Document:

Exhibit
4.4

SOLERA HOLDINGS, LLC

 

 

 

 

LIMITED LIABILITY COMPANY AGREEMENT

Dated as of April
1, 2005

THE COMPANY INTERESTS
REPRESENTED BY THIS LIMITED LIABILITY COMPANY AGREEMENT HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED OR UNDER
ANY OTHER APPLICABLE SECURITIES LAWS. 
SUCH INTERESTS MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED
OF AT ANY TIME WITHOUT EFFECTIVE REGISTRATION UNDER SUCH ACT AND LAWS OR
EXEMPTION THEREFROM, AND COMPLIANCE WITH THE OTHER SUBSTANTIAL RESTRICTIONS ON
TRANSFERABILITY SET FORTH HEREIN.

THE COMPANY INTERESTS
REPRESENTED BY THIS LIMITED LIABILITY COMPANY AGREEMENT ARE ALSO SUBJECT TO
ADDITIONAL RESTRICTIONS ON TRANSFER SPECIFIED IN THE SECURITYHOLDERS AGREEMENT,
DATED AS OF APRIL 1, 2005, AS AMENDED OR MODIFIED FROM TIME TO TIME, AMONG THE
ISSUER (THE “LLC”) AND CERTAIN INVESTORS, AND THE LLC RESERVES THE RIGHT TO
REFUSE THE TRANSFER OF SUCH INTERESTS UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED
WITH RESPECT TO ANY TRANSFER.  A COPY OF
SUCH CONDITIONS SHALL BE FURNISHED BY THE LLC TO THE HOLDER HEREOF UPON WRITTEN
REQUEST AND WITHOUT CHARGE.

 

 

TABLE OF
CONTENTS

	
   

  	
   

  	
  Page

  
	
  ARTICLE I CERTAIN DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  ARTICLE II ORGANIZATIONAL MATTERS

  	
  10

  
	
  Section  2.1

  	
  Formation

  	
  10

  
	
  Section  2.2

  	
  The
  Certificate, Etc

  	
  10

  
	
  Section  2.3

  	
  Name

  	
  10

  
	
  Section  2.4

  	
  Purpose

  	
  10

  
	
  Section  2.5

  	
  Powers
  of the LLC

  	
  11

  
	
  Section  2.6

  	
  Foreign
  Qualification

  	
  12

  
	
  Section  2.7

  	
  Principal
  Office; Registered Office

  	
  12

  
	
  Section  2.8

  	
  Term

  	
  12

  
	
  Section  2.9

  	
  No
  State-Law Partnership

  	
  13

  
	
  Section  2.10

  	
  No
  UBTI; Effectively Connected Income

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE III UNITS; CAPITAL ACCOUNTS

  	
  13

  
	
  Section  3.1

  	
  Unitholders.

  	
  13

  
	
  Section  3.2

  	
  Unitholder
  Meetings.

  	
  15

  
	
  Section  3.3

  	
  Action
  of Unitholders by Written Consent or Telephone Conference

  	
  17

  
	
  Section  3.4

  	
  Issuance
  of Additional Units and Interests

  	
  18

  
	
  Section  3.5

  	
  Incentive Units

  	
  18

  
	
  Section  3.6

  	
  Capital Accounts

  	
  19

  
	
  Section  3.7

  	
  Negative
  Capital Accounts

  	
  20

  
	
  Section  3.8

  	
  No
  Withdrawal

  	
  20

  
	
  Section  3.9

  	
  Loans
  From Unitholders

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV DISTRIBUTIONS; REDEMPTIONS AND ALLOCATIONS

  	
  21

  
	
  Section  4.1

  	
  Distributions

  	
  21

  
	
  Section  4.2

  	
  Allocations

  	
  23

  
	
  Section  4.3

  	
  Special Allocations

  	
  24

  
	
  Section  4.4

  	
  Tax Allocations

  	
  25

  
	
  Section  4.5

  	
  Indemnification
  and Reimbursement for Payments on Behalf of a Unitholder

  	
  25

  
	
  Section  4.6

  	
  Transfer
  of Capital Accounts

  	
  25

  
	
  Section  4.7

  	
  Certain
  Repurchases and Redemptions

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE V BOARD OF MANAGERS; OFFICERS

  	
  26

  
	
  Section  5.1

  	
  Management by the Board of
  Managers

  	
  26

  
	
  Section  5.2

  	
  Composition and Election
  of the Board of Managers

  	
  27

  
	
  Section  5.3

  	
  Board Meetings and Actions
  by Written Consent

  	
  29

  
	
  Section  5.4

  	
  Committees; Delegation of
  Authority and Duties

  	
  31

  
	
  Section  5.5

  	
  Officers

  	
  31

  
	
   

  	
   

  	
   

  
				

 

i

 

	
  ARTICLE VI GENERAL RIGHTS AND OBLIGATIONS OF UNITHOLDERS  

  	
  33

  
	
  Section  6.1

  	
  Limitation
  of Liability

  	
  33

  
	
  Section  6.2

  	
  Lack
  of Authority

  	
  33

  
	
  Section  6.3

  	
  No
  Right of Partition

  	
  34

  
	
  Section  6.4

  	
  Unitholders
  Right to Act

  	
  34

  
	
  Section  6.5

  	
  Conflicts
  of Interest

  	
  34

  
	
  Section  6.6

  	
  Transactions
  Between the LLC and the Unitholders

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII EXCULPATION AND INDEMNIFICATION

  	
  35

  
	
  Section  7.1

  	
  Exculpation

  	
  35

  
	
  Section  7.2

  	
  Right
  to Indemnification

  	
  35

  
	
  Section  7.3

  	
  Advance
  Payment

  	
  35

  
	
  Section  7.4

  	
  Indemnification
  of Employees and Agents

  	
  36

  
	
  Section  7.5

  	
  Appearance
  as a Witness

  	
  36

  
	
  Section  7.6

  	
  Nonexclusivity
  of Rights

  	
  36

  
	
  Section  7.7

  	
  Insurance

  	
  36

  
	
  Section  7.8

  	
  Savings
  Clause

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII BOOKS, RECORDS, ACCOUNTING AND REPORTS

  	
  36

  
	
  Section  8.1

  	
  Records
  and Accounting

  	
  36

  
	
  Section  8.2

  	
  Fiscal
  Year

  	
  37

  
	
  Section  8.3

  	
  Tax
  Information

  	
  37

  
	
  Section  8.4

  	
  Transmission
  of Communications

  	
  37

  
	
  Section  8.5

  	
  LLC
  Funds

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX TAXES

  	
  37

  
	
  Section  9.1

  	
  Tax
  Returns

  	
  37

  
	
  Section  9.2

  	
  Tax
  Elections

  	
  37

  
	
  Section  9.3

  	
  Tax
  Matters Partner

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE X TRANSFER OF LLC INTERESTS

  	
  38

  
	
  Section  10.1

  	
  Transfers by Unitholders

  	
  38

  
	
  Section  10.2

  	
  Effect of Assignment

  	
  38

  
	
  Section  10.3

  	
  Restriction
  on Transfer

  	
  38

  
	
  Section  10.4

  	
  Transfer
  Fees and Expenses

  	
  39

  
	
  Section  10.5

  	
  Void
  Transfers

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI ADMISSION OF UNITHOLDERS

  	
  39

  
	
  Section  11.1

  	
  Substituted
  Unitholders

  	
  39

  
	
  Section  11.2

  	
  Additional
  Unitholders

  	
  39

  
	
  Section  11.3

  	
  Optionholders

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII WITHDRAWAL AND RESIGNATION OF UNITHOLDERS

  	
  40

  
	
  Section  12.1

  	
  Withdrawal
  and Resignation of Unitholders

  	
  40

  
	
  Section  12.2

  	
  Withdrawal
  of a Unitholder

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII DISSOLUTION AND LIQUIDATION

  	
  40

  

 

ii

 

	
  Section  13.1

  	
  Dissolution

  	
  40

  
	
  Section  13.2

  	
  Liquidation
  and Termination

  	
  40

  
	
  Section  13.3

  	
  Cancellation
  of Certificate

  	
  41

  
	
  Section  13.4

  	
  Reasonable
  Time for Winding Up

  	
  41

  
	
  Section  13.5

  	
  Return
  of Capital

  	
  41

  
	
  Section  13.6

  	
  Reserves
  Against Distributions

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV VALUATION

  	
  42

  
	
  Section  14.1

  	
  Determination

  	
  42

  
	
  Section  14.2

  	
  Fair
  Market Value

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV GENERAL PROVISIONS

  	
  42

  
	
  Section  15.1

  	
  Power of Attorney

  	
  42

  
	
  Section  15.2

  	
  Amendments

  	
  43

  
	
  Section  15.3

  	
  Title
  to LLC Assets

  	
  43

  
	
  Section  15.4

  	
  Remedies

  	
  43

  
	
  Section  15.5

  	
  Successors
  and Assigns

  	
  44

  
	
  Section  15.6

  	
  Severability

  	
  44

  
	
  Section  15.7

  	
  Incorporation
  of the LLC

  	
  44

  
	
  Section  15.8

  	
  Opt-in
  to Article 8 of the Uniform Commercial Code

  	
  44

  
	
  Section  15.9

  	
  Notice
  to Unitholder of Provisions

  	
  45

  
	
  Section  15.10

  	
  Counterparts

  	
  45

  
	
  Section  15.11

  	
  Consent
  to Jurisdiction

  	
  45

  
	
  Section  15.12

  	
  Descriptive
  Headings; Interpretation

  	
  45

  
	
  Section  15.13

  	
  Applicable
  Law

  	
  46

  
	
  Section  15.14

  	
  Mutual
  Waiver of Jury Trial

  	
  46

  
	
  Section  15.15

  	
  Addresses
  and Notices

  	
  46

  
	
  Section  15.16

  	
  Creditors

  	
  46

  
	
  Section  15.17

  	
  Waiver

  	
  46

  
	
  Section  15.18

  	
  Further
  Action

  	
  46

  
	
  Section  15.19

  	
  Offset

  	
  47

  
	
  Section  15.20

  	
  Entire
  Agreement

  	
  47

  
	
  Section  15.21

  	
  Delivery
  by Facsimile

  	
  47

  
	
  Section  15.22

  	
  Survival

  	
  47

  

 

 

iii

 

SOLERA HOLDINGS, LLC

LIMITED
LIABILITY COMPANY AGREEMENT

THIS
LIMITED LIABILITY COMPANY AGREEMENT, dated as of April 1, 2005, is entered into by and
among Solera Holdings, LLC (the “LLC”) and the Unitholders.

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, hereby agree
as follows:

ARTICLE I

CERTAIN
DEFINITIONS

Capitalized terms used
but not otherwise defined herein shall have the following meanings:

“Additional Unitholder”
means a Person admitted to the LLC as a Unitholder pursuant to Section 11.2.

“Additional Securities”
shall have the meaning set forth in Section 3.4.

“Adjusted Capital
Account Deficit” means with respect to any Capital Account as of the end of
any Taxable Year, the amount by which the balance in such Capital Account is
less than zero.  For this purpose, such
Person’s Capital Account balance shall be

(i)            reduced for any items described in
Treasury Regulation Section  1.704-1(b)(2)(ii)(d)(4), (5), and (6), and

(ii)           increased for any amount such Person
is obligated to contribute or is treated as being obligated to contribute to
the LLC pursuant to Treasury Regulation Section 1.704-1(b)(2)(ii)(c) (relating
to partner liabilities to a partnership) or 1.704-2(g)(1) and 1.704-2(i)
(relating to Minimum Gain).

“Affiliate” of any
particular Person means (i) any other Person controlling, controlled by, or
under common control with such particular Person, where “control” means the
possession, directly or indirectly, of the power to direct the management and
policies of a Person whether through the ownership of voting securities, by
contract, or otherwise, (ii) if such Person is a partnership, any partner
thereof and (iii) without limiting the foregoing and with respect only to GTCR,
any investment fund controlled by GTCR LLC or GTCR Golder Rauner II, L.L.C.

“Agreement” means
this Limited Liability Company Agreement, as amended or modified from time to
time in accordance with the terms hereof.

“Assignee” means a
Person to whom an LLC Interest has been transferred in accordance with the
terms of this Agreement and the other agreements contemplated hereby, but who
has not become a Unitholder pursuant to Article X.

 

 

“Board” means the
Board of Managers established pursuant to Section 5.2.

“Book Value”
means, with respect to any LLC property, the LLC’s adjusted basis for federal
income tax purposes, adjusted from time to time to reflect the adjustments
required or permitted by Treasury Regulation Section 1.704-1(b)(2)(iv)(d)-(g).

“Capital Account”
means the capital account maintained for a Unitholder pursuant to Section 3.6.

“Capital Contributions”
means any cash, cash equivalents, promissory obligations, or the Fair Market
Value of other property that a Unitholder contributes or is deemed to have
contributed to the LLC with respect to any Unit pursuant to Sections 3.1
or 3.4 or, with respect to Class A Preferred Units, pursuant to any
Senior Management Agreement.

“Certificate”
means the LLC’s Certificate of Formation as filed with the Secretary of State
of Delaware.

“Class A Common Unit”
means a Unit representing a fractional part of the interest of a Unitholder in
Profits, Losses and Distributions and having the rights and obligations
specified with respect to the Class A Common Units in this Agreement; provided,
that a “Class A Common Unit” shall be entitled to vote but shall not have any
other rights hereunder (including the right to receive Distributions hereunder)
until such time as such Class A Common Unit is fully vested in accordance with
the terms and conditions set forth in the Senior Management Agreement or other
agreement pursuant to which such Class A Common Unit was issued (to the extent
the applicable agreement provides for vesting), and all such unvested Class A
Common Units shall be deemed to be outstanding and shall be subject to the
obligations and restrictions applicable to the Class A Common Units hereunder.

“Class A Preferred
Unit” means a Unit representing a fractional part of the interest of a
Unitholder in Profits, Losses and Distributions and having the rights and
obligations specified with respect to the Class A Preferred Units in this
Agreement.

“Class A Preferred
Unpaid Yield” of any Class A Preferred Unit means, as of any date, an
amount equal to the excess, if any, of (a) the aggregate Class A Preferred
Yield accrued on such Class A Preferred Unit for all periods prior to such
date (including partial periods), over (b) the aggregate amount of prior
Distributions made by the LLC that constitute payment of Class A Preferred
Yield on such Class A Preferred Unit.

“Class A Preferred
Unreturned Capital” of any Class A Preferred Unit means, as of any date,
the aggregate Capital Contributions made or deemed to be made in exchange for
such Class A Preferred Unit reduced by all Distributions made by the LLC
that constitute a return of Class A Preferred Unreturned Capital under Section
4.1(a)(ii).

“Class A Preferred
Yield” means, with respect to each Class A Preferred Unit, the amount
accruing on such Class A Preferred Unit on a daily basis, at the rate of
8% per annum, compounded on the last day of each calendar quarter, on
(a) the Class A Preferred Unreturned Capital of such Class A Preferred
Unit plus (b) the Class A Preferred Unpaid Yield thereon for 

 

2

 

all prior
quarterly periods.  In calculating the
amount of any Distribution to be made during a period, the portion of the Class
A Preferred Yield with respect to such Class A Preferred Unit for the
portion of the quarterly period elapsing before such Distribution is made shall
be taken into account in determining the amount of such Distribution.

“Class B Common Unit”
means a Unit representing a fractional part of the interest of a Unitholder in
Profits, Losses and Distributions and having the rights and obligations
specified with respect to the Class B Common Units in this Agreement; provided
that a “Class B Common Unit” shall not have any voting rights or any other
rights hereunder (including the right to receive Distributions hereunder) until
such time as such Class B Common Unit is fully vested in accordance with the
terms and conditions set forth in an Incentive Unit Grant Agreement, and all
such Class B Common Units that are unvested Class B Common Units shall be
deemed to be outstanding and shall be subject to the obligations and
restrictions applicable to the Class B Common Units hereunder.

“Class B Preferred
Unit” means a Unit representing a fractional part of the interest of a
Unitholder in Profits, Losses and Distributions and having the rights and
obligations specified with respect to the Class B Preferred Units in this
Agreement.

“Class B Preferred
Unpaid Yield” of any Class B Preferred Unit means, as of any date, an
amount equal to the excess, if any, of (a) the aggregate Class B Preferred
Yield accrued on such Class B Preferred Unit for all periods prior to such
date (including partial periods), over (b) the aggregate amount of prior
Distributions made by the LLC that constitute payment of Class B Preferred
Yield on such Class B Preferred Unit.

“Class B Preferred
Unreturned Capital” of any Class B Preferred Unit means, as of any date,
the aggregate Capital Contributions made or deemed to be made in exchange for
such Class B Preferred Unit reduced by all Distributions made by the LLC that
constitute a return of Class B Preferred Unreturned Capital under Section
4.1(a)(iv).

“Class B Preferred
Yield” means, with respect to each Class B Preferred Unit, the amount
accruing on such Class B Preferred Unit on a daily basis, at the rate of 8% per
annum, compounded on the last day of each calendar quarter, on (a) the Class B
Preferred Unreturned Capital of such Class B Preferred Unit plus (b) the Class
B Preferred Unpaid Yield thereon for all prior quarterly periods.  In calculating the amount of any Distribution
to be made during a period, the portion of the Class B Preferred Yield with
respect to such Class B Preferred Unit for the portion of the quarterly period
elapsing before such Distribution is made shall be taken into account in
determining the amount of such Distribution.

“Code” means the
United States Internal Revenue Code of 1986, as amended. Such term shall, at
the Board’s sole discretion, be deemed to include any future amendments to the
Code and any corresponding provisions of succeeding Code provisions (whether or
not such amendments and corresponding provisions are mandatory or
discretionary; provided, however, that if they are discretionary, the
term “Code” shall not include them if including them would have a material
adverse effect on any Unitholder).

“Common Unitholder”
means a holder of Common Units.

 

3

 

“Common Units”
means Class A Common Units and Class B Common Units.

“Delaware Act”
means the Delaware Limited Liability Company Act, 6 Del. L. § 18-101, et seq., as it may be amended from time to time, and
any successor to the Delaware Act.

“Distribution”
means each distribution made by the LLC to a Unitholder, whether in cash,
property or securities of the LLC and whether by liquidating distribution,
redemption, repurchase, or otherwise; provided that any recapitalization
or exchange or conversion of securities of the LLC (including any exchange of
Units for Class A Preferred Units), redemption of securities of the LLC
pursuant to any Senior Management Agreement and any subdivision (by Unit split
or otherwise) or any combination (by reverse Unit split or otherwise) of any
outstanding Units shall not be deemed a Distribution.

“Equity Securities”
means (i) Units or other equity interests in the LLC or a corporate successor
(including other classes or groups thereof having such relative rights, powers,
and duties as may from time to time be established by the Board, including
rights, powers, and/or duties senior to existing classes and groups of Units
and other equity interests in the LLC), (ii) obligations, evidences of
indebtedness, or other securities or interests convertible or exchangeable into
Units or other equity interests in the LLC or a corporate successor, and
(iii) warrants, options, or other rights to purchase or otherwise acquire
Units or other equity interests in the LLC or a corporate successor.

“Event of Withdrawal”
means the death, retirement, resignation, expulsion, bankruptcy or dissolution
of a Unitholder or the occurrence of any other event that terminates the
continued membership of a Unitholder in the LLC.

“Fair Market Value”
means, with respect to any asset or equity interest, its fair market value
determined according to Article XIV.

“Fiscal Quarter”
means each calendar quarter ending March 31, June 30,
September 30, and December 31.

“Fiscal Year”
means the LLC’s annual accounting period established pursuant to Section 8.2.

“Governmental Entity”
means the United States of America or any other nation, any state or other
political subdivision thereof, or any entity exercising executive, legislative,
judicial, regulatory or administrative functions of government or any agency or
department or subdivision of any governmental authority, including the United
States federal government or any state or local government.

“Grossed-Up Amount”
means, with respect to any Distribution pursuant to Section 4.1(a)(v),
the sum of (a) the amount of the Distribution pursuant to Section 4.1(a)(v)
and (b) the sum of the Participation Thresholds of all Participating Class B
Common Units.

 

4

 

“GTCR” means (i)
GTCR Fund VIII, L.P., a Delaware limited partnership, GTCR Fund VIII/B, L.P., a
Delaware limited partnership, GTCR Co-Invest II, L.P., a Delaware limited
partnership and (ii) any other investment fund managed by GTCR LLC or GTCR
Golder Rauner II, L.L.C. that purchases Units pursuant to the GTCR Purchase
Agreement and that becomes an Additional Unitholder pursuant to Section 11.2.

“GTCR LLC” means
GTCR Golder Rauner, L.L.C., a Delaware limited liability company.

“GTCR Purchase
Agreement” means that certain Unit Purchase Agreement, dated as of April 1,
2005 among GTCR and the LLC, as amended from time to time in accordance with
its terms.

“Indebtedness”
means at a particular time, without duplication, (i) any indebtedness for
borrowed money or issued in substitution for or exchange of indebtedness for
borrowed money, (ii) any indebtedness evidenced by any note, bond,
debenture or other debt security, (iii) any indebtedness for the deferred
purchase price of property or services with respect to which a Person is
liable, contingently or otherwise, as obligor or otherwise (other than trade
payables and other current liabilities incurred in the ordinary course of
business which are not more than 120 days past due), and (iv) any
commitment by which a Person assures a creditor against loss (including
contingent reimbursement obligations with respect to letters of credit).

“Incentive Unit Grant
Agreement” has the meaning set forth in Section 3.5.

“Liens” means any
mortgage, pledge, security interest, encumbrance, lien, or charge of any kind
(including, without limitation, any conditional sale or other title retention
agreement or lease in the nature thereof), any sale of receivables with
recourse against the LLC, any Subsidiary or any Affiliate thereof, any filing
or agreement to file a financing statement as debtor under the Uniform
Commercial Code or any similar statute other than to reflect ownership by a
third party of property leased to the LLC, any Subsidiary or any Affiliate
under a lease which is not in the nature of a conditional sale or title
retention agreement, or any subordination arrangement in favor of another
Person (other than any subordination arising in the ordinary course of
business).

“LLC” means Solera
Holdings, LLC, a Delaware limited liability company.

“LLC Interest”
means the interest of a Unitholder in Profits, Losses, and Distributions.

“Losses” means
items of LLC loss and deduction determined according to Section 3.6(b).

“Manager” means a
current manager on the Board, who, for purposes of the Delaware Act, will be
deemed a “manager” (as defined in the Delaware Act) but will be subject to the
rights, obligations, limitations and duties set forth in this Agreement.

 

5

 

“Market Price” of
any security or any other asset, right or interest means the average of the
closing prices of such security’s sales on all securities exchanges on which
such security may at the time be listed, or, if there has been no sales on any
such exchange on any day, the average of the highest bid and lowest asked
prices on all such exchanges at the end of such day, or, if on any day such
security is not so listed, the average of the representative bid and asked
prices quoted in the NASDAQ System as of 4:00 P.M., New York time, or, if
on any day such security is not quoted in the NASDAQ System, the average of the
highest bid and lowest asked prices on such day in the domestic
over-the-counter market as reported by the National Quotation Bureau,
Incorporated, or any similar successor organization, in each such case averaged
over a period of 21 days consisting of the day as of which “Market Price” is
being determined and the 20 consecutive business days prior to such day.  If at any time such security or other asset,
right or interest is not listed on any securities exchange or quoted in the
NASDAQ System or the over-the-counter market, the “Market Price” shall be the
fair value thereof determined jointly by the Board and the holders of the Required
Interest.  If such parties are unable to
reach agreement within a reasonable period of time, such fair value shall be
determined by an independent appraiser experienced in valuing securities
jointly selected by the Board and the holders of the Required Interest.  The determination of such appraiser shall be
final and binding upon the parties, and the LLC shall pay the fees and expenses
of such appraiser.

“Minimum Gain”
means the partnership minimum gain determined pursuant to Treasury Regulation
Section 1.704-2(d).

“Officers” means
each person designated as an officer of the LLC to whom authority and duties
have been delegated pursuant to Section 5.5, subject to any resolution
of the Board appointing such person as an officer or relating to such appointment.

