Document:

OPERATING AND MANAGEMENT AGREEMENT

OF SWEET ROCK, LLC

(A Michigan Limited Liability Company)

 

This Operating and Management
Agreement (this “Agreement”) is entered into on June 24, 2019 to be effective to the fullest extent permissible
under applicable law as of June 24, 2019 (the “Effective Date”), by and among Sweet
Rock, LLC., a Michigan limited liability company (the “Company”) and the members thereof being
ROCKY MOUNTAIN HIGH BRANDS, INC., a Nevada corporation (“RMHB”), and Sweet
ALLY, INC. (“SWEET ALLY”). RMHB and SWEET ALLY are referred to from time to
time individually as a “Member,” and collectively as the “Members.” Certain capitalized terms
used but not defined elsewhere in this Agreement have the meanings set forth in Section 15 below.

 

The parties have agreed
to organize and operate a limited-liability company in accordance with the terms and subject to the conditions set forth in this
Agreement.

 

NOW, THEREFORE, for good
and valuable consideration, the parties have entered into the following agreement:

 

		1.	PURPOSE OF ENTITY

 

The purpose of the
entity will be to establish new brands and manufacture product lines primarily consisting primarily of edibles that will be distributed
both nationally and internationally.

 

		2.	OFFICES

 

2.1       Principal
Office. The principal office of the Company shall be located at 1778 Holland Drive, Suite B, Holt, Michigan 48842.
The Company may have such other offices, either within or without the State of Michigan as the Manager (defined below)
may designate or as the business of the Company may from time to time require.

 

2.2       Registered
Office, Registered Agent. The address of the registered office of the Company required to be maintained in the State
of Michigan is 1778 Holloway Dr., Holt Michigan. The resident agent at such office is James A. Siver. The registered office and
registered agent may be changed from time to time by action of the Manager and by filing the prescribed form with the Michigan
Secretary of State.

 

2.3        Term.
The term of the Company commences on June 12, 2019, the date on which the Company’s Certificate of Formation
(the “Certificate”) was filed with the Secretary of State of the State of Michigan and shall continue perpetually
unless sooner terminated as provided in this Agreement.

 

    	 		 

    	 

    

 

		2.	MANAGEMENT

 

2.1       Manager
Designation. 

 

(a)            
The business and affairs of the Company will be managed, operated and controlled by or under the direction of a single
manager (the “Manager”). The Members hereby designate Michael R. Welch as the initial Manager.
The Manager will have, and is hereby granted, the full and complete power, authority and discretion for, on behalf of and
in the name of the Company, to take such actions as it may in its sole discretion deem necessary or advisable to carry out
any and all of the objectives and purposes of the Company, subject only to the terms of this Agreement, including
the terms of Section 2.2.

(b)           
The Company and the Members will take such actions as may be required to ensure that the number of Managers
is at all times one (1), and that such Manager shall at all times be Michael R. Welch or its designee.

2.2       Manager
Limitations. Notwithstanding anything to the contrary in this Agreement, the Manager shall not undertake
or cause the Company to undertake any of the following without the written approval of the holders of not less than 60%
of the issued and outstanding Units:

 

(a)               
Hire any personnel for the Company;

(b)              
Borrow any money, execute any guaranty or long-term lease, or grant any security interests in the Company’s
assets;

(c)               
Issue or sell any equity interests of the Company, other than those issued to the Members pursuant to the
Membership Interest Purchase Agreement;

(d)              
Enter into, amend, waive or terminate any Related Party Agreement (other than the original execution of the Membership
Interest Purchase Agreement);

(e)               
Sell any material assets of the Company in any single or series of related transactions; or

(f)               
Dissolve, wind-up or liquidate, or take any action that will result in the dissolution, winding-up or liquidation of, the
Company or any Company subsidiary or initiate a bankruptcy proceeding involving the Company or any Company
subsidiary.

2.3       Compensation.
The Manager will not receive any salary or other compensation for its services as Manager; provided, however,
that the Manager will be reimbursed by the Company for any reasonable expenses incurred by the Manager in
connection with the performance of its duties as Manager.

 

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2.4       Officers.
The Manager may appoint one or more individuals as officers of the Company as it deems necessary or desirable to
carry on the business of the Company and the Manager may delegate to any such officers such power and authority as
the Manager deems advisable. Any individual may hold two or more offices of the Company. Each officer will hold office
until his or her successor is designated by the Manager or until his or her earlier death, resignation or removal. Any officer
may resign at any time upon written notice to the Company. Any officer may be removed by the Manager with or without
cause at any time. A vacancy in any office occurring because of death, resignation, removal or otherwise, may, but need not, be
filled by the Manager.

 

		3.	MEETINGS

 

3.1       Annual
Meeting. The annual meeting of the Members shall be held in the month of July in each year, beginning with the year
2020, for the purpose updating the Members and shall be held in Holt, Michigan.

 

3.2       Special
Meetings. Subject to the Notice provisions of 3.4, Special Meetings of the Members, for any purpose or purposes,
may be called by the Manager.

 

3.3       Regular Meetings.Regular
Meetings of the Members, for any purpose or purposes, shall be called by the Manager on a monthly, quarterly, or annual
basis.

 

3.4       Notice
of Meeting. Except where notice is not required, as provided herein, written notice stating the place, day and hour of
the meeting and, in case of a special meeting, the purposes for which the meeting is called, shall be given not less than ten (10)
days before the date of the meeting, by or at the direction of the manager(s), to each Member of record entitled to vote
at such meeting. When all the Members of the Company are present at any meeting and do not object to notice, or if
those not present sign in writing a waiver of notice of such meeting, or subsequently ratify all the proceedings thereof, the transactions
of such meeting are as valid as if a meeting were formally called and notice had been given.

 

3.5       Place
of Meeting. Except as provided herein, all regular meetings of the Members may be conducted telephonically.

 

3.6       Waiver
of Attendance. Attendance by a Member at a meeting shall be deemed a waiver of any objection to notice or place
of a meeting, unless the Member appears solely for purposes of objecting to notice or place of meeting.

 

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3.7       Quorum.
A quorum of any meeting of the Members will require the presence of all of the Members. Subject to Section 3.8,
no action at any meeting may be taken by the Members unless the appropriate quorum is present. Subject to Section 3.8,
no action may be taken by the Members at any meeting at which a quorum is present without the affirmative vote of Members
holding not less than 60% of the issued and outstanding Units.

 

3.8       Action Without a Meeting.Notwithstanding
anything to the contrary, any matter that may be voted on, consented to or approved by the Members may be taken without
a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, is
or are, as applicable signed by a Member or Members holding not less than 60% of the issued and outstanding Units.

