Document:

Exhibit 10.35

                           SUPPLEMENT AND AMENDMENT #4
                                       TO
                         THE GEOWORKS-TOSHIBA AGREEMENT
                           FOR MOBILE SERVER+ SOFTWARE

This  Supplement  and  Amendment #4 to the  GEOWORKS-TOSHIBA  Agreement  entered
September  30, 1998,  as amended by Amendment #1 effective  the 12th day of July
1999,  Supplement  and  Amendment  #2  dated  the 1st  day of  April  2000,  and
Supplement  and  Amendment  # 3 dated the 31st day of  January  2001 is made and
effective the 1st day of April 2001  ("Effective  Date") by and between Geoworks
Corporation,  a Delaware  corporation  whose  principal  address is 960 Atlantic
Avenue, Alameda, California 94501 U.S.A. ("Geoworks"),  and Toshiba Corporation,
a corporation  duly organized and existing  under the laws of Japan,  having its
principal place of business at 1-1, Shibaura 1-chome, Minato-ku, Tokyo 105-8001,
Japan ("Toshiba").

                                  INTRODUCTION

     A.  Geoworks  and  Toshiba  entered  into  a  contractual  relationship  on
September  30,  1998  documented  as the  "Geoworks-Toshiba  Agreement  For  The
Evaluation  of  Software;   Amendment  #1  thereto,  effective  July  12,  1999;
Supplement and Amendment #2 thereto, effective April 1, 2000; and Supplement and
Amendment #3 thereto, effective January 31, 2001 (collectively the "Agreement");
and

     B. Geoworks and Toshiba now wish to supplement and amend certain financial,
licensing  and other terms of the  Agreement,  and  document the changes in this
Supplement and Amendment #4 ("Supplement #4").

                                     - 1 -
<PAGE>

                            SUPPLEMENT AND AMENDMENTS

     The  Parties  agree  that all the terms and  conditions  of the  Agreement,
including the  definitions  of terms and  expressions  in the  Agreement,  shall
remain in full force and effect with the exception of those terms and conditions
supplemented, changed, amended or added herein. The Parties agree to supplement,
change and amend numbered sections of the Agreement as follows:

1. DEFINITIONS

1.5. "Licensed  Technology,"  shall mean the object  code or  machine-executable
     code version of the Geoworks  Mobile  Server+  Version  3.1.3 ("MS+ Version
     3.1.3"),  formerly  known as  Jellyfish  Software  Version 3.0, and Servlet
     Version 1.1 ("Servlet Version 1.1"), including Updates as made available by
     Geoworks.

1.6. "Maintenance Support," shall mean Bug Fixes and Updates associated with the
     Licensed Technology as described in Section 9.2 of this Supplement #4.

1.7. "Source  Code,"  shall mean the computer  program  expressed in a source or
     human readable language  consisting of a full source language  statement of
     the program  comprising  the Licensed  Technology,  and all other  material
     reasonably  necessary to allow a reasonably  skilled  programmer or analyst
     who  is  experienced  in  the  field  of  developing  software,   including
     documentation,  to maintain the Licensed  Technology without the assistance
     of Geoworks or reference to other material.

2A.  EXTENSION OF COMMERCIAL  LICENSE (FOR USE IN MPC AND MMS SOFTWARE  PRODUCTS
AND SERVICES OF TOSHIBA)

2A.1 Commercial License. Geoworks hereby extends Toshiba's license grant for the
     Licensed Technology, for the duration of this Supplement #4, and subject to
     the terms and conditions set forth in the Agreement and this Supplement #4.
     The MS+  Version  3.1.3  as  defined  in this  Supplement  #4 is  currently
     scheduled to be provided to Toshiba on July 16, 2001.  Servlet  Version 1.1
     was previously provided to Toshiba

                                     - 2 -
<PAGE>

     under the terms and  conditions of Supplement #3. The  continuation  of the
     limited,  non-transferable,  non-exclusive  commercial  license  to use the
     Licensed Technology in MPC and MMS and to reproduce and distribute such MPC
     and MMS only in object code  versions to  Toshiba's  MPC and MMS  customers
     ("MPC and MMS  Customers") is in exchange for (1) the Recurring  Commercial
     License Fee equal to ###,(2) the MS+ Version 3.1.3 License Fee  established
     in  Article  2A.7  below,  and  (3)  the  Maintenance   Support  Fee,  also
     established in Article 2A.7 below.

2A.7 License Fee and Maintenance  Support Fee. In  consideration  of the license
     granted  herein,  Toshiba will pay Geoworks ###. This License Fee is due to
     Geoworks on ###.  MS+  Version  3.1.3 is deemed  accepted  by Toshiba  upon
     receipt.

     In consideration of the Maintenance  Support provided herein,  Toshiba will
     pay ###. This Fee includes Bug Fixes and Updates to the Licensed Technology
     during  the  duration  of  this   Supplement  #4.  Toshiba  will  pay  this
     Maintenance Support Fee to Geoworks as follows:

          o.   # # #

          o.   # # #

          o.   # # #

          o.   # # #

6. WARRANTY AND DISCLAIMER OF WARRANTY

6.1  Warranty.  Geoworks  warrants that it has the right and power to enter into
     this  Supplement  and  Amendment  #4 and that it has the right to grant the
     license  extension  granted  in  Article  2A  above.  There  are  no  other
     warranties outstanding, express or implied.

9. MAINTENANCE AND SUPPORT

     9.1 Features of the Licensed Technology. MS+ Version 3.1.3 will contain the
     features mutually agreed-upon between Geoworks and Toshiba which are listed
     in Exhibit A attached to this  Supplement #4. Servlet

                                     - 3 -
<PAGE>

     Version  1.0  contained  the  features  described  with  the  documentation
     delivered  with the  software.  Servlet  Version 1.1,  XML Content  Loading
     Feature,  is as  described in the  document  "Requirements  for Reading and
     Writing XML Documents within Premion  Scripts,  Version 0.6", dated October
     10, 2000 and provided to Toshiba on October 13, 2000.

     Geoworks is currently  utilizing four (4) of Toshiba's iPlanet  Application
     Server  licenses and Toshiba agrees that Geoworks may continue to use these
     licenses for the Term of this Supplement #4. Upon expiration of Term or any
     termination  pursuant  to Article  10.2,  Geoworks  will return the iPlanet
     Application Server licenses to Toshiba.

     In  the  event  Toshiba  requires  or  requests  Geoworks  to  develop  any
     additional  features,  which are not included in Maintenance Support (i.e.,
     Bug Fixes and Updates),  to the Licensed  Technology and Geoworks agrees to
     develop such  features,  and Geoworks'  standard  professional  engineering
     rates, as periodically published and supplied to Toshiba, will apply.

9.2  Maintenance  Support.  Subject to payment of the Maintenance Support Fee in
     Section 2A.7,  beginning  April 1, 2001 Geoworks will provide  Toshiba with
     Bug Fixes and Updates for the duration of this  Supplement #4. Toshiba will
     make best  efforts  to  submit  requests  for  Maintenance  Support  (i.e.,
     reporting  Errors) to  Geoworks  in  writing  in the US  English  language.
     Subsequent to receipt of a request in writing,

                                     - 4 -
<PAGE>

     Geoworks may contact Toshiba by telephone for  clarification and additional
     detail and such subsequent  discussions will be in Japanese,  if necessary.
     On-site or remote technical  support is not included in this fee, but could
     be provided to Toshiba at Geoworks' standard professional engineering rates
     as periodically published and made available to Toshiba.

