Document:

exv10w1

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

BILLING SERVICES AND LICENSE AGREEMENT

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

 

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

CONTENTS

	 	 	 	 	 	 	 
	SECTION 1.
	 	         GRANT	 	 	1	 
	A.
	 	Subscription	 	 	1	 
	B.
	 	***	 	 	1	 
	SECTION 2.
	 	        ***	 	 	2	 
	SECTION 3.
	 	        TERM	 	 	2	 
	A.
	 	Implementation Period	 	 	2	 
	B.
	 	***	 	 	2	 
	C.
	 	***	 	 	2	 
	D.
	 	***	 	 	2	 
	SECTION 4.
	 	      INTELLECTUAL PROPERTY; LIMITATIONS ON USE	 	 	3	 
	SECTION 5.
	 	        CONFIDENTIALITY	 	 	3	 
	SECTION 6.
	 	        WARRANTIES	 	 	4	 
	SECTION 7.
	 	       IMPLEMENTATION AND TRAINING	 	 	4	 
	A.
	 	Implementation	 	 	4	 
	B.
	 	Training	 	 	4	 
	C.
	 	Additional Training	 	 	5	 
	D.
	 	Out-of-Pocket Expenses	 	 	5	 
	SECTION 8.
	 	        FEES	 	 	5	 
	A.
	 	Implementation Period ***	 	 	5	 
	B.
	 	VBOSS Solution *** Fees	 	 	6	 
	C.
	 	*** Fees	 	 	6	 
	D.
	 	Payment Terms	 	 	6	 
	E.
	 	Test Server Fees	 	 	6	 
	F.
	 	***	 	 	6	 
	G.
	 	Taxes	 	 	6	 
	SECTION 9.
	 	         MAINTENANCE AND OTHER SERVICES	 	 	6	 
	A.
	 	Technical Support Services	 	 	6	 
	B.
	 	Customizations	 	 	6	 
	C.
	 	Premise Based Services -- Cooperation	 	 	7	 
	D.
	 	***	 	 	7	 

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

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	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

	 	 	 	 	 	 	 
	E.
	 	Software Services	 	 	7	 
	F.
	 	Roaming Distribution	 	 	7	 
	G.
	 	Print and Mail Services	 	 	7	 
	H.
	 	Premise Based Services-- Hardware/Software	 	 	7	 
	I.
	 	***	 	 	8	 
	J.
	 	VBOSS Solution	 	 	8	 
	K.
	 	Implementation Services	 	 	8	 
	L.
	 	Gap Analysis	 	 	8	 
	M.
	 	***	 	 	8	 
	N.
	 	Advanced Solutions	 	 	8	 
	O.
	 	Federal Regulations and Industry Standards	 	 	8	 
	P.
	 	No Viruses, Etc	 	 	9	 
	Q.
	 	Date Compliance	 	 	9	 
	SECTION 10.
	 	        LIMITATION OF LIABILITY	 	 	9	 
	SECTION 11.
	 	       INFRINGEMENT INDEMNITY	 	 	9	 
	SECTION 12.
	 	        NO TRANSFER OR EXPORT	 	 	10	 
	SECTION 13.
	 	       ESCALATIONS AND DISPUTES	 	 	10	 
	A.
	 	Escalations	 	 	10	 
	B.
	 	Disputes	 	 	10	 
	SECTION 14.
	 	       DEFAULT AND TERMINATION	 	 	11	 
	SECTION 15.
	 	       GENERAL	 	 	11	 
	SECTION 16.
	 	        NOTICES	 	 	13	 

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

ii

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

BILLING SERVICES AND LICENSE AGREEMENT

     BILLING SERVICES AND LICENSE AGREEMENT (this “Agreement”) dated as of the Effective Date
defined below, between VeriSign, Inc., (“VeriSign”), a Delaware corporation, and Rural Cellular
Corporation, a Minnesota corporation (“Customer” or “RCC”).

     WHEREAS, Customer and VeriSign are the current parties in interest to a License Agreement
dated February 12, 1999 by and between VeriSign and RCC Holdings, permitted assigns, as such
License Agreement was previously amended (the “1999 Agreement”); and

     WHEREAS, Customer desires to obtain from VeriSign certain billing and support services and a
limited nonexclusive license to use VeriSign’s Billing & OSS system and customer relationship
management software *** (the “Licensed Software”) as described below; and

     WHEREAS, VeriSign desires to license the Licensed Software to Customer and provide such
billing and support services upon the terms and conditions set forth in this Agreement;

     NOW, THEREFORE, in consideration of the above declarations and the covenants and conditions
set forth in this Agreement, the parties agree as follows:

SECTION 1. GRANT

     In consideration of the payments described in Section 8, Exhibit A and elsewhere in this
Agreement, VeriSign agrees to provide the services described in this Agreement (the “Services”) and
also hereby grants to Customer a nontransferable *** nonexclusive license to use the Licensed
Software during the Term of this Agreement.

     A. Subscription

     As used in this Agreement, “Active Subscription” means ***

     For purposes of this definition, the following additional definitions shall apply:

     “Active” means the subscription is getting services from the network and the billing system.

     “Disconnected” means a subscription is completely de-provisioned from the network, and is not
active in the system.

     “Suspended” means the subscription might be temporarily blocked on some of the network
activities, but has not been Disconnected; ***

     B. ***

     ***

 

			
	 **Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

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	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

(i) ***

(ii) ***

(iii) ***

(iv) ***

SECTION 2. ***

     ***

SECTION 3. TERM

     The Term of this Agreement will commence on the date on which this Agreement is executed by
both parties (the “Effective Date”) and will continue for five (5) years *** (the “Term”).

     A. Implementation Period

     The implementation period (the “Implementation Period”) shall commence on the Effective Date
and expire on ***

     B. ***

     ***

     C. ***

     ***

     D. ***

     ***

(i) ***

(ii) ***

(iii) ***

(iv) ***

(v) ***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

2

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

SECTION 4. INTELLECTUAL PROPERTY; LIMITATIONS ON USE

     A. Customer acknowledges and agrees that VeriSign retains all rights and title (including any
patent, copyright, trademark and other rights) in and to the Licensed Software, including without
limitation all modifications, enhancements, configurations, upgrades, and Customizations (as
defined below) to the Licensed Software.

     B. For each of the Licensed Software utilized by Customer for which Customer does not elect to
have VeriSign provide Hardware and Software Hosting Services, the following provisions of this
Section 4.B shall apply. Customer shall use the Licensed Software only on central processing units
provided or designated by VeriSign (each a “Designated CPU”). In the event a Designated CPU fails,
Customer may use the Licensed Software on another central processing unit at the same location upon
notification to VeriSign. Customer may make one backup copy of the Licensed Software only for its
own backup purposes, which copy must display the copyright notice and information relating to the
proprietary rights as they appear in the Licensed Software. Customer shall not sublicense,
decompile, disassemble, or reverse engineer any portion of the Licensed Software. Customer shall
not make any modifications or additions to the Licensed Software or derivative works of the
Licensed Software without the prior written consent of VeriSign. Customer shall not allow the
Licensed Software to be used for time-sharing or service bureau, or any similar purpose. Except as
otherwise expressly permitted herein, Customer will not make available any copy of the Licensed
Software, in whole or in part, whether modified or not, to any other individual or entity.

     C. ***

SECTION 5. CONFIDENTIALITY

     Both parties acknowledge that they may receive Confidential Information of the other party,
including, but not limited to, the other’s proprietary or business information, the other’s trade
secrets, the Licensed Software, Customer’s subscriber information, and other vital data on the
Customer’s business. Customer and VeriSign will use efforts not less than the efforts and means
that it uses to protect its own confidential and proprietary information of a similar nature, but
in any event not less than reasonable care, to prevent the disclosure of such information to any
third party and to protect the confidentiality of Confidential Information. As used in this
Agreement, “Confidential Information” means (a) any written information received from the other
party which is marked or identified as confidential and including but not limited to, that which
relates to the number of subscribers of Customer, or the terms and provisions of this Agreement,
including, without limitation, the pricing terms set forth in or related to this Agreement; and (b)
any non-written information received from the other party which is verbally identified as
confidential and proprietary; and (c) any information which should reasonably be deemed
confidential based upon the nature of the information and the circumstances surrounding its
disclosure, whether or not identified as such in writing or otherwise. For purposes of example
only, information covered by the preceding clause (c) would include, without limitation, personally
identifiable information of Customer’s subscribers, customer proprietary network information or
CPNI (as defined by FCC rules and regulations) of Customer’s subscribers, Customer’s business and
operation roadmaps and strategies and Customer’s billing system

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

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	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

configuration. Customer and VeriSign will use Confidential Information received from the
other party only to perform their respective obligations under this Agreement. Notwithstanding the
foregoing, the provisions of this Section 5 will not prevent either Customer or VeriSign from
disclosing its own Confidential Information or from disclosing Confidential Information of the
other party hereto which is (a) already known by the recipient party without an obligation of
confidentiality; (b) publicly known or becomes publicly known through no unauthorized act of the
recipient party; (c) rightfully received from a third party that is not subject to any legally
binding restrictions on disclosure or (d) required to be disclosed pursuant to a requirement of a
governmental agency or law or pursuant to a subpoena or other legal process; provided that the
disclosing party immediately provides the other party with notice (if permitted) of such
requirement prior to any such disclosure in order to permit such other party, at its expense, to
seek an appropriate protection order or other similar remedy. This provision shall survive the
termination or expiration of this Agreement.

SECTION 6. WARRANTIES

     A. VeriSign represents and warrants that (i) it has the corporate power and authority ***
necessary to grant this License to Customer and provide the services set forth in this Agreement;
and (ii) at the time of delivery, the Licensed Software will be free from material errors. The
warranties set forth above are inapplicable to and exclude any defect, damage or malfunction
resulting from (i) misuse, negligence or unauthorized repair by Customer or its agents or (ii)
failure by Customer to follow installation, operating or repair manuals and instructions provided
to Customer by VeriSign. Customer’s sole and exclusive remedy for warranty claims shall be
correction or re-performance of the services within forty five days, or if VeriSign is unable to
correct or re-perform, termination pursuant to Section 16 and the ability to seek recovery of
damages hereunder. THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE,
MERCHANTABILITY AND NON-INFRINGEMENT.

     B. ***

SECTION 7. IMPLEMENTATION AND TRAINING

     A. Implementation

     Following execution of this Agreement, VeriSign shall provide implementation and migration
services as set forth in Exhibit E attached hereto (the “Implementation Services”). ***

     B. Training

     VeriSign shall provide the training as described below (“Training”). As part of initial
installation, VeriSign shall provide Customer initial training in the operation and use of the
Licensed Software at the Customer’s offices or other mutually agreed upon location. VeriSign shall
provide training materials, including workbooks with multimedia CD’s (such CDs only for

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

4

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

VBOSS), and VeriSign’s training preparation shall be performed*** Training shall consist of
the following:

Orientation

Customer Care

Point of Sale

Inventory

Airtime and Roaming

System Administration

Security and Permissions

Collections

Payments and Adjustments

Interpreting Reports

     C. Additional Training

     Upon reasonable notice, any additional training (including training associated with upgrades,
customizations, and the addition of new markets) requested by Customer *** Web based training ***

     D. Out-of-Pocket Expenses

     Customer shall reimburse VeriSign for out of pocket expenses incurred by actual training
personnel, such as travel, meals and lodging incurred by actual training personnel of VeriSign in
connection with any initial, follow-up or additional training provided to Customer, provided such
expenses have been approved by Customer in advance.

     SECTION 8. FEES

     In consideration for the Licensed Software and the maintenance and other services provided by
VeriSign hereunder, Customer shall pay VeriSign the following fees:

     A. Implementation Period ***

     During the Implementation Period *** RCC shall pay *** License Fee, Implementation Fee,
Hardware/Software Fees ***

     License Fee. The License Fee shall be due and payable ***

     Implementation Fee. ***

     ***

     Hardware/Software Fee. ***

     ***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

5

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

     B. VBOSS Solution *** Fees

     ***

     C. *** Fees

     ***

     D. Payment Terms

     Payment terms shall be net thirty (30) from date of invoice for all fees and charges.
Interest may be charged by VeriSign for overdue fees and charges at the rate of one and one-half
percent (1.5%) per month or the maximum amount allowed by law, whichever is less, commencing with
the date payment was due.

     E. Test Server Fees

     ***

     F. ***

     ***

     G. Taxes

     All fees payable under this Agreement are exclusive of tax. Customer shall pay any tax,
including sales, use, value-added, goods and services, or similar taxes imposed as a result of the
provision of the Services or Licensed Software pursuant to this Agreement. Customer shall pay any
tax, including sales, use, value-added, goods and services, or similar taxes imposed on
Hardware/Software Fees, or on the sale of goods, in excess of any such taxes already paid by
VeriSign on such Hardware, Software, or goods. If Customer claims exemption from taxation, it
shall submit an exemption certificate to VeriSign. Each party shall be responsible for taxes based
on their respective property or net income, and shall be responsible for their respective franchise
taxes. Each party shall be responsible for the withholding, remittance, and reporting of payroll
taxes relating to their respective employees.

