EX-10.5



 Exhibit 10.5 

SECOND AMENDED AND RESTATED 

LIMITED LIABILITY COMPANY OPERATING AGREEMENT 

OF 
 LIBERTY OILFIELD
SERVICES NEW HOLDCO LLC 
 DATED AS
OF                , 2018 
 THE LIMITED LIABILITY
COMPANY INTERESTS IN LIBERTY OILFIELD SERVICES NEW HOLDCO LLC HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, THE SECURITIES LAWS OF ANY STATE, OR ANY OTHER APPLICABLE SECURITIES LAWS, AND HAVE BEEN OR ARE BEING ISSUED IN
RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. SUCH INTERESTS MUST BE ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME
EXCEPT IN COMPLIANCE WITH (I) THE SECURITIES ACT, ANY APPLICABLE SECURITIES LAWS OF ANY STATE AND ANY OTHER APPLICABLE SECURITIES LAWS; (II) THE TERMS AND CONDITIONS OF THIS SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY OPERATING
AGREEMENT; AND (III) ANY OTHER TERMS AND CONDITIONS AGREED TO IN WRITING BETWEEN THE MANAGING MEMBER AND THE APPLICABLE MEMBER. THE LIMITED LIABILITY COMPANY INTERESTS MAY NOT BE TRANSFERRED OF RECORD EXCEPT IN COMPLIANCE WITH SUCH LAWS, THIS
SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY OPERATING AGREEMENT, AND ANY OTHER TERMS AND CONDITIONS AGREED TO IN WRITING BY THE MANAGING MEMBER AND THE APPLICABLE MEMBER. THEREFORE, PURCHASERS AND OTHER TRANSFEREES OF SUCH LIMITED
LIABILITY COMPANY INTERESTS WILL BE REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT OR ACQUISITION FOR AN INDEFINITE PERIOD OF TIME. 
  

 
  







 Table of Contents 

 

							
	 ARTICLE I DEFINITIONS
	  	 	2	 
			
	 Section 1.1
	 	 Definitions
	  	 	2	 
	 Section 1.2
	 	 Interpretive Provisions
	  	 	13	 
		
	 ARTICLE II ORGANIZATION OF THE LIMITED LIABILITY COMPANY
	  	 	14	 
			
	 Section 2.1
	 	Formation	  	 	14	 
	 Section 2.2
	 	 Filing
	  	 	14	 
	 Section 2.3
	 	 Name
	  	 	14	 
	 Section 2.4
	 	 Registered Office; Registered Agent
	  	 	14	 
	 Section 2.5
	 	 Principal Place of Business
	  	 	15	 
	 Section 2.6
	 	 Purpose; Powers
	  	 	15	 
	 Section 2.7
	 	 Term
	  	 	15	 
	 Section 2.8
	 	 Intent
	  	 	15	 
		
	 ARTICLE III [RESERVED]
	  	 
	15
	 

		
	 ARTICLE IV OWNERSHIP AND CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS
	  	 	15	 
			
	 Section 4.1
	 	Authorized Units; General Provisions With Respect to Units	  	 	15	 
	 Section 4.2
	 	 Voting Rights
	  	 	18	 
	 Section 4.3
	 	 Capital Contributions; Unit Ownership
	  	 	18	 
	 Section 4.4
	 	 Capital Accounts
	  	 	19	 
	 Section 4.5
	 	 Other Matters
	  	 	20	 
	 Section 4.6
	 	 Redemption of Units
	  	 	20	 
		
	 ARTICLE V ALLOCATIONS OF PROFITS AND LOSSES
	  	 	27	 
			
	 Section 5.1
	 	Profits and Losses	  	 	27	 
	 Section 5.2
	 	 Special Allocations
	  	 	27	 
	 Section 5.3
	 	 Allocations for Tax Purposes in General
	  	 	30	 
	 Section 5.4
	 	 Other Allocation Rules
	  	 	30	 
		
	 ARTICLE VI DISTRIBUTIONS
	  	 	31	 
			
	 Section 6.1
	 	Distributions	  	 	31	 
	 Section 6.2
	 	 Tax-Related Distributions
	  	 	32	 
	 Section 6.3
	 	 Distribution Upon Withdrawal
	  	 	33	 
		
	 ARTICLE VII MANAGEMENT
	  	 	34	 
			
	 Section 7.1
	 	The Managing Member; Fiduciary Duties	  	 	34	 
	 Section 7.2
	 	 Officers
	  	 	34	 


  
 i 









							
	 Section 7.3
	 	 Warranted Reliance by Officers on Others
	  	 	35	 
	 Section 7.4
	 	 Indemnification
	  	 	35	 
	 Section 7.5
	 	 Maintenance of Insurance or Other Financial Arrangements
	  	 	36	 
	 Section 7.6
	 	 Resignation or Termination of Managing Member
	  	 	36	 
	 Section 7.7
	 	 No Inconsistent Obligations
	  	 	37	 
	 Section 7.8
	 	 Reclassification Events of PubCo
	  	 	37	 
	 Section 7.9
	 	 Certain Costs and Expenses
	  	 	37	 
		
	 ARTICLE VIII ROLE OF MEMBERS
	  	 	38	 
			
	 Section 8.1
	 	Rights or Powers	  	 	38	 
	 Section 8.2
	 	 Voting
	  	 	38	 
	 Section 8.3
	 	 Various Capacities
	  	 	39	 
		
	 ARTICLE IX TRANSFERS OF INTERESTS
	  	 	40	 
			
	 Section 9.1
	 	Restrictions on Transfer	  	 	40	 
	 Section 9.2
	 	 Notice of Transfer
	  	 	41	 
	 Section 9.3
	 	 Transferee Members
	  	 	41	 
	 Section 9.4
	 	 Legend
	  	 	42	 
		
	 ARTICLE X ACCOUNTING
	  	 	42	 
			
	 Section 10.1
	 	Books of Account	  	 	42	 
	 Section 10.2
	 	 Tax Elections
	  	 	43	 
	 Section 10.3
	 	 Tax Returns; Information
	  	 	43	 
	 Section 10.4
	 	 Tax Matters Member and Company Representative
	  	 	44	 
	 Section 10.5
	 	 Withholding Tax Payments and Obligations
	  	 	44	 
		
	 ARTICLE XI DISSOLUTION AND TERMINATION
	  	 	45	 
			
	 Section 11.1
	 	Liquidating Events	  	 	45	 
	 Section 11.2
	 	 Bankruptcy
	  	 	46	 
	 Section 11.3
	 	 Procedure
	  	 	46	 
	 Section 11.4
	 	 Rights of Members
	  	 	47	 
	 Section 11.5
	 	 Notices of Dissolution
	  	 	47	 
	 Section 11.6
	 	 Reasonable Time for Winding Up
	  	 	47	 
	 Section 11.7
	 	 No Deficit Restoration
	  	 	48	 
		
	 ARTICLE XII GENERAL
	  	 	48	 
			
	 Section 12.1
	 	Amendments; Waivers	  	 	48	 
	 Section 12.2
	 	 Further Assurances
	  	 	49	 
	 Section 12.3
	 	 Successors and Assigns
	  	 	49	 
	 Section 12.4
	 	 Entire Agreement
	  	 	49	 
	 Section 12.5
	 	 Rights of Members Independent
	  	 	49	 
	 Section 12.6
	 	 Governing Law
	  	 	49	 
	 Section 12.7
	 	 Jurisdiction and Venue
	  	 	49	 
	 Section 12.8
	 	 Headings
	  	 	50	 
	 Section 12.9
	 	 Counterparts
	  	 	50	 


  
 ii 









							
	 Section 12.10
	 	 Notices
	  	 	50	 
	 Section 12.11
	 	 Representation By Counsel; Interpretation
	  	 	51	 
	 Section 12.12
	 	 Severability
	  	 	51	 
	 Section 12.13
	 	 Expenses
	  	 	51	 
	 Section 12.14
	 	 No Third Party Beneficiaries
	  	 	51	 


  
 iii 








 SECOND AMENDED AND RESTATED 

LIMITED LIABILITY COMPANY OPERATING AGREEMENT 

OF 
 LIBERTY OILFIELD
SERVICES NEW HOLDCO LLC 
 This SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY OPERATING AGREEMENT (as amended, supplemented or
restated from time to time, this “Agreement”) is entered into as of                , 2018, by and among Liberty Oilfield Services New HoldCo LLC,
a Delaware limited liability company (the “Company”), and each other Person who is or at any time becomes a Member in accordance with the terms of this Agreement and the Act. Capitalized terms used herein and not otherwise
defined have the respective meanings set forth in Section 1.1. 
 RECITALS 

WHEREAS, the Company was formed pursuant to a Certificate of Formation filed in the office of the Secretary of State of the State of
Delaware on December 21, 2016 and is currently governed by the First Amended and Restated Limited Liability Company Operating Agreement of the Company, dated as
of                , 2017 (the “Existing LLC Agreement”); 

WHEREAS, pursuant to the terms of the Reorganization Agreement, the parties thereto have agreed to consummate the reorganization of the
Company contemplated by the Reorganization Agreement and to take the other actions contemplated in the Reorganization Agreement (collectively, the “Reorganization”); 

WHEREAS, the Members of the Company consist of those Persons listed on Exhibit A as of the date hereof;  

WHEREAS, in connection with the Reorganization, Liberty Oilfield Services Inc., a Delaware corporation (together with any successor,
“PubCo”), will issue shares of Class A Common Stock to the public in the initial underwritten public offering of shares of its stock (the “IPO”) in exchange for cash (the
“Proceeds”); 
 WHEREAS, PubCo will use a portion of the Proceeds to purchase Units from certain continuing
Members of the Company, will transfer a portion of the Proceeds to certain former Members of the Company in connection with their transfer of Units to PubCo and will contribute the remaining net Proceeds to the Company in exchange for a number of
Units such that the total number of Units held by PubCo (and its wholly owned Subsidiaries) equals the number of shares of Class A Common Stock outstanding after the IPO (including any shares of Class A Stock issued pursuant to the
exercise of any underwriters’ option) and related transactions; 
 WHEREAS, taking into account any purchase of Units from the
continuing Members of the Company in connection with the IPO, PubCo will sell a number of shares of its Class B Common Stock to each Member of the Company (other than PubCo and its wholly owned Subsidiaries) equal to the number of outstanding
Units held by such Member in exchange for a 

  
 1 








 
cash payment equal to the par value of such shares; provided that to the extent that any underwriters’ option is exercised, any shares of Class B Common Stock relating to additional
Units that are purchased from the continuing Members of the Company will be forfeited; 
 WHEREAS, each Unit (other than any Unit
held by PubCo and its wholly owned Subsidiaries) may be redeemed, at the election of the holder of such Unit (together with the transfer and surrender by such holder of one share of Class B Common Stock), for one share of Class A Common
Stock in accordance with the terms and conditions of this Agreement; 
 WHEREAS, the Members of the Company desire that PubCo become
the sole managing Member of the Company (in its capacity as managing Member as well as in any other capacity, the “Managing Member”); 

WHEREAS, the Members of the Company desire to amend and restate the Existing LLC Agreement; and 

WHEREAS, this Agreement shall supersede the Existing LLC Agreement in its entirety as of the date hereof. 

NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows: 

ARTICLE I 
 DEFINITIONS

 Section 1.1    Definitions. As used in this Agreement and the Schedules and Exhibits attached
to this Agreement, the following definitions shall apply: 
 “Act” means the Delaware Limited Liability Company Act,
6 Del. C. § 18-101, et seq., as amended from time to time (or any corresponding provisions of succeeding law). 

“Action” means any claim, action, suit, arbitration, inquiry, proceeding or investigation by or before any
Governmental Entity. 
 “Adjusted Basis” has the meaning given such term in Section 1011 of the Code. 

“Adjusted Capital Account Deficit” means the deficit balance, if any, in such Member’s Capital Account at the end
of any Fiscal Year or other taxable period, with the following adjustments: 
  

	 	(a)	credit to such Capital Account any amount that such Member is obligated to restore under Treasury Regulations Section 1.704-1(b)(2)(ii)(c), as well as any addition
thereto pursuant to the next to last sentences of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) after taking into account thereunder any changes during
such year in Company Minimum Gain and Member Minimum Gain; and 


  
 2 









	 	(b)	debit to such Capital Account the items described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6). 


This definition of Adjusted Capital Account Deficit is intended to comply with the provisions of Treasury Regulations
Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled
by, or is under common control with, such Person. For these purposes, “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise; provided that, for purposes of this Agreement, (a) no Member shall be deemed an Affiliate of the Company or any of its Subsidiaries and (b) none of the Company or any of its
Subsidiaries shall be deemed an Affiliate of any Member. 
 “Agreement” is defined in the preamble to this
Agreement. 
 “Assumed Tax Liability” means, with respect to any Member for any Fiscal Year or other taxable period,
the product of (a) the U.S. federal taxable income (taking into account all items of income, gain, loss and deduction of the Company) allocated by the Company to such Member in such Fiscal Year or other taxable period (other than, for the
avoidance of doubt, taxable income incurred by any Member in connection with the receipt of a guaranteed payment for services by such Member) (taking into account for purposes of clause (a) adjustments and allocations under Sections
704(c), 734 and 743 of the Code); multiplied by (b) the highest applicable U.S. federal, state and local income tax rate (including any tax rate imposed on “net investment income” by Section 1411 of the Code and taking
into account any applicable deduction under Section 199A of the Code) applicable to an individual, or, if higher, a corporation, resident in New York, New York, with respect to the character of U.S. federal taxable income or loss allocated by
the Company to such Member (e.g., capital gains or losses, dividends, ordinary income, etc.). The Managing Member shall reasonably determine the Assumed Tax Liability for each Member based on such assumptions as the Managing Member deems
necessary; provided, that such assumptions shall in no event be inconsistent with the terms of this definition. 
 “beneficially
own” and “beneficial owner” shall be as defined in Rule 13d-3 of the rules promulgated under the Exchange Act. 

“Bipartisan Budget Act of 2015” means Title XI of the Bipartisan Budget Act of 2015, as may be amended from time to
time (or any corresponding provisions of succeeding law), and any related provisions of law, including court decisions, regulations and administrative guidance. 

“Board” means the board of directors of PubCo. 

“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized
by Law to be closed in the City of New York. 
 “Call Election Notice” is defined in
Section 4.6(f)(ii). 
 “Call Right” has the meaning set forth in
Section 4.6(f)(i). 

  
 3 








 “Capital Account” means, with respect to any Member, the Capital Account
maintained for such Member in accordance with Section 4.4. 
 “Capital Contribution”
means, with respect to any Member, the amount of cash and the initial Gross Asset Value of any property (other than cash) contributed to the Company by such Member. Any reference to the Capital Contribution of a Member will include any Capital
Contributions made by a predecessor holder of such Member’s Units to the extent that such Capital Contribution was made in respect of Units Transferred to such Member. 

“Cash Election” is defined in Section 4.6(a)(iii) and shall also include PubCo’s
election to purchase Units for cash pursuant to an exercise of its Call Right set forth in Section 4.6(g). 
 “Cash Election
Amount” means with respect to a particular Redemption for which a Cash Election has been made, (i) if the Class A Common Stock trades on a securities exchange or automated or electronic quotation system, an amount of cash
equal to the product of (A) the number of shares of Class A Common Stock that would have been received in such Redemption if a Cash Election had not been made and (B) the average of the volume-weighted closing price for a share of
Class A Common Stock on the principal U.S. securities exchange or automated or electronic quotation system on which the Class A Common Stock trades, as reported by Bloomberg, L.P., or its successor, for each of the thirty
(30) consecutive full Trading Days ending on and including the last full Trading Day immediately prior to the Redemption Notice Date, subject to appropriate and equitable adjustment for any stock splits, reverse splits, stock dividends or
similar events affecting the Class A Common Stock; and (ii) if the Class A Common Stock no longer trades on a securities exchange or automated or electronic quotation system, an amount of cash equal to the product of (A) the
number of shares of Class A Common Stock that would have been received in such Redemption if a Cash Election had not been made and (B) the fair market value of one share of Class A Common Stock, as determined by the Managing Member in
good faith, that would be obtained in an arms-length transaction between an informed and willing buyer and an informed and willing seller, with neither party having any compulsion to buy or sell, and without regard to the particular circumstances of
the buyer or seller. 
 “Change of Control Redemption Date” is defined in Section 4.6(g). 

