Exhibit E
OPERATING AGREEMENT
VIROMENT CAPITAL, LLC
LIMITED LIABILITY COMPANY AGREEMENT
Dated as of February __, 2020
THE UNITS REPRESENTED BY THIS LIMITED
LIABILITY COMPANY AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE
SECURITIES LAWS. SUCH UNITS MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED OF AT ANY TIME WITHOUT EFFECTIVE REGISTRATION
UNDER SUCH ACT AND LAWS OR AN EXEMPTION THEREFROM, AND COMPLIANCE WITH THE OTHER SUBSTANTIAL RESTRICTIONS ON TRANSFERABILITY SET
FORTH HEREIN.
VIROMENT CAPITAL, LLC
LIMITED LIABILITY COMPANY AGREEMENT
THIS LIMITED LIABILITY
COMPANY AGREEMENT, dated as of February _____, 2020 is entered into by and among Viroment Capital, LLC, a Delaware limited
liability company (the “Company”), and each of the Members set forth on Schedule A attached hereto.
Certain capitalized terms used herein are defined in ARTICLE I.
R E C I T A L S
WHEREAS, the Company
was formed as a limited liability company under the laws of the State of Delaware on January 27, 2020; and
WHEREAS, the Members
wish to provide for the management, operation and governance of, and the relative voting and economic interests in, the Company
following the issuance of the Interests as described above;
NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
ARTICLE
I.
CERTAIN DEFINITIONS
Capitalized terms used
but not otherwise defined herein shall have the following meanings:
“Act”
means the Delaware Limited Liability Company Act, 6 Del. L. §18-101, et seq., as it may be amended from time to
time, and any successor to the Act.
“Additional
Member” means a Person admitted to the Company as a Member pursuant to Section 10.2.
“Adjusted
Capital Account Deficit” means with respect to any Capital Account as of the end of any Taxable Year, the amount
by which the balance in such Capital Account is less than zero. For this purpose, such Person’s Capital Account balance shall
be (i) reduced for any items described in Treasury Regulations Section 1.704-l(b)(2)(ii)(d)(4), (5), and (6), and (ii)
increased for any amount such Person is obligated to contribute or is treated as being obligated to contribute to the Company pursuant
to Treasury Regulations Section 1.704-l(b)(2)(ii)(c) (relating to partner liabilities to a partnership) or Treasury Regulations
Section 1.704-2(g)(l) and Treasury Regulations Section 1.704-2(i) (relating to Minimum Gain).
“Affiliate”
of any particular Person means any other Person controlling, controlled by, or under common control with such particular Person,
where “control” means the possession, directly or indirectly, of the power to direct the management and
policies of a Person whether through the ownership of voting securities, by contract, or otherwise.
“Agreement”
means this Limited Liability Company Agreement, as amended or modified from time to time in accordance with the terms hereof.
“Assignee”
means a Person to whom an Interest has been Transferred in accordance with the terms of this Agreement and the other agreements
contemplated hereby, but who has not become a Member pursuant to ARTICLE IX.
“Book Value”
means, with respect to any Company property, the Company’s adjusted basis for federal income tax purposes, adjusted from
time to time to reflect the adjustments required or permitted by Treasury Regulations Section 1.704-l(b)(2)(iv)(d) through
(h); provided, that the Book Value of any asset contributed by a Member shall be its Fair Market Value as determined at
contribution and the Book Value of any asset distributed to a Member in-kind shall be adjusted to equal its Fair Market Value as
of the date of distribution.
“Business
Day” means a day, not including a Saturday or Sunday, during which banks located in Minneapolis, Minnesota are required
to be open.
“Capital
Account” means the capital account maintained for a Member pursuant to Section 3.2.
“Capital
Contributions” means any cash, cash equivalents, promissory obligations, or the Fair Market Value of other property
that a Member contributes or is deemed to have contributed to the Company, net of any liabilities the Company is considered to
assume or take subject to, or under, Section 752 of the Code, with respect to any Unit.
“Certificate”
means the Company’s Certificate of Formation as filed with the Secretary of State of the State of Delaware.
“Code”
means the United States Internal Revenue Code of 1986, as amended.
“Company”
has the meaning set forth in the caption of this Agreement.
“Confidential
Information” has the meaning set forth in Section 6.5(a).
“Distribution”
means each distribution made by the Company to a Member, whether in cash, property or securities of the Company and whether by
liquidating distribution, redemption, repurchase, or otherwise; provided, that none of the following shall be a Distribution:
(i) any repurchase by the Company of any securities of the Company in connection with the termination of employment of any
employee of the Company, (ii) any recapitalization or exchange of securities of the Company, and any subdivision (by Unit
split or otherwise) or any combination (by reverse Unit split or otherwise) of any outstanding Units, or (iii) any repurchase
of Units pursuant to any right of first refusal or similar repurchase right in favor of the Company.
“Fair Market
Value” means, with respect to any asset or equity interest, its Fair Market Value determined according to ARTICLE
XIII.
“Family
Group” means, as to any Person, (i) such Person’s Family Members, (ii) a trust under which distribution
of Units may be made only to such Person and or any Family Member of such Person, (iii) a charitable remainder trust, the
income from which will be paid to such Person or his Family Members during his life, (iv) a partnership, limited liability
company or other entity wholly owned, directly or indirectly, by such Person or such Person’s Family Members, and (v) such
Person’s estate, executors, administrators, testamentary trustees, legatees or beneficiaries.
“Family
Members” means, as to any natural Person, such Person’s spouse, parents, siblings, descendants (including adoptive
relationships and stepchildren) and the spouses of each such Persons.
“Fiscal
Year” means the Company’s annual accounting period established pursuant to Section 7.2.
“GAAP”
means United States generally accepted accounting principles, consistently applied.
“Governmental
Entity” means the United States of America or any other nation, any state or other political subdivision thereof,
or any entity exercising executive, legislative, judicial, regulatory or administrative functions of government or any agency or
department or subdivision of any governmental authority, including the United States federal government or any state or local government.
“Indebtedness”
means at a particular time, without duplication, (i) any indebtedness for borrowed money or issued in substitution for or
exchange of indebtedness for borrowed money, (ii) any indebtedness evidenced by any note, bond, debenture or other debt security,
(iii) any indebtedness for the deferred purchase price of property or services with respect to which a Person is liable, contingently
or otherwise, as obligor or otherwise (other than trade payables and other current liabilities incurred in the ordinary course
of business which are not more than 120 days past due), (iv) any commitment by which a Person assures a creditor against loss
(including contingent reimbursement obligations with respect to letters of credit), and (v) any credit or loan agreement or
facility or other agreement, instrument or document evidencing, creating or relating to any of the foregoing.
“Interest”
means the interest of a Member (and Assignee) in Profits, Losses, and Distributions.
“IRS”
means the United States Internal Revenue Service.
“Liens”
means any mortgage, pledge, security interest, encumbrance, lien, or charge of any kind (including, but not limited to, any conditional
sale or other title retention agreement or lease in the nature thereof), any sale of receivables with recourse against the Company
or any Affiliate thereof, any authorized filing or agreement to file a financing statement as debtor under the Uniform Commercial
Code or any similar statute other than to reflect ownership by a third party of property leased to the Company or any Affiliate
under a lease which is not in the nature of a conditional sale or title retention agreement, or any subordination arrangement in
favor of another Person (other than any subordination arising in the ordinary course of business).
“Losses”
means items of Company loss and deduction determined according to Section 3.2.
“Majority
in Interest” means Members holding a majority of the outstanding Units.
“Manager”
means the manager of the Company appointed in accordance with Section 5.1, who, for purposes of the Act, will be deemed
a “manager” (as defined in the Act) but will be subject to the rights, obligations, limitations and duties set forth
in this Agreement.
“Member”
means each of the Persons listed on Schedule A attached hereto, and any Person admitted to the Company as a Substituted
Member or Additional Member; but only for so long as such Person is shown on the Company’s books and records as the owner
of one or more Units.
“Member
Minimum Gain” has the meaning set forth for “partner nonrecourse debt minimum gain” in Treasury Regulations
Section 1.704-2(i)(2).
“Minimum
Gain” means the partnership minimum gain determined pursuant to Treasury Regulations Section 1.704 2(d).
“Officers”
means each individual designated as an officer of the Company to whom authority and duties have been delegated pursuant to Section 5.7,
subject to any resolution of the Manager appointing such individual as an officer or relating to such appointment.
“Partnership
Representative” shall have the meaning set forth in Section 8.3.
“Percentage
Interests” shall mean, with respect to a Member, a fraction (expressed as a percentage), (x) the numerator of
which is the number of Units held by such Member, and (y) the denominator of which the aggregate number of Units held by all
Members.
“Permitted
Transferee” means (i) with respect to a Member who is a natural person, to a member or members of his or her
Family Group, and (ii) with respect to a Member who is an entity, to its Affiliates or, in the event of the winding up of
such Member, by a pro rata distribution to its equity holders in accordance with its constituent documents.
“Person”
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization, any other business entity, or a Governmental Entity.
“Profits”
means items of Company income and gain determined according to Section 3.2.
“Regulatory
Allocations” has the meaning set forth in Section 4.3(d).
“Requisite
Members” means a Majority in Interest of the Members.
“Sale of
the Company” means any (i) transaction or series of similar transactions (including by way of merger, consolidation,
recapitalization, reorganization, sale of securities, sale, lease, transfer or other disposition of assets, or otherwise) pursuant
to which Members of the Company immediately preceding such transaction own less than a majority of the voting power of the outstanding
Interests of the Company or shares or interests of the surviving or acquiring entity, or (ii) a sale, lease, transfer or other
disposition of all or substantially all of the assets of the Company.