9.3  While the  Licensed  Technology  is in  warranty  or Toshiba is entitled to
     receive Maintenance Support pursuant to the Agreement, Geoworks, at its own
     expense,  shall place one copy of the Licensed  Technology Source Code with
     an escrow agent,  reasonably acceptable to Toshiba,  within sixty (60) days
     after ship date of the Licensed  Technology to Toshiba.  Upon occurrence of
     any of the following events, Toshiba shall be entitled to retrieve from the
     escrow agent one copy of the Source Code for the Licensed  Technology after
     ten days  notice to  Geoworks  so long as  Toshiba  is not in breach of the
     Agreement:

     a.   Geoworks  ceases to  commercially  offer  (directly or  indirectly) to
          provide Maintenance Support for the Licensed Technology; or

     b.   Geoworks  files a voluntary  petition for relief against its creditors
          by way of  reorganization  or dissolution  under the  bankruptcy  laws
          which prevents Geoworks from performing under the Agreement within the
          meaning of the Federal, or any State, Bankruptcy Act; or

     c.   A filing  against  Geoworks of an  involuntary  petition for relief by
          Geoworks'  creditors under such bankruptcy  laws, if such  involuntary
          petition for relief is not dismissed  within one hundred  twenty (120)
          calendar days of filing and which  prevents  Geoworks from  performing
          under the Agreement; or

     d.   Proceedings   such  as   receivership,   insolvency,   reorganization,
          dissolution,  liquidation or other similar  proceedings are instituted
          by or against  Geoworks and which  prevents  Geoworks from  performing
          under the Agreement; or

                                     - 5 -
<PAGE>

     e.   Geoworks  ceases  doing  business  for any reason and which  cessation
          prevents  Geoworks  (and any  successor in interest)  from  performing
          under the Agreement.

     Toshiba  shall use such Source Code to maintain the Licensed  Technology to
     support MPC and MMS Customers for which Toshiba has continuing  warranty or
     Maintenance  Service  obligations,  including  internal Toshiba MPC and MMS
     Customers for which Toshiba has continuing  warranty or Maintenance Service
     obligations,  on the date  Toshiba is  entitled  to  retrieve a copy of the
     Source Code from the escrow agent. Toshiba agrees and acknowledges that the
     Licensed Technology Source Code is the confidential information of Geoworks
     and shall take such  precautions to protect the delivered  Source Code from
     unauthorized  disclosure or use as required hereunder.  An authorized third
     party,  under contract with Toshiba to provide such  maintenance,  may only
     access the Source  Code after it has  executed a  nondisclosure  agreement,
     acceptable to Geoworks (providing Geoworks is still conducting business and
     such acceptance is not unreasonably withheld or delayed), to use the Source
     Code in  accordance  with the  terms of this  Agreement.  The  delivery  to
     Toshiba of such Source Code shall be in lieu of and in full satisfaction of
     any other warranty or obligation  that Geoworks would  otherwise have under
     the Agreement and any corresponding Amendment to the Agreement with respect
     to the Licensed  Technology.  In the event Toshiba accesses the Source Code
     pursuant to the conditions  specified in this Supplement #4, Toshiba has no
     further  obligation to pay any  Maintenance  Support Fees which are due and
     payable at a date after the date Toshiba is entitled to retrieve the Source
     Code from the escrow agent provided that all  Maintenance  Support Fees due
     and payable prior to that date have been paid.

     In the event  Toshiba  accesses  the Source Code,  Toshiba  will  indemnify
     Geoworks from all loss, liability, claims and expense, including attorneys'
     and experts'  charges,  arising from (i)  Toshiba's  modifications  of such
     Source Code and any third party's use of such  modifications;  (ii) any use
     outside the limited scope of the license; and (iii) any failure to maintain
     the  confidentiality of the Source Code. The license to use the Source Code
     is non  transferable  and  revocable  only in the event of a breach of this
     license or the Agreement.

                                     - 6 -
<PAGE>

10. TERM AND TERMINATION

10.1 Term.  The term of this  Supplement  and  Amendment #4 shall begin upon the
     Effective  Date  and  the  parties  agree  that  the  Agreement,  including
     Supplement #4, shall be renewed and continue until the earliest to occur of
     the following:  (1) termination of the Agreement  pursuant to Article 10.2;
     or (2) September 30, 2004.

                                   SIGNATURES

GEOWORKS                                     TOSHIBA
     /s/                                          /s/
----------------------------------           ----------------------------------
Signature                                    Signature

Christopher A. Waldo                         Dr. Tsutomu Kawada
----------------------------------           ----------------------------------
Print Name                                   Print Name

VP Sales
----------------------------------           ----------------------------------
Title                                        Title  President & CEO
                                                    iValue Creation Company
                                                    Toshiba Corporation
9/19/01                                      9/18/01
----------------------------------           ----------------------------------
Date                                         Date

                                     - 7 -
<PAGE>

                                                                   Supplement #4
                                                                       Exhibit A

MS+ Version 3.1.3 Features

     o    FILEPUT tag - This tag allows MS+ scripts to write data  specified  in
          the tag body to a file. The  destination  file can be specified  using
          the path and the file store. This tag complements the FILEGET tag.

     o    File  upload  support  for HTTP - This is an  enhancement  to the HTTP
          request   handling   and  adds   support  for   receiving   multi-part
          mime-encoded  HTTP posts.  It allows MS+ to receive file data from the
          web client.

     o    EXEC tag - This new tag  allows MS+  scripts  to execute an  arbitrary
          program  on the  host  operating  system  using a new  process  and to
          retrieve its result. It is possible to specify timeout and environment
          variables for the new process.

     o    Allowing the FORWARD tag in querymaps  called by the RUNQUERYMAP tag -
          This  restores  the behavior of earlier MS+  versions.  It removes the
          limitation that the FORWARD tag is not allowed in querymaps  called by
          the RUNQUERYMAP tag.

     o    URLENCODE  and  URLDECODE  tags -  These  are  new  tags.  The  former
          generates a URL encoded  string from passed  parameters  or body.  The
          latter  decodes a passed URL encoded  string and returns a map if name
          value pairs are detected or a string otherwise.

     o    Improvement  of the  EXPRESSION tag output format - This fixes the Bug
          where the result of 1 + 1 becomes 2.0. The EXPRESSION tag now converts
          the result to a whole number if possible.

     o    Timeout  support for the FTP and HTTP tags - These  changes  allow MS+
          scripts to specify  timeout for the FTP and HTTP tags.  If the request
          does not return within the specified interval,  it will be interrupted
          and a null value is returned.

     o    Enhancement  to the HTTP tag - This  allows  MS+  scripts  to  specify
          arbitrary  header   information  in  an  HTTP  request.  A  map  value
          containing  header  information  to  submit  with the  request  can be
          specified as an attribute to the HTTP tag.

                                     - 8 -
<PAGE>

     o    Setting a correct value in the Content-Length  field in HTTP responses
          - In HTTP  responses sent back to the web client,  the  Content-Length
          field now contains a correct value.

     o    REFMPROXY  tag  (Toshiba  Multimedia  Engine  Support)  - This new tag
          enables  MS+ to  proxy  requests  to  another  origin  server  such as
          Toshiba's multimedia engine.

                                     - 9 -Exhibit 10.37

	

CHASSIS
HOLDINGS I LLC

LIMITED
LIABILITY COMPANY AGREEMENT

	

