Document:

Exhibit 4.5

 

Walter Energy, Inc.

 

 

INDENTURE

 

Dated as of March 19, 2010

 

 

Union Bank, National
Association

 

as Trustee

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I. DEFINITIONS AND INCORPORATION BY
  REFERENCE

  	
  1

  
	
   

  	
   

  
	
  Section 1.1

  	
  Definitions

  	
  1

  
	
  Section 1.2

  	
  Other
  Definitions

  	
  5

  
	
  Section 1.3

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
  5

  
	
  Section 1.4

  	
  Rules of
  Construction

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE II. THE SECURITIES

  	
  6

  
	
   

  	
   

  
	
  Section 2.1

  	
  Issuable
  in Series

  	
  6

  
	
  Section 2.2

  	
  Establishment
  of Terms of Series of Securities

  	
  6

  
	
  Section 2.3

  	
  Execution
  and Authentication

  	
  9

  
	
  Section 2.4

  	
  Registrar
  and Paying Agent

  	
  10

  
	
  Section 2.5

  	
  Paying
  Agent to Hold Money in Trust

  	
  11

  
	
  Section 2.6

  	
  Securityholder
  Lists

  	
  11

  
	
  Section 2.7

  	
  Transfer
  and Exchange

  	
  11

  
	
  Section 2.8

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  	
  12

  
	
  Section 2.9

  	
  Outstanding
  Securities

  	
  13

  
	
  Section 2.10

  	
  Treasury
  Securities

  	
  13

  
	
  Section 2.11

  	
  Temporary
  Securities

  	
  13

  
	
  Section 2.12

  	
  Cancellation

  	
  14

  
	
  Section 2.13

  	
  Defaulted
  Interest

  	
  14

  
	
  Section 2.14

  	
  Special
  Record Dates

  	
  14

  
	
  Section 2.15

  	
  Global
  Securities

  	
  15

  
	
  Section 2.16

  	
  CUSIP
  Numbers

  	
  16

  
	
  Section 2.17

  	
  Persons
  Deemed Owners

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE III. REDEMPTION

  	
  17

  
	
   

  	
   

  
	
  Section 3.1

  	
  Notice
  to Trustee

  	
  17

  
	
  Section 3.2

  	
  Selection
  of Securities to be Redeemed

  	
  17

  
	
  Section 3.3

  	
  Notice
  of Redemption

  	
  17

  
	
  Section 3.4

  	
  Effect
  of Notice of Redemption

  	
  18

  
	
  Section 3.5

  	
  Deposit
  of Redemption Price

  	
  18

  
	
  Section 3.6

  	
  Securities
  Redeemed in Part

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV. COVENANTS

  	
  19

  
	
   

  	
   

  
	
  Section 4.1

  	
  Payment
  of Principal and Interest

  	
  19

  
	
  Section 4.2

  	
  Additional
  Amounts

  	
  19

  
	
  Section 4.3

  	
  Maintenance
  of Office or Agency

  	
  19

  
	
  Section 4.4

  	
  SEC
  Reports

  	
  20

  
	
  Section 4.5

  	
  Compliance
  Certificate

  	
  21

  
	
  Section 4.6

  	
  Taxes

  	
  21

  

 

i

 

	
  Section 4.7

  	
  Stay,
  Extension and Usury Laws

  	
  21

  
	
  Section 4.8

  	
  Corporate
  Existence

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE V. SUCCESSORS

  	
  22

  
	
   

  	
   

  
	
  Section 5.1

  	
  Merger,
  Consolidation, or Sale of Assets

  	
  22

  
	
  Section 5.2

  	
  Successor
  Person Substituted

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI. DEFAULTS AND REMEDIES

  	
  23

  
	
   

  	
   

  
	
  Section 6.1

  	
  Events
  of Default

  	
  23

  
	
  Section 6.2

  	
  Acceleration

  	
  24

  
	
  Section 6.3

  	
  Other
  Remedies

  	
  25

  
	
  Section 6.4

  	
  Waiver
  of Past Defaults

  	
  25

  
	
  Section 6.5

  	
  Control
  by Majority

  	
  26

  
	
  Section 6.6

  	
  Limitation
  on Suits

  	
  26

  
	
  Section 6.7

  	
  Rights
  of Holders of Securities to Receive Payment

  	
  26

  
	
  Section 6.8

  	
  Collection
  Suit by Trustee

  	
  27

  
	
  Section 6.9

  	
  Trustee
  May File Proofs of Claim

  	
  27

  
	
  Section 6.10

  	
  Priorities

  	
  27

  
	
  Section 6.11

  	
  Undertaking
  for Costs

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII. TRUSTEE

  	
  28

  
	
   

  	
   

  
	
  Section 7.1

  	
  Duties
  of Trustee

  	
  28

  
	
  Section 7.2

  	
  Rights
  of Trustee

  	
  29

  
	
  Section 7.3

  	
  Individual
  Rights of Trustee

  	
  30

  
	
  Section 7.4

  	
  Trustee’s
  Disclaimer

  	
  30

  
	
  Section 7.5

  	
  Notice
  of Defaults

  	
  31

  
	
  Section 7.6

  	
  Reports
  by Trustee to Holders

  	
  31

  
	
  Section 7.7

  	
  Compensation
  and Indemnity

  	
  31

  
	
  Section 7.8

  	
  Replacement
  of Trustee

  	
  32

  
	
  Section 7.9

  	
  Successor
  Trustee by Merger, etc.

  	
  33

  
	
  Section 7.10

  	
  Eligibility;
  Disqualification

  	
  33

  
	
  Section 7.11

  	
  Preferential
  Collection of Claims Against Company

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII. LEGAL DEFEASANCE AND COVENANT
  DEFEASANCE

  	
  33

  
	
   

  	
   

  
	
  Section 8.1

  	
  Option
  to Effect Legal Defeasance or Covenant Defeasance

  	
  33

  
	
  Section 8.2

  	
  Legal
  Defeasance and Discharge

  	
  33

  
	
  Section 8.3

  	
  Covenant
  Defeasance

  	
  34

  
	
  Section 8.4

  	
  Conditions
  to Legal or Covenant Defeasance

  	
  35

  
	
  Section 8.5

  	
  Deposited
  Money and Government Securities to be Held in Trust; Other Miscellaneous
  Provisions

  	
  36

  
	
  Section 8.6

  	
  Repayment
  to Company

  	
  36

  
	
  Section 8.7

  	
  Reinstatement

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX. AMENDMENTS AND WAIVERS

  	
  37

  

 

ii

 

	
  Section 9.1

  	
  Without
  Consent of Holders

  	
  37

  
	
  Section 9.2

  	
  With
  Consent of Holders

  	
  38

  
	
  Section 9.3

  	
  Limitations

  	
  39

  
	
  Section 9.4

  	
  Compliance
  with Trust Indenture Act

  	
  40

  
	
  Section 9.5

  	
  Revocation
  and Effect of Consents

  	
  40

  
	
  Section 9.6

  	
  Notation
  on or Exchange of Securities

  	
  41

  
	
  Section 9.7

  	
  Trustee
  Protected

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE X. GUARANTEES

  	
  41

  
	
   

  	
   

  
	
  Section 10.1

  	
  Guarantees

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI. SATISFACTION AND DISCHARGE

  	
  41

  
	
   

  	
   

  
	
  Section 11.1

  	
  Satisfaction
  and Discharge

  	
  41

  
	
  Section 11.2

  	
  Application
  of Trust Money

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII. MISCELLANEOUS

  	
  43

  
	
   

  	
   

  
	
  Section 12.1

  	
  Trust
  Indenture Act Controls

  	
  43

  
	
  Section 12.2

  	
  Notices

  	
  43

  
	
  Section 12.3

  	
  Communication
  by Holders with Other Holders

  	
  44

  
	
  Section 12.4

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
  44

  
	
  Section 12.5

  	
  Statements
  Required in Certificate or Opinion

  	
  45

  
	
  Section 12.6

  	
  Rules by
  Trustee and Agents

  	
  45

  
	
  Section 12.7

  	
  Legal
  Holidays

  	
  45

  
	
  Section 12.8

  	
  No
  Recourse Against Others

  	
  45

  
	
  Section 12.9

  	
  Counterparts

  	
  46

  
	
  Section 12.10

  	
  Governing
  Law; Waiver of Trial by Jury

  	
  46

  
	
  Section 12.11

  	
  No
  Adverse Interpretation of Other Agreements

  	
  46

  
	
  Section 12.12

  	
  Successors

  	
  46

  
	
  Section 12.13

  	
  Severability

  	
  46

  
	
  Section 12.14

  	
  Table
  of Contents, Headings, Etc.

  	
  46

  
	
  Section 12.15

  	
  Securities
  in a Foreign Currency

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII. SINKING FUNDS

  	
  47

  
	
   

  	
   

  
	
  Section 13.1

  	
  Applicability
  of Article

  	
  47

  
	
  Section 13.2

  	
  Satisfaction
  of Sinking Fund Payments with Securities

  	
  47

  
	
  Section 13.3

  	
  Redemption of Securities for Sinking
  Fund

  	
  48

  

 

iii

 

WALTER ENERGY, INC.

 

Reconciliation and tie between Trust
Indenture Act of 1939 and the Indenture

 

	
  § 310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  Not
  Applicable

  
	
  (a)(4)

  	
   

  	
  Not
  Applicable

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.10

  
	
  (c)

  	
   

  	
  Not
  Applicable

  
	
  § 311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  Not
  Applicable

  
	
  § 312(a)

  	
   

  	
  2.6

  
	
  (b)

  	
   

  	
  12.3

  
	
  (c)

  	
   

  	
  12.3

  
	
  § 313(a)

  	
   

  	
  7.6

  
	
  (b)(1)

  	
   

  	
  Not
  Applicable

  
	
  (b)(2)

  	
   

  	
  Not
  Applicable

  
	
  (c)(1)

  	
   

  	
  7.6

  
	
  (c)(2)

  	
   

  	
  7.6

  
	
  (c)(3)

  	
   

  	
  Not
  Applicable

  
	
  (d)

  	
   

  	
  7.6

  
	
  § 314(a)

  	
   

  	
  4.4,
  4.5

  
	
  (b)

  	
   

  	
  Not
  Applicable

  
	
  (c)(1)

  	
   

  	
  12.4

  
	
  (c)(2)

  	
   

  	
  12.4

  
	
  (c)(3)

  	
   

  	
  Not
  Applicable

  
	
  (d)

  	
   

  	
  Not
  Applicable

  
	
  (e)

  	
   

  	
  12.5

  
	
  (f)

  	
   

  	
  Not
  Applicable

  
	
  § 315(a)

  	
   

  	
  7.1

  
	
  (b)

  	
   

  	
  7.5

  
	
  (c)

  	
   

  	
  7.1

  
	
  (d)

  	
   

  	
  7.1

  
	
  (e)

  	
   

  	
  6.11

  
	
  § 316(a)

  	
   

  	
  2.10

  
	
  (a)(1)(A)

  	
   

  	
  6.5

  
	
  (a)(1)(B)

  	
   

  	
  6.4

  
	
  (b)

  	
   

  	
  6.7

  
	
  (c)

  	
   

  	
  2.14,
  9.5(d)

  
	
  § 317(a)(1)

  	
   

  	
  6.8

  
	
  (a)(2)

  	
   

  	
  6.9

  
	
  (b)

  	
   

  	
  2.5

  
	
  § 318(a)

  	
   

  	
  12.1

  

 

Note:                   This reconciliation and tie shall not, for
any purpose, be deemed to be part of the Indenture. 

 

iv

 

Indenture dated as of March 19, 2010 between
Walter Energy, Inc., a Delaware corporation (“Company”), and Union Bank,
National Association, as trustee (“Trustee”).

 

Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the
Securities (or applicable Series thereof) issued under this Indenture.

 

ARTICLE
I.

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1             Definitions.

 

“Additional Amounts” means any additional amounts
which are required hereby or by any Security, under circumstances specified
herein or therein, to be paid by the Company in respect of certain taxes
imposed on Holders specified herein or therein and which are owing to such
Holders.

 

“Affiliate” of any specified person means any other
person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified person. For the purposes of this
definition, “control” (including, with correlative meanings, the terms “controlled
by” and “under common control with”), as used with respect to any person, shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of such person, whether through the
ownership of voting securities or by agreement or otherwise.

 

“Agent” means any Registrar, Paying Agent or Service
Agent.

 

“Authorized Newspaper” means a newspaper in an
official language of the country of publication customarily published at least
once a day for at least five days in each calendar week and of general
circulation in the place in connection with which the term is used. If it shall
be impractical in the opinion of the Trustee to make any publication of any
notice required hereby in an Authorized Newspaper, any publication or other
notice in lieu thereof that is made or given by the Trustee shall constitute a
sufficient publication of such notice.

 

“Bearer” means anyone in possession from time to
time of a Bearer Security.

 

“Bearer Security” means any Security, including any
interest coupon appertaining thereto, that does not provide for the
identification of the Holder thereof.

 

“Board of Directors” means the Board of Directors of
the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a resolution
certified by the Secretary or an Assistant Secretary of the Company to have
been adopted by the Board of Directors or pursuant to authorization by the
Board of Directors and to be in full force and effect on the date of the certificate
and delivered to the Trustee.

 

 

“Business Day” means, unless otherwise provided by
Board Resolution, Officers’ Certificate or supplemental indenture hereto for a
particular Series, any day except a Saturday, Sunday or a legal holiday in The
City of New York or in the city where the Corporate Trust Office is located on
which banking institutions are authorized or required by law, regulation or
executive order to close.

 

“Capital Stock” means:

 

(1)           in
the case of a corporation, corporate stock;

 

(2)           in
the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;

 

(3)           in
the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and

 

(4)           any
other interest or participation that confers on a person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
person, but excluding from all of the foregoing any debt securities convertible
into Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock.

 

“Company” means the party named as such above until
a successor replaces it pursuant to Article V hereof and thereafter means
the successor.

 

“Company Order” means a written order signed in the
name of the Company by two Officers of the Company.

 

“Corporate Trust Office” means the office of the
Trustee at which at any particular time its corporate trust business shall be
principally administered.

 

“Default” means any event that is, or after notice
or passage of time or both would be, an Event of Default.

 

“Depository” means, with respect to the Securities
of any Series issuable or issued in whole or in part in the form of one or
more Global Securities, the person designated as Depository for such Series by
the Company, which Depository shall be a clearing agency registered under the
Exchange Act; and if at any time there is more than one such person, “Depository”
as used with respect to the Securities of any Series shall mean the
Depository with respect to the Securities of such Series.

 

“Discount Security” means any Security that provides
for an amount less than the stated principal amount thereof to be due and
payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2.

 

“Dollars” and “$” means the currency of The United
States of America.

 

2

 

“Equity Interests” means Capital Stock and all
warrants, options or other rights to acquire Capital Stock (but excluding any
debt security that is convertible into, or exchangeable for, Capital Stock).

 

“Exchange Act” means the Securities Exchange Act of
1934, as amended.

 

“Foreign Currency” means any currency or currency
unit issued by a government other than the government of The United States of
America.

 

“GAAP” means, unless otherwise specified with respect to Securities
of a particular Series, generally accepted accounting principles in the
United States, which are in effect as of the time when and for the period as to
which such accounting principles are to be applied.

 

“Global Security” or “Global Securities” means a
Security or Securities, as the case may be, in the form established pursuant to
Section 2.2 evidencing all or part of a Series of Securities, issued
to the Depository for such Series or its nominee, and registered in the
name of such Depository or nominee.

 

“Government Securities” means direct obligations of,
or obligations guaranteed by, the United States of America, and the payment for
which the United States pledges its full faith and credit.

 

“Guarantor” means any person that issues a guarantee
of the Securities, either on the Issue Date or after the Issue Date in accordance
with the terms of this Indenture; provided, that upon the release and discharge
of such person from its guarantee in accordance with this Indenture, such
person shall cease to be a Guarantor.

 

“Holder” or “Securityholder” means a person in whose
name a Security is registered or the holder of a Bearer Security.

 

“Indenture” means this Indenture as amended or
supplemented from time to time and shall include the form and terms of
particular Series of Securities established as contemplated hereunder.

 

“interest” when used with respect to any Discount
Security which by its terms bears interest only after Maturity, means interest
payable after Maturity.

 

“Issue Date” means with respect to any Series of
Securities the first date such Securities are issued under this Indenture.

 

“Lien” 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 or any agreement to give any security interest).

 

“Maturity,” when used with respect to any Security
or installment of principal thereof, means the date on which the principal of
such Security or such installment of principal 

 

3

 

becomes due and payable as
therein or herein provided, whether at the Stated Maturity or by declaration of
acceleration, call for redemption, notice of option to elect repayment or
otherwise.

 

“Officer” means the Chief Executive Officer, the
Chief Financial Officer, the President, any Vice-President, the Treasurer, the
Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

 

“Officers’ Certificate” means a certificate signed
by two Officers, one of whom (in the case of an Officers’ Certificate delivered
under Section 4.5 hereof) must be the Company’s principal executive
officer, the principal financial officer or the principal accounting officer.

 

“Opinion of Counsel” means a written opinion of
legal counsel who is acceptable to the Trustee. The counsel may be an employee
of or counsel to the Company.

 

“person” means any individual, corporation,
partnership, joint venture, association, limited liability company, joint-stock
company, trust, unincorporated organization or other entity or government or
any agency or political subdivision thereof.

 

“principal” of a Security means the principal of the
Security plus, when appropriate, the premium, if any, on, and any Additional
Amounts in respect of, the Security.

 

“Responsible Officer” means, when used with respect
to the Trustee, any officer within the corporate trust department of the
Trustee, including any vice president, assistant vice president, assistant
treasurer, trust officer or any other officer of the Trustee who customarily
performs functions similar to those performed by the persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of such person’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility or be part of the
group that has such responsibility for the administration of this Indenture.

 

“SEC” means the Securities and Exchange Commission
or any successor agency.

 

“Securities” means the debentures, notes or other
debt instruments of the Company of any Series authenticated and delivered
under this Indenture.

 

“Series” or “Series of Securities” means each
series of debentures, notes or other debt instruments of the Company created
pursuant to Sections 2.1 and 2.2 hereof.

 

“Stated Maturity” when used with respect to any
Security or any installment of principal thereof or interest thereon, means the
date specified in such Security as the fixed date on which the principal of
such Security or such installment of principal or interest is due and payable.

 

“Subsidiary” of any specified person means any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital 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 such person or one or more of the other Subsidiaries of that person or a
combination thereof.

 

4

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S.
Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after
such date, “TIA” means, to the extent required by any such amendment, the Trust
Indenture Act as so amended.

 

“Trustee” means the person named as the “Trustee” in
the first paragraph of this instrument until a successor Trustee shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter “Trustee” shall mean each person who is then a Trustee hereunder,
and if at any time there is more than one such person, “Trustee” as used with
respect to the Securities of any Series shall mean the Trustee with respect
to Securities of that Series.

 

Section 1.2             Other Definitions.

 

	
  TERM

  	
   

  	
  DEFINED IN

  SECTION

  
	
  “Bankruptcy
  Law”

  	
   

  	
  6.1

  
	
  “Covenant
  Defeasance”

  	
   

  	
  8.3

  
	
  “Custodian”

  	
   

  	
  6.1

  
	
  “Depository
  Entity”

  	
   

  	
  9.5

  
	
  “Event
  of Default”

  	
   

  	
  6.1

  
	
  “Legal
  Defeasance”

  	
   

  	
  8.2

  
	
  “Legal
  Holiday”

  	
   

  	
  12.7

  
	
  “mandatory
  sinking fund payment”

  	
   

  	
  13.1

  
	
  “Market
  Exchange Rate”

  	
   

  	
  12.15

  
	
  “optional
  sinking fund payment”

  	
   

  	
  13.1

  
	
  “Paying
  Agent”

  	
   

  	
  2.4

  
	
  “Registrar”

  	
   

  	
  2.4

  
	
  “Service
  Agent”

  	
   

  	
  2.4

  
	
   

  	
   

  	
   

  

 

Section 1.3             Incorporation by Reference of
Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this
Indenture. The following TIA terms used in this Indenture have the following
meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Securityholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means
the Trustee.

 

“obligor” on the indenture securities means the
Company, any successor obligor upon the Securities or a Guarantor.

 

5

 

 

All
other terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule under the TIA and not
otherwise defined herein are used herein as so defined.

 

Section 1.4             Rules of
Construction.

 

Unless
the context otherwise requires:

 

(a)           a term has the meaning assigned to
it;

 

(b)           an accounting term not otherwise
defined has the meaning assigned to it in accordance with GAAP;

 

(c)           “or” is not exclusive;

 

(d)           “will” shall be interpreted to
express a command;

 

(e)           words in the singular include the
plural, and in the plural include the singular;

 

(f)            provisions apply to successive
events and transactions; and

 

(g)           references to sections of or rules under
the Securities Act will be deemed to include substitute, replacement of
successor sections or rules adopted by the SEC from time to time.

 

ARTICLE II.

THE SECURITIES

 

Section 2.1             Issuable
in Series.

 

The
aggregate principal amount of Securities that may be authenticated and
delivered under this Indenture is unlimited. The Securities may be issued in
one or more Series. All Securities of a Series shall be identical except
as may be set forth in a Board Resolution, a supplemental indenture or an
Officers’ Certificate detailing the adoption of the terms thereof pursuant to
the authority granted under a Board Resolution. In the case of Securities of a Series to
be issued from time to time, the Board Resolution, Officers’ Certificate or
supplemental indenture detailing the adoption of the terms thereof pursuant to
authority granted under a Board Resolution may provide for the method by which
specified terms (such as interest rate, maturity date, record date or date from
which interest shall accrue) are to be determined. Securities may differ
between Series in respect of any matters, provided that all Series of
Securities shall be equally and ratably entitled to the benefits of the
Indenture.

 

Section 2.2             Establishment
of Terms of Series of Securities.

 

At
or prior to the issuance of any Securities within a Series, the following shall
be established by or pursuant to a Board Resolution, and set forth or
determined in the manner

 

6

 

provided
in a Board Resolution or in a supplemental indenture or in an Officers’ Certificate
pursuant to authority granted under a Board Resolution:

 

(a)           the title of the Series (which shall distinguish the
Securities of that particular Series from the Securities of any other
Series);

 

(b)           the price or prices (expressed as a percentage of the
principal amount thereof) at which the Securities of the Series will be
issued;

 

(c)           any limit upon the aggregate principal amount of the
Securities of the Series which may be authenticated and delivered under
this Indenture (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or
9.6);

 

(d)           whether the Securities rank as senior Securities, senior
subordinated Securities or subordinated Securities or any combination thereof
and the terms of any such subordination;

 

(e)           the form and terms of any guarantee of any Securities of
the series;

 

(f)            the terms and conditions, if any, upon which the
Securities of the series shall be exchanged for or converted into other
securities of the Company or securities of another person;

 

(g)           the provisions, if any, relating to any security provided
for the Securities of the Series;

 

(h)           the date or dates on which the principal of the Securities
of the Series is payable;

 

(i)            the rate or rates (which may be fixed or variable) per
annum or, if applicable, the method used to determine such rate or rates
(including, but not limited to, any currency exchange rate, commodity,
commodity index, stock exchange index or financial index) at which the
Securities of the Series shall bear interest, if any, the date or dates
from which such interest, if any, shall accrue, or the method for determining
the date or dates from which interest will accrue, the date or dates on which
such interest, if any, shall commence and be payable and any regular record
date for the interest payable on any interest payment date;

 

(j)            the manner in which the amounts of payment of principal
of or interest, if any, on the Securities of the Series will be
determined, if such amounts may be determined by reference to an index based on
a currency or currencies or by reference to a currency exchange rate,
commodity, commodity index, stock exchange index or financial index;

 

(k)           if other than the Corporate Trust Office, the place or
places where the principal of and interest, if any, on the Securities of the Series shall
be payable, where the Securities of such Series may be surrendered for
registration of transfer or exchange and

 

7

 

where notices and demands to or upon the Company in respect of the
Securities of such Series and this Indenture may be served, and the method
of such payment, if by wire transfer, mail or other means;

 

(l)            if applicable, the period or periods within which, the
price or prices at which and the terms and conditions upon which the Securities
of the Series may be redeemed, in whole or in part, at the option of the
Company;

 

(m)          the obligation, if any, of the Company to redeem or
purchase the Securities of the Series pursuant to any sinking fund or
analogous provisions or at the option of a Holder thereof and the period or
periods within which, the price or prices at which and the terms and conditions
upon which Securities of the Series shall be redeemed or purchased, in
whole or in part, pursuant to such obligation;

 

(n)           if other than denominations of $2,000 and any integral
multiple of $1,000 in excess thereof, the denominations in which the Securities
of the Series shall be issuable;

 

(o)           the forms of the Securities of the Series in bearer
or fully registered form (and, if in fully registered form, whether the
Securities of the Series shall be issued in whole or in part in the form
of a Global Security or Securities, and the terms and conditions, if any, upon
which such Global Security or Securities may be exchanged in whole or in part
for other individual Securities);

 

(p)           any depositories, interest rate calculation agents,
exchange rate calculation agents or other agents with respect to Securities of
such Series if other than those appointed herein;

 

(q)           the Trustee for the series of Securities, if other than
the Trustee named on the first page hereof or its successors;

 

(r)            if other than the principal amount thereof, the portion
of the principal amount of the Securities of the Series that shall be
payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;

 

(s)           any addition to or change in the covenants set forth in
Articles IV or V which applies to Securities of the Series;

 

(t)            any addition to or change in the Events of Default which
applies to any Securities of the Series and any change in the right of the
Trustee or the requisite Holders of such Securities to declare the principal amount
thereof due and payable pursuant to Section 6.2;

 

(u)           if other than Dollars, the currency of denomination of the
Securities of the Series, which may be any Foreign Currency, and if such
currency of denomination is a composite currency, the agency or organization,
if any, responsible for overseeing such composite currency;

 

8

 

(v)           if other than Dollars, the designation of the currency,
currencies or currency units in which payment of the principal of and interest,
if any, on the Securities of the Series will be made;

 

(w)          if payments of principal of or interest, if any, on the
Securities of the Series are to be made in one or more currencies or
currency units other than that or those in which such Securities are
denominated, the manner in which the exchange rate with respect to such
payments will be determined;

 

(x)            the securities exchange(s) on which the Securities
of the Series will be listed, if any;

 

(y)           additions or deletions to or changes in the provisions
relating to covenant defeasance and legal defeasance;

 

(z)            additions or deletions to or changes in the provisions
relating to satisfaction and discharge of the Indenture;

 

(aa)         additions or deletions to or changes in the provisions
relating to the modification of the Indenture both with and without the consent
of holders of Securities of the Series issued under the Indenture; and

 

(bb)         any other terms of the Securities of the Series (which
terms may modify, supplement or delete any provision of this Indenture with
respect to such Series; provided, however, that no such term may modify or
delete any provision hereof if imposed by the TIA; and provided, further, that
any modification or deletion of the rights, duties or immunities of the Trustee
hereunder shall have been consented to in writing by the Trustee).

 

All
Securities of any one Series need not be issued at the same time and may
be issued from time to time, consistent with the terms of this Indenture, if so
provided by or pursuant to the Board Resolution, supplemental indenture hereto
or Officers’ Certificate referred to above, and the authorized principal amount
of any Series may be increased to provide for issuances of additional
Securities of such Series, unless otherwise provided in such Board Resolution,
supplemental indenture or Officers’ Certificate.

