Exhibit 10.1


 


SECOND AMENDED AND RESTATED


 


LIMITED LIABILITY COMPANY


 


AGREEMENT


 


of


 


REALTY CAPITAL SECURITIES, LLC


	 	 
	 	THE MEMBERSHIP INTERESTS REPRESENTED BY THIS SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS.  SUCH MEMBERSHIP INTERESTS MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED OF AT ANY TIME WITHOUT EFFECTIVE REGISTRATION UNDER SUCH ACT AND LAWS OR EXEMPTION THEREFROM, AND COMPLIANCE WITH THE OTHER SUBSTANTIAL RESTRICTIONS ON TRANSFERABILITY SET FORTH HEREIN.
	 	 




 




    	 



    	 



    

 


 


TABLE OF CONTENTS


	 	 	Page
	 	 	 
	ARTICLE 1
	Defined Terms
	 	 	 
	Section 1.01.	Definitions	2
	Section 1.02.	Other Definitional and Interpretative Provisions	10
	 	 	 
	ARTICLE 2
	Organization
	 	 	 
	Section 2.01.	Formation of Limited Liability Company	10
	Section 2.02.	Company Name	10
	Section 2.03.	Purposes of the Company	11
	Section 2.04.	Principal Place of Business	11
	Section 2.05.	Registered Office and Agent	11
	Section 2.06.	Qualification in Other Jurisdictions	11
	Section 2.07.	Term	11
	Section 2.08.	Tax Treatment as Partnership	11
	 	 	 
	ARTICLE 3
	Capitalization
	 	 	 
	Section 3.01.	Units; Capitalization	12
	Section 3.02.	Authorization and Issuance of Additional Units	12
	Section 3.03.	Redemption of Class A Stock	14
	Section 3.04.	Subdivisions or Combinations	14
	 	 	 
	ARTICLE 4
	Members
	 	 	 
	Section 4.01.	Names and Addresses	14
	Section 4.02.	No Liability for Status as Member	14
	Section 4.03.	No Restrictions Of Business Pursuits Of Member	15
	Section 4.04.	Transactions Between Members and the Company	15
	Section 4.05.	Meeting of Members	15
	Section 4.06.	Action by Members Without Meeting	15
	Section 4.07.	Limited Rights of Members	15
	 	 	 
	ARTICLE 5
	Distributions
	 	 	 
	Section 5.01.	Distributions	16
	Section 5.02.	Distributions for Payment of Income Tax	16
	Section 5.03.	Limitations on Distributions	16


 




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	Section 5.04.	Withholding	16
	 	 	 
	ARTICLE 6
	Allocations and Tax Matters
	 	 	 
	Section 6.01.	Capital Accounts and Adjusted Capital Accounts	17
	Section 6.02.	Additional Capital Contributions	18
	Section 6.03.	Allocations of Net Profits and Net Losses	18
	Section 6.04.	Special Allocations	18
	Section 6.05.	Allocation for Income Tax Purposes	20
	Section 6.06.	Regulatory Compliance	21
	Section 6.07.	Tax Matters Member	21
	Section 6.08.	Elections	21
	Section 6.09.	Change of Members’ Percentage Interests	21
	Section 6.10.	Certain Costs And Expenses	22
	 	 	 
	ARTICLE 7
	Management and Control Of Business
	 	 	 
	Section 7.01.	Management	22
	Section 7.02.	Investment Company Act	22
	Section 7.03.	Compensation and Reimbursement	23
	Section 7.04.	Fiduciary Duties	23
	 	 	 
	ARTICLE 8
	Officers
	 	 	 
	Section 8.01.	Officers	23
	Section 8.02.	Other Officers and Agents	23
	Section 8.03.	President	23
	Section 8.04.	Managing Director; Vice President	23
	Section 8.05.	Treasurer	23
	Section 8.06.	Secretary	24
	Section 8.07.	Assistant Treasurers and Assistant Secretaries	24
	 	 	 
	ARTICLE 9
	Transfers of Interests; Admittance of New Members
	 	 	 
	Section 9.01.	Transfer of Membership Interests	24
	Section 9.02.	Transfer of Pubco’s Interest	25
	Section 9.03.	Recognition of Transfer; Substituted and Additional Members	25
	Section 9.04.	Expense of Transfer; Indemnification	26
	Section 9.05.	Exchange Agreement	27


 




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	ARTICLE 10
	Dissolution and Termination
	 
	Section 10.01.	Dissolution	27
	Section 10.02.	Termination	28
	 	 	 
	ARTICLE 11
	Exculpation and Indemnification
	 	 	 
	Section 11.01.	Exculpation	29
	Section 11.02.	Indemnification	29
	Section 11.03.	Expenses	29
	Section 11.04.	Non-Exclusivity	30
	Section 11.05.	Insurance	30
	 	 	 
	ARTICLE 12
	Accounting and Records
	 	 	 
	Section 12.01.	Accounting and Records	30
	Section 12.02.	Tax Information	30
	 	 	 
	ARTICLE 13
	Arbitration
	 	 	 
	ARTICLE 14
	Miscellaneous Provisions
	 	 	 
	Section 14.01.	Entire Agreement	31
	Section 14.02.	Binding on Successors	31
	Section 14.03.	Power of Attorney	31
	Section 14.04.	Governing Law	32
	Section 14.05.	Headings	32
	Section 14.06.	Severability	32
	Section 14.07.	Notices	32
	Section 14.08.	Amendments	32
	Section 14.09.	Consent to Jurisdiction and Venue	33


 




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SECOND AMENDED AND RESTATED


LIMITED LIABILITY COMPANY AGREEMENT
OF


REALTY CAPITAL SECURITIES, LLC


 


THIS SECOND AMENDED AND RESTATED LIMITED
LIABILITY COMPANY AGREEMENT of Realty Capital Securities, LLC (the “Company”) is made and entered
into as of [           ], 2013, between RCS Capital Corporation (in its
capacity as manager of the Company, the “Managing Member,” and in its individual capacity, “PubCo”)
and RCAP Holdings, LLC (“RCAP”).


 


WHEREAS, on August 29, 2007,
the Company (f/k/a American Realty Capital Securities, LLC) was formed as a limited liability company pursuant to the Delaware
Limited Liability Company Act (the “Delaware Act”) by the filing of its Certificate of Formation with the Secretary
of State of the State of Delaware;


 


WHEREAS, such Certificate of Formation
was amended to change of the Company to “Realty Capital Securities, LLC” by the filing of a certificate of amendment
thereto on September 20, 2007; 


 


WHEREAS, the Company has been
governed by an Amended and Restated Limited Liability Company Agreement dated as of March 17, 2008 (as amended, the “Original
Agreement”);


 


WHEREAS, on the Closing Date
(as defined below), PubCo will issue [                       ] shares of its Class A common stock, par value $0.001 per share (the “Class A Stock”),
to the public in an initial public offering of shares of Class A Stock (the “IPO”);


 


WHEREAS, immediately prior
to the IPO, PubCo will issue [     ] shares of its Class B common stock, par value $0.001 per share (the “Class B Stock”),
to RCAP;


 


WHEREAS, immediately prior
to the IPO, the Company will issue: (i) [     ] Class A Units (as defined below) to PubCo; and (ii) [     ] Class B Units (as defined below)
to RCAP, which Units shall, collectively, represent 100% of the outstanding Units of the Company;


 


WHEREAS, simultaneously with
the execution of this Agreement, PubCo and RCAP will enter into the Exchange Agreement (as defined below), pursuant to which RCAP
will have the right, on the terms and subject to the conditions set forth therein, to exchange Operating Subsidiaries Group Units
(as defined below) for shares of Class A Stock of PubCo, at which time PubCo’s Class A Units in the Company and the other
Operating Subsidiaries will be correspondingly increased and RCAP’s corresponding shares of Class B Stock of PubCo will be
cancelled; and


 


WHEREAS, the Members (as defined
herein) desire to enter into this Agreement as their binding agreement with respect to the business and management of the Company
and their interests therein, as well as for the purpose of amending and restating the Original Agreement in its entirety;


 




    	 



    	 



    

 


NOW, THEREFORE, the Members
hereby agree that the Original Agreement is amended and restated in its entirety to read as follows:


 


ARTICLE
1

Defined Terms


 


The capitalized terms used in this Agreement
shall, unless the context otherwise requires or unless otherwise expressly provided herein, have the respective meanings set forth
below:


 


Section
1.01. Definitions.


 


“Adjusted Capital Account Deficit”
shall mean, with respect to any Member, the negative balance, if any, in such Member’s Capital Account as of the end
of the relevant Fiscal Year or period, determined after giving effect to the following adjustments:


 


(a)          credit
to such Capital Account the sum of (x) any amount which such Member ) is treated as obligated to restore to the Company pursuant
to the provisions of Treas. Reg. § 1.704-1(b)(2)(ii)(c) and (y) the amount which such Member is deemed to be obligated to
restore to the Company pursuant to the penultimate sentence of Treas. Reg. § 1.704-2(g)(l) and the penultimate sentence of
Treas. Reg. § 1.704-2(i)(5);and


 


(b)          debit
to such Capital Account the items described in subclauses (4), (5) and (6) of Treas. Reg. § 1.704-1(b)(2)(ii)(d).


 


“Affiliate” of
a specified Person shall mean a Person that, directly or indirectly, controls, is controlled by, or is under common control with,
the specified Person. For this purpose, “control” (and with correlative meaning, “controls” and “controlled”)
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, by contract or otherwise.


 


“Agreement” shall
mean this Second Amended and Restated Limited Liability Company Agreement of the Company (including the Exhibits hereto), as amended,
modified, supplemented or restated from time to time. This Agreement is the Company’s “operating agreement” within
the meaning of the Delaware Act.


 


“Annual Income Tax Liability”
shall mean, for each Member, such Member’s annual federal, state and local income tax obligations for the applicable
calendar year arising from the allocation to such Member of taxable income that is earned by the Company for all periods after
the Closing Date (computed without regard to any deduction available to Pubco arising out of any exchange pursuant to the Exchange
Agreement) based on the assumption that such Member is an individual or, if a greater amount of tax would result, a corporate resident
in New York City subject to the maximum federal, New York State and New York City income tax rates, and reduced (but not below
zero) by distributions made to such Member for Quarterly Estimated Income Tax with respect to such calendar year pursuant to Section
5.02.


 




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“Applicable Law” shall
mean, to the extent applicable to the Company or its activities or any Member, as applicable: (a) all United States federal and
state statutes and laws and all statutes and laws of foreign countries; (b) all rules and regulations (including interpretations
thereof) of all regulatory agencies, organizations and bodies; and (c) all rules and regulations (including interpretations thereof)
of all self-regulatory agencies, organizations and bodies now or hereafter in effect.


 


“Capital Account”
shall have the meaning set forth in Section 6.01.


 


“Capital Contribution”
shall mean the amount of all cash capital contributions by a Member to the Company and the fair market value of any property
contributed by a Member to the Company (net of any liabilities secured by such property that the Company is considered to assume
or take subject to under Section 752 of the Code).


 


“Certificate” shall
have the meaning set forth in Section 2.01.


 


“Class A Stock” shall
have the meaning set forth in the recitals.


 


“Class A Unit” shall
have the meaning set forth in Section 3.01(a).


