Document:

Exhibit 10.1

 

 

AMENDED AND RESTATED AGREEMENT

 

 

OF

 

 

LIMITED PARTNERSHIP

 

 

OF

 

 

INTERNATIONAL TRANSMISSION HOLDINGS LIMITED PARTNERSHIP

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I FORMATION OF THE PARTNERSHIP

  	
   

  
	
  Section 1.1.

  	
   

  	
  Formation of the Partnership

  	
   

  
	
  Section 1.2.

  	
   

  	
  Name

  	
   

  
	
  Section 1.3.

  	
   

  	
  Business of the Partnership

  	
   

  
	
  Section 1.4.

  	
   

  	
  Location of Principal Place
  of Business

  	
   

  
	
  Section 1.5.

  	
   

  	
  Name and Business Address of
  General Partner

  	
   

  
	
  Section 1.6.

  	
   

  	
  Term

  	
   

  
	
  Section 1.7.

  	
   

  	
  Certificates

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III CAPITAL CONTRIBUTIONS AND
  CAPITAL ACCOUNTS

  	
   

  
	
  Section 3.1.

  	
   

  	
  Initial Capital Contributions

  	
   

  
	
  Section 3.2.

  	
   

  	
  Additional Capital Contributions
  by Partners

  	
   

  
	
  Section 3.3.

  	
   

  	
  Interest on Capital
  Contributions

  	
   

  
	
  Section 3.4.

  	
   

  	
  Withdrawal and Return of
  Capital Contributions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV ALLOCATION OF NET INCOME AND NET
  LOSS

  	
   

  
	
  Section 4.1.

  	
   

  	
  Allocation of Net Income
  and Net Loss

  	
   

  
	
  Section 4.2.

  	
   

  	
  Other Allocation Provisions

  	
   

  
	
  Section 4.3.

  	
   

  	
  Withholding

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V DISTRIBUTIONS; WITHDRAWALS

  	
   

  
	
  Section 5.1.

  	
   

  	
  Distributions

  	
   

  
	
  Section 5.2.

  	
   

  	
  Tax Distributions

  	
   

  
	
  Section 5.3.

  	
   

  	
  Withdrawal Rights

  	
   

  
	
  Section 5.4.

  	
   

  	
  Limitations on Distributions

  	
   

  
	
  Section 5.5.

  	
   

  	
  Reserves

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI BOOKS OF ACCOUNT, FINANCIAL
  MATTERS, FISCAL YEAR

  	
   

  
	
  Section 6.1.

  	
   

  	
  Books and Records

  	
   

  
	
  Section 6.2.

  	
   

  	
  Reports

  	
   

  
	
  Section 6.3.

  	
   

  	
  Tax Matters Partner

  	
   

  
	
  Section 6.4.

  	
   

  	
  Partnership Funds

  	
   

  
	
  Section 6.5.

  	
   

  	
  Fiscal Year

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII POWERS, RIGHTS AND DUTIES OF
  THE LIMITED PARTNERS

  	
   

  
	
  Section 7.1.

  	
   

  	
  Limitations

  	
   

  
	
  Section 7.2.

  	
   

  	
  Liability

  	
   

  
	
  Section 7.3.

  	
   

  	
  Priority

  	
   

  
	
  Section 7.4.

  	
   

  	
  Consulting and Advisory Services

  	
   

  
	
  Section 7.5.

  	
   

  	
  Information

  	
   

  
					

 

i

 

	
  Section 7.6.

  	
   

  	
  Certificated Interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII POWERS, RIGHTS AND DUTIES OF
  THE GENERAL PARTNER

  	
   

  
	
  Section 8.1.

  	
   

  	
  Authority

  	
   

  
	
  Section 8.2.

  	
   

  	
  Powers and Duties of General
  Partner

  	
   

  
	
  Section 8.3.

  	
   

  	
  Limits on General Partner’s
  Powers

  	
   

  
	
  Section 8.4.

  	
   

  	
  Transactions with Affiliates;
  Fees

  	
   

  
	
  Section 8.5.

  	
   

  	
  Other Activities and
  Competition

  	
   

  
	
  Section 8.6.

  	
   

  	
  Exculpation

  	
   

  
	
  Section 8.7.

  	
   

  	
  Expenses; Use of Proceeds;
  Insurance

  	
   

  
	
  Section 8.8.

  	
   

  	
  Indemnification of Partners

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX TRANSFERS OF INTERESTS BY
  PARTNERS; PREEMPTIVE RIGHTS

  	
   

  
	
  Section 9.1.

  	
   

  	
  General

  	
   

  
	
  Section 9.2.

  	
   

  	
  Transfer of Interest by
  General Partner

  	
   

  
	
  Section 9.3.

  	
   

  	
  Transfer of Interest by Limited
  Partners

  	
   

  
	
  Section 9.4.

  	
   

  	
  Further Requirements

  	
   

  
	
  Section 9.5.

  	
   

  	
  Right of First Offer

  	
   

  
	
  Section 9.6.

  	
   

  	
  Tag-Along Rights

  	
   

  
	
  Section 9.7.

  	
   

  	
  Bring-Along Rights

  	
   

  
	
  Section 9.8.

  	
   

  	
  Consequences of Transfers Generally

  	
   

  
	
  Section 9.9.

  	
   

  	
  Capital Account

  	
   

  
	
  Section 9.10.

  	
   

  	
  Additional Filings

  	
   

  
	
  Section 9.11.

  	
   

  	
  Transfers in a Registered
  Public Offering

  	
   

  
	
  Section 9.12.

  	
   

  	
  Preemptive Rights

  	
   

  
	
  Section 9.13.

  	
   

  	
  Required Transfers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X WITHDRAWAL OF PARTNERS; TERMINATION
  OF PARTNERSHIP; LIQUIDATION AND DISTRIBUTION OF ASSETS

  	
   

  
	
  Section 10.1.

  	
   

  	
  Withdrawal of Partners; Removal
  of General Partner

  	
   

  
	
  Section 10.2.

  	
   

  	
  Dissolution of Partnership

  	
   

  
	
  Section 10.3.

  	
   

  	
  Distribution in Liquidation

  	
   

  
	
  Section 10.4.

  	
   

  	
  Final Reports

  	
   

  
	
  Section 10.5.

  	
   

  	
  Rights of Limited Partners

  	
   

  
	
  Section 10.6.

  	
   

  	
  Deficit Restoration

  	
   

  
	
  Section 10.7.

  	
   

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI ADMISSION OF ADDITIONAL LIMITED
  PARTNERS

  	
   

  
	
  Section 11.1.

  	
   

  	
  Admission of Additional Limited
  Partners

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII NOTICES AND VOTING

  	
   

  
	
  Section 12.1.

  	
   

  	
  Notices

  	
   

  
	
  Section 12.2.

  	
   

  	
  Voting

  	
   

  
	
  Section 12.3.

  	
   

  	
  Trimaran Funds

  	
   

  

 

ii

 

	
  ARTICLE XIII AMENDMENT OF PARTNERSHIP
  AGREEMENT AND POWER OF ATTORNEY

  	
   

  
	
  Section 13.1.

  	
   

  	
  Amendments

  	
   

  
	
  Section 13.2.

  	
   

  	
  Amendment of Certificate

  	
   

  
	
  Section 13.3.

  	
   

  	
  Power of Attorney

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV MISCELLANEOUS

  	
   

  
	
  Section 14.1.

  	
   

  	
  Entire Agreement

  	
   

  
	
  Section 14.2.

  	
   

  	
  Governing Law

  	
   

  
	
  Section 14.3.

  	
   

  	
  Effect

  	
   

  
	
  Section 14.4.

  	
   

  	
  Pronouns and Number

  	
   

  
	
  Section 14.5.

  	
   

  	
  Captions

  	
   

  
	
  Section 14.6.

  	
   

  	
  Partial Enforceability

  	
   

  
	
  Section 14.7.

  	
   

  	
  Counterparts

  	
   

  
	
  Section 14.8.

  	
   

  	
  Certain Indemnification

  	
   

  
	
  Section 14.9.

  	
   

  	
  Waiver of Partition

  	
   

  
	
  Section 14.10

  	
   

  	
  Waiver of Jury

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  A

  	
  Names, Addresses and Initial Capital
  Contributions of Partners

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT
  A

  	
  Form of Instrument of Transfer

  	
   

  

 

iii

 

AMENDED AND RESTATED AGREEMENT

 

OF LIMITED PARTNERSHIP

 

OF

 

INTERNATIONAL TRANSMISSION HOLDINGS LIMITED PARTNERSHIP

 

AMENDED
AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP of INTERNATIONAL TRANSMISSION
HOLDINGS LIMITED PARTNERSHIP (the “Partnership”), dated as of [               
     ], 2005, among Ironhill Transmission, LLC, a
Michigan limited liability company (the “General Partner”), as general
partner, and those persons listed as limited partners on Schedule A
attached hereto who are signatories to this Agreement of Limited Partnership.

 

WHEREAS,
the Certificate of Limited Partnership (the “Certificate”) of the
Partnership was filed with the Department of Consumer and Industry Services of
Michigan on February 21, 2003 and the original Agreement of Limited Partnership
(the “Original Agreement” was entered into on February 25, 2003;

 

WHEREAS,
the parties hereto desire to amend and restate the Original Agreement on the
terms and conditions set forth herein;

 

NOW,
THEREFORE, the General Partner and the persons listed as Limited Partners on
Schedule A hereto in consideration of the premises and mutual covenants
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, agree as follows:

 

 

ARTICLE I

FORMATION OF THE PARTNERSHIP

 

Section 1.1.            Formation
of the Partnership.  The Partnership
was formed as a limited partnership under the Limited Partnership Act by the
filing of the Certificate with the Department of Consumer and Industry Services
of Michigan on February 21, 2003.  The
General Partner, for itself and as agent for the Limited Partners (as defined
below), shall accomplish all filing, recording, publishing and other acts
necessary or appropriate for compliance with all the requirements for operation
of the Partnership under this Agreement and the Limited Partnership Act and
under all other laws of the State of Michigan and such other jurisdictions in
which the General Partner determines that the Partnership may conduct business,
including, without limitation, those contemplated by Section 1.7
below.  Each Limited Partner admitted to
the Partnership by the General Partner shall promptly execute all relevant
certificates and other documents as the General Partner shall request in order
to admit such Limited Partner to the Partnership and to permit the General
Partner to accomplish any of the foregoing.

 

Section 1.2.            Name.  The name of the Partnership
is “International Transmission Holdings Limited Partnership”, as such name may
be modified from time to time by the General Partner.  The General Partner may with the prior
written consent of the Majority-in-Interest of the Limited Partners adopt one
or more fictitious names for use by the Partnership.

 

Section 1.3.            Business
of the Partnership.  Subject to the limitations on the activities
of the Partnership otherwise specified in this Agreement, the Partnership is
organized for the following objectives and purposes:

 

(a)           To acquire, manage and dispose of the
capital stock of electric transmission businesses and to engage
in any and all other businesses that a limited partnership may lawfully engage
in under the laws of the State of Michigan.

 

(b)           To enter into, make and perform all
contracts and other undertakings, and engage in all activities and transactions
as the General Partner may reasonably deem necessary or advisable for the
carrying out of the foregoing objectives and purposes.

 

Section 1.4.            Location
of Principal Place of Business.  The location of the principal place of
business of the Partnership shall be c/o Dykema Gossett PLLC, 124 West Allegan,
Ste. 800, Lansing, Michigan 48933, Attn: 
Albert Ernst, or such other location as may be determined by the General
Partner with written notice to the Limited Partners.  In addition, the Partnership may maintain, at
any other place or places within or without the United States, such other
offices as are reasonably necessary in the opinion of the General Partner to
conduct the business of the Partnership.

 

2

 

Section 1.5.                                   Name
and Business Address of General Partner.  The name, business address and telecopy
number of the General Partner is:

 

	
  Ironhill
  Transmission, LLC

  
	
  c/o Greenbaum
  Rowe Smith & Davis LLP

  
	
  6 Becker Farm
  Road

  
	
  Roseland, New
  Jersey 07068

  
	
  Telecopy No.:
  (973) 535-1698

  
	
  Attention:
  Raymond Felton

  

 

The business address
shall be the Partnership’s registered office, unless otherwise determined by
the General Partner.  The General Partner
may, from time to time, upon 30 days prior written notice to the Limited
Partners, change its name, business address or telecopy number.

 

Section 1.6.            Term.  The term of the Partnership commenced on
February 25, 2003 and shall terminate on February 25, 2028, unless the
Partnership is earlier dissolved and terminated in accordance with this
Agreement.

 

Section 1.7.            Certificates.  The General Partner, on behalf of the
Partnership, shall execute, file and publish, as appropriate, an amended and
restated certificate of limited partnership, a certificate of fictitious
business name and such other certificates or filings in such jurisdictions as
may be necessary or appropriate in connection with the conduct of the
Partnership’s business, as well as any required amendment or renewals of such
certificates or filings.

 

ARTICLE II

DEFINITIONS

 

“1935
Act” means the Public Utility Holding Company Act of 1935, as amended.

 

“Accountants”
means such “big four” accounting firm as shall be engaged from time to time by
the General Partner for the Partnership.

 

“Additional
Limited Partner” means any Person admitted to the Partnership as an
additional Limited Partner under Article XI.

 

“Affiliate”
means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person; for
purposes of this definition, “control” (including, with correlative
meanings, the terms “controlling,” “controlled by” and “under
common control with”), as applied to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of that Person, whether through the ownership of voting
securities, by contract or otherwise.

 

“Affiliated
Limited Partner” means each Limited Partner that is an Affiliate of the
General Partner.

 

3

 

“Agreement”
means this Agreement of Limited Partnership, as amended from time to time.

 

“Bring-Along
Right” has the meaning set forth in Section 9.7.

 

“Business
Day” means any day other than a Saturday, Sunday or a day on which
commercial banks are authorized or required to close in New York, New York, or
Detroit, Michigan.

 

“Capital
Account” means, with respect to each Partner, a single account established
and maintained for such Partner in accordance with the principles of Regulation
§§1.704-1(b)(2)(iv) and 1.704-2, as amended. 
Subject to the preceding sentence, each Capital Account will initially
equal the amount of the Capital Contribution made by such Partner at the time
such Partner is admitted as a Partner in the Partnership and, throughout the
term of the Partnership, will be (i) increased by the amount of (A) Net Income
and items thereof allocated to such Partner pursuant to Article IV and
(B) the amount of any cash and the Value of any property (net of liabilities
secured by the property that the Partnership is considered to assume or take
subject to pursuant to the provisions of Section 752 of the Code) subsequently
contributed by such Partner to the Partnership and (ii) decreased by the amount
of (A) Net Losses and items thereof allocated to such Partner pursuant to Article
IV and (B) the amount of cash and the Value (net of liabilities secured by
the property that the Partner is considered to assume or take subject to
pursuant to the provisions of Section 752 of the Code) of any other property
distributed to such Partner pursuant to Articles V and X.

 

“Capital
Contribution” means, with respect to any Partner, the amount of capital
contributed to the capital of the Partnership in respect of such Partner’s
Interests.

 

“Cause”
has the meaning set forth in Section 10.1(c).

 

“Certificate”
means the Certificate of Limited Partnership of the Partnership, as amended
from time to time.

 

“Certificate
of Cancellation” means a certificate complying with Section 209 of
the Limited Partnership Act.

 

“CIBC”
shall mean Canadian Imperial Bank of Commerce, and each of its Subsidiaries.

 

“Closing”
has the meaning ascribed to it in the Purchase Agreement.

 

“Closing
Date” has the meaning ascribed to it in the Purchase Agreement.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time (or any
succeeding law).

 

“Control
Holder” has the meaning set forth in Section 9.7.

 

“Control
Purchaser” has the meaning set forth in Section 9.7.

 

4

 

“Control
Sale” has the meaning set forth in Section 9.7.

 

“Controllable
Management Decision” means the performance of, failure to perform, taking
or the failure to take any action by the General Partner or any other Person
acting under the direct or indirect management or control of the General
Partner; provided, however, that the following events shall not
constitute “Controllable Management Decisions”: (A) the effects on financial
results due to changes in law, (B) actions of regulators applicable to the
Holding Company, the Operating Company or their Subsidiaries, (C) changes in
demand for utility services and (D) other similar factors beyond the control of
management, provided that, with respect to clauses (A) through (D), the
Holding Company (or any successor to the Holding Company as the controlling
shareholder of its consolidated Subsidiaries) shall not have failed to cause
its Subsidiaries to manage its relations with the regulators in accordance with
Good Utility Practices.

 

“Dissolution
Date” means February 25, 2028, or such earlier date on which the
Partnership is dissolved or terminated in accordance with this Agreement.

 

“Equity
Event” means a merger or reorganization or other transaction (or series of
transactions) as a result of which the Partners and their Permitted Transferees
do not own at least 50% of the voting power and value of the equity securities
of the merged or reorganized entity or Partnership, as the case may be.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, together with the
rules and regulations promulgated thereunder, as amended from time to time (or
any successor law or regulations).

 

“Event
of Withdrawal” has the meaning set forth in Section 10.2(a)(iv).

 

“First
Offer Price” has the meaning set forth in Section 9.5(a).

 

“Fiscal
Quarter” means a calendar quarter of the Fiscal Year.

 

“Fiscal
Year” has the meaning set forth in Section 6.5.

 

“General
Partner” means Ironhill Transmission, LLC and any successor thereto as
general partner in the Partnership.

 

“Good
Utility Practice” means any of the practices, methods and acts engaged in
or approved by a significant proportion of the gas or electric utility industry
during the relevant time period, or any of the practices, methods and acts
which, in the exercise of reasonable judgment in light of the facts known at
the time the decision was made, could have been expected to accomplish the
desired result at a reasonable cost consistent with good business practices,
reliability, safety and expedition, including practices, methods and acts relating
to the proper management of relationships with regulators.  “Good Utility Practice” is not intended to be
limited to the optimum practice, method or act to the exclusion of all others,
but rather to be acceptable practices, methods or acts generally accepted in
the region.

 

“Holding
Company” means ITC Holdings Corp., a Michigan corporation.

 

5

 

“Immediate
Family” as to any Person that is an individual means such Person’s spouse,
children, grandchildren and parents.

 

“Instrument
of Transfer” means an instrument, substantially in the form of Exhibit A
hereto, evidencing a transfer by a Limited Partner of all or a portion of that
Limited Partner’s Interest in the Partnership.

 

“Interest”
means, when used in reference to a Partner’s interest in the Partnership at any
time, the entire ownership interest of such Partner in the Partnership at such
time, including, without limitation, its interest in the capital, profits,
losses and distributions of the Partnership.

 

“KKR
Funds” means, collectively, KKR Millennium Fund L.P., a Delaware limited
partnership, and KKR Partners III, L.P., a Delaware limited partnership.

 

“Limited
Partner” means each Person named as a Limited Partner on Schedule A
hereto, each Person admitted as a Substituted Limited Partner under Article
IX, and each Person admitted as an Additional Limited Partner under Article
XI, and, with respect to those provisions of this Agreement concerning a
Limited Partner’s rights to receive a share of profits or other distributions
or the return of a Limited Partner’s contribution, any Transferee of a Limited
Partner’s Interest in the Partnership (except that a Transferee that is not
admitted as a Limited Partner shall have only such of the rights of an assignee
under the Limited Partnership Act as are consistent with this Agreement).

 

“Limited
Partnership Act” means the Michigan Revised Uniform Limited Partnership
Act, as amended from time to time (or any succeeding law).

 

“Liquidator”
has the meaning set forth in Section 10.2(b).

 

“Majority-in-Interest
of the Limited Partners” at any time, means Limited Partners whose
aggregate Voting Percentages at such time exceed 50% of all Limited Partners’
Voting Percentages at such time.

 

“Material Failure” means any actual or
projected failure to achieve (i) the annual EBITDA or net income contemplated
by the business plan by 5% or more as of the end of any Fiscal Year, or (ii)
the business plan that could have a material adverse effect on the financial
condition of the Partnership and its Subsidiaries.

 

“Minority
Holder” has the meaning set forth in Section 9.7.

 

“Net
Income” and “Net Loss”, respectively, for any period means the
income or loss of the Partnership for such period as determined in accordance
with the method of accounting followed by the Partnership for Federal income
tax purposes, including, for all purposes, any income exempt from tax and any
expenditures of the Partnership which are described in Code Section
705(a)(2)(B); provided, however, that in determining Net Income
and Net Loss and every item entering into the computation thereof, solely for
the purpose of adjusting the Capital Accounts of the Partners (and not for tax
purposes), (i) if any Partnership Asset is distributed in kind to a Partner, the
difference between its Value and its book value at

 

6

 

the time of such distribution shall be treated as gain
or loss, and (ii) any item allocated under Section 4.2(a) shall be
excluded from the computation of Net Income and Net Loss.

 

“Non-Affiliated
Limited Partner” means each Limited Partner that is not an Affiliated
Limited Partner.

 

“Offerees”
has the meaning set forth in Section 9.5(a).

 

“Offered
Interest” has the meaning set forth in Section 9.5(a).

 

“Operating
Company” means International Transmission Company, a Michigan corporation.

 

“Original
Limited Partners” means the KKR Funds and Trimaran Funds.

 

“Partners”
means the General Partner and the Limited Partners, where no distinction is
required by the context in which the term is used.

 

“Partnership”
means the limited partnership created by the Certificate and governed by this
Agreement.

 

“Partnership
Asset” means any property of the Partnership, and “Partnership Assets”
means the aggregate of all of the property of the Partnership.

 

“Percentage
Interest” shall mean, in respect of a Partner, such Partner’s percentage
interest set forth on Schedule A.

 

“Permitted
Transferee” shall mean, (a) with respect to any Limited Partner, (i) any
Affiliate of such Person or successor thereto or any Person that is recognized
as tax exempt pursuant to Section 501(c)(3) of the Code, (ii) in the case of a
Person who is an individual, (A) a spouse or lineal descendent or ancestor of
such Person or (B) a trust or other legal entity for the primary benefit of any
of the foregoing, (iii) with respect to the KKR Funds and/or Trimaran Funds,
any investor therein or any Affiliate of such investor as part of a
distribution to such or (iv) any other Limited Partner or Permitted Transferee
of any other Limited Partner, (b) with respect to the General Partner, (i)
Lewis Eisenberg, (ii) his estate and any member of his Immediate Family, (iii)
any trust, partnership or limited liability company, all of the interests in
which are for the primary benefit of or owned by one or more Persons described
in the immediately preceding clauses (i), (ii) and this clause (iii) and of
which Lewis Eisenberg is the sole trustee, general partner or managing member,
as applicable, and (iv) any combination of the foregoing and (c) in the
case of the Trimaran Funds, (i) CIBC or any of its Affiliates, (ii) Trimaran or
any of its Affiliates, (iii) any investment fund controlled by at least two of
Messrs. Bloom, Heyer or Kehler or any Affiliate controlled by at least two of
them and (iv) any Person (a) managed by CIBC or Trimaran (including any
Affiliates thereof) or at least two of Messrs. Bloom, Heyer or Kehler or any
Affiliate controlled by at least two of them and (b) substantially all the
equity interests of which are owned directly or indirectly, by (1) members of
Trimaran, (2) employees of CIBC or any Affiliate thereof, (3) any Affiliate of
any such members or employees, (4) any investor in the Trimaran investment
program that has co-investment rights or

 

7

 

(5) any combination of the persons named in the
immediately preceding clauses (1), (2), (3) or (4).

 

“Person”
means any individual, partnership, association, corporation, limited liability
company, trust or other entity.

 

“Power
of Attorney” means the Power of Attorney granted under Section 13.3.

 

“Preemptive
Notice” has the meaning set forth in Section 9.13.

 

“Preemptive
Securities” has the meaning set forth in Section 9.13.

 

“Presumed
Tax Liability” means, for any Fiscal Year, an amount equal to the product
of (x) the taxable income of the Partnership for such Fiscal Year and (y) the
Presumed Tax Rate.

 

“Presumed
Tax Rate” means with respect to any Fiscal Year and net income or capital
gain recognized during such Fiscal Year, the highest effective combined United
States Federal, state and local income tax rate applicable during such Fiscal
Year to a natural person residing in New York, New York, taxable at the highest
marginal Federal income tax rate and the highest marginal New York State and
New York City income tax rates, taking into account the nature of such net
income or capital gain and the holding period of the assets the disposition of
which gave rise to the capital gain and the deductibility and creditability of
state and local income taxes and taking into account the effects of Code
Sections 67 and 68.

 

“Proportionate
Share” has the meaning set forth in Section 9.5(b).

 

“Public
Offering” means a public offering of equity securities in the Partnership
or any successor thereto or any Subsidiary of the Partnership pursuant to a
registration statement declared effective under the Securities Act, as amended.

 

“Purchase
Agreement” means the Stock Purchase Agreement by and between DTE Energy
Company and Holding Company dated December 3, 2002, as amended, supplemented or
modified from time to time.

 

“Regulation”
means a Treasury Regulation promulgated under the Code.

 

“Reoffer
Notice” has the meaning set forth in Section 9.5(d).

 

“Reoffer
Price” has the meaning set forth in Section 9.5(d).

 

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

 

“Seller’s
Notice” has the meaning set forth in Section 9.5(a).

 

“Selling
Holder” has the meaning set forth in Section 9.5(a).

 

8

 

“Special
Permitted Transferee” of a Partner means any Permitted Transferee thereof
other than a Permitted Transferee described in clause (a)(iv) of the definition
of Permitted Transferee.

 

“Subscription
Agreements” means the Subscription Agreements, if any, entered into between
the Partnership and the Limited Partners.