“Securities”
means notes, stocks, bonds, debentures, evidences of indebtedness, certificates of interest or participation in any profit-sharing
agreement, partnership interests, beneficial interests in trusts, collateral trust certificates, pre-organization certificates
or subscriptions, transferable shares, investment contracts, voting trust certificates, certificates of deposit for securities,
certificates of equity interests, notional principal contracts and certificates of interest or participation in, temporary or interim
certificates for, receipts for or warrants or rights or options to subscribe to or purchase or sell any of the foregoing, and any
other items commonly referred to as securities.
“Securities
Act” means the Securities Act of 1933, as amended, and applicable rules and regulations thereunder, and any successor
to such statute, rules, or regulations. Any reference herein to a specific section, rule, or regulation of the Securities Act shall
be deemed to include any corresponding provisions of future law.
“Substituted
Member” means a Person that is admitted as a Member to the Company pursuant to Section 10.1.
“Tax”
or “Taxes” means any federal, state, local, or foreign income, gross receipts, franchise, estimated,
alternative minimum, add on minimum, sales, use, transfer, registration, value added, excise, natural resources, severance, stamp,
occupation, premium, windfall profit, environmental, customs, duties, real property, personal property, capital stock, social security,
unemployment, disability, payroll, license, employee, or other withholding, or other tax, of any kind whatsoever, including any
interest, penalties, or additions to tax or additional amounts in respect of the foregoing.
“Taxable
Year” means the Company’s Fiscal Year unless the Manager determines otherwise in compliance with applicable
laws.
“Transfer”
means any sale, transfer, assignment, pledge, mortgage, exchange, hypothecation, grant of a security interest or other direct or
indirect disposition or encumbrance of an interest (including by operation of law) or the rights thereof. The terms “Transferee,”
“Transferred,” and other forms of the word “Transfer” shall have correlative
meanings.
“Treasury
Regulations” means the income tax regulations promulgated under the Code.
“Unit”
means a unit of Interest of a Member or an Assignee in the Company representing a fractional part of the interests in the Profits,
Losses and Distributions of the Company held by all Members and Assignees and shall have the rights, powers, and duties set forth
in this Agreement.
ARTICLE
II.
ORGANIZATIONAL MATTERS
2.1 Formation.
The Company was organized as a Delaware limited liability company by filing the Certificate with the Secretary of State of Delaware
pursuant to the Act on January 27, 2020. The Members hereby agree to execute, file and record all such other certificates and documents,
including amendments to the Certificate, and to do such other acts as may be appropriate to comply with all requirements for the
formation, continuation and operation of a Delaware limited liability company, the ownership of property, and the conduct of business
under the laws of the State of Delaware and any other jurisdiction in which the Company may own property or conduct business.
2.2 Limited
Liability Company Agreement. This Agreement is intended to serve as the Company’s “limited liability company
agreement,” as such term is defined in the Act. The Members hereby agree that during the term of the Company set forth in
Section 2.6 the rights, powers and obligations of the Members with respect to the Company will be determined in accordance
with the terms and conditions of this Agreement and, subject to the express terms of this Agreement, the Act.
2.3 Name.
The name of the Company shall be “Viroment Capital, LLC.” The Manager, in its sole discretion, may change the name
of the Company at any time and from time to time. Notification of any such change shall be given to all Members. The Company’s
business may be conducted under its name and/or any other name or names deemed advisable by the Manager.
2.4 Purpose.
The purpose and business of the Company shall be to engage in any lawful acts or activities for which limited liability companies
may be organized under the Act and to engage in all activities necessary or incidental to the foregoing.
2.5 Principal
Office; Registered Office. The principal office of the Company shall be located at such place as the Manager may from time
to time designate, and all business and activities of the Company shall be deemed to have occurred at its principal office. The
Company may maintain offices at such other place or places as the Manager deems advisable. Notification of any such change shall
be given to all Members. The registered office of the Company required by the Act to be maintained in the State of Delaware shall
be the office of the initial registered agent named in the Certificate or such other office (which need not be a place of business
of the Company) as the Manager may designate from time to time in the manner provided by law. The registered agent of the Company
in the State of Delaware shall be the initial registered agent named in the Certificate or such other Person or Persons as the
Manager may designate from time to time in the manner provided by law.
2.6 Term.
The term of the Company commenced upon the filing of the Certificate in accordance with the Act and shall continue in existence
until termination and dissolution thereof in accordance with the provisions of ARTICLE XII.
2.7 No
State Law Partnership. The Members intend that the Company not be a partnership (including, but not limited to, a limited
partnership) or joint venture, and that no Member be a partner or joint venturer of any other Member by virtue of this Agreement
(except for tax purposes as set forth in the next succeeding sentence of this Section 2.7), and neither this Agreement
nor any other document entered into by the Company or any Member relating to the subject matter hereof shall be construed to suggest
otherwise. The Members intend that the Company shall be treated as a partnership for federal and, if applicable, state or local
income tax purposes, and that each Member and the Company shall file all tax returns and shall otherwise take all tax and financial
reporting positions in a manner consistent with such treatment; provided, however, that the Manager may in its sole
discretion change the tax treatment of the Company, including to be taxed as a corporation.
ARTICLE
III.
UNITS; CAPITAL ACCOUNTS
3.1 Members;
Capital Contributions.
(a) Issuance
of Units. Upon the execution of this Agreement by the Members, each Member has made an initial Capital Contribution and is
deemed to own the number of Units set forth opposite such Member’s name on Schedule A attached hereto. The Company
may issue fractional Units. The ownership by a Member of Units shall entitle such Member to allocations of Profits and Losses and
Distributions of cash and other property as set forth in ARTICLE IV hereof. The ownership of Units of this Agreement is
as set forth on Schedule A attached hereto.
(b) Capital
Account of Members. Each Member will have a Capital Account equal to the Capital Contribution paid by such Member in accordance
with Section 3.1(a). The Company and each Member shall file all tax returns, including any schedules thereto, in a
manner consistent with such Capital Accounts. Each Person listed on Schedule A upon his, her or its execution of this
Agreement or a counterpart thereto is hereby admitted to the Company as a Member of the Company. Each Member’s Interest in
the Company, including such Member’s interest in Profits, Losses and Distributions of the Company and the right to vote on
certain matters, if any, as provided in this Agreement, shall be represented by the Units owned by such Member.
(c) Additional
Capital Contributions. No Member shall be required to contribute any capital to the Company, and no Member shall have a personal
liability for any obligation of the Company.
3.2 Capital
Accounts.
(a) The
Company shall maintain a separate Capital Account for each Member according to the rules of Treasury Regulations Section 1.704-l(b)(2)(iv).
For this purpose, the Company may (in the discretion of the Manager), upon the occurrence of the events specified in Treasury Regulations
Section 1.704-l(b)(2)(iv)(f) increase or decrease the Capital Accounts in accordance with the rules of such regulation and
Treasury Regulations Section 1.704-l(b)(2)(iv)(g) and (h)(2) to reflect a revaluation of Company property, which adjustment
shall be made in a manner consistent with Proposed Treasury Regulation Section 1.704-1(b)(2)(iv)(s)). Without limiting the
foregoing, each Member’s Capital Account shall be adjusted:
(i) by
adding any additional Capital Contributions made by such Member in consideration for the issuance of Units;
(ii) by
deducting any amounts paid to such Member in connection with the redemption or other repurchase by the Company of Units;
(iii) by
adding any Profits allocated to such Member and subtracting any Losses allocated to such Member;
(iv) by
deducting any cash or the Fair Market Value of other assets distributed to such Member by the Company on Units;
(v) by
any other adjustments in accordance with the other capital account maintenance rules of Treasury Regulations Section 1.704-l(b)(2)(iv).
(b) For
purposes of computing the amount of any item of Company income, gain, loss, or deduction to be allocated pursuant to ARTICLE
IV and to be reflected in the Capital Accounts, the determination, recognition, and classification of any such item shall be
the same as its determination, recognition and classification for federal income tax purposes (including any method of depreciation,
cost recovery or amortization used for this purpose); provided, that:
(i) The
computation of all items of income, gain, loss and deduction shall include those items described in Code Section 705(a)(1)(B)
or Code Section 705(a)(2)(B) and Treasury Regulations Section 1.704-l(b)(2)(iv)(i), without regard to the fact that such
items are not includable in gross income or are not deductible for federal income tax purposes.
(ii) If
the Book Value of any Company property is adjusted pursuant to Treasury Regulations Section 1.704-l(b)(2)(iv)(e) or (f), the
amount of such adjustment shall be taken into account as gain or loss from the disposition of such property.
(iii) Items
of income, gain, loss or deduction attributable to the disposition of Company property having a Book Value that differs from its
adjusted basis for tax purposes shall be computed by reference to the Book Value of such property.
(iv) Items
of depreciation, amortization and other cost recovery deductions with respect to Company property having a Book Value that differs
from its adjusted basis for tax purposes shall be computed by reference to the property’s Book Value in accordance with Treasury
Regulations Section 1.704-l(b)(2)(iv)(g).
(v) To
the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Sections 732(d), 734(b) or 743(b)
is required, pursuant to Treasury Regulations Section 1.704-l(b)(2)(iv)(m), to be taken into account in determining Capital
Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases
the basis of the asset) or loss (if the adjustment decreases such basis).