 

Section 2.3             Execution
and Authentication.

 

Two
Officers shall sign the Securities for the Company by manual or facsimile
signature.

 

If
an Officer whose signature is on a Security no longer holds that office at the
time the Security is authenticated, the Security shall nevertheless be valid.

 

A
Security shall not be valid until authenticated by the manual  signature of the Trustee or an
authenticating agent. The signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.

 

9

 

The
Trustee shall at any time, and from time to time, authenticate Securities for
original issue in the principal amount provided in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate, upon receipt by the
Trustee of a Company Order. Each Security shall be dated the date of its
authentication unless otherwise provided by a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate.

 

The
aggregate principal amount of Securities of any Series outstanding at any
time may not exceed any limit upon the maximum principal amount for such Series set
forth in the Board Resolution, supplemental indenture hereto or Officers’
Certificate delivered pursuant to Section 2.2, except as provided in Section 2.9.

 

Prior
to the issuance of Securities of any Series, the Trustee shall have received
and (subject to Section 7.2) shall be fully protected in relying on: (a) the
Board Resolution, supplemental indenture hereto or Officers’ Certificate
establishing the form of the Securities of that Series or of Securities
within that Series and the terms of the Securities of that Series or
of Securities within that Series, (b) an Officers’ Certificate complying
with Section 12.4, and (c) an Opinion of Counsel complying with Section 12.4.

 

The
Trustee shall have the right to decline to authenticate and deliver any
Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not be taken lawfully; or (b) if the
Trustee in good faith by its board of directors or trustees, executive
committee or a trust committee of directors and/or vice-presidents shall
determine that such action would expose the Trustee to personal liability to
Holders of any then outstanding Series of Securities.

 

The
Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities. An authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with the Company
or an Affiliate of the Company.

 

Section 2.4             Registrar
and Paying Agent.

 

The
Company shall maintain, with respect to each Series of Securities, at the
place or places specified with respect to such Series pursuant to Section 2.2,
an office or agency where Securities of such Series may be presented or
surrendered for payment (“Paying Agent”), where Securities of such Series may
be surrendered for registration of transfer or exchange (“Registrar”) and where
notices and demands to or upon the Company in respect of the Securities of such
Series and this Indenture may be served (“Service Agent”). The Registrar
shall keep a register with respect to each Series of Securities and to
their transfer and exchange. The Company will give prompt written notice to the
Trustee of the name and address, and any change in the name or address, of each
Registrar, Paying Agent or Service Agent. If at any time the Company shall fail
to maintain any such required Registrar, Paying Agent or Service Agent or shall
fail to furnish the Trustee with the name and address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

 

10

 

The
Company may also from time to time designate one or more co-registrars,
additional paying agents or additional service agents and may from time to time
rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligations to
maintain a Registrar, Paying Agent and Service Agent in each place so specified
pursuant to Section 2.2 for Securities of any Series for such
purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the name or address of any
such co-registrar, additional paying agent or additional service agent. The
term “Registrar” includes any co-registrar; the term “Paying Agent” includes
any additional paying agent; and the term “Service Agent” includes any
additional service agent.

 

The
Company hereby appoints the Trustee the initial Registrar, Paying Agent and
Service Agent for each Series unless another Registrar, Paying Agent or
Service Agent, as the case may be, is appointed prior to the time Securities of
that Series are first issued.

 

Section 2.5             Paying
Agent to Hold Money in Trust.

 

The
Company shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money
held by the Paying Agent for the payment of principal of or interest on the Series of
Securities, and will promptly notify the Trustee of any default by the Company
in making any such payment. While any such default continues, the Trustee may
require a Paying Agent to pay all money held by it to the Trustee. The Company
at any time may require a Paying Agent to pay all money held by it to the
Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the
Company or a Subsidiary of the Company) shall have no further liability for the
money. If the Company or a Subsidiary of the Company acts as Paying Agent, it
shall segregate and hold in a separate trust fund for the benefit of
Securityholders of any Series of Securities all money held by it as Paying
Agent.

 

Section 2.6             Securityholder
Lists.

 

The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Securityholders
of each Series of Securities and shall otherwise comply with TIA § 312(a).
If the Trustee is not the Registrar, the Company shall furnish, or shall cause the
Registrar to furnish, to the Trustee at least ten days before each interest
payment date, but in any event at least once every six months, and at such
other times as the Trustee may request in writing a list, in such form and as
of such date as the Trustee may reasonably require, of the names and addresses
of Securityholders of each Series of Securities.

 

Section 2.7             Transfer
and Exchange.

 

Where
Securities of a Series are presented to the Registrar or a co-registrar
with a request to register a transfer or to exchange them for an equal
principal amount of Securities of the same Series, the Registrar shall register
the transfer or make the exchange if its requirements for such transactions are
met. To permit registrations of transfers and exchanges, the Trustee shall
authenticate Securities at the Registrar’s request. No service charge shall be
made for any

 

11

 

registration
of transfer or exchange (except as otherwise expressly permitted herein), but
the Company may require payment of a sum sufficient to cover any transfer tax
or similar governmental charge payable in connection therewith (other than any
such transfer tax or similar governmental charge payable upon exchanges
pursuant to Sections 2.11, 3.6 or 9.6).

 

Every
Security presented or surrendered for registration of transfer or for exchange
shall (if so required by the Company or the Registrar) be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Registrar duly executed, by the Holder thereof or his attorney
duly authorized in writing.

 

Neither
the Company nor the Registrar shall be required (a) to issue, register the
transfer of, or exchange Securities of any Series for the period beginning
at the opening of business fifteen days immediately preceding the mailing of a
notice of redemption of Securities of that Series selected for redemption
and ending at the close of business on the day of such mailing, or (b) to
register the transfer of or exchange Securities of any Series selected,
called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part.

 

Section 2.8             Mutilated,
Destroyed, Lost and Stolen Securities.

 

If
any mutilated Security is surrendered to the Trustee, the Company shall execute
and the Trustee shall authenticate and make available for delivery in exchange
therefor a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

 

If
there shall be delivered to the Company and the Trustee (a) evidence to
their satisfaction of the destruction, loss or theft of any Security and (b) such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Company
or the Trustee that such Security has been acquired by a bona fide purchaser,
the Company shall execute and upon its request the Trustee shall authenticate
and make available for delivery, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same Series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

 

In
case any such mutilated, destroyed, lost or stolen Security has become or is
about to become due and payable, the Company in its discretion may, instead of
issuing a new Security, pay such Security.

 

Upon
the issuance of any new Security under this Section, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Trustee) connected therewith.

 

Every
new Security of any Series issued pursuant to this Section in lieu of
any destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or
stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that Series duly issued hereunder.

 

12

 

The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.

 

Section 2.9             Outstanding
Securities.

 

Subject
to Section 2.10, the Securities outstanding at any time are all the
Securities authenticated by the Trustee except for those canceled by it, those
delivered to it for cancellation, those reductions in the interest in a Global
Security effected by the Trustee in accordance with the provisions hereof and
those described in this Section as not outstanding.

 

If
a Security is replaced pursuant to Section 2.8, it ceases to be
outstanding until the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

 

If
the Paying Agent (other than the Company, a Subsidiary of the Company or an
Affiliate of the Company) holds as of 11:00 a.m. Eastern Time on the date
of Maturity of Securities of a Series or on any day thereafter (in the
case money is deposited by the Company following the date of Maturity) money
sufficient to pay such Securities payable on such date of Maturity or on any
such later date, as the case may be, then on and after such date of Maturity or
such later date, as the case may be, such Securities of the Series cease
to be outstanding and interest on them ceases to accrue.

 

A
Security does not cease to be outstanding because the Company or an Affiliate
of the Company holds the Security.

 

In
determining whether the Holders of the requisite principal amount of
outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of a
Discount Security that shall be deemed to be outstanding for such purposes
shall be the amount of the principal thereof that would be due and payable as
of the date of such determination upon a declaration of acceleration of the
Maturity thereof pursuant to Section 6.2.

 

Section 2.10           Treasury
Securities.

 

In
determining whether the Holders of the required principal amount of Securities
of a Series have concurred in any request, demand, authorization,
direction, notice, consent or waiver, Securities of a Series owned by the
Company or an Affiliate of the Company shall be disregarded, except that for
the purposes of determining whether the Trustee shall be protected in relying
on any such request, demand, authorization, direction, notice, consent or
waiver only Securities of a Series that a Responsible Officer of the
Trustee knows are so owned shall be so disregarded.

 

Section 2.11           Temporary
Securities.

 

Until
definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary Securities upon a Company Order. Temporary
Securities shall be substantially in the form of definitive Securities but may
have variations that

 

13

 

the
Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee upon request shall authenticate
definitive Securities of the same Series and date of maturity in exchange
for temporary Securities. Until so exchanged, temporary Securities shall have
the same rights under this Indenture as the definitive Securities.

 

Section 2.12           Cancellation.

 

The
Company at any time may deliver Securities to the Trustee for cancellation. The
Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange, replacement or
payment. The Trustee shall cancel all Securities surrendered for transfer,
exchange, payment, replacement or cancellation and deliver such canceled
Securities to the Company, unless the Company otherwise directs; provided that
the Trustee shall not be required to destroy such Securities. The Company may
not issue new Securities to replace Securities that it has paid or delivered to
the Trustee for cancellation.

 

Section 2.13           Defaulted
Interest.

 

If
the Company defaults in a payment of interest on a Series of Securities,
it shall pay the defaulted interest, plus, to the extent permitted by law, any
interest payable on the defaulted interest, to the persons who are
Securityholders of the Series on a subsequent special record date. The
Company shall fix such special record date and the related payment date. At
least 15 days before such special record date, the Company shall mail to the
Trustee and to each Securityholder of the Series a notice that states such
special record date, the related payment date and the amount of interest to be
paid. The Company may pay defaulted interest in any other lawful manner.

 

Section 2.14           Special
Record Dates.

 

(a)           The Company may, but shall not be
obligated to, set a record date for the purpose of determining the identity of
Holders entitled to consent to any supplement, amendment or waiver permitted by
this Indenture. If a record date is fixed, the Holders of such Series and
Securities outstanding on such record date, and no other Holders, shall be
entitled to consent to such supplement, amendment or waiver or revoke any
consent previously given, whether or not such Holders remain Holders after such
record date. No consent shall be valid or effective for more than 90 days after
such record date unless consents from Holders of the principal amount of such Series and
Securities required hereunder for such amendment or waiver to be effective
shall have also been given and not revoked within such 90-day period.

 

(b)           The Company may, but shall not be
obligated to, fix any day as a record date for the purpose of determining the
Holders of any Series of Securities entitled to join in the giving or
making of any notice of Default, any declaration of acceleration, any request
to institute proceedings or any other similar direction. If a record date is
fixed, the Holders of such Series and Securities outstanding on such
record date, and no other Holders, shall be entitled to join in such notice,
declaration, request or direction, whether or not such Holders remain Holders
after such record date; provided, however, that no such action shall be
effective hereunder unless taken on or prior to the date 90 days after such
record date.

 

14

 

(c)           To the extent reasonably practicable,
the Company shall give the Trustee a 15-day advance written notice of any
special record date set in accordance with this Section 2.14.

 

Section 2.15           Global
Securities.

 

(a)           Terms of Securities. A Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate shall
establish whether the Securities of a Series shall be issued in whole or
in part in the form of one or more Global Securities and the Depository for
such Global Security or Securities.

 

(b)           Transfer and Exchange.
Notwithstanding any provisions to the contrary contained in Section 2.7 of
the Indenture and in addition thereto, any Global Security shall be
exchangeable pursuant to Section 2.7 of the Indenture for Securities
registered in the names of Holders other than the Depository for such Security
or its nominee only if (i) such Depository notifies the Company that it is
unwilling or unable to continue as Depository for such Global Security or if at
any time such Depository ceases to be a clearing agency registered under the
Exchange Act, and, in either case, the Company fails to appoint a successor
Depository registered as a clearing agency under the Exchange Act within 90
days of such event, (ii) the Company executes and delivers to the Trustee
an Officers’ Certificate to the effect that such Global Security shall be so exchangeable
(subject to the procedures of the Depository) or (iii) an Event of Default
with respect to the Securities represented by such Global Security shall have
happened and be continuing. Any Global Security that is exchangeable pursuant
to the preceding sentence shall be exchangeable for Securities registered in
such names as the Depository shall direct in writing in an aggregate principal
amount equal to the principal amount of the Global Security with like tenor and
terms.

 

Except
as provided in this Section 2.15(b), a Global Security may not be
transferred except as a whole by the Depository with respect to such Global
Security to a nominee of such Depository, by a nominee of such Depository to
such Depository or another nominee of such Depository or by the Depository or
any such nominee to a successor Depository or a nominee of such a successor
Depository.

 

(c)           Legend. Any Global Security
issued hereunder shall bear a legend in substantially the following form:

 

“Unless
this certificate is presented by an authorized representative of The Depository
Trust Company, a New York corporation (“DTC”), New York, New York, to the
issuer or its agent for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or such
other name as may be requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or such other entity as may be requested
by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co. has an interest herein.”

 

“Transfer
of this Global Security shall be limited to transfers in whole, but not in
part, to DTC, to nominees of DTC or to a successor thereof or such successor’s
nominee and

 

15

 

limited
to transfers made in accordance with the restrictions set forth in the
Indenture referred to herein.”

 

(d)                                 Acts of Holders. The
Depository, as a Holder, may appoint agents and otherwise authorize
participants to give or take any request, demand, authorization, direction,
notice, consent, waiver or other action which a Holder is entitled to give or
take under the Indenture.

 

(e)                                  Payments.
Notwithstanding the other provisions of this Indenture, unless otherwise
specified as contemplated by Section 2.2, payment of the principal of and
interest, if any, on any Global Security shall be made to the Holder thereof.

 

(f)                                    Consents,
Declaration and Directions. Except as provided in Section 2.15(e),
the Company, the Trustee and any Agent shall treat a person as the Holder of
such principal amount of outstanding Securities of such Series represented
by a Global Security as shall be specified in a written statement of the
Depository with respect to such Global Security, for purposes of obtaining any
consents, declarations, waivers or directions required to be given by the
Holders pursuant to this Indenture.

 

Section 2.16                                CUSIP Numbers.

 

The
Company in issuing the Securities may use “CUSIP” and/or other similar security
identifying numbers (if then generally in use), and, if so, the Trustee shall
use “CUSIP” numbers (and/or any such other security identifying numbers) in
notices of redemption as a convenience to Holders; provided that any such
notice may state that no representation is made as to the correctness of such
numbers either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other elements of
identification printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.

 

Section 2.17                                Persons Deemed
Owners.

 

Prior
to due presentment of a Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the person in
whose name such Security is registered in the register kept by the Registrar as
the owner of such Security for the purpose of receiving payment of principal of
and (subject to the record date provisions thereof) interest on and any
Additional Amounts with respect to, such Security and for all other purposes
whatsoever, whether or not any payment with respect to such Security shall be
overdue, and none of the Company, the Trustee or any agent of the Company or
the Trustee shall be affected by notice to the contrary. The Company, the
Trustee and any agent of the Company or the Trustee may treat the bearer of a
Bearer Security as the absolute owner thereof for the purpose of receiving
payment of principal of and interest on and any Additional Amounts with respect
to, such Security and for all other purposes whatsoever, whether or not any
payment with respect to such Security shall be overdue, and none of the
Company, the Trustee or any agent of the Company or the Trustee shall be
affected by notice to the contrary.

 

No
holder of any beneficial interest in any Global Security held on its behalf by
a Depository shall have any rights under this Indenture with respect to such
Global Security, and 

 

16

 

such
Depository may be treated by the Company, the Trustee and any agent of the
Company or the Trustee as the owner of such Global Security for all purposes
whatsoever.  None of the Company, the
Trustee, any Paying Agent or the Registrar will have any responsibility or
liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Security or for maintaining,
supervising or reviewing any records relating to such beneficial ownership
interests.

 

ARTICLE III.

REDEMPTION

 

Section 3.1                                      Notice to
Trustee.

 

The
Company may, with respect to any Series of Securities, reserve the right
to redeem and pay the Series of Securities or may covenant to redeem and
pay the Series of Securities or any part thereof prior to the Stated
Maturity thereof at such time and on such terms as provided for in such
Securities. If a Series of Securities is redeemable and the Company wants
or is obligated to redeem prior to the Stated Maturity thereof all or part of
the Series of Securities pursuant to the terms of such Securities, it
shall notify the Trustee of the redemption date and the principal amount of Series of
Securities to be redeemed. The Company shall give the notice at least 45 days
before the redemption date (or such shorter notice as may be acceptable to the
Trustee).

 

Section 3.2                                      Selection of
Securities to be Redeemed.

 

Unless
otherwise indicated for a particular Series by a Board Resolution, a
supplemental indenture or an Officer’s Certificate, if less than all the
Securities of a Series are to be redeemed, the Trustee shall select the
Securities of the Series to be redeemed by such method as the Trustee
shall deem fair and appropriate.

 

In
the event of partial redemption, the Trustee shall make the selection from
Securities of the Series outstanding not previously called for redemption.
The Trustee may select for redemption a portion of the principal amount of any
Security of such Series; provided that the unredeemed portion of the principal
amount of any Security shall be in an authorized denomination (which shall not
be less than the minimum authorized denomination) for such Security.  Provisions of this Indenture that apply to
Securities of a Series called for redemption also apply to portions of
Securities of that Series called for redemption.

 

Section 3.3                                      Notice of
Redemption.

 

Unless
otherwise indicated for a particular Series by Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate, at least 30 days but
not more than 60 days before a redemption date, the Company shall mail a notice
of redemption by first-class mail to each Holder whose Securities are to be
redeemed and if any Bearer Securities are outstanding, publish on one occasion
a notice in an Authorized Newspaper, except that redemption notices may be
mailed more than 60 days prior to a redemption date if the notice is issued in
connection with a defeasance of the Series of Securities or a satisfaction
and discharge of this Indenture pursuant to Articles VIII or XI hereof.

 

17

 

The
notice shall identify the Securities of the Series to be redeemed and
shall state:

 

(a)                                  the redemption
date;

 

(b)                                 the redemption
price (or if not then ascertainable, the manner of calculation thereof);

 

(c)                                  the name and
address of the Paying Agent;

 

(d)                                 that Securities
of the Series called for redemption must be surrendered to the Paying
Agent to collect the redemption price;

 

(e)                                  that interest
on Securities of the Series called for redemption ceases to accrue on and
after the redemption date;

 

(f)                                    the CUSIP
number, if any; and

 

(g)                                 any other
information as may be required by the terms of the particular Series or
the Securities of a Series being redeemed.

 

At
the Company’s request, the Trustee shall give the notice of redemption in the
Company’s name and at its expense.

 

Section 3.4                                      Effect of
Notice of Redemption.

 

Once
notice of redemption is mailed or published as provided in Section 3.3,
Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price specified in such notice. A notice
of redemption mailed or published at the option of the Company may not be
conditional. Upon surrender to the Paying Agent, such Securities shall be paid
at the redemption price plus accrued interest to the redemption date; provided that, unless otherwise specified
with respect to such Securities pursuant to Section 2.2 hereof,  installments of interest whose Stated
Maturity is on or prior to the redemption date shall be payable to the Holders
of such Securities (or one or more predecessor Securities) registered at the
close of business on the relevant record date therefor according to their terms
and the terms of this Indenture.

 

Section 3.5                                      Deposit of
Redemption Price.

 

On
or before the redemption date, the Company shall deposit with the Paying Agent
money sufficient to pay the redemption price of and accrued interest, if any,
on all Securities to be redeemed on that date.

 

Section 3.6                                      Securities
Redeemed in Part.

 

Upon
surrender of a Security that is redeemed in part, the Trustee shall
authenticate for the Holder a new Security of the same Series and the same
maturity equal in principal amount to the unredeemed portion of the Security
surrendered.

 

18

 

ARTICLE IV.

COVENANTS

 

Section 4.1                                      Payment of
Principal and Interest.

 

The
Company covenants and agrees for the benefit of the Holders of each Series of
Securities that it will pay or cause to be paid the principal of, and premium,
if any, and interest on, the Securities of that Series on the dates and in
the manner provided in such Securities. Principal of, and premium, if any, and
interest on any Series of Securities will be considered paid on the date
due if the Paying Agent, if other than the Company or a Subsidiary thereof,
holds as of 11:00 a.m. Eastern Time on the due date money deposited by the
Company in immediately available funds and designated for and sufficient to pay
all principal, premium, if any, and interest then due.

 

The
Company covenants and agrees for the benefit of the Holders of each Series of
Securities that it will pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal with respect to such
Securities at the rate specified therefor in the Securities; it will pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

 

Section 4.2                                      Additional
Amounts.

 

If
any Securities of a Series provide for the payment of Additional Amounts,
the Company agrees to pay to the Holder of any such Security Additional Amounts
as provided in or pursuant to this Indenture or such Securities.  Whenever in this Indenture there is
mentioned, in any context, the payment of the principal of or interest on, or
in respect of, any Security of any Series, such mention shall be deemed to
include mention of the payment of Additional Amounts provided by the terms of
such Series established hereby or pursuant hereto to the extent that, in
such context, Additional Amounts are, were or would be payable in respect
thereof pursuant to such terms, and express mention of the payment of
Additional Amounts (if applicable) in any provision hereof shall not be
construed as excluding Additional Amounts in those provisions hereof where such
express mention is not made.

 

Section 4.3                                      Maintenance of
Office or Agency.

 

The
Company covenants and agrees for the benefit of the Holders of each Series of
Securities that it will maintain an office or agency (which may be an office of
the Trustee for such Securities or an Affiliate of such Trustee, Registrar for
such Securities or co-registrar) where such Securities may be surrendered for
registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of such Securities and this Indenture may be
served. The Company will give prompt written notice to the Trustee for such
Securities of the location, and any change in the location, of such office or
agency. If at any time the Company fails to maintain any such required office
or agency or fails to furnish such Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of such Trustee.

 

19

 

The
Company may also from time to time designate one or more other offices or
agencies where Holders of a Series of Securities may present or surrender
such Securities for any or all such purposes and may from time to time rescind
such designations. The Company will give prompt written notice to the Trustee
for such Series of Securities of any such designation or rescission and of
any change in the location of any such other office or agency.

 

With
respect to each Series of Securities, the Company hereby designates the
Corporate Trust Office of the Trustee for such Securities as one such office or
agency of the Company in accordance with Section 2.4 hereof.

 

Section 4.4                                      SEC Reports.

 

Unless
otherwise specified with respect to Securities of a particular Series pursuant
to Section 2.2, the Company will, if and to the extent required under the
TIA:

 

(a)                                  file with the
Trustee, within 15 days after the later of (i) the date when the Company
files the same with the SEC and (ii) the date when the Company is required
to file the same with the SEC, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of
the foregoing as the SEC may from time to time by rules and regulations
prescribe) which the Company may be required to file with the SEC pursuant to Section 13
or Section 15(d) of the Exchange Act; or, if the Company is not
required to file information, documents or reports pursuant to either of such
sections, then to file with the Trustee and the SEC, in accordance with rules and
regulations prescribed from time to time by the SEC, such of the supplementary
and periodic information, documents and reports which may be required pursuant
to Section 13 of the Exchange Act in respect of a security listed and
registered on a national securities exchange as may be prescribed from time to
time in such rules and regulations;

 

(b)                                 file with the
Trustee and the SEC, in accordance with rules and regulations prescribed
from time to time by the SEC, such additional information, documents and
reports with respect to compliance by the Company with the conditions and
covenants provided for in this Indenture as may be required from time to time
by such rules and regulations; and

 

(c)                                  transmit by
mail to the Holders of Securities in the manner and to the extent provided in Section 7.6
within 30 days after the filing thereof with the Trustee, such summaries of any
information, documents and reports required to be filed by the SEC pursuant to
subsections (a) and (b) of this Section as may be required by rules and
regulations prescribed from time to time by the SEC.

 

The
delivery of such reports, information and documents to the Trustee pursuant to
this Section 4.4 is for informational purposes only and the Trustee’s
receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officer’s Certificates).

 

20

 

Section 4.5                                      Compliance
Certificate.

 

(a)                                  The Company and
each Guarantor of any Series of Securities (to the extent that such
guarantor is so required under the TIA) shall deliver to the Trustee with
respect to such Series, within 120 days after the end of each fiscal year, an
Officers’ Certificate stating that a review of the activities of the Company
and its Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this
Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept,
observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the
terms, provisions and conditions of this Indenture (or, if a Default or Event
of Default has occurred, describing all such Defaults or Events of Default of
which he or she may have knowledge and what action the Company is taking or
proposes to take with respect thereto) and that to the best of his or her
knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Series of
Securities is prohibited or if such event has occurred, a description of the
event and what action the Company is taking or proposes to take with respect
thereto.

 

(b)                                 So long as any Series of
Securities is outstanding, the Company will deliver to the Trustee with respect
to such Series, forthwith upon any Officer becoming aware of any Default or
Event of Default, an Officers’ Certificate specifying such Default or Event of
Default and what action the Company is taking or proposes to take with respect
thereto.

 

Section 4.6                                      Taxes.

 

The
Company covenants and agrees for the benefit of the Holders of each Series of
Securities that it will pay, and will cause each of its Subsidiaries to pay,
prior to delinquency, all material taxes, assessments, and governmental levies
except such as are contested in good faith and by appropriate proceedings or
where the failure to effect such payment is not adverse in any material respect
to the Holders of such Securities.

 

Section 4.7                                      Stay, Extension
and Usury Laws.

 

The
Company covenants and agrees for the benefit of the Holders of each Series of
Securities (to the extent that it may lawfully do so) that it will not, and
each Guarantor of such Securities will not, at any time insist upon, plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law wherever enacted, now or at any time hereafter in force,
that may affect the covenants or the performance of this Indenture; and the
Company and each such Guarantor (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantage of any such law, and covenants
that it will not, by resort to any such law, hinder, delay or impede the
execution of any power herein granted to the Trustee for such Securities, but
will suffer and permit the execution of every such power as though no such law
has been enacted.

 

21

 

Section 4.8                                      Corporate
Existence.

 

Subject
to Article V hereof, the Company covenants and agrees for the benefit of
the Holders of each Series of Securities that it shall do or cause to be
done all things necessary to preserve and keep in full force and effect its
legal existence and rights and franchises; provided, however, that the
foregoing shall not obligate the Company to preserve any such right or
franchise if the Company shall determine that the preservation thereof is no
longer desirable in the conduct of its business and that the loss thereof is
not disadvantageous in any material respect to any Holder.

 

ARTICLE V.

SUCCESSORS

 

Section 5.1                                      Merger,
Consolidation, or Sale of Assets.