 

“Subsidiary”
means, with respect to any party, any corporation or other organization,
whether incorporated or unincorporated, of which more than fifty percent (50%)
of either the equity interests in, or the voting control of, such corporation
or other organization is, directly or indirectly through subsidiaries or
otherwise, beneficially owned by such party.

 

“Substituted
Limited Partner” means any Person admitted to the Partnership as a
substituted Limited Partner under Article IX.

 

“Tag-Along
Notice” has the meaning set forth in Section 9.6(d).

 

“Tag-Along
Notice Deadline” has the meaning set forth in Section 9.6(d).

 

“Tag-Along
Offer Notice” has the meaning set forth in Section 9.6(d).

 

“Tag-Along
Partner” has the meaning set forth in Section 9.6(a).

 

“Tag-Along
Right” has the meaning set forth in Section 9.6(a).

 

“Tag-Along
Transferee” has the meaning set forth in Section 9.6(a).

 

“Tag-Along
Transferee Terms” has the meaning set forth in Section 9.6(d).

 

“Tag-Along
Transferor” has the meaning set forth in Section 9.6(a).

 

“Tax
Distribution” has the meaning set forth in Section 5.2.

 

“Three-Fourths-in-Interest
of the Limited Partners” at any time means Limited Partners whose aggregate
Voting Percentages at such time exceed 75% of all Limited Partners’ Voting
Percentages at such time.

 

“Transfer”,
“Transferee” and “Transferor” have the respective meanings set
forth in Section 9.1.

 

“Trimaran”
means Trimaran Fund II, L.L.C., a Delaware limited liability company.

 

“Trimaran
Funds” means, collectively, Trimaran Fund II, L.L.C., a Delaware limited
liability company, Trimaran Parallel Fund II, L.P., a Delaware limited
partnership, Trimaran Capital, L.L.C., a Delaware limited liability company,
CIBC Employee Private Equity Fund (Trimaran) Partners, a New York general
partnership, and CIBC MB Inc., a corporation organized under the laws of
Delaware.

 

9

 

“U.S.
Person” means a Person who is a “United States Person” as defined in Code
Section 7701(a)(30), provided that such definition shall be applied by omitting
the phrase “or resident” in subparagraph (A) of such Code Section.

 

“Value”
of any Partnership Asset as of any date, means the fair market value of such
Partnership Asset as of such date, with the fair market value of the type of
assets described below being determined as follows:

 

(a)           goodwill, firm name or customers’
lists and any similar intangible asset of the Partnership shall be valued at
zero;

 

(b)           securities listed on one or more
national securities exchanges shall be valued at their last reported sales
prices on the consolidated tape on the date of determination (or if the date of
determination is not a Business Day, on the last Business Day immediately prior
to such date of determination).  If no
such sales of such securities occurred on such date, such securities shall be
valued at the mean of the last “bid” and “ask” prices on the date of
determination on the national securities exchange which has the highest average
daily volume for such security over the last 60 days on or prior to the date of
determination (or, if the date of determination is not a date upon which such
national securities exchange was open for trading, on the last prior date on
which such national securities exchange was so open);

 

(c)           securities for which no such market
prices are available, or as to which, in the sole judgment of the General
Partner, any of the above market prices are below or exceed (as the case may
be) the amount realizable by the Partnership upon a sale thereof, shall be
valued at the fair value thereof as determined upon a reasonable basis and in
good faith by the General Partner; and

 

(d)           the fair market value of other
investments, assets, properties, debts, obligations or liabilities shall be
valued as determined by the General Partner upon a reasonable basis and in good
faith.

 

If a
Majority-in-Interest of the Limited Partners disagrees with the General Partner’s
determination, the General Partner and such Majority-in-Interest of the Limited
Partners shall jointly select an independent valuation firm, unaffiliated with
the General Partner or any Limited Partner, for purposes of resolving such
dispute.  If the General Partner and such
Majority-in-Interest do not agree on the selection of an independent valuation
firm, then either the General Partner or such Majority-in-Interest may submit a
request to the American Arbitration Association to select such independent
valuation firm, which selection shall be binding on the parties hereto.  As promptly as practicable following such
selection, the General Partner and such Majority-in-Interest of the Limited
Partners shall furnish to the valuation firm all information relevant to the
resolution of such dispute.  As promptly
as practicable following its receipt thereof, the valuation firm shall prepare
and deliver to the General Partner and the Limited Partners its own independent
valuation of the fair market value of the relevant Partnership Asset or
Partnership Assets.  The fair market
value as determined in accordance with the foregoing shall be final and binding
upon the General Partner and the Limited Partners with respect to the
Partnership Assets so valued.  The fees
and expenses of the valuation firm shall be paid by the Partnership.

 

10

 

“Void
Transfer” has the meaning set forth in Section 9.1(a).

 

“Voting
Capital Contribution” of a Limited Partner at any time means such Limited
Partner’s Capital Contribution at such time.

 

“Voting
Percentage” of a Limited Partner at any time means for each Limited Partner
the ratio (expressed as a percentage) of such Limited Partner’s Voting Capital
Contribution to the aggregate Voting Capital Contributions of all Limited
Partners at such time.

 

“Withdrawing
Limited Partner” has the meaning set forth in Section 9.3(d).

 

ARTICLE III

CAPITAL CONTRIBUTIONS AND CAPITAL ACCOUNTS

 

Section 3.1.            Initial
Capital Contributions.  The General
Partner and each Limited Partner have made a Capital Contribution in cash in
the amount set forth opposite its name in the column entitled “Initial Capital
Contribution” on Schedule A hereto.

 

Section 3.2.            Additional
Capital Contributions by Partners. 
Except as contemplated by the Subscription Agreements, no Partner shall
be required to make additional Capital Contributions to the Partnership.

 

Section 3.3.            Interest
on Capital Contributions.  No Partner shall be entitled to interest on
or with respect to any Capital Contribution.

 

Section 3.4.            Withdrawal
and Return of Capital Contributions.  Except as otherwise expressly provided in
this Agreement, no Partner shall be entitled to withdraw any part of that
Partner’s Capital Contributions or to receive distributions from the Partnership
and no Limited Partner shall have priority over any other Limited Partner as to
return of Capital Contributions, allocations of income, gains, losses, credits,
deductions or as to distributions.

 

ARTICLE IV

ALLOCATION OF NET INCOME AND NET LOSS

 

Section 4.1.            Allocation
of Net Income and Net Loss.  Except as provided in Section 4.2, the
Partnership’s Net Income or Net Loss, as the case may be, and each item of
income, loss and deduction entering into the computation thereof, for each
Fiscal Year shall be allocated as follows:

 

(a)           Net Income for such Fiscal Year shall
be allocated as follows:

 

(i)            first,
an amount of Net Income equal to the excess of (x) all Net Loss previously
allocated to the Partners pursuant to Section 4.1(b)(ii) over (y) all
Net Income previously allocated to the Partners pursuant to this Section
4.1(a)(i) shall be allocated pro rata to the Partners in accordance with
their Capital Contributions; and

 

11

 

(ii)           second,
any remaining Net Income shall be allocated to the Partners in proportion to
their Percentage Interests.

 

(b)           Net Loss for such Fiscal Year shall
be allocated as follows:

 

(i)            first,
an amount of Net Loss equal to the excess of (x) all Net Income previously
allocated to the Partners pursuant to Section 4.1(a)(ii) over (y) the
sum of all Net Loss previously allocated to the Partners pursuant to this Section
4.1(b)(i) and all distributions previously made to the Partners pursuant to
Section 5.1(b) shall be allocated pro rata to the Partners in
accordance with their Percentage Interests; and

 

(ii)           second,
any remaining Net Loss shall be allocated to the Partners in accordance with
their Capital Contributions.

 

Section 4.2.            Other
Allocation Provisions

 

(a)  The General Partner shall modify the
allocations provided for in Section 4.1 as it reasonably deems
appropriate to comply with Treasury Regulations §§1.704-1(b) and 1.704-2; provided
that, in modifying such allocations, the General Partner shall not discriminate
against any Limited Partner.

 

(b)  Subject to Code Section 704(c),  the income, gains, losses, deductions and
credits of the Partnership for federal income tax purposes shall be allocated
in the same manner as the corresponding items entering into the computation of
Net Income and Net Loss were allocated under Sections 4.1 and 4.2.

 

(c)  Except to the extent otherwise required by
the Code and Regulations, if an Interest in the Partnership or part thereof is
transferred in any Fiscal Year, the Net Income, Net Loss and items of income,
gain, loss, deduction and credit allocable to the Interest in the Partnership
for such Fiscal Year shall be apportioned between the transferor and the
transferee in proportion to the number of days in such Fiscal Year such
Interest is held by each of them, except that, if they agree between themselves
and so notify the General Partner within 30 days after the transfer, then at
their option and expense, (a) all items or (b) extraordinary items, including
capital gains and losses, may be allocated to the Person who held the Interest
on the date such items were realized or incurred by the Partnership.

 

Section 4.3.            Withholding.  The Partnership shall comply with withholding
requirements under Federal, state and local laws and shall remit amounts withheld
to and file required forms with the applicable jurisdictions.  To the extent the Partnership is required to
withhold and pay over any amounts to any authority with respect to
distributions or allocations to any Partner, the amount withheld shall be
deemed to be a distribution in the amount of the withholding to that
Partner.  In the event of any claimed
over-withholding, Partners shall be limited to an action against the applicable
jurisdiction.  If the amount withheld has
not been withheld from actual distributions, the Partnership may, at its
option, (i) require the Partner to reimburse the Partnership for such
withholding, which reimbursement shall be treated as a reduction in the deemed
distribution to the Partners referred to in the previous sentence by such
Partner, or (ii) reduce any subsequent distributions by the amount of such
withholding.  Each Partner agrees to
furnish the Partnership with any representations and forms as shall reasonably

 

12

 

be
requested by the Partnership to assist it in determining the extent of, and in
fulfilling, its withholding obligations.

 

ARTICLE V

DISTRIBUTIONS; WITHDRAWALS

 

Section 5.1.            Distributions.  Except for any distributions expressly
required or permitted to be made under this Article V, and subject to Sections
5.4 and 5.5, the amount and timing of all distributions of cash and
of property other than cash will be at the discretion of the General
Partner.  All distributions pursuant to
this Section 5.1 will be made to the Partners as follows:

 

(a)           first,
an amount equal to the excess of (x) the aggregate Capital Contributions of all
Partners as of the date of such distribution over (y) all amounts previously
distributed to the Partners pursuant to this Section 5.1(a), shall be
distributed pro rata to the Partners in accordance with their Capital
Contributions; and

 

(b)           second, pro rata in accordance with
the Partner’s Percentage Interests.

 

Section 5.2.            Tax
Distributions. 
For each Fiscal Year, the Partnership shall, during such Fiscal Year or
the immediately subsequent Fiscal Year, but not later than 60 days following
the end of such Fiscal Year, use its best efforts to distribute pursuant to Section 5.1,
with respect to such Fiscal Year, a distribution in an amount equal to the
Presumed Tax Liability for such Fiscal Year (a “Tax Distribution”).  The General Partner may distribute Tax
Distributions on an estimated basis prior to the end of a Fiscal Year.

 

Section 5.3.            Withdrawal
Rights. 
Partners may not withdraw all or any part of the balance of their
Capital Accounts.

 

Section 5.4.            Limitations
on Distributions.  Notwithstanding
anything herein contained to the contrary, no distribution under this Agreement
shall be made if such distribution would violate the Limited Partnership Act. A
Partner who receives a distribution in violation of the Limited Partnership Act
shall be liable to return the distribution to the Partnership if the Partner
knew that, immediately after giving effect to the distribution, all liabilities
of the Partnership, other than liabilities for which the recourse of creditors
is limited to specified property of the Partnership, exceed the fair value of
the assets of the Partnership (except that the fair value of property that is
subject to a liability for which recourse of creditors is limited shall be
included in the assets of the Partnership only to the extent that the fair
value of that property exceeds that liability).

 

Section 5.5.            Reserves.  In connection with any distribution to a
Partner under this Article V, the General Partner shall cause the
Partnership to establish such reserves as it deems reasonably necessary for any
contingent or unforeseen Partnership liabilities, and, at the expiration of
such period as shall be deemed advisable by the General Partner, the balance
shall be distributed to such Partner (or such Partner’s legal representative).

 

13

 

ARTICLE VI

BOOKS OF ACCOUNT, FINANCIAL MATTERS, FISCAL YEAR

 

Section 6.1.            Books
and Records.

 

(a)           Proper and complete records and books
of account shall be kept by the General Partner in which shall be entered fully
and accurately all transactions and other matters relative to the Partnership’s
business as are usually entered into records and books of account maintained by
Persons engaged in businesses of a like character, including a Capital Account
for each Partner.  The Partnership books
and records shall be kept in accordance with generally accepted accounting
principles.  The Partnership shall also
keep such records as may be required under Section 1106 of the Limited
Partnership Act.  The books and records
shall at all times be maintained at the principal office of the Partnership and
shall be open to the inspection and examination of the Partners or their duly
authorized representatives for a proper purpose during reasonable business
hours and at the sole cost and expense of the inspecting or examining
Partner.  The Partnership shall maintain
at its office and make available to any Limited Partner or any designated
representative of any Limited Partner an alphabetical list of names and mailing
addresses of, and Interests in the Partnership owned by, all Partners,
separately identifying the General Partner and the Limited Partners.  The Partnership shall permit any Partner to
make such copies of the records of the Partnership to the extent permitted to
such Partner, but only to the extent required of the Partnership, under Section
1106 of the Limited Partnership Act.

 

(b)           The books of account and records of
the Partnership shall be audited as of the end of each Fiscal Year by the
Accountants.

 

Section 6.2.            Reports.

 

(a)           As soon as practicable, but in no
event later than 45 days, following the end of each Fiscal Quarter, the General
Partner shall cause the Partnership to send to each Limited Partner quarterly
unaudited financial statements of the Partnership.

 

(b)           As soon as practicable, but in no
event later than 90 days, after the end of each Fiscal Year, the General
Partner shall cause the Partnership to send to each Limited Partner (i)
financial statements (which shall be prepared in accordance with generally
accepted accounting principles and shall be audited by the Accountants),
including a balance sheet and statements of income, cash flow and Partners’
equity showing the cash distributed in such Fiscal Year and the balance of each
Capital Account of such Partner at the end of such Fiscal Year and the manner
of its calculation, and (ii) a copy of Schedule K-1 to Internal Revenue Service
Form 1065 (or any successor form) prepared by the Accountants, indicating such
Partner’s share of the Partnership’s income, loss, gain, expense and other
items relevant for Federal income tax purposes.

 

(c)           As soon as practicable, but in no
event later than 45 days following the end of each Fiscal Quarter and 90 days
following the end of each Fiscal Year, respectively, the General Partner shall
cause the Partnership to send to each Limited Partner quarterly unaudited
financial statements and annual financial statements (audited by the
Accountants) of the Holding

 

14

 

Company and the Operating Company, in each case
prepared in accordance with generally accepted accounting principles.

 

Section 6.3.            Tax
Matters Partner. 
For purposes of Code Section 6231(a)(7), the “Tax Matters Partner” shall
be the General Partner, as long as it remains the general partner of the
Partnership.  The Tax Matters Partner
shall keep the Limited Partners fully informed of any inquiry, examination or
proceeding, including, without limitation, promptly notifying Limited Partners
of the beginning and completion of an administrative proceeding at the
Partnership level promptly upon such notice being received by the Tax Matters
Partner.  The General Partner shall not
take any action to bind the Limited Partners (including extending the statute
of limitations) without the consent of each Limited Partner so bound.

 

Section 6.4.            Partnership
Funds. 
Partnership funds shall be held in the name of the Partnership and shall
not be commingled with those of any other Person.  Partnership funds shall be used by the
General Partner only for the business of the Partnership.

 

Section 6.5.            Fiscal
Year.  The
fiscal year of the Partnership (the “Fiscal Year”) shall be the calendar
year; provided, however, that the last Fiscal Year of the
Partnership shall end on the date on which the Partnership is terminated.

 

ARTICLE VII

POWERS, RIGHTS AND DUTIES OF THE LIMITED PARTNERS

 

Section 7.1.            Limitations.  Except as otherwise expressly set forth in or
contemplated by this Agreement, the Limited Partners shall not (a) participate
in the management or control of the Partnership’s business; (b) transact any
business for the Partnership; or (c) have the power to act for or bind the
Partnership, such powers being vested solely and exclusively in the General
Partner.  The Limited Partners shall have
no interest in the properties or assets of the General Partner, or any equity
therein, or in any proceeds of any sales thereof, by virtue of acquiring or
owning an Interest in the Partnership.

 

Section 7.2.            Liability.  Subject to the Limited Partnership Act, no
Limited Partner shall be liable for the repayment, satisfaction or discharge of
any debts, liabilities or other obligations of the Partnership in excess of
such Limited Partner’s Capital Account balance.

 

Section 7.3.            Priority.  Except as otherwise expressly set forth in Article
IV, no Limited Partner (or any Affiliate thereof or any partner, member,
officer or director of any Limited Partner or Affiliate thereof) shall have
priority over any other Limited Partner as to Partnership allocations or
distributions.

 

Section 7.4.            Consulting
and Advisory Services.  Subject to Section
8.3(b)(xvi) hereof, the General Partner may enter into agreements with any
Original Limited Partner for consulting or advisory services on such terms
deemed appropriate by the General Partner in its sole discretion.  Notwithstanding the foregoing, no Original
Limited Partner shall be deemed to

 

15

 

be
participating in the control of the business of the Partnership by virtue of
its acting in the capacity of consultant or advisor or performing any
consulting or advisory services.

 

Section 7.5.            Information.

 

(a)           The Partnership shall cause, to the
extent practicable, including through causing the applicable bylaws of Holding
Company and Operating Company to so provide, each Original Limited Partner and
Stockwell Fund L.P. to (i) receive the same prior written notice of all
meetings of the board of directors of Holding Company and Operating Company as
that afforded to the directors thereof, (ii) be entitled to have a
representative attend all such meetings (provided that Stockwell Fund L.P.
shall not have this right), and (iii) receive copies of information provided to
directors of Holding Company and Operating Company (including, without
limitation, books and records and financial statements of the type described in
Section 6.2), as if the Original Limited Partner or Stockwell Funds L.P.
were a director thereof; provided that such representative shall have no right
to vote at such meetings and attendance at any such meeting shall not in any
way affect any quorum requirements.  The
Partnership shall also cause the bylaws of Holding Company and Operating
Company each to provide for meetings of the boards of directors no less than
once per Fiscal Quarter.  The General
Partner shall take all reasonable actions necessary or desirable to give effect
to the foregoing information rights.

 

(b)           The General Partner shall provide to
the Limited Partners prompt written notice of each of the following actions of
the Partnership, Holding Company or any of its Subsidiaries:

 

(i)            the
voluntary incurrence of any indebtedness (A) for borrowed money,
(B) evidenced by notes, bonds, debentures or other similar instruments,
(C) for the deferred purchase price of goods or services (other than trade
payables or accruals incurred in the ordinary course of business), (D) under
capital leases and (E) in the nature of guarantees of the obligations described
in clauses (A) through (D) of any other Person, or the purchase, cancellation,
prepayment or a complete or partial discharge in advance of a scheduled payment
date with respect to, or waiver of any right under, any indebtedness (whether
for borrowed money or otherwise), in either case in excess of $1,000,000 and
other than indebtedness of the Partnership, Holding Company or a wholly-owned
Subsidiary thereof owing to the Partnership, Holding Company or a wholly-owned
Subsidiary thereof;

 

(ii)           the
making or commitment to make capital expenditures which individually are in an
amount greater than $1,000,000 or which in the aggregate are in an amount
greater than $2,500,000 in any twelve (12) month period;

 

(iii)          the
sale, lease, exchange, transfer or other disposition of, a portion of its
assets or businesses (including the capital stock of any of its Subsidiaries)
for consideration in excess of $10,000,000;

 

(iv)          the
adoption, entering into or becoming bound by, or amending, modifying or
terminating, any employment contract with a senior executive officer of Holding
Company;

 

16

 

(v)           adoption,
modification or amendment in the annual operating or capital budget or business
plan of the Partnership, the Holding Company or any of its direct or indirect
Subsidiaries;

 

(vi)          the
exercise of its right to vote the shares of common stock (or similar equity
interest) of any Subsidiary of the Partnership; or

 

(vii)         the
entering into any contract, agreement, arrangement or commitment to do or
engage in any of the foregoing.

 

(c)           Each Partner shall take reasonable
steps to maintain the confidentiality of any non-public information concerning
the Holding Company or its subsidiaries that is received by it or its
representatives under this Agreement or pursuant to any rights the Partners may
have to information under the bylaws of the Holdings Company or its
subsidiaries.

 

Section 7.6.            Certificated
Interests. 
Interests shall be uncertificated. 
Notwithstanding the foregoing, any Partner shall be entitled, upon a
written request to the General Partner, to have a certificate signed by or in
the name of the Partnership by the General Partner representing such Partner’s
Interest registered in certificated form. 
Such certificate shall be in such form as reasonably determined by the
General Partner after consultation with the Limited Partners.  All certificates for Interests shall be
consecutively numbered or otherwise identified. 
All certificates exchanged or surrendered to the Partnership for
transfer shall be cancelled.  Transfers
of Interests by Partners having Interests in certificated form shall in
addition to the requirements in Article IX be made only upon
surrender to the Partnership of the certificate or certificates for such
Interests, duly endorsed or accompanied by proper evidence of succession,
assignment or authority to transfer as set forth in Article IX.  The Partnership may issue a new certificate
for Interests in place of any certificate theretofore issued by it, alleged to
have been lost, stolen or destroyed, and the General Partner may require the
owner of the lost, stolen or destroyed certificate to give the Partnership a
bond sufficient to indemnify the Partnership against any claim that may be made
against it on account of the alleged loss, theft or destruction of any such
certificate or the issuance of any such new certificate.  The General Partner may require such owner to
satisfy other reasonable requirements.

 

ARTICLE VIII

POWERS, RIGHTS AND DUTIES OF THE GENERAL PARTNER

 

Section 8.1.            Authority.  Subject to the restrictions set forth in Sections
8.3 and 8.4, and except as otherwise expressly set forth in this
Agreement, the General Partner shall have exclusive and complete authority and
discretion to manage the day-to-day operations and affairs of the Partnership
and to make all decisions regarding the business of the Partnership.  Any action taken by the General Partner shall
constitute the act of and serve to bind the Partnership.  In dealing with the General Partner acting on
behalf of the Partnership, no Person shall be required to inquire into the
authority of the General Partner to bind the Partnership.  Persons dealing with the Partnership are
entitled to rely conclusively on the power and authority of the General Partner
as set forth in this Agreement.

 

17

 

Section 8.2.            Powers
and Duties of General Partner.  Subject to the restrictions set forth in Sections
8.3 and 8.4, and except as otherwise expressly set forth in this
Agreement, the General Partner shall have all rights and powers of a general
partner under the Limited Partnership Act and shall have all authority, rights
and powers in the day-to-day management of the Partnership’s business to do any
and all other acts and things necessary, proper or advisable to effectuate the
objectives and purposes of this Agreement, including by way of illustration but
not by way of limitation, the following:

 

(a)           To acquire, hold, sell, transfer,
exchange, pledge, mortgage, grant a security interest in, dispose of and
otherwise deal with all or any part of the Partnership Assets, and incident
thereto, to liquidate Partnership Assets at any time during the term of the
Partnership and to reinvest the proceeds thereof;

 

(b)           To do such other acts as the General
Partner may deem necessary or advisable, or as may be incidental to or
necessary for the conduct of the business of the Partnership, including,
without limitation, to enter into, make and perform agreements, undertakings
and transactions with the General Partner, any other Partner or any
shareholder, direct or indirect partner, Affiliate or employee of any of them,
or with any other Person having any business, financial or other relationship
with the Partnership, any Partner or any direct or indirect partner, Affiliate
or employee of any of them;

 

(c)           To employ or retain and dismiss
accountants, consultants, attorneys and such other agents and employees for the
Partnership as it may deem reasonably necessary or advisable, and authorize any
such agent or employee to act for and on behalf of the Partnership;

 

(d)           To establish such reserves from
Partnership funds as the General Partner, in its sole discretion, may deem reasonably
necessary or advisable for the Partnership’s operations and for the payment of
the Partnership’s obligations;

 

(e)           To develop and adopt a budget and
business plan of the Partnership and its Subsidiaries for each Fiscal Year, as
soon as practicable, but in any event not later than the end of the first
Fiscal Quarter of such Fiscal Year;

 

(f)            To determine the Value of any or all
of the Partnership Assets when such determination is required under this
Agreement, all of which valuations and determinations (when determined in
accordance with the definition of Value) shall be final and binding on the
Partnership and Partners;

 

(g)           To exercise all rights, powers,
privileges and other incidents of ownership or possession with respect to any
Partnership Assets, including, without limitation, the institution and
settlement or compromise of suits and administrative proceedings and other
similar matters relating specifically to the ownership or possession of
Partnership Assets;

 

(h)           To open, maintain and close bank
accounts and draw checks or other orders for the payment of money;

 

(i)            To make such elections under the
Code and other relevant tax laws as to the treatment of items of Partnership
income, gain, loss and deduction, and as to all other

 

18

 

relevant matters, as the General Partner deems
necessary or appropriate, including elections referred to in Code Section 754,
determination of which items of cash outlay are to be capitalized or treated as
current expenses and selection of the method of accounting and bookkeeping
procedures to be used by the Partnership;

 

(j)            To bring or defend, pay, collect,
compromise, arbitrate, resort to legal action or otherwise adjust claims or
demands of or against the Partnership;

 

(k)           To deposit, withdraw, invest,
disburse, retain and distribute the Partnership’s funds in a manner consistent
with this Agreement;

 

(l)            To take all action which may be
necessary or appropriate for the continuation of the Partnership’s valid
existence as a limited partnership under the laws of the State of Michigan and
of each other jurisdiction in which such existence is necessary to protect the
limited liability of the Limited Partners or to enable the Partnership to
conduct the business in which it is engaged; and

 

(m)          To execute and deliver any and all
agreements, instruments or other documents as are necessary or advisable to
carry out the intentions and purposes of the above duties and powers;

 

provided,
however, that the General Partner is not entitled to take any action
that would result in a breach by Holding Company of the Purchase Agreement,
without the prior written consent of Three-Fourths-in-Interest of the Limited
Partners.