(vi) Where
Section 704(c) of the Code applies to Company property or where Company property is permitted to be revalued pursuant to paragraph (b)(2)(iv)(f)
of Section 1.704-1 of the Treasury Regulations, each Member’s Capital Account shall be adjusted in accordance with paragraph
(b)(2)(iv)(f) and (b)(2)(iv)(g) of Section 1.704-1 of the Treasury Regulations.
3.3 Negative
Capital Accounts. No Member shall be required to pay to any other Member, the Company or any other Person any deficit or
negative balance which may exist from time to time in such Member’s Capital Account (including upon and after dissolution
of the Company).
3.4 No
Withdrawal. No Person shall be entitled to withdraw any part of such Person’s Capital Contributions or Capital Account
or to receive any Distribution from the Company, except as expressly provided herein or in the other agreements referred to herein.
3.5 Loans
From Members. Loans by Members to the Company shall not be considered Capital Contributions. If any Member shall loan funds
to the Company, the making of such loans shall not result in any increase in the amount of the Capital Account of such Member.
The amount of any such loans shall be a debt of the Company to such Member and shall be payable or collectible in accordance with
the terms and conditions upon which such loans are made.
ARTICLE
IV.
DISTRIBUTIONS AND ALLOCATIONS
4.1 Distributions.
(a) Distribution
Policy. Subject to the terms of this Section 4.1, the Company shall make Distributions at any time or from time
to time as approved by the Manager.
(b) Distributions.
Any Distributions shall be distributed to the holders of the Units ratably based on their Percentage Interests.
(c) Limitation
on Distributions. Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make any
distribution to Members if such distribution would violate the Act or other applicable law.
(d) Tax
Distributions. Notwithstanding anything contained herein to the contrary but subject to the Act, the Company will endeavor
to distribute to the Members cash Distributions from the Company (after taking into account any other Distributions pursuant to
this Section 4.1 received by them in respect of such fiscal year) in amounts sufficient to enable the Members to discharge
any federal, state and local tax liability (excluding penalties) arising as a result of the allocations of taxable income to such
Members, determined by assuming the applicability of the highest combined effective marginal federal, state and local income tax
rates applicable to an individual resident in Atlanta, Georgia (or, if higher, applicable to corporations doing business in Atlanta,
Georgia). The amount of such tax liability shall be calculated taking into account (i) the amount of net cumulative tax loss
previously allocated to the Members in prior fiscal years not previously considered and having served to reduce taxable income
for the purpose of making distributions under this Section 4.1(d), (ii) the character of any income or gain and
the income tax rates applicable thereto, (iii) any limitations on the ability to fully deduct items of loss and deduction
for federal, state or local income tax purposes (including, without limitation, and such limitations imposed under Sections 67
or 68 of the Code) and (iv) any liability for Medicare contributions tax imposed under Section 1411 of the Code. The
calculation shall be made on the assumption that taxable income or tax loss from the Company with respect to any allocation of
taxable income or tax loss is the Member’s only taxable income or tax loss. Any Distributions to be made pursuant to this
Section 4.1(d) shall be allocated among the Members in proportion to their respective assumed tax liability rather
than in accordance with Section 4.1(b), and shall be considered an advance against the next future Distributions in
accordance with Section 4.1(a) and Section 4.1(b), as applicable, to each such Member and shall offset
such next future Distributions.
(e) Persons
Receiving Distributions. Each Distribution shall be made to the Persons shown on the Company’s books and records as Members
as of the date of such Distribution; provided, however, that any transferor and transferee of Units may mutually
agree as to which of them should receive payment of any Distribution under Section 4.1.
4.2 Allocations.
Except as otherwise provided in Section 4.3, Profits and Losses for any Fiscal Year shall be allocated among the Members
in such a manner that, as of the end of such Fiscal Year, the Capital Account of each Member, after taking into account such allocation
as well as allocations pursuant to Sections 4.3(a) and 4.3(b), shall be equal to (a) an amount to which
such Member would be entitled if the Company were to liquidate the assets of the Company for an amount equal to their Book Value
and distribute the proceeds of liquidation pursuant to Section 12.2, minus (b) the sum of such Member’s share of
(i) Minimum Gain (as determined in accordance with Treasury Regulations Sections 1.704-2(d) and (g)(3) and (ii) Member
Minimum Gain (as determined in accordance with Treasury Regulations Section 1.704-2(i)). Except as provided in Section 4.3,
for each Fiscal Year, allocations of each item of gain and income among Profits will be made proportionately among the Members
pursuant to their total allocations of Profits, and allocations of each item of loss and deduction will be made proportionately
among the Members pursuant to their total allocations of Losses.
4.3 Special
Allocations.
(a) Losses
attributable to partner nonrecourse debt (as defined in Treasury Regulations Section 1.704-2(b)(4)) shall be allocated in
the manner required by Treasury Regulations Section 1.704-2(i). If there is a net decrease during a Fiscal Year in partner
nonrecourse debt minimum gain (as defined in Treasury Regulations Section 1.704-2(i)(3)), Profits for such Fiscal year (and,
if necessary, for subsequent Fiscal Years) shall be allocated to the Members in the amounts and of such character as determined
according to, and subject to the exceptions contained in, Treasury Regulations Section 1.704-2(i)(4).
(b) If
there is a net decrease in Minimum Gain during any Fiscal Year, each Member shall be allocated Profits for such Fiscal Year (and,
if necessary, for subsequent Fiscal Years) in the amounts and of such character as determined according to, and subject to the
exceptions contained in, Treasury Regulations Section 1.704-2(f). This Section 4.3(b) is intended to be a minimum
gain chargeback provision that complies with the requirements of Treasury Regulations Section 1.704-2(f), and shall be interpreted
in a manner consistent therewith.
(c) If
any Member that unexpectedly receives an adjustment, allocation, or distribution described in Treasury Regulations Section 1.704-l(b)(2)(ii)(d)(4),
(5) and (6) has an Adjusted Capital Account Deficit as of the end of any Taxable Year, computed after the application of Section 4.3(c)
but before the application of any other provision of this ARTICLE IV, then Profits for such Taxable Year shall be allocated
to such Member in proportion to, and to the extent of, such Adjusted Capital Account Deficit. This Section 4.3(c) is
intended to be a qualified income offset provision as described in Treasury Regulations Section 1.704-l(b)(2)(ii)(d) and shall
be interpreted in a manner consistent therewith.
(d) The
allocations set forth in Sections 4.313.4.3(a) - (c) (the “Regulatory Allocations’”) are intended
to comply with certain requirements of Sections 1.704-1(b) and 1.704-2 of the Treasury Regulations. The Regulatory Allocations
may not be consistent with the manner in which the Members intend to allocate Profit and Loss of the Company or make Company distributions.
Accordingly, notwithstanding the other provisions of this ARTICLE IV, but subject to the Regulatory Allocations, income,
gain, deduction, and loss shall be reallocated among the Members so as to eliminate the effect of the Regulatory Allocations and
thereby cause the respective Capital Accounts of the Members to be in the amounts (or as close thereto as possible) they would
have been if Profit and Loss (and such other items of income, gain, deduction, and loss) had been allocated without reference to
the Regulatory Allocations. In general, the Members anticipate that this will be accomplished by specially allocating other Profit
and Loss (and such other items of income, gain, deduction, and loss) among the Members so that the net amount of the Regulatory
Allocations and such special allocations to each such Member is zero.
(e) In
the event it is finally determined that any Member realized taxable income from compensation for services in connection with the
issuance of Units to such Member in accordance with the terms of this Agreement where the Units were intended to constitute profits
interests for income tax purposes, the Company shall specifically allocate to such Member the corresponding Company compensation
deduction, if consistent with the Code and Treasury Regulations.
4.4 Tax
Allocations.
(a) The
income, gains, losses, deductions and credits of the Company will be allocated, for federal, state and local income tax purposes,
among the Members in accordance with the allocation of such income, gains, losses, deductions and credits among the Members for
computing their Capital Accounts; except that, if any such allocation is not permitted by the Code or other applicable law, then
the Company’s subsequent income, gains, losses, deductions and credits will be allocated among the Members so as to reflect
as nearly as possible the allocation set forth herein in computing their Capital Accounts.
(b) Items
of Company taxable income, gain, loss and deduction with respect to any property contributed to the capital of the Company shall
be allocated among the Members in accordance with Code Section 704(c) so as to take account of any variation between the adjusted
basis of such property to the Company for federal income tax purposes and its Book Value pursuant to an acceptable method under
the Treasury Regulations.
(c) If
the Book Value of any Company asset is adjusted pursuant to the requirements of Treasury Regulations Section 1.704-l(b)(2)(iv)(e)
or (f) subsequent allocations of items of taxable income, gain, loss and deduction with respect to such asset shall take account
of any variation between the adjusted basis of such asset for federal income tax purposes and its Book Value in the same manner
as under Code Section 704(c).
(d) Allocations
of tax credits, tax credit recapture and any items related thereto shall be allocated to the Members according to their interests
in such items as determined by the Manager taking into account the principles of Treasury Regulations Section 1.704-1(b)(4)(ii).
(e) Allocations
pursuant to this Section 4.4 are solely for purposes of federal, state and local taxes and shall not affect, or in
any way be taken into account in computing, any Member’s Capital Account or Unit of Profits, Losses, Distributions or other
Company items pursuant to any provision of this Agreement.
