No
termination or rejection or failure to assume the executory obligations of this
Agreement in the bankruptcy of the Seller or the Issuer shall be deemed to
impair or affect the obligations pertaining to any executed conveyance or
executed obligations, including without limitation breaches of representations
and warranties by the Seller or the Issuer occurring prior to the date of such
termination.  Without limiting the
foregoing, prior to termination, neither the failure of the parties to execute
and to deliver a Container Transfer Certificate pursuant to Section 2.02,
nor the failure of the Issuer to pay in cash or kind the compensation therefor
shall render such transfer or obligation executory, nor shall the continued
duties of the parties pursuant to Article IV or Section 8.06 of this
Agreement render an executed conveyance executory.

 

ARTICLE VII

 

INDEMNIFICATION
PAYMENTS

 

SECTION 7.01               Indemnification.  Subject to
Section 3.03 hereof, the Seller agrees to indemnify and hold harmless the
Issuer, its successors and assigns (which includes the third-party
beneficiaries specified in Section 8.13) and their respective officers,
directors, employees, counsel and agents (each, an “Indemnified Party”) against
any and all liabilities, losses, damages, penalties, costs and expenses
(including reasonable and documented out-of-pocket costs of defense and legal
fees (of one counsel) but excluding (A) any special, consequential or
punitive damages and (B) any damages on the basis of lost profits) which
may be incurred or suffered by such Indemnified Party (except to the extent
caused by the gross negligence, bad faith or willful misconduct of the
Indemnified Party) as a result of (i) a breach by 

 

20

 

the
Seller of any of its covenants and agreements set forth in this Agreement; (ii) any
representation or warranty of the Seller proven to have been false or
misleading in any material respect when made or deemed made in this Agreement; (iii) any
information certified in any certificate or document delivered by the Seller
pursuant hereto not being true in any material respect as of the date of such
certificate or document (or, if earlier, the date set forth in such certificate
or document); (iv) any personal injury or property damage claim or action
arising out of or in connection with any of the Transferred Assets in connection
with any act or omission prior to the related Transfer Date; (v) any
defense, setoff or counterclaim arising out of any acts or omissions of the
Seller with respect to any Transferred Assets transferred on or before the
related Transfer Date; or (vi) any attempt by any Person to void, rescind
or set aside any transfer of the Seller’s right, title and interest in the
Transferred Assets to the Issuer as provided herein under statutory provisions
or common law or equitable action, including any provision of the Bankruptcy
Code or other insolvency law.  The
obligations of the Seller under this Section 7.01 shall survive the
termination of this Agreement.  It is
expressly agreed and understood that this Section does not (and shall not
be deemed to) create recourse to the Seller for the creditworthiness of any
lessee or, for avoidance of doubt, for losses due to a lessee’s failure to make
payments under a Lease or for the uncollectibility of the Leases.

 

SECTION 7.02               Procedure for Indemnification. 
Promptly after receipt by an Indemnified Party of notice of the
assertion of a claim or the commencement of a proceeding by a third-party with
respect to any matter referred to in Section 7.01 which could be the
subject of an indemnification claim against the Seller hereunder, such
Indemnified Party shall give written notice thereof to the Seller and
thereafter shall keep the Seller reasonably informed with respect thereto;
provided, however, that failure of an Indemnified Party to give the Seller
written notice as provided herein shall not relieve the Seller of its
obligations hereunder except to the extent that the Seller (x) incurs any
incremental costs directly related to the delay in failing to provide such
notice within a reasonable period of time or (y) is otherwise materially
and adversely prejudiced by such failure. 
If any such proceeding (including any litigation, arbitration or similar
proceeding) shall be brought against any Indemnified Party, the Seller shall be
entitled to assume the defense thereof at the Seller’s expense with counsel
chosen by the Seller and reasonably satisfactory to such Indemnified Party;
provided, however, that any Indemnified Party may at its own expense retain
separate counsel to participate in such defense.  The Seller shall not be liable under this Article VII
for any amount paid in settlement of such claims or proceedings without the
consent of the Seller unless such consent is unreasonably withheld.