TABLE OF
CONTENTS

		Page

	ARTICLE I FORMATION OF COMPANY	 	1	 
	   1.1. Formation of the Company	 	1	 
	   1.2. Name	 	1	 
	   1.3. Principal Office of Company	 	1	 
	   1.4. Purposes	 	1	 
	   1.5. Term	 	1	 
	   1.6. Definitions	 	1	 
	   1.7. Status of Members	 	6	 
	   1.8. Meetings of Members	 	7	 
	   1.9. Title and Ownership of Property	 	7	 
	ARTICLE II CAPITAL	 	7	 
	   2.1. Units	 	7	 
	   2.2. Contributions	 	8	 
	   2.3. No Liabilities	 	8	 
	   2.4. Capital Accounts	 	8	 
	   2.5. Withdrawal of Capital	 	8	 
	ARTICLE III ALLOCATIONS OF NET INCOME AND NET LOSS	 	8	 
	   3.1. Allocations of Net Income and Net Loss	 	8	 
	   3.2. Special Allocations	 	9	 
	   3.3. Other Allocation Rules	 	11	 
	   3.4. Tax Allocations:  Code Section 704(c)	 	11	 
	   3.5. Change in Allocations	 	12	 
	ARTICLE IV DISTRIBUTIONS	 	12	 
	   4.1. Payment of Expenses	 	12	 
	   4.2. Cash Distributions	 	12	 
	   4.3. Distributions In-Kind	 	13	 
	   4.4. Restriction on Distributions	 	13	 
	ARTICLE V MANAGEMENT OF THE COMPANY	 	13	 
	   5.1. Managing Member	 	13	 
	   5.2. Powers, Rights and Duties of the Managing Member	 	13	 
	   5.3. Compensation and Expense Reimbursement of the Managing Member	 	13	 
	   5.4. Officers and Employees	 	13	 
	ARTICLE VI OPERATION OF THE COMPANY	 	14	 
	   6.1. Books of Account	 	14	 
	   6.2. Reports	 	14	 
	   6.3. Bank Accounts	 	14	 
	   6.4. Tax Matters	 	14	 
	ARTICLE VII TRANSFER; ADDITIONAL MEMBERS	 	14	 
	   7.1. Transfer of Shares	 	14	 
	   7.2. Certificate Legend	 	15	 
	   7.3. Admission of Additional Members	 	15	 
	ARTICLE VIII DISSOLUTION	 	15	 
	   8.1. Events Causing Dissolution	 	15	 
	   8.2. Winding Up of Company Affairs	 	15	 
	   8.3. Distribution on Liquidation	 	16	 
	ARTICLE IX INDEMNIFICATION	 	16	 
	   9.1. Indemnification	 	16	 
	ARTICLE X CONFIDENTIALITY AND PROPRIETARY INFORMATION	 	18	 
	   10.1. Confidentiality	 	18	 
	ARTICLE XI GENERAL	 	18	 
	   11.1. Delaware Law	 	18	 
	   11.2. Integration; Amendments	 	18	 
	   11.3. Notices	 	18	 
	   11.4. Severability	 	18	 
	   11.5. Power of Attorney	 	18	 
	   11.6. Miscellaneous	 	19	 

	

(i) 

	

CHASSIS HOLDINGS I LLC
(a Delaware
Limited Liability Company)

     LIMITED
LIABILITY COMPANY AGREEMENT of Chassis Holdings I LLC (the
“Company”), dated as of July 1, 2001, by and among each of the
persons listed on Schedule 1 attached hereto, as members. The parties to
this agreement are sometimes hereinafter referred to individually as a
“Member” and collectively as the “Members.” 

     WHEREAS,
this Agreement is being entered into by the Members to set forth in their
entirety the terms and conditions of the agreement of the Members with respect
to the operation of the Company; and 

     WHEREAS,
the Company is being formed to acquire certain assets and subject to the
assumption of certain related liabilities of certain of the Members; 

     NOW,
THEREFORE, in consideration of the covenants and agreements made herein, the
Members, intending to be legally bound, hereby agree as follows: 

ARTICLE I 

FORMATION OF COMPANY 

     1.1.
Formation of the Company. Pursuant to the provisions of the Delaware Act, the
Members hereby agree to form the Company as a Delaware limited liability company. The
Members agree that each of them shall execute and file all certificates and documents
necessary or appropriate for the formation and continuance of the Company or for the
qualification of the Company to do business.  

     1.2.
Name. The name of the Company is “Chassis Holdings I LLC.” 

1.3. Principal Office of
Company. The principal office of the Company is located at 211 College Road
East, Princeton, New Jersey 08450. The address of the registered office and the
name of the registered agent for service of process required to be maintained by
Section 18-104 of the Delaware Act are: The Corporation Trust Company,
Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. 

     1.4.
Purposes. The purposes of the Company are (a) to own and lease intermodal chassis, and
(b) to take all actions necessary, appropriate, advisable, incidental or convenient to
carry out the foregoing. 

     1.5.
Term. The term of the Company shall continue until December 31, 2050 unless the Company
is sooner dissolved pursuant to the provisions hereof. 

     1.6.
Definitions. As used in this Agreement, the following terms shall have the meanings set
forth below: 

	

     “Adjusted
Capital Account Deficit” shall mean the deficit balance, if any, in
such Member’s Capital Account as of the end of the relevant fiscal year,
after giving effect to the following adjustments: (i) crediting to such Capital
Account any amounts that such Member is obligated to restore or is deemed to be
obligated to restore pursuant to Sections 1.704-1 (b)(2)(ii)(b)(3),
1.704-1(b)(2)(ii)(c), 1.704-2(g), and 1.704-2(i)(5) of the IRS Regulations, and
(ii) debiting to such Capital Account the items described in Section
1.704(b)(2)(ii)(d)(4), (5), and (6) of the IRS Regulations. 

     “Agreement”
shall mean this Limited Liability Company Agreement, as the same may be amended
from time to time. 

     “Capital
Account” shall mean the capital account established and maintained for
each Member pursuant to Section 2.4 hereof. 

     “Capital
Contributions” shall mean the sum of Initial Capital Contributions. The
Initial Capital Contributions as of the date hereof are set forth opposite each
Member’s name on Schedule 1 attached hereto. 

     “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, or
any successor federal tax law. 

     “Common
Unit” shall have the meaning set forth in Section 2.1. 

     “Company
Minimum Gain” shall mean “partnership minimum gain” as set
forth in Section 1.704-2(d) of the IRS Regulations. 

     “Delaware
Act” shall mean the Delaware Limited Liability Company Act, as amended
from time to time. 

     “Depreciation”
shall mean, for each Fiscal Year or other period, an amount equal to the
depreciation, amortization, or other cost recovery deduction allowable with
respect to an asset for such Fiscal Year or other period, except that if the
Gross Asset Value of an asset differs from its adjusted basis for federal income
tax purposes at the beginning of such Fiscal Year or other period, Depreciation
shall be an amount which bears the same ratio to such beginning Gross Asset
Value as the federal income tax depreciation, amortization, or other cost
recovery deduction for such Fiscal Year or other period bears to such beginning
adjusted tax basis. If any asset shall have a zero adjusted basis for federal
income tax purposes, Depreciation shall be determined utilizing any reasonable
method selected by the Members. 

     “Distributable
Cash” shall mean the cash (excluding cash from Net Proceeds) of the
Company at the time of determination in excess of (a) amounts held in the sole
and absolute discretion of the Managing Member for investment or reinvestment in
respect of the Company in accordance with this Agreement and (b) any reserves
determined in the sole and absolute discretion of the Managing Member to be
necessary or appropriate in respect of known or unknown Company obligations or
contingencies. 

-2- 

	

     “Fair
Market Value” shall mean the value of the particular asset or interest
in question determined on the basis of an arm’s length transaction for cash
between an informed and willing seller (under no compulsion to sell) and an
informed and willing purchaser (under no compulsion to purchase), taking into
account, among other things, the anticipated cash flow, taxable income and
taxable loss attributable to the asset or interest in question. Except as
otherwise expressly set forth herein, in the case of any asset other than a
marketable security, the Fair Market Value shall be determined by the Managing
Member; in determining the value of any asset other than a marketable security,
the Managing Member may, but shall not be under any obligation to, engage an
independent appraiser having recognized qualifications necessary in order to
make such determination and the fees and expenses of such appraiser shall be
borne by the Company. Except as otherwise expressly set forth herein, in the
case of any marketable security at any date, the Fair Market Value of such
security shall equal the closing sale price of such security on the business day
(on which any national securities exchange is open for the normal transaction of
business) next preceding such date, as appearing in any published list of any
national securities exchange or in the National Market List of the National
Association of Securities Dealers, Inc., or, if there is no such closing sale
price of such security, the final price of such security at face value quoted on
such business day by a financial institution of recognized standing which
regularly deals in securities of such type. 

     “Fiscal
Year” shall mean the fiscal year of the Company, which shall be the
twelve (12) month period ending on December 31st of each year;
provided, however, that the initial Fiscal Year shall begin on the
date hereof and end on December 31, 2001, and that upon Termination, Fiscal Year
means the period from the day after the end of the last preceding Fiscal Year to
the date of Termination. 