 

Section 8.3.            Limits
on General Partner’s Powers.  Anything in this Agreement to the contrary
notwithstanding, the General Partner shall not:

 

(a)           without the prior consent of
Three-Fourths-in-Interest of the Limited Partners in any written instrument
executed and delivered by Three-Fourths-in-Interest of the Limited Partners to
the Partnership, cause or permit the Partnership or any of its Subsidiaries to
enter into or otherwise permit any recapitalization, reorganization,
reclassification, merger, consolidation, asset sale, liquidation or spin-off,
stock split, distribution, dividend, consolidation, subdivision or combination
that would not afford to each Limited Partner proportionately the same type and
amount (in accordance with the terms of this Agreement) of consideration, or
purchase or redeem Interests in the Partnership other than on a pro rata basis from all Limited Partners at the same
relative consideration;

 

(b)           without the prior consent of the
Majority-in-Interest of the Limited Partners (or in the case of clauses (i),
(iii) and (iv), Three-Fourths-in-Interest of the Limited Partners) in any
written instrument executed and delivered to the Partnership, cause or permit
the Partnership or any of its Subsidiaries to:

 

(i)            create
any additional class of, issue or sell equity interests of the Partnership (or
any warrants, options or rights to acquire such equity interests or securities
convertible into or exchangeable into such equity interests);

 

19

 

(ii)           initiate,
settle or compromise any action, suit, arbitration or proceeding (“Actions”)
(A) in which any amount is claimed by or against the Partnership or (B) that
would require the Partnership to be subject to any equitable relief or to take
or refrain from taking any material action; provided that this clause
(ii) shall not apply to the settlement or compromise of Actions against a
Partner or its Affiliates for breach of this Agreement;

 

(iii)          amend,
modify or repeal any provision of the formation or organizational documents of
the Partnership or any of its Subsidiaries so as to change the powers,
preferences or special rights of the Limited Partners or in a manner that would
otherwise adversely affect the rights of holders of limited partnership
Interests;

 

(iv)          take
any material action with respect to any transaction which results in actual or
potential conflicts of interest that arise between the Partnership or any of
its Subsidiaries and the General Partner or any of the Limited Partners or any
of their respective Affiliates (including employees and directors of such
Partners and their respective Affiliates), or the payment by the Partnership of
any fees or other amounts to a Partner or any Affiliate of a Partner;

 

(v)           take
(or fail to take) any action that would result in any Limited Partner or its
affiliates (other than the Partnership and its subsidiaries): (A) being
deemed to be engaged in any United States trade or business for Federal tax
purposes or having unrelated business taxable income for Federal tax purposes
or (B) being deemed to be a “holding company” or a “subsidiary company” or an “affiliate”
of a “holding company” or a “public utility company” under the 1935 Act or any
other similar state or federal law, or a “public utility” under the Federal
Power Act or (C) being subject to any other federal or state regulation
that, in the reasonable discretion of the Majority-in-Interest of the Limited
Partners, would have an adverse affect on the Limited Partners or any of their
affiliates, in each case without the prior consent of such Limited Partner; or

 

(vi)          enter
into any contract, agreement, arrangement or commitment to do or engage in any
of the foregoing.

 

Section 8.4.            Transactions
with Affiliates; Fees.

 

(a)           Subject to the provisions of Section
8.3, the General Partner may cause or permit the Partnership, or the
Partnership may cause or permit any of its Subsidiaries to contract for the
performance of the services of the General Partner or any of its Affiliates,
provided that (i) the Three-Fourths-in-Interest of the Limited Partners have
approved such contract (with no Limited Partner being required to abstain from
such vote) or (ii) the execution of such contract or agreement is otherwise
specifically permitted or required by this Agreement.  Nothing herein shall be construed as a
guarantee by the General Partner of the performance by any Affiliate, designee
or nominee of its obligations under any contract between any such Affiliate and
the Partnership.

 

(b)           Except as specifically provided or
permitted in this Agreement and the other contracts or agreements entered into
hereunder or in connection herewith, and except for the General Partner’s
interest in distributions, capital, profits, income, gain, loss, deduction and

 

20

 

credit of the Partnership, neither the General Partner
nor any Affiliate of the General Partner shall receive compensation or other
payments from the Partnership or its Subsidiaries.

 

(c)           On the date of a successful public
offering of equity securities of the Holding Company, the Partnership shall pay
to the General Partner or its designee a one-time management fee (the “Management
Fee”) in an amount equal to any management fee received by the Partnership for
providing management and advisory services to the Holdings Company and the
Operating Company.

 

Section 8.5.            Other
Activities and Competition.  The General Partner shall not be required to
manage the Partnership as its sole and exclusive function, however, the General
Partner shall cause each of its executive officers to devote a sufficient
portion of their time to permit the General Partner to fulfill its obligations
to the Partnership hereunder and under the other contracts and agreements
entered into by it in connection herewith. 
Except as otherwise specifically provided for in this Section 8.5
or elsewhere in this Agreement, neither the Partnership nor any Partner shall
have any right by virtue of this Agreement or the partnership relationship
created hereby in or to other ventures or activities of any Partner or its
Affiliates or to the income or proceeds derived therefrom.

 

Section 8.6.            Exculpation.  The General Partner shall not be liable for
the return of any portion of the Capital Contributions (or any earnings
thereon) of the Limited Partners.  The
return of such Capital Contributions (or any earnings thereon) shall be made
solely from assets of the Partnership. 
The General Partner shall not be required to pay to the Partnership or
any Limited Partner any deficit in any Capital Account of the General Partner
or any Limited Partner upon dissolution or otherwise.  No Limited Partner shall have the right to
demand or receive property other than cash for its Interest in the
Partnership.  Neither the General Partner
nor any of its Affiliates shall be liable, responsible or accountable in
damages or otherwise to the Partnership or any Limited Partner for any loss
incurred as a result of any act or failure to act by the General Partner on
behalf of the Partnership except to the extent such loss is finally determined
by a court of competent jurisdiction to have resulted from the General Partner’s
willful misconduct or gross negligence.

 

Section 8.7.            Expenses;
Use of Proceeds; Insurance.

 

(a)           The Partnership shall pay, and the
General Partner shall not be obligated to pay, all expenses of the Partnership,
including, but not limited to, legal, travel, accounting and appraisal
expenses, any expenses incurred by the “Tax Matters Partner” acting as such,
all reasonable expenses relating to the negotiations, execution and delivery of
this Agreement, all reasonable expenses incurred in connection with the
negotiation, execution and delivery of any amendment to this Agreement and any
other reasonable expenses incurred in connection with the administration of the
Partnership.  The Partnership shall reimburse
the General Partner or any Limited Partner for any such costs advanced by such
Partner on behalf of the Partnership, to the extent the General Partner or an
Affiliate thereof is not otherwise reimbursed by an Affiliate of the
Partnership.

 

(b)           The Partnership used the proceeds of
the Capital Contributions made by the Partners to pay, in part, the Base
Purchase Price under and as defined in the Purchase

 

21

 

Agreement and the fees and expenses incurred by or on
behalf of the Partnership in connection therewith.  The execution and delivery of the Purchase
Agreement and the consummation of the transactions contemplated thereby are
hereby ratified by the Partners. 
Notwithstanding anything herein to the contrary, the Partnership shall
not allow the Holding Company to consent to any material amendment to, or waive
any material term or condition in, the Purchase Agreement without the prior
written consent of Three-Fourths-in-Interest of the Limited Partners.

 

(c)           The General Partner will use
commercially reasonable efforts to obtain and maintain (or cause to be obtained
and maintained) directors and officers liability insurance (or its equivalent)
and property, casualty, liability, workers’ compensation and other insurance
for the Partnership and its Subsidiaries with financially responsible insurers
in such amounts and against such losses and risks as are customary for the
business conducted by the Partnership and its Subsidiaries.

 

Section 8.8.            Indemnification
of Partners.

 

(a)           The Partnership shall indemnify and
hold harmless the General Partner and the Limited Partners, and their
respective partners, members, officers, directors and Affiliates (and the
managers, members, officers, directors, agents and employees of each of the
foregoing) from and against any claim, loss, expense, damage or injury suffered
or sustained by them, solely by reason of any acts, omissions or alleged acts
or omissions arising out of or in connection with the Partnership or this Agreement,
including, without limitation, any judgment, award, settlement, reasonable
attorneys’ fees and other costs or expenses incurred in connection with the
defense of any actual or threatened action, proceeding or claim, except
(i) that the Partnership shall not be responsible under this Section
8.8 to an indemnified party for any claim, loss, expense, damage or injury
to the extent it is (A) finally determined by a court of competent jurisdiction
to have resulted solely from such indemnified party’s willful misconduct or
gross negligence or (B) actually paid by any Subsidiaries of the Partnership to
such indemnified party and (ii) as may be limited by the Limited
Partnership Act.

 

(b)           The right to indemnification
conferred in this Section 8.8 shall include the right to be paid by the
Partnership the expenses (including attorneys’ fees) incurred in defending any
such proceeding in advance of its final disposition (hereinafter an “advancement
of expenses”); provided, however, that, if the Limited
Partnership Act requires, an advancement of expenses incurred by an indemnitee
shall be made only upon delivery to the Partnership of an undertaking
(hereinafter an “undertaking”), by or on behalf of such indemnitee, to repay
all amounts so advanced if it shall ultimately be determined by final judicial
decision from which there is not further right to appeal (hereinafter a “final
adjudication”) that such indemnitee is not entitled to be indemnified for such
expenses under this Section 8.8 or otherwise.

 

(c)           The right to indemnification and the
advancement of expenses conferred in this Section 8.8 shall not be
exclusive of any other right which any person may have or hereafter acquire
under any statute, provision of this Agreement, agreement, vote of Limited
Partners or otherwise.

 

Section 8.9.            Certain Additional Duties.  At the request of a Majority-in-Interest of
the Limited Partners, the General Partner shall take such reasonable actions as
may be directed

 

22

 

by the Majority-in-Interest of the Limited Partners
(including modifications to the provisions of this Article 8 from time to
time), to the extent necessary, so as to preclude any of the Limited Partners
and their Affiliates from being deemed to be a “holding company” or a “subsidiary
company” or an “affiliate” of a “holding company” or a “public utility company”
under the 1935 Act or any other similar state of federal law, or as a “public
utility” under the Federal Power Act; provided, however, that in
no event shall any such action or adjustment adversely affect the rights of any
Limited Partner hereunder without the consent of such Limited Partner.

 

ARTICLE IX

TRANSFERS OF INTERESTS BY PARTNERS; PREEMPTIVE RIGHTS

 

Section 9.1.            General.

 

(a)           Except as contemplated by Sections
9.3, 9.6, 9.7 and 9.13 hereof, no Partner may sell,
assign, pledge or in any manner dispose of (including, without limitation,
through derivative transactions) or create or suffer the creation of, a
security interest in or any encumbrance on all or a portion of its Interest in
the Partnership (the commission of any such act being referred to as a “Transfer,”
any person who effects a Transfer being referred to as a “Transferor”
and any person to whom a Transfer is effected being referred to as a “Transferee”),
except in accordance with the terms and conditions set forth in this Article
IX.  No Transfer of an Interest in
the Partnership shall be effective until such time as all requirements of this Article
IX have been satisfied and, if consents, approvals or waivers are required
by the General Partner and/or the Limited Partners, all of same shall have been
confirmed in writing by such Partner or Partners.  All Partners shall use reasonable efforts to
effectuate any Transfers to be made in accordance with this Article IX.  Any Transfer or purported Transfer of an
Interest in the Partnership not made in accordance with this Agreement shall be
null and void (a “Void Transfer”) and of no force or effect
whatsoever.  Any amounts otherwise
distributable under Article V in respect of an Interest in the
Partnership that has been the subject of a Void Transfer may be withheld by the
General Partner until the Void Transfer has been rescinded, whereupon the
amount withheld shall be distributed without interest.

 

(b)           Except as specifically contemplated
hereby or agreed to by Three-Fourths-in-Interest of the Limited Partners at the
time of such agreement, no Partner shall grant any proxy or enter into or agree
to be bound by any voting trust with respect to any Interest nor shall any
Partner enter into any agreements or arrangements of any kind with any Person
with respect to any interest inconsistent with the provisions of this Agreement
nor shall any Partner act, for any reason, as a member of a group or in concert
with any other Persons (other than Permitted Transferees) in connection with
the acquisition, disposition or voting of Interests in any manner which is
inconsistent with the provisions of this Agreement.

 

(c)           None of the restrictions contained in
this Agreement with respect to Transfers of Interests (other than those set
forth in Section 9.4) shall apply to any Transfer to a Permitted
Transferee.

 

23

 

Section 9.2.            Transfer
of Interest by General Partner.

 

(a)           Except as contemplated by Section
9.7, the General Partner may not Transfer all or any portion of its
Interests (including any rights to distributions pursuant to Article V
hereof), unless such Transfer is approved by Three-Fourths-in-Interest of the Limited
Partners).

 

(b)           No Transferee of the General Partner’s
Interest in the Partnership shall be admitted to the Partnership as a General
Partner solely by reason of such Transfer unless such Transferee is one of the
Original Limited Partners or one of its Affiliates and such Transfer does not
result in a breach of this Agreement. 
Unless a Transferee of the General Partner’s Interest in the Partnership
is admitted as a successor general partner pursuant to the terms of this
Agreement, it shall have none of the powers of a General Partner hereunder and
shall have only such rights of an assignee under the Limited Partnership Act as
are consistent with this Agreement.

 

(c)           As of the date hereof, all of the
interests of the General Partner in the Partnership are directly or indirectly
owned only by those Persons described in clause (b) of the definition of
Permitted Transferee.  The General
Partner shall cause all of the interests of the General Partner in the Partnership
to be owned, directly or indirectly, only by those Persons described in
clause (b) of the definition of Permitted Transferee.  Nothing in this paragraph shall be deemed to
limit the obligations of the General Partner in respect of Transfers of Interests
contained elsewhere in this Agreement.

 

Section 9.3.            Transfer
of Interest by Limited Partners.

 

(a)           Except as contemplated by Sections
9.6 and 9.7, or as agreed to by Three-Fourths-in-Interest of the
Limited Partners, following the third anniversary of the Closing Date, any
Limited Partner may Transfer all or any portion of its Interest, subject to the
terms and conditions set forth in this Article IX and after compliance
with the provisions of Sections 9.5 and 9.6 hereof.

 

(b)           Unless a Transferee of a Limited
Partner’s Interest in the Partnership is admitted as a Substituted Limited
Partner under this Section 9.3(b), it shall have none of the powers
of a Limited Partner hereunder and shall have only such rights of an assignee
under the Limited Partnership Act as are consistent with this Agreement.  No Transferee of a Limited Partner’s Interest
shall become a Substituted Limited Partner unless such Transfer shall be made
in compliance (after giving effect to Section 9.1(b)) with Sections 9.3(a),
9.4, 9.5, 9.6 and 9.7 hereof, to the extent the
same are applicable to such Transfer.

 

(c)           Upon the Transfer of the entire
Interest of a Limited Partner and effective upon the admission of its
Transferee as a Limited Partner, the Transferor shall be deemed to have
withdrawn from the Partnership as a Limited Partner.

 

(d)           Upon the death, disability,
dissolution, withdrawal in contravention of Section 10.1 or the
bankruptcy of a Limited Partner (the “Withdrawing Limited Partner”), the
General Partner shall have the right to treat such Partner’s successor(s)-in-interest
as assignee(s) of such Partner’s Interest, with none of the powers of a Limited
Partner hereunder and with only

 

24

 

such rights of an assignee under the Limited
Partnership Act as are consistent with this Agreement.  For purposes of this Section 9.3(d),
if a Withdrawing Limited Partner’s Interest is held by more than one Person
(for purposes of this Paragraph, the “Assignees”), the Assignees shall
appoint one Person with full authority to accept notices and distributions with
respect to such Interest on behalf of the Assignees and to bind them with
respect to all matters in connection with the Partnership or this Agreement.

 

Section 9.4.            Further
Requirements.  In addition to the
other requirements of Sections 9.2 and 9.3, and unless waived in
whole or in part by the General Partner to the extent permitted hereby
(including, without limitation, Section 9.4(c)(ii) below), no Transfer
of all or any portion of an Interest may be made unless the following conditions
are met:

 

(a)           The Transferor shall have paid all
reasonable costs and expenses, including, without limitation, attorneys fees
and disbursements and the cost of the preparation, filing and publishing of any
amendment to this Agreement or the Certificate, incurred by the Partnership in
connection with the Transfer;

 

(b)           The Transferor shall have delivered
to the General Partner a fully executed copy of all transfer documents relating
to the Transfer, including, without limitation, an Instrument of Transfer,
executed by both the Transferor and the Transferee, and the agreement in
writing of the Transferee to:

 

(i)            Be
bound by the terms of this Agreement and by the conditions imposed upon such
Transfer by the General Partner provided such conditions are consistent with
the terms of this Agreement; and

 

(ii)           Assume
all obligations of the Transferor under this Agreement relating to the Interest
that is the subject of such Transfer;

 

(c)           The General Partner, after
consultation with nationally recognized legal and other relevant advisors,
shall have been reasonably satisfied, including at its option having received
an opinion of counsel to the Partnership reasonably acceptable to the General
Partner, that:

 

(i)            The
Transfer will not cause the Partnership to be treated as an association taxable
as a corporation for Federal income tax purposes;

 

(ii)           The
Transfer will not result in the termination of the Partnership for Federal
income tax purposes;

 

(iii)          The
Transfer will not result in the Partnership or any Partner or its Affiliates
(other than the Partnership’s subsidiaries): (A) being subject to
regulation as a “holding company” or a “subsidiary company” or an “affiliate”
of a “holding company” or a “public utility company” under the 1935 Act or any
other similar state or federal law, or as a “public utility” under the Federal
Power Act or (B) being subject to any other federal or state regulation
that, in the reasonable discretion of the Majority-in-Interest of the Limited
Partners, would have an adverse affect on the Limited Partners or any of their
affiliates;

 

25

 

(iv)          The
Transfer will not cause the Partnership to be treated as a “publicly traded
partnership” within the meaning of Code Section 7704; and

 

(v)           The
Transfer will not violate any applicable Federal or state law, rule or
regulation, including, without limitation, the Securities Act or any other
applicable Federal or state securities laws, rules or regulations; and

 

(d)           The General Partner, after consultation
with nationally recognized legal and other relevant advisors, shall have been
reasonably satisfied that:

 

(i)            The
Transfer will not cause some or all of the Partnership Assets to be “plan
assets” or the trading and investment activity of the Partnership to constitute
“prohibited transactions” under ERISA or the Code; and

 

(ii)           The
Transfer will not cause the Partnership to be an investment company required to
be registered under the Investment Company Act of 1940, as amended.

 

Any waivers from the
General Partner under this Section 9.4 shall be given or denied in the
sole discretion of the General Partner; provided that in no event shall
the General Partner waive any of the requirements of Section 9.4(c).  The General Partner shall reflect each Transfer
and admission authorized under this Article IX (including the terms and
conditions imposed thereon by the General Partner pursuant to Section
9.4(b)(i)) by preparing an amendment to this Agreement dated as of the date
of such Transfer.  The form and content
of all documentation delivered to the General Partner under this Section 9.4
shall be subject to the approval of the General Partner, which approval may be
granted or withheld in the General Partner’s reasonable discretion.  The provisions of this Section 9.4 do
not apply to Transfers made by any Tag-Along Partner or Minority Holder
pursuant to Sections 9.6 or 9.7 or Transfers in connection with a Public
Offering.

 

Section 9.5.            Right
of First Offer.

 

(a)           Except for transfers to Permitted
Transferees and except in the case of a sale in connection with a Public
Offering, following the third anniversary of the Closing Date, any Limited
Partner (each, a “Selling Holder”) who desires to sell, assign or
otherwise transfer any portion of its Interest shall first give written notice
(a “Seller’s Notice”) to all other Limited Partners (the Limited
Partners receiving such notice being referred to herein as the “Offeree(s)”)
stating (i) the Selling Holder’s desire to make such transfer, (ii) the
Interests proposed to be transferred (the “Offered Interest”) and (iii)
the aggregate cash price which the Selling Holder proposes to be paid for the
Offered Interest by the Offerees (the “First Offer Price”).

 

(b)           Upon receipt of the Seller’s Notice,
each Offeree shall have the irrevocable and exclusive option to purchase at the
First Offer Price up to that percentage of the Offered Interest determined by
dividing the Interest owned by such Offeree by the total Interests owned by all
Offerees (the “Proportionate Share”). 
To the extent that any Offeree does not fully subscribe for its
Proportionate Share of the Offered Interest, each other fully participating
Offeree shall have an option to purchase that percentage of the Offered Interest
not purchased by non-participating or partially participating Offerees
determined by dividing the Interest owned by such fully participating Offeree
by the total Interest owned by all fully participating Offerees.

 

26

 

To the extent that the Offerees do not subscribe for
all the Offered Interest, the entire Offered Interest may be sold by the
Selling Holder pursuant to Section 9.5(c).  Each Offeree’s option under this Section
9.5(b) shall be exercisable by a written notice to the Selling Holder, with
copies to the Partnership, given within thirty (30) Business Days from the date
of the Seller’s Notice.

 

(c)           If
the Seller’s Notice shall be duly given, and if the Offerees shall not have
exercised their option to purchase all of the Offered Interest at the First
Offer Price, then the Selling Holder shall be free, for a period of ninety (90)
days from the thirtieth Business Day following the date of the Seller’s Notice
(except as may be extended to obtain any required governmental or regulatory
approvals), to sell the Offered Interest not purchased by the Offerees to any
third party Transferee at a pro rata cash price equal to or greater than the
First Offer Price; provided that such sale complies with the provisions
of Article IX of this Agreement.

 

(d)           If
the proposed pro rata purchase price of a third party Transferee for the
Offered Interest is less than the First Offer Price, the Selling Holder shall
not sell or otherwise transfer any of the Offered Interest unless the Selling
Holder shall first reoffer the Offered Interest at such lesser price to the
Offerees by giving written notice (the “Reoffer Notice”) thereof,
stating the Selling Holder’s intention to make such transfer at such lower
price (the “Reoffer Price”).  Each
Offeree shall then have the irrevocable and exclusive option to purchase the
Offered Interest at the Reoffer Price, exercisable in the same proportions and
manner as provided in Section 9.5(b). 
To the extent that the Offerees do not then purchase all the Offered
Interest, such Offered Interest may be sold by the Selling Holder to any third
party Transferee within ninety (90) days following the thirtieth Business Day
from the delivery of the Reoffer Notice (except as may be extended to obtain
any required governmental or regulatory approvals), at a pro rata cash price
equal to or greater than the applicable portion of the Reoffer Price; provided
that such sale complies with the provisions of Article IX of this
Agreement.

 

(e)           If
the Offerees do not exercise their option to purchase the Offered Interest at
the First Offer Price or at the Reoffer Price, and the Selling Holder shall not
have sold the Offered Interest to any Transferee for any reason before the
expiration of the 90-day period described in Section 9.5(d) (except as
may be extended to obtain any required governmental or regulatory approvals),
then the Selling Holder shall not give a Seller’s Notice with respect to a
transaction which would require compliance with this Section 9.5 for a
period of two months from the last day of such 90-day period (or longer period
as herein provided).

 

(f)            The
closing of all purchases pursuant to the first offer rights granted under this Section
9.5 shall take place at such place as may be mutually acceptable to the parties
thereto at 10:00 a.m. local time on the later of (x) the fifth Business Day
following the delivery to the Selling Holder of all notices exercising such
first offer rights with respect to all of the Offered Securities to be sold by
the Selling Holder or (y) the fifth Business Day following the receipt of all
required approvals of any governmental or regulatory authority applicable to
such purchases, or at such other time and/or place as the parties to such
purchases may agree.  At such closing,
(i) the Selling Holder shall assign and transfer to each Offeree purchasing a
portion of the Interest good and valid title to the portion of the Interest
being purchased by them, by delivery of such instruments of transfer as the
Partnership or the Offeree shall reasonably request; and (ii) the Offeree
purchasing a portion of the Interest shall pay to the Selling Holder the
purchase price for

 

27

 

the portion of the Interest being purchased by the
Offeree in cash, by delivery of a certified or bank check or by wire transfer
of immediately available funds to such account as the Selling Holder shall
direct by written notice delivered to each Offeree not later than two (2)
Business Days before such closing.

 

(g)           Notwithstanding
the foregoing, the provisions of this Section 9.5 shall terminate, and
be of no further force and effect, upon the earlier to occur of (i) any Equity
Event or (ii) the fifth anniversary of the Closing Date.

 

Section 9.6.            Tag-Along
Rights.