 

ARTICLE VIII

 

MISCELLANEOUS
PROVISIONS

 

SECTION 8.01               Amendment.  This
Agreement may be amended from time to time by the Seller and the Issuer only
with the prior written consent of the Indenture Trustee (acting at the
direction of the Requisite Global Majority) and, if such amendment or
modification would cause any of the events set forth in Section 1002(a)(i) through
(vii) of the Indenture to occur, with the consent of the Persons set forth
in Section 1002(a) of the Indenture); provided, that,
if any such amendment or modification would (i) reduce the amount payable
to such Series Enhancer, (ii) amend the relative priority of any such
payment pursuant to Section 302 or 806 of the Indenture (other than to
increase the priority thereof) or increase the amount of any 

 

21

 

applicable
dollar limitations on amounts having a higher payment priority to such payments
pursuant to Sections 302 or 806 of the Indenture or otherwise change such
payments in a manner adverse to such Series Enhancer, (iii) change
the date on which or the amount of which, or the place or payment where, or the
coin or currency in which, such amount is paid to such Series Enhancer, (iv) increase
or accelerate such Series Enhancer’s payment obligations under its
Enhancement Agreement or otherwise materially and adversely affect the rights,
interests or obligations of such Series Enhancer under this Agreement, or (v) modify
provisions of any Transaction Document relating to requirements that the
consent of such Series Enhancer be obtained, the approval of such Series Enhancer
shall be required.  The Issuer shall
forward copies of any amendment to this Agreement to the Requisite Global
Majority, each Series Enhancer (so long as such Series Enhancer is
the Control Party for a Series of Outstanding Notes) and, if any Series of
Notes Outstanding is then rated, the applicable Rating Agencies.

 

SECTION 8.02               Governing Law.  THIS
AGREEMENT AND ANY AMENDMENT HEREOF PURSUANT TO SECTION 8.01 SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE
OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW BUT WITHOUT REGARD TO CHOICE OF LAW PRINCIPLES) APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED THEREIN AND THE OBLIGATIONS, RIGHTS, AND
REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

 

SECTION 8.03               Notices.  All
demands, notices, and communications under this Agreement shall be in writing
personally delivered, or sent by facsimile (with subsequent telephone
confirmation of receipt thereof) or sent by internationally recognized
overnight courier service, at the following address:

 

	
  Seller:

  	
   

  	
  TAL
  International Container Corporation

  
	
   

  	
   

  	
  100
  Manhattanville Road

  
	
   

  	
   

  	
  Purchase,
  New York 10577-2135

  
	
   

  	
   

  	
  Attn:     Jeffrey
  Casucci, Vice President, Treasury and Credit

  
	
   

  	
   

  	
  Fax:    
   914-697-2526

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with
  a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TAL
  International Container Corporation

  
	
   

  	
   

  	
  100
  Manhattanville Road

  
	
   

  	
   

  	
  Purchase,
  New York 10577-2135

  
	
   

  	
   

  	
  Attn:     Marc
  A. Pearlin, Vice President, General Counsel & Secretary

  
	
   

  	
   

  	
  Fax:      (914)
  697-2526

  
	
   

  	
   

  	
   

  
	
  Issuer:

  	
   

  	
  TAL
  Advantage IV LLC

  

 

22

 

	
   

  	
   

  	
  100
  Manhattanville Road

  
	
   

  	
   

  	
  Purchase,
  New York 10577-2135

  
	
   

  	
   

  	
  Attn:
  Jeffrey Casucci

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With
  a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TAL
  International Container Corporation

  
	
   

  	
   

  	
  100
  Manhattanville Road

  
	
   

  	
   

  	
  Purchase,
  New York 10577-2135

  
	
   

  	
   

  	
  Attn:     Jeffrey
  Casucci, Vice President, Treasury and Credit

  
	
