Document:

EX-4.1 First Supplemental Indenture

Exhibit 4.1

FIRST SUPPLEMENTAL INDENTURE

dated as of July 15, 2008

to that certain

 

INDENTURE dated as of August 16, 2007

 

Among

 

VECTOR GROUP LTD.,

 

THE GUARANTOR PARTIES THERETO

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

as Trustee and Collateral Agent

 

 

     THIS FIRST SUPPLEMENTAL INDENTURE, dated as of July 15, 2008 (this “Supplement”), is
entered into between VECTOR GROUP LTD., a Delaware corporation (the “Company”), and U.S.
Bank National Association, as Trustee (the “Trustee”) and as Collateral Agent (the
“Collateral Agent”).

WITNESSETH

     WHEREAS, the Company and the Guarantors party thereto, the Trustee, and the Collateral Agent
have entered into that certain Indenture dated as of August 16, 2007 (the “Indenture”)
pursuant to which the Company has issued 11% Senior Secured Notes due 2015 (capitalized terms used
but not defined herein shall have the meanings assigned to such terms in the Indenture);

     WHEREAS, Section 10.3 of the Indenture regarding Asset Sales excludes from its restrictions
“the sale, lease, sublease, license, sublicense, conveyance or other disposition of products,
services, inventory, or accounts receivable and related assets (including participations therein)
in the ordinary course of business, including leases with respect to facilities that are
temporarily not in use or pending their disposition, and any sale or other disposition of damaged,
worn-out or obsolete assets in the ordinary course of business or any other property that is
uneconomic or no longer useful to the conduct of the business of the Company or the Guarantors,
from the provisions restricting Assets Sales in the Indenture” (the “Ordinary Course and
Non-Material Transactions”) as a result of the Ordinary Course and Non-Material Transactions being
excluded from the definition of the term Asset Sale pursuant to clause (4) of such definition;

     WHEREAS, the Collateral Documents provide that the Ordinary Course and Non-Material
Transactions must be expressly permitted by the Indenture (rather than not being precluded) to
allow the Company and the Guarantors to enter into the Ordinary Course and Non-Material
Transactions and cause the release of any Liens on Collateral upon the occurrence of any Ordinary
Course and Non-Material Transaction;

     WHEREAS the Company has requested the Trustee, pursuant to this Supplement, to amend the
Indenture to expressly permit the Ordinary Course and Non-Material Transactions and permit the
automatic release of the Lien on any Collateral in connection therewith to eliminate the
inconsistency between the Indenture and the Collateral Documents;

     WHEREAS, subject to the satisfaction of the conditions set forth in Article 2 hereof, the
Trustee and Collateral Agent is willing to consent to so supplement the Indenture on the terms
hereinafter set forth.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company, the Trustee and the Collateral Agent agree for the benefit of
each other and for the equal and ratable benefit of the Holders as follows:

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ARTICLE 1

AMENDMENTS;

     1.1 Amendment to Section 10.3. Section 10.3 of the Indenture is hereby by amended in
its entirety to read as follows:

          Whether prior to or after the First Priority Debt has been paid in full, assets included in
the Collateral shall be released from the Liens securing the Note Guarantees under any one or more
of the following circumstances:

     (a) the sale, lease, sublease, license, sublicense, conveyance or other
disposition of products, services, inventory, or accounts receivable and related assets
(including participations therein) in the ordinary course of business, including leases
with respect to facilities that are temporarily not in use or pending their
disposition, and any sale or other disposition of damaged, worn-out or obsolete assets
in the ordinary course of business or any other property that is uneconomic or no
longer useful to the conduct of the business of the Company or the Guarantors, which
such transactions are hereby expressly permitted under this Indenture;