“Class A Common Stock” means, as applicable, (a) the Class A Common Stock,
par value $0.01 per share, of PubCo or (b) following any consolidation, merger, reclassification or other similar event involving PubCo, any shares or other securities of PubCo or any other Person or cash or other property that become payable
in consideration for the Class A Common Stock or into which the Class A Common Stock is exchanged or converted as a result of such consolidation, merger, reclassification or other similar event. 

“Class B Common Stock” means, as applicable, (a) the Class B Common Stock,
par value $0.01 per share, of PubCo or (b) following any consolidation, merger, reclassification or other similar event involving PubCo, any shares or other securities of PubCo or any other Person or cash or other property that become payable
in consideration for the Class B Common Stock or into which the Class B Common Stock is exchanged or converted as a result of such consolidation, merger, reclassification or other similar event. 

  
 4 








 “Closing Date Capital Account Balance” means, with respect to any Member,
the positive Capital Account balance of such Member as of the date hereof, the amount or deemed value of which is set forth on Exhibit A. 

“Code” means the United States Internal Revenue Code of 1986, as amended from time to time (or any corresponding
provisions of succeeding law). 
 “Commission” means the U.S. Securities and Exchange Commission. 

“Company” is defined in the preamble to this Agreement. 

“Company Minimum Gain” has the meaning of “partnership minimum gain” set forth in Treasury Regulations
Sections 1.704-2(b)(2) and 1.704-2(d). It is further understood that Company Minimum Gain shall be determined in a manner consistent with the rules of Treasury
Regulations Section 1.704-2(b)(2), including the requirement that if the adjusted Gross Asset Value of property subject to one or more Nonrecourse Liabilities differs from its adjusted tax basis, Company
Minimum Gain shall be determined with reference to such Gross Asset Value. 
 “Company Representative” has the
meaning assigned to the term “partnership representative” in Section 6223 of the Code and any Treasury Regulations or other administrative or judicial pronouncements promulgated thereunder. 

“Contract” means any written agreement, contract, lease, sublease, license, sublicense, obligation, promise or
undertaking. 
 “control” (including the terms “controlled by” and “under common control with”),
with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative or executor, of the power to direct or cause the direction of the affairs or management of a
Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract, credit arrangement or otherwise. 

“Debt Securities” means, with respect to PubCo, any and all debt instruments or debt securities that are not
convertible or exchangeable into Equity Securities of PubCo. 
 “Depreciation” means, for each Fiscal Year or other
taxable period, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable with respect to an asset for such Fiscal Year or other taxable period, except that (a) with respect to any such property the Gross
Asset Value of which differs from its Adjusted Basis for U.S. federal income tax purposes and which difference is being eliminated by use of the “remedial method” pursuant to Treasury Regulations
Section 1.704-3(d), Depreciation for such Fiscal Year or other taxable period shall be the amount of book basis recovered for such Fiscal Year or other taxable period under the rules prescribed by
Treasury Regulations Section 1.704-3(d)(2), and (b) with respect to any other such property the Gross Asset Value of which differs from its Adjusted Basis for U.S. federal income tax purposes at the
beginning of such Fiscal Year or other taxable period, Depreciation shall be an amount which bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such


  
 5 








 
Fiscal Year or other taxable period bears to such beginning Adjusted Basis; provided, however, that if the Adjusted Basis for U.S. federal income tax purposes of an asset at the
beginning of such Fiscal Year or other taxable period is zero, Depreciation with respect to such asset shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Tax Matters Member. 

“DGCL” means the General Corporation Law of the State of Delaware, as amended from time to time (or any corresponding
provisions of succeeding law). 
 “Discount” has the meaning set forth in Section 7.9.

 “Effective Time” means 12:01 a.m. Central Daylight Time on the date of the initial closing of the IPO. 

“Equity Securities” means (a) with respect to a partnership, limited liability company or similar Person, any and
all units, interests, rights to purchase, warrants, options or other equivalents of, or other ownership interests in, any such Person as well as debt or equity instruments convertible, exchangeable or exercisable into any such units, interests,
rights or other ownership interests and (b) with respect to a corporation, any and all shares, interests, participation or other equivalents (however designated) of corporate stock, including all common stock and preferred stock, or warrants,
options or other rights to acquire any of the foregoing, including any debt instrument convertible or exchangeable into any of the foregoing. 

“ERISA” means the Employee Retirement Security Act of 1974, as amended. 

“Exchange Act” means the Securities Exchange Act of 1934, and the rules and regulations promulgated thereunder, as the
same may be amended from time to time (or any corresponding provisions of succeeding law). 
 “Existing LLC
Agreement” is defined in the recitals to this Agreement. 
 “Fair Market Value” means the fair market
value of any property as determined in good faith by the Managing Member after taking into account such factors as the Managing Member shall deem appropriate. 

“Federal Bankruptcy Code” means Title 11 of the United States Code, as amended from time to time, and all rules and
regulations promulgated thereunder. 
 “Fiscal Year” means the fiscal year of the Company, which shall end on
December 31 of each calendar year unless, for U.S. federal income tax purposes, another fiscal year is required. The Company shall have the same fiscal year for U.S. federal income tax purposes and for accounting purposes. 

“GAAP” means U.S. generally acceptable accounting principles at the time. 

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

  
 6 








 “Governmental Entity” means any federal, national, supranational, state,
provincial, local, foreign or other government, governmental, stock exchange, regulatory or administrative authority, agency or commission or any court, tribunal, or judicial or arbitral body. 

“Gross Asset Value” means, with respect to any asset, the asset’s Adjusted Basis for U.S. federal income tax
purposes, except as follows: 
  

	 	(a)	the initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross Fair Market Value of such asset as of the date of such contribution; 


 

	 	(b)	the Gross Asset Values of all Company assets shall be adjusted to equal their respective gross Fair Market Values as of the following times: (i) the acquisition of an interest (or additional interest) in the
Company by any new or existing Member in exchange for more than a de minimis Capital Contribution to the Company or in exchange for the performance of more than a de minimis amount of services to or for the benefit of the Company;
(ii) the distribution by the Company to a Member of more than a de minimis amount of Company assets as consideration for an interest in the Company; (iii) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g)(1) (other than pursuant to Code Section 708(b)(1)(B)), (iv) the acquisition of an interest in the Company by any new or existing Member upon the exercise of a
noncompensatory option in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(s); or (v) any other event to the extent determined by the Managing Member to be permitted and
necessary or appropriate to properly reflect Gross Asset Values in accordance with the standards set forth in Treasury Regulations Section 1.704-1(b)(2)(iv)(q); provided, however,
that adjustments pursuant to clauses (i), (ii) and (iv) above shall be made only if the Managing Member reasonably determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the
Company. If any noncompensatory options are outstanding upon the occurrence of an event described in this paragraph (b)(i) through (b)(v), the Company shall adjust the Gross Asset Values of its properties in accordance with Treasury Regulations
Sections 1.704-1(b)(2)(iv)(f)(1) and 1.704-1(b)(2)(iv)(h)(2); 

  

	 	(c)	the Gross Asset Value of any Company asset distributed to any Member shall be adjusted to equal the gross Fair Market Value of such asset on the date of such distribution; 


 

	 	(d)	 the Gross Asset Values of Company assets shall be increased (or decreased) to reflect any adjustments to the
Adjusted Basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m) and subsection (f) in the 



  
 7 









	 	
definition of “Profits” or “Losses” below or Section 5.2(h); provided, however, that the Gross Asset Value of a Company asset shall not
be adjusted pursuant to this subsection to the extent the Managing Member determines that an adjustment pursuant to subsection (b) of this definition is necessary or appropriate in connection with a transaction that would otherwise result in an
adjustment pursuant to this subsection (d); and 

  

	 	(e)	if the Gross Asset Value of a Company asset has been determined or adjusted pursuant to subsections (a), (b) or (d) of this definition of Gross Asset Value, such Gross Asset Value shall
thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits, Losses and other items allocated pursuant to Article V. 


“Indebtedness” means (a) all indebtedness for borrowed money (including capitalized lease obligations,
sale-leaseback transactions or other similar transactions, however evidenced), (b) any other indebtedness that is evidenced by a note, bond, debenture, draft or similar instrument, (c) notes payable and (d) lines of credit and any other
agreements relating to the borrowing of money or extension of credit. 
 “Interest” means the entire interest of a
Member in the Company, including the Units and all of such Member’s rights, powers and privileges under this Agreement and the Act. 

“IPO” is defined in the recitals to this Agreement. 

“Law” means any federal, national, supranational, state, provincial, local or similar statute, law, ordinance,
regulation, rule, code, order, requirement or rule of law (including common law). 
 “Legal Action” is defined in
Section 12.7. 
 “Liability” means any liability or obligation, whether known or unknown,
asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated and whether due or to become due, regardless of when asserted. 

“Liquidating Event” is defined in Section 11.1. 

“Managing Member” is defined in the recitals to this Agreement. 

“Member” means any Person that executes this Agreement as a Member, and any other Person admitted to the Company as an
additional or substituted Member, that has not made a disposition of such Person’s entire Interest. 
 “Member Minimum
Gain” has the meaning ascribed to “partner nonrecourse debt minimum gain” set forth in Treasury Regulations Section 1.704-2(i). It is further understood that the determination of
Member Minimum Gain and the net increase or decrease in Member Minimum Gain shall be made in the same manner as required for such determination of Company Minimum Gain under Treasury Regulations Sections
1.704-2(d) and 1.704-2(g)(3). 

  
 8 








 “Member Nonrecourse Debt” has the meaning of “partner nonrecourse
debt” set forth in Treasury Regulations Section 1.704-2(b)(4). 
 “Member
Nonrecourse Deductions” has the meaning of “partner nonrecourse deductions” set forth in Treasury Regulations Sections 1.704-2(i)(1) and 1.704-2(i)(2). 

“National Securities Exchange” means an exchange registered with the Commission under the Exchange Act. 

“Nonrecourse Deductions” has the meaning assigned that term in Treasury Regulations
Section 1.704-2(b). 
 “Nonrecourse Liability” is defined in Treasury
Regulations Section 1.704-2(b)(3). 
 “Officer” means each Person
appointed as an officer of the Company pursuant to and in accordance with the provisions of Section 7.2. 

“Permitted Transferee” means, with respect to any Member, (a) any Affiliate of such Member, (b) any partner,
shareholder or member of such Member, (c) any successor entity of such Member, (d) a trust established by or for the benefit of a Member of which only such Member and his or her immediate family members are beneficiaries, (e) any
Person established for the benefit of, and beneficially owned solely by, an entity Member or the sole individual direct or indirect owner of an entity Member, and (f) upon an individual Member’s death, an executor, administrator or
beneficiary of the estate of the deceased Member. 
 “Person” means any individual, partnership, firm, corporation,
limited liability company, association, trust, unincorporated organization or other entity, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Exchange Act. 

“Plan Asset Regulations” means the regulations issued by the U.S. Department of Labor at Section 2510.3-101 of Part 2510 of Chapter XXV, Title 29 of the Code of Federal Regulations, or any successor regulations as the same may be amended from time to time. 

“President and Chief Executive Officer” is defined in Section 7.2(b). 

“Prime Rate” means, on any date of determination, a rate per annum equal to the rate of interest most recently
published by The Wall Street Journal as the “prime rate” at large U.S. money center banks. 
 “Proceeding”
is defined in Section 7.4. 
 “Proceeds” is defined in the recitals to this Agreement.

 “Profits” or “Losses” means, for each Fiscal Year or other taxable period, an amount
equal to the Company’s taxable income or loss for such year or period, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or 

  
 9 








 
deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments (without duplication): 

 

	 	(a)	any income or gain of the Company that is exempt from U.S. federal income tax and not otherwise taken into account in computing Profits or Losses shall be added to such taxable income or loss; 


 

	 	(b)	any expenditures of the Company described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulations
Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses, shall be subtracted from such taxable income or loss; 


 

	 	(c)	in the event the Gross Asset Value of any Company asset is adjusted pursuant to subsection (b) or (c) of the definition of Gross Asset Value above, the amount of such adjustment shall be treated as an item of gain
(if the adjustment increases the Gross Asset Value of the Company asset) or an item of loss (if the adjustment decreases the Gross Asset Value of the Company asset) from the disposition of such asset and shall, except to the extent allocated
pursuant to Section 5.2, be taken into account for purposes of computing Profits or Losses; 

  

	 	(d)	gain or loss resulting from any disposition of Company assets with respect to which gain or loss is recognized for U.S. federal income tax purposes shall be computed with reference to the Gross Asset Value of the asset
disposed of, notwithstanding that the adjusted tax basis of such asset differs from its Gross Asset Value; 

  

	 	(e)	in lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation; 


 

	 	(f)	to the extent an adjustment to the adjusted tax basis of any asset pursuant to Code Section 734(b) is required, pursuant to Treasury Regulations
Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Account balances as a result of a distribution other than in liquidation of a Member’s interest in the Company,
the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or an item of loss (if the adjustment decreases such basis) from the disposition of such asset and shall be taken into account for
purposes of computing Profits or Losses; and 

  

	 	(g)	any items of income, gain, loss or deduction which are specifically allocated pursuant to the provisions of Section 5.2 shall not be taken into account in computing Profits or Losses for any
taxable year, but such items available to be specially allocated pursuant to Section 5.2 will be determined by applying rules analogous to those set forth in subparagraphs (a) through (f) above. 


“Property” means all real and personal property owned by the Company from time to time, including both tangible and
intangible property. 
 “PubCo” is defined in the recitals to this Agreement. 

  
 10 








 A “PubCo Change of Control” shall be deemed to have occurred if or upon:

 (a)     any Person or any group of Persons acting together which would constitute a “group” for purposes of
Section 13(d) of the Securities and Exchange Act of 1934, or any successor provisions thereto (excluding a corporation or other entity owned, directly or indirectly, by the stockholders of PubCo in substantially the same proportions as their
ownership of stock of PubCo), is or becomes the beneficial owner, directly or indirectly, of securities of PubCo representing more than 50% of the combined voting power of PubCo’s then outstanding voting securities (excluding any Person (or an
Affiliate thereof) or any group of Persons (or any Affiliate of any member of such group) who, on the date of the consummation of the IPO, is the beneficial owner, directly or indirectly, of securities of PubCo representing more than fifty percent
(50%) of the combined voting power of PubCo’s then outstanding voting securities; or 
 (b)     there is
consummated a merger or consolidation of PubCo with any other corporation or other entity, and, immediately after the consummation of such merger or consolidation, either (i) the members of the Board immediately prior to the merger or
consolidation do not constitute at least a majority of the members of the board of directors of the company surviving the merger or, if the surviving company is a Subsidiary, the ultimate parent thereof, or (ii) the voting securities of PubCo
immediately prior to such merger or consolidation do not continue to represent or are not converted into more than 50% of the combined voting power of the then-outstanding voting securities of the Person resulting from such merger or consolidation
or, if the surviving company is a Subsidiary, the ultimate parent thereof; or 
 (c)     the stockholders of PubCo
approve a plan of complete liquidation or dissolution of PubCo or there is consummated an agreement or series of related agreements for the sale or other disposition, directly or indirectly, by PubCo of all or substantially all of PubCo ’s
assets, other than such sale or other disposition by PubCo of all or substantially all of PubCo ’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by stockholders of PubCo in
substantially the same proportions as their ownership of PubCo immediately prior to such sale. 
 Notwithstanding the foregoing, except with
respect to clause (b)(i) above, a “PubCo Change of Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the
shares of PubCo immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in, and own substantially all of the shares of, an entity which owns, either directly or through a
Subsidiary, all or substantially all of the assets of PubCo immediately following such transaction or series of transactions. 

“PubCo Common Stock” means all classes and series of common stock of PubCo, including the Class A Common Stock
and the Class B Common Stock. 
 “Reclassification Event” means any of the following: (a) any
reclassification or recapitalization of PubCo Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination or any transaction subject to
Section 4.1(g)), (b) any merger, consolidation or other combination involving PubCo, or (c) any sale, conveyance, lease, or other disposal of all or substantially all 

  
 11 








 
the properties and assets of PubCo to any other Person, in each of clauses (a), (b) or (c), as a result of which holders of PubCo Common Stock shall be entitled to receive cash, securities or
other property for their shares of PubCo Common Stock. 
 “Redeeming Member” is defined in
Section 4.6(a)(i). 
 “Redemption” has the meaning set forth in
Section 4.6(a)(i). 
 “Redemption Date” means (a) the later of (i) the date that
is five Business Days after the Redemption Notice Date and (ii) if the Company or PubCo has made a valid Cash Election with respect to the relevant Redemption, the first Business Day on which the Company or PubCo has available funds to pay the
Cash Election Amount, which in no event shall be more than seven Business Days after the Redemption Notice Date, or (b) such later date (i) specified in the Redemption Notice or (ii) on which a contingency described in
Section 4.6(a)(ii)(C) that is specified in the Redemption Notice is satisfied. 
 “Redemption
Notice” is defined in Section 4.6(a)(ii). 
 “Redemption Notice Date” is
defined in Section 4.6(a)(ii). 
 “Regulatory Allocations” is defined in
Section 5.2(i). 
 “Reorganization” is defined in the recitals to this Agreement. 