SECTION 9. MAINTENANCE AND OTHER SERVICES

     A. Technical Support Services

     The fees described in Section 8 cover telephone support ***

     B. Customizations

     The monthly fees do not cover modifications to the Licensed Software made on behalf of
Customer *** (collectively “Customizations”). *** Requests for customization services will be
managed by VeriSign’s Advance Solutions group. VeriSign shall not be responsible for

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

6

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

maintenance or support of any portion of the Licensed Software affected by unauthorized
modifications, additions, or derivative works made by the Customer. ***

     C. Premise Based Services — Cooperation

     Customer will provide VeriSign with reasonable cooperation and will afford to the
representatives of VeriSign access, during Customer’s normal business hours, to Customer’s premises
sufficient to enable VeriSign to inspect, repair, replace or remove any equipment or other assets
of VeriSign installed or otherwise present on Customer’s premises.

     D. ***

     ***

     E. Software Services

     The fees described in Section 8 cover all updates and modifications (software releases) which
VeriSign furnishes without extra charge to all licensees of the Licensed Software.

     F. Roaming Distribution

     VeriSign shall provide roaming distribution for Customer ***

     G. Print and Mail Services

     ***

     H. Premise Based Services— Hardware/Software

     *** The initial computer equipment and software recommended by VeriSign shall only include
enough memory (RAM) and disk drive space to provide online retrieval *** of call detail and *** of
account level detail inclusive of memos and work orders based upon the volumes forecasted by the
Customer as of Effective Date. This equipment shall include the Designated CPU; tape drive
devices; I/O terminal device server for remote offices; a high-speed modem for maintenance
communications; and any adjunct processors needed for communication to or from the switch for call
collection and/or service provisioning or any point-of-sale equipment. *** VeriSign shall be
responsible for arranging, at Customer’s expense (for Customer’s hardware), for the maintenance,
repair, upgrades and replacement of any of the foregoing computer equipment during the Term of this
Agreement. Customer will be responsible for the actual costs of purchasing the equipment and
services described above and all required software tools,*** Additional charges may apply for
reasonable expenses relating to staging and configuration, travel, lodging and meals. Customer
will be responsible for all applicable hardware and software maintenance costs during the Term of
this agreement. Customer will be responsible for insuring its owned equipment other than that
equipment housed at Service Bureau. All costs arising from the maintenance, repair or replacement
of any computer equipment supplied by VeriSign to Customer pursuant to this Agreement shall be the
responsibility of the Customer. ***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

7

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

     I. ***

     ***

     J. VBOSS Solution

     ***(the “VBOSS Solution”). The VBOSS Solution would include the hardware and software set
forth in Section III.B of Exhibit A.***

     K. Implementation Services

     VeriSign will provide implementation and related services (the “Implementation Services”)***
VeriSign shall, with RCC’s cooperation and involvement, be primarily responsible for monitoring and
reporting on VeriSign’s progress in implementing the Services pursuant to this Agreement. Such
monitoring and reporting shall include, without limitation, managing and maintaining all jointly
defined schedules, action lists, issues lists, and daily and weekly status reporting and meeting
facilitation. The date that such Implementation Services are complete according to the completion
criteria set forth in Exhibit E, shall be defined as the “Implementation Completion Date.”

     L. Gap Analysis

     
***
 VeriSign and RCC shall cooperate in performing a functional differences analysis (a “Gap
Analysis”) ***

     M. ***

     ***

     N. Advanced Solutions

     VeriSign’s Advanced Solutions Group provides solutions and services that are offered to
licensees of the Licensed Software for an additional charge. Customer change requests or addon
software modules or solutions to Licensed Software may be made pursuant to a mutually agreed upon
statement of work. ***

     O. Federal Regulations and Industry Standards

     The parties shall consult and cooperate with each other in order to facilitate compliance with
each party’s legal requirements. Such cooperation shall include, without limitation, a party
notifying the other party as soon as it has cause to believe that such other party is not in full
compliance with its legal requirements, and jointly developing a plan for achieving such
compliance. *** All fees and charges assessed by any third party, including without limitation,
state and local governments, that are beyond the control of VeriSign will be passed through to
Customer.

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

8

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

     P. No Viruses, Etc.

     VeriSign agrees that at the time of delivery, the Licensed Software will not contain any
Trojan-horses, anomalies, worms, viruses, self-destruct mechanisms, time bombs or the like which
are intended to interfere with Customer’s use of the Licensed Software.

     Q. Date Compliance

     VeriSign agrees that the Licensed Software will be capable of recording and maintaining all
dates in a format which will allow a date value of at least 2050 (i.e., the Licensed Software will
be the equivalent of Year 2000 compliant through 2050).

     SECTION 10. LIMITATION OF LIABILITY

     A. ***

(i) ***

(ii) ***

     B. ***

(i) ***

(ii) ***

SECTION 11. INFRINGEMENT INDEMNITY

     VeriSign shall defend, indemnify and hold harmless Customer (including its directors,
officers, employees and agents) from and against any and all claims, liabilities, damages, costs
and expenses (including, but not limited to, reasonable attorneys’ fees) arising out of any third
party claim (a) alleging that the Licensed Software, used within the scope of the license granted
herein, or the Services infringe, violate or misappropriate any copyright, trademarks, service
marks, trade dress, trade names, corporate names, proprietary logos or identifiers, any patent
granted under United States law, or constitutes an unlawful disclosure, or use, violation or
misappropriation of any party’s trade secrets or intellectual property or proprietary right.
VeriSign will bear the expense of such defense and pay any damages and attorneys’ fees finally
awarded by a court of competent jurisdiction which are attributable to such claim, provided that
Customer notifies VeriSign promptly in writing of the claim, allows VeriSign to fully direct the
defense or settlement of such claim, and provides reasonable cooperation. VeriSign will not be
responsible for any settlement or compromise made without its written consent. ***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

9

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

SECTION 12. NO TRANSFER OR EXPORT

     *** Customer shall not assign, sublicense, or otherwise transfer, in whole or in part, this
Agreement, the Licensed Software or any license or right or obligation hereunder, and Customer
shall not permit any such assignment, sublicense, or other transfer without VeriSign’s written
consent. Customer shall not export the Licensed Software outside of the United States without the
prior written consent of VeriSign.

SECTION 13. ESCALATIONS AND DISPUTES

     A. Escalations

     Both parties agree to use commercially reasonable efforts to comply with their respective
requirements identified in the Implementation SOS within the time specified therein. If any task
is not completed by its scheduled date, the parties agree to the following escalation schedule and
will seek timely and effective resolution.

Initial delay – 1-3 days

Customer Implementation Project Manager

VeriSign Project Manager

Extended delay – 4-7 days

Customer Billing Manager

VeriSign Site Implementations Manager

Critical delays – beyond 7 days

Customer Senior Director of MIS

VeriSign Vice President of Software Development and Architecture

     Initial resolution attempts at each level will be attempted by conference calls prior to the
implementation of higher level escalation. The parties agree to have appropriate representation
for resolution.

     Delays beyond 7 days that are not resolved at the levels above will be escalated to VeriSign
Vice President of Billing.

     B. Disputes

1. ***

***

2. ***

***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

10

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

          3. Good Faith Resolution.

     The parties to this Agreement shall use their best efforts in good faith to settle any
dispute with respect to the terms and conditions of this Agreement, or any subject matter
referred to in or governed by this Agreement, between their respective managers and/or
officers *** from the date such dispute is claimed. If settlement cannot be reached within
*** and the parties cannot agree to (a) extend such period, or (b) settle such dispute
through a mutually agreed form of alternative dispute resolution involving a disinterested
third party, then each party may pursue any available remedies at law or in equity.

SECTION 14. DEFAULT AND TERMINATION

     A. In the event that either Customer or VeriSign materially defaults in the performance of any
of its obligations hereunder, which default shall not be substantially cured within *** after
written notice is given to the defaulting party specifying the default or, with respect to any
default which cannot be reasonably cured within *** if the defaulting party fails to proceed within
*** to commence curing said default and thereafter to proceed expeditiously to substantially cure
the same, then the party not in default may, by giving written notice thereof to the defaulting
party, terminate this Agreement as of a date specified in such notice of termination, which date
shall be no earlier than the date of such notice.

     B. Upon termination of this Agreement pursuant to this Section 14 *** any and all licenses
granted hereunder shall cease and Customer shall promptly return or destroy the Licensed Software
and return to VeriSign (at Customer’s expense) any related materials, equipment or other assets
owned by VeriSign and used to provide the services hereunder. Customer shall furnish VeriSign with
a written certificate stating that the original Licensed Software and any backup copies of the
Licensed Software in the Customer’s possession have been destroyed. In addition, VeriSign will
return to Customer (at Customer’s expense) any equipment or other assets owned by Customer that are
held by VeriSign. *** The following provisions will survive any termination or expiration of this
Agreement: ***

SECTION 15. GENERAL

     A. This Agreement supersedes all prior oral or written representations or communications
between the parties and constitutes the entire understanding between the parties with respect to
the subject matter of this Agreement.

     B. Neither party may assign or delegate this Agreement or any of its licenses, rights or
duties under this Agreement, directly or indirectly, by operation of law or otherwise, without the
prior written consent of the other party,*** Upon any attempted prohibited assignment or
delegation, this Agreement will automatically terminate. Any attempted prohibited assignment or
delegation shall be null and void. Subject to the terms of this section, this Agreement will inure
to the benefit of, and will be binding upon, each Party’s successors and permitted assigns.

     C. This Agreement shall not be changed, modified or amended except by written agreement of the
parties executed by their authorized representatives.

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

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	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

     D. Neither the failure nor the delay in exercising any right, power or privilege under this
Agreement will operate as a waiver of such right, power or privilege and no single or partial
exercise of any such right, power or privilege by VeriSign will preclude any other or further
exercise of such right, power or privilege or the exercise of any other right, power or privilege
under this Agreement. No waiver by either party of any default or breach by the other party of any
provision of this Agreement will operate as or be deemed a waiver of any subsequent breach or
default. If any provisions of this Agreement are held invalid or unenforceable, the validity and
enforceability of the remaining provisions shall in no way be affected or impaired thereby.

     E. Each party hereto covenants that it will cause each of its controlled affiliates and their
respective directors, officers, employees, agents and representatives to comply with all of the
provisions of this Agreement.

     F. This Agreement may be executed in one or more counterparts, each of which shall be deemed
an original, but all of which shall be considered one and the same instrument.

     G. This Agreement will be governed by the laws of the Commonwealth of Virginia irrespective of
its choice of law principles. The Parties agree that jurisdiction and venue for any matter arising
out of or pertaining to this Agreement shall be proper only in the state and federal courts located
in Fairfax County and the Eastern District of the Commonwealth of Virginia, United States of
America.

     H. The relationship of the parties is that of a service provider and client. Nothing herein
is intended or will be construed to establish any agency, partnership or joint venture relationship
between the parties.

     I. Neither party shall issue a press release or otherwise advertise, make a public statement,
or disclose to any third party information pertaining to the relationship arising under this
Agreement, the existence or terms of this Agreement, the underlying transactions between VeriSign
and Customer, or referring to the other party in relation to this Agreement without the other
party’s prior written approval.

     J. Neither party shall be deemed in default hereunder, nor shall it hold the other party
responsible for, any cessation, interruption or delay in the performance of its obligations
hereunder (with the exception of payment obligations) due to any causes or conditions which are
beyond such party’s reasonable control and which such party is unable to overcome by the exercise
of reasonable diligence.

     K. The parties hereto are sophisticated and have had the opportunity to be represented by
lawyers throughout the negotiation of this Agreement. As a consequence, the parties agree that the
presumptions of any laws or rules relating to the interpretation of contracts against the drafter
of any particular clause should not be applied in this case and therefore waive their effects.

     L. Unless mutually agreed to by the parties in writing, each party agrees not to hire, or
solicit the employment of, the other party’s personnel, agents, contractors or consultants

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

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	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

associated with the services provided under this Agreement, during the Term and for a period
of *** thereafter.

     M. Upon request, VeriSign will provide annual SAS-70 audit reports to Customer, and provide
reasonable cooperation and follow-up relating thereto. Specifically, VeriSign will provide, at no
additional cost, reasonable assistance, reasonable information and reasonable access to VeriSign
personnel as may be required to meet Customer’s obligations under applicable laws (including those
relating to accounting, governance, telecommunications and securities law matters and specifically
including reports and information related to executable changes, tracking access to the System,
change control management). VeriSign will provide, at no additional cost, an annual high-level
schematic representing the architecture, software and technologies employed by VeriSign in
delivering the Services. The parties agree to maintain records relating to this Agreement in
accordance with their respective standard record retention policies. The parties agree to
cooperate with each other in good faith with respect to Sarbanes-Oxley, securities regulations, and
the like.

     N. ***

SECTION 16. NOTICES

     Notices under the terms of this Agreement will be in writing and will be given or made by
delivery in person, by courier service, by facsimile or by registered or certified mail (postage
prepaid, return receipt requested). Notices under Section 14 shall be effective on the date
received. Other notices will be effective on the first business day following receipt thereof.
Notices sent by registered or certified mail shall be deemed received on the date of delivery as
indicated on the return receipt; notices sent by facsimile will be deemed received on the date
transmitted. Either party may change its address and the related information for notice by written
notice given to the other party in accordance with this paragraph.

	 	 	 	 	 
	 

	 	To VeriSign:
	 	VeriSign
	 

	 	 	 	222 West Oglethorpe Ave

Savannah, GA 31401

***
	 
	 	 	 	 
	 

	 	To Customer:
	 	Rural Cellular Corporation
	 

	 	 	 	3905 Dakota Street SW

Alexandria, MN 56308-2000

***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

13

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

     Customer and VeriSign each represents that it has read this Agreement and understands and
agrees to all terms and conditions stated herein.