 

3.9       Proxies.
On any matter that is to be voted on by Members, a Member may vote in person or by proxy, and such proxy may be granted
in writing, by means of electronic transmission or as otherwise permitted by applicable law. Every proxy will be revocable in the
discretion of the Member executing it unless otherwise provided in such proxy; provided, that such right to revocation
will not invalidate or otherwise affect actions taken under such proxy prior to such revocation.

 

3.10      Telephonic
Meeting.Members of the Company may participate in any meeting of the Members by means of conference
telephone or similar communication if all persons participating in such meeting can hear one another for the entire discussion
of the matter(s) to be discussed. Participation in a meeting pursuant to this Section shall constitute presence in person at such
meeting.

 

		4.	FISCAL MATTERS

 

4.1       Fiscal
Year. For both accounting and tax reporting purposes, the fiscal year of the Company shall be the twelve (12) month
period ending on December 31 of each year.

 

4.2       Accountant.
An accountant may be selected from time to time by the Manager to perform such tax and accounting services as may from time
to time be required. It is further agreed to by all parties that Sweet Rock, LLC will become a client of International
Development and Investment Group, Inc. hereinafter known as IDI, for purposes of accounting, financial reporting, and
third-party oversight.

 

4.3       Bank
Account. The parties agree that a separate operating account will be established for business operations and managed by
IDI.

 

4.4       Deposits.
All cash funds of the Company shall be deposited from time to time to the credit of the Company in the Bank Account
established for the Company.

 

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4.5       Checks,
Drafts, Etc. All checks, drafts, notes, liabilities incurred by the Company, or other orders for the payment of
money issued in the name of the Company shall be signed by the Manager or by an officer of the Company designated
for that purpose by the Manager.

 

4.6       Legal
Counsel. One or more attorney(s) at law may be selected from time to time by the Manager to review the legal affairs
of the Company and to perform such other services as may be required and to report to the Members with respect thereto.

 

		5.	MEMBERSHIP RECORDS AND TRANSFER OF OWNERSHIP

 

5.1       Membership
Records. The Manager shall maintain a current record of the Members, their equity ownership interest in the
Company, their capital accounts, and their Member percentages.

 

5.2       Transfer
of Ownership. Subject to Section 13.12, no Member may transfer his, her or its Units in the Company
at any time unless first offering the interest to the other Members in writing pursuant to the terms of Section 5.3.
The transferee shall have no right to participate in the management of the business and affairs of the Company or to become
a Member without the unanimous written consent of all the Members. The transferee shall only be entitled to receive
the share of the profits or other compensation and the return of contributions, if any, to which that Member would otherwise
be entitled.

 

5.3       First
Right of Refusal. Upon the proposed transfer of Units, the remaining Members shall have the option to purchase
the interest of the transferring Member in the Company or the interest intended to be transferred by the Member.
All such purchases shall be on terms and conditions as follows:

 

(a)               
If the selling Member and the other Members are not able to agree upon the value of the applicable interest,
then such interest will be appraised by an Appraiser selected and paid for by the selling Member. The other Member(s),
within fifteen (15) days after receipt of such appraisal, may object to the appraisal. In such an event, the interest shall be
appraised by two (2) new Appraisers, one (1) of whom shall be selected and paid for by the Member wishing to sell
or assign his, her or its interest, and one (1) by the remaining Members of the Company, however, not using Sweet
Rock LLC funds to pay for the appraisal.

(b)              
The appointed Appraisers will appraise the Company interest and affix thereto a dollar value. In the event
that the Appraisers are unable to arrive at the same appraisal figure, after attempting to do so in good faith, then in
that event the average between the two (2) appraisal figures shall be used to arrive at the appraisal value upon which the purchase
price is fixed.

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(c)               
Each remaining Member shall have the right to subscribe for such interest in the proportion that his holdings of
interest bear to the then total interests owned by all of the remaining Members. In the event any of the remaining Members
fail to subscribe for all of their proportionate share of such interest, then the remaining Members who purchased their
full share shall, within ten (10) days thereafter, have the right to purchase proportionately such interest until each remaining
Member has the opportunity to purchase all of such interest of the selling Member.

(d)              
The appraised sum so determined shall be paid to the selling Member over a period of time and in such amounts as
determined by the Members by mutual agreement. If no agreement can be reached, then the sale shall be for a term of five
(5) years at an interest rate equal to the applicable federal rate in effect at the date of sale.

(e)               
If the other Members do not elect, within thirty (30) days following the date on which the appraised sum for the
interest is determined, to purchase the interest that is proposed to be transferred, then the transferring Member may transfer
such interest at any time during the one hundred and twenty (120) day period following the date on which the appraised sum for
the interest is determined.

(f)               
No such transfer by a selling Member shall of itself effect dissolution of this Company. Any such transfer
of an interest shall be reflected by a properly amended version of this Agreement. However, if there is a dissolution of
the Company while a Member is being paid, per Section 5.3(d.), the Member shall be paid in full prior
to the distribution of the Company.

(g)              
No person who obtains the interest of any Member in the Company shall have the right to become a substitute
Member without the unanimous written consent of all of the Members.

5.4       
Prohibition on Hypothecation by Members. No Member shall mortgage or grant a security interest in his, her, or
its interest in the Company.

 

		6.	CAPITAL AND CAPITAL CONTRIBUTIONS

 

6.1       Capital
of the Company. The capital of the Company shall be the aggregate amount of the capital contribution made to it
by the Members.

 

6.2       Original
Contribution of Members. On the Effective Date, each the Member shall contribute $500 as initial capital
contribution.

 

6.3       Membership
Percentages. Each Member holds the number of Units set forth on Schedule A hereto.

 

6.4       No
Additional Capital Contributions. Additional capital contributions will be made only with the unanimous written consent
of the Members.

 

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		7.	CAPITAL ACCOUNTS

 

An individual capital account
shall be maintained for each Member under the rules for maintaining capital accounts as may be prescribed in federal treasury
regulations. Unless required to the contrary by regulations, a Member’s capital account shall be his, her, or its
original capital contribution, increased by his, her, or its share of (a) income, (b) gain, and (c) tax-exempt income of the Company,
and reduced by his or her share of (d) distributions of money or property, (e) deductions, (f) losses, and (g) other Company
expenditures.

 

		8.	ADMISSION OF NEW MEMBERS

 

New Members may
be admitted to the Company upon unanimous written consent by all of the Members.

