Document:

Exhibit 10.20

 

 

 

RESTATED WORKING
INTEREST AGREEMENT BY AND BETWEEN

 

VIVAVENTURES ENERGY
GROUP, INC. AND

 

VIVAVENTURES ROYALTY
II, LLC

 

Effective as of November
6, 2017

 

Dated as of August 31,
2020

 

 

 

 

 

 

 

    	 	 	 

     

    

 

 

RESTATED WORKING
INTEREST AGREEMENT

 

THIS RESTATED WORKING INTEREST
AGREEMENT (this “Agreement”) is dated as of August 31, 2020 and effective as of November 6, 2017 by and between VIVAVENTURES
ENERGY GROUP, INC., a Nevada corporation (the “Company”), and VIVAVENTURES ROYALTY II, LLC, a Nevada limited liability
company (“Working Interest Holder”).

 

W I T N E S S E
T H:

 

WHEREAS,
starting in October 2015, the Company, and/or its parent company Vivakor, Inc., was granted surface rights and/or extraction rights
to various parcels of land and tons of oil sands in Utah and other locations, including, but not limited to, a parcel of land in
Utah that is estimated to contain 44.7 million barrels of oil in the oil sands (together, the “Property”);

 

WHEREAS,
Working Interest Holder raised investor funds for the primary purpose of paying for the Company’s operation and production
costs associated with the oil extraction business and production from the Selected Material on the Property and building the Extraction
Machine, in exchange for receiving a share of the production revenue received by the Company from its operations and processing
of Selected Material on the Property;

 

WHEREAS,
on or about November 6, 2017, the Company and Working Interest Holder entered into a “Working Interest Agreement” (the
“Original Agreement”);

 

WHEREAS,
the parties working arrangement under the Original Agreement, each investor’s funds that were invested in Working Interest
Holder were invested in the Company, with 80% of each investor’s funds used for the Company’s operations associated
with the oil extraction business and production of Selected Material on the Property (the “Working Interest Right”)
and 20% as an investment in exchange for a portion of the proceeds received from production of the Selected Material on the Property
(“Revenue Participation Right”);

 

WHEREAS,
the parties desire to enter into this Agreement to replace the Original Agreement in order to ensure the agreement between the
parties accurately reflects the actual working relationship between the parties and how the Working Interest Holder’s investors’
funds have been invested and used by the Company;

 

WHEREAS,
as noted in the Original Agreement, the Company requires additional funding to manufacture and operate its proprietary equipment
to extract oil from tar sands, and Working Interest Holder desires to provide the Company with such additional funding; and

 

WHEREAS,
Working Interest Holder desires to purchase the Working Interest Right and the Revenue Participation Right from the Company in
exchange for providing the additional funding, and the Company desires to sell the Working Interest Right and the Revenue Participation
Right to Working Interest Holder in exchange for receiving the additional funding, subject to the terms and conditions of this
Agreement.

 

NOW,
THEREFORE, in consideration of the representations, warranties, covenants and agreements set forth herein and for good and valuable
consideration, the receipt and adequacy of which hereby are acknowledged, the Company and Working Interest Holder hereby agree
as follows:

 

 

 

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Article
I. SALE, TRANSFER, ASSIGNMENT AND CONVEYANCE OF THE REVENUE PARTICIPATION RIGHT

 

Section 1.01 Sale, Transfer, Assignment and Conveyance.
Upon the terms and subject to the conditions of this Agreement, for the purchase price set forth below, the Company agrees to sell,
transfer, assign and convey to Working Interest Holder, and Working Interest Holder agrees to purchase, acquire and accept from
the Company, the Working Interest Right and the Revenue Participation Right, free and clear of all Liens (except those Liens created
in favor of Working Interest Holder pursuant to this Agreement and Permitted Liens). Working Interest Holder, as a holder of a
Working Interest Right agrees to join and pay its share of the cost of any operations on Selected Materials from the Property with
any other holders of a working interest right, up to 80% of the proceeds received (the portion of the Purchase Price associated
with the Working Interest Right). In exchange, the Company agrees to promptly pay and discharge all expenses incurred in the development
and operation of Selected Material on the Property pursuant to this Agreement and shall charge the Working Interest Holder its
respective proportionate share of such expenses, up to 80% of the proceeds received (the portion of the Purchase Price associated
with the Working Interest Right).