“Participating Class B
Common Unit” means, with respect to any Distribution pursuant to Section 4.1(a)(v),
a Class B Common Unit that has a Participation Threshold that is less than the
amount determined by dividing (a) the sum of (i) the amount of such
Distribution pursuant to Section 4.1(a)(v) and (ii) the sum of the
Participation Thresholds of all outstanding Class B Common Units (including the
Participating Class B Common Unit) that have an equal or lesser Participation
Threshold to such Class B Common Unit by (b) the sum of (i) the number of
outstanding Class A Common Units and (ii) the number of outstanding Class B
Common Units that have an equal or lesser Participation Threshold to such Class
B Common Unit.

“Participating Common
Unit” means, with respect to any Distribution pursuant to Section 4.1(a)(v),
a Class A Common Unit or a Participating Class B Common Unit.

“Participating
Threshold” means, with respect to each outstanding Class B Common Unit, an
amount determined in accordance with Section 3.5.

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

“Proceeding” has
the meaning set forth in Section 7.2.

 

6

 

“Profits” means
items of LLC income and gain determined according to Section 3.6(b).

“Public Offering”
means any sale of the common equity securities of the LLC (or a successor
thereto) pursuant to an effective registration statement under the Securities
Act filed with the Securities and Exchange Commission; provided that the
following shall not be considered a Public Offering:  (i) any issuance of common equity
securities as consideration for a merger or acquisition, and (ii) any
issuance of common equity securities or rights to acquire common equity
securities to employees of the LLC or its Subsidiaries as part of an incentive
or compensation plan.

“Public Sale”
means any sale of Equity Securities to the public pursuant to an offering
registered under the Securities Act or to the public through a broker, dealer
or market maker pursuant to the provisions of Rule 144 (or any similar
provision then in effect) adopted under the Securities Act (other than Rule
144(k) prior to a Public Offering).

“Registration
Agreement” means the Registration Rights Agreement, dated as of the date
hereof, by and among the LLC, GTCR (or an Affiliate thereof) and the other
Persons party thereto from time to time, as the same may be amended from time
to time pursuant to the terms thereof.

“Regulatory
Allocations” has the meaning set forth in Section 4.3(e).

“Required Interest”
means a majority of the Class B Preferred Units outstanding or, if no Class B
Preferred Units are outstanding, a majority of the Class A Common Units
outstanding.

“Sale of the LLC”
means any transaction or series of related transactions pursuant to which any
Person or group of related Persons (other than GTCR and its Affiliates) in the
aggregate acquire(s) (i) equity securities of the LLC possessing the voting
power (other than voting rights accruing only in the event of a default or
breach) to elect a majority of the LLC’s Board (whether by merger,
consolidation, reorganization, combination, sale or transfer of the LLC’s
equity securities, securityholder or voting agreement, proxy, power of attorney
or otherwise) or (ii) all or substantially all of the LLC’s assets determined
on a consolidated basis; provided that a Public Offering shall not
constitute a Sale of the LLC.

“Securities” means
notes, stocks, bonds, debentures, evidences of indebtedness, certificates of
interest or participation in any profit-sharing agreement, partnership
interests, beneficial interests in trusts, collateral-trust certificates,
pre-organization certificates or subscriptions, transferable shares, investment
contracts, voting-trust certificates, certificates of deposit for securities,
certificates of equity interests, notional principal contracts and certificates
of interest or participation in, temporary or interim certificates for,
receipts for or warrants or rights or options to subscribe to or purchase or
sell any of the foregoing, and any other items commonly referred to as
securities.

“Securities Act”
means the Securities Act of 1933, as amended, and applicable rules and
regulations thereunder, and any successor to such statute, rules, or
regulations.  Any 

 

7

 

reference herein
to a specific section, rule, or regulation of the Securities Act shall be
deemed to include any corresponding provisions of future law.

“Securities Exchange
Act” means the Securities Exchange Act of 1934, as amended, and applicable
rules and regulations thereunder, and any successor to such statute, rules, or
regulations.  Any reference herein to a
specific section, rule, or regulation of the Securities Exchange Act shall be
deemed to include any corresponding provisions of future law.

“Securityholders
Agreement” means the Securityholders Agreement, dated as of the date
hereof, by and among the LLC, GTCR (or an Affiliate thereof) and the other
Persons party thereto from time to time, as the same may be amended from time
to time pursuant to the terms thereof.

“Senior Management
Agreement” means any Senior Management Agreement entered into from time to
time among the LLC, Solera, Inc. (or any other Subsidiaries of the LLC) and one
of its executives, as the same may be amended from time to time pursuant to the
terms thereof (including, without limitation, any other agreements designated
as Senior Management Agreements for the sale of equity securities between the
Company and any employees or other service providers of the Company and its
Subsidiaries and any Incentive Unit Agreements, all as approved by the Board).

“Solera, Inc.”
means Solera, Inc., a Delaware corporation.

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company,
partnership, association, or business entity of which (i) if a
corporation, a majority of the total voting power of shares of stock entitled
(without regard to the occurrence of any contingency) to vote in the election
of directors, managers, or trustees thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or a combination thereof, or (ii) if a limited liability
company, partnership, association, or other business entity (other than a
corporation), a majority of  partnership
or other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more Subsidiaries of that
Person or a combination thereof.  For
purposes hereof, a Person or Persons shall be deemed to have a majority
ownership interest in a limited liability company, partnership, association, or
other business entity (other than a corporation) if such Person or Persons
shall be allocated a majority of limited liability company, partnership,
association, or other business entity gains or losses or shall be or control
any managing director or general partner of such limited liability company,
partnership, association, or other business entity.  For purposes hereof, references to a “Subsidiary”
of any Person shall be given effect only at such times that such Person has one
or more Subsidiaries, and, unless otherwise indicated, the term “Subsidiary”
refers to a Subsidiary of the LLC.

“Subsidiary Public
Offering” means any sale of the common equity securities of any Subsidiary
of the LLC (or a successor thereto) that produces more than 50% of the LLC’s
EBITDA (as defined in the Professional Services Agreement) on a consolidated
basis pursuant to an effective registration statement under the Securities Act
filed with the Securities and Exchange Commission; provided that the following
shall not be considered a Subsidiary Public Offering:  (i) any issuance of common equity securities
as consideration for a merger or 

 

8

 

acquisition, and
(ii) any issuance of common equity securities or rights to acquire common
equity securities to employees of the LLC or its Subsidiaries as part of an
incentive or compensation plan.

“Substituted
Unitholder” means a Person that is admitted as a Unitholder to the LLC
pursuant to Section 11.1.

“Tax” or “Taxes”
means any federal, state, local, or foreign income, gross receipts, franchise,
estimated, alternative minimum, add-on minimum, sales, use, transfer,
registration, value added, excise, natural resources, severance, stamp,
occupation, premium, windfall profit, environmental, customs, duties, real
property, personal property, capital stock, social security, unemployment,
disability, payroll, license, employee, or other withholding, or other tax, of
any kind whatsoever, including any interest, penalties, or additions to tax or
additional amounts in respect of the foregoing.

“Tax Distribution”
has the meaning set forth in Section 4.1(b).

“Tax Matters Partner”
has the meaning set forth in Section 9.3.

“Taxable Year”
means the LLC’s Fiscal Year unless the Board determines otherwise in compliance
with applicable laws.

“Transaction Documents”
means this Agreement, and all other agreements, instruments, certificates, and
other documents to be entered into or delivered by any Unitholder in connection
with the transactions contemplated to be consummated pursuant to this
Agreement, the GTCR Purchase Agreement, and any side agreements related to the
foregoing.

“Transfer” means
any sale, transfer, assignment, pledge, mortgage, exchange, hypothecation,
grant of a security interest or other direct or indirect disposition or
encumbrance of an interest (including, without limitation, by operation of law)
or the acts thereof, but explicitly excluding conversions or exchanges of one
class of Unit to or for another class of Unit. 
The terms “Transferee,” “Transferred,” and other forms of
the word “Transfer” shall have correlative meanings.

“Treasury Regulations”
means the income tax regulations promulgated under the Code and effective as of
the date hereof.  Such term shall, at the
Board’s sole discretion, be deemed to include any future amendments to such
regulations and any corresponding provisions of succeeding regulations (whether
or not such amendments and corresponding provisions are mandatory or
discretionary; provided, however, that if they are discretionary, the
term “Treasury Regulations” shall not include them if including them would have
a material adverse effect on any Unitholder).

“Unit” means an
LLC Interest of a Unitholder or an Assignee in the LLC representing a
fractional part of the LLC Interests of all Unitholders and Assignees and shall
include Class A Preferred Units, Class B Preferred Units and Common Units; provided
that any class or group of Units issued shall have relative rights, powers, and
duties set forth in this 

 

9

 

Agreement and the
LLC Interest represented by such class or group of Units shall be determined in
accordance with such relative rights, powers, and duties set forth in this
Agreement.

“Unitholder” means
any owner of one or more Units as reflected on the LLC’s  books and records, and any person admitted to
the LLC as an Additional Unitholder or Substituted Unitholder; but only for so
long as such person is shown on the LLC’s books and records as the owner of one
or more Units.

“Unitholder Group”
has the meaning set forth in Section 6.5.

ARTICLE II

ORGANIZATIONAL MATTERS

Section  2.1            Formation. 
The LLC has been organized as a Delaware limited liability company by
the filing with the Secretary of State of the State of Delaware of the
Certificate under and pursuant to the Delaware Act and shall be continued in
accordance with this Agreement.

Section 2.2            The Certificate, Etc. 
The Certificate was filed with the Secretary of State of the State of
Delaware on March 24, 2005.  The
Unitholders hereby agree to execute, file and record all such other
certificates and documents, including amendments to the Certificate, and to do
such other acts as may be appropriate to comply with all requirements for the
formation, continuation and operation of a limited liability company, the
ownership of property, and the conduct of business under the laws of the State
of Delaware and any other jurisdiction in which the LLC may own property or
conduct business.

Section  2.3            Name. 
The name of the LLC shall be Solera Holdings, LLC.  The Board in its sole discretion may change
the name of the LLC at any time and from time to time.  Notification of any such change shall be
given to all Unitholders.  The LLC’s
business may be conducted under its name and/or any other name or names deemed
advisable by the Board.

Section  2.4            Purpose. 
The purpose and business of the LLC shall be to engage in any lawful act
or activity which may be conducted by a limited liability company formed
pursuant to the Delaware Act and engaging in all activities necessary or
incidental to the foregoing. 
Notwithstanding anything herein to the contrary, nothing set forth
herein shall be construed as authorizing the LLC to possess any purpose or
power, or to do any act or thing, forbidden by law to a limited liability
company organized under the laws of the State of Delaware.

(a)           Board of Managers.  Subject to the provisions of this Agreement,
the GTCR Purchase Agreement, the Securityholders Agreement, the Registration
Agreement and the other agreements contemplated hereby and thereby,
(i) the LLC may, with the approval of the Board, enter into and perform
under any and all documents, agreements and instruments, all without any
further act, vote or approval of any Unitholder, and (ii) the Board may
authorize any Person (including any Unitholder or Officer) to enter into and
perform under any document, agreement or instrument on behalf of the LLC.

 

10

 

(b)           Merger.  Subject to the provisions of this Agreement,
the LLC may, with the approval of the Board and GTCR and without the need for
any further act, vote or approval of any Unitholder, merge with, or consolidate
into, another limited liability company (organized under the laws of Delaware
or any other state), a corporation (organized under the laws of Delaware or any
other state) or other business entity (as defined in Section 18-209(a) of the
Delaware Act), regardless of whether the LLC or such other entity is the
survivor.  If a merger is used as a means
of effecting the intent of Section 15.7 of this Agreement, then the
provisions of that Section shall apply to such transaction.

Section  2.5            Powers of the LLC. 
Subject to the provisions of this Agreement and the agreements
contemplated hereby, the LLC shall have the power and authority to take any and
all actions necessary, appropriate, proper, advisable, convenient or incidental
to or for the furtherance of the purposes set forth in Section 2.4,
including the power:

(a)           to conduct its business, carry on its
operations and have and exercise the powers granted to a limited liability
company by the Delaware Act in any state, territory, district or possession of the
United States, or in any foreign country that may be necessary, convenient or
incidental to the accomplishment of the purpose of the LLC;

(b)           to acquire by purchase, lease,
contribution of property or otherwise, own, hold, operate, maintain, finance, refinance,
improve, lease, sell, convey, mortgage, transfer, demolish or dispose of any
real or personal property that may be necessary, convenient or incidental to
the accomplishment of the purpose of the LLC;

(c)           to enter into, perform and carry out
contracts of any kind, including contracts with any Unitholder or any Affiliate
thereof, or any agent of the LLC necessary to, in connection with, convenient
to or incidental to the accomplishment of the purpose of the LLC;

(d)           to purchase, take, receive, subscribe
for or otherwise acquire, own, hold, vote, use, employ, sell, mortgage, lend,
pledge, or otherwise dispose of, and otherwise use and deal in and with, shares
or other interests in or obligations of domestic or foreign corporations,
associations, general or limited partnerships (including the power to be
admitted as a partner thereof and to exercise the rights and perform the duties
created thereby), trusts, limited liability companies (including the power to
be admitted as a member or holder of units or appointed as a manager thereof
and to exercise the rights and perform the duties created thereby) or
individuals or direct or indirect obligations of the United States or of any
government, state, territory, governmental district or municipality or of any
instrumentality of any of them;

(e)           to lend money for any proper purpose,
to invest and reinvest its funds and to take and hold real and personal
property for the payment of funds so loaned or invested;

(f)            to sue and be sued, complain and
defend, and participate in administrative or other proceedings in its name;

(g)           to appoint employees and agents of
the LLC and define their duties and fix their compensation;

 

11

 

(h)           to indemnify any Person in accordance
with the Delaware Act and to obtain any and all types of insurance;

(i)            to cease its activities and cancel
its Certificate;

(j)            to negotiate, enter into,
renegotiate, extend, renew, terminate, modify, amend, waive, execute,
acknowledge or take any other action with respect to any lease, contract or
security agreement in respect of any assets of the LLC;

(k)           to borrow money and issue evidences
of indebtedness and guaranty indebtedness (whether of the LLC or any of its
Subsidiaries), and to secure the same by a mortgage, pledge or other lien on
the assets of the LLC;

(l)            to pay, collect, compromise,
litigate, arbitrate or otherwise adjust or settle any and all other claims or
demands of or against the LLC or to hold such proceeds against the payment of
contingent liabilities; and

(m)          to make, execute, acknowledge and file
any and all documents or instruments necessary, convenient or incidental to the
accomplishment of the purpose of the LLC.

Section  2.6            Foreign Qualification. 
Prior to the LLC’s conducting business in any jurisdiction other than
Delaware, the LLC shall comply, to the extent procedures are available and
those matters are reasonably within the control of the LLC, with all
requirements necessary to qualify the LLC as a foreign limited liability company
in that jurisdiction.  At the request of
the Board or any Officer, each Unitholder shall execute, acknowledge, swear to
and deliver all certificates and other instruments conforming with this
Agreement that are necessary or appropriate to qualify, continue and terminate
the LLC as a foreign limited liability company in all such jurisdictions in
which the LLC may conduct business.

Section  2.7            Principal Office; Registered
Office.  The principal office of the LLC shall be
located at such place as the Board may from time to time designate, and all
business and activities of the LLC shall be deemed to have occurred at its
principal office.  The LLC may maintain
offices at such other place or places as the Board deems advisable.  Notification of any such change shall be
given to all Unitholders.  The registered
office of the LLC required by the Delaware Act to be maintained in the State of
Delaware shall be the office of the initial registered agent named in the
Certificate or such other office (which need not be a place of business of the
LLC) as the Board may designate from time to time in the manner provided by
law.  The registered agent of the LLC in
the State of Delaware shall be the initial registered agent named in the
Certificate or such other Person or Persons as the Board may designate from
time to time in the manner provided by law.

Section  2.8            Term. 
The term of the LLC commenced upon the filing of the Certificate in
accordance with the Delaware Act and shall continue in existence until
termination and dissolution thereof in accordance with the provisions of Article XIII.

 

12

 

Section  2.9            No State-Law Partnership. 
The Unitholders intend that the LLC not be a partnership (including,
without limitation, a limited partnership) or joint venture, and that no
Unitholder be a partner or joint venturer of any other Unitholder by virtue of
this Agreement (except for tax purposes as set forth in the next succeeding
sentence of this Section 2.9), and neither this Agreement nor any other
document entered into by the LLC or any Unitholder relating to the subject
matter hereof shall be construed to suggest otherwise.  The Unitholders intend that the LLC shall be
treated as a partnership for federal and, if applicable, state or local income
tax purposes, and that each Unitholder and the LLC shall file all tax returns
and shall otherwise take all tax and financial reporting positions in a manner
consistent with such treatment.  Without
the consent of the holders of the Required Interest, the LLC shall not make an
election to be treated as a corporation for federal income tax purposes
pursuant to Treasury Regulation 301.7701-3 (or any successor regulation or
provision) and, if applicable, state and local income tax purposes.

Section  2.10         No UBTI; Effectively Connected Income. 
The LLC shall not engage in any transaction which is reasonably likely
to cause GTCR or any of its limited partners which are exempt from income
taxation under Section 501(a) of the Code to recognize unrelated business
taxable income as defined in Section 512 and Section 514 of the
Code.  The LLC will use reasonable best
efforts not to engage in, or invest in any Person that is treated as a flow-through
entity for U.S. federal income tax purposes that engages in, (a) any
“commercial activity” as defined in Section 892(a)(2)(i) of the IRC or
(b) transactions which will cause the LLC to incur income that is
effectively connected with a “trade or business within the United States” as
defined in Section 864(b) of the IRC.

ARTICLE III

UNITS; CAPITAL ACCOUNTS

Section
3.1            Unitholders.

(a)           General.  Each Person named on Schedule A
attached hereto has made Capital Contributions to the LLC as set forth on Schedule A
in exchange for the Units specified thereon, and each Unitholder’s initial
Capital Account established pursuant to such Capital Contributions is set forth
on Schedule A.  Any reference in
this Agreement to Schedule A shall be deemed to be a reference to Schedule
A as amended and in effect from time to time.  The LLC and each Unitholder shall file all
tax returns, including any schedules thereto, in a manner consistent with such
initial Capital Accounts.  Each Person
listed on Schedule A upon (i) his, her or its execution of this
Agreement or a counterpart thereto and (ii) receipt (or deemed receipt) by
the LLC of such Person’s Capital Contribution as set forth on  Schedule A, is hereby admitted to
the LLC as a Unitholder of the LLC.  Each
Unitholder’s interest in the LLC, including such Unitholder’s interest in
Profits, Losses and Distributions of the LLC and the right to vote on certain
matters as provided in this Agreement, shall be represented by the Units owned
by such Unitholder.  The ownership of
Units shall entitle each Unitholder to allocations of Profits and Losses and
other items and distributions of cash and other property as set forth in Article
IV hereof.  The Board may in its
discretion issue certificates to the Unitholders representing the Units held by
each Unitholder.

 

13

 

(b)           Representations and Warranties of
Unitholders.  Each Unitholder hereby
represents and warrants to the LLC and acknowledges that:  (i) such Unitholder has knowledge and
experience in financial and business matters and is capable of evaluating the
merits and risks of an investment in the LLC and making an informed investment
decision with respect thereto; (ii) such Unitholder has reviewed and evaluated
all information necessary to assess the merits and risks of his, her or its
investment in the LLC and has had answered to such Unitholder’s satisfaction
any and all questions regarding such information; (iii) such Unitholder is able
to bear the economic and financial risk of an investment in the LLC for an
indefinite period of time; (iv) such Unitholder is acquiring interests in
the LLC for investment only and not with a view to, or for resale in connection
with, any distribution to the public or public offering thereof; (v) the
interests in the LLC have not been registered under the securities laws of any
jurisdiction and cannot be disposed of unless they are subsequently registered
and/or qualified under applicable securities laws and the provisions of this
Agreement have been complied with; (vi) to the extent applicable, the
execution, delivery and performance of this Agreement have been duly authorized
by such Unitholder and do not require such Unitholder to obtain any consent or
approval that has not been obtained and do not contravene or result in a
default under any provision of any law or regulation applicable to such
Unitholder or other governing documents or any agreement or instrument to which
such Unitholder is a party or by which such Unitholder is bound; (vii) the
determination of such Unitholder to purchase interests in the LLC has been made
by such Unitholder independent of any other Unitholder and independent of any
statements or opinions as to the advisability of such purchase, which may have
been made or given by any other Unitholder or by any agent or employee of any
other Unitholder; (viii) the interests in the LLC were not offered to such
Unitholder by means of general solicitation or general advertising; and (ix)
this Agreement is valid, binding and enforceable against such Unitholder in
accordance with its terms.

(c)           No Liability of Unitholders.

(i)            No Liability.  Except as otherwise required by applicable
law and as expressly set forth in this Agreement, no Unitholder shall have any
personal liability whatsoever in such Unitholder’s capacity as a Unitholder,
whether to the LLC, to any of the other Unitholders, to the creditors of the
LLC or to any other third party, for the debts, liabilities, commitments or any
other obligations of the LLC or for any losses of the LLC.  Each Unitholder shall be liable only to make
such Unitholder’s Capital Contribution to the LLC and the other payments
provided expressly herein.

(ii)           Distribution.  In accordance with the Delaware Act and the
laws of the State of Delaware, a Unitholder of a limited liability company may,
under certain circumstances, be required to return amounts previously
distributed to such Unitholder.  It is
the intent of the Unitholders that no distribution to any Unitholder pursuant
to Article IV hereof shall be deemed a return of money or other property
paid or distributed in violation of the Delaware Act.  The payment of any such money or distribution
of any such property to a Unitholder shall be deemed to be a compromise within
the meaning of the Delaware Act, and the Unitholder receiving any such money or
property shall not be required to return to any Person any such money or
property.  However, if any court of
competent jurisdiction holds that, notwithstanding 

 

14

 

the provisions of this Agreement, any Unitholder is
obligated to make any such payment, such obligation shall be the obligation of
such Unitholder and not of any other Unitholder.

Section
3.2            Unitholder Meetings.

(a)           Voting of Unitholders.  A quorum shall be present at a meeting of
Unitholders if the Unitholders holding the Required Interest are represented at
the meeting in person or by proxy.  With
respect to any matter, other than a matter for which the affirmative vote of
the holders of a specified portion of all Unitholders entitled to vote is
required by the Delaware Act or by this Agreement, the affirmative vote of the
Unitholders holding the Required Interest at a meeting of Unitholders at which
a quorum is present shall be the act of the Unitholders.

(b)           Place.  All meetings of the Unitholders shall be held
at the principal place of business of the LLC or at such other place within or
without the State of Delaware as shall be specified or fixed in the notices or
waivers of notice thereof; provided that any or all Unitholders may participate
in any such meeting by means of conference telephone or similar communications
equipment pursuant to Section 3.3(d).

(c)           Adjournment.  Notwithstanding the other provisions of the
Certificate or this Agreement, the chairman of the meeting or the Unitholders
holding the Required Interest shall have the power to adjourn such meeting from
time to time, without any notice other than announcement at the meeting of the
time and place of the holding of the adjourned meeting.  If such meeting is adjourned by the
Unitholders, such time and place shall be determined by a vote of the
Unitholders holding the Required Interest. 
Upon the resumption of such adjourned meeting, any business may be
transacted that might have been transacted at the meeting as originally called.

(d)           Meetings.  Meetings of the Unitholders for any proper
purpose or purposes may be called at any time by any member of the Board or the
Unitholders holding the Required Interest. 
If not otherwise stated in or fixed in accordance with the remaining
provisions hereof, the record date for determining Unitholders entitled to call
a meeting is the date any Unitholder first signs the notice of that
meeting.  Only business within the
purpose or purposes described in the notice (or waiver thereof) required by
this Agreement may be conducted at a meeting of the Unitholders.

(e)           Notice.  A written or printed notice stating the
place, day and hour of the meeting and, in the case of a special meeting, the
purpose or purposes for which the meeting is called, shall be delivered to each
Unitholder holding Common Units and to each other Unitholder entitled to vote
at such meeting not less than five or more than 30 days before the date of the
meeting, either personally, by mail or by facsimile, by or at the direction of
the Board or the Unitholders calling the meeting.  If mailed, any such notice shall be deemed to
be delivered when deposited in the United States mail, addressed to the
Unitholder at its address provided for in the LLC’s books and records, or to such
other address or to the attention of such other person as the recipient party
has specified by prior written notice to the sending party.