 

The
Company covenants and agrees for the benefit of the Holders of each Series of
Securities that it shall not, directly or indirectly: (a) consolidate or
merge with or into another person (whether or not the Company is the surviving
corporation) or (b) sell, assign, transfer, lease, convey or otherwise
dispose of all or substantially all of the properties or assets of the Company
and its Subsidiaries taken as a whole, in one or more related transactions, to
another person, unless:

 

(i)                                     the Company
shall be the continuing entity, or the resulting, surviving or transferee
person shall be a corporation, partnership, limited liability company, trust or
other entity organized and validly existing under the laws of any domestic or
foreign jurisdiction, and such successor person (if not the Company) shall
expressly assume, by an indenture supplemental hereto, executed and delivered
to the Trustee, in form reasonably satisfactory to the Trustee, all the
obligations of the Company under the Securities and this Indenture and, for
each Security that by its terms provides for conversion, shall have provided
for the right to convert such Security in accordance with its terms;

 

(ii)                                  immediately
after such transaction, no Default or Event of Default exists; and

 

(iii)                               the Company
shall deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, sale, assignment,
transfer, lease, conveyance or other disposition and, if a supplemental
indenture is required in connection with such transaction, such supplemental
indenture comply with this Article V and that all conditions precedent
herein provided for relating to such transaction have been complied with.

 

This
Section 5.1 will not apply to:

 

(1)                                  a merger of the
Company with an Affiliate solely for the purpose of reincorporating the Company
in another jurisdiction; or

 

22

 

(2)                                  any
consolidation or merger, or any sale, assignment, transfer, conveyance, lease
or other disposition of assets between or among the Company and its
Subsidiaries.

 

Section 5.2                                      Successor
Person Substituted.

 

Upon
any consolidation or merger, or any sale, assignment, transfer, lease, conveyance
or other disposition of all or substantially all of the properties or assets of
the Company in a transaction that is subject to, and that complies with the
provisions of, Section 5.1 hereof, the successor person formed by such
consolidation or into or with which the Company is merged or to which such
sale, assignment, transfer, lease, conveyance or other disposition is made
shall succeed to, and be substituted for (so that from and after the date of
such consolidation, merger, sale, assignment, transfer, lease, conveyance or
other disposition, the provisions of this Indenture referring to the “Company”
shall refer instead to the successor person and not to the Company), and may
exercise every right and power of the Company under this Indenture with the
same effect as if such successor person had been named as the Company herein;
provided, however, that the predecessor Company shall not be relieved from the
obligation to pay the principal of and interest on any Series of
Securities except in the case of a sale of all of the Company’s assets in a
transaction that is subject to, and that complies with the provisions of, Section 5.1
hereof.

 

ARTICLE VI.

DEFAULTS AND REMEDIES

 

Section 6.1                                      Events of
Default.

 

“Event
of Default,” wherever used herein with respect to Securities of any Series,
means any one of the following events, unless in the establishing Board
Resolution, supplemental indenture or Officers’ Certificate, it is provided
that such Series shall not have the benefit of said Event of Default:

 

(a)                                  default in the
payment of any interest on any Security of that Series when it becomes due
and payable, and continuance of such default for a period of 30 days; or

 

(b)                                 default in
payment when due of the principal of, or premium, if any, on any Security of
that Series; or

 

(c)                                  default in the
deposit of any sinking fund payment, when and as due in respect of any Security
of that Series; or

 

(d)                                 default in the
performance or breach of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty that has been included in this
Indenture solely for the benefit of any Series of Securities other than
that Series), which default continues uncured for the period and after the
notice specified below; or

 

(e)                                  the Company
pursuant to or within the meaning of any Bankruptcy Law:

 

(i)                                     commences a
voluntary case,

 

23

 

(ii)                                  consents to the
entry of an order for relief against it in an involuntary case,

 

(iii)                               consents to the
appointment of a Custodian of it or for all or substantially all of its
property,

 

(iv)                              makes a general
assignment for the benefit of its creditors, or

 

(v)                                 generally is
unable to pay its debts as the same become due; or

 

(f)                                    a court of
competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(i)                                     is for relief
against the Company in an involuntary case,

 

(ii)                                  appoints a
Custodian of the Company or for all or substantially all of its property, or

 

(iii)                               orders the
liquidation of the Company, and the order or decree remains unstayed and in
effect for 60 days; or

 

(g)                                 any other Event
of Default provided with respect to Securities of that Series, which is
specified in a Board Resolution, a supplemental indenture hereto or an Officers’
Certificate, in accordance with Section 2.2.

 

The
term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State
law for the relief of debtors. The term “Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

A
Default under clause (d) above is not an Event of Default with respect to
a particular Series of Securities until the Trustee notifies the Company,
or the Holders of more than 50% in principal amount of the then outstanding
Securities of that Series notify the Company and the Trustee of the
Default, and the Company does not cure the Default within 60 days after receipt
of the notice. The notice must specify the Default, demand that it be remedied
and state that the notice is a “Notice of Default.” Such notice shall be given
by the Trustee if so requested in writing by the Holders of more than 50% of
the principal amount of the then outstanding Securities of that Series.

 

Section 6.2                                      Acceleration.

 

If
an Event of Default with respect to Securities of any Series at the time
outstanding occurs and is continuing (other than an Event of Default referred
to in Section 6.1(e) or (f)) then in every such case the Trustee or
the Holders of more than 50% in principal amount of the outstanding Securities
of that Series may declare the principal amount (or, if any Securities of
that Series are Discount Securities, such portion of the principal amount
as may be specified in the terms of such Securities) of and accrued and unpaid
interest, if any, on all of the Securities of that Series to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee
if given by Holders), and upon any such declaration such principal amount (or 

 

24

 

specified
amount) and accrued and unpaid interest, if any, shall become immediately due
and payable. If an Event of Default specified in Section 6.1(e) or (f) shall
occur, the principal amount (or specified amount) of and accrued and unpaid
interest, if any, on all outstanding Securities shall ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder.

 

At
any time after such a declaration of acceleration with respect to any Series has
been made, the Holders of a majority in principal amount of the outstanding
Securities of that Series, by written notice to the Company and the Trustee,
may rescind and annul such declaration and its consequences if the rescission
would not conflict with any judgment or decree and if all existing Events of
Default (except nonpayment of principal, interest or premium that has become
due solely because of the acceleration) have been cured or waived.

 

No
such rescission shall affect any subsequent Default or impair any right consequent
thereon.

 

Section 6.3                                      Other Remedies.

 

If
an Event of Default with respect to Securities of any Series at the time
outstanding occurs and is continuing, the Trustee may pursue any available
remedy to collect the payment of principal of and, premium, if any, and
interest on such Securities or to enforce the performance of any provision of
such Securities or this Indenture.

 

The
Trustee for such Securities may maintain a proceeding even if it does not
possess any of such Securities or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Holder of Securities in
exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the Event
of Default. All remedies are cumulative to the extent permitted by law.

 

Section 6.4                                      Waiver of Past
Defaults.

 

Holders
of not less than a majority in aggregate principal amount of the then
outstanding Securities of any Series by notice to the Trustee for such
Securities may on behalf of the Holders of all of such Securities waive an
existing Default or Event of Default with respect to such Securities and its
consequences hereunder, except a continuing Default or Event of Default in the
payment of the principal of, or premium, if any, or interest on, such
Securities or in respect of a covenant or provision hereof which under Article IX
cannot be modified or amended without the consent of the Holder of each
outstanding Security of the Series affected; provided, however, that the
Holders of a majority in aggregate principal amount of the then outstanding
Securities of any Series may rescind an acceleration of such Securities
and its consequences, including any related payment default that resulted from
such acceleration, in accordance with Section 6.2. Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

 

25

 

Section 6.5                                      Control by
Majority.

 

Holders
of a majority in aggregate principal amount of the then outstanding Securities
of any Series may direct the time, method and place of conducting any
proceeding for exercising any remedy available to the Trustee for such
Securities or exercising any trust or power conferred on it. However, the
Trustee for any Series of Securities may refuse to follow any direction
that conflicts with law or this Indenture that such Trustee determines may be
unduly prejudicial to the rights of other Holders of such Securities or that
may involve the Trustee in personal liability.

 

Section 6.6                                      Limitation on
Suits.

 

A
Holder of any Series of Securities may pursue a remedy with respect to
this Indenture or such Securities only if:

 

(a)                                  such Holder
gives to the Trustee for such Securities written notice that an Event of
Default with respect to such Series is continuing;

 

(b)                                 Holders of more
than 50% in aggregate principal amount of the then outstanding Securities of
such Series make a written request to the Trustee for such Securities to
pursue the remedy;

 

(c)                                  such Holder or
Holders offer and, if requested, provide to the Trustee for such Securities
security or indemnity reasonably satisfactory to such Trustee against any loss,
liability or expense;

 

(d)                                 such Trustee
does not comply with the request within 60 days after receipt of the request
and the offer of security or indemnity; and

 

(e)                                  during such
60-day period, Holders of a majority in aggregate principal amount of the then
outstanding Securities of such Series do not give such Trustee a direction
inconsistent with such request.

 

A
Holder of any Series of Securities may not use this Indenture to prejudice
the rights of another Holder of such Series of Securities or to obtain a
preference or priority over another Holder of Securities of such Series.

 

Section 6.7                                      Rights of
Holders of Securities to Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder of a Security of
any Series to receive payment of principal of and, premium, if any, and
interest on such Securities, on or after the respective due dates expressed in
such Securities (including, if applicable, in connection with an offer to
purchase), or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.

 

26

 

Section 6.8                                      Collection Suit
by Trustee.

 

If
an Event of Default specified in Section 6.1(a), (b) or (c) hereof
with respect to Securities of any Series occurs and is continuing, the
Trustee for such Securities is authorized to recover judgment in its own name
and as trustee of an express trust against the Company for the whole amount of
principal of and, premium, if any, and interest remaining unpaid on, such
Securities and interest on overdue principal and, to the extent lawful, overdue
interest and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of such Trustee, its agents and counsel.

 

Section 6.9                                      Trustee May File
Proofs of Claim.

 

The
Trustee for each Series of Securities is authorized to file such proofs of
claim and other papers or documents as may be necessary or advisable in order
to have the claims of such Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of such Trustee, its agents
and counsel) and the Holders of the Securities for which it acts as trustee
allowed in any judicial proceedings relative to the Company (or any other
obligor upon such Securities), its creditors or its property and shall be
entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any
such judicial proceeding is hereby authorized by each Holder of such Securities
to make such payments to such Trustee, and in the event that such Trustee shall
consent to the making of such payments directly to such Holders, to pay to such
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of such Trustee, its agents and counsel, and any
other amounts due such Trustee under the Indenture. To the extent that the
payment of any such compensation, expenses, disbursements and advances of such
Trustee, its agents and counsel, and any other amounts due such Trustee out of
the estate in any such proceeding, shall be denied for any reason, payment of
the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that such
Holders may be entitled to receive in such proceeding whether in liquidation or
under any plan of reorganization or arrangement or otherwise. Nothing herein
contained shall be deemed to authorize such Trustee to authorize or consent to
or accept or adopt on behalf of any Holder for which it acts as trustee any
plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of such Holder, or to authorize such Trustee to vote
in respect of the claim of any such Holder in any such proceeding.

 

Section 6.10                                Priorities.

 

If
the Trustee of any Series of Securities collects any money pursuant to
this Article VI, it shall pay out the money in the following order:

 

First: to the Trustee, its agents and attorneys for
amounts due under the Indenture, including payment of all compensation,
expenses and liabilities incurred, and all advances made, by the Trustee and
the costs and expenses of collection;

 

Second: to Holders of such Securities for amounts due and
unpaid on such Securities for principal, premium, if any, and interest,
ratably, without preference or priority of 

 

27

 

any
kind, according to the amounts due and payable on such Securities for
principal, premium, if any and interest, respectively; and

 

Third: to the Company or to such party as a court of
competent jurisdiction shall direct.

 

Subject
to Section 2.14 hereof, the Trustee may fix a record date and payment date
for any payment to Holders of Securities pursuant to this Section 6.10.

 

Section 6.11                                Undertaking for
Costs.

 

In
any suit for the enforcement of any right or remedy under this Indenture or in
any suit against any Trustee for any action taken or omitted by it as a
trustee, a court in its discretion may require the filing by any party litigant
in the suit of an undertaking to pay the costs of the suit, and the court in
its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits
and good faith of the claims or defenses made by the party litigant. This Section 6.11
does not apply to a suit by the Trustee, a suit by a Holder of a Security
pursuant to Section 6.6 hereof, or a suit by Holders of more than 10% in
aggregate principal amount of the then outstanding Securities of any Series.

 

ARTICLE VII.

TRUSTEE

 

Section 7.1                                      Duties of
Trustee.

 

(a)                                  Subject to Section 7.2(h),
if an Event of Default has occurred and is continuing, the Trustee shall
exercise the rights and powers vested in it by this Indenture and use the same
degree of care and skill in their exercise as a prudent person would exercise
or use under the circumstances in the conduct of such person’s own affairs.

 

(b)                                 Except during
the continuance of an Event of Default:

 

(i)                                     The Trustee
need perform only those duties that are specifically set forth in this Indenture
and no others.

 

(ii)                                  In the absence
of bad faith on its part, the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon
Officers’ Certificates or Opinions of Counsel furnished to the Trustee and
conforming to the requirements of this Indenture; however, in the case of any
such Officers’ Certificates or Opinions of Counsel which by any provisions
hereof are specifically required to be furnished to the Trustee, the Trustee
shall examine such Officers’ Certificates and Opinions of Counsel to determine
whether or not they conform to the requirements of this Indenture.

 

(c)                                  The Trustee may
not be relieved from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct, except that:

 

28

 

(i)                                     This paragraph
does not limit the effect of paragraph (b) of this Section.

 

(ii)                                  The Trustee
shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts.

 

(iii)                               The Trustee
shall not be liable with respect to any action taken, suffered or omitted to be
taken by it with respect to Securities of any Series in good faith in
accordance with the direction of the Holders of a majority in principal amount
of the outstanding Securities of such Series relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee, under this
Indenture with respect to the Securities of such Series.

 

(d)                                 Every provision
of this Indenture that in any way relates to the Trustee is subject to
paragraph (a), (b) and (c) of this Section.

 

(e)                                  The Trustee may
refuse to perform any duty or exercise any right or power at the request or
direction of any Holder unless it receives indemnity satisfactory to it against
any loss, liability or expense.

 

(f)                                    The Trustee
shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the
Trustee need not be segregated from other funds except to the extent required
by law.

 

(g)                                 No provision of
this Indenture shall require the Trustee to risk its own funds or otherwise
incur any financial liability in the performance of any of its duties, or in
the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk is not reasonably assured to it.

 

(h)                                 The Paying
Agent, the Registrar and any authenticating agent shall be entitled to the
protections, immunities and standard of care as are set forth in paragraphs
(a), (b) and (c) of this Section with respect to the Trustee.

 

Section 7.2                                      Rights of
Trustee.

 

(a)                                  The Trustee may
rely on and shall be protected in acting or refraining from acting upon any
document believed by it to be genuine and to have been signed or presented by
the proper person. The Trustee need not investigate any fact or matter stated
in the document.

 

(b)                                 Before the
Trustee acts or refrains from acting, it may require an Officers’ Certificate.
The Trustee shall not be liable for any action it takes or omits to take in
good faith in reliance on such Officers’ Certificate.

 

(c)                                  The Trustee may
act through agents and shall not be responsible for the misconduct or
negligence of any agent appointed with due care. No Depository shall be deemed 

 

29

 

an
agent of the Trustee and the Trustee shall not be responsible for any act or
omission by any Depository.

 

(d)                                 The Trustee
shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers, provided
that the Trustee’s conduct does not constitute negligence or bad faith.

 

(e)                                  The Trustee
shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders of
Securities unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which might
be incurred by it in compliance with such request or direction.

 

(f)                                    The Trustee may
consult with counsel of its selection and the advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder without negligence
and in good faith and in reliance thereon.

 

(g)                                 The Trustee
shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit.

 

(h)                                 The Trustee
shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is in fact such a default is received by the
Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Securities generally or the Securities of a particular Series and
this Indenture.

 

(i)                                     The Trustee
shall not be required to provide any bond or surety with respect to the
execution of these trusts and powers.

 

Section 7.3                                      Individual
Rights of Trustee.

 

The
Trustee in its individual or any other capacity may become the owner or pledgee
of Securities and may otherwise deal with the Company or an Affiliate of the
Company with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee is also subject to Sections 7.10
and 7.11.

 

Section 7.4                                      Trustee’s
Disclaimer.

 

The
Trustee makes no representation as to the validity or adequacy of this
Indenture or the Securities, it shall not be accountable for the Company’s use
of the proceeds from the Securities, and it shall not be responsible for any
statement in the Securities other than its authentication of such Securities.

 

30

 

Section 7.5                                      Notice of
Defaults.

 

If
a Default or Event of Default occurs and is continuing with respect to the
Securities of any Series and if it is known to a Responsible Officer of
the Trustee, the Trustee shall mail to each Securityholder of the Securities of
that Series and, if any Bearer Securities are outstanding, mail in the
manner provided by in TIA § 313(c), notice of a Default or Event of Default
within 90 days after it occurs. Except in the case of a Default or Event of
Default in payment of principal of or interest on any Security of any Series,
the Trustee may withhold the notice if and so long as its corporate trust
committee or a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of Securityholders of that
Series.

 

Section 7.6                                      Reports by
Trustee to Holders.

 

Within
60 days after May 15 in each year following the issuance of a Series of
Securities under this Indenture, the Trustee shall transmit by mail to all
Securityholders, as their names and addresses appear on the register kept by
the Registrar and, if any Bearer Securities are outstanding, transmit by mail
in accordance with TIA § 313(c), a brief report dated as of such May 15,
in accordance with, and to the extent required under, TIA § 313(a).

 

A
copy of each report at the time of its mailing to Securityholders of any Series shall
be filed by the Trustee with the SEC and each stock exchange on which the
Securities of that Series are listed, if any. The Company shall promptly
notify the Trustee when Securities of any Series are listed on any stock
exchange.

 

Section 7.7                                      Compensation
and Indemnity.

 

The
Company shall pay to the Trustee from time to time such compensation for its
services as the Company and the Trustee shall agree upon in writing. The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by it. Such expenses
shall include the reasonable compensation and expenses of the Trustee’s agents
and counsel.

 

The
Company shall indemnify each of the Trustee and any predecessor Trustee
(including the cost of defending itself) against any loss, liability or
expense, including taxes (other than taxes based upon, measured by or
determined by the income of the Trustee) incurred by it except as set forth in
the next paragraph in the performance of its duties under this Indenture as
Trustee or Agent. The Trustee shall notify the Company promptly of any claim
for which it may seek indemnity. The Company shall defend the claim and the
Trustee shall cooperate in the defense. The Trustee may have one separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel. The Company need not pay for any settlement made without its consent,
which consent shall not be unreasonably withheld. This indemnification shall
apply to officers, directors, employees, shareholders and agents of the
Trustee.

 

31

 

The
Company need not reimburse any expense or indemnify against any loss or
liability incurred by the Trustee or by any officer, director, employee,
shareholder or agent of the Trustee through negligence or bad faith.

 

To
secure the Company’s payment obligations in this Section, the Trustee shall
have a lien prior to the Securities of any Series on all money or property
held or collected by the Trustee pursuant to Section 8.4, except that held
in trust to pay principal of and interest on particular Securities of that
Series.

 

When
the Trustee incurs expenses or renders services after an Event of Default
specified in Section 6.1(e) or (f) occurs, the expenses and the
compensation for the services are intended to constitute expenses of administration
under any Bankruptcy Law.

 

The
provisions of this Section shall survive the termination of this
Indenture.

 

Section 7.8                                      Replacement of
Trustee.

 

A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.

 

The
Trustee may resign with respect to the Securities of one or more Series by
so notifying the Company at least 30 days prior to the date of the proposed
resignation. The Holders of a majority in principal amount of the Securities of
any Series may remove the Trustee with respect to that Series by so
notifying the Trustee and the Company. The Company may remove the Trustee with
respect to Securities of one or more Series if:

 

(a)                                  the Trustee
fails to comply with Section 7.10;

 

(b)                                 the Trustee is
adjudged a bankrupt or an insolvent or an order for relief is entered with
respect to the Trustee under any Bankruptcy Law;

 

(c)                                  a Custodian or
public officer takes charge of the Trustee or its property; or

 

(d)                                 the Trustee
becomes incapable of acting.

 

If
the Trustee resigns or is removed with respect to the Securities of a Series or
if a vacancy exists in the office of Trustee for any reason, the Company shall
promptly appoint a successor Trustee with respect to the Securities of such
Series. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the then outstanding Securities of such Series may
appoint a successor Trustee with respect to the Securities of such Series to
replace the successor Trustee appointed by the Company.

 

If
a successor Trustee with respect to the Securities of any one or more Series does
not take office within 60 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company or the Holders of at least 10% in
principal amount of the Securities of the applicable Series may petition
any court of competent jurisdiction for the appointment of a successor Trustee.

 

32

 

A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. Immediately after that, the retiring
Trustee shall transfer all property held by it as Trustee to the successor
Trustee subject to the lien provided for in Section 7.7, the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee with
respect to each Series of Securities for which it is acting as Trustee
under this Indenture. A successor Trustee shall mail a notice of its succession
to each Securityholder of each such Series and, if any Bearer Securities
are outstanding, publish such notice on one occasion in an Authorized
Newspaper. Notwithstanding replacement of the Trustee pursuant to this Section 7.8,
the Company’s obligations under Section 7.7 hereof shall continue for the
benefit of the retiring Trustee with respect to expenses and liabilities
incurred by it prior to such replacement.

 

Section 7.9                                      Successor
Trustee by Merger, etc.

 

If
the Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee.

 

Section 7.10                                Eligibility;
Disqualification.

 

This
Indenture shall always have a Trustee who satisfies the requirements of TIA §
310(a)(1) and (2) and does not violate the prohibitions in TIA §
310(a)(5). The Trustee shall always have a combined capital and surplus of at
least $25,000,000 as set forth in its most recent published annual report of
condition. The Trustee shall comply with TIA § 310(b).

 

Section 7.11                                Preferential
Collection of Claims Against Company.

 

The
Trustee is subject to TIA § 311(a), excluding any creditor relationship listed
in TIA § 311(b). A Trustee who has resigned or been removed shall be subject to
TIA § 311(a) to the extent indicated.

 

ARTICLE VIII.

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.1                                      Option to
Effect Legal Defeasance or Covenant Defeasance.

 

The
Company may at any time elect to have either Section 8.2 or 8.3 hereof be
applied to all outstanding Securities of any Series upon compliance with
the conditions set forth below in this Article VIII.

 

Section 8.2                                      Legal
Defeasance and Discharge.

 

Upon
the Company’s exercise under Section 8.1 hereof of the option applicable
to this Section 8.2, the Company and each Guarantor, if any, of such
Securities will, subject to the satisfaction of the conditions set forth in Section 8.4
hereof, be deemed to have been discharged from its or their obligations with
respect to all outstanding Securities of such Series (including the
related guarantees, if any) on the date the conditions set forth below are
satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance
means that the Company and such 

 

33

 

Guarantors
will be deemed to have paid and discharged the entire indebtedness represented
by the outstanding Securities of such Series (including the related
guarantees, if any), which will thereafter be deemed to be “outstanding” only
for the purposes of Section 8.5 hereof and the other Sections of this
Indenture referred to in clauses (a) and (b) below, and to have
satisfied all its or their other obligations under such Securities, such
guarantees, if any, and this Indenture (and the Trustee for such Securities, on
demand of and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which will survive
until otherwise terminated or discharged hereunder:

 

(a)                                  the rights of
Holders of outstanding Securities of such Series to receive payments in
respect of the principal of, or interest or premium, if any, on, such
Securities when such payments are due from the trust referred to in Section 8.4
hereof;

 

(b)                                 the Company’s
obligations with respect to such Securities under Article II hereof;

 

(c)                                  the rights,
powers, trusts, duties and immunities of the Trustee for such Securities
hereunder and the Company’s and the Guarantors’, if any, obligations in
connection therewith; and

 

(d)                                 this Article VIII.

 

Subject
to compliance with this Article VIII, the Company may exercise its option
under this Section 8.2 notwithstanding the prior exercise of its option
under Section 8.3 hereof.

 

Section 8.3                                      Covenant
Defeasance.

 

Upon
the Company’s exercise under Section 8.1 hereof of the option applicable
to this Section 8.3, the Company and each of the Guarantors, if any, will,
subject to the satisfaction of the conditions set forth in Section 8.4
hereof, be released from each of its or their obligations under the covenants
contained in Sections 4.3, 4.4, 4.5, 4.6 and 4.7, Section 5.1, and
covenants specified in a Board Resolution, a supplemental indenture hereto or
an Officers’ Certificate, in accordance with Section 2.2, with respect to
the outstanding Securities of the applicable Series on and after the date
the conditions set forth in Section 8.4 hereof are satisfied (hereinafter,
“Covenant Defeasance”), and such Securities will thereafter be deemed not “outstanding”
for the purposes of any direction, waiver, consent or declaration or act of
Holders of such Securities (and the consequences of any thereof) in connection
with such covenants, but will continue to be deemed “outstanding” for all other
purposes hereunder (it being understood that such Securities will not be deemed
outstanding for accounting purposes). For this purpose, Covenant Defeasance
means that, with respect to the outstanding Securities of such Series, the
Company may omit to comply with and will have no liability in respect of any
term, condition or limitation set forth in any such covenant, whether directly
or indirectly, by reason of any reference elsewhere herein to any such covenant
or by reason of any reference in any such covenant to any other provision
herein or in any other document and such omission to comply will not constitute
a Default or an Event of Default under Section 6.1 hereof, but, except as
specified above, the remainder of this Indenture and such Securities will be
unaffected thereby. In addition, upon the Company’s exercise under Section 8.1
hereof of the option applicable to this Section 8.3, subject to the 

 

34

 

satisfaction
of the conditions set forth in Section 8.4 hereof, Sections 6.1(d) or
6.1(g) hereof will not constitute Events of Default.

 

Section 8.4                                      Conditions to
Legal or Covenant Defeasance.

 

In
order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.2
or 8.3 hereof with respect to Securities of any Series:

 

(a)                                  the Company
must irrevocably deposit with the Trustee for such Securities, in trust, for
the benefit of the Holders of such Securities, cash in Dollars, non-callable
Government Securities, or a combination thereof, in such amounts as will be
sufficient, in the opinion of a nationally recognized investment bank,
appraisal firm, or firm of independent public accountants, to pay the principal
of, and premium, if any, and interest on, the outstanding Securities of such Series on
the stated date for payment thereof or on the applicable redemption date, as
the case may be, and the Company must specify whether such Securities are being
defeased to such stated date for payment or to a particular redemption date;

 

(b)                                 in the case of
an election under Section 8.2 hereof, the Company must deliver to the
Trustee for such Securities an Opinion of Counsel confirming that:

 

(1)                                  the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling; or

 

(2)                                  since the date
of this Indenture, there has been a change in the applicable federal income tax
law,

 

in
either case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Holders of the outstanding Securities of such Series will
not recognize income, gain or loss for federal income tax purposes as a result
of such Legal Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such Legal Defeasance had not occurred;

 

(c)                                  in the case of
an election under Section 8.3 hereof, the Company must deliver to the
Trustee for such Securities an Opinion of Counsel confirming that the Holders
of such Securities will not recognize income, gain or loss for federal income
tax purposes as a result of such Covenant Defeasance and will be subject to
federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

(d)                                 no Default or
Event of Default with respect to such Securities shall have occurred and be
continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit)
and the deposit will not result in a breach or violation of, or constitute a
default under, any other instrument to which the Company or any Guarantor of such
Securities is a party or by which the Company or any such Guarantor is bound;

 

(e)                                  such Legal
Defeasance or Covenant Defeasance will not result in a breach or violation of,
or constitute a default under, any material agreement or instrument (other than

 

35

 

this
Indenture) to which the Company or any of its Subsidiaries is a party or by
which the Company or any of its Subsidiaries is bound;

 

(f)                                    the Company
must deliver to the Trustee for such Securities an Officers’ Certificate
stating that the deposit was not made by the Company with the intent of
preferring the Holders of such Securities over the other creditors of the
Company with the intent of defeating, hindering, delaying or defrauding any
creditors of the Company or others; and

 

(g)                                 the Company
must deliver to the Trustee for such Securities an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent relating to the
Legal Defeasance or the Covenant Defeasance have been complied with.