     (b) as to any Collateral sold, transferred or otherwise disposed of by a Guarantor
to a Person that is not ) either before or after such sale, transfer or disposition)
the Company or a Guarantor in a transaction or other circumstance that complies with
the provisions of Section 4.10 hereof and is permitted by the Noteholder Documents,
and, if the First Priority Debt has not been paid in full, the ABL Documents; provided
that such Liens will not be released if such sale or disposition is subject to the
provisions of Section 5.01 hereof;

     (c) if any Guarantor is released from its Note Guarantee, that Guarantor’s assets
will also be released from the Liens securing the Note Guarantee;

     (d) in whole or in part, with the consent of the Holders of the requisite
percentage of Notes in accordance with Article 9;

     (e) if required in connection with certain foreclosure actions, or the exercise of
other remedies in respect of Collateral, by the ABL Lender in respect of First Priority
Debt in accordance with the terms of the Intercreditor Agreement’

     (f) upon a Legal Defeasance or Covenant Defeasance of the Notes as set forth under
Article 8;

     (g) upon satisfaction and discharge of this Indenture as set forth under Article
12; or

     (h) upon payment in full and discharge of all Notes outstanding under this
Indenture and all Obligations that are outstanding, due and payable under this
Indenture at the time the Notes are paid in full discharged.

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     1.2 Amendment to Section 10.9. Section 10.9 of the Indenture is hereby by amended by
replacing the introductory line of such section with the following:

     The Company will furnish to the Trustee and the Collateral Agent, prior to each
proposed release of Collateral pursuant to the Collateral Documents (other than with
respect to Collateral released pursuant to Section 10.3(a) of this Indenture):

ARTICLE 2

CONDITIONS PRECEDENT

          The obligations of the Trustee and the Collateral Agent to execute, deliver and perform this
Supplement shall be subject to the satisfaction of the following conditions:

     2.1 The Company shall have executed and delivered to the Trustee and the Collateral Agent
counterparts of this Supplement.

     2.2 The Company shall have delivered to the Trustee and the Collateral Agent resolutions of
its Board of Directors authorizing it to execute and deliver, and to perform its obligations under,
this Supplement;

     2.3 The Company shall have delivered each of the following documents, each dated on or as of
the date hereof:

     (a) An Officers’ Certificate, in form and substance as required by the Indenture.

     (b) an Opinion of Counsel of Goodwin Procter LLP, counsel to the Company,
substantially in form and substance as required by the Indenture.

ARTICLE 3

MISCELLANEOUS

     3.1 Effectiveness and Effect.

          This Supplement shall become effective upon execution hereof by the Company and the Trustee.
The provisions set forth in this Supplement shall be deemed to be, and shall be construed as part
of, the Indenture. All references to the Indenture in the Indenture or in any other agreement,
document or instrument delivered in connection therewith or pursuant thereto shall be deemed to
refer to the Indenture as amended by this Supplement. The Indenture shall remain in full force and
effect as modified by this Supplement.

     3.2 Counterparts.

          This Supplement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original, but all of which shall together constitute one and the same
instrument. Photocopied and facsimiled signatures hereto shall be valid and binding.

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     3.3 Governing Law.

          This Supplement shall be governed by and construed in accordance with the laws of the State of
New York.

          IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be duly executed by
their respective officers thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	VECTOR GROUP LTD.

 	 
	 	By:  	/s/ Howard M. Lorber
 	 
	 	 	Name:  	Howard M. Lorber 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Trustee and Collateral Agent

 	 
	 	By:  	/s/ Raymond S. Haverstock
 	 
	 	 	Name:  	Raymond S. Haverstock 	 
	 	 	Title:  	Vice President 	 
	 

5EX-10.1

Exhibit 10.1

PURCHASE AND SALE AGREEMENT

          THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made and entered into
as of July 9, 2008, by and between Wolstein Business Enterprises, L.P., an Ohio limited partnership
(“Seller”), and Developers Diversified Realty Corporation, an Ohio corporation
(“Buyer”).