     “Gross
Asset Value” shall mean, with respect to any asset, the asset’s
adjusted basis for federal income tax purposes, except as follows: 

     (a)
The initial Gross Asset Value of any asset contributed by a Member to the Company shall
be the gross Fair Market Value of such asset, as determined by the Managing Member (as
evidenced by this Agreement or an amendment hereto);  

     (b)
The Gross Asset Values of all assets shall be adjusted to equal their respective gross
fair market values, as determined by the Managing Member, as of the following times: (i)
the acquisition of an interest or an additional interest in the Company by any new or
existing Member in exchange for more than a de minimis Capital Contribution or other
consideration; (ii) the distribution by the Company to a Member of more than a de minimis
amount of property or money as consideration for an interest in the Company; and (iii)
the liquidation of the Company within the meaning of Section 1.704-1(b)(2)(ii)(g) of the
IRS Regulations; provided, however, that adjustments pursuant to clauses (i) and (ii)
above shall be made only if the Members determine that such adjustments are necessary or
appropriate to reflect the relative economic interests of the Members;  

     (c)
The Gross Asset Value of any asset distributed to a Member shall be the gross Fair Market
Value of such asset on the date of distribution; 

-3- 

	

     (d)
The Gross Asset Values of assets shall be increased (or decreased) to reflect any
adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code
Section 743(b), but only to the extent that such adjustments are taken into account in
determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the IRS
Regulations, clause (f) of the definition of Net Income and Net Loss and Section 3.2(g);
provided, however, that Gross Asset Values shall not be adjusted pursuant to this
paragraph (d) to the extent the Managing Member determines that an adjustment pursuant to
paragraph (b) hereof is necessary or appropriate in connection with a transaction that
would otherwise result in an adjustment pursuant to this paragraph (d); and  

     (e) If
the Gross Asset Value of an asset has been determined or adjusted pursuant to paragraphs
(a), (b), or (d), such Gross Asset Value shall thereafter be adjusted by the Depreciation
taken into account with respect to such asset for purposes of computing Net Income and
Net Loss.  

     “Initial
Capital Contribution” shall have the meaning set forth in Section 2.1. 

     “IRS
Regulations” shall mean the rules, regulations, orders and
interpretations of rules, regulations and orders adopted under the Code, as in
effect from time to time. 

     “Managing
Member” shall mean Trac Lease, Inc. 

     “Member”
shall mean any of the persons listed on Schedule 1 attached hereto or any person
who becomes a member pursuant to Section 7.3. 

     “Member
Nonrecourse Debt” shall mean “partner non-recourse debt” as
set forth in Section 1.704-2(b)(4) of the IRS Regulations. 

     “Member
Nonrecourse Debt Minimum Gain” shall mean an amount, with respect to
each Member Nonrecourse Debt, equal to the Company Minimum Gain that would
result if such Member Nonrecourse Debt were treated as a Nonrecourse Liability,
determined in accordance with Section 1.704-2(i)(2) and (3) of the IRS
Regulations. 

     “Member
Nonrecourse Deductions” shall mean “partnership nonrecourse
deductions” as set forth in Section 1.704-2(i)(2) of the IRS Regulations.
For any Fiscal Year, the amount of Member Nonrecourse Deductions with respect to
a Member Nonrecourse Debt equals the excess, if any, of the net increase, if
any, in the amount of the Member Nonrecourse Debt Minimum Gain attributable to
such Member Nonrecourse Debt over the aggregate amount of any distributions
during such Year to the Member that bears the economic risk of loss for such
Member Nonrecourse Debt to the extent such distributions are from proceeds of
such Member Nonrecourse Debt and are allocable to an increase in Member
Nonrecourse Debt Minimum Gain, determined according to the provisions of Section
1.704-2(i)(2) of the IRS Regulations. 

     “Membership
Interest” shall mean, with respect to any person, all of the interests
of that person in the Company, including, without limitation, such person’s
(i) right to a distributive share of profits and losses of the Company, (ii)
right to a distributive share of Company assets, and (iii) right, if any, to
participate in the management and control of the business and affairs of the
Company. 

     “Net
Income” and “Net Loss” means, with respect to any
Fiscal Year, an amount equal to the Company’s taxable income or loss for
such Fiscal Year or period, determined in accordance with Code Section 703(a)
(for this purpose, all items of income, gain, loss, or deduction required to be
stated separately pursuant to Code Section 703(a)(1) shall be included in
taxable income or loss), with the following adjustments: 

-4- 

	

     (a)
Any income of the Company that is exempt from federal income tax and not otherwise taken
into account in computing Net Income or Net Loss pursuant to this definitional Section
shall be added to such taxable income or loss;  

     (b)
Any expenditures of the Company described in Code Section 705(a)(2)(B) or treated as Code
Section 705(a)(2)(B) expenditures pursuant to Section 1.704-1(b)(2)(iv)(i) of the IRS
Regulations, and not otherwise taken into account in computing Net Income or Net Loss
pursuant to this definitional Section, shall be subtracted from such taxable income or
loss;  

     (c) In
the event the Gross Asset Value of any asset is adjusted pursuant to paragraph (b) or (c)
under the definition of “Gross Asset Value,” the amount of such adjustment shall
be taken into account as gain or loss from the disposition of such asset for purposes of
computing Net Income or Net Loss;  

     (d)
Gain or loss resulting from any disposition of Company property with respect to which
gain or loss is recognized for federal income tax purposes shall be computed by reference
to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted
tax basis of such property differs from its Gross Asset Value;  

     (e) In
lieu of the depreciation, amortization and other cost recovery deductions taken into
account in computing such taxable income or loss, there shall be taken into account
Depreciation for such Fiscal Year or other period, computed in accordance with the
definition thereof;  

     (f) To
the extent an adjustment to the adjusted tax basis of any asset pursuant to Code Section
734(b) or Code Section 743(b) is required pursuant to Treasury Regulation Section
1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a
result of a distribution other than in complete liquidation of a Member’s Units, the
amount of such adjustment shall be treated as an item of gain (if the adjustment
increases the basis of the asset) or loss (if the adjustment decreases the basis of the
asset) from the disposition of the asset and shall be taken into account for purposes of
computing Net Income or Net Loss; and  

     (g)
Notwithstanding any other provision of this definitional Section, any items which are
specially allocated under this Agreement shall not be taken into account in computing Net
Income or Net Loss.  

     “Net
Proceeds” shall mean, with respect to any transaction or event, the
cash realized by the Company from such transaction or event after deduction of
(a) the amount paid in respect of any secured loan or other indebtedness or
encumbrance at the closing of such transaction or event, (b) the costs and
expenses incurred by the Company relating to such transaction or event and (c)
such reserves as are deemed necessary by the Managing Member for contingent or
unforeseen liabilities or obligations of the Company arising out of or in
connection with such transaction or event, which reserves may be held in escrow
for a period of time deemed appropriate by the Managing Member and then
distributed to the Members in accordance with the provisions of this Agreement
as if such reserves had been distributed at the time of distribution of the Net
Proceeds. 

-5- 

	

     “Nonrecourse
Deductions” shall have the meaning set forth in Section 1.704-2(b)(1)
of the IRS Regulations. The amount of Nonrecourse Deductions for a Fiscal Year
equals the excess, if any, of the net increase, if any, in the amount of Company
Minimum Gain during that Fiscal Year, over the aggregate amount of any
distributions during that Fiscal Year of proceeds of a Nonrecourse Liability
that are allocable to an increase in Company Minimum Gain, determined according
to the provisions of Section 1.704-2(c) of the IRS Regulations. 

     “Preferred
Unit” shall have the meaning set forth in Section 2.1. 

     “Preferred Unit
Net Investment” shall mean, with respect to a Preferred Unit holder as
of any date (including any transferee of a Preferred Unit permitted by this
Agreement), the net amount of all capital contributions made by such Unit holder
(or its predecessor holder) in cash or property in respect of Preferred Units,
reduced, by all previous distributions in cash or property made to such
Preferred Unit holder (or its predecessor holder) pursuant to Section
4.2(b)(iii), and further, reduced by distributions in cash or property in
redemption of Units pursuant to Section 8.2(b). Property, for purposes of this
Section, shall be valued at its fair market value on the date of contribution or
distribution, as the case may be. If the valuation of any property comprising a
Member’s Net Investment shall subsequently be found to be incorrect, the
amount of such Net Investment, the value per Unit assigned in Section 2.1, and
the Priority Amount paid or payable thereon, shall be adjusted accordingly to
reflect such subsequent adjustment in value. 