	 	 	 	 	 	 	 	 	 
	VERISIGN, INC.	 	RURAL CELLULAR CORPORATION	 	 
	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Name:	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	Title:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

14

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

Exhibit A

***

     I. ***

***

     II. ***

***

A. ***

***

B. ***

***

     III. ***

A. ***

***

B. ***

***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

1

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

Exhibit B

***

***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

1

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

Exhibit C

VeriSign Billing & OSS

     VeriSign Billing & OSS system (“VBOSS Solution”) is a billing and customer management product,
together with related service as described below, which allows a customer to support and bill the
wireless delivery of next generation communication commerce, and content services. VBOSS Solution
offers processing of voice and data events, integration of payment methods, ready-to-sell content,
content management, secure commerce payments, flexible component based and rules-based
architecture, web-based access, and comprehensive customer care.

***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

1

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

Proprietary and Confidential

Exhibit D

***

***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

1

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

Exhibit E

Implementation Statement of Services

For

Rural Cellular Corporation

***

1.0 Purpose

***

2.0 Project Overview

***

3.0 Assumptions

     VeriSign has developed this Statement of Services based on the following project assumptions
within these major areas:

     PROJECT

     ***

     MILESTONE DELIVERABLES

     ***

     HARDWARE

     ***

     TESTING

     ***

     MARKET BUILD AND OPERATIONS

     ***

     SWITCH INTERFACES

     ***

4.0 SOFTWARE

***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

1

 

			
	CONFIDENTIAL TREATMENT REQUESTED
	 	Exhibit 10.1 Redacted

5.0 TRAINING

***

6.0 IMPLEMENTATION SERVICES

***

7.0 IMPLEMENTATION SERVICES COMPLETION CRITERIA

***

 

	
	**Information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for Confidential Treatment.

2exv4w1

 

Exhibit 4.1

Performance Home Buyers, LLC

Amended and Restated Operating Agreement

     This Operating Agreement (“Agreement”) is made effective as of the 15th
day of May, 2005, by and between, the Common Members listed in Section 3.1 hereof, the
Class C Preferred Members listed in Section 3.3, hereof, the Class B Preferred
Members listed in Section 3.4 hereof, and the CLASS A PREFERRED Members
admitted in accordance with Section 3.5 hereof.

     WHEREAS, It has been determined to be in the best interest of the Company to issue a new class
of Membership units called Class C Preferred Units;

     NOW, THEREFORE, in consideration of the mutual promises, covenants, agreements and
undertakings set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Article I

Certain Definitions

     The following words and phrases used in this Agreement shall, unless the context clearly
indicates otherwise, have the following meaning:

     1.1 “Affiliate” means (a) any Person that directly or indirectly, through one or more
intermediaries, controls or is controlled by or is under common control with the Person specified,
(b) any Person in which such specified Person has an equity interest of ten percent (10%) or more
and (c) any officer, director, manager or partner of the Person specified.

     1.2 “Agreement” means this Operating Agreement as it may be hereafter amended from time to
time.

     1.3 “Capital Contribution” means the total amount of capital contributed to the Company by
each Member pursuant to the terms of this Agreement. Any reference to the Capital Contribution of
a Member shall include the Capital Contribution made by a predecessor holder of the interest of
such Member.

     1.4 “Cash from Operations” means the gross cash receipts of the Company other than (a) Capital
Contributions, (b) proceeds from Company borrowings and (c) Cash from Sale or Refinancing, less (i)
all cash expenses of earning such receipts, (ii) all payments on any Company indebtedness or for
capital improvements and (iii) all such reserves for working capital, liabilities and other
contingencies as the Directors may deem advisable.

     1.5 “Cash from Sale or Refinancing” means the net cash proceeds from all sales, other
dispositions and refinancings of Property, less any portion thereof used (i) to make payments on
any Company indebtedness or liability, (ii) to make any capital improvements or (iii) to establish
reserves for working capital, liabilities and other contingencies as the Directors may deem
advisable. Cash

1

 

from Sale or Refinancing shall include all principal and interest payments with
respect to any note or
other obligation received by the Company in connection with a sale and other disposition of
Property.

     1.6 “Common Member” means a Member owning one or more of the Common Units.

     1.7 “Common Unit” means one of the voting limited liability company equity units in the
Company which are subordinate to the Class C Preferred Units, Class B Preferred Units and the Class
A Preferred Units with respect to distributions of cash and Property, but which are otherwise
entitled to participate in and share on a pro rata basis in allocations of Company profits and
losses, and distributions of cash and Property.

     1.8 “Company” means Performance Home Buyers, LLC, the limited liability company organized
under Ohio law and governed by this Agreement.

     1.9 “Distributable Cash” means Cash from Operations and Cash from Sale or Refinancing.

     1.10 “Land Contracts” mean the land contracts between the Company and Tenant/Purchasers with
respect to Properties owned by the Company.

     1.11 “Majority in Interest of the Common Members” means Common Members owning in the aggregate
more than fifty percent (50%) of the Common Units. Reference in this Agreement to a Majority in
Interest of the Common Members (in the plural) shall include Common Member (in the singular) if in
the future one Common Member owns more than fifty (50%) of the Common Units.

     1.12 “Members” means and includes the Common Members, the Class C Preferred Members, Class B
Preferred Members, and the Class A Preferred Members.

     1.13 “Offer Price per Class C Preferred Unit” means One Hundred Dollars ($100.00).

     1.14 “Partnership Minimum Gain” means generally the amount of gain in the aggregate, if any,
which would be realized by the Company if it disposed of all Company property subject to
non-recourse liabilities in full satisfaction of such liabilities. Partnership Minimum Gain for
purposes of this Agreement shall be determined in compliance with Federal Income Tax Regulations
Section 1.704-1(b)(4)(iv).

     1.15 “Person” means any individual, firm, partnership, corporation, association or other legal
entity.

     1.16 “Percentage Interest” means, with respect to a Common Member, the number of Common Units
owned by the Common Member divided by the number of Common Units owned by all Common Members.

     1.17 “Class A Preferred Distribution” means the distribution payable to the Class A Preferred
Members pursuant to Section 3.5 hereof.

2

 

     1.18 “Class A Preferred Member” means a Member owning one or more of the Class A Preferred
Units.

     1.19 “Class A Preferred Unit” means one of the Preferred Class A Preferred nonvoting limited
liability company equity units in the Company which have priority over the Common Units, Class C
Preferred Units and the Class B Preferred Units with respect to distributions of cash and Property
as described in Section 3.5 hereof.

     1.20 “Property” or “Properties” means any the single-family residential real estate of the
Company now owned or hereafter acquired.

     1.21 “Class B Preferred Distributions” means the distribution payable to the Class B Preferred
Members pursuant to Section 3.4 hereof.

     1.22 “Class B Preferred Member” means a Member owning one or more of the Class B Preferred
Units.

     1.23 “Class B Preferred Principal Balance” means, with respect to each Class B Preferred Unit
owned by a Class B Preferred Member, the unredeemed balance of the amount paid to the Company by
such Class B Preferred Member (or his predecessor in interest) for the Class B Preferred Unit.

     1.24 “Class B Preferred Rate” means ninety percent (90%) per annum in 2003, and thirty-six
percent (36%) per annum thereafter.

     1.25 “Class B Preferred Unit” means one of the subordinated Class B Preferred nonvoting
limited liability company equity units in the Company which have priority over the Common Units,
and Class C Preferred Units, but are subordinate to the Class A Preferred Units, with respect to
distributions of cash and Property as described in Section 3.4 hereof.

     1.26 “Class C Preferred Distributions” means the Class C Preferred distribution payable to the
Class C Preferred Members pursuant to Section 3.3 hereof.

     1.27 “Class C Preferred Member” means a Member owning one or more of the Class C Preferred
Units.

     1.28 “Class C Preferred Principal Balance” means, with respect to each Class C Preferred Unit
owned by a Class C Preferred Member, the unredeemed balance of the amount paid to the Company by
such Class C Preferred Member (or his predecessor in interest) for the Class C Preferred Unit.

     1.29 “Class C Preferred Rate” means Five percent (5%) per annum.

     1.30 “Class C Preferred Unit” means one of the Class C Preferred nonvoting limited liability
company equity units in the Company which have priority over the Common Units, but are

3

 

subordinate
to the Class B Preferred Units, and Class A Preferred Units, with respect to distributions of cash
and Property as described in Section 3.3 hereof.

     1.31 “Tax Year” means the Company’s tax year for federal income tax purposes.

     1.32 “Tenant/Purchaser” means one of the individuals who are occupying one of the Properties
pursuant to one of the Land Contracts.

     1.33 “Units” means the Common Units, the Subordinated Class C Preferred Units, Class B
Preferred Units and the Class A Preferred Units.

     1.34 “By-Laws” means and includes the by-laws of the Company attached hereto as Exhibit “A”
and said by-laws may be amended by a Majority in Interest of the Common Members from time to time.

     1.35 “Directors” means and includes the directors appointed by a Majority in Interest of the
Common Members in accordance with Section 8.3 hereof and the By-Laws.

     1.36 “Officers” means and includes the officers appointed by the Directors in accordance with
Section 8.5 hereof and the By-Laws.

Article II

Membership, Formation and Organization

     2.1 Membership. The membership of the Company shall consist of the Common Members,
the Class C Preferred Members, the Class B Preferred Members and the Class A Preferred Members.

     2.2 Formation. One or more of the Common Members previously made, signed,
acknowledged and filed Articles of Organization as required by Chapter 1705 of the Ohio Revised
Code to form a limited liability company. The Members hereby approve and ratify the actions taken
by the Common Members in organizing the Company.

     2.3 Name of Company. The Company shall operate under the name of Performance Home
Buyers, LLC.

     2.4 Principal Place of Business and Office. The principal office of the Company shall
be at 4130 Linden Avenue, Dayton, Ohio 45432. The principal office and/or place of business may be
changed from time to time to such other place in Ohio as the Directors shall determine.

     2.5 Business and Purpose of the Company. The purpose of the Company is to acquire,
market, finance, own, sell, encumber, service, lease, operate, and maintain the Properties; and
conduct any and all activities in connection therewith.

4

 

     2.6 Term of Company. The term of the Company commenced on August 21, 2000, the
effective date of the Articles of Organization filed for the Company with the Ohio Secretary of
State. The Company shall continue in existence thereafter in perpetuity unless earlier terminated as
provided for herein.

     2.7 Agent for Service of Process. The Directors and/or one or more of the Common
Members previously appointed Jeffrey S. Senney, 2700 Kettering Tower, Dayton, Ohio 45423
(“Statutory Agent”) as the Company’s agent for service of process. The Members hereby confirm and
approve the appointment of the Statutory Agent.

     2.8 Investments in Property. The Company may make such investments in Property and
incur such indebtedness in such manner and upon such terms as the Directors shall determine.

Article III

Capital Contributions

     3.1 Contribution by Common Members. The Common Members, hereby agree that as of the
date of this Agreement, each of the Common Members owns the number of Common Units and has the
Percentage Interest set forth below opposite his name:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name of Member	 	 	 	 	 	Number of Units	 	 	Percentage	 
	Peter E. Julian
	 	 	 	 	 	 	300.00	 	 	 	30.00	%
	E. Randall Porter
	 	 	 	 	 	 	497.50	 	 	 	49.75	%
	Mark Fitzgerald
	 	 	 	 	 	 	65.00	 	 	 	6.50	%
	Wayne Hawkins
	 	 	 	 	 	 	137.50	 	 	 	13.75	%
	 
	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	1,000.00	 	 	 	100.00	%

     3.2 Admission of Additional Members. With the approval of the Directors and a
Majority in Interest of the Common Members, a Person may acquire Common Units and become a Common
Member on such terms as the Directors and a Majority in Interest of the Common Members may
determine.

     3.3 Class C Preferred Members.

     (a) Admission of Class C Preferred Members. With the approval of the Directors, a
Person may acquire Class C Preferred Units in the Company and become a Class C
Preferred  Member upon execution of a counterpart of this Agreement, execution of an Investor
Statement in the form approved by the Directors, execution of a Subscription Agreement in the form
approved by the Directors and payment to the Company of his, her or its full initial Capital
Contribution.

     (b) Initial Capital Contribution of Class C Preferred Members. The initial Capital
Contribution of each Class C Preferred  Member shall be an amount equal to the Offer Price
per Class C Preferred  Unit multiplied by the number of Class C Preferred  Units
to be acquired by such Class C Preferred . The initial capital contribution may be paid
pursuant to promissory notes in substantially the form attached in Exhibit “B”.

