Document:

Exhibit 10.4

 

FORM OF PURCHASE AGREEMENT

BY AND AMONG

DIESEL LTD.,

LNR PROPERTY CORPORATION 

AND

LNR CAPITAL CORPORATION

DATED AS OF [          ],
200[  ]

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I DEFINITIONS

  	
   

  
	
  Section 1.1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II PURCHASE AND SALE

  	
   

  
	
  Section 2.1

  	
  Purchase and Sale of CDO Interests

  	
   

  
	
  Section 2.2

  	
  Assumption of Liabilities

  	
   

  
	
  Section 2.3

  	
  Purchase
  Price

  	
   

  
	
  Section 2.4

  	
  The
  Closing

  	
   

  
	
  Section 2.5

  	
  Closing Deliveries

  	
   

  
	
  Section 2.6

  	
  Interest

  	
   

  
	
  Section 2.7

  	
  [CDO Documents Not Assigned

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLERS

  	
   

  
	
  Section 3.1

  	
  Organization and Authority

  	
   

  
	
  Section 3.2

  	
  Authorization; Execution and Delivery;
  Valid and Binding Agreement

  	
   

  
	
  Section 3.3

  	
  Noncontravention

  	
   

  
	
  Section 3.4

  	
  Title to the Acquired Assets

  	
   

  
	
  Section 3.5

  	
  LNR Common Stock

  	
   

  
	
  Section 3.6

  	
  Compliance with Laws

  	
   

  
	
  Section 3.7

  	
  Litigation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER

  	
   

  
	
  Section 4.1

  	
  Organization of Buyer

  	
   

  
	
  Section 4.2

  	
  Authorization; Execution and Delivery;
  Valid and Binding Agreement

  	
   

  
	
  Section 4.3

  	
  Noncontravention

  	
   

  
	
  Section 4.4

  	
  Certain Securities Law Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V COVENANTS OF THE PARTIES

  	
   

  
	
  Section 5.1

  	
  Consents and Approvals

  	
   

  
	
  Section 5.2

  	
  Further Assurances

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI SURVIVAL AND INDEMNITY

  	
   

  
	
  Section 6.1

  	
  Survival

  	
   

  
	
  Section 6.2

  	
  Indemnification by Sellers

  	
   

  
	
  Section 6.3

  	
  Indemnification by the Buyer

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII MISCELLANEOUS

  	
   

  
	
  Section 7.1

  	
  Press Releases and Public Announcements

  	
   

  
	
  Section 7.2

  	
  No Third-Party Beneficiaries

  	
   

  
	
  Section 7.3

  	
  Entire
  Agreement

  	
   

  
	
  Section 7.4

  	
  Succession and Assignment

  	
   

  
	
  Section 7.5

  	
  Counterparts

  	
   

  
	
  Section 7.6

  	
  Headings

  	
   

  
	
  Section 7.7

  	
  Notices

  	
   

  
	
  Section 7.8

  	
  Waiver of Jury Trial

  	
   

  
	
  Section 7.9

  	
  Amendments and Waivers

  	
   

  
	
  Section 7.10

  	
  Severability

  	
   

  

 

i

 

	
  Section 7.11

  	
  Construction

  	
   

  
	
   

  	
   

  
	
  Exhibits

  	
  Exhibit Name

  	
   

  
	
   

  	
   

  
	
  A

  	
  CDO Interests

  	
   

  
					

 

ii

 

FORM OF
PURCHASE AGREEMENT

 

PURCHASE
AGREEMENT dated as of [               ],
200[ ] (this “Agreement”), by and between Diesel Ltd., a Bermuda
exempted company (“Diesel”), LNR Property Corporation, a Delaware
corporation (“LNR Property”, and together with Diesel, “Sellers”)
and LNR Capital Corporation, a Maryland corporation (“Buyer”).  Sellers and Buyer are referred to
collectively herein as the “Parties.”

 

WHEREAS,
Diesel owns all right, title and interest in the assets set forth on Exhibit A
attached hereto (the “CDO Interests”);

 

WHEREAS, LNR
Property owns all right, title and interest in all of the issued and
outstanding shares of common stock of LNR DSHI Legacy, Inc., a Florida
corporation (the “LNR Sub Common Stock” and, together with the CDO
Interests, the “Interests”); and

 

WHEREAS,
Sellers desire to sell and assign to Buyer, and Buyer desires to purchase and
assume from Sellers, in accordance with the terms and conditions of this
Agreement, all of the Sellers’ right title and interest in the Acquired Assets
(as defined below) and the Assumed Liabilities (as defined below);

 

NOW,
THEREFORE, in consideration of the foregoing and the respective
representations, warranties, covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.1             Definitions.  The following terms have the respective
meanings ascribed thereto below:

 

“Acquired
Assets” means, collectively, all of Sellers’ right, title, and interest in
and to the following:  (a) the
Interests and (b) cash in the aggregate amount collected by Diesel
relating to the CDO Interests (whether pursuant to the terms thereof, or
dispositions thereof or otherwise) from and after the Closing Date.

 

“Affiliate”
has the meaning set forth in Rule 12b-2 of the regulations promulgated
under the Securities Exchange Act of 1934, as amended.

 

“Agreement”
has the meaning set forth in the Preamble to this Agreement.

 

“Assumed
Liabilities” means, other than the Excluded Liabilities, all Liabilities of
the Sellers solely arising out of the Interests, including obligations arising
under swaps relating to the Interests, on or after the Closing Date.

 

“Business
Day” shall mean any day other than Saturday, Sunday or any other day on
which banks in New York, New York are permitted or required to be closed.

 

 

“Buyer”
has the meaning set forth in the Preamble to this Agreement.

 

“Buyer
Indemnified Parties” has the meaning set forth in Section 6.2.

 

“CDO”
means a collateralized debt obligation issued by a special purpose entity
established for the purpose of issuing notes and preferred equity interests
that are secured by debt issued by various real estate investment trusts,
investment grade and non-investment grade commercial mortgage-backed
securities, and other real estate-related collateral.

 

“CDO
Documents” means, with respect to the CDO Interests, all agreements,
contracts and instruments relating to the creation, distribution, transfer,
ownership and management of such CDO Interests and the CDO from which such CDO
Interest is derived, including, without limitation, the following: (i) all
custody and administration agreements, indentures, notes, preferred equity
interests, fiscal agency agreements, hedge agreements, purchase agreements,
transfer agent agreements and similar agreements or arrangements (other than
agreements, contracts and commitments relating to investments underlying the
CDO); and (ii) all investment advisory, management, collateral management,
disposition consultant, servicing, administration and similar agreements by
which the relevant CDO is bound; and (iii) all private placement
memoranda, offering circulars or other offering material with respect to the
offering for sale of the CDO.

 

“CDO
Interests” has the meaning set forth in the Recitals to this Agreement.

 

“Closing”
has the meaning set forth in Section 2.4.

 

“Closing
Date” means the date hereof.

 

“Contemplated
Transactions” means the sale, assignment, transfer, conveyance and delivery
by the Sellers for the Purchase Price, and the acquisition by the Buyer of the
Acquired Assets and the assumption by the Buyer of the Assumed Liabilities.

 

“Diesel”
has the meaning set forth in the Preamble to this Agreement.

 

“Diesel
Purchase Price” has the meaning set forth in 2.3(a).

 

“Excluded
Liabilities” means all Liabilities of the Sellers pertaining to the
Interests arising out of, or relating to, any period, event, action or omission
prior to the Closing Date as specifically set forth in Schedule 1
attached hereto..

 

“Governmental
Authority” means any: (i) nation, state, county, city, town, village,
district, or other jurisdiction of any nature; (ii) federal, state, local,
municipal, foreign, or other government; (iii) governmental or
quasi-governmental authority of any nature (including any governmental agency,
branch, department, official, or entity and any court or other tribunal); or (iv) body
exercising, or entitled to exercise, any administrative, executive, judicial,
legislative, police, regulatory, or taxing authority or power of any nature.

 

“Law”
has the meaning set forth in Section 3.3.

 

2

 

“Liability”
means any debt, claim, obligation or liability (whether known or unknown,
whether asserted or unasserted, whether absolute or contingent, whether accrued
or unaccrued, whether liquidated or unliquidated, and whether due or to become
due).