 

Section 1.02 Purchase Price.
At the Closing, the purchase price to be paid to the Company for the sale, transfer, assignment and conveyance of the Revenue Participation
Right to Royalty Holder is Eight Million Dollars ($8,000,000.00) in cash (the “Purchase Price”), with 80% of any invested
funds being used to acquire the Working Interest Right and 20% being used to acquire the Revenue Participation Right. The Purchase
Price may be paid in installments over a reasonable period of time as determined by the Company in its discretion.

 

Section 1.03 No Assumed Obligations,
Etc. Notwithstanding any provision in this Agreement to the contrary, Working Interest Holder is only agreeing, on the terms
and conditions set forth in this Agreement, to purchase, acquire and accept the Working Interest Right and the Revenue Participation
Right and is not assuming any liability or obligation of the Company of whatever nature, whether presently in existence or arising
or asserted hereafter, except as specifically set forth herein.

 

Section 1.04 Security Interest.

 

(a)   Effective
from and after the Closing, the Company hereby grants to Working Interest Holder, to secure the payment and performance in
full of all of the Company’s obligations under this Agreement, including the payment of past and future Revenue
Participation Payments, a continuing security interest in the Collateral, including the Stock Collateral (subject to Section
1.04(b)), wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. The
Company represents, warrants and covenants that the security interest granted above shall, subject to Section 1.04(b) and
Section 1.04(c), at all times continue to be a perfected security interest in the Collateral, subject only to Permitted
Liens. For purposes of this Agreement, the term “proceeds” includes whatever is receivable or received when
Collateral or proceeds is sold, collected, exchanged or otherwise disposed of, whether such disposition is voluntary or
involuntary, and includes all rights to payment, including return premiums, with respect to any insurance relating
thereto.

 

(b)   Effective
immediately upon the Company’s payment to Working Interest Holder of the first Revenue Participation Payment owed and payable
under this Agreement, Working Interest Holder’s Lien in all of the Stock Collateral shall be released without any further
action of any party. At the Company’s expense, Working Interest Holder shall, and Working Interest Holder hereby authorizes
the Company (or any agent of the Company) to, prepare and file, at any time within three (3) Business Days following the Company’s
payment to Working Interest Holder of the first Revenue Participation Payment owed and payable under this Agreement, all documents
and take all other actions reasonably requested by the Company to evidence the release of Working Interest Holder’s Lien
on the Stock Collateral.

 

(c)   Effective immediately upon payment in full of the Maximum Revenue
Participation, Working Interest Holder’s Lien in all of the Collateral shall be released without any further action of any
party. At the Company’s expense, Working Interest Holder shall, and Working Interest Holder hereby authorizes the Company
(or any agent of the Company) to, prepare and file, at any time within three (3) Business Days following the payment of the Maximum
Revenue Participation, all documents and take all other actions reasonably requested by the Company to evidence the release of
Working Interest Holder’s Lien on the Collateral

 

 

 

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(d)   Following the Company’s failure to make full and prompt payment of any portion of the Revenue Participation Right
when due, but in all events subject to Section 5.02(c) (such failure, a “Payment Breach”), and at any time thereafter
during the continuation of such Payment Breach, Working Interest Holder shall be entitled to exercise all rights and remedies available
under this Agreement, including the right to demand immediate payment of all portions of the Revenue Participation Right then due,
and Working Interest Holder thereupon may exercise any other right, power or remedy granted to Working Interest Holder or otherwise
permitted to Working Interest Holder by law, either by suit in equity or by action at law, or both, including, without limitation,
Working Interest Holder’s rights as a secured party under the Uniform Commercial Code with respect to the Collateral, but
in all events subject to Section 1.04(b).