 

		9.	PROFIT AND LOSS ALLOCATIONS

 

9.1       Unit
Activity. All profits of the Company will be allocated equally to the Members, or 50% of the profits to each
Member, as long as there are only two Members. If new members are admitted per Section 8, the profits and
losses shall be divided per the terms prescribed by the Majority in a 60% vote.

9.2       Losses,
Expenditures and Deductions. Any and all losses, expenditures,
and deductions shall be allocated equally to the Members’ accounts. 

		10.	DISTRIBUTIONS

10.1       Available
Cash. For the first 12 months of operations of the Company, the Available Cash will be used to reinvest in
the Company to grow the operations of the Company, unless otherwise agreed to by written approval of not less than
60% of the issued and outstanding units. After the first 12 months, within thirty (30) days following the first business day of
each fiscal quarter of the Company, the Manager will (a) determine the amount, if any, of all Available Cash
that existed on such first business day, and (b) cause all such Available Cash to be distributed to the holders of the Units
as set forth in Schedule A hereto.

 

		11.	BOOKS AND RECORDS

 

11.1       Books
and Records. The books and records of the Company required by the Act shall be kept at the principal office
of the Company. Other books and records shall be kept at such other places, within or without the State of Michigan, as
the Manager shall from time to time determine.

 

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11.2       Right
of Inspection. Any Member of record shall have the right to examine, at any reasonable time or times, for all purposes,
the financial statements, the books and records of account, minutes and records of Members and to make copies thereof, with
copies at the Member’s expense. Such inspection may be made by any agent or attorney of the Member.

 

11.3       Financial
Records. All financial records shall be maintained and reported based on generally acceptable accounting practices. All
financial records will be maintained by IDI on behalf of Sweet Rock, LLC.

 

		12.	DISSOLLUTION AND LIQUIDATION 

 

12.1       Events
of Dissolution. The Company will be dissolved, and its affairs wound up only upon the occurrence of any of the following
events:

(a)       An
election to dissolve the Company made by in writing by the written approval of the holders of not less than 60% of the issued
and outstanding Units;

(b)       The
sale, exchange, involuntary conversion, or other disposition or transfer of all or substantially all the assets of the Company;
or

(c)       The
entry of a decree of judicial dissolution.

12.2       Effectiveness
of Dissolution. Dissolution of the Company will be effective on the day on which the event described in Section
12.1 occurs, but the Company will not terminate until the winding up of the Company has been completed, the assets
of the Company have been distributed as provided in Section 12.3 and the Certificate has been cancelled as
provided in Section 12.4.

12.3       Liquidation.
If the Company is dissolved pursuant to Section 12.1, the Company will be liquidated, and its business and
affairs wound up in accordance with applicable law and the following provisions:

(a)       Liquidator.
The Manager will act as liquidator to wind up the Company (in such capacity, the “Liquidator”).
The Liquidator will have full power and authority to sell, assign, and encumber any or all of the Company’s
assets and to wind up and liquidate the affairs of the Company in an orderly and business-like manner.

(b)       Accounting.
As promptly as possible after dissolution and again after final liquidation, the Liquidator will cause a proper accounting to
be made by a recognized and reputable firm of certified public accountants of the Company’s assets, liabilities and
operations through the last day of the calendar month in which the dissolution occurs or the final liquidation is completed, as
applicable.

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(c)       Distribution
of Proceeds. The Liquidator will liquidate the assets of the Company and distribute the proceeds of such
liquidation in the following order of priority, unless otherwise required by mandatory provisions of applicable law:

(i)                
First, to the payment of all of the Company’s debts and liabilities to its creditors (including Members,
if applicable) and the reasonable expenses of liquidation (including sales commissions incident to any sales of assets of the Company);

(ii)              
Second, to the establishment of and additions to reserves that are determined by the Liquidator in its reasonable
discretion to be reasonably necessary for any contingent unforeseen liabilities or obligations of the Company; and

(iii)            
Third, to the Members in the same manner as distributions are made under Section 10.

(d)       Discretion
of Liquidator. Notwithstanding the provisions of Section 12.3(c) that require the liquidation of the assets of the
Company, but subject to the order of priorities set forth in Section 12.3(c), if upon dissolution of the Company
the Liquidator determines that an immediate sale of part or all of the Company’s assets would be impractical
or could cause undue loss to the Members, the Liquidator may defer the liquidation of any assets except those necessary
to satisfy Company liabilities and reserves, and may, in its reasonable discretion, distribute to the Members, in
lieu of cash, as tenants in common and in accordance with the provisions of Section 12.3(c), undivided interests in such
Company assets as the Liquidator deems not suitable for liquidation. Any such distribution in kind will be subject
to such conditions relating to the disposition and management of such properties as the Liquidator deems reasonable and
equitable and to any agreements governing the operating of such properties at such time. For purposes of any such distribution,
any property to be distributed will be valued at its fair market value.

12.4       Cancellation
of Certificate. Upon completion of the distribution of the assets of the Company as provided in Section 12.3(c),
the Company will be terminated and the Liquidator will cause the cancellation of the Certificate in the State
of Michigan and of all qualifications and registrations of the Company as a foreign limited liability company in jurisdictions
other than the State of Michigan and will take such other actions as may be necessary to terminate the Company.

12.5       Survival
of Rights, Duties and Obligations. Dissolution, liquidation, winding up or termination of the Company for any reason
will not release any party from any loss which at the time of such dissolution, liquidation, winding up or termination already
had accrued to any other party or which thereafter may accrue in respect of any act or omission prior to such dissolution, liquidation,
winding up or termination. For the avoidance of doubt, none of the foregoing will replace, diminish or otherwise adversely affect
any Member’s right to indemnification pursuant to Section 13.3.

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12.6       Recourse
for Claims. Each Member will look solely to the assets of the Company for all distributions with respect
to the Company and such Member’s capital account and will have no recourse therefor (upon dissolution or otherwise)
against the Manager, the Liquidator or any other Member.

		13.	MISCELLANEOUS

 

13.1       Notice.
Whenever notice of any kind is required or permitted under the terms and provisions of the Act, the Certificate,
or this Agreement, the same may be deposited with the U.S. Postal Service by registered or certified mail, postage prepaid,
to the indicated parties at their address set forth on Schedule A hereto (or at such other address for a party as is specified
in a notice given in accordance with this Section 13.1): or in lieu thereof, by regular first class mail, postage prepaid,
private carrier, email transmission, or delivery in person. If properly mailed by registered or certified mail, the date of mailing
shall be the effective date of notice. Otherwise, the effective date of notice shall be the date of actual receipt by the party
entitled to notice.