 


“Class B Stock” shall
have the meaning set forth in the recitals.


 


“Class B Unit” shall
have the meaning set forth in Section 3.01(a).


 


“Closing Date” means
the closing date of the IPO.


 


“Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time, or any successor federal income tax code.


 


“Company” shall
have the meaning set forth in the preamble.


 


“Company Minimum Gain”
means “partnership minimum gain” as that term is defined in Treas. Reg. § 1.704-2(d). In accordance with Treas.
Reg. § 1.704-2(d), the amount of Company Minimum Gain is determined by first computing, for each Company nonrecourse liability,
any gain the Company would realize if it disposed of the property subject to that liability for no consideration other than full
satisfaction of the liability, and then aggregating the separately computed gains. A Member’s share of Company Minimum Gain
shall be determined in accordance with Treas. Reg. § 1.704-2(g)(1).


 


“Delaware Act” shall
have the meaning set forth in the recitals.


 


“Depreciation” means,
for each Fiscal Year or other period, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable
for federal income tax purposes with respect to an asset for such Fiscal Year or other period, except that (a) with respect to
any asset the Gross Asset Value of which differs from its adjusted tax basis for federal income tax purposes at the beginning of
such Fiscal Year or other period and which difference is being eliminated by use of the “remedial method” as defined
by Treas. Reg. § 1.704-3(d), Depreciation for such fiscal year or other period shall be the amount of book basis recovered
for such fiscal year or other period under the rules prescribed by Treas. Reg. § 1.704-3(d)(2), and (b) with respect
to any other asset the Gross Asset Value of which differs from its adjusted tax basis for federal income tax purposes at the beginning
of such Fiscal Year or other 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 Fiscal Year or other period bears
to such beginning adjusted tax basis; provided, however, that in the case of clause (b) above, if the adjusted tax
basis for federal income tax purposes of an asset at the beginning of such Fiscal Year or other period is zero, Depreciation shall
be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Managing Member.


 




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“Depreciation Recapture”
shall have the meaning set forth in Section 6.05.


 


“Dispute” shall
have the meaning set forth in Article 13.


 


“Equity Securities”
shall mean, as applicable, (a) any capital stock, membership interests, other share capital or securities containing any profit
participation features, (b) any securities directly or indirectly convertible or exercisable into or exchangeable for any capital
stock, membership interests, other share capital or securities containing any profit participation features, (c) any rights or
options directly or indirectly to subscribe for or to purchase any capital stock, membership interests, other share capital or
securities containing any profit participation features or to subscribe for or to purchase any securities directly or indirectly
convertible or exercisable into or exchangeable for any capital stock, membership interests, other share capital or securities
containing any profit participation features, (d) any share appreciation rights, phantom share rights or other similar rights,
or (e) any equity securities, rights or instruments issued or issuable with respect to any of the foregoing referred to in clauses
(a) through (d) above in connection with a combination, subdivision, recapitalization, merger, consolidation, conversion, share
exchange or other reorganization or similar event or transaction.


 


“Estimated Income Tax Obligation”
shall mean, for purposes of calculating Quarterly Estimated Income Tax, 100 percent of the federal, state and local tax liability
of the current year, determined on an annualized basis as of the applicable calendar quarter after taking into account prior distributions
of Quarterly Estimated Income Tax made in that calendar year.


 


“Exchange Agreement”
shall mean that certain Exchange Agreement dated as of [       ], 2013, between Pubco and RCAP, as the same may be amended from time
to time in accordance with the terms thereof.


 


“Exchange Rate” shall
have the meaning set forth in the Exchange Agreement.


 


“Fiscal Year” shall
mean, except as otherwise required by Applicable Law, for the Company’s financial reporting and federal income tax purposes,
a period commencing January 1 and ending December 31 of each year, or such other period as the Managing Member may determine.


 


“Gross Asset Value” shall
mean, with respect to any asset of the Company, such asset’s adjusted basis for 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,
without reduction for liabilities, as determined by the contributing Member and the Company on the date of contribution thereof;


 




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(b)          if
the Managing Member determines that an adjustment is necessary or appropriate to reflect the relative economic interests of the
Members, the Gross Asset Values of all Company assets shall be adjusted in accordance with Treas. Reg. §§ 1.704-1(b)(2)(iv)(f)
and (g) to equal their respective gross fair market values, without reduction for liabilities, as reasonably determined by the
Managing Member, as of the following times:


 


(i)          Capital
Contribution (other than a de minimis Capital Contribution) to the Company by a new or existing Member as consideration
for a Membership Interest;


 


(ii)         the
distribution by the Company to a Member of more than a de minimis amount of Company assets as consideration for the repurchase
or redemption of a Membership Interest;


 


(iii)        the
liquidation of the Company within the meaning of Treas. Reg. § 1.704-1(b)(2)(ii)(g); and


 


(iv)        the
grant of an interest in the Company (other than a de minimis interest) as consideration for the provision of services to
or for the benefit of the Company by an existing Member acting in a partner capacity, or by a new Member acting in a partner capacity
or in anticipation of becoming a Member by such Member;


 


(c)          the
Gross Asset Values of Company assets distributed to any Member shall be the gross fair market values of such assets (taking Section
7701(g) of the Code into account) without reduction for liabilities, as determined by the Managing Member as of the date of distribution;
and


 


(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 Sections 734(b) or 743(b) of the Code, but only to the extent that such adjustments are taken into account in
determining Capital Accounts pursuant to Treas. Reg. § 1.704-1(b)(2)(iv)(m) (as set forth in Section 6.04(e)); provided,
however, that Gross Asset Values shall not be adjusted pursuant to this paragraph (d) to the extent that the Managing Member
determines that an adjustment pursuant to paragraph (b) above is necessary or appropriate in connection with a transaction that
would otherwise result in an adjustment pursuant to this paragraph (d).


 


At all times, Gross Asset Values shall be
adjusted by any Depreciation taken into account with respect to the Company’s assets for purposes of computing Net Profit
and Net Loss.


 


“Group Equity Interests”
means, collectively, the Class A Stock, the Class B Stock, the Class A Units of each of the Operating Subsidiaries and the Class
B Units of each of the Operating Subsidiaries.


 


“Indemnitee” shall
have the meaning set forth in Section 11.02.


 


“Initiating Party”
shall have the meaning set forth in Article 13.


 




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“Investment Company Act”
shall mean the Investment Company Act of 1940, as amended.


 


“IPO” shall have
the meaning set forth in the recitals.


 


“Liability Shortfall”
shall have the meaning set forth in Section 6.05(e).


 


“Losses” shall have the
meaning set forth in Section 11.02.


 


“Majority in Interest of the Members”
shall mean: (a) when no class of Members is referenced, Members whose Units represent, in the aggregate, more than 50% of the
Company’s outstanding Units entitled to vote with respect to such matter; or (b) when a class or several classes of Members
is referenced, Members of that class or those classes whose Units represent, in the aggregate, more than 50% of the Company’s
outstanding Units of that class or those classes.


 


“Managing Member”
shall have the meaning set forth in the recitals.


 


“Member” shall
mean each Person that executes and delivers this Agreement as a member and each other Person that becomes a member of the Company
as provided herein, so long as such Person continues as a member of the Company.


 


“Membership Interest”
shall mean a Class A Unit, a Class B Unit or a membership interest in respect of any other class of Units that hereafter may
be issued by the Company in accordance with Section 3.02.


 


“Member Nonrecourse Debt”
shall mean “partner nonrecourse debt” as that term is defined in Treas. Reg. § 1.704-2(b)(4).


 


“Member Nonrecourse Debt Minimum
Gain” shall mean “partner nonrecourse debt minimum gain” as that term is defined in Treas. Reg. § 1.704-2(i).
A Member’s share of Member Nonrecourse Debt Minimum Gain shall be determined in accordance with Treas. Reg. § 1.704-2(i)(5).


 


“Member Nonrecourse Deductions”
shall mean “partner nonrecourse deductions” as that term is defined in Treas. Reg. § 1.704-2(i) , and the
amount of Member Nonrecourse Deductions with respect to a Member Nonrecourse Debt for a Company taxable year shall be determined
in accordance with the rules of Treas. Reg. § 1.704-2(i)(2).


 


“Net Profits” and
“Net Losses” for any Fiscal Year or other period shall mean, respectively, an amount equal to the Company’s
taxable income or loss for such Fiscal Year or other period as determined for federal income tax purposes by the Managing Member,
determined in accordance with Section 703(a) of the Code (for this purpose, all items of income, gain, loss or deduction required
to be stated separately pursuant to Section 703(a) of the Code shall be included in taxable income or loss), adjusted as follows:


 




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(a)          by
including as an item of gross income any tax-exempt income received by the Company and not otherwise taken into account in computing
Net Profit or Net Loss;


 


(b)          by
treating as a deductible expense any expenditure of the Company described in Section 705(a)(2)(B) of the Code (or which is treated
as a Section 705(a)(2)(B) expenditure pursuant to Treas. Reg. § 1.704-1(b)(2)(iv)(i)) and not otherwise taken into account
in computing Net Profit or Net Loss, including amounts paid or incurred to organize the Company (unless an election is made pursuant
to Section 709(b) of the Code) or to promote the sale of interests in the Company and by treating deductions for any losses incurred
in connection with the sale or exchange of Company property disallowed pursuant to Section 267(a)(1) or 707(b) of the Code as expenditures
described in Section 705(a)(2)(B) of the Code;


 


(c)          by
taking into account Depreciation in lieu of depreciation, depletion, amortization and other cost recovery deductions taken into
account in computing taxable income or loss;


 


(d)          by
computing gain or loss resulting from any disposition of Company property with respect to which gain or loss is recognized for
federal income tax purposes by reference to the Gross Asset Value of such property rather than its adjusted tax basis;


 


(e)          if
an adjustment of the Gross Asset Value of any Company asset which requires that the Capital Accounts of the Members be adjusted
pursuant to Treas. Reg. §§ 1.704-1(b)(2)(iv)(e), (f) and (g), by taking into account the amount of such adjustment
as if such adjustment represented additional Net Profit or Net Loss; and


 


(f)          by
not taking into account in computing Net Profit or Net Loss items specially allocated to the Members pursuant to Section 6.04.


 


“Nonrecourse Deductions”
shall have the meaning set forth in Treas. Reg. §§ 1.704-2(b) and 1.704-2(c).


 


“Nonrecourse Liabilities”
has the meaning set forth in Treas. Reg. § 1.704-2(b)(3).


 


“Notice” shall
have the meaning set forth in Section 14.07.


 


“Original Agreement”
shall have the meaning set forth in the recitals.


 


“Operating Subsidiaries”
collectively refers to the Company, RCS Advisory Services, LLC, and American National Stock Transfer, LLC.


 


“Operating Subsidiaries Group Units”
shall have the meaning set forth in the Exchange Agreement.


 


“Panel” shall
have the meaning set forth in Article 13.


 




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“Percentage Interest”
of any Member at any time means, as of any date of determination, the ratio (expressed as a percentage) of (i) such Member’s
Units (or, as applicable, Units of a particular class) at such time to (ii) the total issued and outstanding Units (or, as applicable,
the total issued and outstanding Units of a particular class) of the Company at such time.