 

Section 8.5                                      Deposited Money
and Government Securities to be Held in Trust; Other Miscellaneous Provisions.

 

Subject
to Section 8.6 hereof, all money and non-callable Government Securities
(including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.5, the “Trustee”)
pursuant to Section 8.4 hereof in respect of the outstanding Securities of
any Series will be held in trust and applied by the Trustee, in accordance
with the provisions of such Securities and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as
Paying Agent) as the Trustee may determine, to the Holders of such Securities
of all sums due and to become due thereon in respect of principal, premium, if any,
and interest, but such money need not be segregated from other funds except to
the extent required by law.

 

The
Company will pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the cash or non-callable Government Securities
deposited pursuant to Section 8.4 hereof or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders of the outstanding Securities of the
applicable Series.

 

Notwithstanding
anything in this Article VIII to the contrary, the Trustee will deliver or
pay to the Company from time to time upon the request of the Company any money
or non-callable Government Securities held by it as provided in Section 8.4
hereof which, in the opinion of a nationally recognized investment bank,
appraisal firm or firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion
delivered under Section 8.4 hereof), are in excess of the amount thereof
that would then be required to be deposited to effect an equivalent Legal
Defeasance or Covenant Defeasance.

 

Section 8.6                                      Repayment to
Company.

 

Any
money deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for the payment of the principal of, or premium, if any, or
interest on, any Series of Securities and remaining unclaimed for one year
after such principal, premium, if any, or interest has become due and payable
shall be paid to the Company on its request or (if then held by the Company)
will be discharged from such trust; and the Holders of such Securities will
thereafter be permitted to look only to the Company for payment thereof, and
all liability of the 

 

36

 

Trustee
or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, will thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in an Authorized
Newspaper, notice that such money remains unclaimed and that, after a date
specified therein, which will not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

 

Section 8.7                                      Reinstatement.

 

If,
in connection with a Legal Defeasance or Covenant Defeasance, the Trustee or
Paying Agent is unable to apply any Dollars or non-callable Government
Securities in accordance with Section 8.5, by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Company’s and any applicable
Guarantors’ obligations under this Indenture and the applicable Securities and
the guarantees will be revived and reinstated as though no deposit had occurred
pursuant to Section 8.2 or 8.3 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Section 8.5;
provided, however, that, if the Company makes any payment of principal of or
interest on any such Securities following the reinstatement of its obligations,
the Company will be subrogated to the rights of the Holders of such Securities
to receive such payment from the money held by the Trustee or Paying Agent.

 

 

ARTICLE IX.

AMENDMENTS AND WAIVERS

 

Section 9.1                                      Without Consent
of Holders.

 

Notwithstanding
Section 9.2 of this Indenture, the Company and the Trustee may amend or
supplement this Indenture or the Securities of one or more Series without
the consent of any Securityholder:

 

(a)                                  to cure any
ambiguity, defect or inconsistency;

 

(b)                                 to provide for
uncertificated Securities in addition to or in place of certificated
Securities;

 

(c)                                  to provide for
the assumption of the Company’s obligations to the Holders of the Securities by
a successor to the Company pursuant to Article V hereof;

 

(d)                                 to add any
additional Events of Default with respect to all or any Series of
Securities outstanding hereunder;

 

(e)                                  to secure the
Securities pursuant to the requirements of any covenant on liens in respect of
such series of Securities or otherwise;

 

(f)                                    to change or
eliminate any of the provisions of this Indenture, or to add any new provision
to this Indenture, in respect of one or more series of Securities; provided, however,
that any such change, elimination or addition (A) shall neither (i) 

 

37

 

apply to any Security outstanding on the date of such indenture
supplemental hereto nor (ii) modify the rights of the Holder of any such
Security with respect to such provision in effect prior to the date of such
indenture supplemental hereto or (B) shall become effective only when no
Security of such series remains outstanding;

 

(g)                                 to make any
change that would provide any additional rights or benefits to the Holders of
Securities or that does not adversely affect the Holders’ rights hereunder in
any material respect;

 

(h)                                 to comply with
requirements of the SEC in order to effect or maintain the qualification of
this Indenture under the TIA;

 

(i)                                     to provide for
the issuance of and establish the form and terms and conditions of Securities
of any Series as permitted by this Indenture;

 

(j)                                     to evidence and
provide for the acceptance of appointment hereunder by a successor Trustee with
respect to the Securities of one or more Series and to add to or change
any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee;

 

(k)                                  to add an
additional Guarantor or obligor under this Indenture; or

 

(l)                                     to conform any
provision of this Indenture, the Securities of any Series or any related
guarantees or security documents to the description of such Securities  contained in the Company’s prospectus,
prospectus supplement, offering memorandum or similar document with respect to
the offering of the Securities of such Series to the extent that such description
was intended to be a verbatim recitation of a provision in the Indenture, such
Securities or any related guarantees or security documents.

 

Upon
the request of the Company and upon receipt by the Trustee of the documents
described in Section 12.4 hereof, the Trustee will join with the Company
in the execution of any amended or supplemental indenture authorized or
permitted by the terms of this Indenture and to make any further appropriate
agreements and stipulations that may be therein contained, but the Trustee will
not be obligated to enter into such amended or supplemental indenture that
affects its own rights, duties or immunities under this Indenture or otherwise.

 

Section 9.2                                      With Consent of
Holders.

 

The
Company and the Trustee may enter into a supplemental indenture with the
written consent of the Holders of at least a majority in principal amount of
the outstanding Securities of each Series affected by such supplemental
indenture (including consents obtained in connection with a tender offer or
exchange offer for the Securities of such Series), for the purpose of adding
any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying
in any manner the rights of the Securityholders of each such Series. Except as
provided in Section 6.4, the Holders of at least a majority in principal
amount of the outstanding Securities of each Series by notice to the
Trustee (including consents obtained in connection with a tender offer or
exchange offer for 

 

38

 

the
Securities of such Series) may waive compliance by the Company with any
provision of this Indenture or the Securities with respect to such Series.

 

It
shall not be necessary for the consent of the Holders of Securities under this Section 9.2
to approve the particular form of any proposed supplemental indenture or
waiver, but it shall be sufficient if such consent approves the substance
thereof. Upon the request of the Company and upon the filing with the Trustee
of evidence satisfactory to the Trustee of the consent of the Holders of
Securities as aforesaid, and upon receipt by the Trustee of the documents
described in Section 12.4 hereof, the Trustee will join with the Company
in the execution of such amended or supplemental indenture unless such amended
or supplemental indenture directly affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but will not be obligated to, enter into such amended or
supplemental Indenture.

 

After
a supplemental indenture or waiver under this section becomes effective, the
Company shall promptly mail to the Holders of Securities affected thereby and,
if any Bearer Securities affected thereby are outstanding, publish on one
occasion in an Authorized Newspaper, a notice briefly describing the
supplemental indenture or waiver. Any failure by the Company to mail or publish
such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture or waiver.

 

Section 9.3                                      Limitations.

 

Without
the consent of each Securityholder affected, an amendment, supplement or waiver
may not (with respect to any Securities held by a non-consenting Holder):

 

(a)                                  change the
amount of Securities whose Holders must consent to an amendment, supplement or
waiver;

 

(b)                                 reduce the rate
of or extend the time for payment of interest (including default interest) on
any Security;

 

(c)                                  reduce the
principal or change the Stated Maturity of any Security or reduce the amount
of, or postpone the date fixed for, the payment of any sinking fund or
analogous obligation;

 

(d)                                 reduce the
principal amount of Discount Securities payable upon acceleration of the
maturity thereof;

 

(e)                                  waive a Default
or Event of Default in the payment of the principal of or interest, if any, on
any Security (except a rescission of acceleration of the Securities of any Series by
the Holders of at least a majority in principal amount of the outstanding
Securities of such Series and a waiver of the payment default that
resulted from such acceleration);

 

(f)                                    make the
principal of or interest, if any, on any Security payable in any currency other
than that stated in the Security;

 

39

 

(g)                                 make any change
in Sections 6.4, 6.7 or 9.3; or

 

(h)                                 waive a
redemption payment with respect to any Security.

 

Section 9.4                                      Compliance with
Trust Indenture Act.

 

Every
amendment or supplement to this Indenture or the Securities of one or more Series shall
be set forth in an amended or supplemental indenture that complies with the TIA
as then in effect.

 

Section 9.5                                      Revocation and
Effect of Consents.

 

(a)                                  Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
of a Security is a continuing consent by the Holder and every subsequent Holder
of a Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent is not made on
any Security. However, any such Holder or subsequent Holder subject to Section 9.5(d) may
revoke the consent as to his Security or portion of a Security if the Trustee
receives the notice of revocation before the date the amendment, supplement or
waiver becomes effective.

 

(b)                                 An amendment,
supplement or waiver effective in accordance with its terms will thereafter
bind every Holder.

 

(c)                                  For purposes of
this Indenture, the consent of the Holder of a Global Security shall be deemed
to include any consent delivered by any member of, or participant in, any
Depository, any nominees thereof and their respective successors and assigns,
or such other depository institution hereinafter appointed by the Company (“Depository
Entity”) by electronic means in accordance with the Automated Tender Offer
Procedures system or other customary procedures of, and pursuant to
authorization by, such Depository Entity.

 

(d)                                 The Company
may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or
waiver. If a record date is fixed, then notwithstanding the last sentence of
the immediately preceding paragraph, those persons who were Holders at such
record date (or their duly designated proxies), and only those persons, shall
be entitled to revoke any consent previously given, whether or not such persons
continue to be Holders after such record date. No such consent shall be valid
or effective for more than 120 days after such record date. The Company shall
inform the Trustee of the fixed record date, if applicable.

 

(e)                                  Any amendment
or waiver once effective shall bind every Securityholder of each Series affected
by such amendment or waiver unless it is of the type described in any of
clauses (a) through (h) of Section 9.3. In that case, the
amendment or waiver shall bind each Holder of a Security who has consented to
it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security.

 

40

 

Section 9.6                                      Notation on or
Exchange of Securities.

 

The
Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Security of any Series thereafter authenticated. The Company
in exchange for Securities of that Series may issue and the Trustee shall
authenticate upon request new Securities of that Series that reflect the
amendment or waiver.

 

Section 9.7                                      Trustee
Protected.

 

In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article IX or the modifications thereby of the
trusts created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 7.1) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture.

 

ARTICLE X.

GUARANTEES

 

Section 10.1                                Guarantees.

 

Any
Series of Securities may be guaranteed by one or more of the Guarantors.
The terms and the form of any such guarantee will be established in the manner
contemplated by Section 2.2 for that particular Series of Securities.

 

ARTICLE XI.

SATISFACTION AND DISCHARGE

 

Section 11.1                                Satisfaction
and Discharge.

 

This
Indenture will be discharged and will cease to be of further effect as to a Series of
Securities issued hereunder, when:

 

(a)                                  either:

 

(i)                                     all such
Securities that have been authenticated, except lost, stolen or destroyed
Securities that have been replaced or paid and Securities for whose payment
money has theretofore been deposited in trust and thereafter repaid to the
Company, have been delivered to the Trustee for cancellation; or

 

(ii)                                  all such
Securities that have not been delivered to the Trustee for cancellation have
become due and payable by reason of the mailing of a notice of redemption or
otherwise or will become due and payable within one year and the Company has
irrevocably deposited or caused to be deposited with the Trustee as trust funds
in trust solely for the benefit of the Holders of such Securities, cash in
Dollars, non-callable Government Securities, or a combination thereof, in such
amounts as will be sufficient, without consideration of any reinvestment of
interest, to pay and discharge the entire indebtedness on such Securities not
delivered to the Trustee for cancellation for principal, premium, if any, and
accrued interest to the date of maturity or redemption;

 

41

 

(b)                                 no Default or
Event of Default has occurred and is continuing on the date of such deposit
(other than a Default or Event of Default resulting from the borrowing of funds
to be applied to such deposit) and the deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to which the
Company or any Guarantor of such Securities is a party or by which the Company
or any such Guarantor is bound;

 

(c)                                  the Company or
any Guarantor of such Securities has paid or caused to be paid all sums payable
by it under this Indenture; and

 

(d)                                 the Company has
delivered irrevocable instructions to the Trustee for such Securities under
this Indenture to apply the deposited money toward the payment of such
Securities at maturity or on the redemption date, as the case may be.

 

In
addition, the Company must deliver an Officers’ Certificate and an Opinion of
Counsel to the Trustee for such Securities stating that all conditions
precedent to satisfaction and discharge have been satisfied, and all fees and
expenses of the Trustee shall have been paid.

 

Notwithstanding
the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (ii) of clause (a) of this Section 11.1,
the provisions of Sections 11.2 and 8.6 hereof will survive. In addition,
nothing in this Section 11.1 will be deemed to discharge those provisions
of Section 7.7 hereof, that, by their terms, survive the satisfaction and
discharge of this Indenture.

 

Section 11.2                                Application of
Trust Money.

 

Subject
to the provisions of Section 8.6 hereof, all money or Government
Securities deposited with the Trustee pursuant to Section 11.1 hereof
shall be held in trust and applied by it, in accordance with the provisions of
the Securities with respect to with such deposit was made and this Indenture,
to the payment, either directly or through any Paying Agent (including the
Company acting as its own Paying Agent) as such Trustee may determine, to the
persons entitled thereto, of the principal (and premium, if any) and interest
for whose payment such money has been deposited with the Trustee; but such
money need not be segregated from other funds except to the extent required by
law.

 

If
the Trustee or Paying Agent is unable to apply any money or Government Securities
in accordance with Section 11.1 hereof by reason of any legal proceeding
or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
and any applicable Guarantor’s obligations under this Indenture and the
applicable Securities shall be revived and reinstated as though no deposit had
occurred pursuant to Section 11.1 hereof; provided that if the Company has
made any payment of principal of, or premium, if any, or interest on, any
Securities because of the reinstatement of its obligations, the Company shall
be subrogated to the rights of the Holders of such Securities to receive such
payment from the money or Government Securities held by the Trustee or Paying
Agent.

 

42

 

ARTICLE XII.

MISCELLANEOUS

 

Section 12.1                                Trust Indenture
Act Controls.

 

If
any provision of this Indenture limits, qualifies, or conflicts with another
provision which is required or deemed to be included in this Indenture by the
TIA, such required or deemed provision shall control.

 

Section 12.2                                Notices.

 

Any
notice or communication by the Company or the Trustee to the other, or by a
Holder to the Company or the Trustee, is duly given if in writing and (a) delivered
in person, (b) mailed by first-class mail or overnight mail, (c) sent
by overnight air courier with next Business Day delivery or (d) delivered
electronically (in .pdf or similar format) if, in case of electronic notices,
receipt is confirmed:

 

if
to the Company:

 

Walter
Energy, Inc.

4211 W. Boy Scout Boulevard

Tampa, Florida 33607 

Attention: General Counsel

Telephone: (813) 871-4811

Facsimile: (813) 871-4399

 

With
a copy to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Facsimile No.: (212) 455-2502

Attention: Vincent Pagano

 

if
to the Trustee:

 

Union
Bank, National Association

551 Madison Avenue, 11th Floor

New York, New York 10022

Facsimile No.: (646) 452-2000

Attention: Corporate Trust

 

The
Company or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications.

 

Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Holders shall be 

 

43

 

filed
with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

 

All
notices and communications (other than those sent to Holders) will be deemed to
have been duly given: at the time delivered by hand, if personally delivered;
five Business Days after being deposited in the mail, postage prepaid, if
mailed; the next Business Day after timely delivery to the courier, if sent by
overnight air courier for next Business Day delivery; and when receipt is
confirmed, if delivered electronically.

 

Any
notice or communication to a Securityholder shall be mailed by first-class mail
to his address shown on the register kept by the Registrar and, if any Bearer
Securities are outstanding, published in an Authorized Newspaper, unless
otherwise provided with respect to the applicable Series. Failure to mail a
notice or communication to a Securityholder of any Series or any defect in
it shall not affect its sufficiency with respect to other Securityholders of
that or any other Series.

 

In
case by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.

 

If
a notice or communication is mailed or published in the manner provided above,
within the time prescribed, it is duly given, whether or not the Securityholder
receives it.

 

If
the Company mails a notice or communication to Securityholders, it shall mail a
copy to the Trustee and each Agent at the same time.

 

Where
the Indenture provides for notice of any event to a Holder of a Global
Security, such notice shall be sufficiently given if given to the Depository
for such Global Security (or its designee), pursuant to the applicable
procedures of the Depository, not later than the latest date (if any), and not
earlier than the earliest date (if any), prescribed for the giving of such
notice.

 

Section 12.3                                Communication
by Holders with Other Holders.

 

Securityholders
of any Series may communicate pursuant to TIA § 312(b) with other
Securityholders of that Series or any other Series with respect to
their rights under this Indenture or the Securities of that Series or all
Series. The Company, the Trustee, the Registrar and anyone else shall have the
protection of TIA § 312(c).

 

Section 12.4                                Certificate and
Opinion as to Conditions Precedent.

 

Upon
any request or application by the Company to the Trustee to take any action
under this Indenture, the Company shall furnish to the Trustee:

 

(a)                                  an Officers’
Certificate stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

 

44

 

(b)                                 an Opinion of
Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

 

Section 12.5                                Statements
Required in Certificate or Opinion.

 

Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to Section 4.5
hereof and TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and
shall include:

 

(a)                                  a statement that
the person making such certificate or opinion has read such covenant or
condition;

 

(b)                                 a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based;

 

(c)                                  a statement
that, in the opinion of such person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and

 

(d)                                 a statement as
to whether or not, in the opinion of such person, such condition or covenant
has been complied with.

 

Section 12.6                                Rules by
Trustee and Agents.

 

The
Trustee may make reasonable rules for action by or a meeting of
Securityholders of one or more Series. Any Agent may make reasonable rules and
set reasonable requirements for its functions.

 

Section 12.7                                Legal Holidays.

 

Unless
otherwise provided by Board Resolution, Officers’ Certificate or supplemental
indenture hereto for a particular Series, a “Legal Holiday” is any day that is
not a Business Day. If a payment date is a Legal Holiday at a place of payment,
payment may be made at that place on the next succeeding day that is not a
Legal Holiday, and no interest shall accrue for the intervening period.

 

Section 12.8                                No Recourse
Against Others.

 

No
past, present or future director, officer, stockholder or employee, as such, of
the Company or any successor corporation shall have any liability for any
obligation of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. Each Holder by accepting a Security waives and releases all such
liability. The waiver and release are part of the consideration for the
execution of this Indenture and the issue of the Securities.

 

45

 

Section 12.9           Counterparts.

 

This Indenture may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

Section 12.10         Governing Law; Waiver of Trial by
Jury.

 

THE INTERNAL LAW OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401
OF THE GENERAL OBLIGATIONS LAW) WILL GOVERN AND BE USED TO CONSTRUE THIS
INDENTURE, THE SECURITIES AND ANY GUARANTEES OF THE SECURITIES WITHOUT GIVING
EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. EACH
OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE TRANSACTIONS
CONTEMPLATED THEREBY.

 

Section 12.11         No Adverse Interpretation of Other
Agreements.

 

This Indenture may not be used to interpret any
other indenture, loan or debt or other agreement of the Company or its
Subsidiaries or of any other person.  Any
such indenture, loan or debt or other agreement may not be used to interpret
this Indenture.

 

Section 12.12         Successors.

 

All agreements of the Company in this Indenture and
the Securities shall bind its successor. All agreements of the Trustee in this
Indenture shall bind its successor.

 

Section 12.13         Severability.

 

In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

Section 12.14         Table of Contents, Headings, Etc.

 

The Table of Contents, Cross-Reference Table, and
headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof, and
shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 12.15         Securities in a Foreign Currency.

 

Unless otherwise specified in a Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate delivered pursuant to
Section 2.2 of this Indenture with respect 

 

46

 

to a particular Series of
Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of
Securities of all Series or all Series affected by a particular
action at the time outstanding and, at such time, there are outstanding
Securities of any Series which are denominated in a coin or currency other
than Dollars, then the principal amount of Securities of such Series which
shall be deemed to be outstanding for the purpose of taking such action shall
be that amount of Dollars that could be obtained for such amount at the Market
Exchange Rate at such time. For purposes of this Section 12.15, “Market
Exchange Rate” shall mean the noon Dollar buying rate in New York City for
cable transfers of that currency as published by the Federal Reserve Bank of
New York. If such Market Exchange Rate is not available for any reason with
respect to such currency, the Trustee shall use, in its sole discretion and
without liability on its part, such quotation of the Federal Reserve Bank of
New York as of the most recent available date, or quotations from one or more
major banks in The City of New York or in the country of issue of the currency
in question or such other quotations as the Trustee, upon consultation with the
Company, shall deem appropriate. The provisions of this paragraph shall apply
in determining the equivalent principal amount in respect of Securities of a Series denominated
in currency other than Dollars in connection with any action taken by Holders
of Securities pursuant to the terms of this Indenture.

 

All decisions and determinations of the Trustee
regarding the Market Exchange Rate or any alternative determination provided
for in the preceding paragraph shall be in its sole discretion and shall, in
the absence of manifest error, to the extent permitted by law, be conclusive
for all purposes and irrevocably binding upon the Company and all Holders.

 

ARTICLE
XIII.

SINKING FUNDS

 

Section 13.1           Applicability of Article.

 

The provisions of this Article XIII shall be
applicable to any sinking fund for the retirement of the Securities of a
Series, except as otherwise permitted or required by any form of Security of
such Series issued pursuant to this Indenture.

 

The minimum amount of any sinking fund payment
provided for by the terms of the Securities of any Series is herein
referred to as a “mandatory sinking fund payment” and any other amount provided
for by the terms of Securities of such Series is herein referred to as an “optional
sinking fund payment.” If provided for by the terms of Securities of any
Series, the cash amount of any sinking fund payment may be subject to reduction
as provided in Section 13.2. Each sinking fund payment shall be applied to
the redemption of Securities of any Series as provided for by the terms of
the Securities of such Series.

 

Section 13.2           Satisfaction of Sinking Fund
Payments with Securities.

 

The Company may, in satisfaction of all or any part
of any sinking fund payment with respect to the Securities of any Series to
be made pursuant to the terms of such Securities (a) deliver outstanding
Securities of such Series to which such sinking fund payment is applicable
(other than any of such Securities previously called for mandatory sinking fund
redemption) and (b) apply as a credit Securities of such Series to
which such sinking fund 

 

47

 

payment is applicable and
which have been repurchased by the Company or redeemed either at the election
of the Company pursuant to the terms of such Series of Securities (except
pursuant to any mandatory sinking fund) or through the application of permitted
optional sinking fund payments or other optional redemptions pursuant to the
terms of such Securities, provided that such Securities have not been
previously so credited. Such Securities shall be received by the Trustee,
together with an Officers’ Certificate with respect thereto, not later than 15
days prior to the date on which the Trustee begins the process of selecting
Securities for redemption, and shall be credited for such purpose by the
Trustee at the price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly. If as a result of the delivery or credit of Securities
in lieu of cash payments pursuant to this Section 13.2, the principal
amount of Securities of such Series to be redeemed in order to exhaust the
aforesaid cash payment shall be less than $100,000, the Trustee need not call
Securities of such Series for redemption, except upon receipt of a Company
Order that such action be taken, and such cash payment shall be held by the
Trustee or a Paying Agent and applied to the next succeeding sinking fund
payment, provided, however, that the Trustee or such Paying Agent shall from
time to time upon receipt of a Company Order pay over and deliver to the
Company any cash payment so being held by the Trustee or such Paying Agent upon
delivery by the Company to the Trustee of Securities of that Series purchased
by the Company having an unpaid principal amount equal to the cash payment
required to be released to the Company.

 

Section 13.3           Redemption of Securities for
Sinking Fund.

 

Not less than 45 days (unless otherwise indicated in
the Board Resolution, supplemental indenture or Officers’ Certificate in
respect of a particular Series of Securities) prior to each sinking fund
payment date for any Series of Securities, the Company will deliver to the
Trustee an Officers’ Certificate specifying the amount of the next ensuing
mandatory sinking fund payment for that Series pursuant to the terms of
that Series, the portion thereof, if any, which is to be satisfied by payment
of cash and the portion thereof, if any, which is to be satisfied by delivering
and crediting of Securities of that Series pursuant to Section 13.2,
and the optional amount, if any, to be added in cash to the next ensuing
mandatory sinking fund payment, and the Company shall thereupon be obligated to
pay the amount therein specified. Not less than 30 days (unless otherwise
indicated in the Board Resolution, Officers’ Certificate or supplemental
indenture in respect of a particular Series of Securities) before each
such sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section 3.2
and cause notice of the redemption thereof to be given in the name of and at
the expense of the Company in the manner provided in Section 3.3. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

 

48

 

IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed as of the day and year first above written.

 

 

	
   

  	
  WALTER
  ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Miles C. Dearden, III

  
	
   

  	
   

  	
  Name:
  Miles C. Dearden, III

  
	
   

  	
   

  	
  Title:
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNION
  BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Hugo Gindraux

  
	
   

  	
  Name:

  	
  Hugo
  Gindraux

  
	
   

  	
  Title:

  	
  Corporate Trust Vice President

  

 

49Exhibit 10.1

 

 

DYNAVOX SYSTEMS HOLDINGS LLC

 

A Delaware Limited Liability Company

 

 

THIRD AMENDED AND RESTATED

 

LIMITED LIABILITY COMPANY AGREEMENT

 

Dated as of     , 2010

 

THE LIMITED
LIABILITY COMPANY INTERESTS IN DYNAVOX SYSTEMS HOLDINGS LLC HAVE NOT BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, THE SECURITIES
LAWS OF ANY STATE OR ANY OTHER APPLICABLE SECURITIES LAWS AND ARE BEING SOLD IN
RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND SUCH LAWS.  SUCH INTERESTS MUST
BE ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE OFFERED FOR SALE, PLEDGED,
HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE
WITH (I) THE SECURITIES ACT, ANY APPLICABLE SECURITIES LAWS OF ANY STATE
AND ANY OTHER APPLICABLE SECURITIES LAWS; (II) THE TERMS AND CONDITIONS OF
THIS THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT; AND (III) ANY
OTHER TERMS AND CONDITIONS AGREED TO IN WRITING BETWEEN THE MANAGING MEMBER AND
THE APPLICABLE MEMBER.  THE LIMITED
LIABILITY COMPANY INTERESTS MAY NOT BE TRANSFERRED OF RECORD EXCEPT IN
COMPLIANCE WITH SUCH LAWS, THIS THIRD AMENDED AND RESTATED LIMITED LIABILITY
COMPANY AGREEMENT, AND ANY OTHER TERMS AND CONDITIONS AGREED TO IN WRITING BY
THE MANAGING MEMBER AND THE APPLICABLE MEMBER. 
THEREFORE, PURCHASERS AND OTHER TRANSFEREES OF SUCH LIMITED LIABILITY
COMPANY INTERESTS WILL BE REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT OR
ACQUISITION FOR AN INDEFINITE PERIOD OF TIME.