“Reorganization Agreement” means the Master Reorganization Agreement dated as
of                , 2018, by and among the Company, PubCo and the Persons listed on the signature pages thereto, as it may be amended, supplemented or restated from time
to time. 
 “Retraction Notice” is defined in Section 4.6(b)(i). 

“SEC” means the U.S. Securities and Exchange Commission, including any governmental body or agency succeeding to the
functions thereof. 
 “Securities Act” means the Securities Act of 1933, and the rules and regulations promulgated
thereunder, as the same may be amended from time to time (or any corresponding provisions of succeeding law). 

“Subsidiary” means, with respect to any specified Person, any other Person with respect to which such specified Person
(a) has, directly or indirectly, the power, through the ownership of securities or otherwise, to elect a majority of directors or similar managing body or (b) beneficially owns, directly or indirectly, a majority of such Person’s
Equity Securities. 
 “Tax Advance” is defined in Section 6.2(b). 

“Tax Distribution Date” means any date that is two Business Days prior to the date on which estimated federal income
tax payments are required to be made by calendar year corporate taxpayers and the due date for federal income tax returns of corporate calendar year taxpayers (without regard to extensions). 

  
 12 








 “Tax Distributions” means distributions required to be made pursuant to
Section 6.2(a). 
 “Tax Matters Member” means the “tax matters partner” as
defined in Code Section 6231(a)(7) and as appointed in Section 10.5. 
 “Tax Receivable
Agreements” means (a) the Tax Receivable Agreement dated as of                 by and among
PubCo,                 and                , as agent, as the same may be amended,
supplemented or restated from time to time, (b) the Tax Receivable Agreement dated as of                 by and among
PubCo,                 and                 as agent, as the same may be amended,
supplemented or restated from time to time, and (c) any similar agreement entered into by PubCo after the date hereof. 

“Trading Day” means a day on which the New York Stock Exchange or such other principal United States securities
exchange on which the Class A Common Stock is listed or admitted to trading is open for the transaction of business (unless such trading shall have been suspended for the entire day). 

“Transfer” means any sale, transfer, assignment, pledge, encumbrance or other disposition of (whether directly or
indirectly, whether with or without consideration and whether voluntarily or involuntarily or by operation of Law) (a) any interest (legal or beneficial) in any Units or other Equity Securities of the Company or (b) any equity or other
interest (legal or beneficial) in any Member if substantially all of the assets of such Member consist solely of Units The terms “Transferee,” “Transferor,” “Transferred,” and other forms of the word
“Transfer” shall have the correlative meanings. 
 “Transfer Agent” is defined in
Section 4.6(a)(ii). 
 “Treasury Regulations” means pronouncements, as amended from time
to time, or their successor pronouncements, which clarify, interpret and apply the provisions of the Code, and which are designated as “Treasury Regulations” by the United States Department of the Treasury. 

“Uniform Commercial Code” means the Uniform Commercial Code or any successor provision thereof as the same may from
time to time be in effect in the State of Delaware. 
 “Units” means the Units issued hereunder and shall also
include any equity security of the Company issued in respect of or in exchange for Units, whether by way of dividend or other distribution, split, recapitalization, merger, rollup transaction, consolidation, conversion or reorganization. 

“Winding-Up Member” is defined in Section 11.3(a).

 Section 1.2    Interpretive Provisions. For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires: 
  

	 	(a)	the terms defined in Section 1.1 are applicable to the singular as well as the plural forms of such terms; 


  
 13 









	 	(b)	all accounting terms not otherwise defined herein have the meanings assigned under GAAP; 

  

	 	(c)	all references to currency, monetary values and dollars set forth herein shall mean United States (U.S.) dollars and all payments hereunder shall be made in United States dollars; 


 

	 	(d)	when a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference is to an Article or Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated;


  

	 	(e)	whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”; 


 

	 	(f)	“or” is not exclusive; 

  

	 	(g)	pronouns of either gender or neuter shall include, as appropriate, the other pronoun forms; and 

  

	 	(h)	the words “hereof”, “herein” and “hereunder” and words of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this
Agreement. 

 ARTICLE II 

ORGANIZATION OF THE LIMITED LIABILITY COMPANY 

Section 2.1    Formation. The Company has been formed as a limited liability company subject to the
provisions of the Act upon the terms, provisions and conditions set forth in this Agreement. 

Section 2.2    Filing. The Company’s Certificate of Formation has been filed with the Secretary of
State of the State of Delaware in accordance with the Act. The Managing Member shall execute such further documents (including amendments to such Certificate of Formation) and take such further action as is appropriate to comply with the
requirements of Law for the formation or operation of a limited liability company in Delaware and in all states and counties where the Company may conduct its business. 

Section 2.3    Name. The name of the Company is “LIBERTY OILFIELD SERVICES NEW HOLDCO LLC”
and all business of the Company shall be conducted in such name or, in the discretion of the Managing Member, under any other name. 

Section 2.4    Registered Office; Registered Agent. The location of the registered office of the
Company in the State of Delaware is 1209 Orange Street, Wilmington, Delaware 19801, or at such other place as the Managing Member from time to time may select. The name and address for service of process on the Company in the State of Delaware are
The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware 19801, or such other qualified Person as the Managing Member may designate from time to time and its business address. 

  
 14 








 Section 2.5    Principal Place of Business. The principal
place of business of the Company shall be located in such place as is determined by the Managing Member from time to time. 

Section 2.6    Purpose; Powers. The nature of the business or purposes to be conducted or promoted by
the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act. The Company shall have the power and authority to take any and all actions and engage in any and all activities necessary,
appropriate, desirable, advisable, ancillary or incidental to the accomplishment of the foregoing purpose. 

Section 2.7    Term. The term of the Company commenced on the date of filing of the Certificate of
Formation of the Company with the office of the Secretary of State of the State of Delaware in accordance with the Act and shall continue indefinitely. The Company may be dissolved and its affairs wound up only in accordance with Article XI.

 Section 2.8    Intent. It is the intent of the Members that the Company be operated in a manner
consistent with its treatment as a “partnership” for U.S. federal and state income tax purposes. It is also the intent of the Members that the Company not be operated or treated as a “partnership” for purposes of Section 303
of the Federal Bankruptcy Code. Neither the Company nor any Member shall take any action inconsistent with the express intent of the parties hereto as set forth in this Section 2.8. 

ARTICLE III 
 [RESERVED]

 ARTICLE IV 

OWNERSHIP AND CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS 

Section 4.1    Authorized Units; General Provisions With Respect to Units. 

 

	 	(a)	Subject to the provisions of this Agreement, the Company shall be authorized to issue from time to time such number of Units and such other Equity Securities as the Managing Member shall determine in accordance with
Section 4.3. Each authorized Unit may be issued pursuant to such agreements as the Managing Member shall approve, including pursuant to options and warrants. The Company may reissue any Units that have been repurchased or
acquired by the Company. 

  

	 	(b)	Each outstanding Unit shall be identical (except as provided in Section 4.3). 


  
 15 









	 	(c)	Initially, none of the Units will be represented by certificates. If the Managing Member determines that it is in the interest of the Company to issue certificates representing the Units, certificates will be issued and
the Units will be represented by those certificates, and this Agreement shall be amended as necessary or desirable to reflect the issuance of certificated Units for purposes of the Uniform Commercial Code. Nothing contained in this
Section 4.1(c) shall be deemed to authorize or permit any Member to Transfer its Units except as otherwise permitted under this Agreement. 


 

	 	(d)	The total number of Units issued and outstanding and held by the Members is set forth on Exhibit A (as amended from time to time in accordance with the terms of this Agreement) as of the date set forth therein.


  

	 	(e)	 If, at any time after the Effective Time, PubCo issues a share of its Class A Common Stock or any other
Equity Security of PubCo (other than shares of Class B Common Stock), (i) the Company shall concurrently issue to PubCo one Unit (if PubCo issues a share of Class A Common Stock), or such other Equity Security of the Company (if PubCo
issues Equity Securities other than Class A Common Stock) corresponding to the Equity Securities issued by PubCo, and with substantially the same rights to dividends and distributions (including distributions upon liquidation) and other
economic rights as those of such Equity Securities of PubCo to be issued and (ii) PubCo shall concurrently contribute to the Company the net proceeds received by PubCo for such share of Class A Common Stock or other Equity Security;
provided, however, that if PubCo issues any shares of Class A Common Stock in order to purchase or fund the purchase from a Member (other than PubCo) of a number of Units (and shares of Class B Common Stock) equal to the
number of shares of Class A Common Stock so issued, then the Company shall not issue any new Units in connection therewith, PubCo shall not be required to transfer such net proceeds to the Company, and such net proceeds shall instead be
transferred to such Member as consideration for such purchase. Notwithstanding the foregoing, this Section 4.1(e) shall not apply to the issuance and distribution to holders of shares of PubCo Common Stock of rights to
purchase Equity Securities of PubCo under a “poison pill” or similar shareholders rights plan (and upon any redemption of Units for Class A Common Stock, such Class A Common Stock will be issued together with a corresponding
right under such plan), or to the issuance under PubCo’s employee benefit plans of any warrants, options, other rights to acquire Equity Securities of PubCo or rights or property that may be converted into or settled in Equity Securities of
PubCo, but shall in each of the foregoing cases apply to the issuance of Equity Securities of PubCo in connection with the exercise or settlement of such rights, warrants, options or other rights or property. Except pursuant to
Section 4.6, (x) the Company may not issue any additional Units to PubCo or any of its Subsidiaries unless substantially simultaneously therewith PubCo or such Subsidiary issues or sells an equal number of newly-issued
shares of PubCo’s Class A Common Stock to another Person, and (y) the Company may not issue any other Equity Securities of the Company to PubCo or any of its Subsidiaries unless substantially simultaneously PubCo or such Subsidiary
issues or sells, to 



  
 16 









	 	
another Person, an equal number of newly-issued shares of a new class or series of Equity Securities of PubCo or such Subsidiary with substantially the same rights to dividends and distributions
(including distributions upon liquidation) and other economic rights as those of such Equity Securities of the Company. If at any time PubCo or any of its Subsidiaries (other than the Company and its Subsidiaries) issues Debt Securities, PubCo or
such Subsidiary shall transfer to the Company (in a manner to be determined by the Managing Member in its reasonable discretion) the proceeds received by PubCo or such Subsidiary in exchange for such Debt Securities in a manner that directly or
indirectly burdens the Company with the repayment of the Debt Securities. In the event any Equity Security outstanding at PubCo is exercised or otherwise converted and, as a result, any shares of Class A Common Stock or other Equity Securities
of PubCo are issued, (1) the corresponding Equity Security outstanding at the Company shall be similarly exercised or otherwise converted, as applicable, and an equivalent number of Units or other Equity Securities of the Company shall be
issued to PubCo as contemplated by the first sentence of this Section 4.1(e), and (2) PubCo shall concurrently contribute to the Company the net proceeds received by PubCo from any such exercise. 


 

	 	(f)	 PubCo or any of its Subsidiaries may not redeem, repurchase or otherwise acquire (i) any shares of
Class A Common Stock (including upon forfeiture of any unvested shares of Class A Common Stock) unless substantially simultaneously the Company redeems, repurchases or otherwise acquires from PubCo or such Subsidiary an equal number of
Units for the same price per security or (ii) any other Equity Securities of PubCo, unless substantially simultaneously the Company redeems, repurchases or otherwise acquires from PubCo or such Subsidiary an equal number of Equity Securities of
the Company of a corresponding class or series with substantially the same rights to dividends and distributions (including distributions upon liquidation) and other economic rights as those of such Equity Securities of PubCo for the same price per
security. The Company may not redeem, repurchase or otherwise acquire (x) except pursuant to Section 4.6, any Units from PubCo or any of its Subsidiaries unless substantially simultaneously PubCo or such Subsidiary
redeems, repurchases or otherwise acquires an equal number of shares of Class A Common Stock for the same price per security from holders thereof, or (y) any other Equity Securities of the Company from PubCo or any of its Subsidiaries
unless substantially simultaneously PubCo or such Subsidiary redeems, repurchases or otherwise acquires for the same price per security an equal number of Equity Securities of PubCo of a corresponding class or series with substantially the same
rights to dividends and distributions (including distribution upon liquidation) and other economic rights as those of such Equity Securities of PubCo. Notwithstanding the foregoing, to the extent that any consideration payable by PubCo in connection
with the redemption or repurchase of any shares of Class A Common Stock or other Equity Securities of PubCo or any of its Subsidiaries consists (in whole or in part) of shares of Class A Common Stock or such other Equity Securities
(including, for the avoidance of doubt, in connection with the cashless exercise of 



  
 17 









	 	
an option or warrant), then the redemption or repurchase of the corresponding Units or other Equity Securities of the Company shall be effectuated in an equivalent manner. 


 

	 	(g)	The Company shall not in any manner effect any subdivision (by any equity split, equity distribution, reclassification, recapitalization or otherwise) or combination (by reverse equity split, reclassification,
recapitalization or otherwise) of the outstanding Units unless accompanied by an identical subdivision or combination, as applicable, of the outstanding PubCo Common Stock, with corresponding changes made with respect to any other exchangeable or
convertible securities. PubCo shall not in any manner effect any subdivision (by any equity split, equity distribution, reclassification, recapitalization or otherwise) or combination (by reverse equity split, reclassification, recapitalization or
otherwise) of the outstanding PubCo Common Stock unless accompanied by an identical subdivision or combination, as applicable, of the outstanding Units, with corresponding changes made with respect to any other exchangeable or convertible
securities. 

  

	 	(h)	Notwithstanding any other provision of this Agreement (including Section 4.1(e)), if PubCo receives Tax Distributions in an amount in excess of the amount that will enable PubCo to meet its
U.S. federal, state and local and non-U.S. tax obligations and its obligations under the Tax Receivable Agreements or holds any other excess cash amount, PubCo may, in its sole discretion, contribute such
excess cash amount to the Company in exchange for a number of Units or other Equity Securities of the Company determined in its sole discretion, and distribute to the holders of Class A Common Stock shares of Class A Common Stock (if the
Company issues Units to PubCo) or such other Equity Security of PubCo (if the Company issues Equity Securities of the Company other than Units) corresponding to the Equity Securities issued by the Company and with substantially the same rights to
dividends and distributions (including distributions upon liquidation) and other economic rights as those of such Equity Securities of the Company issued. 


Section 4.2    Voting Rights. No Member has any voting right except with respect to those matters
specifically reserved for a Member vote under the Act and for matters expressly requiring the approval of Members under this Agreement. Except as otherwise required by the Act, each Unit will entitle the holder thereof to one vote on all matters to
be voted on by the Members. Except as otherwise expressly provided in this Agreement, the holders of Units having voting rights will vote together as a single class on all matters to be approved by the Members. 

Section 4.3    Capital Contributions; Unit Ownership. 

 

	 	(a)	Capital Contributions. Except as otherwise set forth in Section 4.1(e), no Member shall be required to make additional Capital Contributions. 


  
 18 









	 	(b)	Issuance of Additional Units or Interests. Except as otherwise expressly provided in this Agreement, the Managing Member shall have the right to authorize and cause the Company to issue on such terms (including
price) as may be determined by the Managing Member (i) subject to the limitations of Section 4.1, additional Units or other Equity Securities in the Company (including creating preferred interests or other classes or
series of interests having such rights, preferences and privileges as determined by the Managing Member, which rights, preferences and privileges may be senior to the Units), and (ii) obligations, evidences of Indebtedness or other securities
or interests convertible or exchangeable for Units or other Equity Securities in the Company; provided that, at any time following the date hereof, in each case the Company shall not issue Equity Securities in the Company to any Person unless
such Person shall have executed a counterpart to this Agreement and all other documents, agreements or instruments deemed necessary or desirable in the discretion of the Managing Member. Upon such issuance and execution, such Person shall be
admitted as a Member of the Company. In that event, the Managing Member shall amend Exhibit A to reflect such additional issuances. Subject to the proviso to Section 12.1(a), the Managing Member is hereby authorized
to amend this Agreement to set forth the designations, preferences, rights, powers and duties of such additional Units or other Equity Securities in the Company, or such other amendments that the Managing Member determines to be otherwise necessary
or appropriate in connection with the creation, authorization or issuance of, any class or series of Units or other Equity Securities in the Company pursuant to this Section 4.3(b); provided that, subject to the
proviso to Section 12.1(a), the Managing Member shall have the right to amend this Agreement as set forth in this sentence without the approval of any other Person (including any Member) and notwithstanding any other provision of this Agreement
(except Section 12.1) if such amendment is necessary in order to consummate any offering of shares of PubCo Common Stock or other Equity Securities of PubCo provided that the designations, preferences, rights, powers and
duties of any such additional Units or other Equity Securities of the Company as set forth in such amendment are substantially similar to those applicable to such shares of PubCo Common Stock or other Equity Securities of PubCo. 