 


“Permitted Transferee”
means, with respect to a Member, (a) such Member’s spouse; (b) a lineal descendant of such Member’s maternal or
paternal grandparents (or any such descendant’s spouse); (c) a Charitable Institution (as defined below); (d) a trustee of
a trust (whether inter vivos or testamentary), all of the current beneficiaries and presumptive remaindermen of which are one or
more of such Member and any of the Persons described in clause (a), (b) or (c) of this definition; (e) an entity that, for U.S.
federal income tax purposes, is disregarded as separate from its owner, of which all of the outstanding equity interests therein
are owned by one or more of such Member and any of the Persons described in clause (a), (b), (c) or (d) of this definition; (f)
a legal or personal representative of such Member in the event of his death or Disability; (g) a liquidating trust, as defined
in Treasury Regulations section 1.7701— 4(d), or other entity with comparable characteristics; and (h) its ultimate parent
corporation or other entity (the “Parent”) of which it is a direct or indirect wholly owned subsidiary or to
any wholly owned direct or indirect subsidiary of such Parent (a “Controlled Subsidiary”), it being understood
that, with respect to a Controlled Subsidiary, the later sale, liquidation or spin-off of such Controlled Subsidiary or other transaction
in which the Parent ceases to control, directly or indirectly, 100% of the equity of such Controlled Subsidiary would constitute
an indirect Transfer of an Interest, and that such Transfer may only be made in compliance with the terms and restrictions set
forth in this Agreement. For purposes of this definition: (i) “lineal descendants” shall not include any individual
adopted after attaining the age of 18 years and such adopted individual’s descendants; (ii) “Charitable Institution”
shall refer to an organization described in section 501(c)(3) of the Code which is exempt from income taxation under section 501(a)
thereof; and (iii) “presumptive remaindermen” shall refer to those Persons entitled to a share of a trust’s assets
if it were then to terminate.


 


“Permitted Transferee Member”
shall mean a Permitted Transferee that is admitted as a Member pursuant to the terms of this Agreement.


 


“Person” shall
mean an individual, general partnership, limited partnership, limited liability partnership, limited liability company, corporation,
joint venture, trust, business trust, cooperative or association or other legal entity or organization.


 


“Pubco” shall
have the meaning set forth in the preamble.


 


“Quarterly Estimated Income Tax”
shall mean the Estimated Income Tax Obligation of a Member with respect to the applicable calendar quarter, based on the assumption
that the Member is an individual or, if a greater amount of tax would result, a corporate resident of New York City subject to
the maximum federal, New York State and New York City income tax rates arising from the allocation to such Member of taxable income
that is earned by the Company for all periods after the Closing Date (computed without regard to any deduction available to Pubco
arising out of any exchange pursuant to the Exchange Agreement); provided that if the Annual Income Tax Liability of a Member
for a calendar year is less than the sum of the Quarterly Estimated Income Tax distributed to such Member pursuant to Section
5.02 for such calendar year, the amount of the subsequent distribution or distributions, as applicable, of Quarterly Estimated
Income Tax shall be reduced by such excess amount.


 




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“RCAP” shall have the
meaning set forth in the preamble.


 


“Registration Rights Agreement”
shall mean the Registration Rights Agreement dated as of [             ],
2013, among Pubco and the shareholders party thereto, as the same may be amended from time to time in accordance with the terms
thereof.


 


“Regulatory Allocations”
shall have the meaning set forth in Section 6.04(e).


 


“Relative Value Determination”
shall mean a written determination by the Audit Committee of the Board of Directors of PubCo, rendered in connection with PubCo’s
contribution to the Operating Subsidiaries of the net proceeds of an issuance of shares of capital stock of PubCo in accordance
with Sections 3.02(d), 3.02(e) or 3.02(f), of the relative equity value of each Operating Subsidiary; provided,
however, that if the Operating Subsidiaries shall have received a valuation or an opinion from a financial advisor of national
reputation regarding such relative values dated within 90 days of the applicable contribution date pursuant to the applicable subsection
of Section 3.02, and the Audit Committee of the Board of Directors of PubCo shall have determined in its good faith judgment
that no material change has occurred, or is expected to occur prior to such contribution date, with respect to the Operating Subsidiaries,
the Operating Subsidiaries may elect to use such valuation or opinion.


 


“Responding Party”
shall have the meaning set forth in Article 13.


 


“Securities Act” shall
mean the Securities Act of 1933, as amended.


 


“Subsidiary Partnership”
shall mean an entity which is a partnership for U.S. federal income tax purposes and with respect to which the Company Controls
(as defined in the Tax Receivable Agreement), directly or indirectly, the general partner or managing member of such entity or
otherwise Controls such entity.


 


“Tax Matters Member”
shall have the meaning set forth in Section 6.07.


 


“Tax Receivable Agreement”
shall mean the Tax Receivable Agreement, dated as of [      ], 2013, among Pubco, the Company,
RCAP and any other parties thereto, as the same may be amended from time to time in accordance with the terms thereof.


 


“Transfer” shall
have the meaning set forth in Section 9.01.


 


“Transaction Documents”
shall mean, collectively, this Agreement, the limited liability company agreements of the other Operating Subsidiaries (as
they each may be amended from time to time in accordance with the terms thereof), the Exchange Agreement, the Registration Rights
Agreement and the Tax Receivable Agreement.


 


“Treasury Regulations”
or “Treas. Reg.” shall mean the Federal income tax regulations promulgated under the Code, as such
Treasury Regulations may be amended from time to time (it being understood that all references herein to specific sections of the
Treasury Regulations shall be deemed also to refer to any corresponding provisions of succeeding Treasury Regulations).


 




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“Unit” shall have
the meaning set forth in Section 3.01(a).


 


Section
1.02. Other Definitional and Interpretative Provisions. The words
“hereof, “herein” and “hereunder” and words of like import used in this Agreement shall refer to
this Agreement as a whole and not to any particular provision of this Agreement. The headings and captions herein are included
for convenience of reference only and shall be ignored in the construction or interpretation hereof. References to Articles, Sections
and Exhibits are to Articles, Sections and Exhibits of this Agreement unless otherwise specified. All Exhibits annexed hereto
or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized
term used in any Exhibit but not otherwise defined therein shall have the meaning ascribed to such term in this Agreement. Any
singular term in this Agreement shall be deemed to include the plural, and any plural term the singular. Whenever the words “include”,
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words
“without limitation”, whether or not they are in fact followed by those words or words of like import. “Writing”,
“written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic
media) in a visible form. References to any agreement or contract are to that agreement or contract as amended, modified or supplemented
from time to time in accordance with the terms thereof. References to any Person include the successors and permitted assigns
of that Person. References from or through any date mean, unless otherwise specified, from and including or through and including,
respectively. References to “law”, “laws” or to a particular statute or law shall be deemed also to include
any and all Applicable Laws.


 


ARTICLE
2

Organization


 


Section
2.01. Formation of Limited Liability Company. The Company was
formed as a Delaware limited liability company on August 29, 2007 by the execution and filing of a Certificate of Formation (the
“Certificate”) by an authorized person under and pursuant to the Delaware Act, which Certificate was amended
on September 20, 2007 by the execution and filing of a certificate of amendment thereto. The Members agree to continue the Company
as a limited liability company under the Delaware Act, upon the terms and subject to the conditions set forth in this Agreement.
The rights, powers, duties, obligations and liabilities of the Members shall be determined pursuant to the Delaware Act and this
Agreement. To the extent that the rights, powers, duties, obligations and liabilities of any Member are different by reason of
any provision of this Agreement than they would be in the absence of such provision, this Agreement shall, to the extent permitted
by the Delaware Act, control.


 


Section
2.02. Company Name. The name of the Company is Realty Capital
Securities, LLC. The business of the Company may be conducted under that name or such other names as the Managing Member may from
time to time designate; provided, however, that the Company complies with Applicable Law relating to name changes and the
use of fictitious and assumed names.


 




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Section
2.03. Purposes of the Company. The business of the Company shall
be to carry on any lawful business or activity and to have and exercise all of the powers, rights and privileges which a limited
liability company organized pursuant to the Delaware Act may have and exercise. The Company shall not conduct any business which
is forbidden by or contrary to Applicable Law.


 


Section
2.04. Principal Place of Business. The principal place of business
of the Company shall be 405 Park Ave., 15th Floor, New York, NY 10022. The Company
may establish or abandon from time to time such additional offices and places of business as the Managing Member may deem appropriate
in the conduct of the Company’s business.


 


Section
2.05. Registered Office and Agent. The name of the registered
agent for service of process of the Company and the address of the Company’s registered office in the State of Delaware shall
be c/o Corporation Service Company, 2711 Centerville Road, Suite 400, City of Wilmington, County of New Castle, Delaware 19808,
or such other agent or office in the State of Delaware as the Managing Member or the officers may from time to time determine.


 


Section
2.06. Qualification in Other Jurisdictions. The Managing Member or the President shall, or shall cause its
or his or her designee to, execute, deliver and file certificates (and any amendments and/or restatements thereof) necessary
for the Company to qualify to do business in the jurisdictions in which the Company may wish to conduct business. In those
jurisdictions in which the Company may wish to conduct business in which qualification or registration under assumed or
fictitious names is required or desirable, the Managing Member or the President shall cause the Company to be so qualified or
registered in compliance with Applicable Law.


 


Section
2.07. Term. The term of the Company shall continue indefinitely
unless the Company is dissolved in accordance with the provisions of this Agreement and the Delaware Act.


 


Section
2.08. Tax Treatment as Partnership. The Members intend that
the Company shall not be a partnership (including a limited partnership) or joint venture, and that no Member or officer shall
be a partner or joint venturer of any other Member or officer by virtue of this Agreement, for any purposes other than as is set
forth in the last sentence of this Section 2.08, and this Agreement shall not be construed to the contrary. The Members
intend that the Company be treated as a partnership under Treas. Reg. §301.7701-3 and analogous provisions of state and local
tax laws, and the Company shall not elect to be treated as, and no Member shall file any election with any taxing authority to
have the Company treated as, an association taxable as a corporation.


 




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ARTICLE 3


Capitalization


 


Section
3.01. Units; Capitalization.


 


(a)          Units;
Capitalization. Each Member’s interest in the Company, including such Member’s interest, if any, in the capital,
income, gain, loss, deduction and expense of the Company and the right to vote, if any, on certain Company matters as provided
in this Agreement, shall be represented by units of limited liability company interests (each, a “Unit”). The
Company shall have two authorized classes of Units, designated as “Class A Units” and “Class B Units.”
The Company shall be authorized to issue an unlimited number of Class A Units and Class B Units in compliance with the terms
of this Agreement. The ownership by a Member of Units shall entitle such Member to allocations of profits and losses and other
items and distributions of cash and other property as is set forth in Article 5 and Article 6. Except as otherwise
provided in the Delaware Act or as expressly provided herein, Members holding Class B Units, in their capacities as such, shall
have no voting, consent or approval rights with respect to any matters relating to the Company or this Agreement.


 


(b)          Certificates;
Legends. Units shall be issued in non certificated form; provided, however, that, at the request of any Member, the
Managing Member shall cause the Company to issue one or more certificates to such Member representing in the aggregate the Units
held by such Member. If any Unit certificate is issued, then such certificate shall bear a legend substantially in the following
form:


 


This certificate evidences Units representing a membership
interest in Realty Capital Securities, LLC and shall be a security within the meaning of Article 8 of the Uniform Commercial Code.