 

“Lien”
means any lien, charge, option, pledge, assignment, mortgage, security
interest, preemptive right, right of first refusal or encumbrance of any kind.

 

“Loss”
means any actual loss, liability, obligation, payment, assessment, costs or
expenses, including without limitation interest, penalties, fines, and
reasonable attorneys’ fees and expenses (including those incurred in connection
with the enforcement of a Party’s right to indemnification hereunder);
provided, however, that in no event shall the term “Loss” include punitive,
special, indirect, consequential or other damages other than direct damages.

 

“LNR
Property” has the meaning set forth in the Preamble to this Agreement.

 

“LNR Sub
Common Stock” has the meaning set forth in the Recitals to this Agreement.

 

“LNR Sub
Purchase Price” has the meaning set forth in 2.3(a).

 

“Organizational
Documents” means (a) the articles or certificate of incorporation and
the bylaws of a corporation; (b) the partnership agreement and any
statement of partnership of a general partnership; (c) the limited
partnership agreement and the certificate of limited partnership of a limited
partnership; (d) the certificate of formation and operating agreement of a
limited liability company; (e) any charter, bylaw, operating agreement or
similar document not described in (a) through (d) above adopted or
filed in connection with the creation, formation, organization or operation of
a Person, including the foreign equivalent thereof with respect to non-US
Persons; and (f) any amendment or contemplated amendment to any of the
foregoing.

 

“Parties”
has the meaning set forth in the Preamble to this Agreement.

 

“Permitted
Lien” means any (i) Liens being contested by the Sellers in good faith
and for which appropriate reserves are reflected in the Sellers’ financial
statements, (ii) Liens for Taxes not yet due or payable, and (iii) Liens;
covenants; conditions; building, zoning or other restrictions; reservations;
rights; utility or other easements; encumbrances; encroachments; installments
of special assessments not yet due and payable; set-back requirements; and
other similar items generally applicable and/or affecting title to property of
a similar character, in each case that would not, individually or in the
aggregate, interfere with or diminish in a material and adverse manner the
Buyer’s use or ownership of the Interests.

 

“Person”
means an individual, a partnership, a corporation, a limited liability company,
an association, a joint stock company, a trust, a joint venture, an
unincorporated organization, or a Governmental Entity.

 

“Purchase
Price” means, collectively, the Diesel Purchase Price and the LNR Sub Purchase
Price.

 

3

 

“Required
Transfer Documentation” means any documentation necessary to transfer and
assign the Interests and the Assumed Liabilities to the Buyer, including
without limitation any documentation required under the CDO Documents, and
other good and sufficient instruments of conveyance and transfer reasonably
necessary to vest in the Buyer all the legal and equitable, title and interest
of Sellers in the Interests and necessary to vest in the Buyer all legal
responsibility for the Assumed Liabilities.

 

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

 

“Sellers”
has the meaning set forth in the Preamble to this Agreement.

 

“Sellers
Indemnified Parties” has the meaning set forth in Section 6.3.

 

ARTICLE II

PURCHASE AND SALE

 

Section 2.1             Purchase and Sale
of the Interests.  Upon the terms and
subject to the conditions set forth in this Agreement, on the Closing Date (as
defined below) the Sellers (as applicable) hereby agree to sell, convey,
transfer, assign and deliver to Buyer and Buyer hereby agrees to purchase from
each such  Sellers (as applicable) all of
the Sellers’ right, title and interest in and to the CDO Interests for the
Diesel Purchase Price (as defined below) and the LNR Sub Common Stock for the
LNR Sub Purchase Price (as defined below).

 

Section 2.2             Assumption of
Liabilities.  On and subject to the
terms and conditions of this Agreement and in consideration of the payment by
the Buyer of the Purchase Price, the Buyer hereby assumes and becomes
responsible for, and the Sellers hereby transfer, convey, and assign or causes
to be transferred, conveyed and assigned, to the Buyer, all of the Assumed
Liabilities.

 

Section 2.3             Purchase Price.  (a)  On the Closing Date, Buyer shall
pay to Diesel an amount equal to $[560,000,000] (the “Diesel Purchase Price”)
and shall pay to LNR Property an amount equal to $[          ] (the “LNR Sub Purchase Price”).

 

(b)           The
Diesel Purchase Price and the LNR Sub Purchase Price shall be paid by Buyer by
way of wire transfer of immediately available funds to the account(s) of
Sellers specified by Sellers to Buyer in writing.

 

Section 2.4             The Closing.  The closing of the transactions contemplated
by this Agreement (the “Closing”) is taking place in connection with the
consummation of the Buyer’s initial public offering of its common stock and
with the execution of this Agreement at the offices of Schulte Roth &
Zabel LLP, 919 Third Avenue, New York, New York 10022 or at such time and place
as the Parties shall mutually agree.  For
all purposes hereunder (a) the date of this Agreement shall be referred to
as the “Closing Date,” and (ii) the Closing shall be deemed to have
occurred at 11:59 p.m. on the Closing Date.

 

4

 

Section 2.5             Closing Deliveries.  Contemporaneously herewith, and
simultaneously with the other Parties’ deliveries hereunder:

 

(a)           Sellers
shall deliver to Buyer:

 

(i)            the
Acquired Assets, including, without limitation, copies of, and all of the
Sellers’ right title and interest to, any CDO Documents in its possession or in
the possession of a third party custodian;

 

(ii)           the
Required Transfer Documentation, executed by the Sellers and, to the extent
required, any third party custodian;

 

(iii)          any
original notes, preferred shares or common stock, including the LNR Sub Common
Stock, duly endorsed in blank; and

 

(iv)          all
notices and instructions required to be delivered to DTC or any other holder of
a global note or entity that maintains the book entry registration system for
the CDO Interests, executed by the Sellers.

 

(b)           Buyer
shall deliver to Diesel:

 

(i)            the
Diesel Purchase Price; and

 

(ii)           any
Required Transfer Documentation, executed by the Buyer.

 

(c)           Buyer
shall deliver to LNR Property:

 

(i)            the
LNR Sub Purchase Price; and

 

(ii)           any
Required Transfer Documentation, executed by the Buyer.

 

Section 2.6             Interest.  Buyer agrees to transmit to Diesel any
accrued interest actually received by Buyer with respect to the CDO Interests
for the period prior to the Closing within 5 Business Days of the receipt
thereof by Buyer.  If accrued interest is
sent to Diesel with respect to the CDO Interests for the period following the
Closing, Diesel agrees to transmit any such accrued interest to Buyer within 5
Business Days of the receipt thereof by Diesel.

 

Section 2.7             CDO Interests Not
Assigned.  To
the extent that the transfer or assignment of any CDO Interests or CDO
Documents requires the consent of another party thereto, and such consent has
not been obtained as of the date hereof, then:

 

5

 

(a)           this
Agreement shall not constitute an agreement to transfer or assign the same if
an assignment or attempted assignment constitutes a breach of such CDO Interests
or a violation of applicable law, unless the Buyer agrees to hold harmless
Sellers with respect thereto;

 

(b)           the
Parties agree to use reasonable commercial efforts to obtain the written
consent of the counterparties thereto with respect to the transfer or
assignment of such CDO Interests;

 

(c)           the
Parties shall in good faith negotiate to effectuate such arrangements as are
necessary to put the Parties in as close an economic position as they would be
in had the relevant consents been obtained and the relevant CDO Interests
assigned contemporaneously herewith.  The
Parties acknowledge and agree that any such arrangements could require, among
other things, (i) Sellers to remain subject to its obligations under any
CDO Interests with respect to which a consent to assignment is required under
the applicable contract but has not been delivered, (ii) the Buyer to
perform on behalf of Sellers the obligations of Sellers under such contract,
and to promptly reimburse Sellers for any and all reasonable out-of-pocket
costs, expenses or losses, including reasonable attorneys’ fees, incurred by
Sellers as a result of Sellers taking, at the request of the Buyer, legal or
other action on behalf of or for the benefit of the Buyer with respect to such
contracts or as a result of the Buyer’s failure to perform Sellers’ obligations
under such contracts arising on or after the Closing and to indemnify Sellers
for any Loss relating to the Buyer’s failure to so perform, (iii) Sellers
to promptly remit to the Buyer any payments or refunds received by Sellers from
any party under the applicable contract, (iv) Sellers to cooperate in any
lawful arrangement requested by the Buyer designed to provide the benefits of
the Acquired Assets to the Buyer, and (v) Sellers to enforce, at the request
of and for the account of and the expense of the Buyer, any rights of Sellers
arising from any such CDO Interests against any third party, including the
right to elect to terminate in accordance with the terms thereof upon the
advice of the Buyer, all in a manner consistent with the purposes and intent of
this Agreement; and

