0001644600-16-000139.txt : 20160516 0001644600-16-000139.hdr.sgml : 20160516 20160516164928 ACCESSION NUMBER: 0001644600-16-000139 CONFORMED SUBMISSION TYPE: 1-A PUBLIC DOCUMENT COUNT: 15 FILED AS OF DATE: 20160516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNATION, LLC CENTRAL INDEX KEY: 0001549679 IRS NUMBER: 272819085 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 1-A SEC ACT: 1933 Act SEC FILE NUMBER: 024-10552 FILM NUMBER: 161654683 BUSINESS ADDRESS: STREET 1: 12802 TAMPA OAKS BLVD STREET 2: SUITE 405 CITY: TAMPA STATE: FL ZIP: 33637 BUSINESS PHONE: 813-349-2020 X5035 MAIL ADDRESS: STREET 1: 12802 TAMPA OAKS BLVD STREET 2: SUITE 405 CITY: TAMPA STATE: FL ZIP: 33637 1-A 1 primary_doc.xml 1-A LIVE 0001549679 XXXXXXXX false false UNATION, LLC DE 2010 0001549679 4899 27-2819085 33 0 12802 Tampa Oaks Blvd, Suite 405 Tampa FL 33637 813-349-2020 Andrew Stephenson Other 23959.00 0.00 0.00 4209337.00 4245684.00 353611.00 3409729.00 4846522.00 -600838.00 4245684.00 1544.00 578439.00 371585.00 -1667675.00 -0.31 -0.31 Kristina Helferty, CPA Series A Units 2000000 N/A N/A Series B Units 3298916 N/A N/A 0 0 N/A N/A true true false Tier2 Audited Equity (common or preferred stock) Y Y N Y N Y 2500000 0 12.00 21750000.00 8250000.00 0.00 0.00 30000000.00 FOLIOfn Investments 1200000.00 Kristina Helferty, CPA 5000.00 KHLK LLP 40000.00 48015 20505000.00 false true AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA PR RI SC SD TN TX UT VT VA WA WV WI WY A0 A1 A2 A3 A4 A5 A6 A7 A8 A9 B0 Z4 AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA PR RI SC SD TN TX UT VT VA WA WV WI WY A0 A1 A2 A3 A4 A5 A6 A7 A8 A9 B0 Z4 false UNATION, LLC Series B Units 227709 0 $2732508 at par Rule 506(b) of Regulation D PART II AND III 2 circular.htm UNATION.: Circular

PRELIMINARY OFFERING CIRCULAR DATED MAY 16, 2016

UNATION, LLC

12802 Tampa Oaks Blvd., Suite 405
Tampa, FL 33637

Up to 2,500,000 Series C Non-Voting Membership Units including up to 833,333 Series C Non-Voting Membership Units sold by current securityholders. Sales by current securityholders will not begin until the company has sold at least $15,000,000 worth of its Series C Non-Voting Membership Units.

The current holders of Series A Membership Units of the company will convert their Series A Membership Units into Series C Non-Voting Membership Units at a 10 to 1 ratio prior to selling to investors in this Offering.

SEE “SECURITIES BEING OFFERED” AT PAGE 32

Price to Public Underwriting
discount and
commissions
Proceeds to
issuer before
expenses,
discounts and
commissions*
Proceeds to
current
security
holders**
Per unit for sales of $0 to $5,000,000 $12.00 -- $12.00 --
Per unit for sales of $15,000,000 to $30,000,000 $12.00 -- $2.10 $9.90
Total Maximum $30,000,000 -- $21,750,000 $8,250,000

* The company expects that the amount of expenses of the offering that it will pay will be approximately $80,000, not including state filing fees. The company has engaged FOLIOfn Investments, Inc. to serves as its placement agent to assist in the placement of its securities. See the “Plan of Distribution” for details regarding the compensation payable to placement agents.

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** See the “Plan of Distribution” for details regarding the method of determining when current securityholders may sell their interests.

This offering is being made on a best efforts basis without any minimum investment target and will be made on continuous basis as provided by Rule 241(d)(3)(i)(F) for up to two years following the date of qualification by the Commission.

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OR GIVE ITS APPROVAL OF ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION

GENERALLY NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(d)(2)(i)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO www.investor.gov.

This offering is inherently risky. See “Risk Factors” on page 6.

Sales of these securities will commence on approximately July 16, 2016.

The company is following the “Offering Circular” format of disclosure under Regulation A.

     AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF SUCH STATE. THE COMPANY MAY ELECT TO SATISFY ITS OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A

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NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF THE COMPANY’S SALE TO YOU THAT CONTAINS THE URL WHERE THE FINAL OFFERING CIRCULAR OR THE OFFERING STATEMENT IN WHICH SUCH FINAL OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.

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TABLE OF CONTENTS

SUMMARY 6
RISK FACTORS 8
THE COMPANY’S BUSINESS 12
DILUTION 18
USE OF PROCEEDS TO ISSUER 21
THE COMPANY’S PROPERTY 22
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23
DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES 26
COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS 28
SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS 29
INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS 31
SECURITIES BEING OFFERED 32
PLAN OF DISTRIBUTION AND SELLING SECURITYHOLDERS 35
FINANCIAL STATEMENTS FOR THE FISCAL YEARS ENDING DECEMBER 31, 2015 and DECEMBER 31, 2014 36
INDEX TO EXHIBITS 55

In this Offering Circular, the terms UNATION, LLC”, “UNATION” or “the company” refers to UNATION, LLC and its subsidiaries, UNATION Technologies, LLC and UNATION Entertainment Group, LLC, on a consolidated basis.

THIS OFFERING CIRCULAR MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

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SUMMARY

This Offering Circular Summary highlights information contained elsewhere and does not contain all of the information that you should consider in making your investment decision. Before investing in the company’s Series C Units, you should carefully read this entire Offering Circular, including the company’s financial statements and related notes. You should also consider amount other information, the matters described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”.

The Company

UNATION is connecting the world through events. We are an event-driven social platform that believes life is a series of events, and by connecting around the events of our lives we form meaningful and relevant relationships.

UNATION first organized as a limited liability company on June 10, 2010. The concept for UNATION was conceived on a napkin on a move set by the company’s founder, John Bartoletta. The idea was simple — Events are what bring people together and branding around events is critical for creating honest and lasting relationships between the event creators and event attendees.

Our Product

UNATION has developed its UNATION app for use through an internet browser, or through Android or iOS on a person’s smartphone. The app allows users to create, discover, and obtain information needed to attend events.

We have recently expanded the functionality of the app to allow for registration and ticketing of events. This functionality is the first prong of our efforts to monetize the UNATION app.

Our Growth Strategy

Our base of operations is in Tampa, Florida. We have recently begun expansion into Key West, FL, Orlando, FL, and Atlanta, GA, with plans to also move into Miami, FL and potentially Nashville, TN by the end of 2016. We intend to further expand into the top 26 metropolitan areas in the United States by end of 2018. Expectations and planning are that we will have a presence in 15 cities by the end of 2017.

Our strategy when entering a new market is four-fold. By partnering with local event organizers, creating Brand Ambassadors among college Greek systems, partnering with local influencers, and the use of targeted marketing through social ad campaigns, we reach our desired user base and acquire new UNATION users.

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The Offering

We are offering investors the opportunity to purchase Series C limited liability company membership units at $12.00 per unit. The Series C Units do not include any voting rights or the ability to direct the operations of the Company.

Key Risk Factors of this Offering

We are in competition with other social media companies that are larger and better funded.

We have not yet realized significant revenues from operations and it is uncertain we will be able to do so.

Our business depends on being able to scale and maintain our technical infrastructure.

Investors in this Offering will receive non-voting Series C Units and will have no ability to meaningfully direct the operations of the Company.

The rights of investors are determined by the Operating Agreement of the Company rather than any body of state corporations law.

We have elected to be taxed as a partnership, meaning that any gains and losses will flow directly to the holder of membership Units of the Company in proportion to their percent ownership of the Company.

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RISK FACTORS

The SEC requires the company to identify risks that are specific to its business and its financial condition. The company is still subject to all the same risks that all companies in its business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.

Risks Related to Our Business and Industry

If we fail to retain existing users or add new users, our business may be significantly harmed. We depend on our users to create events and identify interest in those events. Further, event organizers will only utilize our product if there are sufficient number of potential attendees that they will be able to reach through the product. Potential attendees will only utilize our product if there are a sufficient number of events to discover and attend. Our future financial performance will be significantly determined by adding, retaining, and engaging active users.

We face competition from larger and better funded social media companies. Our current competitors have significantly greater resources and better competitive positions in certain markets than we do. These factors may allow out competitors to respond more effectively than us to new or emerging technologies and changes in the market.

We may not be successful in our efforts to grow and monetize the UNATION app. We are currently pre-revenue and have not charged users for the services contained in the UNATION app. Our future financial performance will depend on monetizing the services included in the app and growing our user base. It is unclear how charging for our services will impact the existing user base or future growth of our user base.

We operate in a highly competitive space. Competition presents an ongoing threat to the success of our business. Our competitors may develop products, features, or services that are similar to ours or that achieve greater market acceptance. Our competitors may also undertake more far-reaching and successful product development efforts or marketing campaigns.

If we are not able to maintain and enhance our brand, our ability to expand our base of users may be impaired, and our business and financial results may be harmed. Maintaining and enhancing our brand is critical to expanding our base of users. Our brand image will depend on our ability to provide users with the ability to find and share exciting, local events. If we fail to successfully maintain and enhance the UNATION brand, or if we incur excessive expenses in this effort, our business and financial results may be adversely affected.

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We have not yet generated any revenue from the UNATION app and there are no assurances we will be able to generate revenue. Since the launch of the UNATION app in beta, we have not generated any revenue from the app. We have created partnerships and promoted the app with the condition that we would not charge for the service. Our goal is to monetize the app, however there are no assurances we will be successful in doing so.

We are controlled by a small team with substantially greater rights than those of investors. We have a small team of Managers and executive officers that exercise substantial control over the company. These Managers and executive officers have received Series A Units of the company, which are the only class entitled to vote on any matters presented to the members of the company.

We cannot be certain that additional financing will be available on reasonable terms when required, or at all. We will need additional financing in the future. Our ability to obtain additional financing, if and when required, will depend on investor demand, our operating performance, the condition of the capital markets, and other factors. When we seek such additional financing, the terms may not be favorable to us, or such financing may not be available at all.

Our business depends on our ability to maintain and scale our technical infrastructure. Our reputation and ability to attract, retain, and serve our users depends on the reliable performance of the UNATION app and its underlying technical infrastructure. Our systems may not be adequately designed with the necessary reliability and redundancy to avoid performance delays or outages that could be harmful to our business. If UNATION is unavailable when users attempt to access it, users may not continue using the app.

We rely on third party developers and third party providers of network infrastructure. Our developers and network infrastructure are provided by third party contractors. We rely on those third parties to fulfil their obligations under existing agreements. Should those third parties not fulfil their obligations to UNATION we may be required to find other third parties, if any are available. Our financial results could be negatively affected if we are required to change developers and network infrastructure providers.

We cannot assure you that we will effectively manage our growth. We currently operate in a limited number of markets around UNATION’s base of operations in Tampa, FL. As we expand to additional metropolitan regions, we will be required to take on additional personnel. Our management may not be able to manage such growth effectively.

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Computer malware, viruses, hacking, phishing attacks, and spamming could harm our business and results of Operations. As an app hosting information that may be used to identify users and their networks, we may be the subject of computer malware, viruses, hacking, phishing attacks, and spamming. Should we be unable to effectively manage these attacks and threats to user information, we may experience harm to our reputation and our ability to retain existing users and attract new users.

Our auditor has issued a going concern opinion. UNATION is a development stage company and we have suffered losses from operations since the inception of the company. While the management of the company is taking steps to raise additional funds and we believe we will be able to start generating revenue from the company’s core product, there are no assurances that these capital raising efforts will be successful or that we will receive significant revenue from operations.

We have entered into a loan agreement with a related party to the company. We have entered into a loan agreement with Marquesas Capital Partners, LLC, a company controlled by the Managers of UNATION. The loan agreement was first entered into on January 31, 2013. The terms of the loan have been altered from time to time. Should we be unable to continue operations, Marquesas Capital Partners, LLC, as a creditor to the company, would receive proceeds from any liquidation to satisfy the loan prior to any disbursement to unit holders of the company, including investors in this Offering.

Risks Related to this Offering and Ownership of Our Series C Units

The price of our Class C Units has been set arbitrarily. The price of our Series C Units was determined internally based on the management’s perceived value of the company. This price is the same as the price that was offered to previous investors in the Series B Units of the Company. We have not obtained any third-party valuation reports or negotiated the price with any third party.

There is no current market for any of our Series C Units. There is no formal marketplace for the resale of the Series C Units of the company. Units may be traded on the over-the-counter market to the extent that any demand exists. Investors should assume that they may not be able to liquidate their investment for some time, or be able to pledge their Units as collateral.

Investors hold minority interests in the company. UNATION has already issued 2,000,000 units of its Series A Units, and 3,298,916 of its Series B Units. Investors will hold minority interests in the company and will not be able to direct its operations. The rights, preferences, and privileges of the Series C Units are provided in the Amended and Restated Operating Agreement of the company, which provides substantial control of the company to the holders of Series A Units.

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The Series C Units are non-voting units. The Series C Unit holders do not have the right to vote on any manner presented to the Members of the company. We rely on the flexibility provided under Section 302 of the Delaware Limited Liability Company Act which allows for any limited liability company, through its operating agreement, to provide any class of members with no voting rights.

We have elected to be taxed as a partnership. Each member of the company, that is, those persons holding any number of Series A, Series B, or Series C Units of the company will have individual tax liability for the profits and losses of the company. Investors will be informed of this individual liability when we provide Internal Revenue Service Form K-1s to each investor on an annual basis.

The rights of investors are determined by the Operating Agreement of the company. Limited liability companies are creatures of contract governed by the specific terms of its own operating agreement. This is in contrast with corporations that are governed by state corporation codes in addition to their own certificate of incorporation. Among other terms, the Amended and Restated Operating Agreement of UNATION, LLC sets out the rights of Members, the rules regarding allocation of profits and losses, the rules regarding distributions, the powers of the Managers and executive officers of the company, and other significant terms. Investors should carefully review the Amended and Restated Operating Agreement and should only invest if they agree to be bound by those terms.

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THE COMPANY’S BUSINESS

Basic Information about the Company and Overview

We founded the company in June 2010 in order to create an event-driven social platform. We believe life is a series of events and by connecting around the events of our lives, we are giving users the ability to form meaningful and relevant relationships.

Since 2010, we have expanded our operations from Tampa, FL to Orlando, FL, Key West, FL and to Atlanta, GA. As of April 2016, we are still pre-revenue and are beginning to move beyond the start-up phase of operations.

We have two non-operating, wholly owned subsidiary entities for the company. These entities are UNATION Technologies, LLC, a Texas organized limited liability company, and UNATION Entertainment Group, LLC, a Delaware organized limited liability company.

Principal Products and Services

Our core product is the UNATION app, currently available through the Apple App Store and through Google Play as well as available through our web-based app and Check in app. The app allows businesses and people to create, discover, and share local events, such as concerts, nightlife, restaurant specials, festivals, date nights, and other social gatherings.

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The format of the app allows event organizers to build brand recognition. To us, branding means that users have control of the appearance of their profile and everything on it, from photos to events. This branding focus provides users with the ability to put their best image forward and showcase their content in the way they see fit.

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Users of the app benefit from the ease of finding local events and building relationships with people who share the same interest. Users find the UNATION to be a useful tool to find events by scrolling through what is happening in their area and by filtering those searches based on categories of events, dates, and event creators. Once finding the event, a user is provided with all the pertinent details right in the app, including date, time, description, ticket links, directors, who’s going, and photos.

For businesses and event organizers, the UNATION app delivered a relevant audience looking for this to do. To that end, UNATION is a free promotional tool for anyone interested in promoting an event.

In March 2016, we expanded the capabilities of the app to allow for ticketing and registration for events with robust administrative reporting features. Some of the features of the ticketing platform include:

Create ticket •  Absorb fees
Edit ticket Multiple ticket levels
Buy ticket Promo codes
Link your bank account Add to calendar
Pass on fees Registration

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Reporting Check in App

Ticketing and registration is our first revenue generating function of the UNATION app. UNATION receives a small registration fee for every ticket sold, which can be absorbed by the event organizer or passed onto purchasers.

In the future, we plan to introduce premium application services and promoted content as sources of revenue to UNATION.

UNATION distinguishes itself in event discovery with the quality of events and depth of search options. UNATION not only allows for small user generated events to populate the system, it houses all the major events in a specific area as well. On UNATION you will find the farmer’s market and the Taylor Swift concert. No other event discovery websites allow for such diversity. We also curate the Top List of events happening in your area.

Market

UNATION is focused on events. This event focus requires building local networks of event organizers and attendees. We first launched in Tampa, FL. More recently, we have expanded to Orlando, FL, Key West, FL and Atlanta, GA.

By the end of 2017, we plan on having a presence in the top 26 metropolitan areas in the United States. These regions are home to over 135 million people.

Effectively, the scope of our market is only limited by the number of event organizers in the cities in which we operate. Nationwide, every year there are thousands of professional sporting events, as well as hundreds of thousands of nightlife activities, restaurant promotions, and concerts. Each of these organizers is part of the potential market for UNATION.

Our pricing model for ticketing services is based on percentage of the ticket price. As such, we are the beneficiaries of the general trend towards higher ticket prices for concerts and sporting events. For instance, the current average ticket price for a music concert is $74.25, as determined by Pollstar in its 2015 Year End Stats & Analysis. This represents an increase of $2.81, or 4% over the previous year.

Marketing/Business Development

We had an extensive Beta release period in 2013 and 2014. During that time, we engaged a number of partners and tested our system. These partnerships included: live streaming every game from the United States Soccer League and the Major Indoor Soccer League; being the event social hub for the St. Petersburg Grand Prix; conducting tests with mixed martial arts and professional karate tournaments; and the Ybor City Chamber of Commerce and Ybor Merchant’s Association.

During the Beta release period, we had hundreds of thousands of unique users to the UNATION app with millions of page views. Using advanced analytics on those users, we were able to identify what features of the app were successful, and what required modification. We gained additional feedback through user testing groups and management efforts interviewing over 1,500 of our initial users.

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When we open in a new city or region, we take four primary initiatives. First, we partner with relevant local events. Second, we identify college brand ambassadors and reach out to Greek societies. Third, we partner with local influencers. Fourth, we use targeted advertising to population segments that we have identified as most likely to adopt usage of the UNATION app. These efforts typically result in user acquisition at a cost of $1 per user, with some campaigns only costing approximately $0.33 per user.

Competition

We believe we offer a unique product that is not being provided by other social media services. While there are other apps and services that allows for discovery and promotion of events, we are not aware of any competitor that includes the same robust features for event organizers and users to create, promote, and discover events.

UNATION distinguishes itself in event promotion and ease of creation by adding the mobile component to the equation. Currently, an event creator is unable to create events from their phone on Eventbrite, which is arguably the top user generated event site in the United States. However, an event creator can do so on UNATION. We also differentiate in price and speed to market. Many event creators spend thousands of dollars for an event page, attached to an e-commerce engine, with the ability for tickets and registration. On UNATION, it is free to set all of that up as a user. We only make money when the event creator sells tickets.

Development Team and Network Infrastructure

We utilize in-house contractors to develop the prototype and products that UNATION brings to the market. We also have an ongoing business relationship with West Agile Labs in San Francisco, CA, which is responsible for developing the technical infrastructure supporting the UNATION app.

Additionally, we leverage cloud computing from Amazon Web Services (“AWS”) for our hardware needs. Cloud computing provides a simple way to access servers, storage, databases and a broad set of application services over the Internet. AWS owns and maintains the network-connected hardware required for these application services, while we provision and use what we need via a web application.

Employees

We currently have 33 people working for UNATION on a full time, part time, or contract basis.

Intellectual Property

In the scope of their work developing the UNATION App, any contractor hired by UNATION is required to acknowledge that the work product is the property of UNATION.

We have filed for trademark protection on three marks used by the company as a means to protect our brand and image, as well as promote the UNATION app. These marks include:

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Serial Number Mark Date Filed
85250129 UNATION February 23, 2011
85379969 It’s where you live July 25, 2011
85379701 Affinity Bonding July 25, 2011

Legal Proceedings

We are currently involved in two legal proceedings. The first is a lawsuit brought by Bridgeline Digital, Inc. against the company in Massachusetts in regards to a contract entered into between Bridgeline Digital, Inc. and the company. The law suit was filed in October 2012. The company has challenged the claims of Bridgeline and the lawsuit is currently ongoing.

The second legal proceeding involves a lawsuit brought by the company against Compuware Corp in September 2011 in Florida. In the lawsuit we allege that Compuware was in breach of a contract entered into with UNATION. We are currently in settlement negotiations with Compuware.

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DILUTION

Dilution means a reduction in value, control or earnings of the units the investor owns.

Immediate dilution

An early-stage limited liability company typically sells its units or membership interests (or grants options over its units) to its founders and early employees at a very low cash cost, because they are, in effect, putting their “sweat equity” into the company. When the company seeks cash investments from outside investors, like you, the new investors typically pay a much larger sum for their units than the founders or earlier investors, which means that the cash value of your stake is diluted because all the units are worth the same amount, and you paid more than earlier investors for your shares.

The following table compares the price that new investors are paying for their units with the effective cash price paid, or to be paid, by existing unit holders, at a price of $12.00 per unit. The table presents units and the weighted effective price by series of unit issued since inception.

                  Effective Cash Price  
      Year Issued     Issued Units     Per Unit at Issuance  
  Series A Units   2010     2,000,000   $  0.06  
  Series B Units (Acquired by Investors)*   2010 -2016     2,111,916   $  11.67  
  Series B Units (Grants as compensation)**   2011 - 2016     1,187,000   $  10.84  
  Total Units Outstanding         5,298,916   $ 7.10  
  Series C Units (Investors in the offering, assuming $30 Million raised 2,500,000 $ 12.00
  Total After inclusion of this Offering         7,798,916   $  8.67  

* Includes units that were issued pursuant to a 3 for 1 split effected on March 31, 2016. Units were originally purchased at a cash price of $10.00 or $12.00.

** Includes units issued as compensation for services to partners, in exchange for technology, and in exchange to settle disputes.

The following table demonstrates the dilution that new investors will experience upon investment in the Company. This table uses the Company’s tangible net book value as of December 31, 2015 of $(613,226), which is derived from the net equity of the Company in the December 31, 2015 financial statements. The offering costs assumed include a 4% commission on sales of the units in the offering. The table presents two scenarios: a raise of $15,000,000 in which no sales are made by selling securityholders, and a fully subscribed $30,000,000 raise that includes selling securityholders.