5

 

     (c) Summary of Rights/Preferences of Class C Preferred Units. Notwithstanding
anything to the contrary contained herein, the rights and preferences applicable to the Class C
Preferred Units shall be as set forth below in this Section 3.3(c):

          (i) Distributions. Each Class C Preferred Member shall be entitled to receive
out of the Distributable Cash of the Company, a Class C Preferred Distribution with respect
to each Class C Preferred Unit he, she or it owns, in an amount equal to the Class C
Preferred Rate multiplied by the Class C Preferred Principal Balance, and no more, payable
in cash quarterly, or at such other more frequent intervals as the Directors may from time
to time determine. Class C Preferred Distributions on the Class C Preferred Units shall
begin to accrue from the date of issuance of such Class C Preferred Units. Class C
Preferred  Distributions on all issued and outstanding Class C Preferred Units shall
accrue from day to day, whether or not earned or declared. Such Class C Preferred
Distributions shall be payable before any distributions shall be declared or paid upon or
set apart for the Common Units, but shall be subordinate to the Class A Preferred
Distributions and Class B Preferred Distributions payable to the Class A Preferred Members
and Class B Preferred Members with respect to the Class A Preferred Units and Class B
Preferred Units. The Class C Preferred Distributions shall be cumulative, so that if in
any year or years the full Class C Preferred Distribution payable to the Class C Preferred
Members with respect to the Class C Preferred Units shall not have been paid thereon or
declared and set apart therefore, the amount of the deficiency shall be fully paid or
declared and set apart for payment, but without interest, before any distribution, whether
by way of distribution, redemption or otherwise, shall be declared or paid upon, or set
apart for the Common Units.

          (ii) Liquidation. In the event of a voluntary or involuntary liquidation,
dissolution, or winding up of this Company, each of the Class C Preferred Members shall be
entitled to receive out of the assets of this Company, whether such assets are capital or
surplus of any nature, an amount equal to the Class C Preferred Principal Balance for each
Class C Preferred Unit he, she or it owns, and, in addition to such amount, a further amount
equal to the Class C Preferred Distributions unpaid and accumulated thereon as provided in
Section 3.3(c)(i) above, to the date of such Class C Preferred Distribution, whether earned
or declared or not, and no more, before any payment shall be made or any assets distributed
to the Common Members. If upon such liquidation, dissolution, or winding up, whether
voluntary or involuntary, the assets thus distributed among the Class C Preferred Members
shall be insufficient to permit the payment to the Class C Preferred Members of the full
preferential amounts to which they are entitled hereunder, then the amount available for
distribution to the Class C Preferred  Members shall be distributed ratably among
the Class C Preferred Members. A consolidation or merger of this Company with or into any
other entity or entities shall not be deemed to be a liquidation, dissolution, or winding
up, within the meaning of this Section.

          (iii) Redemption. This Company, at the option of the Directors, may redeem the
whole at any time, or from time to time may redeem any part, of the Class C Preferred Units,
by paying in cash therefor the Class C Preferred Principal Balance for each outstanding
Class C Preferred Unit to be redeemed and, in addition to such amount, an amount in cash
equal to all Class C Preferred Distributions on all Class C Preferred Units

6

 

unpaid and
accumulated, whether earned or declared or not, to and including the date fixed for
redemption, such sum being hereinafter sometimes referred to as the “Class C Redemption
Price”. In case of the redemption of a part only of the outstanding Class C Preferred
Units, this Company shall designate by lot, in such manner as the Directors may
determine, the Class C Preferred Units to be redeemed, or shall effect such redemptions
pro rata. Less than all of the Class C Preferred Units at any time outstanding may not be
redeemed until all Class C Preferred Distributions accrued and in arrears upon all Class C
Preferred Units outstanding shall have been paid for all past distribution periods, and
until full Class C Preferred Distributions for the then current distribution period on all
Class C Preferred Units then outstanding, other than the Class C Preferred Units to be
redeemed, shall have been paid or declared and the full amount thereof set apart for
payment. At least thirty (30) days’ previous notice by mail, postage prepaid, shall be
given to the holders of record of the Class C Preferred Units to be redeemed, such notice to
be addressed to each such Class C Preferred Member at his or her post office address as
shown by the records of this Company. On or after the date fixed for redemption and stated
in such notice, each holder of Class C Preferred Units called for redemption shall execute
and deliver to the Company an assignment in form satisfactory to the Directors (“Class C
Assignment”), assigning the Class C Preferred Units to the Company at the place designated
in such notice and shall thereupon be entitled to receive payment of the Class C Redemption
Price. If such notice of redemption shall have been duly given, and if on the date fixed
for redemption funds necessary for the redemption shall be available therefor, then
notwithstanding that the Class C Assignment for such Class C Preferred Units has not been
executed and delivered to the Company, the Class C Preferred Distributions with respect to
the Class C Preferred Units so called for redemption shall cease to accrue after the date
fixed for redemption and all rights with respect to the Class C Preferred Units so called
for redemption shall forthwith after such date cease, except only the right of the holders
to receive the Class C Redemption Price thereof without interest upon execution and
delivery of the Class C Assignment to the Company.

               (iv) Voting. The Class C Preferred Members have no voting rights and no right
to participate in management of the Company.

     3.4 Class B Preferred Members.

               (a) Contribution by Class B Preferred Members. The Class B Preferred Members listed
below each made an initial Capital Contribution to the Company in the amount set forth below. Each
of the Class B Preferred Members owns the number of Class B Preferred Units set forth below
opposite his name:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name of Member	 	 	 	 	 	Number of Units	 	 	Capital Contribution	 
	Robert P. Dillaplain
	 	 	 	 	 	 	100	 	 	$	200,000.00	 
	Kenneth O. Huntingdon
	 	 	 	 	 	 	100	 	 	$	200,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	200	 	 	$	400,000.00	 

               (b) Admission of Additional Members. With the approval of the Directors and a
Majority in Interest of the Common Members, a Person may acquire Class B Preferred Units and

7

 

become
a Class B Preferred Member on such terms as the Directors and a Majority in Interest of the Common
Members may determine.

          (c) Summary of Rights/Preferences of Class B Preferred Units. Notwithstanding
anything to the contrary contained herein, the rights and preferences applicable to the Class B
Preferred Units shall be as set forth below in this Section 3.4(c):

               (i) Distributions. Each Class B Preferred Member shall be entitled to receive out of
the Distributable Cash of the Company, a Class B Preferred Distribution with respect to each Class
B Preferred Unit he, she or it owns, in an amount equal to the Class B Preferred Rate multiplied by
the Class B Preferred Principal Balance, and no more, payable in cash quarterly, or at such other
more frequent intervals as the Directors may from time to time determine. Class B Preferred
Distributions on the Class B Preferred Units shall begin to accrue from the date of issuance of
such Class B Preferred Units. Class B Preferred Distributions on all issued and outstanding Class
B Preferred Units shall accrue from day to day, whether or not earned or declared. Such Class B
Preferred Distributions shall be payable before any distributions shall be declared or paid upon or
set apart for the Common Units, and Class C Preferred Units, but shall be subordinate to the Class
A Preferred Distributions payable to the Class A Preferred Members with respect to the Class A
Preferred Units. The Class B Preferred Distributions shall be cumulative, so that if in any year
or years the full Class B Preferred Distribution payable to the Class B Preferred Members with
respect to the Class B Preferred Units shall not have been paid thereon or declared and set apart
therefore, the amount of the deficiency shall be fully paid or declared and set apart for payment,
but without interest, before any distribution, whether by way of distribution, redemption or
otherwise, shall be declared or paid upon, or set apart for the Common Units or Class C Preferred
Units.

               (ii) Liquidation. In the event of a voluntary or involuntary liquidation,
dissolution, or winding up of this Company, each of the Class B Preferred Members shall be
entitled to receive out of the assets of this Company, whether such assets are capital or surplus
of any nature, an amount equal to the Class B Preferred Principal Balance for each Class B
Preferred Unit he, she or it owns, and, in addition to such amount, a further amount equal to the
Class B Preferred Distributions unpaid and accumulated thereon as provided in Section 3.4(c)(i)
above, to the date of such Class B Preferred Distribution, whether earned or declared or not, and
no more, before any payment shall be made or any assets distributed to the Common Members or Class
C Preferred Members. If upon such liquidation, dissolution, or winding up, whether voluntary or
involuntary, the assets thus distributed among the Class B Preferred Members shall be insufficient
to permit the payment to the Class B Preferred Members of the full preferential amounts to which
they are entitled hereunder, then the amount available for distribution to the Class B Preferred
Members shall be distributed ratably among the Class B Preferred Members. A consolidation or
merger of this Company with or into any other entity or entities shall not be deemed to be a
liquidation, dissolution, or winding up, within the meaning of this Section.

               (iii) Redemption. This Company, at the option of the Directors, may redeem the whole
at any time, or from time to time may redeem any part, of the Class B Preferred Units, by paying
in cash therefor the Class B Preferred Principal Balance for each outstanding Class B Preferred
Unit to be redeemed and, in addition to such amount, an amount in cash equal to all

8

 

Class B
Preferred Distributions on all Class B Preferred Units unpaid and accumulated, whether earned or
declared or not, to and including the date fixed for redemption, such sum being hereinafter
sometimes referred to as the “ Class B Redemption Price”. In case of the redemption of a part only
of the outstanding Class B Preferred Units, this Company shall designate by lot, in such manner as
the Directors may determine, the Class B Preferred Units to be redeemed, or shall effect such
redemptions pro rata. Less than all of the Class B Preferred Units at any time outstanding may not
be redeemed until all Class B Preferred Distributions accrued and in arrears upon all Class B
Preferred Units outstanding shall have been paid for all past distribution periods, and until full
Class B Preferred Distributions for the then current distribution period on all Class B Preferred
Units then outstanding, other than the Class B Preferred Units to be redeemed, shall have been paid
or declared and the full amount thereof set apart for payment. At least thirty (30) days’ previous
notice by mail, postage prepaid, shall be given to the holders of record of the Class B Preferred
Units to be redeemed, such notice to be addressed to each such Class B Preferred Member at his or
her post office address as shown by the records of this Company. On or after the date fixed for
redemption and stated in such notice, each holder of Class B Preferred Units called for redemption
shall execute and deliver to the Company an assignment in form satisfactory to the Directors (“
Class B Assignment”), assigning the Class B Preferred Units to the Company at the place designated
in such notice and shall thereupon be entitled to receive payment of the Class B Redemption Price.
If such notice of redemption shall have been duly given, and if on the date fixed for redemption
funds necessary for the redemption shall be available therefor, then notwithstanding that the Class
B Assignment for such Class B Preferred Units has not been executed and delivered to the Company,
the Class B Preferred Distributions with respect to the Class B Preferred Units so called for
redemption shall cease to accrue after the date fixed for redemption and all rights with respect to
the Class B Preferred Units so called for redemption shall forthwith after such date cease, except
only the right of the holders to receive the Class B Redemption Price thereof without interest upon
execution and delivery of the Class B Assignment to the Company.

               (iv) Maturity Date. The Class B Preferred Units shall be redeemed in full on or
before December 31, 2006.

               (v) Voting. The Class B Preferred Members have no voting rights and no right to
participate in management of the Company.

     3.5 Class A Preferred Members.

          (a) Contribution by Class A Preferred Members. The Class A Preferred Members listed
on the attached Exhibit “C” each made an initial Capital Contribution to the Company in the amount
set forth on said Exhibit. Each of the Class A Preferred Members owns the number of Class A
Preferred Units set forth opposite his, her or, its name on said Exhibit.

          (b) Admission of Additional Members. With the approval of the Directors and a
Majority in Interest of the Common Members, a Person may acquire Class A Preferred Units and become
a Class A Preferred Member on such terms as the Directors and a Majority in Interest of the Common
Members may determine.

9

 

     (c) Summary of Rights and Preferences of Class A Preferred Units. Notwithstanding anything
to the contrary contained herein, the rights and preferences applicable to the Class A Preferred
Units shall be as set forth below in this Section:

     (i) Distributions. Each Class A Preferred Member shall be entitled to receive
out of the Distributable Cash of the Company, a Class A Preferred Distribution with
respect to each Class A Preferred Unit he, she or it owns, at the rate of twenty percent
(20%) per annum of the offer price per Class A Preferred Unit, and no more, payable in cash
quarterly, or at such other more frequent intervals as the Directors may from time to time
determine. Class A Preferred Distributions on the Class A Preferred Units shall begin to
accrue from the date of issuance of such Class A Preferred Units. Class A Preferred
Distributions on all issued and outstanding Class A Preferred Units shall accrue from day to
day, whether or not earned or declared. Such Class A Preferred Distributions shall be
payable before any distributions shall be declared or paid upon or set apart for the Common
Units, Class C Preferred Units, or the Class B Preferred Units, and shall be cumulative,
so that if in any year or years the full Class A Preferred Distribution payable to the Class
A Preferred Members with respect to the Class A Preferred Units shall not have been paid
thereon or declared and set apart therefore, the amount of the deficiency shall be fully
paid or declared and set apart for payment, but without interest, before any distribution,
whether by way of distribution, redemption or otherwise, shall be declared or paid upon, or
set apart for the Common Units, Class C Preferred Units, or the Class B Preferred Units.

     (ii) Liquidation. In the event of a voluntary or involuntary liquidation,
dissolution, or winding up of this Company, each of the Class A Preferred Members shall be
entitled to receive out of the assets of this Company, whether such assets are capital or
surplus of any nature, an amount equal to the offer price per Class A Preferred Unit for
each Class A Preferred Unit he, she or it owns, and, in addition to such amount, a further
amount equal to the Class A Preferred Distributions unpaid and accumulated thereon as
provided in Section 3.5(c)(i) above, to the date of such Class A Preferred Distribution,
whether earned or declared or not, and no more, before any payment shall be made or any
assets distributed to the Common Members, Class C Preferred Units, or the Class B Preferred
Members. If upon such liquidation, dissolution, or winding up, whether voluntary or
involuntary, the assets thus distributed among the Class A Preferred Members shall be
insufficient to permit the payment to the Class A Preferred Members of the full preferential
amounts to which they are entitled hereunder, then the amount available for distribution
among the Class A Preferred Members shall be distributed ratably among the Class A Preferred
Members. A consolidation or merger of this Company with or into any other entity or
entities shall not be deemed to be a liquidation, dissolution, or winding up, within the
meaning of this Section.