4.5 Indemnification
and Reimbursement for Payments on Behalf of a Member. If the Company is required by law to make any payment that is specifically
attributable to a Member or a Member’s status as such (including federal withholding taxes, state personal property taxes,
and state unincorporated business taxes), including without limitation in connection with any sale of a Member’s interest
in the Company in whole or part, then such Member shall indemnify the Company in full for the entire amount paid (including interest,
penalties and related expenses). The Company shall have the right to withhold or deduct any Taxes it is required by law to withhold
or deduct from any Distributions or items of Profits or taxable income payable or allocable to a Member, and at its option, the
Company may treat any amounts withheld or deducted by the Company or paid by the Company on behalf of a Member pursuant to this
Section 4.5 as Distributions to such Member pursuant to Section 4.1(b). The Company may pursue and enforce
all rights and remedies it may have against each Member under this Section 4.5, including instituting a lawsuit to
collect such indemnification and contribution with interest calculated at a rate equal to 10% per annum, compounded as of the last
day of each year (but not in excess of the highest rate per annum permitted by law). No obligations of a Member under this Section 4.5
and no actions taken by the Company pursuant to this Section 4.5 shall have any effect on any Member’s ownership
percentage of the Company.
ARTICLE
V.
MANAGEMENT
5.1 Management
by the Manager. The business and affairs of the Company shall be managed by the Manager. Subject to the provisions of Section 5.2,
the Manager shall have full and complete discretion to manage and control the business and affairs of the Company, to make all
decisions affecting the business and affairs of the Company and to take all such actions as it deems necessary or appropriate to
accomplish the purposes of the Company set forth in Section 2.4. The actions of the Manager taken in accordance with
the provisions of this Agreement shall bind the Company. No other Member of the Company shall have any authority or right to act
on behalf of or bind the Company, unless otherwise provided herein or unless specifically authorized by the Manager pursuant to
a resolution expressly authorizing such action which resolution is duly adopted by the Manager. The initial Manager of the Company
shall be Paul Koenig. The Manager shall have express authority to make any election under Code Sections 161(k) or 181.
5.2 Actions
Requiring Approval of Members. Notwithstanding the foregoing, the Manager shall not cause or permit the Company to, without
approval of the Requisite Members:
(a) amend,
modify or waive the Certificate of Formation or this Agreement; provided that the Manager may, without the consent
of the other Members, amend Schedule A following any new issuance, redemption, repurchase or transfer of Units in accordance
with this Agreement;
(b) make
any material change to the nature of the business conducted by the Company;
(c) issue
additional Units or admit additional Members to the Company;
(d) incur
any Indebtedness in excess of $100,000.00 (other than Indebtedness incurred in connection with the issuance of promissory notes
through the Company’s Regulation Crowdfunding offering), pledge or grant liens on any assets or guarantee, assume, endorse
or otherwise become responsible for the obligations of any other Person, except to the extent approved or authorized in the Budget;
enter into or effect any transaction or series of related transactions involving the purchase, lease, license, exchange or other
acquisition (including by merger, consolidation, acquisition of stock or acquisition of assets) by the Company of any assets and/or
equity interests of any Person, other than in the ordinary course of business consistent with past practice;
(e) enter
into or effect any transaction or series of related transactions involving the sale, lease, license, exchange or other disposition
(including by merger, consolidation, sale of stock or sale of assets) by the Company of any assets, other than in the ordinary
course of business consistent with past practice;
(f) establish
a subsidiary or enter into any joint venture or similar business arrangement;
(g) settle
any lawsuit, action, dispute or other proceeding or otherwise assume any liability with a value in excess of $100,000.00 or agree
to the provision of any equitable relief by the Company;
(h) initiate
or consummate an initial public offering or make a public offering and sale of the Units or any other securities;
(i) make
any investments in any other Person in excess of $250,000.00; or
(j) dissolve,
wind-up or liquidate the Company or initiate a bankruptcy proceeding involving the Company.
5.3 Removal
of Manager. The Manager may be removed or replaced at any time, with or without cause, by the Requisite Members. Following
such removal or replacement, a successor Manager shall be elected by the Requisite Members. The removal of the Manager shall not
affect its rights as a Member and shall not constitute a dissociation of such Member.
5.4 Resignation
of Manager. The Manager may resign at any time by giving at least 30 days’ prior written notice to the Company. The
Company’s acceptance of a resignation shall not be necessary to make it effective. The resignation of the Manager shall not
affect its rights as a Member and shall not constitute a dissociation of such Member.
5.5 Action
Without Meeting. Any matter that is to be voted on, consented to or approved by Members may be taken without a meeting,
without prior notice and without a vote if consented to, in writing or by electronic transmission, by a Member or Members having
not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all members
entitled to vote thereon were present and voted. A record shall be maintained by the Manager of each such action taken by written
consent of a Member or Members.
5.6 Third
Party Reliance. Any Person dealing with the Company, other than a Member, may rely on the authority of any Officer in taking
any action in the name of the Company without inquiry into the provisions of this Agreement or compliance herewith, regardless
of whether that action actually is taken in accordance with the provisions of this Agreement.
5.7 Officers.
(a) Designation
and Appointment. The Manager may (but need not), from time to time, designate and appoint one or more persons as an Officer
of the Company. No Officer need be a resident of the State of Delaware, a Manager or Member. Any Officers so designated shall have
such authority and perform such duties as the Manager may, from time to time delegate to them in writing. The Manager may assign
titles to particular Officers. Each Officer shall hold office until such Officer’s successor shall be duly designated and
shall qualify or until such Officer’s death or until such Officer shall resign or shall have been removed in the manner hereinafter
provided. Any number of offices may be held by the same individual. The salaries or other compensation, if any, of the Officers
and agents of the Company shall be fixed from time to time by the Manager.
(b) Resignation.
Any Officer (subject to any contract rights available to the Company, if applicable) may resign as such at any time. Such resignation
shall be made in writing and shall take effect at the time specified therein, or if no time be specified, at the time of its receipt
by the Manager. The acceptance of a resignation shall not be necessary to make it effective, unless expressly so provided in the
resignation. Any Officer may be removed as such, either with or without cause, by the Manager whenever in his judgment the best
interests of the Company shall be served thereby; provided, however, that such removal shall be without prejudice
to the contract rights, if any, of the individual so removed. Designation of an Officer shall not of itself create contract rights.
Any vacancy occurring in any office of the Company may be filled by the Manager.
(c) Duties
of Officers; Generally. The Officers, in the performance of their duties as such, shall owe to the Company and the Members
duties of loyalty and due care of the type and to the extent owed by the officers of a corporation to such corporation and its
stockholders under the laws of the State of Delaware.
5.8 Limitation
of Liability.
(a) Waiver
of Liability. Except as otherwise provided herein or in any agreement entered into by such Person and the Company and to the
maximum extent permitted by the Act, no present or former Manager or Officer nor any Affiliate, employee, agent or representative
of any such Person (each, a “Released Person”) shall be liable to the Company or to any Member for any
act or omission performed or omitted by a Released Person in such capacity; provided, that except as otherwise provided
herein, such limitation of liability shall not apply to the extent the act or omission was attributable to such Released Person’s
willful misconduct or bad faith or constitutes a violation of the implied contractual covenant of good faith and fair dealing,
in each case as determined by a final judgment, order or decree of an arbitrator or a court of competent jurisdiction (which is
not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been perfected). Each Released
Person shall be entitled to rely upon the advice of legal counsel, independent public accountants and other experts, including
financial advisors, and any act of or failure to act by such Released Person in good faith reliance on such advice shall in no
event subject such Released Person to liability to the Company or any Member.
(b) Manager
Discretion. Whenever in this Agreement or any other agreement contemplated herein or to which the Company is a party the Manager
is permitted or required to take any action or to make a decision or determination, the Manager shall take such action or make
such decision or determination in its sole discretion, unless another standard is expressly set forth herein or therein. Whenever
in this Agreement or any other agreement contemplated herein the Manager is permitted or required to take any action or to make
a decision or determination in its “sole discretion” or “discretion,” with “complete discretion”
or under a grant of similar authority or latitude, the Manager shall be entitled to consider such interests and factors as the
Manager desires (including, without limitation, the interests of the Manager or its Affiliates).
(c) Good
Faith and Other Standards. Whenever in this Agreement or any other agreement contemplated herein or to which the Company is
a party the Manager is permitted or required to take any action or to make a decision or determination in its “good faith”,
the Manager shall act under such express standard and, to the extent permitted by applicable law, shall not be subject to any other
or different standards except as imposed by this Agreement or any other agreement to which the Company is a party.
(d) Limitation
of Duties; Conflict of Interest. To the maximum extent permitted by applicable law, the Company and each Member hereby waives
any claim or cause of action against the Manager and each Member and their respective Affiliates, employees, agents and representatives
for any breach of any fiduciary duty to the Company or its Members by any such Person, including, without limitation, as may result
from a conflict of interest between the Company or its Members and such Person or otherwise; provided, that except as otherwise
provided herein, such limitation of liability shall not apply to the extent the act or omission was attributable to such Person’s
willful misconduct or bad faith or constitutes a violation of the implied contractual covenant of good faith and fair dealing,
in each case as determined by a final judgment, order or decree of an arbitrator or a court of competent jurisdiction (which is
not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been perfected). Each Member
acknowledges and agrees that in the event of any such conflict of interest, each such Person may, in the absence of bad faith,
act in the best interests of such Person or its Affiliates, employees, agents and representatives (subject to the limitations set
forth above). None of the Manager or the Members (other than any Member in its capacity as an Officer or as an employee of the
Company) shall be obligated to recommend or take any action in its capacity as the Manager or Member that prefers the interests
of the Company or its Members over the interests of such Person or its Affiliates, employees, agents or representatives, and each
of the Company and each Member hereby waives the fiduciary duty, if any, of such Person to the Company and/or its Members, including,
without limitation, in the event of any such conflict of interest or otherwise; provided, that with respect to actions or omissions
by the Manager, such waiver shall not apply to the extent the act or omission was attributable to the Manager’s willful misconduct
or bad faith or a violation of the implied contractual covenant of good faith and fair dealing, in each case as determined by a
final judgment, order or decree of an arbitrator or a court of competent jurisdiction (which is not appealable or with respect
to which the time for appeal therefrom has expired and no appeal has been perfected).