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    $15 Million Raise   $30 Million Raise  
  Price per Units $  12.00   $  12.00  
  Units Issued   1,250,000     2,500,000  
  Capital Raised $  15,000,000   $  30,000,000  
  Less: Offering Costs $  (600,000 ) $  (1,200,000 )
  Less: Sales by Existing Securityholders $  -0-   $  (12,375,000 )
  Net Offering Proceeds $  14,400,000   $  16,425,000  
  Net Tangible Book Value Pre-Financing $  (613,226 ) $  (613,226 )
  Net Tangible Book Value Post-Financing $  13,786,774   $  15,811,774  
               
  Units Issued and Outstanding Pre-Financing at 04/30/2016   5,298,916     5,298,916  
  Post-Financing Units Issued and Outstanding   6,548,916     7,730,166  
               
  Net tangible book value per unit prior to offering $  2.60   $  2.98  
  Increase/(Decrease) per unit attributable to new Investors $  2.11   $  2.05  
  Net tangible book value per unit after offering $  2,517,061.34   $  2,590,569.55  
  Dilution per unit to new investors ($) $  0.50   $  0.94  
  Dilution per unit to new investors (%)   19.09%     31.45%  

Future dilution

Another important way of looking at dilution is the dilution that happens due to future actions by the company. The investor’s stake in a company could be diluted due to the company issuing additional units. In other words, when the company issues more units, the percentage of the company that you own will go down, even though the value of the company may go up. You will own a smaller piece of a larger company. This increase in number of units outstanding could result from a securities offering (such as an initial public offering, another crowd funding round, a venture capital round, angel investment), employees exercising options, or by conversion of certain instruments (e.g. convertible bonds, preferred units or warrants) into units.

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If the company decides to issue more units, an investor could experience value dilution, with each unit being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per unit (though this typically occurs only if the company offers dividends, and most early stage companies are unlikely to offer dividends, preferring to invest any earnings into the company).

The type of dilution that hurts early-stage investors most occurs when the company sells more units in a “down round,” meaning at a lower valuation than in earlier offerings. An example of how this might occur is as follows (numbers are for illustrative purposes only):

 

In June 2014 Jane invests $20,000 for units that represent 2% of a company valued at $1 million.

In December the company is doing very well and sells $5 million in units to venture capitalists on a valuation (before the new investment) of $10 million. Jane now owns only 1.3% of the company but her stake is worth $200,000.

In June 2015 the company has run into serious problems and in order to stay afloat it raises $1 million at a valuation of only $2 million (the “down round”). Jane now owns only 0.89% of the company and her stake is worth only $26,660.

This type of dilution might also happen upon conversion of convertible notes into units. Typically, the terms of convertible notes issued by early-stage companies provide that in the event of another round of financing, the holders of the convertible notes get to convert their notes into equity at a “discount” to the price paid by the new investors, i.e., they get more units than the new investors would for the same price. Additionally, convertible notes may have a “price cap” on the conversion price, which effectively acts as a per unit price ceiling. Either way, the holders of the convertible notes get more units for their money than new investors. In the event that the financing is a “down round” the holders of the convertible notes will dilute existing equity holders, and even more than the new investors do, because they get more units for their money. Investors should pay careful attention to the amount of convertible notes that the company has issued (and may issue in the future), and the terms of those notes.

If you are making an investment expecting to own a certain percentage of the company or expecting each unit to hold a certain amount of value, it’s important to realize how the value of those units can decrease by actions taken by the company. Dilution can make drastic changes to the value of each unit, ownership percentage, voting control, and earnings per share.

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USE OF PROCEEDS TO ISSUER

The net proceeds of a fully subscribed offering to UNATION, after total offering expenses, placement agent and custody fees, and sales by current securityholders will be approximately $20.15 million, depending on the final placement agent and custody fees paid to FOLIOfn Investments, Inc. We plan to use these proceeds as follows:

Approximately $12.83 million for marketing, sales, and event development efforts.

• 

Approximately $620,000 for ongoing technology development.

• 

Approximately $1.4 million for general and administrative expenses of the company.

Approximately $5.7 million to service and repay a loan issued to the company by Marquesas Capital Partners, LLC, a company controlled by the management of UNATION. The loan was originated on January 31, 2013 in the amount of $2.5 million and carries an interest rate of 12 percent per annum. The terms of the loan have been amended from time to time in response to the capital needs of the company. The principal amount of the loan was later increased to $4,344,729. As of December 31, 2015, the unpaid principal balance equaled $3,409,729 with accrued interest of $1,083,182. The loan is secured by the property and assets of the company. No principal needs to be repaid until the maturity of the loan on January 30, 2017.

Because this offering is being made on a “best efforts” basis, without a minimum offering amount, we may close the offering without sufficient funds for all the intended purposes set out above.

To help ensure the company receives sufficient capital to fund its operations, current securityholders will not be able to sell their Units until we have received at least $15 million in gross investment. Should we only raise $15 million from investors, the net proceeds to the company after offering expenses, placement agent and custody fees will be approximately $14.15 million, depending on the final placement agent and custody fees paid to FOLIOfn Investments, Inc. Under this scenario, the use of proceeds would be as follows:

Approximately $9.5 million for marketing, sales, and event development efforts.

   

Approximately $330,000 for ongoing technology development.

   

Approximately $810,000 for general and administrative expenses of the company.

   

Approximately $3.56 million to service and repay a loan issued to the company by Marquesas Capital Partners, LLC.

The above description of the anticipated use of proceeds is not binding on the company and is merely description of our current intentions. We reserve the right to change the above use of proceeds if management believes it is in the best interests of the company.

21


THE COMPANY’S PROPERTY

We operate from two locations in Tampa, Florida. The corporate headquarters for the company is located at 12802 Tampa Oaks Blvd, Suite 405, Tampa, FL 33637. This location also serves as the headquarters office for Highstreet Group, LLC, an investment management firm operated by UNATION executive officers John Bartoletta and Jody Clermont. Highstreet Group, LLC allows the company to use this location without cost.

The company’s second location for the company is at 324 S. Hyde Park Ave, Suite 405, Tampa, FL 33637. All of our technical and development operations are carried out from this location. Our current lease for these premises will expire on July 31, 2017.

The network infrastructure that is used to host the UNATION App is leased from Amazon Web Services. The arrangement with Amazon Web Services will allow us to increase our server utilization as demand and usage of the UNATION App increases.

22


MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes included in this Offering Circular. The following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements.

Results of Operations

The UNATION App is free to download for any user. Our business model is to generate revenue primarily from taking a percentage of ticket sales and from advertising on the App. As of December 31, 2015, we have still been in developmental stages of operations, and testing the UNATION App in our home market of Tampa, FL, where we allowed users to test the features of the App without charge. As such, we have recognized minimal revenue from advertising and ticketing services. For year-end 2015, the Company had revenues of $1,544, and the year-end 2014, the company had revenues of $11,994.

Offsetting that revenue is the cost of operations of the Company for development and support of the App along with the cost to host the App on Amazon’s servers. In 2015, we spent $492,652 on contract labor for development support of the App, compared to $501,251 in 2014. Our costs to host the App in 2015 were $67,433 compared to $112,407 in 2014. This drop was due to efficiency improvements in the use of server resources.

We recognize advertising and marketing expenses as they occur. We have not yet embarked onto any significant marketing efforts. In 2015 we engaged with Starshop, Inc. for marketing services. As part of that engagement, we loaned Starshop $500,000 in three separate notes bearing 6% interest with a maturity date of August 2017. As of March 2, 2016, Starshop was in breach of the marketing agreement and our ability to collect on the notes is in question. As such, we have decided to expense the loan as a marketing expense for 2015.

During the development stage of the Company, our management is receiving limited compensation from the company. Only two of our officers, Georges Beardsley and Jody Clermont are directly compensated by the Company. That compensation amounted to a total of $89,000 in 2015, compared to $48,000 in 2014.

The result of the foregoing is that we incurred a net loss of $1,667,675 in 2015, compared to a net loss of $1,209,179 in 2014. An increased net loss of $458,496, or approximately 38%. By excluding the one-time marketing expense of $500,000 incurred due to the breach of the marketing agreement by Starshop, our net loss between 2014 and 2015 decreased by $41,504.

Liquidity and Capital Resources

As of December 31, 2015, the Company’s cash and cash equivalents on hand was $23,959, which comprises the entirety of the Company’s current assets. At that time, the cash and cash equivalents on hand were not sufficient to cover the current liabilities of the Company, including $253,611 in current accounts payable.

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Additionally, in order to continue development of the UNATION App, and support the current users of the App, the Company will be required to compensate its development team working on a contract basis. We expect that the Company will pay approximately $500,000 to its development team working on contract over the next 12 months.

In order to meet its current liabilities, the Company will continue to raise funds from accredited investors. In 2015, the Company raised $2,275,443 from accredited investors who purchased the Series B Units of the Company and has demonstrated the ability to raise funds as needed. Between January 1, 2016 and April 30, 2016, the Company received approximately $467,000 from accredited investors who purchased Series B Units.

If required, the Company may also turn to Marquesas Capital Partners, LLC to request additional funds to be loaned to the Company at the same terms as have been loaned previously.

While these sources of liquidity are potentially available, there can be no assurances that the Company will be able to raise funds from additional outside investors or from Marquesas Capital Partners.

Plan of Operations

Over the next 12 months we plan on monetizing the UNATION App. As of April 2016, the App has been developed to the point that we have moved beyond the testing phases and can roll out our ticketing services for event organizers in a manner that we will be able to receive a percentage fee on ticket sales made through the App. Ticketing will be the primary revenue source for the Company.

Additionally, we will be adding premium application services that will be made available to event organizers. We will charge for some of these apps that we intend to roll out. Our intent is that the premium apps will allow for event organizers to engage with their attendees on a deeper level, making it an appealing option for organizers.

The third revenue stream we intend to tap into over the next 12 months is allowing event organizers to promote their events through the UNATION App. In this way, promoted events would appear at the top of any user search for events in their area. Organizers will pay a fee to promote their event.

Over the next 12 months we also will take steps to expand into a greater number of metropolitan markets in the United States. We have identified 26 metropolitan markets that we want to be in by the end of 2017. These markets are home to over 135 million people.

Trend Information and Metrics

We care about three key metrics: activation, retention, and viral coefficient. Activation is defined as a user who joins our App and does something we would like them to do, such as follow an event or create an event.

Retention is defined as a user who comes back to the App more than once a month. A strong retention rate lowers our user acquisition cost. Viral coefficient is defined as when one user is responsible for getting another user to join. We measure this based on the number of other persons a user invites to the App (i.e., a user that invites 10 friends would have a viral coefficient of 10).

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We also measure user engagement based on the amount of time spent in the App. In our iPhone beta release, we saw users increase the average time spent on the App from 4:38 to 11:15.

25


DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES

The following table sets out the company’s officers and managing members.

Name Position Age Term of Office (if
indefinite, give date
appointed)
Approximate hours per
week (if part-time)/full-
time
Executive Officers:
John Bartoletta Chairman 52 June 2010 20
George Beardsley Chief Strategy Officer 49 June 2010 Full time
Dennis Thomas  Chief Financial Officer 57 June 2010 8
Jody Clermont Chief Operating Officer 54 December 2011 25
         
Managing Members:
John Bartoletta Managing Member 52 June 2010 20
Dennis Thomas Managing Member   57 June 2010 8
         
Significant Employees:
N/A        

John Bartoletta Founder / Chairman

Mr. Bartoletta is an impassioned entrepreneur and the founder of UNATION. His passion for mathematics and complex algorithms for financial investing, combined with recent experiences in multi-media and film, led him to a belief that there was an opportunity in communications, digital-media and branding. UNATION is the result of his dedication for the past five years.

Prior to founding UNATION, Mr. Bartoletta founded The High Street Group, LLC in Tampa, FL and was its CEO for sixteen years. High Street is an independent investment firm focused on the capital markets. Mr. Bartoletta developed and implemented High Street’s proprietary quantitative-style investment methodology known as Dynamic Style Rotation and Dynamic Trend Algorithms.

Mr. Bartoletta is a member of the American Business Conference (ABC), a finalist for the 2002 Small Business of the Year by the U.S. Congress and Small Business Administration, and a guest lecturer at the graduate-level at the University of Florida. He attended the University of Michigan, where he concentrated his studies in Economics and Finance.

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George Beardsley, III Chief Strategy Officer, Co-Founder

Mr. Beardsley is responsible for creating, executing and sustaining product direction, as well as strategic marketing and operational initiatives. Mr. Beardsley provides over twenty years of online business and creative development experience. Prior to founding UNATION, Mr. Beardsley built and ran several successful businesses in sectors including business to consumer (B2C) Internet commerce, as well as traditional and online publishing.

Mr. Beardsley, also a former golf professional, has served on the Boards for a number of charities, including the Chair Scholars Foundation for over ten years. He has also served as guest lecturer at the graduate-level at the University of South Florida and University of Tampa.

Dennis K. Thomas, CPA Chief Financial Officer

Mr. Thomas oversees all financial aspects of the company including: preparing the financing strategy, financial and capital planning, annual budgeting and accounting policies.

Prior to joining UNATION, Mr. Thomas was CFO of The High Street Group, LLC and a partner of CPA Partners, LLC., an accounting firm specializing in tax planning for closely held companies and their owners. He also provides management advisory services in areas including company sales, mergers and acquisitions, venture capital funding and international structures. Prior to establishing his own practice in 1994, Dennis was a partner with a large central Florida accounting firm and the CEO of a private company.

Mr. Thomas received his bachelor’s degree in Accounting and Finance from the University of South Florida and is licensed as a Certified Public Accountant.

Jody D. Clermont Chief Operating Officer

Mr. Clermont is responsible for meeting our strategic operational goals and managing investor relations.

Prior to joining UNATION, Mr. Clermont spent twenty years with Syniverse Technologies, formerly GTE, and held multiple senior management positions within the Finance, Technology, Operations and CEO Staff areas. Most recently he served as, Vice President of Global Operational Excellence, Vice President of Business Integrity/Quality Assurance and Director of Six Sigma. Mr. Clermont is known for developing and leading high performance, data driven teams. Major projects include, managing the Los Angeles CA, Cellular Call box Installations, implementing Syniverse’s first Wireless Fraud Resource Center and leading the successful rollout of the US Wireless Number Portability System.

Mr. Clermont’s naval studies included two years of Electronics and one year of Business Management. He holds several certifications, including a PMP Certification in Project Management and a Six Sigma Black Belt Certification. Mr. Clermont is an active member of the Tampa Bay Technology Forum and a decorated Navy Veteran.

27


COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS

For the fiscal year ended December 31, 2015only two of our Managing Members and executive officers received compensation from the Company. The compensation is as follows:

Name Capacities in
which
compensation
was received
Cash
compensation
($)
Other
compensation
($)
Total
compensation
($)
George Beardsley Chief Strategy Officer $48,000 N/A $48,000
Jody Clermont Chief Operating Officer $41,000 N/A $41,000

For the fiscal year ended December, 2015, we paid did not pay our Managing Members for their services as Managing Members.

28


SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS

The below table identifies the ownership and acquirable ownership of certain executive officers of the company holding more than 10 percent of any class of the company’s units as of April 30, 2016.

Title of class Name and
address of
beneficial
owner
Amount and
nature of
beneficial
ownership
Amount and
nature of
beneficial
ownership
acquirable
Percent of
class
Series A Units John
Bartoletta,
17007 Abastros
De Avila,
Tampa, FL
33613*
1,500,000 Units -- 75.00%
Series A Units Dennis
Thomas, 910
Jungle Avenue
N, St.
Petersburg, FL
33710†
400,000 Units -- 20.00%
Series B Units John
Bartoletta,
17007 Abastros
De Avila,
Tampa, FL
33613*
-- 525,000 Units 13.13%
Series B Units Dennis
Thomas, 910
Jungle Avenue
N, St.
Petersburg, FL
33710†
-- 140,000 Units 3.50%
Series C Units John
Bartoletta,
17007 Abastros
De Avila,
Tampa, FL
33613*
-- 2,250,000 Units 75.00%
Series C Units Dennis
Thomas, 910
Jungle Avenue
N, St.
-- 600,000 Units 20.00%
  Petersburg,
FL 33710†
     

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* Units are held by Marquesas Capital Partners, LLC for the benefit of John Bartoletta.
†Units are held by Marquesas Capital Partners, LLC and Centurion Enterprises, LLC for the benefit of Dennis Thomas.
‡ The amount and nature of beneficial ownership acquirable is based on the authorized but unissued Series B Units and Series C Units, as of April 30, 2016, that are deemed to be owned by the holders of Series A Units.

The final column (Percent of Class) includes a calculation of the amount the person owns now, plus the amount that person is entitled to acquire. That amount is then shown as a percentage of the outstanding amount of securities in that class if no other people exercised their rights to acquire those securities. The result is a calculation of the maximum amount that person could ever own based on their current and acquirable ownership, which is why the amounts in this column will not add up to 100%.

30


INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS

The company has received a loan from Marquesas Capital, LLC to fund its operations. Marquesas Capital is controlled by UNATION’s Managers. The loan was first issued to the company in the principal amount of $2.5 million in July 2013 at an annual interest rate of 12 percent. Since then, the loan has been modified from time to time. As of December 31, 2015, the current balance on the loan, including principal and accrued interest, is $4,492,911.

The day-to-day bookkeeping and financial records and tax reporting of the company is maintained by CPA Partners, LLC, an accounting firm owned by Dennis Thomas, who also serves as UNATION’s CFO.

31


SECURITIES BEING OFFERED

General

We are offering Series C Non-Voting Membership Units to investors in this offering.

The following description summarizes important terms of the classes of units of UNATION. This summary does not purport to be complete and is qualified in its entirety by the provisions of the Amended and Restated Operating Agreement, which has been filed as an Exhibit to the Offering Statement of which this Offering Circular is part. For a complete description of UNATION’s classes of membership interests, you should refer to its Amended and Restated Operating Agreement and application provisions of the Delaware Limited Liability Company Act.

At the commencement of this offering, the authorized number and classes of units consists of 2,000,000 Series A Units, 4,000,000 Series B Units, and 3,000,000 Series C Units.

As of April 30, 2016, the outstanding units of UNATION included: 2,000,000 Series A Units, 3,298,916 Series B Units, and 0 Series C Units.

Series A Units

Allocation of Profits and Losses

Profits and losses of the company will be first allocated to each holder of Series A Units in proportion to the holder’s ownership interest, which is determined by dividing the number of Series A Units by the aggregate number of all authorized units of UNATION. Series A Units holders are also entitled to their pro rata share of authorized, but unissued Series B and Series C Units when determining their ownership interest. The 10 for 1 conversion terms identified below do not apply to the determination of ownership interest.

Distributions

When cash of the company is available for distribution to each holder of the company’s units, the Managers of the company, in their sole and absolute discretion, may distribute that cash to the unit holders. Distributions will first be made to each holder of Series A Units in proportion to the holder’s ownership interest, which is determined by dividing the number of Series A Units by the aggregate number of all authorized units of UNATION. Series A Units holders are also entitled to their pro rata share of authorized, but unissued Series B and Series C Units when determining their ownership interest. The 10 for 1 conversion terms identified below do not apply to the determination of ownership interest.

Voting Rights

Each holder of Series A Units is entitled to 10 votes per Unit on any matter submitted to the vote of the Members of the company.

32


Conversion Right

Each holder of Series A Units may convert the holder’s Series A Units to Series C Units of the company at a ratio of 1 Series A Unit to 10 Series C Units. It is anticipated that current holders of Series A Units will convert their Units to Series C Units at various times during the period in which this Offering Statement is qualified and make such Units available for purchase by investors.

Series B Units

Allocation of Profits and Losses

After profits and losses of the company are allocated to the holders of Series A Units, profits and losses will then be allocated to each holder of Series B and Series C Units in proportion to the holder’s ownership interest, which is determined by dividing the number of Series B Units by the aggregate number of all authorized units of UNATION.

Distributions

When cash of the company is available for distribution to each holder of the company’s units, the Managers of the company, in their sole and absolute discretion, may distribute that cash to the unit holders. After distributions have been made to the holders of Series A Units, distributions will then be made to each holder of Series B and Series C Units in proportion to the holder’s ownership interest, which is determined by dividing the number of Series B Units by the aggregate number of all authorized units of UNATION.

Voting Rights

The Series B Units of the company do not include any right to vote on any matters presented to the Members of the company.

Series C Units

Allocation of Profits and Losses

After profits and losses of the company are allocated to the holders of Series A Units and Series B Units, profits and losses will then be allocated to each holder of Series C and Series B Units in proportion to the holder’s ownership interest, which is determined by dividing the number of Series C Units by the aggregate number of all authorized units of UNATION.

Distributions

When cash of the company is available for distribution to each holder of the company’s units, the Managers of the company, in their sole and absolute discretion, may distribute that cash to the unit holders. After distributions have been made to the holders of Series A Units and Series B Units, distributions will then be made to each holder of Series C and Series B Units in proportion to the holder’s ownership interest, which is determined by dividing the number of Series C Units by the aggregate number of all authorized units of UNATION.

33


Voting Rights

The Series C Units of the company do not include any right to vote on any matters presented to the Members of the company.

34


PLAN OF DISTRIBUTION AND SELLING SECURITYHOLDERS

Plan of Distribution

We are offering up to 2,500,000 Series C Units of the Company, as described in this Offering Circular. We have engaged FOLIOfn Investments, Inc. (“FOLIOfn”) to act as a placement agent of the Company and to hold custody of the Series C Units for the benefit of investors in this Offering. FOLIOfn is under no obligation to purchase any securities or arrange for the sale of any specific number or dollar amount of securities

Commissions and fees

We are obligated to pay a commission to FOLIOfn for any securities sold by its efforts. Should purchases be made as a result of the efforts of UNATION, LLC or purchases by existing customers of Highstreet Financial, LLC, a registered investment adviser owned by UNATION CEO John Bartoletta, we are under no obligation to pay commission to FOLIOfn on those sales.

    Per Unit  
Public offering price $ 12.00  
Placement agent commissions $ 0.48  
Proceeds, before expenses, to us $ 11.52  

In addition to the fees paid on the sale of securities by the efforts of FOLIOfn, FOLIOfn will be compensated one percent of the per Unit price to maintain custody of the Units for the benefit of investors in this Offering.

Selling Securityholders

Below is a table of the current beneficial holders of the Series A Units of UNATION who will convert their current Units into Series C Units, at a ratio of 1 to 10, and sell to investors in this Offering. Sales by existing securityholders will not begin until after the Company has achieved $15 million in gross sales of its Series C Units in this Offering. To provide additional detail on the selling securityholders, the table includes information on sales made at gross sales of $20 million and $30 million in this Offering.

