Document:

EXHIBIT 10.6

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  SOCIETE D’EXERCICE
  LIBERAL D’AVOCATS A FORME ANONYME

  

 

 

 

FINANCIERE POLLUX

 

as
Pledgor

 

 

and

 

 

CREDIT SUISSE FIRST BOSTON

 

as
European Collateral Agent

 

 

relating
to shares in

INVENSYS METERING SYSTEMS SAS

 

 

 

PLEDGE
AGREEMENT

 

(ACTE DE
NANTISSEMENT DE COMPTE D’INSTRUMENTS FINANCIERS)

 

 

 

17
December 2003

 

 

CONTENTS

 

	
  Clause

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definition and
  Interpretation

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  The Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Perfection of Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Representations and
  Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Undertakings

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Dividends

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Remedies upon Default

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Costs and Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Waiver – Remedies
  cumulative

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Benefit of the Pledge

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Amendments

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Severability of Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Jurisdiction

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1
  Déclaration de gage de compte d’instruments financiers

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 2
  Attestation de constitution de gage

  	
   

  

 

 

PLEDGE
AGREEMENT

 

(ACTE DE NANTISSEMENT DE COMPTE D’INSTRUMENTS
FINANCIERS)

 

BETWEEN:

 

(1)                                  FINANCIERE
POLLUX, a company incorporated
under the laws of France, whose registered office is at 14, rue de Moscou,
75008 Paris and registered with the Commercial and Companies Registry of Paris  under
number 349 007 120 (the “Pledgor”),

 

OF THE FIRST PART,

 

AND

 

(2)                                  CREDIT
SUISSE FIRST BOSTON, a
credit institution incorporated under the laws of Switzerland acting through
its London branch whose registered office is at One Cabot Square, London E14
4QG, United Kingdom, as collateral agent on the terms and conditions set out in
the Credit Agreement and the European Guarantee Agreement,

 

(the “European
Collateral
Agent” which expression shall include any person for the time being
appointed as European Collateral Agent or as an additional European Collateral
Agent for the purpose of, and in accordance with the Credit Agreement or the
European Guarantee Agreement),

 

OF THE SECOND PART.

 

WHEREAS:

 

(A)                              By the
Credit Agreement, the European Lenders have agreed to make available to the
European Borrower certain facilities on the terms referred to in the Credit
Agreement and for the purposes therein mentioned.

 

(B)                                Pursuant
to the European Guarantee Agreement, the Pledgor has granted a guarantee, on
the terms and subject to the limitations referred to in the European Guarantee
Agreement.

 

(C)                                As security
for the due performance of the European Obligations, the Pledgor has agreed to
create a pledge over the financial instruments account (compte d’instruments financiers)
opened in the books of the Company.

 

IT HAS BEEN AGREED AS FOLLOWS:

 

1.                                       DEFINITION
AND INTERPRETATION

 

1.1                                 Unless otherwise defined
herein, capitalised terms in this Agreement shall have the same meaning as set
out in the Credit Agreement (including in the preambule).  In this Agreement:

 

“Company” means Invensys Metering Systems
SAS, a French société par actions simplifiée
incorporated under the laws of France, whose registered office is at 290,

 

1

 

avenue du 8 Mai 1945, 69140 Rilleux la Pape,
registered with the Commercial and Companies Registry of Lyon under number
329 151 054.

 

“Credit Agreement” means the term,
revolving, letter of credit and swingline facility agreement entered into on 17
December 2003 by Sensus Metering Systems Inc., Sensus Metering Systems
(LuxCo 2) S.ÀR.L, Sensus Metering Systems (Bermuda 2) Ltd, Credit Suisse First
Boston as General Administrative Agent, U.S. Collateral Agent, European
Administrative Agent and European Collateral Agent and the Lenders named
therein.

 

“European Guarantee Agreement” means the guarantee agreement entered into on 17 December 2003 by
Sensus Metering Systems (LuxCo 2) S.ÀR.L., the Subsidiaries of Sensus Metering
Systems (LuxCo 2) S.ÀR.L. identified therein (including the Pledgor and the
Company), Sensus Metering Systems (Bermuda 3) Ltd, Sensus Metering Systems
(LuxCo 1) S.ÀR.L. and the European Collateral Agent.

 

“European Obligations” means all obligations of the Pledgor
toward the European Collateral Agent defined under the term “European  Obligations” in the European Guarantee
Agreement pursuant to Section 4.18 (Parallel
Debt) of the European Guarantee Agreement.

 

1.2                                 Words denoting the
singular shall include the plural and vice versa, words denoting one gender
shall include the other genders and words denoting persons shall include firms
and corporations and vice versa.

 

1.3                                 References in this
Agreement to any statutory provision shall be deemed also to refer to any
statutory modification or re-enactment thereof or any statutory instrument,
order or regulation made thereunder or under any such re-enactment.

 

1.4                                 References in this
Agreement to any other agreement shall be construed as a reference to that
other agreement as the same may from time to time be amended, varied,
supplemented or novated.

 

1.5                                 References in this
Agreement to the European Collateral Agent and the Pledgor shall include their
successors and permitted assigns.

 

1.6                                 Clause headings used in
this Agreement are for convenience of reference only and shall not affect the
construction of this Agreement.

 

2.                                       THE PLEDGE

 

2.1                                 In order to secure the
full and punctual payment, performance and discharge of all of the European
Obligations, the Pledgor hereby grants a pledge over and pledges the financial
instruments account (compte d’instruments financiers) opened
and maintained by the Company in its books in the name of the Pledgor (the “Pledged
Account” or the “Collateral”),
in favour of the European Collateral Agent (the “Pledge”) in accordance with
article L.431-4 of the French Financial and Monetary Code (Code
monétaire et financier) (the “Code”).

 

2

 

2.2                                 The Pledged Account shall
be credited with 375,000 shares of a face value of EUR 16 held by the Pledgor
in the Company representing 100% of the issued capital of the Company (the “Shares”)
and with any Pledgor’s rights, title, benefit and interest in all securities
derived from the Shares or created in substitution of the Shares or any
additional securities received in respect of the Shares by way of, without
limitation, share exchange, regrouping, division, free issue, subscription by
way of cash or otherwise, or by any other means, and, except as provided below
and under Clause 6.1 of this Agreement, with any dividends or proceeds
derived therefrom (the “Additional Assets”, and the Shares and the
Additional Assets shall be collectively referred to as the “Financial Instruments”).
Such Additional Assets shall automatically be included within the scope of the
Pledge. However, as provided under Clause 6.1 of this Agreement, the
Pledged Account shall not include the cash dividends, interest and other
monetary rights (fruits et produits en toute monnaie) attached to the Shares
(the “Cash
Proceeds”).

 

2.3                                 Should the Pledgor
acquire new shares or be attributed new financial instruments in the Company
not included in the Pledge, the Pledgor shall promptly (i) cause the Company to
credit them to the Pledged Account and procure that a record be made on the
register of share transfers (registre des mouvements de titres) of the
Company, and (ii) execute and deliver to the European Collateral Agent a
“statement of pledge over a financial instruments account” (déclaration de constitution de gage), and
procure that the Company delivers to the European Collateral Agent a
“certificate of pledge” (attestation de
constitution de gage) relating to these shares or financial
instruments.

 

2.4                                 The European Collateral
Agent shall take all steps, at the request of the Pledgor, to partially release
the Pledge to ensure that directors of the Company own or are lent a number of
shares in the Company necessary to comply with applicable laws. A partial
release of the Pledge may be requested by the Pledgor only to the extent (and
over a number of shares in the Company) necessary under applicable laws.

 

3.                                       PERFECTION
OF PLEDGE

 

3.1                                 The Pledgor will on the
date hereof execute a “statement of pledge over a financial instruments
account” (déclaration
de constitution de gage de compte d’instruments financiers) relating
to the Shares it holds in the Company in the form set out in Schedule 1
and shall procure the Company to deliver to the European Collateral Agent on
the date hereof a “pledge certificate” (attestation de constitution de gage) in
the form set out in Schedule 2, in compliance with article L.431-4 of
the Code.

 

3.2                                 The Pledgor procures that
the Shares is credited to the Pledged Account on the date hereof and that the
credit of the Shares to the Pledged Account is recorded in the register of
share transfers (registre des mouvements de titres) of the Company.

 

3.3                                 The Pledgor shall procure
that any Additional Assets shall be credited directly to the Pledged Account
immediately upon the Pledgor becoming the owner of the Additional Assets and
shall procure that the credit of such Additional Assets to the Pledged Account
is recorded in the register of share transfers (registre des mouvements de titres)
of the Company.

 

3

 

4.                                       REPRESENTATIONS
AND WARRANTIES

 

The Pledgor hereby represents and warrants upon
execution of this Agreement and as long as this Agreement and the Pledge shall
remain in force, that:

 

4.1                                 it is a company duly
incorporated and validly existing in its jurisdiction of incorporation with the
power to own its assets and carry on its business in all respects as it is
being conducted;

 

4.2                                 it has the right and
power to enter into this Agreement and to grant the Pledge, and all approvals
and authorisations necessary for the Pledgor to enter into this Agreement have
been obtained and no further approvals or authorisations are necessary for the
Pledgor to perform all its obligations under this Agreement;

 

4.3                                 it is the owner of all of
the Financial Instruments which are free and clear of any lien, option, charge,
encumbrance or other third party rights except with respect to Liens created
under this Agreement or permitted under Section 6.02 of the Credit
Agreement;

 

4.4                                 the Financial Instruments
are fully paid up;

 

4.5                                 there exists no option to
buy or right granted by the Pledgor to any person over all or part of the
Financial Instruments;

 

4.6                                 the Company has given its
consent to the Pledge and has agreed to have the European Collateral Agent as
potential shareholder, pursuant to a decision of its board of directors (conseil
d’administration);

 

4.7                                 once the “statement of
pledge over a financial instruments account” (déclaration de constitution de gage)
referred to in Clause 3.1 has been signed by the Pledgor, a valid nantissement
(pledge) will be created in favour of the European Collateral Agent
over the Pledged Account to secure the European Obligations; and

 

4.8                                 the Pledgor shall pledge
at all times in favour of the European Collateral Agent 100% of its
shareholding in the Company.

 

5.                                       UNDERTAKINGS

 

The Pledgor undertakes as long as this Agreement and the
Pledge shall remain in force, that:

 

5.1                                 it will not place or
permit any Financial Instruments to be placed in an account other than the
Pledged Account;

 

5.2                                 it shall not, without the
prior consent (not to be unreasonably withheld or delayed) of the European
Collateral Agent, (i) assign, transfer, exchange or otherwise dispose of any of
the Financial Instruments or (ii) incur or create or permit to subsist any
third party interests (including encumbrances, pre-emptive rights, options and
similar arrangements) with respect to any of the Financial Instruments. If such
consent is granted, the European Collateral Agent shall promptly sign all
documents and instruments necessary for the release of the security interest
created hereunder over

 

4

 

any Financial Instruments to be transferred or encumbered in
accordance with this Clause 5.2;

 

5.3                                 it shall take all the
reasonably necessary steps to defend its rights in respect of each of the
Financial Instruments against any claim or demand of any person in order to
safeguard the rights of the European Collateral Agent over the Pledged Account
and shall promptly keep the European Collateral Agent informed of any such
claim or demand;

 

5.4                                 it shall at all times, at
its expense, promptly approve, execute and deliver (or procure to be approved,
executed and delivered) all decisions, instruments and documents, and take (or
procure) all actions as may be reasonably necessary or appropriate, or as the
European Collateral Agent may reasonably require, to perfect or protect any
security interest granted or purported to be granted hereby or to enable the
European Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to the Pledged Account;

 

5.5                                 it shall not exercise the
voting rights attached to any of the Financial Instruments in a way which would
be likely to materially adversely affect any of the rights of the European
Collateral Agent under this Agreement or the value of the Pledge created over
the Pledged Account by virtue of this Agreement; and

 

5.6                                 it shall procure that the
Company shall provide to the European Collateral Agent, upon demand, any
information as the European Collateral Agent may reasonably require, reports
and records in respect of the Pledged Account, including a “certificate of
pledge” (attestation
de
constitution de gage) and the Pledgor shall sign all documents and
take all actions reasonably necessary in relation thereto.

 

6.                                       DIVIDENDS

 

6.1                                 Provided that no Event of
Default has occurred and is continuing, the Pledgor shall be entitled to
receive all Cash Proceeds distributed by the Company.

 

6.2                                 After an Event of Default
has occurred and as long as such Event of Default is continuing, the Pledgor
shall ensure that the Company pays all Cash Proceeds to the European Collateral
Agent. The European Collateral Agent shall retain those amount as part of its
own patrimony, as a gage-espèces,
and, upon enforcement of the Pledge in accordance with Clause 7 (Remedies upon Default) of this Agreement,
the European Collateral Agent shall apply such amount to the payment of the
European Obligations in accordance with the Credit Agreement.

 

7.                                       REMEDIES
UPON DEFAULT

 

7.1                                 Upon the occurrence and
during the continuation of an Event of Default and if a notice of termination
and acceleration of the Loans then outstanding has been delivered by the
General Administrative Agent in accordance with Article VII (Events of Default) of the Credit
Agreement, the European Collateral Agent may exercise, in addition to all other
rights and remedies granted to it under any other instrument or agreement
securing, evidencing or relating to the European Obligations, all rights and
remedies available to

 

5

 

a secured party under the laws of France in respect of the
Pledged Account; in particular, the European Collateral Agent may enforce the
Pledge by requesting either (i) the attribution by a court, in whole or in
part, of the Financial Instruments to the European Collateral Agent in
accordance with the attribution judiciaire procedure pursuant
to article 2078 of the French Civil Code or (ii) the public sale (vente
publique) of the Financial Instruments pursuant to
article L.521-3 of the French Commercial Code, as the European Collateral
Agent may choose.

 

7.2                                 Following the exercise of
any of the remedies set out in Clause 7.1, all sums (including without
limitation the Cash Proceeds) received from time to time by the European
Collateral Agent, in respect of any sale, collection, or other realisation of
all or any part of the Financial Instruments and the Cash Proceeds, shall be
applied by the European Collateral Agent to the payment of the European
Obligations in the order provided in the Credit Agreement.

 

8.                                       COSTS
AND EXPENSES

 

The Pledgor undertakes, on demand of the European
Collateral Agent, to indemnify the European Collateral Agent against all
reasonable and documented costs and expenses (including legal fees) and all
charges, duties or taxes relating thereto, incurred by the European Collateral
Agent in relation to the execution and enforcement of this Agreement (except in
case of gross negligence, wilful misconduct or bad faith of the European
Collateral Agent) as provided in Section 4.06 of the European Guarantee Agreement.

 

9.                                       TERMINATION

 

This Agreement shall terminate only when the Pledgor
has no further liability in respect of the European Obligations and the
European Guarantee Agreement has terminated, notwithstanding the liquidation,
bankruptcy, insolvency or reorganisation of the Pledgor or any other fact or
contingency whatsoever but subject to applicable bankruptcy, insolvency,
reorganisation or other similar laws. 
Upon termination of this Agreement, the interest of the European
Collateral Agent over the Pledged Account shall terminate. Only once
termination has occurred, at the request of the Pledgor, accompanied by such
certificates, opinions, instruments and other documents as the European
Collateral Agent may reasonably require, the European Collateral Agent shall,
at the expense of the Pledgor, promptly execute any necessary instrument
acknowledging the satisfaction and discharge of this Agreement, and shall
promptly execute and deliver all such further instruments and documents, as may
be reasonably necessary or appropriate, including the delivery of a letter to
be given by the European Collateral Agent to the Pledgor for the purpose of mainlevée,
in respect of the Pledge.

 

6

 

10.                                 WAIVER
– REMEDIES CUMULATIVE

 

10.1                           No failure to exercise
nor any delay in exercising on the part of the European Collateral Agent any
right or remedy under this Agreement shall operate as a waiver thereof nor
shall any single or partial exercise of any right or remedy prevent any further
or other exercise thereof or the exercise of any other right or remedy.

 

10.2                           The rights and remedies
provided for in this Agreement are cumulative and not exclusive of any rights
or remedies provided by law.

 

11.                                 BENEFIT
OF THE PLEDGE

 

11.1                           The security constituted
by this Agreement shall not be considered as satisfied or discharged or
prejudiced by any intermediate payment, satisfaction or settlement of any part
of the European Obligations.

 

11.2                           The security created by
this Agreement shall be in addition to, and shall not in any way be prejudiced
or affected by, and shall be without prejudice to, any other security or
guarantee from time to time held by the European Collateral Agent in respect of
the European Obligations or any part thereof.

 

11.3                           This Agreement shall be
binding on and inure to the benefit of the parties hereto and their respective
permitted successors, assigns and transferees under the terms of the Credit
Agreement.

 

11.4                           The Pledgor may not
assign or transfer or purport to assign or transfer any or all of its rights
and/or obligations under this Agreement without the prior written consent of
the European Collateral Agent.

 

12.                                 AMENDMENTS

 

This Agreement may not be amended, modified or waived except
with the written consent of the Pledgor and the European Collateral Agent.

 

13.                                 NOTICES

 

Any communication or document to be made or delivered
by one person to another pursuant to this Agreement shall be made or delivered
to that other person in accordance with Section 9.01  (Notices) of the Credit
Agreement.

 

14.                                 SEVERABILITY
OF PROVISIONS

 

If, at any time, any provision of this Agreement is or
becomes illegal, invalid or unenforceable in any respect in any jurisdiction,
neither the legality, validity or enforceability of the remaining provisions
nor the legality, validity or enforceability of such provision under the law of
any other jurisdiction will in any way be affected or impaired.

 

15.                                 GOVERNING
LAW

 

This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of France.

 

7

 

16.                                 JURISDICTION

 

The parties hereto submit to the exclusive
jurisdiction of the Tribunal de commerce de Paris to settle
any disputes which may arise out of or in connection with this Agreement. This
choice of jurisdiction is for the benefit of the European Collateral Agent
only. The European Collateral Agent shall also be entitled to take action
against the Pledgor in any other court of competent jurisdiction.

 

 

Signed on 17
December 2003,

in three (3) original copies.

 

 

	
  FINANCIERE POLLUX

  	
   

  
	
   

  	
   

  
	
  The Pledgor

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CREDIT SUISSE FIRST BOSTON, acting

  through its London Branch

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The European
  Collateral Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
  By:

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  Signature:
  

  	
   

  	
   

  
							

 

8

 

SCHEDULE 1

Déclaration de gage de compte d’instruments financiers

 

(Soumise aux dispositions de l’article L.431-4 du Code monétaire et
financier)

 

1.                                      Constituant du Gage

 

Financière Pollux, une
société anonyme de droit français dont le siège social est situé à 14, rue de
Moscou, 75008 Paris et immatriculée au registre du commerce et des sociétés de
Paris  sous
le numéro 349 007 120, constitue en gage le compte d’instruments financiers
décrit ci-dessous selon les termes et conditions de l’acte de nantissement de
compte d’instruments financiers intitulé “Pledge Agreement” signé en date de ce jour
en langue anglaise entre le Constituant du Gage et le Créancier Gagiste.

 

2.                                      Société Emettrice

 

Invensys Metering Systems
SAS,  une
société par actions simplifiée dont le siège social est situé 290, avenue du 8
Mai 1945, 69140 Rilleux la Pape et immatriculée au registre du commerce et des
sociétés de Lyon sous le numéro 329 151 054.

 

3.                                      Eléments d’identification du compte spécial constitué en
gage prévu à l’article L.431-4 du code monétaire et financier

 

•                      Teneur
de Compte : la Société Emettrice

 

•                      Numéro
de compte : 1 bis

 

4.                                      Instruments financiers définis par l’article L.211-1
du Code monétaire et financier inscrit dans le compte spécial constitué en gage

 

•                      Nature
:                                  actions
de valeur nominale de EUR 16  chacune

 

•                      Forme :                                     nominative

 

•                      Nombre
:                            375.000

 

5.                                      Créancier Gagiste

 

Credit Suisse First
Boston, un établissement de crédit de droit suisse, agissant
par l’intermédiaire de sa succursale à Londres  dont le siège social est
situé One Cabot Square, London E14 4QG, United Kingdom, agissant en qualité
d’Agent des Sûretés (Collateral Agent),
en son nom propre au titre des stipulations de la section 4.18 (Parallel Debt) du European Guarantee Agreement, aux termes
du contrat de crédit en date de ce jour défini sous le terme “Credit Agreement” dans l’acte de
nantissement relatif à la présente déclaration de gage (ou tout autre European Collateral Agent qui lui serait
substitué).

 

9

 

6.                                      Obligations garanties

 

Toutes les obligations de paiement,
quelles qu’elles soient, du Constituant du Gage (Pledgor) envers le Créancier
Gagiste (Collateral
Agent), décrites sous le terme “European Obligations” dans l’acte de
nantissement de compte d’instruments financiers intitulé “Pledge Agreement” signé en
langue anglaise en date de ce jour entre le Constituant du Gage et le Créancier
Gagiste et relatif à cette déclaration de gage.

 

 

le 17 décembre 2003

en un (1) exemplaire original.

 

 

	
  FINANCIERE POLLUX

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  représentée par :

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  
				

 

 

10

 

Translation for information purposes only

 

 

Statement of Pledge over a
Financial Instruments Account

 

(Subject
to the provisions of article L.431-4 of the French Financial and Monetary
Code)

 

1.                                      Pledgor

 

Financière Pollux, a company incorporated under the laws of France whose registered
office is at 14, rue de Moscou, 75008 Paris and registered with the Commercial
and Companies Registry of Paris under number 349 007 120, grants a pledge over
the special account described below under the terms and conditions of the
Pledge Agreement entered into on the date hereof between the Pledgor and the
Beneficiary of the Pledge.

 

2.                                      Issuing Company

 

Invensys Metering Systems SAS, a French société par
actions simplifiée whose registered office is at 290, avenue
du 8 Mai 1945, 69140 Rilleux la Pape and registered
with the Commercial and Companies Registry of Lyon under number 329 151 054.

 

3.                                      Details concerning the special account required by
article L.431-4 of the French Financial and Monetary Code

 

•                      Account Holder:
the Issuing Company

 

•                      Account number:
1 bis

 

4.                                      Financial Instruments defined by article L.211-1 of the French
Financial and Monetary Code registered in the special account pledged

 

•                      Nature:                                     shares with a par value of EUR 16 each

 

•                      Form:                                              registered shares

 

•                      Number:                               375,000

 

5.                                      Beneficiary of the Pledge

 

Credit Suisse First Boston, a credit institution incorporated
under the laws of Switzerland, acting through its London branch whose
registered office is at One Cabot Square, London E14 4QG, United Kingdom,
acting as European Collateral Agent in accordance with the provisions of the
Credit Agreement as defined in the Pledge Agreement entered into on the date
hereof between the Pledgor and the Beneficiary of the Pledge.

 

11

 

6.                                      European Obligations

 

All the payment obligations payable by the Pledgor to
the Beneficiary of the Pledge described as the “European Obligations” in the
Pledge Agreement entered into on the date hereof between the Pledgor and the
Beneficiary of the Pledge.