 

(a)           If
at any time following compliance with the provisions of Section 9.5 (if
applicable) a Limited Partner (a “Tag-Along Transferor”) is otherwise
permitted to Transfer its Interests (other than in connection with a Public
Offering or a Transfer pursuant to Section 9.13) under this
Agreement and wishes to Transfer a portion of its Interest (other than to a
Permitted Transferee), which, when added to the Interests already transferred
thereby (and/or by its Special Permitted Transferees) exceeds 1% of the aggregate
Limited Partnership Interests outstanding, to any Person other than a Special
Permitted Transferee (a “Tag-Along Transferee”), each other Limited
Partner (each a “Tag-Along Partner”) shall have the right (“the “Tag-Along
Right”) to require, as a condition to such Transfer by the Tag-Along
Transferor, that the Tag-Along Transferee purchase from such Tag-Along Partner,
that portion of the Interest owned by such Tag-Along Partner equaling the
number derived by multiplying the total Interest owned by such Tag-Along
Partner by a fraction, the numerator of which is the actual Interest to be
Transferred to the Tag-Along Transferee by the Tag-Along Transferor, and the
denominator of which is the aggregate Interest owned by the Tag-Along
Transferor immediately prior to such Transfer. 
In the event the Tag-Along Transferee is unwilling to purchase the
aggregate Interest that the Tag-Along Transferor and the Tag-Along Partners
(and each of them) desire to Transfer to the Tag-Along Transferee pursuant
hereto, the Interest that each of the Tag-Along Transferor and each Tag-Along
Partner shall be entitled to Transfer to the Tag-Along Transferee shall be
calculated as follows:

 

(i)            Each
Tag-Along Partner who desires to Transfer a portion of its Interest to the
Tag-Along Transferee shall be entitled to Transfer that portion of its Interest
equal to the Interest which such Tag-Along Partner properly sought to Transfer
to such Tag-Along Transferee, by operation of the prior paragraph, multiplied
by a fraction, the numerator of which is the total Interest which the Tag-Along
Transferee is willing to acquire and the denominator of which is the total
Interest which the Tag-Along Transferor and all of the Tag-Along Partners
properly sought to Transfer to such Tag-Along Transferee by operation of the
prior paragraph; and

 

(ii)           The
Tag-Along Transferor shall be entitled to Transfer that portion of its Interest
equal to the Interest which the Tag-Along Transferee is willing to acquire, minus
the total Interest which the participant Tag-Along Partners are entitled to
Transfer to such Tag-Along Transferee, as determined in accordance with clause
(i) above.

 

28

 

(b)           For
the purpose of the foregoing, if more than one Transfer subject to the terms of
this Section 9.6 is occurring substantially concurrently to a single
Tag-Along Transferee, the rights of the Tag-Along Partners hereunder shall be
aggregated.

 

(c)           Any
attempted Transfer by a Tag-Along Transferor which is subject to this Section
9.6 but does not comply with the requirements of this Section 9.6
shall be null and void.

 

(d)           Any
Tag-Along Transferor which proposes to Transfer any Interest pursuant to any
transaction subject to this Section 9.6 shall notify each Tag-Along
Partner in writing of each such proposed Transfer (a “Tag-Along Offer Notice”).  Such Tag-Along Offer Notice shall set forth:
(i) the name of the Tag-Along Transferee, (ii) the aggregate Interest proposed
to be Transferred, (iii) the proposed amount and form of consideration and
material terms and conditions, including payment, offered by the Tag-Along
Transferee (the “Tag-Along Transfer Terms”), (iv) the total of the
aggregate Interest owned by such Tag-Along Transferor, and (v) a statement to
the effect that the Tag-Along Transferee has been informed of the “tag-along
right” provided for in this Section 9.6 and has agreed to purchase the
Interest subject hereto.  The Tag-Along
Right may be exercised by any Tag-Along Partner by delivery of a written notice
to the Tag-Along Transferor (the “Tag-Along Notice”) within fifteen (15)
Business Days following delivery of the Tag-Along Offer Notice (the “Tag-Along
Notice Deadline”); provided that the failure by any Tag-Along Partner to
provide the Tag-Along Notice on or before the Tag-Along Notice Deadline shall
be deemed to be an election by such Tag-Along Partner not to exercise the
Tag-Along Right with respect to the transaction described in the Tag-Along
Offer Notice.

 

(e)           Upon
delivery of a Tag-Along Notice, such Tag-Along Partners shall be entitled to
sell to the Tag-Along Transferee on the Tag-Along Transfer Terms subject to Section
9.6(f) and as adjusted to reflect the size of the Interest to be
transferred.  In the event that none of
the Tag-Along Partners elect to participate in the Transfer described in the
Tag-Along Offer Notice, the Tag-Along Transferor shall have the right to
Transfer the portion of its Interest proposed to be Transferred to the
Tag-Along Transferee subject to the following:

 

(i)            such
Transfer shall be consummated within ninety (90) days following the Tag-Along
Notice Deadline (except as may be extended to obtain any required governmental
or regulatory approvals);

 

(ii)           such
Transfer shall be of the portion of its Interest proposed to be Transferred, to
the Tag-Along Transferee, for the price, and upon all other of the material
terms and conditions, set forth in the Tag-Along Offer Notice; and

 

(iii)          such
Transfer must in all events be made in compliance with the provisions of this
Agreement.

 

(f)            No
Tag-Along Partner shall be required to make any representation or warranty, or
enter into any agreement, in respect of the Tag-Along Transfer which has not
been made or entered into by the Tag-Along Transferor.  Notwithstanding the foregoing no Tag-Along Partner
shall be required (x) to enter into a covenant not to compete in respect to any
such transaction or (y) make any representation or warranty other than (A) as
to its authority to enter

 

29

 

into such transaction and perform its obligations in
respect thereof, the enforceability against it of all agreements in respect of
such transaction to which it is a party, and its good title to the Interests to
be transferred, free and clear of all liens, claims and encumbrances other than
those that may arise under this Agreement and (B) such representations and
warranties as to the Partnership, its Subsidiaries and their respective
businesses, assets and liabilities made by the Tag-Along Transferor so long as
such Tag-Along Partner’s liability in respect of the representations and
warranties described in this clause (B) does not exceed the consideration
received by such Partner in such transaction. 
In the case of any indemnity required in respect of any breach of representation
or warranty described in clause (y)(B) of the immediately preceding sentence,
the consideration received by all Partners shall be recomputed on the basis
that the aggregate consideration paid in such transaction was reduced by all
such indemnity payments.

 

(g)           At
the closing of the Transfer of Interests to any Tag-Along Transferee (the date
of which the Tag-Along Transferor shall give each participating Tag-Along
Partner at least five (5) Business Days’ prior written notice), the Tag-Along
Transferee shall remit to each such Partner the consideration for the total
sales price of the Interest of such Partners sold pursuant hereto, against
delivery by such Partners of such evidences of ownership of the Partners’
Interest as may be reasonably requested by the Tag-Along Transferee, and the
compliance by such Partners with any other conditions to closing generally
applicable to the Tag-Along Transferor and all participating Tag-Along
Partners.

 

(h)           Notwithstanding
the foregoing, the provisions of this Section 9.6 shall terminate, and
be of no further force and effect, upon any Equity Event.

 

Section 9.7.            Bring-Along
Rights.  Subject to compliance with Section
9.5 (if applicable), if, at any time subsequent to the third anniversary of
the Closing Date, any Limited Partner or any group of holders of Interests
acting together or pursuant to a common plan or arrangement (in either case, a “Control
Holder”) proposes, to effect a Transfer of an Interest or Interests
representing a majority of the Limited Partners’ Interests (a “Control Sale”)
to a third-party that is not an Affiliate of the Control Holder (a “Control
Purchaser”), such Control Holder shall have the right (a “Bring-Along
Right”), exercisable upon ten Business Days’ prior written notice to the other
Limited Partners and the General Partner (each, a “Minority Holder”), to
require the Minority Holders to sell their respective Interests (or the same
proportion thereof as such Control Holder proposes to sell) to such party upon
the same terms and conditions as the Control Holder exercising the Bring-Along
Right.  Each Bring-Along Notice shall
describe in reasonable detail the proposed terms of the proposed Control Sale,
including, without limitation, (i) the name and address of the Control
Purchaser, (ii) the proposed amount and form of consideration to be paid by the
Control Purchaser to the Control Holder, and (iii) any other material terms or
conditions of such proposed Control Sale, and shall include a statement to the
effect that the proposed Control Purchaser has been informed of the Bring-Along
Right.  Section 9.5 shall not
apply to sales of Interest resulting from the exercise of a Bring-Along Right
in accordance with this Section 9.7.

 

No
Minority Holder shall be required to make any representation or warranty, or
enter into any agreement, in respect of the Control Holder which has not been
made or entered into by the Control Holder. 
Notwithstanding the foregoing no Minority Holder shall be required (x)
to enter into a covenant not to compete in respect to any such transaction or
(y) make any

 

30

 

representation or warranty other than (A) as to its
authority to enter into such transaction and perform its obligations in respect
thereof, the enforceability against it of all agreements in respect of such
transaction to which it is a party, and its good title to the Interests to be
transferred, free and clear of all liens, claims and encumbrances other than
those that may arise under this Agreement and (B) such representations and
warranties as to the Partnership, its Subsidiaries and their respective
businesses, assets and liabilities made by the Control Holder so long as such
Minority Holder’s liability in respect of the representations and warranties described
in this clause (B) does not exceed the consideration received by such Partner
in such transaction.  In the case of any
indemnity required in respect of any breach of representation or warranty
described in clause (y)(B) of the immediately preceding sentence, the
consideration received by all Partners shall be recomputed on the basis that
the aggregate consideration paid in such transaction was reduced by all such
indemnity payments.

 

Section 9.8.            Consequences
of Transfers Generally.

 

(a)           In
the event of any Transfer or Transfers permitted under this Article IX,
the Transferor and the Interest in the Partnership that is the subject of such
Transfer shall remain subject to this Agreement, and the Transferee shall hold
such Interest in the Partnership subject to all unperformed obligations of the
Transferor and shall agree in writing to the foregoing if requested by the
General Partner.  Any successor or
Transferee hereunder or any successor general partner shall be subject to and
bound by this Agreement as if originally a party to this Agreement.

 

(b)           Unless
a Transferee of a Limited Partner’s Interest becomes a Substituted Limited
Partner, such Transferee shall have no right to obtain or require any
information or account of Partnership transactions, or to inspect the
Partnership’s books or to vote on Partnership matters.  Such a Transfer shall, subject to the last
sentence of Section 9.1, merely entitle the Transferee to receive the
share of distributions, Net Income, Net Loss and items of income, gain,
deduction and loss to which the transferring Limited Partner otherwise would
have been entitled.  Each Limited Partner
agrees that such Limited Partner will, upon request of the General Partner,
execute such certificates or other documents and perform such acts as the
General Partner deems appropriate after a Transfer of that Limited Partner’s
Interest in the Partnership (whether or not the Transferee becomes a
Substituted Limited Partner) to preserve the limited liability of the Limited
Partners under the laws of the jurisdictions in which the Partnership is doing
business.

 

(c)           The
Transfer of a Limited Partner’s Interest in the Partnership and the admission
of a Substituted Limited Partner shall not be cause for dissolution of the
Partnership.

 

Section 9.9.            Capital
Account.  Any Transferee of a Partner
admitted as a Partner under this Article IX shall succeed to the portion
of the Capital Account so Transferred to such Transferee.

 

Section 9.10.          Additional
Filings.  Upon the admission of a
Substituted Limited Partner under Section 9.3, the General Partner shall
cause to be executed, filed and recorded with the appropriate governmental
agencies such documents (including amendments to this Agreement) as are
required to accomplish such substitution.

 

31

 

Section 9.11.          Transfers in
a Registered Public Offering.  The
Partners agree to cooperate and take such actions and execute such documents as
are required in the event (i) the General Partner with the consent of the
Majority-in-Interest of the Limited Partners or (ii) the Majority-in-Interest
of the Limited Partners elects for any reason to “convert” the Partnership into
a corporation or limited liability company; provided that, in such
event, all of the rights, obligations, preferences, etc. of all of the Partners
and the Partnership shall be preserved within the new form unless otherwise
contemplated by this Agreement or unless deemed inappropriate in the discretion
of the General Partner with the consent of the Majority-in-Interest of the
Limited Partners by virtue of the circumstances giving rise to such “conversion.”  If the Partnership converts into a tax opaque
organization, such as a corporation, the proviso to the immediately preceding
sentence shall not be deemed to require continuation of distributions pursuant
to Sections 5.1(b) and 5.2. 
An incorporation is not an Equity Event, and the documentation of the
new form shall provide that the rights and obligations that accrue as a result
of an Equity Event shall accrue upon the occurrence of comparable events in the
new form.

 

Section 9.12.          Preemptive
Rights.

 

(a)           In
the event that the Partnership proposes to solicit additional Capital
Contributions or issue, grant or sell Interests or any securities exchangeable
or convertible into Interests (or any warrants, options or rights with respect
thereto) (collectively, “Preemptive Securities”), the Partnership shall
first give to the Original Limited Partners and Stockwell Fund, L.P.
(including, in each case, their respective Permitted Transferees, the “Preemptive
Offerees”) a notice (the “Preemptive Notice”) setting forth in
reasonable detail the aggregate amount of Preemptive Securities proposed to be
issued or sold and the price and other terms on which such Preemptive
Securities are proposed to be issued or sold and the amount of the Preemptive
Securities that can be purchased by each such Preemptive Offeree as determined
below.  Each Preemptive Offeree shall
thereafter have the preemptive right (subject to the Partnership’s right to not
accept the Preemptive Offerees’ offer to purchase the Preemptive Securities, as
described below), exercisable by notice to the Partnership no later than ten
(10) Business Days after the Preemptive Notice is given, to purchase up to the
full amount of Preemptive Securities set forth in respect of such Preemptive
Offeree in the Preemptive Notice for the price and other terms set forth in the
Preemptive Notice.  Any notice by a
Preemptive Offeree exercising its right to purchase Preemptive Securities
pursuant to this Section 9.12 shall constitute an irrevocable commitment
to purchase from the Partnership up to the amount of Preemptive Securities
specified in such notice.  The amount of
the Preemptive Securities which may be purchased by each Preemptive Offeree
hereunder shall be determined by multiplying (i) the total amount of Preemptive
Securities being offered by (ii) the fraction obtained by dividing (x) the
Percentage Interest of such Preemptive Offeree by (y) the aggregate amount of
all Percentage Interests of all Preemptive Offerees.  In the event that the aggregate amount of
Preemptive Securities specified in the notices of all Preemptive Offerees is
not sufficient to purchase all of the Preemptive Securities specified in the Preemptive
Notice, then the Partnership shall sell to the Preemptive Offerees all of the
Preemptive Securities specified in such Preemptive Offerees’ notices delivered
hereunder and sell to a third party, pursuant to paragraph (b) below, any
remaining Preemptive Securities.  If the
Preemptive Offerees exercise their preemptive rights set forth in this Section
9.12 and thereby agree to acquire all of the Preemptive Securities
specified in the Preemptive Notice, then the closing of the purchase shall take
place on the thirtieth Business Day after the

 

32

 

delivery of the Preemptive Notices referred to above,
as specified by the Partnership in a notice to the Preemptive Offerees
delivered at least two (2) Business Days prior thereto.  If the Partnership shall also issue, grant or
sell Preemptive Securities to Persons other than the Preemptive Offerees
pursuant to paragraph (b) below, then the closing of the issuance of such Preemptive
Securities to the Preemptive Offerees that have exercised their preemptive
rights hereunder shall take place at the same time as the closing of such
issuance, grant or sale to such other Persons.

 

(b)           From
the expiration of the 10 Business Day period first referred to in Section
9.12(a) and for a period of 90 days thereafter, the Partnership may offer,
issue, grant and sell to any Person other than the Preemptive Offerees, any
remaining Preemptive Securities having the terms set forth in the Preemptive
Notice relating to such Preemptive Securities for a price and other terms no
less favorable to the Partnership, and including no less cash, than those set
forth in such Preemptive Notice (without deduction for reasonable underwriting,
sales agency and similar fees payable in connection therewith); provided,
however, that the Partnership may not issue, grant or sell Preemptive
Securities in an amount greater than the amount set forth in such Preemptive
Notice.

 

(c)           No
Preemptive Securities shall be issued by the Partnership unless the Partnership
has first complied with the provisions of this Section 9.12.  This Section 9.12 shall not apply to
the issuance of Preemptive Securities pursuant to (i) any employee benefit
plan, employment contract, or any similar benefit or incentive program or agreement,
where the primary purpose of such plan, program or agreement is not to raise
funds for the Partnership, or (ii) any acquisition by the Partnership or any of
its Subsidiaries of another business entity or assets to be used in the
business of the Partnership, in each case, if approved pursuant to Section 8.3(b),
where the primary purpose of such plan, program or agreement is not to raise
funds for the Partnership.

 

(d)           If
the Partnership issues, grants or sells any Preemptive Securities in accordance
with the provision of this Section 9.12, this Agreement shall be amended
as necessary to reflect the terms of such Preemptive Securities.

 

(e)           The
preemptive rights set forth above in this Section 9.12 shall terminate
upon the occurrence of an Equity Event.

 

Section 9.13.          Required Transfers.  If (i) it shall become unlawful for any
Partner to continue to hold some or all of the Interests held by such Partner
or, (ii) by reason of legal or regulatory restrictions, continuing to hold such
Interest is reasonably expected by a Limited Partner to cause such Limited
Partner (excluding any Affiliated Limited Partner) to be subject to regulation
as a “holding company” or a “subsidiary company” or an “affiliate” of a “holding
company” or a “public utility company” under the 1935 Act or any similar state
or federal law, or as a “public utility” under the Federal Power Act, then such
Partner may, at any time following the date three Business Days after the
delivery by such Partner to each other Partner of notice of the existence of
any such restriction, subject to the provisions of Section 9.5 hereof
Transfer all or any portion of the Interests held by such Partner free of any
restrictions (other than those restrictions required by federal or state
securities laws).  In connection
therewith, the Partnership and the General Partner, shall assist such Partner
in

 

33

 

disposing
of the Interests held by it in a prompt and orderly manner, and (at the request
of such Partner) the Partnership shall make available (and authorize such
Partner to make available through the Partnership) financial and other
information concerning the Partnership, Holding Company and its Subsidiaries
(including, without limitation, the information described in Rule 144A(d)(4)
under the Securities Act) to any prospective purchaser of such Interest (it
being agreed that each such prospective purchaser shall be either an “accredited
investor” within the meaning of Rule 501(a) under the Securities Act or a “qualified
institutional buyer” within the meaning of Rule 144A(d)(1) under the Securities
Act to the extent that such Interests are “restricted securities” as such term
is defined in Rule 144 under the Securities Act.)  The Partnership may require that each such
prospective purchaser keep confidential, pursuant to customary confidentiality
requirements, any information received by it pursuant to this provision.

 

ARTICLE X

WITHDRAWAL OF PARTNERS; TERMINATION OF PARTNERSHIP;

LIQUIDATION AND DISTRIBUTION OF ASSETS

 

Section 10.1.          Withdrawal
of Partners; Removal of General Partner.

 

(a)           Except
as otherwise specifically permitted in this Agreement, no Partner shall at any
time retire or withdraw from the Partnership. 
Any Partner retiring or withdrawing in contravention of this Section
10.1 shall indemnify, defend and hold harmless the Partnership and all
other Partners from and against any losses, expenses, judgments, fines,
settlements or damages suffered or incurred by the Partnership or any other
Partner arising out of or resulting from such retirement or withdrawal.

 

(b)           The
General Partner may resign, withdraw or dissolve as such at any time after the
third anniversary of the Closing Date, following the giving of ninety (90) days
prior written notice thereof to the Limited Partners.  Notwithstanding the foregoing, no such
resignation, withdrawal or dissolution shall be effective until a successor
general partner has been appointed in accordance with paragraph (f) below and has
acknowledged its appointment as such as provided in paragraph (g) below.  In either event, upon the effective date of
such resignation, withdrawal or dissolution, the General Partner shall deliver
such records maintained by the General Partner in connection with its duties
hereunder and other information with respect to the Partnership as such
successor may reasonably request.

 

(c)           The
General Partner may be removed from the Partnership for Cause (as defined
below), upon the death or Permanent Disability (as defined below) of Lewis
Eisenberg and as otherwise specifically provided in this Section 10.1(c).  “Permanent Disability” means Lewis
Eisenberg becomes physically or mentally incapacitated and is therefore unable
for a period of three (3) consecutive months or for an aggregate of nine (9) months
in any twenty-four (24) consecutive month period, to perform his duties to
manage the General Partner and the Partnership. 
Any question as to the existence of the Permanent Disability of Lewis
Eisenberg as to which Lewis Eisenberg and the Limited Partners cannot agree
shall be determined in writing by a qualified independent physician mutually
acceptable to Lewis Eisenberg and the Limited Partners.  If Lewis Eisenberg and the Limited Partners
cannot agree as to a qualified independent

 

34

 

physician, each shall appoint such a physician and
those two physicians shall select a third who shall make such determination in
writing.  The determination of Permanent
Disability made in writing to Lewis Eisenberg and the Limited Partners shall be
final and conclusive for all purposes of this. 
“Cause” means the General Partner:

 

(i)            has
been convicted of a felony;

 

(ii)           has
committed fraud against the Partnership;

 

(iii)          has
acted or omitted to take action on behalf of the Partnership which act or
omission constitutes gross negligence or willful misconduct;

 

(iv)          has
breached any material provision of this Agreement or any of its fiduciary
duties hereunder, in any case, which has resulted in a material adverse effect
on the Partnership; provided, the General Partner has not cured such breach
within a reasonable amount of time after the Majority-in-Interest of the
Limited Partners have notified the General Partner of such breach;

 

(v)           has
commenced any proceeding or filed any petition seeking relief under Title 11 of
the United States Code, as now constituted or hereafter amended, or any other
federal or state bankruptcy, insolvency or receivership or similar law;
consented to the institution of or failed to contest in a timely and
appropriate manner any such proceeding or filing; applied for or consented to
the appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the General Partner; filed an answer admitting the
material allegations of a petition filed against it in any such proceeding;
made a general assignment for the benefit of creditors; admitted in writing its
inability or failed generally to pay its debts as they become due; or taken any
action for the purpose of effecting any of the foregoing;

 

(vi)          has
liquidated, dissolved or otherwise ceased to be in existence;

 

(vii)         has
made any Controllable Management Decision that, in the reasonable judgment of a
Majority-in-Interest of the Limited Partners, has resulted in, or will result
in, a Material Failure to achieve the business plan;

 

(viii)                        has
suffered a change in control not otherwise permitted under this Agreement; or

 

(ix)                                has
failed to comply with applicable laws.

 

The foregoing clause (vii) will not be considered as “Cause”
for any other purpose under this Agreement. 
Such removal shall be automatically effective upon a final determination
by a court of competent jurisdiction that an event or circumstance constituting
Cause has occurred or exists; provided, that any removal of the General Partner
for Cause shall be effected by a Majority-in-Interest of the Limited Partners.

 

35

 

(d)           If the
General Partner is removed from the Partnership pursuant to this Section
10.1 or otherwise withdraws or resigns as General Partner, the General
Partner shall have none of the powers of a General Partner and shall be
admitted to the Partnership as a Substituted Limited Partner, and, prior
thereto, the General Partner shall cause each nominee of the General Partner on
the board of directors of any Subsidiary of the Partnership to resign from such
board of directors.  Upon such admission
as a Substituted Limited Partner, (i) solely with respect to allocations and
distributions under this Agreement, all references to “General Partner” shall
be deemed thereafter to be references to such Substituted Limited Partner, (ii)
other than in the case of death or Permanent Disability, the Percentage
Interest of such Substituted Limited Partner will be reduced by 50%, (iii) such
Substituted Limited Partner shall no longer be entitled to any fees pursuant to
Section 8.4(c) hereof; provided, however, any amounts accrued under Section
8.4(c) prior to the date of removal shall continue to accrue and shall be
paid as promptly as practicable as and when such funds become available and
(iv) any references to Lewis Eisenberg, shall be deemed to be references to the
controlling person or managing member, if any, of the successor General
Partner.  Any allocations and
distributions to be made to the successor general partner shall be agreed upon
by the successor general partner and a Three-Fourths-in-Interest of the Limited
Partners in accordance with Section 10.2(a) hereof.  At the time the successor general partner is
elected as successor general partner, this Agreement shall be amended and
restated to reflect the allocations and distributions determined in accordance
with this Section 10.1(d).  Any
failure to so amend and restate this Agreement will in no way affect the rights
of the Substituted Limited Partner to receive the allocations and distributions
transferred to such Substituted Limited Partner hereunder.

 

(e)           All
remedies (including, without limitation, the removal of the General Partner)
provided in this Agreement are cumulative. 
This Agreement’s providing for any remedy in any circumstance shall not
be deemed to imply that such remedy is exclusive in such circumstance or is not
available in any other.

 

(f)            A
successor General Partner shall be elected by the Three-Fourths-in-Interest of
the Limited Partners, which successor General Partner shall have similar skills
and management expertise of the General Partner then removed.  Any allocations and distributions to be made
to the successor General Partner shall be agreed upon by the successor General
Partner and a Majority-in-Interest of the Limited Partners.  At the time the successor General Partner is
elected as General Partner, this Agreement shall be amended and restated to
reflect the allocations and distributions determined in accordance with this Section
10.1(f).