          Class C Units     Class C Units     Class A Units     Class A Units  
          Held     Held     Held     Held  
          After     After     After     After  
          Conversion     Conversion     Conversion     Conversion  
Current Security Holder   Class A Units Held     ($20MM)     ($30 MM)   ($20 MM)   ($30 MM)
John Bartoletta   1,500,000     93,750     515,625     1,490,625     1,448,438  
Dennis Thomas   400,000     25,000     137,500     397,500     386,250  
George Beardsley   100000     6,250     34,375     99,375     96,563  
                               
Total   2,000,000     125,000     687,500     1,987,500     1,931,250  

35


FINANCIAL STATEMENTS FOR THE FISCAL YEARS ENDING DECEMBER 31, 2015 and DECEMBER 31, 2014

The balance sheets of UNATION, LLC for the fiscal years ended December 31, 2015 and December 31, 2014, and the statements of operations, changes in members’ equity, and cash flows of UNATION, LLC for each such period have been included in this Offering Circular with the Independent Auditor's Report of Kristina Helferty, CPA, independent certified public accountant, and upon the authority of said CPA as expert in accounting and auditing.

36


UNATION, LLC

AUDITED FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014


KRISTINA HELFERTY, CPA
13575 58TH STREET N
CLEARWATER, FL 33760
(727) 310-2000

37


TABLE OF CONTENTS

  Page
INDEPENDENT AUDITORS' REPORT 39 - 40
     Financial Statements for the Years Ended December 31, 2015 and 2014:  
           Balance Sheet 41
           Statement of Operations 42
           Statement of Changes in Members’ Equity 43
           Statement of Cash Flows 44
           Notes to Financial Statements 45 - 54

38



INDEPENDENT AUDITORS’ REPORT

Board of Managers
UNATION, LLC
Tampa, FL

We have audited the accompanying financial statements of UNATION, LLC (a developmental stage Company), which comprise the Balance Sheets as of December 31, 2015 and 2014, and the related Statements of Operations, Changes in

Members’ Equity, and Cash Flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements 7are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the UNATION, LLC as of December 31, 2015 and 2014, and the results of their operations and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

13575 58th Street N, Clearwater, FL 33760 * (727) 310-2000 * Fax (727) 310-2001

39


Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the financial statements, the Company has suffered losses from operations, which raises substantial doubt about its ability to continue as a going concern. Management is taking steps to raise additional funds to address its operating and financial cash requirements to continue operations. The Company’s ability to continue as a going concern is dependent upon raising additional funds through equity financing and generating revenue. There are no assurances the Company will receive the necessary funding or generate revenue necessary to fund operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to that matter.

The financial statements contain no adjustments for the outcome of this uncertainty.

Kristina Helferty, CPA
Kristina Helferty, CPA

May 10, 2016

13575 58th Street N, Clearwater, FL 33760 * (727) 310-2000 * Fax (727) 310-2001

40


UNATION, LLC

BALANCE SHEETS

DECEMBER 31, 2015 AND 2014

    2015     2014  
   Current Assets            
             Cash and Cash Equivalents $  23,959   $  18,326  
             Total Current Assets   23,959     18,326  
   Property and Equipment, Net   4,209,337     3,749,330  
   Other Assets            
             Intangible Assets, Net   12,388     13,582  
             Total Other Assets   12,388     13,582  
   Total Assets $  4,245,684   $  3,781,238  
LIABILITIES AND MEMBERS' EQUITY             
    2015     2014  
   Current Liabilities            
             Accounts Payable $  253,611   $  329,920  
             Payroll Taxes Payable   -     430  
             Accrued Litigation Reserve   100,000     400,000  
             Total Current Liabilities   353,611     730,350  
   Long-Term Liabilities            
             Long-Term Note Payable   3,409,729     3,586,500  
             Accrued Interest   1,083,182     672,994  
             Total Long-Term Liabilities   4,492,911     4,259,494  
             Total Liabilities   4,846,522     4,989,844  
   Members' Equity   (600,838 )   (1,208,606 )
   Total Liabilities and Members' Equity $  4,245,684   $  3,781,238  

See accompanying notes to financial statements

41


UNATION, LLC

STATEMENTS OF OPERATIONS

YEARS ENDED DECEMBER 31, 2015 AND 2014

    2015     2014  
             
Revenues $  1,544   $  11,994  
             
Cost of Operations            
           Contract Labor   492,652     501,251  
           Software Subscriptions   18,354     20,232  
           Hosting Services   67,433     112,407  
             
           Total Cost of Operations   578,439     633,890  
             
           Gross Profit (Loss)   (576,895 )   (621,896 )
             
General and Administrative Expenses            
           Advertising and Marketing Expense   521,279     -  
           Depreciation Expense   370,391     363,998  
           Management Fees   89,000     48,000  
           Rent Expense   54,137     76,188  
           Legal and Professional Fees   28,771     14,850  
           Other Expenses   16,921     73,777  
           Office Expenses   9,087     9,276  
           Amortization Expense   1,194     1,194  
             
           Total General and Administrative Expenses   1,090,780     587,283  
             
Net Income (Loss) $  (1,667,675 ) $  (1,209,179 )

See accompanying notes to financial statements

42


UNATION, LLC

STATEMENTS OF CHANGES IN MEMBERS' EQUITY

YEARS ENDED DECEMBER 31, 2015 AND 2014

    Total  
Balance, December 31, 2013 $  (344,569 )
Contributions   528,988  
Prior Period Adjustment   (183,846 )
Net Loss   (1,209,179 )
Balance, December 31, 2014   (1,208,606 )
Contributions   2,275,443  
Net Loss   (1,667,675 )
Balance, December 31, 2015 $  (600,838 )

See accompanying notes to financial statements

43


UNATION, LLC

STATEMENT OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2015 AND 2014

    2015     2014  
             
Cash Flows from Operating Activities:            
       Net Loss $  (1,667,675 ) $  (1,209,179 )
       Adjustments to Reconcile Net Loss to Net Cash            
       Used in Operating Activities:            
                 Depreciation   370,391     363,998  
                 Amortization   1,194     1,194  
                 Increase(Decrease)in:            
                           Accounts Payable   (76,309 )   46,195  
                           Accrued Interest Capitalized   410,188     672,994  
                           Payroll Taxes Payable   (430 )   338  
                           Accrued Litigation Reserve   (300,000 )   -  
             
       Net Cash Used in Operating Activities   (1,262,641 )   (124,460 )
             
Cash Flows from Investing Activities            
       Purchases of Property and Equipment   (830,398 )   (1,026,994 )
             
       Net Used in Investing Activities   (830,398 )   (1,026,994 )
             
Cash Flows from Financing Activities            
       Net Change in Notes Payable - Short Term   (176,571 )   591,500  
       Contributions   2,275,443     528,988  
             
       Net Cash Provided by Financing Activities   2,098,872     1,120,488  
             
Net Increase (Decrease) in Cash   5,833     (30,966 )
             
Cash at Beginning of Year   18,126     49,092  
             
Cash at End of Year $  23,959   $  18,126  

See accompanying notes to financial statements

44


UNATION, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE A – NATURE OF COMPANY

UNATION, LLC (a developmental stage Company) is organized as a Delaware Limited Liability Company. The intention of the Company is to operate as a social engagement Internet platform that will allow a business/brand or person to create meaningful and relevant events, built around their unique brand. Using the event structure, a business can more effectively identify and engage their best customers, while at the same time extend brand recognition by enabling the proper context of sharing and recommending to their customers’ relevant friends.

From an individual user perspective, the Company’s “network” makes it extremely easy to find something to do, while at the same time build relationships with people who share the same interest. Also, an individual user can create private “lifecycle” events, such as birthday parties, graduations, etc. The power user can further leverage the Company’s technology to add tickets and registration to their event, while accessing robust administrative reporting features, such as “attendee reports,” “ticket reports,” “payment reports,” “check in reports,” and much more. Users access the network through the proprietary owned iPhone App, Android App, Web App, and Check in App.

The Company currently maintains its corporate office in Tampa, Florida.

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  1. Basis of Presentation

The financial statements of the Company have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (US GAAP).

  2. Use of Estimates

Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. These estimates and assumptions affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses. Actual results could vary from the estimates that were used.

45


UNATION, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

  3. Fair Value Measurement

The financial statements are prepared in accordance with US GAAP standards for all financial assets and liabilities and for nonfinancial assets and liabilities recognized or disclosed at fair value in the financial statements or on a recurring basis (at least annually). The standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on a measurement date. The standard also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.

  4. Fair Value of Financial Instruments

At December 31, 2015 and 2014, the following methods, assumptions, and accounting principles are used to estimate the fair value of each of the following classes of financial instruments for which it was practical to estimate that value:

Cash- The carrying amount reported in the balance sheets approximates fair value because of the short maturity of those instruments.

Accounts PayableThe carrying amount reported in the balance sheets approximated fair value because of the short maturity of those instruments.

Long-Term Note Payable and Accrued Interest – The carrying value reported in the balance sheets approximates fair value due to market interest rates associated with the payable.

  5. Cash Accounts

For purposes of the statement of cash flows, cash includes cash held in bank accounts with maturities of three months or less. The financial instruments that potentially subject the Company to credit risk are the cash balances, that at times during the years ended December 31, 2015 and 2014, may have exceeded the federally insured limit. However, the Company has not experienced and does not expect to incur any losses in such accounts.

46


UNATION, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

  6. Property and Equipment

Property and equipment are recorded at cost when acquired and are held for use. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets. Improvements are capitalized and maintenance and repairs are charged to operations when incurred. Software developed is being capitalized during the developmental stages. Interest accrued on loans acquired to develop the software is also being capitalized under US GAAP requirements. See NOTE E. The lives used in computing depreciation are as follows:

    Years
     
  Computer Equipment    5
  Software Acquired    3
  Software Developed    15

Expenditures for maintenance, repairs, minor renewals, and betterments which do not improve or extend the useful life of the respective asset are expensed. All other expenditures for renewals and betterments are capitalized. The assets and related depreciation accounts are adjusted for property retirements and disposals with the resulting gain or loss included in income. Fully depreciated assets remain in the accounts until retired from service.

  7. Intangible Assets

In accordance with accounting standards, if an intangible asset is determined to have an indefinite useful life, it shall not be amortized until its useful life is determined to be no longer indefinite. Intangible assets are being amortized over the life of the related asset, on a straight-line basis.

  8. Revenue Recognition

Revenue of the Company consists of advertising and ticketing percentages. The Company recognizes revenue when earned. The Company is still in the developmental stages and therefore have minimal revenues for the years ended December 31, 2015 and 2014.

47


UNATION, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

  9. Advertising

The Company expenses advertising and marketing costs as they are incurred. Advertising and marketing expense was $500,779 and $-0- for the years ended December 31, 2015 and 2014.

The Company loaned StarShop, Inc. a total of $500,000 during 2015 consisting of three separate Promissory Notes at 6% interest with a maturity date of August 2017. These loans were part of a marketing agreement with the Company. The Notes included a cancellation provision, if Starshop, Inc. performed specific duties of their agreement with the Company, including the Starshop application being downloaded or preloaded on Ten Million (10,000,000) cell phones, smart phones, mobile devices, or tablets. On March 2, 2016, the Company issued a default notice due to StarShop’s breach of the marketing agreement. Accordingly, the collectability of the Notes are questionable, so the Company has decided to expense the advances as a marketing expense for 2015.

  10. Income Tax Status

The Company has elected to be taxed as a partnership under the regulations of the Internal Revenue Code. As such, the members are taxed individually on the Company's taxable income or loss. Therefore, no provision for income taxes is presented in these financial statements.

  11. Uncertain Tax Positions

The Company accounts for the effect of any uncertain tax positions based on a “more likely than not” threshold to the recognition of the tax positions being sustained based on the technical merits of the position under scrutiny by the applicable taxing authority. If a tax position or positions are deemed to result in uncertainties of those positions, the unrecognized tax benefit is estimated based on a “cumulative probability assessment” that aggregates the estimated tax liability for all uncertain tax positions. The Company has identified its tax status as a pass-through entity as its only significant tax position; however, The Company has determined that such tax position does not result in an uncertainty requiring recognition.

The Company is not currently under examination by any taxing jurisdiction. The Company’s federal returns are generally open for examination for three years following the date filed.

48


UNATION, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

  12. Recent Accounting Pronouncements

In June 2014, the FASB issued Accounting Standards Update (ASU) 2014-10 which eliminated the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and stockholders’ equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and(4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods beginning after December 15,2015. Early application is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued. Upon adoption, entities will no longer present or disclose any information required by Topic 915. The Company has early adopted the new standard effective immediately.

In August 2014, the FASB issued ASU 2014-15 on “Presentation of Financial Statements Going Concern (Subtopic 205-40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. Currently, there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures.

The amendments in this update provide such guidance. In doing so, the amendments are intended to reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted. The Company has not elected to early adopt this pronouncement.

Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

49


UNATION, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE C – PROPERTY AND EQUIPMENT

A summary of the major classifications of property and equipment at December 31, 2015 and 2014 consist of the following:

      2015     2014  
  Computer Equipment $  66,485   $  66,485  
  Software Acquired   105,566     105,566  
  Software Developed   5,774,911     4,944,512  
  Less Accumulated Depreciation   (1,737,624 )   (1,367,233 )
    $ 4,209,337   $ 3,749,330  

NOTE D – INTANGIBLE ASSETS

A summary of the major classifications of intangible assets at December 31, 2015 and 2014 consist of the following:

      2015     2014  
  Trademarks & Web Domains $  17,913$     17,913  
  Less Accumulated Amortization   (5,525 )   (4,331 )
    $  12,388 $     13,582  

Aggregate amortization expense is estimated as follows:

  Year      
  Ending December 31 Amount
           2016 $  1,194  
           2017   1,194  
           2018   1,194  
           2019   1,194  
           2020   1,194  
           Thereafter   6,419  
         
    $  12,388  

50


UNATION, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE E – LONG-TERM NOTE PAYABLE

At December 31, 2015 and 2014, a note payable consisted of the following outstanding loan agreement from January 31, 2013, with its primary member, Marquesas Capital Partners, LLC also controlled by the Company’s Managers in the amount $2,500,000 accruing interest at a rate of 12%, with an original maturity date of January 31, 2015. The Loan was modified by a Modification Agreement and extended the maturity date to June 30, 2017. No principal payments are required until maturity. The loan is secured by a blanket lien on all of the Company’s assets. The Loan, from its inception, has been at various times extended, had its terms modified and/or has been increased or decreased responsive to the needs for additional operating capital by the Company or the ability of the Company to retire, in part, some of the extensions of credit lent thereto. The Company plans to retire the note with proceeds from the Reg A+ capital raise. The balance outstanding on December 31, 2015 and 2014 are respectively:

      2015     2014  
  Long-Term Note Payable $  3,409,729   $ 3,586,500  
  Accrued Interest   1,083,182     672,994  
    $  4,492,911   $  4,259,494  

NOTE F – MEMBERS ’ EQUITY

The Company’s equity interest is composed of two series of membership units. Series A (voting) that has 2,000,000 units authorized and Series B (restricted non-voting) that has 4,000,000 units authorized. The outstanding amounts of respective membership units are as follows:

      2015     2014  
               
  Series A Voting*   2,000,000     2,000,000  
  Series B Restricted Non–Voting**   1,835,670     1,644,425  

*The Series A membership units also have a 10:1 conversion provision as outlined in the Company’s Operating Agreement. Additionally, all unissued Series B units are also deemed to be owned by the Series A members. See NOTE K for updated information related to this series.

**The Series B membership units are non-voting and have a restriction on transfer pursuant to Article VIII of the Company’s Operating Agreement. These Units may be transferred solely in the furtherance of such Owner’s estate planning or to a legal entity controlled by the Owner for the purpose of owning such Units.

51


UNATION, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE F – MEMBERS’ EQUITY - CONTINUED

The Company has identified an effective bifurcated unit class within the “Series B” units.

The bifurcation is as follows:

  1) Series B units attendant to a Unation PPM that investors acquired through an exchange of cash for units issued at various prices up to $12.00/unit. The total amount of units issued and outstanding pursuant to these purchases are approximately 675,000. The Series B units attendant to an Investor PPM.
     
  2) Series B units so identified as pursuant to a “Service Provider or Settlement Agreement” and identified as “Series B Restricted Profits-Only Interest”. The total amount of units issued and outstanding pursuant to these units are approximately 787,000.

NOTE G – RELATED PARTIES

A related party, through direct ownership, manages the Company’s day to day operations and is paid a fee for these services. Another related party, through ownership, provides accounting services and is paid a fee for these services.

The Company’s majority member, Marquesas Capital Partners, LLC is also controlled by the Company’s Managers.

See NOTE E regarding Note Payable to related party.

NOTE H – COMMITMENTS AND CONTINGENCIES

Lease Agreement: The Company leases office space in Tampa, Florida from an unrelated party. The Agreement started on July 25, 2014 and continues for a period of twenty-four months. The Company paid rent in the amount of $50,695 as of December 31, 2015 and $50,695 as of December 31, 2014. The lease expires July 31, 2016. The next year of the lease are as follows:

  Year Ending      
  December 31   Amount  
         
  2016 $  22,890  

52


UNATION, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE H – COMMITMENTS AND CONTINGENCIES - CONTINUED

Litigation: From time to time, the Company may become involved in various lawsuits and legal proceedings that arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. Except as set forth below, the Company is not currently aware of any such legal proceedings or claims that the Company believes will have a material adverse effect on the business, financial condition or operating results. Included in the Company’s financial statements is an accrued reserve management has estimated:

      2015     2014  
  Accrued Litigation Reserve   100,000     400,000  

NOTE I – RISKS AND UNCERTAINTIES

In the normal course of business, the Company encounters economic risk, mainly comprised of credit and market risk. Credit risk is the risk of default on the Company’s accounts receivable balances from the customers’ inability or unwillingness to make contractually required payments. Market risk reflects the risk that conditions in which the

Company sells its products could change such that a significant effect on the Company’s operations could occur.

NOTE J – GOING CONCERN

The Company’s financial statements are prepared using generally accepted accounting principles in the United States, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. Because the Company has limited history and relatively few sales, no certainty of continuation can be stated. The accompanying financial statements for the years ended December 31, 2015 and 2014 have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

The Company has suffered losses from operations, which raises substantial doubt about its ability to continue as a going concern. Management is taking steps to raise additional funds to address its operating and financial cash requirements to continue operations. The Company’s ability to continue as a going concern is dependent upon raising additional funds through equity financing and generating revenue. There are no assurances the Company will receive the necessary funding or generate revenue necessary to fund operations. The financial statements contain no adjustments for the outcome of this uncertainty.

54


UNATION, LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE K – SUBSEQUENT EVENTS

Management has evaluated subsequent events through April 30, 2016, the date on which the financial statements were available to be issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements, except as set forth below:

On March 31, 2016, the Company granted to financial investors) as represented by Series B units attendant to an Investor PPM) a 3:1 split that will equal approximately 1,350,000 units.

In furtherance of the planned Regulation A+ Offering with a maximum capital raise of $30,000,000. Accordingly, On April 25, 2016 the Company amended its operating agreement to add 3,000,000 Series C membership units.

As of the date these financials were issued, below is an analysis of outstanding amounts of respective membership units:

    4/30/2016     4/30/2016  
    Authorized     Outstanding  
Series A*   2,000,000     2,000,000  
Series B*   4,000,000     3,298,916  
Series C*   3,000,000     -0-  

* The Series A membership units have voting rights and also have a 10:1 conversion provision into Series C units as outlined in the Company’s Amended and Restated Operating Agreement. Additionally, all unissued Series B and C units are also deemed to be owned by the Series A members.

** The Series B membership units remain non-voting and still have a transfer restriction pursuant to Article VIII of the Company’s Amended and Restated Operating Agreement. These Units no longer have a 10:1 conversion provision by the Series A members. Additionally, all unissued Series B units are also deemed to be owned by the Series A member.

*** The Series C membership units are non-voting but do not have a transfer restriction. They do have a 10:1 conversion provision by the Series A members as outlined in the Company’s Amended and Restated Operating Agreement. Additionally, all unissued Series C units are also deemed to be owned by the Series A members.

55


INDEX TO EXHIBITS

1. Placement agreement with FOLIOfn Investments, Inc.
 
2.1 Amended and Restated Operating Agreement of UNATION, LLC
 
4. Form of Subscription Agreement
 
6.1 Loan agreement with Marquesas Capital Partners, LLC
 
11. Consent of Auditing Accountant, Kristina Helferty, CPA
 
12. Attorney opinion on legality of the offering*
 
13. Testing the waters materials*

* To be filed by amendment to this Offering Circular

56


SIGNATURES

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this Offering Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Tampa, State of Florida, on May16, 2016.

UNATION, LLC

By /s/ John Bartoletta
John Bartoletta, Chief Executive Officer and Managing Member

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.

/s/ John Bartoletta
John Bartoletta, Chief Executive Officer and Managing Member
Date: May16, 2016

/s/ George Beardsley
George Beardsley, Chief Strategy Officer
Date: May16, 2016

/s/ Dennis Thomas
Dennis Thomas, Chief Financial Officer and Managing Member
Date: May 16, 2016

/s/ Jody Clermont
Jody Clermont, Chief Operating Officer
Date: May 16, 2016

57


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PRIVATE PLACEMENT DISTRIBUTION AGREEMENT

THIS PRIVATE PLACEMENT DISTRIBUTION AGREEMENT (the“Agreement”), dated as of the date this Agreement is executed as noted on the signature page hereto (“Effective Date”), is by and between the party listed on Schedule A hereto as the Issuer (the “Issuer”), and FOLIOfn Investments, Inc., a Virginia corporation (“Folio”) and sets forth the terms under which Folio will engage in reasonable efforts to identify “accredited investors”, as defined in Rule 501(a) under the Securities Act of 1933, as amended (“Investors”),who may be interested in an investment in the Issuer by distributing information about the Issuer, the Securities and the Offering (as defined below) to (a) registered investment advisors who act on behalf of, or in consultation with, clients of such advisors (“Clients”) and/or (b) directly to customers of Folio (“Folio Customers”) (such “Clients” and “Folio Customers” are herein referred to as “Investors”). Such Investors may wish to purchase securities to be issued by the Issuer as listed on Schedule A hereto (the “Securities”) in a private offering of the Securities (the “Offering”) through Folio’s platform for private placement securities (the “Platform”).

1.

The Folio Efforts.


A.

Subject to the Issuer’s performance of its obligations hereunder and to the completeness and accuracy in all respects of the representations and warranties of the Issuer contained herein as well as any information or data furnished to Folio or to the Investors relating to the Issuer or the Offering, Folio agrees to use its reasonable efforts to obtain Investors for the Offering, including to distribute information about the Issuer to Investors so that they may participate in the Offering pursuant to the terms set forth in the Issuer’s Private Placement Memorandum being used for purposes of conducting the offering, as amended from time to time (the “Memorandum”). Folio will use reasonable efforts to, where appropriate, market Issuer Securities to Folio’s clients, users of Folio’s websites, and to unaffiliated broker-dealers and Advisors, and arrange for purchases of Issuer Securities on the Platform.

   

B.