(e) Effect
on Employment Agreements. This Section 5.8 shall not in any way affect, limit or modify any Person’s liabilities,
obligations, duties or responsibilities under any employment agreement, consulting agreement, management agreement, confidentiality
agreement, non-competition agreement, non-solicitation agreement or any similar agreement with the Company.
5.9 Indemnification.
(a) Generally.
Subject to Section 4.5, the Company hereby agrees to indemnify and hold harmless any Person (each an “Indemnified
Person”) to the fullest extent permitted under the Act, as the same now exists or may hereafter be amended, substituted
or replaced (but, in the case of any such amendment, substitution or replacement only to the extent that such amendment, substitution
or replacement permits the Company to provide broader indemnification rights than the Company is providing immediately prior to
such amendment, substitution or replacement), against all expenses, liabilities and losses (including attorney fees, judgments,
fines, excise taxes or penalties) reasonably incurred or suffered by such Person (or one or more of such Person’s Affiliates)
by reason of the fact that such Person is or was a Member or is or was serving as the Manager or as an Officer, principal, employee,
agent or representative of the Company; provided, that no Indemnified Person shall be indemnified for any expenses, liabilities
and losses suffered that are attributable to actions or omissions by an Indemnified Person or its Affiliates to the extent the
act or omission was attributable to such Indemnified Person’s or its Affiliates’ (excluding, for purposes hereof, the
Company’s) willful misconduct or bad faith or constitutes a violation of the implied contractual covenant of good faith and
fair dealing, in each case as determined by a final judgment, order or decree of an arbitrator or a court of competent jurisdiction
(which is not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been perfected) or
for any present or future breaches of any representations, warranties or covenants by such Indemnified Person or its Affiliates’
(excluding, for purposes hereof, the Company’s), employees, agents or representatives contained herein or in any other agreement
with the Company; provided, further, that no Person shall be entitled to indemnification hereunder with respect to
a suit or proceeding initiated by such Person or with respect to a proceeding between such Person on the one hand and the Company
on the other.
(b) Advance
Payment of Expenses. Expenses, including reasonable attorneys’ fees and expenses, incurred by any present or former Manager
in defending a suit or proceeding (but not a proceeding initiated by such Indemnified Person, other than a suit or proceeding to
enforce such Indemnified Person’s rights under this Section 5.9) for which indemnification is available under
this Section 5.9 shall be paid by the Company in advance of the final disposition of such proceeding, including any
appeal therefrom, upon receipt by the Manager of an undertaking by or on behalf of such Manager to repay such amount if it shall
ultimately be determined that such Indemnified Person is not entitled to be indemnified by the Company. Expenses, including reasonable
attorneys’ fees and expenses, incurred by any Indemnified Person other than a Manager in defending a suit or proceeding (but
not a proceeding initiated by such Indemnified Person, other than a suit or proceeding to enforce such Indemnified Person’s
rights under this Section 5.9) for which indemnification is available under this Section 5.9 may be paid
by the Company in advance of the final disposition of such proceeding, including any appeal therefrom, upon approval of the Manager
and receipt of an undertaking by or on behalf of such Indemnified Person to repay such amount if it shall ultimately be determined
that such Indemnified Person is not entitled to be indemnified by the Company.
(c) Nonexclusivity
of Rights. The right to indemnification and the advancement of expenses conferred in this Section 5.9 shall not
be exclusive of any other right which any Person may have or hereafter acquire under any statute, agreement, law or otherwise.
(d) Insurance.
The Company may maintain, at its expense, directors’ and officers’ insurance in amounts determined by the Manager to
protect any Indemnified Person against any expense, liability or loss described in Section 13.5.9(a)(a) above whether
or not the Company would have the power to indemnify such Indemnified Person against such expense, liability or loss under the
provisions of this Section 5.9.
(e) Limitation.
Notwithstanding anything contained herein to the contrary (including in this Section 5.9), any indemnity by the Company
relating to the matters covered in this Section 5.9 shall be provided out of and to the extent of Company assets only,
and no Member (unless such Member otherwise agrees in writing or is found in a final decision by a court of competent jurisdiction
to have personal liability on account thereof) shall have personal liability on account thereof or shall be required to make additional
Capital Contributions to help satisfy such indemnity of the Company (except as expressly provided herein).
(f) Savings
Clause. If this Section 5.9 or any portion hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify and hold harmless each Indemnified Person pursuant to this Section 5.9
to the fullest extent permitted by applicable law and to the fullest extent permitted by any applicable portion of this Section 5.9
that shall not have been invalidated.
ARTICLE
VI.
CERTAIN RIGHTS, COVENANTS AND OBLIGATIONS
6.1 Certain
Affirmative Covenants. The Company covenants with the Members to:
(a) pay
and discharge when payable all taxes, assessments and governmental charges imposed upon its properties or upon the income or profits
therefrom (in each case before the same becomes delinquent and before penalties accrue thereon) and all claims for labor, materials
or supplies, unless and to the extent that the same are being contested in good faith and by appropriate proceedings and adequate
reserves (as determined in accordance with GAAP) have been established on its books and financial statements with respect thereto;
(b) comply,
in all material respects, with all applicable laws, rules and regulations of all Governmental Entities; and
(c) maintain
true books and records of account in which full and correct entries will be made of all its business transactions pursuant to a
system of accounting established and administered in accordance with generally accepted accounting principles consistently applied
(except as noted therein) and will set aside on its books all such proper accruals and reserves as shall be required under generally
accepted accounting principles consistently applied.
6.2 Limitation
of Liability. 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 no Member (including
the Manager) shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being
a Member or acting as a Member or Manager of the Company, other than such Member’s obligation to make Capital Contributions
to the Company pursuant to the terms and conditions hereof. Except as otherwise provided in this Agreement, a Member’s liability
(in its capacity as such) for debts, liabilities and losses of the Company shall be such Member’s share of the Company’s
assets; provided, that a Member shall be required to return to the Company any Distribution made to it in clear and manifest accounting
or similar error. The immediately preceding sentence shall constitute a compromise to which all Members have consented within the
meaning of the Act. Notwithstanding anything contained herein to the contrary, the failure of the Company to observe any formalities
or requirements relating to the exercise of its powers or management of its business and affairs under this Agreement or the Act
shall not be grounds for imposing personal liability on a Member for liabilities of the Company, except to the extent constituting
fraud, gross negligence or willful misconduct by such Members.
6.3 Lack
of Authority. No Member in his, her or its capacity as such (other than the Manager or an authorized Officer of the Company)
has the authority or power to act for or on behalf of the Company in any manner, to do any act that would be (or could be construed
as) binding on the Company, in any manner or way, or to make any expenditures on behalf of the Company, unless such specific authority
and power has been expressly granted to and not revoked from such Member by the Manager, and the Members hereby consent to the
exercise by the Manager of the powers conferred on such Person by law and this Agreement.
6.4 No
Right of Partition. No Member shall have the right to seek or obtain partition by court decree or operation of law of any
Company property, or the right to own or use particular or individual assets of the Company.
6.5 Confidentiality.
(a) Each
Member recognizes and acknowledges that it has and may in the future receive certain confidential and proprietary information and
trade secrets of the Company (the “Confidential Information”). Except as otherwise expressly consented
to by the Manager in writing, each Member (on behalf of itself and, to the extent that such Member would be responsible for the
acts of the following Persons under principles of agency law, its managers, directors, officers, shareholders, partners, employees,
agents and members) agrees that it will not, during or after the term of this Agreement, whether directly or indirectly through
an Affiliate or otherwise, take commercial or proprietary advantage of or profit from any Confidential Information or disclose
Confidential Information to any Person for any reason or purpose whatsoever, except (i) to the Manager, Officers, Members,
representatives, agents and employees of the Company and as otherwise may be proper in the course of performing such Member’s
obligations, or enforcing such Member’s rights, under this Agreement and the agreements expressly contemplated hereby; (ii) to
any bona fide prospective purchaser of the equity or assets of such Member or its Affiliates or the Units held by such Member,
or prospective merger partner of such Member or its Affiliates; provided, that such purchaser or merger partner agrees to
be bound by the provisions of this Section 6.5 or other confidentiality agreement approved by the Manager; or (iii) as
is required to be disclosed by order of a court of competent jurisdiction, administrative body or Governmental Entity, or by subpoena,
summons or legal process, or by law, rule or regulation; provided, that the Member required to make such disclosure pursuant
to clause (iii) above shall provide to the Company prompt notice of such disclosure to enable the Company to seek an appropriate
protective order or confidential treatment. For purposes of this Section 6.5, the term “Confidential Information”
shall not include any information which (x) such Person learns from a source other than the, or any of their respective representatives,
employees, agents or other service providers, and in each case who is not known by such Person to be bound by a confidentiality
obligation, (y) is publicly available, or (z) is disclosed in a prospectus or other documents for dissemination to the
public.
(b) Nothing
in this Section 6.5 shall in any way limit or otherwise modify any confidentiality covenants entered into by the Members
pursuant to any other agreement entered into with the Company.