     (iii) Redemption. This Company, at the option of the Directors, may redeem the
whole at any time, or from time to time may redeem any part, of the Class A Preferred Units,
by paying in cash therefor the offer price per Class A Preferred Unit for each outstanding
Class A Preferred Unit to be redeemed and, in addition to such amount, an amount in cash
equal to all Class A Preferred Distributions on all Class A Preferred Units unpaid and
accumulated, whether earned or declared or not, to and including the date fixed for
redemption, such sum being hereinafter sometimes referred to as the “Redemption Price”. In

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case of the redemption of a part only of the outstanding Class A Preferred Units, this
Company shall designate by lot, in such manner as the Directors may determine, the Class A
Preferred Units to be redeemed, or shall effect such redemptions pro rata. Less than all of
the Class A Preferred Units at any time outstanding may not be redeemed until all Class A
Preferred Distributions accrued and in arrears upon all Class A Preferred Units outstanding
shall have been paid for all past distribution periods, and until full Class A Preferred
Distributions for the then current distribution period on all Class A Preferred Units
then outstanding, other than the Class A Preferred Units to be redeemed, shall have been
paid or declared and the full amount thereof set apart for payment. At least thirty (30)
days’ previous notice by mail, postage prepaid, shall be given to the holders of record of
the Class A Preferred Units to be redeemed, such notice to be addressed to each such Class A
Preferred Member at his or her post office address as shown by the records of this Company.
On or after the date fixed for redemption and stated in such notice, each holder of Class A
Preferred Units called for redemption shall execute and deliver to the Company an assignment
in form satisfactory to the Directors (“Assignment”), assigning the Class A Preferred Units
to the Company at the place designated in such notice and shall thereupon be entitled to
receive payment of the Redemption Price. If such notice of redemption shall have been duly
given, and if on the date fixed for redemption funds necessary for the redemption shall be
available therefor, then notwithstanding that the Assignment for such Class A Preferred
Units has not been executed and delivered to the Company, the Class A Preferred
Distributions with respect to the Class A Preferred Units so called for redemption shall
cease to accrue after the date fixed for redemption and all rights with respect to the Class
A Preferred Units so called for redemption shall forthwith after such date cease, except
only the right of the holders to receive the Redemption Price thereof without interest upon
execution and delivery of the Assignment to the Company.

     (iv) Voting. The Class A Preferred Members have no voting rights and no right
to participate in management of the Company.

     3.6 Additional Contributions or Loans. Other than as provided in Section 3.1, 3.2,
3.3, 3.4 or 3.5 hereof, no Member shall be obligated to make any contributions or loans to the
Company, to act as a guarantor, endorser or maker of any indebtedness of the Company or to permit
such Member’s personal assets to be used as collateral for any indebtedness of the Company, unless
such Member shall agree thereto in writing.

     3.7 No Return of Capital Contribution. No Member shall be entitled to demand or
receive the return of his, her or its Capital Contribution.

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Article IV

Capital Accounts

     4.1 Determination of Capital Accounts.

          (a) A “Capital Account” shall be established for each Member and shall be maintained as
necessary to comply with the maintenance of capital account provisions in Income Tax

Regulations
Section 1.704-1(b) (2) (iv). For example, each Member’s Capital Account shall be increased by the
amount of such Member’s:

     (1) contributions of money to the Company (including, without limitation,
liabilities of the Company directly assumed by such Member);

     (2) property contributions to the Company to the extent of the fair market
value of such property (net of liabilities assumed by the Company and liabilities to
which such contributed property is subject); and

     (3) distributive share of Company net income;

and shall be decreased by the amount of such Member’s:

     (1) distributions of money from the Company (including, without limitation,
individual liabilities of such Member directly assumed by the Company);

     (2) property distributions from the Company to the extent of the fair market
value of the property (net of liabilities assumed by such Member and liabilities to
which such distributed property is subject);

     (3) distributive share of Company net loss; and

     (4) distributive share of expenditures of the Company described in Section
705(a)(2)(B) of the Internal Revenue Code.

          (b) Prior to a distribution of property by the Company to any Member, the fair market value of
such property shall be determined and the Capital Accounts of the Members first shall be adjusted
to reflect the manner in which the unrealized income, gain, loss, deduction and credit inherent in
such property (that has not previously been reflected in the Capital Accounts) would be allocated
among the Members if there were a taxable disposition of such property for the fair market value of
such property on the date of distribution.

          (c) In the event any interest in the Company is transferred, the transferee shall succeed to
the Capital Account of the transferor to the extent such Capital Account is related to the
transferred interest.

          (d) The foregoing provisions relating to the maintenance of Capital Accounts are intended to
comply with Income Tax Regulations Section 1.704-1(b), and shall be interpreted and applied in a
manner consistent with such Regulations. In the event that the Members determine that it is
prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto, are
computed in order to comply with such Regulations, the Members may make such modification provided
that it is not likely to have a material effect on the amounts distributable to any Member under
this Agreement.

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     4.2 Capital Account Restoration Obligations. No Member shall be obligated to restore
any deficit Capital Account balance.

Article V

Allocations

     5.1 Profits and Losses.

          (a) Profits. Profits shall be allocated among the Members as follows:

               (i) First, to each of the Class A Preferred Members to the extent of Class A Preferred
Distributions received during such year in an amount equal to the amount of Class A Preferred
Distributions received by such Class A Preferred Member during such year. To the extent the
profits of the Company for a particular year are less than the amount of the Class A Preferred
Distributions received by the Class A Preferred Members during such year, the profits shall be
allocated ratably among the Class A Preferred Members.

               (ii) Second, to each of the Class B Preferred Members to the extent of Class B Preferred
Distributions received during such year in an amount equal to the amount of Class B Preferred
Distributions received by such Class B Preferred Member during such year. To the extent the
profits of the Company for a particular year are less than the total of the Class A Preferred
Distributions and the Class B Preferred Distributions received by the Class A Preferred Members and
the Class B Preferred Members during such the year, the amount of profits allocated to the Class B
Preferred Members as a class for such year shall be allocated ratably among the Class B Preferred
Members.

               (iii) Third, to each of the Class C Preferred Members to the extent of Class C Preferred
Distributions received during such year in an amount equal to the amount of Class C Preferred
Distributions received by such Class C Preferred Member during such year. To the extent the
profits of the Company for a particular year are less than the total of the Class A Preferred
Distributions and the Class B Preferred Distributions received by the Class A Preferred Members and
the Class B Preferred Members during such the year, the amount of profits allocated to the Class C
Preferred Members as a class for such year shall be allocated ratably among the Class C Preferred
Members.

               (iv) Fourth, to the Common Members in accordance with the Common Members’ respective
Percentage Interests.

          (b) Losses. Losses shall be allocated among the Common Members in accordance with
the Common Members’ respective Percentage Interests.

          (c) Disposition of Units. In the event a Member sells or otherwise disposes of his
Units in the Company during a particular Tax Year, profits and losses with respect to such Tax
Year, shall be allocated among the persons who were holders of such Units during such year, in
proportion

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to the number of days that each such holder was recognized as the owner on the records
of the Company of such Units during such full year, without regard to the results of Company
operations for the period of the year that the Units were actually held by the person selling or
otherwise disposing of the Units, and without regard to the date, amount, or recipient of any
distribution which may have been made with respect to such Units for the year of sale or other
disposition.

          (d) Determination of Profits and Losses. Profits and losses shall be determined in
accordance with the accounting methods followed by the Company for federal income tax purposes.

     5.2 Tax Allocation Provisions. The tax allocation provisions set forth in Exhibit “D”
attached hereto are part of this Agreement.

Article VI

Distributions of Cash and Assets

     6.1 Cash Distributions. Distributable Cash shall be distributed among the Members on
a quarterly basis as follows:

          (a) First, to the Class A Preferred Members to pay the Class A Preferred Members the full
amount of the Class A Preferred Distribution accrued through the end of such quarter.

          (b) Second, to the Class B Preferred Members to pay the Class B Preferred Members the full
amount of the Class B Preferred Distribution accrued through the end of such quarter.

          (c) Third, to the Class C Preferred Members to pay the Class C Preferred Members the full
amount of the Class C Preferred Distribution accrued through the end of such quarter.

          (d) Fourth to the Common Members based on each Common Member’s respective Percentage
Interests.

     6.2 In Kind Distributions. If it is ever necessary or desirable, in the Directors’
discretion, to distribute assets of the Company, other than cash, to the Common Members, such
assets shall be distributed to the Common Members so that each Member shall receive an undivided
interest in such asset(s) in the same proportion as his or her respective Percentage Interest. The
market value of the assets distributed in kind shall be such value as is determined by the
Directors.

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Article VII

Interest

     7.1 No Interest on Capital Contributions. No interest shall be paid on Capital
Contributions to the Company.

     7.2 Loans By Members. Any of the Members may, but are not obligated to, lend to the
Company, such funds, for such periods of time, on such terms as the lending Member and the
Directors may agree.

Article VIII

Management

     8.1 Meetings of Common Members. Meetings of the Common Members shall be held in
accordance with the By-Laws.

     8.2 Voting Rights of Common Members. Each Common Member shall have a voice and vote
with respect to all matters properly coming before the Common Members for a vote. Each Common
Member shall have voting rights in proportion to the Common Member=s Percentage Interest.
The affirmative vote of a Majority in Interest of the Common Members shall be required for all
matters and decisions by the Common Members. In the event any matter coming before the Common
Members is evenly split so that a deadlock results, then such matter shall be decided by
arbitration. The arbitrators shall be appointed and such arbitration shall be conducted in
Montgomery County, Ohio in accordance with the rules then obtaining of the American Arbitration
Association, and judgment upon the award rendered shall be final and binding upon all Members and
may be entered in any court having jurisdiction thereof. The expense of arbitration shall be borne
by the Company.

     8.3 Appointment of Directors. There shall be a total of six (6) Directors to govern
the Company in accordance with the By-Laws. The Common Members shall appoint five (5) Directors
and, in accordance with Article XVI herein, James Deuer shall appoint one (1) Director. James
Deuer hereby appoints himself as Director. The Common Members hereby appoint the following five
(5) persons as the other Directors:

	 	 	 	 	 
	E. Randall Porter

	 	Peter E. Julian
	 	Paul Quolke
	Mark Fitzgerald

	 	Wayne Hawkins	 	 

     8.4 Meetings and Duties of Directors. Meetings of the Directors shall be held in
accordance with the By-laws. The Directors shall (i) establish and oversee strategic direction
and operation of the Company; (ii) establish compensation for Officers; and (iii) perform such
other duties as set forth herein or in the By-Laws.

     8.5 Appointment of Officers. The Directors shall appoint a President, Chief Executive
Officer, Chief Operating Officer, Secretary and Treasurer to manage the day-to-day operations of
the Company in accordance with the By-Laws. The initial Officers shall be as follows:

	 	 	 
	President

	 	E. Randall Porter
	Chief Executive Officer

	 	Peter E. Julian
	Chief Operating Officer

	 	Wayne Hawkins
	Chief Financial Officer

	 	Paul Quolke
	Secretary

	 	Paul Quolke
	Treasurer

	 	Paul Quolke

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     8.6 Executive Committee. The Directors shall elect an Executive Committee which shall
consist of three (3) members, each of whom shall be voting members of the Executive Committee. The
members of the Executive Committee shall be the President, Chief Executive Officer and Chief
Operating Officer.

     8.7 Duties of Executive Committee. The Executive Committee shall meet at least
monthly and shall be responsible for (i) establishing strategic direction for the Company; (ii)
monitoring the progress of the Company toward its goals; (iii) evaluating management objectives;
(iv) evaluating personnel; and (v) recommending changes regarding the Company to the Directors
for consideration.

     8.8 Audit Committee. The Directors shall elect an Audit Committee which shall
consist of three (3) members, each of whom shall be voting members of the Audit Committee. The
members of the Audit Committee shall be the President, Chief Executive Officer and Chief Operating
Officer.

     8.9 Duties of Audit Committee. The Audit Committee shall meet at least quarterly and
shall be responsible for (i) reviewing financial statements of the Company and ensuring said
statements are in compliance with accounting and auditing rules and regulations; and (ii)
recommending improvements in financial statement presentation.

     8.10 Liability and Indemnification.

          (a) Liability to Company. No Officer, Director or member of the Executive Committee
or Audit Committee shall be liable, responsible or accountable in damages or otherwise to the
Company or any shareholder for any actions taken or failure to act on behalf of the Company within
the scope of authority conferred on them by this Agreement or by law if such Officer, Director or
member of the Executive Committee or Audit Committee acted in good faith and in a manner he or she
reasonably believed to be in or not opposed to the best interests of the Company unless such action
or omission was performed or omitted with deliberate intent to cause injury to the Company or
undertaken with reckless disregard for the best interests of the Company.