 


The membership interest in Realty Capital Securities,
LLC represented by this certificate is subject to restrictions on transfer set forth in the Second Amended and Restated Limited
Liability Company Agreement of Realty Capital Securities, LLC dated as of [       ], 2013, among Realty Capital Securities, LLC and each
of the Members from time to time party thereto, as the same may be amended from time to time.


 


(c)          List
of Units Outstanding. The aggregate number of outstanding Units shall be set forth on Exhibit A attached hereto, as
the same may be amended from time to time by the Managing Member in accordance with the terms hereof.


 


Section
3.02. Authorization and Issuance of Additional Units.


 


(a)          The
Managing Member shall have the right to cause the Company to issue and/or create and issue at any time after the date hereof, and
for such amount and form of consideration as the Managing Member may determine, additional Units (of Class A Units, Class B Units
or new classes) or other Equity Securities of the Company (including creating classes or series thereof having such powers, designations,
preferences and rights as may be determined by the Managing Member), subject to Section 14.08 and to the remaining provisions
of this Section 3.02. The Managing Member shall have the power to make such amendments to this Agreement in order to provide
for such powers, designations, preferences and rights as the Managing Member in its discretion deems necessary or appropriate to
give effect to such additional authorization or issuance in accordance with the provisions of this Section 3.02(a), subject
to Section 14.08 and Section 3.02(b).


 


(b)          Notwithstanding
anything in this Section 3.02 to the contrary, the Managing Member shall not be entitled to cause the Company to issue any
Units or other Equity Securities of the Company (other than Class A Units issued pursuant to Sections 3.02(d), 3.02(e)
or 3.02(f)) without the prior written consent of the holders of a Majority in Interest of the Class B Units.


 




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(c)          If,
as a result of an exchange pursuant to the Exchange Agreement, PubCo acquires (in any manner) Class B Units, each such Class B
Unit acquired by PubCo will automatically convert into one Class A Unit.


 


(d)          At
any time Pubco issues one or more shares of Class A Stock (other than an issuance of the type covered by Section 3.02(f)):
(i) Pubco shall contribute to the Company and the other Operating Subsidiaries (allocated among them in accordance with their relative
equity values at the time, as determined pursuant to the Relative Value Determination) all  the net proceeds (if any) received
by Pubco with respect to such share or shares of Class A Stock; and (ii) the Managing Member shall cause the Company to issue,
in exchange for the portion of the net proceeds contributed by Pubco to the Company (as determined in accordance with the preceding
clause), the same number of Class A Units registered in the name of Pubco as the number of shares of Class A Stock so issued by
PubCo.


 


(e)          At
any time Pubco issues one or more shares of capital stock of Pubco (other than Class A Stock or Class B Stock): (i) Pubco shall
contribute to the Company and the other Operating Subsidiaries (allocated among them in accordance with their relative equity values
at the time, as determined pursuant to the Relative Value Determination) all  the net proceeds (if any) received by Pubco with
respect to such share or shares of capital stock; and (ii) subject to the provisions of Section 3.02(a), 3.02(b)
and 14.08, the Managing Member shall cause the Company to issue, in exchange for the portion of the net proceeds contributed
to the Company (as determined in accordance with the preceding clause), a corresponding number of Units or other Equity Securities
of the Company (other than Class A Units) (such corresponding number of Units or Equity Securities to be determined in good faith
by the Managing Member, taking into account the powers, designations, preferences and rights of such capital stock) registered
in the name of Pubco.


 


(f)          At
any time Pubco issues one or more shares of Class A Stock in connection with an equity incentive program, whether such share or
shares are issued upon exercise of an option, settlement of a restricted stock unit, as restricted stock or otherwise: (i) Pubco
shall contribute to the Company and the other Operating Subsidiaries (allocated among them in accordance with their relative equity
values at the time, as determined pursuant to the Relative Value Determination) all  the net proceeds (if any) received by Pubco
from or otherwise in connection with such issuance of one or more shares of Class A Stock, including the exercise price of any
option exercised; and (ii) the Managing Member shall cause the Company to issue, in exchange for the portion of the net proceeds
thereof contributed to Company (as determined in accordance with the preceding clause), the same number of Class A Units registered
in the name of Pubco as the number of shares of Class A Stock so issued by PubCo. If any such shares of Class A Stock so issued
by Pubco in connection with an equity incentive program are subject to vesting or forfeiture provisions, then the Class A Units
that are issued by the Company to Pubco in connection therewith in accordance with the preceding provisions of this Section
3.02(f) shall be subject to vesting or forfeiture on the same basis; if any such shares of Class A Stock vest or are forfeited,
then the same number of Class A Units issued by the Company in accordance with the preceding provisions of this Section 3.02(f)
shall automatically vest or be forfeited. Any cash or property held by either Pubco or the Company or on either’s behalf
in respect of dividends paid on restricted Class A Stock that fails to vest shall be returned to the Company upon the forfeiture
of such restricted Class A Stock.


 




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Section
3.03. Redemption of Class A Stock. If, at any time, one or more
shares of Class A Stock are redeemed (whether by exercise of a put or call, automatically or by means of another arrangement) by
PubCo for cash, then the Managing Member shall cause the Company, concurrently with such redemption of Class A Stock, to redeem
the same number of Class A Units held by PubCo, at an aggregate redemption price equal to the aggregate redemption price of the
share or shares of Class A Stock being redeemed by PubCo (plus any expenses related thereto) and upon such other terms as are the
same for the share or shares of Class A Stock being redeemed by PubCo.


 


Section
3.04. Subdivisions or Combinations. Any subdivision (by any stock
split, unit split, stock dividend, unit distribution, reclassification, reorganization, recapitalization or otherwise) or combination
(by reverse stock split, reverse unit split, reclassification, reorganization, recapitalization or otherwise) of a class, series
or type of Group Equity Interest shall be accompanied by an identical subdivision or combination, as applicable, of the other
classes, series or types of Group Equity Interests.


 


ARTICLE
4

Members


 


Section
4.01. Names and Addresses. The names and addresses of the Members
are set forth on Exhibit A attached hereto and made a part hereof. The Managing Member shall cause Exhibit A to be
amended from time to time to reflect the admission of any additional Member, the withdrawal or termination of any Member, receipt
by the Company of notice of any change of address of a Member or the occurrence of any other event requiring amendment of Exhibit
A.


 


Section
4.02. No Liability for Status as Member. The debts, obligations
and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities
of the Company; and no Member shall have any personal liability whatsoever solely by reason of its status as a Member, whether
to the Company or to any creditor of the Company, for the debts, obligations or liabilities of the Company or for any of its losses
beyond the amount of such Member’s personal obligation to pay its Capital Contribution to the Company, and as otherwise set
forth in the Delaware Act or under Applicable Law. Except as otherwise expressly provided in the Delaware Act, the liability of
each Member for Capital Contributions shall be limited to the amount of Capital Contributions required to be made by such Member
in accordance with the provisions of this Agreement, but only when and to the extent the same shall become due pursuant to the
provisions of this Agreement. In no event shall any Member enter into any agreement or instrument that would create or purport
to create personal liability on the part of any other Member for any debts, obligations or liabilities of the Company without the
prior written consent of such other Member. Subject to the obligations of PubCo pursuant to Sections 3.02(d), 3.02(e)
and 3.02(f), it is acknowledged and agreed that each of Pubco and RCAP is not obligated to pay or make any future Capital
Contribution to the Company.


 




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Section
4.03. No Restrictions Of Business Pursuits Of Member. This Agreement
shall not preclude or limit in any respect the right of any Member to engage in or possess any interest in other business ventures
of any kind, nature or description.


 


Section
4.04. Transactions Between Members and the Company. Except as
otherwise provided by Applicable Law, a Member may, but shall not be obligated to, lend money to the Company, act as a surety or
guarantor for the Company, or transact other business with the Company, and has the same rights and obligations when transacting
business with the Company as a person or entity who is not a Member.


 


Section
4.05. Meeting of Members. Any action permitted or required to
be taken by the Members pursuant to this Agreement may be considered at a meeting of such Members held not less than ten days after
notification thereof shall have been given by the Managing Member to all Members. Such notification (a) may be given by the Managing
Member, in its discretion, at any time, and (b) shall be given by the Managing Member within 30 days after receipt by the Managing
Member of a request for such a meeting made by a Majority in Interest of the Members. Any such notification shall state briefly
the purpose, time and place of the meeting. All such meetings shall be held within or outside the State of Delaware at such reasonable
place as the Managing Member shall designate and during normal business hours, and may be held by means of conference telephone
or other communications equipment by means of which all persons participating in the meeting can hear each other. The Members may
vote at any such meeting in person or by proxy. Participation in such a meeting shall constitute presence in person at such meeting.
No notice of the time, place or purpose of any meeting need be given to any Member who, either before or after the time of such
meeting, waives such notice in writing. At any meeting of the Members, a Majority in Interest of the Members (which shall include
the Managing Member), whether present in person or by proxy, shall, except as otherwise provided by law or by this Agreement, constitute
a quorum. If at any meeting there shall be no quorum, the holders of a majority of the Units present or represented may adjourn
the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall have been obtained,
when any business may be transacted which might have been transacted at the meeting as first convened had there been a quorum.
Whenever any Company action is to be taken by vote of the Members at a meeting, it shall be authorized upon receiving the affirmative
vote of a Majority in Interest of the Members.


 


Section
4.06. Action by Members Without Meeting. Any action permitted or
required to be taken by the Members pursuant to this Agreement may be effected at a meeting of the Members or by consent in writing
or by electronic transmission of the holders of a Majority in Interest of the Members, with the same effect as if taken at a meeting
of the Members.


 


Section
4.07. Limited Rights of Members. Other than as provided in this Article
4 and Article 10 (and Article 7 in the case of the Managing Member),
no Member, in such Person’s capacity as a Member, shall have the power or authority to act for or on behalf of, or to bind,
the Company, or to vote at any meeting of the Members.


 




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ARTICLE 5


Distributions


 


Section
5.01. Distributions. To the extent permitted by Applicable Law
and hereunder, 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 on such record
date as the Managing Member may designate and shall be made to the Members as of the close of business on such record date on a
pro rata basis in accordance with each Member’s Percentage Interest 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 5.02 and
10.01. Promptly following the designation of a record date and the declaration of a distribution pursuant to this Section
5.01, 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.


 


Section
5.02. Distributions for Payment of Income Tax. Notwithstanding
any provision in this Agreement to the contrary, (a) on or about April 12th, June 12th, September 12th and December 12th of each
calendar year (or, if any such date is not a business day, then on the first business day following such date), the Company shall
make a distribution to each Member of such amount as may be necessary to allow such Member to pay its Quarterly Estimated Income
Tax for the applicable calendar quarter, and (b) by March 12th of the following calendar year, the Company shall make a distribution
to each current and former Member of such amount as may be necessary to allow such Member to pay its Annual Income Tax Liability
with respect to the prior calendar year. All distributions made to a Member pursuant to this Section 5.02 shall be treated
as advance distributions and shall be taken into account in determining the amount subsequently distributable to a Member under
Section 5.01. For the avoidance of doubt, all distributions made pursuant to this Section 5.02 shall be made on a
pro rata basis in accordance with Percentage Interests.