 

(d)           if
and when any such consent shall be obtained, Sellers shall promptly transfer or
assign, as applicable, such CDO Interests to the Buyer without payment of
additional consideration.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

OF SELLERS

 

The Sellers
hereby represent and warrant to the Buyer, severally, and not jointly, as of
the date of this Agreement, as follows:

 

Section 3.1             Organization and
Authority.  Diesel is a corporation
duly formed, validly existing, and in good standing under the laws of Bermuda
with all requisite power and authority to execute and deliver this Agreement
and Required Transfer Documentation to be provided by it and to perform the
respective obligations to consummate the Contemplated Transactions hereunder
and thereunder applicable to it.  LNR
Property is a corporation duly formed, validly existing, and in good standing
under the laws of Delaware with all requisite

 

6

 

power and authority to execute
and deliver this Agreement and Required Transfer Documentation to be provided
by it and to perform the respective obligations to consummate the Contemplated
Transactions hereunder and thereunder applicable to it.

 

Section 3.2             Execution and
Delivery; Valid and Binding Agreement.  
(a)   The execution, delivery
and performance by Sellers of this Agreement and the Required Transfer
Documentation, and the consummation of the Contemplated Transactions, have been
duly and validly authorized by all requisite corporate proceedings on the part
of Sellers, and no other corporate proceedings on the part of Sellers is
necessary to authorize the execution, delivery and performance by Sellers of
this Agreement or the Required Transfer Documentation.

 

(b)           This
Agreement has been duly executed and delivered by Sellers and, assuming that
this Agreement is the valid and binding agreement of the Buyer, constitutes a
valid and binding obligation upon Sellers, enforceable against Sellers in
accordance with its terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other laws of
general application affecting enforcement of creditors’ rights or by general
principles of equity.

 

Section 3.3             Noncontravention.  Neither the execution and the delivery of
this Agreement by Sellers, nor the consummation by Sellers of the Contemplated
Transactions, will (a) violate (i) any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
restriction (each, a “Law”) of any Governmental Entity to which Sellers
are subject, (ii) any provision of the Organizational Documents of
Sellers, or (iii) any agreement, indenture or instrument to which any of
the Sellers is a party, or (b) require Sellers to give any notice to, make
any filing with, or obtain any authorization, consent, or approval of any
Governmental Entity or other third party in order for Sellers to consummate the
Contemplated Transactions, except, in the case of the foregoing clauses (a)(i),
(a) (iii), and(b), for any such violations, conflicts, breaches, defaults,
rights of acceleration, terminations, cancellations, requirements or other
actions or notices that are not reasonably likely, individually or in the
aggregate, to result in a material adverse effect on the Acquired Assets, taken
as a whole, or the ability of the Sellers to consummate the Contemplated
Transactions.

 

Section 3.4             Title to the
Acquired Assets. As of the date of this Agreement, all of the Acquired
Assets are owned by Sellers and Sellers have good title to all of such Acquired
Assets, free and clear of Liens other than Permitted Liens.  At Closing, Sellers will transfer, and Buyer
will acquire, good and marketable title to the Acquired Assets, free and clear
of any Liens other than Permitted Liens.

 

Section 3.5             LNR Common Stock.
The LNR Common Stock has been validly issued, fully paid and non-assessable and
not subject to preemptive rights of stockholders.

 

Section 3.6             Compliance with
Laws. Sellers have been and are in compliance with all Laws applicable to
the Acquired Assets, except where such noncompliance would not result in any
change, event or circumstance that has or is reasonably likely, individually or
in the aggregate, to have a material adverse effect on the Acquired Assets,
taken as a whole or the ability of the Sellers to consummate the Contemplated
Transactions.

 

7

 

Section 3.7             Litigation.  As of the date of this Agreement, there is no
action, suit, investigation or proceeding pending, or, to the knowledge of
Sellers, threatened against Sellers before any Governmental Entity specifically
relating to the ownership of the Acquired Assets.  Sellers have no pending action against any
third party relating specifically to the ownership of the Acquired Assets.  There are no unsatisfied judgments or
material outstanding orders, writs, injunctions, decrees, settlements,
stipulations or awards (whether rendered by a court or Governmental Entity or
by arbitration) against Sellers specifically relating to the ownership of the
Acquired Assets.  There is in effect no
temporary restraining order, injunction or similar equitable relief applicable
to Sellers prohibiting or seeking to prohibit consummation of the Contemplated
Transactions.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

 

The Buyer
hereby represents and warrants to the Sellers, as of the date of this
Agreement, as follows:

 

Section 4.1             Organization of
Buyer.  Buyer is a corporation duly
formed, validly existing, and in good standing under the laws of the State of
Maryland with all requisite power and authority to execute and deliver this
Agreement and Required Transfer Documentation and to perform the respective obligations
to consummate the Contemplated Transactions hereunder and thereunder applicable
to it.

 

Section 4.2             Execution and
Delivery; Valid and Binding Agreement. 
(a)   The execution, delivery
and performance by Buyer of this Agreement and the Required Transfer
Documentation to be delivered by it, and the consummation of the Contemplated
Transactions applicable to it, have been duly and validly authorized by all
requisite corporate proceedings on the part of Buyer, and no other corporate
proceedings on its part are necessary to authorize the execution, delivery and
performance of this Agreement or the 
Required Transfer Documentation to be delivered by it.

 

(b)           This
Agreement has been duly executed and delivered by Buyer and, assuming that this
Agreement is the valid and binding agreement of Sellers, constitutes the valid
and binding obligation of Buyer, enforceable against Buyer in accordance with
its terms, except as such enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other laws of general application
affecting enforcement of creditors’ rights or by general principles of equity.

 

Section 4.3             Noncontravention.  Neither the execution and the delivery of
this Agreement by the Buyer, nor the consummation by the Buyer of the
Contemplated Transactions, will (a) violate (i) any constitution,
statute, regulation, rule, injunction, judgment, order, decree, ruling, charge,
or other restriction (each, a “Law”) of any Governmental Entity to which
Buyer is subject, (ii) any provision of the Organizational Documents of
Buyer, or (iii) any agreement, indenture or instrument to which the Buyer
is a party, or (b) require Buyer to give any notice to,

 

8

 

make any filing with, or obtain
any authorization, consent, or approval of any Governmental Entity or other
third party in order for Buyer to consummate the Contemplated Transactions,
except, in the case of the foregoing clauses (a)(i), (a)(iii) and(b), for
any such violations, conflicts, breaches, defaults, rights of acceleration,
terminations, cancellations, requirements or other actions or notices that are
not reasonably likely, individually or in the aggregate, to result in a
material adverse effect on the ability to consummate the Contemplated
Transactions.

 

Section 4.4             Certain Securities
Law Matters. (a)  Buyer is an “accredited investor” as such term is
defined in Regulation D promulgated under the Securities Act.  Buyer is acquiring the Interests for its own
account for investment and with no present intention of distributing or
reselling such securities or any part thereof in any transaction which would
constitute a “distribution” within the meaning of the Securities Act.  Buyer understands that the Interests have not
been registered under the Securities Act or any state securities laws and are
being transferred to Buyer in part, in reliance on the foregoing
representation.  Buyer understands that
the Interests may not be sold, transferred, offered for sale, pledged,
hypothecated or otherwise disposed of without registration under the Securities
Act and any applicable state securities laws, except pursuant to an exemption
from such registration under such Act and such laws.  Buyer is able to bear the economic risk of
holding the Interests for an indefinite period, and has knowledge and
experience in financial and business matters such that it is capable of
evaluating the risks of the investment in the Interests. Buyer has had the
opportunity to perform such due diligence regarding the Interests as deemed by
it to be reasonably necessary and appropriate in the circumstances, and except
for the specific representations and warranties set forth herein, is relying
solely upon its own due diligence and analysis of the economic, legal and tax
aspects of owning the Interests and consummating the Contemplated Transactions.