          (b) Indemnification Claims by Company. The Company shall indemnify and hold harmless
each Officer, Director and member of the Executive Committee and Audit Committee from any cost,
loss or expense suffered by such Officer, Director or member of the Executive Committee or Audit
Committee as a result of any action, claim or suit brought by or on behalf of the Company because
of actions taken or failure to act on behalf of the Company within the scope of authority conferred
on him or her by this Agreement or by law if such Officer, Director or member of the Executive
Committee or Audit Committee acted in good faith and in a manner he or she reasonably believed to
be in or not opposed to the best interests of the Company, unless such Officer, Director or member
of the Executive Committee or Audit Committee was adjudged to be liable for negligence or
misconduct in the performance of his or her duty to the Company.

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          (c) Indemnification Claims by Other Parties. The Company shall indemnify and hold
harmless the Officers, Directors and members of the Executive Committee and Audit Committee from
any cost, loss or expense suffered by such Officer, Director or member of the Executive Committee
or Audit Committee as a result of any actions taken or failure to act on behalf of the Company
within the scope of authority conferred on him or her by this Agreement or by law if such Officer,
Director or member of the Executive Committee or Audit Committee acted in good faith and in a
manner he or she reasonably believed to be in or not opposed to the best interests of the Company,
and in connection with any criminal action, he or she had no reasonable cause to believe his or her
conduct was unlawful.

          (d) Statutory Limitation. The provisions of this Section 8.10 are subject to the
provisions of Ohio Revised Code Sections 1705.29 and 1705.32. To the extent of any inconsistency
between the provisions of this Section 8.10 and the provisions of Ohio Revised Code Sections
1705.29 and 1705.32, the provisions of such Ohio Revised Code Sections shall govern.

     8.11 Class A Preferred Members shall have no voting rights or rights to participate in
management of the Company.

     8.12 Class B Preferred Members and Class C Preferred Members shall have no voting rights or
rights to participate in the management of the Company.

     8.13 Reimbursement of Expense. The Company shall reimburse the Directors for all
“out-of-pocket” ordinary and necessary costs and expenses he incurs in connection with the
formation, operation and management of the Company; including, but not limited to, accounting,
consulting and legal fees.

     8.14 Fiduciary Responsibility. The Directors and Officers shall have fiduciary
responsibility for safekeeping and use of all funds and assets of the Company and the Directors and
Officers shall not employ or permit another to use such funds or assets except for the exclusive
benefit of the Company.

     8.15 Transactions with Related Parties. Any Member or any Affiliate of a Member may be
engaged or employed by the Company to render or perform services for the Company or sell property
of any kind or description to the Company, or otherwise engage in transactions with the Company.
Such engagements, employments or other transactions cannot be invalidated so long as the prices,
fees, or other compensation paid to such Persons are reasonable and on an arms-length basis.

     8.16 Borrowings. The Company shall incur no debt for money borrowed as a result of
which any Member shall become personally liable without the consent of the Member so to become
liable. Except for the limitations in the preceding sentence of this Section, the Company may
borrow money and secure such borrowing by mortgage or other security interest in any or all of the
Property on such terms and conditions as the Directors shall decide.

17

 

     8.17 Bank Accounts. All funds of the Company shall be deposited in its name in an
account or accounts as shall be decided by the Directors. All withdrawals therefrom shall be made
by checks signed by such persons(s) as the Directors shall decide.

     8.18 Books and Records.

          (a) The Company books and records shall be maintained at such place as the Directors shall
decide, and Members shall be entitled to copies thereof upon payment of reasonable charges there
for and shall have access thereto upon reasonable notice during regular business hours.

          (b) The books shall be kept on the accrual method of accounting in accord with generally
accepted accounting practices and principles. The fiscal year of the Company shall be the calendar
year.

     8.19 Annual Reports. The Company shall employ a firm of certified public accountants
who shall review the books of the Company at the end of each Tax Year. Within ninety (90) days
after the end of each Tax Year or as soon thereafter as is reasonably practical, the Company shall
provide to each Member a copy of the Company’s annual financial statements, including an income
statement and balance sheet. In addition, as soon as reasonably practical after the end of each
Tax Year, the Company shall provide to each Member a Schedule K-1 reflecting distributions of cash
and other assets to the Member, the Member’s capital account balance and the Member’s distributive
share of income, gain, loss, deduction and credit for federal income tax purposes with respect to
such Tax Year.

     8.20 Tax Year. The Company shall have a Tax Year ending December 31st.

     8.21 Tax Elections. The Directors may make or revoke the election referred to in
Section 754 of the Internal Revenue Code, as amended, or any similar provision enacted in lieu
thereof. Each of the Members will, upon request, supply the information necessary to give proper
effect to such an election, if made. All other elections required or permitted to be made by the
Company under federal or any other tax laws may be made, and once made may be revoked, at the
discretion of the Directors. With respect to any Member whose interest in the Company has been
affected by an election pursuant to Internal Revenue Code Sections 754 or 732(d), appropriate
adjustments shall be made with respect to the determination of profits, losses, distributions and
Capital Accounts as provided in Sections 732, 734, and 743 of the Internal Revenue Code and in
Income Tax Regulation Section 1.704-1 (b) (2) (iv) (m).

     8.22 Tax Matters Partner. Peter E. Julian is hereby specifically designated as the
“Tax Matters Partner” of the Company for purposes of Section 6221 et seq. of the Internal
Revenue Code, provided, however, that such Tax Matters Partner shall not make or revoke any
elections except in accordance with Section 8.21hereof.

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Article IX

Legal Instruments

     9.1 Authorized Signatures. All deeds, leases, mortgages certificates and other
instruments pertaining to the Property, and other documents required to be signed on behalf of the
Company, may be signed by any two (2) Officers.

     9.2 Reliance of Third Parties. Third parties dealing with the Company in a bona fide
arms length transaction may act in reliance on the representations of an Officer, and need not
inquire into the power or authority of such Officer to act for the Company, provided that any such
representation is in writing signed by the Officer.

     9.3 Authority to Act. No Member shall on behalf of the Company endorse any note, or
otherwise become surety for any person, or act as an accommodation party for any third party,
without the consent of the Directors. No Member without the consent of the Directors shall, on
behalf of the Company, borrow or lend money, or make, deliver, or accept any commercial paper, or
execute any mortgage, security agreement, bond, or lease, or purchase or contract to purchase, or
sell or contract to sell the Property for or on behalf of the Company.

Article X

Other Ventures

     Any Member and any Affiliate of a Member may engage in any other business ventures, of every
nature and description, independently or with others, and neither the Company nor the Members shall
have any rights in or to such independent ventures or the income or profits derived therefrom.

Article XI

Buy/sell Agreement

     11.1 Restrictions on Transfer. The sale, assignment, transfer, pledge, encumbrance or
other disposition of a Unit or any part thereof (“Transfer”) by a Member, Assignee (as defined in
Section 11.6 hereof) or Successor in Interest (as defined in Section 11.5 hereof) is prohibited
unless: (a) the Company causes such Unit to be registered under the Securities Act of 1933, as
amended, or counsel satisfactory to the Directors has rendered to the Company an opinion that an
exemption from registration is available and that such Transfer will not otherwise violate federal
or state securities law; (2) the Transfer is permitted under the terms of this Agreement; and (3)
the Member desiring to Transfer such Unit has first delivered a written offer to sell such Unit to
the Company on the terms set forth in Section 11.2 below (the “Offer”). Notwithstanding anything
to the contrary contained herein, a Member may transfer any or all of the Units he or she owns in
blocks of five (5) Units or more by gift or bequest for no consideration to any Person.

     11.2 Offer to Sell to Company. The Offer shall give the Company the first right to
purchase the Units upon the terms of the proposed Transfer for a period of thirty (30) days. If
the Offer is accepted by Company, the Directors shall designate a place of closing in Montgomery
County, Ohio, and a time of closing not less than fifteen (15) days nor more than thirty (30) days
after the last date the Company could have elected to accept the Offer. The purchase price shall
be paid in accordance with the terms of the proposed Transfer, and the Units shall be transferred
by appropriate written instruments.

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     11.3 Offer Not Accepted. Subject to the provisions of Section 11.6 hereof, if Company
does not accept the Offer to purchase the offered Units, the offering Member may, upon written
notice to the Company, Transfer the Units in blocks of five (5) Units or more to any Person other
than a Person under the age of eighteen (18) years or a person having been previously declared
insane, incompetent, or bankrupt; provided, however, that such Transfer must be made upon the same
terms offered to the Company, and such Transfer must take place no later than thirty (30) days
after expiration of the Company’s right to accept the Offer. If the offering Member does not so
Transfer the Unit, all of the restrictions set forth in this Article XI shall again apply to the
offering Member.

     11.4 Deferred Effectiveness of Transfer. Notwithstanding any provisions in this
Article XI to the contrary, if necessary to avoid a termination of the Company for federal income
tax purposes, the effectiveness of any Transfer of Units by a Member will be deferred if it would
result in fifty percent (50%) or more of the total interests in Company capital and profits having
been transferred for purposes of Section 708 of the Internal Revenue Code within a twelve (12)
month period. The Member proposing to Transfer the Units will be notified in such event and any
deferred Transfers will be effected (in chronological order to the extent practicable) as soon as
practicable after such Transfers can be effected without a termination of the Company for tax purposes.
In the event Transfers are suspended for the foregoing reason, the Company will give written notice
of such suspension as soon as practicable to all Members.

     11.5 Successors to Members. The Company shall not terminate or dissolve upon the
death, insanity, incompetency, or bankruptcy of a Member. If a Member should die or be declared
insane, incompetent, or bankrupt, he shall cease to be a Member and his Successor in Interest (as
hereinafter defined) shall immediately succeed to the interest of the former Member in the profits,
losses, and distributable cash of the Company. A Member’s “Successor in Interest” shall be the
Person or Persons that the Member shall have designated in a notice to the Company by completing
and delivering to the Company a notice in the form prescribed by the Company. Absent such a
designation, or if the Person designated is not then living, renounces or disclaims such Units or
for any other reason is unable to succeed to the Units, the Successor in Interest shall be the
executor or administrator of the deceased Member’s estate, the guardian of an insane or incompetent
Member’s estate, or the trustee in bankruptcy of a bankrupt Member’s estate, who shall hold or
distribute such Units in accordance with applicable fiduciary law.

     11.6 Substitute Member. No assignee of a Member’s Units (“Assignee”) or Successor in
Interest shall become a Substitute Member except in accordance with this Section. An Assignee or
Successor in Interest shall be admitted as a Substitute Member only upon compliance with all of
the following conditions:

          (a) The Assignee or Successor in Interest shall deliver to the Company an executed counterpart
of the instrument of transfer or assignment, which shall be satisfactory in substance and form to
the Directors.

          (b) The Assignee or Successor in Interest and his or her assignor or predecessor in interest
shall execute and acknowledge such instruments as the Directors may deem necessary or desirable to
effect such admission.

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          (c) The Assignee or Successor in Interest shall pro tanto assume in writing all of the
obligations of his, her or its assignor or predecessor in interest under and pursuant to this
Agreement

     11.7 Rights/Obligations of Assignee or Successor in Interest. A Successor in
Interest or Assignee shall be subject to all of the restrictions specified in this Article XI
applicable to a Member’s Units. If a Successor in Interest or Assignee does not become a
Substitute Member in accordance with Section 11.6 hereof, the Successor in Interest or Assignee
shall be allocated a pro rata share of the Company’s net profits and losses in accordance with
Article V hereof, and be entitled to receive all sums payable with respect to such Units in
accordance with Article VI hereof, but shall have no voting or other membership rights. The
Successor in Interest or Assignee of a deceased former Member shall be deemed to be the recipient,
for federal income tax purposes, of the deceased former Member’s share of the net profits and
losses of the Company for the taxable year during which the deceased former Member died.

     11.8 Liability and Release. Upon acceptance of a Successor in Interest or Assignee as
a Member in accordance with Section 11.6 hereof, the transferor shall be pro tanto released from
all obligations hereunder accruing after the effective date of the transfer.

     11.9 No Withdrawal of Members. The withdrawal of a Member shall not cause the
dissolution of the Company and no Member has the right to demand the fair value of his or her Units
upon withdrawal, except to the extent and in the manner expressly provided in this Article XI.

     11.10 Execution of Documents. If the Company, the other Members, a Successor in
Interest or Assignee acquire the Units of a Member, the Member, the Company, the other Members, the
Successor in Interest and/or the Assignee, as the case may be, shall execute such documents,
certificates, and conveyances as may be required or appropriate to evidence the change in ownership
of the Units.

     11.11 Waiver of ORC Chapter 1779. The provisions of this Agreement providing for the
disposition of the interest of a deceased Member are in lieu of the provisions of the Ohio Revised
Code concerning the duties and rights of surviving Members (Ohio Revised Code Chapter 1779), and
inventory and appraisement and sale, including the bond to be given by the surviving Members to
assure the payment of the debts of the Company, and all of the said provisions are hereby dispensed
with.

     11.12 Restrictions Applicable to Common Members. Should there be a separate agreement
entered into between the Common Members holding at least a majority in interest of the Common Units
concerning the purchase, redemption or transfer of the Common Units, then to the extent of any
inconsistency between the terms of such agreement and the provisions of this Article XI, the terms
of such agreement shall control.

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Article XII

Termination and Dissolution

     Upon cessation of substantially all of the Company’s business or sale of substantially all of
the Property, the Company shall terminate, and the Members shall proceed with reasonable promptness
to liquidate the Company.