 


Section
5.03. Limitations on Distributions. Notwithstanding anything
that may be to the contrary in this Agreement, distributions to Members shall be subject to the restrictions contained in §18-607
of the Delaware Act. Without limiting the generality of the foregoing, except as required by law, no Member shall be obligated
by this Agreement to return any distribution to the Company or pay the amount of any distribution for the account of the Company
or to any creditor of the Company; provided, however, that if any court of competent jurisdiction holds that, notwithstanding
this Agreement, any Member is obligated to return or pay any part of any distribution, such obligation shall bind such Member alone
and not any other Member or any Manager.


 


Section
5.04. Withholding.


 


(a)          Authority
to Withhold; Treatment of Withheld Amounts. Notwithstanding anything that may be to the contrary in this Agreement, each Member
hereby authorizes the Company and the Managing Member on behalf of the Company to withhold and to pay over, or otherwise to pay,
any withholding or other taxes payable by the Company (pursuant to any provision of United States federal, state or local or foreign
law) with respect to such Member or as a result of such Member’s participation in the Company; and if and to the extent that
the Company shall be required to withhold or pay any such withholding or other taxes, such Member shall be deemed for all purposes
of this Agreement to have received a payment from the Company as of the time such withholding or other tax is paid, which payment
shall be deemed to be a distribution with respect to such Member’s Membership Interest in the Company.


 




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(b)          Indemnification.
Each Member shall, to the fullest extent permitted by Applicable Law, indemnify and hold harmless the Managing Member and each
other Person (other than the Company) who is or who is deemed to be the responsible withholding agent for United States federal,
state or local or foreign income tax purposes against all claims, liabilities and expenses of whatever nature (other than any claims,
liabilities and expenses in the nature of penalties and accrued interest thereon that result from such Managing Member’s
or such other Person’s gross negligence, willful misconduct or fraud) relating to the Company’s, the Managing Member’s
or such other Person’s obligation to withhold and to pay over, or otherwise to pay, any withholding or other taxes payable
by the Company or any of its Affiliates with respect to such Member or as a result of such Member’s participation in the
Company.


 


ARTICLE 6


Allocations
and Tax Matters


 


Section
6.01. Capital Accounts. There shall be established for each
Member on the books of the Company a capital account (a “Capital Account”) initially reflecting an amount equal
to such Member’s initial Capital Contribution, if any. The Capital Accounts shall be maintained for the Members as follows:


 


(a)          to
each Member’s Capital Account there shall be credited:


 


(i)          such
Member’s Capital Contributions;


 


(ii)         such
Member’s distributive share of Net Profit and any items in the nature of income or gain which are specially allocated to
such Member pursuant to Sections 6.03 and 6.04; and


 


(iii)        the
amount of any Company liabilities assumed by such Member or which are secured by any asset distributed to such Member; and


 


(b)          to
each Member’s Capital Account there shall be debited:


 


(i)          the
amount of cash and the Gross Asset Value of any property distributed to such Member pursuant to any provision of this Agreement;


 


(ii)         such
Member’s distributive share of Net Loss and any items in the nature of expenses or losses which are specially allocated to
such Member pursuant to Sections 6.03 and 6.04; and


 


(iii)        the
amount of any liabilities of such Member assumed by the Company or which are secured by any asset contributed by such Member to
the Company.


 




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(c)          Transfer
of Capital Accounts. In the event of any transfer of any Membership Interest in accordance with Section 9.01, Section
9.02 or Section 9.03, the transferee shall succeed to the Capital Account of the transferor to the extent it relates
to the transferred Membership Interest.


 


(d)          Negative
Balances; Interest. None of the Members shall have any obligation to the Company or to any other Member to restore any negative
balance in its Capital Account. No interest shall be paid by the Company on any Capital Contributions.


 


(e)          No
Withdrawal. No Person shall be entitled to withdraw any part of such Person’s Capital Contributions or Capital Account
or to receive any distribution from the Company, except as expressly provided herein.


 


Section
6.02. Additional Capital Contributions. No Member shall be required
to make any additional Capital Contributions to the Company or lend any funds to the Company, although any Member may agree with
the Managing Member and become obligated to do so.


 


Section
6.03. Allocations of Net Profits and Net Losses. After giving
effect to the allocations in Section 6.04, Net Profits, Net Losses and, to the extent necessary, individual items of income,
gain, loss or deduction, of the Company, without duplication, for any Fiscal Year or other period shall be allocated to the Members
in proportion to their respective Percentage Interests.


 


Section
6.04. Special Allocations. Notwithstanding anything that may
be to the contrary in this Agreement, the following allocations shall be made prior to any other allocations under this Agreement
and in the following order of priority:


 


(a)          Minimum
gain shall be allocated as follows:


 


(i)          Except
as otherwise provided in Treas. Reg. § 1.704-2(f), if there is a net decrease in Company Minimum Gain during any Fiscal
Year or period, each Member shall be specially allocated items of Company income and gain for such Fiscal Year or period (and,
if necessary, subsequent Fiscal Years or periods) in an amount equal to such Member’s share of the net decrease in Company
Minimum Gain to the extent required by Treas. Reg. § 1.704-2(f). The items to be so allocated shall be determined in
accordance with Treas. Reg. §§ 1.704-2(f) and (i). This provision is intended to comply with the minimum gain chargeback
requirements of Treas. Reg. § 1.704-2(f) and shall be interpreted and applied consistently therewith. Allocations pursuant
to this Section 6.04(a)(i) shall be made in proportion to the respective amounts required to be allocated to each Member
pursuant hereto.


 




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(ii)         Except
as otherwise provided in Treas. Reg. § 1.704-2(i)(4), if there is a net decrease in the Member Nonrecourse Debt Minimum
Gain during any Fiscal Year or period, each Member who has a share of the Member Nonrecourse Debt Minimum Gain, determined in accordance
with Treas. Reg. §  1.704-2(i)(5), shall be specially allocated items of Company income and gain for such Fiscal Year
or period (and, if necessary, subsequent Fiscal Years or periods) in an amount equal to that Member’s share of the net decrease
in the Member Nonrecourse Debt Minimum Gain to the extent and in the manner required by Treas. Reg. § 1.704-2(i). The
items to be so allocated shall be determined in accordance with Treas. Reg. §§ 1.704-2(i)(4) and (j)(2). This provision
is intended to comply with the minimum gain chargeback requirement with respect to Member Nonrecourse Debt contained in Treas.
Reg. § 1.704-2(i)(4) and shall be interpreted and applied consistently therewith. Allocations pursuant to this Section
6.04(a)(ii) shall be made in proportion to the respective amounts required to be allocated to each Member pursuant hereto.


 


(b)          If
a Member unexpectedly receives any adjustments, allocations or distributions described in Treas. Reg. §§ 1.704-1(b)(2)(ii)(d)(4),
(5) or (6) that would not prevent such Member from having, or would cause such Member to have, an Adjusted Capital Account Deficit,
then items of Company income (including gross income) and gain shall be specially allocated to such Member in an amount and manner
sufficient to eliminate, as quickly as possible, such Adjusted Capital Account Deficit. This Section 6.04(b) is intended
to constitute a “qualified income offset” under Treas. Reg. § 1.704-l(b)(2)(ii)(d) and shall be interpreted and
applied consistently therewith.


 


(c)          Nonrecourse
Deductions, if any, for any Fiscal Year or period shall be allocated to the Members in accordance with their respective Percentage
Interests.


 


(d)          Member
Nonrecourse Deductions, if any, for any Fiscal Year or period with respect to a Member Nonrecourse Debt shall be specially allocated
to the Member that bears the economic risk of loss for such Member Nonrecourse Debt (as determined under Treas. Reg. §§ 1.704-2(b)(4)
and 1.704-2(i)(1)).


 


(e)          To
the extent an adjustment to the adjusted tax basis of any asset of the Company pursuant to Section 734(b) of the Code or Section
743(b) of the Code is required, pursuant to Treas. Reg. § 1.704-1(b)(2)(iv)(m), to be taken into account in determining
Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment
increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated
among the Members in a manner consistent with the manner in which each of their respective Capital Accounts are required to be
adjusted pursuant to such section of the Treasury Regulations.


 


(f)          The
allocations set forth in Section 6.04(a)-(e) (the “Regulatory Allocations”) are intended to comply with
certain requirements of the Treasury Regulations. It is the intent of the Members that, to the extent possible, all Regulatory
Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items of Company income,
gain, loss or deduction. Therefore, notwithstanding any other provision of this Agreement (other than the Regulatory Allocations),
the Managing Member shall make such offsetting special allocations of Company income, gain, loss or deduction in whatever manner
it determines appropriate so that, after such offsetting allocations are made, each Member’s Capital Account balance is,
to the extent possible, equal to the Capital Account balance such Member would have had if the Regulatory Allocations were not
part of this Agreement and all Company items were allocated pursuant to Section 6.03. In exercising discretion with respect
to such offsetting special allocations, the Managing Member shall take into account future Regulatory Allocations under Section
6.04(a) that, although not yet made, are likely to offset other Regulatory Allocations previously made under Section 6.04(c)
or 6.04(d).


 




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(g)          Any
deductions attributable to guaranteed payments under Section 707(c) of the Code, and if the amount of such guaranteed payments
shall not be sufficient, other expenses deductible under the Code, shall be allocated, among the Members prior to the allocation
of Net Profits or Net Losses pursuant to Section 6.03, to the extent necessary to cause their Capital Accounts to be in
proportion to their Percentage Interests.


 


Section
6.05. Allocation for Income Tax Purposes.


 


(a)          For
federal, state and local income tax purposes, all items of taxable income, gain, loss and deduction for each Fiscal Year or period
shall be allocated among the Members in accordance with the manner in which the corresponding items were allocated under Sections
6.03 and 6.04, except as provided in Sections 6.05(b) and 6.05(c) below.


 


(b)          If
property is contributed to the Company by a Member and there is a difference between the basis of such property to the Company
for federal income tax purposes and its fair market value at the time of its contribution, then items of income, gain, deduction
and loss with respect to such property, as computed for federal income tax purposes (but not for book purposes), shall be allocated
under the “traditional method” among the Members so as to take account of such book/tax difference as required by Section
704(c) of the Code.


 


(c)          If
property (other than property described in Section 6.05(b)) of the Company is reflected in the Capital Accounts of the Members
and on the books of the Company at a Gross Asset Value that differs from the Company’s adjusted basis of such property for
federal income tax purposes by reason of a revaluation of such property pursuant to Treas. Reg. § 1.704-1(b)(2)(iv)(f),
then items of income, gain, deduction and loss with respect to such property, as computed for federal income tax purposes (but
not for book purposes), shall be allocated among the Members pursuant to any permissible method contained in the Treasury Regulations
promulgated under Section 704(c) of the Code selected by the Managing Member, in its sole discretion, in order to take into account
of the difference between the adjusted basis of such property for federal income tax purposes and its Gross Asset Value.


 


(d)          Without
altering the overall amount of Net Profits or gross income allocable to any Member, Net Profits or gross income taxable as ordinary
income under Sections 1245 and 1250 of the Code, or similar provisions of the Code (the “Depreciation Recapture”),
shall, to the extent possible, be allocated to those Members to whom allowances for depreciation or amortization giving rise
to Depreciation Recapture were allocated.