 

ARTICLE V

COVENANTS OF THE PARTIES

 

Section 5.1             Consents and
Approvals.  Subject to the terms
hereof, with respect to any consents, approvals or filings which have not been
obtained or made as of the date hereof, or which by the nature of the relevant
consent, approval or filing cannot be obtained or made prior to Closing, the
Parties shall use their respective commercially reasonable efforts to, as
promptly as practicable (i) take, or cause to be taken, all actions, and
do, or cause to be done, and to assist and cooperate with the other parties in
doing, all things necessary, proper or advisable to obtain such consents or
approvals (ii) make all necessary filings, and thereafter make any other
required submissions, with respect to this Agreement and the  Required Transfer Documentation required
under any applicable federal or state securities Laws and any other applicable
Law, and (iii) execute and/or deliver any additional instruments necessary
to fully carry out the purposes of this Agreement.  The Parties shall cooperate with each other
in connection with obtaining such consents or approvals or the making of all
such filings, including providing copies of all such documents to the
non-filing party and its advisors prior to filing.  The Parties shall use their respective
commercially reasonable efforts to furnish to each other all information
required for any application or other filing to be made pursuant to the rules and
regulations of any applicable Law in connection with any of the transactions
contemplated hereby.

 

9

 

Section 5.2             Further Assurances.  The parties shall cooperate reasonably with
each other and with their respective representatives in connection with any
steps required to be taken as part of their respective obligations under this
Agreement, and shall (a) furnish upon request to each other such further
information; (b) execute and deliver to each other such other documents;
and (c) do such other acts and things, all as the other party may
reasonably request for the purpose of carrying out the intent of this
Agreement; provided, however, that neither Party shall be required to make any
material change to its business, expend any material funds or incur any other
material burden in order to comply with this Section 5.2.

 

ARTICLE VI

SURVIVAL AND INDEMNITY

 

Section 6.1             Survival.  All of the representations and warranties of
Sellers contained in Article III above, and all of the representations and
warranties of the Buyer contained in Article IV above, shall survive the
Closing hereunder and continue in full force and effect for a period of one
year following the Closing Date.  The
Parties’ respective covenants and agreements to be performed at or after the
Closing Date contained in this Agreement shall survive indefinitely unless
otherwise set forth herein.

 

Section 6.2             Indemnification by
Sellers.  Sellers agree to indemnify
the Buyer and its Affiliates and their officers, directors, managers, members,
employees and stockholders (collectively, the “Buyer Indemnified Parties”)
from, and hold them harmless against any Losses, which any of the Buyer
Indemnified Parties sustain that are caused by, arise out of or are a result of
any of the following: (i) any material breach of any of the
representations and warranties of Sellers contained in this Agreement (except
for those representations and warranties that are qualified by materiality, for
which the Sellers agree to indemnify for any breach); or (ii) any material
breach of, or failure to perform, any covenant or agreement of Sellers
contained in this Agreement.

 

Section 6.3             Indemnification by
the Buyer. Buyer agrees to indemnify Sellers, and its Affiliates, officers,
directors, managers, members, employees and stockholders (collectively, the “Sellers
Indemnified Parties”) from, and hold them harmless against, any Losses
which any of the Sellers Indemnified Parties suffer, sustain or become subject
to that are caused by or are a result of any of the following: (i) any
material breach of any of the representations and warranties of the Buyer
contained in this Agreement (except for those representations and warranties
that are qualified by materiality, for which the Buyer agrees to indemnify for
any breach), or (ii) any material breach of, or failure to perform, any
covenant or agreement of the Buyer contained in this Agreement, or (iii) the
Assumed Liabilities.

 

10

 

ARTICLE VII

 

MISCELLANEOUS

 

Section 7.1             Press
Releases and Public Announcements. 
No Party shall issue any press release or make any public announcement
relating to the subject matter of this Agreement without the prior written
approval of the other Party; provided, however, that any Party may make any
public disclosure required by applicable Law (in which case the disclosing
Party will use commercially reasonable efforts to advise the other Party prior
to making the disclosure).

 

Section 7.2             No Third-Party
Beneficiaries.  Except as set forth in Article VI with
respect to Sellers Indemnified Parties and Buyer Indemnified Parties, this
Agreement shall not confer any rights or remedies upon any Person other than
the Parties and their respective successors and permitted assigns.

 

Section 7.3             Entire Agreement.  This Agreement constitutes the entire
agreement between the Parties and supersede any prior understandings,
agreements, or representations by or between the Parties, written or oral, to
the extent they related in any way to the subject matter hereof and thereof.

 

Section 7.4             Succession and
Assignment.  This Agreement shall be
binding upon and inure to the benefit of the Parties named herein and their
respective successors and permitted assigns. No Party may assign either this
Agreement or any of its rights, interests, or obligations hereunder without the
prior written approval of the other Party.

 

Section 7.5             Counterparts.  This Agreement may be executed in one or more
counterparts, and by different parties on different counterparts, each of which
shall be deemed an original but all of which together will constitute one and
the same instrument.

 

Section 7.6             Headings.  The section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

Section 7.7             Notices.  All notices, requests, demands, claims, and
other communications hereunder will be in writing. Any notice, request, demand,
claim, or other communication hereunder shall be deemed duly given if (and then
three Business Days after) it is sent by registered or certified mail, return
receipt requested, postage prepaid, and addressed to the intended recipient as
set forth below:

 

If to Diesel:

 

Diesel Ltd.

c/o LNR Property Holdings Ltd.

1601 Washington Avenue, Suite 800

Miami Beach, Florida 33139

Attention: General Counsel

Facsimile: (305) 695-5500

 

11

 

Copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Facsimile: (212) 593-5955

Attention: André Weiss, Esq.

 

If to LNR Property:

 

LNR Property Corporation

c/o LNR Property Holdings Ltd.

1601 Washington Avenue, Suite 800

Miami Beach, Florida 33139

Attention: General Counsel

Facsimile: (305) 695-5500

 

Copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Facsimile: (212) 593-5955

Attention: André Weiss, Esq.

 

If to the Buyer:

 

LNR Capital Corporation

c/o LNR Property Holdings Ltd.

1601 Washington Avenue, Suite 800

Miami Beach, Florida 33139

Attention: General Counsel

Facsimile: (305) 695-5500

 

Copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Facsimile: (212) 593-5955

Attention: André Weiss, Esq.

 

Any Party may
send any notice, request, demand, claim, or other communication hereunder to
the intended recipient at the address set forth above using any other means
(including personal delivery, expedited courier, messenger service, telecopy,
telex, ordinary mail, or electronic mail), but no such notice, request, demand,
claim, or other communication shall be deemed to have been duly given unless
and until it actually is received by the intended

 

12

 

recipient. Any Party may change the address to which notices, requests,
demands, claims, and other communications hereunder are to be delivered by
giving the other Party notice in the manner herein set forth.   This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of New York without
giving effect to any choice or conflict of law provision or rule (whether
of the State of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New
York.  Any proceeding seeking to enforce
any provision of, or based on any right arising out of, this Agreement may only
be brought against any of the Parties in the courts of the State of New York,
County of New York, or, if it has or can acquire jurisdiction, in the United
States District Court for the Southern District of New York, and each of the
Parties consents to the jurisdiction of such courts (and of the appropriate
appellate courts) in any such action or proceeding and waives any objection to
venue laid therein.

 

Section 7.8             Waiver of Jury
Trial.  EACH PARTY ACKNOWLEDGES AND
AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.  EACH PARTY CERTIFIES AND
ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH
SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND (C) EACH
SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH HEREIN.

 

Section 7.9             Amendments and
Waivers.  No amendment of any
provision of this Agreement shall be valid unless the same shall be in writing
and signed by the Parties.  No waiver by
any Party of any default, misrepresentation, or breach of warranty or covenant
hereunder, whether intentional or not, shall be deemed to extend to any prior
or subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence.

 

Section 7.10           Severability.  Any term or provision of this Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

 

Section 7.11           Construction.
The Parties have participated jointly in the negotiation and drafting of this
Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the Parties
and no presumption or burden of proof shall arise favoring or disfavoring any
Party by virtue of the authorship of any of the provisions of this Agreement.
Any reference to any federal, state, local, or foreign statute or law shall be
deemed also to refer to all rules and regulations promulgated

 

13

 

thereunder, unless the context
requires otherwise. The word “including” means “including without limitation.”