RECITALS

          A. Seller is currently the owner of a 25.2525% membership interest (the “Membership
Interest”) in RO & SW Realty LLC, a Delaware limited liability company (the “Company”).

          B. Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, the Membership
Interest.

AGREEMENT

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

ARTICLE 1: SALE AND PURCHASE OF THE MEMBERSHIP INTEREST

          1.1 Sale and Purchase. Subject to the terms and conditions set forth herein,
concurrently with the execution of this Agreement, Seller is selling to Buyer, and Buyer is
purchasing from Seller, the Membership Interest, free and clear of any mortgage, pledge,
hypothecation, rights of others, claim, security interest, encumbrance, title defect, title
retention agreement, voting trust agreement, interest, option, lien, charge or similar restrictions
or limitations, including, without limitation, any restriction on the right to vote, sell or
otherwise dispose of the Membership Interest (collectively, “Liens”), except for any
limitations imposed by the Securities Act of 1933 (the “Act”) or any state “blue sky” or
securities laws (“Blue Sky Laws”), in consideration for an aggregate purchase price of
$10,000,000 (the “Purchase Price”), paid by Buyer to Seller.

          1.2 Deliveries. Concurrently with the execution of this Agreement:

          (a) Seller is delivering to Buyer (i) the Assignment of Limited Liability Company
Interest, in the form attached hereto as Exhibit A, duly executed by Seller and
Ronald J. Oehl, in his capacity as President of TLM Realty Corp., which is the manager of
TLM Property Investments, LLC, which is the manager of the Company (the “Manager”), to
evidence the Manager’s acknowledgment of the transactions contemplated by the Assignment of
Limited Liability Company Interest and its consent to the admission of Buyer as a
substituted Member of the Company pursuant to Section 8.03 of the Operating Agreement of the
Company, (ii) the promissory note made by Albert T. Adams, as Trustee of the S.A.W. Trust
under agreement dated December 18, 2002 (the “SAW Trust”), dated November 1, 2007,
to Scott A. Wolstein, and later assumed by Seller as payor, marked “cancelled” by Scott A.
Wolstein, and (iii) any other documents

 

 

that are necessary to transfer to Buyer good and valid title to the Membership
Interest, free and clear of Liens.

          (b) Buyer is delivering to Seller (i) the Assignment of Limited Liability Company
Interest, in the form attached hereto as Exhibit A, duly executed by Buyer, and (ii)
the Purchase Price, in immediately available funds.

ARTICLE 2: REPRESENTATIONS AND

WARRANTIES OF SELLER

          Seller represents and warrants to Buyer as follows:

          2.1 Title. Seller has good and marketable title to the Membership Interest, free and
clear of all Liens. Upon the consummation of the transactions contemplated by this Agreement,
Buyer is acquiring good and valid title to the Membership Interest, free and clear of all Liens.

          2.2 Consent and Release under Pledge Agreement. Seller has received from Scott A.
Wolstein, in his capacity as pledgee under that certain Pledge Agreement, dated November 1, 2007,
between the SAW Trust and Scott A. Wolstein, and later assumed by Seller as pledgor, an effective
release of all of pledgee’s rights and interests under such Pledge Agreement.

          2.3 Consent of Jillian Marcy Kimmelsman Wolstein. Seller has received from Jillian
Marcy Kimmelsman Wolstein (“Jillian”) effective written consent to Buyer’s discharge of the
Note in connection with the transactions contemplated hereby.

          2.4 Validity and Enforceability. Seller has the requisite power and authority to
execute, deliver and perform Seller’s obligations under this Agreement and the Assignment of
Limited Liability Company Interest. This Agreement and the Assignment of Limited Liability Company
Interest have been duly executed and delivered by Seller and, assuming due authorization, execution
and delivery by Buyer, represent the legal, valid and binding obligations of Seller, enforceable
against Seller in accordance with their terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, fraudulent conveyance and other similar laws and
principles of equity affecting creditors’ rights and remedies generally.