   

  	
   

  	
  Fax:      914-697-2526

  
	
   

  	
   

  	
   

  
	
  Indenture Trustee:

  	
   

  	
  Wells
  Fargo Bank, National Association

  
	
   

  	
   

  	
  MAC
  N9311-161

  
	
   

  	
   

  	
  Sixth
  Street and Marquette Avenue

  
	
   

  	
   

  	
  Minneapolis,
  Minnesota 55479

  
	
   

  	
   

  	
  Attn:  Corporate
  Trust Services - Asset-Backed Administration

  
	
   

  	
   

  	
  Fax:   (612)
  667-8058

  
	
   

  	
   

  	
   

  
	
  Requisite

  	
   

  	
  Wells
  Fargo Securities, LLC

  
	
   

  	
   

  	
  301
  S. College Street

  
	
  Global Majority:

  	
   

  	
  One
  Wachovia Center

  
	
   

  	
   

  	
  Charlotte,
  North Carolina 28288

  
	
   

  	
   

  	
  Attn: Jerri Kallam

  
	
   

  	
   

  	
  Fax:  (704) 374-3254

  
	
   

  	
   

  	
  Email:  jerri.kallam@wellsfargo.com

  
	
   

  	
   

  	
   

  
	
  Hedge Counterparty:

  	
   

  	
  shall
  be set forth in any related Hedge Agreement

  

 

or
at such other address as shall be designated by such party in a written notice
to the other parties. Notice shall be effective and deemed received (a) two
days after being delivered to the courier service, if sent by courier, (b) upon
receipt of confirmation of transmission, if sent by telecopy, or (c) when
delivered, if delivered by hand. Any rights to notices conveyed to a Rating
Agency pursuant to the terms of the Indenture with respect to any Series shall
terminate immediately if such Rating Agency no longer has a rating outstanding
with respect to such Series.

 

Wherever
notice or a report is required to be given or delivered to or from any party
pursuant to this Agreement, a copy of such notice or report shall also be given
or delivered by the Issuer to the Requisite Global Majority and the Indenture
Trustee.

 

SECTION 8.04               Severability of Provisions.  If
any one or more of the covenants, agreements, provisions, or terms of this
Agreement shall be for any reason whatsoever held invalid, then such covenants,
agreements, provisions, or terms shall be deemed 

 

23

 

severable
from the remaining covenants, agreements, provisions, or terms of this
Agreement and shall in no way affect the validity or enforceability of the
other provisions of this Agreement.

 

SECTION 8.05               Assignment. 
Notwithstanding anything to the contrary contained in this Agreement,
this Agreement may not be assigned by the Seller except as provided in Section 4.01(a),
without the prior written consent of the Issuer and the Indenture Trustee at
the direction of the Requisite Global Majority and, except as provided in Section 4.02,
this Agreement may not be assigned by the Issuer without the prior written
consent of the Requisite Global Majority. 
Whether or not expressly stated, all representations, warranties,
covenants and agreements of the Seller and the Issuer in this Agreement, or in
any document delivered by any of them in connection with this Agreement, shall
be for the benefit of, and (in the case of rights of the Issuer) shall be
exercisable by, the Indenture Trustee or by any other representative of the
Requisite Global Majority.

 

SECTION 8.06               Further Assurances.  Each
of the Seller and the Issuer agrees to do such further acts and things and to
execute and deliver such additional assignments, agreements, powers and
instruments as are reasonably required to carry into effect the purposes of
this Agreement.

 

SECTION 8.07               Waiver; Cumulative Remedies.  No
failure to exercise and no delay in exercising, on the part of the Issuer or
the Seller, any right, remedy, power or privilege hereunder, shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise hereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exhaustive of any rights, remedies,
powers and privilege provided by law.