Folio may also, in its sole discretion, take such other actions as it reasonably deems necessary to perform due diligence or investigation with respect to the Issuer and/or the Offering at any time and from time to time(all such activities by Folio described in this Section 1 are hereinafter referred to as the “Folio Efforts”) and may, in its sole discretion, cease the Folio Efforts and terminate this Agreement in the event any such due diligence or investigation results in findings that would pose regulatory, legal, reputational or other risks to Folio or in the event Folio determines that, after reasonable inquiry given the size, type or terms of the Offering, there is insufficient interest from Investors in the Offering to warrant additional Folio Efforts. This Agreement: i) does not constitute a “firm commitment” by Folio (and Folio makes no such commitment) to purchase any Securities, ii) nor is it an agreement for (and Folio, unless pursuant to a separate agreement, hereby is not) acting as an underwriter or engaging in any investment banking or related activities on behalf of the Issuer, or acting as an “investment adviser” as defined under the Investment Advisers Act of 1940 to the Issuer or any Investor, and iii) although Folio may do so in its sole discretion, Folio is not hereby obligated to conduct due diligence with respect to the Offering or the Company, or to make suitability determinations with respect to, or provide recommendations to, Investors.

2. Exclusivity. This Agreement relates to Folio undertaking certain actions to distribute the Offering. The Issuer understands that it may be confusing for multiple non-coordinated distribution efforts to be underway simultaneously. Consequently, except to the extent of any listed persons or firms on Schedule A hereto, the Issuer agrees that during the pendency of the Folio Efforts hereunder the Issuer shall not retain or employ any other person or entity to engage in such distribution efforts in connection with the sale of the Securities. Folio shall have absolutely no responsibility or liability with respect to the activities or inactivity of any other person or firm engaged by the Issuer. Folio and its registered representatives may, while performing its obligations under this Agreement or otherwise, assist other issuers or issuer agents in seeking Investors to acquire securities offered by another issuer,which such activity may be on the same or different terms agreed to by the Issuer and Folio herein. For the avoidance of doubt, nothing herein shall preclude Folio from providing to third parties services that are the same or similar to those performed herein for the Issuer by Folio. In addition, nothing in this Agreement shall prohibit Folio or its affiliates, in their sole discretion and without notice to the Issuer, from entering into agreements with other parties to provide separate or additional services relating to the Offering, including services relating to the distribution of the Securities through or involving other broker-dealers or other distribution channels. Folio may be compensated for those activities and may share payments it receives with other parties.

1


3. (a) Due Diligence Information; Memorandum. In connection with Folio’s Efforts hereunder, the Issuer shall, in order to meet its obligations hereunder and to provide disclosures about the Offering, at any time and from time to time, at Folio’s request, (a) furnish Folio, or a third party at Folio’s direction, at no expense to Folio,all information and data concerning the Securities, the Offering, the Issuer and any officers, directors, affiliates or other significant participants therein and copies of the Memorandum, other documentation used in the Offering, such other “due diligence” information and all materials, regardless of whether prepared by Folio or a third party, that are approved for use by the Issuer in connection with the Offering (collectively, the “Information”) and (b) provide Folio and any Investor with access to officers, employees, representatives, agents, independent accountants, legal counsel, books, records, tax returns and other documents of the Issuer as reasonably required to assist Folio in connection with performing Folio Efforts hereunder.

(b) Disclosures. The Issuer represents, warrants and covenants that the Information is complete and correct, presented in a fair and balanced manner, and does not contain any untrue statement or omit to state a fact necessary in order to make the statements therein not misleading in the light of the circumstances under which such statements are made and the Issuer agrees that it is the sole obligation of the Issuer to ensure such completeness and accuracy notwithstanding any review by Folio or any other person of the Information or any comments or suggestions Folio may provide to the Issuer with respect to the Information. If at any time prior to the completion of the Offering or termination of this Agreement any event shall occur as a result of which it may be necessary to amend or supplement the Information so that it does not include any untrue fact or omit to state a fact necessary in order to make the statements therein, in the light of the circumstances then existing, misleading, or correct any unfair or unbalanced presentation of information, the Issuer shall amend or supplement the Information as necessary and supply Folio with such amendments or supplements. The Issuer also will provide Folio for delivery to all Investors and their representatives any information, documents and instruments that the Issuer and Folio deem necessary to comply with applicable state and federal law, and Folio will not alter any such documents. The parties agree that Folio shall have no responsibility or liability (and this Agreement imposes no such responsibility or liability on Folio) with respect to the content or presentation of the Information (other than Information about Folio provided by Folio), including, but not limited to verification of completeness and accuracy.

4. Expenses. The Issuer shall bear and pay all costs, fees and expenses in connection with the preparation, printing, filing and dissemination of the Information and any amendments or supplements to the Information, any federal or state fees imposed on the Issuer relating to the Offering or the Securities, any costs, fees or expenses relating to the issuance and/or delivery of the Securities, and any costs, fees or expenses incurred by Folio in fulfilling its duties under this Agreement,including costs, fees and expenses incurred by Folio in retaining the services of a third party; provided, however, that to the extent that costs, fees or expenses have in the aggregate exceeded$10,000then any additional costs, fees or expenses that individually exceed $5,000 shall be agreed upon in writing in advance of Folio incurring such additional costs, fees or expenses. If Folio deems it reasonably necessary to incur a cost, fee or expense not specifically described herein for Folio to engage in the Folio Efforts as contemplated by this Agreement and the Issuer declines to bear and pay such cost, fee or expense, Folio may terminate this agreement.

5. Commissions. As compensation for its activities hereunder, Folio shall receive commissions at the rates set forth in Schedule Ain addition to and separate from any fees, commissions or other compensation that may be paid to Folio by the Issuer pursuant to an Issuer Custody and Services Agreement, Folio Customer Agreements signed by the Issuer or any other agreement between Folio and the Issuer. The commissions owed to Folio pursuant to Schedule A may be immediately and automatically debited by Folio from the Issuer’s account with Folio once the Issuer has accepted the Investors’ subscription agreements, closed the Offering as such closing relates to such subscription agreements,acknowledging that there may be one or more closings, and the gross proceeds from the sale of the Securities to such Investors have been deposited into the Issuer’s account at Folio. The Issuers hall maintain sufficient cash in its Folio account to ensure payment of its obligations hereunder. In the event the account has insufficient funds, the Issuer agrees to promptly deposit sufficient funds to meet the payment obligations to Folio. To the extent Securities are sold to Investors otherwise than through the Platform by Folio or through a third party as agreed to between the Issuer and Folio, the Issuer shall pay commissions,as shown on Schedule A, with respect to such sales due to Folio within five (5) business days of the date on which the Investor’s commitment to purchase the Securities has been accepted and proceeds from the sale have been received by the Issuer.

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Folio may also receive compensation as a result of sales of the Securities by unaffiliated broker-dealers, including a portion of any commission received by an unaffiliated broker-dealer from the Issuer as a result of the unaffiliated broker-dealer’s selling efforts with respect to the Offering, or other third parties.

6. Investor Contact. The Issuer agrees that during the term of this Agreement and for a period of two (2) years after the termination of this Agreement, neither the Issuer nor any Affiliate of the Issuer or any officer, director, principal, employee, agent or representative of the Issuer or any such Affiliate shall, without the prior written consent of Folio, contact or enter into any discussions or negotiations as to an investment in the Issuer or any Affiliate of the Issuer with any person, firm or corporate entity introduced to the Issuer by Folio in the course of performing its obligations under this Agreement and not prior to such introduction, in contact with the Issuer or any officer, director, principal, employee, agent or representative of the Issuer or any Affiliate of the Issuer; provided that the Issuer, the relevant Affiliate or officer, director, principal, employee, agent or representative can demonstrate prior contact to the reasonable satisfaction of Folio. “Affiliate” shall mean any person that is directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with, one of the parties hereto. For purposes of this definition, “control” shall mean possessing, directly or indirectly, the power to direct or cause the direction of the management, policies and operations of a person, whether through ownership of voting securities, by contract or otherwise.

7. Term and Termination of this Agreement. The term of this Agreement shall commence on the Effective Date set forth above and shall terminate upon the earlier of (a) termination of this Agreement by Folio pursuant to Sections 1 or 4; or (c) at any time after six (6) calendar months from the date upon which an Offering is set up on the Platform and is available for subscription by Investors, provided that either the Issuer or Folio provides the other not less than thirty (30) days prior notice of such termination. Upon termination of this Agreement, Folio shall cease all Folio Efforts, Issuer shall pay Folio all unpaid amounts owing to Folio for any fees or expenses incurred to the date of termination, and each Party shall promptly return all Confidential Information (as defined below), documents, manuals and other materials stored in any form or media (including but not limited to electronic copies) belonging to the other Party, except as may be otherwise provided in this Agreement or required by law. In addition, Issuer shall pay Folio the fees set out in Schedule A for any purchases that occur within six (6) months of termination where such purchases are the result of Folio’s efforts.

8. Issuer Representations and Warranties. The Issuer represents and warrants that:

  a.

it is duly organized, validly existing and in good standing in the state in which it is incorporated with the power to own its properties and to conduct its business as described in the Information;

  b.

it is in good standing in each other jurisdiction in which the conduct of its business or ownership or leasing of its properties requires it to be so qualified or licensed, except whether the failure to be so qualified or licensed would not have a material adverse effect on the business, properties, assets, condition (financial or otherwise) or prospects of the Issuer taken as a whole;

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  c.

the Information does not and will not contain any untrue statement or omit to state any fact required to be stated or necessary to make the statements in the Information not misleading;

  d.

this Agreement has been duly authorized, executed, and delivered on behalf of the Issuer, and is the valid, binding and obligation of the Issuer, enforceable in accordance with its terms;

  e.

no authorization, approval, consent, or license of any regulatory body or authority is required for the valid authorization, sale or delivery of the Securities, or, if so required, all authorizations, approvals, consents and licenses have been or will be obtained and will remain in full force and effect;

  f.

the Securities subject to the Offering will, when issued, sold and delivered in accordance with the terms of the Offering, be duly and validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under agreements with the Investors purchasing such Securities and applicable state and federal securities laws;

  g.

if conducted in accordance with the terms of the Memorandum and this Agreemnt, the Offering will be exempt from the registration requirements of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder and any applicable state requirements and be in compliance with all applicable rules and regulations under the Federal and any applicable State securities laws.

9. Folio Representations and Warranties.

  a.

Folio represents and warrants that it is duly organized, validly existing and in good standing in the state in which it is incorporated.

  b.

Folio represents and warrants that it is duly-registered as a clearing broker -dealer with the U.S. Securities and Exchange Commission and a member firm in good standing of the Financial Industry Regulatory Authority, Inc. (“FINRA”), and duly licensed, qualified or registered and in good standing in each state requiring such licensing, qualification or registration to engage in the Folio Efforts in that state oris exempt from any such licensing, qualification or registration requirements.

10. Force Majeure. Neither the Issuer nor Folio will be liable for delay or default in the performance of its obligations under this Agreement, if such delay or default is caused by conditions beyond its reasonable control, including, but not limited to, fire, flood, accident, earthquakes, public telecommunications line failures, storm, acts of war, riot, acts of terrorism, government interference, strikes and/or walk-outs. In the event such a condition lasts longer than thirty (30) days, either party may terminate this Agreement upon written notice to the other party.

11. No Agency. Nothing in this Agreement shall cause Folio or the Issuer to be the partner, employee, joint venturer or agent of the other, or give one party the authority to act for the other party. Neither party shall be liable for the acts or obligations of the other party under this Agreement.

12. Regulatory Cooperation. The Issuer agrees to cooperate with any reasonable request that Folio may make in order to respond to any inquiries made by any regulatory body or self-regulatory organization with jurisdiction over Folio in connection with the Issuer or the Offering.

13. Indemnification. The Issuer agrees to indemnify, defend and hold Folio and its Affiliates and their respective officers, directors, agents, and employees (“FolioIndemnified Parties”) harmless against any investigation, claim, action, or proceeding (including a regulatory inquiry, whether formal or informal or any arbitration or court action) (“Action”) brought by an Investor, court, regulator or self-regulatory organization or any other party against Folio Indemnified Parties relating to (a) the actions or inactions of the Issuer, any Affiliate of the Issuer, or any officer, director, agent, or employee of the Issuer, or any person acting on behalf of the Issuer or any such Affiliate (specifically including, without limitation, any third party engaged in marketing, advertising or selling the Securities) (the Issuer, such Affiliates and all such other persons being referred to herein as “Issuer Agents”) or (b) the Offering insofar as the Action arises out of, is based upon or related to (i) the Information, any oral statement or marketing, sales or advertising material of any nature, contained in the Information or any media, created or distributed by any Issuer Agent(including any statement made by Folio except to the extent such statement is contrary to or inconsistent with the Information) as part of, or independent of, the Information; (ii) any untrue statement or alleged untrue statement in the Information, including any amended versions thereof, or any oral statement made by any Issuer Agent (excluding any statement made by Folio that is contrary to or inconsistent with the Information); (iii) the omission of, or alleged omission of, in the Information, a fact required to be stated or necessary to make the statements made not misleading; (iv) any statement, alleged statement, term, or material related to the Offering that is or is alleged to be unfair, unbalanced, exaggerated, unwarranted, misleading, or incomplete; (v) any breach or alleged breach of any of the Issuer’s representations, warranties, covenants or agreements hereunder and including any representations, warranties, covenants or agreements contained in Schedule A to this Agreement; (vi) any injury to or loss incurred by any Investor caused by such Investor’s use of or reliance on either oft he Information or any statement made by the Issuer or any Issuer Agent (including any statement made by Folio except to the extent such statement is contrary to or inconsistent with the Information); or (g) infringement or misappropriation by the Issuer of any third party’s property and/or intellectual property rights, including, but not limited to, patents, trademarks, copyrights, trade secrets and publicity rights. Further, the Issuer shall indemnify Folio Indemnified Parties against all expenses, fees (including reasonable attorney’s fees and other legal expenses), losses, claims, damages, demands, liabilities, judgments (including fines and settlements and including the cost of investigations or responding to inquiries from regulators or others) (“Losses”) incurred by or levied or brought against Folio Indemnified Parties arising out of, or related to, the foregoing Actions as such Losses arise. If Folio Indemnified Parties are entitled to indemnification under this Agreement, Folio shall notify the Issuer and, if requested by Folio, at its own cost and expense, the Issuer shall defend the Folio Indemnified Parties. Folio Indemnified Parties shall not settle any Action with respect to which the Issuer has been requested to defend Folio Indemnified Parties without prior written notification to the Issuer.

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In turn, Folio agrees to indemnify, defend and hold the Issuer and its officers, directors, agents and employees (the “Issuer Indemnified Parties”) harmless against any Action brought by an Investor, court, regulator or self-regulatory organization asserting jurisdiction over the Issuer Indemnified Parties relating to the activities of Folio or any Affiliate of Folio, insofar as the Action arises out of or is based upon (a) any breach or alleged breach of any of Folio’s representations, warranties, covenants or agreements hereunder and including any representations, warranties, covenants or agreements contained in Schedule A to this Agreement; (b) any injury to or loss incurred by any Investor caused by such Investor’s reliance on any oral statement made by Folio or any employee, agent or representative of Folio or any document or other media created and distributed by Folio, to the extent that the oral statement or document or other media is contrary to or inconsistent with the Information; or (c) infringement or misappropriation by Folio of any third party’s property and/or intellectual property rights, including, but not limited to, patents, trademarks, copyrights, trade secrets and publicity rights. Further, Folio shall indemnify the Issuer Indemnified Parties against all Losses incurred by or levied or brought against the Issuer Indemnified Parties arising out of, or related to, the Actions as outlined in this Section as such Losses arise. If the Issuer Indemnified Parties are entitled to indemnification under this Agreement, the Issuer shall notify Folio and, if requested by the Issuer, at its own cost and expense, Folio shall defend the Issuer Indemnified Parties. The Issuer Indemnified Parties shall not be entitled to settle any Action with respect to which Folio has been requested to defend the Issuer Indemnified Parties without prior written notification to Folio.

14. Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO ANOTHER PARTY FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES OF ANY NATURE, EVEN IF SUCH PARTY SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING SHALL APPLY REGARDLESS OF THE NEGLIGENCE OR OTHER FAULT OF ANY PARTY AND REGARDLESS OF WHETHER SUCH LIABILITY SOUNDS IN CONTRACT, NEGLIGENCE, TORT, STRICT LIABILITY OR ANY OTHER THEORY OF LIABILITY. THIS SECTION SHALL SURVIVE TERMINATION OF THIS AGREEMENT.

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15. Confidentiality. The Issuer or Folio may disclose to the other (the “Receiving Party”) certain information that is not generally available to the public and that disclosing party deems to be confidential (“Confidential Information”). The Receiving Party agrees to use Confidential Information solely in conjunction with its performance under this Agreement and not to disclose or otherwise use such information in any other fashion. The Receiving Party, however, will not be required to keep confidential such Confidential Information to the extent that it (a) becomes generally available without fault on its part, (b) is already rightfully in the Receiving Party’s possession without restriction prior to disclosure to it by the disclosing party, (c) is independently developed by the Receiving Party, (d) is rightfully obtained by the Receiving Party from third parties without restriction, or (e) is otherwise required to be disclosed by law or judicial process. Unless required by law, including but not limited to regulatory or judicial requests for information, or to assert its rights under this Agreement, and except for disclosure on a “need to know basis” to its own employees, and its legal, investment and financial advisers and other professional advisers on a confidential basis, each party agrees not to disclose the Confidential Information and terms of this Agreement without the prior written consent of the other party.

16. Assignment; Successors; Survival of Provisions. Neither party may assign this Agreement without the prior written consent of the other party. All provisions herein that by their terms or intent should survive the termination of this Agreement shall so survive, specifically including but not limited to Sections 3 through 6, 12 through 19, and 21.

17. Dispute Arbitration Agreement. All disputes arising out of or in connection with this Agreement shall be settled by arbitration administered by FINRA Dispute Resolution. All costs of any such arbitration proceeding shall be paid by the losing party. Proceedings and hearings will take place in New York, New York. To the extent not preempted by federal law, the laws of the State of New York shall apply. The parties waive any right either of them may have to institute or conduct litigation or arbitration in any other forum or location, or before any other body. Arbitration is final and binding on the parties. An award rendered by the arbitrator(s) may be entered in any court of applicable jurisdiction over the parties.

18. Notice. Any notice required or permitted under this Agreement shall be in writing and delivered to the receiving party’s principal place of business as set forth below or as provided to the other party in writing from time to time, in a manner contemplated in this Section. Notice shall be deemed duly given (a) if delivered by hand, when received, (b) if transmitted by email, upon confirmation that the entire document has been successfully received, (c) if sent by recognized overnight courier service, on the business day following the date of deposit with such courier service so long as the deposit was made by that overnight courier service’s deadline or on the second business day following the date of deposit if after that overnight courier service’s deadline, or (d) if sent by certified mail, return receipt requested, on the third business day following the date of deposit in the United States mail.

If to Folio:

FOLIOfn Investments, Inc.
8180 Greensboro Drive, 8th Floor
McLean, VA 22102
Attn: General Counsel

If to the Issuer:

UNATION, LLC
12802 Tampa Oaks Blvd, Suite 405
Tampa, FL 33637_______________

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19. Compliance with Law. Each party agrees to comply with any legal requirement applicable to the performance of its obligations hereunder.

20. Governing Law. This Agreement and all matters or disputes arising out of or in connection with this Agreement shall be interpreted, construed and enforced in all respects in accordance with the laws of the Commonwealth of Virginia.

21. Entire Agreement. This agreement constitutes the entire agreement between the parties and supersedes any prior agreements, oral and written.

22. Amendment; Modification. This Agreement may not be modified except in writing, signed by both parties.

[Signature Page Follows]

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This Agreement contains an arbitration clause.

IN WITNESS WHEREOF, the undersigned officers have executed this agreement pursuant to due authority as of the date first set forth above.

THE ISSUER

By: UNATION, LLC

By: _______________________________
       Dennis Thomas, CFO

 

FOLIOfn INVESTMENTS, INC.

By: ________________________________
       Michael J. Hogan, CEO

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Schedule A

Issuer: UNATION, LLC

Securities: UNATION, LLC Class B (Reg A+) non-voting membership units

Persons or Firms As To Which Section 2 Does Not Apply:

  The Issuer: UNATION, LLC
  Highstreet Financial, LLC

Schedule of Commissions:

The Issuer shall pay Folio the sum of:

i) Fees due to Folio under the Folio Custody Agreement for the dollar value of the securities issued to Shareholders pursuant to each Offering at the time of closing, plus

ii) 4% of any purchases of Issuer Securities effected by Folio or an affiliate of Folio, where such purchases are the result of Folio’s efforts to market Issuer Securities to Folio’s clients, users of Folio’s websites, or to Advisors, but not purchases effected by a third party distributor (such as an unaffiliated broker-dealer), and

iii) 1%of any purchases of Issuer Securities effected by a third party distributor plus the fees charged by any such third party distributor in connection with purchases of Issuer Securities effected by such third party distributor, provided that the Issuer must approve the participation of any third party distributor that charges a fee higher than the fee charged by Folio as set forth in clause ii.

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EX1A-2A CHARTER 9 opr_agremnt.htm UNATION.: Exhibit X

UNATION, LLC

AMENDED AND RESTATED OPERATING AGREEMENT

THE UNITS IN UNATION, LLC (THE "UNITS") ARE SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN THIS AGREEMENT AND THE OTHER TERMS AND CONDITIONS OF THIS AGREEMENT. NEITHER THE UNITS NOR ANY PART THEREOF MAY BE OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS AGREEMENT AND (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER ANY APPLICABLE STATE SECURITIES LAWS OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER SUCH SECURITIES LAWS OR WHICH IS OTHERWISE IN COMPLIANCE WITH SUCH SECURITIES LAWS AND (II) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OR WHICH IS OTHERWISE IN COMPLIANCE WITH THE SECURITIES ACT.

THE SERIES C UNITS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT, OR ANY STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES CANNOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE SECURITIES ACT. IN ADDITION, THE SECURITIES CANNOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS.

This LIMITED LIABILITY COMPANY AMENDED AND RESTATED OPERATING AGREEMENT (this "Agreement" or this “Operating Agreement”) of UNATION, LLC, a Delaware limited liability company (the "Company") is enteredinto as of the 30th day of April, 2016, by and betweenthe Company and Marquesas Capital Partners, LLC, a Delaware limited liability company (“Marquesas”), which is the owner and holder of all Series A Units of the Company. This Agreement amends and restates in its entirety that certain Operating Agreement of UNATION, LLC, a Delaware limited liability company, dated June 10, 2010.

WHEREAS, the Company was formed as a limited liability company pursuant to the Limited Liability Company Act of the State of Delaware, as amended from time to time (the "Act"); and

WHEREAS, the Company and Marquesasdesire to enter into this Agreement in order to provide for the operation and management of the Company and the rights and obligations of the Members in connection therewith.

NOW, THEREFORE, in consideration of the foregoing, all of which is Incorporated in this Agreement by this reference as a material part of this Agreement, and the mutual promises and agreements herein made, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the undersigned Members hereby agree as follows:

ARTICLE I
FORMATION; DURATION AND PURPOSES

Section 1.1     Name. The name of the limited liability company that is the subject of this Agreement shall be UNATION, LLC.

Section 1.2     Formation.

OPERATING AGREEMENT 1 UNATION, LLC.