 

13.2       Waiver
of Notice. Whenever any notice is required to be given pursuant to the provisions of the Act, the Certificate,
or this Agreement, a waiver thereof, in writing, signed by the persons entitled to such notice, whether before or after
the time stated therein, shall be deemed equivalent to the giving of such notice.

 

13.3       Indemnification.
To the fullest extent permissible under the Act, the Company shall indemnify, defend, and hold harmless any Person
who was or is a party defendant or is threatened to be made a party defendant to any threatened, pending or completed action, suit
or proceeding, whether civil, criminal, administrative, or investigative (other than an action by or in the right of the Company)
by reason of the fact that he or she is or was a Member, Manager, or officer of the Company, against all losses,
liabilities, damages, and expenses, including attorney’s fees, judgments, fines and amounts paid in settlement, actually
and reasonably incurred by the indemnified party in connection with such action, suit or proceeding. 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 in
itself create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be
in the best interest of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe
that his or her conduct was unlawful.

 

13.4       Other
Indemnification. The Company shall indemnify any employee, agent, attorney, or other person acting on behalf of
the Company under the same terms and conditions as set forth in Section 13.3.

 

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13.5       Indemnification
Funding; Insurance. The Company shall fund the indemnification obligations provided by Section 13.3 or 13.4
in such manner and to such extent as the Manager may from time to time deem proper. The Manager may, in its discretion,
cause the Company to maintain insurance coverage to provide for any expenses of indemnification of the Company or
for any other reason.

 

13.6       Gender
and Number. Whenever the context requires, the gender of all words used herein shall include the masculine, feminine and
neuter, and the number of all words shall include the singular and plural thereof.

 

13.7       Articles
and Other Headings. The Articles and other headings contained in this Agreement are for reference purposes
only and shall not affect the meaning or interpretation.

 

13.8       Reimbursement
of Officers and Members. The Manager, employees, agents, attorneys, and Members shall receive reimbursement
for expenses reasonably incurred in the performance of their duties.

 

13.9       Counterparts.
This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which
together will be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail
or other means of electronic transmission will be deemed to have the same legal effect as delivery of an original signed copy of
this Agreement.

13.10       Applicable
Law, Jurisdiction and Venue. To the fullest extent permitted by law, all questions concerning the construction,
validity, and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall
be governed by the internal law, not the conflicts, of the State of Michigan. All Members hereby specifically waive any
and all sovereign immunity regarding the subject matter and enforceability of this Agreement against the respective parties
hereto and others, including without limitation, lenders, vendors, managers, members, contractors, attorneys, agents, and representatives;
and expressly consent to the exercise of personal jurisdiction by any such court with respect to any such proceeding.

 

13.11       Specific
Performance. The parties recognize that irreparable injury will result from a breach of any provision of this Agreement
and that money damages will be inadequate to fully remedy the injury. Accordingly, in the event of a breach or threatened breach
of one or more of the provisions of this Agreement, any party who may be injured (in addition to any other remedies which
may be available to that party) shall be entitled to one or more preliminary or permanent orders without any requirement for a
bond or other security (a) restraining and enjoining any act which would constitute a breach, or (b) compelling the performance
of any obligation which, if not performed, would constitute a breach.

 

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13.12       Tax
Matters Partner. The Members hereby appoint the Manager to serve as the “tax matters partner”
(as such term is defined in Code Section 6231(b)) for the Company.

 

13.13       Anticipated
Transactions. It is anticipated that the members and manager may have other legal and financial relationships, whether
a conflict or not. Representatives of this Company, along with representatives of other entities, may from time to time
participate in the joint development of contracts and transactions designed to be fair and reasonable to each participant and to
afford an aggregate benefit to all participants. Such relationships shall be subject to the provisions of Section 2.2(d).

 

		14.	AMENDMENTS

This Agreement may
be altered, amended, restated, or repealed and a new Agreement may be adopted by a unanimous vote of the Members.

 

		15.	CERTAIN DEFINED TERMS. For purposes of this
                                         Agreement, the following terms have the following meanings:

 

“Act”
means the Michigan Limited Liability Company Act, as it may be amended from time to time.

“Affiliate”
means, with respect to any Person, any other Person who, directly or indirectly (including through one or more intermediaries),
controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control,”
when used with respect to any specified Person, means the power, direct or indirect, to direct or cause the direction of
the management and policies of such Person, whether through ownership of voting securities or partnership or other ownership
interests, by contract or otherwise; and the terms “controlling” and “controlled” have correlative meanings.

“Appraiser”
means a qualified independent appraiser, accountant, or investment bank who is, or that is, knowledgeable and experienced in valuing
entities similar to the Company.

“Available
Cash” as of any date means all cash funds of the Company on hand as of such date from all sources, reduced by:
(a) all Company Costs and Expenses that are due and payable as of such date or that are expected to become due and payable
in the next 90 days; and (b) provision for reasonable working capital reserves, with the amount of such reserves to be reasonably
determined by the Manager.

“Code”
means the Internal Revenue Code of 1986, as amended.

    	 	12	 

    	 

    

 

“Company
Costs and Expenses” mean all of the expenditures made or to be made with respect to the operations, business, and affairs
of the Company.

“Membership
Interest” means an interest in the Company owned by a Member, including such Member’s right
(a) to a distributive share of net income, net losses and other items of income, gain, loss and deduction of the Company;
(b) to a distributive share of the assets of the Company upon distribution or liquidation; (c) to vote on, consent to or
otherwise participate in any decision of the Members to the extent and subject to the limitations provided in this Agreement;
and (d) to any and all other benefits to which such Member may be entitled as provided in this Agreement or the Act.

“Person”
means an individual, corporation, partnership, joint venture, limited liability company, governmental authority, unincorporated
organization, trust, association or other entity.

“Related
Party Agreement” means any transaction, agreement, or contract with any Person that is a Member, or an
Affiliate of a Member.

“Unit”
means a unit representing a fractional part of the Membership Interests of the Members and having the privileges,
preference, duties, liabilities, obligations and rights specified in this Agreement.

 

[Signature Page Follows]

    	 	13	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed and delivered this Agreement as of the Effective Date.

The Company:

 

SWEET ROCK,
LLC

 

By:       Rocky
Mountain High Brands, Inc.

Its:       Managing
Manager

 

By: /s/Michael
R. Welch

Name: Michael
R. Welch

Title: Chief Executive Officer

 

 

The Members:

 

ROCKY MOUNTAIN HIGH
BRANDS, INC.