 

 

on 17
December 2003,

in one (1) original copy

 

 

	
  FINANCIERE POLLUX

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  represented
  by:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  
				

 

12

 

SCHEDULE 2

Attestation de constitution de gage

 

(Soumise aux dispositions de l’article L.431-4 du Code monétaire et
financier)

 

Invensys Metering Systems SAS, certifie et atteste, par la présente,
que les 375.000 actions détenues par Financière Pollux (le “Constituant”)
désignées dans la déclaration de constitution de gage de compte d’instruments
financiers signée le 17 décembre 2003 par le Constituant et inscrites au compte
d’instruments financiers visé à l’article L.431-4 du Code monétaire et
financier affecté en nantissement au profit du Créancier Gagiste (European Collateral Agent), en garantie
des obligations du Constituant décrites dans l’acte de nantissement de compte
d’instruments financiers intitulé “Pledge Agreement” signé en langue anglaise
en date de ce jour entre le Constituant et le Créancier Gagiste, ont été virées
au compte spécial de nantissement n° 1 bis ouvert au nom du
Constituant.

 

Une copie certifiée conforme de ce compte spécial faisant apparaître ces
virements est annexée à la présente attestation de constitution de gage.

 

 

Le 17 décembre 2003

en un (1) exemplaire original.

 

 

	
  Invensys Metering Systems SAS

  	
   

  
	
   

  	
   

  
	
  Teneur de Compte

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature :

  	
   

  	
   

  	
   

  
				

 

 

 

P.J. Copie du compte d’actionnaire spécial

 

13

 

Translation for information purposes only

 

 

Pledge Certificate

 

(Subject
to the provisions of article L.431-4 of the French Financial and Monetary
Code)

 

 

Invensys Metering Systems SAS, hereby certifies and attests that the 375,000 shares held by
Financière Pollux (the “Pledgor”),
referred to in the statement of pledge over the financial instruments account
signed on 17 December 2003 by the Pledgor and registered in the financial
instruments account as defined by article L.431-4 of the French Financial
and Monetary Code is pledged in favour of the European Collateral Agent as
security for the Pledgor’s obligations described in the pledge agreement entered
into on the date hereof between the Pledgor and the European Collateral Agent,
have been registered in the special account n° 1 bis opened in the name of the Pledgor.

 

A copy
certified as a true copy of the share register evidencing this transfer is
attached to the present Pledge Certificate.

 

 

on 17
December 2003,

in one (1)
original copy

 

	
  Invensys Metering Systems SAS

  	
   

  
	
   

  	
   

  
	
  Account
  Holder

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  
				

 

14EXHIBIT 10.7

 

SENSUS METERING SYSTEMS (BERMUDA 1) LTD.

 

 

SHAREHOLDERS AGREEMENT

 

 

Dated as of December 17, 2003

 

 

 

TABLE OF CONTENTS

(Not Part of Agreement)

 

	
  ARTICLE I

  	
   

  
	
  Certain Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  1.1

  	
  As
  used in this Agreement, the following terms shall have the following
  respective meanings:

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.2

  	
  Other Interpretive Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
  Corporate Governance

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  Board of Directors

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.2

  	
  Vacancies

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.3

  	
  Covenant to Vote

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.4

  	
  Restrictions On Other Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.5

  	
  Matters Requiring Super-Majority Approval

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.6

  	
  Additional Management Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
  Transfers of Shares

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Restrictions on Transfer

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.2

  	
  Exceptions to Restrictions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.3

  	
  Endorsement of Certificates

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.4

  	
  Transfers to Competitors; Other Transfers

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  3.5

  	
  Improper
  Transfer

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
  Rights of First Offer; New Securities; Tag
  Along Rights; Drag Along Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Transfers by a Shareholder

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.2

  	
  Transfer of Offered Shares to Third Parties

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.3

  	
  Purchase of Offered Shares

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.4

  	
  Waiting Period with Respect to Subsequent
  Transfers

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.5

  	
  Right of First Refusal for New Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.6

  	
  Right to Join in Sale

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.7

  	
  Drag Along

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.8

  	
  Legally Binding Obligation; Power of
  Attorney; Personal Rights

  	
   

  

 

i

 

	
  ARTICLE V

  	
   

  
	
  Registration Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Shelf Registration

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.2

  	
  Demand Registrations

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.3

  	
  Piggyback Registration.

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.4

  	
  Registration Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.5

  	
  Underwritten Offerings

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.6

  	
  Registration Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.7

  	
  Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.8

  	
  Rules 144 and 144A and Regulation S

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.9

  	
  Adjustments

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.10

  	
  Other Provisions Regarding Registration
  Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.11

  	
  Holdback Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
  Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
  Tax Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Elections

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.2

  	
  Luxco 2 Borrowing

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.3

  	
  Tax Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.4

  	
  Tax Matters Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.5

  	
  Tax
  Allocations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
  Representations and Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Existence; Authority; Enforceability

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.2

  	
  Absence of Conflicts

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.3

  	
  Consents

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.1

  	
  Independent Auditors; Books and Records;
  Inspection

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.2

  	
  Waiver by Shareholders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.3

  	
  Freedom to Pursue Opportunities

  	
   

  

 

ii

 

	
  Section 9.4

  	
  Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.5

  	
  Publicity and Confidentiality

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.6

  	
  Acknowledgment

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.7

  	
  Successors and Assigns; Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.8

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.9

  	
  Amendment and Modification; Waiver of
  Compliance; Conflicts

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.10

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.11

  	
  Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.12

  	
  Entire Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.13

  	
  Inspection

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.14

  	
  Recapitalizations, Exchanges, Etc., Affecting the Common Shares; New
  Issuances

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.15

  	
  LITIGATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.16

  	
  Counterparts

  	
   

  

 

iii

 

	
   

  	
  EXHIBITS

  
	
   

  	
   

  
	
  Exhibit
  A

  	
  Shareholder
  Schedule

  
	
   

  	
   

  
	
  Exhibit
  B

  	
  Form
  of Resolute Subscription Agreement

  
	
   

  	
   

  
	
  Exhibit
  C

  	
  Form
  of Goldman Subscription Agreement

  
	
   

  	
   

  
	
  Exhibit
  D

  	
  Form
  of Amended and Restated Bye-Laws of the Company

  
	
   

  	
   

  
	
  Exhibit
  E

  	
  Form
  of Management Consulting Agreement

  
	
   

  	
   

  
	
  Exhibit
  F

  	
  Form
  of Proxy

  

 

iv

 

SHAREHOLDERS AGREEMENT

 

THIS SHAREHOLDERS
AGREEMENT, dated as of December 17, 2003 (this “Agreement”), is by and
among Sensus Metering Systems (Bermuda 1) Ltd., a company organized under the
laws of Bermuda (the “Company”), The Resolute SIE, L.P., a British
Virgin Islands limited partnership (which, for the avoidance of doubt, shall be
construed to be the partners as may from time to time constitute the
partnership), The Resolute Fund Netherlands PV I, L.P., a Delaware limited
partnership, The Resolute Fund Netherlands PV II, L.P., a Delaware limited
partnership, The Resolute Fund NQP, L.P., a Delaware limited partnership, The
Resolute Fund Singapore PV, L.P., a Delaware limited partnership, GS Capital
Partners 2000, L.P., a Delaware limited partnership (“GS 2000”), GS
Capital Partners 2000 Offshore, L.P., a Cayman Islands exempted limited
partnership, GS Capital Partners 2000 GmbH & Co. Beteiligungs KG, a Cayman
Islands limited partnership, GS Capital Partners 2000 Employee Fund, L.P., a
Delaware limited partnership and Goldman Sachs Direct Investment Fund 2000,
L.P., a Delaware limited partnership.

 

W  I  T  N  E  S
S  E  T  H:

 

WHEREAS, on
the date hereof, the Company is authorized by its memorandum of association and
Bye-Laws to issue an aggregate of 48,320,000 shares, consisting of
(i) 40,000,000 class a common shares, par value U.S. $0.01 per share (the
“Class A Common Shares”); (ii) 8,000,000 class b common shares, par
value U.S. $0.01 per share (the “Class B Common Shares”);
(iii) 160,000 series A redeemable preference shares, par value $0.01 per
share (the “Series A Preference Shares”) and (iv) 160,000 preference
shares of par value $0.01 per share (the “Preference Shares”) and each
of the classes of Shares has the respective voting powers, designations,
preferences and relative, participating, optional and other special rights and
the qualifications, limitations and restrictions set forth with respect thereto
in the Bye-Laws; and

 

WHEREAS, as of
the date hereof and after giving effect to the transactions contemplated
hereby, the Shareholders (as defined below) will beneficially own the number of
Shares as set forth in the Shareholder Schedule attached as Exhibit A
hereto (the “Shareholder Schedule”);

 

WHEREAS, the
Company has entered into the Resolute Investors Subscription Agreement, dated as
of the date hereof and in substantially the form of Exhibit B
attached hereto (as amended, restated or otherwise modified from time to time,
the “Resolute Subscription Agreement”), by and among the Company and the
Resolute Investors, pursuant to which the Resolute Investors are purchasing
26,000,000 Common Shares and 104,000 Series A Preference Shares;

 

WHEREAS, the
Company has entered into the Goldman Subscription Agreement, dated as of the
date hereof, between the Company and the Goldman Investors, in substantially
the form of Exhibit C attached hereto (as amended, restated or
otherwise modified from time to time, the “Goldman Subscription Agreement”),
pursuant to which the Goldman Investors are purchasing 13,000,000 Common Shares
and 52,000 Series A Preference Shares;

 

 

WHEREAS, the
parties hereto deem it in their best interests and in the best interests of the
Company to set forth their respective rights and obligations in connection with
their investment in the Company;

 

WHEREAS, the
parties hereto also desire to restrict the sale, assignment, transfer,
encumbrance or other disposition of certain shares of the Company, including
issued and outstanding Common Shares and Series A Preference Shares, and to
provide for certain rights and obligations in respect thereto as hereinafter
provided;

 

NOW,
THEREFORE, in consideration of the mutual agreements and understandings set
forth herein, the parties hereto hereby agree as follows:

 

ARTICLE I

Certain Definitions

 

Section 1.1  As used in this Agreement, the following
terms shall have the following respective meanings:

 

“Adverse
Disclosure” shall mean public disclosure of material non-public information
which, in the Board of Directors’ good faith judgment, after consultation with
independent outside counsel to the Company, (i) would be required to be
made in any Registration Statement filed with the SEC by the Company so that
such Registration Statement would not be materially misleading; (ii) would
not be required to be made at such time but for the filing of such Registration
Statement; and (iii) the Company has a bona  fide business
purpose for not disclosing publicly.

 

“Affiliate”
shall mean, with respect to any Person, any other Person that directly or
indirectly controls, is controlled by, or is under common control with, such
Person.  For these purposes, “control”
shall mean the possession, direct or indirect, of the power to direct or cause
the direction of the management and policies of such Person, whether through
the ownership of voting securities, by contract or otherwise.

 

“Affiliate
Transaction” shall have the meaning specified in Section 2.6.

 

“Agreement”
shall mean this Agreement as in effect on the date hereof and as hereafter from
time to time amended, modified or supplemented in accordance with the terms
hereof.

 

“Bermuda 2”
shall have the meaning specified in Section 2.1(e).

 

“Bermuda 3”
shall have the meaning specified in Section 2.1(e).

 

“Blue Sky”
shall mean state securities regulation and requirements.

 

“Board of
Directors” shall mean the Board of Directors of the Company, as duly
constituted in accordance with this Agreement, or any committee thereof duly
constituted in accordance with this Agreement, the Bye-laws and applicable law
and duly authorized to make the relevant determination or take the relevant
action.

 

2

 

“Breaching
Drag-Along Shareholder” shall have the meaning specified in Section
4.7(d).

 

“Breaching
Shareholder” shall have the meaning specified in Section 2.1(g).

 

“Business”
means the business of providing the following products and services for
metering and communication by or for utilities or residential/commercial
submetering entities of water, gas, electricity and heat consumption by their
customers:

 

(A)                              Residential Water Meters
(Velocity, Positive Displacement, Piston or otherwise);

(B)                                Commercial / Industrial
Water Meters (Turbine, Combination, Propeller, Irrigation, Fire Hydrant, Fire
Service, or otherwise);

(C)                                Sub Meters - Water,
Gas, Electric and Heat;

(D)                               Residential Gas Meters
(Diaphragm and Ultrasonic);

(E)                                 Intermediate and Large
Capacity Gas Meters (Diaphragm and Ultrasonic);

(F)                                 Turbine Gas Meters;

(G)                                Pressure Regulation
Products;

(H)                               Correlative Natural Gas,
Energy and Density Measurement Products;

(I)                                    Residential and
Polyphase Solid State Electricity Meters;

(J)                                   Heat Meters
(Velocity and Ultrasonic);

(K)                               Heat Integrators;

(L)                                 Bulk Hot Water Meters;

(M)                            Automatic Meter Reading
Devices or Systems for any of the foregoing;

(N)                               Meter Test Equipment for
any of the foregoing;

(O)                               Instrumentation for any
of the foregoing;

(P)                                 Meter accuracy testing
and recalibration services;

(Q)                               Project management
services related to Metering and AMR activities; and the business of providing
other products and services as follows:

(R)                                Pipe Repair, Pipe
Tapping and Pipe Joining Products;

(S)                                 High Pressure, Low
Porosity Aluminum Die Castings;

(T)                                Services to utilities
related to the procurement, testing, repair and management of meter population;
and

(U)                               Software applications
sold, licensed or offered as a service to utilities and used to manage billing
and meter data management for utilities and submetering entities.

 

“Bye-Laws”
shall mean the Bye-Laws of the Company as amended and in effect on the date
hereof, substantially in the form of Exhibit D hereto, and as hereafter
further amended in accordance with the terms hereof and pursuant to applicable
law.

 

“Change of
Control” shall mean the occurrence of any of the following:  (a) the closing of any merger,
amalgamation, combination, consolidation or similar business transaction
involving the Company in which the holders of Common Shares immediately prior
to such closing are not the holders, directly or indirectly, of a majority of
the Voting Securities of the surviving or continuing Person in such transaction
or its ultimate controlling Person immediately after such closing; (b) the
closing of any sale or transfer by the Company or its Subsidiaries of all or
substantially all of the Company’s assets to an acquiring Person in which the holders
of

 

3

 

Common Shares immediately prior
to such closing are not the holders of a majority of the Voting Securities of
the acquiring Person or its ultimate controlling Person immediately after such
closing; (c) the closing of any sale by the holders of Common Shares
(other than any sale to a Permitted Transferee) of an amount of Common Shares
that equals or exceeds a majority of the Common Shares issued and outstanding
immediately prior to such closing to a Person in which the holders of the
Common Shares immediately prior to such closing are not the holders of a
majority of the Voting Securities of such Person or its ultimate controlling
Person immediately after such closing.

 

“Class A
Common Shares” shall have the meaning specified in the Recitals.

 

“Class B
Common Shares” shall have the meaning specified in the Recitals.

 

“Code”
shall mean the United States Internal Revenue Code of 1986, as amended.

 

“Common
Shares” shall mean, collectively, the Class A Common Shares and Class B
Common Shares.

 

“Company”
shall have the meaning specified in the Preamble.

 

“Credit
Agreement” shall mean the Credit Agreement, dated as of December 17, 2003,
among Sensus Metering Systems Inc., a Delaware corporation, LuxCo 2, Sensus
Metering Systems (Bermuda 2) Ltd., a company organized under the laws of
Bermuda, the Lenders (as defined therein), Credit Suisse First Boston, as
administrative and collateral agent for the lenders as such agreement may be
amended, waived or otherwise modified from time to time.

 

“Date of
Delivery” means, for purposes of Article IV, the date that a
particular notice is received or deemed to be received in accordance with Section
9.10.

 

“Demand
Notice” shall have the meaning specified in Section 5.2(e).

 

“Demand
Period” shall have the meaning specified in Section 5.2(d).

 

“Demand
Registration” shall have the meaning specified in Section 5.2(a).

 

“Demand
Registration Statement” shall have the meaning specified in Section
5.2(a).

 

“Demand
Suspension” shall have the meaning specified in Section 5.2(g).

 

“Disposing
Shareholder” shall have the meaning specified in Section 4.6(a).

 

“Drag-Along
Buyer” shall have the meaning specified in Section 4.7(a).

 

“Drag-Along
Notice” shall have the meaning specified in Section 4.7(a).

 

“Drag-Along
Proxy Holder” shall have the meaning specified in Section 4.7(f).

 

“Drag-Along
Shareholder” shall have the meaning specified in Section 4.7(a).

 

4

 

“Exchange
Act” shall mean the U.S. Securities Exchange Act of 1934, as amended, or
any similar federal statute then in effect, and a reference to a particular
section thereof shall include a reference to the comparable section, if any, of
such similar federal statute.

 

“Executive
Employment Agreements” means Employment and Non-Interference Agreements
among Sensus Metering Systems, Inc., an indirect wholly-owned subsidiary of the
Company, and each of Dan Harness and Peter Mainz having the terms and
conditions described in the Offering Memorandum dated December 11, 2003
relating to the Notes issued pursuant to the Indenture.

 

“First
Offer Price” shall have the meaning specified in Section 4.1(a).

 

“GAAP”
shall mean the generally accepted accounting principles in the United States of
America in effect from time to time, applied on a consistent basis both as to
classification of items and amounts.

 

“Goldman
Directors” shall have the meaning set forth in Section 2.1(a)(ii).

 

“Goldman
Investors” shall mean the Persons signatories to the Goldman Subscription
Agreement and any Permitted Transferee of any of them who becomes a Shareholder
in accordance with the terms hereof.

 

“Goldman
Letter Agreement” means that certain letter agreement, dated the date
hereof, among Sensus Metering Systems Inc., Goldman Sachs & Co., and The
Jordan Company, L.P. relating to the Management Consulting Agreement.

 

“Goldman
Subscription Agreement” shall have the meaning set forth in the Recitals.

 

“GS 2000”
shall have the meaning specified in the recitals.

 

“Holder”
means any holder of Registrable Securities who is a party hereto or who
succeeds to rights here under this Agreement.

 

“Indebtedness”
shall have the meaning set forth in the Credit Agreement.

 

“Indemnified
Party” shall have the meaning specified in Section 9.4.

 

“Indenture”
shall mean The Indenture, dated as of December 17, 2003, relating to the Senior
Subordinated Notes of Sensus Metering Systems Inc., as such indenture may be
amended, waived or otherwise modified from time to time.

 

“Investment”
shall mean, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition
of capital stock or other securities of another Person, (b) a loan,
advance or capital contribution to, guarantee or assumption of debt of, or
purchase or other acquisition of any other debt or equity participation or
interest in, another Person, including any partnership or joint venture
interest in such other Person, or (c) the purchase or other acquisition (in
one transaction or a series of transactions) of assets of another Person that
constitute a business unit.  The amount
of any

 

5

 

Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in
the value of such Investment.

 

“Loss”
shall have the meaning specified in Section 5.7(a).

 

“LuxCo 1”
shall mean Sensus Metering Systems (LuxCo 1) S.AR.L, a société en commandite
par actions, organized and existing under the laws of the Grand-Duchy of
Luxembourg.

 

“LuxCo 2”
shall mean Sensus Metering Systems (LuxCo 2) S.AR.L, a société en commandite
par actions, organized and existing under the laws of the Grand-Duchy of
Luxembourg.

 

“Majority
in Interest” means holders of Common Shares and Preferred Shares
representing a majority of the aggregate purchase price paid for such Shares.

 

“Management
Director” shall have the meaning set forth in Section 2.1(a)(iii).

 

“Management
Consulting Agreement” shall mean the Management Consulting
Agreement, of even date herewith, by and among The Jordan Company, L.P., a
Delaware limited partnership, and the Company and its Subsidiaries
substantially in the form attached hereto as Exhibit E, as amended,
restated or otherwise modified from time to time.

 

“Management
and Consultant Subscription Agreements” means Management Subscription
Agreements and Consultant Subscription Agreements, pursuant to which certain
directors, consultants, officers and employees of the Company may purchase
after the date hereof but no later than March 31, 2004, up to 1,000,000 Common
Shares and 4,000 Series A Preference Shares on the terms and conditions
described in the Offering Memorandum dated December 11, 2003 relating to the
Notes issued pursuant to the Indenture and such other terms (including, but not
limited to, preemptive rights and drag-along rights) as are approved by the
Board of Directors in accordance with this Agreement.

 

“Marketable
Securities” shall mean securities that are traded on an established
securities exchange or securities that are reported through an established
over-the-counter trading system or otherwise traded over-the-counter.

 

“Material
Adverse Change” shall mean (i) any general suspension of trading in, or
limitation on prices for, securities on any national securities exchange or in
the over-the-counter market in the United States; (ii) the declaration of a
banking moratorium or any suspension of payments in respect of banks in the
United States; (iii) a material outbreak or escalation of armed hostilities or
other international or national calamity involving the United States or the
declaration by the United States of a national emergency or war or a material
change in national or international financial, political or economic
conditions; and (iv) any event, change, circumstance or effect that is or is
reasonably likely to be materially adverse to the business, properties, assets,
liabilities, condition (financial or otherwise), operations, results of
operations or prospects of the Company and its Subsidiaries taken as a whole.

 

“NASD”
shall mean the National Association of Securities Dealers, Inc.

 

6

 

“Necessary
Action” shall mean, with respect to a specified result, all actions (to the
extent such actions are permitted by law) necessary to cause such result,
including (i) voting or providing a written consent or proxy with respect to
the Common Shares, (ii) causing the adoption of shareholders’ resolutions and
amendments to the organizational documents of the Company, (iii) causing
members of the Board of Directors (to the extent such members were nominated or
designated by the Person obligated to undertake the Necessary Action, and
subject to any fiduciary duties that such members may have as directors of the
Company) to act in a certain manner or other or causing them to be removed in
the event they do not act in such a manner, (iv) executing agreements and
instruments, and (v) making, or causing to be made, with governmental,
administrative or regulatory authorities, all filings, registrations or similar
actions that are required to achieve such result.

 

“New
Securities” shall have the meaning specified in Section 4.5(b).

 

“New
Securities Notice” shall have the meaning specified in Section 4.5(c).

 

“Notice of
Exercise” shall have the meaning specified in Section 4.1(b).

 

“Notice of
Intention” shall have the meaning specified in Section 4.1(a).

 

“Offered
Securities” shall have the meaning specified in Section 4.1(a).

 

 “Permitted Indebtedness” shall mean
any indebtedness permitted under the Credit Agreement or the Indenture.