 


(e)          Pursuant
to Treas. Reg. § 1.752-3(a)(3), solely for purposes of determining each Member’s proportionate share of the “excess
nonrecourse liabilities” of the Company (as defined in Treas. Reg. § 1.752-3(a)(3)), the Members’ respective interests
in Company profits shall be determined under any permissible method reasonably determined by the Managing Member; provided,
however, that each Member who has contributed property to the Company shall be allocated, to the extent possible, a share
of “excess nonrecourse liabilities” of the Company which results in such Member being allocated nonrecourse liabilities
in an amount which is at least equal to the amount of income required to be allocated to such Member pursuant to Section 704(c)
of the Code and the Treasury Regulations promulgated thereunder (the “Liability Shortfall”). If there is an
insufficient amount of nonrecourse liabilities to be able to allocate to each Member nonrecourse liabilities equal to the Liability
Shortfall, nonrecourse liabilities shall be allocated to each Member in pro rata in accordance with each such Member’s Liability
Shortfall.


 




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Section
6.06. Regulatory Compliance. The foregoing provisions are intended
to comply with Treas. Reg. §§ 1.704-1(b) and 1.704-2, and shall be interpreted and applied in a manner consistent
with such Treasury Regulations. If the Managing Member shall reasonably determine that it is prudent to modify the manner in which
the Capital Accounts, or any debits or credits thereto, are computed, or the manner in which any allocations are made under Sections
6.03 and 6.04, in order to comply with Sections 704(b) and 704(c) of the Code and Treasury Regulations thereunder, the
Managing Member may make such modifications, provided, however, that (a) the Managing Member shall not modify the
manner of making distributions pursuant to this Agreement, (b) all allocations of Company income, gain, loss and deduction continue
to have “substantial economic effect” within the meaning of Section 704(b) of the Code, and (c) no Member is materially
adversely affected by any such modification.


 


Section
6.07. Tax Matters Member. The Managing Member shall act as the
“tax matters partner” for the Company under Section 6231 of the Code (the “Tax Matters Member”).
All expenses incurred by the Managing Member while acting in such capacity shall be paid or reimbursed by the Company. The Managing
Member shall keep the other Members reasonably informed regarding actions the Managing Member takes in its capacity as Tax Matters
Member and shall not take any material action in such capacity without first consulting the other Members in good faith.


 


Section
6.08. Elections. Except as otherwise expressly provided herein,
all elections required or permitted to be made by the Company under the Code or other applicable tax law and all material decisions
with respect to the calculation of its taxable income or tax loss for tax purposes under the Code or other applicable tax law or
any other matter encompassed by this Article 6, shall be made by the Managing Member in accordance with Section 6.07.
As required by the Tax Receivable Agreement, the Managing Member shall make, and shall cause each Subsidiary Partnership to make,
an election under Section 754 of the Code which election shall be in effect for each taxable year in which RCAP or any Permitted
Transferee of RCAP Transfers Class B Units.


 


Section
6.09. Change of Members’ Percentage Interests. If there
is a Transfer of Units by a Member during a Fiscal Year, then there shall be a daily allocation among the Members of Net Profits
or Net Losses and the other items allocated under this Article 6 for such Fiscal Year; provided, however,
that any item or amount arising from a transaction engaged in by the Company outside the ordinary course of business shall
be taken into account as of the date thereof under the closing-of-the-books method.


 




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Section
6.10. Certain Costs And Expenses. The Company shall (a) 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 business of the Company, and (b) in the sole discretion of the Managing
Member, reimburse the Managing Member for any out-of-pocket costs, fees and expenses incurred by it in connection therewith. To
the extent that the Managing Member reasonably determines in good faith that its expenses are related to the business conducted
by the Company and/or its subsidiaries (including any good faith allocation of a portion of expenses that so relate to the business
of the Company and/or its subsidiaries and that also relate to other businesses or activities of the Managing Member), then the
Managing Member may cause the Company to pay or bear all such expenses of the Managing Member, including, costs of securities offerings
not borne directly by Members, compensation and meeting costs of its Board of Directors, cost of periodic reports to its stockholders,
litigation costs and damages arising from litigation, accounting and legal costs and franchise taxes (which are not based on, or
measured by, income); provided, however, that the Company shall not pay or bear any income tax obligations of the Managing
Member. Payments under this Section 6.10 are intended to constitute reasonable compensation for past or present services
and are not “distributions” within the meaning of §18-607 of the Delaware Act.


 


ARTICLE
7

Management and Control Of Business


 


Section
7.01. Management. 


 


(a)          Subject
to the provisions of the Delaware Act and this Agreement as to action required to be authorized or approved by the Members, the
right to manage, control and conduct the business and affairs of the Company and to take any and all actions on behalf of the Company
shall be vested completely and exclusively in the Managing Member.


 


(b)          Other
than with respect to the actions described in Section 10.01(a), the Managing Member shall have the power and authority to
delegate to one or more other Persons the Managing Member’s rights and powers to manage and control the business and affairs
of the Company, including to delegate to agents and employees of a Member or the Company (including any officers thereof), and
to delegate by a management agreement or another agreement with, or otherwise to, other Persons. The Managing Member may authorize
any Person (including any Member or officer of the Company) to enter into and perform any document on behalf of the Company.


 


(c)          The
Managing Member shall have the power and authority to effectuate the sale, lease, transfer, exchange or other disposition of any,
all or substantially all of the assets of the Company (including the exercise or grant of any conversion, option, privilege or
subscription right or any other right available in connection with any assets at any time held by the Company) or the merger, consolidation,
reorganization or other combination of the Company with or into another entity.


 


Section
7.02. Investment Company Act. The Managing Member shall use its best efforts to assure that the Company shall
not be subject to registration as an investment company pursuant to the Investment Company Act.


 




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Section
7.03. Compensation and Reimbursement. The Managing Member shall
not be compensated for its services as Managing Member. The Company shall reimburse the Managing Member on a current basis for
its reasonably documented out-of-pocket expenditures made on behalf of the Company. All reimbursements for out-of-pocket expenditures
shall be reasonable in amount and in the advancement of the Company Business.


 


Section
7.04. Fiduciary Duties. The Managing Member shall have such fiduciary
duties to the Company and the Members as are generally imposed under the Delaware Act and as are owed by directors of a corporation
governed by the General Corporation Law of the State of Delaware to such corporation and its stockholders.


 


ARTICLE
8

Officers


 


Section
8.01. Officers. The officers of the Company shall be a President,
a Treasurer and a Secretary, all of whom shall be appointed by the Managing Member and who shall hold office until their successors
are appointed by the Managing Member. In addition, the Managing Member may appoint one or more Managing Directors, Vice Presidents
and such Assistant Secretaries and Assistant Treasurers as it may deem necessary or advisable. Two or more offices may be held
by the same individual. The officers of the Company may be removed by the Managing Member at any time for any reason or no reason.


 


Section
8.02. Other Officers and Agents. The Managing Member may appoint
such other officers and agents as it may deem necessary or advisable, who shall hold their offices for such terms and shall exercise
such powers and perform such duties as shall be determined from time to time by the Managing Member.


 


Section
8.03. President. The President shall be the chief executive
officer of the Company and shall have the general powers and duties of supervision and management usually vested in the office
of a chief executive officer of a company. He or she shall preside at all meetings of Members if present thereat. Except as the
Managing Member shall authorize the execution thereof in some other manner, he or she shall execute bonds, mortgages and other
contracts on behalf of the Company.


 


Section
8.04. Managing Director; Vice President. Each Managing Director and
each Vice President shall have such powers and shall perform such duties as shall be assigned to him or her by the Managing Member
or by the President.


 


Section
8.05. Treasurer. The Treasurer shall have the custody of the
Company funds and securities and shall keep full and accurate account of receipts and disbursements in a book belonging to the
Company. He or she shall deposit all moneys and other valuables in the name and to the credit of the Company in such depositaries
as may be designated by the Managing Member or the President. The Treasurer shall disburse the funds of the Company as may be ordered
by the Managing Member or the President, taking proper vouchers for such disbursements. He or she shall render to the Managing
Member and the President whenever either of them may request it, an account of all his or her transactions as Treasurer and of
the financial condition of the Company. If required by the Managing Member, the Treasurer shall give the Company a bond for the
faithful discharge of his duties in such amount and with such surety as the Managing Member shall prescribe.


 




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Section
8.06. Secretary. The Secretary shall give, or cause to be given,
notice of all meetings of Members and all other notices required by Applicable Law or by this Agreement, and in case of his or
her absence or refusal or neglect so to do, any such notice may be given by any person thereunto directed by the President, or
by the Managing Member or other Members, upon whose requisition the meeting is called as provided in this Agreement. He or she
shall record all the proceedings of the meetings of the Company in a book to be kept for that purpose, and shall perform such other
duties as may be assigned to him or her by the Managing Member or by the President.


 


Section
8.07. Assistant Treasurers and Assistant Secretaries. Assistant
Treasurers and Assistant Secretaries, if any, shall have such powers and shall perform such duties as shall be assigned to them,
respectively, by the Managing Member or by the President.


 


ARTICLE
9

Transfers of Interests; Admittance of New Members


 


Section
9.01. Transfer of Membership Interests. 


 


(a)          
Other than as provided for below in this Section 9.01 or in Section 9.02, no Member may sell, assign, transfer,
grant a participation in, pledge, hypothecate, encumber or otherwise dispose of (such transaction being herein collectively called
a “Transfer”) all or any portion of its Membership Interest except with the written consent of the Managing
Member, which may be granted or withheld in its sole discretion. Without the consent of the Managing Member (but otherwise in compliance
with Sections 9.01, 9.02 and 9.03), a Member may, at any time, (a) Transfer any portion of such Member’s
Membership Interest pursuant to the Exchange Agreement, and (b) Transfer any portion of such Member’s Membership Interest
to a Permitted Transferee of such Member. Any purported Transfer of all or a portion of a Member’s Membership Interest not
complying with this Section 9.01 shall be void ab initio and shall not create any obligation on the part of the Company
or the other Members to recognize that purported Transfer or to deal with the Person to which the Transfer purportedly was made.
A Person acquiring a Member’s Membership Interest pursuant to this Section 9.01 shall not be admitted as a substituted
or additional Member except in accordance with the requirements of Section 9.03, but such Person shall, to the extent of
the Membership Interest transferred to it, be entitled to such Member’s (i) share of distributions, (ii) share of profits
and losses, including Net Profits and Net Losses, and (iii) Capital Account in accordance with Section 6.01(c). Notwithstanding
anything in this Section 9.01 or elsewhere in this Agreement to the contrary, if a Member Transfers all or any portion of
its Membership Interest after the designation of a record date and declaration of a distribution pursuant to Section 5.01
and before the payment date of such distribution, the transferring Member (and not the Person acquiring all or any portion of its
Membership Interest) shall be entitled to receive such distribution in respect of such transferred Membership Interest.


 




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(b)          It
is intention of the parties to preserve their relative ownership of the Group Equity Interests. In furtherance of the foregoing,
the parties agree that, notwithstanding anything that may be to the contrary in this Agreement, any Transfer of units of an Operating
Subsidiary to a transferee thereof shall be accompanied by the simultaneous Transfer of an equal number of the same class, series
or type of units of the other Operating Subsidiaries to such transferee.