 

(e)   The
Company hereby authorizes Working Interest Holder to file financing statements or take any other action required to perfect Working
Interest Holder’s security interest in the Collateral, at any time during which this Agreement remains in effect, with notice
to the Company, in all appropriate jurisdictions to perfect or protect Working Interest Holder’s interest or rights hereunder,
including a notice that any disposition of the Collateral, except to the extent permitted by the terms of this Agreement, by the
Company, or any other Person, shall be deemed to violate the rights of Working Interest Holder under the Uniform Commercial Code.
The Company further agrees to procure, deliver or execute and deliver to Working Interest Holder, from time to time, all additional
security agreements, instruments and documents, each in form and substance reasonably satisfactory to Working Interest Holder,
to perfect or protect Working Interest Holder’s security interest in the Collateral in accordance with this Section 1.04.

 

Article II. CLOSING

 

Section 2.01 Closing. The Closing
shall take place on the first Business Day immediately following the date on which the conditions set forth in Article IV (Conditions
to Closing) have been satisfied, or at such other place, time and date as the parties hereto may mutually agree. Subject to the
provisions of Article VIII (Termination), failure to consummate the sale, transfer, assignment and conveyance of the Working Interest
Right and/or Revenue Participation Right as provided in this Article II on the date determined pursuant to this Section 2.01 shall
not result in a termination of this Agreement and shall not relieve either party hereto of any of such party’s respective
obligations hereunder.

 

Section 2.02 Payment of Purchase
Price. At the Closing, Working Interest Holder shall deliver (or cause to be delivered) payment of the Purchase Price to the Company
by wire transfer of immediately available funds to one or more accounts specified by the Company; provided, however, that,
pursuant to Section 1.02 (Purchase Price), the Company in its discretion may agree to accept an installment of the Purchase Price
at the Closing in such amount as the Company may determine, in which event, at the Closing, Working Interest Holder shall deliver
(or cause to be delivered) payment of such installment in such amount to the Company by wire transfer of immediately available
funds to one or more accounts specified by the Company.

 

Article III. REPRESENTATIONS
AND WARRANTIES

 

Section 3.01 Company’s Representations and
Warranties. The Company represents and warrants to Working Interest Holder that, as of the effective date hereof:

 

(a)   Existence;
Good Standing. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State
of Nevada. The Company is duly licensed or qualified to do business and is in corporate good standing in each jurisdiction in
which the nature of the business conducted by it or the character or location of the properties and assets owned, leased or operated
by it makes such licensing or qualification necessary, except where the failure to be so licensed or qualified and in corporate
good standing has not and would not reasonably be expected to have, either individually or in the aggregate, a material adverse
effect on the Company, the Working Interest Right, or the Revenue Participation Right.

 

(b)   Authorization.
The Company has all requisite corporate power and authority to execute, deliver and perform the Company’s obligations under
this Agreement. The execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated
hereby, have been duly authorized by all necessary corporate action on the part of the Company.

 

 

 

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(c)   Enforceability.
This Agreement has been duly executed and delivered by an authorized officer of the Company and constitutes the valid and
binding obligation of the Company, enforceable against the Company in accordance with its terms, except as may be limited by
applicable bankruptcy laws or by general principles of equity (whether considered in a proceeding in equity or at law).

 

(d)    No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated
hereby do not and will not (i) contravene or conflict with the Articles of Incorporation or Bylaws of the Company, (ii) contravene
or conflict with or constitute a material default under any law binding on or applicable to the Company or (iii) contravene or
conflict with or constitute a material default under any material contract or other material agreement or Judgment binding on
or applicable to the Company.

 

(e)   Consents.
Except for the consents that have been obtained on or before the Closing or filings required by the federal securities laws or
stock exchange rules, no consent, approval, license, order, authorization, registration, declaration or filing with or of any
Governmental Entity or other Person is required to be done or obtained by the Company in connection with (i) the execution and
delivery by the Company of this Agreement, (ii) the performance by the Company of its obligations under this Agreement or (iii)
the consummation by the Company of any of the transactions contemplated by this Agreement.