 

“Permitted
Transferee” means (i) in the case of any Shareholder that is a
partnership or limited liability company, any general or limited partner,
member, or Affiliate of such Shareholder, (ii) in the case of any
Shareholder that is a corporation, any Person that owns a majority of the
voting stock of such Shareholder, or any Person that is a direct or indirect
wholly-owned Subsidiary of such Shareholder, (iii) in the case of any
Shareholder that is an individual, any successor by death or divorce,
(iv) in the case of any individual, any trust, partnership, limited
liability company or similar entity solely for the benefit of such individual
or such individual’s spouse or lineal descendants provided, that such
individual acts as trustee, general partner or managing member and retains the
sole power to direct the voting and disposition of such shares, or (v) in
the case of any Shareholder that is a trust whose sole beneficiaries are
individuals, such individuals or their spouses or lineal descendants; provided,
however, that a general partner, limited partner or member of a
Shareholder shall not be a Permitted Transferee under clause (i) prior to
a registered public offering meeting the standards set forth in
Section 5.5 unless (a) such Person is an Affiliate of the
transferring Shareholder or (b) the Transfer to such Person is required
under the applicable partnership agreement or limited liability company
agreement, as the case may be, and is made pro rata to all partners or members
thereunder.

 

“Person”
shall mean an individual, a corporation, company, limited liability company,
association, partnership, joint venture, organization, business, trust, or any
other entity or organization, including a government or any subdivision or
agency thereof.

 

“Piggyback
Registration” shall have the meaning specified in Section 5.3(a).

 

7

 

“Preemption
Notice” shall have the meaning specified in Section 5.2(f).

 

“Preference
Share” shall have the meaning specified in the first recital.

 

“Proposed
Purchaser” shall have the meaning specified in Section 4.6(b).

 

“Prospectus”
means the prospectus included in any Registration Statement, all amendments and
supplements to such prospectus, including post-effective amendments, and all
other material incorporated by reference in such prospectus.

 

“Proxy
Holder” shall have the meaning specified in Section 2.1(i).

 

“Public
Offering” shall mean a public offering and sale of equity securities of the
Company pursuant to an effective Registration Statement under the Securities
Act.

 

“Purchase
Agreement” shall mean the Stock Purchase Agreement, dated October 21, 2003,
by and among the sellers identified therein, Invensys plc and IMS Meters
Holdings, Inc.

 

“Purchase
Offer” shall have the meaning set forth in Section 4.6(b).

 

“Registrable
Securities” shall mean:

 

(a)                                all
Common Shares issued and outstanding on the date hereof and now or hereafter
owned of record by the Shareholders; and

 

(b)                                 any
Common Shares issued or issuable by the Company in respect of any Common Shares
referred to in the foregoing clause (a) by way of a share dividend, bonus
issue,  or share split or in connection
with a combination or subdivision of shares, reclassification,
recapitalization, merger, amalgamation, consolidation or other reorganization
of the Company.

 

As to any particular
Registrable Securities that have been issued, such securities shall cease to be
Registrable Securities when (i) a registration statement with respect to
the sale of such securities shall have become effective under the Securities
Act and such securities shall have been disposed of under such registration
statement, (ii) they shall have been distributed to the public pursuant to
Rule 144 under the Securities Act or (iii) they shall have ceased to be
outstanding.

 

“Registration
Expenses” shall have the meaning specified in Section 5.6.

 

“Registration
Statement” means any registration statement of the Company filed with, or
to be filed with, the SEC under the rules and regulations promulgated under the
Securities Act, including the related Prospectus, amendments and supplements to
such registration statement, including post-effective amendments, and all
exhibits and all material incorporated by reference in such registration
statement other than a registration statement (and related Prospectus) filed on
Form S-8 or any successor form thereto.

 

“Resolute
Directors” shall have the meaning specified in Section 2.1(a)(i).

 

8

 

“Resolute
Investors” shall mean the Persons signatories to the Resolute Investor
Subscription Agreement, and any Permitted Transferee of any of them who becomes
a Shareholder in accordance with the terms hereof.

 

“Resolute
Subscription Agreement” shall have the meaning specified in the Recitals.

 

“Restricted
Share Plan” means a restricted share plan to be adopted by the Company
permitting issuance of restricted shares for up to 5% of the issued and
outstanding Common Shares and  having
substantially the terms described in the Offering Memorandum, dated December
11, 2003 relating to the Notes issued pursuant to the Indenture and such other
terms as are approved by the Board of Directors in accordance with this Agreement.

 

“Sale
Proposal” shall have the meaning specified in Section 4.1(a).

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“Securities
Act” shall mean, as of any date, the U.S. Securities Act of 1933, as
amended, or any similar federal statute then in effect, and in reference to a
particular section thereof shall include a reference to the comparable section,
if any, of any such similar federal statute and the rules and regulations
thereunder.

 

“Selling
Shareholder” shall have the meaning specified in Section 4.1(a).

 

“Series A
Preference Shares” shall have the meaning specified in the Recitals.

 

“Shareholder”
shall mean any of the Resolute Investors and the Goldman Investors and any
Permitted Transferee of any such Person or other transferee who becomes a party
to or bound by the provisions of this Agreement in accordance with the terms
hereof.

 

“Shareholder
Schedule” shall have the meaning specified in the Recitals.

 

“Shares”
shall mean (a) the Common Shares and the Series A Preference Shares issued
and outstanding at the date hereof, and (b) any Common Shares, Series A
Preference Shares or other shares of the Company hereafter acquired by any
Shareholder, including pursuant to Article IV of this Agreement, or
pursuant to any convertible security, option, warrant or other right to acquire
Common Shares, Series A Preference Shares, Preference Shares or other shares of
the Company, whether or not held by them as of the date hereof.

 

“Shelf
Period” has the meaning set forth in Section 5.1(b).

 

“Shelf
Registration” means a registration effected pursuant to Section 5.1.

 

“Shelf
Registration Statement” means a Registration Statement of the Company filed
with the SEC on either (i) Form S-3 (or any successor form or other appropriate
form under the Securities Act) or (ii) if the Company is not permitted to file
a Registration Statement on Form S-3, an evergreen Registration Statement on
Form S-1 (or any successor form or other appropriate form under the Securities
Act), in each case for an offering to be made on a

 

9

 

continuous basis pursuant to
Rule 415 under the Securities Act (or any similar rule that may be adopted by
the SEC) covering the Registrable Securities, as applicable.

 

“Shelf
Suspension” has the meaning set forth in Section 5.1(c).

 

“Subsidiary”
shall mean as to any Person any other Person of which outstanding shares,
shares of stock or other equity interests having, voting power (other than
shares, stock or other equity interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors or
other comparable governing body of such Person are at the time owned, directly
or indirectly through one or more intermediaries, or both, by such Person.

 

“Tag Along
Securities” shall have the meaning specified in Section 4.6(a).

 

“Transaction
Agreements” shall mean this Agreement, the Resolute Subscription Agreement,
the Goldman Subscription Agreement, and any agreements related to any of the
foregoing, each as in effect on the date hereof or as subsequently amended,
restated or otherwise modified with the consent required pursuant to Section
2.5(a).

 

“Transfer”
shall have the meaning set forth in Section 3.1.

 

“Underwritten
Offering” means a Registration in which securities of the Company are sold
to an underwriter or underwriters on a firm commitment basis for reoffering to
the public.

 

“Voting
Securities” shall mean shares, stock or other equity interests in any
Person, the holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of corporate directors (or Persons performing
similar functions).

 

“Voting
Shares” shall mean shares of the Company of any class or classes, the
holders of which are ordinarily, in the absence of contingencies, entitled to
vote for the election of corporate directors (or Persons performing similar
functions).

 

Section
1.2  Other Interpretive Provisions.  (a) 
The meanings of defined terms are equally applicable to the singular and
plural forms of the defined terms.

 

(b)                                 The
words “hereof”, “herein”, “hereunder” and similar words
refer to this Agreement as a whole and not to any particular provision of this
Agreement; and any subsection and Section references are to this Agreement
unless otherwise specified.

 

(c)                                  The
term “including” is not limiting and means “including without
limitation.”

 

(d)                                 The
captions and headings of this Agreement are for convenience of reference only
and shall not affect the interpretation of this Agreement.

 

(e)                                  Whenever
the context requires, any pronouns used herein shall include the corresponding
masculine, feminine or neuter forms.

 

10

 

ARTICLE II

 

Corporate Governance

 

Section
2.1  Board of
Directors.  (a) The Shareholders
hereby agree that at all times after the date hereof, the Board of Directors of
the Company shall consist of not less than three (3) nor more than ten (10)
members.  Promptly after the date
hereof, the Shareholders shall take all Necessary Actions to elect or appoint,
or to cause the Board of Directors to approve and appoint, the designees
described below to be members of the Company’s Board of Directors:

 

(i)                                     four (4)
individuals designated by the Resolute Investors (the “Resolute Directors”),
which Resolute Directors initially shall be Jonathan F. Boucher, John W. Jordan
II, David W. Zalaznick, and Thomas H. Quinn;

 

(ii)                                  subject to Section
2.1(b), two (2) individuals designated by GS 2000 (the “Goldman
Directors”) which Goldman Directors initially shall be Douglas Londal and
Gerald Cardinale; and

 

(iii)                               one (1) individual
mutually designated by the Resolute Investors and GS 2000 who shall be a member
of the management of the Company and/or its Subsidiaries (the “Management
Director”), which Management Director initially shall be Dan Harness; provided,
however, in the event that (x) the Management Director ceases to be
employed by the Company or its Subsidiaries for any reason or (y) the Company
shall exercise its repurchase rights with respect to the Shares owned by the
Management Director pursuant to a Management and Consultant Subscription
Agreement, then the Shareholders shall promptly take all Necessary Actions to
cause the resignation or removal of the Management Director and elect or cause the
Board of Directors to approve and appoint, an individual mutually designated by
GS 2000 and the Resolute Investors then employed by the Company or its
Subsidiaries.

 

(b)                                 If,
at any time after the date hereof, the Goldman Investors own less than fifty percent
(50%) of each of the number of Common Shares and the number of Series A
Preference Shares owned by the Goldman Investors as of the date hereof (as
adjusted pursuant to any share splits, reverse share splits, share dividends,
recapitalizations or other similar events), then GS 2000 shall be entitled to
designate one (1) individual as a director under Section 2.1(a)(ii).  If at any time after the date hereof, the
Goldman Investors own less than twenty-five percent (25%) of each of the number
of Common Shares and the number of Series A Preference Shares owned by the
Goldman Investors as of the date hereof (as adjusted pursuant to any share
splits, reverse share splits, share dividends, recapitalizations or other
similar events), then GS 2000 will not be entitled to designate any directors
under Section 2.1(a)(ii).

 

(c)                                  Each
Shareholder hereby agrees to vote all Voting Shares owned or held of record by
such Shareholder at each annual or special meeting of Shareholders of the
Company at which Directors of the Company are to be elected, in favor of, or to
take all actions by written consent in lieu of any such meeting as are
necessary, or other Necessary Action, to cause, the election as members of the
Board of Directors of those individuals described in Section 2.1 in
accordance with, and to otherwise effect the intent of, the provisions of Section
2.1.  A Director may be

 

11

 

removed from
the Board of Directors only by the Shareholders entitled to designate such
Director pursuant to this Article II or pursuant to Section
2.1(b)(i);

 

(d)                                 The
appointment or nomination of any individual to the Board of Directors, other
than the Resolute Directors and Goldman Directors, shall be subject to the
approval of a majority of the Resolute Directors and Goldman Directors and,
unless agreed otherwise by GS 2000 and the Resolute Investors, shall not be an
Affiliate of any Goldman Investor or Resolute Investor.  Except as provided in this Section 2.1,
directors shall be elected by a plurality of the votes cast at annual meetings
of Shareholders, and each director so elected shall hold office until the next
annual meeting and until his successor is duly elected and qualified, or until
his earlier resignation or removal.  Any
director may resign at any time upon notice to the Company.  Directors need not be Shareholders.

 

(e)                                  The
Company shall take all Necessary Action to cause the persons constituting the
Board of Directors to be appointed as the sole members of the board of directors
of Sensus Metering Systems (Bermuda 2) Ltd., a company organized under the laws
of Bermuda (“Bermuda 2”), Sensus Metering Systems (Bermuda 3) Ltd., a
company organized under the laws of Bermuda (“Bermuda 3”) and Sensus
Metering Systems Inc., a Delaware corporation.

 

(f)                                    The
Company or Sensus Metering Systems Inc. as the case may be, shall reimburse the
directors for all reasonable out-of-pocket expenses incurred in connection with
their attendance at meetings of the Board, the board of directors of the
Company’s Subsidiaries and any committees thereof, including without limitation
travel, lodging and meal expenses.

 

(g)                                 If
any Shareholder fails to vote its Voting Shares or to provide a written consent
in accordance with the terms of Section 2.1 (each such Shareholder, a “Breaching
Shareholder”), the Shareholders and the Company shall take such action as
is necessary in accordance with the Bye-laws of the Company and Bermuda law to
convene a general meeting or to circulate written resolutions, the purpose of
which will be to propose for approval of the Shareholders such actions as are
necessary in order to ensure compliance with the provisions of Section 2.1
including, without limitation, the removal of a director elected or appointed
in contravention of Section 2.1.

 

(h)                                 Solely
for purposes of Section 2.1 and in order to secure the performance of
each Shareholder’s obligations under Section 2.1, each Shareholder
hereby: (i) appoints each Proxy Holder (as defined in Section 2.1(i))
acting severally the attorney-in-fact of such Shareholder (with full power of
substitution) for the purpose of signing written resolutions circulated
pursuant to Section 2.1(g) on behalf of such Shareholder; and (ii)
agrees on the date hereof to grant a proxy to each Proxy Holder in the form
attached hereto as Exhibit F for the purpose of voting the Voting Shares held
by such Shareholder at a general meeting convened pursuant to Section 2.1(g).  Each Shareholder acknowledges and agrees
that the power of attorney granted by such Shareholder pursuant to this Section
2.1 is coupled with an interest and is irrevocable, and that the proxy to
be granted pursuant to this Section 2.1 shall be coupled with an
interest and shall be irrevocable.

 

(i)                                     For
purposes of Section 2.1, each “Proxy Holder” shall be an
individual nominated for this purpose by any Shareholder whose designees to the
Board were required to be

 

12

 

approved by a
Breaching Shareholder pursuant to Section 2.1, and whose designees were
not so approved.

 

(j)                                     Each
Shareholder agrees to take such further action and to execute such other
instruments as may be necessary to effect the appointment of attorneys-in-fact
and proxies pursuant to this Section 2.1, and each Breaching Shareholder
hereby revokes any power of attorney or proxy previously granted by it with
respect to the matters set forth in Section 2.1 for purposes of,
respectively, any written resolutions circulated or any general meeting
convened pursuant to Section 2.1(g). 
Notwithstanding the foregoing, the power of attorney and the proxy
granted pursuant to this Section 2.1 shall terminate upon the
termination of Article II in accordance with its terms.

 

Section 2.2  Vacancies.  In the event that a vacancy is created on
the Board of Directors at any time by the death, disability, retirement,
resignation or removal of any member of the Board of Directors, or for any
other reason there shall exist or occur any vacancy on the Board of Directors,
each Shareholder hereby agrees to take such actions as will result in the
election or appointment as a director of an individual designated or elected to
fill such vacancy and serve as a director by the Shareholders that had,
pursuant to Section 2.1(a), designated or elected the director
whose death, disability, retirement, resignation or removal resulted in such
vacancy on the Board of Directors. 
During the period, from the time the vacancy is created until a new
director is designated pursuant to Section 2.1(a), the remaining
Resolute Directors, if such vacancy is for a Resolute Director, the remaining
Goldman Director, if such vacancy is for a Goldman Director, or the remaining
Resolute Directors and Goldman Directors, jointly, if such vacancy is for the
Management Director may appoint a replacement to act as a director until a new
director is duly elected.

 

Section
2.3  Covenant
to Vote.  Each Shareholder hereby
agrees to take all Necessary Action to call, or cause the Company and the
appropriate officers and directors of the Company to call, an annual meeting
(and when circumstances so require, a special meeting) of Shareholders of the
Company and to vote all Voting Shares owned or held of record by such
Shareholder at any such meeting and at any other annual or special meeting of
Shareholders in favor of, or take all actions by written consent in lieu of any
such meeting as may be necessary to cause, the election as members of the Board
of Directors of those individuals so designated in accordance with, and to
otherwise effect the intent of, this Article II.

 

Section
2.4  Restrictions
On Other Agreements.  No Shareholder
shall grant any proxy or enter into or agree to be bound by any voting trust
with respect to the Shares nor shall any Shareholder enter into any other
agreements or arrangements of any kind with any Person with respect to the
Shares on terms which conflict with the provisions of this Agreement (whether
or not such proxy, voting trust, agreements or arrangements are with other
Shareholders, holders of Shares that are not parties to this Agreement or
otherwise), including but not limited to, agreements or arrangements with
respect to the acquisition, disposition or voting of shares of Shares
inconsistent herewith.

 

13

 

Section
2.5  Matters Requiring
Super-Majority Approval.

 

(a)                                  The
Shareholders shall take all Necessary Action to cause the Company not to take,
and the Company shall not take, and shall take all Necessary Action to cause
the Company’s Subsidiaries not to take, any of the following actions without
the affirmative vote or written consent of a majority of each of the Resolute
Directors and Goldman Directors, respectively:

 

(i)                                     the appointment
of, or the approval of the retention, termination or change (including a change
in responsibilities) of the Chief Executive Officer and the Chief Financial
Officer (or officers with substantially equivalent responsibilities) and the
determination of or any change to salaries, wages, fringe benefits or other
compensation payable or to become payable to such officer (including any such
increase pursuant to any bonus, severance, termination, pension, profit-sharing
or other plan or commitment); it being acknowledged that the Goldman Directors
and the Resolute Directors approve of the retention of each of Dan Harness and
Peter Mainz as of the date hereof as Chief Executive Officer and Chief
Financial Officer of the Company, respectively;

 

(ii)                                  the sale by the
Company of shares pursuant to a registration statement (other than a registration
statement on Form S-8, or any successor form thereto) that is filed and
declared effective under the Securities Act;

 

(iii)                               any merger,
amalgamation, combination, consolidation or similar business transaction
involving the Company in which the holders of Common Shares immediately prior
to such closing are not the holders, directly or indirectly, of a majority of
the Voting Securities of the surviving or continuing Person in such transaction
or its ultimate controlling Person immediately after such closing;

 

(iv)                              any sale or transfer by
the Company of all or substantially all of its assets to an acquiring Person in
which the holders of Common Shares immediately prior to such closing are not
the holders of a majority of the Voting Securities of the acquiring Person or
its ultimate controlling Person immediately after such closing;

 

(v)                                 subject to Section
7.3(a)(i), the incurrence of any Indebtedness other than Permitted
Indebtedness;

 

(vi)                              the acquisition or
disposition of assets, in a transaction or a series of related transactions, in
excess of $15,000,000, whether through merger, amalgamation consolidation,
share exchange, business combination or otherwise;

 

(vii)                           the making of any
Investment, including in the capital stock, capital shares or other securities
of another Person, other than in a wholly-owned Subsidiary, or the entering
into, the amendment of or the modification of, any joint venture, partnership
or other similar arrangements, in each such case, providing for payments in
excess of $5,000,000;

 

(viii)                        the authorization, issuance or
repurchase of shares, options, warrants or other rights (including “phantom”
share or share appreciation rights) relating to equity

 

14

 

securities, or the allotment of unissued shares or rights or options to
or in respect of shares, or, the variation of any rights attaching to issued or
unissued shares, other than pursuant to the Restricted Share Plan or pursuant
to the Management and Consultant Subscription Agreements, the Resolute
Subscription Agreement or the Goldman Subscription Agreement;

 

(ix)                                the declaration of
dividends or distributions of any kind other than distributions or dividends
among any of its wholly-owned Subsidiaries and the Company and on the Series A
Preferred Shares or other series of preference shares issued in accordance with
this Agreement;

 

(x)                                   any voluntary
liquidation, bankruptcy, dissolution, recapitalization, reorganization, or
assignment to its creditors, or any similar transaction;

 

(xi)                                the entering into of
the Management and Consultant Subscription Agreements, entering into either of
the Executive Employment Agreements, the adoption of the Restricted Share Plan
and any material amendments thereto;

 

(xii)                             the makings or commitment
to make, capital expenditures relating to a project in excess of $7,500,000
other than any such commitment or expenditure contained in the Company’s annual
budget if the Goldman Directors voted affirmatively for the adoption of such
annual budget;

 

(xiii)                          the settlement of any
litigation, arbitration, or administrative proceeding for an amount in excess
of $7,500,000;

 

(xiv)                         any material amendment or the
modification of, or any supplement to, or any material change to or waiver of
the Credit Agreement which permits the borrowing of additional indebtedness
under the Credit Agreement or which changes the material economic and financial
terms of the Credit Agreement or any amendment or the modification of, or any
supplement to, the Indenture;

 

(xv)                            the amendment of, or any
change to or waiver of the provisions of, the (x) organizational documents of
the Company or any of its Subsidiaries, in a manner that is adverse to the
Goldman Investors and which is not pro rata to all other holders of Shares of
the class or series held by the Investors and affected by such amendment or
waiver or (y) any Transaction Agreement in a manner that is material and
adverse to the Goldman Investors; or

 

(xvi)                         the entering into of any line
of business not conducted by the Company or its Subsidiaries as of the date
hereof, including the Business, other than any line of business that is
complimentary, ancillary, similar or incidental to the Business.

 

(b)                                 If
at any time after the date hereof, the Goldman Investors own less than fifty
percent (50%) of each of the Common Shares and Series A Preference Shares owned
by the Goldman Investors as of the date hereof (as adjusted pursuant to any
share splits, reverse share splits, share dividends, recapitalizations or other
similar events), then the items set forth in Section 2.5(a) shall not require
the consent of the Goldman Directors.

 

15

 

Section
2.6  Additional Management Provisions.

 

(a)                                  Unless
approved by a majority of each of the Goldman Directors and the Resolute
Directors, the parties hereto agree that, on or after the date hereof, the
Company shall not enter into, or permit any of it Subsidiaries to enter into,
any agreement or transaction, directly or indirectly, with a Shareholder or any
of its Affiliates (each of the foregoing an “Affiliate Transaction”)
other than a Permitted Affiliate Transaction. 
As used herein, “Permitted Affiliate Transaction” shall mean
(a) any Affiliate Transaction of aggregate value less than $5.0 million
that is conducted in good faith on terms that are no less favorable to the
Company or the relevant Subsidiary of the Company than those that would have
been obtained in a comparable transaction by the Company or such Subsidiary
with an unrelated person that has been approved by a majority of the members of
the Board of Directors who do not have any direct or indirect interest in, and
are not Affiliated with any Person that has a direct or indirect interest in,
such Affiliate Transaction, (b) subject to Section 2.5(a)(i), any
employment agreement, including the Executive Employment Agreements, entered
into by the Company or any of its Subsidiaries in the ordinary course of
business with the approval of the Board of Directors of the Company,
(c) transactions between or among the Company and/or its wholly owned
Subsidiaries, (d) payments pursuant to the Management Consulting
Agreement, (e) reasonable directors’ fees not to exceed $20,000 per
director per year, reimbursements for reasonable and customary out-of-pocket
expenses incurred in the performance of a director’s duties, and awards issued
pursuant to the Restricted Share Plan, provided that the Resolute Directors and
Goldman Directors shall not receive any directors’ fee or restricted share
awards and provided further that management directors shall receive no
additional compensation for service as directors, (f) payments to
directors and officers of the Company or any of its Subsidiaries pursuant to
customary rights of indemnification provided in the memorandum of association
and by-laws or other charter documents of, or indemnification agreements with,
the Company or any of its Subsidiaries, provided that such indemnification is
otherwise consistent with applicable law, (g) management share and option
repurchases pursuant to the Management and Consultant Subscription Agreements
and the Restricted Share Plan, (h) entering into, and making payments
under, the Resolute Subscription Agreement, the Goldman Subscription Agreement,
the Management and Consultant Subscription Agreements, the Credit Agreement and
the agreements related thereto, the Indenture and the agreements related
thereto, the Management Consulting Agreement, the Goldman Letter Agreement and
the Restricted Share Plan, and (i) any transactions involving the Company or
any of its Subsidiaries, on the one hand, and any nationally recognized
commercial or investment bank or any of its Affiliates, on the other hand, in
connection with the transactions contemplated by the Stock Purchase Agreement,
the execution of the Credit Agreement and any amendment, modification,
supplement, extension, refinancing, replacement and other transactions related
thereto, or any management, financial advisory, financing, underwriting or
placement services or any other investment banking, capital markets, banking or
similar services, which transactions, in the reasonable determination of a
majority of the members of the Board of Directors disinterested with respect to
such transaction, are on commercially reasonable terms.