 

15

 

(f)            Record Date.  Unless otherwise determined by the Board, the
date on which notice of a meeting of Unitholders is mailed or the date on which
the resolution of the Board declaring a distribution is adopted, as the case
may be, shall be the record date for the determination of the Unitholders
entitled to notice of or to vote at such meeting (including any adjournment
thereof) or the Unitholders entitled to receive such distribution.

(g)           Required Interest.  Except as otherwise expressly provided for in
this Agreement, all matters to be voted on pursuant to this Agreement shall
require the vote of Unitholders holding the Required Interest, which vote shall
only be valid and binding if a notice of the meeting at which such vote is
taken is given in accordance with Section 3.2(e).

(h)           Proxies.  A Unitholder may vote either in person or by
proxy executed in writing by the Unitholder. 
A telegram, telex, cablegram or similar transmission by the Unitholder,
or a photographic, photostatic, facsimile or similar reproduction of a writing
executed by the Unitholder shall be treated as an execution in writing for
purposes of this Section 3.2(h). 
Proxies for use at any meeting of Unitholders or in connection with the
taking of any action by written consent pursuant to Section 3.3 shall be
filed with the Secretary of the LLC, before or at the time of the meeting or
execution of the written consent as the case may be.  All proxies shall be received and taken
charge of and all ballots shall be received and canvassed by the Secretary of
the LLC, who shall decide all questions concerning the qualification of voters,
the validity of the proxies and the acceptance or rejection of votes, unless an
inspector or inspectors shall have been appointed by the chairman of the
meeting, in which event such inspector or inspectors shall decide all such
questions.  No proxy shall be valid after
11 months from the date of its execution unless otherwise provided in the
proxy.  A proxy shall be revocable unless
the proxy form conspicuously states that the proxy is irrevocable and the proxy
is coupled with an interest.  Should a
proxy designate two or more Persons to act as proxies, unless that instrument
shall provide to the contrary, a majority of such Persons present at any
meeting at which their powers thereunder are to be exercised shall have and may
exercise all the powers of voting or giving consents thereby conferred, or if
only one be present, then such powers may be exercised by that one; or, if an
even number attend and a majority do not agree on any particular issue, the LLC
shall not be required to recognize such proxy with respect to such issue if
such proxy does not specify how the Units that are the subject of such proxy
are to be voted with respect to such issue.

(i)            Conduct of Unitholder Meetings.  All meetings of the Unitholders shall be presided
over by the chairman of the meeting, who shall be one of the Chairman or Vice
Chairman (or a representative thereof). 
The chairman of any meeting of Unitholders shall determine the order of
business and the procedure at the meeting, including such regulation of the
manner of voting and the conduct of discussion as seem to him in order.

(j)            Voting Rights.  Subject to the restrictions set forth in this
Agreement, in any matter submitted to the holders of Common Units for a vote,
each holder of Common Units shall be entitled to one vote for each Common Unit
owned.  In any matter submitted to the
holders of Class A Preferred Units for a vote, each holder of Class A Preferred
Units shall be entitled to one vote for each Class A Preferred Unit owned.  In any matter submitted to the holders of
Class B Preferred Units for a vote, each holder of Class B Preferred Units
shall be 

 

16

 

entitled to one vote for each Class B Preferred Unit
owned.  Except as otherwise required by
this Agreement or law, the Unitholders shall not have the right to vote on any
matter except to the extent provided in Sections 3.2(a) or (g)
hereof.

Section
3.3            Action of Unitholders by Written
Consent or Telephone Conference.

(a)           Written Consent in Lieu of Meeting.  Any action required or permitted to be taken
at any annual or special meeting of Unitholders may be taken without a meeting,
without prior notice and without a vote, if a consent or consents in writing,
setting forth the action so taken, shall be signed by the Unitholder or
Unitholders holding not less than the minimum percentages of Units that would
be necessary to take such action at a meeting at which all Unitholders entitled
to vote on the action were present and voted. 
Every written consent shall bear the date of signature of each
Unitholder who signs the consent.  No
written consent shall be effective to take the action that is the subject to
the consent unless, within 60 days after the date of the earliest dated consent
delivered to the LLC in the manner required by this Section 3.3(a), a
consent or consents signed by the Unitholder or Unitholders holding not less
than the minimum Units that would be necessary to take the action that is the
subject of the consent are delivered to the LLC by delivery to its registered
office, its principal place of business or the chief executive officer in each
case, in accordance with Section 15.15. 
Any such delivery to the LLC’s principal place of business shall be
addressed to the chief executive officer. 
A telegram, telex, cablegram or similar transmission by a Unitholder, or
a photographic, photostatic, facsimile or similar reproduction of a writing
signed by a Unitholder, shall be regarded as signed by the Unitholder for
purposes of this Section 3.3(a). 
Prompt notice of the taking of any action by Unitholders without a
meeting by less than unanimous written consent shall be given to those
Unitholders who did not consent in writing to the action.

(b)           Record Date for Written Consent in
Lieu of Meeting.  The record date for
determining Unitholders entitled to consent to action in writing without a
meeting shall be the first date on which a signed written consent setting forth
the action taken or proposed to be taken is delivered to the LLC by delivery to
its registered office, its principal place of business, or the chief executive
officer, in each case, in accordance with Section 15.15.  Any such delivery to the LLC’s principal
place of business shall be addressed to the chief executive officer.

(c)           Filings.  If any action by Unitholders is taken by
written consent, any certificate or documents filed with the Secretary of State
of Delaware as a result of the taking of the action shall state, in lieu of any
statement required by the Delaware Act concerning any vote of Unitholders, that
written consent has been given in accordance with the provisions of the
Delaware Act and that any written notice required by the Delaware Act has been
given.

(d)           Telephone Conference.  Unitholders may participate in and hold a
meeting by means of conference telephone or similar communications equipment by
means of which all Persons participating in the meeting can hear each other,
and participation in such meeting shall constitute attendance and presence in
person at such meeting, except where a Person 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.

 

17

 

Section  3.4            Issuance of Additional Units and
Interests.  Subject to compliance with the provisions of
this Agreement, the GTCR Purchase Agreement and the Securityholders Agreement,
the Board shall have the right to cause the LLC to issue or sell to any Person
(including Unitholders and Affiliates) any of the following (which for purposes
of this Agreement shall be “Additional Securities”):  (i) additional Units or other interests
in the LLC (including other classes or series thereof having different rights),
(ii) obligations, evidences of indebtedness, or other securities or
interests convertible or exchangeable into Units or other interests in the LLC,
and (iii) warrants, options, or other rights to purchase or otherwise
acquire Units or other interests in the LLC. 
Subject to the provisions of this Agreement, the Board shall determine
the terms and conditions governing the issuance of such Additional Securities,
including the number and designation of such Additional Securities, the
preference (with respect to distributions, liquidations, or otherwise) over any
other Units and any required or deemed contributions in connection
therewith.  Any Person who acquires Units
may be admitted to the LLC as a Unitholder pursuant to the terms of Section
11.2 hereof.  If any Person acquires
additional Units or other interests in the LLC or is admitted to the LLC as an
additional  Unitholder, Schedule A
shall be amended to reflect such additional issuance and/or Unitholder, as the
case may be.  Notwithstanding anything
herein to the contrary, Class A Preferred Units shall be reserved for issuance
in exchange for other Units pursuant to the terms of the Senior Management
Agreements, and such Class A Preferred Units may be issued only in exchange for
other Units pursuant to the terms of the Senior Management Agreements and under
no other circumstances.

Section  3.5            Incentive Units.  The
LLC may issue Class B Common Units to existing or new employees, officers,
directors, other service providers or consultants of the LLC or its
Subsidiaries (each, a “Management Unitholder”) pursuant to written agreements
approved by the Board (each such agreement, regardless of its actual title, as
amended, modified and waived from time to time in accordance with its terms, is
referred to herein as an “Incentive Unit Grant Agreement”).  The LLC may make the Class B Common Units and
any issuance thereof and any Incentive Unit Grant Agreement subject to the
terms and conditions of any equity or unit incentive plan, as the same may be
amended or modified from time to time in accordance with its terms, as may have
been adopted by the LLC or its Subsidiaries on or before the date of such
issuance or Incentive Unit Grant Agreement. 
On the date of each grant of Class B Common Units to a Management
Unitholder who is, or as a result of such grant becomes, a holder of Class B
Common Units pursuant to a grant made under an Incentive Unit Grant Agreement
or similar agreement, the Board shall establish an initial “Participation
Threshold” amount with respect to each Class B Common Unit granted on such
date.  Unless otherwise determined by the
Board, (i) the Participation Threshold with respect to a Class B Common Unit
shall be equal to or greater than the fair market value of a Class A Common
Unit on the date of grant of such Class B Common Unit and (ii) the purchase
price of each Class B Common Unit shall be $0.001.  The Board may designate a series number for
each subset of Class B Common Units consisting of Class B Common Units having
the same Participation Threshold, which Participation Threshold differs from
the Participation Thresholds of all Class B Common Units not included in such
subset.  If the Board elects to so
designate Class B Common Units, then the first Class B Common Unit issued on or
after the date hereof shall be designated a “Series 1 Class B Common
Unit.”  Each Class B Common Unit’s
Participation Threshold shall be adjusted after the grant of such Class B
Common Unit in the following manner:

 

18

 

(i)            In the event of any Distribution
pursuant to Section 4.1(a)(v), the Participation Threshold of each
Class B Common Unit outstanding at the time of such Distribution shall be
reduced (but not below zero) by the amount that each Class A Common Unit
receives in such Distribution (with such reduction occurring immediately after
the determination of the portion of such Distribution, if any, that such Class
B Common Unit is entitled to receive).

(ii)           In the event of any Capital
Contribution with respect to outstanding Class A Common Units, the
Participation Threshold of each Class B Common Unit outstanding at the time of
such Capital Contribution shall be increased by the amount contributed with
respect to each Class A Common Unit.

(iii)          If the LLC at any time subdivides (by
any Unit split or otherwise) the Class A Common Units into a greater number of
Units, the Participation Threshold of each Class B Common Unit outstanding
immediately prior to such subdivision shall be proportionately reduced, and if
the LLC at any time combines (by reverse Unit split or otherwise) the Class A
Common Units into a smaller number of Units, the Participation Threshold of
each Class B Common Unit outstanding immediately prior to such combination
shall be proportionately increased.

(iv)          No adjustment shall be made in
connection with (A) any redemption or repurchase by the LLC or any Unitholder
of any Units or (B) any Capital Contribution by any Unitholder in exchange for
newly issued Units.

(b)           The Participation Thresholds of each
Unitholder’s Class B Common Units shall be set forth on Schedule A, and Schedule
A shall be amended from time to time by the Company as necessary to reflect
any adjustments to the Participation Thresholds of outstanding Class B
Common Units required pursuant to this Section 3.5.

Section
3.6            Capital Accounts.

(a)           The LLC shall maintain a separate
Capital Account for each Unitholder according to the rules of Treasury
Regulation Section 1.704-1(b)(2)(iv). 
For this purpose, the LLC may (in the discretion of the Board), upon the
occurrence of the events specified in Treasury Regulation
Section 1.704-1(b)(2)(iv)(f), increase or decrease the Capital Accounts in
accordance with the rules of such regulation and Treasury Regulation
Section 1.704-1(b)(2)(iv)(g) to reflect a revaluation of LLC property.
Without limiting the foregoing, each Unitholder’s Capital Account shall be
adjusted:

(i)            by adding any additional Capital
Contributions made by such Unitholder in consideration for the issuance of
Units;

(ii)           by deducting any amounts paid to such
Unitholder in connection with the redemption or other repurchase by the LLC of
Units;

(iii)          by adding any Profits allocated in
favor of such Unitholder and subtracting any Losses allocated in favor of such
Unitholder; and

 

19

 

(iv)          by deducting any distributions paid in
cash or other assets to such Unitholder by the LLC.

(b)           For purposes of computing the amount
of any item of LLC income, gain, loss, or deduction to be allocated pursuant to
Article IV and to be reflected in the Capital Accounts, the
determination, recognition, and classification of any such item shall be the
same as its determination, recognition, and classification for federal income
tax purposes (including any method of depreciation, cost recovery, or
amortization used for this purpose); provided that:

(i)            The computation of all items of
income, gain, loss, and deduction shall include those items described in Code
Section 705(a)(l)(B) or Code Section 705(a)(2)(B) and Treasury Regulation
Section 1.704-1(b)(2)(iv)(i), without regard to the fact that such items are
not includable in gross income or are not deductible for federal income tax
purposes.

(ii)           If the Book Value of any LLC property
is adjusted pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(e) or
(f), the amount of such adjustment shall be taken into account as gain or loss
from the disposition of such property.

(iii)          Items of income, gain, loss, or
deduction attributable to the disposition of LLC property having a Book Value
that differs from its adjusted basis for tax purposes shall be computed by
reference to the Book Value of such property.

(iv)          Items of depreciation, amortization,
and other cost recovery deductions with respect to LLC property having a Book
Value that differs from its adjusted basis for tax purposes shall be computed
by reference to the property’s Book Value in accordance with Treasury
Regulation Section 1.704-1(b)(2)(iv)(g).

(v)           To the extent an adjustment to the
adjusted tax basis of any LLC asset pursuant to Code Sections 732(d), 734(b) or
743(b) is required, pursuant to Treasury Regulation Section 
1.704-1(b)(2)(iv)(m), 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).

Section  3.7            Negative Capital Accounts. 
No Unitholder shall be required to pay to any other Unitholder or the
LLC any deficit or negative balance which may exist from time to time in such
Unitholder’s Capital Account (including upon and after dissolution of the LLC).

Section  3.8            No Withdrawal. 
No Person shall be entitled to withdraw any part of such Person’s
Capital Contributions or Capital Account or to receive any Distribution from
the LLC, except as expressly provided herein or in the other agreements
referred to herein.

Section  3.9            Loans From Unitholders. 
Loans by Unitholders to the LLC shall not be considered Capital
Contributions.  If any Unitholder shall
loan funds to the LLC, the making of such loans shall not result in any
increase in the amount of the Capital Account of such Unitholder.  The amount of any such loans shall be a debt
of the LLC to such Unitholder and 

 

20

 

shall be payable or
collectible in accordance with the terms and conditions upon which such loans
are made.

ARTICLE IV

DISTRIBUTIONS; REDEMPTIONS

AND ALLOCATIONS

Section
4.1            Distributions.

(a)           Distributions Generally.  Except as otherwise set forth in this Section 4.1,
and subject to the provisions of Section 18-607 of the Delaware Act, the
Board may in its sole discretion make Distributions at any time or from time to
time.  All Distributions shall be made
only in the following order and priority:

(i)            First, to the Unitholders
holding Class A Preferred Units, an amount equal to the aggregate Class A
Preferred Unpaid Yield (in the proportion that each Unitholder’s share of Class
A Preferred Unpaid Yield bears to the aggregate Class A Preferred Unpaid Yield)
until each such Unitholder has received Distributions in respect of such
Unitholder’s Class A Preferred Units in an amount equal to the aggregate Class
A Preferred Unpaid Yield on such Unitholder’s outstanding Class A
Preferred Units as of the time of such Distribution, and no Distribution or any
portion thereof may be made pursuant to Sections 4.1(a)(ii) through (v)
below until the entire amount of the Class A Preferred Unpaid Yield on the
outstanding Class A Preferred Units as of the time of such Distribution has
been paid in full.

(ii)           Second, to the Unitholders
holding Class A Preferred Units, an amount equal to the aggregate Class A
Preferred Unreturned Capital with respect to such Units (in the proportion that
each Unitholder’s share of Class A Preferred Unreturned Capital with respect to
such Class A Preferred Units bears to the aggregate amount of Class A
Preferred Unreturned Capital with respect to all Class A Preferred Units) until
each such Unitholder has received Distributions in respect of such Unitholder’s
Class A Preferred Units in an amount equal to the aggregate Class A Preferred
Unreturned Capital with respect to such Unitholder’s Class A Preferred Units as
of the time of such Distribution, and no Distribution or any portion thereof
may be made pursuant to Sections 4.1(a)(iii) through (v) below
until the entire amount of Class A Preferred Unreturned Capital with respect to
the outstanding Class A Preferred Units as of the time of such Distribution has
been paid in full.

(iii)          Third, to the Unitholders
holding Class B Preferred Units, an amount equal to the aggregate Class B
Preferred Unpaid Yield (in the proportion that each Unitholder’s share of Class
B Preferred Unpaid Yield bears to the aggregate Class B Preferred Unpaid Yield)
until each such Unitholder has received Distributions in respect of such
Unitholder’s Class B Preferred Units in an amount equal to the aggregate Class
B Preferred Unpaid Yield on such Unitholder’s outstanding Class B Preferred
Units as of the time of such Distribution, and no Distribution or any portion
thereof may be made pursuant to Sections 4.1(a)(iv) or (v) below
until the entire amount of the Class B Preferred Unpaid Yield on the
outstanding Class B Preferred Units as of the time of such Distribution has
been paid in full.

 

21

 

(iv)          Fourth, to the Unitholders
holding Class B Preferred Units, an amount equal to the aggregate Class B
Preferred Unreturned Capital with respect to such Units (in the proportion that
each Unitholder’s share of Class B Preferred Unreturned Capital with respect to
such Class B Preferred Units bears to the aggregate amount of Class B
Preferred Unreturned Capital with respect to all Class B Preferred Units) until
each such Unitholder has received Distributions in respect of such Unitholder’s
Class B Preferred Units in an amount equal to the aggregate Class B Preferred
Unreturned Capital with respect to such Unitholder’s Class B Preferred Units as
of the time of such Distribution, and no Distribution or any portion thereof
may be made pursuant to Section 4.1(a)(v) below until the entire
amount of Class B Preferred Unreturned Capital with respect to the outstanding
Class B Preferred Units as of the time of such Distribution has been paid in
full.

(v)           Fifth, all remaining amounts
shall be distributed to the Unitholders holding Participating Common Units
immediately prior to such Distribution as follows:  with respect to each Class A Common Unit, an
amount equal to the amount determined by dividing the Grossed-Up Amount by the
number of Participating Common Units, and, with respect to each Participating
Class B Common Unit, an amount equal to the excess of the (A) the amount determined
by dividing the Grossed-Up Amount by the number of Participating Common Units
over (B) the Participation Threshold with respect to such Participating Class B
Common Unit.

(b)           Tax Distributions.  Notwithstanding any other provision herein to
the contrary, so long as the LLC is treated as a partnership for federal and
state income tax purposes, the LLC shall use its best efforts to distribute
within 15 days after the end of each Fiscal Quarter of the LLC, to the extent
that funds are legally available therefor and would not impair the liquidity of
the LLC with respect to working capital, capital expenditures, debt service,
reserves, or otherwise and would not be prohibited under any credit facility to
which the LLC or any Subsidiary is a party, an amount of cash (a “Tax
Distribution”) which in the good faith judgment of the Board equals the
excess, if any, of (i) the product of (x) the amount of taxable
income allocable to the Unitholders in respect of the period beginning on the
date hereof and ending at the close of such Fiscal Quarter, multiplied by
(y) the combined maximum federal, state, and local income tax rate to be
applied with respect to such taxable income (calculated by using the highest
maximum combined marginal federal, state, and local income tax rates to which
any Unitholder may be subject and taking into account the deductibility of
state income tax for federal income tax purposes) for such period (making an
appropriate adjustment for any rate changes that take place during such period)
over (ii) all prior distributions made pursuant to this subsection (b)
and subsection (a) above.  All Tax
Distributions shall be treated as an advance of Distributions for purposes of Section
4.1(a).

(c)           Special Distributions.

(i)            Public Offering.  The LLC shall provide to GTCR or, if GTCR no
longer holds the Required Interest, the holders of the Required Interest, at
least 30 days prior written notice of the effectiveness of a registration
statement with respect to the LLC’s initial Public Offering or a Subsidiary
Public Offering.  The LLC shall, at the
request of the holders of the Required Interest (by delivering a written
request to the LLC within 20 days after receiving notice from the LLC pursuant
to the immediately preceding sentence), distribute to the 

 

22

 

Unitholders, to the extent permitted by law and the
Delaware Act, the net cash proceeds received by the LLC from such Public
Offering or Subsidiary Public Offering or by such Subsidiary from such Subsidiary
Public Offering after deduction of all discounts, underwriters’ commissions and
other reasonable expenses in accordance with the provisions of Section
4.1(a) (whether or not the Board has approved such Distributions).  Such Distribution shall take place on a date
fixed by the LLC, which date shall be not more than five days after the LLC’s
receipt of such proceeds.  Any such
request by the holders of the Required Interest may be withdrawn at any time
and may be made contingent upon the consummation of such Public Offering or
Subsidiary Public Offering.

(ii)           Sale of the LLC.  If a Sale of the LLC has occurred or the LLC
obtains knowledge that a Sale of the LLC is proposed to occur, the LLC shall
give prompt written notice of such Sale of the LLC describing in reasonable
detail the material terms and date (or proposed date) of consummation thereof
to GTCR or, if GTCR does not hold the Required Interest, to the holders of the
Required Interest, but in any event such notice shall not be given later than
five days after the occurrence of such Sale of the LLC, and the LLC shall give
GTCR or any other holder of the Required Interest prompt written notice of any
material change in the terms or timing of such transaction.  The holders of the Required Interest may, upon
written request to the LLC within 20 days of their receipt from the LLC of the
notice contemplated by the prior sentence, require the LLC to distribute to the
Unitholders, to the extent permitted by law and the Delaware Act, the net cash
proceeds received by the LLC after deduction of reasonable expenses in
connection with such Sale of the LLC in accordance with the provisions of Section
4.1(a) (whether or not the Board has approved such Distributions but
subject to the power of the Board to apply such net proceeds towards repayment
of liabilities of the LLC or its Subsidiaries and/or to set aside reserves for
the same).  Any such request by the
holders of the Required Interest may be withdrawn at any time and may be made
contingent upon the consummation of such Sale of the LLC.  In the event of a conflict between this Section
4.1(c)(ii) and Section 5 of the Securityholders Agreement, Section
5 of the Securityholders Agreement shall control.

(d)           Persons Receiving Distributions.  Each Distribution shall be made to the
Persons shown on the LLC’s books and records as Unitholders as of the date of
such Distribution; provided, however, that any transferor and
transferee of Units may mutually agree as to which of them should receive
payment of any Distribution under Section 4.1.  In the event that restrictions on transfer or
change in beneficial ownership of Units set forth herein or in the
Securityholders Agreement have been breached, the LLC may withhold
distributions in respect of the affected Units until such breach has been
cured.

Section  4.2            Allocations. 
Except as otherwise provided in Section 4.3, Profits and Losses
for any Fiscal Year shall be allocated among the Unitholders in such a manner
that, as of the end of such Fiscal Year, the sum of (i) the Capital
Account of each Unitholder, (ii) such Unitholder’s share of Minimum Gain
(as determined according to Treasury Regulation Section 1.704-2(g)), and
(iii) such Unitholder’s partner nonrecourse debt minimum gain (as defined
in Treasury Regulation Section 1.704-2(i)(2)) shall be equal to the respective
net amounts, positive or negative, which would be distributed to them,
determined as if the LLC were to (i) liquidate 

 

23

 

the assets of the LLC for
an amount equal to their Book Value, and (ii) distribute the proceeds of
liquidation pursuant to Section 13.2.

Section
4.3            Special Allocations.

(a)           Losses attributable to partner
nonrecourse debt (as defined in Treasury Regulation Section 1.704-2(b)(4))
shall be allocated in the manner required by Treasury Regulation Section
1.704-2(i).  If there is a net decrease
during a Fiscal Year in partner nonrecourse debt minimum gain (as defined in
Treasury Regulation Section 1.704-2(i)(3)), Profits for such Fiscal year (and,
if necessary, for subsequent Fiscal Years) shall be allocated to the
Unitholders in the amounts and of such character as determined according to,
and subject to the exceptions contained in, Treasury Regulation Section
1.704-2(i)(4).