 

(f)    No
Litigation. The Company is not a party to, and has not received notice of, any action, suit, investigation or proceeding
pending before any Governmental Entity and, to the Knowledge of the Company, no such action, suit, investigation or
proceeding has been threatened against the Company that, individually or in the aggregate, would, if determined adversely,
reasonably be expected to prevent or adversely affect (i) the ability of the Company to enter into and to perform the
Company’s obligations under this Agreement, (ii) the Company’s rights in or to the Extraction Technology or (iii)
after the Closing, Working Interest Holder’s rights with respect to the Working Interest Right or the Revenue
Participation Right.

 

(g)   Compliance
with Laws. The Company is not in violation of, and to the Knowledge of the Company, the Company is not under investigation with
respect to, nor has the Company been threatened to be charged with or given notice of any violation of, any law or Judgment applicable
to the Company, which violation would reasonably be expected to adversely affect the Company’s rights in or to the Extraction
Technology or, after the Closing, Working Interest Holder’s rights with respect to the Working Interest Right or the Revenue
Participation Right hereunder.

 

(h)   Title
to Working Interest Right and Revenue Participation Right. Upon the Closing, Working Interest Holder will have acquired, subject
to the terms and conditions set forth in this Agreement, good and marketable title to the Working Interest Right and the Revenue
Participation Right, free and clear of all Liens (except those Liens created in favor of Working Interest Holder pursuant to this
Agreement and Permitted Liens).

 

(i)    Intellectual
Property. To the Knowledge of the Company, the Company is the registered owner of all of the intellectual property rights
relating to the Extraction Technology. The Company has not received any written notice that there is any, and, to the
Knowledge of the Company, there is no, Person challenging inventorship or ownership of, the rights of the Company in and to,
or the patentability, validity or enforceability of, the Extraction Technology, or asserting that the development,
manufacture, importation, sale, offer for sale or use of a product incorporating the Extraction Technology infringes or will
infringe such Person’s patents or other intellectual property rights.

 

Section 3.02 Working Interest
Holder’s Representations and Warranties. Working Interest Holder represents and warrants to the Company that, as of the effective
date hereof:

 

(a)   Existence;
Good Standing. Working Interest Holder is a limited liability company duly organized, validly existing and in good standing under
the laws of the State of Nevada.

 

(b)   Authorization.
Working Interest Holder has the requisite limited liability company right, power and authority to execute, deliver and perform
Working Interest Holder’s obligations under this Agreement. The execution, delivery and performance of this Agreement, and
the consummation of the transactions contemplated hereby, have been duly authorized by all necessary action on the part of Working
Interest Holder.

 

 

 

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(c)   Enforceability. This Agreement has been duly executed and delivered by an authorized person of the Manager of Working Interest
Holder and constitutes the valid and binding obligation of Working Interest Holder, enforceable against Working Interest Holder
in accordance with its terms, except as may be limited by applicable bankruptcy laws or by general principles of equity (whether
considered in a proceeding in equity or at law).

 

(d)    No
Conflicts. The execution, delivery and performance by Working Interest Holder of this Agreement do not and will not (i) contravene
or conflict with the organizational documents of Working Interest Holder, (ii) contravene or conflict with or constitute a default
under any material provision of any law binding on or applicable to Working Interest Holder or (iii) contravene or conflict with
or constitute a default under any material contract or other material agreement or Judgment binding on or applicable to Working
Interest Holder.

 

(e)   Consents.
No consent, approval, license, order, authorization, registration, declaration or filing with or of any Governmental Entity or
other Person is required to be done or obtained by Working Interest Holder in connection with (i) the execution and delivery by
Working Interest Holder of this Agreement, (ii) the performance by Working Interest Holder of Working Interest Holder’s
obligations under this Agreement, other than the filing of financing statement(s) in accordance with Section 1.04 (Security Interest),
or (iii) the consummation by Working Interest Holder of any of the transactions contemplated by this Agreement.