 

(b)                                 GS
2000 and the Resolute Investors shall each have the right to have at least one
of its designated directors on any committee formed of the board of directors
of the Company, Bermuda 2, Bermuda 3 and Sensus Metering Systems Inc. or any
committee established by the Company pursuant to the Bye-Laws.

 

16

 

(c)                                  Each
Shareholder agrees and acknowledges that the directors designated by the
Goldman Investors and the Resolute Investors may share confidential, non-public
information about the Company and its subsidiaries with the Goldman Investors
and the Resolute Investors, respectively, subject to applicable law.

 

(d)                                 The
Shareholders hereby agree, notwithstanding anything to the contrary in any
other agreement or at law or in equity, that when the Goldman Investors and/or
the Resolute Investors take any action under this Agreement to give or withhold
its consent, the Goldman Investors and/or the Resolute Investors, as
applicable, shall have no duty (fiduciary or other) to consider the interests
of the Company or the other Shareholders and may act exclusively in its own
interest and shall have only the duty to act in good faith; provided, however,
that the foregoing shall in no way affect the obligations of the parties hereto
to comply with the provisions of this Agreement.

 

(e)                                  The
Shareholders shall take all Necessary Action to ensure that the Bye-Laws do
not, at any time, conflict with the provisions of this Agreement.

 

(f)                                    The
Company shall use commercially reasonable efforts to obtain after the date
hereof, and maintain, at its sole cost and expense, with financially sound and
reputable insurers and on terms and conditions satisfactory to the Goldman
Investors and the Resolute Investors, directors’ and officers’ liability insurance
which provides at least $10 million in coverage for the sole benefit of the
directors of the Company, Bermuda 2, Bermuda 3 and Sensus Metering Systems Inc.

 

(g)                                 The
Shareholders and the Company agree to take all Necessary Action to adopt a
policy by March 31, 2004 to ensure (i) that the Company and its Subsidiaries
act in compliance with all applicable laws or international mandates relating
to export control, trade embargoes and economic and trade sanctions and (ii)
the Company, its Subsidiaries and their respective directors, officers, agents
or employees, and any other Person associated with or acting for or on behalf
of the Company or its Subsidiaries does not enter into any contract or
agreement to conduct any transaction with any Person based or resident in Cuba,
Iran, Libya, North Korea or Sudan, or any agent or representative of such
Person.

 

(h)                                 The
Shareholders and the Company agree to take all Necessary Action to adopt a code
of corporate ethics and governance applicable to the Board of Directors and the
boards of directors  of its Subsidiaries
and audit committee charter.

 

ARTICLE III

Transfers of Shares

 

Section
3.1  Restrictions on
Transfer.  Each Shareholder agrees
that such Shareholder will not, directly or indirectly, whether by operation of
law or otherwise, offer, sell, transfer, assign or otherwise dispose of (or
make any exchange, gift, assignment, charge or pledge of) any Shares or any
rights or interests therein (collectively, a “Transfer”), except (a) as
provided in Section 3.2; or (b) in accordance with Article IV.  In addition to the other restrictions noted
in this Article IV, each Shareholder agrees that it will not, directly or
indirectly, Transfer any of its

 

17

 

Shares except as
permitted under the Securities Act and other applicable securities laws,
including the laws of Bermuda.

 

Section
3.2  Exceptions to Restrictions.  (a) The provisions of Section 3.1
and Article IV shall not apply to any of the following Transfers:

 

(i)                                     From any of the
Resolute Investors to any of their Permitted Transferees.

 

(ii)                                  From any Goldman
Investor to any of its Permitted Transferees.

 

(iii)                               Subject to Section
2.5, pursuant to a Public Offering or pursuant to Rule 144 under the
Securities Act.

 

(iv)                              From any Shareholder to
any Person pursuant to Sections 4.6 and 4.7.

 

(v)                                 Subject to Section
2.5(a)(i), from any Shareholder to the Company.

 

(b)                                 Transfer
to Permitted Transferees.  Subject
to the provisions of Section 3.4 and Section 3.3(b), each Permitted
Transferee of any Shareholder to which Shares are Transferred shall, and such
Shareholder shall cause such Permitted Transferee to, Transfer back to such
Shareholder (or to another Permitted Transferee of such Shareholder) any Shares
it owns if such Permitted Transferee ceases to be a Permitted Transferee of
such Shareholder.

 

Section
3.3  Endorsement of Certificates.

 

(a)                                  Upon
the execution of this Agreement, in addition to any other legend which the
Company may deem advisable under the Securities Act and applicable state
securities laws, all certificates, if any, representing issued and outstanding
Common Shares and Series A Preference Shares shall be endorsed at all times
prior to any Public Offering of such shares or sale of such shares pursuant to Rule
144 under the Securities Act as follows:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO, AND ARE
TRANSFERABLE ONLY UPON COMPLIANCE WITH, THE PROVISIONS OF A SHAREHOLDERS
AGREEMENT, DATED DECEMBER 17, 2003 AMONG THE COMPANY AND ITS SHAREHOLDERS.  REFERENCE ALSO IS MADE TO THE RESTRICTIVE
PROVISIONS OF THE BYE-LAWS OF THE COMPANY. 
COPIES OF THE ABOVE REFERENCED AGREEMENTS ARE ON FILE AT THE PRINCIPAL
EXECUTIVE OFFICE OF THE COMPANY AND MAY BE OBTAINED FROM THE ASSISTANT
SECRETARIES OF THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICE.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE TRANSFERRED EXCEPT IN
ACCORDANCE WITH BERMUDA LAW AND PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT, OR AN EXEMPTION FROM REGISTRATION, UNDER SAID ACT.

 

18

 

At the request
of the Shareholder, the Company shall remove the legend referring to the
Securities Act from the certificates representing its Shares and upon the
earliest of the following events:  (i)
when such Shares are Transferred in a public offering under the Securities Act;
(ii) when such Shares are Transferred pursuant to Rule 144 under the Securities
Act; or (iii) when such Shares are Transferred in any other transaction if the
seller delivers to the Company an opinion of its counsel, which counsel and
opinion shall be reasonably satisfactory to the Company to the effect that such
legend is no longer necessary in order to protect the Company against a
violation by it of the Securities Act upon any sale or other disposition of
such capital shares without registration thereunder.  The Company covenants that it shall keep a copy of this Agreement
on file for the purpose of furnishing copies to the holders of record of
Shares.  At the request of the
Shareholder, the Company shall remove the legend referring to the Shareholders
Agreement and any applicable Subscription Agreement at such time as such Agreements
no longer restrict the Transfer of the Shares.

 

(b)                                 Except
as otherwise expressly provided in this Agreement, all certificates, if any,
representing Shares hereafter issued to or acquired by any of the Shareholders
or their successors hereto shall bear the legends set forth above, and the
Shares represented by such certificates shall be subject to the applicable
provisions of this Agreement.  The
rights and obligations of each party hereto shall inure to and be binding upon
each transferee to whom Shares are Transferred by any party hereto, except for
Transfers described in Section 3.2(a)(iii).  Prior to consummation of any Transfer, such
party shall cause the transferee to execute a counterpart to this Agreement, at
which time the Company shall revise the Shareholder Schedule as may be necessary
or appropriate.  Any Shareholder wishing
to Transfer Shares shall give written notice to the Company prior to any
transfer (whether or not to a Permitted Transferee) of any Shares.

 

Section
3.4  Transfers
to Competitors; Other Transfers. 
Notwithstanding Sections 3.1 and 3.2 and Article IV,
and except as provided in Section 4.7,

 

(a)                                  no
Shareholder will Transfer any Shares to any person that competes, directly or
indirectly, with the Business and which derives at least $25,000,000 or 10% of
its revenues from the competitive business; and

 

(b)                                 no
Shareholder shall be entitled to Transfer its Shares at any time if such
Transfer would:

 

(i)                                     violate the
Securities Act, or any state (or other applicable) securities or “Blue Sky”
laws applicable to the Company or the Shares;

 

(ii)                                  cause the Company to
become subject to the registration requirements of the U.S. Investment Company
Act of 1940, as amended from time to time; or

 

(iii)                               be a “prohibited
transaction” under ERISA or the Code or cause all or any portion of the assets
of the Company to constitute “plan assets” under ERISA or Section 4975 of the
Code.

 

(c)                                  The
Resolute Investors shall not Transfer Shares if such Transfer (x) causes a
Change of Control and (y) results in a third party or two or more third
parties which are not Permitted Transferees of the Resolute Investors and that
are acting in concert as a “group” (for

 

19

 

purposes of
Rule 13d-3 of the Securities Exchange Act of 1934, as amended) to hold a
majority of the Voting Securities of the Company without the consent of the
Goldman Directors for so long as the Goldman Directors have rights under Section 2.5
hereof.

 

Section
3.5  Improper
Transfer.  Any attempt to Transfer
or encumber any Shares not in accordance with this Agreement shall be null and
void and neither the Company nor any transfer agent of such securities shall
give any effect to such attempted transfer or encumbrance in its Shares
records.

 

ARTICLE IV

Rights of First Offer; New Securities;

Tag Along Rights; Drag Along Rights

 

Section
4.1  Transfers by a Shareholder.

 

(a)                                  Except
for Transfers permitted by Section 3.1 or 3.2, if at any
time any Shareholder shall desire to sell any Common Shares or Series A
Preference Shares owned by such Shareholder (such Shareholder desiring to sell
shares of such Shares being referred to herein as a “Selling Shareholder”),
then such Selling Shareholder shall deliver written notice of its desire to
sell such Shares (a “Notice of Intention”), accompanied by a copy of a
proposal relating to such sale (the “Sale Proposal”), to each of the
other Shareholders and to the Company, setting forth such Selling Shareholder’s
desire to make such sale (which shall be for cash only), the number and class
of Common Shares or Series A Preference Shares proposed to be Transferred (the
“Offered Securities”) and the price at which such Selling Shareholder
proposes to sell the Offered Securities (the “First Offer Price”) and
other terms applicable thereto.

 

(b)                                 Upon
receipt of the Notice of Intention, the Company and the other Shareholders
shall then have the right to purchase at the First Offer Price and on the other
terms specified in the Sale Proposal all or, subject to Section 4.1(d),
any portion of the Offered Securities in the following order of priority:  (i) if the Selling Shareholder is a
Resolute Investor, the other Resolute Investors shall have the first right to
purchase the Offered Securities allocated on a pro rata basis among those of
the Resolute Investors so electing to purchase on the basis of the respective
number of shares of the same class or series of the Offered Securities owned by
such Resolute Investors (or in such other proportion as such Resolute Investors
may agree), thereafter, the Company shall have the right to purchase the
Offered Securities, thereafter, the Goldman Investors shall have the right to
purchase the Offered Securities allocated on a pro rata basis among those of
the Goldman Investors so electing to purchase on the basis of the respective
number of shares of the same class or series of the Offered Securities owned by
such Goldman Investors (or in such other proportion as such Goldman Investors
may agree), and thereafter, all other Shareholders shall have the right to
purchase the Offered Securities allocated on a pro rata basis among the
Shareholders so electing to purchase on the basis of the respective number of
shares of the same class or series of the Offered Securities owned by such
Shareholders (or in such other proportions as such other Shareholders may
agree); and (ii) if the Selling Shareholder is a Goldman Investor, the
other Goldman Investors shall have the first right to purchase the Offered
Securities allocated on a pro rata basis among those of the Goldman Investors
so electing to purchase on the basis of the respective number of shares of the
same class or series of

 

20

 

the Offered
Securities owned by such Goldman Investors (or in such other proportion as such
Goldman Investors may agree), thereafter, the Company shall have the first
right to purchase the Offered Securities, thereafter, the Resolute Investors,
shall have the right to purchase the Offered Securities allocated on a pro rata
basis among those of the Resolute Investors so electing to purchase on the
basis of the respective number of shares of the same class or series of the
Offered Securities owned by such Resolute Investors (or in such other
proportion as such Resolute Investors may agree), and thereafter, all other
Shareholders shall have the right to purchase the Offered Securities allocated
on a pro rata basis among the Shareholders so electing to purchase on the basis
of the respective number of shares of the same class or series of the Offered
Securities owned by such Shareholders (or in such other proportion as such
other Shareholders may agree).  The
rights of the Shareholders and the Company pursuant to this Section 4.1(b)
shall be exercisable by the delivery of notice to the Selling Shareholder (the
“Notice of Exercise”), within 30 calendar days from the Date of Delivery
of the Notice of Intention.  The Notice
of Exercise shall state the total number of shares of the Offered Securities
such Shareholder (or the Company) is willing to purchase without regard to
whether or not other Shareholders purchase any shares of the Offered
Securities.  A copy of such Notice of
Exercise shall also be delivered by each Shareholder to the Company and each
other Shareholder.  The rights of the
Shareholders and the Company pursuant to this Section 4.1(b) shall
terminate if no Notice of Exercise is delivered within 30 calendar days after
the Date of Delivery of the Notice of Intention.

 

(c)                                  Subject
to Section 4.1(d), in the event that the Shareholders or the
Company exercise their rights to purchase Offered Securities in accordance with
Section 4.1(b), then the Selling Shareholder must sell the Offered
Securities to such Shareholders (or, as the case may be, the Company) in
accordance with Section 4.3. 
If the Shareholders collectively request to purchase more than the
amount of Offered Securities, then, subject to the priorities established in Section 4.1(b),
such Shareholders will be allocated such Offered Securities based upon the
priorities set forth in Section 4.1(b) and then on a pro rata basis
among those Shareholders electing to purchase on the basis of the respective
number of shares of the same class or series of the Offered Securities owned by
such Shareholders (or in such other proportion as such Shareholders may agree).

 

(d)                                 Notwithstanding
the foregoing provisions of this Section 4.1, unless the Selling
Shareholder shall have consented to the purchase of less than all of the
Offered Securities, no Shareholder or Shareholders nor the Company may purchase
any Offered Securities hereunder unless all of the Offered Securities are to be
so purchased.

 

(e)                                  For
purposes of this Article IV, any Person who has failed to give
notice of the election of an option hereunder within the specified time period
will be deemed to have waived its rights on the day after the last day of such
period.

 

(f)                                    Subject
to Section 2.5, each of the Resolute Investors and the Goldman Investors
in its capacity only as a shareholder (i) agrees and acknowledges that the
Company may purchase or acquire Common Shares pursuant to Section 4.1(b)
hereof and (ii) approves such purchases and acquisitions, and waives any
objection or claim relating thereto, whether against the Company, the Board of
Directors or otherwise.

 

21

 

Section
4.2  Transfer of Offered Shares to
Third Parties.  If all notices
required to be given pursuant to Section 4.1 by a Selling
Shareholder have been duly given and the Shareholders and the Company do not
exercise their respective options to purchase all of the Offered Securities at
the First Offer Price and the Selling Shareholder does not desire to sell less
than all the Offered Securities or if with the consent of the Selling
Shareholder, the other Shareholders and the Company purchase less than all of
the Offered Securities pursuant to the provisions hereof, then in either such
event the Selling Shareholder shall have the right, subject to compliance by
the Selling Shareholder with the provisions of Sections 3.3 and 3.4
hereof, for a period of 120 calendar days from the earlier of (i) the
expiration of the other Shareholders’ or Company’s rights to purchase such
Shares pursuant to Section 4.1 with respect to such Sale Proposal
or (ii) the date on which such Selling Shareholder receives notice from
all of the other Shareholders and the Company that they will not exercise in
whole or in part the rights granted pursuant to Section 4.1, to
sell to any third party all (but not less than all) of the Offered Securities
remaining unsold at a price of not less than 95% of the First Offer Price, and
on the other terms specified in the Sale Proposal.

 

Section
4.3  Purchase of Offered Shares.  The consummation of any purchase and sale
pursuant to Section 4.1 shall take place on
such date, not later than 30 calendar days after the expiration of the option
period pursuant to Section 4.1 with respect to such option, as the
Selling Shareholder shall select, subject to the expiration or termination of
any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvement
Act of 1976, as amended.  Prior to the
date selected by the Selling Shareholder, the purchasers shall execute an
agreement in form and substance reasonably satisfactory to the Selling Shareholder
and on the terms specified in the Sale Proposal.  Upon the consummation of any such purchase and sale, the Selling
Shareholder shall transfer the Offered Securities with instruments of transfer
duly executed by the Selling Shareholder free and clear of any liens, against
delivery of the First Offer Price, payable in the manner specified in Section 4.1(a).

 

Section
4.4  Waiting Period with Respect to
Subsequent Transfers.  In the event
that the Shareholders and the Company do not exercise
their options to purchase all of the Offered Securities, and the Selling
Shareholder shall not have sold the remaining Offered Securities to a third
party for any reason before the expiration, as applicable, of the 120-day
period described in Section 4.2, then such Selling Shareholder
shall again be subject to the provisions of Section 4.1.

 

Section
4.5  Right of First Refusal for New
Securities.

 

(a)                                  The
Company hereby grants to each of the Shareholders a right of first refusal to
purchase New Securities (as defined below) which the Company may, from time to
time, propose to issue and sell.  Such
right of first refusal shall allow each Shareholder to purchase its pro rata
share based on its percentage ownership of the New Securities proposed to be
issued, determined with reference to the percentage ownership of each
Shareholder before the proposed issuance of New Securities.  In the event a Shareholder does not purchase
any or all of its pro rata share based on its percentage ownership of New
Securities, the remaining Shareholders shall each have the right to purchase
its pro rata share based on its percentage ownership of such unpurchased New
Securities until all of the New Securities are purchased or until no other
Shareholder desires to purchase any more New Securities.  The right of first refusal granted

 

22

 

hereunder
shall terminate if unexercised within 30 calendar days after receipt of the New
Securities Notice described in Section 4.5(c) below.

 

(b)                                 “New
Securities” shall mean any authorized but unissued capital shares, or debt
securities, of the Company, and all rights, options or warrants to purchase
shares, and securities of any type whatsoever that are, or may become,
convertible into, or exchangeable for, shares of capital shares or debt
securities of the Company; provided, however, that the term “New
Securities” does not include (i) securities issued pursuant to the
acquisition of another corporation by the Company by merger, amalgamation,
purchase of all or substantially all of the assets or other reorganization
whereby the Company shall become the owner of 50% or more of the voting power
of such corporation; (ii) Common Shares issued in connection with any pro
rata share split or share dividend or bonus issue of the Company;
(iii) Common Shares issued pursuant to any Public Offering;
(iv) Common Shares issued to a member of the Management of the Company
employed by the Company subsequent to the date hereof under any incentive plan
approved by the Board of Directors or upon exercise of restricted stock awards
granted under any incentive plan approved by the Board of Directors, including
the Restricted Share Plan; or (v) Common Shares issued pursuant to the
Management and Consultant Subscription Agreements, Resolute Subscription
Agreement and Goldman Subscription Agreement.

 

(c)                                  In
the event the Company proposes to undertake an issuance of New Securities, it
shall promptly give each Shareholder written notice (“New Securities Notice”)
of its intention, describing the class and number of securities intended to be
issued as New Securities, the purchase price therefor (which shall be payable
solely in cash) and the terms and conditions upon which the Company proposes to
issue the same.  Each Shareholder shall
have 30 calendar days from the Date of Delivery of the New Securities Notice to
determine whether to purchase all or any portion of the Shareholder’s pro rata
share based on its percentage ownership of such New Securities for the purchase
price and upon the terms specified in the notice by giving written notice to
the Company and stating therein the quantity of New Securities to be purchased.

 

(d)                                 The
Company shall have 120 days from the expiration of the period set forth in Section 4.5(c)
to issue, sell or exchange all or any part of such New Securities which
Shareholders have not elected to purchase, but only upon the terms and
conditions set forth in the New Securities Notice.

 

Section
4.6  Right to Join in Sale.

 

(a)                                  In
addition to the requirements imposed by Section 4.1, if any
Shareholder proposes to Transfer (each, a “Disposing Shareholder”)
(other than Transfers permitted pursuant to Section 3.2(a)(i),(ii) or
(v)), its or their issued and outstanding Common Shares, Series A
Preference Shares, or securities convertible into, or exchangeable or exercisable
for Common Shares or Series A Preference Shares at the right of the holder (the
“Tag-Along Securities”), such Shareholder shall refrain from effecting
such transaction or transactions unless, prior to the consummation thereof, the
other Shareholders who are holders of the same class or series of shares as the
Tag-Along Securities that are proposed to be Transferred, shall have been
afforded the opportunity to join in such transaction or transactions on a pro
rata basis, as hereinafter provided.

 

23

 

(b)                                 Prior
to consummation of any proposed Transfer of shares of the Tag-Along Securities
described in Section 4.6(a), the Disposing Shareholder or
Shareholders shall cause the person or group that proposes to acquire such
shares (the “Proposed Purchaser”) to offer (the “Purchase Offer”)
in writing to each other Shareholder who holds the same class or series of
shares as the Tag-Along Securities owned or acquirable by such Shareholder,
such that the number of Tag-Along Securities so offered to be purchased from
such Shareholder shall be equal to the product of (i) the total number of
shares of the same class or series of shares as the Tag-Along Securities then
owned by such Shareholder multiplied by (ii) a fraction, the numerator of
which is the aggregate number of shares of the same class or series of shares
as the Tag-Along Securities proposed to be purchased by the Proposed Purchaser
from all Shareholders and the denominator of which is the aggregate number of shares
of the same class or series of securities as the Tag-Along Securities then
issued and outstanding.  Such purchase
shall be made at the highest price per share and on such other terms and
conditions as the Proposed Purchaser has offered to purchase shares of the same
class or series of shares as the Tag-Along Securities to be sold by the
Disposing Shareholder or Shareholders. 
Each Shareholder shall have 30 calendar days from the date of receipt of
the Purchase Offer to accept such Purchase Offer, and the closing of such
purchase shall occur within 30 calendar days after such acceptance or at such
other time as such Shareholder and the Proposed Purchaser may agree.  The number of shares of the same class or
series of shares as the Tag-Along Securities to be Transferred to the Proposed
Purchaser by the Disposing Shareholder or Shareholders shall be reduced by the
aggregate number of shares of the same class or series of securities as the
Tag-Along Securities purchased by the Proposed Purchaser from the other
Shareholders pursuant to the provisions of this Section 4.6(b).  In the event that a Transfer subject to this
Section 4.6 is to be made to a Proposed Purchaser that is not a
Shareholder, the Disposing Shareholder shall notify the Proposed Purchaser that
the Transfer is subject to this Section 4.6 and shall ensure that
no Transfer is consummated without the Proposed Purchaser first complying with
this Section 4.6.  It shall
be the responsibility of each Disposing Shareholder to determine whether any
transaction to which it is a party is subject to this Section 4.6.