ARTICLE
VII.
BOOKS, RECORDS, ACCOUNTING AND REPORTS
7.1 Records
and Accounting. The Company shall keep, or cause to be kept, appropriate books and records with respect to the Company’s
business, including all books and records necessary to provide any information, lists, and copies of documents required to be provided
pursuant to Section 7.3 or pursuant to applicable laws. All matters concerning (i) the determination of the relative
amount of allocations and distributions among the Members pursuant to ARTICLE III and ARTICLE IV, and (ii) accounting
procedures and determinations, and other determinations not specifically and expressly provided for by the terms of this Agreement,
shall be determined by the Manager, whose determination shall be final and conclusive as to all of the Members absent manifest
clerical error.
7.2 Fiscal
Year. The fiscal year (the “Fiscal Year”) of the Company shall constitute the 12-month period
ending on December 31 of each calendar year, or such other annual accounting period as may be established by the Manager.
7.3 Reports.
(a) The
Company shall deliver or cause to be delivered to each Member within 120 days after the end of each Fiscal Year financial statements
of the Company, which may be audited if required by applicable law. The electronic posting of such financial statements on the
EDGAR system of the U.S. Securities & Exchange Commission, if such posting is required and actually made, shall be deemed
to satisfy the requirement of this Section 7.3(a).
(b) The
Company shall deliver or cause to be delivered to each Member with reasonable promptness, such information and financial data concerning
the Company as any Member shall from time to time reasonably request; provided, that notwithstanding the foregoing, unless
otherwise required by law, the Company shall not be required to provide such information to Persons who are, or who are employed
or engaged by, competitors of the Company (as determined by the Manager in his reasonable discretion).
(c) The
Company shall use commercially reasonable efforts to deliver or cause to be delivered, within 90 days after the end of each Fiscal
Year, to each Person who was a Member at any time during such Fiscal Year all information necessary for the preparation of such
Person’s United States federal and state income tax returns.
(d) The
Company shall provide any such other information relating to the financial condition, business, prospects or corporate affairs
of the Company that the Members may from time to time reasonably request; provided, however, that the Company shall
not be obligated under this Section 7.3(d) to provide information (i) that the Company reasonably determines in
good faith to be a trade secret, or (ii) the disclosure of which would adversely affect the attorney-client privilege between
the Company and its counsel.
(e) The
provisions of Section 6.5 shall, to the extent applicable, govern the disclosure of any information pursuant to this
Section 7.3.]
7.4 Inspection
Rights. Upon reasonable notice from any Member, the Company shall, and shall cause the Manager, Officers and employees
to, afford each Member and its representatives reasonable access during normal business hours to (i) the Company’s properties,
offices, plants and other facilities, (ii) the corporate, financial and similar records, reports and documents of the, including,
without limitation, all books and records, minutes of proceedings, internal management documents, reports of operations, reports
of adverse developments, copies of any management letters and communications with Members or the Manager, and to permit each Member
and its representatives to examine such documents and make copies thereof, and (iii) the Manager and the Company’s Officers,
senior employees and public accountants, to afford each Member and its representatives the opportunity to discuss and advise on
the affairs, finances and accounts of the Company with the Manager and such Officers, senior employees and public accountants (and
the Company hereby authorizes said accountants to discuss with such Member and its representatives such affairs, finances and accounts).
7.5 Transmission
of Communications. Each Person that owns or controls Units on behalf of, or for the benefit of, another Person or Persons
shall be responsible for conveying any report, notice or other communication received from the Manager to such other Person or
Persons.
7.6 Company
Funds. The Manager and Officers may not commingle the Company’s funds with the funds of the Manager or any Member
or Officer.
ARTICLE
VIII.
TAX MATTERS
8.1 Tax
Returns. The Company shall arrange for the preparation and filing of all tax returns required to be filed by the Company.
Each Member shall furnish to the Company all pertinent information in its possession relating to Company operations that is necessary
to enable the Company’s income tax returns to be prepared and filed.
8.2 Tax
Elections. If there is a distribution of Company property as described in Code Section 734 or if there is a transfer
of a Company interest as described in Code Section 743 then, upon the request of any transferee Member, the Company shall
file an election pursuant to Code Section 754 for the taxable year that includes the date of the distribution or transfer,
in accordance with the procedures set forth in the applicable Treasury Regulations to adjust the basis of Company properties. Upon
the request of the Company, each Member shall provide the Company with all the information not then possessed by the Company necessary
to give effect to any election under Code Section 754. The Company shall make any other tax elections which the Manager may
deem appropriate and in the best interests of the Members, except where the Manager is expressly authorized to make a tax election,
in which case the Company may make such other election as determined by the Manager.
8.3 Partnership
Representative. The officer serving in the capacity of chief financial officer, chief accounting officer or treasurer of
the Company, or such other Person so designated by the Manager, shall be the “partnership representative” of the Company
within the meaning of Section 6223(a) of the Code (the “Partnership Representative”) as included
in the Bipartisan Budget Act of 2015, as such, shall be authorized and required to represent the Company (at the Company’s
expense) in connection with all examinations of the Company’s affairs by tax authorities, including resulting administrative
and judicial proceedings, and to expend the Company’s funds for professional services and reasonably incurred in connection
therewith. Each Member agrees to cooperate with the Company and to do or refrain from doing any or all things reasonably requested
by the Company with respect to the conduct of such proceedings.
Notwithstanding the authority granted to
the Partnership Representative hereunder, all non-ministerial decisions regarding tax elections (except where the election is expressly
authorized to be made by the Manager hereby), audit, tax litigation, settlement and other tax matters shall be subject to the prior
written approval of the Manager. For example, but not by way of limitation, the Partnership Representative shall not take any position
or action with the IRS without the prior written approval of the Manager, including but not limited to, any decision (i) to
enter into any settlement or other agreement with the IRS or any tax other authority that purports to bind any Member other than
the Partnership Representative; (ii) to file a request for an administrative adjustment with the IRS or file a petition for
judicial review with respect to any such request, or (iii) to extend the statute of limitations for assessing or computing
any tax liability against the Company (or the amount or character of any Company tax items. The Partnership Representative shall
furnish to the Members a copy of all notices or other written communications received by the Partnership Representative or the
Company from the IRS or any other taxing authorities promptly after receipt of such communication. The Partnership Representative
shall notify the Members of all communications it has had with the IRS or any other taxing authorities and shall keep the Members
informed of all matters which may come to its attention in its capacity as Partnership Representative by giving the Members written
notice thereof within five days after the Partnership Representative becomes informed of any such matter or within such shorter
period as may be required by the appropriate statutory or regulatory provisions. In the event of any Company-level proceeding instituted
by the IRS pursuant to Sections 6221 through 6233 of the Code, the Partnership Representative shall consult with the Manager
regarding the nature and content of all action and defense to be taken by the Company in response to such proceeding. The Partnership
Representative also shall consult with the Manager regarding the nature and content of any proceeding pursuant to Sections 6221
through 6233 of the Code instituted by or on behalf of the Company (including the decision to institute proceedings, whether administrative
or judicial, and whether in response to a previous IRS proceeding against the Company or otherwise). Notwithstanding anything herein
to the contrary, it is agreed that to the extent available, the Partnership Representative shall cause the Company to make, and
the Company shall make, the election contemplated by Section 6221(b). In addition, the Manager shall have the right, in its
sole discretion, to make an election to change the tax treatment of the Company, including to elect to have the Company taxed as
a corporation.
ARTICLE
IX.
TRANSFERS OF INTERESTS
9.1 Transfers
by Members.
(a) Transfers
of Units shall not be effective unless all of the following conditions are satisfied:
(i) The
Transfer shall comply with all applicable laws, including any applicable securities laws.
(ii) The
Transfer shall not affect the Company’s existence or qualification as a limited liability company under the Act.
(iii) The
Transfer shall not cause the Company to be classified as other than a partnership for United States federal income tax purposes.
(iv) The
Transfer shall comply with the provisions of Section 9.1(b) and Section 13.9.1(c) hereof.
(b) In
addition, no Member shall Transfer, or offer or agree to Transfer, all or any part of any interest of such Person’s Units
without (i) the prior written consent of the Requisite Members; and (ii) compliance with this Agreement (including this Section 9.1);
provided, that Transfers by a Member to his, her or its Permitted Transferees shall not require compliance with the preceding
sentence.
(c) Each
Transferee of Units or other interest in the Company shall, as a condition precedent to such Transfer, execute a counterpart to
this Agreement pursuant to which such Transferee shall agree to be bound by the provisions of this Agreement.
9.2 Effect
of Assignment.
(a) Any
Member who shall assign any Units or other Interest in the Company shall cease to be a Member of the Company with respect to such
Units or other Interest and shall no longer have any rights or privileges of a Member with respect to such Units or other Interest.
(b) Any
Person who acquires in any manner whatsoever any Units or other Interest in the Company, irrespective of whether such Person has
accepted and adopted in writing the terms and provisions of this Agreement, shall be deemed by the acceptance of the benefits of
the acquisition thereof to have agreed to be subject to and bound by all of the terms and conditions of this Agreement that any
predecessor in such Units or other Interest in the Company of such Person was subject to or by which such predecessor was bound.
9.3 Transfer
Fees and Expenses. The Transferor and Transferee of any Units or other Interest in the Company shall be jointly and severally
obligated to reimburse the Company for all reasonable expenses (including attorneys’ fees and expenses) of any Transfer or
proposed Transfer, whether or not consummated.