Article XIII

Binding Effect and Notices

     13.1 Binding Effect. All of the terms, covenants and conditions herein contained
shall inure to the benefit of and be binding upon the parties hereto, their successors and assigns;
provided, however, that any transfer of any interest herein in violation of any of the provisions
hereof, shall confer no rights upon the transferees.

     13.2 Notices. Except where expressly provided otherwise in this Agreement, whenever
it is provided in this Agreement that notice, demand, request or other communication shall be given
to or served upon any of the Members by another, any such notice, demand, request or communication
shall be in writing and personally delivered or sent by certified or registered mail, return
receipt requested, addressed to the Member at the last known address of the Member as shown on the
Company’s records or to such other place or attention as any Member shall specify by notice.
Such demand, notice, request or communication shall be effective for the purpose hereof only when
and if so personally delivered or mailed, as the case may be.

     13.3 Counterparts. This Agreement may be signed in multiple counterparts, each of
which when taken together shall constitute one and the same agreement.

     13.4 Governing Law. This Agreement shall be governed by and construed in accordance
with Ohio law. The Members and all parties hereto hereby agree to venue and jurisdiction of any
dispute hereunder in Montgomery County, Ohio.

Article XIV

Liquidation and Distribution

     14.1 Liquidation of Company. In the event of a dissolution of the Company, the
Members shall wind up the affairs of the Company and the liabilities of the Company shall be paid
in the order provided in Section 14.2. The Property and other Company assets may be sold, if a
reasonable price may be obtained therefore, and the proceeds thereof as well as all other cash and
properties of the Company shall be distributed in the order provided in Section 14.2.

     14.2 Order of Payments and Distributions. In the event of dissolution of the Company,
the liabilities of the Company shall be paid, and the remaining cash and other properties of the
Company shall be distributed in the following order:

          (a) All of the Company’s debt and liabilities to creditors, other than Members, shall be paid
and discharged;

          (b) All of the accrued and unpaid Class A Preferred Distributions to Class A Preferred Members
shall be paid;

22

 

          (c) The Principal Balance per Class A Preferred Unit shall be paid to each holder of an
outstanding Class A Preferred Unit;

          (d) All of the accrued and unpaid Class B Preferred Distributions to Class B Preferred Members
shall be paid;

          (e) The Class B Preferred Principal Balance shall be paid to each holder of an outstanding
Class B Preferred Unit.

          (f) All of the accrued and unpaid Class C Preferred Distributions to Class C Preferred Members
shall be paid;

          (g) The Class C Preferred Principal Balance shall be paid to each holder of an outstanding
Class C Preferred Unit.

          (h) All of the Company’s debts and liabilities to Members shall be paid and discharged; and

          (i) The remaining assets shall thereupon be distributed to the Common Members in the same
proportion as the Percentage Interest of each Common Member bears to the Percentage Interest of all
Common Members.

          (j) Distribution of assets to Common Members may be in cash or in kind on any reasonable basis
as determined by the Directors.

Article XV

Amendments

     This Agreement may be amended at any time by unanimous written consent of the Directors and a
Majority in Interest of the Common Members. Notwithstanding anything to the contrary contained
herein, no amendment to the Agreement which adversely affects the holders of the Class A Preferred
Units may be made without the consent of a “Majority in Interest of the Class A Preferred Members”.
For this purpose, “Majority in Interest of the Class A Preferred Members” means Class A Preferred
Members owning in the aggregate more than fifty percent (50%) of the Class A Preferred Units.
Notwithstanding anything to the contrary contained herein, no amendment to the Agreement which
adversely affects the holders of the Class B Preferred Units may be made without the consent of a
“Majority in Interest of the Class B Preferred Members”. For this purpose, “Majority in Interest
of the Class B Preferred Members” means Class B Preferred Members owning in the aggregate more than
fifty percent (50%) of the Class B Preferred Units. Notwithstanding anything to the contrary
contained herein, no amendment to the Agreement which adversely affects the holders of the Class C
Preferred Units may be made without the consent of a “Majority in Interest of the Class C Preferred
Members”. For this purpose, “Majority in Interest of the Class C Preferred Members” means Class
C Preferred Members owning in the aggregate more than fifty percent (50%) of the Class C Preferred
Units.

23

 

ARTICLE XVI

MISCELLANEOUS

     So long as the Company has not been dissolved, James Deuer or his permitted assign: (i) shall
be entitled to appoint a member of the Board of Directors of the Company; (ii) in the event the
Company wishes to make a distribution with respect to any Common Units, shall be entitled to
receive, as additional interest, an amount equal to four percent (4%) of the distribution to be
made to the holders of the Common Units coincident with or prior to the Company making any
distribution to the holders of the Common Units; and (iii) upon the occurrence of a sale or
liquidation of the Company, to the extent there are any proceeds or assets available for
distribution with respect to the Common Units, shall be entitled to receive out of such proceeds or
assets, as additional interest, an amount equal to four percent (4%) of the amount available for
distribution to holders of Common Units, prior to such distribution being made to the holders of
such Common Units.

     In Witness Whereof, the parties hereto have executed this Agreement effective on the
date set forth at the beginning hereof.

COMMON MEMBERS:

	 	 	 	 	 
	/s/ E. Randall Porter

	 	/s/ Peter E. Julian	 	 
	 

E. Randall Porter

	 	 

Peter E. Julian
	 	 
	 
	 	 	 	 
	/s/ Mark Fitzgerald

	 	/s/ Wayne Hawkins	 	 
	 

	 	 	 	 
	Mark Fitzgerald

	 	Wayne Hawkins	 	 
	 
	 	 	 	 
	280873
	 	 	 	 

24

 

EXHIBIT A

BYLAWS

ARTICLE I

MEETINGS OF COMMON MEMBERS

     Section 1. Meetings. Meetings of the Common Members for any purpose or
purposes unless otherwise prescribed by law or the Articles of Organization or Operating Agreement
of the Company, may be called by the President or by the Board of Directors (either by written
instrument signed by a majority or by resolution adopted by a vote of the majority), and meetings
shall be called by the Secretary whenever a Majority in Interest of the Common Members so elect in
writing.

     Section 2. Place of Meetings. Meetings of the Common Members shall be held at
the principal offices of this Company, unless the Board of Directors decide that a meeting shall be
held at some other place within or without the State of Ohio and the notices so state.

     Section 3. Notice of Meetings. Unless waived, a written, printed, or
typewritten notice of each meeting, stating the day, hour, and place, and purpose or purposes
thereof, shall be served upon or mailed to each Common Member of record entitled to vote or
entitled to notice, at least two (2) days before any such meeting. All notices with respect to any
Units of record in the names of two or more persons may be given to whichever of such persons is
named first on the books of the Company, and notice so given shall be effective as to all the
holders of record of such Units.

     Notice of the time, place, and purpose of any meeting of Common Members may be dispensed with
if every Common Member entitled to vote at such meeting shall attend either in person or by proxy,
or if every absent Common Member entitled to such notice, shall in writing, filed with the records
of the meeting, either before or after the holding of the meetings, waive such notice.

     Section 4. Quorum and Adjournment. A Majority in Interest of the Common
Members entitled to vote at any meeting of Common Members, present in person or by proxy, shall
constitute a quorum at such meetings. If a quorum is not present at a meeting of the Common
Members, those Common Members present in person or by proxy and entitled to vote at the meeting
shall have the power to adjourn the meeting without notice other than announcement at the meeting
of the place, date and hour of the adjourned meeting. At an adjourned meeting at which a quorum is
present in person or by proxy, the Company may transact any business which might have been
transacted at the original meeting.

     Section 5. Proxies. Any Common Member of record who is entitled to attend or
vote at a Meeting of the Common Members, or to assent or give consents in writing, shall be
entitled to be represented or vote in such meeting, or to assent or give consents in writing, as
the case may be, or to exercise any other right by proxy or proxies, appointed by an instrument in
writing, signed by such Common Member or his or her duly authorized attorney, which need not be
sealed, witnessed or acknowledged. A telegram, cablegram, wireless message, appearing to have been
transmitted by a Common Member or his or her duly authorized attorney, or a reproduction of a
writing, appointing a proxy or proxies, shall be a sufficient writing.

A-1

 

     Section 6. Voting. At any meeting of Common Members when a quorum is present
each Common Member shall be entitled to one (1) vote in person or by proxy for each Unit registered
in his or her name on the books of the Company on the date set by the Board of Directors for the
determination of Common Members entitled to vote at such meeting, or if no such record date shall
have been fixed, then as of the day next preceding the day on which the meeting is held.

     Section 7. Action Without Meeting. Any action which may be taken at any
meeting of Common Members may be taken without a meeting if authorized by a writing signed by all
of the Common Members who would be entitled to notice of a meeting for such purpose. Such writing
or writings shall be filed with or entered upon the records of the Company.

ARTICLE II

UNITS

     Section 1. Certificates. No certificates evidencing the ownership of Units of
the Company shall be required to be issued. If the Common Members desire to issue certificates,
then certificates may be issued, and if issued shall be signed by any one of the Officers.

     Section 2. Transfers. Subject to any applicable restrictions contained in the
Articles of Organization, the Operating Agreement or By-Laws of the Company, or any other
restriction appearing on the certificate, the Units may be transferred on the books of the Company
by the holder of such Units in person or by the holder’s lawfully appointed attorney-in-fact upon
surrender for cancellation of certificates for the same number of Units, and a written assignment
and power of transfer. The Company shall be entitled to treat the holder of record of any Unit or
Units as the holder in fact, and accordingly shall not be bound to recognize any equitable or other
claim to, or interest in, such Unit or Units on the part of any other Person.

     Section 3. Transfer Agent. The Board of Directors may, from time to time,
appoint such transfer agents or registrars of Units as it shall deem advisable, and may define
their powers and duties.

     Section 4. Closing of Transfer Books and Record Dates. The Board of Directors
may, in its discretion, prescribe in advance a period not exceeding thirty (30) days prior to the
date of any meeting of the Common Members or prior to the last day on which the consent or dissent
of the Common Members may be expressed for any purpose without a meeting, during which no transfer
of Units on the books of the Company may be made; or in lieu thereof may fix in advance a time not
more than thirty (30) days prior to the date of any meeting of Common Members or prior to the last
day on which the consent or dissent of Common Members may be expressed for any purpose without a
meeting, at the time of which Common Members entitled to notice of and to vote at such a meeting or
whose consent or dissent is required or may be expressed for any purpose, as the case may be, shall
be determined; and all Persons who were Common Members of record at such time and no others shall
be entitled to notice of and to vote at such meeting notwithstanding any transfer of Units on the
books of the Company after any record date fixed as provided above.

A-2

 

ARTICLE III

DIRECTORS

     Section 1. Number. The number of Directors may be fixed or changed by
resolution of the Common Members at any meeting of the Common Members. If the number of Directors
is decreased, no reduction shall have the effect of removing any Director prior to the expiration
of that Director’s term of office.

     Section 2. Election and Term. Except as provided in Article XVI of the
Operating Agreement, Members of the Board of Directors shall be elected by the Common Members, and
may thereafter be elected or removed at a meeting called and held for that purpose. Such election
shall be by ballot whenever requested by any Common Member entitled to vote at such election; but,
unless such a request is made, the election may be conducted in any manner approved at such
meeting.

     Directors shall hold office until a meeting of Common Members is called to elect directors,
and shall continue in office until their respective successors have been duly elected and
qualified, or until the Director’s earlier resignation, removal from office or death.

     Section 3. Vacancies. If any vacancy shall occur among the Directors, or if
the number of Directors shall at any time be increased, the Directors in office, although less than
a quorum, by majority vote may fill the vacancy, or such vacancies or newly created directorships
may be filled by the Common Members at any meeting. Such Directors elected to fill vacancies shall
serve until the next election of Directors and until their successors are elected and qualified.

     Section 4. Meetings. Meetings of the Board of Directors shall be held at the
principal office of the Company or at such place within or without the State of Ohio as may from
time to time be fixed by resolution of the Board of Directors or by the President or as may be
specified in the notice or waiver of notice of any meeting. Meetings may be held at any time upon
the call of the President or the Secretary or any two (2) of the Directors in office by oral,
telegraphic or written notice duly served or sent or mailed to each Director not less than two (2)
days before such meeting. Meetings may be held at any time and place without notice if all the
Directors are present, or if those not present shall in writing or by telegram or cable waive
notice of such meeting. A meeting of the Board of Directors may be held without notice immediately
following a meeting of Common Members at the place where such meeting is held. On any issue before
the Board of Directors for a vote, each Director shall be entitled to one (1) vote.

     Section 5. Quorum and Adjournment. A majority of the whole authorized Common
Members of the Board of Directors shall constitute a quorum for the transaction of business,
provided that whenever less than a quorum is present at the time and place appointed for the
meeting, a majority of those present may adjourn the meeting from time to time, without notice
other than announcement at the meeting.

     Section 6. Compensation. Directors, as such, shall not receive any salary for
their services, but may be granted options to acquire Units or receive other compensation as
determined by a Majority in interest of the Common Members. Notwithstanding anything to the
contrary, a

A-3

 

Director may be employed by the Company as an officer, employee or otherwise, and may be
compensated therefor.

     Section 7. Rules for Governance. For the government of its actions, the Board
of Directors may adopt rules consistent with the Articles of Organization, the Operating Agreement
and these By-Laws.