Section 4.4    Capital Accounts. A Capital Account shall be maintained for each Member in accordance
with the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv) and, to the extent consistent with such regulations, the other provisions of this Agreement. Each Member’s Capital Account
balance as of the date hereof shall be equal to the amount of its respective Closing Date Capital Account Balance set forth opposite such Member’s name on Exhibit A. Thereafter, each Member’s Capital Account shall be
(a) increased by (i) allocations to such Member of Profits pursuant to Section 5.1 and any other items of income or gain allocated to such Member pursuant to Section 5.2, (ii) the amount
of additional cash or the initial Gross Asset Value of any asset (net of any Liabilities assumed by the Company and any Liabilities to which the asset is subject) contributed to the Company by such Member, and (iii) any other increases allowed
or required by Treasury Regulations Section 1.704-1(b)(2)(iv), and (b) decreased by (i) allocations to such Member of Losses pursuant to Section 5.1 and any other


  
 19 








 
items of deduction or loss allocated to such Member pursuant to the provisions of Section 5.2, (ii) the amount of any cash or the Gross Asset Value of any asset (net of
any Liabilities assumed by the Member and any Liabilities to which the asset is subject) distributed to such Member, and (iii) any other decreases allowed or required by Treasury Regulations
Section 1.704-1(b)(2)(iv). In the event of a Transfer of Units made in accordance with this Agreement (including a deemed Transfer for U.S. federal income tax purposes as described in
Section 4.6(a)(iv)), the Capital Account of the Transferor that is attributable to the Transferred Units shall carry over to the Transferee Member in accordance with the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv)(l). 
 Section 4.5    Other
Matters. 
  

	 	(a)	No Member shall demand or receive a return on or of its Capital Contributions or withdraw from the Company without the consent of the Managing Member. Under circumstances requiring a return of any Capital Contributions,
no Member has the right to receive property other than cash. 

  

	 	(b)	No Member shall receive any interest, salary, compensation, draw or reimbursement with respect to its Capital Contributions or its Capital Account, or for services rendered or expenses incurred on behalf of the Company
or otherwise in its capacity as a Member, except as otherwise provided in Section 7.9 or as otherwise contemplated by this Agreement. 

  

	 	(c)	The Liability of each Member shall be limited as set forth in the Act and other applicable Law and, except as expressly set forth in this Agreement or required by Law, no Member (or any of its Affiliates) shall be
personally liable, whether to the Company, any of the other Members, the creditors of the Company, or any other third party, for any debt or Liability of the Company, whether arising in contract, tort or otherwise, solely by reason of being a Member
of the Company. 

  

	 	(d)	Except as otherwise required by the Act, a Member shall not be required to restore a deficit balance in such Member’s Capital Account, to lend any funds to the Company or, except as otherwise set forth herein, to
make any additional contributions or payments to the Company. 

  

	 	(e)	The Company shall not be obligated to repay any Capital Contributions of any Member. 


Section 4.6    Redemption of Units. 

 

	 	(a)	 Upon the terms and subject to the conditions set forth in this Section 4.6, each of the
Members (other than PubCo and its wholly owned Subsidiaries) (the “Redeeming Member”) shall be entitled to cause the Company to redeem all or a portion of such Member’s Units (together with the transfer and surrender of
the same number of shares of Class B Common Stock) for an equivalent number of shares of Class A Common Stock (a “Redemption”) or, at the Company’s election made in




  
 20 









	 	
accordance with Section 4.6(a)(iii), cash equal to the Cash Election Amount calculated with respect to such Redemption. With respect to each Redemption, a Redeeming
Member shall be required to redeem at least a number of Units equal to the lesser of 100,000 Units and all of the Units then held by such Redeeming Member. A Redeeming Member shall be permitted to effect a Redemption of Units no more frequently than
once per calendar quarter. The Managing Member may, in its discretion, adopt a policy to limit quarterly exchanges to a particular period during each quarter. Notwithstanding the foregoing, a Redeeming Member, together with such Redeeming
Member’s Affiliates, may redeem all of such Member’s Units or at least 1,500,000 Units in the aggregate at any time. Upon the Redemption of all of a Member’s Units, such Member shall, for the avoidance of doubt, cease to be a Member
of the Company. 

  

	 	(i)	In order to exercise the redemption right under Section 4.6(a)(i), the Redeeming Member shall provide written notice (the “Redemption Notice”) to the Company, with a
copy to PubCo (the date of delivery of such Redemption Notice, the “Redemption Notice Date”), stating: 

  

	 	(A)	the number of Units (together with the transfer and surrender of an equal number of shares of Class B Common Stock) the Redeeming Member elects to have the Company redeem; 


 

	 	(B)	if the shares of Class A Common Stock to be received are to be issued other than in the name of the Redeeming Member, the name(s) of the Person(s) in whose name or on whose order the shares of Class A Common
Stock are to be issued; 

  

	 	(C)	whether the exercise of the redemption right is to be contingent (including as to timing) upon the closing of an underwritten offering of the shares of Class A Common Stock for which the Units will be redeemed or
the closing of an announced merger, consolidation or other transaction or event to which PubCo is a party in which the shares of Class A Common Stock would be exchanged or converted or become exchangeable for or convertible into cash or other
securities or property; and 

  

	 	(D)	if the Redeeming Member requires the Redemption to take place on a specific date, such date, provided that, any such specified date shall not be earlier than the date that would otherwise apply pursuant to clause
(a) of the definition of Redemption Date. 

 If the Units to be redeemed (or the shares of Class B Common Stock to
be transferred and surrendered) by the Redeeming Member are represented by a certificate or certificates, prior to the Redemption Date, the Redeeming Member shall also present and surrender such certificate or certificates representing such Units
(or shares of Class B Common Stock) 

  
 21 








 
during normal business hours at the principal executive offices of the Company, or if any agent for the registration or transfer of Class A Common Stock is then duly appointed and acting
(the “Transfer Agent”), at the office of the Transfer Agent. If required by the Managing Member, any certificate for Units and any certificate for shares of Class B Common Stock (in each case, if certificated)
surrendered to the Company hereunder shall be accompanied by instruments of transfer, in forms reasonably satisfactory to the Managing Member and the Transfer Agent, duly executed by the Redeeming Member or the Redeeming Member’s duly
authorized representative. 
  

	 	(ii)	Upon receipt of a Redemption Notice, the Company shall be entitled to elect (a “Cash Election”) to settle the Redemption by delivering to the Redeeming Member, in lieu of the applicable number of
shares of Class A Common Stock that would be received in such Redemption, an amount of cash equal to the Cash Election Amount for such Redemption. In order to make a Cash Election with respect to a Redemption, the Company must provide written
notice of such election to the Redeeming Member (with a copy to PubCo) prior to 1:00 p.m., Houston time, on or prior to the second Business Day after the Redemption Notice Date. If the Company fails to provide such written notice prior to such time,
it shall not be entitled to make a Cash Election with respect to such Redemption. 

  

	 	(iii)	For U.S. federal income (and applicable state and local) tax purposes, each of the Redeeming Member, the Company and PubCo, as the case may be, agree to treat each Redemption and, in the event PubCo exercises its Call
Right, each transaction between the Redeeming Member and PubCo, as a sale of the Redeeming Member’s Units (together with the same number of shares of Class B Common Stock) to PubCo in exchange for shares of Class A Common Stock or
cash, as applicable. 

  

	 	(b)	(i) Subject to the satisfaction of any contingency described in Section 4.6(a)(ii)(C) that is specified in the relevant Redemption Notice, the Redemption shall be completed on the Redemption
Date; provided, that if a valid Cash Election has not been made, the Redeeming Member may, at any time prior to the Redemption Date, revoke its Redemption Notice by giving written notice (the “Retraction Notice”) to
the Company (with a copy to PubCo); provided, however, that in no event may the Redeeming Member retract more than three of its Redemption Notices in any calendar quarter. The timely delivery of a Retraction Notice shall terminate all
of the Redeeming Member’s, the Company’s and PubCo’s rights and obligations arising from the retracted Redemption Notice. 

  

	 	(ii)	 Unless the Redeeming Member has timely delivered a Retraction Notice as provided in
Section 4.6(b)(i) or PubCo has elected its Call Right pursuant to Section 4.6(f), on the Redemption Date (to be effective 



  
 22 









	 	
immediately prior to the close of business on the Redemption Date) (A) the Redeeming Member shall transfer and surrender the Units to be redeemed (and a corresponding number of shares of
Class B Common Stock) to the Company, in each case free and clear of all liens and encumbrances, (B) PubCo shall contribute to the Company the consideration the Redeeming Member is entitled to receive under
Section 4.6(a)(i) and, as described in Section 4.1(e), the Company shall issue to PubCo a number of Units or other Equity Securities of the Company as consideration for such contribution,
(C) the Company shall (x) cancel the redeemed Units, (y) transfer to the Redeeming Member the consideration the Redeeming Member is entitled to receive under Section 4.6(a)(i), and (z) if the Units are
certificated, issue to the Redeeming Member a certificate for a number of Units equal to the difference (if any) between the number of Units evidenced by the certificate surrendered by the Redeeming Member pursuant to clause (ii)(A) of this
Section 4.6(b) and the number of redeemed Units, and (D) PubCo shall cancel the surrendered shares of Class B Common Stock. Notwithstanding any other provisions of this Agreement to the contrary, in the event that
the Company makes a valid Cash Election, PubCo shall only be obligated to contribute to the Company an amount in cash equal to the net proceeds (after deduction of any underwriters’ discounts or commissions and brokers’ fees or
commissions) from the sale by PubCo of a number of shares of Class A Stock equal to the number of Units and Class B Stock to be redeemed with such cash or from the sale of other PubCo Equity Securities used to fund the Cash Election
Amount; provided that PubCo’s Capital Account shall be increased by an amount equal to any such discounts, commissions and fees relating to such sale of shares of Class A Stock or other PubCo Equity Securities in accordance with
Section 7.9; provided further, that the contribution of such net proceeds shall in no event affect the Redeeming Member’s right to receive the Cash Election Amount. 


 

	 	(c)	 If (i) there is any reclassification, reorganization, recapitalization or other similar transaction,
including pursuant to a merger or consolidation that does not constitute a PubCo Change of Control, pursuant to which the shares of Class A Common Stock are converted or changed into another security, securities or other property (other than as
a result of a subdivision or combination or any transaction subject to Section 4.1(g)), or (ii) PubCo, by dividend or otherwise, distributes to all holders of the shares of Class A Common Stock evidences of its
Indebtedness or assets, including securities (including shares of Class A Common Stock and any rights, options or warrants to all holders of the shares of Class A Common Stock to subscribe for or to purchase or to otherwise acquire shares
of Class A Common Stock, or other securities or rights convertible into, exchangeable for or exercisable for shares of Class A Common Stock) but excluding any cash dividend or distribution as well as any such distribution of Indebtedness
or assets received by PubCo from the Company in respect of the Units, then upon any 



  
 23 









	 	
subsequent Redemption, in addition to the shares of Class A Common Stock or the Cash Election Amount, as and if applicable, each Member shall be entitled to receive the amount of such
security, securities or other property that such Member would have received if such Redemption had occurred immediately prior to the effective date of such reclassification, reorganization, recapitalization, other similar transaction, dividend or
other distribution, taking into account any adjustment as a result of any subdivision (by any split, distribution or dividend, reclassification, reorganization, recapitalization or otherwise) or combination (by reverse split, reclassification,
recapitalization or otherwise) of such security, securities or other property that occurs after the effective time of such reclassification, reorganization, recapitalization or other similar transaction. For the avoidance of doubt, if there is any
reclassification, reorganization, recapitalization or other similar transaction in which the shares of Class A Common Stock are converted or changed into another security, securities or other property, or any dividend or distribution (other
than an excluded dividend or distribution, as described above), this Section 4.6 shall continue to be applicable, mutatis mutandis, with respect to such security or other property. This Agreement shall apply to the
Units held by the Members and their Transferees as of the date hereof, as well as any Units hereafter acquired by a Member and his or her or its Transferees. 

  

	 	(d)	PubCo shall at all times keep available, solely for the purpose of issuance upon a Redemption, out of its authorized but unissued shares of Class A Common Stock, such number of shares of Class A Common Stock
that shall be issuable upon the Redemption of all outstanding Units (other than those Units held by PubCo or any Subsidiary of PubCo); provided, that nothing contained herein shall be construed to preclude PubCo from satisfying its
obligations with respect to a Redemption by delivery of cash pursuant to a Cash Election or shares of Class A Common Stock that are held in the treasury of PubCo. PubCo covenants that all shares of Class A Common Stock that shall be issued
upon a Redemption shall, upon issuance thereof, be validly issued, fully paid and non-assessable. In addition, for so long as the shares of Class A Common Stock are listed on a National Securities
Exchange, PubCo shall use its reasonable best efforts to cause all shares of Class A Common Stock issued upon a Redemption to be listed on such National Securities Exchange at the time of such issuance. 


 

	 	(e)	The issuance of shares of Class A Common Stock upon a Redemption shall be made without charge to the Redeeming Member for any stamp or other similar tax in respect of such issuance; provided, however,
that if any such shares of Class A Common Stock are to be issued in a name other than that of the Redeeming Member, then the Person or Persons in whose name the shares are to be issued shall pay to PubCo the amount of any tax that may be
payable in respect of any transfer involved in such issuance or shall establish to the reasonable satisfaction of PubCo that such tax has been paid or is not payable. 


 

	 	(f)	 Notwithstanding anything to the contrary in this Section 4.6, but subject to
Section 4.6(g), a Redeeming Member shall be deemed to have offered to sell its 



  
 24 









	 	
Units as described in the Redemption Notice to PubCo, and PubCo may, in its sole discretion, by means of delivery of a Call Election Notice in accordance with, and subject to the terms of, this
Section 4.6(f), elect to purchase directly and acquire such Units (together with the transfer and surrender of the same number of shares of Class B Common Stock) on the Redemption Date by paying to the Redeeming Member
(or, on the Redeeming Member’s written order, its designee) that number of shares of Class A Common Stock the Redeeming Member (or its designee) would otherwise receive pursuant to Section 4.6(a)(i) or, at
PubCo’s election, an amount of cash equal to the Cash Election Amount of such shares of Class A Common Stock (the “Call Right”), whereupon PubCo shall acquire the Units offered for redemption by the Redeeming Member
(together with the transfer and surrender of the same number of shares of Class B Common Stock to PubCo for cancellation). PubCo shall be treated for all purposes of this Agreement as the owner of such Units; provided that if PubCo funds
the Cash Election Amount other than through the issuance of shares of Class A Common Stock, such Units will be reclassified into another Equity Security of the Company if the Managing Member determines such reclassification is necessary.


  

	 	(i)	PubCo may, at any time prior to the Redemption Date, in its sole discretion deliver written notice (a “Call Election Notice”) to the Company and the Redeeming Member setting forth its election to
exercise its Call Right. A Call Election Notice may be revoked by PubCo at any time; provided that any such revocation does not prejudice the ability of the parties to consummate a Redemption on the Redemption Date. Except as otherwise
provided by this Section 4.6(f), an exercise of the Call Right shall be consummated pursuant to the same timeframe and in the same manner as the relevant Redemption would have been consummated if PubCo had not delivered a
Call Election Notice. 