(b)           If there is a net decrease in Minimum
Gain during any Fiscal Year, each Unitholder shall be allocated Profits for
such Fiscal Year (and, if necessary, for subsequent Fiscal Years) in the
amounts and of such character as determined according to, and subject to the
exceptions contained in, Treasury Regulation Section 1.704-2(f).  This Section 4.3(b) is intended to be
a minimum gain chargeback provision that complies with the requirements of
Treasury Regulation Section 1.704-2(f), and shall be interpreted in a manner
consistent therewith.

(c)           If any Unitholder that unexpectedly
receives an adjustment, allocation, or distribution described in Treasury
Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6) has an Adjusted Capital
Account Deficit as of the end of any Taxable Year, computed after the
application of Sections 4.3(a) and 4.3(b) but before the
application of any other provision of this Article IV, then Profits for
such Taxable Year shall be allocated to such Unitholder in proportion to, and
to the extent of, such Adjusted Capital Account Deficit.  This Section 4.3(c) is intended to be
a qualified income offset provision as described in Treasury Regulation Section
1.704-1(b)(2)(ii)(d) and shall be interpreted in a manner consistent therewith.

(d)           Profits and Losses shall be allocated
in a manner consistent with the manner that the adjustments to the Capital
Accounts are required to be made pursuant to Treasury Regulation Section
1.704-1(b)(2)(iv)(j), (k), and (m).

(e)           The allocations set forth in Sections
4.3(a)-(d) (the “Regulatory Allocations”) are intended to comply
with certain requirements of Sections 1.704-1(b) and 1.704-2 of the Treasury
Regulations.  The Regulatory Allocations
may not be consistent with the manner in which the Unitholders intend to
allocate Profit and Loss of the LLC or make LLC distributions.  Accordingly, notwithstanding the other
provisions of this Article IV, but subject to the Regulatory
Allocations, income, gain, deduction, and loss shall be reallocated among the
Unitholders so as to eliminate the effect of the Regulatory Allocations and
thereby cause the respective Capital Accounts of the Unitholders to be in the
amounts (or as close thereto as possible) they would have been if Profit and
Loss (and such other items of income, gain, deduction, and loss) had been
allocated without reference to the Regulatory Allocations.  In general, the Unitholders anticipate that
this will be accomplished by specially allocating other Profit and Loss (and
such other items of income, gain, deduction, and loss) among the Unitholders so
that the net amount of the Regulatory Allocations and such special allocations
to each such Unitholder is zero.

 

24

 

Section
4.4            Tax Allocations.

(a)           The income, gains, losses, deductions,
and credits of the LLC will be allocated, for federal, state, and local income
tax purposes, among the Unitholders in accordance with the allocation of such
income, gains, losses, deductions, and credits among the Unitholders for
computing their Capital Accounts; except that, if any such allocation is not
permitted by the Code or other applicable law, then the LLC’s subsequent
income, gains, losses, deductions, and credits will be allocated among the
Unitholders so as to reflect as nearly as possible the allocation set forth
herein in computing their Capital Accounts.

(b)           Items of LLC taxable income, gain,
loss, and deduction with respect to any property contributed to the capital of
the LLC shall be allocated among the Unitholders in accordance with Code
Section 704(c) so as to take account of any variation between the adjusted
basis of such property to the LLC for federal income tax purposes and its Book
Value.

(c)           If the Book Value of any LLC asset is
adjusted pursuant to the requirements of Treasury Regulation Section
1.704-1(b)(2)(iv)(e) or (f) subsequent allocations of items of taxable 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 Book Value in the same manner as under Code Section 704(c).

(d)           Allocations of tax credits, tax
credit recapture, and any items related thereto shall be allocated to the
Unitholders according to their interests in such items as determined by the
Board taking into account the principles of Treasury Regulation
Section 1.704-1(b)(4)(ii).

(e)           Allocations pursuant to this Section 4.4
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 Unitholder’s
Capital Account or Unit of Profits, Losses, Distributions, or other LLC items
pursuant to any provision of this Agreement.

Section  4.5            Indemnification and Reimbursement
for Payments on Behalf of a Unitholder.  If the LLC is
required by law to make any payment that is specifically attributable to a
Unitholder or a Unitholder’s status as such (including federal withholding
taxes, state personal property taxes, and state unincorporated business taxes),
then such Unitholder shall indemnify the LLC in full for the entire amount paid
(including interest, penalties and related expenses).  The LLC may pursue and enforce all rights and
remedies it may have against each Unitholder under this Section 4.5,
including instituting a lawsuit to collect such indemnification and
contribution with interest calculated at a rate equal to 10% per annum,
compounded as of the last day of each year (but not in excess of the highest
rate per annum permitted by law).

Section  4.6            Transfer of Capital Accounts. 
If a Unitholder transfers an interest in the LLC to a new or existing
Unitholder, the transferee Unitholder shall succeed to that portion of the
transferor’s Capital Account that is attributable to the transferred
interest.  Any reference in this Agreement
to a Capital Contribution of, or Distribution to, a Unitholder that has
succeeded any other Unitholder shall include any Capital Contributions or
Distributions previously made by 

 

25

 

or to the former
Unitholder on account of the interest of such former Unitholder transferred to
such successor Unitholder.

Section  4.7            Certain Repurchases and
Redemptions.  Notwithstanding anything to the contrary in
this Agreement, the LLC may, at its option, exercise its repurchase or
redemption rights, if any, and fulfill its repurchase or redemption
obligations, if any to a holder of Units pursuant to this Agreement or any
Senior Management Agreement, in whole or in part, by distributing to such
holder securities issued by a Subsidiary of the LLC with a value equal to the
redemption or repurchase price of the Units of such holder to be redeemed or
repurchased; provided that, following such distribution the Subsidiary that
issued the distributed securities shall redeem or repurchase such securities
from such holder for an amount of cash equal to the aggregate redemption or
repurchase price of the Units of such holder to be redeemed or
repurchased.  The LLC and the holder
agree to treat any such distribution as a distribution of securities of the
Subsidiary under Code Section 731(a).

ARTICLE V

BOARD OF MANAGERS; OFFICERS

Section
5.1            Management by the Board of
Managers.

(a)           No Management by Unitholders.  The Unitholders shall not manage and control
the business and affairs of the LLC, except for situations in which the
approval of Unitholders is required by this Agreement or the GTCR Purchase
Agreement or by non-waivable provisions of applicable law.

(b)           Authority of Board of Managers.

(i)            Except for situations in which the
approval of the Common Unitholders is otherwise required and except as set
forth in Section 3 of the GTCR Purchase Agreement, subject to the provisions of
Section 5.1(b)(ii), (A) the powers of the LLC shall be exercised by
or under the authority of, and the business and affairs of the LLC shall be
managed under the direction of, the Board and (B) the Board may make all
decisions and take all actions for the LLC not otherwise provided for in this
Agreement, including the following:

(A)          entering into, making and performing
contracts, agreements and other undertakings binding the LLC that may be
necessary, appropriate or advisable in furtherance of the purposes of the LLC
and making all decisions and waivers thereunder;

(B)           maintaining the assets of the LLC in
good order;

(C)           collecting sums due the LLC;

(D)          opening and maintaining bank and
investment accounts and arrangements, drawing checks and other orders for the
payment of money and designating individuals with authority to sign or give
instructions with respect to those accounts and arrangements;

 

26

 

(E)           to the extent that funds of the LLC
are available therefor, paying debts and obligations of the LLC;

(F)           acquiring, utilizing for LLC purposes
and disposing of any asset of the LLC;

(G)           hiring and employing executives,
Officers, supervisors and other personnel;

(H)          selecting, removing and changing the
authority and responsibility of lawyers, accountants and other advisers and
consultants;

(I)            entering into guaranties on behalf
of the LLC’s Subsidiaries;

(J)            obtaining insurance for the LLC;

(K)          determining distributions of cash and
other property of the LLC as provided in Article IV;

(L)           establishing reserves for commitments
and obligations (contingent or otherwise) of the LLC; and

(M)         establishing a seal for the LLC.

(ii)           The Board may act (A) by resolutions
adopted at a meeting and by written consents pursuant to Section 5.3,
(B) by delegating power and authority to committees pursuant to Section 5.4,
and (C) by delegating power and authority to any Officer pursuant to Section
5.5(a).

(iii)          Each Unitholder acknowledges and
agrees that no Manager shall, as a result of being a Manager (as such), be
bound to devote all of his business time to the affairs of the LLC, and that he
and his Affiliates do and will continue to engage for their own account and for
the accounts of others in other business ventures.

(c)           Officers.  The management of the business and affairs of
the LLC by the Officers and the exercising of their powers shall be conducted
under the supervision of and subject to the approval of the Board.

Section
5.2            Composition and Election of
the Board of Managers.

(a)           Number and Designation.  The number of Managers on the Board shall be
initially established at three (3), but shall be increased to up to five (5)
(or such higher number as determined by GTCR from time to time) at such time as
one or more additional Managers are designated pursuant to clauses (i) or (iii)
below.  The Board shall at all times be
comprised of  the following
persons:

 

27

 

(i)            one (1) representative, or two (2)
representatives if elected by GTCR Fund VIII from time to time, designated by
GTCR Fund VIII, who shall initially be Philip A. Canfield and one
representative designated by GTCR Fund VIII/B, who initially shall be Craig A.
Bondy (collectively, the “Investor Managers”);

(ii)           the LLC’s chief executive officer,
who shall initially be Tony Aquila (the “Executive Manager”); and

(iii)          one (1) representative, or such higher
number as determined by GTCR from time to time, to be designated jointly by
GTCR and the LLC’s chief executive officer (collectively, the “Additional
Managers”); provided that no Additional Manager shall be a member of
the LLC’s management or an employee or officer of the LLC or its Subsidiaries; provided
further that if GTCR and the LLC’s chief executive officer are unable to agree
on an Additional Manager within 10 days after the date specified by GTCR for
electing such Additional Manager, then GTCR shall in its sole discretion,
designate the Additional Managers.

(b)           Term.  Members of the Board shall serve from their
designation in accordance with the terms hereof until their resignation, death
or removal in accordance with the terms hereof. 
Members of the Board need not be Unitholders and need not be residents
of the State of Delaware.  A person shall
become a member of the Board effective upon receipt by the LLC at its principal
place of business of a written notice addressed to the Board (or at such later
time or upon the happening of some other event specified in such notice) of
such person’s designation from the person or persons entitled to designate such
manager pursuant to Section 5.2(a) above.  A member of the Board may resign as such by
delivering his, her or its written resignation to the LLC at the LLC’s
principal office addressed to the Board. 
Such resignation shall be effective upon receipt unless it is specified
to be effective at some other time or upon the happening of some other event.

(c)           Removal.  If an Executive Manager ceases to be employed
by the LLC or its Subsidiaries, such Executive Manager shall be removed
promptly after such time from the Board and each committee thereof.  The removal from the Board or any of its
committees (with or without cause) of any Investor Manager or any Additional
Manager shall be upon (and only upon) the written request of GTCR.

(d)           Vacancies.  In the event that any designee under Section
5.2(a) for any reason ceases to serve as a member of the Board, (i) the
resulting vacancy on the Board shall be filled by a Person designated by the
person or persons originally entitled to designate such Manager pursuant to Section
5.2(a) above (provided that, if any party fails to designate a
person to fill a vacancy on the Board pursuant to the terms of this Section
5.2, such vacant managership shall remain vacant until such managership is
filled pursuant to this Section 5.2(d)), and (ii) such designee shall be
removed promptly after such time from each committee of the Board.

(e)           Reimbursement.  The LLC shall pay all reimbursable
out-of-pocket costs and expenses incurred by each member of the Board incurred
in the course of their service hereunder, including in connection with attending
regular and special meetings of the Board, any board of managers or board of
directors of each of the LLC’s Subsidiaries and/or any of their respective
committees.

 

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(f)            Compensation of Managers.  Except as approved by the holders of the
Required Interest, Managers shall receive no compensation for serving in such
capacity.

(g)           Reliance by Third Parties.  Any Person dealing with the LLC, other than a
Unitholder, may rely on the authority of the Board (or any Officer authorized
by the Board) in taking any action in the name of the LLC without inquiry into
the provisions of this Agreement or compliance herewith, regardless of whether
that action actually is taken in accordance with the provisions of this Agreement.  Every agreement, instrument or document
executed by the Board (or any Officer authorized by the Board) in the name of
the LLC with respect to any business or property of the LLC shall be conclusive
evidence in favor of any Person relying thereon or claiming thereunder that (i)
at the time of the execution or delivery thereof, this Agreement was in full
force and effect, (ii) such agreement, instrument or document was duly executed
according to this Agreement and is binding upon the LLC and (iii) the Board or
such Officer was duly authorized and empowered to execute and deliver such
agreement, instrument or document for and on behalf of the LLC.

(h)           Subsidiary Board of Managers or
Board of Directors.  The LLC shall at
all times, unless otherwise determined by the Board in its sole discretion,
cause the board of managers or board of directors of each of the LLC’s
Subsidiaries to be comprised of the same persons who are then Managers of the
Board pursuant to Section 5.2(a) above.

Section
5.3            Board Meetings and Actions
by Written Consent.

(a)           Quorum; Voting.  A majority of the total number of Managers
then serving on the Board (i.e., excluding any vacancies on the Board) must be
present (including for purposes of actions taken pursuant to Section 5.3(h))
in order to constitute a quorum for the transaction of business of the Board (provided
that a quorum must at all times include at least one Investor Manager), and
except as otherwise provided in this Agreement, the act of a majority of the
Managers present at a meeting of the Board at which a quorum is present shall
be the act of the Board.  When a quorum
is once present to commence a meeting of the Board, it is broken if less than
one Investor Manager shall no longer be present at such meeting and no further
business may be transacted at such meeting until such time as a quorum shall
again be present.  If a quorum shall not
be present during a meeting of the Board, the Managers present thereat may
adjourn the meeting from time to time, without notice other than announcement
at the meeting, until a quorum shall be present.  A Manager who is present at a meeting of the
Board at which action on any matter is taken shall be presumed to have assented
to the action unless his dissent shall be entered in the minutes of the meeting
or unless he shall file his written dissent to such action with the person
acting as secretary of the meeting before the adjournment thereof or shall
deliver such dissent to the LLC immediately after the adjournment of the
meeting.  Such right to dissent shall not
apply to a Manager who voted in favor of such action.

(b)           Place; Attendance.  Meetings of the Board may be held at such
place or places as shall be determined from time to time by resolution of the
Board.  At all meetings of the Board,
business shall be transacted in such order as shall from time to time be
determined by resolution of the Board. 
Attendance of a Manager at a meeting shall constitute a waiver of notice
of such meeting, except where a Manager attends a meeting for the express
purpose of objecting 

 

29

 

to the transaction of any business on the ground that
the meeting is not lawfully called or convened.

(c)           Meeting In Connection With
Unitholder Meeting.  In connection
with any meeting of Unitholders, the Managers may, if a quorum is present, hold
a meeting for the transaction of business immediately after and at the same
place as such meeting of the Unitholders. 
Notice of such meeting at such time and place shall not be required.

(d)           Time, Place and Notice.  Regular meetings of the Board shall be held
at such times and places as shall be designated from time to time by resolution
of the Board.  Notice of such meetings
shall not be required.

(e)           Special Meetings.  Special meetings of the Board may be called
by any Manager on at least 24 hours’ notice to each other Manager.  Such notice need not state the purpose or
purposes of, nor the business to be transacted at, such meeting, except as may
otherwise be required by law or provided for in this Agreement.

(f)            Chairman and Vice Chairman.  The Board shall designate one of the Managers
to serve as Chairman and a different Manager to serve as Vice Chairman.  The Chairman shall preside at all meetings of
the Board.  If the Chairman is absent at
any meeting of the Board, the Vice Chairman shall preside over such Board
meeting.  If the Chairman and Vice
Chairman are absent, the Managers present shall designate a member to serve as
interim chairman for that meeting. 
Neither the Chairman nor Vice Chairman, except in their capacity as an
Officer, shall have the authority or power to act for or on behalf of the LLC,
to do any act that would be binding on the LLC or to make any expenditure or
incur any obligation on behalf of the LLC or authorize any of the foregoing.

(g)           Board Meetings.  There shall be meetings of the Board from
time to time as requested by the holders of the Required Interest.

(h)           Action by Written Consent or
Telephone Conference.  Any action
permitted or required by the Delaware Act, the Certificate or this Agreement to
be taken at a meeting of the Board or any committee designated by the Board may
be taken without a meeting if a consent in writing, setting forth the action to
be taken, is signed by  all the
Managers or members of such committee, as the case may be.  Such consent shall have the same force and
effect as a unanimous vote at a meeting and may be stated as such in any
document or instrument filed with the Secretary of State of Delaware, and the
execution of such consent shall constitute attendance or presence in person at
a meeting of the Board or any such committee, as the case may be.  Subject to the requirements of the Delaware
Act, the Certificate or this Agreement for notice of meetings, unless otherwise
restricted by the Certificate, the Managers or members of any committee
designated by the Board may participate in and hold a meeting of the Board or
any committee, as the case may be, by means of a conference telephone or
similar communications equipment by means of which all persons participating in
the meeting can hear each other, and participation in such meeting shall
constitute attendance and presence in person at such meeting, except where a
person 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.

 

30

 

Section
5.4            Committees; Delegation of
Authority and Duties.

(a)           Committees; Generally.  The Board may, from time to time, designate
one or more committees, each of which shall include at least two (2) Investor
Managers.  Any such committee, to the
extent provided in the enabling resolution or in the Certificate or this
Agreement, shall have and may exercise all of the authority of the Board.  At every meeting of any such committee, the
presence of a majority of all the members thereof and at least one Investor
Manager shall constitute a quorum, and the affirmative vote of a majority of
the members present shall be necessary for the adoption of any resolution.  The Board may dissolve any committee at any
time, unless otherwise provided in the Certificate or this Agreement.

(b)           Audit Committee.  The Board may establish an audit committee to
select the LLC’s independent accountants and to review the annual audit of the
LLC’s financial statements conducted by such accountants.

(c)           Delegation; Generally.  The Board may, from time to time, delegate to
one or more Persons (including any Manager or Officer) such authority and
duties as the Board may deem advisable in addition to those powers and duties
set forth in Section 5.1(b) hereof. 
The Board also may assign titles (including chairman, chief executive
officer, president, vice president, secretary, assistant secretary, treasurer
and assistant treasurer) to any Manager, Unitholder or other individual and may
delegate to such Manager, Unitholder or other individual certain authority and
duties.  Any number of titles may be held
by the same Manager, Unitholder or other individual.  Any delegation pursuant to this Section
5.4(c) may be revoked at any time by the Board.

(d)           Third-party Reliance.  Any Person dealing with the LLC, other than a
Unitholder, may rely on the authority of any Officer in taking any action in
the name of the LLC without inquiry into the provisions of this Agreement or
compliance herewith, regardless of whether that action actually is taken in
accordance with the provisions of this Agreement.

Section
5.5            Officers.

(a)           Designation and Appointment.  The Board may (but need not), from time to
time, designate and appoint one or more persons as an Officer of the LLC.  No Officer need be a resident of the State of
Delaware, a Unitholder or a Manager.  Any
Officers so designated shall have such authority and perform such duties as the
Board may, from time to time, delegate to them. 
The Board may assign titles to particular Officers.  Unless the Board otherwise decides, if the
title is one commonly used for officers of a business corporation formed, the
assignment of such title shall constitute the delegation to such Officer of the
authority and duties that are normally associated with that office, subject to
(i) any specific delegation of authority and duties made to such Officer by
the Board pursuant to the third sentence of this Section 5.5(a) or
(ii) any delegation of authority and duties made to one or more Officers
pursuant to the terms of Section 5.4(c) and 5.5(c).  Each Officer shall hold office until such
Officer’s successor shall be duly designated and shall qualify or until such
Officer’s death  or until such Officer shall
resign or shall have been removed in the manner hereinafter provided.  Any number of offices may be held by the same
individual.  The salaries or other
compensation, if any, of the Officers and agents of the LLC shall be fixed from
time to time by the Board.

 

31

 

(b)           Resignation; Removal; Vacancies.  Any Officer (subject to any contract rights
available to the LLC, if applicable) may resign as such at any time. Such
resignation shall be made in writing and shall take effect at the time
specified therein, or if no time be specified, at the time of its receipt by
the Board.  The acceptance of a
resignation shall not be necessary to make it effective, unless expressly so
provided in the resignation.  Any Officer
may be removed as such, either with or without cause, by the Board in its
discretion at any time; provided, however, that such removal shall be
without prejudice to the contract rights, if any, of the individual so
removed.  Designation of an Officer shall
not of itself create contract rights. 
Any vacancy occurring in any office of the LLC may be filled by the
Board and shall remain vacant until filled by the Board.

(c)           Duties of Officers; Generally.  The Officers, in the performance of their
duties as such, shall owe to the Unitholders duties of loyalty and due care of
the type owed by the officers of a corporation to such corporation and its
stockholders under the laws of the State of Delaware.  The following Officers, to the extent such
Officers have been appointed by the Board, shall have the following duties:

(i)            Chief Executive Officer.  Subject to the powers of the Board, the chief
executive officer of the LLC shall be in the general and active charge of the
entire business and affairs of the LLC, and shall be its chief policy-making
Officer. Unless otherwise expressly provided in a Senior Management Agreement
approved by the Board, the president, chief financial officer and each other
senior officer of the LLC shall report directly to the chief executive
officer.  The chief executive officer
shall see that all orders and resolutions of the Board are carried into effect.  The chief executive officer shall have such
other powers and perform such other duties as may be prescribed by the Board.

(ii)           President. The president
shall, subject to the powers of the Board and the chief executive officer, be
the chief administrative officer of the LLC and shall have general charge of
the business, affairs and property of the LLC, and control over its Officers
(other than the chief executive officer), agents and employees.  The president shall see that all orders and
resolutions of the Board and the chief executive officer are carried into
effect.  He or she shall be responsible
for the employment of employees, agents and Officers (other than the chief
executive officer) as may be required for the conduct of the business and the
attainment of the objectives of the LLC. 
He or she shall have authority to suspend or to remove any employee,
agent or Officer (other than the chief executive officer) of the LLC and, in
the case of the suspension for cause of any such Officer, to recommend to the
Board what further action should be taken. 
In the absence of the president, his or duties shall be performed and
his or her authority may be exercised by the chief executive officer.  In the absence of the president and the chief
executive officer, the duties of the president shall be performed and his or
her authority may be exercised by such Officer as may have been designated as
the most senior officer of the LLC.  The
president shall have such other powers and perform such other duties as may be
prescribed by the chief executive officer or the Board.

(iii)          Chief Financial Officer.  The chief financial officer shall keep and
maintain, or cause to be kept and maintained, adequate and correct books and
records of accounts of the properties and business transactions of the LLC,
including accounts of its assets, 

 

32

 

liabilities, receipts, disbursements, gains, losses,
capital and Units.  The chief financial
officer shall have the custody of the funds and securities of the LLC, and
shall keep full and accurate accounts of receipts and disbursements in books
belonging to the LLC, and shall deposit all moneys and other valuable effects
in the name and to the credit of the LLC in such depositories as may be
designated by the Board.  The chief
financial officer shall have such other powers and perform such other duties as
may be prescribed by the chief executive officer or the Board.

(iv)          Vice President(s).  The vice president(s) shall perform such
duties and have such other powers as the chief executive officer, the
president, the chief financial officer or the Board may from time to time
prescribe, and may have such further denominations as “Executive Vice
President,” “Senior Vice President,” “Assistant Vice President,” and the like.

(v)           Secretary.

(A)          The secretary shall attend all
meetings of the Board and shall record all the proceedings of the meetings in a
book to be kept for that purpose, and shall perform like duties for the
standing committees of the Board when required.

(B)           The secretary shall keep all
documents as may be required under the Delaware Act or this Agreement.  The secretary shall perform such other duties
and have such other authority as may be prescribed elsewhere in this Agreement
or from time to time by the Board.  The
secretary shall have the general duties, powers and responsibilities of a
secretary of a corporation.

(C)           If the Board chooses to appoint an
assistant secretary or assistant secretaries, the assistant secretaries, in the
order of their seniority, in the absence, disability or inability to act of the
secretary, shall perform the duties and exercise the powers of the secretary,
and shall perform such other duties as the Board may from time to time
prescribe.