     Section 8. Action Without Meeting. Any action which may be taken at a meeting
of Directors may be taken without a meeting if authorized by a writing signed by all of the
Directors who would be entitled to a notice of a meeting for such purpose.

ARTICLE IV

OFFICERS

     Section 1. General Provisions. The Board of Directors shall elect a
President, Chief Executive Officer, Chief Operating Officer, such number of Vice Presidents as the
Board may from time to time determine, a Secretary and Treasurer. The Board of Directors may from
time to time create such offices and appoint such other officers, subordinate officers and
assistant officers as it may determine to be necessary or beneficial. The President shall be, but
the other officers need not be, chosen from among the Common Members of the Board of Directors.
Any two (2) or more of such offices, other than that of President and Vice President, or Secretary
and Assistant Secretary, or Treasurer and Assistant Treasurer, may be held by the same person, but
no officer shall execute, acknowledge or verify any instrument in more than one capacity.

     Section 2. Term of Office. Unless sooner removed by the Board of Directors,
resignation or death, the Officers of the Company shall hold office until their successors are
elected and qualified. The Board of Directors may remove any Officer at any time, with or without
cause, by a majority vote. If any office shall become vacant, for any reason, the Board of
Directors shall elect a successor to fill such office.

ARTICLE V

DUTIES OF OFFICERS

     Section 1. President. The President shall exercise supervision over the
business of the Company and over its several officers; subject, however, to the control of the
Board of Directors. The President shall preside at all meetings of Common Members and shall also
preside at all meetings of the Board of Directors. The President shall have authority to sign all
certificates for Units and all deeds, mortgages, bonds, contracts, notes, and other instruments
requiring the President’s signature, and shall have all the powers and duties prescribed by the
law, and such others as the Board of Directors may from time to time assign to said office.

     Section 2. Chief Executive Officer. The Chief Executive Officer shall be responsible
for strategic direction of the Company. Overall responsibility to Board of Directors for all
subordinate officer accomplishments and areas of responsibility. The Chief Executive Officer shall
be the final decision-maker with respect to completion of properties and suitability for refinance.
The Chief

A-4

 

Executive Officer shall give approval authority for Land Contract purchasers, sign for Company
debts and Company checks.

     Section 3. Chief Operating Officer. The Chief Operating Officer shall be responsible
for the management of accounting, office management, rehab, sales and counseling functions. The
Chief Operating Officer shall have approval authority for land contract purchasers. The Chief
Operating Officer shall preside at weekly sales and rehab meetings as well as credit review
committees meetings. The Chief Operating Officer shall report to the President and Chief Executive
Officer.

     Section 4. Vice Presidents. The Vice Presidents shall perform such duties as
are conferred upon them by the Board of Directors or the President. At the request of the
President, or in the President’s absence or disability, the Vice President designated by the
President (or in the absence of such designation, the Vice President designated by the Board) shall
perform all duties of the President, and when so acting, shall have all powers of the President.
The authority of Vice Presidents to sign in the name of the Company all certificates for Units and
authorized deeds, mortgages, bonds, contracts, notes and other instruments shall be coordinated
with like authority of the President.

     Section 5. Secretary. The Secretary shall attend all meetings and keep
minutes of all the proceedings of the Common Members and Board of Directors, and shall make proper
record of such minutes, which shall be attested by the Secretary, sign all deeds, mortgages,
bonds, contracts, notes and other instruments executed by the Company requiring the Secretary’s
signature, give notice of meetings of Common Members and Board of Directors; produce on request at
each meeting of Common Members for the election of Directors a certified list of Common Members
arranged in alphabetical order; keep such books as may be required by the Board of Directors, and
file all reports to states, and federal government, and foreign countries; and perform such other
and further duties as may from time to time be assigned to the Secretary by the Board of Directors
or by the President.

     Section 6. Treasurer. The Treasurer shall have general supervision of all
finances and shall receive and be in charge of all money, bills, notes, deeds, leases, mortgages
and similar property belonging to the Company, and shall do with the same as may from time to time
be required by the Board of Directors. The Treasurer shall cause to be kept adequate and correct
accounts of the business transactions of the Company, including accounts of its assets,
liabilities, receipts, disbursements, gains, losses, stated capital, and Units, together with such
other accounts as may be required, and, upon the expiration of the Treasurer’s term of office,
shall turn over to the Treasurer’s successor or to the Board of Directors, all property, books,
papers, and money of the Company in the Treasurer’s hands; and shall perform such other duties as
from time to time may be assigned to the Treasurer by the Board of Directors.

     Section 7. Assistant and Subordinate Officers. The Board of Directors may
appoint such assistant and subordinate officers as it may deem desirable. Each other Officer shall
hold office at the pleasure of the Board of Directors, and perform such duties as the Board of
Directors may prescribe. The Board of Directors may, from time to time, authorize any officer to
appoint and remove subordinate officers, to prescribe their authority and duties and to fix their
compensation.

A-5

 

     Section 8. Duties of Officers May be Delegated. In the absence of any officer
of the Company, or for any other reason the Board of Directors may deem sufficient, the Board of
Directors may delegate, for the time being, the powers or duties, or any of them, of such officer
to any other officer, or to a Director.

ARTICLE VI

AMENDMENTS

     These By-Laws may be amended or repealed at any meeting of Common Members called for that
purpose by the affirmative votes of a Majority in Interest of the Common Members entitled to vote,
or without a meeting, by the written consent of a Majority in Interest of the Common Members
entitled to vote.

ARTICLE VII

CONTROLLING DOCUMENTS

     To the extent of any inconsistency between these By-Laws and the Operating Agreement of the
Company, the Operating Agreement shall control.

A-6

 

EXHIBIT B

PROMISSORY NOTE

			
	$                                        
	 	Dayton, Ohio

FOR VALUE RECEIVED the undersigned,                                                                                                                                             , (hereinafter
referred to as “Maker), promises to pay to the order of Performance Home Buyers, LLC, an Ohio
limited liability company (hereinafter referred to as “Payee”), the principal sum of
                                                                                                    Dollars (                    ) with interest at the rate of
five percent (5%) per annum payable as follows:

Interest only payments shall be made quarterly commencing                                                             , 2005
and every quarter thereafter until the 15th day of May, 2010 at which
time the full amount of principal due and accrued interest shall be paid in full.

     The Payee, as its option, may accelerate this Note and declare the principal and interest on
this Note immediately due and payable if any of the following conditions of default occur:

	 	i.	 	Failure of the Maker to make a payment when due or within fifteen (15) days
after receipt of written notice from Payee of non-payment;
	 
	 	ii.	 	The filing of any Chapter proceeding under the Bankruptcy Code with respect to
the Maker which in the case of an Involuntary proceeding is not removed within sixty
(60) days;
	 
	 	iii.	 	Appointment of a receiver, or any marshaling of any assets of the Maker for the
benefit of creditors; or

     To secure the payment of this Note, the Maker hereby pledges and grants to Payee a security
interest in the Maker’s Class C Preferred Units in Performance Home Buyers, LLC. The Maker hereby
agrees that the Payee shall have all rights of a secured creditor under the Ohio Uniform Commercial
Code in the event any default occurs of the terms and conditions of this Note.

     The Maker hereby waives notice of default, notice of acceleration of maturity, presentment and
notice of dishonor.

     The Maker shall have the right at any time to prepay without penalty any portion or all of the
principal and interest due under this Note.

	 	 	 	 	 
	 

	 	Signature of Maker	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Print name of Maker:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date	 	 
	 

	 	 	 	 

     The undersigned, PETER E. JULIAN, hereby agrees to unconditionally guarantee payment on this
Note should the Maker not meet the above terms and conditions.

	 	 	 
	 

	 	 
	 

	 	Peter E. Julian

B-1

 

EXHIBIT C

CLASS A PREFERRED MEMBERS

	 	 	 	 	 	 	 	 	 	 	 
	Member	 	# of Units	 	Subscription Date	 	Investment
	Robert E. Spruill
	 	 	35	 	 	5/1/2003 & 1/2/2003	 	$	175,000	 
	Russel E. Spruill
	 	 	5	 	 	May 7, 2003	 	$	25,000	 
	Jeh Lai
	 	 	10	 	 	5/13/2003 & 5/23/2003	 	$	50,000	 
	Wayne Hawkins
	 	 	5	 	 	May 20, 2003	 	$	25,000	 
	Andrew Dobo
	 	 	6	 	 	May 27 and July 9, 2003	 	$	30,000	 
	Rebecca Sweetman
	 	 	10	 	 	July 1, 2003	 	$	50,000	 
	Mark Fitzgerald
	 	 	5	 	 	July 3, 2003	 	$	25,000	 
	Harold Bowen
	 	 	4	 	 	July 10, 2003	 	$	20,000	 
	Harold Bowen (Equity Trust)
	 	 	22	 	 	September 11, 2003	 	$	110,000	 
	Harold Bowen (Equity Trust)
	 	 	4	 	 	November 8, 2004	 	$	20,000	 
	Harold Bowen (Equity Trust)
	 	 	5	 	 	February 22, 2005	 	$	25,000	 
	Frances Bowen (Equity Trust)
	 	 	12	 	 	February 22, 2005	 	$	60,000	 
	James C. Deuer (Equity Trust)
	 	 	36	 	 	October 15, 2003	 	$	180,000	 
	Ruhama B. Smith
	 	 	4	 	 	July 14, 2004	 	$	20,000	 
	Saundra Nowacki
	 	 	7	 	 	Nov. 10 & Dec. 11, 2003	 	$	35,000	 
	Harold Bowen
	 	 	8	 	 	January 5, 2004	 	$	40,000	 
	Walter & Anita Penick
	 	 	5	 	 	May 3, 2004	 	$	25,000	 
	Frances Bowen
	 	 	6	 	 	March 19, 2004	 	$	30,000	 
	Robert E. & Cecilia Z. Scovil
	 	 	5	 	 	January 14, 2004	 	$	25,000	 
	Harold Bowen
	 	 	6	 	 	July 2, 2004	 	$	30,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dividend Requirement
	 	 	200	 	 	 	 	$	1,000,000	 
	 
	 	 	100.00	%	 	 	 	 	 	 
	Unsubscribed
	 	 	0	 	 	 	 	$	0	 
	 
	 	 	0.00	%	 	 	 	 	 	 
	Total Preferred Units
	 	 	200	 	 	 	 	$	1,000,000	 

C-1

 

EXHIBIT D

TAX ALLOCATION PROVISIONS

     (a) Allocations for Contributed Property. Notwithstanding the above, if Company
property is revalued pursuant to Income Tax Regulations Section 1.704-1(b) (2) (iv) (f) or (g),
items of depreciation, amortization and gain or loss, as computed for tax purposes with respect to
Company property, shall be determined and allocated to the Members so as to take account of the
variation between the adjusted tax basis and book value of such property in the same manner as
under Section 704(c) of the Internal Revenue Code.

     (b) Allocations of Tax Credits. The basis (or cost) of Company property which
qualifies for tax credits, if any, shall be allocated among the Members and their Capital Accounts
in accordance with Income Tax Regulations Sections 1.46-3(f) (2) (i) and 1.704-1(b) (2) (iv) (j).

     (c) Allocations Attributable to Nonrecourse Liabilities of Company (Minimum Gain
Chargeback). Notwithstanding any provision to the contrary, if there is a net decrease in
Partnership Minimum Gain during a Tax Year, all Members with a deficit Capital Account balance at
the end of such Tax Year (excluding from each Member’s deficit Capital Account any amount such
Member is obligated to restore and such Member’s share of remaining Partnership Minimum Gain) shall
be allocated, before any other allocations of profits or losses are made for such Tax Year, items
of income and gain for such Tax Year (and, if necessary, subsequent Tax Years) in the amounts and
in the proportions needed to eliminate such deficit balances as quickly as possible. If any
allocations are made pursuant to the previous sentence, then future allocations of income or gain
to such Members shall be reduced by an amount of income or gain equal to the amount previously
allocated to such Members under the previous sentence. This provision is intended to comply with
the minimum gain chargeback requirements of Income Tax Regulations Section 1.704-1(b) (4) (iv) (e)
and shall be interpreted consistently therewith.

     (d) Limitation on Losses Allocated to Members (Qualified Income Offset).
Notwithstanding any provision to the contrary, in no event shall a Member be allocated any loss,
deduction or other item to the extent such allocation would result in a deficit Capital Account
balance in excess of such Member’s share of Partnership Minimum Gain. In determining the extent to
which the previous sentence is satisfied, a Member’s Capital Gain Account shall be reduced for
adjustments, allocations and distributions as set forth in Income Tax Regulations Section
1.704-1(b) (2) (ii) (d) (4), (5), and (6). To the extent a Member for any reason has a deficit
Capital Account balance in excess in such Member’s share of Partnership Minimum Gain, including a
deficit Capital Account balance which results from an unexpected adjustment, allocation or
distribution described in Income Tax Regulations Section 1.704-1(b) (2) (ii) (d) (4), (5) or (6),
items of income and gain consisting of a pro rata portion of each item of Company Income, including
gross income and gain, shall be allocated in the amount and manner needed to eliminate such deficit
as quickly as possible. If any allocations are made pursuant to the previous sentence, then future
allocations of income or gain to such Member shall be reduced by an amount of income or gain equal
to the amount previously allocated to such Member under the previous sentence.

D-1

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