  

	 	(g)	 In connection with a PubCo Change of Control, PubCo shall have the right to require each Member (other than PubCo
and its wholly owned Subsidiaries) to effect a Redemption of some or all of such Member’s Units (together with the transfer and surrender of the same number of shares of Class B Common Stock); provided that a Cash Election shall not
be permitted pursuant to such a Redemption under this Section 4.6(g). Any Redemption pursuant to this Section 4.6(g) shall be effective immediately prior to the consummation of the PubCo Change of Control (and, for the
avoidance of doubt, shall not be effective if such PubCo Change of Control is not consummated) (the “Change of Control Redemption Date”). From and after the Change of Control Redemption Date, (i) the Units and shares of
Class B Common Stock subject to such Redemption shall be deemed to be transferred to PubCo on the Change of Control Redemption Date and (ii) such Member shall cease to have any rights with respect to the Units and shares of Class B
Common Stock subject to such Redemption (other than the right to receive shares of Class A Common Stock pursuant to such Redemption). PubCo shall provide written notice of an expected PubCo Change of Control to all Members within the earlier of
(x) five (5) Business Days following the execution of the agreement with respect to such PubCo Change of Control and (y) ten (10) 



  
 25 









	 	
Business Days before the proposed date upon which the contemplated PubCo Change of Control is to be effected, indicating in such notice such information as may reasonably describe the PubCo
Change of Control transaction, subject to applicable law, including the date of execution of such agreement or such proposed effective date, as applicable, the amount and types of consideration to be paid for shares of Class A Common Stock in
the PubCo Change of Control, any election with respect to types of consideration that a holder of shares of Class A Common Stock, as applicable, shall be entitled to make in connection with such PubCo Change of Control, and the number of Units
(and corresponding shares of Class B Common Stock) held by such Member that PubCo intends to require to be subject to such Redemption. Following delivery of such notice and on or prior to the Change of Control Redemption Date, the Members shall
take all actions reasonably requested by PubCo to effect such Redemption, including taking any action and delivering any document required pursuant to the remainder of this Section 4.6 to effect a Redemption.


  

	 	(h)	No Redemption shall impair the right of the Redeeming Member to receive any distributions payable on the Units redeemed pursuant to such Redemption in respect of a record date that occurs prior to the Redemption Date
for such Redemption. For the avoidance of doubt, no Redeeming Member, or a Person designated by a Redeeming Member to receive shares of Class A Common Stock, shall be entitled to receive, with respect to such record date, distributions or
dividends both on Units redeemed by the Company from such Redeeming Member and on shares of Class A Common Stock received by such Redeeming Member, or other Person so designated, if applicable, in such Redemption. 


 

	 	(i)	Any Units acquired by the Company under this Section 4.6 and transferred by the Company to PubCo shall remain outstanding and shall not be cancelled as a result of their acquisition by the
Company. Notwithstanding any other provision of this Agreement, PubCo shall be automatically admitted as a Member of the Company with respect to any Units or other Equity Securities in the Company it receives under this Agreement (including under
this Section 4.6 in connection with any Redemption). 

  

	 	(j)	 The Managing Member may impose additional limitations and restrictions on Redemptions (including limiting
Redemptions), to the extent it determines, as a result of a change in law or administrative guidance, in good faith based on advice of counsel, such limitations and restrictions to be reasonably necessary to avoid the Company being classified as a
“publicly traded partnership” within the meaning of Section 7704 of the Code. Furthermore, the Managing Member may require any Member or group of Members to redeem all of their Units to the extent it determines, as a result of a
change in law or administrative guidance, in good faith based on advice of counsel, that such Redemption is reasonably necessary to avoid the Company being classified as a “publicly traded partnership” within the meaning of
Section 7704 of the Code. Upon delivery of any notice by the Managing Member to such Member or group of Members requiring such Redemption, such Member or group of Members shall exchange,




  
 26 









	 	
subject to exercise by PubCo of its Call Right pursuant to Section 4.6(f)(i), all of their Units effective as of the date specified in such notice (and such date shall
be deemed to be a Redemption Date for purposes of this Agreement) in accordance with this Section 4.6 and otherwise in accordance with the requirements set forth in such notice. 


ARTICLE V 
 ALLOCATIONS
OF PROFITS AND LOSSES 
 Section 5.1    Profits and Losses. After giving effect to the
allocations under Section 5.2 and subject to Section 5.4, Profits and Losses (and, to the extent determined by the Managing Member to be necessary and appropriate to achieve the resulting Capital
Account balances described below, any allocable items of income, gain, loss, deduction or credit includable in the computation of Profits and Losses) for each Fiscal Year or other taxable period shall be allocated among the Members during such
Fiscal Year or other taxable period in a manner such that, after giving effect to the special allocations set forth in Section 5.2 and all distributions through the end of such Fiscal Year or other taxable period, the
Capital Account balance of each Member, immediately after making such allocation, is, as nearly as possible, equal to (i) the amount such Member would receive pursuant to Section 11.3(b) if all assets of the Company on
hand at the end of such Fiscal Year or other taxable period were sold for cash equal to their Gross Asset Values, all liabilities of the Company were satisfied in cash in accordance with their terms (limited with respect to each nonrecourse
liability to the Gross Asset Value of the assets securing such liability), and all remaining or resulting cash was distributed, in accordance with Section 11.3(b), to the Members immediately after making such allocation,
minus (ii) such Member’s share of Company Minimum Gain and Member Minimum Gain, computed immediately prior to the hypothetical sale of assets, and the amount any such Member is treated as obligated to contribute to the Company,
computed immediately after the hypothetical sale of assets. 
 Section 5.2    Special Allocations.

  

	 	(a)	Nonrecourse Deductions for any Fiscal Year or other taxable period shall be specially allocated to the Members under any method determined by the Managing Member to be appropriate and in accordance with the applicable
Treasury Regulations. The amount of Nonrecourse Deductions for a Fiscal Year or other taxable period shall equal the excess, if any, of the net increase, if any, in the amount of Company Minimum Gain during that Fiscal Year or other taxable period
over the aggregate amount of any distributions during that Fiscal Year or other taxable period of proceeds of a Nonrecourse Liability that are allocable to an increase in Company Minimum Gain, determined in accordance with the provisions of Treasury
Regulations Section 1.704-2(d). 

  

	 	(b)	 Any Member Nonrecourse Deductions for any Fiscal Year or other taxable period shall be specially allocated to the
Member who bears economic risk of loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable in accordance with Treasury Regulations Section




  
 27 









	 	
1.704-2(i). If more than one Member bears the economic risk of loss for such Member Nonrecourse Debt, the Member Nonrecourse Deductions attributable to
such Member Nonrecourse Debt shall be allocated among the Members according to the ratio in which they bear the economic risk of loss. This Section 5.2(b) is intended to comply with the provisions of Treasury Regulations Section 1.704-2(i) and shall be interpreted consistently therewith. 

  

	 	(c)	Notwithstanding any other provision of this Agreement to the contrary, if there is a net decrease in Company Minimum Gain during any Fiscal Year or other taxable period (or if there was a net decrease in Company Minimum
Gain for a prior Fiscal Year or other taxable period and the Company did not have sufficient amounts of income and gain during prior periods to allocate among the Members under this Section 5.2(c)), each Member shall be
specially allocated items of Company income and gain for such Fiscal Year or other taxable period in an amount equal to such Member’s share of the net decrease in Company Minimum Gain during such year (as determined pursuant to Treasury
Regulations Section 1.704-2(g)(2)). This section is intended to constitute a minimum gain chargeback under Treasury Regulations Section 1.704-2(f) and shall be
interpreted consistently therewith. 

  

	 	(d)	Notwithstanding any other provision of this Agreement except Section 5.2(c), if there is a net decrease in Member Minimum Gain during any Fiscal Year or other taxable period (or if there was a
net decrease in Member Minimum Gain for a prior Fiscal Year or other taxable period and the Company did not have sufficient amounts of income and gain during prior periods to allocate among the Members under this
Section 5.2(d)), each Member shall be specially allocated items of Company income and gain for such year in an amount equal to such Member’s share of the net decrease in Member Minimum Gain (as determined pursuant to
Treasury Regulations Section 1.704-2(i)(4)). This section is intended to constitute a partner nonrecourse debt minimum gain chargeback under Treasury Regulations
Section 1.704-2(i)(4) and shall be interpreted consistently therewith. 

  

	 	(e)	Notwithstanding any provision hereof to the contrary except Section 5.2(a) and Section 5.2(b), no Losses or other items of loss or expense shall be allocated to any
Member to the extent that such allocation would cause such Member to have an Adjusted Capital Account Deficit (or increase any existing Adjusted Capital Account Deficit) at the end of such Fiscal Year or other taxable period. All Losses and other
items of loss and expense in excess of the limitation set forth in this Section 5.2(e) shall be allocated to the Members who do not have an Adjusted Capital Account Deficit in proportion to their relative positive Capital
Accounts but only to the extent that such Losses and other items of loss and expense do not cause any such Member to have an Adjusted Capital Account Deficit. 

  

	 	(f)	 Notwithstanding any provision hereof to the contrary except Section 5.2(c) and
Section 5.2(d), in the event any Member unexpectedly receives any adjustment, allocation or distribution described in paragraph (4), (5) or (6) of Treasury Regulations
Section 1.704-1(b)(2)(ii)(d), items of income and gain (consisting of 



  
 28 









	 	
a pro rata portion of each item of income, including gross income, and gain for the Fiscal Year or other taxable period) shall be specially allocated to such Member in an amount and manner
sufficient to eliminate any Adjusted Capital Account Deficit of that Member as quickly as possible; provided that an allocation pursuant to this Section 5.2(f) shall be made only if and to the extent that such Member would
have an Adjusted Capital Account Deficit after all other allocations provided for in this Article V have been tentatively made as if this Section 5.2(f) were not in this Agreement. This
Section 5.2(f) is intended to constitute a qualified income offset under Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 


 

	 	(g)	If any Member has a deficit balance in its Capital Account at the end of any Fiscal Year or other taxable period that is in excess of the sum of (i) the amount that such Member is obligated to restore and
(ii) the amount that the Member is deemed to be obligated to restore pursuant to the penultimate sentence of Treasury Regulations Sections 1.704-2(g)(1) and (i)(5), that Member shall be specially
allocated items of Company income and gain in the amount of such excess as quickly as possible, provided that an allocation pursuant to this Section 5.2(g) shall be made only if and to the extent that such Member would have
a deficit balance in its Capital Account in excess of such sum after all other allocations provided for in this Article V have been made as if Section 5.2(f) and this Section 5.2(g) were not
in this Agreement. 

  

	 	(h)	To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Sections 734(b) or 743(b) is required, pursuant to Treasury Regulations
Section 1.704-1(b)(2)(iv)(m)(2) or 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as a result of a distribution to
any Member in complete liquidation of such Member’s Interest in the Company, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the
adjustment decreases such basis) and such item of gain or loss shall be allocated to the Members in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) if such section applies or
to the Member to whom such distribution was made if Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies. 


 

	 	(i)	The allocations set forth in Sections 5.2(a) through 5.2(h) (the “Regulatory Allocations”) are intended to comply with certain requirements of Treasury Regulations Sections 1.704-1(b) and 1.704-2. Notwithstanding any other provision of this Article V (other than the Regulatory Allocations), the Regulatory Allocations (and anticipated
future Regulatory Allocations) shall be taken into account in allocating other items of income, gain, loss and deduction among the Members so that, to the extent possible, the net amount of such allocation of other items and the Regulatory
Allocations to each Member should be equal to the net amount that would have been allocated to each such Member if the Regulatory Allocations had not occurred. This Section 5.2(i) is intended to minimize to the extent
possible and to the extent necessary any economic distortions which may result from application of the Regulatory Allocations and shall be interpreted in a manner consistent therewith. 


  
 29 








 Section 5.3    Allocations for Tax Purposes in General.

  

	 	(a)	Except as otherwise provided in this Section 5.3, each item of income, gain, loss and deduction of the Company for U.S. federal income tax purposes shall be allocated among the Members in the
same manner as such item is allocated under Sections 5.1 and 5.2. 

  

	 	(b)	In accordance with Code Section 704(c) and the Treasury Regulations thereunder (including the Treasury Regulations applying the principles of Code Section 704(c) to changes in Gross Asset Values), items
of income, gain, loss and deduction with respect to any Company property having a Gross Asset Value that differs from such property’s adjusted U.S. federal income tax basis shall, solely for U.S. federal income tax purposes, be allocated among
the Members to account for any such difference using such method or methods determined by the Managing Member to be appropriate and in accordance with the applicable Treasury Regulations; provided that the Managing Member will use the
“traditional method with curative allocations,” with the curative allocations applied only to sale gain, under Treasury Regulations Section 1.704-3(c) or, if determined by the Managing Member to
be appropriate, the “traditional method” under Treasury Regulations Section 1.704-3(b), in each case with respect to the assets owned by the Company at the time of the IPO. 


 

	 	(c)	Any (i) recapture of depreciation or any other item of deduction shall be allocated, in accordance with Treasury Regulations Sections 1.1245-1(e) and 1.1254-5, to the Members who received the benefit of such deductions, and (ii) recapture of grants credits shall be allocated to the Members in accordance with applicable law. 


 

	 	(d)	Allocations pursuant to this Section 5.3 are solely for purposes of U.S. 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 share of Profits, Losses, other items or distributions pursuant to any provision of this Agreement. 

  

	 	(e)	If, as a result of an exercise of a noncompensatory option to acquire an interest in the Company, a Capital Account reallocation is required under Treasury Regulations
Section 1.704-1(b)(2)(iv)(s)(3), the Company shall make corrective allocations pursuant to Treasury Regulations Section 1.704-1(b)(4)(x).


 Section 5.4    Other Allocation Rules. 

 

	 	(a)	The Members are aware of the income tax consequences of the allocations made by this Article V and the economic impact of the allocations on the amounts receivable by them under this Agreement. The Members hereby
agree to be bound by the provisions of this Article V in reporting their share of Company income and loss for income tax purposes. 


  
 30 









	 	(b)	The provisions regarding the establishment and maintenance for each Member of a Capital Account as provided by Section 4.4 and the allocations set forth in Sections 5.1, 5.2 and
5.3 are intended to comply with the Treasury Regulations and to reflect the intended economic entitlement of the Members. If the Managing Member determines in good faith that the application of the provisions in Sections 4.4,
5.1, 5.2 or 5.3 would result in non-compliance with the Treasury Regulations or would be inconsistent with the intended economic entitlement of the Members, the Managing Member is
authorized to make any appropriate adjustments to such provisions. 

  

	 	(c)	All items of income, gain, loss, deduction and credit allocable to an interest in the Company that may have been Transferred shall be allocated between the Transferor and the Transferee based on the portion of the
Fiscal Year or other taxable period during which each was recognized as the owner of such interest, without regard to the results of Company operations during any particular portion of that year and without regard to whether cash distributions were
made to the Transferor or the Transferee during that year; provided, however, that this allocation must be made in accordance with a method permissible under Code Section 706 and the Treasury Regulations thereunder. 


 

	 	(d)	The Members’ proportionate shares of the “excess nonrecourse liabilities” of the Company, within the meaning of Treasury Regulations Section 1.752-3(a)(3),
shall be allocated to the Members in proportion to the Units held by each Member. 

 ARTICLE VI 

DISTRIBUTIONS 

Section 6.1    Distributions. 
  


	 	(a)	 Distributions. To the extent permitted by applicable Law and hereunder, and except as otherwise provided
in Section 11.3, distributions to Members may be declared by the Managing Member out of funds legally available therefor in such amounts and on such terms (including the payment dates of such distributions) as the Managing
Member shall determine using such record date as the Managing Member may designate; any such distribution shall be made to the Members as of the close of business on such record date on a pro rata basis (except that, for the avoidance of
doubt, repurchases or redemptions made in accordance with Section 4.1(f) or payments made in accordance with Sections 7.4 or 7.9 need not be on a pro rata basis), in accordance with the number of Units owned
by each Member as of the close of business on such record date; provided, however, that the Managing Member shall have the obligation to make distributions as set forth in Sections 6.2 and 11.3(b)(iii); and
provided, further, that, notwithstanding any 



  
 31 









	 	
other provision herein to the contrary, no distributions shall be made to any Member to the extent such distribution would render the Company insolvent or violate the Act. For purposes of the
foregoing sentence, insolvency means the inability of the Company to meet its payment obligations when due. Promptly following the designation of a record date and the declaration of a distribution pursuant to this
Section 6.1, the Managing Member shall give notice to each Member of the record date, the amount and the terms of the distribution and the payment date thereof. 