ARTICLE VI

GENERAL RIGHTS AND OBLIGATIONS OF UNITHOLDERS

Section  6.1            Limitation of Liability. 
Except as otherwise provided by applicable law, the debts, obligations,
and liabilities of the LLC, whether arising in contract, tort, or otherwise,
shall be solely the debts, obligations, and liabilities of the LLC, and no
Unitholder shall be obligated personally for any such debt, obligation, or
liability of the LLC solely by reason of being a Unitholder of the LLC; provided
that a Unitholder shall be required to return to the LLC any Distribution made
to it in clear and manifest accounting or similar error.  The immediately preceding sentence shall
constitute a compromise to which all Unitholders have consented within the
meaning of the Delaware Act. 
Notwithstanding anything contained herein to the contrary, the failure
of the LLC to observe any formalities or requirements relating to the exercise
of its powers or management of its business and affairs under this Agreement or
the Delaware Act shall not be grounds for imposing personal liability on the
Unitholders for liabilities of the LLC.

Section  6.2            Lack of Authority. 
No Unitholder in his, her, or its capacity as such (other than the
members of the Board acting as the Board or an authorized Officer of the LLC) 

 

33

 

has the authority or
power to act for or on behalf of the LLC in any manner, to do any act that
would be (or could be construed as) binding on the LLC or to make any
expenditures on behalf of the LLC, and the Unitholders hereby consent to the
exercise by the Board of the powers conferred on it by law and this Agreement.

Section  6.3            No Right of Partition. 
No Unitholder shall have the right to seek or obtain partition by court
decree or operation of law of any LLC property, or the right to own or use
particular or individual assets of the LLC.

Section  6.4            Unitholders Right to Act. 
For situations which the approval of any Unitholders or class thereof
(rather than the approval of the Board on behalf of the Unitholders) is
required, the Unitholders shall act through meetings and written consents as
described in Section 3.2.

Section  6.5            Conflicts of Interest. 
A Unitholder, its Affiliates and each of their respective stockholders,
directors, officers, controlling persons, partners and employees (collectively,
the “Unitholder Group”) may have business interests and engage in
business activities in addition to those relating to the LLC and its
Subsidiaries, except as any such Person may have otherwise agreed with the LLC
or any of its Subsidiaries in writing. 
Neither the LLC nor any Unitholder shall have any rights by virtue of
this Agreement in any business ventures of any such Person except for any
business interests or activities which any such Person has agreed in writing
with the LLC or any of its Subsidiaries to not pursue or consummate (whether
directly or indirectly), in which case all of such Person’s direct and indirect
interest in such business interests or activities shall become an asset of the
LLC and the LLC shall be entitled to all rights in such business interests or
activities and to all income or profits derived therefrom.  Any business opportunity generated by the
employees of the LLC or its Subsidiaries will remain the exclusive property of
the LLC until such time as (a) the LLC chooses not to pursue such business
opportunity or (b) the LLC can no longer reasonably expect to obtain the
requisite financing to execute such business opportunity.  In addition, to the maximum extent permitted
from time to time under the law of the State of Delaware, the LLC renounces any
interest or expectancy of the LLC in, or in being offered an opportunity to
participate in, business opportunities that are from time to time presented to
its officers, Managers or Unitholders, other than those officers, Managers or
Unitholders who are employees of the LLC and/or its Subsidiaries.  No amendment or repeal of this Section 6.5
shall apply to or have any effect on the liability or alleged liability of any
officer, Manager or Unitholder of the LLC for or with respect to any opportunities
of which such officer, Manager or Unitholder becomes aware prior to such
amendment or repeal.

Section  6.6            Transactions Between the LLC and
the Unitholders.  Notwithstanding that it may constitute a
conflict of interest, the Unitholders or their Affiliates may engage in any
transaction (including the purchase, sale, lease or exchange of any property or
rendering of any service or the establishment of any salary, other compensation
or other terms of employment) with the LLC so long as such transaction is
approved by the Board.

 

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ARTICLE VII

EXCULPATION AND INDEMNIFICATION

Section  7.1            Exculpation. 
No Officer or Manager shall be liable to any other Officer, Manager, the
LLC or to any Unitholder for any loss suffered by the LLC or any Unitholder
unless such loss is caused by such Person’s gross negligence, willful
misconduct, violation of law or material breach of this Agreement.  The Officers and Managers shall not be liable
for errors in judgment or for any acts or omissions that do not constitute
gross negligence, willful misconduct, violation of law or material breach of
this Agreement.  Any Officer or Manager
may consult with counsel and accountants in respect of LLC affairs, and
provided such Person acts in good faith reliance upon the advice or opinion of
such counsel or accountants, such Person shall not be liable for any loss
suffered by the LLC or any Unitholder in reliance thereon.

Section  7.2            Right to Indemnification. 
Subject to the limitations and conditions as provided in this Article
VII, each Person who was or is made a party or is threatened to be made a
party to or is involved in any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative, arbitrative (hereinafter a
“Proceeding”), or any appeal in such a Proceeding or any inquiry or
investigation that could lead to such a Proceeding, by reason of the fact that
he or she, or a Person of whom he or she is the legal representative, is or was
a Unitholder, Manager or Officer, or while a Unitholder, Manager or Officer is
or was serving at the request of the LLC as a manager, director, officer,
partner, venturer, proprietor, trustee, employee, agent or similar functionary
of another foreign or domestic limited liability company, corporation,
partnership, joint venture, sole proprietorship, trust, employee benefit plan
or other enterprise shall be indemnified by the LLC to the fullest extent
permitted by the Delaware Act, as the same exist or may hereafter be amended
(but, in the case of any such amendment, only to the extent that such amendment
permits the LLC to provide broader indemnification rights than said law
permitted the LLC to provide prior to such amendment) against judgments,
penalties (including excise and similar taxes and punitive damages), fines,
settlements and reasonable expenses (including attorneys’ fees) actually
incurred by such Person in connection with such Proceeding, and indemnification
under this Article VII shall continue as to a Person who has ceased to
serve in the capacity which initially entitled such Person to indemnity
hereunder.  The rights granted pursuant
to this Article VII shall be deemed contract rights, and no amendment,
modification or repeal of this Article VII shall have the effect of
limiting or denying any such rights with respect to actions taken or
Proceedings arising prior to any amendment, modification or repeal.  It is expressly acknowledged that the
indemnification provided in this Article VII could involve
indemnification for negligence or under theories of strict liability.

Section  7.3            Advance Payment. 
Reasonable expenses incurred by a Person of the type entitled to be
indemnified under Section 7.2 who was, is or is threatened to be made a
named defendant or respondent in a Proceeding shall be paid by the LLC in
advance of the final disposition of the Proceeding unless determined by the
Board in the specific case upon receipt of an undertaking by or on behalf of
such Person to repay such amount if it shall ultimately be determined that he
or she is not entitled to be indemnified by the LLC.

 

35

 

Section  7.4            Indemnification of Employees and
Agents.  The LLC, by adoption of a resolution of the
Board, may indemnify and advance expenses to an employee or agent of the LLC to
the same extent and subject to the same conditions under which it may indemnify
and advance expenses to Persons who are not or were not Managers or Officers
but who are or were serving at the request of the LLC as a manager, director,
officer, partner, venturer, proprietor, trustee, employee, agent or similar
functionary of another foreign or domestic limited liability company,
corporation, partnership, joint venture, sole proprietorship, trust, employee
benefit plan or other enterprise against any liability asserted against him and
incurred by him in such a capacity or arising out of his status as such a
Person to the same extent that it may indemnify and advance expenses to
Managers and Officers under this Article VII.

Section  7.5            Appearance as a Witness. 
Notwithstanding any other provision of this Article VII, the LLC
shall pay or reimburse reasonable out-of-pocket expenses incurred by a Manager
or Officer in connection with his appearance as a witness or other
participation in a Proceeding at a time when he is not a named defendant or
respondent in the Proceeding.

Section  7.6            Nonexclusivity of Rights. 
The right to indemnification and the advancement and payment of expenses
conferred in this Article VII shall not be exclusive of any other right
which a Manager, Officer or other Person indemnified pursuant to Section 7.2
may have or hereafter acquire under any law (common or statutory), provision of
the Certificate or this Agreement, agreement, vote of Unitholders or
disinterested Managers or otherwise.

Section  7.7            Insurance. 
The LLC may purchase and maintain insurance, or cause its Subsidiaries
to purchase and maintain insurance, at its or their expense, to protect itself
and any Person who is or was serving as a Manager, Officer or agent of the LLC
or is or was serving at the request of the LLC as a manager, director, officer,
partner, venturer, proprietor, trustee, employee, agent or similar functionary
of another foreign or domestic limited ability company, corporation,
partnership, joint venture, sole proprietorship, trust, employee benefit plan
or other enterprise against any expense, liability or loss, whether or not the
LLC would have the power to indemnify such Person against such expense,
liability or loss under this Article VII.

Section  7.8            Savings Clause. 
If this Article VII or any portion hereof shall be invalidated on
any ground by any court of competent jurisdiction, then the LLC shall
nevertheless indemnify and hold harmless each Manager, Officer or any other
Person indemnified pursuant to this Article VII as to costs, charges and
expenses (including attorneys’ fees), judgments, fines and amounts paid in
settlement with respect to any action, suit or proceeding, whether civil, criminal,
administrative or investigative to the full extent permitted by any applicable
portion of this Article VII that shall not have been invalidated and to
the fullest extent permitted by applicable law.

ARTICLE VIII

BOOKS, RECORDS, ACCOUNTING AND REPORTS

Section  8.1            Records and Accounting. 
The LLC shall keep, or cause to be kept, appropriate books and records
with respect to the LLC’s business, including all books and records necessary
to provide any information, lists, and copies of documents required to be 

 

36

 

provided pursuant to Section 8.3
or pursuant to applicable laws.  The unit
ledger for the LLC and any unit certificates held by the LLC, and the stock or
unit ledgers and equity certificates for each of its Subsidiaries, shall be
maintained at the Chicago offices of Kirkland & Ellis LLP, or at such other
place as directed by the holders of the Required Interest in writing from time
to time hereafter.  All matters
concerning (i) the determination of the relative amount of allocations and
distributions among the Unitholders pursuant to Articles III and IV
and (ii) accounting procedures and determinations, and other
determinations not specifically and expressly provided for by the terms of this
Agreement, shall be determined by the Board, whose determination shall be final
and conclusive as to all of the Unitholders absent manifest clerical error.

Section  8.2            Fiscal Year. 
The fiscal year (the “Fiscal Year”) of the LLC shall constitute
the 12-month period ending on December 31 of each calendar year, or such other
annual accounting period as may be established by the Board.

Section  8.3            Tax Information. 
The LLC shall use reasonable best efforts to deliver or cause to be
delivered, within 75 days after the end of each Fiscal Year, to each Person who
was a Unitholder at any time during such Fiscal Year all information regarding
the LLC necessary for the preparation of such Person’s United States federal
and state income tax returns.

Section  8.4            Transmission of Communications. 
Each Person that owns or controls Units on behalf of, or for the benefit
of, another Person or Persons shall be responsible for conveying any report,
notice, or other communication received from the Board to such other Person or
Persons.

Section  8.5            LLC Funds. 
The Board and Officers may not commingle the LLC’s funds with the funds
of any Unitholder or Manager.

ARTICLE IX

TAXES

Section  9.1            Tax Returns. 
The LLC shall prepare and file all necessary federal and state income
tax returns, including making the elections described in Section 9.2.  Each Unitholder shall furnish to the LLC all
pertinent information in its possession relating to LLC operations that is
necessary to enable the LLC’s income tax returns to be prepared and filed.

Section  9.2            Tax Elections. 
The LLC shall make any election the LLC may deem appropriate and in the
best interests of the Unitholders.

Section  9.3            Tax Matters Partner. GTCR LLC (or an Affiliate so designated
by GTCR LLC) shall be the “tax matters partner” of the LLC pursuant to Section
6231(a)(7) of the Code (the “Tax Matters Partner”).  The Tax Matters Partner shall take such
action as may be necessary to cause each other Unitholder to become a “notice
partner” within the meaning of Section 6223 of the Code.  The Tax Matters Partner shall inform each
other Unitholder of all significant matters that may come to its attention in
its capacity as Tax Matters Partner by giving notice thereof on or before the
fifth business day after becoming aware thereof and, within that time, shall
forward to each other Unitholder copies of all significant written
communications he 

 

37

 

may receive in that
capacity.  The Tax Matters Partner may
not take any action contemplated by Sections 6222 through 6232 of the Code
without the consent of the Board, but this sentence does not authorize the Tax
Matters Partner (or any Manager) to take any action left to the determination
of an individual Unitholder under Sections 6222 through 6232 of the Code.

ARTICLE X

TRANSFER OF LLC INTERESTS

Section
10.1         Transfers by Unitholders.

(a)           No Unitholder shall Transfer any
interest in any Units except in compliance with this Article X.  Except for Transfers made in compliance with
the Securityholders Agreement, the Senior Management Agreements and the
Registration Agreement, no Unitholder shall Transfer, or offer or agree to
Transfer, all or any part of any interest of such Person’s Units without the
prior written consent of the Board, which consent may be withheld in the
Board’s sole discretion. With the Board’s consent, a Unitholder may Transfer
all or any part of such Person’s Units, subject to compliance with this
Agreement (including, without limitation, Section 10.1(b)) and any
other agreement binding upon the Unitholders which restricts the Transfer of
Units (including, without limitation, the Securityholders Agreement and the
Senior Management Agreements).

(b)           Each transferee of Units or other
interest in the LLC shall, as a condition precedent to such Transfer, execute a
counterpart to this Agreement pursuant to which such transferee shall agree to
be bound by the provisions of this Agreement.

Section
10.2         Effect of Assignment.

(a)           Any Unitholder who shall assign any
Units or other interest in the LLC shall cease to be a Unitholder of the LLC
with respect to such Units or other interest and shall no longer have any
rights or privileges of a Unitholder with respect to such Units or other
interest.

(b)           Any Person who acquires in any manner
whatsoever any Units or other interest in the LLC, irrespective of whether such
Person has accepted and adopted in writing the terms and provisions of this
Agreement, shall be deemed by the acceptance of the benefits of the acquisition
thereof to have agreed to be subject to and bound by all of the terms and
conditions of this Agreement that any predecessor in such Units or other
interest in the LLC of such Person was subject to or by which such predecessor
was bound.

Section  10.3         Restriction on Transfer. 
In order to permit the LLC to qualify for the benefit of a “safe harbor”
under Code Section 7704, notwithstanding anything to the contrary in this
Agreement, no Transfer of any Unit or economic interest shall be permitted or
recognized by the LLC or the Board (within the meaning of Treasury Regulation
Section 1.7704-1(d)) if and to the extent that such Transfer would cause
the LLC to have more than 100 partners (within the meaning of Treasury
Regulation Section 1.7704-1(h), including the look-through rule in
Treasury Regulation Section 1.7704-1(h)(3)).

 

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Section  10.4         Transfer Fees and Expenses. 
The transferor and transferee of any Units or other interest in the LLC
shall be jointly and severally obligated to reimburse the LLC for all
reasonable expenses (including attorneys’ fees and expenses) of any Transfer or
proposed Transfer, whether or not consummated.

Section  10.5         Void Transfers. 
Any Transfer by any Unitholder of any Units or other interest in the LLC
in contravention of this Agreement (including, without limitation, the failure
of the transferee to execute a counterpart in accordance with Section
10.1(b)) or which would cause the LLC to not be treated as a partnership
for U.S. federal income tax purposes shall be void and ineffectual and shall
not bind or be recognized by the LLC or any other party.  No purported assignee shall have any right to
any profits, losses or distributions of the LLC.

ARTICLE XI

ADMISSION OF UNITHOLDERS

Section  11.1         Substituted Unitholders. 
In connection with the transfer of an LLC Interest of a Unitholder
permitted under the terms of this Agreement and the other Transaction
Documents, the transferee shall become a Substituted Unitholder on the effective
date of such Transfer, which effective date shall not be earlier than the date
of compliance with or waiver of the conditions to such Transfer (unless one of
the conditions to such Transfer is that Board or Unitholder consent is required
for the admission of such transferee, in which case such consent must first be
obtained), including executing counterparts of, and become a party to, this
Agreement and the other Transaction Documents to which the transferor
Unitholder was a party, and such admission shall be shown on the books and records
of the LLC.

Section  11.2         Additional Unitholders. 
A Person may be admitted to the LLC as an Additional Unitholder only as
contemplated under, and in compliance with, the terms of this Agreement,
including furnishing to the Board (a) a letter of acceptance, in form
satisfactory to the Board, of all the terms and conditions of this Agreement,
including the power of attorney granted in Section 15.1, and
(b) such other documents or instruments as may be necessary or appropriate
to effect such Person’s admission as a Unitholder (including counterparts or
joinders to all applicable Transaction Documents).  Such admission shall become effective on the
date on which the Board determines in its sole discretion that such conditions
have been satisfied and when any such admission is shown on the books and
records of the LLC.

Section  11.3         Optionholders. 
Except as set forth in this Agreement, no Person that holds securities
(including  options, warrants, or rights)
exercisable, exchangeable, or convertible into Units shall have any rights with
respect to such Units until such Person is actually issued Units upon such
exercise, exchange, or conversion and, if such Person is not then a Unitholder,
is admitted as a Unitholder pursuant to Section 11.2.

 

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ARTICLE XII

WITHDRAWAL AND RESIGNATION OF UNITHOLDERS

Section  12.1         Withdrawal and Resignation of
Unitholders.  No Unitholder shall have the power or right
to withdraw or otherwise resign or be expelled from the LLC prior to the
dissolution and winding up of the LLC pursuant to Article XII, except as
otherwise expressly permitted by this Agreement or any of the other agreements
contemplated hereby.  Notwithstanding
that payment on account of a withdrawal may be made after the effective time of
such withdrawal, any completely withdrawing Unitholder will not be considered a
Unitholder for any purpose after the effective time of such complete
withdrawal, and, in the case of a partial withdrawal, such Unitholder’s Capital
Account (and corresponding voting and other rights) shall be reduced for all
other purposes hereunder upon the effective time of such partial withdrawal.

Section  12.2         Withdrawal of a Unitholder. 
No Unitholder shall have the power or right to withdraw or otherwise
resign from the LLC except, simultaneous with the Transfer of all of a
Unitholder’s Units in a Transfer permitted by this Agreement and, if such
Transfer is to a person or entity that is not a Unitholder, the admission of
such person or entity as a Unitholder pursuant to Section 11.1.

ARTICLE XIII

DISSOLUTION AND LIQUIDATION

Section  13.1         Dissolution. 
The LLC shall not be dissolved by the admission of Additional
Unitholders or Substituted Unitholders, or by the death, retirement, expulsion,
bankruptcy or dissolution of a Unitholder. 
The LLC shall dissolve, and its affairs shall be wound up upon the first
to occur of the following:

(a)           at any time by the Board; or

(b)           the entry of a decree of judicial
dissolution of the LLC under Section 35-5 of the Delaware Act or an
administrative dissolution under Section 18-802 of the Delaware Act.

Except as
otherwise set forth in this Article XIII, the LLC is intended to have
perpetual existence.  An Event of
Withdrawal shall not cause a dissolution of the LLC and the LLC shall continue
in existence subject to the terms and conditions of this Agreement.

Section  13.2         Liquidation and Termination. 
On dissolution of the LLC, the Board shall act as liquidator or may
appoint one or more representatives or Unitholders as liquidator.  The liquidators shall proceed diligently to
wind up the affairs of the LLC, sell all or any portion of the LLC assets for
cash or cash equivalents as they deem appropriate, and make final distributions
as provided herein and in the Delaware Act. 
The costs of liquidation shall be borne as an LLC expense.  Until final distribution, the liquidators
shall continue to operate the LLC properties with all of the power and authority
of the Board.  The liquidators shall pay,
satisfy, or discharge from LLC funds all of the debts, liabilities, and
obligations of the LLC (including all expenses incurred in liquidation) or
otherwise make adequate provision for payment and 

 

40

 

discharge thereof
(including the establishment of a cash fund for contingent liabilities in such
amount and for such term as the liquidators may reasonably determine) and shall
promptly distribute the remaining assets to the holders of Units in accordance
with Section 4.1(a).  Any
non-cash assets will first be written up or down to their Fair Market Value,
thus creating Profit or Loss (if any), which shall be allocated in accordance
with Sections 4.2 and 4.3. 
In making such distributions, the liquidators shall allocate each type
of asset (i.e., cash, cash equivalents, securities, etc.) among the
Unitholders ratably based upon the aggregate amounts to be distributed with
respect to the Units held by each such holder. 
Any such distributions in kind shall be subject to (x) such conditions
relating to the disposition and management of such assets as the liquidators
deem reasonable and equitable and (y) the terms and conditions of any
agreement governing such assets (or the operation thereof or the holders
thereof) at such time.

The distribution of cash
and/or property to a Unitholder in accordance with the provisions of this Section
13.2 constitutes a complete return to the Unitholder of its Capital
Contributions and a complete distribution to the Unitholder of its interest in
the LLC and all the LLC’s property and constitutes a compromise to which all
Unitholders have consented within the meaning of the Delaware Act.  To the extent that a Unitholder returns funds
to the LLC, it has no claim against any other Unitholder for those funds.

Section  13.3         Cancellation of Certificate. 
On completion of the distribution of LLC assets as provided herein, the
LLC shall be terminated (and the LLC shall not be terminated prior to such
time), and the Board (or such other Person or Persons as the Delaware Act may
require or permit) shall file a certificate of cancellation with the Secretary
of State of Delaware, cancel any other filings made pursuant to this Agreement
that are or should be canceled, and take such other actions as may be necessary
to terminate the LLC.  The LLC shall be
deemed to continue in existence for all purposes of this Agreement until it is
terminated pursuant to this Section 13.3.

Section  13.4         Reasonable Time for Winding Up. 
A reasonable time shall be allowed for the orderly winding up of the
business and affairs of the LLC and the liquidation of its assets pursuant to Section 13.2
in order to minimize any losses otherwise attendant upon such winding up.

Section  13.5         Return of Capital. 
The liquidators shall not be personally liable for the return of Capital
Contributions or any portion thereof to the Unitholders (it being understood
that any such return shall be made solely from LLC assets).

Section
13.6         Reserves
Against Distributions.

  The Board shall have the right to withhold
from Distributions payable to any Unitholder under this Agreement amounts
sufficient to pay and discharge any reasonably anticipated contingent
liabilities of the LLC.  Any amounts
remaining after payment and discharge of any such contingent liabilities of the
LLC will be paid to the Unitholders from whom the Distributions were withheld.

 

41

 

ARTICLE XIV

VALUATION

Section  14.1         Determination. 
Subject to Section 14.2, the Fair Market Value of the assets of
the LLC or of a LLC Interest will be determined by the Board (or, if pursuant
to Section 13.2, the liquidators) in its good faith judgment in such
manner as its deems reasonable and using all factors, information and data
deemed to be pertinent.

Section  14.2         Fair Market Value. “Fair Market Value” of (i) a
specific LLC asset will mean the amount which the LLC would receive in an
all-cash sale of such asset (free and clear of all Liens and after payment of
all liabilities secured only by such asset) in an arms-length transaction with
an unaffiliated third party consummated on the day immediately preceding the
date on which the event occurred which necessitated the determination of the
Fair Market Value (and after giving effect to any transfer taxes payable in
connection with such sale); and (ii) the LLC will mean the amount which the LLC
would receive in an all-cash sale of all of its assets and businesses as a
going concern (free and clear of all Liens and after payment of indebtedness
for borrowed money) in an arms-length transaction with an unaffiliated third
party consummated on the day immediately preceding the date on which the event
occurred which necessitated the determination of the Fair Market Value
(assuming that all of the proceeds from such sale were paid directly to the LLC
other than an amount of such proceeds necessary to pay transfer taxes payable
in connection with such sale, which amount will not be received or deemed
received by the LLC). After a determination of the Fair Market Value of the LLC
is made as provided above, the Fair Market Value of a Unit will be determined
by making a calculation reflecting the cash distributions which would be made
to the Unitholders in accordance with this Agreement in respect of such Unit if
the LLC were deemed to have received such Fair Market Value in cash and then
distributed the same to the Unitholders in accordance with the terms of this
Agreement incident to the liquidation of the LLC after payment to all of the
LLC’s creditors from such cash receipts other than payments to creditors who
hold evidence of indebtedness for borrowed money, the payment of which is
already reflected in the calculation of the Fair Market Value of the LLC and
assuming that all of the convertible debt and other convertible securities were
repaid or converted (whichever yields more cash to the holders of such
convertible securities) and all options to acquire Units (whether or not
currently exercisable) that have an exercise price below the Fair Market Value
of such Units were exercised and the exercise price therefor paid. Except as
otherwise provided herein or in any agreement, document or instrument
contemplated hereby, any amount to be paid under this Agreement by reference to
the Fair Market Value shall be paid in full in cash, and any Unit being
transferred in exchange therefor will be transferred free and clear of all
Liens.