 

(f)    No
Litigation. There is no action, suit, investigation or proceeding pending or, to the knowledge of Working Interest Holder, threatened
before any Governmental Entity to which Working Interest Holder is a party that would, if determined adversely, reasonably be
expected to prevent or materially and adversely affect the ability of Working Interest Holder to perform Working Interest Holder’s
obligations under this Agreement.

 

Article IV. CONDITIONS
TO CLOSING

 

Section 4.01 Conditions to
Working Interest Holder’s Obligations. The obligations of Working Interest Holder to consummate the transactions contemplated
hereunder on the Closing Date are subject to the satisfaction or waiver, at or before the Closing Date, of each of the following
conditions precedent:

 

(a)   The
Company and Working Interest Holder shall have executed all documents, instruments and agreements required under this Agreement
to consummate the transactions contemplated by this Agreement, and all such documents, instruments and agreements shall be in
full force and effect.

 

(b)   The
representations and warranties of the Company contained in Section 3.01 (Company’s Representations and Warranties) shall
be true and correct in all material respects as of the Closing Date as though made at and as of the Closing Date, except to the
extent that any such representation or warranty expressly speaks as of a particular date, in which case it shall be true and correct
in all material respects as of such date; provided that, to the extent that any such representation or warranty is qualified
by the term “material,” such representation or warranty (as so written, including the term “material”)
shall be true and correct in all respects as of the Closing Date or such other date, as applicable.

 

(c)    No
event or events shall have occurred, or be reasonably likely to occur, that, individually or in the aggregate, have had or would
reasonably be expected to result in (or, with the giving of notice, the passage of time or otherwise, would result in) a material
adverse effect on the business, operations or financial condition of the Company, including upon the Extraction Technology, the
Working Interest Right or the Revenue Participation Right.

 

(d)   There
shall not have been issued and be in effect any Judgment of any Governmental Entity enjoining, preventing or restricting the consummation
of the transactions contemplated by this Agreement.

 

(e)   There
shall not have been instituted or be pending any action or proceeding by any Governmental Entity or any other Person (i) challenging
or seeking to make illegal, to delay materially or otherwise directly or indirectly to restrain or prohibit the consummation of
the transactions contemplated hereby, (ii) seeking to obtain material damages in connection with the transactions contemplated
hereby or (iii) seeking to restrain or prohibit Working Interest Holder’s purchase of the Working Interest Right or the
Revenue Participation Right.

 

 

 

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Section 4.02 Conditions to
the Company’s Obligations. The obligations of the Company to consummate the transactions contemplated hereunder on the Closing
Date are subject to the satisfaction or waiver, at or before the Closing Date, of each of the following conditions precedent:

 

(a)   Working
Interest Holder shall have performed and complied in all material respects with all agreements, covenants, obligations and conditions
required to be performed and complied with by Working Interest Holder under this Agreement at or before the Closing Date.

 

(b)   The representations and
warranties of Working Interest Holder contained in Section 3.02 (Working Interest Holder’s Representations and
Warranties) shall be true and correct in all material respects as of the Closing Date as though made at and as of the Closing
Date, except to the extent that any such representation or warranty expressly speaks as of a particular date, in which case
it shall be true and correct in all material respects as of such date; provided that, to the extent that any such
representation or warranty is qualified by the term “material,” such representation or warranty (as so written,
including the term “material”) shall be true and correct in all respects as of the Closing Date or such other
date, as applicable.

 

(c)   There
shall not have been issued and be in effect any Judgment of any Governmental Entity enjoining, preventing or restricting the consummation
of the transactions contemplated by this Agreement.

 

(d)   There
shall not have been instituted or be pending any action or proceeding by any Governmental Entity or any other Person (i) challenging
or seeking to make illegal, to delay materially or otherwise directly or indirectly to restrain or prohibit the consummation of
the transactions contemplated hereby, (ii) seeking to obtain material damages in connection with the transactions contemplated
hereby or (iii) seeking to restrain or prohibit Working Interest Holder’s purchase of the Working Interest Right or the
Revenue Participation Right.