 

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

  

	 	(c)	Distributions In-Kind. Except as otherwise provided in this Agreement, any distributions may be made in cash or in kind, or partly in cash and partly in kind, as determined
by the Managing Member. To the extent that the Company distributes property in-kind to the Members, the Company shall be treated as making a distribution equal to the Fair Market Value of such property for
purposes of Section 6.1(a) and such property shall be treated as if it were sold for an amount equal to its Fair Market Value. Any resulting gain or loss shall be allocated to the Member’s Capital Accounts in
accordance with Sections 5.1 and 5.2. 

 Section 6.2    Tax-Related Distributions. 
  

	 	(a)	On each Tax Distribution Date, the Company will, subject any restrictions contained in any credit agreement with a non-Affiliated lender to which the Company is bound, make
distributions out of legally available funds to all Members pro rata, in accordance with the number of Units owned by each Member, in an amount sufficient to cause PubCo to receive a distribution equal to the sum of (x) all of
PubCo’s federal, state, local and non-U.S. tax liabilities and (y) the amount necessary to satisfy PubCo’s obligations pursuant to the Tax Receivable Agreements, in each case during the Fiscal
Year or other taxable period to which the tax-related distribution under this Section 6.2(a) relates. 


 

	 	(b)	 If a Member (other than PubCo) has an Assumed Tax Liability at a Tax Distribution Date in excess of the sum of
the amount of distributions made to such Member under Section 6.1(a), Section 6.2(a) and advances made under this Section 6.2(b), in each case, in the relevant Fiscal Year or other taxable
period plus 50 percent of any payments received by such Member from PubCo pursuant to the Tax Receivable Agreements in the relevant Fiscal Year or other taxable period, the Company shall, to the extent permitted by applicable Law, and subject
to the legal availability of funds and any restrictions contained in any credit agreement with a non-Affiliated lender to which the Company is bound, make advances to such Member in an amount equal to such
excess (a “Tax Advance”). Any such Tax Advance shall be treated as an advance against and, thus, shall 



  
 32 









	 	
reduce (without duplication), any future distributions that would otherwise be made to such Member pursuant to Sections 6.1(a) and 11.3(b)(iii). If there is a Tax Advance
outstanding with respect to a Member (i) who elects to participate in a Redemption (including, for the avoidance of doubt, any sale of such Units pursuant to the Call Right at the option of PubCo pursuant to
Section 4.6(f)), (ii) whose Units are redeemed at the option of PubCo upon a PubCo Change of Control pursuant to Section 4.6(g), or (iii) who Transfers Units pursuant to the provisions of
Article IX, then in each case such Member shall indemnify and hold harmless the Company against such Tax Advance, and shall be required to promptly pay to the Company (but in all events within fifteen (15) days after the Redemption Date,
Change of Control Redemption Date or Transfer Date, as the case may be) an amount of cash equal to the proportionate share of such Tax Advance relating to its Units subject to the Redemption or Transfer (determined at the time of the Redemption or
Transfer based on the number of Units subject to the Redemption or Transfer as compared to the total number of Units held by such Member), provided that, (x) in the case of a Transfer described in clause (ii), in lieu of paying such
amount in cash, such Member, at its option, can elect to forego such number of shares of Class A Common Stock it would be otherwise entitled to receive pursuant to such Redemption upon a PubCo Change of Control having a value based on the
consideration paid in such PubCo Change of Control (as reasonably determined by the Board) equal to the proportionate share of such Tax Advance relating to its Units subject to such Redemption, provided, however, that in such case, the Company shall
cancel a number of Units held by PubCo equal to the number of foregone shares of Class A Common Stock, and (y) in the case of a Transfer described in clause (iii), such Member shall not be required to pay such amount of cash equal
to the proportionate share of such Tax Advance relating to its Units subject to the Transfer, if the transferee is either a Permitted Transferee or such Transfer is otherwise approved by the Managing Member (such approval not to be unreasonably
withheld) and the transferee agrees to assume the Member’s obligation to repay to the Company such amount equal to the proportionate share of the Member’s existing Tax Advance relating to such Units subject to the Transfer, and such Member
shall be relieved from any liabilities associated with and the obligation to repay its existing Tax Advance relating to such Units subject to the Transfer. The obligations of each Member pursuant to the preceding sentence shall survive the
withdrawal of any Member or the transfer of any Member’s Units and shall apply to any current or former Member. For the avoidance of doubt, any repayment of a Tax Advance pursuant to the previous sentence shall not be treated as a Capital
Contribution. 

 Section 6.3    Distribution Upon Withdrawal. No withdrawing Member
shall be entitled to receive any distribution or the value of such Member’s Interest in the Company as a result of withdrawal from the Company prior to the liquidation of the Company, except as specifically provided in this Agreement. 

  
 33 








 ARTICLE VII 

MANAGEMENT 

Section 7.1    The Managing Member; Fiduciary Duties. 

 

	 	(a)	PubCo shall be the sole Managing Member of the Company. Except as otherwise required by Law, (i) the Managing Member shall have full and complete charge of all affairs of the Company, (ii) the management and
control of the Company’s business activities and operations shall rest exclusively with the Managing Member, and the Managing Member shall make all decisions regarding the business, activities and operations of the Company (including the
incurrence of costs and expenses) in its sole discretion without the consent of any other Member and (iii) the Members other than the Managing Member (in their capacity as such) shall not participate in the control, management, direction or
operation of the activities or affairs of the Company and shall have no power to act for or bind the Company. 

  

	 	(b)	In connection with the performance of its duties as the Managing Member of the Company, except as otherwise set forth herein, the Managing Member acknowledges that it will owe to the Members the same fiduciary duties as
it would owe to the Company and the stockholders of a Delaware corporation if the Company were a Delaware corporation and the Managing Member was a member of the board of directors of such a corporation and the Members were stockholders of such
corporation. The Members acknowledge that the Managing Member will take action through its board of directors, and that the members of the Managing Member’s board of directors will owe comparable fiduciary duties to the stockholders of the
Managing Member. 

 Section 7.2    Officers. 

 

	 	(a)	The Managing Member may appoint, employ or otherwise contract with any Person for the transaction of the business of the Company or the performance of services for or on behalf of the Company, and the Managing Member
may delegate to any such Persons such authority to act on behalf of the Company as the Managing Member may from time to time deem appropriate. 

  

	 	(b)	The initial president and chief executive officer of the Company (the “President and Chief Executive Officer”) will be Christopher A. Wright. 


 

	 	(c)	 Except as otherwise set forth herein, the President and Chief Executive Officer will be responsible for the
general and active management of the business of the Company and its Subsidiaries and will see that all orders of the Managing Member are carried into effect. The President and Chief Executive Officer will report to the Managing Member and have the
general powers and duties of management usually vested in the office of president and chief executive officer of a corporation organized under the DGCL, subject to the terms of this




  
 34 









	 	
Agreement, and will have such other powers and duties as may be prescribed by the Managing Member or this Agreement. The President and Chief Executive Officer will have the power to execute
bonds, mortgages and other contracts requiring a seal, under the seal of the Company, except where required or permitted by Law to be otherwise signed and executed, and except where the signing and execution thereof will be expressly delegated by
the Managing Member to some other Officer or agent of the Company. 

  

	 	(d)	Except as set forth herein, the Managing Member may appoint Officers at any time, and the Officers may include one or more vice presidents, a secretary, one or more assistant secretaries, a chief financial officer, a
general counsel, a treasurer, one or more assistant treasurers, a chief operating officer, an executive chairman, and any other officers that the Managing Member deems appropriate. Except as set forth herein, the Officers will serve at the pleasure
of the Managing Member, subject to all rights, if any, of such Officer under any contract of employment. Any individual may hold any number of offices, and an Officer may, but need not, be a Member of the Company. The Officers will exercise such
powers and perform such duties as specified in this Agreement or as determined from time to time by the Managing Member. 

  

	 	(e)	Subject to this Agreement and to the rights, if any, of an Officer under a contract of employment, any Officer may be removed, either with or without cause, by the Managing Member. Any Officer may resign at any time by
giving written notice to the Managing Member. Any resignation will take effect at the date of the receipt of that notice or at any later time specified in that notice; and, unless otherwise specified in that notice, the acceptance of the resignation
will not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Company under any contract to which the Officer is a party. A vacancy in any office because of death, resignation, removal,
disqualification or any other cause will be filled in the manner prescribed in this Agreement for regular appointments to that office. 


Section 7.3    Warranted Reliance by Officers on Others. In exercising their authority and performing
their duties under this Agreement, the Officers shall be entitled to rely on information, opinions, reports, or statements of the following Persons or groups unless they have actual knowledge concerning the matter in question that would cause such
reliance to be unwarranted: 
  

	 	(a)	one or more employees or other agents of the Company or subordinates whom the Officer reasonably believes to be reliable and competent in the matters presented; and 


 

	 	(b)	any attorney, public accountant, or other Person as to matters which the Officer reasonably believes to be within such Person’s professional or expert competence. 


Section 7.4    Indemnification. Subject to the limitations and conditions provided in this
Section 7.4, each Person who was or is made a party or is threatened to be made a party to or 

  
 35 








 
is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or arbitrative (each, a “Proceeding”), or any
appeal in such a Proceeding or any inquiry or investigation that could lead to such a Proceeding, by reason of the fact he, she or it, or a Person of which he, she or it is the legal representative, is or was a Member, an executive officer, or
acting as the, Managing Member, Tax Matters Member or Company Representative of the Company, in each case, shall be indemnified by the Company to the fullest extent permitted by applicable Law, as the same exists or may hereafter be amended (but, in
the case of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than such Law permitted the Company to provide prior to such amendment) against all judgment, penalties (including
excise and similar taxes and punitive damages), fines, settlement and reasonable expenses (including reasonable attorneys’ fees and expenses) actually incurred by such Person in connection with such Proceeding, appeal, inquiry or investigation,
if such Person acted in Good Faith; provided, that the foregoing shall not require the Company to indemnify or advance expenses to any Person in connection with any Proceeding initiated by or on behalf of such Person or any counterclaim
against the Company or the Managing Member initiated by or on behalf of such Person. Reasonable expenses incurred by a Person of the type entitled to be indemnified under this Section 7.4 who was, is or is threatened to be
made a named defendant or respondent in a Proceeding shall be paid by the Company in advance of the final disposition of the Proceeding upon receipt of an undertaking by or on behalf of such Person to repay such amount if it shall ultimately be
determined that he, she or it is not entitled to be indemnified by the Company. Indemnification under this Section 7.4 shall continue as to a Person who has ceased to serve in the capacity which initially entitled such
Person to indemnity hereunder. The rights granted pursuant to this Section 7.4 shall be deemed contract rights, and no amendment, modification or repeal of this Section 7.4 shall have the effect of
limiting or denying any such rights with respect to actions taken or Proceedings, appeals, inquiries or investigations arising prior to any amendment, modification or repeal. It is expressly acknowledged that the indemnification provided in this
Section 7.4 could involve indemnification for negligence or under theories of strict liability. Anything herein to the contrary notwithstanding, any indemnity by the Company relating to the matters covered in this
Section 7.4 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 of 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. 

Section 7.5    Maintenance of Insurance or Other Financial Arrangements. In compliance with applicable
Law, the Company (with the approval of the Managing Member) may purchase and maintain insurance or make other financial arrangements on behalf of any Person who is or was a Member, employee or agent of the Company, or at the request of the Company
is or was serving as a manager, director, officer, employee or agent of another limited liability company, corporation, partnership, joint venture, trust or other enterprise, for any Liability asserted against such Person and Liability and expenses
incurred by such Person in such Person’s capacity as such, or arising out of such Person’s status as such, whether or not the Company has the authority to indemnify such Person against such Liability and expenses. 

Section 7.6    Resignation or Termination of Managing Member. PubCo shall not, by any means, resign as,
cease to be or be replaced as Managing Member except in compliance 

  
 36 








 
with this Section 7.6. No termination or replacement of PubCo as Managing Member shall be effective unless proper provision is made, in compliance with this Agreement,
so that the obligations of PubCo, its successor (if applicable) and any new Managing Member and the rights of all Members under this Agreement and applicable Law remain in full force and effect. No appointment of a Person other than PubCo (or its
successor, as applicable) as Managing Member shall be effective unless PubCo (or its successor, as applicable) and the new Managing Member (as applicable) provide all other Members with contractual rights, directly enforceable by such other Members
against PubCo (or its successor, as applicable) and the new Managing Member (as applicable), to cause (a) PubCo to comply with all PubCo’s obligations under this Agreement (including its obligations under
Section 4.6) other than those that must necessarily be taken in its capacity as Managing Member and (b) the new Managing Member to comply with all the Managing Member’s obligations under this Agreement. 

Section 7.7    No Inconsistent Obligations. The Managing Member represents that it does not have any
contracts, other agreements, duties or obligations that are inconsistent with its duties and obligations (whether or not in its capacity as Managing Member) under this Agreement and covenants that, except as permitted by
Section 7.1, it will not enter into any contracts or other agreements or undertake or acquire any other duties or obligations that are inconsistent with such duties and obligations. 

Section 7.8    Reclassification Events of PubCo. If a Reclassification Event occurs, the Managing
Member or its successor, as the case may be, shall, as and to the extent necessary, amend this Agreement in compliance with Section 12.1, and enter into any necessary supplementary or additional agreements, to ensure that,
following the effective date of the Reclassification Event: (i) the redemption rights of holders of Units set forth in Section 4.6 provide that each Unit (together with the transfer and surrender of one share of
Class B Stock) is redeemable for the same amount and same type of property, securities or cash (or combination thereof) that one share of Class A Common Stock becomes exchangeable for or converted into as a result of the Reclassification
Event and (ii) PubCo or the successor to PubCo, as applicable, is obligated to deliver such property, securities or cash upon such redemption. PubCo shall not consummate or agree to consummate any Reclassification Event unless the successor
Person, if any, becomes obligated to comply with the obligations of PubCo (in whatever capacity) under this Agreement. 

Section 7.9    Certain Costs and Expenses. The Company shall (i) pay, or cause to be paid, all
costs, fees, operating expenses and other expenses of the Company (including the costs, fees and expenses of attorneys, accountants or other professionals and the compensation of all personnel providing services to the Company) incurred in pursuing
and conducting, or otherwise related to, the activities of the Company, and (ii) in the sole discretion of the Managing Member, reimburse the Managing Member for any costs, fees or other expenses incurred by it in connection with serving as the
Managing Member. To the extent that the Managing Member determines in its sole discretion that such expenses are related to the business and affairs of the Managing Member that are conducted through the Company and/or its Subsidiaries (including
expenses that relate to the business and affairs of the Company and/or its Subsidiaries and that also relate to other activities of the Managing Member), the Managing Member may cause the Company to pay or bear all expenses of the Managing Member,
including, without limitation, costs of securities offerings not borne directly by members, board of directors compensation and 

  
 37 








 
meeting costs, costs of periodic reports to its stockholders, litigation costs and damages arising from litigation, accounting and legal costs; provided that the Company shall not pay or
bear any income tax obligations of the Managing Member. In the event that (i) shares of Class A Stock or other Equity Securities of PubCo were sold to underwriters in any public offering after the Effective Time, in each case, at a price
per share that is lower than the price per share for which such shares of Class A Stock or other Equity Securities of PubCo are sold to the public in such public offering after taking into account underwriters’ discounts or commissions and
brokers’ fees or commissions (including, for the avoidance of doubt, any deferred discounts or commissions and brokers’ fees or commissions payable in connection with or as a result of such public offering) (such difference, the
“Discount”) and (ii) the proceeds from such public offering are used to fund the Cash Election Amount for any redeemed Units or otherwise contributed to the Company, the Company shall reimburse the Managing Member for
such Discount by treating such Discount as an additional Capital Contribution made by the Managing Member to the Company, issuing Units in respect of such deemed Capital Contribution in accordance with Section 4.6(b)(ii),
and increasing the Managing Member’s Capital Account by the amount of such Discount. For the avoidance of doubt, any payments made to or on behalf of the Managing Member pursuant to this Section 7.9 shall not be
treated as a distribution pursuant to Section 6.1(a) but shall instead be treated as an expense of the Company. 

ARTICLE VIII 
 ROLE OF
MEMBERS 
 Section 8.1    Rights or Powers. Other than the Managing Member, the Members, acting
in their capacity as Members, shall not have any right or power to take part in the management or control of the Company or its business and affairs or to act for or bind the Company in any way. Notwithstanding the foregoing, the Members have all
the rights and powers specifically set forth in this Agreement and, to the extent not inconsistent with this Agreement, in the Act. A Member, any Affiliate thereof or an employee, stockholder, agent, director or officer of a Member or any Affiliate
thereof, may also be an employee or be retained as an agent of the Company. The existence of these relationships and acting in such capacities will not result in the Member (other than the Managing Member) being deemed to be participating in the
control of the business of the Company or otherwise affect the limited liability of the Member. Except as specifically provided herein, no Member (other than the Managing Member) shall, in its capacity as a Member, take part in the operation,
management or control of the Company’s business, transact any business in the Company’s name or have the power to sign documents for or otherwise bind the Company. 