 

(c)                                  Any
Transfer of Tag-Along Securities by a Disposing Shareholder to a Proposed
Purchaser pursuant to this Section 4.6 shall be on the same terms and
conditions (including, without limitation, price, time of payment and form of
consideration) as to be paid to the Disposing Shareholder; provided that
in order to be entitled to exercise its tag along right pursuant to this Section
4.6, each Disposing Shareholder must agree to make to the Proposed
Purchaser representations, warranties, covenants, indemnities and agreements
the same mutatis mutandis as
those made by the Disposing Shareholder in connection with the relevant
transaction (other than any non-competition or similar agreements or covenants
that would bind the Disposing Shareholder or its Affiliates), and agree to the
same conditions to the relevant transactions as the Disposing Shareholder
agrees, it being understood that all such representations, warranties,
covenants, indemnities and agreements shall be made by the Disposing
Shareholder and each Shareholder that has accepted the Purchase Offer severally
and not jointly and that, except with respect to individual representations,
warranties, covenants, indemnities and other agreements of such Shareholder as
to the unencumbered title to its Shares and the power, authority and legal
right to Transfer such Shares, the aggregate amount of the liability of such
Shareholder shall not exceed either (i) such Shareholder’s pro rata portion of
any such liability to be determined in accordance with such Shareholder’s
portion of the total number

 

24

 

of Shares
included in such Transfer or (ii) the proceeds to such Shareholder in
connection with such Transfer.

 

(d)                                 Anything
in this Agreement to the contrary notwithstanding, compliance by any
Shareholder with any provision contained in Section 4.1 thereof
shall not be deemed a waiver to comply with the terms and conditions of Section 4.6
hereof.  Such compliance by any
Shareholder of Sections 4.1 and 4.6 hereof may be exercised
concurrently.

 

Section
4.7  Drag Along.

 

(a)                                  Subject
to Section 2.5, if Resolute Investors holding, in the aggregate, at least 50
percent (50%) of the Common Shares (the “Selling Shareholders”) agree to
enter into a transaction which would result in the Transfer of all the Common
Shares owned by the Selling Shareholders to a non-Affiliate third party (the “Drag-Along
Buyer”), the Selling Shareholders may deliver written notice (a “Drag-Along
Notice”) to each other Shareholder (the “Drag-Along Shareholders”),
stating that such Selling Shareholders wish to exercise their rights under this
Section 4.7 with respect to such Transfer, and setting forth the name
and address of the Drag-Along Buyer, the number of Common Shares proposed to be
Transferred, the proposed amount and form of the consideration, and all other
material terms and conditions offered by the Drag-Along Buyer.

 

(b)                                 Upon
delivery of a Drag-Along Notice, each Drag-Along Shareholder shall be required
to Transfer all, but not less than all, of its Common Shares, upon the same
terms and conditions (including, without limitation, as to price, time of
payment and form of consideration) as agreed by the Selling Shareholders and the
Drag-Along Buyer, and shall make to the Drag-Along Buyer representations,
warranties, covenants, indemnities and agreements comparable to those made by
the Selling Shareholders in connection with the Transfer (other than any
non-competition or similar agreements or covenants that would bind the
Drag-Along Shareholder or its Affiliates), and shall agree to the same
conditions to the Transfer as the Selling Shareholders agree, it being
understood that all such representations, warranties, covenants, indemnities
and agreements shall be made by each Selling Shareholder and each Drag-Along
Shareholder severally and not jointly and that, except with respect to
individual representations, warranties, covenants, indemnities and other
agreements of the Drag-Along Shareholder as to the unencumbered title to its
Common Shares and the power, authority and legal right to Transfer such Common
Shares, the aggregate amount of the liability of the Drag-Along Shareholder
shall not exceed either (i) such Drag-Along Shareholder’s pro rata portion
of any such liability, to be determined in accordance with such Drag-Along
Shareholder’s portion of the total number of Common Shares included in such
Transfer or (ii) the proceeds to such Drag-Along Shareholder in connection
with such Transfer.

 

(c)                                  In
the event that any such Transfer is structured as a merger, amalgamation,
consolidation, or similar business combination, each Drag-Along Shareholder
agrees to (i) vote in favor of the transaction, (ii) take such other
action as may be required to effect such transaction (subject to Section 4.7(b))
and (iii) take all action to waive any dissenters, appraisal or other
similar rights with respect thereto.

 

25

 

(d)                                 If
any Shareholder fails to vote its Voting Shares or to provide a written consent
in accordance with the terms of Section 4.7 (each such Shareholder, a “Breaching
Drag-Along Shareholder”), the Shareholders and the Company shall take such
action as is necessary in accordance with the Bye-laws of the Company and
Bermuda law to convene a general meeting or to circulate written resolutions,
the purpose of which will be to propose for approval of the Shareholders such
actions as are necessary in order to ensure compliance with the provisions of Section
4.7.

 

(e)                                  Solely
for purposes of Section 4.7 and in order to secure the performance of
each Shareholder’s obligations under Section 4.7, each Shareholder
hereby: (i) appoints each Drag-Along Proxy Holder (as defined in Section
4.7(f)) acting severally: the attorney-in-fact of such Shareholder (with
full power of substitution) for the purpose of signing written resolutions
circulated pursuant to Section 4.7(d) on behalf of such Shareholder; and
(ii) agrees on the date hereof to grant a proxy to each Proxy Holder in the
form attached hereto as Exhibit for the purpose of voting the Voting Shares
held by such Shareholder at a general meeting convened pursuant to Section
4.7(d).  Each Shareholder
acknowledges and agrees that the power of attorney granted by such Shareholder
pursuant to this Section 4.7(d) is coupled with an interest and is
irrevocable, and that the proxy to be granted pursuant to this Section
4.7(d) shall be coupled with an interest and shall be irrevocable.

 

(f)                                    For
purposes of Section 4.7, each “Drag-Along Proxy Holder” shall be
an individual nominated for this purpose by any Selling Shareholder.

 

(g)                                 Each
Shareholder agrees to take such further action and to execute such other
instruments as may be necessary to effect the appointment of attorneys-in-fact
and proxies pursuant to this Section 4.7, and each Drag-Along Breaching
Shareholder hereby revokes any power of attorney or proxy previously granted by
it with respect to the matters set forth in Section 4.7 for purposes of,
respectively, any written resolutions circulated or any general meeting
convened pursuant to Section 4.7(d). 
Notwithstanding the foregoing, the power of attorney and the proxy
granted pursuant to this Section 4.7 shall terminate upon the
termination of Article IV in accordance with its terms.

 

Section
4.8  Legally Binding Obligation;
Power of Attorney; Personal Rights. 
The making of a written offer, giving or failing
to give written notice within the stated period, accepting an offer or making a
decision or election, in each case as provided in Section 4.1 or 5.2,
shall create a legally binding obligation to buy or sell, or an obligation not
to buy or sell, as the case may be, the subject Shares as provided in such Section 4.1
or 4.2.

 

ARTICLE V

Registration Rights

 

Section
5.1  Shelf Registration.

 

(a)                                  Filing.  As promptly as practicable following a
demand by any Resolute Investor or Goldman Investor made pursuant to Section
5.2 the Company shall file with the SEC a Shelf

 

26

 

Registration
Statement relating to the offer and sale of Registrable Securities by any
Holder thereof from time to time in accordance with the methods of distribution
elected by such Holder and set forth in the Shelf Registration Statement and,
thereafter, shall use its reasonable best efforts to cause such Shelf
Registration Statement to be declared effective under the Securities Act.  If, on the date of any such demand, the
Company does not qualify to file a Shelf Registration Statement, then the
provisions of Section 5.2 shall apply instead.

 

(b)                                 Continued
Effectiveness.  The Company shall
use its reasonable best efforts to keep such Shelf Registration Statement
continuously effective under the Securities Act in order to permit the
Prospectus forming a part thereof to be usable by Holders until the earlier of
(i) 180 days from the date of effectiveness of the Shelf Registration
Statement, provided that this period shall be extended for the number of days
that a Shelf Suspension was effected, (ii) the date as of which all Registrable
Securities have been sold pursuant to the Shelf Registration Statement (but in
no event prior to the applicable period referred to in Section 4(3) of the
Securities Act and Rule 174 thereunder) and (iii) the date as of which
each of the Holders is permitted to sell its Registrable Securities without
Registration pursuant to Rule 144 under the Securities Act without volume
limitations or other restrictions on transfer thereunder (such period of
effectiveness, the “Shelf Period”). 
Subject to Section 5.1(c), the Company shall not be deemed to
have used its reasonable best efforts to keep the Shelf Registration Statement
effective during the Shelf Period if the Company voluntarily takes any action
or omits to take any action that would result in Holders of the Registrable
Securities covered thereby not being able to offer and sell any Registrable
Securities pursuant to such Shelf Registration Statement during the Shelf
Period, unless such action or omission is required by applicable law.

 

(c)                                  Suspension
of Registration.  If the continued
use of such Shelf Registration Statement at any time would require the Company
to make an Adverse Disclosure, the Company may, upon giving at least 10 days’
prior written notice of such action to the holders, suspend use of the Shelf
Registration Statement (a “Shelf Suspension”); provided, however,
that the Company shall not be permitted to exercise a Shelf Suspension (i) more
than one time during any 12-month period, or (ii) for a period exceeding 30
days on any one occasion.  In the case
of a Shelf Suspension, the Holders agree to suspend use of the applicable
Prospectus in connection with any sale or purchase of, or offer to sell or
purchase, Registrable Securities, upon receipt of the notice referred to
above.  The Company shall immediately
notify the Holders upon the termination of any Shelf Suspension, amend or
supplement the Prospectus, if necessary, so it does not contain any untrue
statement or omission and furnish to the Holders such numbers of copies of the
Prospectus as so amended or supplemented as the Holders may request.  The Company agrees, if necessary, to
supplement or make amendments to the Shelf Registration Statement, if required
by the registration form used by the Company for the Shelf Registration or by
the instructions applicable to such registration form or by the Securities Act
or the rules or regulations promulgated thereunder or as may be requested by
the Holders of a majority of the Registrable Securities then outstanding.

 

(d)                                 Underwritten
Offering.  If the Holders of not
less than a majority of any Registrable Securities included in any offering
pursuant to such Shelf Registration Statement so elect, such offering of
Registrable Securities shall be in the form of an Underwritten Offering, and
the Company shall amend or supplement the Shelf Registration Statement for such
purpose.  The Holders of a majority of
such Registrable Securities included in such Underwritten Offering

 

27

 

shall have the
right to select the managing underwriter or underwriters to administer such
offering; provided that such managing underwriter or underwriters shall
be reasonably acceptable to the Company.

 

Section
5.2  Demand Registrations

 

(a)                                  Demand
by Holders.  Any of the Resolute
Investors and/or any of the Goldman Investors may make a written request, at
any time on or after the initial Public Offering, to the Company for
Registration of Registrable Securities held by such Holders and any other
Holders of Registrable Securities.  Any
such requested Registration shall hereinafter be referred to as a “Demand
Registration.”  Each request for a
Demand Registration shall specify the kind and aggregate amount of Registrable
Securities to be Registered and the intended methods of disposition
thereof.  Within 30 days of a request
for a Demand Registration, the Company shall file a Registration Statement
relating to such Demand Registration (a “Demand Registration Statement”),
and shall use its commercially reasonable best efforts to cause such Demand
Registration Statement to promptly (but in any event within 90 days of receipt
of the written request for a Demand Registration) be declared effective under
(i) the Securities Act and (ii) the “Blue Sky” laws of such
jurisdictions as any Holder of Registrable Securities being registered under
such Registration or any underwriter, if any, requests.

 

(b)                                 Limitation
on Demand Registration.  The Company
shall not be obligated to file a Demand Registration Statement under this Section 5.2
or a Shelf Registration Statement under Section 5.1:

 

(i)                                     with regard to
more than three requests by the Goldman Investors, two of which may be demands
for a Shelf Registration under Section 5.1;

 

(ii)                                  with regard to more
than two requests by the Resolute Investors; or

 

(iii)                               unless the aggregate
purchase price of the Registrable Securities to be included in the requested
registration (other than a Shelf Registration) (determined by reference to the
offering price on the cover of the registration statement proposed to be filed)
is greater than $35 million.

 

(c)                                  Demand
Withdrawal.  A Holder may withdraw
its Registrable Securities from a Demand Registration at any time prior to the
effectiveness of the applicable Demand Registration Statement.  Upon receipt of notices from all Holders to
such effect, the Company shall cease all efforts to secure effectiveness of the
applicable Demand Registration Statement and such Registration nonetheless shall
be deemed a Demand Registration (charged against the initiating Holder(s)) for
purposes of Section 5.2(b) unless (i) the withdrawing Holders
shall have paid or reimbursed the Company for their pro rata portion of all of
the reasonable and documented out-of-pocket fees and expenses incurred by the
Company in connection with the Registration of such withdrawn Registrable
Securities or (ii) the withdrawal is made following the occurrence of a
Material Adverse Change or having been notified that the Registration would
require the Company to make an Adverse Disclosure.

 

(d)                                 Effective
Registration.  A Registration
request pursuant to Section 5.2(a) shall not be deemed a Demand
Registration if the Demand Registration Statement is declared effective by

 

28

 

the SEC and
remains effective for not less than 180 days (or such shorter period as will
terminate when all Registrable Securities covered by such Demand Registration
Statement have been sold) or, if such Registration Statement relates to an
Underwritten Offering, such longer period as in the opinion of counsel for the
underwriter or underwriters a Prospectus is required by law to be delivered in
connection with sales of Registrable Securities by an underwriter or dealer
(the applicable period, the “Demand Period”).  No Demand Registration shall be deemed to have been effected if
(i) during the Demand Period such Registration is interfered with by any
stop order, injunction or other order or requirement of the SEC or other
governmental agency or court or (ii) the conditions to closing specified
in the underwriting agreement, if any, entered into in connection with such
Registration are not satisfied other than by reason of a wrongful act,
misrepresentation or breach of such applicable underwriting agreement by a
participating Holder.

 

(e)                                  Demand
Notice.  Promptly upon receipt of
any request for a Demand Registration pursuant to Section 5.2(a) (but in
no event more than 5 Business Days thereafter), the Company shall deliver a
written notice (a “Demand Notice”) of any such Registration request to
all other Holders of Registrable Securities, and the Company shall include in
such Demand Registration all such Registrable Securities with respect to which
the Company has received written requests for inclusion therein within 10
Business Days after the date that the Demand Notice has been delivered.  All requests made pursuant to this Section 5.2(e)
shall specify the aggregate amount of Registrable Securities to be registered
and the intended method of distribution of such securities.

 

(f)                                    Preemption.  If not more than 30 days prior to receipt of
any request for a Demand Registration pursuant to Section 5.2(a)
the Company shall have (i) circulated to prospective underwriters and
their counsel a draft of a Registration Statement for a primary offering of
equity securities on behalf of the Company, (ii) solicited bids for a
primary offering of Common Shares, or (iii) otherwise reached an
understanding with an underwriter with respect to a primary offering of Common
Shares, the Company may preempt the Demand Registration with such primary
offering by delivering written notice of such intention (the “Preemption
Notice”) to the Holders making a request for a Demand Registration within
five days after the Company has received the request.  The period of preemption may be up to 45 days following the date
of the Preemption Notice. 
Notwithstanding anything to the contrary herein, the Company shall not
be entitled to exercise its right to preempt a Demand Registration pursuant to
this Section 5.2(f) more than once during any 12-month period.

 

(g)                                 Delay
in Filing; Suspension of Registration. 
If the filing, initial effectiveness or continued use of a Demand
Registration Statement at any time would require the Company to make an Adverse
Disclosure, the Company may, upon giving prompt written notice of such action
to the Holders, delay the filing or initial effectiveness of, or suspend use
of, the Demand Registration Statement (a “Demand Suspension”); provided,
however, that the Company shall not be permitted to exercise a Demand
Suspension (i) more than once during any 12-month period, or (ii) for
a period exceeding 30 days on any one occasion.  In the case of a Demand Suspension, the Holders agree to suspend
use of the applicable Prospectus in connection with any sale or purchase, or
offer to sell or purchase, Registrable Securities, upon receipt of the notice
referred to above.  The Company shall
immediately notify the Holders upon the termination of any Demand Suspension,
amend or supplement the Prospectus, if necessary, so it does not contain any
untrue statement or omission and furnish to the Holders such numbers of

 

29

 

copies of the
Prospectus as so amended or supplemented as the Holders may request.  The Company agrees, if necessary, to
supplement or make amendments to the Demand Registration Statement, if required
by the registration form used by the Company for the Demand Registration or by
the instructions applicable to such registration form or by the Securities Act
or the rules or regulations promulgated thereunder or as may be requested by
the Holders of a majority of the Registrable Securities that are included in
such Demand Registration Statement.

 

(h)                                 Underwritten
Offering.  If the Holders of not
less than a majority of the Registrable Securities requesting a Demand
Registration so elect, such offering of Registrable Securities shall be in the
form of an Underwritten Offering.  The
Holders of a majority of such Registrable Securities included in such
Underwritten Offering shall have the right to select the managing underwriter
or underwriters to administer the offering; provided that such managing
underwriter or underwriters shall be reasonably acceptable to the Company.

 

(i)                                     Priority
of Securities Registered Pursuant to Demand Registrations.  If the managing underwriter or underwriters
of a proposed Underwritten Offering of the Registrable Securities included in a
Demand Registration (or, in the case of a Demand Registration not being
underwritten, the Holders of a majority of the Registrable Securities included
therein), advise the Board of Directors in writing that, in its or their
opinion, the number of securities requested to be included in such Demand
Registration exceeds the number which can be sold in such offering without
being likely to have a significant adverse effect on the price, timing or
distribution of the securities offered or the market for the securities
offered, then the Company will include in such registration, (i) first,
the number of Registrable Securities requested by each Holder seeking Demand
Registration such that, in the opinion of such managing underwriter, can be
sold, such amount to be allocated among each Holder seeking Demand Registration
pro  rata on the basis of the respective number of Registrable
Securities then held by such Holder, (ii) second, the number of
Registrable Securities requested by the other Holders of Registrable Securities
to be included in such registration that, in the opinion of such managing
underwriter, can be sold, such amount to be allocated among all such Holders of
Registrable Securities pro  rata on the basis of the respective
number of Registrable Securities then held by each such Holder, and (iii) third,
the securities the Company proposes to sell. 
To the extent that Registrable Securities so requested to be registered
are excluded from the offering, then the Holder of such Registrable Securities
that initiated such request for a Demand Registration shall have the right to
one additional Demand Registration under this Section 5.2.

 

Section
5.3  Piggyback Registration.

 

(a)                                  Participation.  If the Company at any time proposes to file
a Registration Statement under the Securities Act with respect to any offering
of its securities for its own account or for the account of any other Persons
(other than (i) a Registration under Section 5.2, (ii) a
Registration on Form S-4 or S-8 or any successor form to such Forms or
(iii) a Registration of securities solely relating to an offering and sale
to employees or directors of the Company pursuant to any employee stock plan or
other employee benefit plan arrangement), then, as soon as practicable (but in
no event less than 30 days prior to the proposed date of filing such Registration
Statement), the Company shall give written notice of such proposed filing to
all Holders of Registrable Securities, and such notice shall offer the Holders
of such Registrable Securities the opportunity to Register under such
Registration Statement such number of

 

30

 

Registrable
Securities as each such Holder may request in writing (a “Piggyback
Registration”).  Subject to Section 5.3(b),
the Company shall include in such Registration Statement all such Registrable
Securities which are requested to be included therein within 15 days after the
receipt by such Holder of any such notice; provided, however,
that if at any time after giving written notice of its intention to Register
any securities and prior to the effective date of the Registration Statement
filed in connection with such Registration, the Company shall determine for any
reason not to Register or to delay Registration of such securities, the Company
shall give written notice of such determination to each Holder of Registrable
Securities and, thereupon, (i) in the case of a determination not to
Register, shall be relieved of its obligation to Register any Registrable
Securities in connection with such Registration (but not from its obligation to
pay the Registration Expenses in connection therewith), without prejudice,
however, to the rights of any Holders of Registrable Securities entitled to
request that such Registration be effected as a Demand Registration under Section 5.2,
and (ii) in the case of a determination to delay registering, in the
absence of a request for a Demand Registration, shall be permitted to delay
registering any Registrable Securities, for the same period as the delay in
registering such other securities.  If
the offering pursuant to such Registration Statement is to be underwritten,
then each Holder making a request for a Piggyback Registration pursuant to this
Section 5.3(a) must, and the Company shall make such arrangements
with the managing underwriter or underwriters so that each such Holder may,
participate in such Underwritten Offering. 
If the offering pursuant to such Registration Statement is to be on any
other basis, then each Holder making a request for a Piggyback Registration
pursuant to this Section 5.3(a) must, and the Company shall make
such arrangements so that each such Holder may, participate in such offering on
such basis.  Each Holder of Registrable
Securities shall be permitted to withdraw all or part of such Holder’s
Registrable Securities from a Piggyback Registration at any time prior to the
effective date of such Registration.

 

(b)                                 Priority
of Piggyback Registration.  If the
managing underwriter or underwriters of any proposed Underwritten Offering of
Registrable Securities included in a Piggyback Registration informs the Company
and the Holders of Registrable Securities in writing that, in its or their
opinion, the number of securities which such Holders and any other Persons
intend to include in such offering exceeds the number which can be sold in such
offering without being likely to have a significant adverse effect on the
price, timing or distribution of the securities offered or the market for the
securities offered, then the securities to be included in such Registration
shall be (i) first, 100% of the securities that the Company or
(subject to Section 5.5) any Person (other than a Holder of
Registrable Securities) exercising a contractual right to demand Registration,
as the case may be, proposes to sell, and (ii) second, and only if all
the securities referred to in clause (i) have been included, the number of
Registrable Securities that, in the opinion of such managing underwriter or
underwriters, can be sold without having such adverse effect, with such number
to be allocated pro  rata among the Holders that have requested to
participate in such Registration based on the relative number of Registrable
Securities requested to be included therein then held by each such Holder and
(iii) third, and only if all of the Registrable Securities referred
to in clause (ii) have been included in such Registration, any other
securities eligible for inclusion in such Registration.