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
  ARTICLE
  I DEFINITIONS

  	
  1

  
	
  Section 1.1.   Definitions

  	
  1

  
	
  Section 1.2.   Terms Generally

  	
  10

  
	
   

  	
   

  
	
  ARTICLE
  II GENERAL PROVISIONS

  	
  11

  
	
  Section 2.1.   Formation

  	
  11

  
	
  Section 2.2.   Name

  	
  11

  
	
  Section 2.3.   Section Term

  	
  11

  
	
  Section 2.4.   Purpose; Powers

  	
  11

  
	
  Section 2.5.   Existence and Good
  Standing; Foreign Qualification

  	
  11

  
	
  Section 2.6.   Registered Office;
  Registered Agent; Principal Office; Other Offices

  	
  12

  
	
  Section 2.7.   No State Law
  Partnership

  	
  12

  
	
  Section 2.8.   Admission

  	
  13

  
	
   

  	
   

  
	
  ARTICLE
  III CAPITALIZATION

  	
  13

  
	
  Section 3.1.   Units; Initial
  Capitalization; Schedules

  	
  13

  
	
  Section 3.2.   Authorization and
  Issuance of Additional Units

  	
  14

  
	
  Section 3.3.   Capital Accounts

  	
  15

  
	
  Section 3.4.   No Withdrawal

  	
  17

  
	
  Section 3.5.   Loans From Members

  	
  17

  
	
  Section 3.6.   No Right of Partition

  	
  18

  
	
  Section 3.7.   Non-Certification of
  Units; Legend; Units are Securities

  	
  18

  
	
   

  	
   

  
	
  ARTICLE
  IV DISTRIBUTIONS

  	
  19

  
	
  Section 4.1.   Distributions

  	
  19

  
	
  Section 4.2.   Unvested Units

  	
  19

  
	
  Section 4.3.   Successors

  	
  20

  
	
  Section 4.4.   Tax Distributions

  	
  20

  
	
  Section 4.5.   Security Interest
  and Right of Set Off; Indemnification

  	
  20

  
	
  Section 4.6.   Certain
  Distributions

  	
  21

  
	
  Section 4.7.   Limitation

  	
  21

  
	
   

  	
   

  
	
  ARTICLE
  V ALLOCATIONS

  	
  21

  
	
  Section 5.1.   Allocations for
  Capital Account Purposes

  	
  21

  
	
  Section 5.2.   Allocations for Tax
  Purposes

  	
  24

  
	
  Section 5.3.   Members’ Tax
  Reporting

  	
  26

  
	
  Section 5.4.   Certain Costs and
  Expenses

  	
  26

  
	
   

  	
   

  
	
  ARTICLE
  VI MANAGEMENT

  	
  26

  
	
  Section 6.1.   Managing Member;
  Delegation of Authority and Duties

  	
  26

  
	
  Section 6.2.   Officers

  	
  27

  
	
  Section 6.3.   Liability of Members

  	
  28

  
	
  Section 6.4.   Indemnification by
  the Company

  	
  29

  

 

i

 

	
  Section 6.5.   Investment
  Representations of Members

  	
  30

  
	
   

  	
   

  
	
  ARTICLE VII WITHDRAWAL; DISSOLUTION; TRANSFER OF
  MEMBERSHIP INTERESTS; ADMISSION OF NEW MEMBERS

  	
  30

  
	
  Section 7.1.   Member Withdrawal

  	
  30

  
	
  Section 7.2.   Continuation of
  Vesting

  	
  30

  
	
  Section 7.3.   Dissolution

  	
  30

  
	
  Section 7.4.   Transfer by Members

  	
  32

  
	
  Section 7.5.   Admission or
  Substitution of New Members

  	
  32

  
	
  Section 7.6.   Additional
  Requirements

  	
  34

  
	
  Section 7.7.   Mandatory Exchange

  	
  34

  
	
  Section 7.8.   Bankruptcy

  	
  34

  
	
   

  	
   

  
	
  ARTICLE
  VIII BOOKS AND RECORDS; FINANCIAL STATEMENTS AND OTHER INFORMATION; TAX
  MATTERS

  	
  34

  
	
  Section 8.1.   Books and Records

  	
  34

  
	
  Section 8.2.   Information

  	
  35

  
	
  Section 8.3.   Fiscal Year

  	
  35

  
	
  Section 8.4.   Certain Tax Matters

  	
  35

  
	
   

  	
   

  
	
  ARTICLE
  IX MISCELLANEOUS

  	
  37

  
	
  Section 9.1.   Separate Agreements;
  Schedules

  	
  37

  
	
  Section 9.2.   Governing Law

  	
  37

  
	
  Section 9.3.   Successors and
  Assigns

  	
  37

  
	
  Section 9.4.   Amendments and
  Waivers

  	
  37

  
	
  Section 9.5.   Notices

  	
  39

  
	
  Section 9.6.   Counterparts

  	
  39

  
	
  Section 9.7.   Power of Attorney

  	
  39

  
	
  Section 9.8.   Entire Agreement

  	
  40

  
	
  Section 9.9.   Remedies

  	
  40

  
	
  Section 9.10.   Severability

  	
  40

  
	
  Section 9.11.   Creditors

  	
  40

  
	
  Section 9.12.   Waiver

  	
  40

  
	
  Section 9.13.   Further Action

  	
  41

  
	
  Section 9.14.  
  Delivery by Facsimile or Email

  	
  41

  

 

ii

 

THIRD AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

DYNAVOX SYSTEMS HOLDINGS LLC

A Delaware Limited Liability Company

 

This THIRD AMENDED AND RESTATED LIMITED
LIABILITY COMPANY AGREEMENT of DynaVox Systems Holdings LLC (the “Company”),
dated and effective as of
          , 2010 (this “Agreement”),
is adopted, executed and agreed to, for good and valuable consideration, by and
among the Members (as defined below).

 

WHEREAS, as of April 20, 2004, DynaVox
Investors LLC, a Delaware limited liability company, formed the Company as a
limited liability company under the Act by executing the Limited Liability
Company Agreement of DynaVox Systems Holdings LLC (the “Original Agreement”)
and filing a Certificate of Formation with the Office of the Secretary of State
of the State of Delaware;

 

WHEREAS, as of May 13, 2004, the
Original Agreement was amended and restated in accordance with its terms (the “First
Amended Agreement”);

 

WHEREAS, as of January 22, 2008, the
First Amended Agreement was amended and restated in accordance with its terms
(the “Second Amended Agreement”);

 

WHEREAS, the Management
Committee (as defined in the Second Amended Agreement), with the consent of the
Chief Executive Officer of the Company, wishes to amend and restate the Second
Amended Agreement in accordance with its terms and, in connection therewith, to
(1) convert all outstanding limited liability company interests in the
Company into Class A Units (as defined below) and (2) admit DynaVox
Inc., a Delaware corporation, as sole Managing Member of the Company; and

 

WHEREAS, the parties hereto desire to enter
into this Third Amended and Restated Limited Liability Company Agreement of the
Company.

 

NOW THEREFORE, in consideration of the mutual
covenants and agreements contained herein, the parties hereto, each intending
to be legally bound, agree that the Second Amended Agreement is hereby amended
and restated in its entirety as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.1.  Definitions.

 

Unless the context otherwise requires, the
following terms shall have the following meanings for purposes of this
Agreement:

 

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

 

1

 

“Additional Member” means any Person
that has been admitted to the Company as a Member pursuant to Section 7.5
by virtue of having received its Membership Interest from the Company and not
from any other Member or Assignee.

 

“Adjusted Capital Account” means the
Capital Account maintained for each Member as of the end of each Fiscal Year of
the Company, (a) increased by any amounts that such Member is obligated to
restore under the standards set by Treasury Regulations Section 1.704-1(b)(2)(ii)(c) (or
is deemed obligated to restore under Treasury Regulations Sections 1.704-2(g) and
1.704-2(i)(5)) and (b) decreased by (i) the amount of all losses and
deductions that, as of the end of such Fiscal Year, are reasonably expected to
be allocated to such Member in subsequent years under Sections 704(e)(2) and
706(d) of the Code and Treasury Regulations Section 1.751-1(b)(2)(ii),
and (ii) the amount of all distributions that, as of the end of such
Fiscal Year, are reasonably expected to be made to such Member in subsequent
years in accordance with the terms of this Agreement or otherwise to the extent
they exceed offsetting increases to such Member’s Capital Account that are
reasonably expected to occur during (or prior to) the year in which such
distributions are reasonably expected to be made (other than increases as a
result of a minimum gain chargeback pursuant to Section 5.1(b)(i) or
Section 5.1(b)(ii)). The foregoing definition of Adjusted Capital
Account is intended to comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and
shall be interpreted consistently therewith. 
The “Adjusted Capital Account” of a Member in respect of a Unit
shall be the amount that such Adjusted Capital Account would be if such Unit
were the only interest in the Company held by such Member from and after the
date on which such Unit was first issued.

 

“Adjusted Property” means any property
the Carrying Value of which has been adjusted pursuant to Section 3.3(d)(i) or
Section 3.3(d)(ii).

 

“Affiliate” when used with reference
to another Person means any Person (other than the Company), directly or
indirectly, through one or more intermediaries, controlling, controlled by, or
under common control with, such other Person. 
In addition, Affiliates of a Member shall include all its directors, managers,
officers and employees in their capacities as such.

 

“Agreed Value” of any Contributed
Property means the fair market value of such property or other consideration at
the time of contribution as determined by the Managing Member, without taking
into account any liabilities to which such Contributed Property was subject at
such time.  The Managing Member shall use
such method as it determines to be appropriate to allocate the aggregate Agreed
Value of Contributed Properties contributed to the Company in a single or
integrated transaction among each separate property on a basis proportional to
the fair market value of each Contributed Property.

 

“Assignee” means any Transferee to
which a Member or another Assignee has Transferred all or a portion of its
interest in the Company in accordance with the terms of this Agreement, but
that is not admitted to the Company as a Member.

 

“Assumed Tax Rate” means, for any
taxable year, the highest marginal effective rate of federal, state and local
income tax applicable to an individual resident in New York, New York (or, if
higher, a corporation doing business in New York, New York), taking account of
any 

 

2

 

differences in rates
applicable to ordinary income and capital gains and any allowable deductions in
respect of such state and local taxes in computing a Member’s liability for
federal income tax; provided that the Assumed Tax Rate for ordinary income
initially will be set at 45 percent, as adjusted by decision of the Managing
Member; and provided further that the Assumed Tax Rate for ordinary income
shall be recalculated at any time that the applicable tax rates change.

 

“Bankruptcy” means, with respect to
any Person, (A) if such Person (i) makes an assignment for the
benefit of creditors, (ii) files a voluntary petition in bankruptcy, (iii) is
adjudged a bankrupt or insolvent, or has entered against it an order for
relief, in any bankruptcy or insolvency proceedings, (iv) files a petition
or answer seeking for itself any reorganization, arrangement, composition,
readjustment, liquidation or similar relief under any statute, law or
regulation, (v) files an answer or other pleading admitting or failing to
contest the material allegations of a petition filed against it in any
proceeding of this nature, (vi) seeks, consents to or acquiesces in the
appointment of a trustee, receiver or liquidator of the Person or of all or any
substantial part of its properties, or (B) if 120 days after the
commencement of any proceeding against the Person seeking reorganization,
arrangement, composition, readjustment, liquidation or similar relief under any
statute, law or regulation, if the proceeding has not been dismissed, or if
within 90 days after the appointment without such Person’s consent or
acquiescence of a trustee, receiver or liquidator of such Person or of all or
any substantial part of its properties, the appointment is not vacated or
stayed, or within 90 days after the expiration of any such stay, the
appointment is not vacated.  The
foregoing definition of “Bankruptcy” is intended to replace and shall supersede
and replace the definition of “Bankruptcy” set forth in Sections 18-101(1) and
18-304 of the Act.

 

“Book-Tax Disparity” means, with
respect to any item of Contributed Property or Adjusted Property, as of the
date of any determination, the difference between the Carrying Value of such
Contributed Property or Adjusted Property and the adjusted basis thereof for
federal income tax purposes as of such date.

 

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

 

“Capital Account” means the capital
account maintained for a Member pursuant to Section 3.3.

 

“Capital Contribution” means any cash,
cash equivalents or the Fair Market Value of other property that a Member
contributes to the Company with respect to any Unit or other Equity Securities
issued by the Company (net of liabilities assumed by the Company or to which
such property is subject).

 

“Carrying Value” means (a) with
respect to a Contributed Property, subject to the following sentence, the
Agreed Value of such property reduced (but not below zero) by all depreciation,
amortization and cost recovery deductions charged to the Members’ Capital
Accounts in respect of such Contributed Property, and (b) with respect to
any other Company property, subject to the following sentence, the adjusted
basis of such property for federal income tax purposes, all as of the time of
determination.  The Carrying Value of any
property shall be adjusted from time to time in accordance with Section 3.3(d)(i) and
Section 3.3(d)(ii) 

 

3

 

and to reflect changes,
additions or other adjustments to the Carrying Value for dispositions and
acquisitions of Company properties, as deemed appropriate by the Managing
Member.

 

“Certificate” has the meaning set
forth in Section 2.1.

 

“Class” means the classes into which
the limited liability company interests in the Company created in accordance
with Section 3.1 and Section 3.2(a) may be
classified or divided from time to time by the Managing Member in its sole
discretion pursuant to the provisions of this Agreement. As of the date of this
Agreement the only Class is the Class A Units. Subclasses within a Class shall
not be separate Classes for purposes of this Agreement. For all purposes
hereunder and under the Act, only such Classes expressly established under this
Agreement, including by the Managing Member in accordance with this Agreement,
shall be deemed to be a class or group of limited liability company interests
in the Company.  For the avoidance of
doubt, to the extent that the Managing Member holds limited liability company
interests of any Class, the Managing Member shall not be deemed to hold a
separate Class of such interests from any other Member because it is the
Managing Member.

 

“Class A Units” has the meaning
set forth in Section 3.1.

 

“Code” means the United States
Internal Revenue Code of 1986, as amended from time to time.

 

“Company” has the meaning set forth in
the preamble hereto.

 

“Company Minimum Gain” has the meaning
set forth for the term “partnership minimum gain” in Treasury Regulations Section 1.704-2(d).

 

“Control” means, when used with
reference to any Person, the power to direct the management or policies of such
Person, directly or indirectly, by or through stock or other equity ownership,
agency or otherwise, or pursuant to or in connection with an agreement,
arrangement or other understanding (written or oral); and the terms “controlling”
and “controlled” shall have meanings correlative to the foregoing.

 

“Contributed Property” means any
property contributed to the Company by a Member.

 

“Curative Allocation” means any
allocation of an item of income, gain, deduction, loss or credit pursuant to
the provisions of Section 5.1(b)(ix).

 

“Distributable Assets” means, with
respect to any fiscal period, all cash receipts (including from any operating,
investing and financing activities) and (if distribution thereof is determined
to be necessary or desirable by the Managing Member) other assets of the
Company from any and all sources, reduced by operating cash expenses,
contributions of capital to Subsidiaries of the Company and payments (if any)
required to be made in connection with any loan to the Company and any reserve
for contingencies or escrow required, in each case, as is determined by the
Managing Member in its sole discretion.

 

“Economic Risk of Loss” has the
meaning set forth in Section 5.1(b)(vi).

 

4

 

“Equity Securities” means, as
applicable, (i) any capital stock, limited liability company or membership
interests, partnership interests,  or
other equity interest, (ii) any securities directly or indirectly
convertible into or exchangeable for any capital stock, limited liability
company or membership interests, partnership interests,  or other equity interest or containing any
profit participation features, (iii) any rights or options directly or
indirectly to subscribe for or to purchase any capital stock, limited liability
company or membership interests, partnership interest,  other equity interest or securities
containing any profit participation features or to subscribe for or to purchase
any securities directly or indirectly convertible into or exchangeable for any
capital stock, limited liability company or membership interests, partnership
interest, other equity interests or securities containing any profit
participation features, (iv) any equity appreciation rights, phantom
equity rights or other similar rights, or (v) any Equity Securities issued
or issuable with respect to the securities referred to in clauses (i) through
(iv) above in connection with a combination, recapitalization, merger,
consolidation or other reorganization.

 

“Exchange Agreement” means the
Exchange Agreement, dated on or about the date hereof among the Managing Member
and the Holdings Unitholders (as defined therein) from time to time party
thereto, as it may be amended or supplemented from time to time.

 

“Fair Market Value” means (i) in
reference to a particular Unit or other Equity Security issued by the Company
or, as the case may be, all of the outstanding Units or other Equity Securities
issued by the Company, the hypothetical amount that would be distributed with
respect to such Unit(s) or Equity Security(ies), as determined pursuant to
an appraisal, which appraisal shall be subject to the approval of the Managing
Member, performed at the expense of the Company by (A) the Company or any
of its Subsidiaries or (B) an investment bank, accounting firm or other
Person of national standing having particular expertise in the valuation of
businesses comparable to that of the Company selected by the Managing Member,
and where such appraisal (1) determines the net equity value of the
Company, and (2) assumes the distribution to the Members pursuant to Section 4.1
and ARTICLE VII of the proceeds that would hypothetically be received
with respect to such Unit(s) or other Equity Security(ies) issued by the
Company based on such net equity value, and (ii) in reference to assets or
securities other than Units or other Equity Securities issued by the Company,
the fair market value for such assets or securities as between a willing buyer
and a willing seller in an arm’s length transaction occurring on the date of
valuation, taking into account all relevant factors determinative of value, as
is determined by the Managing Member in its sole discretion.

 

“First Amended Agreement” has the
meaning set forth in the recitals hereto.

 

“Fiscal Quarter” means each fiscal
quarter of the Company, which unless otherwise determined by the Managing
Member in its sole discretion shall be each successive thirteen or fourteen
week period ending on the Friday nearest the last day of each of September,
December, March and June of any Fiscal Year.

 

“Fiscal Year” means the fiscal year of
the Company, which unless otherwise determined by the Managing Member in its
sole discretion shall be each successive fifty-two or fifty-three week period
ending on the Friday nearest June 30.

 

5

 

“GAAP” means accounting principles
generally accepted in the United States of America, consistently applied and
maintained throughout the applicable periods.

 

“Good Faith” shall mean a Person
having acted in good faith and in a manner such Person reasonably believed to
be in or not opposed to the best interests of the Company, and, with respect to
a criminal proceeding, having had no reasonable cause to believe such Person’s
conduct was unlawful.

 

“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, including any court, in each case,
having jurisdiction over the Company or any of its Subsidiaries or any of the
property or other assets of the Company or any of its Subsidiaries.

 

“HSR Act” has the meaning set forth in
Section 7.3(f).

 

“Income” means individual items of
Company income and gain determined in accordance with the definitions of Net
Income and Net Loss.

 

“IPO” means the initial public
offering and sale of Class A common stock, par value $0.01 per share, of
the Managing Member (as contemplated by the Managing Member’s Registration
Statement on Form S-1 (File No. 333-164217)).

 

“Loss” means individual items of
Company loss and deduction determined in accordance with the definitions of Net
Income and Net Loss.

 

“Management Committee” has the meaning
set forth in the Second Amended Agreement.

 

“Managing Member” means DynaVox Inc.,
a Delaware corporation, and any assignee to which the managing member of the
Company Transfers all Units and other Equity Securities held by such managing
member of the Company that is admitted to the Company as the managing member of
the Company, in its capacity as the managing member of the Company.

 

“Member” means each Person listed on
the Schedule of Members on the date hereof (including the Managing Member) and
each other Person who is hereafter admitted as a Member in accordance with the
terms of this Agreement and the Act.  The
Members shall constitute the “members” (as such term is defined in the
Act) of the Company.  Any reference in
this Agreement to any Member shall include such Member’s Successors in Interest
to the extent such Successors in Interest have become Substituted Members in
accordance with the provisions of this Agreement.  Except as otherwise set forth herein or in
the Act, the Members shall constitute a single class or group of members of the
Company for all purposes of the Act and this Agreement.

 

“Member Nonrecourse Debt” has the
meaning set forth for the term “partner nonrecourse debt” in Treasury
Regulations Section 1.704-2(b)(4).

 

6

 

“Member Nonrecourse Debt Minimum Gain”
has the meaning set forth in Treasury Regulations Section 1.704-2(i)(2).

 

“Member Nonrecourse Deduction” has the
meaning set forth for the term “partner nonrecourse deduction” in
Treasury Regulations Section 1.704-2(i)(2).

 

“Membership Interest” means, with
respect to each Member, such Member’s economic interest and rights as a Member.

 

“Net Agreed Value” means, (a) in
the case of any Contributed Property, the Agreed Value of such property reduced
by any liabilities either assumed by the Company upon such contribution or to
which such property is subject when contributed, and (b) in the case of
any property distributed to a Member by the Company, the Company’s Carrying
Value of such property (as adjusted pursuant to Section 3.3(d)(ii))
at the time such property is distributed, reduced by any liabilities either
assumed by such Member upon such distribution or to which such property is
subject at the time of distribution.

 

“Net Income” means, for any taxable
year, the excess, if any, of the Company’s items of income and gain for such
taxable year over the Company’s items of loss and deduction for such taxable
year.  The items included in the
calculation of Net Income shall be determined in accordance with Section 3.3(b) and
shall not include any items specially allocated under Section 5.1(b).

 

“Net Loss” means, for any taxable
year, the excess, if any, of the Company’s items of loss and deduction for such
taxable year over the Company’s items of income and gain for such taxable
year.  The items included in the
calculation of Net Loss shall be determined in accordance with Section 3.3(b) and
shall not include any items specially allocated under Section 5.1(b).

 

“Nonrecourse Deductions”
means any and all items of loss, deduction, or expenditure (including, without
limitation, any expenditure described in Section 705(a)(2)(B) of the
Code) that, in accordance with the principles of Treasury Regulations Section 1.704-2(b),
are attributable to a Nonrecourse Liability.

 

“Nonrecourse Liability” has the
meaning set forth in Treasury Regulations Section 1.752-1(a)(2).

 

“Officer” means each Person designated
as an officer of the Company pursuant to and in accordance with the provisions
of Section 6.2, subject to any resolution of the Managing Member
appointing such Person as an officer of the Company or relating to such
appointment.

 

“Original Agreement” has the meaning
set forth in the recitals hereof.

 

“Percentage Interest” means, with
respect to any Member as of any date of determination, (a) as to any Class A
Units, the product obtained by multiplying (i) 100% less the aggregate
percentage applicable to all Units or other Equity Securities referred to in
clause (b) by (ii) the quotient obtained by dividing (x) the
number of such Units held by such Member by (y) the total number of all
outstanding Class A Units, and (b) as to any other Units or other
Equity 

 

7

 

Securities in the Company,
the percentage established for such Units or other Equity Securities by the
Managing Member as a part of such issuance.

 

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

 

“Pledge” means pledge, grant a
security interest in, create a lien on, assign the right to receive
distributions or proceeds from, or otherwise encumber, directly or indirectly,
or any act of the foregoing.

 

“Proceeding” has the meaning set forth
in Section 6.4.

 

“Quarterly Estimated Tax Periods”
means the two, three, and four calendar month periods with respect to which
Federal quarterly estimated tax payments are made.  The first such period begins on January 1
and ends on March 31.  The second
such period begins on April 1 and ends on May 31.  The third such period begins on June 1
and ends on August 31.  The fourth
such period begins on September 1 and ends on December 31.

 

“Required Allocations” means (a) any
limitation imposed on any allocation of Net Losses under Section 5.1(b) and
(b) any allocation of an item of income, gain, loss or deduction pursuant
to Section 5.1(b)(i), 5.1(b)(ii), 5.1(b)(iii), 5.1(b)(vi) or
5.1(b)(viii).

 

“Residual Gain” or “Residual Loss”
means any item of gain or loss, as the case may be, of the Company recognized
for federal income tax purposes resulting from a sale, exchange or other
disposition of a Contributed Property or Adjusted Property, to the extent such
item of gain or loss is not allocated pursuant to Section 5.2(b)(i)(A) or
5.2(b)(ii)(A), respectively, to eliminate Book-Tax Disparities.

 

“Schedule of Members” has the meaning
set forth in Section 3.1(b).

 

“Second Amended Agreement” has the
meaning set forth in the recitals hereto.

 

“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 any 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
control the management of any 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 

 

8

 

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

 

“Substituted Member” means any Person
that has been admitted to the Company as a Member pursuant to Section 7.5
by virtue of such Person receiving all or a portion of a Membership Interest
from a Member or an Assignee and not from the Company.

 

“Successor in Interest” means any (i) trustee,
custodian, receiver or other Person acting in any Bankruptcy or reorganization
proceeding with respect to, (ii) assignee for the benefit of the creditors
of, (iii) trustee or receiver, or current or former officer, director or
partner, or other fiduciary acting for or with respect to the dissolution,
liquidation or termination of, or (iv) other executor, administrator,
committee, legal representative or other successor or assign of, any Member,
whether by operation of law or otherwise.

 

“Tax Distribution” has the meaning set
forth in Section 4.4.

 

“Tax Matters Member”
has the meaning set forth in Section 8.4(d).

 

“Tax Receivable Agreement” means the
Tax Receivable Agreement, dated on or about the date hereof, among the Managing
Member and the Holdings Unitholders (as defined in the Exchange Agreement) from
time to time party thereto, as it may be amended or supplemented from time to
time.

 

“Transfer” means sell, assign, convey,
contribute, give, or otherwise transfer, whether directly or indirectly,
voluntarily or involuntarily, by operation of law or otherwise, or any act of
the foregoing, but excludes Pledge or any act of Pledging.  The terms “Transferee,” “Transferor,”
“Transferred,” “Transferring Member,” “Transferor Member”
and other forms of the word “Transfer” shall have the correlative
meanings.

 

“Treasury Regulations” means the
regulations, including temporary regulations, promulgated by the United States
Treasury Department under the Code, as such regulations may be amended from
time to time (including corresponding provisions of succeeding regulations).

 

“Units” means the Class A Units
and any other Class of limited liability company interests in the Company
denominated as “Units” that is established in accordance with this Agreement,
which shall constitute limited liability company interests in the Company as
provided in this Agreement and under the Act, entitling the holders thereof to
the relative rights, title and interests in the profits, losses, deductions and
credits of the Company at any particular time as set forth in this Agreement,
and any and all other benefits to which a holder thereof may be entitled as a
Member as provided in this Agreement, together with the obligations of such
Member to comply with all terms and provisions of this Agreement.

 

“Unrealized Gain” attributable to any
item of Company property means, as of any date of determination, the excess, if
any, of (a) the fair market value of such property as of such date (as
determined under Section 3.3(d)) over (b) the Carrying Value
of such property as of such date (prior to any adjustment to be made pursuant
to Section 3.3(d) as of such date).

 

9

 

“Unrealized Loss” attributable to any
item of Company property means, as of any date of determination, the excess, if
any, of (a) the Carrying Value of such property as of such date (prior to
any adjustment to be made pursuant to Section 3.3(d) as of
such date) over (b) the fair market value of such property as of such date
(as determined under Section 3.3(d)).

 

“Unvested Units” has the meaning set
forth in Section 7.2.