 


Section
9.02.         Transfer of Pubco’s Interest. Subject to Section
9.01(b), Pubco may Transfer all or any portion of its Membership Interest at any time and from time to time without the consent
of the Managing Member (if the Managing Member is not Pubco at such time) or any other Person. A Person acquiring Pubco’s
Membership Interest pursuant to this Section 9.02 shall not be admitted as a substituted or additional Member except in
accordance with the requirements of Section 9.03, but such Person shall, to the extent of the Membership Interest transferred
to it, be entitled to (a) Pubco’s share of distributions, (b) Pubco’s share of profits and losses, including Net Profits
and Net Losses, and (c) Pubco’s Capital Account in accordance with Section 6.01(c).


 


Section
9.03. Recognition of Transfer; Substituted and Additional Members.



 


(a)          No
direct or indirect Transfer of all or any portion of a Member’s Membership Interest may be made, and no purchaser, assignee,
transferee or other recipient of all or any part of such Membership Interest shall be admitted to the Company as a substituted
or additional Member hereunder, unless:


 


(i)          the
provisions of Section 9.01 or Section 9.02, as applicable, shall have been complied with;


 


(ii)         in
the case of a substituted or additional Member (other than a Permitted Transferee), the admission of the purchaser, assignee, transferee
or other recipient as a substituted or additional Member shall have been approved by the Managing Member;


 


(iii)        the
Managing Member shall have been furnished with the documents effecting such Transfer, in form and substance reasonably satisfactory
to the Managing Member, executed and acknowledged by both the seller, assignor or transferor and the purchaser, assignee, transferee
or other recipient, and the Managing Member shall have executed (and the Managing Member hereby agrees to execute) any other documents
on behalf of itself and the Members required to effect the Transfer;


 


(iv)        the
provisions of Section 9.03(b) shall have been complied with;


 


(v)         the
Managing Member shall be reasonably satisfied that such Transfer will not (A) result in a violation of the Securities Act or any
other Applicable Law; (B) cause an assignment under the Investment Company Act; or (C) cause the Company to qualify as a “publicly
traded partnership,” as that term is defined in Section 7704 of the Code;


 




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(vi)        such
Transfer would not cause the Company to lose its status as a partnership for federal income tax purposes and, without limiting
the generality of the foregoing, such Transfer shall not be effected on or through an “established securities market”
or a “secondary market or the substantial equivalent thereof,” as such terms are used in Section 1.7704-1 of the Treasury
Regulations, and the transferring Member and the transferee shall each have provided a certificate to that effect;


 


(vii)       the
Managing Member shall have received the opinion of counsel, if any, required by Section 9.03(c) in connection with such
Transfer; and


 


(viii)      all
necessary instruments reflecting such Transfer and/or admission shall have been filed in each jurisdiction in which such filing
is necessary in order to qualify the Company to conduct business or to preserve the limited liability of the Members.


 


(b)          Each
substituted Member and additional Member shall be bound by all of the provisions of this Agreement. Each substituted Member and
additional Member, as a condition to its admission as a Member, shall execute and acknowledge such instruments (including a counterpart
of this Agreement or a joinder agreement in customary form), in form and substance reasonably satisfactory to the Managing Member,
as the Managing Member reasonably deems necessary or desirable to effectuate such admission and to confirm the agreement of such
substituted or additional Member to be bound by all the terms and provisions of this Agreement with respect to the Membership Interest
acquired by such substituted or additional Member. The admission of a substituted or additional Member shall not require the consent
of any Member other than the Managing Member (if and to the extent such consent of the Managing Member is expressly required by
this Article 9). As promptly as practicable after the admission of a substituted or additional Member, the books and records
of the Company and Exhibit A shall be changed to reflect such admission.


 


(c)          As
a further condition to any Transfer of all or any part of a Member’s Membership Interest, the Managing Member may, in its
discretion, require a written opinion of counsel to the transferring Member reasonably satisfactory to the Managing Member, obtained
at the sole expense of the transferring Member, reasonably satisfactory in form and substance to the Managing Member, as to such
matters as are customary and appropriate in transactions of this type, including (or, in the case of any Transfer made to a Permitted
Transferee, limited to an opinion) to the effect that such Transfer will not result in a violation of the registration or other
requirements of the Securities Act or any other federal or state securities laws. No such opinion, however, shall be required in
connection with a Transfer made pursuant to the Exchange Agreement.


 


Section
9.04.         Expense of Transfer; Indemnification. Each party hereto
shall bear his or its own expenses in connection with the Transfer of a Member’s Membership Interest, including any filing
and recording costs and the reasonable fees and disbursements of counsel, except that the Company shall bear any transfer taxes,
stamp taxes or duties or other similar taxes in connection with, or arising by reason of, such Transfer. The transferring Member
hereby indemnifies the Managing Member and the Company against any losses, claims, damages or liabilities to which the Managing
Member, the Company, or any of their Affiliates may become subject arising out of or based upon any false representation or warranty
made by, or breach or failure to comply with any covenant or agreement of, such transferring Member or such transferee in connection
with such Transfer.


 




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Section
9.05. Exchange Agreement. In connection with any Transfer of
any portion of a Member’s Membership Interest pursuant to the Exchange Agreement, the Managing Member shall cause the Company
to take any action as may be required under the Exchange Agreement or requested by any party thereto to effect such Transfer promptly.


 


ARTICLE 10


Dissolution
and Termination


 


Section
10.01. Dissolution.


 


(a)          The
Company shall be dissolved and its affairs wound up upon the occurrence of any of the following events:


 


(i)          an
election by the Managing Member to dissolve, wind up or liquidate the Company; provided, however, that the Managing
Member has received the prior written consent of RCAP;


 


(ii)         the
sale, disposition or transfer of all or substantially all of the assets of the Company; provided, however, that the
Managing Member shall not allow the Company to make such sale, disposition or transfer to an entity which is treated as a corporation
for U.S. federal income tax purposes without the prior written consent of RCAP, unless such sale, disposition or transfer involves
the sale of all or substantially all of the assets of the Company to an unrelated third party that is not an Affiliate of the Managing
Member or the Company;


 


(iii)        the
entry of a decree of dissolution of the Company under §18-802 of the Delaware Act; or


 


(iv)        at
any time there are no members of the Company, unless the Company is continued in accordance with the Delaware Act.


 


(b)          In
the event of a dissolution pursuant to Section 10.01 (a), 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 distributions made to Members pursuant
to Section 10.01(f) 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.


 


(c)          Dissolution
of the Company shall be effective on the day on which the event occurs giving rise to the dissolution, but the Company will not
terminate until the assets of the Company have been distributed as provided in this Section 10.01 and any filings required
by the Delaware Act have been made.


 




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(d)          Upon
dissolution, the Company shall be liquidated and wound up in an orderly manner in accordance with the provisions of this Section
10.01. The Managing Member or a Person selected by the Managing Member to act as liquidating trustee, shall wind up the affairs
of the Company pursuant to this Agreement. The Managing Member or liquidating trustee, as applicable, is authorized, subject to
the Delaware Act, to sell, exchange or otherwise dispose of the assets of the Company, or to distribute Company assets in kind,
as the Managing Member or liquidating trustee shall determine to be in the best interests of the Members. The reasonable out-of-pocket
expenses incurred by the Managing Member or liquidating trustee in connection with winding up the Company (including legal and
accounting fees and expenses), all other liabilities or losses of the Company or the Managing Member or liquidating trustee incurred
in accordance with the terms of this Agreement, and reasonable compensation for the services of the liquidating trustee shall be
borne by the Company. Except as otherwise required by law and except in connection with any gross negligence or willful misconduct
of the Managing Member or liquidating trustee, the Managing Member or liquidating trustee shall not be liable to any Member or
the Company for any loss attributable to any act or omission of the Managing Member or liquidating trustee taken in good faith
in connection with the winding up of the Company and the distribution of Company assets. The Managing Member or liquidating trustee
may consult with counsel and accountants with respect to winding up the Company and distributing its assets and shall be justified
in acting or omitting to act in accordance with the advice or opinion of such counsel or accountants, provided, however, 
that the Managing Member or liquidating trustee shall have used reasonable care in selecting such counsel or accountants.


 


(e)          Upon
dissolution of the Company, the expenses of liquidation (including compensation for the services of the liquidating trustee and
legal and accounting fees and expenses) and the Company’s liabilities and obligations to creditors shall be paid, or reasonable
provisions shall be made for payment thereof, in accordance with Applicable Law, from cash on hand or from the liquidation of Company
properties.


 


(f)          A
reasonable time shall be allowed for the orderly winding up of the business and affairs of the Company and the liquidation of its
assets pursuant to this Section 10.01 to minimize any losses otherwise attendant upon such winding up. Notwithstanding the
generality of the foregoing, within 180 calendar days after the effective date of dissolution of the Company, the assets of the
Company shall be distributed in the following manner and order: (i) all debts and obligations of the Company, if any, shall first
be paid, discharged or provided for by adequate reserves; and (ii) the balance shall be distributed to the Members in accordance
with Section 5.01.


 


(g)          The
Managing Member or liquidating trustee shall not be personally liable for the return of Capital Contributions or any portion thereof
to the Members (it being understood and agreed that any such return shall be made solely from Company assets).


 


Section
10.02. Termination. The Company shall terminate when all of
the assets of the Company, after payment or reasonable provision for the payment of all debts, liabilities and obligations of the
Company, shall have been distributed in the manner provided for in this Article 10 and the Certificate shall have been canceled
in the manner required by the Delaware Act.


 




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ARTICLE 11


Exculpation
and Indemnification


 


Section
11.01. Exculpation. To the fullest extent permitted by Applicable
Law, and except as otherwise expressly provided herein, no Indemnitee (as defined below) shall be liable to the Company or any
other Indemnitee for any Losses (as defined below), which at any time may be imposed on, incurred by, or asserted against, the
Company or any other Indemnitee as a result of or arising out of the activities of the Indemnitee in its capacity as an officer
of the Company or otherwise on behalf of the Company to the extent within the scope of the authority reasonably believed to be
conferred on such Indemnitee, except to the extent such Losses arise out of (i) the Indemnitee’s failure to act in good faith
and in a manner such Indemnitee believed to be in, or not opposed to, the best interests of the Company, and, with respect to any
criminal proceeding, the Indemnitee’s not having any reasonable cause to believe such conduct was unlawful, (ii) the Indemnitee’s
material breach of this Agreement or any other Transaction Document, or (iii) the Indemnitee’s gross negligence or willful
misconduct.