(a)

The Company's existence commenced on June 10, 2010 upon the filing of Articles of Organization (the "Certificate") in the office of the Delaware Secretary of State. The execution and filing of such Certificate is hereby ratified by the Company and Marquesas. The rights, liabilities and obligations of any Member with respect to the Company shall be determined in accordance with the Act, the Certificate and this Agreement. To the extent anything contained in this Agreement modifies, supplements or otherwise affects any such right, liability, or obligation arising under the Act, this Agreement shall supersede the Act to the extent not restricted thereby.

   
(b)

Any Officer and any other Person appointed by the Board of Managers shall hereinafter be authorized to cause the Company to be qualified, or registered under assumed or fictitious name statutes or similar laws, in any jurisdiction in which the Company transacts business. Such Person, as an authorized person within the meaning of the Act, shall execute, deliver and file any certificates (and any amendments and/or restatements thereof) necessary or desirable for the Company to qualify to do business in any jurisdiction in which the Company may wish to conduct business.

Section 1.3     Principal Business Office. The principal business office of the Company shall be located at 12802 Tampa Oaks Blvd, Suite 405, Tampa, Florida 33637, or at such other location as may hereafter be determined by the Board of Managers.

Section 1.4     Registered Office and Agent. The name and address of the registered agent of the Company for service of process on the Company in the State of Florida is Clay C. Schuett, 8200 113th Street North, Suite 104, Seminole, Florida 33772. At any time, the Board of Managers may designate another registered agent and/or registered office for the Company.

Section 1.5     Term of the Company. The term of the Company commenced on the date of the filing of the Certificate and shall be perpetual, unless the Company is sooner terminated and dissolved pursuant to the terms hereof. No Member may withdraw from the Company without the prior written consent of the Board of Managers, other than as expressly provided in this Agreement.

Section 1.6     Fiscal Year. The fiscal year of the Company shall end on December 31st of each year.

ARTICLE II
PURPOSE AND POWERS OF THE COMPANY

Section 2.1     Purpose. The Company is formed for the objective and purpose of, and the nature of the business to be conducted and promoted by the Company is, engaging in any lawful act or activity for which limited liability companies may be formed under the Act as may be determined by the Board of Managers and engaging in any and all activities necessary, convenient, desirable or incidental to the foregoing. The initial purpose of the Company is to engage in the business of developing and operating an event-driven, social-networking platform called UNATION or “UNATION.com”.

Section 2.2     Powers. In furtherance of its purposes, the Company shall have the power and is hereby authorized to take any and all actions necessary, appropriate, proper, advisable, incidental or convenient to or for the furtherance of the purposes set forth in Section 2.1, including, but not limited to, the power to conduct its business, carry on its operations and have and exercise the powers granted to a limited liability company by the Act in any state, territory, district or possession of the United States.  

OPERATING AGREEMENT 2 UNATION, LLC.


ARTICLE III
MEMBERS; UNITS

Section 3.1     Units.

(a)

Generally. The limited liability company interests of the Company shall be classified in fourSeries of Units (each such interest in the Company, a "Unit" and collectively, the "Units"): Series A Units (each, a "Series A Unit" and collectively, the "Series A Units"),Series B Units (each, a "Series B Unit" and collectively, the "Series B Units"),Series B Restricted Profits Only Units (each, a “Series B Profits Unit” and collectively the “Series B Profits Units”), and Series C Units (each, a "Series C Unit" and collectively, the "Series C Units"). There shall be no limitation on the number of Units which may be issued and/or outstanding at any time, subject to the approval of the Board of Managers as to the timing of any such issuance and amount thereof. Until such time as additional Units of any Series have been authorized by the Board of Managers, Units shall consist of 2,000,000Series A Units (the “Series A Units”), 4,000,000Series B Units (the “Series B Units”), 1,000,000 Series B Profits Units (the “Series B Profits Units”),and 4,000,000 Series C Units (the “Series C Units”).

 
(b)

Series A Units. Each Series A Unit shall have the right toten (10) votes per Unit, shall be entitled to notice of any meeting of Members in accordance with this Agreement, and shall be entitled to vote upon such matters and in such manner as may be provided by law. Furthermore, each Series A Unit shall have the right to convert to Series C Units at a conversion rate of ten (10) to one (1) (i.e., one (1) Series A Unit equals ten (10) Series C Units) upon the approval of the Board of Managers.

 

 

 

(c)

Series B Units. Series B Units will have the same rights as Series A Units except that Series B Units will be non-voting Units and Series B Units will not have the same ten (10) to one (1) conversion rights of Series A Units.

 

 

 

(d)

Series B Profits Units. Series B Profits Units will not have any ownership interest in the Company, will be non—voting Units,will not have the same ten (10) to one (1) conversion rights of Series A Units, and will only be entitled to share in the profits of the Company pursuant to this Agreement.

 

 

 

(e)

Series C Units. Series C Units will have the same rights as Series A Units except that Series C Units will be non-voting Units and Series C Units will not have the same ten (10) to one (1) conversion rights of Series A Units. The units have been specifically authorized for issuance as part of a Regulation A+ capital raise. These units will not have the same transfer restriction as Series B Units.

 

 

 

(f)

Other Securities. Subject to the rights of holders of Series AUnits, the Board of Managers is authorized to issue Units, or any other Series or type of debt or equity securities of the Company (including options, warrants or rights to receive Series A Units, Series B Units, or any other Series or type of debt or equity securities of the Company, including convertible securities) that the Board of Managers designates, at such times and on such terms as the Board of Managers determines. Any such action shall be memorialized, as applicable, in an amendment and/or restatement to this Agreement executed by the Managers.

 

 

 

(g)

Inclusions to "Units." For purposes of this Agreement, a Member's aggregate "Units", except for the holders of the Series B Profits Units, shall include the entire ownership interest of a Member in the Company at any time, including (a) the rights of such Member to any and all benefits to which a Member may be entitled as provided in this Agreement, together with the obligations of such Member to comply with all the terms and provisions of this Agreement, (b) all income, profits, Available Net Cash, fees or payments of whatever nature and all distributions to which any Member would be entitled, now or at any time hereafter, of whatsoever description or character; and (c) all of any Member's present and future rights to and in its Capital Account, whether by way of liquidating distributions or otherwise, and all of such Member's right to receive or Unit in any surplus of the Company in the event of the dissolution of the Company.


OPERATING AGREEMENT 3 UNATION, LLC.


Section 3.2     Ownership Interest. Series A Member's ownership interest shall be calculated by dividing the number of Units of such Series held by such Member by the aggregate number of all series of authorized Units. In addition, Series A Members are also entitled to the pro rata share of unissued Series B Units. Series B Member’s ownership interest shall be calculated by dividing the number of Units of such Series held by such Member by the aggregate number of all series of authorized Units.Series C Member’s ownership interest shall be calculated by dividing the number of Units of such Series held by such Member by the aggregate number of all series of authorized Units.

Section 3.3     Capital Contributions. No Member shall be obligated to make contributions of cash or other property to the Company for Units; however, Series A Unit Members may make contributions and certain other Members shall be obligated to make contributions for Series B Units purchased pursuant to the Company’s Subscription Agreement ("Capital Contribution"). A Member may loan funds to the Company with the prior written consent of the Board of Managers, which consent may be granted or withheld in the sole discretion of the Board of Managers, for any reason or no reason.

Section 3.4     Partition. Each Member waives any and all rights that it may have to maintain an action for partition of the Company's property.

Section 3.5     No Interest on Capital. No Member shall be entitled to any interest on any capital, if any, contributed by them to the Company.

Section 3.6     Withdrawal.

(a)

Except in connection with a Transfer to a Permitted Transferee (each as defined in Article 8.1 below) or a Transfer to which the Board of Managers consents pursuant to Section 8.1 hereof in which the transferee has been admitted as a Substitute Member (as defined below) and has assumed the obligations of a Member or as otherwise described herein, no Member shall have the right to withdraw from the Company without the prior written consent of the Board of Managers (which consent may be withheld in the Board of Managers sole discretion, for any reason or no reason). Effective on the date of a permitted withdrawal, such withdrawing Member shall be deemed to have withdrawn from the Company and shall no longer be a Member for purposes of this Agreement. From and after the effective date of such withdrawal, the withdrawing Member shall not be entitled to receive any distributions from the Company unless the withdrawing Member was a Member on the record date therefor.

   
(b)

If a Member withdraws from the Company in violation of Section 3.6(a), such Member shall not be entitled to any distribution or payment with respect to his, her or theirUnits in the Company and shall be liable to the Company for breach of this Agreement.

Section 3.7     Substitute and Additional Members.

(a)

Additional members may be admitted to the Company (the "Additional Members") upon the issuance of Units to such Additional Members. No Additional Member and no Person who is the transferee or assignee of all or a portion of the Units of a Member (a "Substitute Member") shall be entitled to any of the rights and benefits under this Agreement of the transferor or assignor of such interest (other than the right to distributions) unless and until:


  (i)

the Additional Member or the Substitute Member, as the case may be, shall execute and acknowledge any instrument reasonably deemed by the Board of Managers to be necessary to effectuate such admission, which instrument shall include representations that such Additional Member or Substitute Member or their Affiliates is not a Prohibited Owner; and


OPERATING AGREEMENT 4 UNATION, LLC.



  (ii)

the Additional Member or the Substitute Member, as the case may be, shall accept and assume in writing (in a form determined by the Board of Managers) all of the terms, conditions and obligations of this Agreement applicable to the Units being acquired by it.


(b)

As promptly as is reasonably practicable after the admission of an Additional Member or a Substitute Member in the Company, the Board of Managers or its designee shall reflect the addition of the Additional Member, or the addition of the Substitute Member and the deletion of the Member substituted therefor, and to set forth the respective designations, preferences and rights, as established by the Board of Managers, of the rightsof such Additional Member or Substitute Member, in the membership records of the Company, effective as of the date upon which any such Additional Member or Substitute Member first acquired theUnits in question.

Section 3.8     Company Reorganization. Subject to the rights of holders of Series A Units, if the Board of Managers, in its sole discretion, determines that conditions are favorable for the Company to reorganize as a corporation, the Company may be reorganized as a corporation and, in connection therewith, its equity interests (including but not limited to the Series A Units) may be reclassified as shares of stock (or securities convertible into, or options to purchase, such shares of stock) in such corporation on such terms and conditions as are approved by the Board of Managers, provided that the relative rights and preferences of the Series A Units shall not be materially modified. Each Member (including the Series A Members) or other direct or indirect holder of Units will be required to execute and deliver such instruments or documents as may be necessary or advisable in connection with any such reorganization.

ARTICLE IV
ALLOCATION OF PROFITS AND LOSS; DISTRIBUTIONS

Section 4.1     Allocation of Profits and Loss. Profits and Losses shall be allocated as follows:

(a)

First to each Series A Member in proportion to their respective Ownership Interests, which, again, shall be calculated by dividing the number of Units of such Series held by such Member by the aggregate number of all series of authorized Units. In addition, Series A Member’s are also entitled to their pro rata share of unissued Series B and C Units.

   
(b)

Second, to each Series B and C Member in proportion to their respective Ownership Interests, which shall be calculated by dividing the number of Units of such Series held by such Member by the aggregate number of all series of authorized Units, and, with respect to Series B Profits Members, only in proportion to any separate profits interest they may have in the Company.

Section 4.2     Distributions. Available Net Cash (as defined in Article XI), if available, shall be distributed by the Company at such time and in such amounts as shall be approved by the Board of Managers, in its sole and absolute discretion, in the following order of priority:

  (a)

First to each Series A Member in proportion to their respective Ownership Interests, which, again, shall be calculated by dividing the number of Units of such Series held by such Member by the aggregate number of all series of authorized Units. In addition, Series A Member’s are also entitled to their pro rata share of unissued Series B and C Units.

     
  (b)

Second, to each Series B and C Member in proportion to their respective Ownership Interests, which shall be calculated by dividing the number of Units of such Series held by such Member by the aggregate number of all series of authorized Units.


OPERATING AGREEMENT 5 UNATION, LLC.


Section 4.3     Capital Accounts. The Board of Managers shall establish and maintain capital accounts ("Capital Account") for each Member. Capital Accounts shall be maintained in accordance with Treasury Regulation§.1.704 -1(b)(2)(iv) and shall be interpreted and applied in a manner consistent therewith. If the Board of Managers shall determine that it is prudent to modify the manner in which the Capital Accounts are computed in order to comply with Treasury Regulation §.1.704 -1(b)(2)(iv), the Board of Managers may make such modification.

Section 4.4     Book/Tax Disparities; Section 754 Elections; etc.

(a)

In the case of contributed property, items of income, gain, loss, deduction and credit, as determined for federal income tax purposes, shall be allocated in a manner consistent with the principles of Section 704(c) of the Code by using a method described in Treasury Regulation§.1.704-3(d) selected by the Board of Managers, in its sole discretion, to take into account the difference between the agreed value of such property and its adjusted tax basis at the time of contribution or adjustment, as the case may be.

   
(b)

All items of income, gain, loss, deduction and credit recognized by the Company for federal income tax purposes and allocated to the Members in accordance with the provisions hereof shall be determined without regard to any election under Section 754 of the Code which may be made by Board of Managers on behalf of the Company; provided, however, that such allocations, once made, shall be adjusted as necessary or appropriate to take into account those adjustments permitted by Section 734 and 743 of the Code.

Section 4.5     Certain Tax-Related Definitions.

(a)

For purposes of this Agreement, the terms "Profit" or "Loss" mean, for each fiscal year or other period, an amount equal to the Company's net taxable income or loss for such year or period, determined in accordance with Section 703(a) of the Code (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or loss), adjusted as follows: (i) any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profit or Loss shall be added to such taxable income or loss; (ii) any expenditures of the Company described in Section 705(a)(2)(B) of the Code or treated as described in such Section pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(i) and not otherwise taken into account in computing Profit or Loss, shall be subtracted from such taxable income or loss; and (iii) in the event the Carrying Value (as defined below) of any Company property is adjusted pursuant to Section 1.704- 1(b)(2)(iv)(f) of the Treasury Regulations or other pertinent sections of such Treasury Regulations, the amount of such adjustment shall be taken into account for purposes of computing Profit and Loss. Notwithstanding any other provisions, any items which are specially allocated pursuant to Section 4.6 shall not be taken into account in computing Profit or Loss.

   
(b)

For purposes of computing Profit and Loss, the term "Carrying Value" shall mean (i) with respect to contributed property, the agreed value of such property, (ii) with respect to property the book value of which is adjusted pursuant to Treasury Regulation§1.704-1(b)(2)(iv)(d), (e) or (f), the amount determined by the Board of Managers, and (iii) with respect to any other property, the adjusted basis of such property for federal income tax purposes as of the time of determination.

Section 4.6     Regulatory Allocations, Qualified Income Offset and Minimum Gain Chargebacks. The provisions of this Agreement are intended to comply with Code Section 704 and Treasury Regulations §’s. 1.704 -1(b) and 1.704 -2 and shall be interpreted and applied in a manner consistent with such Section and such Regulations. Notwithstanding anything to the contrary in this Agreement, the Members shall make such allocations as may be required in order to comply with Code Section 704 and Treasury Regulations §’s. 1.704 -1(b) and 1.704 -2 including any allocations necessary to satisfy the requirements for (i) a "qualified income offset"; (ii) a "minimum gain chargeback"; and (iii) a chargeback of "minimum gain attributable to partner nonrecourse debt" as such terms are defined in Treasury Regulation §’s 1.704 -1(b) and 1.704 -2.

OPERATING AGREEMENT 6 UNATION, LLC.


ARTICLE V
MANAGEMENT

Section 5.1     Management by the Board of Managers.

(a)

Powers. The management and control of the business and affairs of the Company shall be vested in a Board of Managers, which shall have the power to do any and all acts necessary, convenient or incidental to or for the furtherance of the purposes of the Company, including all powers provided for in this Agreement, the Act or otherwise. Any Officer or employee of the Company authorized by the Board of Managers shall have the authority to bind the Company. Without limiting the generality of the foregoing, the Board of Managers shall establish overall policies for the Company, set long- range plans and objectives and direct the conduct of the Company's Officers and employees. No action shall be taken, sum expended, decision made or obligation incurred by the Company with respect to any matter regarding the Company unless such matter has been expressly approved by the Board of Managers as provided for herein.

   
(b)

Composition of Board of Managers. The Board of Managers shall initially consist of two (2) individuals, both of which shall be the Mangers, and each of whom shall be elected from time to time by the holders of Series A Units. The initial Managersunder this Agreement shall be John Bartoletta and Dennis Thomas.

   
(c)

Meetings. The Board of Managers shall meet no less frequently than quarterly and additionally at the request of the any Manager, such request to be made upon no less than three (3) business days notice by telephone, e-mail or facsimile transmission, which notice may be waived in each instance. Each such meeting shall be held at such date, time and place as the Managersmay determine. One or more Managers may participate in any meeting of the Board via telephone conference call or other electronic device by which all Managers may simultaneously hear all other Managers. A Manager may attend a meeting by proxy, provided that his proxyholder presents a written proxy at the meeting which empowers the proxyholder to take any action that the Manager could take if personally present. A proxyholder must be another Manager.

   
(d)

Voting and other Actions. ManagerJohn Bartoletta shall have two (2) votes and any other Managershall have one vote. All actions of the Board shall require the affirmative vote of a majority of the Managers. No Manager shall be liable to the Company for any loss or damage sustained by the Company, unless the loss or damage shall have been the result of fraud, deceit, or intentional misconduct.

   
(e)

Action by Written Consent Without a Meeting. Any action that may be taken at a meeting of the Board of Managers may be taken without a meeting if consent in writing setting forth the action so taken is signed by all of the Managers. All such consents shall be filed with the minutes of the Company and shall be maintained in the Company records.

   
(f)

Compensation. Except as determined and approved by holders of a majority of the Series A Units, Managers shall not be entitled to compensation for acting as such, provided that a Manager shall be reimbursed by the Company for reasonable out-of-pocket expenses incurred to attend meetings of the Board of Managers.

Section 5.2     CEO and Other Officers.

(a)

Generally. The day-to-day operations of the Company shall be under the control of a CEO of the Company duly appointed from time to time by the Board of Managers and subject to the supervision and direction of the Board of Managers. The Board of Managers may from time to time appoint such other officers who may include a chief financial officer, a chief operating officer, one or more vice presidents and such other officers as they consider appropriate. Such Officers shall exercise such duties as customarily pertain to such offices as determined by the Board of Managers.


OPERATING AGREEMENT 7 UNATION, LLC.



(b)

Appointment. The CEO and any officers of the Company appointed by the Board of Managers shall hold office until their successors are chosen by the Board of Managers. The CEO and any Officer may be removed at any time by the Board of Managers. Any vacancy occurring in any office of the Company shall be filled by the Board of Managers.

   
(c)

Compensation. Subject to the approval of holders of a majority of Series A Units, the Board of Managers shall determine and agree with the CEO and each officer on a reasonable amount of compensation for services rendered or to be rendered to the Company.

Section 5.3     Reliance by Third Parties.     Any Person dealing with the Company, the Managers or any officer or employee of the Company may rely upon a certificate signed by the CEO as to:

(a)

the identity of any of the CEO, any Manager or Officer;

   
(b)

the persons who are authorized to execute and deliver any instrument or document on behalf of the Company; or

   
(c)

any act or failure to act by the Company or as to any other matter whatsoever involving the Company.

Section 5.4     Other Business Interests.     So long as such business venture is not competitive with the Company, any Member, Manager or officer, or any Affiliate of any Member, may engage in or possess an interest in other business ventures of every kind and description, independently or with others, and may dedicate such time to such ventures as such Persons deem, in their discretion, necessary. None of the Company or the other Members shall have any rights in or to such ventures or the income or profits therefrom by virtue of this Agreement.

ARTICLE VI
BOOKS AND RECORDS; TAX MATTERS

Section 6.1     Books, Records and Financial Statements.     At all times during the continuance of the Company, the Company shall maintain, at its principal place of business, separate books of account for the Company that shall show a true and accurate record of all costs and expenses incurred, all charges made, all credits made and received and all income derived in connection with the operation of the Company's business. Such books of account, together with a certified copy of this Agreement (including any amendments and/or restatements hereof) and of the Certificate, shall at all times be maintained at the principal place of business of the Company and shall be open to inspection and examination at reasonable times by each Member and its duly authorized representative for any purpose reasonably related to such Member's interest in the Company.

Section 6.2     Company Audits.     At any time at the sole discretion of the Board of Managers, the financial statements of the Company may be audited by an independent certified public accountant, selected by the Board of Managers, with such audit to be accompanied by a report of such accountant containing its opinion. The cost of such audit will be an expense of the Company. A copy of any such audited financial statements and accountant's reports will be made available for inspection by the Members.

Section 6.3     Tax Matters Partner.     Dennis Thomas is hereby designated as "Tax Matters Partner" of the Company for purposes of §.6231(a)(7) of the Code and shall have the power to manage and control, on behalf of the Company, any administrative proceeding at the Company level with the Internal Revenue Service relating to the determination of any item of Company income, gain, loss, deduction or credit for federal income tax purposes.

OPERATING AGREEMENT 8 UNATION, LLC.


Section 6.4     Taxation as Partnership.     The Company shall be treated as a partnership for U.S. federal income tax purposes.

ARTICLE VII
LIABILITY, EXCULPATION AND INDEMNIFICATION

Section 7.1     Liability.

(a)

Except as otherwise provided by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and the Members, the Managers, the officers and the employees of the Company (each a "Covered Person" and collectively "Covered Persons") shall not be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Covered Person.

   
(b)

Except as otherwise expressly required by law, a Member, in his capacity as a Member of the Company, shall have no liability in excess of the amount of his Capital Contributions.

Section 7.2     Exculpation.

(a)

No Covered Person shall be liable to the Company, any Member or any other Person who has an interest in the Company for any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Covered Person in good faith in connection with the formation of the Company or on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement, except that a Covered Person shall be liable for any such loss, damage or claim incurred by reason of such Covered Person's gross negligence or willful misconduct.

   
(b)

A Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented to the Company or the Board of Managers by any Person as to matters the Covered Person reasonably believes are within such other Person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses or any other facts pertinent to the existence and amount of assets from which distributions to Members might properly be paid.

Section 7.3     Indemnification.

(a)

Covered Persons. To the full extent permitted by applicable law, each Covered Person shall be entitled to indemnification from the Company for any loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement, except that no Covered Person shall be entitled to be indemnified in respect of any loss, damage or claim incurred by such Covered Person by reason of gross negligence or willful misconduct with respect to such acts or omissions; provided, however, that any indemnity under this Section 7.3 shall be provided out of and to the extent of Company assets only, and no Member shall have personal liability on account thereof.