 

Article V. COVENANTS

 

Section
5.01 Revenue Participation; Maximum Revenue Participation. Each quarter, an amount payable to the Company equal to twenty-five
(25%) percent (“Revenue Participation Rate”) of Gross Revenue generated from the Extraction Machine and the Selected
Material during such quarter (“Revenue Participation Payment”) shall be assessed and paid to the Company forty- five
(45) calendar days after such quarter’s end. Upon placing the new Extraction Machine into production, the twenty-year Revenue
Participation Right begins, and on the twentieth anniversary date from when the Extraction Machine is placed into production the
Revenue Participation Right will terminate, and the Company and Working Interest Holder will not be entitled to any further payment
under the this Agreement or the Original Agreement (the “Maximum Revenue Participation”). The Company shall, in its
sole discretion, select the source or location and amount of material to be processed using the Extraction Machine (the “Selected
Material”). The Company makes no representation or warranty with respect to the timing of when or if the new Extraction Machine
will be placed into production. The Company makes no representations or warranty with respect to the timing of the first Revenue
Participation Payment to be made by the Company hereunder or to the amount of Selected Material that may be processed for the twenty-year
term of the Revenue Participation Right if an Extraction Machine is placed into production. Beginning with the Effective Date of
this Agreement, it is contemplated that the Extraction Machine may be one of a series of working interest agreements to construct
a series of extraction machines, in which case the Gross Revenue would then be sourced from pooled production from each extraction
machine and each agreement would receive its Gross Revenue proportion of pooled production. Such pooling would only be with extraction
machines put into production after the Extraction Machine. The Company makes no representation or warranty pooled production will
occur, or at the timing of which extraction machines may be constructed for pooled production.

 

Section 5.02 Property Expense Reports;
Working Interest Right Reports.

 

(a)   The
Company shall pay all expenses related to the building of the Extraction Machine, production of Selected Material, and using the
Extraction Machine with funds provided by working interest holders, including, but not limited to, the Working Interest Holder.
For the Working Interest Holder, such expense payments shall not exceed 80% of the proceeds received of the proceeds received
(the portion of the Purchase Price associated with the Working Interest Right).

 

 

 

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(b)   Upon
written request by the Working Interest Holder, the Company shall deliver a written report setting forth in reasonable detail
the expenses paid by the Company associated with the oil extraction business and production from the Selected Material on the
Property and building the Extraction Machine, including all expenses paid with the Working Interest Holder’s Purchase Price
funds (each a “Working Interest Expense Report”).

 

Section 5.03. Revenue Participation Payments; Revenue
Participation Reports.

 

(a)   After
the Company has commenced processing the Selected Material using the Extraction Machine hereunder and following the Company’s
first sale of Product hereunder and thereafter, the Company shall commence paying and thereafter continue to pay to Working Interest
Holder the Revenue Participation Payments for each calendar quarter promptly, but in any event no later than forty-five (45) calendar
days after the end of such calendar quarter.

 

(b)   The
Company shall make all payments required to be made by the Company to Working Interest Holder pursuant to this Agreement in U.S.
Dollars by wire transfer of immediately available funds, without set-off, reduction or deduction or withholding for or on account
of any Taxes, to the bank account designated in writing from time to time by Working Interest Holder.

 

(c)   If the Company fails, or expects to fail, to satisfy any of the Company’s payment obligations owed to Working Interest
Holder pursuant to this Agreement when such obligations are due, then the Company shall send a notice to Working Interest Holder
(a “Late Payment Notice”) disclosing such failure or expected failure. If the Company sends a Late Payment Notice to
Working Interest Holder, then the Company’s failure to satisfy any of the Company’s payment obligations during a calendar
year will not be considered a breach of this Agreement, and Working Interest Holder hereby agrees not to exercise Working Interest
Holder’s remedies under this Agreement, until the Company has been delinquent in the Company’s payment obligations
for an aggregate of three (3) consecutive calendar quarters in such calendar year. Notwithstanding the foregoing, a late fee of
two percent (2%) over the Prime Rate will accrue on all unpaid amounts from the date such obligations were due. The imposition
and payment of a late fee will not constitute a waiver of Working Interest Holder’s rights with respect to such payment default.