 

[SIGNATURES ON FOLLOWING PAGE]

 

14

 

IN WITNESS
WHEREOF, the Parties have executed this Agreement as of the date first above
written.

 

	
   

  	
  DIESEL LTD.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  LNR PROPERTY CORPORATION

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  LNR CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit A

 

[Diesel CDO Interests]Exhibit 10.5

 

 

FORM OF
CONTRIBUTION AND EXCHANGE AGREEMENT

 

 

BY
AND AMONG

 

 

LNR
SECURITIES HOLDINGS, LLC

 

AND

 

LNR
CAPITAL LIMITED PARTNERSHIP

 

 

DATED
AS OF [            ],
200[ ]

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE I
  DEFINITIONS

  	
   

  
	
  Section 1.1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II CONTRIBUTION AND EXCHANGE

  	
   

  
	
  Section 2.1

  	
  Exchange

  	
   

  
	
  Section 2.2

  	
  Assumption of Liabilities

  	
   

  
	
  Section 2.3

  	
  The Closing

  	
   

  
	
  Section 2.4

  	
  Closing Deliveries

  	
   

  
	
  Section 2.5

  	
  Interest

  	
   

  
	
  Section 2.6

  	
  Interests
  Not Assigned

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REPRESENTATIONS AND
  WARRANTIES OF LNR SECURITIES

  	
   

  
	
  Section 3.1

  	
  Organization and Authority

  	
   

  
	
  Section 3.2

  	
  Execution and Delivery; Valid and Binding Agreement

  	
   

  
	
  Section 3.3

  	
  Noncontravention

  	
   

  
	
  Section 3.4

  	
  Title to Acquired Assets

  	
   

  
	
  Section 3.5

  	
  Compliance with Laws

  	
   

  
	
  Section 3.6

  	
  Litigation

  	
   

  
	
  Section 3.7

  	
  Certain Securities Law Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV REPRESENTATIONS AND
  WARRANTIES OF LNR OP

  	
   

  
	
  Section 4.1

  	
  Organization of LNR OP

  	
   

  
	
  Section 4.2

  	
  Execution and Delivery; Valid and Binding Agreement

  	
   

  
	
  Section 4.3

  	
  Noncontravention

  	
   

  
	
  Section 4.4

  	
  Certain Securities Law Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V COVENANTS OF THE PARTIES

  	
   

  
	
  Section 5.1

  	
  Consents and Approvals

  	
   

  
	
  Section 5.2

  	
  Further Assurances

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI SURVIVAL AND INDEMNITY

  	
   

  
	
  Section 6.1

  	
  Survival

  	
   

  
	
  Section 6.2

  	
  Indemnification by LNR Securities

  	
   

  
	
  Section 6.3

  	
  Indemnification by LNR OP

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII MISCELLANEOUS

  	
   

  
	
  Section 7.1

  	
  Press Releases and Public Announcements

  	
   

  
	
  Section 7.2

  	
  Entire Agreement

  	
   

  
	
  Section 7.3

  	
  Succession and Assignment

  	
   

  
	
  Section 7.4

  	
  Counterparts

  	
   

  
	
  Section 7.5

  	
  Headings

  	
   

  
	
  Section 7.6

  	
  Notices

  	
   

  
	
  Section 7.7

  	
  Waiver of Jury Trial

  	
   

  
	
  Section 7.8

  	
  Amendments and Waivers

  	
   

  
	
  Section 7.9

  	
  Severability

  	
   

  

 

i

 

	
  Section 7.10

  	
  Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibits

  	
  Exhibit Name

  	
   

  
	
   

  	
   

  
	
  A

  	
  [the
  Interests]

  	
   

  
				

 

ii

 

FORM OF CONTRIBUTION
AND EXCHANGE AGREEMENT

 

This CONTRIBUTION AND EXCHANGE AGREEMENT dated as of [             ],
200[ ] (this “Agreement”), is made by and between LNR Securities
Holdings, LLC, a Delaware Limited Liability Company (“LNR Securities”),
and LNR Capital Limited Partnership, a Delaware Limited Partnership (“LNR OP”).  LNR OP and LNR Securities are referred to
collectively herein as the “Parties.”

 

WHEREAS, LNR Securities owns all right, title and interest in the
assets set forth on Exhibit A attached hereto (the “Interests”);

 

WHEREAS, LNR Securities desires to contribute, transfer and assign to
LNR OP, and LNR OP desires to acquire and assume from LNR Securities, in
accordance with the terms and conditions of this Agreement, all of LNR
Securities’ right, title, and interest in the Acquired Assets and the Assumed
Liabilities (as defined below)],

 

WHEREAS, in exchange for the Acquired Assets, LNR Securities desires to
acquire from LNR OP, and LNR OP desires to issue to LNR Securities, [    ] Common Units (as such term is defined in
the LNR OP Partnership Agreement) of LNR OP (the “OP Units”);

 

NOW, THEREFORE, in consideration of the foregoing and the respective
representations, warranties, covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.1             Definitions.  The following terms have the respective
meanings ascribed thereto below:

 

“Acquired Assets” means, collectively, all of LNR Securities’
right, title, and interest in and to the following:  (a) the Interests (b) cash in the
aggregate amount collected by LNR Securities relating to the Interests (whether
pursuant to the terms thereof, or dispositions thereof or otherwise) from and
after the Closing Date.

 

“Affiliate” has the meaning set forth in Rule 12b-2 of the
regulations promulgated under the Securities Exchange Act of 1934, as amended.

 

“Agreement” has the meaning set forth in the Preamble to this
Agreement.

 

“Assumed Liabilities” means, other than the Excluded
Liabilities, all Liabilities of LNR Securities solely arising out of the
Interests, including obligations arising under swaps relating to the Interests
on or after the Closing Date.

 

“Business Day” shall mean any day other than Saturday, Sunday or
any other day on which banks in New York, New York are permitted or required to
be closed.

 

 

“CMBS” means any pass-through certificate issued by a
securitization vehicle and representing an ownership interest in a pool of
mortgage loans secured by commercial properties.

 

“Closing” has the meaning set forth in Section 2.2.

 

“Closing Date” means the date hereof.

 

“Contemplated Transactions” means the contribution, transfer,
assignment, conveyance and delivery by LNR Securities of the Acquired Assets in
exchange for the OP Units, and the acquisition by LNR OP of the Acquired
Assets, the assumption by LNR OP of the Assumed Liabilities and the issuance by
LNR OP, and the acquisition by LNR Securities of the OP Units.

 

“Documents” means, with respect to the Interests all agreements,
contracts and instruments relating to the creation, distribution, transfer,
ownership and management of such Interests, and the underlying assets from
which such Interest is derived, including, without limitation, the following: (i) all
custody and administration agreements, indentures, notes, preferred equity
interests, fiscal agency agreements, hedge agreements, purchase agreements,
transfer agent agreements, participation agreements, sub-participation
agreements, assignments, participation certificates and similar agreements or
arrangements (other than agreements, contracts and commitments relating to
investments underlying the Interests); (ii) all investment advisory,
management, collateral management, disposition consultant, servicing,
administration and similar agreements to which the relevant Interests are
subject; and (iii) all private placement memoranda, offering circulars or
other offering material with respect to the offering for sale of the CMBS.

 

“Excluded Liabilities” means all Liabilities of LNR Securities
pertaining to the Interests arising out of, or relating to, any period, event,
action or omission on or prior to the Closing Date as specifically set forth in
Schedule 1 attached hereto.

 

“Governmental Authority” means any: (i) nation, state,
county, city, town, village, district, or other jurisdiction of any nature; (ii) federal,
state, local, municipal, foreign, or other government; (iii) governmental
or quasi-governmental authority of any nature (including any governmental
agency, branch, department, official, or entity and any court or other
tribunal); or (iv) body exercising, or entitled to exercise, any
administrative, executive, judicial, legislative, police, regulatory, or taxing
authority or power of any nature.

 

“Interests” has the meaning set forth in the Recitals to this
Agreement.

 

“Law” has the meaning set forth in Section 3.3.