   
(b)

Notice of Claims. Any Covered Person seeking indemnification hereunder (an "Indemnitee") shall promptly, and within 30 days after notice to it (notice to Indemnitee being the filing of any action, receipt of any claim in writing or similar form of actual notice) of any claim as to which it asserts a right to indemnification, notify the party from whom indemnification is sought (an "Indemnitor") of such claim. Indemnitee shall bill Indemnitor for any such claims no more frequently than on a monthly basis, and Indemnitor shall promptly pay (or cause to be paid) Indemnitee upon receipt of any such bill. The failure of Indemnitee to give the notification to Indemnitor contemplated above in this Section 7.3(b) shall not relieve Indemnitor from any liability or obligation that it may have pursuant to this Agreement unless the failure to give such notice within such time shall have been materially prejudicial to it, and in no event shall the failure to give such notification relieve Indemnitor from any liability it may have other than pursuant to this Agreement.


OPERATING AGREEMENT 9 UNATION, LLC.



(c)

Third Party Claims. If any claim for indemnification by Indemnitee arises out of an action or claim by a Person other than Indemnitee, Indemnitor may, by written notice to Indemnitee, undertake to conduct the defense thereof and to take all other steps or proceedings to defeat or compromise any such action or claim, including the employment of counsel; provided, that Indemnitor shall reasonably consider the advice of Indemnitee as to the defense or compromise of such actions and claims, and Indemnitee shall have the right to participate, at its own expense, in such proceedings, but control of such proceedings shall remain exclusively with Indemnitor. Indemnitee shall provide all reasonable cooperation to Indemnitor in connection with such proceedings. Counsel and auditor costs and expenses and court costs and fees of all proceedings with respect to any such action or claim shall be borne by Indemnitor. If any such claim is made hereunder and Indemnitor does not elect to undertake the defense thereof by written notice to Indemnitee, Indemnitee shall be entitled to control such proceedings and shall be entitled to indemnity with respect thereto pursuant to the terms of this Section 7.3(b). To the extent that Indemnitor undertakes the defense of such claim by written notice to Indemnitee and diligently pursues such defense at its expense, Indemnitee shall be entitled to indemnification hereunder only to the extent that such defense is unsuccessful as determined by a final judgment of a court of competent jurisdiction, or by written acknowledgment of the parties.

Section 7.4     Expenses.     To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a Covered Person in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized in Section 7.3 hereof.

Section 7.5     Insurance.     The Company may purchase and maintain insurance, to the extent and in such amounts as the Board of Managers shall, in its sole discretion, deem reasonable, on behalf of Covered Persons and such other persons as the Board of Managers shall determine, against any liability that may be asserted against or expenses that may be incurred by any person in connection with the activities of the Company or such indemnities, regardless of whether the Company would have the power to indemnify such person against such liability under the provisions of this Agreement. The Company may enter into indemnity contracts with Covered Persons and such other Persons as the Board of Managers shall determine and adopt written procedures pursuant to which arrangements are made for the advancement of expenses and the funding of obligations under Section 7.4 hereof and containing such other procedures regarding indemnification as are appropriate.

ARTICLE VIII
TRANSFERS OF UNITS

Section 8.1     Transfers of Units.

(a)

Generally.


  (i)

No Member or Security holder, other than the holders of Series C Units, may, at any time, directly or indirectly, assign, transfer, sell, exchange, syndicate, lien, encumber, pledge, or hypothecate (collectively, a "Transfer") all or any portion of its Units, or any direct or indirect beneficial or equity interest therein, or in the Company (collectively, "Equity Interests") to any Person without the prior written consent of the Board of Managers, which consent may be granted or withheld in the Board of Manager’s sole discretion, for any reason or no reason; provided, however, that any Member or Security holder who is an individual may Transfer all or any portion of such Equity Interest to any Permitted Transferee without such prior approval.


OPERATING AGREEMENT 10 UNATION, LLC.



  (ii)

Any individual Member or Security holder making such Transfer to a Permitted Transferee shall provide written notice thereof to the Managers within ten (10) days of the Applicable Transfer. It is agreed that failure to provide such notice to the Board of Managers shall make the purported Transfer to the Permitted Transferee void ab initio.

     
  (iii)

With respect to Transfers other than Permitted Transfers, the Board of Managers may condition its approval of any proposed Transfer of Units upon its receipt from the Member proposing to make such Transfer (the "Transferring Member") of a written notice to the Board of Managers (a "Transfer Notice") detailing all of the material terms of such proposed Transfer, including the name of proposed third party transferee or lender and the economic benefit to be derived by the Transferring Member from such transaction.

     
  (iv)

If a Member Transfers all or any portion of its Units to a Permitted Transferee or with the consent of the Board of Managers as provided for above, the transferee may be admitted to the Company as a Substitute Member in accordance with Section 3.7 hereof. If a Transfer of Units is made in accordance with the provisions of this Section 8.1, the Board of Managers shall promptly record the admission of the Additional Member in the Company records.


(b)

Override on Transfers. Notwithstanding the fact that a Transfer may be (or may have been effected) to a Permitted Transferee or may have been approved by the Board of Managers pursuant to this Section 8.1, no Transfer of Units shall be permitted if such Transfer (i) violates any applicable law, including federal or state securities laws or regulations, (ii) causes the Company to be treated as a "publicly traded partnership" for tax purposes or (iii) would constitute a Transfer of a Unit to a Prohibited Owner, in which case any such purported Transfer shall be void ab initio.

ARTICLE IX
DISSOLUTION, LIQUIDATION AND TERMINATION

Section 9.1   Dissolution.

(a)

The Company shall dissolve, and its affairs shall be wound up, only upon the majority vote of the holders of Series A Units.

   
(b)

The Company shall not be dissolved by the admission of Additional Members or Substitute Members in accordance with the terms of this Agreement.

Section 9.2     Liquidation.     Upon dissolution of the Company, the Mangers shall carry out the winding up of the Company and shall immediately commence to wind up the Company's affairs; provided, however, that (i) the Managers shall have all of the powers set forth in the Act during the period of the winding up of the Company's affairs and (ii) a reasonable time shall be allowed for the orderly liquidation of the assets of the Company and the satisfaction of liabilities to creditors so as to enable the Managers to minimize the normal losses attendant upon a liquidation. The Members shall continue to Unit in profits and losses of the Company during liquidation in the same proportions, as specified in Section 4.1 hereof, as before liquidation, provided that allocations of profits, losses and items thereof shall be made in a manner that results in the capital account balance (as described in Treasury Regulation 1.704 -1(b)) of each Member being equal to the distribution to be made to such Member pursuant to Section 9.3(c) . The proceeds of liquidation shall be distributed in the following order and priority:

(a)

first, to creditors of the Company, including Members who are creditors, to the extent otherwise permitted by law, in satisfaction of the liabilities of the Company (whether by payment or the making of reasonable provision for payment thereof);


OPERATING AGREEMENT 11 UNATION, LLC.



(b)

thereafter, to the Members, pro rata in proportion to their respective positive capital account balances; and

   
(c)

thereafter, to the Members, pro rata in proportion to their respective Ownership Interests.

Section 9.3     Termination.     The Company shall terminate when all of the assets of the Company, after payment of or due provision for all debts, liabilities and obligations of the Company, shall have been distributed to the Members in the manner provided for in this Article IX and the certificate of formation shall have been canceled in the manner required by the Act.

Section 9.4     Claims of the Members.     Upon dissolution of the Company, the Members shall look solely to the Company's assets for the return of their capital contributions, and if the assets of the Company remaining after payment of or due provision for all debts, liabilities and obligations of the Company are insufficient to return such capital contributions, the Members shall have no recourse against the Company or any other Member.

ARTICLE X
MISCELLANEOUS

Section 10.1    Separability of Provisions.     Each provision of this Agreement shall be considered separable and if for any reason any provision or provisions herein are determined to be invalid, unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this Agreement which are valid, enforceable and legal.

Section 10.2    Counterparts.     This Agreement and any amendment or joinder hereto may be executed in any number of counterparts and by facsimile and electronic mail, each of which, when taken together, shall be deemed an original of this Agreement and one and the same Agreement.

Section 10.3    Entire Agreement.     This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof, and supersedes all prior understandings or agreements between the parties.

Section 10.4    Governing Law.     This Agreement shall be governed by, and construed under, the laws of the State of Florida (without regard to the conflict of laws principles of such State).

Section 10.5    Litigation. Jurisdiction and venue with respect to any legal proceeding arising under this Operating Agreement shall properly and exclusively lie in either (i) the Thirteenth Judicial Circuit in the State of Florida, in and for Hillsborough County, Florida or (ii) the United States District Court for the Middle District of Florida (Tampa Division). Furthermore, if any legal action is pursued as a result of this Operating Agreement or the subject matter of this Operating Agreement, the prevailing party shall be entitled to its attorneys’ fees and costs.

Section 10.6    Remedies.     The rights and remedies of the Company and of the Members hereunder shall not be mutually exclusive, i.e., the exercise of one or more of the provisions hereof shall not preclude the exercise of any other provisions hereof. Except as otherwise provided for herein, it is expressly understood and agreed by the Members that, notwithstanding any other remedies which may be available at law or in equity to the Company, the Members or any of their respective Affiliates, the remedies available to such Persons upon a failure by any other such Person to perform any of its obligations hereunder, or upon a breach of any agreement, covenant or representation hereunder, shall be limited to those remedies which are expressly set forth in this Agreement, and all remedies which are not set forth herein, whether at law, equity or otherwise, are hereby waived by the Members in their own capacities and on behalf of their Affiliates.

OPERATING AGREEMENT 12 UNATION, LLC.


Section 10.7    No Third Party Beneficiaries.     Nothing in this Agreement, expressed or implied, is intended to confer any rights or remedies upon any Person, other than the Members and, subject to the restrictions on assignment contained herein, their respective successors and assigns.

Section 10.8    Amendments.     This Agreement may be modified, altered, supplemented or amended in any manner only with the approval of holders of a majority of the Series A Units; provided, however, that any amendment that changes the rights, privileges and obligations of Series B Unitsor Series C Units shall require the approval of holders of a majority of the Series A Units.

Section 10.9    Interpretation.     Whenever appropriate in the context, terms used in this Agreement in the singular also include the plural, and vice versa, and each masculine, feminine or neuter pronoun shall also include the other genders. Unless otherwise expressly stated herein, all references to the term "including" shall be deemed to be interpreted as meaning "including, without limitation". Unless otherwise expressly stated herein, all references to the phrase "applicable law" shall be deemed to include provisions of rules and regulations promulgated under applicable law. Except as otherwise expressly provided herein, all references herein to any contract, agreement, law, rule, regulation or other document shall refer to such contract, agreement, law, rule, regulation or other document as amended from time to time.

Section 10.10   Captions. The captions of articles, sections and schedules of this Agreement are for convenience only, and neither limits nor amplifies the provisions of the Agreement itself.

Section 10.11 Notices.     All notices, demands, approvals, consents and requests to be sent to the Company, any Manager, or any Member pursuant to the terms hereof shall be in writing and shall be deemed to have been properly given or served, if personally delivered, sent by recognized messenger or next day courier service, or sent by United States mail, in the case of the Company or any Managerthe address set forth in Section 1.3 above and, in the case of any Member, to such Member’saddress as set forth in the Company’s records, and will be deemed received, unless earlier received: (a) if sent by express, certified or registered mail (and if by registered mail, with return receipt requested), when actually received or delivery refused; (b) if sent by messenger or courier, when actually received or refused, provided it is received or refused on the same Business Day; (c) if delivered by hand, on the date of delivery or refusal; and (d) if sent by first-Series mail, seven (7) days after it was mailed, unless returned to sender for any reason by the United Stated Postal Service, but not at the request of the addressee. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice, demand or request sent.

ARTICLE XI
DEFINITIONS

Section 11.1    Certain Defined Terms.     When used in this Agreement, the following terms have the indicated meanings. All other capitalized terms are defined elsewhere in this Agreement.

"Affiliate" or "Affiliates" of a specified Person is a Person or Persons that (i) directly or indirectly, through one or more intermediaries, Controls, is Controlled by or is under common Control with the Person specified, or (ii) in the case of a natural person, is a spouse, natural brother or sister, linear ancestor or linear descendant of any such specified person, or (iii) in the case of a natural person, is a legal representative or trustee of any such specified persons, or (iv) is an officer, Manager, trustee, employee, Unitholder, member, partner, principal or trust for the benefit of any entity or Person referred to in the preceding clauses (i), (ii) or (iii); provided, however, for the purposes of this Agreement, that no Member shall be deemed an Affiliate of any other Member or any officer or agent of the Company solely by virtue of the relationship of those parties to each other pursuant to this Agreement.

Authorized Unit” means one of the defined or specified total number of Units of a series determined by the Board of Managers.

OPERATING AGREEMENT 13 UNATION, LLC.


"Available Net Cash" means, for any fiscal period, any operating receipts of the Company (including the cash proceeds received by the Company in connection with any Capital Event) after payment of (i) any amounts required to pay costs and expenses of the Company, including normal operating expenses, taxes and professional or other fees, (ii) any payments of any Indebtedness, (iii) amounts of any reserves as may reasonably be determined by the Board of Managers, and (iv) Preferred Distributions with respect to Series B Units. For purposes of this definition, the term "Indebtedness" means, with respect to the Company, (a) all indebtedness for borrowed money, (b) the deferred purchase price of assets or services which, in accordance with generally accepted accounting principles, would be reflected as a liability, (c) the maximum amount of all letters of credit issued for the account of the Company, (d) all capitalized lease obligations, and (e) obligations to guarantee the debt of another Person.

"Business Day" shall mean any day other than a Saturday, Sunday or any day on which national banks in New York, New York are not open for business.

"Capital Event" means any event not occurring in the ordinary course of business of the Company, pursuant to which the Company receives any consideration with respect to its assets or the disposition thereof or of any interest therein, and including, without limitation, any sale, financing, refinancing, exchange, redemption, conversion or liquidation of all or any part of the assets of the Company (including equity interests owned by the Company).

"Code" shall mean the Internal Revenue Code of 1986, as amended, or corresponding provisions of future laws.

"Control" shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through (i) the ownership of voting Units, (ii) general partnership interests, (iii) common Managers or trustees, or (iv) by contract or otherwise.

Issued Unit” means a Unit that is actually owned by a member.

Managers” means the Individuals authorized under state and federal law to make decisions and transact business on behalf of the Company, to include signing contracts on behalf of the Company and conducting financial business on behalf of the Company.

"Permitted Transferee" means, as to any Member or Security holder who is a natural person, but in any event solely in the furtherance of such Member or Security holder’s estate planning: (a) the spouse, brother, sister, lineal ancestor or lineal descendent of such Member or Security holder, (b) the legal representative or trustee of such Member, Security holder or any individual specified in clause (a) of this definition, or (c) any partnership, limited liability company, trust or other entity (i) organized solely for the sole benefit of any individual specified in clause (a) of this definition or group of such related individuals and (ii) controlled by such Member or Security holder or such Member or Security holder’s Permitted Transferee.

"Person" means any legal person, including any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, governmental entity or other entity of similar nature.

"Prohibited Owner" means a proposed Additional Member or Substitute Member or other transferee or assignee of a Unit, or such Person's direct or indirect Unit holders, members, partners, controlling parties, beneficiaries or other owners of interests in such transferee, to the extent that any such Person is, are or has been (a) to the actual knowledge of the Company or any Member or their respective Affiliates, at the time of transfer or other transaction, as applicable, under investigation by any federal, state, local or foreign governmental authority for alleged criminal behavior or (b) a Person which, directly or indirectly, is engaged in any business which the Company is engaged at the time of the proposed Transfer.

"Security holder" means any Person holding a direct or indirect equity interest in a Member.

OPERATING AGREEMENT 14 UNATION, LLC.


"Treasury Regulations" means the income tax regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

Unissued Units” means the number of Units remaining from the total authorized Units and those Units which have been issued.

IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this Agreement as of the date first set forth below.

Date: April 30, 2016

Signatures

UNATION, LLC 

 
John Bartoletta, as its Manager

MARQUESAS CAPITAL PARTNERS, LLC

 
Dennis Thomas, as its Manager

OPERATING AGREEMENT 15 UNATION, LLC.


EX1A-4 SUBS AGMT 10 exhibit4.htm UNATION, LLC: Exhibit 4

SUBSCRIPTION AGREEMENT

THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK. THIS INVESTMENT IS SUITABLE ONLY FOR PERSONS WHO CAN BEAR THE ECONOMIC RISK FOR AN INDEFINITE PERIOD OF TIME AND WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. FURTHERMORE, INVESTORS MUST UNDERSTAND THAT SUCH INVESTMENT IS ILLIQUID AND IS EXPECTED TO CONTINUE TO BE ILLIQUID FOR AN INDEFINITE PERIOD OF TIME. NO PUBLIC MARKET EXISTS FOR THE SECURITIES, AND NO PUBLIC MARKET IS EXPECTED TO DEVELOP FOLLOWING THIS OFFERING.

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND STATE SECURITIES OR BLUE SKY LAWS. ALTHOUGH AN OFFERING STATEMENT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE “SEC”), THAT OFFERING STATEMENT DOES NOT INCLUDE THE SAME INFORMATION THAT WOULD BE INCLUDED IN A REGISTRATION STATEMENT UNDER THE ACT.THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON THE MERITS OF THIS OFFERING OR THE ADEQUACY OR ACCURACY OF THE SUBSCRIPTION AGREEMENT OR ANY OTHER MATERIALS OR INFORMATION MADE AVAILABLE TO SUBSCRIBER IN CONNECTION WITH THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

INVESTORS WHO ARE NOT “ACCREDITED INVESTORS” (AS THAT TERM IS DEFINED IN SECTION 501 OF REGULATION D PROMULGATED UNDER THE ACT) ARE SUBJECT TO LIMITATIONS ON THE AMOUNT THEY MAY INVEST, AS SET OUT IN SECTION 4. THE COMPANY IS RELYING ON THE REPRESENTATIONS AND WARRANTIES SET FORTH BY EACH SUBSCRIBER IN THIS SUBSCRIPTION AGREEMENT AND THE OTHER INFORMATION PROVIDED BY SUBSCRIBER IN CONNECTION WITH THIS OFFERING TO DETERMINE THE APPLICABILITY TO THIS OFFERING OF EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT.

PROSPECTIVE INVESTORS MAY NOTTREAT THE CONTENTS OF THE SUBSCRIPTION AGREEMENT, THE OFFERING CIRCULAR OR ANY OF THE OTHER MATERIALS (COLLECTIVELY, THE “OFFERING MATERIALS”) OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS FROM THE COMPANY OR ANY OF ITS OFFICERS, EMPLOYEES OR AGENTS (INCLUDING “TESTING THE WATERS” MATERIALS) AS INVESTMENT, LEGAL OR TAX ADVICE. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND THE RISKS INVOLVED. EACH PROSPECTIVE INVESTOR SHOULD CONSULT THE INVESTOR’S OWN COUNSEL, ACCOUNTANT AND OTHER PROFESSIONAL ADVISOR AS TO INVESTMENT, LEGAL, TAX AND OTHER RELATED MATTERS CONCERNING THE INVESTOR’S PROPOSED INVESTMENT.

THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.


THE COMPANY MAY NOT BE OFFERING THE SECURITIES IN EVERY STATE.THE OFFERING MATERIALS DO NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR JURISDICTION IN WHICH THE SECURITIES ARE NOT BEING OFFERED.

THE INFORMATION PRESENTED IN THE OFFERING MATERIALS WAS PREPARED BY THE COMPANY SOLELY FOR THE USE BY PROSPECTIVE INVESTORS IN CONNECTION WITH THIS OFFERING. NO REPRESENTATIONS OR WARRANTIES ARE MADE AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED IN ANY OFFERING MATERIALS, AND NOTHING CONTAINED IN THE OFFERING MATERIALS IS OR SHOULD BE RELIED UPON AS A PROMISE OR REPRESENTATION AS TO THE FUTURE PERFORMANCE OF THE COMPANY.

THE COMPANY RESERVES THE RIGHT IN ITS SOLE DISCRETION AND FOR ANY REASON WHATSOEVER TO MODIFY, AMEND AND/OR WITHDRAW ALL OR A PORTION OF THE OFFERING AND/OR ACCEPT OR REJECT IN WHOLE OR IN PART ANY PROSPECTIVE INVESTMENT IN THE SECURITIES OR TO ALLOT TO ANY PROSPECTIVE INVESTOR LESS THAN THE AMOUNT OF SECURITIES SUCH INVESTOR DESIRES TO PURCHASE. EXCEPT AS OTHERWISE INDICATED, THE OFFERING MATERIALS SPEAK AS OF THEIR DATE. NEITHER THE DELIVERY NOR THE PURCHASE OF THE SECURITIES SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THAT DATE.

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TO: UNATION, LLC
  12802 Tampa Oaks Blvd., Suite 405
  Tampa, FL 33637

Ladies and Gentlemen:

1. Subscription.

(a) The undersigned (“Subscriber”) hereby irrevocably subscribes for and agrees to purchase the Series C Units (the “Securities”), of UNATION, LLC, a Delaware limited liability company (the “Company”), at a purchase price of $12.00 per Unit(the “Per Security Price”), upon the terms and conditions set forth herein. The rights of the Series C Units are as set forth in the [Amended and Restated Operating Agreement of UNATION, LLC] which is filed as an Exhibit to the Offering Circular filed with the SEC.

(b) By executing this Subscription Agreement, Subscriber acknowledges that Subscriber has received this Subscription Agreement, a copy of the Offering Statement of the Company filed with the SEC and any other information required by the Subscriber to make an investment decision. It is a condition of the Company’s acceptance of this subscription that Subscriber becomes a party to the [Amended and Restated Operating Agreement.]

(c) This Subscription may be accepted or rejected in whole or in part, at any time prior to a Closing Date (as hereinafter defined), by the Company at its sole discretion. In addition, the Company, at its sole discretion, may allocate to Subscriber only a portion of the number of Securities Subscriber has subscribed for. The Company will notify Subscriber whether this subscription is accepted (whether in whole or in part) or rejected. If Subscriber’s subscription is rejected, Subscriber’s payment (or portion thereof if partially rejected) will be returned to Subscriber without interest and all of Subscriber’s obligations hereunder shall terminate.

(d) The aggregate number of Securities sold shall not exceed 2,500,000(the “Maximum Offering”). The Company may accept subscriptions until [DATE], unless otherwise extended by the Company in its sole discretion in accordance with applicable SEC regulations for such other period required to sell the Maximum Units (the “Termination Date”). The Company may elect at any time to close all or any portion of this offering, on various dates at or prior to the Termination Date (each a “Closing Date”).

(e) In the event of rejection of this subscription in its entirety, or in the event the sale of the Securities (or any portion thereof) is not consummated for any reason, this Subscription Agreement shall have no force or effect, except for Section 5 hereof, which shall remain in force and effect.

2. Purchase Procedure.

(a) Payment. The purchase price for the Securities shall be paid simultaneously with the execution and delivery to the Company of the signature page of this Subscription Agreement and a duly executed counterpart signature page to the Company’s [Amended and Restated Operating Agreement]. Subscriber shall deliver a signed copy of this Subscription Agreement and the Company’s [Amended and Restated Operating Agreement], along with payment for the aggregate purchase price of the Securities by a check for available funds made payable to “UNATION, LLC”, by wire transfer to an account designated by the Company.