 

(d)   Before
or simultaneously with each payment of the Revenue Participation Payments, the Company shall deliver a written report setting
forth in reasonable detail the calculation of the Revenue Participation Payments payable to Working Interest Holder for such calendar
quarter and the calculation of Gross Revenue and Revenue Participation Payments due to Working Interest Holder (the “Revenue
Participation Report”).

 

Section 5.04 Inspections and
Audits of the Company. Following the Closing, upon reasonable prior written notice and during normal business hours, Working Interest
Holder may cause an inspection and/or audit by an independent public accounting firm reasonably acceptable to the Company to be
made of the Company’s books of account for the two (2) calendar years before the audit, no more frequently than once per
calendar year, for the purpose of determining the correctness of Revenue Participation Payments made under this Agreement. All
of the expenses of any inspection or audit requested by Working Interest Holder hereunder (including the fees and expenses of such
independent public accounting firm designated for such purpose) shall be borne by (i) Working Interest Holder, if the independent
public accounting firm determines that Revenue Participation Payments previously paid were incorrect by an amount less than or
equal to five percent (5%) of the Revenue Participation Payments actually paid or (ii) the Company, if the independent public accounting
firm determines that Revenue Participation Payments previously paid were incorrect by an amount greater than five percent (5%)
of the Revenue Participation Payments actually paid. Any such accounting firm shall not disclose the Company’s or its licensees’
confidential information to Working Interest Holder, except to the extent such disclosure is either necessary to determine the
correctness of Revenue Participation Payments or otherwise would be included in a Revenue Participation Report. All information
obtained by Working Interest Holder as a result of any such inspection or audit shall be Confidential Information subject to Article
VII (Confidentiality).

 

Section 5.05 Further Assurances.
After the Closing, the Company and Working Interest Holder agree to execute and deliver such other documents, certificates, agreements
and other writings and to take such other actions as may be reasonably necessary in order to give effect to the transactions contemplated
by this Agreement.

 

 

 

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Article VI. INDEMNIFICATION

 

Section 6.01 General Indemnity.
From and after the Closing:

 

(a)   the
Company hereby agrees to indemnify, defend and hold harmless Working Interest Holder and its Affiliates and its and their directors,
managers, members, officers, agents and employees (the “Working Interest Holder Indemnified Parties”) from, against
and in respect of all Losses suffered or incurred by Working Interest Holder Indemnified Parties to the extent arising out of
or resulting from (i) any breach of any of the representations or warranties (in each case, when made) of the Company in this
Agreement and (ii) any breach of any of the covenants or agreements of the Company in this Agreement; and

 

(b)   Working
Interest Holder hereby agrees to indemnify, defend and hold harmless the Company and its Affiliates and its and their directors,
officers, agents and employees (the “Company Indemnified Parties”) from, against and in respect of all Losses suffered
or incurred by the Company Indemnified Parties to the extent arising out of or resulting from (i) any breach of any of the representations
or warranties (in each case, when made) of Working Interest Holder in this Agreement or (ii) any breach of any of the covenants
or agreements of Working Interest Holder in this Agreement.

 

Section 6.02 Limitations on
Liability. No party hereto will be liable for any consequential, punitive, special or incidental damages, and no claim for indemnification
will be asserted by any party under this Article VI for any consequential, punitive, special or incidental damages, as a result
of any breach of any of the representations or warranties (in each case, when made) of the other party hereto in this Agreement
or any breach of any of the covenants or agreements of the other party hereto in this Agreement (including under this Article VI).