 

(c)                                  No
Effect on Demand Registrations.  No
Registration of Registrable Securities effected pursuant to a request under
this Section 5.3 shall be deemed to have been effected pursuant to Section
5.2 or shall relieve the Company of its obligations under Section 5.2.

 

31

 

Section
5.4  Registration Procedures.

 

(a)                                  In
connection with the Company’s Registration obligations under Sections 5.2
and 5.3, the Company shall use its reasonable best efforts to effect
such Registration to permit the sale of such Registrable Securities in
accordance with the intended method or methods of distribution thereof as
expeditiously as possible, and in connection therewith the Company shall:

 

(i)                                     prepare the
required Registration Statement including all exhibits and financial statements
required under the Securities Act to be filed therewith, and before filing a
Registration Statement or Prospectus, or any amendments or supplements thereto,
(x) furnish to the underwriters, if any, and to the Holders of the
Registrable Securities covered by such Registration Statement, copies of all
documents prepared to be filed, which documents shall be subject to the review
of such underwriters and such Holders and their respective counsel and
(y) except in the case of a Registration under Section 5.3,
not file any Registration Statement or Prospectus or amendments or supplements
thereto to which the Holders of a majority of Registrable Securities covered by
such Registration Statement or the underwriters, if any, shall object;

 

(ii)                                  as soon as possible
(in the case of a Demand Registration, no later than 30 days after a request
for a Demand Registration) file with the SEC, and if appropriate, with the
Registrar of Companies in Bermuda, a Registration Statement relating to the
Registrable Securities including all exhibits and financial statements required
by the SEC to be filed therewith, and use its reasonable best efforts to cause
such Registration Statement to become effective under the Securities Act;

 

(iii)                               prepare and file with
the SEC, and if appropriate, with the Registrar of Companies in Bermuda, such
amendments and post-effective amendments to such Registration Statement and
supplements to the Prospectus as may be (x) requested by the Holders of a
majority of participating Registrable Securities, (y) requested by any
participating Holder (to the extent such request relates to information
relating to such Holder), or (z) necessary to keep such Registration
effective for the period of time required by this Agreement, and comply with
provisions of the applicable securities laws with respect to the sale or other
disposition of all securities covered by such Registration Statement during
such period in accordance with the intended method or methods of disposition by
the sellers thereof set forth in such Registration Statement;

 

(iv)                              notify the participating
Holders of Registrable Securities and the managing underwriter or underwriters,
if any, and (if requested) confirm such advice in writing and provide copies of
the relevant documents, as soon as practicable after notice thereof is received
by the Company (a) when the applicable Registration Statement or any
amendment thereto has been filed or becomes effective, and when the applicable
Prospectus or any amendment or supplement to such Prospectus has been filed,
(b) of any written comments by the SEC or any request by the SEC or any
other federal or state governmental authority for amendments or supplements to
such Registration Statement or such Prospectus or for additional information,
(c) of the issuance by the SEC of any stop order suspending the
effectiveness of such Registration Statement or any order by the SEC or any
other regulatory authority preventing or suspending the use of any

 

32

 

preliminary or final Prospectus or the initiation or threatening of any
proceedings for such purposes, (d) if, at any time, the representations
and warranties of the Company in any applicable underwriting agreement cease to
be true and correct and in all material respects, and (e) of the receipt
by the Company of any notification with respect to the suspension of the
qualification of the Registrable Securities for offering or sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose;

 

(v)                                 promptly notify each
selling Holder of Registrable Securities and the managing underwriter or
underwriters, if any, when the Company becomes aware of the happening of any
event as a result of which the applicable Registration Statement or the
Prospectus included in such Registration Statement (as then in effect) contains
any untrue statement of a material fact or omits to state a material fact
necessary to make the statements therein (in the case of such Prospectus and
any preliminary Prospectus, in light of the circumstances under which they were
made) not misleading or, if for any other reason it shall be necessary during
such time period to amend or supplement such Registration Statement or
Prospectus in order to comply with the Securities Act and, in either case as
promptly as practicable thereafter, prepare and file with the SEC, and furnish
without charge to the selling Holders and the managing underwriter or
underwriters, if any, an amendment or supplement to such Registration Statement
or Prospectus which shall correct such misstatement or omission or effect such
compliance;

 

(vi)                              use its reasonable best
efforts to prevent or obtain the withdrawal of any stop order or other order
suspending the use of any preliminary or final Prospectus;

 

(vii)                           promptly incorporate in a
Prospectus supplement or post-effective amendment such information as the
managing underwriter or underwriters and the Holders of a majority of
Registrable Securities being sold agree should be included therein relating to
the plan of distribution with respect to such Registrable Securities; and make
all required filings of such Prospectus supplement or post-effective amendment
as soon as practicable after being notified of the matters to be incorporated
in such Prospectus supplement or post-effective amendment;

 

(viii)                        furnish to each selling Holder
of Registrable Securities and each underwriter, if any, without charge, as many
conformed copies as such Holder or underwriter may request of the applicable
Registration Statement and any amendment or post-effective amendment thereto,
including financial statements and schedules, all documents incorporated
therein by reference and all exhibits (including those incorporated by
reference);

 

(ix)                                deliver to each selling
Holder of Registrable Securities and each underwriter, if any, without charge,
as many copies of the applicable Prospectus (including each preliminary
prospectus) and any amendment or supplement thereto as such Holder or
underwriter may request (it being understood that the Company consents to the
use of such Prospectus or any amendment or supplement thereto by each of the
selling Holders of Registrable Securities and the underwriters, if any, in
connection with the offering and sale of the Registrable Securities covered by
such Prospectus or any amendment or supplement thereto) and such other
documents as such selling Holder or

 

33

 

underwriter may request in order to facilitate the disposition of the
Registrable Securities by such Holder or underwriter;

 

(x)                                   on or prior to the
date on which the applicable Registration Statement is declared effective, use
its reasonable best efforts to register or qualify, and cooperate with the
selling Holders of Registrable Securities, the managing underwriter or
underwriters, if any, and their respective counsel, in connection with the
registration or qualification of such Registrable Securities for offer and sale
under the securities or “Blue Sky” laws of each state and other jurisdiction of
the United States as any such selling Holder or managing underwriter or underwriters,
if any, or their respective counsel request in writing and do any and all other
acts or things necessary or advisable to keep such registration or
qualification in effect for such period as required by Section 5.2(d), provided
that the Company shall not be required to qualify generally to do business in
any jurisdiction where it is not then so qualified or to take any action which
would subject it to taxation or general service of process in any such
jurisdiction where it is not then so subject;

 

(xi)                                co-operate with the
selling Holders of Registrable Securities and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold and not bearing any
restrictive legends; and enable such Registrable Securities to be in such
denominations and registered in such names as the managing underwriters may
request at least two business days prior to any sale of Registrable Securities
to the underwriters;

 

(xii)                             use its reasonable best
efforts to (A) cause the Registrable Securities covered by the applicable
Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the seller
or sellers thereof or the underwriter or underwriters, if any, to consummate
the disposition of such Registrable Securities, (B) keep such registration
or qualification in effect for so long as such registration statement remains
in effect, and (C) take any and all other actions which may be necessary
or advisable to enable each selling Holders of Registrable Securities and each
underwriter to consummate the disposition in such jurisdictions of the
securities to be sold by such Holder or underwriter, except that the Company
shall not for any such purpose be required to qualify generally to do business
as a foreign corporation in any jurisdiction wherein it would not, but for the
requirements of this Section 5.4(a)(xii), be obligated to be so
qualified;

 

(xiii)                          deliver promptly to counsel
to the Holders of Registrable Securities and each underwriter, if any,
participating in the offering of the Registrable Securities, copies of all
correspondence between the SEC and the Company, its counsel or auditors and all
memoranda relating to discussions with the SEC or its staff with respect to
such Registration Statement;

 

(xiv)                         not later than the effective
date of the applicable Registration Statement, provide a CUSIP number for all
Registrable Securities and provide the applicable transfer agent with printed
certificates for the Registrable Securities which are in a form eligible for
deposit with The Depository Trust Company;

 

34

 

(xv)                            make such representations
and warranties to the Holders of Registrable Securities being registered, and
the underwriters or agents, if any, in form, substance and scope as are
customarily made by issuers in secondary underwritten public offerings;

 

(xvi)                         enter into and perform its
obligations under such customary agreements (including underwriting and
indemnification agreements) and take all such other actions as the Holders of
at least a majority of any Registrable Securities being sold or the managing
underwriter or underwriters, if any, request in order to expedite or facilitate
the registration and disposition of such Registrable Securities;

 

(xvii)                      obtain for delivery to the
Holders of Registrable Securities being registered and to the underwriter or
underwriters, if any, an opinion or opinions from counsel for the Company dated
the effective date of the Registration Statement or, in the event of an
Underwritten Offering, the date of the closing under the underwriting
agreement, in customary form, scope and substance, which opinions shall be
satisfactory to such Holders or underwriters, as the case may be, and their
respective counsel;

 

(xviii)                   in the case of an Underwritten
Offering, obtain for delivery to the Company and the managing underwriter or
underwriters, with copies to the Holders of Registrable Securities included in
such Registration, a cold comfort letter from the Company’s independent
certified public accountants in customary form and covering such matters of the
type customarily covered by cold comfort letters as the managing underwriter or
underwriters request, dated the date of execution of the underwriting agreement
and brought down to the closing under the underwriting agreement;

 

(xix)                           cooperate with each seller
of Registrable Securities and each underwriter, if any, participating in the
disposition of such Registrable Securities and their respective counsel in
connection with any filings required to be made with the NASD or any securities
exchange on which such Registrable Securities are traded or will be traded;

 

(xx)                              cooperate with the
selling Holders of Registrable Securities and the underwriter to facilitate the
timely preparation and delivery of certificates not bearing any restrictive
legends representing the Registrable Securities to be sold, and cause such
Registrable Securities to be issued in such denominations and registered in
such names in accordance with the underwriting agreement prior to any sale of
Registrable Securities to the underwriters or, if not an underwritten offering,
in accordance with the instructions of the selling Holders of Registrable
Securities at least five business days prior to any sale of Registrable
Securities and instruct any transfer agent and registrar of Registrable
Securities to release any stop transfer orders in respect thereof;

 

(xxi)                           to the extent required by
the rules and regulations of the NASD, retain a Qualified Independent
Underwriter (as such term is defined in Schedule E to the By-Laws of the NASD),
which shall be acceptable to the Holders of a majority of Registrable
Securities;

 

(xxii)                        use its reasonable best efforts
to comply with all applicable securities laws and make available to its
security holders, as soon as practicable, an earnings statement

 

35

 

satisfying the provisions of Section 11(a) of the Securities Act
and the rules and regulations promulgated thereunder;

 

(xxiii)                     provide and cause to be maintained
a transfer agent and registrar for all Registrable Securities covered by the
applicable Registration Statement from and after a date not later than the
effective date of such Registration Statement;

 

(xxiv)                    use its reasonable best efforts to
cause all Registrable Securities covered by the applicable Registration
Statement to be listed on each securities exchange on which any of the
Company’s securities are then listed or quoted and on each inter-dealer
quotation system on which any of the Company’s securities are then quoted;

 

(xxv)                       make available upon reasonable
notice at reasonable times and for reasonable periods for inspection by a
representative appointed by the majority of the Holders of Registrable
Securities covered by the applicable Registration Statement, by any underwriter
participating in any disposition to be effected pursuant to such Registration
Statement and by any attorney, accountant or other agent retained by such
Holders or any such underwriter, all pertinent financial and other records,
pertinent corporate documents and properties of the Company, and cause all of
the Company’s officers, directors and employees and the independent public
accountants who have certified its financial statements to make themselves
available to discuss the business of the Company and to supply all information
requested by any such Person in connection with such Registration Statement as
shall be necessary to enable them to exercise their due diligence
responsibility; provided, however, that any such Person gaining
access to information regarding the Company pursuant to this Section 5.4(a)(xxv)
shall agree to hold in strict confidence and shall not make any disclosure or
use any information regarding the Company which the Company determines in good
faith to be confidential, and of which determination such Person is notified,
unless (w) the release of such information is requested or required (by
deposition, interrogatory, requests for information or documents by a
governmental entity, subpoena or similar process), (x) such information is
or becomes publicly known without a breach of this or any other agreement of
which such Person has knowledge, (y) such information is or becomes
available to such Person on a non-confidential basis from a source other than
the Company or (z) such information is independently developed by such
Person; and

 

(xxvi)                    in the case of an Underwritten
Offering, cause the senior executive officers of the Company to participate in
the customary “road show” presentations that may be reasonably requested by the
managing underwriter or underwriters in any such Underwritten Offering and
otherwise to facilitate, cooperate with, and participate in each proposed
offering contemplated herein and customary selling efforts related thereto.

 

(b)                                 The
Company may require each seller of Registrable Securities as to which any
Registration is being effected to furnish to the Company such information
regarding the distribution of such securities and such other information
relating to such Holder and its ownership of Registrable Securities as the
Company may from time to time request in writing.  Each Holder of Registrable Securities agrees to furnish such
information to the Company and to

 

36

 

cooperate with
the Company as reasonably necessary to enable the Company to comply with the
provisions of this Agreement.

 

(c)                                  Each
Holder of Registrable Securities agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section 5.4(a)(v),
such Holder will forthwith discontinue disposition of Registrable Securities
pursuant to such Registration Statement until such Holder’s receipt of the
copies of the supplemented or amended Prospectus contemplated by Section 5.4(a)(v),
or until such Holder is advised in writing by the Company that the use of the
Prospectus may be resumed, and if so directed by the Company, such Holder shall
deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Holder’s possession, of the Prospectus
covering such Registrable Securities current at the time of receipt of such notice.  In the event the Company shall give any such
notice, the period during which the applicable Registration Statement is
required to be maintained effective shall be extended by the number of days
during the period from and including the date of the giving of such notice to
and including the date when each seller of Registrable Securities covered by
such Registration Statement either receives the copies of the supplemented or
amended Prospectus contemplated by Section 5.4(a)(v) or is advised
in writing by the Company that the use of the Prospectus may be resumed.

 

(d)                                 If
any such Registration Statement or comparable statement under “Blue Sky” laws
refers to any Holder by name or otherwise as the Holder of any securities of
the Company, then such Holder shall have the right to require (i) the
insertion therein of language, in form and substance satisfactory to such
Holder and the Company, to the effect that the holding by such Holder of such
securities is not to be construed as a recommendation by such Holder of the
investment quality of the Company’s securities covered thereby and that such
holding does not imply that such Holder will assist in meeting any future
financial requirements of the Company, or (ii) in the event that such
reference to such Holder by name or otherwise is not in the judgment of the
Company, as advised by counsel, required by the Securities Act or any similar
federal statute or any state “Blue Sky” or securities law then in force, the
deletion of the reference to such Holder.

 

(e)                                  Holders
may seek to register different types of Registrable Securities simultaneously
and the Company shall use its reasonable best efforts to effect such
Registration and sale in accordance with the intended method or methods of
disposition specified by such Holders.

 

Section
5.5  Underwritten Offerings.

 

(a)                                  Demand
Registrations.  If requested by the
underwriters for any Underwritten Offering requested by Holders of Registrable
Securities pursuant to a Demand Registration under Section 5.1  or 5.2, the Company shall enter into
an underwriting agreement with such underwriters for such offering, such
agreement to be satisfactory in substance and form to the Holders of a majority
of the Registrable Securities to be included in such underwriting, and to
contain such representations and warranties by the Company and such other terms
as are generally prevailing in agreements of that type, including indemnities
no less favorable to the recipient thereof than those provided in Section 5.3.  The Holders of the Registrable Securities
proposed to be distributed by such underwriters shall cooperate with the
Company in the

 

37

 

negotiation of
the underwriting agreement and shall give consideration to the reasonable
suggestions of the Company regarding the form thereof.  Such Holders of Registrable Securities to be
distributed by such underwriters shall be parties to such underwriting
agreement, which underwriting agreement shall (i) contain such
representations and warranties by, and the other agreements on the part of, the
Company to and for the benefit of such Holders of Registrable Securities as are
customarily made by issuers to selling stockholders in secondary underwritten
public offerings and (ii) provide that any or all of the conditions
precedent to the obligations of such underwriters under such underwriting
agreement also shall be conditions precedent to the obligations of such Holders
of Registrable Securities.  Any such
Holder of Registrable Securities shall not be required to make any
representations or warranties to or agreements with the Company or the
underwriters other than representations, warranties or agreements regarding
such Holder, such Holder’s title to the Registrable Securities, such Holder’s
intended method of distribution and any other representations required to be
made by the Holder under applicable law, and the aggregate amount of the
liability of such Holder shall not exceed such Holder’s net proceeds from such
Underwritten Offering.

 

(b)                                 Piggyback
Registrations.  If the Company
proposes to register any of its securities under the Securities Act as
contemplated by Section 5.3 and such securities are to be
distributed in an Underwritten Offering through one or more underwriters, the
Company shall, if requested by any Holder of Registrable Securities pursuant to
Section 5.3 and subject to the provisions of Section 5.3(b),
use its reasonable best efforts to arrange for such underwriters to include on
the same terms and conditions that apply to the other sellers in such
Registration all the Registrable Securities to be offered and sold by such
Holder among the securities of the Company to be distributed by such
underwriters in such Registration.  The
Holders of Registrable Securities to be distributed by such underwriters shall
be parties to the underwriting agreement between the Company and such
underwriters, which underwriting agreement shall (i) contain such
representations and warranties by, and the other agreements on the part of, the
Company to and for the benefit of such Holders of Registrable Securities as are
customarily made by issuers to selling stockholders in secondary underwritten
public offerings and (ii) provide that any or all of the conditions
precedent to the obligations of such underwriters under such underwriting
agreement also shall be conditions precedent to the obligations of such Holders
of Registrable Securities.  Any such
Holder of Registrable Securities shall not be required to make any representations
or warranties to or agreements with the Company or the underwriters other than
representations, warranties or agreements regarding such Holder, such Holder’s
title to the Registrable Securities and such Holder’s intended method of
distribution or any other representations required to be made by the Holder
under applicable law, and the aggregate amount of the liability of such Holder
shall not exceed such Holder’s net proceeds from such Underwritten Offering.

 

(c)                                  Participation
in Underwritten Registrations. 
Subject to the provisions of Section 5.5(a) and (b) above,
no Person may participate in any Underwritten Offering hereunder unless such
Person (i) agrees to sell such Person’s securities on the basis provided
in any underwriting arrangements approved by the Persons entitled to approve
such arrangements and (ii) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
required under the terms of such underwriting arrangements.

 

38

 

(d)                                 Price
and Underwriting Discounts.  In the
case of an Underwritten Offering under Section 5.2, the price,
underwriting discount and other financial terms for the Registrable Securities
shall be determined by the Holders of a majority of the Registrable Securities
included in the Underwritten Offering. 
In addition, in the case of any Underwritten Offering, each of the
Holders may withdraw their request to participate in the registration pursuant
to Section 5.2 or 5.4 after being advised of such price, discount
and other terms and shall not be required to enter into any agreements or
documentation that would require otherwise.

 

Section
5.6  Registration Expenses.  All expenses incident to the Company’s
performance of or compliance with this Agreement shall
be paid by the Company, including (i) all registration and filing fees,
and any other fees and expenses associated with filings required to be made
with the SEC or the NASD, (ii) all fees and expenses in connection with
compliance with any securities or “Blue Sky” laws and determination of the
eligibility of the Registrable Securities for investment under the laws of the
various jurisdictions, (iii) all printing, duplicating, word processing,
messenger, telephone, facsimile and delivery expenses (including expenses of
printing certificates for the Registrable Securities in a form eligible for
deposit with The Depository Trust Company and of printing prospectuses),
(iv) all fees and disbursements of counsel for the Company and of all
independent certified public accountants of the Company (including the expenses
of any special audit and cold comfort letters required by or incident to such
performance), (v) Securities Act liability insurance or similar insurance
if the Company so desires or the underwriters so require in accordance with
then-customary underwriting practice, (vi) all fees and expenses incurred
in connection with the listing of the Registrable Securities on any securities
exchange or quotation of the Registrable Securities on any inter-dealer
quotation system, (vii) all applicable rating agency fees with respect to
the Registrable Securities, (viii) all reasonable fees and disbursements
of one law firm or other counsel selected by the Holders of a majority of the
Registrable Securities being registered, (ix) all fees and expenses of
accountants selected by the Holders of a majority of the Registrable Securities
being registered, (x) any reasonable fees and disbursements of
underwriters customarily paid by issuers or sellers of securities, (xi) all
fees and expenses of any special experts or other Persons retained by the
Company in connection with any Registration, (xii) fees and expenses of a
Qualified Independent Underwriter (as such term is defined in Schedule E
to the By-Laws of the NASD) and its counsel, if any, (xiii) all fees and
disbursements of the underwriters (other than underwriting discounts and
commissions), (xiv) all transfer taxes and (xv) all expenses incurred
in connection with promotional efforts or “roadshows”.  All such expenses are referred to herein as
“Registration Expenses”.

 

Section
5.7  Indemnification.

 

(a)                                  Indemnification
by the Company.  The Company agrees
to indemnify and hold harmless, to the full extent permitted by law, each
Holder of Registrable Securities, each member, limited or general partner
thereof, each member, limited or general partner of each such member, limited
or general partner, each of their respective Affiliates, officers, directors,
shareholders, employees, advisors, and agents and each Person who controls
(within the meaning of the Securities Act or the Exchange Act) such Persons and
each of their respective Representatives from and against any and all losses,
penalties, judgments, suits, costs, claims, damages, liabilities and expenses,
joint or several (including reasonable costs of investigation and legal
expenses) (each, a “Loss” and collectively “Losses”) arising out
of or based upon

 

39

 

(i) any
untrue or alleged untrue statement of a material fact contained in any
Registration Statement under which such Registrable Securities were registered
under the Securities Act (including any final, preliminary or summary
Prospectus contained therein or any amendment thereof or supplement thereto or any
documents incorporated by reference therein), or any other disclosure document
produced by or on behalf of the Company or any of its Subsidiaries including,
without limitation, reports and other documents filed under the Exchange Act,
(ii) any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein (in
the case of a Prospectus or preliminary Prospectus, in light of the
circumstances under which they were made) not misleading, (iii) any
actions or inactions or proceedings in respect of the foregoing whether or not
such indemnified party is a party thereto or (iv) any registration or
qualification of securities under “Blue Sky” laws; provided, however,
that the Company shall not be liable to any particular indemnified party to the
extent that any such Loss arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in any such
Registration Statement or other document in reliance upon and in conformity
with written information furnished to the Company by such indemnified party
expressly for use in the preparation thereof. 
This indemnity shall be in addition to any liability the Company may
otherwise have.  Such indemnity shall
remain in full force and effect regardless of any investigation made by or on
behalf of such Holder or any indemnified party and shall survive the Transfer
of such securities by such Holder.  The
Company shall also indemnify underwriters, selling brokers, dealer managers and
similar securities industry professionals participating in the distribution,
their officers and directors and each Person who controls such Persons (within
the meaning of the Securities Act and the Exchange Act) to the same extent as provided
above with respect to the indemnification of the indemnified parties.