 


Section
11.02. Indemnification. To the fullest extent permitted by Applicable
Law, each of (a) the Members, the Managing Member and their respective Affiliates, (b) the stockholders, members, managers, directors,
officers, partners, employees and agents of the Members and the Managing Member and their respective Affiliates, and (c) the officers
of the Company (each, an “Indemnitee”) shall be indemnified and held harmless by the Company from and against
any and all losses, claims, damages, liabilities, expenses (including legal fees and expenses), judgments, fines, settlements and
other amounts arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative
(collectively, “Losses”), which at any time may be imposed on, incurred by, or asserted against, the Indemnitee
as a result of or arising out of this Agreement, the Company, its assets, business or affairs or the activities of the Indemnitee
in its capacity as an officer of the Company or otherwise on behalf of the Company to the extent within the scope of the authority
reasonably believed to be conferred on such Indemnitee; provided, however, that the Indemnitee shall not be
entitled to indemnification for any Losses to the extent such Losses arise out of (i) the Indemnitee’s failure to act in
good faith and in a manner such Indemnitee believed to be in, or not opposed to, the best interests of the Company, and, with respect
to any criminal proceeding, the Indemnitee’s not having any reasonable cause to believe such conduct was unlawful, (ii) the
Indemnitee’s material breach of this Agreement or any other Transaction Document, or (iii) the Indemnitee’s gross negligence
or willful misconduct. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a
plea of nolo contendere, or its equivalent, shall not, of itself, create a presumption that the Indemnitee acted in a manner specified
in clause (i), (ii) or (iii) above. Any indemnification pursuant to this Article 11 shall be made only out of the assets
of the Company and no Member shall have any personal liability on account thereof.


 


Section
11.03. Expenses. Expenses (including reasonable legal fees and
expenses) incurred by an Indemnitee in defending any claim, demand, action, suit or proceeding described in Section 11.02 shall,
from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding,
upon receipt by the Company of an undertaking by or on behalf of the Indemnitee to repay such amount if it shall be determined
that the Indemnitee is not entitled to be indemnified as provided in this Article 11.


 




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Section
11.04. Non-Exclusivity. The indemnification and advancement
of expenses set forth in this Article 11 shall not be exclusive of any other rights to which those seeking indemnification
or advancement of expenses may be entitled under any statute, the Delaware Act, this Agreement, any other agreement, a policy of
insurance or otherwise. The indemnification and advancement of expenses set forth in this Article 11 shall continue as to
an Indemnitee who has ceased to be a named Indemnitee and shall inure to the benefit of the heirs, executors, administrators, successors
and permitted assigns of such a Person.


 


Section
11.05. Insurance. The Company may purchase and maintain insurance
on behalf of the Indemnitees against any liability asserted against them and incurred by them in such capacity, or arising out
of their status as Indemnitees, whether or not the Company would have the power to indemnify them against such liability under
this Article 11.


 


ARTICLE
12

Accounting and Records


 


Section
12.01. Accounting and Records. The books and records of the
Company shall be made and maintained, and the financial position and the results of its operations recorded, at the expense of
the Company, in accordance with such method of accounting as is determined by the Managing Member. The books and records of the
Company shall reflect all Company transactions and shall be made and maintained in a manner that is appropriate and adequate for
the Company’s business.


 


Section
12.02. Tax Information. The Managing Member shall exercise commercially
reasonable efforts to send, within 75 days after the end of each Fiscal Year to each Person who was a Member at any time during
the Fiscal Year, a Schedule K-1 with respect to the Company and any other information necessary for such Member to file its income
tax returns for such Fiscal Year.


 


ARTICLE
13

Arbitration


 


The Members shall attempt in good faith
to resolve all claims, disputes and other disagreements arising hereunder (each, a “Dispute”) by negotiation.
If a Dispute between Members cannot be resolved in such manner, such Dispute shall, at the request of any Member, after providing
written notice to the other Members party to the Dispute, be submitted to arbitration in The City of New York in accordance with
the Commercial Arbitration Rules of the American Arbitration Association then in effect. The proceeding shall be confidential.
The party initially asserting the Dispute (the “Initiating Party”) shall notify the other party (the “Responding
Party”) of the name and address of the arbitrator chosen by the Initiating Party and shall specifically describe the
Dispute in issue to be submitted to arbitration. Within 30 days of receipt of such notification, the Responding Party shall notify
the Initiating Party of its answer to the Dispute, any counterclaim which it wishes to assert in the arbitration and the name and
address of the arbitrator chosen by the Responding Party. If the Responding Party does not appoint an arbitrator during such 30-day
period, appointment of the second arbitrator shall be made by the American Arbitration Association upon request of the Initiating
Party. The two arbitrators so chosen or appointed shall choose a third arbitrator, who shall serve as president of the panel of
arbitrators (the “Panel”) thus composed. If the two arbitrators so chosen or appointed fail to agree upon the
choice of a third arbitrator within 30 days from the appointment of the second arbitrator, the third arbitrator will be appointed
by the American Arbitration Association upon the request of the arbitrators or either of the parties. In all cases, the arbitrators
must be persons who are knowledgeable about, and have recognized ability and experience in dealing with, the subject matter of
the Dispute. The arbitrators will act by majority decisions. Any decision of the arbitrators shall (a) be rendered in writing and
shall bear the signatures of at least two arbitrators, and (b) identify the members of the Panel. Absent fraud or manifest error,
any such decision of the Panel shall be final, conclusive and binding on the parties to the arbitration and enforceable by a court
of competent jurisdiction. The expenses of the arbitration shall be borne equally by the parties to the arbitration; provided,
however, that each party shall pay for and bear the costs of its own experts, evidence and legal counsel, unless the
arbitrator rules otherwise in the arbitration. The parties shall complete all discovery within 30 days after the Panel is composed,
shall complete the presentation of evidence to the Panel within 15 days after the completion of discovery, and a final decision
with respect to the matter submitted to arbitration shall be rendered within 15 days after the completion of presentation of evidence.
The Members shall cause to be kept a record of the proceedings of any matter submitted to arbitration hereunder.


 




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ARTICLE
14

Miscellaneous Provisions


 


Section
14.01. Entire Agreement. This Agreement and the other Transaction
Documents constitute the entire agreement and understanding by the Members with respect to the subject matter hereof and supersede
any prior agreement or understanding by the Members with respect to such subject matter.


 


Section
14.02. Binding on Successors. The terms of this Agreement shall
inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties.


 


Section
14.03. Power of Attorney.


 


(a)          Each
of the Members hereby irrevocably makes, constitutes and appoints the Managing Member as such Member’s true and lawful representative
and attorney-in-fact in such Member’s name, place and stead, (i) to make, execute, sign and file all instruments, documents
and certificates which, from time to time, may be required to set forth any duly adopted amendment to this Agreement, and (ii)
to execute, implement and continue the valid and subsisting existence of the Company or to qualify and continue the Company as
a foreign limited liability company in all jurisdictions in which the Company may conduct business. Such power of attorney is coupled
with an interest and shall survive and continue in full force and effect notwithstanding the subsequent withdrawal from the Company
of any Member for any reason and shall survive and shall not be affected by the disability or incapacity of such Member.


 


(b)          If
any Person other than the Managing Member, Pubco or RCAP becomes a Member, such Person shall execute a power of attorney, in form
reasonably acceptable to the Managing Member, irrevocably appointing the Managing Member as such Member’s true and lawful
representative and attorney-in-fact in such Member’s name, place and stead, (i) to make, execute, sign and file all instruments,
documents and certificates which, from time to time, may be required to set forth any duly adopted amendment to this Agreement,
and (ii) to execute, implement and continue the valid and subsisting existence of the Company or to qualify and continue the Company
as a foreign limited liability company in all jurisdictions in which the Company may conduct business. Such power of attorney shall
be coupled with an interest and shall survive and continue in full force and effect notwithstanding the subsequent withdrawal from
the Company of any Member for any reason and shall survive and shall not be affected by the disability or incapacity of such Member.


 




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Section
14.04. Governing Law. This Agreement and the rights of the parties
hereunder will be governed by, construed and enforced in accordance with the laws of the State of Delaware without regard to conflicts
of law principles thereof.


 


Section
14.05. Headings. All headings herein are inserted only for convenience
and ease of reference and are not to be considered in the construction or interpretation of any provision of this Agreement.


 


Section
14.06. Severability. If any provision of this Agreement, or the application
of such provision to any Person or circumstance, shall be held illegal, invalid or unenforceable, the remainder of this Agreement
or the application of such provision to other persons or circumstances shall not be affected thereby.


 


Section
14.07. Notices. Any notice, request, demand, approval, consent, waiver
or other communication required or permitted to be given or to be served upon the Company or any Member in connection with this
Agreement (each, a “Notice”) shall be in writing and shall be (a) delivered in person, (b) sent by facsimile
transmission (with the original thereof also contemporaneously given by another method specified in this Section 14.07),
(c) sent by a nationally-recognized overnight courier service, or (d) sent by certified or registered mail (postage prepaid, return
receipt requested), to the address of such Member specified in Exhibit A, or if to the Company, at its principal office.
Any Member or the Company may change its address for Notices by giving Notice of such other address as it, he or she may from
time to time designate to all the Members and the Company. Any Notice shall only be duly given and effective upon receipt (or
refusal of receipt).


 


Section
14.08. Amendments. 


 


(a)          Subject
to Sections 10.01(a) and 14.08(b), the Managing Member may, at any time, and from time to time, amend, in whole or
in part, any of or all the provisions of the Agreement, or suspend or terminate it entirely, retroactively or otherwise; provided,
however, that, rights of a Member may not be disproportionately adversely affected without the consent of such Member. Without
limiting the generality of the foregoing, unless otherwise required by law or specifically provided herein, the rights of a Member
with respect to an amount earned prior to such an amendment, suspension or termination may not be adversely affected without the
consent of such Member;.


 




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(b)          Notwithstanding
anything to the contrary contained herein, the prior written consent of RCAP shall required for any amendment to or waiver of:
(i) Section 2.08; (ii) Section 3.02; (iii) Section 3.03; (iv) Section 3.04; (iii) Section 5.02;
(iv) Section 10.01; (v) this Article 14; or (vi) any other provision of this Agreement expressly giving one or more
of RCAP and/or the Permitted Transferee Members of RCAP any approval or consent right. For the avoidance of doubt, RCAP’s
rights under this Section 14.08(b) are in addition to, and not in limitation of, its rights under Section 14.08(a).


 


Section
14.09. Consent to Jurisdiction and Venue. Subject to Article
13, the parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter
arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought and maintained exclusively
in the United States District Court for the Southern District of New York or the Supreme Court of the State of New York located
in the County of New York. Each of the parties irrevocably consents to submit to the personal jurisdiction of such courts (and
of the appropriate appellate courts therefrom) in any such suit, action or proceeding. Process in any such suit, action or proceeding
in such courts may be served, and shall be effective, on any party anywhere in the world, whether within or without the jurisdiction
of any such court, by any of the methods specified for the giving of Notices pursuant to Section 14.07. Each of the parties
irrevocably waives, to the fullest extent permitted by law, any objection or defense that it may now or hereafter have based on
venue, inconvenience of forum, the lack of personal jurisdiction and the adequacy of service of process (as long as the party was
provided Notice in accordance with the methods specified in Section 14.07) in any suit, action or proceeding brought in such courts.


 


[signature pages follow]


 




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IN WITNESS WHEREOF, the undersigned
Members have duly executed this Agreement as of the date first written above.


 


	 	RCS CAPITAL CORPORATION
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	RCAP HOLDINGS, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:


 




    	 



    	 



    

 


Exhibit A


 





	Name and Address of Member	 	Interest	 	Percentage

Interest
	RCS Capital Corporation

405 Park Ave., 15th Floor

New York, NY  10022

Attention:  Legal Counsel	 	[      ] Class A Units	 	[      ]%
	 	 	 	 	 
	RCAP Holdings, LLC

405 Park Ave., 15th Floor

New York, NY  10022

Attention:  Legal Counsel	 	[      ] Class B Units	 	[      ]%