Section 8.2    Voting. 
  

	 	(a)	 Meetings of the Members may be called upon the written request of Members holding at least 50% of the outstanding
Units. Such request shall state the location of the meeting and the nature of the business to be transacted at the meeting. Written notice of any such meeting shall be given to all Members not less than two Business Days and not more than 30 days
prior to the date of such meeting. Members may vote in person, by proxy or by telephone at any meeting of the Members and may waive advance notice of such meeting. Whenever the 



  
 38 









	 	
vote or consent of Members is permitted or required under this Agreement, such vote or consent may be given at a meeting of the Members or may be given in accordance with the procedure prescribed
in this Section 8.2. Except as otherwise expressly provided in this Agreement, the affirmative vote of the Members holding a majority of the outstanding Units shall constitute the act of the Members. 


 

	 	(b)	Each Member may authorize any Person or Persons to act for it by proxy on all matters in which such Member is entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting.
Every proxy must be signed by such Member or its attorney-in-fact. No proxy shall be valid after the expiration of 11 months from the date thereof unless otherwise
provided in the proxy. Every proxy shall be revocable at the pleasure of the Member executing it. 

  

	 	(c)	Each meeting of Members shall be conducted by an Officer designated by the Managing Member or such other individual Person as the Managing Member deems appropriate. 


 

	 	(d)	Any action required or permitted to be taken by the Members may be taken without a meeting if the requisite Members whose approval is necessary consent thereto in writing. 


Section 8.3    Various Capacities. The Members acknowledge and agree that the Members or their
Affiliates will from time to time act in various capacities, including as a Member and as the Tax Matters Member or Company Representative. 

Section 8.4    Investment Opportunities. To the fullest extent permitted by applicable law, the
doctrine of corporate opportunity, or any analogous doctrine, shall not apply to any Member (other than Members who are officers or employees of the Company, PubCo or any of their respective subsidiaries), any of their respective affiliates (other
than the Company, the Managing Member or any of their respective subsidiaries), or any of their respective officers, directors, agents, shareholders, members, and partners (each, a “Business Opportunities Exempt
Party”). The Company renounces any interest or expectancy of the Company in, or in being offered an opportunity to participate in, business opportunities that are from time to time presented to any Business Opportunities Exempt
Party. No Business Opportunities Exempt Party who acquires knowledge of a potential transaction, agreement, arrangement or other matter that may be an opportunity for the Company or any of its subsidiaries shall have any duty to communicate or
offer such opportunity to the Company. No amendment or repeal of this Section 8.4 shall apply to or have any effect on the liability or alleged liability of any Business Opportunities Exempt Party for or with respect
to any opportunities of which any such Business Opportunities Exempt Party becomes aware prior to such amendment or repeal. Any Person purchasing or otherwise acquiring any interest in any Units shall be deemed to have notice of and consented
to the provisions of this Section 8.4. Neither the alteration, amendment or repeal of this Section 8.4, nor the adoption of any provision of this Agreement inconsistent with this
Section 8.4, shall eliminate or reduce the effect of this Section 8.4 in respect of any business opportunity first identified or any other matter occurring, or any cause of action, suit or claim
that, but for this Section 8.4, would accrue or arise, prior to such alteration, amendment, repeal or 

  
 39 








 
adoption. Notwithstanding the foregoing, a Business Opportunities Exempt Party who is an officer or employee of PubCo and who is offered a business opportunity of PubCo reasonably determined by
the party receiving the opportunity to be expressly in his or her capacity as an officer or employee of PubCo shall be obligated to communicate and offer such business opportunity to PubCo. 

ARTICLE IX 
 TRANSFERS
OF INTERESTS 
 Section 9.1    Restrictions on Transfer. 

 

	 	(a)	 Except as provided in Section 4.6 and except for the Transfers by a Member to Permitted
Transferee, no Member shall Transfer all or any portion of its Interest without the Managing Member’s prior written consent, which consent shall be granted or withheld in the Managing Member’s sole discretion; provided that to the extent
that the Managing Member determines in good faith that a proposed transfer would not have the effect contemplated by Section 9.1(b), then the Managing Member will not withhold its consent to a transfer by any Member, individually or
collectively with one or more other Members, that would result in the Transferee, together with its Affiliates, holding at least 10% of the Units not held by the Managing Member. If, notwithstanding the provisions of this
Section 9.1(a), all or any portion of a Member’s Interests are Transferred in violation of this Section 9.1(a), involuntarily, by operation of law or otherwise, then without limiting any other
rights and remedies available to the other parties under this Agreement or otherwise, the Transferee of such Interest (or portion thereof) shall not be admitted to the Company as a Member or be entitled to any rights as a Member hereunder, and the
Transferor will continue to be bound by all obligations hereunder, unless and until the Managing Member consents in writing to such admission, which consent shall be granted or withheld in the Managing Member’s sole discretion. Any attempted or
purported Transfer of all or a portion of a Member’s Interests in violation of this Section 9.1(a) shall be null and void and of no force or effect whatsoever. For the avoidance of doubt, the restrictions on Transfer
contained in this Article IX shall not apply to the Transfer of any capital stock of the Managing Member; provided that no shares of Class B Common Stock may be Transferred unless a corresponding number of Units are Transferred
therewith in accordance with this Agreement. The Company intends to satisfy the private placement safe-harbor in Treasury Regulation Section 1.7704-1(h) and intends to limit issuances of Interests and to
limit Transfers of Interest to satisfy the requirement in Treasury Regulation Section 1.7704-1(h)(ii). In furtherance of the foregoing and notwithstanding the foregoing provisions in this paragraph, the
Interests held by each person who is a Member at the time of the IPO (including the Interests held by each person who is a Member at the time of the IPO that has been transferred to any successive Transferee) shall not be permitted to be Transferred
to a Permitted Transferee if such Interests would be held by more than four (4) “partners” for purposes of calculating the number of “partners” in the Company under Treasury Regulation
Section 1.7704-1(h)(ii) 



  
 40 









	 	
immediately after a proposed Permitted Transfer unless the Managing Member provides its consent to such Transfer, which consent shall be granted or withheld in the Managing Member’s sole
discretion. Notwithstanding anything to the contrary in this Agreement, the Managing Member shall limit the issuances of Interests after the IPO and limit its consent to Transfers so that the Interests held by each person who is a Member immediately
after the IPO (including any successive Transferee of each such Interest) is able to be held by up to four “partners” in the Company in connection with the Company satisfying the private placement safe-harbor under Treasury Regulation Section 1.7704-1(h). 

  

	 	(b)	In addition to any other restrictions on Transfer herein contained, including the provisions of this Article IX, in no event may any Transfer or assignment of Interests by any Member be made to any Person who
lacks the legal right, power or capacity to own Interests; if in the opinion of legal counsel or a qualified tax advisor to the Company such Transfer presents a material risk that such Transfer would cause the Company to cease to be classified as a
partnership or to be classified as a “publicly traded partnership” within the meaning of Section 7704(b) of the Code for U.S. federal income tax purposes; if such Transfer would cause the Company to become, with respect to any
employee benefit plan subject to Title I of ERISA, a “party-in-interest” (as defined in Section 3 (14) of ERISA) or a “disqualified person” (as
defined in Section 4975(e)(2) of the Code); if such Transfer would, in the opinion of counsel to the Company, cause any portion of the assets of the Company to constitute assets of any employee benefit plan pursuant to the Plan Asset
Regulations or otherwise cause the Company to be subject to regulation under ERISA; if such Transfer requires the registration of such Interests or any Equity Securities issued upon any exchange of such Interests, pursuant to any applicable U.S.
federal or state securities Laws; or if such Transfer subjects the Company to regulation under the Investment Company Act or the Investment Advisors Act of 1940, each as amended (or any succeeding law). Any Transfer purported to be made in violation
of this Section 9.1(b) shall be void ab initio. 


Section 9.2    Notice of Transfer. Other than in connection with Transfers made pursuant to
Section 4.6, each Member shall, after complying with the provisions of this Agreement, but in any event no later than three Business Days following any Transfer of Interests, give written notice to the Company of such
Transfer. Each such notice shall describe the manner and circumstances of the Transfer. 

Section 9.3    Transferee Members. A Transferee of Interests pursuant to this Article IX shall
have the right to become a Member only if (i) the requirements of this Article IX are met, (ii) such Transferee executes an instrument reasonably satisfactory to the Managing Member agreeing to be bound by the terms and provisions
of this Agreement and assuming all of the Transferor’s then existing and future Liabilities arising under this Agreement, (iii) such Transferee represents that the Transfer was made in accordance with all applicable securities Laws,
(iv) the Transferor or Transferee shall have reimbursed the Company for all reasonable expenses (including attorneys’ fees and expenses) of any Transfer or proposed Transfer of a Member’s Interest, whether or not consummated and
(v) if such Transferee or his or her spouse 

  
 41 








 
is a resident of a community property jurisdiction, then such Transferee’s spouse shall also execute an instrument reasonably satisfactory to the Managing Member agreeing to be bound by the
terms and provisions of this Agreement to the extent of his or her community property or quasi-community property interest, if any, in such Member’s Interest. Except as expressly provided in this Agreement, unless agreed to in writing by the
Managing Member, the admission of a Member shall not result in the release of the Transferor from any Liability that the Transferor may have to each remaining Member or to the Company under this Agreement or any other Contract between the Managing
Member, the Company or any of its Subsidiaries, on the one hand, and such Transferor or any of its Affiliates, on the other hand. Written notice of the admission of a Member shall be sent promptly by the Company to each remaining Member.
Notwithstanding anything to the contrary in this Section 9.3, and except as otherwise provided in this Agreement, following a Transfer by one or more Members (or a transferee of the type described in this sentence) to an
Permitted Transferee of all or substantially all of their Interests, such transferee shall succeed to all of the rights of such Member(s) under this Agreement. 

Section 9.4    Legend. Each certificate representing a Unit, if any, will be stamped or otherwise
imprinted with a legend in substantially the following form: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. 
 THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT. 
 THE TRANSFER AND VOTING OF THESE SECURITIES IS SUBJECT TO THE CONDITIONS
SPECIFIED IN THE SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY OPERATING AGREEMENT OF LIBERTY OILFIELD SERVICES NEW HOLDCO LLC DATED AS OF                , 2018
AMONG THE MEMBERS LISTED THEREIN, AS IT MAY BE AMENDED, SUPPLEMENTED AND/OR RESTATED FROM TIME TO TIME, AND NO TRANSFER OF THESE SECURITIES WILL BE VALID OR EFFECTIVE UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED. COPIES OF SUCH AGREEMENT MAY BE
OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE ISSUER OF SUCH SECURITIES.” 

ARTICLE X 
 ACCOUNTING

 Section 10.1    Books of Account. The Company shall, and shall cause each Subsidiary to,
maintain true books and records of account in which full and correct entries shall be made of all its business transactions pursuant to a system of accounting established and administered in accordance with GAAP, and shall set aside on its books all
such proper accruals and reserves as shall be required under GAAP. 

  
 42 








 Section 10.2    Tax Elections. 

 

	 	(a)	The Company and any eligible Subsidiary shall make an election (or continue a previously made election) pursuant to Section 754 of the Code for the taxable year of the Company that includes the Closing Date, shall
not thereafter revoke such election and shall make a new election pursuant to Section 754 of the Code to the extent necessary following any “termination” of the Company or the Subsidiary, as applicable, under Section 708 of the
Code. In addition, the Company shall make the following elections on the appropriate forms or tax returns: 

  

	 	i.	to adopt the calendar year as the Company’s Fiscal Year, if permitted under the Code; 

  

	 	ii.	to adopt the accrual method of accounting for U.S. federal income tax purposes; and 

  

	 	iii.	to elect to amortize the organizational expenses of the Company as permitted by Section 709(b) of the Code. 

  

	 	(b)	None of the Managing Member, the Members, or the Company shall make any election under Section 1101(g)(4) of the Bipartisan Budget Act of 2015 to have the provisions of the Bipartisan Budget Act of 2015 governing
“Subchapter C – Treatment of Partnerships” apply to any tax return of the Company filed for a taxable year beginning prior to January 1, 2018. 


Section 10.3    Tax Returns; Information. The Tax Matters Member or Company Representative (as
applicable) shall arrange for the preparation and timely filing of all income and other tax and informational returns of the Company. The Tax Matters Member or Company Representative (as applicable) shall furnish to each Member a copy of each
approved return and statement, together with any schedules or other information which each Member may require in connection with such Member’s own tax affairs as soon as practicable (but in no event more than 90 days after the end of each
Fiscal Year). On or before December 1 of each Fiscal Year, the Company shall send to each Member an estimate of such Member’s state tax apportionment information and allocations to such Member of taxable income, gains, losses, deductions
and credit for the current Fiscal Year, which estimate shall have been reviewed by the Company’s outside tax accountants; provided, that if the Company does not provide a copy of final Company income tax returns, information returns and
other related information within 60 days after the end of each Fiscal Year, the Company shall provide an updated estimate of information described in this sentence (prior to the proviso) by no later than February 28 of the following Fiscal
Year. The Members agree to use commercially reasonably efforts to take all actions reasonably requested by the Company or the Company Representative to comply with the Bipartisan Budget Act of 2015. Notwithstanding anything to the contrary, the
Company shall promptly provide each Member with any information reasonably requested by such Member in connection with such Member’s own tax affairs. 

  
 43 








 Section 10.4    Tax Matters Member and Company
Representative. The Managing Member is specially authorized and appointed to act as the Tax Matters Member and as the Company Representative (as applicable) and in any similar capacity under state or local Law. The Tax Matters Member or
Company Representative (as applicable) may retain, at the Company’s expense, such outside counsel, accountants and other professional consultants as it may reasonably deem necessary in the course of fulfilling its obligations as Tax Matters
Member or Company Representative (as applicable). The Tax Matters Member or the Company Representative (as applicable) shall notify each Member of any notice of audit or other tax proceeding relating to the Company within 20 days of receipt of such
notice by the Company and shall keep all Members advised on a current basis of any material contacts by or material discussions with any taxing authorities. Notwithstanding the foregoing, the Tax Matters Member or the Company Representative (as
applicable) shall not extend the statute of limitations of the Company, file a request for administrative adjustment relating to the Company, file suit concerning any tax refund or deficiency relating to any Company, file any material amended tax
return or enter into any settlement agreement relating to any Company item of income, gain, loss, deduction or credit for any Fiscal Year or other taxable period of the Company, or settle or otherwise compromise any material issue in any Tax
examination, audit or other proceeding without first obtaining approval of the Managing Member and, solely in the case of such actions with respect to items on the Internal Revenue Service Form 1065 (and items on any similar form for state and local
purposes due in a jurisdiction that follows the U.S. federal income tax) of the Company, providing each Member with advance written notice ten (10) days prior to taking such action. Notwithstanding anything to the contrary, nothing herein shall
diminish, limit or restrict the rights of any Member under applicable tax law. 
 Section 10.5    Withholding
Tax Payments and Obligations. 
  

	 	(a)	The Company and its Subsidiaries may withhold from distributions, allocations or portions thereof if it is required to do so by any applicable rule, regulation or law, and each Member hereby authorizes the Company and
its Subsidiaries to withhold or pay on behalf of or with respect to such Member any amount of taxes that the Managing Member determines, in good faith, that the Company or any of its Subsidiaries is required to withhold or pay with respect to any
amount distributable or allocable to such Member pursuant to this Agreement. 

  

	 	(b)	To the extent that any tax is paid by (or withheld from amounts payable to) the Company or any of its Subsidiaries and the Managing Member determines, in good faith, that such tax relates to one or more specific Members
(including any tax payable by the Company or any of its Subsidiaries pursuant to Section 6225 of the Code with respect to items of income, gain, loss deduction or credit allocable or attributable to such Member), such tax shall be treated as an
amount of taxes withheld or paid with respect to such Member pursuant to this Section 10.5. 