 

Section 1.2.  Terms
Generally.  In this Agreement, unless
otherwise specified or where the context otherwise requires:

 

(a)           the
headings of particular provisions of this Agreement are inserted for
convenience only and will not be construed as a part of this Agreement or serve
as a limitation or expansion on the scope of any term or provision of this
Agreement;

 

(b)           words
importing any gender shall include other genders;

 

(c)           words
importing the singular only shall include the plural and vice versa;

 

(d)           the
words “include,” “includes” or “including” shall be deemed to be followed by
the words “without limitation”;

 

(e)           the
words “hereof,” “herein” and “herewith” and words of similar import shall,
unless otherwise stated, be construed to refer to this Agreement as a whole and
not to any particular provision of this Agreement;

 

(f)            references
to “Articles,” “Exhibits,” “Sections” or “Schedules” shall be to Articles,
Exhibits, Sections or Schedules of or to this Agreement;

 

(g)           references
to any Person include the successors and permitted assigns of such Person;

 

(h)           the
use of the words “or,” “either” and “any” shall not be exclusive;

 

(i)            wherever
a conflict exists between this Agreement and any other agreement among parties
hereto, this Agreement shall control but solely to the extent of such conflict;

 

(j)            references
to “$” or “dollars” means the lawful currency of the United States of America;

 

(k)           references
to any agreement, contract or schedule, unless otherwise stated, are to such
agreement, contract or schedule as amended, modified or supplemented from time
to time in accordance with the terms hereof and thereof; and

 

(l)            the
parties hereto have participated collectively in the negotiation and drafting
of this Agreement; accordingly, in the event an ambiguity or question of intent
or interpretation arises, it is the intention of the parties that this
Agreement shall be construed as if drafted collectively by the parties hereto,
and that no presumption or burden of proof shall arise 

 

10

 

favoring or disfavoring any party hereto by virtue of the authorship of
any provisions of this Agreement.

 

ARTICLE II

GENERAL PROVISIONS

 

Section 2.1.  Formation.  The Company was formed as a Delaware limited
liability company on April 20, 2004 by the execution and filing of a
Certificate of Formation of the Company (the “Certificate”) by an
authorized person under and pursuant to the Act and the execution of the
Original Agreement.  The Members agree to
continue the Company as a limited liability company under the Act, upon the
terms and subject to the conditions set forth in this Agreement.  The rights, powers, duties, obligations and
liabilities of the Members shall be determined pursuant to the Act and this
Agreement. To the extent that the rights, powers, duties, obligations and
liabilities of any Member are different by reason of any provision of this
Agreement than they would be in the absence of such provision, this Agreement
shall, to the extent permitted by the Act, control.

 

Section 2.2.  Name.  The name of the Company is “DynaVox Systems
Holdings LLC,” and all Company business shall be conducted in that name or in
such other names that comply with applicable law as the Managing Member may
select from time to time.  Subject to the
Act, the Managing Member may change the name of the Company (and amend this
Agreement to reflect such change) at any time and from time to time without the
consent of any other Person.  Prompt
notification of any such change shall be given to all Members.

 

Section 2.3.  Section Term.  The term of the Company commenced on the date
the Certificate was filed with the office of the Secretary of State of the
State of Delaware and shall continue in existence perpetually until termination
in accordance with the provisions of Section 7.3(d) and the
Act.

 

Section 2.4.  Purpose;
Powers.

 

(a)           General Powers. 
The nature of the business or purposes to be conducted or promoted by
the Company is to engage in any lawful act or activity for which limited
liability companies may be formed under the Act.  The Company may engage in any and all
activities necessary, desirable or incidental to the accomplishment of the
foregoing.  Notwithstanding anything
herein to the contrary, nothing set forth herein shall be construed as
authorizing the Company to possess any purpose or power, or to do any act or
thing, forbidden by law to a limited liability company formed under the laws of
the State of Delaware.

 

(b)           Company Action. 
Subject to the provisions of this Agreement and except as prohibited by
the Act, (i) the Company may, with the approval of the Managing Member,
enter into and perform any and all documents, agreements and instruments, all
without any further act, vote or approval of any Member and (ii) the
Managing Member may authorize any Person (including any Member or Officer) to
enter into and perform any document on behalf of the Company.

 

Section 2.5.  Existence and
Good Standing; Foreign Qualification. 
The Managing Member may take all action which may be necessary or
appropriate (i) for the continuation of the 

 

11

 

Company’s valid existence as
a limited liability company under the laws of the State of Delaware (and of
each other jurisdiction in which such existence is necessary to enable the
Company to conduct the business in which it is engaged) and (ii) for the
maintenance, preservation and operation of the business of the Company in
accordance with the provisions of this Agreement and applicable laws and
regulations.  The Managing Member may
file or cause to be filed for recordation in the office of the appropriate
authorities of the State of Delaware, and in the proper office or offices in
each other jurisdiction in which the Company is formed or qualified, such
certificates (including certificates of limited liability companies and
fictitious name certificates) and other documents as are required by the
applicable statutes, rules or regulations of any such jurisdiction or as
are required to reflect the identity of the Members and the amounts of their
respective capital contributions.  The
Managing Member may cause the Company to comply, to the extent procedures are
available and those matters are reasonably within the control of the Officers,
with all requirements necessary to qualify the Company as a foreign limited
liability company in any jurisdiction other than the State of Delaware.

 

Section 2.6.  Registered
Office; Registered Agent; Principal Office; Other Offices.  The registered office of the Company required
by the 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 Company) as the Managing Member may
designate from time to time in the manner provided by law.  The registered agent of the Company in the
State of Delaware shall be the initial registered agent named in the
Certificate or such other Person or Persons as the Managing Member may designate
from time to time in the manner provided by law.  The principal office of the Company shall be
at such place as the Managing Member may designate from time to time, which
need not be in the State of Delaware, and the Company shall maintain records at
such place.  The Company may have such
other offices as the Managing Member may designate from time to time.

 

Section 2.7.  No State Law
Partnership.  (a) The Members
intend that the Company shall not be a partnership (including a limited
partnership) or joint venture, and that no Member or Officer shall be a partner
or joint venturer of any other Member or Officer by virtue of this Agreement,
for any purposes other than as is set forth in the last sentence of this Section 2.7(a),
and this Agreement shall not be construed to the contrary.  The Members intend that the Company shall be
treated as a partnership for federal and, if applicable, state or local income
tax purposes, and each Member, Assignee and the Company shall file all tax
returns and shall otherwise take all tax and financial reporting positions in a
manner consistent with such treatment.

 

(b)           So long as the Company is treated as a partnership for
federal income tax purposes, to ensure that Units are not traded on an
established securities market within the meaning of Treasury Regulations Section 1.7704-1(b) or
readily tradable on a secondary market or the substantial equivalent thereof
within the meaning of Regulations Section 1.7704-1(c), notwithstanding
anything to the contrary contained herein,

 

(i)            the Company shall
not participate in the establishment of any such market or the inclusion of its
Units thereon, and

 

12

 

(ii)           the Company
shall not recognize any Transfer made on any such market by:

 

(A)          redeeming the
Transferor Member (in the case of a redemption or repurchase by the Company);
or

 

(B)           admitting the
Transferee as a Member or otherwise recognizing any rights of the Transferee,
such as a right of the Transferee to receive Company distributions (directly or
indirectly) or to acquire an interest in the capital or profits of the Company.

 

Section 2.8.  Admission.  The Managing Member is hereby admitted as a
member of the company upon its execution of a counterpart signature page to
this Agreement and each member of the Company immediately prior to the
effectiveness of this Agreement shall continue as a Member hereunder.

 

ARTICLE III

CAPITALIZATION

 

Section 3.1.  Units;
Initial Capitalization; Schedules.

 

(a)           Limited Liability Company
Interests.  Interests
in the Company shall be represented by Units, or such other Equity Securities
in the Company, or such other Company securities, in each case as the Managing
Member may establish in its sole discretion in accordance with the terms
hereof. As of the date hereof, the Units are comprised of one Class: “Class A
Units”.

 

(b)           Schedule of Units; Schedule
of Members.  The
aggregate number of outstanding Units and the aggregate amount of cash Capital
Contributions that have been made by the Members and the Fair Market Value of
any property other than cash contributed by the Members with respect to the
Units (including, if applicable, a description and the amount of any liability
assumed by the Company or to which contributed property is subject) shall be
set forth on a schedule maintained by the Company.  The Company shall also maintain a schedule
setting forth the name and address of each Member, the number of Units owned by
such Member and the aggregate Capital Contributions that have been made by such
Member with respect to such Member’s Units (such schedule, the “Schedule of
Members”).  The Schedule of Members
shall be the definitive record of ownership of each Unit or other Equity
Security in the Company and all relevant information with respect to each
Member.  The Company shall be entitled to
recognize the exclusive right of a Person registered on its records as the
owner of Units or other Equity Securities in the Company for all purposes and
shall not be bound to recognize any equitable or other claim to or interest in
Units or other Equity Securities in the Company on the part of any other
Person, whether or not it shall have express or other notice thereof, except as
otherwise provided by the Act.

 

(c)           The Class A Units (as
defined in the Second Amended Agreement), Class B Units (as defined in the
Second Amended Agreement), Class C Units (as defined in the Second Amended
Agreement), Class D Units (as defined in the Second Amended Agreement), Class E
Units (as defined in the Second Amended Agreement), Class W Units (as
defined in the Second 

 

13

 

Amended Agreement), Class X Units (as
defined the Second Amended Agreement), Class Y Units (as defined in the
Second Amended Agreement) and Class Z Units (as defined in the Second
Amended Agreement) issued and outstanding immediately prior to the
effectiveness of this Agreement are hereby converted into Class A Units
and each Member owns the number of Class A Units set forth opposite the
name of such Member in the Schedule of Members.

 

Section 3.2.  Authorization
and Issuance of Additional Units.

 

(a)           The Managing Member may
issue additional Class A Units and/or establish and issue other Classes of
Units, other Equity Securities in the Company or other Company securities from
time to time with such rights, obligations, powers, designations, preferences
and other terms, which may be different from, including senior to, any then existing
or future Classes of Units, other Equity Securities in the Company or other
Company securities, as the Managing Member shall determine from time to time,
in its sole discretion, without the vote or consent of any other Member or any
other Person, including (i) the right of such Units, other Equity
Securities in the Company or other Company securities to share in Net Income
and Net Loss or items thereof; (ii) the right of such Units, other Equity
Securities in the Company or other Company securities to share in Company
distributions; (iii) the rights of such Units, other Equity Securities or
other Company securities upon dissolution and liquidation of the Company; (iv) whether,
and the terms and conditions upon which, the Company may or shall be required to
redeem such Units, other Equity Securities in the Company or other Company
securities (including sinking fund provisions); (v) whether such Units,
other Equity Securities in the Company or other Company securities are issued
with the privilege of conversion or exchange and, if so, the terms and
conditions of such conversion or exchange; (vi) the terms and conditions
upon which such Units, other Equity Securities in the Company or other Company
securities will be issued, evidenced by certificates or assigned or
transferred; (vii)  the terms and conditions of the issuance of such
Units, other Equity Securities in the Company or other Company securities
(including, without limitation, the amount and form of consideration, if any,
to be received by the Company in respect thereof, the Managing Member being
expressly authorized, in its sole discretion, 
to cause the Company to issue Units, other Equity Securities in the
Company or other Company securities for less than Fair Market Value); and (viii) the
right, if any, of the holder of such Units, other Equity Securities in the
Company or other Company securities to vote on Company matters, including
matters relating to the relative designations, preferences, rights, powers and
duties of such Units, other Equity Securities in the Company or other Company
securities. The Managing Member, without the vote or consent of any other
Member or any other Person, is authorized (i) to issue any Units, other
Equity Securities in the Company or other Company securities of any such newly
established Class or any existing Class and (ii) to amend this
Agreement to reflect the creation of any such new Class, the issuance of Units,
other Equity Securities in the Company or other Company securities of such
Class, and the admission of any Person as a Member which has received Units or
other Equity Securities of any such Class, in accordance with Sections 3.2,
7.4 and 9.4.  Except as expressly
provided in this Agreement to the contrary, any reference to “Units” shall
include the Class A Units and any other Classes of Units that may be
established in accordance with this Agreement.

 

14

 

Section 3.3.  Capital
Accounts.

 

(a)           The Managing Member shall
maintain for each Member owning Units a separate Capital Account with respect
to such Units in accordance with the rules of Treasury Regulations Section 1.704-1(b)(2)(iv).
Such Capital Account shall be increased by (i) the amount of all Capital
Contributions made to the Company with respect to such Units pursuant to this
Agreement and (ii) all items of Company income and gain (including,
without limitation, income and gain exempt from tax) computed in accordance
with Section 3.3(b) and allocated with respect to such Units
pursuant to Section 5.1, and decreased by (x) the amount of
cash or Net Agreed Value of all actual and deemed distributions of cash or
property made with respect to such Units pursuant to this Agreement and (y) all
items of Company deduction and loss computed in accordance with Section 3.3(b) and
allocated with respect to such Units pursuant to Section 5.1. The
foregoing provisions and the other provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Treasury
Regulations Section 1.704-1(b) and shall be interpreted and applied
in a manner consistent with such Treasury Regulations. In the event the
Managing Member shall determine that it is prudent to modify the manner in
which the Capital Accounts or any adjustments thereto (including, without
limitation, adjustments relating to liabilities which are secured by
contributed or distributed property or which are assumed by the Company or any
Members) are computed in order to comply with such Treasury Regulations, the
Managing Member, without the consent of any other Person, may make such
modification, notwithstanding the terms of this Agreement, provided that it is
not likely to have a material effect on the amounts distributed to any Person
pursuant to ARTICLE VII hereof upon the dissolution of the Company. The
Managing Member, without the consent of any other Person, also shall (i) make
any adjustments, notwithstanding the terms of this Agreement, that are
necessary or appropriate to maintain equality among the Capital Accounts of the
Members and the amount of capital reflected on the Company’s balance sheet, as
computed for book purposes, in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(q),
and (ii) make any appropriate modifications, notwithstanding the terms of
this Agreement, in the event unanticipated events might otherwise cause this
Agreement not to comply with Treasury Regulations Section 1.704-1(b).

 

(b)           For purposes of computing
the amount of any item of income, gain, loss or deduction, which is to be
allocated pursuant to ARTICLE V and is to be reflected in the Members’
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, without limitation, any method of
depreciation, cost recovery or amortization used for that purpose), provided,
that:

 

(i)            Solely for
purposes of this Section 3.3, the Company shall be treated as
owning directly its proportionate share (as determined by the Managing Member)
of all property owned by any partnership, limited liability company,
unincorporated business or other entity or arrangement that is classified as a
partnership for federal income tax purposes, of which the Company is, directly
or indirectly, a partner.

 

(ii)           Except as
otherwise provided in Treasury Regulations Section 1.704-1(b)(2)(iv)(m), the
computation of all items of income, gain, loss and deduction shall be made
without regard to any election under Section 754 of the Code which may be made
by the Company and, as to those items described in Section 705(a)(1)(B) or 

 

15

 

705(a)(2)(B) of
the Code, without regard to the fact that such items are not includable in
gross income or are neither currently deductible nor capitalized for federal
income tax purposes. To the extent an adjustment to the adjusted tax basis of
any Company asset pursuant to Section 734(b) or 743(b) of the
Code is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m),
to be taken into account in determining Capital Accounts, the amount of such
adjustment in the Capital Accounts shall be treated as an item of gain or loss.

 

(iii)          Any income,
gain or loss attributable to the taxable disposition of any Company property
shall be determined as if the adjusted basis of such property as of such date
of disposition were equal in amount to the Company’s Carrying Value with
respect to such property as of such date.

 

(iv)          In accordance
with the requirements of Section 704(b) of the Code, any deductions
for depreciation, cost recovery or amortization attributable to any Contributed
Property shall be determined in the manner described in Treasury Regulations Section 1.704-1(b)(2)(iv)(g)(3) as
if the adjusted basis of such property on the date it was acquired by the
Company were equal to the Agreed Value of such property.  Upon an adjustment pursuant to Section 3.3(d) to
the Carrying Value of any Adjusted Property that is subject to depreciation,
cost recovery or amortization, any further deductions for such depreciation,
cost recovery or amortization attributable to such property shall be determined
in the manner described in Treasury Regulations Sections 1.704-1(b)(2)(iv)(g)(3) and
1.704-3(a)(6)(i) as if the adjusted basis of such property were equal to
the Carrying Value of such property immediately following such adjustment;
provided, however, that, if the asset has a zero adjusted basis for federal
income tax purposes, depreciation, cost recovery or amortization deductions
shall be determined using any method that the Managing Member may adopt.

 

(c)           A transferee of Units shall
succeed to a pro rata portion of the Capital Account of the transferor relating
to the Units so transferred.

 

(i)            In accordance
with Treasury Regulations Section 1.704-1(b)(2)(iv)(f), on an issuance of
additional Units for cash or Contributed Property and the issuance of Units as
consideration for the provision of services, the Capital Account of all Members
and the Carrying Value of each Company property immediately prior to such
issuance shall be adjusted upward or downward to reflect any Unrealized Gain or
Unrealized Loss attributable to such Company property, as if such Unrealized
Gain or Unrealized Loss had been recognized on an actual sale of each such
property immediately prior to such issuance and had been allocated to the
Members at such time pursuant to Section 6.1 in the same manner as
a corresponding item of gain or loss actually recognized during such period
would have been allocated. In determining such Unrealized Gain or Unrealized
Loss, the aggregate cash amount and fair market value of all Company assets
(including, without limitation, cash or cash equivalents) immediately prior to
the issuance of additional Units shall be determined by the Managing Member
using such method of valuation as it may adopt; provided, however, that the
Managing Member, in arriving at such valuation, must take fully into account
the fair market value of the Units of all Members at such time. The Managing
Member shall allocate such 

 

16

 

aggregate
value among the assets of the Company (in such manner as it determines) to
arrive at a fair market value for individual properties.

 

(ii)           In accordance
with Treasury Regulations Section 1.704-1(b)(2)(iv)(f), immediately prior
to any actual or deemed distribution to a Member of any Company property (other
than a distribution of cash that is not in redemption or retirement of a Unit),
the Capital Accounts of all Members and the Carrying Value of all Company
property shall be adjusted upward or downward to reflect any Unrealized Gain or
Unrealized Loss attributable to such Company property, as if such Unrealized
Gain or Unrealized Loss had been recognized in a sale of such property
immediately prior to such distribution for an amount equal to its fair market
value, and had been allocated to the Members, at such time, pursuant to Section 5.1
in the same manner as a corresponding item of gain or loss actually recognized
during such period would have been allocated. In determining such Unrealized
Gain or Unrealized Loss, the aggregate cash amount and fair market value of all
Company assets (including, without limitation, cash or cash equivalents)
immediately prior to a distribution shall (A) in the case of an actual
distribution that is not made pursuant to ARTICLE VII or in the case of
a deemed distribution, be determined and allocated in the same manner as that
provided in Section 3.3(d)(i) or (B) in the case of a
liquidating distribution pursuant to ARTICLE VII, be determined and
allocated by the Person winding up the Company pursuant to Section 7.3(b) using
such method of valuation as it may adopt.

 

(iii)          The Managing
Member may make the adjustments described in clause (i) above in the
manner set forth therein if the Managing Member determines that such
adjustments are necessary or useful to effectuate the intended economic
arrangement among the Members, including Members who received Units in
connection with the performance of services to or for the benefit of the
Company.

 

(d)           Notwithstanding anything
expressed or implied to the contrary in this Agreement, in the event the
Managing Member shall determine, in its sole and absolute discretion, that it
is prudent to modify the manner in which the Capital Accounts, or any debits or
credits thereto, are computed in order to effectuate the intended economic
sharing arrangement of the Members, the Managing Member may make such
modification, notwithstanding any other provision hereof, without the consent
of any other Person.

 

Section 3.4.  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 Company, except as expressly provided herein.

 

Section 3.5.  Loans From
Members.  Loans by Members to the
Company shall not be considered Capital Contributions.  If any Member shall loan funds to the
Company, then the making of such loans shall not result in any increase in the
Capital Account balance of such Member. 
The amount of any such loans shall be a debt of the Company to such
Member and shall be payable or collectible in accordance with the terms and
conditions upon which such loans are made.

 

17

 

Section 3.6.  No Right of
Partition.  To the fullest extent
permitted by law, no Member shall have the right to seek or obtain partition by
court decree or operation of law of any property of the Company or any of its
Subsidiaries or the right to own or use particular or individual assets of the
Company or any of its Subsidiaries, or, except as expressly contemplated by
this Agreement, be entitled to distributions of specific assets of the Company
or any of its Subsidiaries.

 

Section 3.7.  Non-Certification
of Units; Legend; Units are Securities.

 

(a)           Units shall be issued in
non-certificated form; provided that the Managing Member may cause the Company
to issue certificates to a Member representing the Units held by such Member.

 

(b)           If the Managing Member
determines that the Company shall issue certificates representing Units to any
Member, the following provisions of this Section 3.7 shall apply:

 

(i)            The Company
shall issue one or more certificates in the name of such Person in such form as
it may approve, subject to Section 3.7(b)(ii) (a “Membership
Interest Certificate”), which shall evidence the ownership of the Units
represented thereby.  Each such
Membership Interest Certificate shall be denominated in terms of the number of
Units evidenced by such Membership Interest Certificate and shall be signed by
the Managing Member or an Officer on behalf of the Company.

 

(ii)           Each Membership
Interest Certificate shall bear a legend substantially in the following form:

 

This certificate evidences a Class A Unit representing an interest
in DynaVox Systems Holdings LLC and shall constitute a “security” within the
meaning of, and shall be governed by, (i) Article 8 of the Uniform
Commercial Code (including Section 8-102(a)(15) thereof) as in effect from
time to time in the State of Delaware, and (ii) the corresponding
provisions of the Uniform Commercial Code of any other applicable jurisdiction
that now or hereafter substantially includes the 1994 revisions to Article 8
thereof as adopted by the American Law Institute and the National Conference of
Commissioners on Uniform State Laws and approved by the American Bar
Association on February 14, 1995.

 

The interests in DynaVox Systems Holdings LLC represented by this
certificate are subject to restrictions on transfer set forth in the Third
Amended and Restated Limited Liability Company Agreement of DynaVox Systems
Holdings LLC, dated as of
           , 2010, by
and among each of the members from time to time party thereto, as the same may
be amended from time to time.

 

(iii)          Each Unit shall
constitute a “security” within the meaning of, and shall be governed by, (i) Article 8
of the Uniform Commercial Code (including Section 8-102(a)(15) thereof) as
in effect from time to time in the State of Delaware, and (ii) the
corresponding provisions of the Uniform Commercial Code of any other applicable
jurisdiction that now or hereafter substantially includes the 1994 revisions to
Article 8 

 

18

 

thereof
as adopted by the American Law Institute and the National Conference of
Commissioners on Uniform State Laws and approved by the American Bar
Association on February 14, 1995.

 

(iv)          The Company
shall issue a new Membership Interest Certificate in place of any Membership
Interest Certificate previously issued if the holder of the Units represented
by such Membership Interest Certificate, as reflected on the books and records
of the Company:

 

(A)          makes proof by
affidavit, in form and substance satisfactory to the Company, that such
previously issued Membership Interest Certificate has been lost, stolen or
destroyed;

 

(B)           requests the
issuance of a new Membership Interest Certificate before the Company has notice
that such previously issued Membership Interest Certificate has been acquired
by a purchaser for value in good faith and without notice of an adverse claim;

 

(C)           if requested by
the Company, delivers to the Company such security, in form and substance
satisfactory to the Company, as the Managing Member may direct, to indemnify
the Company against any claim that may be made on account of the alleged loss,
destruction or theft of the previously issued Membership Interest Certificate;
and

 

(D)          satisfies any
other reasonable requirements imposed by the Company.

 

(v)           Upon a Member’s
Transfer in accordance with the provisions of this Agreement of any or all
Units represented by a Membership Interest Certificate, the Transferee of such
Units shall deliver such Membership Interest Certificate, duly endorsed for
Transfer by the Transferee, to the Company for cancellation, and the Company
shall thereupon issue a new Membership Interest Certificate to such Transferee
for the number of Units being Transferred and, if applicable, cause to be
issued to such Transferring Member a new Membership Interest Certificate for
the number of Units that were represented by the canceled Membership Interest
Certificate and that are not being Transferred.

 

ARTICLE IV

DISTRIBUTIONS

 

Section 4.1.  Distributions.  Distributions shall be made to the Members, after
Tax Distributions are made pursuant to Section 4.4 hereof, as and
when determined by the Managing Member, in accordance with their respective
Units and pro rata in respect of each Class of Units.

 

Section 4.2.  Unvested
Units.  To the extent that any
distribution, other than a Tax Distribution, is to be made to a Member in
respect of any Unvested Unit, such distribution shall be set aside for such
Member to be distributed to such Member at the time that such Unit ceases to be
an Unvested Unit.  To the extent that
such Unvested Unit shall be forfeited by or 

 

19

 

repurchased from such Member
without having ceased to be an Unvested Unit, such distribution shall revert to
the Company.

 

Section 4.3.  Successors.  For purposes of determining the amount of
distributions under Section 4.1, each Member shall be treated as
having made the Capital Contributions and as having received the distributions
made to or received by its predecessors in respect of any of such Member’s
Units.

 

Section 4.4.  Tax
Distributions.  Subject to Section 4.7
and to any restrictions contained in any agreement to which the Company is
bound, no later than the tenth day following the end of each Quarterly
Estimated Tax Period of each calendar year, the Company shall, to the extent of
available cash and borrowings of the Company, make a distribution in cash
(each, a “Tax Distribution”), pro rata in accordance with the Percentage
Interests in effect with respect to such Quarterly Estimated Tax Period, in an
amount equal to the excess of (i) the product of (x) the taxable
income of the Company attributable to such Quarterly Estimated Tax Period and
all prior Quarterly Estimated Tax Periods in such calendar year, based upon (I) the
information returns filed by the Company, as amended or adjusted to date, and (II) estimated
amounts, in the case of periods for which the Company has not yet filed
information returns, multiplied by (y) the Assumed Tax Rate, over (ii) distributions
made by the Company pursuant to this Section 4.4 with respect to
such calendar year.  The Managing Member
shall use conventions similar to those adopted pursuant to Section 5.2(d) of
this Agreement to determine the Percentage Interests of the Members with
respect to a Quarterly Estimated Tax Period. 
For the avoidance of doubt, Tax Distributions shall be made only with
respect to taxable income earned by the Company (as opposed to income
recognized by any Member with respect to the vesting of such Member’s
Units).  For purposes of clause (i)(x) above,
the taxable income of the Company shall be determined by disregarding any
adjustment to the taxable income of any Member that arises under Section 743(b) of
the Code and is attributable to the acquisition by such Member of an interest
in the Company in a transaction described in Section 743(a) of the
Code.