     “Priority
Amount” shall mean, with respect to a holder of a Preferred Unit as of
any date, an amount, payable monthly, determined by applying to such
holder’s Preferred Unit Net Investment outstanding from time to time an
annual rate of (i) five and three-quarter percent (5.75%) from the date hereof
through August 31, 2003, and (ii) twelve percent (12%) thereafter, to be
calculated on a cumulative (to the extent not distributed annually) and
non-compounded basis, reduced by the amount of all Priority Amounts previously
paid. The Priority Amount shall be due within five (5) days following the end of
each calendar month. The Priority Amount shall not constitute a guaranteed
payment for purposes of Section 707(c) of the Code. 

     “Pro
Rata” shall mean to each Member in proportion to its Units, as
applicable. 

     “Regulatory
Allocation” shall have the meaning set forth in Section 3.2. 

     “Termination”
shall mean the complete distribution of the assets of the Company to the Members
following dissolution and winding up of the Company. 

     “Unit”
shall mean a Preferred Unit or a Common Unit. 

     1.7.
Status of Members. 

(a) No Personal
Liability. The Members shall not have any personal liability whatsoever,
whether to the Company, to any Member or to the creditors of the Company, for
the debts of the Company or for any of its losses except to the extent required
by the Delaware Act or this Agreement. 

-6- 

	

     (b) No
Management Rights. Except to the extent set forth in this Agreement, the Members shall
not participate in the management or control of the Company’s business. The Members
shall not transact any business for the Company, nor shall they have the power or
authority to act for or bind the Company, in their capacity as members, all such powers
being vested solely and exclusively in the Managing Member.  

     (c)
Return of Capital. The Members shall not be entitled to the withdrawal or return of their
capital contributions, except to the extent, if any, that distributions made pursuant to
this Agreement or upon Termination of the Company may be considered as such by law and
then only to the extent provided for herein.  

     1.8.
Meetings of Members. 

     (a)
The Members shall have an annual meeting in each year, on a date established by the
Managing Member. Special meetings of the Members may be called by the Managing Member.  

     (b)
Any vote, consent or approval of the Members may be accomplished by written consent in
lieu of a meeting signed by Members constituting the required vote for the action so
taken.  

     (c)
Members may participate in a regular or special meeting by, or conduct the meeting
through, the use of any means of communication by which all Members participating may
simultaneously hear each other during the meeting. Any Member who participates in a
meeting in this manner is deemed to be present in person at the meeting, except where a
Member participates in the meeting for the express purpose of objecting to the
transaction of any business on the ground that the meeting is not lawfully called or
convened.  

     (d)
Unless otherwise specified herein or required by law, (i) the Members may act by the
affirmative approval of a majority of the Members by Common Units, and (ii) the Preferred
Units shall be non-voting.  

     1.9.
Title and Ownership of Property. Title to and ownership of all property, both real and
personal, shall be vested in the Company, and not the Members individually. 

ARTICLE II 

CAPITAL 

     2.1.
Units. The interests of the Members in the Company shall be represented by Units. Units
shall be comprised of two series, Series A Preferred Units (the “Preferred Units”)
and Series B Common Units (the “Common Units”), having respectively the
attributes described in this Article and elsewhere in this Agreement. Schedule 1 sets
forth, with respect to each Member, the number of Preferred Units and Common Units issued
to such Member and such Member’s initial capital contribution (which may be in the
form or cash or property (net of associated liabilities)) (“Initial Capital
Contribution”) with respect to such Units. Each Unit shall be assigned an initial
value of One Dollar ($1.00).  

-7- 

	

     2.2.
Contributions. Each Member has made an initial capital contribution to the Company, in
accordance with Section 2.1, in exchange for its Units. 

     2.3.
No Liabilities. Except as otherwise specifically provided in this Agreement, no Member
shall be required to make any further contribution to the capital of the Company to
restore a loss, to discharge any liability of the Company or for any other purpose, nor
shall the Members personally be liable for any liabilities of the Company except as
provided by law or this Agreement.  

     2.4.
Capital Accounts. A Capital Account shall be established for each Member on the books of
the Company. The Capital Account of any Member shall include the fair market value of the
Initial Capital Contribution made by such Member as set forth in Section 2.1, (a)
increased by the amount of all Net Income allocated to such Member pursuant to Article
III; and (b) decreased by (i) the amount of all money distributed to such Member pursuant
to Article IV, (ii) the amount of all Net Loss allocated to such Member pursuant to
Article III, and (iii) the fair market value of property distributed to such Member by
the Company pursuant to Section 8.2(b) or otherwise. The Capital Accounts of the Members
shall be further adjusted in accordance with the additional rules set forth in Section
l.704-l(b)(2)(iv) of the IRS Regulations, to the extent that such adjustments are not
otherwise affected by the foregoing provisions of this Section 2.4.  

     2.5.
Withdrawal of Capital. A Member may not withdraw its capital, in whole or in part, from
the Company without the consent of the Managing Member, which consent may be withheld in
the sole discretion of the Managing Member. 

ARTICLE III 

ALLOCATIONS OF NET
INCOME
 AND NET LOSS

     3.1.
Allocations of Net Income and Net Loss. Subject to the provisions of Section 3.2, 

     (a)
Net Income for any Allocation Period during any Fiscal Year shall be allocated
among the Members: 

	 	     (i)
First, Pro Rata to the Common Unit holders until they have been allocated an amount of
Net Income equal to the amount of Net Loss allocated under Section 3.1(b)(v);

	 	     (ii)
Second, Pro Rata to the Preferred Unit holders until they have received an amount of Net
Income equal to the amount of Net Loss allocated under Section 3.1(b)(iv);

	 	     (iii)
Third, Pro Rata to the Common Unit holders until they have received an amount of Net
Income equal to the amount of Net Loss allocated under Section 3.1(b)(iii);

	

-8- 

	

	 	     (iv)
Fourth, Pro Rata to the Preferred Unit holders until they have received an amount of Net
Income equal to their Priority Amount; and

	 	     (v)
Fifth, Pro Rata to the Common Unit holders.

	

     (b)
Net Loss for any Allocation Period during any Fiscal Year shall be allocated
among the Members: 

	 	     (i)
First, Pro Rata to the Common Unit holders until they have been allocated an amount of
Net Loss equal to the amount of Net Income allocated under Section 3.1(a)(v);

	 	     (ii)
Second, Pro Rata to the Preferred Unit holders until they have been allocated an amount
of Net Loss equal to the amount of Net Income allocated under Section 3.1(a)(iv);

	 	     (iii)
Third, Pro Rata to the Common Unit holders until they have been allocated an amount of
Net Loss equal to the amount of their positive Capital Account balances;

	 	     (iv)
Fourth, Pro Rata to the Preferred Unit holders until they have been allocated an amount
of Net Loss equal to the amount of their positive Capital Account balances; and

	 	     (v)
Fifth, Pro Rata to the Common Unit holders.

	

     3.2.
Special Allocations. 

     (a)
Minimum Gain Chargeback. Notwithstanding any other provision of this Article 3, if there
is a net decrease in Company Minimum Gain during any Fiscal Year, the Members shall be
specially allocated items of Company income and gain for such Fiscal Year (and, if
necessary, subsequent Fiscal Years) in an amount equal to such Member’s share of the
net decrease in Company Minimum Gain, determined in accordance with Section 1.704-2(g)(2)
of the IRS Regulations. Allocations pursuant to the previous sentence shall be made in
proportion to the respective amounts required to be allocated to each Member pursuant
thereto. The items so allocated shall be determined in accordance with Section 1.704-2(f)
of the IRS Regulations. This Section 3.2(a) is intended to comply with the minimum gain
chargeback requirement in Section 1.704-2(f) of the IRS Regulations and shall be
interpreted consistently therewith.  