          2.5 No Conflict. The execution and delivery by Seller of this Agreement and the
Assignment of Limited Liability Company Interest and the performance by Seller of Seller’s
obligations hereunder and thereunder will not violate (i) any provision of any applicable law or
regulation applicable to it or (ii) any provision of any agreement or other instrument to which the
Company or Seller or the Company’s or Seller’s respective properties or assets are bound, or
conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a
default under any such agreement or other instrument, or result in the creation or imposition of
any lien or other encumbrance of any nature whatsoever upon any of the Company’s or Seller’s
respective properties or assets. The execution and delivery by Seller of this Agreement and the
Assignment of Limited Liability Company Interest and Seller’s performance of its obligations
hereunder and thereunder have been duly authorized and will not violate any term or undertaking of
the partnership agreements or other agreements relating to the Company or Seller.

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ARTICLE 3: REPRESENTATIONS AND WARRANTIES OF BUYER

          Buyer hereby represents and warrants to Seller as follows:

          3.1 Validity and Enforceability. Buyer has requisite power and authority to execute,
deliver and perform Buyer’s obligations under this Agreement and the Assignment of Limited
Liability Company Interest. This Agreement and the Assignment of Limited Liability Company
Interest have been duly executed and delivered by Buyer and, assuming due authorization, execution
and delivery by Seller, represent the legal, valid and binding obligations of Buyer, enforceable
against Buyer in accordance with their terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, fraudulent conveyance and other similar laws and
principles of equity affecting creditors’ rights and remedies generally.

          3.2 No Conflict. Buyer represents that Buyer’s purchase of the Membership Interest
and the execution and delivery by it of this Agreement and the Assignment of Limited Liability
Company Interest and the performance by Buyer of its obligations hereunder will not violate (i) any
provision of any law or regulation applicable to it or (ii) any provision of any agreement or other
instrument to which Buyer or any of its properties or assets is bound, or conflict with, result in
a breach of or constitute (with due notice or lapse of time or both) a default under any such
agreement or other instrument, or result in the creation or imposition of any lien or other
encumbrance of any nature whatsoever upon any of its properties or assets.

ARTICLE 4: MISCELLANEOUS

          4.1 Survival of Representations and Warranties. The representations and warranties of
Seller and Buyer made herein shall survive the closing of the sale of the Membership Interest and
the other transactions contemplated hereby.

          4.2 Integration, Modification and Waiver. This Agreement (including the Exhibits
thereto), together with the Assignment of Limited Liability Company Interest, constitute the entire
agreement between the parties concerning the subject matter hereof and supersede all prior
agreements and understandings, both written and oral, between the parties with respect to the
subject matter hereof. No supplement, modification or amendment of this Agreement will be binding
unless executed in writing by Seller and Buyer. No waiver of any of the provisions of this
Agreement will be deemed to be or will constitute a continuing waiver. No waiver will be binding
unless executed in writing by the party making the waiver.

          4.3 Construction. In the event an ambiguity or question of intent or interpretation
arises, this Agreement will be construed as if drafted jointly by the parties and no presumption or
burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement. The headings contained in this Agreement are included for
purposes of convenience only, and will not affect the meaning or interpretation of this Agreement.

          4.4 Severability. If any provision of this Agreement or the application of any
provision hereof to any party or circumstance will, to any extent, be adjudged invalid or
unenforceable, the application of the remainder of such provision to such party or circumstance,

3

 

the application of such provision to other parties or circumstances, and the application of
the remainder of this Agreement will not be affected thereby.

          4.5 No Assignment. The rights and obligations of the parties hereunder may not be
assigned by one party without the prior written consent of the other party hereto. Any attempted
assignment in violation of this Section 4.5 shall be void.

          4.6 Further Instruments and Actions. The parties will execute such further
instruments and take such further action as may reasonably be necessary to carry out the intent of
this Agreement. Each party hereto will cooperate affirmatively with all other parties hereto, to
the extent reasonably requested by such parties, to enforce rights and obligations herein provided.