 

By: /s/Michael R.
Welch

Name: Michael
R. Welch

Title: Chief
Executive Officer

 

 

SWEET ALLY, INC.

 

By: /s/ Leonard J.
Cusenza

Name: Leonard
J. Cusenza

Title: President

 

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Schedule A

 

Member Schedule*

 

	Member	Voting Units	Equity Units
	 	Number	Percentage	Number	
        Percentage

         

	
        SWEET ALLY, INC.

        1778 Holland Drive, Suite B

        Holt, Michigan 48842

         
	49	49.00%	49	49.00%
	
        ROCKY MOUNTAIN HIGH BRANDS, INC

        9101 LBJ Freeway, Suite 200

        Dallas, TX 75243

         
	51	51.00%	51	51.00%
	Total:	100	100.00%	100	100.00%

 

    	 	15EXHIBIT 10.1

 

 

AMENDED AND RESTATED VOTING AND SUPPORT AGREEMENT

AMENDED AND RESTATED VOTING AND SUPPORT AGREEMENT, dated as of June 24, 2019 (this “Agreement”), by and among the stockholders listed on the signature page(s) hereto (collectively, the “Stockholders” and each individually, a “Stockholder”), Chapters Holdco Inc., a Delaware corporation (“Parent”), and, solely for purposes of Sections 8 and 10 through 20 hereof, Barnes & Noble, Inc., a Delaware corporation (the “Company”).  Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Amended and Restated Merger Agreement (as defined below).

RECITALS

WHEREAS, as of the date hereof, each Stockholder is the record and beneficial owner of the number of shares of Company Common Stock set forth opposite such Stockholder’s name on Schedule A hereto (together with such additional shares of Company Common Stock that become beneficially owned (within the meaning of Rule 13d−3 promulgated under the Exchange Act) by such Stockholder, whether upon the exercise of options, conversion of convertible securities or otherwise, after the date hereof until the Expiration Date, the “Subject Shares”);

WHEREAS, Parent, Merger Sub and the Company previously entered into an Agreement and Plan of Merger (the “Original Merger Agreement”), dated as of June 6, 2019, setting forth the terms and conditions upon which Parent would acquire the Company pursuant to the merger of Merger Sub with and into the Company, with the Company surviving as a wholly owned subsidiary of Parent (the “Long-Form Merger”);

WHEREAS, pursuant to Section 5.17 of the Original Merger Agreement, Parent, Merger Sub and the Company agreed, among other things, to use reasonable best efforts to negotiate and enter into an amendment to the Original Merger Agreement providing for (a) the consummation of the transactions contemplated by the Original Merger Agreement through a tender offer and merger structure in accordance with Section 251(h) of the General Corporation Law of the State of Delaware (“DGCL”) in lieu of the Long-Form Merger and (b) other related changes in furtherance of such structure;

WHEREAS, concurrently with the execution of this Agreement, Parent, Merger Sub and the Company are entering into an amendment and restatement of the Original Merger Agreement (the “Amended and Restated Merger Agreement”), pursuant to which, among other things, the consummation of the transactions contemplated by the Original Merger Agreement will be effected through a tender offer and merger structure in accordance with Section 251(h) of the DGCL;

WHEREAS,
the Board of Directors of the Company (upon the unanimous recommendation of the Company Special Committee) has unanimously
(i) determined that the
transactions contemplated by the Amended and Restated Merger Agreement, including the Offer and the Merger, are fair to, and
in the best interests of, the Company and its stockholders, (ii) approved,
declared advisable and adopted the Amended and 

 

Restated Merger Agreement and the transactions contemplated thereby, including the Offer and the Merger, (iii) resolved that the Amended and Restated Merger Agreement and the Merger shall be governed by and effected under Section 251(h) of the DGCL, and (iv) recommended that the Company Stockholders (other than Parent and its Subsidiaries) accept the Offer and tender their shares of Company Common Stock to Merger Sub in the Offer;

WHEREAS, concurrently with the execution and delivery of the Original Merger Agreement, as a condition and inducement to the willingness of Parent and the Company to enter into the Original Merger Agreement, the Significant Company Stockholder entered into a Voting Agreement with Parent and the Company (the “Original Voting Agreement”) pursuant to which, among other things, the Significant Company Stockholder agreed to vote his shares of Company Common Stock in favor of the transactions contemplated thereby, including the Long-Form Merger; and

WHEREAS, as a condition and inducement to the willingness of Parent and the Company to enter into the Amended and Restated Merger Agreement, Parent and the Company have required that the Stockholders enter into an amendment and restatement of the Original Voting Agreement, and the parties to the Original Voting Agreement therefor desire to amend and restate the Original Voting Agreement in its entirety as set forth herein, to induce Parent and the Company to enter into the Amended and Restated Merger Agreement;

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, and intending to be legally bound hereby, the parties hereby agree, severally and not jointly, as follows:

1.          Agreement to Tender.  Subject to the terms of this Agreement, each Stockholder agrees to tender or cause to be tendered in the Offer all of such Stockholder’s Subject Shares pursuant to and in accordance with the terms of the Offer, free and clear of all Encumbrances.  Without limiting the generality of the foregoing, as promptly as practicable after, but in no event later than ten (10) Business Days after, the commencement (within the meaning of Rule 14d‐2 under the Exchange Act) of the Offer, each Stockholder shall deliver or cause to be delivered pursuant to the terms of the Offer (a) a letter of transmittal with respect to all of such Stockholder’s Subject Shares complying with the terms of the Offer, (b) a certificate representing all such Subject Shares that are certificated or, in the case of a book-entry share of any uncertificated Subject Shares, written instructions to such Stockholder’s broker, dealer or other nominee that such Subject Shares be tendered, including a reference to this Agreement, and requesting delivery of an “agent’s message” (or such other evidence, if any, of transfer as the Paying Agent may reasonably request), and (c) all other documents or instruments required to be delivered by other Company Stockholders pursuant to the terms of the Offer.  Each Stockholder agrees that, once any of such Stockholder’s Subject Shares are tendered, such Stockholder shall not withdraw and shall cause not to be withdrawn such Subject Shares from the Offer, unless and until this Agreement shall have been validly terminated in accordance with Section 10.