 

“Liability” means any debt, claim, obligation or liability
(whether known or unknown, whether asserted or unasserted, whether absolute or
contingent, whether accrued or unaccrued, whether liquidated or unliquidated,
and whether due or to become due).

 

“Lien” means any lien, charge, option, pledge, assignment,
mortgage, security interest, preemptive right, right of first refusal or
encumbrance of any kind.

 

2

 

“LNR OP” has the meaning set forth in the Preamble to this
Agreement.

 

“LNR OP Indemnified Parties” has the meaning set fort in section 6.3

 

“LNR OP Partnership Agreement” shall mean the Agreement of
Limited Partnership of LNR OP, dated as of [                    ].

 

“LNR Securities” has the meaning set forth in the Preamble to
this Agreement.

 

“LNR Securities Indemnified Parties” has the meaning set fort in
section 6.2

 

“OP Units” has the meaning set forth in the Recitals of this
Agreement.

 

“Organizational Documents” means (a) the articles or
certificate of incorporation and the bylaws of a corporation; (b) the
partnership agreement and any statement of partnership of a general
partnership; (c) the limited partnership agreement and the certificate of
limited partnership of a limited partnership; (d) the certificate of
formation and operating agreement of a limited liability company; (e) any
charter, bylaw, operating agreement or similar document not described in (a) through
(d) above adopted or filed in connection with the creation, formation,
organization or operation of a Person, including the foreign equivalent thereof
with respect to non-US Persons; and (f) any amendment or contemplated
amendment to any of the foregoing.

 

“Permitted Lien” means any (i) Liens being contested by LNR
Securities in good faith and for which appropriate reserves are reflected in
LNR Securities’ financial statements, (ii) Liens for Taxes not yet due or
payable, and (iii) Liens; covenants; conditions; building, zoning or other
restrictions; reservations; rights; utility or other easements; encumbrances;
encroachments; installments of special assessments not yet due and payable;
set-back requirements; and other similar items generally applicable and/or
affecting title to property of a similar character, in each case that would
not, individually or in the aggregate, interfere with or diminish in a material
and adverse manner the LNR OP’s use or ownership of the Acquired Assets.

 

“Parties” has the meaning set forth in the Preamble to this
Agreement.

 

“Person” means an individual, a partnership, a corporation, a
limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization, or a Governmental Entity.

 

“Required Transfer Documentation” means any documentation
necessary to transfer and assign the Interests and the Assumed Liabilities to
LNR OP, including without limitation any documentation required under the
Documents, and other good and sufficient instruments of conveyance and transfer
reasonably necessary to vest in the LNR OP all the legal and equitable, title
and interest of LNR OP in the Interests and to vest in LNR OP all legal
responsibility for the Assumed Liabilities.

 

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

 

3

 

ARTICLE II

 

CONTRIBUTION AND EXCHANGE

 

Section 2.1             Exchange.  Upon the terms hereof,

 

(a)           LNR Securities
hereby contributes, assigns, transfers and delivers to LNR OP, and LNR OP
hereby acquires from LNR Securities, all the right title and interest in the
Acquired Assets.

 

(b)           LNR OP hereby
agrees to issue to LNR Securities, and LNR Securities shall acquire from LNR
OP, [             ]
OP Units.

 

Section 2.2             Assumption of Liabilities.  On and subject to the terms and conditions of
this Agreement, LNR OP hereby assumes and becomes responsible for, and LNR
Securities hereby transfers, conveys, and assigns or causes to be transferred,
conveyed and assigned to LNR OP, all of the Assumed Liabilities.

 

Section 2.3             The Closing.  The closing of the transactions contemplated
by this Agreement (the “Closing”) is taking place in connection with the
consummation of LNR Capital Corporation’s initial public offering of its common
stock and with the execution of this Agreement at the offices of Schulte Roth &
Zabel LLP, 919 Third Avenue, New York, New York 10022 or at such time and place
as the Parties shall mutually agree.  For
all purposes hereunder (a) the date of this Agreement shall be referred to
as the “Closing Date,” and (ii) the Closing shall be deemed to have
occurred at 11:59 p.m. on the Closing Date.

 

Section 2.4             Closing Deliveries.  Contemporaneously herewith, and
simultaneously with the other Parties’ deliveries hereunder:

 

(a)           LNR Securities
shall deliver to LNR OP:

 

(i)            the Acquired Assets,
including, without limitation, copies of, and all of LNR Securities right title
and interest to, any Documents in its possession or in the possession of a
third party custodian;

 

(ii)           the Required Transfer
Documentation, executed by LNR Securities and, to the extent required, any
third party custodian;

 

(iii)          the original notes duly
endorsed in blank;

 

(iv)          all notices and instructions
required to be delivered to DTC or any other holder of a global note or entity
that maintains the book entry registration system for the Interests, executed
by LNR Securities; and

 

4

 

(v)           and the counterpart of the
LNR OP Partnership Agreement.

 

(b)           LNR OP shall
deliver to LNR Securities:

 

(i)            certificates representing [                 ]
OP Units to be issued to it, duly executed by LNR OP and issued in the name of
LNR Securities;

 

(ii)           any Required Transfer
Documentation, executed by LNR OP.

 

Section 2.5             Interest.  LNR OP agrees
to transmit to LNR Securities any accrued interest actually received by LNR OP
with respect to the Acquired Assets for the period prior to the Closing within
5 Business Days of the receipt thereof by LNR OP.  If accrued interest is sent to LNR Securities
with respect to the Acquired Assets for the period following the Closing, LNR
Securities agrees to transmit any such accrued interest to LNR OP within 5
Business Days of the receipt thereof by LNR Securities.

 

Section 2.6             Interests Not Assigned.  To the extent that the
transfer or assignment of any Interests requires the consent of another party
thereto, and such consent has not been obtained as of the date hereof, then:

 

(a)           this Agreement
shall not constitute an agreement to transfer or assign the same if an
assignment or attempted assignment constitutes a breach of such Interests or
Documents or a violation of applicable law, unless LNR OP agrees to hold
harmless LNR Securities with respect thereto;

 

(b)           the Parties agree
to use reasonable commercial efforts to obtain the written consent of the
counterparties thereto with respect to the transfer or assignment of such
Interests;

 

(c)           the Parties
shall in good faith negotiate to effectuate such arrangements as are necessary
to put the Parties in as close an economic position as they would be in had the
relevant consents been obtained and the relevant Interests assigned
contemporaneously herewith.  The Parties
acknowledge and agree that any such arrangements could require, among other
things, (i) LNR Securities to remain subject to its obligations under any
Interests with respect to which a consent to assignment is required under the
applicable contract but has not been delivered, (ii) LNR OP to perform on
behalf of LNR Securities the obligations of LNR Securities under such contract,
and to promptly reimburse LNR Securities for any and all reasonable
out-of-pocket costs, expenses or losses, including reasonable attorneys’ fees,
incurred by LNR Securities as a result of LNR Securities taking, at the request
of LNR OP, legal or other action on behalf of or for the benefit of LNR OP with
respect to such contracts or as a result of LNR OP’s failure to perform LNR
Securities’ obligations under such contracts arising on or after the Closing
and to indemnify LNR Securities for any Loss relating to LNR OP’s failure to so
perform, (iii) LNR Securities to promptly remit to LNR OP any payments or
refunds received by LNR Securities from any party under the applicable
contract, (iv) LNR Securities to cooperate in any lawful arrangement
requested by LNR OP designed to provide the benefits of the Acquired Assets to
the LNR OP, and (v) LNR Securities to enforce, at the request of and for
the

 

5

 

account of and the expense of the LNR OP, any
rights of LNR Securities arising from any such Documents against any third
party, including the right to elect to terminate in accordance with the terms
thereof upon the advice of LNR OP, all in a manner consistent with the purposes
and intent of this Agreement; and

 

(d)           if and when any
such consent shall be obtained, LNR Securities shall promptly transfer or
assign, as applicable, such Interests to LNR OP without payment of additional
consideration.

 

ARTICLE III

 

REPRESENTATIONS AND
WARRANTIES

OF LNR SECURITIES

 

LNR Securities hereby represents and warrants to LNR OP, as of the date
of this Agreement, as follows:

 

Section 3.1             Organization and Authority.  LNR Securities is a limited liability company
duly formed, validly existing, and in good standing under the laws of the State
of Delaware with all requisite power and authority to execute and deliver this
Agreement and Required Transfer Documentation and to perform the respective
obligations to consummate the Contemplated Transactions hereunder and
thereunder to be performed by it.