ARTICLE XV

GENERAL PROVISIONS

Section
15.1         Power of Attorney.

(a)           Each Unitholder hereby constitutes
and appoints each member of the Board and the liquidators, with full power of
substitution, as his true and lawful agent and 

 

42

 

attorney-in-fact, with full power and authority in his
or its name, place and stead, to execute, swear to, acknowledge, deliver, file,
and record in the appropriate public offices (i) this Agreement, all
certificates, and other instruments and all amendments (in the manner set forth
herein) thereof in accordance with the terms hereof which the Board deems
appropriate or necessary to form, qualify, or continue the qualification of,
the LLC as a limited liability company in the State of Delaware and in all
other jurisdictions in which the LLC may conduct business or own property;
(ii) all instruments which the Board deems appropriate or necessary to
reflect any amendment, change, modification, or restatement of this Agreement
in accordance with its terms; (iii) all conveyances and other instruments
or documents which the Board deems appropriate or necessary to reflect the
dissolution and liquidation of the LLC pursuant to the terms of this Agreement,
including a certificate of cancellation; and (iv) all instruments relating
to the admission, withdrawal, or substitution of any Unitholder pursuant to Article XI
and XII.

(b)           The foregoing power of attorney is
irrevocable and coupled with an interest, and shall survive the death,
disability, incapacity, dissolution, bankruptcy, insolvency, or termination of
any Unitholder and the Transfer of all or any portion of his or its LLC
Interest and shall extend to such Unitholder’s heirs, successors, assigns, and
personal representatives.

Section  15.2         Amendments. This Agreement may be amended from time
to time by a written instrument by the holders of the Required Interest; provided
that no amendment or modification pursuant to this Section 15.2 that
would adversely affect any class of Units or group of Unitholders in a manner
different than any other class of Units or group of Unitholders (as the case
may be) shall be effective against the holders of such class of Units or group
of Unitholders (as the case may be) without the prior written consent of
holders of at least a majority of Units of such class or group (as the case may
be) so adversely affected thereby (for purposes of this proviso, Class A Common
Units and Class B Common Units shall comprise the same class of Units and the
holders of Class A Common Units and Class B Common Units shall comprise the
same group of Unitholders); provided further that no amendment or
modification pursuant to this Section 15.2 that would affect the rights
of a Unitholder or group of Unitholders specifically granted such rights by
name shall be modified without that Unitholder’s (or a majority of that group
of Unitholders’) consent.

Section  15.3         Title to LLC Assets. 
LLC assets shall be deemed to be owned by the LLC as an entity, and no
Unitholder, individually or collectively, shall have any ownership interest in
such LLC assets or any portion thereof. 
Legal title to any or all LLC assets may be held in the name of the LLC
or one or more nominees, as the Board may determine.  The Board hereby declares and warrants that
any LLC assets for which legal title is held in its name or the name of any
nominee shall be held in trust by the Board or such nominee for the use and
benefit of the LLC in accordance with the provisions of this Agreement.  All LLC assets shall be recorded as the
property of the LLC on its books and records, irrespective of the name in which
legal title to such LLC assets is held.

Section  15.4         Remedies. 
Each Unitholder and the LLC shall have all rights and remedies set forth
in this Agreement and all rights and remedies which such Person has been
granted at any time under any other agreement or contract and all of the rights
which such Person has under any law.  Any
Person having any rights under any provision of this Agreement or any 

 

43

 

other agreements
contemplated hereby shall be entitled to enforce such rights specifically
(without posting a bond or other security), to recover damages by reason of any
breach of any provision of this Agreement and to exercise all other rights
granted by law.

Section  15.5         Successors and Assigns. 
All covenants and agreements contained in this Agreement shall bind and
inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, successors, legal representatives, and permitted
assigns, whether so expressed or not.

Section  15.6         Severability. 
Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal, or unenforceable in
any respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality, or unenforceability will not affect any other provision or the
effectiveness or validity of any provision in any other jurisdiction, and this
Agreement will be reformed, construed, and enforced in such jurisdiction as if
such invalid, illegal, or unenforceable provision had never been contained
herein.

Section  15.7         Incorporation of the LLC. 
The Board may, in order to facilitate a public offering of securities of
the LLC, or for other reasons that the Board deems in the best interests of the
LLC, cause the LLC to incorporate its business, or any portion thereof,
including by (i)  the transfer of all of the assets of the LLC, subject to
the LLC’s liabilities, or the transfer of any portion of such assets and
liabilities, to one or more corporations in exchange for shares of such
corporation(s) and the subsequent distribution of such shares, at such time as
the Board may determine, to the Unitholders on a pro rata basis, (ii) conversion of the LLC into a corporation
pursuant to 6 Del. C. §18-216 (or any successor section thereto) or (iii) Transfer by
each Unitholder of Units held by such Unitholder to one or more corporations in
exchange for shares of such corporation(s) (including by merger of the LLC into
a corporation) and, in connection therewith, each Unitholder agrees to the
Transfer of its Units in accordance with the terms of exchange as provided by
the Board and further agrees that as of the effective date of such exchange any
Unit outstanding thereafter which shall not have been tendered for exchange
shall represent only the right to receive a certificate representing the number
of shares of such corporation(s) as provided in the terms of such
exchange.  In connection with any such
reorganization or exchange as provided above, each Unitholder of a particular
class shall receive the same form of securities and the same amount of
securities per Unit of such class and if any holders of a class of Units are
given an option as to the form and amount of securities to be received, each
holder of such class of Units shall be given the same option.  The LLC shall pay any and all organizational,
legal and accounting expenses and filing fees incurred in connection with such
incorporation transaction, including, without limitation, any fees related to a
filing under the Hart-Scott-Rodino Anti-Trust Improvements
Act of 1976, as amended, if applicable.

Section  15.8         Opt-in to Article 8 of the Uniform
Commercial Code.  The Unitholders hereby agree that the Units
shall be securities governed by Article 8 of the Uniform Commercial Code
of the State of Delaware (and the Uniform Commercial Code of any other
applicable jurisdiction).

 

44

 

Section  15.9         Notice to Unitholder of Provisions. 
By executing this Agreement, each Unitholder acknowledges that it has
actual notice of (a) all of the provisions hereof (including the
restrictions on the transfer set forth herein), and (b) all of the
provisions of the Certificate.

Section  15.10       Counterparts. 
This Agreement may be executed in multiple counterparts with the same
effect as if all signing parties had signed the same document.  All counterparts shall be construed together
and constitute the same instrument.

Section  15.11       Consent to Jurisdiction. 
Each Unitholder irrevocably submits to the nonexclusive jurisdiction of
the United States District Court for the State of Delaware and the state courts
of the State of Delaware for the purposes of any suit, action or other
proceeding arising out of this Agreement or any transaction contemplated
hereby.  Each Unitholder further agrees
that service of any process, summons, notice or document by United States
certified or registered mail to such Unitholder’s respective address set forth
in the LLC’s books and records or such other address or to the attention of
such other person as the recipient party has specified by prior written notice
to the sending party shall be effective service of process in any action, suit
or proceeding in Delaware with respect to any matters to which it has submitted
to jurisdiction as set forth above in the immediately preceding sentence.  Each Unitholder irrevocably and
unconditionally waives any objection to the laying of venue of any action, suit
or proceeding arising out of this Agreement or the transactions contemplated
hereby in the United States District Court for the State of Delaware or the
state courts of the State of Delaware and hereby irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that
any such action, suit or proceeding brought in such court has been brought in
an inconvenient forum.

Section  15.12       Descriptive Headings; Interpretation. 
The descriptive headings of this Agreement are inserted for convenience
only and do not constitute a substantive part of this Agreement.  Whenever required by the context, 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.  The use of
the word “including” in this Agreement shall be by way of example rather than
by limitation.  Reference to any
agreement, document, or instrument means such agreement, document, or
instrument as amended or otherwise modified from time to time in accordance
with the terms thereof, and, if applicable, hereof.  Without limiting the generality of the
immediately preceding sentence, no amendment or other modification to any
agreement, document, or instrument that requires the consent of any Person
pursuant to the terms of this Agreement or any other agreement will be given
effect hereunder unless such Person has consented in writing to such amendment
or modification.  Wherever required by
the context, references to a Fiscal Year shall refer to a portion thereof.  The use of the words “or,” “either,” and
“any” shall not be exclusive.  The
parties hereto have participated jointly in the negotiation and drafting of
this Agreement.  In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any of the provisions of this Agreement.  Wherever a conflict exists between this
Agreement and any other agreement, this Agreement shall control but solely to
the extent of such conflict.

 

45

 

Section  15.13       Applicable Law. 
This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Delaware, without giving effect to any choice of law
or conflict of law rules or provisions (whether of the State of Delaware or any
other jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Delaware.

Section  15.14       Mutual Waiver of Jury Trial. 
Because disputes arising in connection with complex transactions are
most quickly and economically resolved by an experienced and expert person and
the parties wish applicable state and federal laws to apply (rather than
arbitration rules), the parties desire that their disputes be resolved by a
judge applying such applicable laws. 
Therefore, to achieve the best combination of the benefits of the
judicial system and of arbitration, each party to this agreement (including the
LLC) hereby waives all rights to trial by jury in any action, suit, or
proceeding brought to resolve any dispute between or among any of the parties
hereto, whether arising in contract, tort, or otherwise, arising out of,
connected with, related or incidental to this agreement, the transactions
contemplated hereby and/or the relationships established among the parties
hereunder.

Section  15.15       Addresses and Notices. 
All notices, demands, or other communications to be given or delivered
under or by reason of the provisions of this Agreement shall be in writing and
shall be deemed to have been given or made when (a) delivered personally to the
recipient, (b) telecopied to the recipient (with hard copy sent to the
recipient by reputable overnight courier service (charges prepaid) that same
day) if telecopied before 5:00 p.m. Chicago, Illinois time on a business day,
and otherwise on the next business day, or (c) one business day after
being sent to the recipient by reputable overnight courier service (charges
prepaid).  Such notices, demands, and
other communications shall be sent to the address for such recipient set forth
in the LLC’s books and records, or to such other address or to the attention of
such other person as the recipient party has specified by prior written notice
to the sending party.  Any notice to the
Board or the LLC shall be deemed given if received by the Board at the
principal office of the LLC designated pursuant to Section 2.5.

Section  15.16       Creditors. 
None of the provisions of this Agreement shall be for the benefit of or
enforceable by any creditors of the LLC or any of its Affiliates, and no
creditor who makes a loan to the LLC or any of its Affiliates may have or
acquire (except pursuant to the terms of a separate agreement executed by the
LLC in favor of such creditor) at any time as a result of making the loan any
direct or indirect interest in LLC Profits, Losses, Distributions, capital, or
property other than as a secured creditor.

Section  15.17       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.  Notwithstanding the other provisions of this
Agreement, Section 18-305(a) of the Delaware Act shall not apply to the
LLC and no Member shall have any rights thereunder.

Section  15.18       Further Action. 
The parties shall execute and deliver all documents, provide all
information, and take or refrain from taking such actions as may be necessary
or appropriate to achieve the purposes of this Agreement.

 

46

 

Section  15.19       Offset. 
Whenever the LLC is to pay any sum to any Unitholder or any Affiliate or
related person thereof, any amounts that such Unitholder or such Affiliate or
related person owes to the LLC may be deducted from that sum before payment.

Section  15.20       Entire Agreement. 
This Agreement, those documents expressly referred to herein, the other
documents of even date herewith, and the other Transaction Documents embody the
complete agreement and understanding among the parties and supersede and
preempt any prior understandings, agreements, or representations by or among
the parties, written or oral, which may have related to the subject matter
hereof in any way.

Section  15.21       Delivery by Facsimile. 
This Agreement, the agreements referred to herein, and each other
agreement or instrument entered into in connection herewith or therewith or
contemplated hereby or thereby, and any amendments hereto or thereto, to the
extent signed and delivered by means of a facsimile machine, shall be treated in
all manner and respects as an original agreement or instrument and shall be
considered to have the same binding legal effect as if it were the original
signed version thereof delivered in person. 
At the request of any party hereto or to any such agreement or
instrument, each other party hereto or thereto shall reexecute original forms
thereof and deliver them to all other parties. 
No party hereto or to any such agreement or instrument shall raise the
use of a facsimile machine to deliver a signature or the fact that any
signature or agreement or instrument was transmitted or communicated through
the use of a facsimile machine as a defense to the formation or enforceability
of a contract and each such party forever waives any such defense.

Section  15.22       Survival. Sections 4.5, 6.1, 7.1,
7.2 and 7.3 shall survive and continue in full force in accordance with
its terms notwithstanding any termination of this Agreement or the dissolution
of the LLC.

*          *          *          *          *

 

47

 

IN WITNESS WHEREOF, the
undersigned have executed or caused to be executed on their behalf this Limited
Liability Company Agreement as of the date first above written.

	
   

  	
  SOLERA
  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  
	
   

  	
  Name:

  	
  Tony Aquila

  
	
   

  	
  Its:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR
  FUND VIII, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Partners
  VIII, L.P.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Golder
  Rauner II, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip A.
  Canfield

  
	
   

  	
  Name:

  	
  Philip A.
  Canfield

  
	
   

  	
  Its:

  	
  Principal

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR
  FUND VIII/B, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Partners
  VIII, L.P.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Golder
  Rauner II, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip A.
  Canfield

  
	
   

  	
  Name:

  	
  Philip A.
  Canfield

  
	
   

  	
  Its:

  	
  Principal

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR
  CO-INVEST II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Golder
  Rauner II, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip A.
  Canfield

  
	
   

  	
  Name:

  	
  Philip A.
  Canfield

  
	
   

  	
  Its:

  	
  Principal

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Tony Aquila

  
	
   

  	
  TONY
  AQUILA

  
	
   

  	
   

  	
   

  

 

 

Signature Page to Limited Liability Company
Agreement of Solera Holdings, LLC

 

48Exhibit 10.10

 

 

UNIT
PURCHASE AGREEMENT

 

THIS UNIT PURCHASE AGREEMENT
(this “Agreement”) is made as of April 1, 2005, by and among Solera
Holdings, LLC, a Delaware limited liability company (the “Company”),
GTCR Fund VIII, L.P., a Delaware limited partnership (“Fund VIII”), GTCR
Fund VIII/B, L.P., a Delaware limited partnership (“Fund VIII/B”), and
GTCR Co-Invest II, L.P., a Delaware limited partnership (“GTCR Co-Invest”).
Each of Fund VIII, Fund VIII/B and GTCR Co-Invest, together with any investment
fund managed by GTCR Golder Rauner, L.L.C., a Delaware limited liability
company (“GTCR I”), or GTCR Golder Rauner II, L.L.C., a Delaware limited
liability company (“GTCR II”), that at any time executes a counterpart
of this Agreement or otherwise agrees to be bound by this Agreement shall be
referred to herein as an “Investor” and, collectively as the “Investors.”  Except as otherwise indicated herein,
capitalized terms used herein are defined in Section 6 hereof.

 

The parties hereto agree as follows:

 

Section  1.              Authorization and
Closing.

 

1A.          Authorization of the
Securities. The Company shall authorize the issuance and sale to the
Investors of up to 96,000  of its
Class B Preferred Units (as defined in the LLC Agreement (as defined below))
(the “Class B Preferred Units”), and 40,000,000 of its Class A
Common Units (as defined in the LLC Agreement) (the “Class A Common Units”),
each having the rights and preferences set forth in Exhibit B attached
hereto. The Class B Preferred Units and the Class A Common Units are
collectively referred to herein as the “Securities.”

 

1B.          Purchase and Sale of
the Securities.

 

(a)           Initial
Closing. At the Initial Closing (as defined below), the Company shall sell
to the Investors and, subject to the terms and conditions set forth herein, the
Investors shall purchase from the Company, an aggregate of 40,000,000 Class A
Common Units at a price of $0.10 per unit and an aggregate of 1,000 Class B
Preferred Units at a price of $1,000.00 per unit. Each Investor shall purchase
the percentage of such Securities set forth next to such Investor’s name on the
Schedule of Investors attached hereto by payment of the aggregate
purchase price thereof by wire transfer of immediately available funds to such
account as is designated by the Company. The initial closing of the purchase
and sale of the Class A Common Units (the “Initial Closing”) shall take
place at the offices of Kirkland & Ellis LLP, 200 East Randolph Drive,
Chicago, Illinois 60601 at 10:00 a.m. on the date hereof. The proceeds of the Securities
sold to the Investors at the Initial Closing may be used by the Company and
Solera, Inc., a Delaware corporation (“Solera, Inc.”), for organic
growth and for general company purposes but shall not, without the prior
written consent of the Investors, be used by the Company or Solera, Inc. for
acquisitions or to fund the expenses of any businesses acquired by the Company.

 

(b)           The
Company has been organized for the purpose of building a business in the
insurance claims processing, analytics and outsourcing industry (the “Industry”)
through acquisitions and organic growth. In addition to the $5,000,000.00
invested by the Investors on the Initial Closing Date pursuant to Section
1B(a) above,  the Investors may
provide up to

 

1

 

$95,000,000.00 in additional equity financing to the
Company as the equity portion of the debt and equity financing necessary to
fund acquisitions, which are (i) approved by the Board of Managers of the
Company (the “Board”) and the Investors (an “Approved Acquisition”),
(ii) in the Industry or are synergistic with or otherwise complementary to the
business of the Company or its Subsidiaries in the Industry and (iii) generally
consistent with the characteristics for acquisitions set forth on the Schedule
of Acquisition Characteristics attached to this Agreement. The Investors’
obligation to purchase any Securities pursuant to this Section 1B will
be further conditioned on the Company’s not being in default under any of its
material agreements, adequate debt financing being available to fund any
Approved Acquisition on terms satisfactory to the Investors, and the Company’s
operations and the Approved Acquisition being satisfactory to the Investors. In
order to implement the foregoing, the Investors may purchase from time to time
after the Initial Closing, upon the written request of the Board in connection
with an Approved Acquisition, up to an aggregate of 95,000  Class B Preferred Units at a price of
$1,000.00 per unit (the amounts set forth in this sentence as adjusted from
time to time as a result of unit dividends, unit splits, recapitalizations and
similar events) (each such purchase, a “Subsequent Closing”). Each
Subsequent Closing shall take place at the offices of Kirkland & Ellis LLP,
200 East Randolph Drive, Chicago, Illinois 60601 at 10:00 a.m. on such date as
may be mutually agreeable to the Company and the Investors. At the time of any
Subsequent Closing, the Investors shall be entitled to receive, and the Company
shall be obligated to deliver, satisfactory representations and warranties and
all other information and documentation as the Investors may reasonably request.
This Section 1(B)(b) shall terminate upon the first to occur of a
consummation of a Sale of the Company (as defined in the Securityholders
Agreement) and a Public Offering.

 

Section  2.              Conditions of the
Investors’ Obligation at the Initial Closing and each Subsequent Closing. The
obligation of each Investor to purchase and pay for the Securities to be
purchased by it at the Initial Closing is subject to the satisfaction as of the
Initial Closing of the following conditions (other than Section 2N) and
the obligation of each Investor to purchase and pay for the Securities to be
purchased by it at each Subsequent Closing is subject to the satisfaction as of
such Subsequent Closing of the conditions set forth in Section 2N:

 

2A.          Representations and
Warranties; Covenants. The representations and warranties contained in Section
5 hereof shall be true and correct at and as of the Initial Closing as
though then made, except to the extent of changes caused by the transactions
expressly contemplated herein, and the Company shall have performed in all
material respects all of the covenants required to be performed by it hereunder
prior to the Initial Closing.

 

2B.          Certificate of
Formation. The Company’s certificate of formation (the “Certificate of
Formation”) shall include the provisions set forth in Exhibit A
attached hereto, shall be in full force and effect under the laws of Delaware
as of the Initial Closing and shall not have been amended or modified.

 

2C.          Limited Liability
Company Agreement. The Company and the members of the Company shall have
entered into a Limited Liability Company Agreement in form and substance substantially
similar to Exhibit B attached hereto (the “LLC Agreement”), and
the LLC Agreement shall be in full force and effect as of the Initial Closing.

 

2

 

2D.          Initial Senior
Management Agreement. The Company and, as appropriate, one or more of its
subsidiaries shall have entered into a Senior Management Agreement (the “Initial
Senior Management Agreement”), in form and substance substantially similar
to Exhibit C attached hereto, with Tony Aquila (“Executive”). The
Initial Senior Management Agreement shall not have been amended or modified and
shall be in full force and effect as of the Initial Closing, and Executive
shall have purchased the Securities proposed to be purchased by him thereunder.

 

2E.           Securityholders
Agreement. The Company, the Investors and Executive shall have entered into
a securityholders agreement in form and substance substantially similar to Exhibit
D attached hereto (the “Securityholders Agreement”), and the
Securityholders Agreement shall be in full force and effect as of the Initial
Closing.

 

2F.           Registration
Agreement. The Company, the Investors and Executive shall have entered into
a registration rights agreement in form and substance substantially similar to Exhibit
E attached hereto (the “Registration Agreement”), and the
Registration Agreement shall be in full force and effect as of the Initial
Closing.

 

2G.          Professional Services
Agreement. Solera, Inc. and GTCR II shall have entered into a professional
services agreement in form and substance substantially similar to Exhibit F
attached hereto (the “Professional Services Agreement”), and the
Professional Services Agreement shall be in full force and effect as of the
Initial Closing.

 

2H.          Subsidiary Charter.
Solera, Inc. shall have duly adopted, executed and filed with the Secretary of
State of Delaware an amended and restated certificate of incorporation in form
and substance substantially similar to Exhibit G attached hereto (the “Charter”),
and the Charter shall continue to be in full force and effect as of the Initial
Closing and shall not have been further amended or modified.

 

2I.            Subsidiary Bylaws.
Solera, Inc. shall have duly adopted amended and restated bylaws in form and
substance substantially similar to Exhibit H attached hereto (the “Bylaws”),
and the Bylaws shall continue to be in full force and effect as of the Initial
Closing and shall not have been further amended or modified.

 

2J.           Initial Closing
Documents. The Company shall have delivered to the Investors all of the following
documents:

 

(a)           an
Officer’s Certificate, dated the date of the Initial Closing, stating that the
conditions specified in Section 1 and Sections 2A through 2I,
inclusive, have been fully satisfied;

 

(b)           certified
copies of the resolutions duly adopted by the Board and/or the board of
directors of Solera, Inc., as appropriate, authorizing the execution, delivery
and performance of this Agreement, the LLC Agreement, the Initial Senior
Management Agreement, the Securityholders Agreement, the Registration
Agreement, the Professional Services Agreement, and each of the other
agreements contemplated hereby (the “Transaction 

 

3

 

Documents”), the issuance and sale
of the Securities and the consummation of all other transactions contemplated
by this Agreement;

 

(c)           certified
copies of the resolutions duly adopted by the board of directors of Solera,
Inc. adopting the Charter and the Bylaws; and

 

(d)           certified
copies of the Company’s Certificate of Formation and the LLC Agreement, each as
in effect at the Initial Closing.

 

2K.          Fees and Expenses.
The Company shall have reimbursed each Investor for its fees and expenses as
provided in Section 7A hereof.

 

2L.           Compliance with
Applicable Laws. The purchase of Securities by the Investors hereunder
shall not be prohibited by any applicable law or governmental regulation, shall
not subject any such Investor to any penalty, liability or, in each Investor’s
sole judgment, other onerous conditions under or pursuant to any applicable law
or governmental regulation, and shall be permitted by laws and regulations of
the jurisdictions to which any Investor is subject.