9.4 Void
Transfers. Any Transfer by any Member of any Units or other Interest in the Company in contravention of this Agreement
(including, but not limited to, the failure of the Transferee to execute a counterpart in accordance with Section 13.9.1(c))
shall be void and ineffectual and shall not bind or be recognized by the Company or any other party. No purported assignee shall
have any right to any profits, losses or distributions of the Company.
9.5 First
Refusal Rights.
(a) Offer.
Prior to any Member making a Transfer of any Units (other than in connection with a Sale of the Company), such Member desiring
to make such Transfer (the “Transferring Member”) shall deliver a written notice (the “Offer
Notice”) to the other Members (each, an “Offer Notice Recipient”) and shall offer to sell
such Units (the “Offered Units”) to the Offer Notice Recipients, on terms and conditions, including price,
not less favorable to the Offer Notice Recipients than those by which the Transferring Member proposes to Transfer such Offered
Units. The Offer Notice shall disclose in reasonable detail the identity of the prospective Transferee(s), the number of Offered
Units to be Transferred and the material terms and conditions of the proposed Transfer. The Transferring Member shall not consummate
any Transfer until 30 days after the Offer Notice has been given to the Offer Notice Recipients, unless the parties to the Transfer
have been finally determined pursuant to this Section 9.5 prior to the expiration of such 30-day period. (The date
of the first to occur of (x) the expiration of such 30-day period after delivery of the Offer Notice or (y) such final determination
is referred to herein as the “Authorization Date”).
(b) Offer
Notice Recipients’ Election. Each Offer Notice Recipient may elect to purchase all or any portion of the Offered Units
by delivering a written notice of such election to the Transferring Member and the Company within 15 days after the Offer Notice
has been given to the Offer Notice Recipients. Each Offer Notice Recipient shall be entitled to purchase that fraction of the Units
equal to such Offer Notice Recipient’s ROFR Percentage. If a Offer Notice Recipient purchases less than the number of Offered
Units it is entitled to purchase under this Section 9.5(b), the Company shall give prompt notice to those Offer Notice
Recipients that purchased the number of Offered Units they were entitled to purchase and each such Offer Notice Recipient shall
have five days to notify the Transferring Member and the Company of any additional Offered Units it desires to purchase. The remaining
Offered Units shall be allocated pro rata among those Offer Notice Recipients desiring to purchase such Offered Units. If the Offer
Notice Recipients do not (alone or together) elect to purchase all of the Offered Units specified in the Offer Notice, the Transferring
Member may Transfer any Offered Units not otherwise purchased by the Offer Notice Recipients pursuant to this Section 9.5(b)
at a price and on terms no more favorable to the Transferee(s) thereof than specified in the Offer Notice during the 30-day period
immediately following the Authorization Date. As used herein, “ROFR Percentage” means a Member’s
Percentage Interest.
(c) Exceptions.
The provisions of this Section 9.5 will not apply with respect to a Sale of the Company.
(d) No
right of transfer. Nothing in this Section 9.5 shall obviate or render inapplicable the Transfer restrictions described
in Section 9.1 hereof or be read to imply any right of Transfer that does not satisfy the requirements of Section 9.1.
ARTICLE
X.
ADMISSION OF MEMBERS
10.1 Substituted
Members. In connection with the Transfer of Units of a Member permitted under the terms of this Agreement, the Transferee
shall become a Substituted Member on the later of (a) the effective date of such Transfer, and (b) the date on which
the Manager approves such Transferee as a Substituted Member, and such admission shall be shown on the books and records of the
Company; provided, however, that no Transferee shall become a Substituted Member until such Transferee furnishes
to the Company (a) a letter of acceptance, in form satisfactory to the Manager, of all the terms and conditions of this Agreement,
including the power of attorney granted in Section 14.1, and (b) such other documents or instruments as may be
deemed necessary or appropriate by the Manager to effect such Person’s admission as a Member.
10.2 Additional
Members. A Person may be admitted to the Company as an Additional Member only as contemplated under, and in compliance
with, the terms of this Agreement, including furnishing to the Company (a) a letter of acceptance, in form satisfactory to
the Manager, of all the terms and conditions of this Agreement, including the power of attorney granted in Section 14.1,
and (b) such other documents or instruments as may be necessary or appropriate to effect such Person’s admission as
a Member. Such admission shall become effective on the date on which the Manager determine in its sole discretion that such conditions
have been satisfied and, and any such admission shall thereupon be shown on the books and records of the Company.
ARTICLE
XI.
WITHDRAWAL OF MEMBERS
11.1 Withdrawal
and Resignation of Members. No Member shall have the power or right to withdraw or otherwise resign from the Company prior
to the dissolution and winding up of the Company pursuant to ARTICLE XII. Upon a Transfer of all of a Member’s Units
in a Transfer permitted by this Agreement, such Member shall cease to be a Member. Notwithstanding that payment on account of a
withdrawal may be made after the effective time of such withdrawal, any completely withdrawing Member will not be considered a
Member for any purpose after the effective time of such complete withdrawal, and, in the case of a partial withdrawal, such Member’s
Capital Account (and corresponding voting and other rights) shall be reduced for all other purposes hereunder upon the effective
time of such partial withdrawal.
ARTICLE
XII.
DISSOLUTION AND LIQUIDATION
12.1 Dissolution.
The Company shall not be dissolved by the admission of Additional Members or Substituted Members, or by the death, retirement,
expulsion, bankruptcy or dissolution of a Member. The Company shall, subject to Section 5.2, dissolve, and its affairs
shall be wound up upon the first to occur of the following:
(a) at
any time upon the approval of the Manager;
(b) a
reasonable period of time (taking into account, among other matters, the need to determine, pay or discharge, or make adequate
provision for the payment or discharge of, contingent liabilities) after the consummation of transaction or series of related transactions
that constitute a Sale of the Company.
The Members expressly acknowledge and agree
that no Member shall be permitted to seek or initiate any claim or proceeding for judicial dissolution of the Company pursuant
to the Act, and that the sole remedy for a claim by a Member that it is not reasonably practicable to carry on the business of
the Company shall be binding arbitration in accordance with Section 14.10. Except as otherwise set forth in this ARTICLE
XII, the Company is intended to have perpetual existence. The death, retirement, resignation, expulsion, bankruptcy or dissolution
of a Member or the occurrence of any other event that terminates the continued membership of a Member in the Company shall not
cause a dissolution of the Company and the Company shall continue in existence subject to the terms and conditions of this Agreement.
12.2 Liquidation
and Termination. On the dissolution of the Company, the Manager shall act as liquidator or may appoint one or more representatives,
Members or other Persons as liquidator(s). The liquidators shall proceed diligently to wind up the affairs of the Company and make
final distributions as provided herein and in the Act. The costs of liquidation shall be borne as a Company expense. Until final
distribution, the liquidators shall continue to operate Company properties with all of the power and authority of the Manager.
The steps to be accomplished by the liquidators are as follows:
(a) First,
the liquidators shall pay, satisfy or discharge from Company funds all of the debts, liabilities and obligations of the Company
(including, without limitation, all expenses incurred in liquidation) or otherwise make adequate provision for payment and discharge
thereof (including, without limitation, the establishment of a cash fund for contingent liabilities in such amount and for such
term as the liquidators may reasonably determine).
(b) Thereafter,
the liquidators shall promptly distribute the Company’s remaining assets to the holders of Units in accordance with Section 4.113.4.1(b)
..
The distribution of cash and/or property
to a Member in accordance with the provisions of this Section 12.2 constitutes a complete return to the Member of its
Capital Contributions and a complete distribution to the Member of its interest in the Company and all Company property.
12.3 Cancellation
of Certificate. On completion of the distribution of Company assets as provided herein, the Company shall be terminated
(and the Company shall not be terminated prior to such time), and the Manager (or such other Person or Persons as the Act may require
or permit) shall file a certificate of dissolution or termination with the Secretary of State of Delaware, cancel any other filings
made pursuant to this Agreement that are or should be canceled, and take such other actions as may be necessary to terminate the
Company. The Company shall be deemed to continue in existence for all purposes of this Agreement until it is terminated pursuant
to this Section 12.3.
12.4 Reasonable
Time for Winding Up. A reasonable time shall be allowed for the orderly winding up of the business and affairs of the Company
and the liquidation of its assets pursuant to Section 12.2 in order to minimize any losses otherwise attendant upon
such winding up.
12.5 Return
of Capital. The liquidators shall not be personally liable for the return of Capital Contributions or any portion thereof
to the Members (it being understood that any such return shall be made solely from Company assets).
ARTICLE
XIII.
VALUATION
13.1 Valuation
of Units. The “Fair Market Value” of each Unit shall be the fair value of each such Unit determined
in good faith by the Manager as of the date of valuation.
13.2 Valuation
of Other Assets. The “Fair Market Value” of all non-cash assets shall mean the fair value for
such assets as between a willing buyer and a willing seller in an arm’s-length transaction occurring on the date of valuation
as determined by in good faith by the Manager, taking into account all relevant factors determinative of value (and giving effect
to any transfer taxes payable or discounts in connection with such sale).
ARTICLE
XIV.
GENERAL PROVISIONS
14.1 Power
of Attorney and Irrevocable Proxy.