 

Section 4.5.  Security
Interest and Right of Set Off; Indemnification.  If the Company is required by law to make any
payment to a Governmental Entity that is specifically attributable to a Member
or a Member’s status as such (including federal withholding taxes, state or
local personal property taxes and state or local unincorporated business
taxes), then such Member shall indemnify the Company or its successor in
interest in full for the entire amount paid (including interest, penalties and
reasonable related expenses).  A Member’s
obligation to indemnify the Company or its successor in interest under this Section 4.5
shall survive the dissolution, winding up and termination of the Company.  The Company and its successor in interest may
pursue and enforce all rights and remedies it may have against each Member
under this Section 4.5, including instituting a lawsuit to collect
such indemnification, with interest calculated at a rate equal to 10 percent
(but not in excess of the highest rate per annum permitted by law).  As security for any such indemnification
obligation or any other liability or obligation to which the Company may be
subject as a result of any act or status of any Member, or to which the Company
may become subject with respect to the interest of any Member in the Company,
the Company shall have (and each Member hereby grants to the Company) a
security interest in all Distributable Assets distributable to such Member to
the extent of the amount of such liability or obligation.  Whenever the Company is to pay any sum to any
Member or any Affiliate or 

 

20

 

related Person thereof
pursuant to the terms of this Agreement, any amounts that such Member or such
Affiliate or related Person owes to the Company, whether pursuant to this Section 4.5
or under any promissory note issued to the Company as partial payment for any
Units of the Company may be deducted from that sum before payment; provided,
however, that no deduction pursuant to this sentence shall be made with respect
to any Tax Distribution except on account of any amounts owed by such Member or
such Affiliate or related Person which (i) are due and owing pursuant to
the indemnification obligation provided for in this Section 4.5 or (ii) are
past due or as to which the obligor is otherwise in default.

 

Section 4.6.  Certain
Distributions.  For purposes of this ARTICLE
IV, a distribution to a Member of property (other than cash) shall be
treated as a Tax Distribution pursuant to Section 4.4 (rather than
as, for example, a distribution pursuant to Section 4.1) in an
amount equal to the hypothetical amount of tax that the Member would pay, at
the Assumed Tax Rate, if (i) such property were not treated as a
distribution of money pursuant to Section 731(c)(2) of the Code (to
the extent that Section 731(c)(2) otherwise applies) and (ii) the
Member sold the property immediately after receiving such distribution.

 

Section 4.7.  Limitation.  Notwithstanding any other provision of this
Agreement, the Company, and the Managing Member on behalf of the Company, shall
not be required to make a distribution if such distribution to any Member or
Assignee would violate the Act or other applicable law.

 

ARTICLE V

ALLOCATIONS

 

Section 5.1.  Allocations
for Capital Account Purposes.  (a) Except
as otherwise provided in this Agreement, Net Income and Net Losses (and, to the
extent necessary, individual items of income, gain or loss or deduction of the
Company) shall be allocated in a manner such that the Capital Account of each
Member after giving effect to the Special Allocations set forth in Section 5.1(b) is,
as nearly as possible, equal (proportionately) to (i) the distributions
that would be made pursuant to Section 7.3 if the Company were dissolved,
its affairs wound up and its assets sold for cash equal to their Carrying
Value, all Company liabilities were satisfied (limited with respect to each
non-recourse liability to the Carrying Value of the assets securing such
liability) and the net assets of the Company were distributed to the Members
pursuant to this Agreement, minus (ii) such Member’s share of
Company Minimum Gain and Member Nonrecourse Debt Minimum Gain, computed
immediately prior to the hypothetical sale of assets.

 

(b)           Special Allocations.  Notwithstanding any other provision of this Section 5.1,
the following special allocations shall be made for such taxable period:

 

(i)            Company Minimum
Gain Chargeback. 
Notwithstanding any other provision of this Section 5.1, if
there is a net decrease in Company Minimum Gain during any Company taxable
period, each Member shall be allocated items of Company income and gain for
such period (and, if necessary, subsequent periods) in the manner and amounts
provided in Treasury Regulations Sections 1.704-2(f)(6), 1.704-2(g)(2) and
1.704-2(j)(2)(i), or any successor provision. 
For purposes of this Section 5.1(b), each 

 

21

 

Member’s
Adjusted Capital Account balance shall be determined, and the allocation of
income and gain required hereunder shall be effected, prior to the application
of any other allocations pursuant to this Section 5.1(b) with
respect to such taxable period (other than an allocation pursuant to Section 5.1(b)(iii) and
Section 5.1(b)(vi)).  This Section 5.1(b)(i) is
intended to comply with the Company Minimum Gain chargeback requirement in
Treasury Regulations Section 1.704-2(f) and shall be interpreted
consistently therewith.

 

(ii)           Chargeback of
Member Nonrecourse Debt Minimum Gain.  Notwithstanding the other provisions of this Section 5.1
(other than Section 5.1(b)(i)), except as provided in Treasury
Regulations Section 1.704-2(i)(4), if there is a net decrease in Member
Nonrecourse Debt Minimum Gain during any Company taxable period, any Member
with a share of Member Nonrecourse Debt Minimum Gain at the beginning of such
taxable period shall be allocated items of Company income and gain for such
period (and, if necessary, subsequent periods) in the manner and amounts
provided in Treasury Regulations Sections 1.704-2(i)(4) and
1.704-2(j)(2)(ii), or any successor provisions. For purposes of this Section 5.1(b),
each Member’s Adjusted Capital Account balance shall be determined, and the allocation
of income and gain required hereunder shall be effected, prior to the
application of any other allocations pursuant to this Section 5.1(b),
other than Section 5.1(b)(i) and other than an allocation
pursuant to Section 5.1(b)(i)(v) and (b)(i)(vi), with
respect to such taxable period.  This Section 5.1(b)(ii) is
intended to comply with the chargeback of items of income and gain requirement
in Treasury Regulations Section 1.704-2(i)(4) and shall be
interpreted consistently therewith.

 

(iii)          Qualified Income
Offset.  In the event any Member
unexpectedly receives any adjustments, allocations or distributions described
in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5), or (6), items of
Company income and gain shall be specially allocated to such Member in an
amount and manner sufficient to eliminate, to the extent required by the
Treasury Regulations promulgated under Section 704(b) of the Code,
the deficit balance, if any, in its Adjusted Capital Account created by such
adjustments, allocations or distributions as quickly as possible, unless such
deficit balance is otherwise eliminated pursuant to Section 5.1(b)(i) or
(ii). This Section 5.1(b)(iii) is intended to qualify
and be construed as a “qualified income offset” within the meaning of Treasury
Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted
consistently therewith.

 

(iv)          Gross Income
Allocations.  In the
event any Member has a deficit balance in its Capital Account at the end of any
Company taxable period in excess of the sum of (A) the amount such Member
is required to restore pursuant to the provisions of this Agreement and (B) the
amount such Member is deemed obligated to restore pursuant to Treasury
Regulations Sections 1.704-2(g) and 1.704-2(i)(5), such Member shall be specially
allocated items of Company gross income and gain in the amount of such excess
as quickly as possible; provided, that an allocation pursuant to this Section 5.1(b)(iv) shall
be made only if and to the extent that such Member would have a deficit balance
in its Capital Account as adjusted after all other allocations provided for in
this

 

22

 

Section 5.1 have been
tentatively made as if this Section 5.1(b)(iv) were not in
this Agreement.

 

(v)           Nonrecourse
Deductions.  Nonrecourse
Deductions for any taxable period shall be allocated to the Members in
accordance with their respective Percentage Interests.  If the Managing Member determines that the
Company’s Nonrecourse Deductions should be allocated in a different ratio to
satisfy the safe harbor requirements of the Treasury Regulations promulgated
under Section 704(b) of the Code, the Managing Member is authorized,
upon notice to the other Members, to revise the prescribed ratio to the
numerically closest ratio that does satisfy such requirements.

 

(vi)          Member
Nonrecourse Deductions. 
Member Nonrecourse Deductions for any taxable period shall be allocated
100% to the Member that bears the “Economic Risk of Loss” (as defined in the
Treasury Regulations) with respect to the Member Nonrecourse Debt to which such
Member Nonrecourse Deductions are attributable in accordance with Treasury
Regulations Section 1.704-2(i).  If
more than one Member bears the Economic Risk of Loss with respect to a Member
Nonrecourse Debt, such Member Nonrecourse Deductions attributable thereto shall
be allocated between or among such Members in accordance with the ratios in which
they share such Economic Risk of Loss.

 

(vii)         Nonrecourse
Liabilities.  Nonrecourse
Liabilities of the Company described in Treasury Regulations Section 1.752-3(a)(3) shall
be allocated among the Members in the manner chosen by the Managing Member and
consistent with such Section of the Treasury Regulations.

 

(viii)        Code Section 754
Adjustments.  To the
extent an adjustment to the adjusted tax basis of any Company asset pursuant to
Section 734(b) or 743(b) of the Code is required, pursuant to
Treasury Regulations 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), and such item of gain or loss shall be specially allocated to the
Members in a manner consistent with the manner in which their Capital Accounts
are required to be adjusted pursuant to such Section of the Treasury Regulations.

 

(ix)           Curative
Allocation.

 

(1)           The Required
Allocations are intended to comply with certain requirements of the Treasury
Regulations. It is the intent of the Members that, to the extent possible, all
Required Allocations shall be offset either with other Required Allocations or
with special allocations of other items of Company income, gain, loss or
deduction pursuant to this Section 5.1(b)(ix)(1). Therefore,
notwithstanding any other provision of this ARTICLE V (other than the
Required Allocations), the Managing Member shall make such offsetting special
allocations of Company income, gain, loss or deduction in whatever manner it
determines appropriate so that, after such offsetting allocations are made,
each Member’s 

 

23

 

Capital
Account balance is, to the extent possible, equal to the Capital Account
balance such Member would have had if the Required Allocations were not part of
this Agreement and all Company items were allocated pursuant to the economic
agreement among the Members.

 

(2)           The Managing
Member shall, with respect to each taxable period, (1) apply the
provisions of Section 5.1(b)(ix)(1) in whatever order is most
likely to minimize the economic distortions that might otherwise result from
the Required Allocations, and (2) divide all allocations pursuant to Section 5.1(b)(ix)(1) among
the Members in a manner that is likely to minimize such economic distortions.

 

(x)            Deficit Capital
Accounts.  No Member
shall be required to pay to the Company, to any other Member or to any third
party any deficit balance which may exist from time to time in the Member’s
Capital Account.

 

Section 5.2.  Allocations
for Tax Purposes.

 

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

 

(b)           In an attempt to eliminate
Book-Tax Disparities attributable to a Contributed Property or an Adjusted
Property, items of income, gain, loss, depreciation, amortization and cost
recovery deductions shall be allocated for federal income tax purposes among
the Members as follows:

 

(i)            (A)  In
the case of a Contributed Property, such items attributable thereto shall be
allocated among the Members in the manner provided under Section 704(c) of
the Code that takes into account the variation between the Agreed Value of such
property and its adjusted basis at the time of contribution; and (B) any
item of Residual Gain or Residual Loss attributable to a Contributed Property
shall be allocated among the Members in the same manner as its correlative item
of “book” gain or loss is allocated pursuant to Section 5.1.

 

(ii)           (A)  In
the case of an Adjusted Property, such items shall (1) first, be allocated
among the Members in a manner consistent with the principles of Section 704(c) of
the Code to take into account the Unrealized Gain or Unrealized Loss
attributable to such property and the allocations thereof pursuant to Section 3.3(d)(i) or
Section 3.3(d)(ii), and (2) second, in the event such property
was originally a Contributed Property, be allocated among the Members in a
manner consistent with Section 5.2(b)(i)(A); and (B) any item
of Residual Gain or Residual Loss attributable to an 

 

24

 

Adjusted
Property shall be allocated among the Members in the same manner as its
correlative item of “book” gain or loss is allocated pursuant to Section 5.1.

 

(iii)          In order to
eliminate Book-Tax Disparities, the Managing Member may cause the Company to
use any method described in Treasury Regulations Section 1.704-3.

 

(c)           For the proper
administration of the Company and for the preservation of uniformity of the
Units (or any Class or Classes thereof), the Managing Member shall (i) adopt
such conventions as it deems appropriate in determining the amount of depreciation,
amortization and cost recovery deductions; (ii) make special allocations
for federal income tax purposes of income (including, without limitation, gross
income) or deductions; (iii) without the consent of any other Person being
required, amend the provisions of this Agreement as appropriate (x) to
reflect the proposal or promulgation of Treasury Regulations under Section 704(b) or
Section 704(c) of the Code or (y) otherwise to preserve or
achieve uniformity of the Units (or any Class or Classes thereof); and (iv) adopt
and employ such methods for (A) the maintenance of capital accounts for
book and tax purposes, (B) the determination and allocation of adjustments
under Sections 704(c), 734 and 743 of the Code, (C) the determination and
allocation of taxable income, tax loss and items thereof under this Agreement
and pursuant to the Code, (D) the determination of the identities and tax
classification of Members, (E) the provision of tax information and
reports to the Members, (F) the adoption of reasonable conventions and
methods for the valuation of assets and the determination of tax basis, (G) the
allocation of asset values and tax basis, (H) the adoption and maintenance
of accounting methods, (I) the recognition of the transfer of Units and (J) tax
compliance and other tax-related requirements, including without limitation,
the use of computer software, as it determines in its sole discretion are
necessary and appropriate to execute the provisions of this Agreement and to
comply with federal, state and local tax law, and to achieve uniformity of
Units within a Class. The Managing Member may adopt such conventions, make such
allocations and make such amendments to this Agreement as provided in this Section 5.2(c) only
if such conventions, allocations or amendments would not have a material
adverse effect on the Members, the holders of any Class or Classes of
Units issued and outstanding or the Company, and if such allocations are
consistent with the principles of Section 704 of the Code.

 

(d)           For purposes of determining
the items of Company income, gain, loss, deduction, or credit allocable to any
Member with respect to any period, such items shall be determined on a daily,
monthly, or other basis, as determined by the Managing Member using any permissible
method under Code Section 706 and the Treasury Regulations promulgated
thereunder.

 

(e)           Tax credits, tax credit
recapture and any items related thereto shall be allocated to the Members
according to their interests in such items as reasonably determined by the
Managing Member taking into account the principles of Treasury Regulations
Sections 1.704-1(b)(4)(ii) and 1.704-1T(b)(4)(xi).

 

(f)            Allocations pursuant to this
Section 5.2 are solely for the purposes of federal, state and local
taxes and shall not affect, or in any way be taken into account in 

 

25

 

computing, any Member’s Capital Account or
share of Income, Loss, distributions or other Company items pursuant to any
provision of this Agreement.

 

Section 5.3.  Members’ Tax
Reporting.  The Members acknowledge
and are aware of the income tax consequences of the allocations made pursuant
to this ARTICLE V and, except as may otherwise be required by applicable
law or regulatory requirements, hereby agree to be bound by the provisions of
this ARTICLE V in reporting their shares of Company income, gain, loss,
deduction and credit for federal, state and local income tax purposes.

 

Section 5.4.  Certain Costs
and Expenses.  The Company shall (i) pay,
or cause to be paid, all costs, fees, operating expenses and other expenses of
the Company (including the costs, fees and expenses of attorneys, accountants
or other professionals and the compensation of all personnel providing services
to the Company) incurred in pursuing and conducting, or otherwise related to,
the activities of the Company, and (ii) in the sole discretion of the
Managing Member, bear and/or reimburse the Managing Member for any costs, fees
or expenses incurred by it in connection with serving as the Managing
Member.  To the extent that the Managing
Member determines in its sole discretion that such expenses are related to the
business and affairs of the Managing Member that are conducted through the
Company and/or its subsidiaries (including expenses that relate to the business
and affairs of the Company and/or its subsidiaries and that also relate to
other activities of the Managing Member), the Managing Member may cause the
Company to pay or bear all expenses of the Managing Member, including, without
suggesting any limitation of any kind, costs of securities offerings not borne
directly by Members, board of directors compensation and meeting costs, cost of
periodic reports to its stockholders, litigation costs and damages arising from
litigation, accounting and legal costs and franchise taxes, provided that the
Company shall not pay or bear any income tax obligations of the Managing
Member.

 

ARTICLE VI

MANAGEMENT

 

Section 6.1.  Managing
Member; Delegation of Authority and Duties.

 

(a)           Authority of Managing Member.  The business, property and affairs of the
Company shall be managed under the sole, absolute and exclusive direction of
the Managing Member, which may from time to time delegate authority to Officers
or to others to act on behalf of the Company. 
Without limiting the foregoing provisions of this Section 6.1(a),
the Managing Member shall have the sole power to manage or cause the management
of the Company, including, without limitation, the power and authority to
effectuate the sale, lease, transfer, exchange or other disposition of any, all
or substantially all of the assets of the Company (including, but not limited
to, the exercise or grant of any conversion, option, privilege or subscription
right or any other right available in connection with any assets at any time
held by the Company) or the merger, consolidation, reorganization or other
combination of the Company with or into another entity.

 

(b)           Other Members.  No Member who is not also a Managing Member,
in his or her or its capacity as such, shall participate in or have any control
over the business of the Company. Except as expressly provided herein, the
Units, other Equity Securities in the 

 

26

 

Company, or the fact of a Member’s admission
as a member of the Company do not confer any rights upon the Members to
participate in the management of the affairs of the Company.  Except as expressly provided herein, no
Member who is not also a Managing Member shall have any right to vote on any
matter involving the Company, including with respect to any merger,
consolidation, combination or conversion of the Company, or any other matter
that a Member might otherwise have the ability to vote or consent with respect
to under the Act, at law, in equity or otherwise.  The conduct, control and management of the
Company shall be vested exclusively in the Managing Member. In all matters
relating to or arising out of the conduct of the operation of the Company, the
decision of the Managing Member shall be the decision of the Company. Except as
required law, or expressly provided in Section 6.1(e) or by
separate agreement with the Company, no Member who is not also a Managing
Member (and acting in such capacity) shall take any part in the management or
control of the operation or business of the Company in its capacity as a
Member, nor shall any Member who is not also a Managing Member (and acting in
such capacity) have any right, authority or power to act for or on behalf of or
bind the Company in his or her or its capacity as a Member in any respect or
assume any obligation or responsibility of the Company or of any other Member.

 

(c)           Delegation by Managing
Member.  The Company may employ one or
more Members from time to time, and such Members, in their capacity as
employees or agents of the Company (and not, for clarity, in their capacity as
Members of the Company), may take part in the control and management of the
business of the Company to the extent such authority and power to act for or on
behalf of the Company has been delegated to them by the Managing Member.  To the fullest extent permitted by law, the
Managing Member shall have the power and authority to delegate to one or more
other Persons the Managing Member’s rights and powers to manage and control the
business and affairs of the Company, including to delegate to agents and
employees of a Member or the Company (including Officers), and to delegate by a
management agreement or another agreement with, or otherwise to, other Persons.  The Managing Member may authorize any Person
(including any Member or Officer) to enter into and perform any document on
behalf of the Company.

 

Section 6.2.  Officers.

 

(a)           Designation and Appointment.  The Managing Member may, from time to time,
employ and retain Persons as may be necessary or appropriate for the conduct of
the Company’s business, including employees, agents and other Persons (any of
whom may be a Member) who may be designated as Officers of the Company, with
such titles as and to the extent authorized by the Managing Member.  Any number of offices may be held by the same
Person.  In its discretion, the Managing
Member may choose not to fill any office for any period as it may deem
advisable.  Officers need not be
residents of the State of Delaware or Members. 
Any Officers so designated shall have such authority and perform such
duties as the Managing Member may from time to time delegate to them.  The Managing Member may assign titles to
particular Officers.  Each Officer shall
hold office until his successor shall be duly designated and shall qualify or
until his death or until he shall resign or shall have been removed in the
manner hereinafter provided.  The
salaries or other compensation, if any, of the Officers of the Company shall be
fixed from time to time by the Managing Member. 
Designation of an Officer shall not of itself create any employment or,
except as provided in Section 6.4, contractual rights.

 

27

 

(b)           Resignation and Removal.  Any Officer 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 is
specified, at the time of its receipt by the Managing Member.  The acceptance of a resignation shall not be
necessary to make it effective, unless expressly so provided in the
resignation.  All employees, agents and
Officers shall be subject to the supervision and direction of the Managing
Member and may be removed, with or without cause, from such office by the
Managing Member and the authority, duties or responsibilities of any employee,
agent or Officer of the Company may be suspended by or altered the Managing
Member from time to time, in each case in the sole discretion of the Managing
Member.

 

(c)           Duties of Officers.  The Officers, in the performance of their
duties as such, shall owe to the Company duties of loyalty and due care of the
type owed by officers of a Delaware corporation pursuant to the laws of the
state of Delaware.

 

Section 6.3.  Liability of
Members.

 

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

 

(b)           Return of Distributions.  In accordance with the Act and the laws of
the State of Delaware, a Member may, under certain circumstances, be required
to return amounts previously distributed to such Member.  It is the intent of the Members that no
distribution to any Member pursuant to ARTICLE IV shall be deemed a
return of money or other property paid or distributed in violation of the
Act.  The payment of any such money or
distribution of any such property to a Member shall be deemed to be a
compromise within the meaning of Section 18-502(b) of the Act, and,
to the fullest extent permitted by law, any Member receiving any such money or
property shall not be required to return any such money or property to the
Company or any other Person.  However, if
any court of competent jurisdiction holds that, notwithstanding the provisions
of this Agreement, any Member is obligated to make any such payment, such
obligation shall be the obligation of such Member and not of any other Member.

 

(c)           No Duties.
Notwithstanding any other provision of this Agreement or any duty otherwise
existing at law, in equity or otherwise, the parties hereby agree that the
Members (including without limitation, the Managing Member), shall, to the
maximum extent permitted by law, including Section 18-1101(c) of the
Act, owe no duties (including fiduciary duties) to the Company, the other
Members or any other Person who is a party to or otherwise bound by this
Agreement; provided, however, that nothing contained in this Section 6.3(c) shall
eliminate the implied contractual covenant of good faith and fair dealing.  To the extent that, at law or in equity, any
Member (including without limitation, the Managing Member) has duties
(including fiduciary duties) and liabilities relating thereto to the Company,
to another Member or to another Person who is a party to or otherwise bound by
this Agreement, the Members (including without 

 

28

 

limitation, the Managing Member) acting under
this Agreement will not be liable to the Company,  to any such other Member or to any such other
Person who is a party to or otherwise bound by this Agreement, for their good
faith reliance on the provisions of this Agreement.  The provisions of this Agreement, to the
extent that they restrict or eliminate the duties and liabilities relating
thereto of any Member (including without limitation, the Managing Member)
otherwise existing at law, in equity or otherwise, are agreed by the parties
hereto to replace to that extent such other duties and liabilities of the
Members (including without limitation, the Managing Member) relating
thereto.  The Managing Member may consult
with legal counsel, accountants and financial or other advisors and any act or
omission suffered or taken by the Managing Member on behalf of the Company or
in furtherance of the interests of the Company in good faith in reliance upon
and in accordance with the advice of such counsel, accountants or financial or
other advisors will be full justification for any such act or omission, and the
Managing Member will be fully protected in so acting or omitting to act so long
as such counsel or accountants or financial or other advisors were selected
with reasonable care.  Notwithstanding
any other provision of this Agreement or otherwise applicable provision of law
or equity, whenever in this Agreement the Managing Member is permitted or
required to make a decision (i) in its “sole discretion” or “discretion”
or under a grant of similar authority or latitude, the Managing Member shall be
entitled to consider only such interests and factors as it desires, including
its own interests, and shall, to the fullest extent permitted by applicable
law, have no duty or obligation to give any consideration to any interest of or
factors affecting the Company or the other Members, or (ii) in its “good
faith” or under another expressed standard, the Managing Member shall act under
such express standard and shall not be subject to any other or different
standards.

 

Section 6.4.  Indemnification
by the Company.  Subject to the
limitations and conditions provided in this Section 6.4, 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 or arbitrative (each, 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, she or it, or a
Person of which he, she or it is the legal representative, is or was a Member
or an Officer (each, an “Indemnified Person”), in each case, shall be
indemnified by the Company to the fullest extent permitted by applicable law,
as the same exists or may hereafter be amended (but, in the case of any such
amendment, only to the extent that such amendment permits the Company to provide
broader indemnification rights than such law permitted the Company to provide
prior to such amendment) against all judgments, penalties (including excise and
similar taxes and punitive damages), fines, settlements and reasonable expenses
(including reasonable attorneys’ fees and expenses) actually incurred by such
Indemnified Person in connection with such Proceeding, appeal, inquiry or
investigation, if such Indemnified Person acted in Good Faith.  Reasonable expenses incurred by an
Indemnified Person who was, is or is threatened to be made a named defendant or
respondent in a Proceeding shall be paid by the Company in advance of the final
disposition of the Proceeding upon receipt of an undertaking by or on behalf of
such Person to repay such amount if it shall ultimately be determined that he,
she or it is not entitled to be indemnified by the Company.  Indemnification under this Section 6.4
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 Section 6.4
shall be deemed contract rights, and no amendment, modification or repeal of
this Section 6.4 shall have the effect of limiting or denying any
such rights with respect to actions taken or 

 

29

 

Proceedings,
appeals, inquiries or investigations arising prior to any amendment,
modification or repeal.  It is expressly
acknowledged that the indemnification provided in this Section 6.4
could involve indemnification for negligence or under theories of strict
liability. Notwithstanding the foregoing, no Indemnified Person shall be
entitled to any indemnity or advancement of expenses in connection with any
Proceeding brought (i) by such Indemnified Person against the Company
(other than to enforce the rights of such Indemnified Person pursuant to this Section 6.4),
any Member or any Officer, or (ii) by or in the right of the Company,
without the prior written consent of the Managing Member.

 

Section 6.5.  Investment
Representations of Members.  Each
Member hereby represents, warrants and acknowledges to the Company that: (a) such
Member has such knowledge and experience in financial and business matters and
is capable of evaluating the merits and risks of an investment in the Company
and is making an informed investment decision with respect thereto; (b) such
Member is acquiring interests in the Company for investment only and not with a
view to, or for resale in connection with, any distribution to the public or
public offering thereof; and (c) the execution, delivery and performance
of this Agreement have been duly authorized by such Member.

 

ARTICLE VII

WITHDRAWAL; DISSOLUTION; TRANSFER OF MEMBERSHIP INTERESTS;

ADMISSION OF NEW MEMBERS

 

Section 7.1.  Member
Withdrawal.  No Member shall have the
power or right to withdraw or otherwise resign or be expelled from the Company
prior to the dissolution and winding up of the Company except pursuant to a
Transfer permitted under this Agreement.

 

Section 7.2.  Continuation
of Vesting.  Notwithstanding anything
in this Agreement to the contrary: (i) the Class A Units held by any
Member as a result of the conversion of Class B Units (as defined in the
Second Amended Agreement), Class E Units (as defined in the Second Amended
Agreement) or Class W Units (as defined in the Second Amended Agreement)
which as of the date hereof are subject to any vesting, forfeiture, repurchase
or similar provisions pursuant to the Second Amended Agreement or in any
applicable management unit subscription agreement or other agreement pursuant
to which such Unvested Units were issued (in each case, “Unvested Units”)
shall continue to be subject to such vesting, forfeiture, repurchase or similar
provisions; and (ii) no Member may Transfer any Unvested Units, provided
that a Member may Transfer Unvested Units pursuant to and in accordance with
the Exchange Agreement if the Member acknowledges and agrees in writing, in a
form reasonably satisfactory to the Managing Member, that any securities received
in exchange therefor shall continue to be subject to the vesting, forfeiture,
repurchase or similar provisions to which such Unvested Units are then
subject.  A Unit shall cease to be an
Unvested Unit at such time as such Unit ceases to be subject to such vesting,
forfeiture, repurchase or similar provisions.