     (b)
Member Nonrecourse Debt Minimum Gain Chargeback. Notwithstanding any other provision of
this Article 3, except Section 3.2(a), if there is a net decrease in Member Nonrecourse
Debt Minimum Gain attributable to a Member Nonrecourse Debt during any Fiscal Year, each
Member who has a share of the Member Nonrecourse Debt Minimum Gain attributable to such
Member Nonrecourse Debt, determined in accordance with Section 1.704-2(i)(5) of the IRS
Regulations, shall be specially allocated items of Company income and gain for such
Fiscal Year (and, if necessary, subsequent Fiscal Years) in an amount equal to such Member’s
share of the net decrease in Member Nonrecourse Debt Minimum Gain attributable to such
Member Nonrecourse Debt, determined in accordance with Section 1.704-2(i)(4) of the IRS
Regulations. Allocations pursuant to the previous sentence shall be made in proportion to
the respective amounts required to be allocated to each Member pursuant thereto. The
items so allocated shall be determined in accordance with Section 1.704-2(i)(4) of the
IRS Regulations. This Section 3.2(b) is intended to comply with the minimum gain
chargeback requirement in such Section of the IRS Regulations and shall be interpreted
consistently therewith.  

-9- 

	

     (c)
Qualified Income Offset. In the event any Member unexpectedly receives any adjustments,
allocations, or distributions described in paragraphs (4), (5) and (6) of Section
1.704-1(b)(2)(ii)(d) of the IRS Regulations, items of Company income and gain shall be
specially allocated to such Members in an amount and manner sufficient to eliminate, to
the extent required by such Regulations, the Adjusted Capital Account Deficit of such
Members as quickly as possible, provided that an allocation pursuant to this Section
3.2(c) shall be made only if and to the extent that such Member would have an Adjusted
Capital Account Deficit after all other allocations provided for in this Article 3 have
been tentatively made as if this Section 3.2(c) were not in the Agreement. 

     (d)
Nonrecourse Deductions. Nonrecourse Deductions shall be allocated to the Members in
accordance with their respective Units. 

     (e)
Member Nonrecourse Deductions. Any Member Nonrecourse Deductions for any Fiscal Year or
other period shall be specially allocated to the Member who bears the economic risk of
loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse
Deductions are attributable in accordance with Section 1.704-2(i)(1) of the IRS
Regulations.  

     (f)
Limitation on Allocation of Net Loss. In no event shall Net Loss be allocated to a Member
to the extent such allocation would result in such Member having an Adjusted Capital
Account Deficit at the end of any Fiscal Year. Such Net Loss shall be allocated to the
other Member, provided, however, that appropriate adjustments shall be made to the
allocation of future Net Income in order to offset such specially allocated Net Loss
hereunder.  

     (g)
Section 754 Adjustments. To the extent an adjustment to the adjusted tax basis of any
Company asset pursuant to Code Section 734(b) or Code Section 743(b) is required,
pursuant to Section 1.704-1(b)(2)(iv)(m) of the IRS Regulations, to be taken into account
in determining Capital Accounts, the amount of such adjustment to the Capital Accounts
shall be treated as an item of gain (if the adjustment increases the basis of the asset)
or loss (if the adjustment decreases such basis) and such gain or loss shall be allocated
to the Members in a manner consistent with the manner in which their Capital Accounts are
required to be adjusted pursuant to such Section of the IRS Regulations.  

     (h)
Curative Allocations. The allocations contained in Sections 3.2(a) through 3.2(g) (the
“Regulatory Allocations”) are intended to comply with certain requirements of
the Code and the IRS Regulations. The Members intend that, to the extent possible, all
Regulatory Allocations shall be offset either by other Regulatory Allocations or with
special allocations of other items of Company income, gain, loss or deduction pursuant to
this Section 3.2(h). Therefore, notwithstanding any other provisions of this Article 3
(other than the Regulatory Allocations), the Members shall make such offsetting special
allocations of Company income, gain, loss or deduction in whatever manner they reasonably
determine to be appropriate so that, after such offsetting allocations are made, each
Member’s Capital Account balance is, to the extent possible, equal to the Capital
Account balance such Member would have had if the Regulatory Allocations were not part of
this Agreement.  

-10- 

	

     3.3.
Other Allocation Rules. 

     (a)
For purposes of determining the Net Income, Net Loss, or any other items allocable to any
period, Net Income, Net Loss, and any such other items shall be determined on a daily,
monthly, or other basis, as reasonably determined by the Members using any permissible
method under Code Section 706 and the IRS Regulations thereunder.  

     (b)
Except as otherwise provided in this Agreement, all items of Company income, gain, loss,
deduction, and any other allocations not otherwise provided for shall be divided among
the Members for tax purposes in the same proportions as they share Net Income or Net
Loss, as the case may be, for the Fiscal Year.  

     (c)
The Members are aware of the income tax consequences of the allocations made by this
Article 3 and hereby agree to be bound by the provisions of this Article 3 in reporting
their shares of Company income and loss for income tax purposes.  

     (d)
Solely for purposes of determining a Member’s proportionate share of the “excess
nonrecourse liabilities” of the Company within the meaning of Section 1.752-3(a)(3)
of the IRS Regulations, the interest of the Members in Company Net Income equals one
hundred percent (100%), in proportion to their Units.  

     (e) To
the extent permitted by Section 1.704-2(h)(3) of the IRS Regulations, the Members shall
treat distributions of Net Proceeds as not allocable to an increase in Company Minimum
Gain to the extent the distribution does not cause or increase a deficit balance in the
Capital Account of any Member.  

     3.4.
Tax Allocations: Code Section 704(c). 

     (a) In
accordance with Code Section 704(c) and the IRS Regulations thereunder, income, gain,
loss, and deduction with respect to any property contributed to the capital of the
Company shall, solely for tax purposes, be allocated among the Members so as to take
account of any variation between the adjusted basis of such property to the Company for
federal income tax purposes and its initial Gross Asset Value.  

     (b) In
the event the Gross Asset Value of any Company property is adjusted pursuant to paragraph
(b) of the definition of Gross Asset Value, subsequent allocations of income, gain, loss,
and deduction with respect to such asset shall take account of any variation between the
adjusted basis of such asset for federal income tax purposes and its Gross Asset Value in
the same manner as under Code Section 704(c) and the IRS Regulations thereunder. The
Members hereby agree that the Company shall elect to use the “traditional method”as
described in Section 1.704-3(b) of the IRS Regulations.  

-11- 

	

     (c)
Any elections or other decisions relating to such allocations shall be made by the
Members, in any manner that reasonably reflects the purpose and intention of this
Agreement. Allocations pursuant to this Section 3.4 are solely for purposes of federal,
state, and local taxes and shall not affect, or in any way be taken into account in
computing, any Member’s Capital Account or share of Net Income, Net Loss, other
items, or distributions pursuant to any provision of this Agreement.  

     3.5.
Change in Allocations. In the event the tax matters member shall determine that it is
prudent to modify the allocations set forth herein to comply with the IRS Regulations
and/or the Code, the Managing Member shall be directed to make such modifications,
provided that such modifications will not have a reasonable likelihood of causing a
material adverse effect upon any Member.  

ARTICLE IV 

DISTRIBUTIONS 

     4.1.
Payment of Expenses. The Company shall pay such expenses as it shall incur over the
course of each Fiscal Year. 

     4.2.
Cash Distributions. 

     (a)
Distributable Cash, if any, for each Fiscal Year shall be distributed to the
Members in the discretion of the Managing Member, subject to the express
provisions of this Agreement, in the following order, to the extent of
Distributable Cash: 

			(i) 		First,
the holders of Preferred Units shall receive the Priority Amount, Pro Rata in accordance
with Preferred Units held;

			(ii) 		Second,
the excess, if any, shall be paid to the holders of Common Units, Pro Rata in accordance
with Common Units held, but only to the extent such distribution does not cause the fair
market value of the Company’s net assets to be less than 100% of the Preferred Unit
Net Investment.

	

     (b)
The Net Proceeds of a capital event or a distribution of Company assets in
partial liquidation shall be distributed to the Members, subject to the express
provisions of this Agreement, in the order and to the extent provided below: 

			(i) 		First,
the holders of Preferred Units shall receive the Priority Amount, Pro Rata in accordance
with Preferred Units held;

			(ii) 		Second,
the balance, if any, shall be paid to the holders of Common Units, Pro Rata in accordance
with Common Units held, but only to the extent such distribution does not cause the fair
market value of the Company’s net assets to be less than 100% of the Preferred Unit
Net Investment;

	

-12- 

	

			(iii) 		Third,
the balance, if any, shall be paid to the holders of Preferred Units and Common Units in
the order specified in Section 8.2(b)(ii) and (iii), below.