 

SECTION 8.08               Counterparts.  This
Agreement may be executed in two or more counterparts (and by different parties
on separate counterparts), each of which shall be an original, but all of which
shall constitute one and the same instrument. 
Delivery of an executed counterpart of this Agreement by facsimile or by
electronic means shall be equally effective as of the delivery of an originally
executed counterpart.

 

SECTION 8.09               Binding.  This
Agreement will inure to the benefit of and be binding upon the parties hereto
and their respective successors and permitted assigns.

 

SECTION 8.10               Merger and Integration. 
Except as specifically stated otherwise herein, this Agreement sets
forth the entire understanding of the parties relating to the subject matter
hereof, and all prior understandings, written or oral, are superseded by this
Agreement.

 

SECTION 8.11               Headings.  The
headings herein are for purposes of reference only and shall not otherwise
affect the meaning or interpretation of any provision hereof.

 

SECTION 8.12               Schedules and Exhibits.  The
schedules and exhibits attached hereto and referred to herein shall constitute
a part of this Agreement and are incorporated into this Agreement for all
purposes.

 

24

 

SECTION 8.13               Intended Third Party Beneficiaries.  Each
of the Requisite Global Majority, the Indenture Trustee, each Series Enhancer
and the Requisite Global Majority are express third party beneficiaries of this
Agreement and, as such, shall have full power and authority to enforce the
provisions of this Agreement against the parties hereto.  Except as set forth in the immediately
preceding sentence, this Agreement shall be binding upon and inure solely to
the benefit of each party hereto, and nothing in this Agreement, express or
implied, is intended to or shall confer upon any other person any right,
benefit or remedy of any nature whatsoever under or by reason of this
Agreement.

 

SECTION 8.14               Consent to Jurisdiction.  Any
legal suit, action or proceeding against the Seller or the Issuer arising out
of or relating to this Agreement, or any transaction contemplated hereby or
thereby, may be instituted in any federal or state court in the County of New
York, State of New York and each of the Seller and the Issuer hereby waives any
objection which it may now or hereafter have to the laying of venue of any such
suit, action or proceeding, and, solely for the purposes of enforcing this
Agreement, the Seller and the Issuer each hereby irrevocably submits to the
jurisdiction of any such court in any such suit, action or proceeding.

 

SECTION 8.15               WAIVER OF JURY TRIAL.  EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, AS AGAINST THE OTHER PARTY
HERETO, ANY RIGHTS IT MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY CIVIL
ACTION OR PROCEEDING (WHETHER ARISING IN CONTRACT OR TORT OR OTHERWISE), INCLUDING
ANY COUNTERCLAIM, ARISING UNDER OR RELATING TO THIS AGREEMENT OR ANY OTHER
TRANSACTION DOCUMENT, INCLUDING IN RESPECT OF THE NEGOTIATION,
ADMINISTRATION OR ENFORCEMENT HEREOF OR THEREOF.

 

SECTION 8.16               No Claim.  Indemnity
payments payable by the Issuer to the Seller, the Indenture Trustee and Manager
hereunder shall be non-recourse to the Issuer and shall not constitute a claim
(as defined in Section 101(5) of the Bankruptcy Code) against the
Issuer or the Collateral in the event such amounts are not paid in accordance
with Section 302 or 806 of the Indenture. 
Each of the Seller, Indenture Trustee and Manager hereby
subordinates its claims hereunder to all claims which have priority in payment
under Section 302 or 806 of the Indenture, and further agrees that any
such claims shall only be payable at the times and in the amounts for which
funds are available for such purpose pursuant to Section 302 or 806 of the
Indenture.

 

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25

 

IN
WITNESS WHEREOF, the Seller and the Issuer have caused this Agreement to be
duly executed as of the day and year first above written.

 

	
   

  	
  TAL
  INTERNATIONAL CONTAINER CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Contribution and Sale Agreement

 

 

	
   

  	
  TAL
  ADVANTAGE IV LLC,

  
	
   

  	
   

  	
  By: TAL
  International Container Corporation, its Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Contribution and Sale Agreement

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