 

Section 3.2             Execution and Delivery;
Valid and Binding Agreement.   (a)   The execution, delivery and performance by LNR
Securities of this Agreement and the Required Transfer Documentation, and the
consummation of the Contemplated Transactions, have been duly and validly
authorized by all requisite limited liability company proceedings on the part
of LNR Securities, and no other limited liability company proceedings on the
part of LNR Securities are necessary to authorize the execution, delivery and
performance by LNR Securities of this Agreement or the Required Transfer
Documentation.

 

(b)           This Agreement
has been duly executed and delivered by LNR Securities and, assuming that this
Agreement is the valid and binding agreement of LNR OP, constitutes the valid
and binding obligation of LNR Securities, enforceable against LNR Securities in
accordance with its terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other laws of
general application affecting enforcement of creditors’ rights or by general
principles of equity.

 

Section 3.3             Noncontravention.  Neither the execution and the delivery of
this Agreement by LNR Securities, nor the consummation by LNR Securities of the
Contemplated Transactions, will (a) violate (i) any constitution,
statute, regulation, rule, injunction, judgment, order, decree, ruling, charge,
or other restriction (each, a “Law”) of any Governmental Entity to which
LNR Securities is subject, (ii) any provision of the Organizational
Documents of LNR Securities, or (iii) any agreement, indenture or
instrument to which any of LNR Securities is a party, or (b) require LNR
Securities to give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any Governmental Entity or other third
party in order for LNR Securities to consummate the Contemplated Transactions,
except, in the case of the

 

6

 

foregoing clauses (a)(i), (a)(iii) and
(b), for any such violations, conflicts, breaches, defaults, rights of
acceleration, terminations, cancellations, requirements or other actions or
notices that are not reasonably likely, individually or in the aggregate, to
result in a material adverse effect on the Acquired Assets, taken as a whole or
the ability of LNR Securities to consummate the Contemplated Transactions.

 

Section 3.4             Title to Acquired Assets.  As of the date of this Agreement, all of the Acquired
Assets are owned by LNR Securities and LNR Securities has good title to all of
such Acquired Assets, free and clear of Liens other than the Permitted
Liens.  At Closing, LNR Securities will
transfer, and LNR OP will acquire, good and marketable title to the Acquired,
free and clear of any Liens other than Permitted Liens.

 

Section 3.5             Compliance with Laws. LNR
Securities has been and is in compliance with all Laws applicable to the
Acquired Assets, except where such noncompliance would not result in any
change, event or circumstance that has or is reasonably likely, individually or
in the aggregate, to have a material adverse effect on the Acquired Assets,
taken as a whole or the ability of LNR Securities to consummate the
Contemplated Transactions.

 

Section 3.6             Litigation.    As of the date of this Agreement, there is
no action, suit, investigation or proceeding pending, or, to the knowledge of
LNR Securities, threatened against LNR Securities before any Governmental
Entity specifically relating to the ownership of the Acquired Assets.  LNR Securities has no pending action against
any third party relating specifically to the ownership of the Acquired
Assets.  There are no unsatisfied
judgments or material outstanding orders, writs, injunctions, decrees,
settlements, stipulations or awards (whether rendered by a court or
Governmental Entity or by arbitration) against LNR Securities specifically
relating to the ownership of the Acquired Assets.  There is in effect no temporary restraining
order, injunction or similar equitable relief applicable to LNR Securities
prohibiting or seeking to prohibit consummation of the Contemplated
Transactions.

 

Section 3.7             Certain Securities Law
Matters.  (a)  LNR Securities is an
“accredited investor” as such term is defined in Regulation D promulgated under
the Securities Act.  LNR Securities is
acquiring the OP Units for its own account for investment and with no present
intention of distributing or reselling such securities or any part thereof in
any transaction which would constitute a “distribution” within the meaning of
the Securities Act.  LNR Securities
understands that the OP Units have not been registered under the Securities Act
or any state securities laws and are being transferred to LNR Securities in part,
in reliance on the foregoing representation. 
LNR Securities understands that the OP Units may not be sold,
transferred, offered for sale, pledged, hypothecated or otherwise disposed of
without registration under the Securities Act and any applicable state securities
laws, except pursuant to an exemption from such registration under such Act and
such laws.  LNR Securities is able to
bear the economic risk of holding the OP Units for an indefinite period, and
has knowledge and experience in financial and business matters such that it is
capable of evaluating the risks of the investment in the OP Units. LNR
Securities has had the opportunity to perform such due diligence regarding the
OP Units as deemed by it to be reasonably necessary and appropriate in the circumstances,
and except for the specific representations and warranties set forth herein, is
relying solely upon its own due diligence and analysis of the economic, legal
and tax aspects of owning the OP Units and consummating the Contemplated
Transactions.

 

7

 

(b)           LNR Securities
is a Qualified Purchaser as defined in Section 2(a)(51) of the Investment
Company Act.

 

ARTICLE IV

 

REPRESENTATIONS AND
WARRANTIES OF LNR OP

 

LNR OP hereby represents and warrants to LNR Securities, as of the date
of this Agreement, as follows:

 

Section 4.1             Organization of LNR OP.  LNR OP is a limited partnership duly formed,
validly existing, and in good standing under the laws of the State of Delaware
with all requisite power and authority to execute and deliver this Agreement
and Required Transfer Documentation to be delivered by it and to perform the
respective obligations to consummate the Contemplated Transactions hereunder
and thereunder to be performed by it.

 

Section 4.2             Execution and Delivery;
Valid and Binding Agreement.  (a)   The execution, delivery and performance by LNR
OP of this Agreement and the Required Transfer Documentation, and the
consummation of the Contemplated Transactions, have been duly and validly
authorized by all requisite limited partnership proceedings on the part of LNR
OP, and no other limited partnership proceedings on its part are necessary to
authorize the execution, delivery and performance of this Agreement or the
Required Transfer Documentation.

 

(b)           This Agreement
has been duly executed and delivered by LNR OP and, assuming that this
Agreement is the valid and binding agreement of LNR Securities, constitutes the
valid and binding obligation of LNR OP, enforceable against LNR OP in
accordance with its terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other laws of
general application affecting enforcement of creditors’ rights or by general
principles of equity.

 

Section 4.3             Noncontravention.  Neither the execution and the delivery of
this Agreement nor the consummation of the Contemplated Transactions, will to
LNR OP’s knowledge (a) violate (i) any Law to which LNR OP is
subject, (ii) any provision of LNR OP’s Organizational Documents, or (iii) any
agreement, indenture or instrument to which the Buyer is a party, or (b) require
LNR OP to give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any Governmental Entity or other third
party in order for LNR OP to consummate the Contemplated Transactions, except,
in the case of the foregoing clauses (a)(i), (a)(iii) and (b), for any
such violations, conflicts, breaches, defaults, rights of acceleration,
terminations, cancellations, requirements or other actions or notices that are
not reasonably likely, individually or in the aggregate, to result in a
material adverse effect on the OP Units.

 

Section 4.4             Certain Securities Law
Matters.  (a)  LNR OP is an “accredited
investor” as such term is defined in Regulation D promulgated under the
Securities Act.  LNR OP is acquiring the
Interests for its own account for investment and with no present intention of
distributing or reselling such securities or any part thereof in any
transaction which would

 

8

 

constitute a “distribution” within the
meaning of the Securities Act.  LNR OP
understands that the Interests have not been registered under the Securities
Act or any state securities laws and are being transferred to LNR OP in part,
in reliance on the foregoing representation. 
LNR OP understands that the Interests may not be sold, transferred,
offered for sale, pledged, hypothecated or otherwise disposed of without
registration under the Securities Act and any applicable state securities laws,
except pursuant to an exemption from such registration under such Act and such
laws.  LNR OP is able to bear the
economic risk of holding the Interests for an indefinite period, and has knowledge
and experience in financial and business matters such that it is capable of
evaluating the risks of the investment in the Interests. LNR OP has had the
opportunity to perform such due diligence regarding the Interests as deemed by
it to be reasonably necessary and appropriate in the circumstances, and except
for the specific representations and warranties set forth herein, is relying
solely upon its own due diligence and analysis of the economic, legal and tax
aspects of owning the Interest sand consummating the Contemplated Transactions.