	

Notwithstanding the
foregoing, the Managing Member shall be entitled to retain for the Company any
and all Distributable Cash received during any Fiscal Year and, if the Managing
Member shall deem it to be advisable, to use such funds in the interim for
purposes deemed appropriate and in the best interests of the Company, including,
without limitation, payment of expenses and taxes. 

     Distributions
with respect to a Fiscal Year shall at least equal the income tax payment requirements of
the Members with respect to Net Income allocated to such Members during such Fiscal Year.  

     4.3.
Distributions In-Kind. If the Company receives an in-kind distribution or if the Managing
Member determines it to be in the best interest of the Members that assets be distributed
in-kind to the Members, the Managing Member may, in its discretion, make an in-kind
distribution to the Members. The Managing Member shall determine the fair market value of
any assets distributed in-kind. In-kind distributions need not be Pro Rata, provided,
that the fair market value of the combined cash distributions and in-kind distributions
made to a Member is in the proportion that would have been distributed to such Member had
the in-kind distribution been sold and the Net Proceeds thereof been distributed.  

     4.4.
Restriction on Distributions. Notwithstanding any other provision of this Agreement,
payment of distributions under this Agreement may be made only to the extent permitted by
the Delaware Act. No return of Capital Contributions shall be made other than in
accordance with the express provisions of this Agreement.  

ARTICLE V 

MANAGEMENT OF THE
COMPANY 

     5.1.
Managing Member. Except as otherwise limited by this Agreement or applicable law, all
powers of the Company shall be exercised by or under the authority of, and the business
and affairs of the Company shall be managed under the direction of, the Managing Member. 

     5.2.
Powers, Rights and Duties of the Managing Member. The Managing Member shall have the
full, exclusive and complete authority and discretion in the management and control of
the business of the Company and shall make all decisions affecting the business of the
Company. The Managing Member shall have all of the rights and powers of a manager as
provided in the Delaware Act and as otherwise provided by law.  

     5.3.
Compensation and Expense Reimbursement of the Managing Member. The Managing Member shall
be reimbursed for any expenses incurred by the Managing Member on behalf of the Company. 

     5.4.
Officers and Employees. The Managing Member may appoint such officers who shall have such
power and authority as may be specified by the Managing Member. Officers shall serve at
the pleasure of the Managing Member. The initial officers of the Company shall be as set
forth on Schedule 2 attached hereto. The Managing Member (or officers designated by the
Managing Member) may hire, fire and compensate employees of the Company.  

-13- 

	

ARTICLE VI 

OPERATION OF THE COMPANY 

     6.1.
Books of Account. The Company shall maintain its books and records and shall determine
all items of Net Income and Net Loss and distributions using the accrual method of
accounting in accordance with principles applicable in determining taxable income or loss
for Federal income tax purposes for partnerships and consistent with accounting methods
used by the Company in determining taxable income or loss for Federal income tax
purposes. The Managing Member may change the Company’s method of accounting. The
Company shall also keep all other records necessary or convenient to record the Company’s
business and affairs.  

     6.2.
Reports. As soon as practicable after the end of each Fiscal Year, there shall be
prepared and delivered to each Member a financial statement for the Company consisting of
the following: (i) income statements and balance sheets for such Fiscal Year showing
separately the computation of Net Income or Net Loss and (ii) the amount of the
distributions to the Members and the effect of such distributions on the balance sheet of
the Company and the Capital Accounts of each Member. Annually, the Company shall provide
a K-1 or equivalent to each Member.  

     6.3.
Bank Accounts. The bank accounts of the Company shall be maintained in such bank or banks
as may be designated by the Managing Member and withdrawals from said accounts shall be
made as the Managing Member shall determine. There shall be no commingling of the moneys
or funds of the Company with moneys or funds of any Member or any other entity.  

     6.4.
Tax Matters. The Managing Member shall be the initial “tax matters member”. 

ARTICLE VII 

TRANSFER; ADDITIONAL
MEMBERS 

     7.1.
Transfer of Shares. No Units shall be transferred, assigned, pledged, mortgaged or
otherwise disposed of, in whole or in part, except in compliance with applicable
securities laws and upon written notice to the Company. The Company may require from the
transferor/transferee such documentation as the Company deems reasonably necessary, prior
to registering such transfer on the books of the Company. Transferred Units shall
continue to be covered by this Agreement and the Put/Call Agreement dated as of the date
hereof. The Common Units and the Preferred Units have not been registered under the
Securities Act of 1933 or under the securities laws of any state. They may only be
acquired for investment and not with the view to the distribution thereof within the
meaning of the Securities Act of 1933. They may not be transferred in the absence of an
effective registration statement applicable to said Units except with an opinion of
counsel of the holder reasonably satisfactory to the Company to the effect that
registration is not required.  

-14- 

	

     7.2.
Certificate Legend. If approved by the Managing Member, Units may be evidenced by
certificates. All certificates issued by the Company shall bear the following legend: 

	 	
THE
UNITS REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE PROVISIONS OF THE COMPANY’S
LIMITED LIABILITY COMPANY AGREEMENT DATED AS OF JULY 1, 2001 AND THE PUT/CALL AGREEMENT
DATED AS OF JULY 1, 2001. A DUPLICATE COPY OF EACH OF THE LIMITED LIABILITY COMPANY
AGREEMENT AND THE PUT/CALL AGREEMENT IS ON FILE AT THE OFFICE OF THE COMPANY. 

	

     7.3.
Admission of Additional Members. Additional Members may only be admitted to the Company
upon the affirmative vote of the Managing Member. Such admission will be on such terms
and conditions as may be agreed to by the Managing Member. No person shall be admitted as
an additional Member unless such person agrees to be bound by the terms of this
Agreement. Upon the admission (or withdrawal) of a Member, the Capital Account of each
Member shall be adjusted in accordance with Section 1.704-1(b)(2)(iv)(f) of the IRS
Regulations.  

ARTICLE VIII 

DISSOLUTION 

     8.1.
Events Causing Dissolution. 

     (a)
The happening of any one of the following events shall cause the dissolution of the
Company: 

			(i) 		the
determination by Members holding a majority of the Common Units and a majority of the
Preferred Units, each voting as a separate class, to dissolve the Company, or

			(ii) 		the
expiration of the term of the Company described in Section 1.5 hereof.

	

     (b)
The death, insanity, bankruptcy, receivership, liquidation or dissolution of a Member
shall not cause a dissolution of the Company. The rights of such Member to share in the
profits and losses of the Company, to receive distributions of Company funds and to
assign a Unit shall, on the happening of such an event, devolve upon such Member’s
successors and assigns, subject to the terms and conditions of this Agreement; provided,
however, that in no event will any such successor or assign become a substituted Member,
except as provided in Section 7 hereof.  

     8.2.
Winding Up of Company Affairs. 

     (a) In
the event of the dissolution of the Company for any reason, the Managing Member shall
proceed promptly to wind up the affairs of the Company. The Managing Member shall have
full right and unlimited discretion to determine the time, manner, and terms of any sale
or sales of Company property pursuant to such winding up having due regard to the
activity and condition of the relevant market and general financial and economic
conditions, and having due regard for such Managing Member’s fiduciary obligations
to the Company and the Members.  

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     (b)
Upon the termination, winding-up or liquidation of the Company, all the debts and
liabilities of the Company shall be paid or provided for, and the Company’s net
assets shall be distributed to the Members in liquidation of their interests in the
Company, in the following order:  

			(i) 		First,
the holders of Preferred Units, in payment of the Priority Amount, shall receive an
amount equal to the Priority Amount, Pro Rata in accordance with Preferred Units held;

			(ii) 		Second,
the holders of Preferred Units shall receive an amount equal to, and Pro Rata in
accordance with, their Net Investment;

			(iii) 		Finally
the balance, if any, shall be paid to the holders of Common Units, Pro Rata in accordance
with Common Units held.

	

Distributions pursuant to
this Section 8.2(b) may be made in cash or property or both, in the discretion
of the Managing Member; provided, however, that any distributions
of property made pursuant hereto shall be made Pro Rata (based on the fair
market value of such property) among the Members in proportion to the respective
total distributions being received. 