 

2M.         Consents and Approvals.
The Company shall have received or obtained all governmental, regulatory and
third party consents and approvals necessary for the consummation of the
transactions contemplated by the Initial Closing.

 

2N.          Conditions to
Subsequent Closings. The obligation of each Investor to purchase and pay
for the Securities at any Subsequent Closing is subject to the satisfaction as
of the Subsequent Closing of the following conditions:

 

(a)           Representations
and Warranties; Covenants. The representations and warranties contained in Section
5 hereof shall be true and correct at and as of such Subsequent Closing as
though then made, except to the extent of changes caused by the transactions
expressly contemplated herein or by the other Transaction Documents and except
for changes occurring in the ordinary course of the Company’s and its
Subsidiaries’ businesses that have not had a Material Adverse Effect (including
the filing of any material litigation against the Company or any Subsidiary or
the existence of any material dispute with any Person that involves a
reasonable likelihood of such litigation being commenced).

 

(b)           Consents
and Approvals. The Company shall have received or obtained all
governmental, regulatory and third party consents and approvals necessary for
the consummation of the transactions contemplated by such Subsequent Closing.

 

(c)           Compliance
with Applicable Laws. The purchase of Securities by the Investors hereunder
shall not be prohibited by any applicable law or governmental regulation, shall
not subject any such Investor to any penalty, liability or, in each Investor’s
sole judgment, other onerous conditions under or pursuant to any applicable law
or governmental regulation, and shall be permitted by laws and regulations of
the jurisdictions to which any Investor is subject.

 

4

 

2O.          Waiver. Any
condition specified in this Section 2 may be waived only if such waiver
is set forth in a writing executed by the Investors.

 

Section  3.              Covenants.

 

3A.          Financial Statements
and Other Information. The Company shall deliver to each Investor (so long
as such Investor holds any Securities) and to each holder of at least 15% of
the Investor Preferred and to each holder of at least 15% of the Investor
Common:

 

(a)           as
soon as available but in any event within 30 days after the end of each monthly
accounting period in each fiscal year, unaudited consolidating and consolidated
statements of income and cash flows of the Company and its Subsidiaries for
such monthly period and for the period from the beginning of the fiscal year to
the end of such month, and consolidating and consolidated balance sheets of the
Company and its Subsidiaries as of the end of such monthly period, all prepared
in accordance with United States generally accepted accounting principles,
consistently applied, subject to (i) the absence of footnote disclosures and
(ii) normal year-end adjustments;

 

(b)           as
soon as available but in any event within 30 days after the end of each
quarterly accounting period in each fiscal year, unaudited consolidated
statements of income and cash flows of the Company and its Subsidiaries for
such quarterly period and for the period from the beginning of the fiscal year
to the end of such quarter, and consolidated balance sheets of the Company and
its Subsidiaries as of the end of such quarterly period, all prepared in
accordance with United States generally accepted accounting principles,
consistently applied, subject to the absence of footnote disclosures and to
normal year-end adjustments, and such other modifications from GAAP as the
Board may authorize, together with a management discussion and analysis of
financial conditions and results of operations in a form reasonably
satisfactory to the Investors (an “MD&A”) and accompanied by an
Officer’s Certificate from either the chief executive officer or chief financial
officer of the Company stating the following: 
“To the knowledge of the undersigned, the information contained in the
financial statements attached to this certificate fairly presents, in all
material respects, the financial condition and results of operations of the
Company and its Subsidiaries.”;

 

(c)           accompanying
the financial statements referred to in subsections (a) and (b) above,
an Officer’s Certificate stating that, to such officer’s knowledge, neither the
Company nor any of its Subsidiaries is in material default under any of its
material agreements or, if any such default exists, specifying the nature and
period of existence thereof and what actions the Company and its Subsidiaries
have taken and propose to take with respect thereto;

 

(d)           within
90 days after the end of each fiscal year, consolidating and consolidated
statements of income and cash flows of the Company and its Subsidiaries for
such fiscal year, and consolidating and consolidated balance sheets of the
Company and its Subsidiaries as of the end of such fiscal year, setting forth
in each case comparisons to the annual budget and to the preceding fiscal year,
all prepared in accordance with United States generally accepted accounting
principles, consistently applied, together with an MD&A, and accompanied by
(i) with respect to the consolidated portions of such statements (except with
respect to budget data), an opinion containing no exceptions or qualifications
(except for qualifications regarding 

 

5

 

specified contingent liabilities) of an independent
accounting firm of recognized national standing reasonably acceptable to the
Majority Holders, (ii) a copy of such accounting firm’s annual management
letter to the Board, and (iii) an Officer’s Certificate from either the chief
executive officer or chief financial officer of the Company stating the
following:  “To the knowledge of the
undersigned, the information contained in the financial statements attached to
this certificate fairly presents, in all material respects, the financial
condition and results of operations of the Company and its Subsidiaries.”;

 

(e)           promptly
upon receipt thereof, any additional reports, management letters or other
detailed information concerning significant aspects of the Company’s operations
or financial affairs given to the Company by its independent accountants (and
not otherwise contained in other materials provided hereunder);

 

(f)            at
least 30 days prior to the beginning of each fiscal year, an annual budget
prepared on a monthly basis for the Company and its Subsidiaries for such
fiscal year (displaying anticipated statements of income and cash flows), and
promptly upon preparation thereof any other significant budgets prepared by the
Company and any revisions of such annual or other budgets, and within 30 days
after any monthly period in which there is a material adverse deviation from
the annual budget, an Officer’s Certificate explaining the deviation and what
actions the Company has taken and proposes to take with respect thereto;

 

(g)           promptly
(but in any event within seven business days) after:

 

(i)                            the
discovery or receipt of notice of any default under any agreement to which the
Company or any of its Subsidiaries is a party that is reasonably likely to have
a Material Adverse Effect (as defined herein);

 

(ii)                           any
litigation, action, investigation or proceeding is commenced, or to the
knowledge of the Company or any Subsidiary, is threatened to be, or has a
reasonable likelihood of being (based on the existence of any material dispute
with any Person or otherwise), commenced and that is, or any pending
litigation, action, investigation or proceeding that becomes, reasonably likely
to (A) have a material adverse effect on the ability of the Company or any
Subsidiary to perform its material obligations under its agreements, (B) have a
Material Adverse Effect or (C) constitute or result in a material breach of any
representation, warranty, covenant or agreement set forth in any material
agreements;

 

(iii)                          any
material casualty, damage, destruction, loss or forfeiture (whether or not
covered by insurance and whether or not in the ordinary course of business or
consistent with past practice) of or to property of the Company and its
Subsidiaries having a Material Adverse Effect;

 

(iv)                          any
material change in the conduct of the business of the Company or any
Subsidiary, or any material change in the manner in which the Company or any
Subsidiary markets, produces, distributes or sells its products and services, in
each such case which has had or may reasonably be expected to have a Material
Adverse Effect;

 

6

 

(v)                           any
material change in any accounting procedures, practices or the basis of
accounting of the Company or any Subsidiary; or

 

(vi)                          any
other transaction, event or circumstance affecting the Company or any
Subsidiary reasonably likely to have a Material Adverse Effect (including any
material alteration or change in the business plan or strategy of the Company or
any Subsidiary);

 

a written notice setting forth in reasonable detail
the facts and circumstances relating to any of the above-listed items, which
notice shall include a copy of any material documentation received or obtained
by the Company or its Subsidiaries in relation thereto;

 

(h)           promptly
(but in any event within 5 business days) after the discovery or receipt of
notice of any default under any material agreement to which the Company or any
of its Subsidiaries is a party or any other event or circumstance affecting the
Company or any Subsidiary that is reasonably likely to have a Material Adverse
Effect (including the filing of any material litigation against the Company or
any Subsidiary or the existence of any material dispute with any Person that
involves a reasonable likelihood of such litigation being commenced), an
Officer’s Certificate specifying the nature and period of existence thereof and
what actions the Company and its Subsidiaries have taken and propose to take
with respect thereto;

 

(i)            promptly
(but in any event within 5 business days) days after transmission thereof,
copies of all financial statements, proxy statements, reports and any other
general written communications that the Company sends to its equityholders and
copies of all registration statements and all regular, special or periodic
reports that it files, or any of its officers or directors file with respect to
the Company, with the Securities and Exchange Commission or with any securities
exchange on which any of the Company’s securities are then listed, and copies
of all press releases and other statements made available generally by the
Company to the public concerning material developments in the Company’s and its
Subsidiaries’ businesses; and

 

(j)            with
reasonable promptness, such other information and financial data concerning the
Company and its Subsidiaries as any Person entitled to receive information
under this Section 3A may reasonably request.

 

Each of the financial
statements referred to in subsections (a), (b) and (d)
shall be true and correct in all material respects as of the dates and for the
periods stated therein, subject in the case of the unaudited financial
statements to changes resulting from normal year-end audit adjustments (none of
which would, alone or in the aggregate, be materially adverse to the financial
condition, operating results, assets, operations or business prospects of the
Company and its Subsidiaries taken as a whole). In connection with the Company’s
annual audit, the Company shall request that the Company’s auditors perform
certain procedures regarding executive compensation and expense reimbursements
and related party transactions as the Majority Holders reasonably request.

 

3B.          Management Rights.
The Company shall permit any representatives designated by any Investor (so
long as such Investor holds any Securities) or any holder of at least 15% of
the Investor Preferred or at least 15% of the Investor Common, upon reasonable 

 

7

 

notice and during normal business hours and at such
other times as any such holder may reasonably request, to (a) visit and inspect
any of the properties of the Company and its Subsidiaries, (b) examine the
corporate and financial records of the Company and its Subsidiaries and make
copies thereof or extracts therefrom and (c) discuss the affairs, finances and
accounts of any such entities with the directors, officers, key employees and
independent accountants of the Company and its Subsidiaries; provided
that the Company shall have the right to have its chief financial officer
present at any meetings with the Company’s independent accountants.

 

3C.          Restrictions. The
Company shall not, without the prior written consent of the Majority Holders:

 

(a)           directly
or indirectly declare or pay any dividends or make any distributions upon any
of its equity securities, other than distributions of unpaid yield or
unreturned capital on the Class A Preferred Units or the Class B Preferred
Units pursuant to the LLC Agreement;

 

(b)           directly
or indirectly redeem, purchase or otherwise acquire, or permit any Subsidiary
to redeem, purchase or otherwise acquire, any of the Company’s equity
securities (including, without limitation, warrants, options and other rights
to acquire equity securities);

 

(c)           except
as expressly contemplated by this Agreement or the Senior Management
Agreements, authorize, issue, sell or enter into any agreement providing for
the issuance (contingent or otherwise), or permit any Subsidiary to authorize,
issue, sell or enter into any agreement providing for the issuance (contingent
or otherwise) of, (i) any notes or debt securities containing equity features
(including, without limitation, any notes or debt securities convertible into
or exchangeable for equity securities, issued in connection with the issuance
of equity securities or containing profit participation features) or (ii) any
equity securities (or any securities convertible into or exchangeable for any
equity securities) or rights to acquire any equity securities, other than the
issuance of equity securities by a Subsidiary to the Company or another
Subsidiary;

 

(d)           make,
or permit any Subsidiary to make, any loans or advances to, guarantees for the
benefit of, or Investments in, any Person, except for (i) reasonable advances
to employees in the ordinary course of business as well as travel advances,
(ii) relocation loans, (iii) trade credit extended to customers in the ordinary
course of business and (iv) Investments having a stated maturity no greater
than one year from the date the Company makes such Investment in (A)
obligations of the United States government or any agency thereof or
obligations guaranteed by the United States government, (B) certificates of
deposit of commercial banks having combined capital and surplus of at least $50
million, (C) commercial paper with a rating of at least “Prime-1” by Moody’s
Investors Service, Inc. or (D) money market accounts investing in any of the
foregoing or in substantially similar investments;

 

(e)           merge
or consolidate with any Person or permit any Subsidiary to merge or consolidate
with any Person (other than a wholly-owned Subsidiary);

 

8

 

(f)            sell,
lease or otherwise dispose of, or permit any Subsidiary to sell, lease or
otherwise dispose of, more than 5% of the consolidated assets of the Company
and its Subsidiaries (computed on the basis of book value, determined in
accordance with United States generally accepted accounting principles
consistently applied, or fair market value, determined by the Board in its
reasonable good faith judgment) in any transaction or series of related
transactions (other than sales of inventory in the ordinary course of
business);

 

(g)           except
as contemplated by the LLC Agreement and the Securityholders Agreement in
connection with a Public Offering, liquidate, dissolve or effect a
recapitalization or reorganization in any form of transaction (including,
without limitation, any reorganization into a corporation or a partnership);

 

(h)           acquire,
or permit any Subsidiary to acquire, any interest in any business (whether by a
purchase of assets, purchase of securities, merger or otherwise), or enter into
any joint venture;

 

(i)            enter
into the ownership, active management or operation of any business other than
the ownership of the securities of its Subsidiaries or permit any Subsidiary to
enter into the ownership, active management or operation of any business other
than a business whose principal
business activities are in, or relate to, the insurance claims processing,
analytics and outsourcing industry;

 

(j)            enter
into, or permit any Subsidiary to enter into, any transaction with any of its
or any Subsidiary’s officers, directors, employees or Affiliates or any
individual related by blood, marriage or adoption to any such Person (a “Relative”)
or any entity in which any such Person or individual owns a beneficial interest
(a “Related Entity”), except for normal employment arrangements and
benefit programs on reasonable terms and except as otherwise expressly
contemplated by this Agreement, the Senior Management Agreements and the
Professional Services Agreement;

 

(k)           become
subject to, or permit any of its Subsidiaries to become subject to, any
agreement or instrument that by its terms would (under any circumstances)
restrict (i) the right of any Subsidiary to make loans or advances or pay
dividends to, transfer property to, or repay any Indebtedness owed to, the
Company or any Subsidiary or (ii) the Company’s right to perform the provisions
of this Agreement, the Certificate of Formation, the LLC Agreement or the other
Transaction Documents;

 

(l)            except
as expressly contemplated by this Agreement, make any amendment to the
Certificate of Formation or the LLC Agreement that would increase the number of
authorized Securities or adversely affect or otherwise impair the rights or the
relative preferences and priorities of the holders of the Securities under this
Agreement, the Certificate of Formation, the LLC Agreement or the other
Transaction Documents; or

 

(m)          create,
incur, assume or suffer to exist, or permit any Subsidiary to create, incur,
assume or suffer to exist, Indebtedness exceeding the amounts approved therefor
by the Board in the annual budget.

 

9

 

3D.          Affirmative Covenants.
So long as the Investors hold any Securities, the Company shall, and shall
cause each Subsidiary to:

 

(a)           comply
with all applicable laws, rules and regulations of all governmental
authorities, the violation of which would reasonably be expected to have a
Material Adverse Effect, and pay and discharge when payable all taxes,
assessments and governmental charges (except to the extent the same are being
contested in good faith and adequate reserves therefor have been established);
and

 

(b)           enter
into and maintain appropriate nondisclosure and noncompete agreements with its
key employees.

 

3E.           Current Public
Information. At all times after the Company (or its successor) has filed a
registration statement with the Securities and Exchange Commission pursuant to
the requirements of either the Securities Act or the Securities Exchange Act,
the Company (or its successor) shall file all reports required to be filed by
it under the Securities Act and the Securities Exchange Act and the rules and
regulations adopted by the Securities and Exchange Commission thereunder and
shall take such further action as any holder or holders of Restricted
Securities may reasonably request, all to the extent required to enable such
holders to sell Restricted Securities pursuant to (a) Rule 144 adopted by the
Securities and Exchange Commission under the Securities Act (as such rule may
be amended from time to time) or any similar rule or regulation hereafter
adopted by the Securities and Exchange Commission or (b) a registration
statement on Form S-2 or S-3 or any similar registration form hereafter adopted
by the Securities and Exchange Commission. Upon request, the Company (or its
successor) shall deliver to any holder of Restricted Securities a written
statement as to whether it has complied with such requirements.

 

3F.           Amendment of Other
Agreements. The Company shall not amend, modify or waive any provision of
the Senior Management Agreements or any other agreement with key executives of
the Company without the prior written consent of the Majority Holders. The
Company shall enforce the provisions of the Senior Management Agreements and
any other agreement with key executives of the Company and shall exercise all
of its rights and remedies thereunder (including, without limitation, any
repurchase options and first refusal rights) unless it is otherwise directed by
the Majority Holders.

 

3G.          Public Disclosures.
The Company shall not, nor shall it permit any Subsidiary to, disclose any
Investor’s name or identity as an investor in the Company in any press release
or other public announcement or in any document or material filed with any
governmental entity (other than tax filings in the ordinary course), without
the prior written consent of such Investor, unless such disclosure is required
by applicable law or governmental regulations or by order of a court of
competent jurisdiction, in which case prior to making such disclosure the
Company shall give written notice to such Investor describing in reasonable
detail the proposed content of such disclosure and shall permit such Investor
to review and comment upon the form and substance of such disclosure.

 

3H.          Unrelated Business
Taxable Income; Effectively Connected Income. The Company shall not engage
in any transaction which is reasonably likely to cause any Investor or 

 

10

 

any limited partner thereof that is exempt from income
taxation under Section 501(a) of the IRC and, if applicable, any pension plan
that any such trust may be a part of, to recognize unrelated business taxable
income as defined in Section 512 and Section 514 of the IRC. The Company will
use reasonable best efforts not to engage in, or invest in any Person that is
treated as a flow-through entity for U.S. federal income tax purposes that
engages in, (a) any “commercial activity” as defined in Section 892(a)(2)(i) of
the IRC or (b) transactions which will cause the Company to incur income that
is effectively connected with a “trade or business within the United States” as
defined in Section 864(b) of the IRC.

 

3I.            Hart-Scott-Rodino
Compliance. In connection with any transaction in which the Company is
involved (a “Transaction”) that is required to be reported under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended from time to
time (the “HSR Act”), the Company shall prepare and file all documents
with the Federal Trade Commission and the United States Department of Justice
which may be required to comply with the HSR Act, and shall promptly furnish
all materials thereafter requested by any of the regulatory agencies having
jurisdiction over such filings, in connection with a Transaction. The Company
shall take all reasonable actions and shall file and use reasonable best efforts
to have declared effective or approved all documents and notifications with any
governmental or regulatory bodies, as may be necessary or may reasonably be
requested under federal antitrust laws for the consummation of the Transaction.
Notwithstanding the foregoing, if any Investor, rather than the Company, is
required to make a filing under the HSR Act in connection with a Transaction,
the Company will provide to such Investor all necessary information for such
filing, will facilitate such filing and will pay all fees and expenses
associated with such filing.

 

3J.           Additional
Accounting Procedures. Upon the reasonable request of the Investors, the
Company and its Subsidiaries will cause their accounting firm to conduct
additional procedures with respect to, and monitor and evaluate, the Company’s
and any Subsidiary’s executive compensation, expense reimbursement and
related-party transactions policies and practices.

 

3K.          Stock Purchase
Agreement. Within fourteen (14) calendar days of the Initial Closing, the
Company shall, and the Company shall cause Solera, Inc. to, enter into a stock
purchase agreement on terms substantially similar to the terms set forth
herein.

 

Section  4.              Transfer of
Restricted Securities.

 

(a)           Restricted
Securities are transferable only pursuant to (i) Public Offerings, (ii) Rule
144 of the Securities and Exchange Commission (or any similar rule or rules
then in force) if such rule or rules are available and (iii) subject to the
conditions specified in clause (b) below, any other legally available
means of transfer.

 

(b)           In
connection with the transfer of any Restricted Securities (other than a
transfer described in Sections 4(a)(i) or (ii) above or to any
Affiliate of an Investor), the holder thereof shall deliver written notice to
the Company describing in reasonable detail the transfer or proposed transfer. If
the holder of the Restricted Securities delivers to the Company an opinion of
Kirkland & Ellis LLP or other counsel that no subsequent transfer of such
Restricted Securities shall require registration under the Securities Act, the
Company shall promptly upon 

 

11

 

such contemplated transfer deliver to the prospective
transferor new certificates for such Restricted Securities that do not bear the
Securities Act legend set forth in Section 7C. If the Company is not
required to deliver new certificates for such Restricted Securities not bearing
such legend, the holder thereof shall not transfer the same until the
prospective transferee has confirmed to the Company in writing its agreement to
be bound by the conditions contained in this Section 4 and Section 7C.

 

(c)           Upon
the request of an Investor, the Company shall promptly supply to such Investor
or its prospective transferees all information regarding the Company required
to be delivered in connection with a transfer pursuant to Rule 144A of the
Securities and Exchange Commission.

 

Section  5.              Representations
and Warranties of the Company. As a material inducement to each Investor to
enter into this Agreement and purchase the Securities, the Company hereby
represents and warrants to each Investor that:

 

5A.          Organization and
Corporate Power. The Company is a limited liability company duly organized,
validly existing and in good standing under the laws of Delaware and is
qualified to do business in every jurisdiction in which the failure to so
qualify might reasonably be expected to have a Material Adverse Effect. The
Company has all requisite limited liability company power and authority and all
material licenses, permits and authorizations necessary to own and operate its
properties, to carry on its businesses as now conducted and presently proposed
to be conducted and to carry out the transactions contemplated by this
Agreement. The copies of the Company’s Certificate of Formation and the LLC
Agreement that have been furnished to the Investors reflect all amendments made
thereto at any time prior to the date of this Agreement and are correct and
complete.

 

5B.          Equity Securities and
Related Matters.

 

(a)           As
of the Initial Closing and immediately thereafter, the authorized equity
securities of the Company shall consist of the following: (i) an unlimited
number of units designated as Class A Preferred Units, none of which shall be
issued and outstanding and all of which may only be issued in exchange for
other equity securities of the Company pursuant to the terms of the Senior
Management Agreements; (ii) an unlimited number of units designated as Class B
Preferred Units, 1,016.625 shall be issued and outstanding, 95,000 of which
shall be reserved for issuance to the Investors pursuant to Section 1B
hereof, 1,579.373  of  which shall be reserved for issuance to the Executive pursuant to
the Initial Senior Management Agreement to which Executive is a party; (iii) an
unlimited number of units designated as Class A Common Units, 44,040,021 of
which shall be issued and outstanding; (iv) an unlimited number of units
designated as Class B Common Units (as defined in the LLC Agreement), none of
which shall be issued and outstanding; and (v) 3,857,170 Common Units shall be
reserved for issuance to other executives and/or managers of the Company and
its Subsidiaries as determined by the Board. As of the Initial Closing, the
Company shall not have outstanding any securities convertible or exchangeable
for any equity securities of the Company or containing any profit participation
features, nor shall it have outstanding any rights or options to subscribe for
or to purchase its equity securities or any securities convertible into or
exchangeable for its equity securities or any equity appreciation rights or
phantom equity plans other than pursuant to and as contemplated by 

 

12

 

this Agreement, the LLC Agreement and the Senior
Management Agreements. As of the Initial Closing, the Company shall not be
subject to any obligation (contingent or otherwise) to repurchase or otherwise
acquire or retire any of its equity securities or any warrants, options or
other rights to acquire its equity securities, except obligations, if any,
pursuant to this Agreement, the LLC Agreement, the Senior Management Agreements
and the Company’s Certificate of Formation. As of the Initial Closing, all of
the Company’s outstanding equity securities shall be validly issued, fully paid
and nonassessable.

 

(b)           There
are no statutory or, to the best of the Company’s knowledge, contractual
securityholders preemptive rights or rights of refusal with respect to the
issuance of the Securities hereunder or the issuance of the Securities pursuant
to Section 1B(b), except as expressly contemplated in the
Securityholders Agreement, the LLC Agreement or as provided herein. Based in
part on the investment representations of the Investors in Section 7C
hereof and of Executive in Section 1(e) of the Initial Senior Management
Agreement, the Company has not violated any applicable federal or state
securities laws in connection with the offer, sale or issuance of any of its
equity securities, and the offer, sale and issuance of the Securities hereunder
and pursuant to Section 1B(b) hereof do not and will not require
registration under the Securities Act or any applicable state securities laws. To
the best of the Company’s knowledge, there are no agreements between the
Company’s securityholders with respect to the voting or transfer of the Company’s
equity securities or with respect to any other aspect of the Company’s affairs,
except for the Securityholders Agreement, the LLC Agreement, the Initial Senior
Management Agreement, the Registration Agreement and the Professional Services
Agreement.