          4.7 Notices. All notices and other communications required or permitted hereunder
will be in writing and will be deemed to have been duly given when delivered in person or five
business days after being sent by registered or certified mail, return receipt requested, postage
prepaid or when dispatched by electronic facsimile transfer (if confirmed in writing by mail
simultaneously dispatched) or one business day after having been dispatched by a nationally
recognized overnight courier service:

	 	 	 
	If to Seller, to:

	 	Wolstein Business Enterprises, L.P.
	 

	 	c/o Baker Hostetler
	 

	 	3200 National City Center
	 

	 	1900 East Ninth Street
	 

	 	Cleveland, Ohio 44114
	 

	 	Attention: Albert T. Adams
	 

	 	Facsimile: (216) 696-0740
	 
	If to Buyer, to:

	 	Developers Diversified Realty Corporation
	 

	 	3300 Enterprise Parkway
	 

	 	Beachwood, Ohio 44122
	 

	 	Attention: Senior Vice President and General Counsel
	 

	 	Facsimile: (216)-755-1650

Any party hereto may change its address or facsimile number for the purposes of this
Section 4.7 by giving notice as provided herein.

          4.8 Governing Law. This Agreement is made under and will be construed and interpreted
in accordance with and governed by the laws of the State of Ohio, without regard to principles of
conflicts of law.

          4.9 Facsimile Signatures. This Agreement may be executed and delivered by facsimile
and upon such delivery the facsimile signature will be deemed to have the same effect as if the
original signature had been delivered to the other party.

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          4.10 Counterparts. This Agreement may be executed in two or more counterparts, each
of which will be deemed an original, but all of which together will constitute one and the same
instrument.

          4.11 Fees and Expenses. Each party shall bear and pay all costs and expenses incurred
by it in connection with this Agreement.

[Signatures appear on the next page.]

5

 

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 
	 	 	WOLSTEIN BUSINESS ENTERPRISES, L.P.
	 
	 	 	 	 	 	 
	 

	 	
	By:  	WBE, Inc., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 		By:  	/s/ Albert T. Adams 	 	 
	 

	 	 	 	 

Name: Albert T. Adams
	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	BUYER:
	 
	 	 	 	 	 	 
	 	 	DEVELOPERS DIVERSIFIED REALTY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:  	 	/s/ Daniel B. Hurwitz 	 	 
	 

	 	 	 

Name: Daniel B. Hurwitz
	 	 
	 

	 	 	Title:	 	 

 

 

EXHIBIT A

FORM OF

ASSIGNMENT OF LIMITED LIABILITY COMPANY INTEREST

See attached.

 

 

ASSIGNMENT OF

LIMITED LIABILITY COMPANY INTEREST

     THIS ASSIGNMENT OF LIMITED LIABILITY COMPANY INTEREST (this “Assignment”) is made and
entered into as of July 9, 2008, by and between Wolstein Business Enterprises, L.P., an Ohio
limited partnership (“Assignor”), and Developers Diversified Realty Corporation, an Ohio
corporation (“Assignee”). All capitalized terms used and not defined herein shall have the
meanings as set forth in the Purchase and Sale Agreement (the “Agreement”), made and
entered into as of July 9, 2008, by and between Assignor and Assignee.

RECITALS

     A. Assignor is currently the owner of a 25.2525% membership interest (the “Membership
Interest”) in RO & SW Realty LLC, a Delaware limited liability company (the “Company”).
The parties have entered into the Agreement whereby Assignee agreed to acquire Assignor’s
Membership Interest.

     B. Assignor desires to transfer and convey to Assignee all of its right, title and interest in
and to the Membership Interest, and Assignee desires to accept the Membership Interest.