 

(g)           Upon
written acknowledgment by a successor general partner appointed in accordance
with the foregoing provisions of this Section 10.1 of its agreement to
serve as general partner hereunder, the General Partner shall be fully released
and relieved of all duties, responsibilities and obligations under this
Agreement which may arise after the date of the appointment of such successor
general partner, the provisions of Section 10.1(d) hereof shall apply to
the resigning or withdrawing General Partner, and, except as described in Section
10.1(d) hereof, such successor general partner shall for all purposes
hereof be the General Partner.

 

36

 

Section 10.2.          Dissolution
of Partnership.

 

(a)           The
Partnership shall be dissolved, wound up and terminated as provided herein upon
the first to occur of the following:

 

(i)                                     The
Dissolution Date;

 

(ii)                                  The
termination of the Purchase Agreement in accordance with the terms thereof;

 

(iii)                               The
sale or other disposition of all or substantially all of the Partnership’s
assets;

 

(iv)                              The
removal, withdrawal, resignation, dissolution or bankruptcy of the General
Partner (“Event of Withdrawal”); or

 

(v)                                 The
occurrence of any event that renders it unlawful to continue the business of
the Partnership.

 

provided,
however, that upon the occurrence of an Event of Withdrawal, the
remaining Partners may, by written consent of a Three-Fourths-in-Interest of
the Limited Partners (or such higher percentage as may be required under the
Limited Partnership Act at any such time), elect a successor general partner
and continue the business of the Partnership prior to application of the
liquidation provisions of this Article X, such action to be taken within
90 days after such Event of Withdrawal. 
If the Partnership is continued under this Section 10.2(a), the
successor general partner shall have the rights, powers and obligations of the
General Partner under this Agreement (excluding, however, obligations of the
General Partner to the Limited Partners occasioned by the General Partner’s
removal or wrongful resignation or withdrawal as General Partner), and shall
have such interest in the Net Income, Net Loss and items of income, gain, deduction
and loss and distributions of the Partnership as shall be agreed upon by the
successor general partner and a Three-Fourths-in-Interest of the Limited
Partners, upon execution of a written acceptance of this Agreement.  Except as otherwise required by law or as
expressly provided for herein, the Limited Partners shall have no power to
dissolve the Partnership without the consent of the General Partner; provided
that nothing herein shall be construed to limit the ability to remove the
General Partner pursuant to Section 10.1 hereof.

 

(b)           Subject
to the exception provided by Section 10.2(a), upon the dissolution of
the Partnership, the General Partner or, if an Event of Withdrawal has occurred
with respect to the General Partner, then a liquidating agent appointed by a
Majority-in-Interest of the Limited Partners (the General Partner or the
liquidating agent appointed by a Majority-in-Interest of the Limited Partners,
as the case may be, being referred to as the “Liquidator”), shall wind
up the affairs of the Partnership and liquidate the Partnership’s Assets; provided
that, notwithstanding anything in the Agreement to the contrary, the Liquidator
shall effect all liquidating distributions as promptly as practicable after the
occurrence of any event described in Section 10.2(a)(iii).  The Partners shall continue to share all Net
Income, Net Loss and items of income, gain, deduction and loss and
distributions during the period of liquidation in accordance with Articles
IV and V.  The Liquidator
shall have unlimited discretion to determine the time (not to exceed two years
or such longer time as may be approved by a vote of Three-Fourths-in-Interest
of the Limited Partners), manner and terms of any sale(s) of Partnership
Asset(s) pursuant to such

 

37

 

liquidation, giving due regard to the activity and
condition of the relevant market and general financial and economic conditions.

 

(c)           The
Liquidator shall have all of the rights and powers with respect to the assets
and liabilities of the Partnership in connection with the liquidation and
termination of the Partnership that the General Partner would have with respect
to the assets and liabilities of the Partnership during the term of the
Partnership, and the Liquidator is hereby empowered to execute any and all
documents appropriate to effectuate the liquidation and termination of the
Partnership.

 

(d)           Notwithstanding
the foregoing, a Liquidator which is not the General Partner shall not be
deemed a Partner in the Partnership and shall not have any of the economic
interests in the Partnership of a Partner, and such Liquidator shall be
compensated for its services to the Partnership at customary and competitive
rates for its services to the Partnership as reasonably determined by the
Limited Partners.

 

Section 10.3.          Distribution
in Liquidation.  The Partnership
Assets shall be applied in the following order of priority:

 

(a)           First,
to pay the costs and expenses of the winding up, liquidation and termination of
the Partnership;

 

(b)           Second,
to creditors of the Partnership, in the order of priority provided by law,
including fees and reimbursements payable to the General Partner or its
Affiliates (including, without limitation, any accrued and unpaid amounts
payable pursuant to Section 8.7), but not including those liabilities
(other than liabilities to the General Partner for any expenses of the
Partnership paid by the General Partner or its Affiliates, to the extent the
General Partner is entitled to reimbursement hereunder) to the Limited Partners
or to the General Partner in their capacity as Partners;

 

(c)           Third,
to establish reserves reasonably adequate to meet any and all contingent or
unforeseen liabilities or obligations of the Partnership, provided that at the
expiration of such period of time as the Liquidator may deem advisable, the
balance of such reserves remaining after the payment of such contingencies or
liabilities shall be distributed as hereinafter provided;

 

(d)           Fourth,
to the Partners for loans, if any, made by them to the Partnership; and,

 

(e)           Fifth,
to the Partners in accordance with Section 5.1.

 

If the Liquidator, in its sole discretion, determines
that Partnership Assets other than cash are to be distributed, then the
Liquidator shall cause the Value of the assets not so liquidated to be
determined.  Such assets shall be
retained or distributed by the Liquidator as follows:

 

(i)            The
Liquidator shall retain assets having an appraised value, net of any liability
related thereto, equal to the amount by which the net proceeds of liquidated

 

38

 

assets are insufficient to satisfy the requirements of
Subparagraphs (a), (b) and (c) of this Section 10.3;
and,

 

(ii)           The
remaining assets shall be distributed to the Partners in the manner specified
in Sections 10.3(d) and (e).

 

If the Liquidator, in its
sole discretion, deems it unfeasible or undesirable to distribute to each
Partner its allocable share of each asset, the Liquidator may allocate and
distribute specific assets to one or more Partners as the Liquidator shall
reasonably determine to be fair and equitable, taking into consideration, inter
alia, the Value of the assets and the tax consequences of the proposed
distribution upon each of the Partners (including both distributees and others
if any).  Any distributions in kind shall
be subject to such conditions relating to the disposition and management
thereof as the Liquidator deems reasonable and equitable.

 

Section 10.4.          Final Reports.  Within a reasonable time following the
completion of the liquidation of the Partnership Assets, the Liquidator shall
supply to each of the Partners a statement audited by the Accountants which
shall set forth the assets and liabilities of the Partnership as of the date of
complete liquidation and each Partner’s portion of distributions under Section 10.3.

 

Section 10.5.          Rights
of Limited Partners.  Each Limited
Partner shall look solely to the Partnership Assets for all distributions with
respect to the Partnership and such Partner’s Capital Contribution (including
return thereof), and such Partner’s share of profits or losses thereof, and
shall have no recourse therefor (upon dissolution or otherwise) against the
General Partner, any Limited Partner, the Liquidator or any of their Affiliates
(other than the Partnership).  No Partner
shall have any right to demand or receive property, other than cash, upon
dissolution and termination of the Partnership.

 

Section 10.6.          Deficit Restoration.  Notwithstanding any other provision of this
Agreement to the contrary, upon liquidation of a Partner’s Interest in the
Partnership (whether or not in connection with a liquidation of the
Partnership), no Partner shall have any liability to restore any deficit in its
Capital Account.  In addition, no
allocation to any Partner of any loss, whether attributable to depreciation or
otherwise, shall create any asset of or obligation to the Partnership, even if
such allocation reduces any Capital Account of any Partner or creates or
increases a deficit in such Capital Account. 
Also, it is the intent of the Partners that no Partner shall be
obligated to pay any such amount to or for the account of the Partnership or
any creditor of the Partnership (however, if any court of competent
jurisdiction requires any Limited Partner to return to the Partnership or to
pay to any creditor any amount previously distributed to the Limited Partner by
the Partnership, such obligation shall be the obligation of such Limited
Partner and not of the General Partner or of the Partnership and if such court
requires the General Partner to return to the Partnership or to pay to any
creditor any amount previously distributed to the General Partner by the
Partnership, such obligation shall be the obligation of the General Partner and
not of the Partnership).  The obligations
of the Partners to make Capital Contributions under Article III and
pursuant to the Subscription Agreements are for the exclusive benefit of the
Partnership and not of any creditor of the Partnership; neither is such
creditor intended as a third-party beneficiary of this Agreement nor shall any
such creditor

 

39

 

have
any rights hereunder, including, but without limitation, the right to enforce
any capital contribution obligations of the Partners.

 

Section 10.7.          Termination.  The Partnership shall terminate when all
property owned by the Partnership shall have been disposed of and the assets
shall have been distributed as provided in Section 10.3.  The Liquidator shall then execute and cause
to be filed a Certificate of Cancellation of the Partnership.

 

ARTICLE XI

ADMISSION OF ADDITIONAL LIMITED PARTNERS

 

Section 11.1.          Admission
of Additional Limited Partners.

 

(a)           Subject
to paragraph (b) of this Section 11.1, Section 8.3(b)(ii)
and Section 9.12 hereof, the General Partner, at its option and in its
sole discretion, may, on such terms as it shall determine in its sole
discretion, at any time and from time to time admit one or more Persons as
Additional Limited Partners.

 

(b)           Notwithstanding
the provisions of paragraph (a) of this Section 11.1, no Person
may be admitted as an Additional Limited Partner if such admission would cause
the Partnership to be treated as an association taxable as a corporation for
Federal income tax purposes, cause the Partnership to be treated as a “publicly
traded partnership” within the meaning of Code Section 7704, violate or cause
the Partnership to violate any applicable Federal or state law, rule or
regulation including, without limitation, the Securities Act or any other
applicable Federal or state securities laws, rules or regulations, cause the
Partnership to be an investment company required to be registered under the
Investment Company Act of 1940, as amended, cause any Limited Partner to be a “holding
company” or a “subsidiary company” or an “affiliate” of a “holding company” or
a “public utility company” under the 1935 Act or any other similar state or
federal law, or as a “public utility” under the Federal Power Act, or cause some
or all of the Partnership Assets to be “plan assets” or the trading and
investment activity of the Partnership to constitute “prohibited transactions”
under ERISA and the Code.

 

(c)           Each
Additional Limited Partner shall automatically be bound by all of the terms and
conditions of this Agreement applicable to a Limited Partner.  Each Additional Limited Partner shall execute
such documentation as may be requested by the General Partner pursuant to which
such Additional Limited Partner agrees to be bound by the terms and provisions
of this Agreement.

 

(d)           The
General Partner shall reflect each admission authorized under this Article
XI by preparing an amendment to this Agreement, dated as of the date of
such admission, including, without limitation, an amendment to Schedule A
attached hereto, to reflect such admission.

 

40

 

ARTICLE XII

NOTICES AND VOTING

 

Section 12.1.          Notices.  All notices, demands, consents or requests
required or permitted under this Agreement must be in writing and shall be made
by hand delivery, overnight courier service or telecopier (i) if to a Partner
other than the General Partner, to the address or telecopy number set forth
opposite such Partner’s name on Schedule A attached hereto and (ii) if
to the General Partner or the Partnership, to the address or telecopy number
set forth in Section 1.5; provided, however, any party may
designate a different address or telecopy number by a notice similarly given to
the Partnership.  Any such notice or
communication shall be deemed given (i) when delivered by hand, if delivered on
a Business Day, or the next Business Day after delivery by hand, if delivered
by hand on a day that is not a Business Day; (ii) on the next Business Day
after being deposited for next day delivery with Federal Express or a similar
overnight courier; (iii) when receipt is acknowledged, if telecopied on a
Business Day; and, (iv) the next Business Day following the day on which
receipt is acknowledged if telecopied on a day that is not a Business Day.

 

Section 12.2.          Voting.  Any action requiring the affirmative vote of
Limited Partners under this Agreement, unless otherwise specified herein, may
be taken by vote at a meeting or, in lieu thereof, by consent of Limited
Partners delivered to the General Partner with the required percentage in
Interest in the Partnership, following notice to all the Limited Partners.  To the extent any vote of the Limited
Partners not covered by this Agreement may be required under the Limited Partnership
Act or any other law, the Limited Partners shall vote in accordance with their
Voting Percentage.

 

Section 12.3.          Trimaran
Funds.  Any notice to, or consent or
agreement of, the portfolio manager of any of the Trimaran Funds shall be
deemed notice to, or consent or agreement of, each Trimaran Fund.

 

ARTICLE XIII

AMENDMENT OF PARTNERSHIP AGREEMENT AND POWER OF ATTORNEY

 

Section 13.1.          Amendments.  Amendments to this Agreement which do not
adversely affect the right of any Limited Partner in any material respect may
be made by the General Partner without the consent of any Limited Partner
through use of the Power of Attorney, if those amendments are for the purpose
of admitting Additional Limited Partners or Substituted Limited Partners as
permitted by this Agreement, including, without limitation, amendments to Schedule
A hereto to reflect the admission of such Additional and Substituted
Limited Partners and to reflect changes in the Capital Contributions of the
Partners.  Amendments to this Agreement other
than those described in the foregoing sentence may be made only if embodied in
an instrument signed by the General Partner and Three-Fourths-in-Interest of
the Limited Partners; provided, however, that, unless otherwise
specifically contemplated by this Agreement, no amendment to this Agreement
shall (i) without the prior consent of all Partners, change or alter this Section
13.1 or any provision requiring unanimous consent of Partners or
(ii) without the prior consent of each of the Partners adversely affected

 

41

 

thereby,
increase the liability of any Limited Partner under this Agreement, decrease
any Limited Partner’s relative interest in Net Income or items of income or
gain and distributions or increase any Limited Partner’s relative interest in
Net Loss or items of deduction or loss. 
The General Partner shall send to each Limited Partner a copy of any
amendment to this Agreement.

 

Section 13.2.          Amendment
of Certificate.  In the event this
Agreement shall be amended under Article XIII, the General Partner shall
amend the Certificate to reflect such change if it deems such amendment of the
Certificate to be necessary or appropriate.

 

Section 13.3.          Power of Attorney.  Each Limited Partner hereby irrevocably
constitutes and appoints the General Partner as its true and lawful
attorney-in-fact, with full power of substitution, in its name, place and stead
to make, execute, sign, acknowledge (including swearing to), verify, deliver,
record and file, on its behalf, the following: 
(i) any amendment to this Agreement which complies with the provisions
of this Agreement and (ii) the Certificate and any amendment thereof required
because this Agreement is amended, including, without limitation, an amendment
to effectuate any change in the membership of the Partnership or in the Capital
Contributions of the Partners.  THIS POWER-OF-ATTORNEY IS A SPECIAL POWER-OF-ATTORNEY
AND IS COUPLED WITH AN INTEREST IN FAVOR OF THE GENERAL PARTNER AND AS SUCH (I)
SHALL BE IRREVOCABLE AND CONTINUE IN FULL FORCE AND EFFECT NOTWITHSTANDING THE
SUBSEQUENT DEATH OR INCAPACITY OF ANY PARTY GRANTING THIS POWER-OF-ATTORNEY,
REGARDLESS OF WHETHER THE PARTNERSHIP OR THE GENERAL PARTNER SHALL HAVE HAD
NOTICE THEREOF; (II) MAY BE EXERCISED FOR A PARTNER BY A FACSIMILE SIGNATURE OF
THE GENERAL PARTNER OR, AFTER LISTING ALL OF THE LIMITED PARTNERS, INCLUDING
SUCH PARTNER, BY A SINGLE SIGNATURE OF THE GENERAL PARTNER ACTING AS
ATTORNEY-IN-FACT FOR ALL OF THEM; AND, (III) SHALL SURVIVE THE DELIVERY OF AN
ASSIGNMENT BY A LIMITED PARTNER OF THE WHOLE OR ANY PORTION OF ITS INTEREST IN
THE PARTNERSHIP, EXCEPT THAT WHERE THE ASSIGNEE THEREOF HAS BEEN APPROVED BY
THE GENERAL PARTNER FOR ADMISSION TO THE PARTNERSHIP AS A SUBSTITUTED LIMITED
PARTNER, THIS POWER-OF-ATTORNEY GIVEN BY THE ASSIGNOR SHALL SURVIVE THE
DELIVERY OF SUCH ASSIGNMENT FOR THE SOLE PURPOSE OF ENABLING THE GENERAL
PARTNER TO EXECUTE, ACKNOWLEDGE, AND FILE ANY INSTRUMENT NECESSARY TO EFFECT
SUCH SUBSTITUTION.

 

ARTICLE XIV

 

MISCELLANEOUS

 

Section 14.1.          Entire
Agreement.  This Agreement
constitutes the entire agreement among the parties with respect to the subject
matter hereof.  It supersedes any prior
agreement or understandings among them with respect to the subject matter
hereof, and it may not be modified or amended in any manner other than as set
forth herein.

 

42

 

Section 14.2.          Governing
Law.  This
agreement and the rights of the parties hereunder shall be governed by and
interpreted in accordance with the Limited Partnership Act and such other
substantive laws of the State of Michigan as may be applicable to contracts
made and to be performed entirely in the State of Michigan, without regard to
choice of law provisions that would apply laws other than the laws of the State
of Michigan.  To the maximum extent
practicable and unless otherwise expressly provided for herein in respect of
arbitration proceedings, this Agreement will be deemed to call for the
performance of the terms hereof in Wayne County, Michigan.

 

Section 14.3.          Effect.  Except as otherwise specified herein, this
Agreement shall be binding upon and inure to the benefit of the parties and
their legal representatives, successors and permitted assigns.

 

Section 14.4.          Pronouns
and Number.  Wherever from the
context it appears appropriate, each term stated in either the singular or the
plural shall include the singular and the plural, and pronouns stated in either
the masculine, feminine or neuter shall include the masculine, feminine and
neuter.

 

Section 14.5.          Captions.  Captions contained in this Agreement are
inserted only as a matter of convenience and in no way define, limit or extend
the scope or intent of this Agreement or any provision hereof.

 

Section 14.6.          Partial
Enforceability.  If any provision of
this Agreement, or the application of such provision to any Person or
circumstance, shall be held invalid, the remainder of this Agreement, or the
application of such provision to Persons or circumstances other than those to
which it is held invalid, shall not be affected thereby.

 

Section 14.7.          Counterparts.  This Agreement may contain more than one
counterpart of the signature page, and this Agreement may be executed by the
affixing of the signatures of each of the Partners to one of such counterpart
signature pages.  All of such counterpart
signatures pages shall be read as though one, and they shall have the same
force and effect as though all of the signers had signed a single signature
page.

 

Section 14.8.          Certain Indemnification.  Each assigning Limited Partner, Substituted
Limited Partner and each assignee of any Interest in the Partnership (or
portion thereof) shall indemnify and hold harmless the Partnership, the General
Partner, each Affiliate of the General Partner and every other Limited Partner
who was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative by reason of or arising from any actual or alleged
misrepresentation, misstatement of facts or omission to state facts made (or
omitted to be made) by such indemnifying party in connection with any Transfer
or admission of a new Partner of all or any part of any Interest in the
Partnership, against all losses, liabilities or expenses for which the
Partnership or such other Person has not otherwise been reimbursed (including
attorneys’ fees, judgments, fines and amounts paid in settlement) actually and
reasonably incurred by the indemnified party in connection with such action,
suit or proceeding; provided, however, that the foregoing
indemnification shall not be valid as to any

 

43

 

Partner
who supplied the information which gave rise to any actual material
misrepresentation, misstatement of facts or omission to state facts.

 

Section 14.9.          Waiver of
Partition.  The Partners hereby agree
that the Partnership Assets are not and will not be suitable for
partition.  Accordingly, each of the
Partners hereby irrevocably waives any and all rights (if any) that such
Partner may have to maintain any action for partition of any of such assets.

 

Section 14.10.        Waiver
of Jury.  Each of the
Partners irrevocably waives the right to a jury trial in connection with any legal
proceeding relating to this Agreement or the enforcement of any provisions of
this Agreement.

 

44

 

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

 

 

	
   

  	
  GENERAL
  PARTNER:

  
	
   

  	
   

  
	
   

  	
  IRONHILL
  TRANSMISSION, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

45

 

	
   

  	
  LIMITED
  PARTNERS:

  
	
   

  	
   

  
	
   

  	
  KKR MILLENNIUM
  FUND, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KKR ASSOCIATES
  MILLENNIUM L.P.,

  
	
   

  	
  its General
  Partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  KKR MILLENNIUM
  GP LLC, its

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KKR PARTNERS
  III, L.P. (SERIES A)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KKR ASSOCIATES
  (STRATA) L.P., its

  
	
   

  	
  General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  STRATA LLC, its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Member

  

 

46

 

	
   

  	
  LIMITED
  PARTNERS:

  
	
   

  	
   

  
	
   

  	
  TRIMARAN FUND
  II, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Trimaran Fund
  Management, L.L.C.,

  
	
   

  	
   

  	
  its investment
  advisor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  TRIMARAN
  PARALLEL FUND II, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Trimaran Fund
  Management, L.L.C.,

  
	
   

  	
   

  	
  its investment
  advisor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  TRIMARAN
  CAPITAL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Trimaran Fund
  Management, L.L.C.,

  
	
   

  	
   

  	
  its investment
  advisor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CIBC EMPLOYEE
  PRIVATE EQUITY FUND

  (TRIMARAN) PARTNERS

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Trimaran Fund
  Management, L.L.C.,

  
	
   

  	
   

  	
  its investment
  advisor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CIBC MB INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Trimaran Fund
  Management, L.L.C.,

  
	
   

  	
   

  	
  its investment
  advisor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

47

 

	
   

  	
  LIMITED
  PARTNERS:

  
	
   

  	
   

  
	
   

  	
  STOCKWELL FUND,
  L.P.

  

 

	
   

  	
   

  
	
   

  	
  By:

  	
  Stockwell
  Managers, LLC, its general partner

  
	
   

  	
   

  

 

	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

48

 

SCHEDULE A

TO PARTNERSHIP

AGREEMENT

 

Names, Addresses and Initial Capital Contributions of Partners

 

	
   

  	
   

  	
  Initial Capital

  Contribution

  	
   

  	
  Percentage

  Interest

  	
   

  
	
  General
  Partner

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ironhill Transmission, LLC

  c/o Dykema Gossett PLLC

  124 West Allegan, Ste. 800

  Lansing, Michigan 48933

  Attn: Albert Ernst

  	
   

  	
  $

  	
  500,000

  	
   

  	
  0.450390

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Limited Partners

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KKR Millennium Fund L.P.

  9 West 57th Street

  New York, NY 10019

  	
   

  	
  $

  	
  145,683,181

  	
   

  	
  65.614322

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KKR Partners III, L.P.

  9 West 57th Street

  New York, NY 10019

  	
   

  	
  $

  	
  5,537,500

  	
   

  	
  2.494037

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trimaran Fund II, L.L.C.

  c/o Trimaran Fund Management, L.L.C., its

  portfolio manager

  425 Lexington Avenue

  New York, New York 10017

  	
   

  	
  $

  	
  23,770,789

  	
   

  	
  10.706138

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trimaran Parallel Fund II, L.P.

  c/o Trimaran Fund Management, L.L.C., its

  portfolio manager

  425 Lexington Avenue

  New York, New York 10017

  	
   

  	
  $

  	
  9,354,058

  	
   

  	
  4.212979

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trimaran Capital, L.L.C.

  c/o Trimaran Fund Management, L.L.C., its

  portfolio manager

  425 Lexington Avenue

  New York, New York 10017

  	
   

  	
  $

  	
  1,434,544

  	
   

  	
  0.646105

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CIBC Employee Private Equity Fund

  (Trimaran) Partners

  c/o Trimaran Fund Management, L.L.C., its

  portfolio manager

  425 Lexington Avenue

  New York, New York 10017

  	
   

  	
  $

  	
  14,466,699

  	
   

  	
  6.515664

  	
  %

  

 

 

	
  CIBC MB Inc.

  c/o Trimaran Fund Management, L.L.C., its

  portfolio manager

  425 Lexington Avenue

  New York, New York 10017

  	
   

  	
  $

  	
  15,782,773

  	
   

  	
  7.108411

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stockwell Fund, L.P.

  222 W. Adams Street

  Suite 1000

  Chicago, IL 60606

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  2.251953

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Capital Contributions

  	
   

  	
  $

  	
  221,529,544

  	
   

  	
  100.00000

  	
  %

  

 

2

 

EXHIBIT A

TO PARTNERSHIP

AGREEMENT

 

Form of Instrument of Transfer

 

The
undersigned,                           (the
“Assignor”), hereby assigns to                           
(the “Assignee”) all [OR DESCRIBE APPROPRIATE PORTION] of its right,
title and interest in and to International Transmission Holdings Limited
Partnership, a Michigan limited partnership (the “Partnership”), and
directs that all future distributions of cash and property and allocations of
income, gain, loss, deduction and credit on account of said Interest be paid or
allocated to the Assignee [OR DESCRIBE APPROPRIATE PORTION].  THIS ASSIGNMENT SHALL BECOME EFFECTIVE (and
the Assignee entitled to distributions) ONLY UPON ACTUAL ACCEPTANCE OF THIS
ASSIGNMENT BY THE GENERAL PARTNER OF THE PARTNERSHIP (the “General Partner”).