 

5C.          Subsidiaries;
Investments. Immediately after the consummation of the Initial Closing,
Solera, Inc. will be the Company’s only Subsidiary. Immediately after the
consummation of the Initial Closing, the Company will own 100% of the capital
stock of Solera, Inc. Solera, Inc. is duly organized, validly existing and in
good standing under the laws of Delaware, possesses all requisite corporate
power and authority and all material licenses, permits and authorizations
necessary to own its properties and to carry on its business as now being
conducted and as presently proposed to be conducted and is qualified to do
business in every jurisdiction in which its ownership of property or the
conduct of its business requires it to qualify.

 

5D.          Authorization; No
Breach. The execution, delivery and performance of this Agreement, the LLC
Agreement, the Initial Senior Management Agreement, the Securityholders
Agreement, the Registration Agreement, the Professional Services Agreement, and
all other agreements contemplated hereby or thereby to which the Company is a
party, have been duly authorized by the Company. This Agreement, the Initial
Senior Management Agreement, the LLC Agreement, the Securityholders Agreement,
the Registration Agreement, the Professional Services Agreement, the
Certificate of Formation and all other agreements contemplated hereby or
thereby each constitutes a valid and binding obligation of the Company,
enforceable in accordance with its terms. The execution and delivery by the
Company of this Agreement, the LLC Agreement, the Initial Senior Management
Agreement, the Securityholders Agreement, the Registration Agreement, the
Professional Services Agreement, and all other agreements contemplated hereby
or thereby to which the Company is a party, the offering, sale and issuance of
the Securities hereunder (including pursuant to Section 1B(b)) and the 

 

13

 

fulfillment of and compliance with the respective
terms hereof and thereof by the Company do not and will not (a) conflict with
or result in a breach of the terms, conditions or provisions of, (b) constitute
a default under, (c) result in the creation of any lien, security interest,
charge or encumbrance upon the Company’s equity securities or assets pursuant
to, (d) give any third party the right to modify, terminate or accelerate any
obligation under, (e) result in a violation of, or (f) require any
authorization, consent, approval, exemption or other action by or notice to any
court or administrative or governmental body pursuant to, the Certificate of
Formation of the Company or the LLC Agreement, or any law, statute, rule or
regulation to which the Company is subject, or any agreement, instrument,
order, judgment or decree to which the Company is a party or by which it is
bound.

 

5E.           Conduct of Business;
Liabilities.

 

(a)           Other
than the negotiation, execution and delivery of this Agreement, the Initial
Senior Management Agreement, the Securityholders Agreement, the Registration
Agreement, the Professional Services Agreement and the other agreements
contemplated hereby and thereby, prior to the Initial Closing, the Company has
not (i) conducted any business, (ii) incurred any expenses, obligations or
liabilities (whether accrued, absolute, contingent, unliquidated or otherwise,
whether or not known to the Company and whether due or to become due and
regardless of when asserted), (iii) owned any assets, (iv) entered into any contracts
or agreements, or (v) violated any laws or governmental rules or regulations.

 

(b)           Except
as set forth on the Schedule of Subsidiary Activities attached hereto
and other than the negotiation, execution and delivery of the Professional
Services Agreement and the Initial Senior Management Agreement, and the other
agreements contemplated hereby and thereby, prior to the Initial Closing,
Solera, Inc. has not (i) conducted any business, (ii) incurred any expenses,
obligations or liabilities (whether accrued, absolute, contingent, unliquidated
or otherwise, whether or not known to Solera, Inc. and whether due or to become
due and regardless of when asserted), (iii) owned any assets, (iv) entered into
any contracts or agreements, or (v) violated any laws or governmental rules or
regulations.

 

5F.           Litigation, etc.
There are no actions, suits, proceedings, orders, investigations or claims
pending or, to the best of the Company’s knowledge, threatened against or
affecting either the Company or Solera, Inc. (or to the best of the Company’s
knowledge, pending or threatened against or affecting any of the officers,
directors or employees of the Company or Solera, Inc. with respect to their
businesses or proposed business activities) at law or in equity, or before or
by any governmental department, commission, board, bureau, agency or
instrumentality with respect to the transactions contemplated by this
Agreement.

 

5G.          Brokerage. There
are no claims for brokerage commissions, finders’ fees or similar compensation
in connection with the transactions contemplated by this Agreement based on any
arrangement or agreement binding upon the Company. The Company shall pay, and
hold the Investors harmless against, any liability, loss or expense (including,
without limitation, attorneys’ fees and out-of-pocket expenses) arising in
connection with any such claim.

 

5H.          Governmental Consent,
etc. No permit, consent, approval or authorization of, or declaration to or
filing with, any governmental authority is required in connection with the 

 

14

 

execution, delivery and performance by the Company of
this Agreement or the other agreements contemplated hereby, or the consummation
by the Company of any other transactions contemplated hereby or thereby.

 

5I.            Disclosure. Neither
this Agreement nor any of the schedules, attachments, written statements,
documents, certificates or other items prepared or supplied to the Investors by
or on behalf of the Company with respect to the transactions contemplated
hereby contain any untrue statement of a material fact or omit a material fact
necessary to make each statement contained herein or therein not misleading. There
is no fact which the Company has not disclosed to the Investors in writing and
of which any of its officers, directors, managers or executive employees is
aware and which has had or might reasonably be anticipated to have a Material
Adverse Effect.

 

5J.           Initial Closing Date.
The representations and warranties of the Company contained in this Section
5 and elsewhere in this Agreement and all information contained in any
exhibit, schedule or attachment hereto or in any writing delivered by, or on
behalf of, the Company to the Investors shall be true and correct in all
material respects on the date of the Initial Closing as though then made,
except as affected by the transactions expressly contemplated by this
Agreement.

 

Section  6.              Definitions. For
the purposes of this Agreement, the following terms have the meanings set forth
below:

 

“Affiliate” of any particular Person means any
other Person controlling, controlled by or under common control with such
particular Person or entity; it being understood and agreed that GTCR II and
its Affiliates shall for all purposes hereunder be Affiliates of GTCR I. For
purposes of this Agreement, all holdings of Class B Preferred Units and Class A
Common Units by Persons who are Affiliates of each other shall be aggregated
for purposes of meeting any threshold tests under this Agreement.

 

“Class A Preferred Units” means the Class A
Preferred Units, as defined in the LLC Agreement.

 

“Indebtedness” means all indebtedness for
borrowed money (including purchase money obligations) maturing one year or more
from the date of creation or incurrence thereof or renewable or extendible at
the option of the debtor to a date one year or more from the date of creation
or incurrence thereof, all indebtedness under revolving credit arrangements
extending over a year or more, all capitalized lease obligations and all
guarantees of any of the foregoing.

 

“Investor Common” means (i) any Class A Common
Units issued pursuant to this Agreement and (ii) any Class A Common Units
issued or issuable with respect to the Class A Common Units referred to in clause
(i) above by way of unit dividends or unit splits or in connection with a
combination of units, recapitalization, merger, consolidation or other
reorganization. As to any particular units of Investor Common, such units shall
cease to be Investor Common when they have been (a) effectively registered
under the Securities Act and disposed of in accordance with the registration
statement covering them or (b) distributed to the 

 

15

 

public through a broker,
dealer or market maker pursuant to Rule 144 under the Securities Act (or any
similar rule then in force).

 

“Investor Preferred” means (i) the Class B
Preferred Units issued hereunder (including, without limitation, pursuant to
Section 1B(b)), and (ii) any Class B Preferred Units issued or issuable with
respect to the Class B Preferred Units referred to in clause (i) above by way
of unit dividends or unit splits or in connection with a combination of units,
recapitalization, merger, consolidation or other reorganization. As to any
particular units of Investor Preferred, such units shall cease to be Investor
Preferred when they have been (a) effectively registered under the Securities
Act and disposed of in accordance with the registration statement covering them
or (b) distributed to the public through a broker, dealer or market maker
pursuant to Rule 144 under the Securities Act (or any similar rule then in
force).

 

“Investor Securities” means, collectively, the
Investor Preferred and the Investor Common.

 

“Investment” as applied to any Person means (i)
any direct or indirect purchase or other acquisition by such Person of any
notes, obligations, instruments, stock, securities or ownership interest
(including partnership interests and joint venture interests) of any other
Person and (ii) any capital contribution by such Person to any other Person.

 

“IRC” means the Internal Revenue Code of 1986,
as amended, and any reference to any particular IRC Section shall be
interpreted to include any revision of or successor to that Section regardless
of how numbered or classified.

 

“Majority Holders” means the holders of a
majority of the Investor Preferred or, if no Investor Preferred is outstanding,
the holders of a majority of the Investor Common.

 

“Material Adverse Effect” means a material
adverse effect on the business, liabilities, operations, properties, assets,
operating results, prospects or condition (financial or otherwise) of the
Company and its Subsidiaries taken as a whole.

 

“Officer’s Certificate” means a certificate
signed by the Company’s chief executive officer or its chief financial officer,
stating that (i) the officer signing such certificate has made or has caused to
be made such investigations as are necessary in order to permit such officer to
verify the accuracy of the information set forth in such certificate and (ii)
to the best of such officer’s knowledge, such certificate does not misstate any
material fact and does not omit to state any fact necessary to make the
certificate not misleading.

 

“Person” means an individual, a partnership, a
limited liability company, a corporation, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, an
investment fund, any other business entity and a governmental entity or any
department, agency or political subdivision thereof.

 

“Public Offering” means the sale in a public
offering registered under the Securities Act of equity securities of the
Company or a corporate successor to the Company.

 

16

 

“Restricted Securities” means (i) the
Securities issued hereunder and pursuant to Section 1B(b) hereof and
(ii) any securities issued with respect to the securities referred to in clause
(i) above by way of a unit dividend or unit split or in connection with a
combination of units, recapitalization, merger, consolidation or other
reorganization. As to any particular Restricted Securities, such securities
shall cease to be Restricted Securities when they have (a) been effectively
registered under the Securities Act and disposed of in accordance with the
registration statement covering them, (b) become eligible for sale pursuant to
Rule 144(k) (or any similar provision then in force) under the Securities Act
or (c) been otherwise transferred and new certificates for them not bearing the
Securities Act legend set forth in Section 7C have been delivered by the
Company in accordance with Section 4(b). Whenever any particular
securities cease to be Restricted Securities, the holder thereof shall be
entitled to receive from the Company, without expense, new securities of like
tenor not bearing a Securities Act legend of the character set forth in Section
7C.

 

“Securities Act” means the Securities Act of
1933, as amended, or any similar federal law then in force.

 

“Securities Exchange Act” means the Securities
Exchange Act of 1934, as amended, or any similar federal law then in force.

 

“Securities and Exchange Commission” includes
any governmental body or agency succeeding to the functions thereof.

 

“Senior Management Agreement” means any Senior
Management Agreement entered into from time to time among the Company, Solera,
Inc. (or any other Subsidiaries of the Company) and its executives, as the same
may be amended from time to time pursuant to the terms thereof (including, without
limitation, the Initial Senior Management Agreement and any other agreements
designated as Senior Management Agreements for the sale of equity securities
between the Company and any employees or other service providers of the Company
or its Subsidiaries, as approved by the Board).

 

“Subsidiary” means, with respect to any Person,
any corporation, limited liability company, partnership, association, or
business entity of which (i) if a corporation, a majority of the total
voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers, or trustees
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination
thereof, or (ii) if a limited liability company, partnership, association,
or other business entity (other than a corporation), a majority of  partnership or other similar ownership interest
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more Subsidiaries of that Person or a combination thereof. For
purposes hereof, a Person or Persons shall be deemed to have a majority
ownership interest in a limited liability company, partnership, association, or
other business entity (other than a corporation) if such Person or Persons
shall be allocated a majority of limited liability company, partnership,
association, or other business entity gains or losses or shall be or control
any managing director or general partner of such limited liability company,
partnership, association, or other business entity. For purposes hereof,
references to a “Subsidiary” of any Person shall be 

 

17

 

given effect only at such
times that such Person has one or more Subsidiaries, and, unless otherwise
indicated, the term “Subsidiary” refers to a Subsidiary of the Company.

 

Section  7.              Miscellaneous.

 

7A.          Expenses. The
Company agrees to pay, and hold the Investors and all holders of Investor
Securities harmless against liability for the payment of, (a) the reasonable
fees and expenses of their counsel arising in connection with the negotiation
and execution of this Agreement and the consummation of the transactions
contemplated by this Agreement (including, without limitation, fees and
expenses arising with respect to any subsequent purchase of Securities pursuant
to Section 1B(b) hereof), (b) the fees and expenses incurred with
respect to any amendments or waivers (whether or not the same become effective)
under or in respect of this Agreement, the LLC Agreement, the Senior Management
Agreements, the Securityholders Agreement, the Registration Agreement, the
Professional Services Agreement, the other agreements contemplated hereby or
thereby and the Certificate of Formation, (c) stamp and other taxes that may be
payable in respect of the execution and delivery of this Agreement or the
issuance, delivery or acquisition of any Securities purchased hereunder or in
accordance with Section 1B(b) hereof, (d) the fees and expenses incurred
with respect to the interpretation or enforcement of the rights granted under
this Agreement, the LLC Agreement, the Senior Management Agreements, the
Securityholders Agreement, the Registration Agreement, the Professional
Services Agreement, the other agreements contemplated hereby or thereby and the
Certificate of Formation and (e) such reasonable travel expenses, legal fees
and other out-of-pocket fees and expenses as have been or may be incurred by
any Investor, its Affiliates and its Affiliates’ directors, officers and
employees in connection with any Company-related financing and in connection
with the rendering of any other services by an Investor or its Affiliates
(including, but not limited to, fees and expenses incurred in attending board
of managers or other Company-related meetings).

 

7B.          Remedies. Each
holder of Investor Securities shall have all rights and remedies set forth in
this Agreement, the LLC Agreement, the Securityholders Agreement, the
Registration Agreement and the Certificate of Formation and all rights and
remedies that such holders have been granted at any time under any other
agreement or contract and all of the rights that such holders have under any
law. Any Person having any rights under any provision of this Agreement shall
be entitled to enforce such rights specifically (without posting a bond or
other security), to recover damages by reason of any breach of any provision of
this Agreement and to exercise all other rights granted by law.

 

7C.          Each Investor’s
Investment Representations. Each Investor hereby represents (a) that it is
acquiring the Restricted Securities purchased hereunder or acquired pursuant
hereto for its own account with the present intention of holding such
securities for purposes of investment, and that it has no intention of selling
such securities in a public distribution in violation of the federal securities
laws or any applicable state securities laws, (b) that it is an “accredited
investor” and a sophisticated investor for purposes of applicable U.S. federal
and state securities laws and regulations, (c) that the Restricted Securities
were not offered to such Investor by any means of general solicitation or
general advertising, (d) that it believes that it has such knowledge and
experience in financial and business matters that such Investor is capable of
evaluating the merits and risks of an investment in the Company, (e) that it

 

18

 

is able to bear the economic risks of an investment in
the Restricted Securities and could afford a complete loss of such investment,
(f) that this Agreement and each of the other agreements contemplated hereby
constitutes (or will constitute) the legal, valid and binding obligation of
such Investor, enforceable in accordance with its terms and (g) that the
execution, delivery and performance of this Agreement and such other agreements
by such Investor does not and will not conflict with, violate or cause a breach
of any agreement, contract or instrument to which such Investor is subject. Notwithstanding
the foregoing, nothing contained herein shall prevent any Investor and
subsequent holders of Restricted Securities from transferring such securities
in compliance with the provisions of Section 4 hereof. Each certificate
for Restricted Securities shall be imprinted with a legend in substantially the
following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED ON                  ,
200      AND HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. THE TRANSFER OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE IS SUBJECT TO THE CONDITIONS SPECIFIED IN THE UNIT PURCHASE
AGREEMENT, DATED AS OF APRIL 1, 2005 BY AND AMONG THE ISSUER (THE “COMPANY”)
AND CERTAIN INVESTORS, AS AMENDED, AND THE COMPANY RESERVES THE RIGHT TO REFUSE
THE TRANSFER OF SUCH SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH
RESPECT TO SUCH TRANSFER. A COPY OF SUCH CONDITIONS SHALL BE FURNISHED BY THE
COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE.”

 

7D.          Consent to Amendments.
Except as otherwise expressly provided herein, the provisions of this Agreement
may be amended and the Company may take any action herein prohibited, or omit
to perform any act herein required to be performed by it, only if the Company
has obtained the prior written consent of the Majority Holders. This Agreement
may not be amended without the written consent of the Company and the Majority
Holders. No other course of dealing between the Company and the holder of any
Securities or any delay in exercising any rights hereunder or under the LLC
Agreement shall operate as a waiver of any rights of any such holders. For
purposes of this Agreement, Securities held by the Company or any of its
Subsidiaries shall not be deemed to be outstanding.

 

7E.           Survival of
Representations and Warranties. All representations and warranties
contained herein or made in writing by any party in connection herewith shall
survive the execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby, regardless of any investigation made by
an Investor or on its behalf.

 

7F.           Successors and
Assigns. Except as otherwise expressly provided herein, all covenants and agreements
contained in this Agreement by or on behalf of any of the parties hereto shall
bind and inure to the benefit of the respective successors and assigns of the
parties hereto whether so expressed or not. In addition, and whether or not any
express assignment has been made, the provisions of this Agreement that are for
each Investor’s benefit as a purchaser or holder of Securities are also for the
benefit of, and enforceable by, any subsequent holder of such 

 

19

 

Securities. The rights and obligations of each
Investor under this Agreement and the agreements contemplated hereby may be
assigned by such Investor at any time, in whole or in part, to any investment
fund managed by GTCR I or GTCR II or any successor thereto.

 

7G.          Generally Accepted
Accounting Principles. Where any accounting determination or calculation is
required to be made under this Agreement or the exhibits hereto, such
determination or calculation (unless otherwise provided) shall be made in
accordance with United States generally accepted accounting principles,
consistently applied, except that if because of a change in United States
generally accepted accounting principles the Company would have to alter a
previously utilized accounting method or policy in order to remain in
compliance with United States generally accepted accounting principles, such
determination or calculation shall continue to be made in accordance with the
Company’s previous accounting methods and policies.

 

7H.          Severability.
Whenever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in
any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision
or any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein.

 

7I.            Counterparts. This
Agreement may be executed simultaneously in two or more counterparts, any one
of which need not contain the signatures of more than one party, but all such
counterparts taken together shall constitute one and the same Agreement.

 

7J.           Delivery by
Facsimile. This Agreement, the agreements referred to herein, and each
other agreement or instrument entered into in connection herewith or therewith
or contemplated hereby or thereby, and any amendments hereto or thereto, to the
extent signed and delivered by means of a facsimile machine, shall be treated
in all manner and respects as an original agreement or instrument and shall be
considered to have the same binding legal effect as if it were the original
signed version thereof delivered in person. At the request of any party hereto
or to any such agreement or instrument, each other party hereto or thereto
shall reexecute original forms thereof and deliver them to all other parties. No
party hereto or to any such agreement or instrument shall raise the use of a
facsimile machine to deliver a signature or the fact that any signature or
agreement or instrument was transmitted or communicated through the use of a
facsimile machine as a defense to the formation or enforceability of a contract
and each such party forever waives any such defense.

 

7K.          Descriptive Headings;
Interpretation. The descriptive headings of this Agreement are inserted for
convenience only and do not constitute a section of this Agreement. The use of
the word “including” in this Agreement shall be by way of example rather than
by limitation.

 

7L.           Governing Law. The
Delaware Limited Liability Company Act shall govern all issues concerning the
relative rights of the Company and its securityholders. All other questions
concerning the construction, validity and interpretation of this Agreement and
the 

 

20

 

exhibits and schedules hereto shall be governed by and
construed in accordance with the internal laws of the State of Delaware,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
Delaware.

 

7M.         MUTUAL WAIVER OF JURY
TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX TRANSACTIONS ARE
MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND
THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN
ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A
JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION
OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH PARTY TO THIS
AGREEMENT HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES
HERETO, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF,
CONNECTED WITH, RELATED OR INCIDENTAL TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

7N.          Notices. All
notices, demands or other communications to be given or delivered under or by
reason of the provisions of this Agreement shall be in writing and shall be
deemed to have been given when (a) delivered personally to the recipient, (b)
sent to the recipient by reputable express courier service (charges prepaid),
(c) mailed to the recipient by certified or registered mail, return receipt
requested and postage prepaid, or (d) telecopied to the recipient (with hard
copy sent to the recipient by reputable overnight courier service (charges
prepaid) that same day) if telecopied before 5:00 p.m. Chicago, Illinois time
on a business day, and otherwise on the next business day. Such notices,
demands and other communications shall be sent to the Investors and to the
Company at the addresses indicated below (or at such other address as shall be
given in writing by one party to the others):

 

If to the Company:

 

Solera Holdings, LLC

12230 El Camino Real

Suite 200

San Diego, CA  92130

Attention:  Chief Executive Officer

Telephone:  (858)
812-2870

Facsimile:    (858)
812-3011

 

21

 

with copies to:

 

GTCR Golder Rauner,
L.L.C.

6100 Sears Tower

Chicago, Illinois  60606-6402

Attention:   Philip
A. Canfield

Craig A. Bondy

Telephone:  (312)
382-2200

Facsimile:   (312)
382-2201

 

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, Illinois  60601

Attention:   Stephen
L. Ritchie, P.C.

Telephone: (312) 861-2000

Facsimile:  (312) 861-2200

 

If to any of the Investors:

 

GTCR Golder Rauner, L.L.C.

6100 Sears Tower

Chicago, Illinois  60606-6402

Attention:   Philip
A. Canfield

Craig A. Bondy

Telephone:  (312)
382-2200

Facsimile:   (312) 382-2201

 

with a copy to:

 

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, Illinois  60601

Attention:   Stephen
L. Ritchie, P.C.

Telephone: (312) 861-2000

Facsimile:  (312) 861-2200

 

or to such other address
or to the attention of such other person as the recipient party has specified
by prior written notice to the sending party.

 

22

 

7O.          Entire Agreement.
This Agreement, those documents expressly referred to herein and other
documents of even date herewith embody the complete agreement and understanding
among the parties and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, that
may have related to the subject matter hereof in any way.

 

7P.           No Strict
Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties hereto, and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this Agreement.

 

*     *    
*     *     *

 

23

IN WITNESS WHEREOF, the parties hereto have executed
this Unit Purchase Agreement as of the date first above written.

 

	
   

  	
  SOLERA
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  	
   

  
	
   

  	
  Name:

  	
  Tony Aquila

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR
  FUND VIII, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Partners VIII,
  L.P.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Golder Rauner II, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
   

  	
  Name:

  	
  Philip A. Canfield

  
	
   

  	
  Its:

  	
  Principal

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR
  FUND VIII/B, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Partners VIII,
  L.P.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Golder Rauner II, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
   

  	
  Name:

  	
  Philip A. Canfield

  
	
   

  	
  Its:

  	
  Principal

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR
  CO-INVEST II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GTCR Golder Rauner II, L.L.C.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
   

  	
  Name:

  	
  Philip A. Canfield

  
	
   

  	
  Its:

  	
  Principal

  

 

24

 

EXHIBIT A

CERTIFICATE OF FORMATION

OF

SOLERA HOLDINGS, LLC

This Certificate of Formation is being executed as of
March 25, 2005, for the purpose of forming a limited liability company pursuant
to the Delaware Limited Liability Company Act, 6 Del. C. §§
18-101, et  seq.

The undersigned, being duly authorized to execute and
file this Certificate, does hereby certify as follows:

1.             Name.  The
name of the limited liability company is Solera Holdings, LLC (the “Company”).

2.             Registered Office and
Registered Agent.  The Company’s
registered office in the State of Delaware is located at 9 East Loockerman
Street, Suite #1B, City of Dover, Kent County, Delaware 19901.  The registered agent of the Company for
service of process at such address is National Registered Agents, Inc.

IN WITNESS WHEREOF, the undersigned has duly executed
this Certificate of Formation as of the day and year first above written.

	
   

  	
  By:

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