     The
Managing Member shall have the right, in its discretion, to place assets of the Company
into a liquidating trust or other similar entity.  

     (c)
The Managing Member shall have the authority to execute and record any and all documents
required in connection with the dissolution, winding up and Termination of the Company.
Upon completion of the distribution of Company property as provided in Section 8.2(b)
hereof, the Company shall be terminated, and the Managing Member shall cause the
Certificate of Formation and all qualifications of the Company in jurisdictions to be
canceled and shall take such other action as may be necessary to terminate the Company.  

     8.3.
Distribution on Liquidation. Notwithstanding any other provision of this Agreement, in
the event of a liquidation, the Managing Member shall make liquidating distributions
within the period prescribed in the IRS Regulations under Section 704(b) of the Code. 

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ARTICLE IX 

INDEMNIFICATION 

     9.1.
Indemnification. (a) Any person who was or is a party or threatened to be made a party to
any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the Company)
by reason of the fact that he/she or it is or was the Managing Member, an officer,
employee or agent of the Company or is or was serving at the request of the Company as a
director, officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise (including employee benefit plans) (hereinafter an “indemnitee”),
shall be indemnified and held harmless by the Company to the fullest extent authorized by
the Delaware Act, as the same exists or may hereafter be amended (but, in the case of any
such amendment, only to the extent that such amendment permits the Company to provide
broader indemnification than permitted prior thereto), against expenses (including
attorneys’fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by such indemnitee in connection with such action, suit or
proceeding, if the indemnitee acted in good faith and in a manner he/she or it reasonably
believed to be in or not opposed to the best interests of the Company, and with respect
to any criminal action or proceeding, had no reasonable cause to believe such conduct was
unlawful. The termination of the proceeding, whether by judgment, order, settlement,
conviction or upon a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that the person did not act in good faith and in a manner which he
or she reasonably believed to be in or not opposed to the best interests of the Company
and, with respect to any criminal action or proceeding, had reasonable cause to believe
such conduct was unlawful.  

     (b)
Any person who was or is a party or is threatened to be made a party to any threatened,
pending or completed action or suit by or in the right of the Company to procure a
judgment in its favor by reason of the fact that he/she or it is or was the Managing
Member, an officer, employee or agent of the Company, or is or was serving at the request
of the Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise (including employee benefit plans)
shall be indemnified and held harmless by the Company to the fullest extent authorized by
the Delaware Act, as the same exists or may hereafter be amended (but, in the case of any
such amendment, only to the extent that such amendment permits the Company to provide
broader indemnification than permitted prior thereto), against expenses (including
attorneys’fees) actually and reasonably incurred by him or her in connection with
the defense or settlement of such action or suit if he or she acted in good faith and in
a manner he/she or it reasonably believed to be in or not opposed to the best interests
of the Company and except that no indemnification shall be made in respect of any claim,
issue or matter as to which such person shall have been adjudged to be liable to the
Company unless and only to the extent that the court in which such suit or action was
brought, shall determine, upon application, that, despite the adjudication of liability
but in view of all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such expenses which such court shall deem proper.  

     (c)
All reasonable expenses incurred by or on behalf of the indemnitee in connection with any
suit, action or proceeding, may be advanced to the indemnitee by the Company.  

     (d)
The rights to indemnification and to advancement of expenses conferred in this article
shall not be exclusive of any other right which any person may have or hereafter acquire
under any statute, this Agreement, agreement, vote of Members or otherwise.  

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     (e)
The indemnification and advancement of expenses provided by this article shall continue
as to a person who has ceased to be the Managing Member, an officer, employee or agent
and shall inure to the benefit of the heirs, executors and administrators of such person.  

ARTICLE X 

CONFIDENTIALITY 

     10.1.
Confidentiality. In the course of a Member’s membership in the Company, such Member
may have access to trade secrets and confidential information which is not available to
the general public. Such information shall be regarded as confidential and shall not be
disclosed to any person, firm or corporation unless so authorized in writing by the
Managing Member.  

ARTICLE XI 

GENERAL 

     11.1.
Delaware Law. This Agreement shall be construed and interpreted in accordance with the
laws of Delaware, without regard to principles of conflict of laws. 

     11.2.
Integration; Amendments. This Agreement is the entire agreement among the parties with
respect to the subject matter herein. This Agreement may only be amended in writing by a
majority of the Common Units and a majority of the Preferred Units, each voting as a
separate class. 

     11.3.
Notices. All notices required or permitted by this Agreement shall be in writing and
shall be sent by personal delivery, including recognized overnight courier service, or
certified first class mail, postage prepaid, or facsimile addressed to the address of
such Member set forth on Schedule 1 attached hereto (or to such other address as shall
from time to time be supplied in writing by notice to the Members in accordance with this
Section 11.3). Notices given pursuant to this Section shall be deemed given when received
by personal delivery or facsimile or 5 days after the date when mailed at a United States
Post Office box or branch office.  

     11.4.
Severability. If any provision of this Agreement or the application of any such provision
to any party or circumstances shall be determined by any court of competent jurisdiction
to be invalid and unenforceable to any extent, the remainder of this Agreement or the
application of such provision to such person or circumstances other than those to which
it is so determined to be invalid and unenforceable, shall not be affected thereby, and
each provision hereof shall be validated and shall be enforced to the fullest extent
permitted by law.  

-18- 

	

     11.5.
Power of Attorney. Provided that the action to be taken is in accordance with the terms
of this Agreement, each Member, by executing this Agreement, hereby makes, constitutes
and appoints the Managing Member with full power of substitution, the Member’s true
and lawful attorney, for the Member and in the Member’s name, place and stead for
the Member’s use and benefit to execute, acknowledge, swear to, file and record on
the books and records of the Company all certificates, instruments, documents and
agreements which the Managing Member determines in its sole and absolute discretion are
necessary or desirable to effectuate the provisions of this Agreement. The foregoing
power of attorney is deemed to be coupled with an interest and is irrevocable. Such power
of attorney may be exercised by the Managing Member either by signing separately as
attorney-in-fact, or by listing all of the Members executing any instrument with the
signature of the Managing Member as attorney-in-fact for all of them. Such power of
attorney will survive the death, incapacity or dissolution of the Member or the
assignment of the Member’s interest in the Company. Any person dealing with the
Managing Member may conclusively presume and rely upon the fact that any such instrument
executed by such agent and attorney-in-fact is authorized, regular and binding without
further inquiry. The Member hereby waives any and all defenses which may be available to
contest, negate or disaffirm the action of the Managing Member taken in good faith under
such power of attorney.  

     11.6.
Miscellaneous. 

     (a)
Titles and Captions. All article or section titles or captions in this Agreement shall be
for convenience only, shall not be deemed part of this Agreement and shall in no way
define, limit, extend or describe the scope or intent of any provisions hereof. Except as
specifically provided otherwise, references to “Articles” and “Sections” are
to articles and sections of this Agreement.  

     (b)
Pronouns and Plurals. Whenever the context may require, any pronoun used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular form of nouns, pronouns and verbs shall include the plural and vice versa.  

     (c)
Further Action. The parties shall execute and deliver all documents, provide all
information and take or refrain from taking action as may be necessary or appropriate to
achieve the purposes of this Agreement. 

     (d)
Binding Effect. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their heirs, executors, administrators, successors, legal
representatives and permitted assigns. 

     (e)
Creditors. None of the provisions of this Agreement shall be for the benefit of or
enforceable by any creditors of the Company. 

     (f)
Waiver. No failure by any party to insist upon the strict performance of any covenant,
duty, agreement or condition of this Agreement or to exercise any right or remedy
consequent upon a breach thereof shall constitute a waiver of any such breach or any
other covenant, duty, agreement or condition.  

     (g)
Counterparts. This Agreement may be executed in counterparts, all of which together shall
constitute one and the same agreement. 

[Remainder of Page
Intentionally Left Blank] 

-19- 

	

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

			
Martin Tuchman

Raoul Witteveen

Thomas Birnie

Graham Owen

PRINCETON INTERNATIONAL
PROPERTIES

By:
Name:
Title:

RADCLIFF GROUP, INC.

By:
Name:
 Title:

TRAC LEASE INC.

By:

Name:
Title:

	

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