 

The
Assignee represents and warrants to the Assignor and the Partnership under Article
IX of the Agreement of Limited Partnership of the Partnership (the “Partnership
Agreement”) that the following statements are true:

 

(i)            The
Assignee has thoroughly read and understands the Partnership Agreement;

 

(ii)           The
Assignee is experienced in investment and business matters;

 

(iii)          The
Assignee has read the text of Rule 501(a)(1)-(8) of Regulation D under the
Securities Act of 1933, as amended, and confirms that it is an “accredited
investor” as described thereby;

 

(iv)          The
Assignee is acquiring its Interest in the Partnership for its own account for
investment purposes and not with a view to or for resale, distribution or other
disposition, and has no present plans to enter into any contract, undertaking,
agreement or arrangement for any such resale, distribution or other
disposition;

 

(v)           The
Assignee understands that the limited partnership interests in the Partnership
are not registered under the Act in reliance on the representations and
warranties contained herein;

 

(vi)          The
Assignee recognizes that the Partnership is a speculative venture and the
Interests are speculative investments which involve a high degree of risk;

 

(vii)         The
Assignee understands that various conflicts of interest arise out of the
transactions between the Partnership, the Limited Partners and the General
Partner and their respective affiliates;

 

(viii)        The
Assignee understands that the transferability of the assigned interest in the
Partnership is restricted under the provisions of the Agreement and that the
Assignee

 

3

 

cannot expect to be able to liquidate the assigned
interest in the Partnership readily in case of emergency;

 

(ix)           Unless
otherwise indicated in this Instrument of Transfer, that the Assignee is the
sole party in interest in the assigned interest and, as such, is vested with
all legal and equitable rights in such interest;

 

(x)            The
Assignee has not relied on the General Partner or any of its Affiliates or
advisors in connection with any state, Federal or local income or other tax
matter related to the Partnership or the Partnership Agreement and that such
Assignee has looked solely to its own counsel and other advisors in connection
with all such matters, including, without limitation, the characterization of
the Partnership as a partnership for tax purposes and the allocations of
income, gain, profits and losses under the Partnership Agreement;

 

(xi)           The
address set forth on the signature page hereof is the Assignee’s true and
correct principal place of business and is the only jurisdiction in which an
offer to sell the Interests was made to the Assignee and the Assignee has no
present intention of moving its principal place of business to any other state
or jurisdiction;

 

(xii)  (a)  By
checking below, the Assignee has indicated whether or not it is, or is acting
on behalf of, a “benefit plan investor”, as defined in 29 C.F.R. §
2510.3-101.  The Assignee acknowledges
that (A) a benefit plan investor includes (x) an “employee benefit plan” within
the meaning of Section 3(3) of the U.S. Employee Retirement Income Security Act
of 1974, as amended (“ERISA“), whether or not such plan is subject to ERISA,
or (y) a plan or arrangement subject to Section 4975 of the Code or (iii) an
entity which is deemed to hold the assets of any such employee benefit plan,
plan or arrangement described in (x) or (y) above pursuant to 29 C.F.R. §
2510.3-101 or otherwise, (B) a plan which is maintained by a foreign
corporation, governmental entity or church, a Keogh plan covering no common-law
employees and an individual retirement account would each be a benefit plan investor
for this purpose, even though they are generally not subject to ERISA and (C) a
foreign or U.S. entity which is not an operating company and which is not
publicly traded or registered as an investment company under the Investment
Company Act of 1940, as amended, and in which 25% or more of the value of any
class of equity interests is held by benefit plan investors, would be deemed to
hold the assets of one or more employee benefit plans pursuant to 29 C.F.R.
2510.3-101.  The Assignee further
understands that for purposes of determining whether this 25% threshold has
been met or exceeded, the value of any equity interests held by a person (other
than a benefit plan investor) who has discretionary authority or control with
respect to the assets of the entity, or any person who provides investment
advice for a fee (direct or indirect) with respect to such assets, or any
affiliate of such a person, is disregarded:

 

o  Yes    o  No

 

2

 

(b)           By
checking below, the Assignee has indicated whether it is, or is acting on
behalf of, such an employee benefit plan, plan or arrangement described in the
preceding question, or is an entity deemed to hold the assets of any such
employee benefit plan, plan or arrangement that is subject to ERISA and/or
Section 4975 of the Code”

 

o   Yes    o  No

 

(c)           By
checking below, the Assignee has indicated whether it is an insurance company
using assets of its general account?

 

o   Yes    o  No

 

If the answer to the
above question is yes, please indicate the percentage of the general account
that is attributable to benefit plan investors subject to ERISA and/or Section
4975 of the Code:             %;
and

 

(xiii)         The
Assignee is not a “public utility company”, a “holding company”, a “subsidiary
company” of a “holding company”, or an “affiliate” of a “holding company” or of
a “subsidiary company”, as such terms are defined in the Public Utility Holding
Company Act of 1935, as amended, or a “public utility” as such term is defined
in the Federal Power Act.

 

3

 

The
Assignee hereby assumes all of the obligations of the Assignor under the
Partnership Agreement relating to the Assignor’s interest in the Partnership.

 

                                     ,
as Assignee, hereby accepts said Interest subject to all terms, covenants and
conditions of the Partnership Agreement, as amended from time to time and
hereby agrees to be bound by all of the terms and provisions thereof.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Assignor

  
	
   

  
	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Assignor

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Assignee’s
  Address

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Assignee’s
  Address

  

 

4

 

	
  STATE OF

  	
  )

  	
   

  
	
   

  	
   

  	
  :ss.:

  
	
  COUNTY OF

  	
  )

  	
   

  

 

On
this        day of                       ,
        , before me, a notary public,
personally appeared                           and
                          ,
known to me to be the persons described in, and who signed and swore to, the
foregoing instrument and duly acknowledged to me that they executed the same.

 

	
   

  	
  My commission
  expires: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
   

  
	
   

  	
  Notary Public

  
					

 

 

Assignment Accepted
(check one)

 

 

	
  Substituted
  Limited Partner

  	
  o

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Assignee of
  Interest

  	
  o

  	
   

  

 

 

International
Transmission Holdings Limited Partnership,

a Michigan limited partnership

 

	
  By:

  	
  Ironhill Transmission,
  L.L.C.,

  
	
   

  	
  as general
  partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

5Exhibit 10.27

 

The
CORPORATEplan for RetirementSM

EXECUTIVE PLAN

 

Adoption
Agreement

 

IMPORTANT
NOTE

 

This
document has not been approved by the Department of Labor, the Internal Revenue
Service or any other governmental entity. 
An Adopting Employer must determine whether the plan is subject to the
Federal securities laws and the securities laws of the various states.  An Adopting Employer may not rely on this
document to ensure any particular tax consequences or to ensure that the Plan
is “unfunded and maintained primarily for the purpose of providing deferred
compensation to a select group of management or highly compensated employees”
under the Employee Retirement Income Security Act with respect to the Employer’s
particular situation.  Fidelity Management
Trust Company, its affiliates and employees cannot provide you with legal
advice in connection with the execution of this document.  This document should be reviewed by the
Employer’s attorney prior to execution.

 

 

ADOPTION
AGREEMENT

ARTICLE 1

 

1.01                        PLAN
INFORMATION

 

(a)                                 Name of Plan:

 

This is the International
Transmission Company Executive Deferred Compensation Plan  (the “Plan”).

 

(b)                                 Name of Plan Administrator, if not
the Employer:

 

Address:

 

Phone Number:

 

The Plan
Administrator is the agent for service of legal process for the Plan.

 

(c)                                  Plan Year End is December 31.

 

(d)                                 Plan Status (check
one):

 

	
  (1)

  	
  ý

  	
  Effective Date of new Plan: 1/1/2004

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  o

  	
  Amendment Effective
  Date:                 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The original effective date of the
  Plan:                  

  

 

1.02                        EMPLOYER

 

	
  (a)                                 The Employer is:

  	
   

  	
  International Transmission Company

  

 

	
  Address:

  	
   

  	
  39500 Orchard Hill Place

  Suite 200

  
	
   

  	
   

  	
  Novi, MI 48375

  
	
  Contact’s Name:

  	
   

  	
  Ms. Chris Kujawa

  
	
  Telephone Number:

  	
   

  	
  (248) 374-7252

  

 

(1)                                  Employer’s
Tax Identification Number:   81-0596181

(2)                                  Business
form of Employer (check one):

 

	
  (A)

  	
  ý

  	
  Corporation (Other than a Subchapter S
  corporation)

  
	
  (B)

  	
  o

  	
  Other (e.g., Subchapter S corporation,
  partnership, sole proprietor)

  

 

(3)                                  Employer’s
fiscal year end:  12/31

 

1

 

(b)                                 The
term “Employer” includes the following Related Employer(s)

(as defined in Section 2.01(a)(24)):

 

ITC Holdings Corp.

 

1.03                        COVERAGE

 

(a)                                 The following Employees are eligible to participate
in the Plan:

 

	
  (1)

  	
  ý

  	
  Only those Employees listed in Attachment A
  will be eligible to participate in the Plan.

  
	
  (2)

  	
  o

  	
  Only those Employees in the eligible class
  described below will be eligible to participate in the Plan:

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  o

  	
  Only those Employees described in the Board
  of Directors Resolutions attached hereto and hereby made a part hereof will
  be eligible to participate in the Plan.

  

 

(b)                                 The
Entry Date(s) shall be (check one):

	
  (1)

  	
   ̈

  	
  each January 1.

  
	
   

  	
   

  	
   

  
	
  (2)

  	
   ̈

  	
  each January 1
  and each July 1.

  
	
   

  	
   

  	
   

  
	
  (3)

  	
   ̈

  	
  each January 1
  and each April 1, July 1 and October 1.

  
	
   

  	
   

  	
   

  
	
  (4)

  	
   ̈

  	
  the first day
  of each month.

  
	
   

  	
   

  	
   

  
	
  (5)

  	
  ý

  	
  immediate upon
  meeting the eligibility requirements specified in Subsection 1.03(a).

  

 

1.04                        COMPENSATION

 

For
purposes of determining Contributions under the Plan, Compensation shall be as
defined (check (a) or (b) below, as appropriate):

	
   

  	
  (a)  ý

  	
  in Section 2.01(a)(8),
  (check (1) or (2) below, if and as
  appropriate)):

  
	 
	
  (1)

  	
  o

  	
  but excluding (check the appropriate
  box(es)):

  	 

							

 

	
  (A)

  	
   ̈

  	
  Overtime Pay.

  
	
   

  	
   

  	
   

  
	
  (B)

  	
   ̈

  	
  Bonuses.

  
	
   

  	
   

  	
   

  
	
  (C)

  	
   ̈

  	
  Commissions.

  
	
   

  	
   

  	
   

  
	
  (D)

  	
   ̈

  	
  The value of a qualified or a non-qualified
  stock option granted to an Employee by the Employer to the extent such value
  is includable in the Employee’s taxable income.

  
	
  (E)

  	
   ̈

  	
  The following:

  

 

	
  (2)

  	
  o

  	
  except as otherwise provided below:

  

 

2

 

 

(b)   ̈                                                   in the                      Plan
maintained by the Employer to the extent it is in excess of the limit imposed
under Code Section 401(a)(17).

 

1.05                       CONTRIBUTIONS

 

(a)                     Employee
contributions (Complete all that apply)

(1)               ý                              Deferral
Contributions.  The Employer shall make a
Deferral Contribution in accordance with, and subject to, Section 4.01 on
behalf of each Participant who has an executed salary reduction agreement in
effect with the Employer for the calendar year (or portion of the calendar
year) in question, not to exceed 100 % of Compensation, exclusive of any
Bonus.

 

(2)               ý                              Bonus
Contributions.  The Employer requires
Participants to enter into a special salary reduction agreement to make Deferral
Contributions of any percentage of Employer paid cash Bonuses, up to 100% of
such Bonuses.  (The Compensation
definition elected by the Employer in Section 1.04 must include Bonuses if
Bonus contributions are permitted.)

 

(b)   ̈                                                  Matching Contributions (Choose (1) or
(2) below, and (3) below, as applicable.)

(1)                ̈                              The
Employer shall make a Matching Contribution on behalf of each Participant in an
amount equal to the following percentage of a Participant’s Deferral
Contributions during the Plan Year (check one):

	
  (A)

  	
  o

  	
  50%

  
	
  (B)

  	
   ̈

  	
  100%

  
	
  (C)

  	
   ̈

  	
            %

  
	
  (D)

  	
   ̈

  	
  (Tiered Match)         %
  of the first          % of
  the Participant’s Compensation contributed to the Plan.

  
	
   

  	
   

  	
   

  
	
  (E)

  	
   ̈

  	
  The percentage declared for the year, if
  any, by a Board of Directors’ resolution.

  
	
  (F)

  	
   ̈

  	
  Other:

  

 

(2)                ̈                              Matching
Contribution Offset.  For each
Participant who has made 401(k) Deferrals at least equal to the maximum under
Code Section 402(g) or, if less, the maximum permitted under the
Qualified Plan, the Employer shall make a Matching Contribution for the
calendar year equal to (A) minus (B) below:

 

(A)            The 401(m) Match
that the Participant would have received under the Qualified Plan for such
calendar year on the sum of the Participant’s Deferral Contributions and the
Participant’s 401(k) Deferrals if no limits otherwise imposed by tax law
applied to 401(m) Match and deeming the Participant’s Deferral Contributions to
be 401(k) Deferrals.

 

(B)            The 401(m) Match
actually allocated to such Participant under the Qualified Plan for the calendar
year.

 

For purposes of this Section 1.05(b): “Qualified
Plan” means the Plan; “401(k) Deferrals” means contributions under the
Qualified Plan’s cash or deferred

 

3

 

arrangement
as defined in Code Section 401(k); and “401(m) Match” means a matching
contribution as defined in Code Section 401(m).

 

(3)                ̈                                                     Matching
Contribution Limits (check the appropriate box(es)):

 

	
  (A)

  	
  o

  	
  Deferral Contributions in excess of
            % of  the Participant’s
  Compensation for the period in question shall not be considered for Matching
  Contributions.

  

 

Note:            If the Employer elects
a percentage limit in (A) above and requests the Trustee to account
separately for matched and unmatched Deferral Contributions, the Matching
Contributions allocated to each Participant must be computed, and the
percentage limit applied, based upon each period.

 

	
  (B)

  	
  o

  	
  Matching Contributions for each Participant
  for each Plan Year shall be limited to $.        

  

 

(4)                                                                                  Eligibility
Requirement(s) for Matching Contributions. 
A Participant who makes Deferral Contributions during the Plan Year
under Section 1.05(a) shall be entitled to Matching Contributions for
that Plan Year if the Participant satisfies the following requirement(s) (Check
the appropriate box(es).  Options (B) and (C) may not be
elected together):

 

	
  (A)

  	
   ̈

  	
  Is employed by the Employer on the last day
  of the Plan Year.

  
	
   

  	
   

  	
   

  
	
  (B)

  	
   ̈

  	
  Earns at least 500 Hours of Service during
  the Plan Year.

  
	
   

  	
   

  	
   

  
	
  (C)

  	
   ̈

  	
  Earns at least 1,000 Hours of Service
  during the Plan Year.

  
	
   

  	
   

  	
   

  
	
  (D)

  	
   ̈

  	
  Other:      

  
	
   

  	
   

  	
   

  
	
  (E)

  	
   ̈

  	
  No requirements.

  

 

Note:                   If option
(A), (B) or (C) above is selected, then Matching Contributions can
only be made by the Employer after the Plan Year ends.  Any Matching Contribution made before Plan
Year end shall not be subject to the eligibility requirements of this Section 1.05(b)(3)).

 

(c)                                                                     Employer
Contributions

(1)     ý                                                       Fixed
Employer Contributions.  The Employer
shall make an Employer Contribution on behalf of each Participant in an amount
determined as described below (check at least one):

 

	
  (A)

  	
   ̈

  	
  In an amount equal to       %
  of each Participant’s Compensation each Plan Year.

  
	
   

  	
   

  	
   

  
	
  (B)

  	
  ý

  	
  In an amount determined and allocated as
  described below:

  
	
   

  	
   

  	
  Amendment

  
	
   

  	
   

  	
   

  
	
  (C)

  	
   ̈

  	
  In an amount equal to (check at least one):

  

 

4

 

(i.)    ̈          Any
profit sharing contribution that the Employer would have made on behalf of the
Participant under the following qualified defined contribution plan but for the
limitations imposed by Code Section 401(a)(17):

 

(ii.)   ̈          Any
contribution described in Code Section 401(m) that the Employer would have
made on behalf of the Participant under the following qualified defined
contribution plan but for the limitations imposed by Code Section 401(a)(17):

 

(2)            ̈            Discretionary
Employer Contributions.  The Employer may make Employer
Contributions to the accounts of Participants in any amount, as determined by
the Employer in its sole discretion from time to time, which amount may be
zero.

 

(3)                                                                                 Eligibility
Requirement(s) for Employer Contributions. 
A Participant shall only be entitled to Employer Contributions under Section 1.05(c)(1) for a Plan Year if the Participant satisfies the
following requirement(s) (Check the appropriate box(es).  Options (B) and (C) may not be
elected together):

 

	
  (A)

  	
   ̈

  	
  Is employed by the Employer on the last day
  of the Plan Year.

  
	
   

  	
   

  	
   

  
	
  (B)

  	
   ̈

  	
  Earns at least 500 Hours of Service during
  the Plan Year.

  
	
   

  	
   

  	
   

  
	
  (C)

  	
   ̈

  	
  Earns at least 1,000 Hours of Service
  during the Plan Year.

  
	
   

  	
   

  	
   

  
	
  (D)

  	
   ̈

  	
  Other:        

  
	
   

  	
   

  	
   

  
	
  (E)

  	
  ý

  	
  No requirements.

  

 

1.06                        DISTRIBUTION
DATES

 

Distribution from a Participant’s Account
pursuant to Section 8.02 shall begin upon the following date(s) (check
either (a) or (b); check (c), if desired):

 

(a) ý                                                     Non-Class Year Accounting
(complete (1) and (2)).

 

(1)             The
earliest of termination of employment with the Employer (see Plan Section 7.03)
and the following event(s) (check appropriate box(es);
if none selected, all distributions will be upon termination of employment):

	
  (A)

  	
  ý

  	
  Attainment of Normal Retirement Age (as defined in Section 1.07(f)).

  
	
   

  	
   

  	
   

  
	
  (B)

  	
   ̈

  	
  Attainment of Early Retirement Age (as
  defined in Section 1.07(g)).

  
	
   

  	
   

  	
   

  
	
  (C)

  	
  ý

  	
  The date on which the Participant becomes
  disabled (as defined in Section 1.07(h)).

  

 

5

 

(2)  Timing
of distribution (check either (A) or (B)).

 

(A)  ̈                                                    The
distribution of the Participant’s Account will be begin in the month following
the event described in (a)(1) above, however, if the event is termination
of employment, then such distribution will begin as soon as practicable on or
after the 1st day of the seventh calendar month following such separation if
the Participant was a Key Employee.

 

(B) ý                                                    The
distribution of the Participant’s Account will begin as soon as
administratively feasible in the calendar year following distribution event
described in (a)(1) above, provided however, that
if the event is termination of employment, in no event will such distribution
begin earlier than the 1st day of the seventh calendar month following such
separation if the Participant was a Key Employee.

 

(b)  ̈                                                     Class Year Accounting (complete (1) and (2)).

 

(1)      Upon
(check at least one; (A) must be selected if plan has contributions
pursuant to section 1.05(b) or (c)):

 

(A)  ̈                     Termination of employment
with the Employer (see Plan Section 7.03); provided however, that if the
event is termination of employment, in no event will such distribution begin
earlier than the 1st day of the seventh calendar month following such separation
if the Participant was a Key Employee.

 

(B)  ̈                     The date elected by the
Participant, pursuant to Plan Section 8.02, and subject to the
restrictions imposed in Plan Section 8.02 with respect to future Deferral Contributions, in which event such
date of distribution must be at least one year after the date such Deferral
Contribution would have been paid to the Participant in cash in the absence of
the election to make the Deferral Contribution.

 

(2)      Timing
of distribution subject to Subsection (b)(1)(A) above
(check either (A) or (B)).

 

(A)  ̈                                                                The
Distribution of the Participant’s Account will begin         
(specify month and day) following the event described in (b)(1) above.

 

(B)  ̈                                                                The
Distribution of the Participant’s Account will begin        
(specify month and day) of the calendar year following the event described in
(b)(1) above.

 

(c)  ̈                  Upon a Change of Control in accordance with Plan Section 7.08.

 

6

 

Note: 
Internal Revenue Code Section 280G could impose certain, adverse
tax consequences on both Participants and the Employer as a result of the
application of this Section 1.06(c). 
The Employer should consult with its attorney prior to electing to apply
Section 1. 06(c).

 

1.07                        VESTING
SCHEDULE

 

(a)               The
Participant’s vested percentage in Matching Contributions elected in Section 1.05(b) shall
be based upon the schedule(s) selected below.

	
  (1)

  	
  ý N/A - No Matching Contributions

  
	
  (2)

  	
   ̈ 100% Vesting immediately

  
	
  (3)

  	
   ̈ 3 year cliff (see C below)

  
	
  (4)

  	
   ̈ 5 year cliff (see D below)

  
	
  (5)

  	
   ̈ 6 year graduated (see E below)

  
	
  (6)

  	
   ̈ 7 year graduated (see F below)

  
	
  (7)

  	
   ̈  G
  below

  
	
  (8)

  	
   ̈ Other (Attachment “B”)

  

 

	
  Years of

  Service for

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Vesting Schedule

  	
   

  	
   

  	
   

  
	
  Vesting

  	
   

  	
  C

  	
   

  	
  D

  	
   

  	
  E

  	
   

  	
  F

  	
   

  	
  G

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  1

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  2

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  20

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  3

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  40

  	
  %

  	
  20

  	
  %

  	
   

  	
   

  
	
  4

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  60

  	
  %

  	
  40

  	
  %

  	
   

  	
   

  
	
  5

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
  60

  	
  %

  	
   

  	
   

  
	
  6

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
   

  	
   

  
	
  7

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  

 

(b)               The
Participant’s vested percentage in Employer Contributions elected in Section 1.05(c) shall
be based upon the schedule(s) selected below.

 

	
  (1)

  	
   ̈

  	
  N/A - No Employer Contributions

  
	
  (2)

  	
  ý

  	
  100% Vesting immediately

  
	
  (3)

  	
   ̈

  	
  3 year cliff (see C below)

  
	
  (4)

  	
   ̈

  	
  5 year cliff (see D below)

  
	
  (5)

  	
   ̈

  	
  6 year graduated (see E below)

  
	
  (6)

  	
   ̈

  	
  7 year graduated (see F below)

  
	
  (7)

  	
   ̈

  	
  G below

  
	
  (8)

  	
   ̈

  	
  Other (Attachment “B”)

  

 

7

 

	
  Years of

  Service for

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Vesting Schedule

  	
   

  	
   

  	
   

  
	
  Vesting

  	
   

  	
  C

  	
   

  	
  D

  	
   

  	
  E

  	
   

  	
  F

  	
   

  	
  G

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  1

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  2

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  20

  	
  %

  	
  0

  	
  %

  	
   

  	
   

  
	
  3

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  40

  	
  %

  	
  20

  	
  %

  	
   

  	
   

  
	
  4

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  	
  60

  	
  %

  	
  40

  	
  %

  	
   

  	
   

  
	
  5

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
  60

  	
  %

  	
   

  	
   

  
	
  6

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  80

  	
  %

  	
   

  	
   

  
	
  7

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  

 

(c)   ̈                Years
of Service for Vesting shall exclude (check one):

	
  (1)

  	
   

  	
   ̈

  	
   

  	
  for new plans,
  service prior to the Effective Date as defined in Section 1.01(d)(1).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
   ̈

  	
   

  	
  for existing plans converting from another
  plan document, service prior to the original Effective Date as defined in Section 1.01(d)(2).

  

 

(d)    ̈               A Participant will forfeit his
Matching Contributions and Employer Contributions upon the occurrence of the
following event (s):

 

(e)                                  A
Participant will be 100% vested in his Matching Contributions and Employer
Contributions upon (check the appropriate box(es), if
any; if 1.06(c) is selected, Participants will automatically vest upon
Change of Control as defined in Section 1.12):

 

	
  (1)

  	
   

  	
   ̈

  	
   

  	
  Normal Retirement Age (as defined in Section 1.07(f)).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
   ̈

  	
   

  	
  Early Retirement Age (as defined in Section 1.07(g)).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
   ̈

  	
   

  	
  Death.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
   ̈

  	
   

  	
  The date on which the Participant becomes
  disabled, as determined under Section 1.07(h) of the Plan.

  

 

(f)                                    Normal
Retirement Age  under
the Plan is  (check one):

 

	
  (1)

  	
   

  	
  ý

  	
   

  	
  age 65.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
   ̈

  	
   

  	
  age      (specify
  from 55 through 64).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
   ̈

  	
   

  	
  the later of
  age            (cannot
  exceed 65) or the fifth anniversary of the Participant’s Commencement Date.

  

 

If no box is
checked in this Section 1.07(f), then Normal Retirement Age is 65.

 

8

 

(g)   ̈               Early
Retirement Age is the first day of the month after the Participant attains age            (specify 55 or greater) and
completes           Years of Service for Vesting.

 

(h) 
ý               A
Participant is considered disabled when that Participant (check one):

 

	
  (1)

  	
   

  	
   ̈

  	
   

  	
  is unable to
  engage in any substantial gainful activity by reason of any medically
  determinable physical or mental impairment which can be expected to result in
  death or can be expected to last for a continuous period of not less than 12
  months.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
   ̈

  	
   

  	
  is, by reason
  of any medically determinable physical or mental impairment which can be
  expected to result in death or can be expected to last for a continuous
  period of not less than 12 months, receiving income replacement benefits for
  a period of not less than 3 months under an accident and health plan covering
  employees of the Employer.