 

2

2.          Voting of Shares.  From the period commencing with the execution and delivery of this Agreement and continuing until the Expiration Date at every meeting of the stockholders of the Company called with respect to any of the following, and at every adjournment or postponement thereof, and on every action or approval by written consent of the stockholders of the Company with respect to any of the following, each Stockholder shall vote, or cause to be voted the Subject Shares that such Stockholder is entitled to vote, against any action or agreement that would reasonably be expected to (A) result in a breach of any covenant, representation or warranty or any other obligation or agreement of the Company under the Amended and Restated Merger Agreement, or of any Stockholder contained in this Agreement, or (B) result in any of the conditions to the consummation of the Offer and Merger under the Amended and Restated Merger Agreement not being fulfilled, or (C) impede, frustrate, interfere with, delay, postpone or adversely affect the Offer or the Merger and the other transactions contemplated by the Amended and Restated Merger Agreement.  Except as set forth in this Section 2, nothing in this Agreement shall limit the right of any Stockholder to vote in favor of, against or abstain with respect to any other matters presented to the Company’s stockholders.

3.          Transfer of Shares.  Each Stockholder covenants and agrees that during the period from the date of this Agreement through the Expiration Date, such Stockholder will not, directly or indirectly, (i) transfer, assign, sell, pledge, encumber, hypothecate or otherwise dispose (whether by sale, liquidation, dissolution, dividend or distribution) of or consent to any of the foregoing (“Transfer”), or cause to be Transferred, any of the Subject Shares, (ii) deposit any of the Subject Shares into a voting trust or enter into a voting agreement or arrangement with respect to the Subject Shares or grant any proxy or power of attorney with respect thereto that is inconsistent with this Agreement, (iii) enter into any contract, option or other arrangement or undertaking with respect to the Transfer of any Subject Shares, or (iv) take any other action, that would reasonably be expected to restrict, limit or interfere with the performance of such Stockholder’s obligations hereunder.  The foregoing restrictions on Transfers of Subject Shares shall not prohibit any such Transfers by any Stockholder in connection with the transactions contemplated by the Amended and Restated Merger Agreement.

4.          Acquisition Proposals.  Each Stockholder shall not and shall use its reasonable best efforts to cause its Representatives not to, directly or indirectly, (i) solicit, initiate, induce or knowingly facilitate or encourage any inquiries or the making of any proposal or offer that constitutes or would reasonably be expected to lead to an Alternative Transaction Proposal, (ii) other than to inform any Person of the existence of the provisions contained in this Section 4, enter into, continue or otherwise participate in any discussions or negotiations regarding, or furnish to any Person any information with respect to, or knowingly cooperate in 

 

3

any way that would otherwise reasonably be expected to lead to an Alternative Transaction Proposal or (iii) approve or recommend, or make any public statement approving or recommending, any inquiry, proposal or offer that constitutes or would reasonably be expected to lead to an Alternative Transaction Proposal, and no Stockholder shall, alone or together with any other Person, make an Alternative Transaction Proposal.  If any Stockholder receives any inquiry or proposal regarding any Alternative Transaction Proposal, such Stockholder shall promptly inform Parent of such inquiry or proposal and the details thereof.

5.          Additional Covenants.

(a)          Further Assurances.  From time to time and without additional consideration, each Stockholder shall (at such Stockholder’s sole cost and expense) execute and deliver, or cause to be executed and delivered, such additional instruments, and shall (at such Stockholder’s sole cost and expense) take such further actions, as Parent may reasonably request for the purpose of carrying out and furthering the intent of this Agreement.

(b)          Waiver of Appraisal Rights.  Each Stockholder hereby waives, to the full extent of the law, and agrees not to assert any appraisal rights pursuant to Section 262 of the DGCL or otherwise in connection with the Merger (unless the Board of Directors of the Company has made a Company Adverse Recommendation Change (that has not been rescinded or otherwise withdrawn)) with respect to any and all Subject Shares held by the undersigned of record or beneficially owned.

(c)          Stock Dividends, etc.  In the event of a stock split, stock dividend or distribution, or any change in the shares of Company Common Stock by reason of any split-up, reverse stock split, recapitalization, combination, reclassification, reincorporation, exchange of shares or the like, the terms “shares of Company Common Stock” and “Subject Shares” shall be deemed to refer to and include such shares as well as all such stock dividends and distributions and any securities into which or for which any or all of such shares may be changed or exchanged or which are received in such transaction.

(d)          Disclosure.  The Stockholders hereby authorize the Company and Parent to publish and disclose in any announcement or disclosure required by the SEC, including in the Schedule TO or Schedule 14D-9, the Stockholders’ identity and ownership of the Stockholders’ Subject Shares and the nature of the Stockholders’ obligations under this Agreement.

6.          Representations and Warranties of each Stockholder.  Each Stockholder on its own behalf hereby represents and warrants to Parent and the Company, severally and not jointly, with respect to such Stockholder and such Stockholder’s ownership of the Subject Shares as follows:

 

4

(a)          Authority.  Such Stockholder has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby.  This Agreement has been duly authorized, executed and delivered by such Stockholder and constitutes a valid and binding obligation of such Stockholder enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, rehabilitation, liquidation, preferential transfer, moratorium and similar Laws now or hereafter affecting creditors' rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).  If such Stockholder is a trust, no consent of any beneficiary is required for the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.  Other than as provided in the Amended and Restated Merger Agreement and any filings by Stockholder with the SEC, the execution, delivery and performance by such Stockholder of this Agreement does not require any consent, approval, authorization or permit of, action by, filing with or notification to any Governmental Authority, other than any consent, approval, authorization, permit, action, filing or notification the failure of which to make or obtain would not, individually or in the aggregate, be reasonably expected to prevent or materially delay the consummation of the Merger or such Stockholder’s ability to observe and perform such Stockholder’s material obligations hereunder.

(b)          No Conflicts.  Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, nor compliance with the terms hereof, will violate, conflict with or result in a breach of, or constitute a default (with or without notice or lapse of time or both) under any provision of, any trust agreement, loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise, license, judgment, order, notice, decree, statute, law, ordinance, rule or regulation applicable to such Stockholder or to such Stockholder’s property or assets.

(c)          The Subject Shares.  Such Stockholder is the record and beneficial owner of, and has good and marketable title to, the Subject Shares set forth opposite such Stockholder’s name on Schedule A hereto, free and clear of any and all security interests, liens, changes, encumbrances, equities, claims, options or limitations of whatever nature and free of any other limitation or restriction (including any restriction on the right to vote, sell or otherwise dispose of such Subject Shares), other than any of the foregoing that would not prevent or delay such Stockholder’s ability to perform such Stockholder’s obligations hereunder.  Such Stockholder does not own, of record or beneficially, any shares of capital stock of the Company other than the Subject Shares set forth opposite such Stockholder’s name on Schedule A hereto (except that such Stockholder may be deemed to beneficially own Subject Shares owned by other Stockholders).  The Stockholders have, or will have at the time of the Stockholders’ tender thereof in the Offer and at the time of any applicable stockholder meeting, the sole right to dispose of or direct the disposition of, or to vote or direct the vote of, as 

 

5

applicable, such Subject Shares (it being understood in the case of Stockholders that are trusts, that the trustees thereof have the right to cause such Stockholders to take such actions), and none of the Subject Shares is subject to any agreement, arrangement or restriction with respect to the disposition or voting of such Subject Shares that would prevent or delay a Stockholder’s ability to perform its obligations hereunder.  There are no agreements or arrangements of any kind, contingent or otherwise, obligating such Stockholder to Transfer, or cause to be Transferred, any of the Subject Shares set forth opposite such Stockholder’s name on Schedule A hereto and no Person has any contractual or other right or obligation to purchase or otherwise acquire any of such Subject Shares.