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3. Representations and Warranties of the Company.

The Company represents and warrants to Subscriber that the following representations and warranties are true and complete in all material respects as of the date of each Closing Date, except as otherwise indicated. For purposes of this Agreement, an individual shall be deemed to have “knowledge” of a particular fact or other matter if such individual is actually aware of such fact. The Company will be deemed to have “knowledge” of a particular fact or other matter if one of the Company’s current officers has, or at any time had, actual knowledge of such fact or other matter.

(a) Organization and Standing. The Company is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware. The Company has all requisite power and authority to own and operate its properties and assets, to execute and deliver this Subscription Agreement, [the Amended and Restated Operating Agreement] and any other agreements or instruments required hereunder. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.

(b) Issuance of the Securities. The issuance, sale and delivery of the Securities in accordance with this Subscription Agreement has been duly authorized by all necessary corporate action on the part of the Company. The Securities, when so issued, sold and delivered against payment therefor in accordance with the provisions of this Subscription Agreement, will be duly and validly issued, fully paid and non-assessable.

(c) Authority for Agreement. All limited liability company action on the part of the Company necessary for the authorization of this Subscription Agreement, the performance of all obligations of the Company hereunder at a Closing and the authorization, sale, issuance and delivery of the Securities pursuant hereto has been taken or will be taken prior to the applicable Closing.

The execution and delivery by the Company of this Subscription Agreement and the consummation of the transactions contemplated hereby (including the issuance, sale and delivery of the Securities) are within the Company’s powers and have been duly authorized by all necessary corporate action on the part of the Company. Upon full execution hereof, this Subscription Agreement shall constitute a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies and (iii) with respect to provisions relating to indemnification and contribution, as limited by considerations of public policy and by federal or state securities laws.

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(d) No filings. Assuming the accuracy of the Subscriber’s representations and warranties set forth in Section4 hereof, no order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to, or filing or registration with, any governmental body, agency or official is required by or with respect to the Company in connection with the execution, delivery and performance by the Company of this Subscription Agreement except (i) for such filings as may be required under Regulation A or under any applicable state securities laws, (ii) for such other filings and approvals as have been made or obtained, or (iii) where the failure to obtain any such order, license, consent, authorization, approval or exemption or give any such notice or make any filing or registration would not have a material adverse effect on the ability of the Company to perform its obligations hereunder.

(e) Capitalization. The outstanding units and securities of the Company immediately prior to the initial investment in the Securities is as set forth in the Section titled “Securities Being Offered” of the Offering Circular. Except as set forth the the Section titled “Securities Being Offered” of the offering Circular, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal), or agreements of any kind (oral or written) for the purchase or acquisition from the Company of any of its securities.

(f) Financial statements. Complete copies of the Company’s financial statements consisting of the statement of financial position of the Company as at December 31, 2015 and the related statements of income and cash flows for the two-year period then ended (the “Financial Statements”) have been made available to the Subscriber and appear in the Offering Circular. The Financial Statements are based on the books and records of the Company and fairly present the financial condition of the Company as of the respective dates they were prepared and the results of the operations and cash flows of the Company for the periods indicated. Kristina Helferty, CPA, which has audited the Financial Statements, is an independent accounting firm within the rules and regulations adopted by the SEC.

(g) Proceeds. The Company shall use the proceeds from the issuance and sale of the Securities as set forth in the Section titled “Use of Proceeds” of the Offering Circular.

(h) Litigation. There is no pending action, suit, proceeding, arbitration, mediation, complaint, claim, charge or investigation before any court, arbitrator, mediator or governmental body, or to the Company’s knowledge, currently threatened in writing (a) against the Company or (b) against any consultant, officer, manager, director or key employee of the Company arising out of his or her consulting, employment or board relationship with the Company or that could otherwise materially impact the Company, except as provided in the sub-Section titled “Legal Proceedings” of the Offering Circular.

4. Representations and Warranties of Subscriber. By executing this Subscription Agreement, Subscriber (and, if Subscriber is purchasing the Securities subscribed for hereby in a fiduciary capacity, the person or persons for whom Subscriber is so purchasing) represents and warrants, which representations and warranties are true and complete in all material respects as of the date of each Closing Date:

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(a) Requisite Power and Authority. Such Subscriber has all necessary power and authority under all applicable provisions of law to execute and deliver this Subscription Agreement, the Operating Agreement and other agreements required hereunder and to carry out their provisions. All action on Subscriber’s part required for the lawful execution and delivery of this Subscription Agreement and other agreements required hereunder have been or will be effectively taken prior to the Closing. Upon their execution and delivery, this Subscription Agreement and other agreements required hereunder will be valid and binding obligations of Subscriber, enforceable in accordance with their terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (b) as limited by general principles of equity that restrict the availability of equitable remedies.

(b) Investment Representations. Subscriber understands that the Securities have not been registered under the Securities Act of 1933, as amended (the “Securities Act”). Subscriber also understands that the Securities are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon Subscriber’s representations contained in this Subscription Agreement.

(c) Illiquidity and Continued Economic Risk. Subscriber acknowledges and agrees that there is no ready public market for the Securities and that there is no guarantee that a market for their resale will ever exist. Subscriber must bear the economic risk of this investment indefinitely and the Company has no obligation to list the Securities on any market or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Securities. Subscriber acknowledges that Subscriber is able to bear the economic risk of losing Subscriber’s entire investment in the Securities. Subscriber also understands that an investment in the Company involves significant risks and has taken full cognizance of and understands all of the risk factors relating to the purchase of Securities.

(d) Accredited Investor Status or Investment Limits. Subscriber represents that either:

(i) Subscriber is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act. Subscriber represents and warrants that the information set forth in response to question (c) on the signature page hereto concerning Subscriber is true and correct; or

(ii) The purchase price set out in paragraph (b) of the signature page to this Subscription Agreement, together with any other amounts previously used to purchase Securities in this offering, does not exceed 10% of the greater of the Subscriber’s annual income or net worth.

Subscriber represents that to the extent it has any questions with respect to its status as an accredited investor, or the application of the investment limits, it has sought professional advice.

(e) Shareholder information. Within five days after receipt of a request from the Company, the Subscriber hereby agrees to provide such information with respect to its status as a shareholder (or potential shareholder) and to execute and deliver such documents as may reasonably be necessary to comply with any and all laws and regulations to which the Company is or may become subject. Subscriber further agrees that in the event it transfers any Securities, it will require the transferee of such Securities to agree to provide such information to the Company as a condition of such transfer.

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(f) Company Information. Subscriber has had an opportunity to discuss the Company’s business, management and financial affairs with managers, officers and management of the Company and has had the opportunity to review the Company’s operations and facilities. Subscriber has also had the opportunity to ask questions of and receive answers from the Company and its management regarding the terms and conditions of this investment. Subscriber acknowledges that except as set forth herein, no representations or warranties have been made to Subscriber, or to Subscriber’s advisors or representative, by the Company or others with respect to the business or prospects of the Company or its financial condition.

(g) Valuation. The Subscriber acknowledges that the price of the Securities was set by the Company on the basis of the Company’s internal valuation and no warranties are made as to value. The Subscriber further acknowledges that future offerings of Securities may be made at lower valuations, with the result that the Subscriber’s investment will bear a lower valuation.

(h) Domicile. Subscriber maintains Subscriber’s domicile (and is not a transient or temporary resident) at the address shown on the signature page.

(i) No Brokerage Fees. There are no claims for brokerage commission, finders’ fees or similar compensation in connection with the transactions contemplated by this Subscription Agreement or related documents based on any arrangement or agreement binding upon Subscriber. The undersigned will indemnify and hold the Company harmless against any liability, loss or expense (including, without limitation, reasonable attorneys' fees and out-of-pocket expenses) arising in connection with any such claim.

(j) Foreign Investors. If Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Subscription Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Securities. Subscriber’s subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of the Subscriber’s jurisdiction.

5. Indemnity. The representations, warranties and covenants made by the Subscriber herein shall survive the closing of this Agreement. The Subscriber agrees to indemnify and hold harmless the Company and its respective officers, directors and affiliates, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all reasonable attorneys’ fees, including attorneys’ fees on appeal) and expenses reasonably incurred in investigating, preparing or defending against any false representation or warranty or breach of failure by the Subscriber to comply with any covenant or agreement made by the Subscriber herein or in any other document furnished by the Subscriber to any of the foregoing in connection with this transaction.

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6. Governing Law; Jurisdiction. This Subscription Agreement shall be governed and construed in accordance with the laws of the State of New York.

EACH OF THE SUBSCRIBERS AND THE COMPANY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE STATE OF FLORIDA AND NO OTHER PLACE AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS RELATING TO THIS SUBSCRIPTION AGREEMENT MAY BE LITIGATED IN SUCH COURTS. EACH OF SUBSCRIBERS AND THE COMPANY ACCEPTS FOR ITSELF AND HIMSELF AND IN CONNECTION WITH ITS AND HIS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS SUBSCRIPTION AGREEMENT. EACH OF SUBSCRIBERS AND THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN THE MANNER AND IN THE ADDRESS SPECIFIED IN SECTION 8 AND THE SIGNATURE PAGE OF THIS SUBSCRIPTION AGREEMENT.

EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS SUBSCRIPTION AGREEMENT OR THE ACTIONS OF EITHER PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF, EACH OF THE PARTIES HERETO ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF SUCH PARTY. EACH OF THE PARTIES HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS SUBSCRIPTION AGREEMENT. IN THE EVENT OF LITIGATION, THIS SUBSCRIPTION AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

7. Notices. Notice, requests, demands and other communications relating to this Subscription Agreement and the transactions contemplated herein shall be in writing and shall be deemed to have been duly given if and when (a) delivered personally, on the date of such delivery; or (b) mailed by registered or certified mail, postage prepaid, return receipt requested, in the third day after the posting thereof; or (c) emailed, telecopied or cabled, on the date of such delivery to the address of the respective parties as follows:

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If to the Company, to:

UNATION, LLC

12802 Tampa Oaks Blvd., Suite 405

Tampa, FL 33637

If to a Subscriber, to Subscriber’s address as shown on the signature page hereto or to such other address as may be specified by written notice from time to time by the party entitled to receive such notice. Any notices, requests, demands or other communications by telecopy or cable shall be confirmed by letter given in accordance with (a) or (b) above.

8. Miscellaneous.

(a) All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons or entity or entities may require.

(b) This Subscription Agreement is not transferable or assignable by Subscriber.

(c) The representations, warranties and agreements contained herein shall be deemed to be made by and be binding upon Subscriber and its heirs, executors, administrators and successors and shall inure to the benefit of the Company and its successors and assigns.

(d) None of the provisions of this Subscription Agreement may be waived, changed or terminated orally or otherwise, except as specifically set forth herein or except by a writing signed by the Company and Subscriber.

(e) In the event any part of this Subscription Agreement is found to be void or unenforceable, the remaining provisions are intended to be separable and binding with the same effect as if the void or unenforceable part were never the subject of agreement.

(f) The invalidity, illegality or unenforceability of one or more of the provisions of this Subscription Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Subscription Agreement in such jurisdiction or the validity, legality or enforceability of this Subscription Agreement, including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

(g) This Subscription Agreement supersedes all prior discussions and agreements between the parties with respect to the subject matter hereof and contains the sole and entire agreement between the parties hereto with respect to the subject matter hereof.

(h) The terms and provisions of this Subscription Agreement are intended solely for the benefit of each party hereto and their respective successors and assigns, and it is not the intention of the parties to confer, and no provision hereof shall confer, third-party beneficiary rights upon any other person.

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(i) The headings used in this Subscription Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof.

(j) This Subscription Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

(k) If any recapitalization or other transaction affecting the stock of the Company is effected, then any new, substituted or additional securities or other property which is distributed with respect to the Securities shall be immediately subject to this Subscription Agreement, to the same extent that the Securities, immediately prior thereto, shall have been covered by this Subscription Agreement.

(l) No failure or delay by any party in exercising any right, power or privilege under this Subscription Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

[SIGNATURE PAGE FOLLOWS]

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UNATION, LLC

SUBSCRIPTION AGREEMENT SIGNATURE PAGE

The undersigned, desiring to purchase the Series C Units of UNATION, LLC, by executing this signature page, hereby executes, adopts and agrees to all terms, conditions and representations of the Subscription Agreement.

(a)     The number of Series C Units the undersigned hereby irrevocably subscribes for is:

_____________

 

   

 

  (print number of
Securities)  

   

(b)     The aggregate purchase price (based on a purchase price of $12.00 per Security) for the Series C Units the undersigned hereby irrevocably subscribes for is:

$ _____________

 

   

 

  (print aggregate
purchase price)  

   

(c)     EITHER (i) The undersigned is an accredited investor (as that term is defined in Regulation D under the Securities Act because the undersigned meets the criteria set forth in the following paragraph(s) of Appendix A attached hereto:

_____________ 

  (print applicable
number from
Appendix A)

OR (ii) The amount set forth in paragraph (b) above (together with any previous investments in the Securities pursuant to this offering) does not exceed 10% of the greater of the undersigned’s net worth or annual income.

_____________ 

   

(d)     The Securities being subscribed for will be owned by, and should be recorded on the Company’s books as held in the name of:

_____________________________________

(print name of owner or joint owners)

11




      If the Securities are to be purchased in joint names, both Subscribers must sign:    
         
Signature     Signature  
         
Name (Please Print)     Name (Please Print)  
         
Email address     Email address  
         
Address     Address  
         
         
Telephone Number     Telephone Number  
         
Social Security Number/EIN     Social Security Number  
         
Date     Date  

* * * * *

This Subscription is accepted   UNATION, LLC
     
on _____________, 201X     By:  
       
      Name:
       
      Title:

12


APPENDIX A

An accredited investor includes the following categories of investor:

(1) Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any insurance company as defined in section 2(a)(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

(2) Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

(3) Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

(4) Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

(5) Any natural person whose individual net worth, or joint net worth with that person's spouse, exceeds $1,000,000.

(i) Except as provided in paragraph (a)(5)(ii) of this section, for purposes of calculating net worth under this paragraph (a)(5):

(A) The person's primary residence shall not be included as an asset;

(B) Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and

13


(C) Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability;

(ii) Paragraph (a)(5)(i) of this section will not apply to any calculation of a person's net worth made in connection with a purchase of securities in accordance with a right to purchase such securities, provided that:

(A) Such right was held by the person on July 20, 2010;

(B) The person qualified as an accredited investor on the basis of net worth at the time the person acquired such right; and

(C) The person held securities of the same issuer, other than such right, on July 20, 2010.

(6) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

(7) Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in §230.506(b)(2)(ii); and

(8) Any entity in which all of the equity owners are accredited investors.

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EX1A-6 MAT CTRCT 11 exhibit6-1.htm UNATION, LLC: Exhibit 6.1

LOAN AGREEMENT

This Loan Agreement is made and entered into this 31st day of January, 2013, by and between UNATION, LLC, a Delaware limited liability company (the "Borrow- er"), and Marqesas Capital Partners, LLC a Delaware limited liability company (the "Lender").

BACKGROUND:

WHEREAS, the Borrower has requested that the Lender loan to the Borrower up to $2,500,000 in the form of a term loan, which sum is to be evidenced by a certain Term Note to be executed by the Borrower in favor of the Lender in conjunction herewith (the "Term Note"); and

WHEREAS, the Lender is willing to loan the Borrower the sums requested, on the terms and subject to the conditions set forth herein and in the other Loan Docu- ments (as hereinafter defined).

NOW, THEREFORE, in consideration of the premises, the mutual covenants and agreements contained herein, and other good and valuable consideration in hand paid by the parties hereto, the receipt and sufficiency of which is hereby acknowl- edged, the parties agree as follows:

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

(a)     "Affiliate"  shall mean any Person who controls or is controlled by or is under common control with the Borrower.

(b)     "Agreement"  shall mean this Loan Agreement, as the same may be amended, supplemented or modified, in writing, from time to time in accordance with the terms hereof.

(c)     "Borrower"  shall mean UNATION, LLC, a Delaware limited liability company, and any successor or permitted assign thereof.

(d)     "Business Day"  shall mean a day other than a Saturday, Sunday or other day on which commercial banks in the State of Florida are authorized or required by law to close.

(e)     "Closing"  is defined in Section 7(a).

(f)     "Code"  shall mean the Internal Revenue Code of 1986, as amended from time to time.

(g)     "Collateral"  is defined in Section 3(a).


(h)     "Commitment" shall mean the obligation of the Lender to make Advances pursuant to the terms and subject to the conditions hereof.

(i)     "Default" shall mean any of the events specified in Section 8, whether or not any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

(j)     "Environmental Laws" shall mean any of the Water Pollution Control Act, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA" or "Superfund Act"), the Superfund Amendments and Reauthorization Act, the Toxic Substances Control Act, the Clear Air Act, the Safe Drinking Water Act, the Solid Waste Disposal Act, or any similar laws imposing liability on any person for the generation, storage, impoundment and disposal, discharge, treatment, release, seepage, emission, transportation or destruction of any Hazardous Waste or of any garbage, sewage, effluent, smoke, dusty or any other form of pollution (whether or not denominated as a Hazardous Waste), as the same may be amended from time to time, and any rules, regulations, or administrative orders thereunder and any state statutes, laws, rules, regulations or administrative orders addressing the same or similar subject as the foregoing federal laws.

(k)     "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time.

(l)     "Event of Default " shall mean any of the events specified in Section 8, provided that any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

(m)     "Financial Statements " are defined in Section 4(e)

(n)     "GAAP" shall mean generally accepted accounting principles, consistently applied.

(o)     "Hazardous Waste " shall mean any hazardous, toxic or radioactive substance, materials or products as defined under any Environmental Laws, including, but not limited to, petroleum products, ammonia, chlorine, derivatives of petroleum products, pesticides, asbestos and asbestos-containing materials, and polychlorinated biphenyls (PCBs).

(p)     "Lender" shall mean Marquesas Capital Partners, LLC a Dela-ware limited liability company, their successors and assigns.


(q)     “Loan” shall mean the aggregate amount outstanding under the Term Note on any given date.

(r)     "Loan Documents" shall mean, collectively, this Agreement, the Term Note, the Security Agreement, any UCC financing statements, and any other agreements, documents or instruments relating to the Loan, whether executed prior to or at the Closing hereof, as the same may be amended, supplemented or modified, in writing, from time to time; and "Loan Document " shall mean any one of the foregoing.

(s)     "Person" (whether or not such term is capitalized) shall mean an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture or any other entity or a government or any agency or political subdivision thereof.

(t)     "Security Agreement" is defined in Section 3(a).

(u)     "Subsidiary" shall mean any corporation or other business entity of which more than fifty percent (50%) of the outstanding securities of each class having ordinary voting power is at the time owned by the Borrower or by one or more of its Subsidiaries; or by the Borrower and one or more of its Subsidiaries.

(v)     "Term Note" shall mean that certain Term Note executed by the Borrower in favor of the Lender pursuant to Section 2 hereof.

(w)     "Termination Date" shall mean January 31, 2015. If such day is not a Business Day, the preceding Business Day shall be the Termination Date.

(x)     Other Definitional Provisions. All terms defined in or incorporated into this Agreement shall have the same defined meanings when used in the other Loan Documents or any certificate or other instrument made or delivered pursuant hereto unless the context otherwise requires. Each accounting term used but not defined herein shall have the meaning given to it under GAAP.

2.    The Term Loan.

(a)    Term Loan Commitment. Upon the terms and subject to the conditions set forth in this Agreement, the Lender agrees to lend to the Borrower an aggregate principal amount of Two Million Five Hundred Thousand Dollars ($2,500,000).

(b)     Promissory Note. The Term Loan shall be evidenced by a Term Note in the form of Exhibit A attached hereto (the "Term Note").


(c)     Interest. The rate of interest under the Term Loan shall be 12%, based on a 365-day year, or such lower rate as may be necessary to comply with any applicable law. Interest shall be paid monthly until the Term Note is paid in full.

(d)    Use of Proceeds. The proceeds of the Term Loan shall be used as working capital.

(e)     Prepayment. Except as required by Section 2(f), the Borrower may not prepay the indebtedness evidenced by the Term Note.

(f)     Principal Payments. The principal amount of the Loan shall be repaid in full on the Termination Date.

3.     Security. As security for the full and timely payment of the principal of and interest on the Term Note and all other liabilities of the Borrower to the Lender arising in connection with the Loan, whether now existing or hereafter arising, the Borrower shall at or before the Closing:

(a)     grant to the Lender a valid, first priority perfected security interest in all business assets, including all Debtor's personal property, whether now owned or hereafter acquired including, without limitation, goods, accounts, accounts receivable, deposits accounts, investment property, stocks and bonds, LLC and partnership interest, instruments, chattel paper, documents, letter-of-credit rights, commercial tort claims and general intangibles, proceeds and products thereof, and any and all other assets of the Borrower, tangible or intangible, (collectively, together with the other collateral described in the Security Agreement, the “Collat- eral"), as is more fully set forth in the Security Agreement between the Borrower and the Lender, a copy of which Security Agreement is attached hereto as Exhibit B (the "Security Agreement"); and

(b)     execute and deliver to the Lender, in form and substance satisfactory to the Lender, UCC financing statements, chattel mortgages, assignments and such other documents as may be requested by the Lender to perfect the security interests and other liens referred to in subparagraph (a) above.

4.     Representations and Warranties. In order to induce the Lender to enter into this Agreement and to make the Loan, the Borrower represents and warrants to the Lender (which representations and warranties shall survive the delivery of the Notes and the making of the Loan) that:

(a)     Status. The Borrower is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Louisiana, has the power and legal authority to own its property and carry on its business as now being conducted, and is duly qualified to do business in every jurisdiction where such qualification is necessary and where the failure to be so qualified might materially affect its operations.


(b)     Subsidiaries. The Borrower has no Subsidiaries.

(c)     Fictitious Names. The Borrower uses no fictitious name in the conduct of its business.

(d)     Power and Authority. The Borrower is authorized under all applicable provisions of law to execute, deliver and perform this Agreement and the other Loan Documents, and all action on the part of the Borrower required for the lawful execution, delivery and performance of this Agreement and the other Loan Documents has been duly taken. This Agreement and each of the other Loan Documents, upon the due execution and delivery thereof, will be the valid and enforceable obligation of the Borrower, in accordance with their respective terms, except as limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors rights generally. Neither the execution and delivery of this Agreement or the other Loan Documents, nor the fulfillment of or compliance with their provisions and terms, will conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a violation of or default under any applicable law, regulation, order, writ, or decree, or any agreement (including the Odebrecht Agreement) or instrument to which the Borrower is now a party, or create any security interest, chattel mortgage, lien or other encumbrance upon any of the property or assets of the Borrower pursuant to the terms of any agreement or instrument to which Borrower is a party or by which Borrower, or any of its property or assets are bound, except those in favor of the Lender expressly created by the Loan Documents.