  

 

1.08                        PREDECESSOR
EMPLOYER SERVICE

 

 ̈                                                          Service for purposes of vesting in Section 1.07(a) and
(b) shall include service with the following employer(s):

 

1.09                        UNFORESEEABLE
EMERGENCY WITHDRAWALS

 

Participant
withdrawals for unforeseeable emergency prior to termination of employment
(check one):

	
  (a)

  	
   

  	
  ý

  	
   

  	
  will be allowed in accordance with Section 7.07,
  subject to a $10,000 minimum amount. (Must be at least $1,000)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
   ̈

  	
   

  	
  will not be allowed.

  

 

1.10                        DISTRIBUTIONS

 

Subject
to Articles 7 and 8 distributions under the Plan are always available as a lump
sum.  Check below to allow distributions
in installment payments:

 

	
  ý

  	
   

  	
  under a systematic
  withdrawal plan (installments) not to exceed 10 years which (check one if box
  for this Section is selected):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
   ̈

  	
   

  	
  will not be accelerated, regardless of the Participant’s
  Account balance.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
   ̈

  	
   

  	
  will be accelerated to a lump sum distribution in
  accordance with Section 8.03.

  

 

1.11                        INVESTMENT
DECISIONS

 

(a)                    Investment Directions

Investments in which the Accounts of
Participants shall be treated as invested and reinvested shall be directed
(check one):

 

	
  (1)

  	
   

  	
   ̈

  	
   

  	
  by the Employer
  among the options listed in (b) below.

  

 

9

 

	
  (2)

  	
   

  	
  ý

  	
   

  	
  by each Participant
  among the options listed in (b) below.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
   ̈                          in
  accordance with investment directions provided by each Participant for all
  contribution sources in a Participant’s Account except the following sources
  shall be invested as directed by the Employer (check (A) and/or (B)):

  

 

	
  (A)

  	
   ̈

  	
   

  	
  Nonelective Employer Contributions

  
	
   

  	
   

  	
   

  	
   

  
	
  (B)

  	
   ̈

  	
   

  	
  Matching Employer Contributions

  

 

The Employer must direct the applicable
sources among the same investment options made available for Participant
directed sources listed in the Service Agreement.

 

(b)                                 Plan
Investment Options

Participant Accounts will be treated as
invested among the Investment Funds listed in the Service Agreement from time
to time pursuant to Participant and/or Employer directions, as applicable.

 

Note:  The method and frequency for change of
investments will be determined under the rules applicable to the selected
funds.  Information will be provided
regarding expenses, if any, for changes in investment options.

 

1.12                        RELIANCE
ON PLAN 

 

An adopting Employer may not rely solely on
this Plan to ensure that the Plan is “unfunded and maintained primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees” with respect to the Employer’s particular
situation.  This Agreement must be
reviewed by the 
Employer’s attorney before it is executed.

 

This Adoption Agreement may be used only in
conjunction with the CORPORATEplan for Retirement Executive Plan Basic Plan
Document.

 

10

 

EXECUTION
PAGE

(Fidelity’s
Copy)

 

IN WITNESS WHEREOF, the Employer has caused this Adoption Agreement to
be executed this
                     day
of
                                ,
20               .

 

	
   

  	
  Employer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Employer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  	
   

  

 

11

 

EXECUTION
PAGE

(Employer’s
Copy)

 

IN WITNESS WHEREOF, the Employer has caused this Adoption Agreement to
be executed this
                     day
of                                 ,
20               .

 

	
   

  	
  Employer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Employer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  	
   

  

 

12

 

Attachment
A

 

Pursuant to Section 1.03(a), the
following are the Employees who are eligible to participate in the Plan:

 

Welch, Joseph

Rahill, Edward

Bruneel, Larry

Blair, Linda

Dudak, Joseph

Flynn, John

Schultz, Richard

Cyrulewski, Jim

 

 

	
   

  	
  Employer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  
					

 

Note:
The Employer must revise Attachment A to add Employees
as they become eligible or delete Employees who are no longer eligible.  Attachment A should be signed and dated every
time a change is made.

 

13

 

Attachment
B

 

(a)          ̈ The Participant’s vested percentage in Matching
Contributions elected in Section 1.05(b) shall be based upon the
following schedule:

 

(b)          ̈ The Participant’s vested percentage in Employer
Contributions elected in Section 1.05(c) shall be based upon the
following schedule:

 

14

 

THE
CORPORATEplan for RetirementSM

EXECUTIVE PLAN

 

BASIC PLAN
DOCUMENT

 

 

IMPORTANT
NOTE

 

This document has not been approved by the Department of Labor, the
Internal Revenue Service or any other governmental entity. An Adopting Employer
must determine whether the plan is subject to the Federal securities laws and
the securities laws of the various states. An Adopting Employer may not rely on
this document to ensure any particular tax consequences or to ensure that the
Plan is “unfunded and maintained primarily for the purpose of providing
deferred compensation to a select group of management or highly compensated
employees” under the Employee Retirement Income Security Act with respect to
the Employer’s particular situation. Fidelity Management Trust Company, its
affiliates and employees cannot provide you with legal advice in connection
with the execution of this document. This document should be reviewed by the
Employer’s attorney prior to execution.

 

 

CORPORATEplan for EXECUTIVE

BASIC PLAN DOCUMENT

 

	
  ARTICLE 1

  ADOPTION AGREEMENT

  	
   

  
	
   

  	
   

  
	
  ARTICLE 2

  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  2.1 - Definitions

  	
   

  
	
   

  	
   

  
	
  ARTICLE 3

  PARTICIPATION

  	
   

  
	
   

  	
   

  
	
  3.1 - Date of Participation

  	
   

  
	
  3.2 - Resumption
  of Participation Following Re employment

  	
   

  
	
  3.3 - Cessation
  or Resumption of Participation Following a Change in Status

  	
   

  
	
   

  	
   

  
	
  ARTICLE 4
  CONTRIBUTIONS

  	
   

  
	
   

  	
   

  
	
  4.1 - Deferral
  Contributions

  	
   

  
	
  4.2 - Matching Contributions

  	
   

  
	
  4.3 - Employer Contributions

  	
   

  
	
  4.4 - Time of Making Contributions

  	
   

  
	
   

  	
   

  
	
  ARTICLE 5

  PARTICIPANTS’ ACCOUNTS

  	
   

  
	
   

  	
   

  
	
  5.1 - Individual
  Accounts

  	
   

  
	
   

  	
   

  
	
  ARTICLE 6

  INVESTMENT OF CONTRIBUTIONS

  	
   

  
	
   

  	
   

  
	
  6.1 - Manner
  of Investment

  	
   

  
	
  6.2 - Investment Decisions

  	
   

  
	
   

  	
   

  
	
  ARTICLE 7

  RIGHT TO BENEFITS

  	
   

  
	
   

  	
   

  
	
  7.1 - Normal
  or Early Retirement

  	
   

  
	
  7.2 - Death

  	
   

  
	
  7.3 - Other Termination of Employment

  	
   

  
	
  7.4 - Separate Account

  	
   

  
	
  7.5 – Forfeitures

  	
   

  
	
  7.6 - Adjustment for Investment Experience

  	
   

  
	
  7.7 - Unforeseeable Emergency Withdrawals

  	
   

  
	
  7.8 - Change in Control

  	
   

  

 

2

 

	
  ARTICLE 8

  DISTRIBUTION OF BENEFITS PAYABLE AFTER TERMINATION OF SERVICE

  	
   

  
	
   

  	
   

  
	
  8.1 - Distribution
  of Benefits to Participants and Beneficiaries

  	
   

  
	
  8.2 - Determination of Method of
  Distribution

  	
   

  
	
  8.3 - Notice to Trustee

  	
   

  
	
  8.4 - Time of Distribution

  	
   

  
	
   

  	
   

  
	
  ARTICLE 9

  AMENDMENT AND TERMINATION

  	
   

  
	
   

  	
   

  
	
  9.1 - Amendment
  by Employer

  	
   

  
	
  9.2 - Retroactive Amendments

  	
   

  
	
  9.3 - Termination

  	
   

  
	
  9.4 - Distribution Upon Termination of the
  Plan

  	
   

  
	
   

  	
   

  
	
  ARTICLE 10

  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  10.1 - Communication
  to Participants

  	
   

  
	
  10.2 - Limitation of Rights

  	
   

  
	
  10.3 - Nonalienability of Benefits

  	
   

  
	
  10.4 - Facility of Payment

  	
   

  
	
  10.5 - Information between Employer and
  Trustee

  	
   

  
	
  10.6 - Notices

  	
   

  
	
  10.7 - Governing Law

  	
   

  
	
   

  	
   

  
	
  ARTICLE 11

  PLAN ADMINISTRATION

  	
   

  
	
   

  	
   

  
	
  11.1 - Powers
  and responsibilities of the Administrator

  	
   

  
	
  11.2 - Nondiscriminatory Exercise of
  Authority

  	
   

  
	
  11.3 - Claims and Review Procedures

  	
   

  

 

3

 

PREAMBLE

 

It is the
intention of the Employer to establish herein an unfunded plan maintained
solely for the purpose of providing deferred compensation for a select group of
management or highly compensated employees as provided in ERISA.

 

Article 1.                    Adoption Agreement.

 

Article 2.                    Definitions.

 

2.01                        Definitions.

 

(a)          Wherever used herein,
the following terms have the meanings set forth below, unless a different
meaning is clearly required by the context:

 

(1)          “Account” means an
account established on the books of the Employer for the purpose of recording
amounts credited on behalf of a Participant and any income, expenses, gains or
losses included thereon.

 

(2)          “Administrator” means the Employer adopting this Plan, or
other person designated by the Employer in Section 1.01(b).

 

(3)          “Adoption
Agreement” means Article 1, under which the Employer establishes and
adopts or amends the Plan and designates the optional provisions selected by
the Employer. The provisions of the Adoption Agreement shall be an integral
part of the Plan.

 

(4)          “Beneficiary”
means the person or persons
entitled under Section 7.02 to receive benefits under the Plan upon the
death of a Participant.

 

(5)          “Bonus”
means any performance-based
Compensation based on services performed for the Employer over a period of at
least 12 months.

 

(6)          “Change
of Control” means a change in
the ownership or effective control of the Employer, or a substantial portion of
the Employer’s assets as defined in the regulations under Code Section 409A.

 

(7)          “Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

(8)          “Compensation”
means for purposes of Article 4 (Contributions) wages as defined in Section 3401(a) of
the Code and all other payments of compensation to an employee by the Employer (in the course of the Employer’s trade
or business) for which the Employer is required to furnish the employee a
written statement under Section 6041(d) and 6051(a)(3) of the
Code, excluding any items elected by the Employer in Section 1.04,
reimbursements or other expense allowances, fringe benefits (cash and
non-cash), moving expenses, deferred compensation and welfare benefits, but
including amounts that are not includable in the gross income of the
Participant under a salary reduction agreement by reason of the application of
Sections 125, 132(f)(4), 402(e)(3), 402(h) or 403(b) of the Code.
Compensation shall be determined without regard to any rules under Section 3401(a) of
the Code that limit the remuneration included in wages based on the nature or
location of the employment or the services performed (such as the exception for
agricultural labor in Section 3401(a)(2) of the Code).

 

 

Compensation shall also include amounts
deferred pursuant to an election under Section 4.01.

 

In the case of any Self-Employed Individual
or an Owner-Employee, Compensation means the Self-Employed Individual’s Earned
Income.

 

(9)          “Earned
Income” means the net earnings of a Self-Employed Individual derived from the
trade or business with respect to which the Plan is established and for which the personal services of such
individual are a material income-providing factor, excluding any items not
included in gross income and the deductions allocated to such items, except
that for taxable years beginning after December 31, 1989 net earnings
shall be determined with regard to the deduction allowed under Section 164(f) of
the Code, to the extent applicable to the Employer. Net earnings shall be
reduced by contributions of the Employer to any qualified plan, to the extent a
deduction is allowed to the Employer for such contributions under Section 404
of the Code.

 

(10)    “Employee”
means any employee of the
Employer, Self-Employed Individual or Owner–Employee.

 

(11)    “Employer” means the employer named in Section 1.02(a) and
any Related Employers designated in 

Section 1.02(b).

 

(12)    “Employment
Commencement Date” means the
date on which the Employee first performs an Hour of Service.

 

(13)    “Entry Date”
means the date(s) designated in Section 1.03(b).

 

(14)    “ERISA”
means the Employee Retirement
Income Security Act of 1974, as from time to time amended.

 

(15)    “Fund Share”
means the share, unit, or other
evidence of ownership in a Permissible Investment.

 

(16)    “Hour of
Service” means, with respect to any Employee,

 

(A)      Each hour for which the
Employee is directly or indirectly paid, or entitled to payment, for the
performance of duties for the Employer or a Related Employer, each such hour to
be credited to the Employee for the computation period in which the duties were
performed;

 

(B)        Each hour for which the Employee is directly or indirectly paid, or
entitled to payment, by the Employer or Related Employer (including payments made or due from a trust fund or
insurer to which the Employer contributes or pays premiums) on account of a
period of time during which no duties are performed (irrespective of whether
the employment relationship has terminated) due to vacation, holiday, illness,
incapacity, disability, layoff, jury duty, military duty, or leave of absence,
each such hour to be credited to the Employee for the Eligibility Computation
Period in which such period of time occurs, subject to the following rules:

 

2

 

(i)             No more than 501
Hours of Service shall be credited under this paragraph (B) on account of
any single continuous period during which the Employee performs no duties;

 

(ii)          Hours of Service shall
not be credited under this paragraph (B) for a payment which solely
reimburses the Employee for medically-related expenses, or which is made or due
under a plan maintained solely for the purpose of complying with applicable
workmen’s compensation, unemployment compensation or disability insurance laws;
and

 

(iii)       If the period during which
the Employee performs no duties falls within two or more computation periods
and if the payment made on account of such period is not calculated on the
basis of units of time, the Hours of Service credited with respect to such
period shall be allocated between not more than the first two such computation
periods on any reasonable basis consistently applied with respect to similarly
situated Employees; and

 

(C)        Each hour not counted
under paragraph (A) or (B) for which back pay, irrespective of
mitigation of damages, has been either awarded or agreed to be paid by the
Employer or a Related Employer, each such hour to be credited to the Employee
for the computation period to which the award or agreement pertains rather than
the computation period in which the award agreement or payment is made.

 

For purposes
of determining Hours of Service, Employees of the Employer and of all Related
Employers will be treated as employed by a single employer. For purposes of
paragraphs (B) and (C) above, Hours of Service will be calculated in
accordance with the provisions of Section 2530.200b-2(b) of the
Department of Labor regulations, which are incorporated herein by reference.

 

Solely for
purposes of determining whether a break in service for participation purposes
has occurred in a computation period, an individual who is absent from work for
maternity or paternity reasons shall receive credit for the hours of service
which would otherwise been credited to such individual but for such absence, or
in any case in which such hours cannot be determined, 8 hours of service per
day of such absence. For purposes of this paragraph, an absence from work for
maternity reasons means an absence (1) by reason of the pregnancy of the
individual, (2) by reason of a birth of a child of the individual, (3) by
reason of the placement of a child with the individual in connection with the
adoption of such child by such individual, or (4) for purposes of caring
for such child for a period beginning immediately following such birth or
placement. The hours of service credited under this paragraph shall be credited
(1) in the computation period in which the absence begins if the crediting
is necessary to prevent a break in service in that period, or (2) in all
other cases, in the following computation period.

 

(17)    “Key Employee” means a
Participant who is key employee pursuant to Code Section 416(i), without
regard to paragraph (5) thereof.
A Participant will not be considered a Key Employee unless the Employer is a
corporation which has any of its stock publicly traded according to Code Section 409A
and regulations thereunder.

 

3

 

(18)    “Normal Retirement Age” means
the normal retirement age specified in Section 1.07(f) of the
Adoption Agreement.

 

(19)    “Owner-Employee” means, if the
Employer is a sole proprietorship, the individual who is the sole proprietor,
or, if the Employer is a partnership, a partner who owns more than 10 percent
of either the capital interest or the profits interest of the partnership.

 

(20)    “Participant” means any
Employee who participates in the Plan in accordance with Article 3 hereof.

 

(21)    “Permissible Investment” means
the investments specified by the Employer as available for investment of assets
of the Trust and agreed to by the Trustee. The Permissible Investments under
the Plan shall be listed in the Service Agreement.

 

(22)    “Plan” means the plan
established by the Employer as set forth herein as a new plan or as an
amendment to an existing plan, by executing the Adoption Agreement, together
with any and all amendments hereto.

 

(23)    “Plan Year” means the 12-consecutive-month
period designated by the Employer in Section 1.01(c).

 

(24)    “Related Employer” means any
employer other than the Employer named in Section 1.02(a), if the Employer
and such other employer are members of a controlled group of corporations (as
defined in Section 414(b) of the Code) or an affiliated service group
(as defined in Section 414(m)), or are trades or businesses (whether or
not incorporated) which are under common control (as defined in Section 414(c)),
or such other employer is required to be aggregated with the Employer pursuant
to regulations issued under Section 414(o).

 

(25)    “Self-Employed Individual”
means an individual who has Earned Income for the taxable year from the
Employer or who would have had Earned Income but for the fact that the trade or
business had no net profits for the taxable year.

 

(26)    “Service Agreement” means the
agreement between the Employer and Trustee regarding the arrangement between
the parties for recordkeeping services with respect to the Plan.

 

(27)    “Trust” means the trust
created by the Employer.

 

(28)    “Trust Agreement” means the
agreement between the Employer and the Trustee, as set forth in a separate
agreement, under which assets are held, administered, and managed subject to
the claims of the Employer’s creditors in the event of the Employer’s
insolvency, until paid to Plan Participants and their Beneficiaries as
specified in the Plan.

 

(29)    “Trust Fund” means the
property held in the Trust by the Trustee.

 

(30)    “Trustee” means the
corporation or individual(s) appointed by the Employer to administer the Trust
in accordance with the Trust Agreement.

 

(31)    “Years of Service for Vesting”
means, with respect to any Employee, the number of whole years of his periods
of service with the Employer or a Related Employer (the elapsed time method to
compute vesting service), subject to any exclusions elected by the Employer

 

4

 

in
Section 1.07(c). An Employee will receive credit for the aggregate of all
time period(s) commencing with the Employee’s Employment Commencement Date and
ending on the date a break in service begins, unless any such years are
excluded by Section 1.07(c). An Employee will also receive credit for any
period of severance of less than 12 consecutive months. Fractional periods of a
year will be expressed in terms of days.

 

In the case of a Participant who has 5 consecutive 1-year breaks in service,
all years of service after such breaks in service will be disregarded for the
purpose of vesting the Employer-derived account balance that accrued before
such breaks, but both pre-break and post-break service will count for the
purposes of vesting the Employer-derived account balance that accrues after
such breaks. Both accounts will share in the earnings and losses of the fund.

 

In the case of a Participant who does not have 5 consecutive 1-year
breaks in service, both the pre-break and post-break service will count in
vesting both the pre-break and post-break employer-derived account balance.

 

A break in service is a period of severance of at least 12 consecutive
months. Period of severance is a continuous period of time during which the
Employee is not employed by the Employer. Such period begins on the date the
Employee retires, quits or is discharged, or if earlier, the 12-month
anniversary of the date on which the Employee was otherwise first absent from
service.

 

In the case of an individual who is absent from work for maternity or
paternity reasons, the 12-consecutive month period beginning on the first
anniversary of the first date of such absence shall not constitute a break in
service. For purposes of this paragraph, an absence from work for maternity or
paternity reasons means an absence (1) by reason of the pregnancy of the
individual, (2) by reason of the birth of a child of the individual, (3) by
reason of the placement of a child with the individual in connection with the
adoption of such child by such individual, or (4) for purposes of caring
for such child for a period beginning immediately following such birth or
placement.

 

If the Plan maintained by the Employer is the plan of a predecessor
employer, an Employee’s Years of Service for Vesting shall include years of
service with such predecessor employer. In any case in which the Plan
maintained by the Employer is not the plan maintained by a predecessor
employer, service for such predecessor shall be treated as service for the
Employer to the extent provided in Section 1.08.

 

(b)         Pronouns used in the Plan
are in the masculine gender but include the feminine gender unless the context
clearly indicates otherwise.

 

Article 3.                    Participation.

 

3.01                        Date
of Participation.  An eligible
Employee (as set forth in Section 1.03(a)) who has filed an election
pursuant to Section 4.01 will become a Participant in the Plan on the
first Entry Date coincident with or following the date on which such election
would otherwise become effective, as determined under Section 4.01.

 

3.02                        Resumption
of Participation Following Reemployment. 
If a Participant ceases to be an Employee and thereafter returns to
the employ of the Employer he will again become a Participant as of an Entry
Date following the date on which he completes an Hour of Service for the
Employer following

 

5

 

his
re-employment, if he is an eligible Employee as defined in Section 1.03(a),
and has filed an election pursuant to Section 4.01.

 

3.03                        Cessation
or Resumption of Participation Following a Change in Status.  If any Participant continues in the
employ of the Employer or Related Employer but ceases to be an eligible
Employee as defined in Section 1.03(a), the individual shall continue to
be a Participant until the entire amount of his benefit is distributed;
however, the individual shall not be entitled to make Deferral Contributions or
receive an allocation of Matching or Employer Contributions during the period
that he is not an eligible Employee. Such Participant shall continue to receive
credit for service completed during the period for purposes of determining his
vested interest in his Accounts. In the event that the individual subsequently
again becomes an eligible Employee, the individual shall resume full
participation in accordance with Section 3.01.

 

Article 4.                    Contributions.

 

4.01                        Deferral
Contributions.  Each Participant
may elect to execute a salary reduction agreement with the Employer to reduce
his Compensation by a specified percentage, not exceeding the percentage set
forth in Section 1.05(a) and equal to a whole number multiple of one (1) percent,
per payroll period, subject to any election regarding Bonuses, as set out in
Subsection 1.05(a)(2). Such agreement shall become effective on the first
day of the period as set forth in the Participant’s election. The election will
be effective to defer Compensation
relating to all services performed in a calendar year subsequent to the filing
of such an election, subject to any election regarding Bonuses, as set out in
Subsection 1.05(a)(2). An election once made will
remain in effect until a new election is made; provided, however that such an
election choosing a distribution date pursuant to 1.06(b)(1)(B) will
only be effective for the Plan Year indicated. A new election will be effective
as of the first day of the following calendar year and will apply only to
Compensation payable with respect to services rendered after such date, except
that a separate election made pursuant to Section 1.05(a)(2) will
be effective immediately if made no later than 6 months before the end of the
period during which the services on which the Bonus is based are performed. If
the Employer has selected 1.05(a)(2), no amount will
be deducted from Bonuses unless the Participant has made a separate election.
Amounts credited to a Participant’s account prior to the effective date of any
new election will not be affected and will be paid in accordance with that
prior election. The Employer shall credit an amount to the account maintained
on behalf of the Participant corresponding to the amount of said reduction.
Under no circumstances may a salary reduction agreement be adopted
retroactively. To the extent permitted in regulations under Code Section 409A,
a Participant may revoke a salary reduction agreement for a calendar year
during that year, provided, however, that such revocation shall apply only to
Compensation not yet earned. In that event, the Participant shall be precluded
from electing to defer future Compensation hereunder during the calendar year
to which the revocation applies. Notwithstanding the above, in the calendar
year in which the Plan first becomes effective or in the year in which the
Participant first becomes eligible to participate, an election to defer
compensation may be made within 30 days after the Participant is first eligible
or the Plan is first effective, which election shall be effective with respect
to Compensation payable with respect to services rendered after the date of the
election.

 

4.02                        Matching
Contributions.  If so provided by
the Employer in Section 1.05(b), the Employer shall make a “Matching
Contribution” to be credited to the account maintained on behalf of each
Participant who had “Deferral Contributions” pursuant to Section 4.01 made
on his behalf during the year and who meets the requirement, if any, of Section 1.05(b)(3). The amount of the “Matching Contribution” shall be
determined in accordance with Section 1.05(b).

 

4.03                        Employer
Contributions.  If so provided by
the Employer in Section 1.05(c)(1), the Employer shall make an “Employer
Contribution” to be credited to the account maintained on behalf of each
Participant who meets the requirement, if any, of Section 1.05(c)(3) in
the amount required by Section

 

6

 

1.05(c)(1). If so
provided by the Employer in Section 1.05(c)(2), the Employer may make an “Employer
Contribution” to be credited to the account maintained on behalf of any
Participant in such an amount as the Employer, in its sole discretion, shall
determine. In making “Employer Contributions” pursuant to Section 1.05(c)(2),
the Employer shall not be required to treat all Participants in the same manner
in determining such contributions and may determine the “Employer Contribution”
of any Participant to be zero.

 

4.04                        Time
of Making Contributions.  The
Employer shall remit contributions deemed made hereunder to the Trust as soon
as practicable after such contributions are deemed made under the terms of the
Plan.

 

Article 5.                    Participants’ Accounts.

 

5.01                        Individual
Accounts.  The Administrator will
establish and maintain an Account for each Participant, which will reflect
Matching, Employer and Deferral Contributions credited to the Account on behalf
of the Participant and earnings, expenses, gains and losses credited thereto,
and deemed investments made with amounts in the Participant’s Account. The
Administrator will establish and maintain such other accounts and records as it
decides in its discretion to be reasonably required or appropriate in order to
discharge its duties under the Plan. Participants will be furnished statements
of their Account values at least once each Plan Year. The Administrator shall
provide the Trustee with information on the amount credited to the separate
account of each Participant maintained by the Administrator in its records.