(d)          Reliance by Parent and the Company.  Such Stockholder understands and acknowledges that each of Parent and the Company is entering into the Amended and Restated Merger Agreement in reliance upon such Stockholder’s execution and delivery of this Agreement.

(e)          Litigation.  As of the date hereof, to the knowledge of such Stockholder, there is no Action pending or threatened against such Stockholder that questions the validity of this Agreement or any action taken or to be taken by such Stockholder in connection with this Agreement.

(f)          Finders Fees.  No broker, investment bank, financial advisor or other person is entitled to any broker’s, finder’s, financial adviser’s or similar fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of such Stockholder.

7.          Representations and Warranties of Parent.  Parent represents and warrants to the Company and the Stockholders as follows:  Parent is a corporation duly incorporated, validly existing and in good standing under the Laws of Delaware and has full corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement and the Amended and Restated Merger Agreement by Parent and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by the board of directors of Parent, and no other corporate proceedings on the part of Parent are necessary to authorize the execution, delivery and performance of this Agreement, the Amended and Restated Merger Agreement by Parent and the consummation of the transactions contemplated hereby and thereby.  Parent has duly and validly executed this Agreement, and this Agreement constitutes a legal, valid and binding obligation of Parent enforceable against Parent in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, rehabilitation, liquidation, preferential transfer, moratorium and other similar Laws now or hereafter affecting creditors’ rights generally and subject, as to enforceability, to general equitable principles (regardless of whether enforcement is sought in a proceeding in equity or at law).

 

6

8.          Representations and Warranties of the Company.  The Company represents and warrants to Parent and the Stockholders as follows:  The Company is a Delaware corporation duly incorporated, validly existing and in good standing under the Laws of the State of Delaware and has full corporate power and authority to execute and deliver this Agreement.  The execution and delivery of this Agreement have been duly and validly authorized by all necessary action on the part of the Company, and no other corporate proceedings on the part of the Company are necessary to authorize the execution, delivery and performance of this Agreement.  The Company has duly and validly executed this Agreement, and this Agreement constitutes a legal, valid and binding obligation of Parent enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, rehabilitation, liquidation, preferential transfer, moratorium and other similar Laws now or hereafter affecting creditors’ rights generally and subject, as to enforceability, to general equitable principles (regardless of whether enforcement is sought in a proceeding in equity or at law).

9.          Stockholder Capacity.  No Person executing this Agreement who is or becomes during the term hereof a director or officer of the Company shall be deemed to make any agreement or understanding in this Agreement in such Person’s capacity as a director or officer.  Each Stockholder is entering into this Agreement solely in such Stockholder’s capacity as the record holder or beneficial owner of Subject Shares and nothing herein shall limit or affect any actions taken (or any failures to act) by a Stockholder in such Stockholder’s capacity as a director or officer of the Company.

10.          Termination.  This Agreement shall automatically terminate without further action upon the earliest to occur (the “Expiration Date”) of (i) the Effective Time, (ii) the termination of the Amended and Restated Merger Agreement in accordance with its terms and (iii) the written agreement of the Stockholders, Parent and the Company to terminate this Agreement.

11.          Specific Performance.  Each Stockholder acknowledges and agrees that (a) the covenants, obligations and agreements contained in this Agreement relate to special, unique and extraordinary matters, (b) Parent and the Company are relying on such covenants in connection with entering into the Amended and Restated Merger Agreement and (c) a violation of any of the terms of such covenants, obligations or agreements will cause Parent and the Company irreparable damage for which they would not have any adequate remedy at Law and for which monetary damages are not readily ascertainable.  Therefore, each Stockholder agrees that each of Parent and the Company, as applicable, shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond) as a court of competent jurisdiction may deem necessary or appropriate to restrain such Stockholder from committing any violation of such covenants, obligations or agreements.  These injunctive remedies are cumulative.

 

7

12.          Governing Law; Jurisdiction.

(a)          All disputes, claims or controversies arising out of or relating to this Agreement, or the negotiation, validity or performance of this Agreement, or the transactions contemplated hereby shall be governed by and construed in accordance with the laws of the State of Delaware without regard to its rules of conflict of laws.

(b)          Each of the parties hereto hereby (a) irrevocably and unconditionally consents to submit itself to the sole and exclusive personal jurisdiction of the Court of Chancery of the State of Delaware, or, if that court does not have jurisdiction, the Superior Court of the State of Delaware (or, if under applicable Law exclusive jurisdiction over such matter is vested in the federal courts, any court of the United States located in the State of Delaware) (collectively, the “Delaware Courts”) in connection with any dispute, claim, or controversy arising out of or relating to this Agreement or the transactions contemplated hereby, (b) waives any objection to the laying of venue of any such litigation in any of the Delaware Courts, (c) agrees not to plead or claim in any such court that such litigation brought therein has been brought in an inconvenient forum and agrees not otherwise to attempt to deny or defeat such personal jurisdiction or venue by motion or other request for leave from any such court, and (d) agrees that it will not bring any action, suit, or proceeding in connection with any dispute, claim, or controversy arising out of or relating to this Agreement or the transactions contemplated hereby, in any court or other tribunal, other than any of the Delaware Courts.  All actions and proceedings arising out of or relating to this Agreement or the transactions contemplated hereby shall be heard and determined in the Delaware Courts.  Each of the parties hereto hereby irrevocably and unconditionally agrees that service of process in connection with any dispute, claim, or controversy arising out of or relating to this Agreement or the transactions contemplated hereby may be made upon such party by prepaid certified or registered mail, with a validated proof of mailing receipt constituting evidence of valid service, directed to such party at the address specified in Section 16 hereof.  Service made in such manner, to the fullest extent permitted by applicable Law, shall have the same legal force and effect as if served upon such party personally within the State of Delaware.  Nothing herein shall be deemed to limit or prohibit service of process by any other manner as may be permitted by applicable Law.