(e)     Loss. No substantial loss, damage, destruction or taking of any of the real or personal property of the Borrower or of the real or personal property leased by the Borrower has occurred that has not been fully restored or replaced or that is not fully covered by insurance, less applicable deductibles, and neither such property nor the business of the Borrower has been adversely affected in any substantial way as the result of any accident, strike, lockout, embargo, riot, war or act of God or the public enemy.

(f)    Title to Assets. The Borrower has good and marketable title to all of its properties and assets, including, without limitation, the Collateral and the properties and assets disclosed on the Financial Statements; and all such properties and assets are free and clear of all security interests, chattel mortgages, liens, or other encumbrances of any kind, except those in favor of the Lender, those for taxes and assessments not yet due, and those disclosed on the Financial Statements.

(g)     Litigation. There are no investigations, actions, suits, or proceedings by any federal, state or local government body, agency or authority, or any political subdivisions thereof, or by any person, pending, or to the knowledge of the Borrower, threatened against the Borrower, or other proceedings to which the Borrower is a party (including administrative or arbitration proceedings).


(h)     Tax Returns. The Borrower has filed all tax returns, if any, required to be filed by it and has paid all taxes and assessments, if any, payable by it that have become due, other than those not yet delinquent. The Borrower has established reserves that are believed by the Borrower to be adequate for the payment of all federal and state income taxes not heretofore paid or closed by applicable statute.

(i)     Governmental Approval. The Borrower has complied and is in substantial compliance with all applicable laws and regulations of all governmental authorities. No written approval of any federal, state or local governmental authority, or any political subdivision thereof, is necessary to carry out the terms of this Agreement or any of the other Loan Documents, and no consents or approvals are required in the making or performance of this Agreement or any of the other Loan Documents.

(j)     Environmental Matters.

(j.i)     The Borrower is in compliance with all provisions of the Environmental Laws, and with any rules, regulations and administrative orders of any governmental agency, and with any judgments, decrees or orders of any court of competent jurisdiction with respect thereto.

(j.ii)     The Borrower has not received any assessment, notice of (primary or secondary) liability or notice of financial responsibility, and no notice of any action, claim or proceeding to determine such liability or responsibility, or the amount thereof, or to impose civil penalties with respect to a site listed on any federal or state listing of sites containing or believed to contain Hazardous Wastes, and the Borrower has not received notification that any hazardous substances (as defined under CERCLA) that it has disposed of have been found in any site at which any governmental agency is conducting an investigation or other proceeding under any Environmental Law.

(k)     No Untrue Statements. Neither this Agreement, nor any of the other Loan Documents, nor any other agreement, report, schedule, certificate or instrument heretofore or simultaneously with the execution of this Agreement delivered to the Lender by or on behalf of the Borrower, including any officer or other representative thereof, contains any material misrepresentation or untrue statement of material fact, or omits to state any material fact necessary to make any of such agreements, reports, schedules, certificates or instruments not misleading.


5.     Affirmative Covenants. The Borrower covenants that, so long as any portion of the Loan remains unpaid and unless the Lender otherwise consents in writing, it will:

(a)    Taxes and Liens. Promptly pay, or cause to be paid, all taxes, assessments and other governmental charges that may lawfully be levied or assessed upon the income or profits of the Borrower, or upon any property, real, personal or mixed, belonging to it, or upon any part thereof, and also any lawful claims for labor, material and supplies that, if unpaid, might become a lien or charge against any such property; provided however, the Borrower shall not be required to pay any such tax, assessment, charge, levy or claim so long as the validity thereof shall be actively contested in good faith by proper proceedings; but provided further that any such tax, assessment, charge, levy or claim shall be paid forthwith upon the commencement of proceedings to foreclose any lien securing the same.

(b)     Business and Existence. Do or cause to be done all things necessary to preserve and to keep in full force and effect its corporate existence and rights and franchises, trade names, patents, trademarks, trade secrets and permits that are reasonably necessary for the continuance of its business; and to continue to engage principally in the business currently operated by it.

(c)     Status. Maintain its existence as a limited liability company in good standing under the laws of the State of Louisiana and qualified to transact business as a foreign corporation, in good standing, in every jurisdiction in which it transacts business.

(d)     Insurance. Keep its business and properties insured at all times by responsible insurance companies against the risks and to the extent that provision for such insurance is usually made by other persons engaged in similar businesses similarly situated and to the extent satisfactory to the Lender, and carry such other types and amounts of insurance, including business interruption insurance, as are usually carried by persons engaged in the same or a similar business similarly situated and as are satisfactory to the Lender.

(e)     Maintain Property. Maintain its properties and facilities in good order and repair and, from time to time, make all needed and proper repairs, renewals, replacements, additions and improvements thereto, so that the business carried on by it may be properly and advantageously conducted at all times in accordance with prudent business management.

(f)     True Books. Keep true books of record and account in which full, true and correct entries are made of all of its dealings and transactions; set up on its books such reserves as may be required by generally accepted accounting principles with respect to all taxes, assessments, charges, levies and claims, and with respect to its business in general, and include such reserves in interim as well as year-end financial statements; and to otherwise maintain its books of accounts in accordance with GAAP, consistently applied.


(g)     Right of Inspection. Permit any person designated by the Lender, at the Lender's expense, to inspect any of its properties, books and financial reports, and to discuss its affairs, finances and accounts with its officers, employees and independent certified public accountants, all at such reasonable times and as often as the Lender may request.

(h)     Knowledge of Default. Upon any officer of the Borrower obtaining knowledge of an Event of Default (or an event which would constitute such an Event of Default but for the requirement that notice be given or time elapse or both) hereunder or under any other obligation of the Borrower, cause to be delivered to the Lender an Officers' Certificate specifying the nature thereof, the period of existence thereof and what action the Borrower proposes to take with respect thereto.

(i)     Suits or Other Proceedings. Upon any officer of the Borrower obtaining knowledge of any material litigation, dispute or proceedings being instituted or threatened against the Borrower, or any attachment, levy, execution or other process being instituted against any assets of the Borrower, in any case embodying or relating to a claim in excess of $10,000, cause to be delivered promptly to the Lender an Officers’ Certificate describing such litigation, dispute, proceeding, levy, execution or other process.

(j)     Further Assurances. At its cost and expense, upon request of the Lender, duly execute and deliver or cause to be duly executed and delivered to the Lender such further instruments and do and cause to be done such further acts that may be reasonably necessary or proper in the opinion of the Lender to carry out more effectively the provisions and purposes of this Agreement and the other Loan Documents.

(k)     Observe All Laws. Conform to and duly observe in all material respects all laws, regulations and other valid requirements of any regulatory authority with respect to its properties and the conduct of its business.

(l)     Ordinary Course of Business. Operate its business only in the ordinary course of business and, without the prior written consent of the Lender, not sell or lease Collateral that is not inventory, or pledge, transfer, assign, deliver, donate, gift or otherwise dispose of any Collateral or any interest therein.

6.     Negative Covenants. The Borrower agrees that, so long as any portion of the Loan remains unpaid, unless the Lender otherwise consents in writing, it will not:


(a)     Liens. Incur, create, assume or permit to exist at any time any mortgage, pledge, security interest, lien, charge or other encumbrance of any kind on any of its assets of any kind, real or personal, tangible or intangible, whether now owned or hereafter acquired, including any lease or purchase money security interest or any other "off balance sheet" indebtedness, and including the Collateral, except:

(i)     liens or security interests securing indebtedness owed to the Lender;

(ii)     liens for taxes not due or that are being contested in good faith by proper proceedings and against which, if requested by the Lender, the Borrower will establish reserves satisfactory to the Lender; and

(b)     Merger; Sale of Assets. Enter into any transaction of merger or consolidation; transfer, sell, assign, lease or otherwise dispose of any of its property or assets, except for the sale of inventory in the ordinary course of business; change its name; acquire the assets of another person; sell and leaseback any of its assets; otherwise change its structure or identity; or materially change the nature of its business as now conducted or enter into any new business.

(c)     Indebtedness. Incur, create, assume or permit to exist any indebtedness (including obligations under capital leases), except indebtedness incurred pursuant to this Agreement.

(d)     Guaranties. Guarantee, assume, endorse or otherwise in any manner become or remain liable in connection with, or otherwise become or remain responsible for, the obligations (including accounts payable) of any other person, other than the endorsement of negotiable instruments in the ordinary course of business for deposit or collection.

(e)     Action Affecting Collateral. Enter into any transaction that materially and adversely affects the Collateral or the Borrower's ability to repay the Note.

(f)     Accounting Practices. Change its accounting methods or practices, its depreciation or amortization policy or rates from those in existence as of the date hereof, except as required to comply with law or with GAAP.

(g)     Loans or Advances. Make loans or advances to any person, except loans or advances to employees not exceeding $10,000 in the aggregate and deposits required by government agencies or public utilities; provided that after giving pro forma effort to such advances, the Borrower will be in full compliance with all of the provisions of this Agreement.


(h)     Distributions. Declare or pay any distribution on account of any class of its securities, or redeem, purchase, retire or otherwise acquire, directly or indirectly, any of its securities; provided, however, that if the Borrower shall have accumulated cash at the rate of $100,000 per month to repay the Term Note in full at maturity, and shall have deposited such cash in an account that is part of the Collateral in which the Lender has a first priority security interest.

(i)     Affiliate Transactions. Enter into any transaction with any Affiliate, except for transactions where the consideration paid or to be paid to or by the Borrower, as the case may be, is at least as favorable to the Borrower as it would be if the Borrower were dealing with a completely independent party.

7.     Conditions Precedent to Loan.

(a)     Closing. The closing of the transactions contemplated hereby (the "Closing") shall be held at the offices of the Lender, on January 31, 2013, or at such other time and/or place as the parties may agree.

(b)     Conditions Precedent to the Closing. The Lender shall have no obligation to close the transactions contemplated hereby until the Lender has received the items listed below and/or the events described below have occurred, as the case may be:

(b.i)     Loan Documents. The Loan Documents shall have been duly executed by Borrower and delivered to the Lender.

(b.ii)     Borrowing Resolutions. A copy of the resolutions of the Managers of the Borrower certified by the Borrower's duly elected or acting secretary or assistant secretary authorizing the execution of this Agreement and the other Loan Documents and authorizing specified officers of the Borrower to execute and deliver this Agreement and the other Loan Documents.

(b.iii)     Certificates of Incumbency. A certificate of incumbency showing the present officers and directors of the Borrower and specimen signatures of said officers and directors.

(b.iv)     Certificate of Good Standing. A certified copy of the Articles of Organization, as amended to date, of the Borrower and a certificate of good standing with respect to the Borrower from the Secretary of State of the State of Louisiana; and a copy of the operating agreement, as amended to date, of the Borrower certified by its duly elected or acting secretary or assistant secretary.


(b.v)     UCC Search. A current UCC search from the Secretary of State of the State of Louisiana, showing that there are no filed liens as to the personal property of the Borrower, including, but not limited to, inventory, accounts, contract rights and equipment and other Collateral.

8.     Events of Default. The occurrence of one or more of the following events (an "Event of Default") shall constitute a default of the Loan:

(a)     Payment of Loan. The failure to pay any principal or interest payment on the Note or any other amount payable hereunder or under any of the other Loan Documents, either by the terms hereof or thereof or otherwise as herein or therein provided.

(b)     Payment of Other Obligations. The failure of the Borrower (i) to pay principal of or interest on any other indebtedness beyond any period of grace provided with respect thereto, (ii) to perform the Odebrecht Agreement, or (iii) to perform any other agreement, term and condition contained in any agreement or instrument under which any indebtedness is created, if the effect of such default is to cause, or permit the holder or holders of such indebtedness (or a trustee on behalf of such holder or holders) to cause, such indebtedness to become due prior to its stated maturity.

(c)     Representation or Warranty. Any representation or warranty made by the Borrower herein or in any writing furnished in connection with or pursuant to this Agreement or any of the other Loan Documents shall be false or misleading in any material respect on the date as of which made or deemed reaffirmed.

(d)     Other Covenants. The failure of the Borrower to perform or observe any other agreement, covenant, term or condition binding on it contained herein or in any of the other Loan Documents, and such default shall not have been remedied within 30 days after written notice thereof to the Borrower from the Lender.

(e)     Other Documents. The occurrence of any event of default as specified in any of the other Loan Documents.

(f)     Liquidation; Dissolution; Voluntary Bankruptcy. The liquidation or dissolution of the Borrower, or the suspension of the business of the Borrower, or the filing by the Borrower of a voluntary petition or an answer seeking reorganization, arrangement, readjustment of its debts or for any other relief under the United States Bankruptcy Code, as amended, or under any other insolvency act or law, state or federal, now or hereafter existing, or any other action of the Borrower indicating its consent to, approval of or acquiescence in, any such petition or proceeding; the application by the Borrower for, or the appointment by consent or acquiescence of the Borrower of a receiver, a trustee or a custodian of the Borrower for all or a substantial part of its property; the making by the Borrower of any assignment for the benefit of creditors; the inability of the Borrower or the admission by the Borrower in writing of its inability to pay its debts as they mature; or the Borrower taking any corporate action to authorize any of the foregoing.


(g)      Involuntary Bankruptcy. The filing of an involuntary petition against the Borrower in bankruptcy or seeking reorganization, arrangement, readjustment of its debts or for any other relief under the United States Bankruptcy Code, as amended, or under any other insolvency act or law, state or federal, now or hereafter existing; or the involuntary appointment of a receiver, a trustee or a custodian of the Borrower for all of a substantial part of its property; or the issuance of a warrant of attachment, execution or similar process against any substantial part of the property of the Borrower, and the continuance of any of such events for 30 days undismissed or undischarged.

(h)     Adjudication of Bankruptcy. The adjudication of the Borrower as bankrupt or insolvent.

(i)     Order of Dissolution. The entering of any order in any proceedings against the Borrower decreeing the dissolution, divestiture or split-up of the Borrower, and such order remains in effect for more than 60 days.

(j)     Reports and Certificates. Any report, certificate, financial statement or other instrument delivered to the Lender by or on behalf of Borrower is at the time of delivery false or misleading in any material respect.

(k)     Judgment. A final judgment, which with other outstanding final judgments against the Borrower exceeds an aggregate of $5,000, shall be rendered against the Borrower, and if within 30 days after entry thereof such judgment shall not have been discharged or execution thereon stayed pending appeal, or if within 30 days after the expiration of any such stay such judgment shall not have been discharged.

9.     Remedies.

(a)     Acceleration and Setoff. Upon the occurrence of any Event of Default, and at any time thereafter as long as the Event of Default is continuing, the Lender may, without notice, declare the entire principal and all interest on the Loan and all obligations under the Loan Documents, and all other indebtedness of the Borrower to the Lender, whether the Borrower's liability for payment thereof is primary or secondary, direct or indirect, sole, joint, several or joint and several, or whether the indebtedness is matured or unmatured, due or to become due, fixed, absolute or contingent, to be immediately due and payable (without presentment, demand, protest or other notice of any kind, all of which are expressly waived) and the Loan and all such other indebtedness thereupon shall be and become immediately due and payable, and the Lender may proceed to collect the same by foreclosure, at law, or as otherwise provided in the Loan Documents and/or other instruments or agreements signed by the Borrower. In addition, without limiting any other right of the Lender, whenever the Lender has the right to declare any indebtedness to be immediately due and payable (whether or not it has so declared), the Lender may set off against the indebtedness without notice any amounts then owed to the Borrower by the Lender in any capacity, whether due or not due, including without limitation deposits, stocks, bonds and other securities and other assets held in any custodial accounts, and the Lender shall be deemed to have exercised its right to set off immediately at the time its right to such election accrues.


(b)     Cumulative Remedies. All rights, remedies or recourses of the Lender under this Agreement, the Notes, the Security Agreement securing the Loan, or any other Loan Documents, under the Uniform Commercial Code or other law, in equity or otherwise, are cumulative, and exercisable concurrently, and may be pursued singularly, successively or together and may be exercised as often as occasion therefore shall arise. No act of commission or omission by the Lender, including, but not limited to, any failure to exercise, or any delay, forbearance or indulgence in the exercise of, any right, remedy or recourse hereunder or any other Loan Document shall be deemed a waiver, release or modification of that or any other right, remedy or recourse, and no single or partial exercise of any right, remedy or recourse shall preclude the Lender from any other or future exercise of the right, remedy or recourse or the exercise of any other right, remedy or recourse. No waiver or release of any such rights, remedies and recourses shall be effective against the Lender unless in writing and manually signed by an authorized officer on the Lender's behalf, and then only to the extent recited therein. A waiver, release or modification with reference to any one event shall not be construed as continuing or constituting a course of dealing, nor shall it be construed as a bar to, or as a waiver, release or modification of, any subsequent right, remedy or recourse as to a subsequent event.

10.     Miscellaneous.

(a)    Waiver of Default. The Lender may, by written notice to the Borrower at any time and from time to time, waive any default in the performance or observance of any condition, covenant or other term hereof or any Event of Default that shall have occurred hereunder and its consequences. Any such waiver shall be for such period and subject to such conditions as shall be specified in any such notice. In the case of any such waiver, the Borrower shall be restored to its former position hereunder and under the Loan Documents, and any Event of Default so waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Event of Default.


(b)     Amendments and Waivers. The Lender and the Borrower may, subject to the provisions of this Section 10(b), from time to time, enter into written agreements for the purpose of adding any provision to this Agreement or the other Loan Documents or changing in any manner the rights of the Lender or the Borrower hereunder or under the other Loan Documents. No such amendment, modification or supplement shall be established by custom, conduct or course of dealing, but solely by an instrument in writing duly executed by the party to be charged therewith. The Lender shall indicate its consent to any written request by the Borrower with respect to any such proposed amendment, modification or supplement by its delivery to the Borrower of its affirmative written approval thereof within ten days of its receipt of an Officers' Certificate requesting such amendment, modification or supplement; provided, however, that any such request shall be deemed denied by the Lender if such written approval thereof shall not have been delivered by the Lender to the Borrower within such period.

(c)     Notices. All notices, requests and demands to or upon the Borrower or the Lender shall be deemed to have been given or made when hand delivered, or two (2) days after having been deposited in the mail, postage prepaid by registered or certified mail, return receipt requested, addressed as follows or to such other address as may be hereafter designated in writing hereunder by the respective parties:

If to the Borrower:

12802 Tampa Oaks Blvd, Suite 405
Tampa, FL 33637

If to the Lender:

8200 – 113th Street N, Suite 104
Seminole, FL 33772

except in cases where it is expressly herein provided that such notice, request or demand is not effective until received by the party to whom it is addressed.

(d)     No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Lender, any right, power or privilege hereunder or under any of the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein and in the other Loan Documents provided are cumulative and not exclusive of any rights or remedies provided by law.


(e)     Survival of Representations, Warranties and Covenants. All representations, warranties, covenants and other agreements made herein shall survive the execution and delivery of this Agreement and the other Loan Documents.

(f)     No Third Party Beneficiaries. This Agreement is a contract between the Lender and the Borrower for their mutual benefit and no third person shall have any right, claim or interest against either the Lender or the Borrower by virtue of any provision hereof.

(g)     Construction. This Agreement shall not be construed more strictly against the Lender than against the Borrower merely by virtue of the fact that this Agreement has been prepared by counsel for the Lender, it being acknowledged that the Borrower has been represented by counsel in the negotiation and review hereof.

(h)     Florida Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the laws of the State of Florida without regard to the principles of the conflict of laws of Florida.

(i)     Consents. In the event the consent of the Lender is required herein, such consent may be arbitrarily withheld.

(j)     Paragraph Headings. Paragraph headings are for the purpose of identification only and are not considered as a substantive part of this Agreement.

(k)     Gender; Etc. Whenever the context so requires, the neuter gender includes the feminine and/or masculine, as the case may be, and the singular number includes the plural, and the plural number include the singular.

(l)     Severability. Each paragraph, provision, sentence and part thereof of this Agreement shall be deemed separate from each other paragraph, provision, sentence or part thereof, and the invalidity or unenforceability for any reason or to any extent of any such portion of this Agreement shall not affect the enforceability of the remaining portions of this Agreement or any other Loan Document, or the application of such paragraph, provision, sentence or part thereof to other persons and circumstances.

(m)     Reimbursement of Expenses. The Borrower agrees to reimburse the Lender for all costs and out-of-pocket expenses (including reasonable attorneys’ fees) incurred in connection with the preparation, execution and delivery of this Agreement and the other Loan Documents, and also all reasonable expenses incurred by the Lender (including attorneys' fees) in the collection of any indebtedness incurred hereunder upon the occurrence and continuation of an Event of Default by Borrower.


(n)     Stamp or Other Taxes. The Borrower agrees to pay any and all stamp, documentary, excise and intangible taxes now or hereafter payable in respect of this Agreement, the Notes and the other Loan Documents, whether in connection with the execution and delivery thereof, the making of any Advance previously or hereafter made, any modification or renewal thereof, or otherwise, together with any interest and penalties incident thereto. The Borrower agrees to and shall indemnify and hold the Lender harmless from and against all loss, cost, expense and attorneys' fees that may be incurred by the Lender in connection with any such assessment, tax, levy or other charge, or any interest or penalty resulting therefrom.

(o)     Further Assurances. The Borrower agrees that, at any time and from time to time after the execution and delivery of this Agreement, it shall, upon request of the Lender, execute and deliver such further instruments and documents, including, but not limited to, UCC financing statements, and do such further acts and things as the Lender may reasonably request in order to fully effect the purposes of this Agreement and to protect the Lender's interest in the Collateral. The Borrower hereby authorizes the Lender to obtain a credit report on it.

(p)     Jurisdiction and Venue. In the event that legal action is instituted to enforce or interpret this Agreement or any other Loan Document, or to collect the Loan or any other amounts due from the Borrower, the Borrower, on behalf of itself and its successors and assigns, consents to and by execution of this Agreement submit itself to, the jurisdiction of the courts of the State of Florida, and, notwithstanding the place of business of Borrower or the place of execution of this Agreement or any other Loan Document, any litigation relating to this Agreement and to any other Loan Documents, whether arising in contract or tort, by statute or otherwise, shall be brought in (and, if brought elsewhere, may be transferred to) a state court of competent jurisdiction in Hillsborough County, Florida.

(q)     Execution in Counterparts. This Agreement and the other Loan Documents may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument.


IN WITNESS WHEREOF, the Borrower and the Lender have caused this Agreement to be duly executed by their duly authorized officers, all as of the day and year first above written.

UNATION, LLC

  By:    
    John Bartoletta, Its Manager  

Marquesas Capital Partners, LLC.

  By:     
    Dennis Thomas, Its Manager  


EX1A-11 CONSENT 12 exhibit11.htm UNATION, LLC: Exhibit 11

CONSENT OF INDEPENDENT AUDITOR

We consent to the use in the Offering Circular constituting a part of this Offering Statement on Form 1-A, as it may be amended, of our Independent Auditor’s Report dated April 30, 2016 relating to the balance sheets of UNATION, LLC as of December 31, 2015 and 2014, and the related statements of operations, changes in members’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

/s/ Kristina Helferty, CPA
Clearwater, FL

May 10, 2016

135755 8thStreet N, Clearwater, FL 33760 * (727) 310-2000 * Fax (727) 310-2001


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