 

(b)                                 Indemnification
by the Selling Holder of Registrable Securities.  Each selling Holder of Registrable Securities agrees (severally
and not jointly) to indemnify and hold harmless, to the fullest extent
permitted by law, the Company, its directors and officers and each Person who
controls the Company (within the meaning of the Securities Act or the Exchange
Act) from and against any Losses resulting from (i) any untrue statement
of a material fact in any Registration Statement under which such Registrable
Securities were registered under the Securities Act (including any final,
preliminary or summary Prospectus contained therein or any amendment thereof or
supplement thereto or any documents incorporated by reference therein), or
(ii) any omission to state therein a material fact required to be stated
therein or necessary to make the statements therein (in the case of a
Prospectus or preliminary Prospectus, in light of the circumstances under which
they were made) not misleading, to the extent, but only to the extent, that
such untrue statement or omission is contained in any information furnished in
writing by such selling holder to the Company specifically for inclusion in such
Registration Statement and has not been corrected in a subsequent writing prior
to or concurrently with the sale of the Registrable Securities to the Person
asserting the claim.  In no event shall
the liability of any selling Holder of Registrable Securities hereunder be
greater in amount than the dollar amount of the net proceeds received by such
Holder under the sale of Registrable Securities giving rise to such
indemnification obligation.  The Company
shall be entitled to receive indemnities from underwriters, selling brokers,
dealer managers and similar securities industry professionals participating in
the distribution, to the same extent as provided above with respect to
information furnished in writing by such Persons specifically for inclusion in
any Prospectus or Registration Statement.

 

40

 

(c)                                  Conduct
of Indemnification Proceedings.  Any
Person entitled to indemnification hereunder shall (i) give prompt written
notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that any delay or failure to so notify the
indemnifying party shall relieve the indemnifying party of its obligations
hereunder only to the extent, if at all, that it is actually and materially
prejudiced by reason of such delay or failure) and (ii) permit such
indemnifying party to assume the defense of such claim, jointly with any other
indemnifying party, with counsel reasonably satisfactory to the indemnified
party; provided, however, that any Person entitled to
indemnification hereunder shall have the right to select and employ separate
counsel and to participate in the defense of such claim, but the fees and
expenses of such counsel shall be at the expense of such Person unless
(i) the indemnifying party has agreed in writing to pay such fees or
expenses, (ii) the indemnifying party shall have failed to assume the
defense of such claim within a reasonable time after receipt of notice of such
claim from the Person entitled to indemnification hereunder and employ counsel
reasonably satisfactory to such Person, (iii) the indemnified party has
reasonably concluded (based upon advice of its counsel) that there may be legal
defenses available to it or other indemnified parties that are different from
or in addition to those available to the indemnifying party, or (iv) in
the reasonable judgment of any such Person (based upon advice of its counsel) a
conflict of interest may exist between such Person and the indemnifying party
with respect to such claims (in which case, if the Person notifies the
indemnifying party in writing that such Person elects to employ separate
counsel at the expense of the indemnifying party, the indemnifying party shall
not have the right to assume the defense of such claim on behalf of such
Person).  If the indemnifying party
assumes the defense, the indemnifying party shall not have the right to settle
such action without the consent of the indemnified party.  No indemnifying party shall consent to entry
of any judgment or enter into any settlement unless such judgment or settlement
(A) includes as an unconditional term thereof the giving by the claimant
or plaintiff to such indemnified party of an unconditional release from all
liability in respect to such claim or litigation, (B) does not include a
statement as to or an admission of fault, culpability or a failure to act, by
or on behalf of any indemnified party and (C) does not require any action
other than the payment of money by the indemnifying party.  If such defense is not assumed by the
indemnifying party, the indemnifying party will not be subject to any liability
for any settlement made without its prior written consent, but such consent may
not be unreasonably withheld.  It is
understood that the indemnifying party or parties shall not, in connection with
any proceeding or related proceedings in the same jurisdiction, be liable for
the reasonable fees, disbursements or other charges of more than one separate
firm admitted to practice in such jurisdiction at any one time unless
(x) the employment of more than one counsel has been authorized in writing
by the indemnifying party or parties, (y) an indemnified party has
reasonably concluded (based on the advice of counsel) that there may be legal
defenses available to it that are different from or in addition to those
available to the other indemnified parties or (z) a conflict or potential
conflict exists or may exist (based upon advice of counsel to an indemnified
party) between such indemnified party and the other indemnified parties, in
each of which cases the indemnifying party shall be obligated to pay the
reasonable fees and expenses of such additional counsel or counsels.

 

(d)                                 Contribution.  If for any reason the indemnification
provided for in paragraphs (a) and (b) of this Section 5.7 is
unavailable to an indemnified party or insufficient in respect of any Losses
referred to therein, then the indemnifying party shall contribute to the amount
paid or payable by the indemnified party as a result of such Loss (i) in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party on the one hand and the indemnified party

 

41

 

or parties on
the other hand in connection with the acts, statements or omissions that
resulted in such losses, as well as any other relevant equitable
considerations.  In connection with any
Registration Statement filed with the SEC by the Company, the relative fault of
the indemnifying party on the one hand and the indemnified party on the other
hand shall be determined by reference to, among other things, whether any
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the indemnifying party or by the indemnified party and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The parties
hereto agree that it would not be just or equitable if contribution pursuant to
this Section 5.7(d) were determined by pro  rata
allocation or by any other method of allocation that does not take account of
the equitable considerations referred to in the immediately preceding
paragraph.  No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. 
The amount paid or payable by an indemnified party as a result of the
Losses referred to in Sections 5.7(a) and 5.7(b) shall be
deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim.  Notwithstanding the provisions of this Section 5.7(d),
in connection with any Registration Statement filed by the Company, a selling
Holder of Registrable Securities shall not be required to contribute any amount
in excess of the dollar amount of the net proceeds received by such Holder
under the sale of Registrable Securities giving rise to such contribution
obligation.  If indemnification is
available under this Section 5.7, the indemnifying parties shall
indemnify each indemnified party to the full extent provided in Sections 5.7(a)
and 5.7(b) hereof without regard to the provisions of this Section 5.7(d).  The remedies provided for in this Section 5.7
are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any indemnified party at law or in equity.

 

Section
5.8  Rules 144 and 144A and
Regulation S.  The Company covenants
that, at its own expense, it will file the reports required
to be filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the SEC thereunder (or, if the Company is not required
to file such reports, it will, upon the request of any Holder of Registrable
Securities, make publicly available such necessary information for so long as
necessary to permit sales pursuant to Rules 144, 144A or Regulation S
under the Securities Act), and it will take such further action as any Holder
of Registrable Securities may request, all to the extent required from time to
time to enable such Holder to sell Registrable Securities without registration
under the Securities Act within the limitation of the exemptions provided by
(i) Rules 144, 144A or Regulation S under the Securities Act, as such
Rules may be amended from time to time, or (ii) any similar rule or
regulation hereafter adopted by the SEC. 
Upon the request of any Holder of Registrable Securities, the Company
will deliver to such Holder (i) a written statement as to whether it has
complied with such requirements and, if not, the specifics thereof (and such
Holder shall be entitled to rely upon the accuracy of such written statement),
(ii) a copy of the most recent annual or quarterly report of the Company,
and (iii) such other reports and documents as such Holder may request in
order to avail itself of any rule or regulation of the SEC allowing it to sell
any Registrable Securities without registration.

 

Section
5.9  Adjustments.  The Company agrees that it shall not effect
or permit to occur any combination or subdivision of shares
which would adversely affect the ability of the Holders

 

42

 

to include any
Registrable Securities in any registration contemplated by this Agreement or
the marketability of such Registrable Securities in any such registration.  The Company agrees that it will take all
steps necessary to effect, and the Shareholders shall take all Necessary Action
to effect, a combination or subdivision of shares if in the judgment of the
majority of the selling Holders of Registrable Securities or the underwriters
such combination or subdivision would enhance the marketability of the
Registrable Securities.

 

Section
5.10  Other Provisions Regarding
Registration Rights.

 

(a)                                  Except
as provided in this Agreement as it may be amended from time to time in accordance
with the express terms hereof, and until the consummation of an initial Public
Offering, the Company will not grant to any Person the right to request that
the Company register any equity securities of the Company, or any securities
convertible or exchangeable into or exercisable for such securities, other than
pursuant to the Management and Consultant Subscription Agreements or Restricted
Share Plan.

 

(b)                                 Notwithstanding
anything to the contrary in any previous agreement or security, the Company shall
have no obligations to any Shareholder with respect to the registration of any
Shares, except as provided in this Agreement.

 

Section
5.11  Holdback Agreement.  If the Company at any time shall register
Registrable Securities (including any registration
pursuant to terms hereof) for sale to the public, the Shareholders shall not
sell publicly, make any short sale of, grant any option for the purchase of, or
otherwise dispose publicly of, any Registrable Securities (other than those
Common Shares included in such registration pursuant to Article V) without the
prior written consent of the Company, for a period designated by the Company in
writing to the Shareholders, which period shall not begin more than 10 days
prior to the effectiveness of the registration statement pursuant to which such
Public Offering shall be made and shall not last more than (i) 180 days after
the effective date of the Company’s initial public offering, and (ii) 90 days
after the effective date of any other registration statement.  The Company shall obtain the agreement of any
person permitted to sell shares in a registration to be bound by and to comply
with this Section 5.11 as if such person was a Shareholder hereunder.

 

ARTICLE VI

Distributions

 

If, as a
result of a Change of Control or a public offering of the capital shares or
capital stock of any Subsidiary of the Company, the Company holds any issued
and outstanding Marketable Securities, the Company shall distribute such
Marketable Securities to the Shareholders simultaneously within 10 business
days of any such Change of Control or within 10 business days of any such
public offering, in each case subject to any “lock-up” agreement imposed by any
third party on all Shareholders entitled to receive such Marketable Securities in
connection with such Change of Control transaction or public offering, as
applicable.  Any distribution consisting
of both cash and Marketable Securities shall be made or received, as applicable
and to the extent practicable, in equal proportions of cash and such Marketable

 

43

 

Securities as to each
Shareholder receiving such distribution. 
Cash distribution shall be made by wire transfer of immediately
available funds to the account specified by such Shareholder in writing to the
Board of Directors.

 

ARTICLE VII

Tax Matters

 

Section
7.1  Elections.

 

(a)                                  It
is the intention of the parties hereto that, for U.S. federal tax purposes, the
Company be classified as a partnership, and each of Bermuda 2, Bermuda 3 and
Luxco 1 be classified as disregarded as an entity separate from its single
owner.  The Shareholders shall cause the
Company to make, and the Company shall make, an election under Treasury
Regulation section 301.7701-3 to be classified as a partnership for U.S.
federal tax purposes effective as of the date of this Agreement.  The Shareholders and the Company shall cause
each of Bermuda 2, Bermuda 3 and Luxco 1 to make an election under Treasury
Regulation section 301.7701-3 to be classified as an entity separate from its
single owner for U.S. federal tax purposes effective as of the date of this
Agreement.  Neither the Company nor any
Shareholder shall make or take, or shall cause or permit the Company, Bermuda 2,
Bermuda 3 or Luxco 1 to make or take, an election under Section 7701 of the
Code or any other action that would cause the Company, Bermuda 2, Bermuda 3 or
Luxco 1  to be treated as a corporation
for U.S. federal tax purposes.  The
Shareholders and the Company shall, and shall cause the Company, Bermuda 2,
Bermuda 3 and Luxco 1 to, file or cause to be filed all tax returns, reports
and other forms in a manner consistent with, and not take any action
inconsistent with, the classification of the Company as a partnership and each
of Bermuda 2, Bermuda 3 and Luxco 1 as disregarded as an entity separate from
its single owner, for U.S. federal tax purposes.  Notwithstanding the foregoing, if the Company determines, based
on advice of its counsel, that it is in the best interests of the Shareholders
to cause Bermuda 3 to elect to be treated as a corporation for U.S. federal tax
purposes, the Company shall cause such an election to be made for Bermuda 3.

 

(b)                                 The
Company shall, and the Shareholders and the Company shall cause the Company,
Luxco 1 and Luxco 1’s Subsidiaries to, use all commercially reasonable efforts,
(i) in the case of each company or other entity that is wholly-owned
directly or indirectly by Luxco 1 and is not an “eligible entity”(as defined in
Treasury Regulations section 301.7701-3(a)), other than Sensus Metering Systems
(Spain) SA, Sensus Metering Systems (Morocco)sa and Sensus Metering Systems
(Belgium)sa, to convert such company or other entity, as promptly as is
reasonable practicable after the date hereof, into an “eligible entity,” and
(ii)  in the case of each company or
other entity that is wholly-owned directly or indirectly by Luxco 1 and is an
“eligible entity” (including each company or other entity that is converted
into an “eligible entity”) other than Luxco 2 unless an election is made to
treat Bermuda 3 as a corporation for U.S. federal tax purposes, to make an
election under Treasury Regulation section 301.7701-3 for such company or other
entity to be classified for U.S. federal tax purposes as an entity disregarded
as separate from its owner effective as of one day after the date of this
Agreement or, in the case of a company or other entity that is converted into
an “eligible entity”, effective as of the earliest date after the date of this
Agreement that is reasonably practicable.

 

44

 

(c)                                  The
Shareholders and the Company shall, if permitted under Section 338 of the Code,
cause Luxco 1 and Luxco 1’s Subsidiaries (as applicable) to make an election
under Section 338 of the Code with respect to the acquisition of each company
or other entity that is classified as a corporation for U.S. federal tax
purposes and is acquired directly or indirectly by Luxco 1.

 

(d)                                 At
the request of any Shareholder, the Company shall make an election under
Section 754 of the Code.

 

Section
7.2  Luxco 2 Borrowing.  The parties hereto intend that Luxco 2
shall, and the parties hereto shall use all commercially
reasonable efforts to enable and cause Luxco 2 to, borrow at least
US$30,000,000 under one or more term loans made to Luxco 2 by related
parties and/or unrelated parties.

 

Section 7.3  Tax
Covenants.  (a)
Notwithstanding anything herein to the contrary, the Company shall use
reasonable best efforts to not, and to not cause or permit Bermuda 2,  Bermuda 3 or Luxco 1 to:

 

(i)                                     engage in any
activity, enter into any transaction or take any other action, which would
result in the incurrence of any “unrelated business taxable income” within the
meaning of Section 512 and Section 514 of the Code by any Shareholder, or any
direct or indirect owner of equity interests in any Shareholder, that is exempt
from U.S. federal income taxation under Section 501 of the Code;

 

(ii)                                  engage in any
activity, enter into any transaction or take any other action that would result
in the Company, Bermuda 2, Bermuda 3 or Luxco 1 being engaged, or deemed to be
engaged, in a trade or business in the United States for U.S. federal income
tax purposes, including for purposes of Section 864, 875, 882, 884 or 1446 of
the Code, or otherwise being subject to net income tax in the United States; or

 

(iii)                               purchase directly any
“United States real property interest”, including any interest (other than an
interest solely as a creditor) in a “United States real property holding
corporation”, each as defined in Section 897 of the Code and the Treasury
Regulations promulgated thereunder.

 

(b)                                 The
parties hereto shall use, and shall cause Bermuda 3 and its Subsidiaries to
use, all commercially reasonable efforts to minimize, except to the extent the
Shareholders receive distributions of cash from the Company in an amount at
least equal to the aggregate tax liability of each Shareholder and its direct
and indirect beneficial owners attributable to such income, the extent to which
Bermuda 3 and its Subsidiaries generate (i) “subpart F income” within the
meaning of Section 952(a) of the Code, (ii) a current income inclusion to any
Shareholder, or any direct indirect beneficial owner of equity interests in any
Shareholder, determined under Section 956 of the Code, or (iii) any other
income that would give rise to a current income inclusion to any Shareholder or
any direct or indirect owner of equity interests in any Shareholder under U.S.
tax laws and regulations prior to the actual receipt of a distribution of cash
or other property by such Shareholder. The parties hereto agree:

 

45

 

(i)                                     to the extent that
Bermuda 3 or any of its Subsidiaries (each of Bermuda 3 and its Subsidiaries, a
“European Affiliate”) has cash available to repay indebtedness, before such
European Affiliate makes any loan to any Subsidiary of the Company that is a
“United States person” within the meaning of Section 7701 of the Code (a “U.S.
Subsidiary”) or makes any prepayment of a loan under the Credit Agreement that
would be treated under the Credit Agreement as a repayment of a loan to a U.S.
Subsidiary, such European Affiliate shall apply that cash to fully repay (A)
indebtedness owed by any European Affiliate to any U.S. Subsidiary or (B) the
borrowing referred to in Section 7.2, provided, however,
that if the Chief Financial Officer reasonably determines in his sole
discretion that, because of the cash requirements of the U.S. Subsidiaries and
the inability to satisfy all or a portion of such cash requirements from
operations of the U.S. Subsidiaries or borrowings by the U.S. Subsidiaries
under the Credit Agreement, any credit facility that replaces the Credit
Agreement, or any other source of funds that are readily available on terms no
less favorable than under the Credit Agreement, it is in the best interests of
the Company for a European Affiliate to make a loan to a U.S. Subsidiary, this Section
7.3(b) does not prohibit such European Affiliate from making a loan to a
U.S. Subsidiary before the borrowing referred to in Section 7.2 has been
fully repaid;

 

(ii)                                  this Section
7.3(b) shall not require any action that would violate the Credit Agreement
or the Indenture, each as in effect on the date hereof, or the terms of any Permitted
Indebtedness, and shall not require the Company or any of its Subsidiaries to
request an amendment to the Credit Agreement or the Indenture or the terms of
any Permitted Indebtedness; and

 

(iii)                               this Section 7.3(b)
shall not prohibit the making of any loan by a European Affiliate to a U.S.
Subsidiary if (A) the indebtedness described in Section 7.2 has been
fully repaid, (B) no European Affiliate has any other outstanding indebtedness
(other than trade indebtedness) to a third-party lender, and (C) there is no
indebtedness owed by any European Affiliate to a U.S. Subsidiary.

 

(c)                                  The
Company will timely provide each Shareholder with all information reasonably
available to the Company, Bermuda 3, or any Subsidiary of Bermuda 3 as is
reasonably requested by such Shareholder to prepare accurately all tax returns
required to be filed by such Shareholder or any direct or indirect owner of
equity interests in any Shareholder and to comply with any reporting
requirement imposed as a result of its investment in the Company, including as
a result of Bermuda 3 or any Subsidiary of Bermuda 3 being a controlled foreign
corporation for U.S. federal income tax purposes.

 

Section
7.4  Tax Matters Partner.  Any person from time to time designated by
the Board of Directors (with such person’s consent)
shall be the “tax matters partners” under Section 6231 of the Code (the “Tax
Matters Shareholder”), whom initially shall be The Resolute SIE, L.P., and
shall be authorized and required to represent the Company (at the Company’s
expense) in connection with all examinations of the Company’s affairs by tax
authorities, including resulting administrative and judicial proceedings, and
to expend Company funds for professional services and other expenses reasonably
incurred in connection therewith.  Each
Shareholder agrees to cooperate with the Company and to do or refrain from
doing any or all things reasonably

 

46

 

requested by
the Company with respect to the conduct of such proceedings.    The Tax Matters Shareholder shall keep all
Shareholders fully informed of the progress of any such examinations, audits or
other proceedings, and each Shareholder shall have the right to participate in
any such examinations, audits or proceedings (at such Shareholder’s own
expense).  Notwithstanding the
foregoing, (i) the Tax Matters Shareholder shall not settle, concede or
compromise any issue in any such examinations, audits or other proceedings
without first obtaining the approval of the Board of Directors and (ii) in no
event shall the Tax Matters Shareholder enter into any agreement or other
arrangement with a taxing authority that could bind any Shareholder unless the
Tax Matters Shareholder has first received the written consent of the affected
Shareholder.

 

Tax
Allocations. 
For purposes of Section 704(b) of the Code and the regulations
thereunder, all income, gains, losses, deductions and credits of the Company
shall be allocated among the Shareholders in a manner that appropriately reflects
each Shareholder’s right to receive distributions with respect to all Series A
Preference Shares, Common Shares and shares of any other class of shares issued
by the Company that are held by such Shareholder.

 

ARTICLE VIII

Representations and Warranties

 

Each of the
parties to this Agreement hereby represents and warrants to each other party to
this Agreement that as of the date such party executes this Agreement:

 

Section
8.1  Existence; Authority;
Enforceability.  Such party has the
power and authority to enter into this Agreement and to carry
out its obligations hereunder.  Such
party is duly organized and validly existing under the laws of its jurisdiction
of organization, and the execution of this Agreement, and the consummation of
the transactions contemplated herein, have been authorized by all necessary
action, and no other act or proceeding on its part is necessary to authorize
the execution of this Agreement or the consummation of any of the transactions
contemplated hereby.  This Agreement has
been duly executed by it and constitutes its legal, valid and binding
obligations, enforceable against it in accordance with its terms.

 

Section
8.2  Absence of Conflicts.  The execution and delivery by such party of
this Agreement and the performance of its obligations
hereunder does not and will not (a) conflict with, or result in the breach of
any provision of the constitutive documents of such party; (b) result in any
violation, breach, conflict, default or event of default (or an event which
with notice, lapse of time, or both, would constitute a default or event of
default), or give rise to any right of acceleration or termination or any
additional payment obligation, under the terms of any contract, agreement or
permit to which such party is a party or by which such party’s assets or
operations are bound or affected; or (c) violate any law applicable to such
party.

 

Section
8.3  Consents.  Other than any consents which have already
been obtained or consents required by the Bermuda Monetary
Authority prior to the issuance or transfer of any Shares of the Company (other
than in connection with the issuance of Shares to the Resolute Investors and
the Goldman Investors), no consent, waiver, approval, authorization, exemption,
registration, license or declaration is required to be made or obtained by such
party in connection

 

47

 

with (a) the
execution, delivery or performance of this Agreement or (b) the consummation of
any of the transactions contemplated herein.

 

ARTICLE IX

Miscellaneous

 

Section
9.1  Independent Auditors; Books and
Records; Inspection.

 

(a)                                  The
books of account and records of the Company shall be audited as of the end of
each fiscal year by a firm of independent public accountants appointed by the
shareholders.

 

(b)                                 The
books and records of the Company shall be available for inspection by the
Shareholders at the principal office and place of business of the Company.