13.          WAIVER OF JURY TRIAL EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF THE COMPANY, PARENT OR MERGER SUB IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT.

 

8

14.          Amendment, Waivers, etc.  Neither this Agreement nor any term hereof may be amended or otherwise modified other than by an instrument in writing signed by Parent, the Company and each of the Stockholders.  No provision of this Agreement may be waived, discharged or terminated other than by an instrument in writing signed by the party against whom the enforcement of such waiver, discharge or termination is sought.  No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  Except as otherwise herein provided, the rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Law.

15.          Assignment; No Third Party Beneficiaries.  This Agreement shall not be assignable or otherwise transferable by a party without the prior written consent of the other parties, and any attempt to so assign or otherwise transfer this Agreement without such consent shall be void and of no effect.  This Agreement shall be binding upon the respective heirs, successors, legal representatives and permitted assigns of the parties hereto.  Nothing in this Agreement shall be construed as giving any Person, other than the parties hereto and their heirs, successors, legal representatives and permitted assigns, any right, remedy or claim under or in respect of this Agreement or any provision hereof.

16.          Notices.  All notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be deemed given (a) on the date of delivery if delivered personally or sent via e-mail or (b) on the first Business Day following the date of dispatch if sent by a nationally recognized overnight courier (providing proof of delivery), in each case to the parties at the following addresses (or at such other address for a party as shall be specified by like notice); provided, that should any such delivery be made by e-mail, the sender shall also send a copy of the information so delivered on or before the next Business Day by a nationally recognized overnight courier:

		(A)	
if to Parent to:

	 	
c/o Elliott Management Corporation

	 	
40 West 57th Street

	 	
New York, New York 10019

	 	Attention: 	
Elliot Greenberg

	 	Email: 	
egreenberg@elliottmgmt.com

	 	 	

 

9

 

	 	with a copy (which shall not constitute notice) to: 
	 	
 

	 	
Debevoise & Plimpton LLP

	 	
919 Third Avenue

	 	
New York, NY 10022

	 	Attention: 	

Jeffrey J. Rosen

Michael A. Diz

	 	Email: 	

jrosen@debevoise.com

madiz@debevoise.com

		(B)	
if to the Company to:

	 	
Barnes & Noble, Inc.

	 	122 Fifth Avenue  
	 	New York, NY 10011  
	 	Attention: 	Brad Feuer, Vice President and General Counsel
	 	 	
Allen Lindstrom, Chief Financial Officer and Executive

Vice President

	 	Email: 	bfeuer@bn.com
	 	 	alindstrom@bn.com

	 	with a copy (which shall not constitute notice) to: 
	 	
 

	 	
Baker Botts L.L.P.

	 	
30 Rockefeller Plaza

	 	
New York, New York 10112

	 	Attention: 	
Renee Wilm

Mollie Duckworth

	 	Email: 	
renee.wilm@bakerbotts.com

mollie.duckworth@bakerbotts.com

		(C)	
if to any Stockholder to:

	 	
The Riggio Family Office

	 	122 Fifth Avenue, 10th Floor
	 	New York, New York 10011
	 	Attention: 	Maria Florez
	 	Email: 	mflorez@lremllc.com

 

10

	 	with a copy (which shall not constitute notice) to:
	 	
 

	 	
Bryan Cave Leighton Paisner LLP

	 	
1290 Avenue of the Americas

	 	
New York, New York 10104

	 	Attention: 	
Kenneth L. Henderson

Jay M. Dorman

	 	Email: 	
kenneth.henderson@bclplaw.com

jmdorman@bclplaw.com

  

Any party to this Agreement may notify any other party of any changes to the address or any of the other details specified in this paragraph; provided that such notification shall only be effective on the date specified in such notice or two (2) Business Days after the notice is given, whichever is later.  Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice as of the date of such rejection, refusal or inability to deliver.

17.          Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect, insofar as the foregoing can be accomplished without materially affecting the economic benefits anticipated by the parties to this Agreement.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable Law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the greatest extent possible.

18.          Entire Agreement.  This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings between the parties with respect thereto.  No addition to or modification of any provision of this Agreement shall be binding upon either party unless made in writing and signed by both parties.

19.          Section Headings.  The article and section headings of this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

20.          Counterparts.  This Agreement may be executed in any number of counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts shall together constitute the same agreement.

[Remainder of page intentionally left blank]

 

11

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

	 	
CHAPTERS HOLDCO INC.

	 
	 	 	 	 	 
	 	 	 	 	 
	
 

	
By: 

	/s/ Elliot Greenberg	 
	 		Name: 	Elliot Greenberg	  
	 	 	Title: 	Vice President and Secretary	 
	 	 	 	 	 

 

 

SIGNATURE PAGE TO VOTING AND SUPPORT AGREEMENT

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

	 	/s/ Leonard Riggio	 
	 	
LEONARD RIGGIO 

	 
	 	 	 
	 	 	 
	 	/s/ Louise Riggio	 
	 	LOUISE RIGGIO 	 
	 	 	 
	 	 	 
	 	
LRBKS HOLDINGS, INC.

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Leonard Riggio	 
	 	Name:	Leonard Riggio 	  
	 	Title: 	
President

	 
	 	 	 	 
	 	 	 	 
	 	THE RIGGIO FOUNDATION	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Leonard Riggio 	 
	 	Name: 	Leonard Riggio  	 
	 	Title: 	
Trustee

	 

 

SIGNATURE PAGE TO VOTING AND SUPPORT AGREEMENT

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

	 	
BARNES & NOBLE, INC., solely for the purposes 

of Sections 8 and 10 through 20 hereof,

	 
	 	 	 	 	 
	 	 	 	 	 
	
 

	
By: 

	
/s/ Bradley A. Feuer

	 
	 	 	Name:	
Bradley A. Feuer

	 
	 	 	Title: 	

Vice President, General Counsel & Corporate Secretary

	 
	 	 	 	 	 

 

SIGNATURE PAGE TO VOTING AND SUPPORT AGREEMENT

SCHEDULE A

 

	
Name of Stockholder

	
Number of Shares

	
Leonard Riggio

	
5,794,491

	
Louise Riggio*

	
0

	
LRBKS Holdings, Inc.**

	
2,316,668

	
The Riggio Foundation***

	
5,940,973

	
*

	
No shares directly owned.

	
**

	
Owned 50% each by Leonard Riggio and Louise Riggio.

	
***

	
Leonard and Louise Riggio are co-trustees.

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