 

Article 6.                    Investment of Contributions.

 

6.01                        Manner
of Investment.  All amounts
credited to the Accounts of Participants shall be treated as though invested
and reinvested only in eligible investments selected by the Employer in the
Service Agreement.

 

6.02                        Investment
Decisions.  Investments in which
the Accounts of Participants shall be treated as invested and reinvested shall
be directed by the Employer or by each Participant, or both, in accordance with
the Employer’s election in Section 1.11(a).

 

(a)          All dividends, interest,
gains and distributions of any nature that would be earned in respect of Fund
Shares in which the Account is treated as investing shall be credited to the
Account as though reinvested in additional shares of that Permissible
Investment.

 

(b)         Expenses that would be
attributable to the acquisition of investments shall be charged to the Account
of the Participant for which such investment is treated as having been made.

 

Article 7.                    Right to Benefits.

 

7.01                        Normal
or Early Retirement.  If provided
by the Employer in Section 1.07(e), each Participant who attains his
Normal Retirement Age or Early Retirement Age will have a nonforfeitable
interest in his Account in accordance with the vesting schedule(s) elected in Section 1.07.
If a Participant retires on or after attainment of Normal or Early Retirement
Age, such retirement is referred to as a normal retirement. On or after his
normal retirement, the balance of the Participant’s Account, plus any amounts
thereafter credited to his Account, subject to the provisions of Section 7.06,
will be distributed to him in accordance with Article 8.

 

7

 

If provided by
the Employer in Section 1.07, a Participant who separates from service
before satisfying the age requirements for early retirement, but has satisfied
the service requirement will be entitled to the distribution of his Account,
subject to the provisions of Section 7.06, in accordance with Article 8,
upon satisfaction of such age requirement.

 

7.02                        Death.  If a Participant dies before the
distribution of his Account has commenced, or before such distribution has been
completed, his Account shall become vested in accordance with the vesting
schedule(s) elected in Section 1.07 and his designated Beneficiary or
Beneficiaries will be entitled to receive the balance or remaining balance of
his Account, plus any amounts thereafter credited to his Account, subject to
the provisions of Section 7.06. Distribution to the Beneficiary or
Beneficiaries will be made in accordance with Article 8. A distribution to
a beneficiary of a Key Employee is not considered to be a distribution to a Key
Employee for purposes of Sections 1.06 and 7.08.

 

A Participant
may designate a Beneficiary or Beneficiaries, or change any prior designation
of Beneficiary or Beneficiaries, by giving notice to the Administrator on a
form designated by the Administrator. If more than one person is designated as
the Beneficiary, their respective interests shall be as indicated on the
designation form.

 

A copy of the death
certificate or other sufficient documentation must be filed with and approved
by the Administrator.  If upon the death
of the Participant there is, in the opinion of the Administrator, no designated
Beneficiary for part or all of the Participant’s Account, such amount will be
paid to his surviving spouse or, if none, to his estate (such spouse or estate
shall be deemed to be the Beneficiary for purposes of the Plan). If a
Beneficiary dies after benefits to such Beneficiary have commenced, but before
they have been completed, and, in the opinion of the Administrator, no person
has been designated to receive such remaining benefits, then such benefits
shall be paid to the deceased Beneficiary’s estate.

 

7.03                        Other
Termination of Employment.  If
provided by the Employer in Section 1.07, if a Participant terminates his
employment for any reason other than death or normal retirement, he will be
entitled to a termination benefit equal to (i) the vested percentage(s) of
the value of the Matching and Employer Contributions to his Account, as
adjusted for income, expense, gain, or loss, such percentage(s) determined in accordance with the vesting schedule(s)
selected by the Employer in Section 1.07, and (ii) the value of the
Deferral Contributions to his Account as adjusted for income, expense, gain or
loss. The amount payable under this Section 7.03 will be subject to the
provisions of Section 7.06 and will be distributed in accordance with Article 8.
For purposes of the Plan, a termination of employment is a separation from
service as defined pursuant to Code Section 409A and regulations
thereunder.

 

7.04                        Separate
Account.  If a distribution from
a Participant’s Account has been made to him at a time when he has a
nonforfeitable right to less than 100 percent of his Account, the vesting schedule in
Section 1.07 will thereafter apply only to amounts in his Account
attributable to Matching and Employer Contributions allocated after such
distribution. The balance of his Account immediately after such distribution
will be transferred to a separate account that will be maintained for the
purpose of determining his interest therein according to the following
provisions.

 

At any relevant time prior
to a forfeiture of any portion thereof under Section 7.05, a Participant’s
nonforfeitable interest in his Account held in a separate account described in
the preceding paragraph will be equal to P(AB + (RxD)) – (RxD), where P is the
nonforfeitable percentage at the relevant time determined under Section 7.05;
AB is the account balance of the separate account at the relevant time; D is
the amount of the distribution; and R is the ratio of the account balance at the
relevant time to the account balance after distribution. Following a forfeiture
of any portion of such separate account under Section 7.05 below, any
balance in the Participant’s separate account will remain fully vested and
nonforfeitable.

 

8

 

7.05                        Forfeitures.  If a Participant terminates his
employment, any portion of his Account (including any amounts credited after
his termination of employment) not payable to him under Section 7.03 will
be forfeited by him.

 

7.06                        Adjustment
for Investment Experience.  If
any distribution under this Article 7 is not made in a single payment, the
amount remaining in the Account after the distribution will be subject to
adjustment until distributed to reflect the income and gain or loss on the
investments in which such amount is treated as invested and any expenses
properly charged under the Plan to such amounts.

 

7.07                        Unforeseeable
Emergency Withdrawals.  Subject
to the provisions of Article 8, a Participant shall not be permitted to
withdraw his Account (and earnings thereon) prior to retirement or termination
of employment, except that, to the extent permitted under Section 1.09, a
Participant may apply to the Administrator to
withdraw some or all of his Account if such withdrawal is made on account of an
unforeseeable emergency as determined by the Administrator in accordance with
the requirements of and subject to the limitations provided within Code Section 409A
and regulations thereunder.

 

7.08                        Chance
in Control Distributions.  If the
Employer has elected to apply Section 1.06(c), then, upon a Change in
Control, notwithstanding any other provision of the Plan to the contrary, all
Participants shall have a nonforfeitable right to receive the entire amount of
their account balances under the Plan. All distributions due to a Change in
Control shall be paid out to Participants as soon as administratively
practicable, except that any such distribution to a Key Employee who has
terminated employment pursuant to Section 7.03 shall not be earlier than
the 1st day of the seventh month following that Key Employee’s termination of
employment.

 

Article 8.                    Distribution of Benefits.

 

8.01                        Form of
Distribution of Benefits to Participants and Beneficiaries.  The Plan provides for distribution as a
lump sum to be paid in cashon the date specified by the Employer in Section 1.06 pursuant to
the method provided in Section 8.02. If elected by the Employer in Section 1.10
and specified in the Participant’s deferral election, the distribution will be
paid through a systematic withdrawal plan (installments) for a time period not
exceeding 10 years beginning on the date specified by the Employer in Section 1.06.

 

8.02                        Events
Requiring Distribution of Benefits to Participants and Beneficiaries.

 

(a)          If elected by the
Employer in Section 1.06(a), the Participant will receive a distribution
upon the earliest of the events specified by the Employer in Section 1.06(a),
subject to the provisions of Section 7.08, and at the time indicated in Section 1.06(a)(2). If the Participant dies before any event in Section 1.06(a) occurs,
the Participant shall be considered to have terminated employment and the
Participant’s benefit will be paid to the Participant’s Beneficiary in the same
form and at the same time as it would have been paid to the Participant
pursuant to this Article 8.

 

(b)         If elected by the
Employer in Section 1.06(b), the Participant will receive a distribution
of all amounts not deferred pursuant to Section 1.06(b)(1)(B) (and
earnings attributable to those amounts) upon termination of employment, subject
to the delay applicable to Key Employees described therein, as applicable. If
elected by the Employer in Section 1.06(b)(1)(B),
the Participant shall have the election to receive distributions of amounts
deferred pursuant to Section 4.01 (and earnings attributable to those
amounts) after a date specified by the Participant in his deferral election
which is at least 12 months after the first day of the calendar year in which
such amounts would be earned. Amounts distributed to the Participant pursuant
to Section 1.06(b) shall be distributed at the time indicated in Section 1.06(b)(2). Subject to the provisions of

 

9

 

Section 7.08,
the Participant shall receive a distribution in the form provided in Section 8.01.
If the Participant dies before any event in Section 1.06(a) occurs,
the Participant shall be considered to have terminated employment and the
Participant’s benefit will be paid to the Participant’s Beneficiary in the same
form and at the same time as it would have been paid to the Participant
pursuant to this Article 8. However, if the Participant dies before the
date specified by the Participant in an election pursuant to Section 1.06(b)(1)(B), then the Participant’s benefit shall be paid to the
Participant’s Beneficiary in the form provided in Section 8.01 as if the
Participant had elected to be paid at termination of employment.

 

8.03                        Determination
of Method of Distribution.  The
Participant will determine the method of distribution of benefits to himself
and his Beneficiary, subject to the provisions of Section 8.02. Such
determination will be made at the time the Participant makes a deferral
election. A Participant’s election cannot be
altered, except, if elected by the Employer in Section 1.10(b), if the
Participant’s balance falls below the level described in regulations under Code
Section 409A, the Participant’s benefit payable due to termination of
employment will be distributed in a lump sum rather than installments.

 

(a)          When Section 1.06(a) has
been elected by the Employer.  The
distribution period specified in a Participant’s first deferral election
specifying distribution under a systematic withdrawal plan shall apply to all
subsequent elections of distributions under a systematic withdrawal plan made
by the Participant. Once a Participant has made an election for the method of distribution, that election shall be effective for all
contributions made on behalf of the Participant attributable to any Plan Year
after that election was made and before the Plan Year for which that election
has been altered in the manner prescribed by the Administrator. If the
Participant does not designate in the manner prescribed by the Administrator
the method of distribution, such method of distribution shall be a lump sum at
termination of employment.

 

(b)         When Section 1.06(b) has been
elected by the Employer.  The distribution period for distributions
under a systematic withdrawal plan shall be specified in each Participant’s
contribution election selecting payments under a systematic withdrawal plan. If
the Participant does not designate in the manner prescribed by the
Administrator the method of
distribution, such method of distribution for all such contributions shall be a
lump sum at termination of employment.

 

8.04                        Notice
to Trustee.  The Administrator
will notify the Trustee, pursuant to the method stated in the Trust Agreement
for providing direction, whenever any Participant or Beneficiary is entitled to
receive benefits under the Plan. The Administrator’s notice shall indicate the
form, amount and frequency of benefits that such Participant or Beneficiary
shall receive.

 

8.05                        Time
of Distribution.  In no event
will distribution to a Participant be made later than the date specified by the
Participant in his salary reduction agreement. All distributions will be made
as soon as administratively feasible
following the distribution date specified in Section 1.06 or Section 7.08,
if applicable.

 

Article 9.                    Amendment and Termination.

 

9.01                        Amendment
by Employer.  The Employer
reserves the authority to amend the Plan by filing with the Trustee an amended
Adoption Agreement, executed by the Employer only, on which said Employer has
indicated a change or changes in provisions previously elected by it. Such
changes are to be effective on the effective date of such amended Adoption
Agreement. Any such change notwithstanding, no Participant’s Account shall be
reduced by such change below the amount to which the Participant would have
been entitled if he had voluntarily left the employ of the Employer immediately
prior to the

 

10

 

date
of the change. The Employer may from time to time make any amendment to the
Plan that may be necessary to satisfy the Code or ERISA. The Employer’s board
of directors or other individual specified in the resolution adopting this Plan
shall act on behalf of the Employer for purposes of this Section 9.01.

 

9.02                        Retroactive
Amendments.  An amendment made by
the Employer in accordance with Section 9.01 may be made effective on a
date prior to the first day of the Plan Year in which it is adopted if such
amendment is necessary or appropriate to enable the Plan and Trust to satisfy
the applicable requirements of the Code or ERISA or to conform the Plan to any
change in federal law or to any regulations or ruling thereunder. Any
retroactive amendment by the Employer shall be subject to the provisions of Section 9.01.

 

9.03                        Termination.  The Employer has adopted the Plan with
the intention and expectation that contributions will be continued
indefinitely. However, said Employer has no obligation or liability whatsoever
to maintain the Plan for any length of time and may discontinue contributions
under the Plan or terminate the Plan at any time by written notice delivered to
the Trustee without any liability hereunder for any such discontinuance or
termination.

 

9.04                        Distribution
upon Termination of the Plan.  Upon
termination of the Plan, no further Deferral, Employer or Matching
Contributions shall be made under the Plan, but Accounts of Participants
maintained under the Plan at the time of termination shall continue to be
governed by the terms of the Plan until paid out in accordance with the terms of
the Plan.

 

Article 10.             Miscellaneous.

 

10.01                 Communication
to Participants.  The Plan will
be communicated to all Participants by the Employer promptly after the Plan is
adopted.

 

10.02                 Limitation
of Rights.  Neither the
establishment of the Plan and the Trust, nor any amendment thereof, nor the
creation of any fund or account, nor the payment of any benefits, will be
construed as giving to any Participant or other person any legal or equitable
right against the Employer, Administrator or Trustee, except as provided
herein; and in no event will the terms of employment or service of any
Participant be modified or in any way affected hereby.

 

10.03                 Nonalienability
of Benefits.  The benefits
provided hereunder will not be subject to alienation, assignment, garnishment,
attachment, execution or levy of any kind, either voluntarily or involuntarily,
and any attempt to cause such benefits to be so subjected will not be
recognized, except to such extent as may be required by law.

 

10.04                 Facility
of Payment.  In the event the
Administrator determines, on the basis of medical reports or other evidence
satisfactory to the Administrator, that the recipient of any benefit payments
under the Plan is incapable of handling his affairs by reason of minority,
illness, infirmity or other incapacity, the Administrator may disburse such
payments, or direct the Trustee to disburse such payments, as applicable, to a
person or institution designated by a court which has jurisdiction over such
recipient or a person or institution otherwise having the legal authority under
State law for the care and control of such recipient.  The receipt by such person or institution of
any such payments shall be complete acquittance therefor, and any such payment
to the extent thereof, shall discharge the liability of the Trust for the
payment of benefits hereunder to such recipient.

 

10.05                 Information
between Employer and Trustee.  The
Employer agrees to furnish the Trustee, and the Trustee agrees to furnish the
Employer with such information relating to the Plan and Trust as may be

 

11

 

required
by the other in order to carry out their respective duties hereunder, including
without limitation information required under the Code or ERISA and any regulations
issued or forms adopted thereunder.

 

10.06                 Notices.  Any notice or other communication in
connection with this Plan shall be deemed delivered in writing if addressed as
provided below and if either actually delivered at said address or, in the case
of a letter, three business days shall have elapsed after the same shall have
been deposited in the United States mails, first-class postage prepaid and
registered or certified:

 

(a)          If to the Employer or
Administrator, to it at the address set forth in the Adoption Agreement, to the
attention of the person specified to receive notice in the Adoption Agreement;

 

(b)         If to the Trustee, to it
at the address set forth in the Trust Agreement;

 

or, in each case at such other address as the addressee shall have specified by written
notice delivered in accordance with the foregoing to the addressor’s then
effective notice address.

 

10.07                 Governing
Law. The Plan and the accompanying Adoption Agreement will be
construed, administered and enforced according to ERISA, and to the extent not
preempted thereby, the laws of the Commonwealth of Massachusetts, without
regard to its conflicts of law principles.

 

Article 11.             Plan
Administration.

 

11.01                 Powers
and responsibilities of the Administrator. 
The Administrator has the full power and the full responsibility to
administer the Plan in all of its details, subject, however, to the applicable
requirements of ERISA. The Administrator’s powers and responsibilities include,
but are not limited to, the following:

 

(a)          To make and enforce such
rules and regulations as it deems necessary or proper for the efficient
administration of the Plan;

 

(b)         To interpret the Plan,
its interpretation thereof in good faith to be final and conclusive on all
persons claiming benefits under the Plan;

 

(c)          To
decide all questions concerning the Plan and the eligibility of any person to
participate in the Plan;

 

(d)         To administer the claims
and review procedures specified in Section 11.03;

 

(e)          To
compute the amount of benefits which will be payable to any Participant, former
Participant or Beneficiary in accordance with the provisions of the Plan;

 

(f)            To determine the
person or persons to whom such benefits will be paid;

 

(g)         To
authorize the payment of benefits;

 

(h)         To
comply with any applicable reporting and disclosure requirements of Part 1
of Subtitle B of Title I of ERISA;

 

(i)             To appoint such
agents, counsel, accountants, and consultants as may be required to assist in
administering the Plan;

 

12

 

(j)             By written
instrument, to allocate and delegate its responsibilities, including the
formation of an Administrative Committee to administer the Plan;

 

11.02                 Nondiscriminatory
Exercise of Authority.  Whenever,
in the administration of the Plan, any discretionary action by the
Administrator is required, the Administrator shall exercise its authority in a
nondiscriminatory manner so that all persons similarly situated will receive
substantially the same treatment.

 

11.03                 Claims
and Review Procedures.

 

(a)          Claims Procedure.  If any person believes he is being denied any
rights or benefits under the Plan, such person may file a claim in writing with
the Administrator. If any such claim is wholly or partially denied, the
Administrator will notify such person of its decision in writing. Such
notification will contain (i) specific reasons for the denial, (ii) specific
reference to pertinent Plan provisions, (iii) a description of any
additional material or information necessary for such person to perfect such
claim and an explanation of why such material or information is necessary, and (iv) information
as to the steps to be taken if the person wishes to submit a request for
review, including a statement of the such person’s right to bring a civil
action under Section 502(a) of ERISA following as adverse
determination upon review. Such notification will be given within 90 days after
the claim is received by the Administrator (or within 180 days, if special
circumstances require an extension of time for processing the claim, and if
written notice of such extension and circumstances is given to such person
within the initial 90-day period).

 

If the claim concerns disability benefits
under the Plan, the Plan Administrator must notify the claimant in writing
within 45 days after the claim has been filed in order to deny it. If special
circumstances require an extension of time to process the claim, the Plan
Administrator must notify the claimant before the end of the 45-day period that
the claim may take up to 30 days longer to process. If special circumstances
still prevent the resolution of the claim, the Plan Administrator may then only
take up to another 30 days after giving the claimant notice before the end of
the original 30-day extension. If the Plan Administrator gives the claimant
notice that the claimant needs to provide additional information regarding the
claim, the claimant must do so within 45 days of that notice.

 

(b)         Review Procedure. 
Within 60 days after the date on which a person receives a written notice
of a denied claim (or, if applicable, within 60 days after the date on which
such denial is considered to have occurred), such person (or his duly
authorized representative) may (i) file a written request with the
Administrator for a review of his denied claim and of pertinent documents and (ii) submit
written issues and comments to the Administrator. This written request may
include comments, documents, records, and other information relating to the
claim for benefits. The claimant shall be provided, upon the claimant’s request
and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to the claim for benefits. The review
will take into account all comments, documents, records, and other information
submitted by the claimant relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit determination.
The Administrator will notify such person of its decision in writing. Such
notification will be written in a manner calculated to be understood by such
person and will contain specific reasons for the decision as well as specific
references to pertinent Plan provisions. The decision on review will be made
within 60 days after the request for review is received by the Administrator
(or within 120 days, if special circumstances require an extension of time for
processing the request, such as an election by the Administrator to hold a
hearing, and if written notice of such extension and circumstances is given to
such person within the initial 60-day period). The extension notice shall
indicate the

 

13

 

special circumstances requiring an extension of time
and the date by which the Plan expects to render the determination on review.

 

If the initial claim was for disability benefits under the Plan and has
been denied by the Plan Administrator, the claimant will have 180 days from the
date the claimant received notice of the claim’s denial in which to appeal that
decision. The review will be handled completely independently of the findings
and decision made regarding
the initial claim and will be processed by an individual who is not a
subordinate of the individual who denied the initial claim. If the claim
requires medical judgment, the individual handling the appeal will consult with
a medical professional whom was not consulted regarding the initial claim and
who is not a subordinate of anyone consulted regarding the initial claim and
identify that medical professional to the claimant.

 

The Plan Administrator shall provide the claimant with written
notification of a plan’s benefit determination on review. In the case of an
adverse benefit determination, the notification shall set forth, in a manner
calculated to be understood
by the claimant—the specific reason or reasons for the adverse determinations,
reference to the specific plan provisions on which the benefit determination is
based, a statement that the claimant is entitled to receive, upon the claimant’s
request and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to the claim for benefits.

 

14

 

First
Amendment

to the

International Transmission Company Executive Deferred Compensation Plan

 

This Amendment to the
International Transmission Company Executive Deferred Compensation Plan (“Plan”)
is effective January 1, 2004.

WHEREAS, the Employer has decided
to adopt the Plan by adopting the CORPORATEp1an for Retirement Executive Plan
from Fidelity Management Trust Company (“Fidelity Plan”).

NOW THEREFORE, the Plan is
amended as follows:

1.                                       The Fidelity
Plan is adopted effective January 1, 2004, and all Section references hereafter
will be to the Adoption Agreement of the Fidelity Plan, unless stated
otherwise.

2.                                       Section 1.05(a)
is amended by adding subsection (3): “Restricted Stock Dividend Deferrals.
The Employer may allow Participants upon proper notice and approval to enter
into a special salary reduction agreement to make Deferral Contributions in an
amount up to 100% of any Employer paid restricted stock dividends.”

3.                                       Section 1.05(c)
is amended by adding the following subsections:

(4)                                  “Savings Plan
Make-Up. The Company shall credit to the Participant, on the last business
day of each month, the amount of any Company matching contributions that
otherwise would have been credited to the Participant’s account under the terms
of the ITC Savings and Investment Plan, but for the Participant’s election to
defer Compensation under the Plan.

(5)                                  Pension Plan
Make-Up. The Company shall credit to the Participant as of the date of the
Participant’s termination of employment, an amount equal to the difference between
(i) the present value, determined under the International Transmission Company
Retirement Plan (Pension Plan), of the benefit that the Participant would have
been entitled to receive under such Pension Plan but for his election to defer
Compensation under this Plan, and (ii), the present value, determined under
such Pension Plan, of the benefit that the Participant is entitled to receive
under such Pension Plan. Such contribution shall be determined and credited as
of the date of termination of employment.

(6)                                  Cash Balance
Plan Make-Up. The Company shall credit to the Participant as of
the last business day of each calendar year, an amount equal to the additional
increment that would have been added to the Participant’s account under a Cash
Balance Plan but for his having elected to defer Compensation under the Plan.
Such contributions shall be determined and credited as of the last day of the
calendar year.”

4.                                       Section 1.07(h)
shall be amended by adding subsection (4) as follows: 

                “Permanent Disability shall mean “Permanent
Disability” as such term may be defined in any 

 

15

                employment agreement between the Participant and the
Employer or any of its Related Employers or, if there is no such employment
agreement, “Permanent Disability” shall mean the Participant becomes physically
or mentally incapacitated and is therefore unable for a period of six (6)
consecutive months or for an aggregate of eight (8) months in any twelve (12)
consecutive month period, to perform the Participant’s duties with the Employer
or any of its Related Employers thereof. Any question as to the existence of
the Disability of the Participant as to which the Participant and the Employer
cannot agree shall be determined in writing by a qualified independent
physician mutually acceptable to the Participant and the Employer. If the
Participant and the Employer cannot agree as to the qualified independent
physician, each shall appoint such a physician and those two physicians shall select
a third who shall make such determination in writing. The determination of
Permanent Disability made in writing to the Employer and the Participant shall
be final and conclusive.”

5.                                       Section 1.10
shall be amended by adding the following language at the end of the Section:

“ ̈ under a
systematic withdrawal plan (installments) not to exceed 15 years.

(a)                                  Participant’s
terminating employment with an Account balance of less than $10,000 shall
receive such benefits in a single lump sum regardless of the distribution
election stated in their enrollment form.

(b)                                 A Participant
may change the distribution option previously selected at any time by
submitting a revised enrollment form to the Human Resources Director. A change
in time or manner of any distribution, however, shall be effective only if the
Human Resources Director receives the revised election form at least 12 full
months before distributions under the Plan are to commence. Any change received
by the Human Resources director less than 12 months prior to the date the
distribution would otherwise commence shall postpone any distribution from the
Plan an additional 12 months.

(c)                                  A participant
may request in writing to the Human Resources Director an unscheduled partial
or entire withdrawal of the amount credited to the Participant’s Account,
including earnings, which will be paid within 30 days in a single lump sum.
There will be a penalty deducted from the Account prior to the unscheduled
withdrawal equal to 10 percent of the Participant’s Account. If a Participant
elects such a withdrawal, any on-going deferral will cease, and the Participant
may not again be designated as eligible to make additional deferrals under the
Plan until the enrollment period occurring at the end of the Plan Year
following the Plan Year in which the withdrawal was made”.

 

16

 

	
  Employer:

  	
  International Transmission Company

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Linda Blair

  	
   

  	
   

  	
   

  
	
  Title:

  	
  VP—Policy & Business Dvpmt.

  	
   

  	
   

  	
   

  
						

 

	
  Received by Fidelity Management Trust Company, as Trustee:

  
	
  By:

  	
  /s/ Glen J. Kindness

  	
   

  	
  Date:

  	
  December 10, 2003

  	
   

  
	
  Title:

  	
  Glen J. Kindness

  Authorized Signatory

  	
   

  	
   

  	
   

  

 

17

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