AGREEMENT

     NOW, THEREFORE, the parties to this Assignment hereby agree as follows:

     1. Assignment of Membership Interest. In exchange for Buyer’s payment of the Purchase
Price and other good and valuable consideration, and on the terms and conditions provided in the
Agreement, Assignor hereby sells, transfers, assigns and conveys to Assignee all of Assignor’s
right, title and interest in and to the Membership Interest and the capital, profits and losses
thereof, free and clear of all Liens. Assignee hereby accepts Assignor’s assignment of the
Membership Interest to Assignee.

     2. Further Assurances. Assignor and Assignee mutually agree to cooperate and execute
and deliver such other instruments of sale, conveyance, transfer, assignment, assumption and
confirmation and take such further action as the other may reasonably deem necessary in order to
effectively convey, transfer and assign the Membership Interest.

     3. Integration, Modification and Waiver. This Assignment, together with the Agreement
(including the exhibits thereto), constitute the entire agreement between the parties concerning
the subject matter hereof and supersede all prior agreements and understandings, both written and
oral, between the parties with respect to the subject matter hereof. No supplement, modification
or amendment of this Assignment will be binding unless executed in writing by Assignor and
Assignee. No waiver of any of the provisions of this Assignment will be deemed to be or will
constitute a continuing waiver. No waiver will be binding unless executed in writing by the party
making the waiver.

1

 

     4. Construction. In the event an ambiguity or question of intent or interpretation
arises, this Assignment will be construed as if drafted jointly by the parties and no presumption
or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any
of the provisions of this Assignment. The headings contained in this Assignment are included for
purposes of convenience only, and will not affect the meaning or interpretation of this Assignment.

     5. Severability. If any provision of this Assignment or the application of any
provision hereof to any party or circumstance will, to any extent, be adjudged invalid or
unenforceable, the application of the remainder of such provision to such party or circumstance,
the application of such provision to other parties or circumstances, and the application of the
remainder of this Assignment will not be affected thereby.

     6. No Assignment. The rights and obligations of the parties hereunder may not be
assigned by one party without the prior written consent of the other party hereto. Any attempted
assignment in violation of this Section 6 shall be void.

     7. Governing Law. This Assignment is made under and will be construed and interpreted
in accordance with and governed by the laws of the State of Ohio, without regard to principles of
conflicts of law.

     8. Facsimile Signatures. This Assignment may be executed and delivered by facsimile
and upon such delivery the facsimile signature will be deemed to have the same effect as if the
original signature had been delivered to the other party.

     9. Counterparts. This Assignment may be executed in two or more counterparts, each of
which will be deemed an original, but all of which together will constitute one and the same
instrument.

     10. Fees and Expenses. Each party shall bear and pay all costs and expenses incurred
by it in connection with this Assignment.

[Signatures appear on the following page.]

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     IN WITNESS WHEREOF, the undersigned have executed this Assignment as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	ASSIGNOR:
	 
	 	 	 	 	 	 
	 	 	WOLSTEIN BUSINESS ENTERPRISES, L.P.
	 
	 	 	 	 	 	 
	 

	 	 
	By:  	WBE, Inc., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	

	By:  	 

	 	 
	 

	 	 
	 	 

Name: Albert T. Adams
	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE:
	 
	 	 	 	 	 	 
	 	 	DEVELOPERS DIVERSIFIED REALTY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:  	 	 	 	 
	 

	 	 	 

Name:
	 	 
	 

	 	 	Title:	 	 
	 
	Consent of
Manager
	 
	The Manager of the Company hereby acknowledges receipt of a copy of the foregoing Assignment and
consents to the admission of the Assignee as a substituted Member of the Company pursuant to
Section 8.03 of the Operating Agreement of the Company.
	 
	 

	 	 

Ronald J. Oehl, in his capacity as President of
TLM Realty Corp., which is Manager of TLM
Property Investments LLC, which is Manager of RO
& SW Realty, LLC
	 	 

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