(a) Each
Member hereby constitutes and appoints the Manager and the liquidators, with full power of substitution, as his true and lawful
agent and attorney-in-fact, with full power and authority in his or its name, place and stead, to execute, swear to, acknowledge,
deliver, file, and record in the appropriate public offices (i) this Agreement, all certificates, and other instruments and
all amendments (in the manner set forth herein) thereof in accordance with the terms hereof which the Manager deems appropriate
or necessary to form, qualify, or continue the qualification of, the Company as a limited liability company in the State of Delaware
and in all other jurisdictions in which the Company may conduct business or own property; (ii) all instruments which the Manager
deems appropriate or necessary to reflect any amendment, change, modification, or restatement of this Agreement in accordance with
its terms; (iii) all conveyances and other instruments or documents which the Manager deems appropriate or necessary to reflect
the dissolution and liquidation of the Company pursuant to the terms of this Agreement, including a certificate of cancellation;
and (iv) all instruments relating to the admission or substitution of any Member pursuant to ARTICLE X.
(b) The
proxy and power of attorney granted by each Member pursuant to this Section 14.1 is coupled with an interest and is
given to secure the performance of such Member’s obligations under this Agreement. Each such proxy and power of attorney
shall be irrevocable for the term of this Agreement, and shall survive the death, disability, incapacity, dissolution, bankruptcy,
insolvency, liquidation or termination of any Member, as the case may be, and the Transfer of all or any portion of such Member’s
Interest and shall extend to such Member’s heirs, successors, assigns, and personal representatives.
14.2 Amendments.
This Agreement may be amended, modified or waived by a written instrument approved and executed by (i) the Manager and (ii) the
Members. In the event of any amendment or modification to this Agreement, the Company shall promptly provide each Member with a
copy of any such amendment or modification.
14.3 Title
to Company Assets. The Company’s assets shall be deemed to be owned by the Company as an entity, and no Member, individually
or collectively, shall have any ownership interest in such Company assets or any portion thereof. Legal title to any or all Company
assets may be held in the name of the Company or one or more nominees, as the Manager may determine. The Manager hereby declares
and warrants that any Company assets for which legal title is held in its name or the name of any nominee shall be held in trust
by the Manager or such nominee for the use and benefit of the Company in accordance with the provisions of this Agreement. All
Company assets shall be recorded as the property of the Company on its books and records, irrespective of the name in which legal
title to such Company assets is held.
14.4 Remedies.
Each Member and the Company shall have all rights and remedies set forth in this Agreement and all rights and remedies which such
Person has been granted at any time under any other agreement or contract and all of the rights which such Person has under any
law. Any Person having any rights under any provision of this Agreement or any other agreements contemplated hereby shall be entitled
to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any
provision of this Agreement and to exercise all other rights granted by law.
14.5 Successors
and Assigns. All covenants and agreements contained in this Agreement shall bind and inure to the benefit of the parties
hereto and their respective heirs, executors, administrators, successors, legal representatives and permitted assigns, whether
so expressed or not.
14.6 Severability.
This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances,
rules and regulations. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective
and valid under applicable laws, ordinances, rules and regulations and in such a way as to, as closely as possible, achieve the
intended economic effect of such provision and this Agreement as a whole, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law, ordinance, rule or regulation in any jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision or the effectiveness or validity of any provision
in any other jurisdiction, and such provision will be ineffective only to the extent of such invalidity, illegality or unenforceability,
without invalidating, or effecting the legality or validity or enforceability of the remainder of this Agreement.
14.7 Counterparts;
Binding Agreement. This Agreement may be executed simultaneously in two or more separate counterparts, any one of which
need not contain the signatures of more than one party, but each of which will, when so executed and delivered via facsimile or
other electronic delivery, shall be deemed an original and all of which together shall constitute one and the same agreement binding
on all the parties hereto. This Agreement and all of the provisions hereof shall be binding upon and effective as to each Person
who (a) executes this Agreement in the appropriate space provided in the signature pages hereto notwithstanding the fact that
other Persons who have not executed this Agreement may be listed on the signature pages hereto, and (b) may from time to time
become a party to this Agreement by executing a counterpart of or joinder to this Agreement.
14.8 Descriptive
Headings; Interpretation. The descriptive headings of this Agreement are inserted for convenience of reference only and
do not constitute a substantive part of this Agreement. Whenever required by the context, any pronoun used in this Agreement shall
include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include
the plural and vice versa. The use of the word “including” in this Agreement shall be by way of example rather than
by limitation and shall be read as though the words “without limitation” immediately followed each use of such word
in this Agreement. Reference to any agreement, document, or instrument means such agreement, document, or instrument as amended
or otherwise modified from time to time in accordance with the terms thereof, and, if applicable, hereof. Without limiting the
generality of the immediately preceding sentence, no amendment or other modification to any agreement, document or instrument that
requires the consent of any Person pursuant to the terms of this Agreement or any other agreement will be given effect hereunder
unless such Person has consented in writing to such amendment or modification. Wherever required by the context, references to
a Fiscal Year shall refer to a portion thereof. The use of the words “or,” “either” and “any”
shall not be exclusive. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the
parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this Agreement. Wherever a conflict exists between this Agreement and any other agreement, this Agreement
shall control but solely to the extent of such conflict.
14.9 Applicable
Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware,
without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.
14.10 Submission
to Jurisdiction. The parties hereby agree that any suit, action or proceeding seeking to enforce any provision of, or based
on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby, whether in contract,
tort or otherwise, shall be brought in the United States District Court for the District of Delaware or in the Court of Chancery
of the State of Delaware (or, if such court lacks subject matter jurisdiction, in the Superior Court of the State of Delaware),
so long as one of such courts shall have subject-matter jurisdiction over such suit, action or proceeding, and that any case of
action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of Delaware. Each
of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom)
in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may
now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit,
action or proceeding that is brought in any such court has been brought in an inconvenient form. Service of process, summons, notice
or other document by registered mail to the address set forth in Section 14.11 shall be effective service of process for
any suit, action or other proceeding brought in any such court.
14.11 Addresses
and Notices. All notices, demands or other communications to be given or delivered under or by reason of the provisions
of this Agreement shall be in writing and shall be deemed to have been given or made (a) when delivered personally to the
recipient, (b) one Business Day after delivery to a reputable express courier service (charges prepaid), (c) five Business
Days after being sent to the recipient by certified or registered mail, return receipt requested and postage prepaid, or (d) on
the Business Day emailed to the recipient if emailed before 5:00 p.m. Pacific time, and otherwise on the next Business Day. Such
notices, demands and other communications shall be sent to the address for such recipient set forth in the Company’s books
and records, or to such other address or to the attention of such other person as the recipient party has specified by prior written
notice to the sending party.
14.12 Creditors.
None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditors of the Company, and no creditor
who makes a loan to the Company may have or acquire (except pursuant to the terms of a separate agreement executed by the Company
in favor of such creditor) at any time as a result of making the loan any direct or indirect interest in Company Profits, Losses,
Distributions, capital or property other than as a secured creditor.
14.13 No
Waiver. No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of
this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach
or any other covenant, duty, agreement or condition.
14.14 Offset.
Whenever the Company is to pay any sum to any Member or any Affiliate or related person thereof, any amounts that such Member or
such Affiliate or related person owes to the Company may be deducted from that sum before payment. Whenever a Member or any Affiliate
or related person thereof is to pay any sum to the Company, any amounts that the Company owes to such Member or such Affiliate
or related person may be deducted from the sum before payment.
14.15 Entire
Agreement. This Agreement (including any schedules or exhibits hereto), those documents expressly referred to herein, and
the other documents of even date herewith embody the complete agreement and understanding among the parties and supersede and preempt
any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the
subject matter hereof in any way.
14.16 Delivery
by Facsimile or Portable Document Format. This Agreement, the agreements referred to herein, and each other agreement or
instrument entered into in connection herewith or therewith or contemplated hereby or thereby, and any amendments hereto or thereto,
to the extent signed and delivered by means of a facsimile or electronic transmission in portable document format (.pdf), shall
be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal
effect as if it were the original signed version thereof delivered in person. At the request of any party hereto or to any such
agreement or instrument, each other party hereto or thereto shall re-execute original forms thereof and deliver them to all other
parties. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or .pdf to deliver a
signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile
or .pdf as a defense to the formation or enforceability of a contract and each such party forever waives any such defense.
14.17 Survival.
Sections 4.5, 5.2, 5.2(a) , 6.2 and 6.5 and this ARTICLE XIV shall survive and continue
in full force in accordance with its terms notwithstanding any termination of this Agreement or the dissolution of the Company.
All terms and conditions of this Agreement and obligations of the Members under this Agreement which should by their nature survive
a Sale of the Company, including Section 6.5, shall so survive.
[Signature Pages Follow]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed as of the date first written above by their respective officers thereunto duly authorized.
| |
Company: |
| |
|
| |
VIROMENT CAPITAL, LLC |
| |
|
| |
By: |
|
| |
Name: |
|
| |
Title: |
|
| |
|
| |
Members: |
| |
|
| |
VIROMENT USA, LLC |
| |
|
| |
By: |
|
| |
Name: |
|
| |
Title: |
|
| |
|
| |
|
| |
Russ Vering |
| |
|
| |
|
| |
Chris Reimers |
[Signature Page to Operating Agreement]
SCHEDULE A
MEMBERS SCHEDULE
| Member Name and Address | |
Units | | |
Percentage Interest | |
| VIROMENT USA, LLC | |
500 | | |
50% | |
| [ADDRESS] | |
| | |
| |
| | |
| | |
| |
| Russ Vering | |
250 | | |
25% | |
| [ADDRESS] | |
| | |
| |
| | |
| | |
| |
| Chris Reimers | |
250 | | |
25% | |
| [ADDRESS] | |
| | |
| |
| | |
| | |
| |
| Total: | |
1,000 | | |
100% | |
28