 

(b)           LNR OP is a
Qualified Purchaser as defined in Section 2(a)(51) of the Investment
Company Act.

 

ARTICLE V

 

COVENANTS OF THE PARTIES

 

Section 5.1             Consents and Approvals.  Subject to the terms hereof, with respect to
any consents, approvals or filings which have not been obtained or made as of
the date hereof, or which by the nature of the relevant consent, approval or
filing cannot be obtained or made prior to Closing, the Parties shall use their
respective commercially reasonable efforts to, as promptly as practicable (i) take,
or cause to be taken, all actions, and do, or cause to be done, and to assist
and cooperate with the other parties in doing, all things necessary, proper or
advisable to obtain such consents or approvals (ii) make all necessary filings,
and thereafter make any other required submissions, with respect to this
Agreement and the Required Transfer Documentation required under any applicable
federal or state securities Laws and any other applicable Law, and (iii) execute
and/or deliver any additional instruments necessary to fully carry out the
purposes of this Agreement.  The Parties
shall cooperate with each other in connection with obtaining such consents or
approvals or the making of all such filings, including providing copies of all
such documents to the non-filing party and its advisors prior to filing.  The Parties shall use their respective
commercially reasonable efforts to furnish to each other all information
required for any application or other filing to be made pursuant to the rules and
regulations of any applicable Law in connection with any of the transactions
contemplated hereby.

 

Section 5.2             Further Assurances.  The Parties shall cooperate reasonably with
each other and with their respective representatives in connection with any
steps required to be taken as part of their respective obligations under this
Agreement, and shall (a) furnish upon request to each other such further
information; (b) execute and deliver to each other such other documents;
and (c) do such other acts and things, all as the other party may
reasonably request for the purpose of carrying out the intent of this
Agreement; provided, however, that neither

 

9

 

Party shall be required to make any material
change to its business, expend any material funds or incur any other material
burden in order to comply with this Section 5.2.

 

ARTICLE VI

 

SURVIVAL AND INDEMNITY

 

Section 6.1             Survival.  All of the representations and warranties of
LNR Securities contained in Article III above, and all of the
representations and warranties of the LNR OP contained in Article IV
above, shall survive the Closing hereunder and continue in full force and
effect for a period of one year following the Closing Date.  The Parties’ respective covenants and
agreements to be performed at or after the Closing Date contained in this
Agreement shall survive indefinitely unless otherwise set forth herein.

 

Section 6.2             Indemnification by LNR
Securities.  LNR
Securities agrees to indemnify LNR OP and its Affiliates and their officers,
directors, managers, members, employees and stockholders (collectively, the “LNR
OP Indemnified Parties”) from, and hold them harmless against any Losses,
which any of the LNR OP Indemnified Parties sustain that are caused by, arise
out of or are a result of any of the following: (i) any material breach of
any of the representations and warranties of LNR Securities contained in this
Agreement (except for those representations and warranties that are qualified
by materiality, for which LNR Securities agrees to indemnify for any breach); (ii) any
material breach of, or failure to perform, any agreement of LNR Securities
contained in this Agreement, or (iii) the Excluded Liabilities.

 

Section 6.3             Indemnification by LNR OP.  LNR OP agrees to indemnify LNR Securities,
and its Affiliates, officers, directors, managers, members, employees and
stockholders (collectively, the “ LNR Securities Indemnified Parties”)
from, and hold them harmless against, any Losses which any of the LNR
Securities Indemnified Parties suffer, sustain or become subject to that are
caused by or are a result of any of the following: (i) any material breach
of any of the representations and warranties of LNR OP contained in this
Agreement (except for those representations and warranties that are qualified
by materiality, for which LNR OP agrees to indemnify for any breach), (ii) any
material breach of, or failure to perform, any agreement of LNR OP contained in
this Agreement, or (iii) the Assumed Liabilities.

 

ARTICLE VII

 

MISCELLANEOUS

 

Section 7.1             Press Releases and Public
Announcements.  No Party
shall issue any press release or make any public announcement relating to the
subject matter of this Agreement without the prior written approval of the other
Party; provided, however, that any Party may make any public disclosure
required by applicable Law (in which case the disclosing Party will use
commercially reasonable efforts to advise the other Party prior to making the
disclosure).

 

10

 

Section 7.2             Entire Agreement.  This Agreement constitutes the entire
agreement between the Parties and supersedes any prior understandings,
agreements, or representations by or between the Parties, written or oral, to
the extent they related in any way to the subject matter hereof and thereof.

 

Section 7.3             Succession and Assignment.  This Agreement shall be binding upon and
inure to the benefit of the Parties named herein and their respective
successors and permitted assigns. No Party may assign either this Agreement or
any of its rights, interests, or obligations hereunder without the prior
written approval of the other Party.

 

Section 7.4             Counterparts.  This Agreement may be executed in one or more
counterparts, and by different parties on different counterparts, each of which
shall be deemed an original but all of which together will constitute one and
the same instrument.

 

Section 7.5             Headings.  The section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

Section 7.6             Notices.  All notices, requests, demands, claims, and
other communications hereunder will be in writing. Any notice, request, demand,
claim, or other communication hereunder shall be deemed duly given if (and then
three Business Days after) it is sent by registered or certified mail, return
receipt requested, postage prepaid, and addressed to the intended recipient as
set forth below:

 

If to LNR Securities:

 

LNR Securities Holdings, LLC

c/o LNR Property Holdings Ltd.

1601 Washington Avenue, Suite 800

Miami Beach, Florida 33139

Attention: General Counsel

Facsimile: (305) 695-5500

 

Copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Facsimile: (212) 593-5955

Attention: André Weiss, Esq.

 

If to the LNR OP:

 

LNR Capital Operating Partnership, LP

c/o LNR Property Holdings Ltd.

1601 Washington Avenue, Suite 800

 

11

 

Miami Beach, Florida 33139

Attention: General Counsel

Facsimile: (305) 695-5500

 

Copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Facsimile: (212) 593-5955

Attention: André Weiss, Esq.

 

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail, or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been
duly given unless and until it actually is received by the intended recipient.
Any Party may change the address to which notices, requests, demands, claims,
and other communications hereunder are to be delivered by giving the other
Party notice in the manner herein set forth. 
This Agreement shall be governed by and construed in accordance with the
domestic laws of the State of New York without giving effect to any choice or
conflict of law provision or rule (whether of the State of New York or any
other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of New York. 
Any proceeding seeking to enforce any provision of, or based on any
right arising out of, this Agreement may only be brought against any of the
Parties in the courts of the State of New York, County of New York, or, if it
has or can acquire jurisdiction, in the United States District Court for the
Southern District of New York, and each of the Parties consents to the
jurisdiction of such courts (and of the appropriate appellate courts) in any
such action or proceeding and waives any objection to venue laid therein.

 

Section 7.7             Waiver of Jury Trial.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY
CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.  EACH PARTY CERTIFIES AND
ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH
SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND (C) EACH
SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH HEREIN.

 

12

 

Section 7.8             Amendments and Waivers.  No amendment of any provision of this
Agreement shall be valid unless the same shall be in writing and signed by the
Parties.  No waiver by any Party of any
default, misrepresentation, or breach of warranty or covenant hereunder,
whether intentional or not, shall be deemed to extend to any prior or
subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence.

 

Section 7.9             Severability.  Any term or provision of this Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

 

Section 7.10           Construction. The Parties
have participated jointly in the negotiation and drafting of this Agreement. In
the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of
the authorship of any of the provisions of this Agreement. Any reference to any
federal, state, local, or foreign statute or law shall be deemed also to refer
to all rules and regulations promulgated thereunder, unless the context
requires otherwise. The word “including” means “including without limitation.”

 

 

[SIGNATURES
ON FOLLOWING PAGE]

 

13

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date first above written.

 

 

	
   

  	
  LNR SECURITIES HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LNR CAPITAL LIMITED PARTNERSHIP

  
	
   

  	
   

  	
   

  
	
   

  	
  By: LNR Capital Corporation, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit A

 

[the
Interests]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]