  

	 	(c)	 For all purposes under this Agreement, any amounts withheld or paid with respect to a Member pursuant to this
Section 10.5 shall be treated as if distributed to such 



  
 44 









	 	
Member at the time such withholding or payment is made. Further, to the extent that the cumulative amount of such withholding or payment for any period exceeds the distributions to which such
Member is entitled for such period, the amount of such excess shall be considered a loan from the Company to such Member, with interest accruing at the Prime Rate in effect from time to time, compounded annually. The Managing Member may, in its
discretion, either demand payment of the principal and accrued interest on such demand loan at any time (which payment shall not be deemed a Capital Contribution for purposes of this Agreement), and enforce payment thereof by legal process, or may
withhold from one or more distributions to a Member amounts sufficient to satisfy such Member’s obligations under any such demand loan. 

  

	 	(d)	Neither the Company nor the Managing Member shall be liable for any excess taxes withheld in respect of any Member, and, in the event of overwithholding for which payment has already been made to the applicable taxing
authority, a Member’s sole recourse shall be to apply for a refund from the appropriate Governmental Entity. 

  

	 	(e)	Notwithstanding any other provision of this Agreement, (i) any Person who ceases to be a Member shall be treated as a Member for purposes of this Section 10.5 and (ii) the obligations
of a Member pursuant to this Section 10.5 shall survive indefinitely with respect to any taxes withheld or paid by the Company that relate to the period during which such Person was actually a Member, regardless of whether
such taxes are assessed, withheld or otherwise paid during such period. 

 ARTICLE XI 

DISSOLUTION AND TERMINATION 

Section 11.1    Liquidating Events. The Company shall dissolve and commence winding up and liquidating
upon the first to occur of the following (each, a “Liquidating Event”): 
  

	 	(a)	The sale of all or substantially all of the assets of the Company; and 

  

	 	(b)	The determination of the Managing Member to dissolve, wind up, and liquidate the Company. 

 The Members hereby
agree that the Company shall not dissolve prior to the occurrence of a Liquidating Event and that no Member shall seek a dissolution of the Company, under Section 18-802 of the Act or otherwise, other
than based on the matters set forth in subsections (a) and (b) above. If it is determined by a court of competent jurisdiction that the Company has dissolved prior to the occurrence of a Liquidating Event, the Members hereby agree to continue
the business of the Company without a winding up or liquidation. In the event of a dissolution pursuant to Section 11.1(b), the relative economic rights of each class of Units immediately prior to such dissolution shall be
preserved to the greatest extent practicable with respect to 

  
 45 








 
distributions made to Members pursuant to Section 11.3 in connection with such dissolution, taking into consideration tax and other legal constraints that may adversely
affect one or more parties to such dissolution and subject to compliance with applicable laws and regulations, unless, with respect to any class of Units, holders of a majority of the Units of such class consent in writing to a treatment other than
as described above. 
 Section 11.2    Bankruptcy. For purposes of this Agreement, the
“bankruptcy” of a Member shall mean the occurrence of any of the following: (a) any Governmental Entity shall take possession of any substantial part of the property of that Member or shall assume control over the affairs or
operations thereof, or a receiver or trustee shall be appointed, or a writ, order, attachment or garnishment shall be issued with respect to any substantial part thereof, and such possession, assumption of control, appointment, writ or order shall
continue for a period of 90 consecutive days; or (b) a Member shall admit in writing of its inability to pay its debts when due, or make an assignment for the benefit of creditors; or apply for or consent to the appointment of any receiver,
trustee or similar officer or for all or any substantial part of its property; or shall institute (by petition, application, answer, consent or otherwise) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debts, dissolution,
liquidation, or similar proceeding under the Laws of any jurisdiction; or (c) a receiver, trustee or similar officer shall be appointed for such Member or with respect to all or any substantial part of its property without the application or
consent of that Member, and such appointment shall continue undischarged or unstayed for a period of 90 consecutive days or any bankruptcy, insolvency, reorganization, arrangements, readjustment of debt, dissolution, liquidation or similar
proceedings shall be instituted (by petition, application or otherwise) against that Member and shall remain undismissed for a period of 90 consecutive days. 

Section 11.3    Procedure. 
  

	 	(a)	In the event of the dissolution of the Company for any reason, the Managing Member shall commence to wind up the affairs of the Company and to liquidate the Company’s investments; provided that if the
Managing Member is in bankruptcy or dissolved, another Member appointed by Members holding a majority of the Units (other than those held by the Managing Member) (such appointee, the “Winding-Up
Member”) shall commence to wind up the affairs of the Company and, subject to Section 11.4(a), such Winding-Up Member shall have full right and unlimited discretion to
determine in good faith the time, manner and terms of any sale or sales of the Property or other assets pursuant to such liquidation, having due regard to the activity and condition of the relevant market and general financial and economic
conditions. The Members shall continue to share profits, losses and distributions during the period of liquidation in the same manner and proportion as though the Company had not dissolved. The Company shall engage in no further business except as
may be necessary, in the reasonable discretion of the Managing Member or the Winding-Up Member, as applicable, to preserve the value of the Company’s assets during the period of dissolution and
liquidation. 


  
 46 









	 	(b)	Following the payment of all expenses of liquidation and the allocation of all Profits and Losses as provided in Article V, the proceeds of the liquidation and any other funds of the Company shall be distributed
in the following order of priority: 

  

	 	(i)	First, to the payment and discharge of all of the Company’s debts and Liabilities to creditors (whether third parties or Members), in the order of priority as provided by Law, except any obligations to the Members
in respect of their Capital Accounts; 

  

	 	(ii)	Second, to set up such cash reserves which the Managing Member reasonably deems necessary for contingent or unforeseen Liabilities or future payments described in Section 11.3(b)(i) (which
reserves when they become unnecessary shall be distributed in accordance with the provisions of subsection (iii), below); and 

  

	 	(iii)	Third, the balance to the Members, pro rata in accordance with the number of Units owned by each Member. 

  

	 	(c)	Except as provided in Section 11.4(a), no Member shall have any right to demand or receive property other than cash upon dissolution and termination of the Company. 


 

	 	(d)	Upon the completion of the liquidation of the Company and the distribution of all Company funds, the Company shall terminate and the Managing Member or the Winding-Up Member, as
the case may be, shall have the authority to execute and record a certificate of cancellation of the Company, as well as any and all other documents required to effectuate the dissolution and termination of the Company. 


Section 11.4    Rights of Members. 

 

	 	(a)	Each Member irrevocably waives any right that it may have to maintain an action for partition with respect to the property of the Company. 


 

	 	(b)	Except as otherwise provided in this Agreement, (i) each Member shall look solely to the assets of the Company for the return of its Capital Contributions, and (ii) no Member shall have priority over any other
Member as to the return of its Capital Contributions, distributions or allocations. 


Section 11.5    Notices of Dissolution. In the event a Liquidating Event occurs or an event occurs that
would, but for the provisions of Section 11.1, result in a dissolution of the Company, the Company shall, within 30 days thereafter, (a) provide written notice thereof to each of the Members and to all other parties
with whom the Company regularly conducts business (as determined in the discretion of the Managing Member), and (b) comply, in a timely manner, with all filing and notice requirements under the Act or any other applicable Law. 

Section 11.6    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 in order to minimize any losses that might otherwise result from such winding up. 

  
 47 








 Section 11.7    No Deficit Restoration. No Member shall be
personally liable for a deficit Capital Account balance of that Member, it being expressly understood that the distribution of liquidation proceeds shall be made solely from existing Company assets. 

ARTICLE XII 
 GENERAL

 Section 12.1    Amendments; Waivers. 

 

	 	(a)	The terms and provisions of this Agreement may be waived, modified or amended (including by means of merger, consolidation or other business combination to which the Company is a party) only with the approval of the
Managing Member; provided, however, that no amendment to this Agreement may: 

  

	 	i.	modify the limited liability of any Member, or increase the liabilities or obligations of any Member, in each case, without the consent of each such affected Member; or 


 

	 	ii.	except as provided in Section 4.6(j), materially alter or change the provisions of Section 4.6 or this Section 12.1 hereof in a manner that adversely affects the Members (excluding the Managing Member)
without the written consent of each Member who at such time holds (together with its Affiliates) at least ten percent (10%) of the then outstanding Units (other than those held by the Managing Member); or 


 

	 	iii.	materially alter or change any rights, preferences or privileges of any Interests in a manner that is different or prejudicial relative to any other Interests, without the approval of a majority in interest of the
Members holding the Interests affected in such a different or prejudicial manner. 

  

	 	(b)	Notwithstanding the foregoing subsection (a), the Managing Member, acting alone, may amend this Agreement, including Exhibit A, (i) to reflect the admission of new Members, Transfers of Interests, the
issuance of additional Units or Equity Securities, as provided by the terms of this Agreement, and, subject to Section 12.1(a), subdivisions or combinations of Units made in compliance with
Section 4.1(g), (ii) to the minimum extent necessary to (A) comply with the provisions of the Bipartisan Budget Act of 2015 and any Treasury Regulations or other administrative pronouncements promulgated thereunder and
(B) to administer the effects of such provisions in an equitable manner and (iii) as necessary to avoid the Company being classified as a “publicly traded partnership” within the meaning of Section 7704(b) of the Code.


  

	 	(c)	No waiver of any provision or default under, nor consent to any exception to, the terms of this Agreement or any agreement contemplated hereby shall be effective unless in writing and signed by the party to be bound and
then only to the specific purpose, extent and instance so provided. 


  
 48 








 Section 12.2    Further Assurances. Each party agrees that
it will from time to time, upon the reasonable request of another party, execute such documents and instruments and take such further action as may be reasonably required to accomplish the purposes of this Agreement; provided, that no such
additional documents or instruments or additional acts shall result in material costs or obligations to a Member without the consent of such Member. 

Section 12.3    Successors and Assigns. All of the terms and provisions of this Agreement shall be
binding upon the parties and their respective successors and assigns, but shall inure to the benefit of and be enforceable by the successors and assigns of any Member only to the extent that they are permitted successors and assigns pursuant to the
terms hereof. No party may assign its rights hereunder except as herein expressly permitted. 

Section 12.4    Entire Agreement. This Agreement, together with all Exhibits and Schedules hereto and
all other agreements referenced therein and herein, constitute the entire agreement between the parties hereto pertaining to the subject matter hereof and supersede all prior and contemporaneous agreements, understandings, negotiations and
discussions, whether oral or written, of the parties and there are no warranties, representations or other agreements between the parties in connection with the subject matter hereof except as specifically set forth herein and therein. 

Section 12.5    Rights of Members Independent. The rights available to the Members under this Agreement
and at Law shall be deemed to be several and not dependent on each other and each such right accordingly shall be construed as complete in itself and not by reference to any other such right. Any one or more and/or any combination of such rights may
be exercised by a Member and/or the Company from time to time and no such exercise shall exhaust the rights or preclude another Member from exercising any one or more of such rights or combination thereof from time to time thereafter or
simultaneously. 
 Section 12.6    Governing Law. This Agreement, the legal relations between the
parties and any Action, whether contractual or non-contractual, instituted by any party with respect to matters arising under or growing out of or in connection with or in respect of this Agreement shall be
governed by and construed in accordance with the Laws of the State of Delaware applicable to contracts made and performed in such State and without regard to conflicts of law doctrines, except to the extent that certain matters are preempted by
federal Law or are governed as a matter of controlling Law by the Law of the jurisdiction of organization of the respective parties. 

Section 12.7    Jurisdiction and Venue. The parties hereto hereby agree and consent to be subject to
the jurisdiction of any federal court of the District of Delaware or the Delaware Court of Chancery over any action, suit or proceeding (a “Legal Action”) arising out of or in connection with this Agreement. The parties
hereto irrevocably waive the defense of an inconvenient forum to the maintenance of any such Legal Action. Each of the parties hereto further irrevocably consents to the service of process out of any of the aforementioned courts in any such Legal
Action by the mailing of copies thereof by registered mail, postage prepaid, to such party at its address set forth in this Agreement, such service of process to be effective upon acknowledgment of receipt of such registered mail. Nothing in this
Section 12.7 shall affect the right of any party hereto to serve legal process in any other manner permitted by law. 

  
 49 








 Section 12.8    Headings. The descriptive headings of the
Articles, Sections and subsections of this Agreement are for convenience only and do not constitute a part of this Agreement. 

Section 12.9    Counterparts. This Agreement and any amendment hereto or any other agreement (or
document) delivered pursuant hereto may be executed in one or more counterparts and by different parties in separate counterparts. All of such counterparts shall constitute one and the same agreement (or other document) and shall become effective
(unless otherwise provided therein) when one or more counterparts have been signed by each party and delivered to the other party. 

Section 12.10    Notices. Any notice or other communication hereunder must be given in writing and
(a) delivered in person, (b) transmitted by facsimile or telecommunications mechanism, provided that any notice so given is also mailed as provided in clause (c), or (c) mailed by certified or registered mail, postage prepaid,
receipt requested as follows: 
 If to the Company or the Managing Member, addressed to it at: 

Liberty Oilfield Services New HoldCo LLC 

950 17th Street, Suite 2000 

Denver, CO 80202 

Facsimile:                 

Attention:                 

With copies (which shall not constitute notice) to: 

Liberty Oilfield Services Inc. 

950 17th Street, Suite 2000 

Denver, CO 80202 

Facsimile:                 

Attention:                 

Vinson & Elkins L.L.P. 

1001 Fannin, Suite 2500 
 Houston,
TX 77002 
 Facsimile:                 

Attention:                 

or to such other address or to such other Person as either party shall have last designated by such notice to the other parties. Each such notice or other
communication shall be effective (i) if given by telecommunication, when transmitted to the applicable number so specified in (or pursuant to) this Section 12.10 and an appropriate answerback is received or, if
transmitted after 4:00 p.m. local time on a Business Day in the jurisdiction to which such notice is sent or at any time on a day that is not a Business Day in the jurisdiction to which such notice is sent, then on the immediately following Business
Day, (ii) if given by mail, on the first Business Day in the jurisdiction to which such notice is sent following the date three days after such communication 

  
 50 








 
is deposited in the mails with first class postage prepaid, addressed as aforesaid or (iii) if given by any other means, on the Business Day when actually received at such address or, if not
received on a Business Day, on the Business Day immediately following such actual receipt. 

Section 12.11    Representation By Counsel; Interpretation. The parties acknowledge that each party to
this Agreement has been represented by counsel in connection with this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of Law, or any legal decision that would require interpretation of any claimed ambiguities in
this Agreement against the party that drafted it has no application and is expressly waived. 

Section 12.12    Severability. If any provision of this Agreement is determined to be invalid, illegal
or unenforceable by any Governmental Entity, the remaining provisions of this Agreement, to the extent permitted by Law shall remain in full force and effect, provided that the essential terms and conditions of this Agreement for all parties
remain valid, binding and enforceable. 
 Section 12.13    Expenses. Except as otherwise provided in
this Agreement and in the Reorganization Agreement, each party shall bear its own expenses in connection with the transactions contemplated by this Agreement. 

Section 12.14    No Third Party Beneficiaries. Except as expressly provided in Sections 7.4 and
10.2, nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties hereto and their respective successors and permitted assigns, any rights or remedies under this Agreement or otherwise create
any third party beneficiary hereto. 
 [Signatures on Next Page] 

  
 51 








 IN WITNESS WHEREOF, each of the parties hereto has caused this Second Amended and Restated
Limited Liability Company Operating Agreement to be executed as of the day and year first above written. 
  

			
	COMPANY:
	
	LIBERTY OILFIELD SERVICES NEW HOLDCO LLC


 
			
		
	By:	 	  

	Name:	 	  

	Title:	 	  




  
 SIGNATURE
PAGE TO 
 SECOND AMENDED AND RESTATED
LIMITED LIABILITY COMPANY OPERATING AGREEMENT OF 

LIBERTY OILFIELD SERVICES NEW HOLDCO LLC 








 
			
	MEMBERS:
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	MANAGING MEMBER:
	
	LIBERTY OILFIELD SERVICES INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  




  
 SIGNATURE
PAGE TO 
 SECOND AMENDED AND RESTATED
LIMITED LIABILITY COMPANY OPERATING AGREEMENT OF 

LIBERTY OILFIELD SERVICES NEW HOLDCO LLC 








 EXHIBIT A 
  


					
	 Member
	  	 Number of Units Owned
	  	 Closing Date Capital

Account Balance

	Liberty Oilfield Services Inc.	  		  	
		  		  	
		  		  	
		  		  	
		  		  	

  

  
 SIGNATURE
PAGE TO 
 SECOND AMENDED AND RESTATED
LIMITED LIABILITY COMPANY OPERATING AGREEMENT OF 

LIBERTY OILFIELD SERVICES NEW HOLDCO LLC