 

Section 7.3.  Dissolution.

 

(a)           Events.  The Company shall be dissolved and its
affairs shall be wound up on the first to occur of (i) the determination
of the Managing Member, (ii) the entry of a decree 

 

30

 

of judicial dissolution of the Company under Section 18-802
of the Act or (iii) the termination of the legal existence of the last
remaining Member or the occurrence of any other event which terminates the
continued membership of the last remaining Member in the Company unless the
Company is continued without dissolution in a manner permitted by the Act.  In the event of a dissolution pursuant to
clause (i) of the immediately preceding sentence, the relative economic
rights of each Class of Units immediately prior to such dissolution shall
be preserved to the greatest extent practicable with respect to distributions
made to Members pursuant to Section 7.3(c) below in connection
with the winding up of the Company, taking into consideration tax and other
legal constraints that may adversely affect one or more parties hereto and
subject to compliance with applicable laws and regulations, unless, with
respect to any Class of Units, holders of not less than 90% of the Units
of such Class consent in writing to a treatment other than as described
above.

 

(b)           Actions Upon Dissolution.  When the Company is dissolved, the business
and property of the Company shall be wound up and liquidated by the Managing
Member or, in the event of the unavailability of the Managing Member or if the
Managing Member shall so determine, such Member or other liquidating trustee as
shall be named by the Managing Member.

 

(c)           Priority.  A reasonable time shall be allowed for the
orderly winding up of the business and affairs of the Company and the
liquidation of its assets pursuant to Section 7.3 to minimize any
losses otherwise attendant upon such winding up.  Upon dissolution of the Company, the assets
of the Company shall be applied in the following manner and order of priority: (i) to
creditors, including Members who are creditors, to the extent otherwise
permitted by law,  in satisfaction
of liabilities of the Company (including all contingent, conditional  or unmatured claims), whether by payment or
the making of reasonable provision for payment thereof; and (ii) the
balance shall be distributed to the Members in accordance with their respective
Units and pro rata in respect of each Class of Units.

 

(d)           Cancellation of Certificate.  The Company shall terminate when (i) all
of the assets of the Company, after payment of or due provision for all debts
liabilities and obligations of the Company, shall have been distributed to the
Members in the manner provided for in this Agreement and (ii) the
Certificate shall have been canceled in the manner required by the Act.

 

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

 

(f)            Hart Scott Rodino.  Notwithstanding any other provision in this
Agreement, in the event the Hart Scott Rodino Antitrust Improvements Act of
1976, as amended (the “HSR Act”), is applicable to any Member by reason
of the fact that any assets of the Company will be distributed to such Member
in connection with the dissolution of the Company, the distribution of any
assets of the Company shall not be consummated until such time as the
applicable waiting periods (and extensions thereof) under the HSR Act have
expired or otherwise been terminated with respect to each such Member.

 

31

 

Section 7.4.  Transfer by
Members.  No Member may Transfer or
Pledge all or any portion of its Units or other interests or rights in the
Company except with the written consent of the Managing Member in its sole
discretion, provided, however, that, subject to the provisions of Section 7.5(c),
without the consent of the Managing Member, a Member may, at any time, Transfer
any of such Member’s Units pursuant to the Exchange Agreement.  In addition, to the extent that the Managing
Member determines in good faith that a proposed Transfer would not violate Section 7.5(c) below,
then the Managing Member will not unreasonably withhold its consent to a
Transfer (i) in the case of any Member who is a natural Person, (A) upon
the death of such Member pursuant to applicable laws of descent and
distribution or (B) to or among such Person’s spouse and descendants
(whether natural or adopted) and any trust, partnership, limited liability
company or similar vehicle established solely for the benefit of (or the sole
members or partners of which are) such Person, such Person’s spouse and/or
descendants, (ii) to and among wholly owned Subsidiaries of any Member,
provided, however, that if any such wholly owned Subsidiary will subsequently
cease to be wholly owned by such Member, the Units so Transferred must first be
Transferred back to the original Member or another permitted Transferee of such
original Member or (iii) by any Member who holds at least 10% of the Class A
Units and who intends, in connection with such proposed Transfer, to Transfer
all or substantially all of the Class A Units then held by such Member to
any Person or group of Persons acting together that would constitute a “group”
for purposes of Section 13(d) of the Securities and Exchange Act of
1934 or any successor provisions thereto. For the avoidance of doubt, it shall
not be unreasonable for the Managing Member to impose reasonable restrictions
on the number of Persons to whom a Member may make Transfers pursuant to
clauses (i) and (ii) of the preceding sentence, which restrictions
need not be uniform among holders of interests in the Company.  Any purported Transfer or Pledge of all or a
portion of a Member’s Units or other interests in the Company not complying
with this Section 7.4 shall be void and shall not create any
obligation on the part of the Company or the other Members to recognize that
Transfer or Pledge or to deal with the Person to which the Transfer or Pledge
purportedly was made.

 

Section 7.5.  Admission or
Substitution of New Members.

 

(a)           Admission.  Without the consent of any other Person, the
Managing Member shall have the right to admit as a Substituted Member or an
Additional Member, any Person who acquires an interest in the Company, or any
part thereof, from a Member or from the Company.  Concurrently with the admission of a Substituted
Member or an Additional Member, the Managing Member shall forthwith (i) amend
the Schedule of Members to reflect the name and address of such Substituted
Member or Additional Member and to eliminate or modify, as applicable, the name
and address of the Transferring Member with regard to the Transferred Units and
(ii) cause any necessary papers to be filed and recorded and notice to be
given wherever and to the extent required showing the substitution of a
Transferee as a Substituted Member in place of the Transferring Member, or the
admission of an Additional Member, in each case, at the expense, including
payment of any professional and filing fees incurred, of such Substituted
Member or Additional Member; provided that such expenses shall not be payable
with respect to a Substituted Member or Additional Member that is or is to
become an employee of the Company or any of its Subsidiaries, where the
issuance or Transfer of an interest in the Company to such Person is in
connection with their provision of services to the Company or any of its
Subsidiaries.

 

32

 

(b)           Conditions and Limitations.  The admission of any Person as a Substituted
Member or an Additional Member shall be conditioned upon (i) such Person’s
written acceptance and adoption of all the terms and provisions of this
Agreement, either by (A) execution and delivery of a counterpart signature
page to this Agreement countersigned by the Managing Member on behalf of
the Company or (B) any other writing evidencing the intent of such Person
to become a Substituted Member or an Additional Member and such writing is
accepted by the Managing Member on behalf of the Company.

 

(c)           Prohibited Transfers.  Notwithstanding any contrary provision in
this Agreement, in no event may any Transfer of a Unit or other interest in the
Company be made by any Member or Assignee if:

 

(i)            such Transfer is
made to any Person who lacks the legal right, power or capacity to own such
Unit or other interest in the Company;

 

(ii)           such Transfer would
pose a material risk that the Company would be a “publicly traded partnership”
as defined in Section 7704 of the Code;

 

(iii)          such Transfer would
require the registration of such transferred Unit or other interest in the
Company or of any Class of Unit or other interest in the Company pursuant
to any applicable United States federal or state securities laws (including,
without limitation, the Securities Act or the Exchange Act) or other non-U.S.
securities laws (including Canadian provincial or territorial securities laws)
or would constitute a non-exempt distribution pursuant to applicable provincial
or state securities laws;

 

(iv)          such Transfer would
cause any portion of the assets of the Company to become “plan assets” of any “benefit
plan investor” within the meaning of regulations issued by the U.S. Department
of Labor at Section 2510.3-101 of Part 2510 of Chapter XXV, Title 29
of the Code of Federal Regulations as modified by Section 3(42) of the
Employee Retirement Income Security Act of 1974, as amended from time to time;
or

 

(v)           to the extent
requested by the Managing Member, the Company does not receive such legal
and/or tax opinions and written instruments (including, without limitation,
copies of any instruments of Transfer and such Assignee’s consent to be bound
by this Agreement as an Assignee) that are in a form satisfactory to the
Managing Member, as determined in the Managing Member’s sole discretion.

 

In addition, notwithstanding any contrary
provision in this Agreement, to the extent the Managing Member shall determine
that interests in the Company do not meet the requirements of Treasury
Regulation section 1.7704-1(h), the Managing Member may impose such
restrictions on the Transfer of Units or other interests in the Company as the
Managing Member may determine to be necessary or advisable so that the Company
is not treated as a publicly traded partnership taxable as a corporation under Section 7704
of the Code.

 

Any Transfer in violation of Section 7.4
or this Section 7.5(c) shall be null and void ab initio and of no effect.

 

33

 

(d)           Effect of Transfer to Substituted Member.  Following the Transfer of any Unit or other
interest in the Company that is permitted under Sections 7.4 and 7.5,
the Transferee of such Unit or other interest in the Company shall be treated
as having made all of the Capital Contributions in respect of, and received all
of the distributions received in respect of, such Unit or other interest in the
Company, shall succeed to the Capital Account balance associated with such Unit
or other interest in the Company, shall receive allocations and distributions
under ARTICLE IV, ARTICLE V and Section 7.2 in
respect of such Unit or other interest in the Company and otherwise shall
become a Substituted Member entitled to all the rights of a Member with respect
to such Unit or other interest in the Company.

 

Section 7.6.  Additional
Requirements.  Notwithstanding any
contrary provision in this Agreement, for the avoidance of doubt, the Managing
Member may impose such vesting requirements, forfeiture provisions, Transfer
restrictions, minimum retained ownership requirements or other similar
provisions with respect to any interests in the Company that are outstanding as
of the date of this Agreement or are created hereafter, with the written
consent of the holder of such interests in the Company.  Such requirements, provisions and
restrictions need not be uniform among holders of interests in the Company and
may be waived or released by the Managing Member in its sole discretion with
respect to all or a portion of the interests in the Company owned by any one or
more Members or Assignees at any time and from time to time, and such actions
or omissions by the Managing Member shall not constitute the breach of this
Agreement or of any duty hereunder or otherwise existing at law, in equity or
otherwise.

 

Section 7.7.  Mandatory
Exchange.  The Managing Member may,
with the consent of those Members (other than the Managing Member) holding not
less than 75% of the Holdings Units (as such term is defined in the Exchange
Agreement) (excluding any Holdings Units held by the Managing Member) require
all Members holding Holdings Units to exchange all such units held by them
pursuant to the Exchange Agreement.

 

Section 7.8.  Bankruptcy.  Notwithstanding any other provision of this
Agreement, the Bankruptcy of a Member shall not cause such Member to cease to
be a member of the Company and upon the occurrence of such an event, the
Company shall continue without dissolution.

 

ARTICLE VIII

BOOKS AND RECORDS; FINANCIAL STATEMENTS AND OTHER INFORMATION;

TAX MATTERS

 

Section 8.1.  Books and
Records.   The Company shall keep at its principal executive
office (i) correct and complete books and records of account (which, in
the case of financial records, shall be kept in accordance with GAAP), (ii) minutes
of the proceedings of meetings of the Members, (iii) a current list of the
directors and officers of the Company and its Subsidiaries and their respective
residence addresses, and (iv) a record containing the names and addresses
of all Members, the total number of Units held by each Member, and the dates
when they respectively became the owners of record thereof.  Any of the foregoing books, minutes or
records may be in written form or in any other form capable of being converted
into written form within a reasonable time. Except as expressly set forth in
this Agreement, notwithstanding the 

 

34

 

rights set forth in Section 18-305 of the Act, no Member shall
have the right to obtain information from the Company.

 

Section 8.2.  Information.

 

(a)           The Members shall be supplied with all other Company
information necessary to enable each Member to prepare its federal, state, and
local income tax returns.

 

(b)           All determinations, valuations and other matters of
judgment required to be made for ordinary course accounting purposes under this
Agreement shall be made by the Managing Member and shall be conclusive and
binding on all Members, their Successors in Interest and any other Person who
is a party to or otherwise bound by this Agreement, and to the fullest extent
permitted by law or as otherwise provided in this Agreement, no such Person
shall have the right to an accounting or an appraisal of the assets of the
Company or any successor thereto.

 

Section 8.3.  Fiscal Year.  The Fiscal Year of the Company shall end on
or as close to the last Friday of June of each calendar year unless
otherwise determined by the Managing Member in its sole discretion in
accordance with Section 706 of the Code.

 

Section 8.4.  Certain Tax
Matters.

 

(a)           Preparation of Returns.  The Managing Member shall cause to be
prepared all federal, state and local tax returns of the Company for each year
for which such returns are required to be filed and shall cause such returns to
be timely filed.  The Managing Member
shall determine the appropriate treatment of each item of income, gain, loss,
deduction and credit of the Company and the accounting methods and conventions
under the tax laws of the United States of America, the several states and
other relevant jurisdictions as to the treatment of any such item or any other
method or procedure related to the preparation of such tax returns.  Except as specifically provided otherwise in
this Agreement, the Managing Member may cause the Company to make or refrain
from making any and all elections permitted by such tax laws.  As promptly as practicable after the end of
each Fiscal Year, the Managing Member shall cause the Company to provide to
each Member a Schedule K-1 for such Fiscal Year.  Additionally, the Managing Member shall cause
the Company to provide to each Member, to the extent commercially reasonable
and available to the Company without undue cost, any information reasonably
required by the Member to prepare, or in connection with an audit of, such
Member’s income tax returns.

 

(b)           Consistent Treatment.  Each Member agrees that it shall not, except
as otherwise required by applicable law or regulatory requirements, (i) treat,
on its individual income tax returns, any item of income, gain, loss, deduction
or credit relating to its interest in the Company in a manner inconsistent with
the treatment of such item by the Company as reflected on the Form K-1 or
other information statement furnished by the Company to such Member for use in
preparing its income tax returns or (ii) file any claim for refund
relating to any such item based on, or which would result in, such inconsistent
treatment.

 

(c)           Duties of the Tax Matters Member.  In respect of an income tax audit of any tax
return of the Company, the filing of any amended return or claim for refund in 

 

35

 

connection with any item of income, gain,
loss, deduction or credit reflected on any tax return of the Company, or any
administrative or judicial proceedings arising out of or in connection with any
such audit, amended return, claim for refund or denial of such claim, (A) the
Managing Member shall direct the Tax Matters Member to act for, and such action
shall be final and binding upon, the Company and all Members except to the
extent a Member shall properly elect to be excluded from such proceeding
pursuant to the Code, (B) all expenses incurred by the Tax Matters Member
in connection therewith (including attorneys’, accountants’ and other experts’
fees and disbursements) shall be expenses of, and payable by, the Company, (C) no
Member shall have the right to (1) participate in the audit of any Company
tax return, (2) file any amended return or claim for refund in connection
with any item of income, gain, loss, deduction or credit (other than items
which are not partnership items within the meaning of Code Section 6231(a)(4) or
which cease to be partnership items under Code Section 6231(b)) reflected
on any tax return of the Company, (3) participate in any administrative or
judicial proceedings conducted by the Company or the Tax Matters Member arising
out of or in connection with any such audit, amended return, claim for refund
or denial of such claim, or (4) appeal, challenge or otherwise protest any
adverse findings in any such audit conducted by the Company or the Tax Matters
Member or with respect to any such amended return or claim for refund filed by
the Company or the Tax Matters Member or in any such administrative or judicial
proceedings conducted by the Company or the Tax Matters Member and (D) the
Tax Matters Member shall keep the Members reasonably apprised of the status of
any such proceeding.  Notwithstanding the
previous sentence, if a petition for a readjustment to any partnership item
included in a final partnership administrative adjustment is filed with a
District Court or the Court of Claims and the IRS has elected to assess income
tax against a Member with respect to that final partnership administrative
adjustment (rather than suspending assessments until the District Court or
Court of Claims proceedings become final), such Member shall be permitted to
file a claim for refund within such period of time as to avoid application of
any statute of limitations which would otherwise prevent the Member from having
any claim based on the final outcome of that review.

 

(d)           Tax Matters Member. 
The Company and each Member hereby designate the Managing Member as the “tax
matters partner” for purposes of Code Section 6231(a)(7) (the “Tax
Matters Member”).

 

(e)           Certain Filings. 
Upon the Transfer of an interest in the Company (within the meaning of
the Code), a sale of Company assets or a liquidation of the Company, the
Members shall provide the Managing Member with information and shall make tax
filings as reasonably requested by the Managing Member and required under
applicable law.

 

(f)            Section 754 Election. The Managing Member
shall cause the Company to make and to maintain and keep in effect at all
times, in accordance with Sections 734, 743 and 754 of the Code and applicable
Treasury Regulations and comparable state law provisions, an election to adjust
basis in the event (i) any Class A Unit is Transferred in accordance
with this Agreement or the Exchange Agreement or (ii) any Company property
is distributed to any Member.

 

36

 

ARTICLE IX

MISCELLANEOUS

 

Section 9.1.  Separate
Agreements; Schedules. 
Notwithstanding any other provision of this Agreement, including Section 9.4,
or of any subscription agreement between the Company and any Member, the
Managing Member may, or may cause the Company to, without the approval of any
other Member or other Person, enter into separate agreements with individual
Members with respect to any matter, which have the effect of establishing
rights under, or altering, supplementing or amending the terms of, this
Agreement or any such subscription agreement. 
The parties hereto agree that any terms contained in any such separate
agreement shall govern with respect to such Member(s) party thereto
notwithstanding the provisions of this Agreement. The Managing Member may from
time to time execute and deliver to the Members schedules which set forth
information contained in the books and records of the Company and any other
matters deemed appropriate by the Managing Member.  Such schedules shall be for information
purposes only and shall not be deemed to be part of this Agreement for any
purpose whatsoever.

 

Section 9.2.  Governing Law.  THIS AGREEMENT IS GOVERNED BY AND SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE, EXCLUDING ANY
CONFLICT OF LAWS RULE OR PRINCIPLE THAT MIGHT REFER THE GOVERNANCE OR THE
CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF ANOTHER JURISDICTION.

 

Section 9.3.  Successors and
Assigns.  This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective Successors in Interest; provided that no Person claiming by, through
or under a Member (whether as such Member’s Successor in Interest or
otherwise), as distinct from such Member itself, shall have any rights as, or
in respect to, a Member (including the right to approve or vote on any matter
or to notice thereof).

 

Section 9.4.  Amendments
and Waivers.   This Agreement may be
amended, supplemented, waived or modified by the written consent of the
Managing Member in its sole discretion without the approval of any other Member
or other Person; provided that except as otherwise provided herein (including,
without limitation, in Section 3.2(a)), no amendment may materially and
adversely affect the rights of a holder of Units, as such, other than on a pro
rata basis with other holders of Units of the same Class without the
consent of such holder (or, if there is more than one such holder that is so
affected, without the consent of a majority of such affected holders in
accordance with their holdings of Units), provided further, however, that
notwithstanding the foregoing, the Managing Member may, without the written
consent of any other Member or any other Person, amend, supplement, waive or
modify any provision of this Agreement and execute, swear to, acknowledge,
deliver, file and record whatever documents may be required in connection
therewith, to reflect: (1) any amendment, supplement, waiver or
modification that the Managing Member determines to be necessary or appropriate
in connection with the creation, authorization or issuance of any Class of
Units or other Equity Securities in the Company or other Company securities in
accordance with this Agreement; (2) the admission, substitution,
withdrawal or removal of Members in accordance with this Agreement; (3) a
change in the name of the Company, the location of the principal place of
business of the 

 

37

 

Company, the registered
agent of the Company or the registered office of the Company; (4) any
amendment, supplement, waiver or modification that the Managing Member
determines in its sole discretion to be necessary or appropriate to address changes
in U.S. federal income tax regulations, legislation or interpretation; or (5) a
change in the Fiscal Year or taxable year of the Company and any other changes
that the Managing Member determines to be necessary or appropriate as a result
of a change in the Fiscal Year or taxable year of the Company, including a
change in the dates on which distributions are to be made by the Company;
provided further, that the books and records of the Company shall be deemed
amended from time to time to reflect the admission of a new Member, the
withdrawal or resignation of a Member, the adjustment of the Units or other
interests in the Company resulting from any issuance, Transfer or other
disposition of Units or other interests in the Company, in each case that is made
in accordance with the provisions hereof. 
If an amendment has been approved in accordance with this agreement,
such amendment shall be adopted and effective with respect to all Members. Upon
obtaining such approvals as may be required by this Agreement, and without
further action or execution on the part of any other Member or other Person,
any amendment to this Agreement may be implemented and reflected in a writing
executed solely by the Managing Member and the other Members shall be deemed a
party to and bound by such amendment.

 

The Managing Member may, in its sole
discretion, unilaterally amend this Agreement on or before the effective date
of the final regulations to provide for (i) the election of a safe harbor
under Proposed Treasury Regulation Section 1.83-3(l) (or any similar
provision) under which the fair market value of a partnership interest (or
interest in an entity treated as a partnership for U.S. federal income tax
purposes) that is transferred is treated as being equal to the liquidation
value of that interest, (ii) an agreement by the Company and each of its
Members to comply with all of the requirements set forth in such regulations
and Notice 2005-43 (and any other guidance provided by the Internal Revenue
Service with respect to such election) with respect to all partnership
interests (or interest in an entity treated as a partnership for U.S. federal
income tax purposes) transferred in connection with the performance of services
while the election remains effective, (iii) the allocation of items of
income, gains, deductions and losses required by the final regulations similar
to Proposed Treasury Regulation Section 1.704-1(b)(4)(xii)(b) and
(c), and (iv) any other related amendments.

 

Notwithstanding the foregoing, in addition to
any other consent that may be required, the consent of each of Vestar Capital
Partners IV, L.P. and Edward L. Donnelly, Jr. shall also be required for
so long as such holder of Class A Units continues, together with its
Affiliates, to hold a number of Class A Units that is equal to or greater
than 3% of the number of Class A Units outstanding immediately following
the closing of the IPO and the related purchase of Class A Units by the
Managing Member with the proceeds therefrom (such number to be adjusted for any
subdivision or combination of the Holdings Units effected after the closing of
the IPO) for any amendment of this Agreement (or the rights of the Class A
Units in connection with the authorization or issuance of any other Units or
Equity Securities of the Company) that (i) reduces the right of such
holder of Class A Units and/or such Affiliates to receive Tax
Distributions other than on a pro rata basis with a reduction in taxable income
allocable to such holder and other holders of Units of the same Class, (ii) precludes
or limits the rights of such holder of Class A Units and/or such
Affiliates to exercise their rights under the Exchange Agreement, (iii) requires
such holder of Class A Units and/or such Affiliates to make a Capital
Contribution (including as a condition to maintaining any rights necessary to
permit such holders 

 

38

 

to exercise their rights
under the Exchange Agreement), (iv) materially increases the obligations
of such holder of Class A Units and/or such Affiliates under this
Agreement or (v) permits the appointment of a substitute Managing Member
other than as expressly provided pursuant to the definition of “Managing Member”.

 

No failure or delay by any party in
exercising any right, power or privilege hereunder (other than a failure or
delay beyond a period of time specified herein) shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies herein provided shall be cumulative and not
exclusive of any rights or remedies provided by law.

 

Section 9.5.  Notices.  Whenever notice is required or permitted by
this Agreement to be given, such notice shall be in writing and shall be given
to any Member at such Member’s address or facsimile number shown in the Company’s
books and records, or, if given to the Company, at the following address:

 

DynaVox
Systems Holdings LLC

2100 Wharton Street

Suite 400

Pittsburgh, PA 15203

Attention:  Chief Executive Officer

 

with
a copy (which shall not constitute notice to the Company) to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention: Joshua Ford Bonnie

Facsimile: (212) 455-2502

 

Each proper notice shall be effective upon
any of the following: (a) personal delivery to the recipient, (b) when
sent by facsimile to the recipient (with confirmation of receipt), (c) one
Business Day after being sent to the recipient by reputable overnight courier
service (charges prepaid) or (d) three Business Days after being deposited
in the mails (first class or airmail postage prepaid).

 

Section 9.6.  Counterparts.  This Agreement may be executed simultaneously
in two or more separate counterparts, any one of which need not contain the
signatures of more than one party, but each of which shall be an original and
all of which together shall constitute one and the same agreement binding on
all the parties hereto.

 

Section 9.7.  Power of
Attorney.  Each Member hereby
irrevocably appoints the Managing Member as such Member’s true and lawful
representative and attorney in fact, each acting alone, in such Member’s name,
place and stead, (a) to make, execute, sign and file all instruments,
documents and certificates which, from time to time, may be required to set
forth any amendment to this Agreement or which may be required by this
Agreement or by the laws of the United States of America, the State of Delaware
or any other state in which the Company 

 

39

 

shall determine to do
business, or any political subdivision or agency thereof and (b) to
execute, implement and continue the valid and subsisting existence of the
Company or to qualify and continue the Company as a foreign limited liability
company in all jurisdictions in which the Company may conduct business.  Such power of attorney is coupled with an
interest and shall survive and continue in full force and effect
notwithstanding the subsequent withdrawal from the Company of any Member for
any reason and shall survive and shall not be affected by the disability,
incapacity, bankruptcy or dissolution of such Member.  No power of attorney granted in this
Agreement shall revoke any previously granted power of attorney.

 

Section 9.8.  Entire
Agreement.  This Agreement, the
Exchange Agreement, the Tax Receivable Agreement and the other documents and
agreements referred to herein or entered into concurrently herewith embody the
entire agreement and understanding of the parties hereto in respect of the
subject matter contained herein; provided that such other agreements and
documents shall not be deemed to be a part of, a modification of or an
amendment to this Agreement.  There are
no restrictions, promises, representations, warranties, covenants or
undertakings, other than those expressly set forth or referred to herein.  This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject
matter, including the Original Agreement, the First Amended Agreement and the
Second Amended Agreement.

 

Section 9.9.  Remedies.  Each Member shall have all rights and
remedies set forth in this Agreement and all rights and remedies that such
Person has been granted at any time under any other agreement or contract and
all of the rights that such Person has under any applicable law.  Any Person having any rights under any
provision of this Agreement or any 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 applicable law.

 

Section 9.10.  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 shall not
affect any other provision or any other jurisdiction, but this Agreement shall
be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

 

Section 9.11.  Creditors.  None of the provisions of this Agreement
shall be for the benefit of or enforceable by any creditors of the Company or
any of its Affiliates, and no creditor who makes a loan to the Company or any
of its Affiliates may have or acquire (except pursuant to the terms of a
separate agreement executed by the Company in favor of such creditor) at any
time as a result of making the loan any direct or indirect interest in Company
profits, losses, distributions, capital or property other than as a secured
creditor.

 

Section 9.12.  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.

 

40

 

Section 9.13.  Further
Action.  The parties agree to 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.

 

Section 9.14.  Delivery by
Facsimile or Email.  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 or email with scan or facsimile
attachment, 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 re
execute 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 or email 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 or email as
a defense to the formation or enforceability of a contract, and each such party
forever waives any such defense.

 

41

 

IN WITNESS WHEREOF, the parties have executed this Third Amended and
Restated Limited Liability Company Agreement.

 

	
   

  	
  MANAGING
  MEMBER

  
	
   

  	
   

  
	
   

  	
  DYNAVOX
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OTHER
  MEMBERS

  
	
   

  	
   

  
	
   

  	
  By:
  Edward L. Donnelley, as attorney-in-fact for the Members party to the Second
  Amended and Restated Limited Liability Company Agreement of DynaVox Systems
  Holdings LLC, dated as of January 22, 2008, pursuant to Section 7.8
  thereof

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

42

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