 

(c)                                  The
Company shall furnish to each Shareholder the following financial statements
and such other information and such as may be reasonably requested by a
Shareholder or by law:

 

(i)                                     as soon as
available and in any event within 45 days after the end of each quarterly
fiscal period of each fiscal year of the Company (except for the quarterly
fiscal periods ending on or prior to June 30, 2004 in which case financial
statements shall be furnished within 60 days after the end of each such
quarterly fiscal period), consolidated primary financial statements, consisting
of statements of operations, retained earnings and cash flows of the Company
and its Subsidiaries for such period and for the period from the beginning of
the respective fiscal year to the end of such period, and the related
consolidated balance sheet of the Company and its Subsidiaries as at the end of
such period (together with, in each case, supplemental financial information
including, among other things, sales, cost of goods sold and gross profit
segmented by product category, setting forth in each case in comparative form
the corresponding consolidated (and segmented) figures for the respective
period during the prior fiscal year beginning with June 30, 2005 (except that,
in the case of consolidated balance sheets, such comparison shall be to the
last day of the prior fiscal year), accompanied by a certificate of a senior
financial officer of the Company, which certificate shall state (A) that said
consolidated primary financial statements fairly present the financial
condition and results of operations of the Company and its Subsidiaries, in
each case in accordance with GAAP (except for the omission of footnotes), as at
the end of, and for, such period (subject to normal year-end audit adjustments)
and (B) said supplemental information fairly presents the information set forth
therein as at the end of, and for, such period (subject to normal year-end
audit adjustments);

 

(ii)                                  as soon as available
and in any event within 90 days after the end of each fiscal year of the
Company and its Subsidiaries (except for the fiscal year ended March 31, 2004
in which case financial statements shall be furnished within 105 days after the
end of such fiscal year) , consolidated primary financial statements,
consisting of statements of operations, retained earnings and cash flows for such
fiscal year and the related consolidated balance sheet of the Company and its
Subsidiaries as at the end of

 

48

 

such fiscal year (together with, in each case, supplemental financial
information including, among other things, sales, costs of goods sold and gross
profit segmented by product category), setting forth in each case in
comparative form the corresponding consolidated (and segmented) figures for the
respective period during the prior fiscal year beginning March 31, 2006 (except
that, in the case of consolidated balance sheets, such comparison shall be to
the last day of the prior fiscal year), and accompanied (A) in the case of said
consolidated primary financial statements of the Company and its Subsidiaries,
by an opinion thereon of independent certified public accountants of recognized
national standing, which opinion shall state that said financial statements
fairly present the financial condition and results of operations of the Company
and its subsidiaries as at the end of, and for, such fiscal year in accordance
with GAAP, and (B) in the case of said supplemental information, by a
certificate of a senior financial officer of the Company, which certificate
shall state that said supplemental information fairly presents the information
set forth therein as at the end of, and for, such fiscal year; and

 

(iii)                               copies of any proxy
statements, financial statements and other reports as the Company shall send or
make available generally to its shareholders, and copies of all regular and
periodic reports and of all registration statements (other than on Form S-8 or
Form 701 or a similar form) that the Company may file with the SEC or with any
securities exchange.

 

Section
9.2  Waiver by Shareholders.  The rights and obligations contained in this
Agreement are in addition to the relevant provisions
of the organizational documents of the Company in force from time to time and
shall be construed to comply with such provisions.  To the extent that this Agreement is determined to be in
contravention of the organizational documents of the Company, this Agreement
shall constitute a waiver by each Shareholder, to the fullest extent
permissible under applicable laws, of any right such Shareholder may have
pursuant to the organizational documents of the Company that is inconsistent
with this Agreement.

 

Section
9.3  Freedom to Pursue Opportunities.  The parties expressly acknowledge and agree
that:  (i) Each Resolute Investor,
Resolute Director, Goldman Investor, and Goldman Director has the right to, and
shall have no duty (contractual or otherwise) not to, directly or indirectly
engage in the same or similar business activities or lines of business as the
Company or its Subsidiaries, including those deemed to be competing with the
Company or its Subsidiaries; and (ii) in the event that a Resolute Investor,
Resolute Director, Goldman Investor, or Goldman Director acquires knowledge of
a potential transaction or matter that may be a corporate opportunity for both
the Company or its Subsidiaries and such Shareholder, director or any other
Person, the Shareholder or director, as applicable, shall have no duty
(contractual or otherwise) to communicate or present such corporate opportunity
to the Company or its Subsidiaries, as the case may be, and, notwithstanding
any provision of this Agreement to the contrary, shall not be liable to the
Company or its Subsidiaries or their respective Affiliates or shareholders for
breach of any duty (contractual or otherwise) by reason of the fact that such
Shareholder or director, as applicable, directly or indirectly, pursues or
acquires such opportunity for itself, directs such opportunity to another
person, or does not present such opportunity to the Company or its
Subsidiaries.

 

49

 

Section 9.4  Indemnification.  (a) 
To the fullest extent permitted by law, none of the Shareholders, their
respective Affiliates, nor any of their respective partners, officers, members,
shareholders, directors, employees, agents, consultants, legal or other
advisors nor the members of the Board of Directors (each, an “Indemnified
Party”), shall be liable to the Company or to any Shareholder for (i) any
act or omission taken or suffered by such Indemnified Party in connection with
the conduct of the affairs of the Company or otherwise in connection with this
Agreement or the matters contemplated herein, unless such act or omission
resulted from fraud, willful misconduct, gross negligence or a willful breach
of this Agreement by such Indemnified Party or (ii) any mistake, negligence,
dishonesty or bad faith of any broker or other agent of the Company unless such
Indemnified Party was responsible for the selection or monitoring of such
broker or agent and acted in such capacity with gross negligence.

 

(b)                                 The
Board of Directors may consult with legal counsel and accountants selected by
it and any act or omission suffered or taken by it on behalf of the Company or
in furtherance of the interests of the Company in good faith in reliance upon
and in accordance with the advice of such counsel or accountants shall be full
justification for any such act or omission, and the Board of Directors shall be
fully protected in so acting or omitting to act; provided that such counsel or
accountants were selected in good faith with reasonable care.

 

(c)                                  No
Shareholder shall have any personal liability whatsoever solely by reason of
its status as a Shareholder, whether to the Company, to any of the Shareholders
or to the creditors of the Company, including, without limitation, for the
debts, liabilities, contracts or other obligations of the Company or for any
losses of the Company other than any liability with respect to Shares held by
such Shareholder to the extent such Shares are not fully paid.

 

(d)                                 To
the fullest extent permitted by law, the Company shall indemnify and save
harmless each Indemnified Party from and against any and all claims,
liabilities, damages, losses, costs and expenses (including amounts paid in
satisfaction of judgments, in compromises and settlements, as fines and
penalties and legal or other costs and reasonable expenses of investigating or
defending against any claim or alleged claim) of any nature whatsoever, known
or unknown, liquidated or unliquidated, that are incurred by any Indemnified
Party and arise out of or in connection with the affairs of the Company,
including acting as a director or the equivalent of the Company, or the
performance by such Indemnified Party of any of the Board of Directors responsibilities
hereunder or otherwise in connection with the matters contemplated herein;
provided that:

 

(i)                                     each Indemnified
Party shall be entitled to indemnification hereunder only to the extent that
such Indemnified Party’s conduct did not constitute fraud, willful misconduct,
gross negligence, dishonesty or a willful breach of this Agreement; and

 

(ii)                                  the Company’s
obligations hereunder shall not apply with respect to (A) expenses that an
Indemnified Party has agreed to bear or (B) economic losses or tax obligations
incurred by an Indemnified Party as a result of such Indemnified Party’s owning
Shares other than such tax obligations incurred by an Indemnified Party as a
result of a breach by the Company of a provision in Article VII.

 

50

 

(e)                                  The
satisfaction of any indemnification and any saving harmless pursuant to this Section
9.4(e) shall be from and limited to the Company’s assets, and no
Shareholder shall have any personal liability on account thereof.

 

(f)                                    Expenses
reasonably incurred by an Indemnified Party in defense or settlement of any
claim that may be subject to a right of indemnification hereunder shall be
advanced by the Company prior to the final disposition thereof upon receipt of
an undertaking by or on behalf of the Indemnified Party to repay such amount to
the extent that it shall be determined ultimately that such Indemnified Party
is not entitled to be indemnified hereunder. 
No advances shall be made by the Company pursuant to this Section
9.4(f) without the prior consent of the Board of Directors, which consent
shall not be unreasonably withheld.

 

(g)                                 The
right of any Indemnified Party to the indemnification provided herein shall be
cumulative of, and in addition to, any and all rights to which such Indemnified
Party may otherwise be entitled by contract or as a matter of law or equity and
shall extend to such Indemnified Party’s successors, assigns and legal
representatives.

 

(h)                                 Any
Indemnified Party shall be deemed to be a creditor of the Company.

 

Section
9.5  Publicity and Confidentiality.  Each Shareholder shall keep confidential
this Agreement and the transactions contemplated
hereby and shall not disclose, issue any press release or otherwise make any
public statement in connection therewith without the prior written consent of
each other Shareholder (not to be unreasonably withheld) unless so required by
applicable law or any governmental authority; provided that no such written
consent shall be required (and each Shareholder shall be free to release such
information) for disclosures to each Shareholder’s partners, members, advisors,
employees, agents, accountants or attorneys, so long as such persons agree to
keep such information confidential.

 

Section
9.6  Acknowledgment.  Each Shareholder acknowledges and agrees
that the provisions of this Agreement have been reviewed
and are understood by such Shareholder, and expresses the will and intention of
such Shareholder and agrees not to take any action to frustrate the purposes
and provisions of this Agreement.

 

Section
9.7  Successors and Assigns; Benefit.  Except as otherwise provided herein, all of
the terms and provisions of this Agreement shall be
binding upon, shall inure to the benefit of and shall be enforceable by the
respective successors and assigns of the parties hereto.  No Shareholder may Transfer any of its
rights hereunder to any Person other than in accordance with this
Agreement.  The Company may not assign
any of its rights hereunder other than by operation of law.  If any transferee of any Shareholder shall
acquire any Shares, in any manner, whether by operation of law or otherwise,
such shares shall be held subject to all of the terms of this Agreement, and by
taking and holding such shares such Person shall be entitled to receive the
benefits of and be conclusively deemed to have agreed to be bound by and to
comply with all of the terms and provisions of this Agreement; provided,
however that the rights of the Goldman Investors set forth in Article II
shall be transferable only to Permitted Transferees.  There shall be no third-party beneficiaries to this Agreement
other than the indemnities under Section 5.7.

 

51

 

Section
9.8  Severability.  In the event that any provision of this
Agreement shall be invalid, illegal or unenforceable such provision
shall be construed by limiting it so as to be valid, legal and enforceable to
the maximum extent provided by law and the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

 

Section
9.9  Amendment and Modification;
Waiver of Compliance; Conflicts.

 

(a)                                  This
Agreement may be amended only by a written instrument duly executed by
Shareholders holding greater than 50.1% of the Common Shares; provided, however,
that no amendment or waiver of any provision or term of this Agreement shall be
made that would prejudice the rights or privileges of the Goldman Investors
unless a Majority in Interest of the Goldman Investors approve in writing such
amendment or waiver.

 

(b)                                 Except
as otherwise provided in this Agreement, any failure of any of the parties to
comply with any obligation, covenant, agreement or condition herein may be
waived by the party entitled to the benefits thereof only by a written
instrument signed by the party granting such waiver, but such waiver or failure
to insist upon strict compliance with such obligation, covenant, agreement or
condition shall not operate as a waiver of, or estoppel with respect to, any
subsequent or other failure.

 

Section
9.10  Notices.  Any notice, request, claim, demand, document
and other communication hereunder to any party shall be effective upon receipt
(or refusal of receipt) and shall be in writing and delivered personally or
sent by facsimile (with such facsimile confirmed promptly in writing sent by
certified or registered mail, return receipt requested), or first class mail,
or by Federal Express, United Parcel Service or other similar courier or other
similar means of communication, as follows:

 

(i)                                     If to the Company,
addressed to the Company c/o The Jordan Company, L.P., 48th Floor, 767 Fifth
Avenue, New York, New York 10153; Attention: 
Jonathan F. Boucher; with a copy to James B. Carlson, Mayer, Brown,
Rowe & Maw LLP; 1675 Broadway, New York, New York 10019;

 

(ii)                                  If to any Resolute
Investor, addressed to the Company or to such Resolute Investor c/o The
Resolute Fund Partners, LLC, 48th Floor, 767 Fifth Avenue, New York, New York
10153; Attention:  Jonathan F.
Boucher; with a copy to James B. Carlson, Mayer, Brown, Rowe & Maw LLP;
1675 Broadway, New York, New York 10019;

 

(iii)                               If to any Goldman
Investor, addressed to such Goldman Investor, c/o Goldman Sachs & Co., 85
Broad Street, New York, NY 10004; Attention: 
Douglas Londal; with a copy to Fried, Frank, Harris, Shriver &
Jacobson, One New York Plaza, New York, NY 10004; Attention:  Warren S. de Wied, Esq.;

 

(iv)                              If to a Shareholder other
than the Resolute Investors, or Goldman, to the address of such Shareholder set
forth in the share register of the Company;

 

or, in each case, to such other
address or facsimile number as such party may designate in writing to each
Shareholder and the Company by written notice given in the manner specified
herein.

 

52

 

All such
communications shall be deemed to have been given, delivered or made when so
delivered by hand or sent by facsimile (with confirmed transmission), on the
next business day if sent by overnight courier service (with confirmed
delivery) or when received if sent by first class mail.

 

Section
9.11  Expenses.

 

(a)                                  Expenses.  The Company shall be responsible for payment
of all reasonable out-of-pocket expenses incurred by the Resolute Investors and
the Goldman Investors in connection with the consummation of the transactions
contemplated by this Agreement (including the reasonable and documented fees
and expenses of attorneys and accountants) and all of the reasonable and
documented expenses of attorneys and other advisors in connection with any
transaction or proposed transaction relating to this Agreement arising after
the date hereof pursuant to which the rights of the Goldman Investors may be
affected adversely relative to the other Shareholders or if there otherwise is
a conflict of interest between the Goldman Investors and the Company or the
Resolute Investors, as applicable.

 

(b)                                 Other
Payments.  Notwithstanding anything
in this Agreement to the contrary, the Goldman Investors shall receive their
proportionate share (based on the relative Share ownership of the Goldman
Investors and the Resolute Investors) of any assets paid to or received by any
Resolute Investor or any Affiliate, thereof (other than the Company and its
Subsidiaries) in connection with a judgment, compromise or settlement of a
claim asserted by or on behalf of the Company or any of its Subsidiaries in
connection with the Purchase Agreement.

 

Section
9.12  Entire Agreement.  The provisions of this Agreement and the
other writings referred to herein or delivered pursuant hereto which form a
part hereof contain the entire agreement among the parties hereto with respect
to the subject transactions contemplated thereby and supersede all prior oral
and written agreements and memoranda and undertakings among the parties hereto
with regard to such subject matter.  The
Company represents to the Shareholders that the rights granted to the
Shareholders hereunder do not in any way conflict with and are not inconsistent
with the rights granted or obligations accepted under any other agreement
(including the Bye-Laws) to which the Company is a party.

 

Section
9.13  Inspection.  For so long as this Agreement shall be in
effect, this Agreement shall be made available for inspection by any
Shareholder at the principal executive offices of the Company.

 

Section
9.14  Recapitalizations,
Exchanges, Etc., Affecting the Common Shares; New Issuances.  The provisions of this Agreement shall
apply, to the full extent set forth herein with respect to the Common Shares
and the Series A Preference Shares and to any and all equity or debt securities
of the Company or any successor or assign of the Company (whether by merger,
amalgamation, consolidation, sale of assets, or otherwise) which may be issued
in respect of, in exchange for, or in substitution of, such equity or debt
securities and shall be appropriately adjusted for any share dividends, bonus
issues, splits, reverse splits, combinations, subdivisions, reclassifications,
recapitalizations, reorganizations and the like occurring after the date
hereof.

 

53

 

Section 9.15  LITIGATION.  THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED, APPLIED AND
ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.  EACH OF THE PARTIES HERETO ACKNOWLEDGES AND
AGREES THAT IN THE EVENT OF ANY BREACH OF THIS AGREEMENT, THE NON-BREACHING
PARTY WOULD BE IRREPARABLY HARMED AND COULD NOT BE MADE WHOLE BY MONETARY
DAMAGES, AND THAT, IN ADDITION TO ANY OTHER REMEDY TO WHICH THEY MAY BE ENTITLED
AT LAW OR IN EQUITY, THE PARTIES SHALL BE ENTITLED TO SUCH EQUITABLE OR
INJUNCTIVE RELIEF AS MAY BE APPROPRIATE. 
THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO
PRECLUDE THE ENFORCEMENT OF ANY JUDGMENT OF A NEW YORK FEDERAL OR STATE COURT,
OR THE TAKING OF ANY ACTION UNDER THIS AGREEMENT TO ENFORCE SUCH A JUDGMENT, IN
ANY OTHER APPROPRIATE JURISDICTION.

 

IN THE EVENT
ANY PARTY TO THIS AGREEMENT COMMENCES ANY LITIGATION, PROCEEDING OR OTHER LEGAL
ACTION IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT
OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, THE PARTIES TO THIS
AGREEMENT HEREBY (1) AGREE UNDER ALL CIRCUMSTANCES ABSOLUTELY AND
IRREVOCABLY TO INSTITUTE ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION IN A
COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE SOUTHERN DISTRICT OF NEW
YORK, WHETHER A STATE OR FEDERAL COURT; (2) AGREE THAT IN THE EVENT OF ANY
SUCH LITIGATION, PROCEEDING OR ACTION, SUCH PARTIES WILL CONSENT AND SUBMIT TO
THE PERSONAL JURISDICTION OF ANY SUCH COURT DESCRIBED IN CLAUSE (1) OF THIS
SECTION AND TO SERVICE OF PROCESS UPON THEM IN ACCORDANCE WITH THE RULES AND
STATUTES GOVERNING SERVICE OF PROCESS (IT BEING UNDERSTOOD THAT NOTHING IN THIS
SECTION SHALL BE DEEMED TO PREVENT ANY PARTY FROM SEEKING TO REMOVE ANY ACTION
TO A FEDERAL COURT IN THE SOUTHERN DISTRICT OF NEW YORK; (3) AGREE TO
WAIVE TO THE FULL EXTENT PERMITTED BY LAW ANY OBJECTION THAT THEY MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY SUCH LITIGATION, PROCEEDING OR ACTION IN ANY
SUCH COURT OR THAT ANY SUCH LITIGATION, PROCEEDING OR ACTION WAS BROUGHT IN ANY
INCONVENIENT FORUM; (4) AGREE, AFTER CONSULTATION WITH COUNSEL, TO WAIVE
ANY RIGHTS TO A JURY TRIAL TO RESOLVE ANY DISPUTES OR CLAIMS RELATING TO THIS
AGREEMENT; (5) AGREE TO SERVICE OF PROCESS IN ANY LEGAL PROCEEDING BY MAILING
OF COPIES THEREOF TO SUCH PARTY AT ITS ADDRESS SET FORTH HEREIN FOR
COMMUNICATIONS TO SUCH PARTY; (6) AGREE THAT ANY SERVICE MADE AS PROVIDED
HEREIN SHALL BE EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND
(7) AGREE THAT NOTHING HEREIN SHALL AFFECT THE RIGHTS OF ANY PARTY TO
EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

 

Section
9.16  Counterparts.  This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

54

 

*       *       *

 

55

 

IN WITNESS
WHEREOF, each of the undersigned has signed this Agreement as of the date first
above written:

 

	
   

  	
  SENSUS
  METERING SYSTEMS

  (BERMUDA 1) LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jonathan F.
  Boucher

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President

  	
   

  

 

Shareholders Agreement

 

 

	
   

  	
  THE RESOLUTE
  SIE, L.P.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Resolute
  Fund Partners, LLC,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  Jonathan F. Boucher

  
	
   

  	
   

  	
  Title:
  Authorized Member

  
	
   

  	
   

  
	
   

  	
  THE RESOLUTE
  FUND NETHERLANDS PV I, L.P.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Resolute
  Fund Partners, LLC,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  Jonathan F. Boucher

  
	
   

  	
   

  	
  Title:
  Authorized Member

  
	
   

  	
   

  
	
   

  	
  THE RESOLUTE
  FUND NETHERLANDS PV II, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Resolute
  Fund Partners, LLC,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  Jonathan F. Boucher

  
	
   

  	
   

  	
  Title:
  Authorized Member

  
	
   

  	
   

  
	
   

  	
  THE RESOLUTE
  FUND SINGAPORE PV, L.P.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Resolute
  Fund Partners, LLC,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  Jonathan F. Boucher

  
	
   

  	
   

  	
  Title:
  Authorized Member

  

 

 

	
   

  	
  THE RESOLUTE
  FUND NQP, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Resolute
  Fund Partners, LLC,

  
	
   

  	
  its General
  Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  Jonathan F. Boucher

  
	
   

  	
   

  	
  Title:
  Authorized Member

  

 

 

	
   

  	
  GS CAPITAL
  PARTNERS 2000, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GS Advisors
  2000, L.L.C.,

  
	
   

  	
  its General
  Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GS CAPITAL
  PARTNERS 2000 OFFSHORE, L.P.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  GS Advisors
  2000, L.L.C.,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GS CAPITAL
  PARTNERS 2000 GMBH & CO. BETEILIGUNGS KG

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Goldman
  Sachs Management GP GmbH,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GS CAPITAL
  PARTNERS 2000 EMPLOYEE

  FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GS Employee
  Funds 2000 GP, L.L.C.,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  GOLDMAN
  SACHS DIRECT INVESTMENT

  FUND 2000, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GS Employee
  Funds 2000 GP, L.L.C.,

  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT A

 

Shareholder Schedule

 

	
  Shareholder

  	
   

  	
  Class A Common

  Shares

  	
   

  	
  Series A Preference

  Shares

  	
   

  
	
  The Resolute Fund SIE, L.P.

  	
   

  	
  23,069,783.60

  	
   

  	
  92,279.1344

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Resolute Fund Netherlands PV I, L.P.

  	
   

  	
  1,088,625.20

  	
   

  	
  4,354.5008

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Resolute Fund Netherlands PV II, L.P.

  	
   

  	
  907,187.80

  	
   

  	
  3,628.7512

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Resolute Fund NQP, L.P.

  	
   

  	
  27,215.60

  	
   

  	
  108.8624

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Resolute Fund Singapore PV, L.P.

  	
   

  	
  907,187.80

  	
   

  	
  3,628.7512

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GS Capital Partners 2000, L.P.

  	
   

  	
  6,965,049

  	
   

  	
  27,861

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GS Capital Partners 2000 Offshore, L.P.

  	
   

  	
  2,530,830

  	
   

  	
  10,123

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GS Capital Partners 2000 GmbH & Co.
  Beteiligungs KG

  	
   

  	
  291,123

  	
   

  	
  1,164

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GS Capital Partners 2000 Employee Fund,
  L.P.

  	
   

  	
  2,212,998

  	
   

  	
  8,852

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Goldman Sachs Direct Investment Fund 2000,
  L.P.

  	
   

  	
  1,000,000

  	
   

  	
  4,000

  	
   

  

 

 

EXHIBIT B

 

Form of Resolute Subscription Agreement

 

 

EXHIBIT C

 

Form of Goldman Subscription Agreement

 

 

EXHIBIT D

 

Form of Amended Bye-Laws of the Company

 

 

EXHIBIT E

 

Form of Management Consulting Agreement

 

 

EXHIBIT F

 

Form of Proxy

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]