 

Article VII. CONFIDENTIALITY

 

Section 7.01 Confidentiality.
Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the parties, the parties hereto agree
that, for the term of this Agreement and for two (2) years thereafter, each party (the “Non-Disclosing Party”) shall
keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as provided for in this
Agreement (which includes the exercise of any rights or the performance of any obligations hereunder) any information furnished
to the Non-Disclosing Party (such information, “Confidential Information”) by or on behalf of the other party (the
“Disclosing Party”) pursuant to this Agreement except for that portion of such information that:

 

(a)   was
already known to the Non-Disclosing Party, other than under an obligation of confidentiality, at the time of disclosure by the
Disclosing Party;

 

(b)   was
generally available to the public or otherwise part of the public domain at the time of its disclosure to the Non-Disclosing Party;

 

(c)   became
generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or
omission of the Non-Disclosing Party in breach of this Agreement;

 

(d)   is
independently developed by the Non-Disclosing Party or any of its Affiliates without the use of the Confidential Information;
or

 

(e)   is subsequently disclosed to the Non-Disclosing Party on a non-confidential basis by a Third Party without obligations of
confidentiality with respect thereto.

 

 

 

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Section 7.02 Authorized Disclosure.
Either party may disclose Confidential Information to the extent such disclosure is reasonably necessary in the following situations:

 

 (a)   prosecuting or defending litigation;

 

(b)   complying
with applicable laws and regulations, including regulations promulgated by securities exchanges;

 

(c)   complying with a valid order of a court of competent jurisdiction or other Governmental Entity;

 

 (d)   for regulatory, Tax or customs purposes;

 

 (e)   for audit purposes;

 

(f)   disclosure
to its Affiliates, directors, managers, trustees, officers, employees and agents only on a need-to-know basis and solely in connection
with the performance of this Agreement or oversight of the transactions contemplated hereby, provided that each disclose must
be bound by customary obligations of confidentiality and non-use before any such disclosure;

 

 (g)   upon the prior written consent of the Disclosing Party; or

 

(h)   disclosure
to its investors and other sources of funding, including debt financing, and their respective accountants, financial advisors
and other professional representatives, provided that such disclosure shall be made only to the extent customarily required
to consummate such investment or financing transaction and that each disclose must be bound by customary obligations of confidentiality
and non-use before any such disclosure.

 

Notwithstanding
the foregoing, in the event that the Non-Disclosing Party is required to make a disclosure of the Disclosing Party’s Confidential
Information pursuant to Sections 7.02(a), (b), (c) or (d), the Non-Disclosing Party shall, except where impracticable, give reasonable
advance notice to the Disclosing Party of such disclosure and use reasonable efforts to secure confidential treatment of such information.
In any event, Working Interest Holder shall not file any patent application based on or using the Confidential Information of the
Company provided hereunder or otherwise assert any ownership claim with respect to, or claim any right to make, use or sell products
incorporating, the Extraction Technology.

 

Article VIII. TERMINATION

 

Section 8.01 Grounds for Termination.
This Agreement may be terminated:

 

 (a)   by mutual written agreement of Working Interest Holder and the Company; or

 

(b)   by
Working Interest Holder if there is a Payment Breach; provided, however, that the Company shall have thirty (30) calendar
days to cure any Payment Breach after the date on which Working Interest Holder shall have first provided written notice to the
Company of such Payment Breach.

 

Section 8.02 Automatic Termination.
Unless earlier terminated as provided in Section 8.01, after the Closing, this Agreement shall continue in full force and effect
until payment in full of the Maximum Revenue Participation, upon which this Agreement shall terminate automatically.

 

Section 8.03 Survival. Notwithstanding
anything to the contrary in this Article VIII, the following provisions shall survive termination of this Agreement: Article VI
(Indemnification); Article VII (Confidentiality) and Article IX (Miscellaneous). Termination of this Agreement shall not relieve
any party of liability in respect of breaches under this Agreement by any party on or before termination of this Agreement.

 

 

 

    	 	9	 

     

    

 

Article IX. MISCELLANEOUS

 

Section 9.01 Definitions. The
following terms, as used herein, shall have the following meanings:

 

“Affiliate”
means, with respect to any particular Person, any other Person directly or indirectly controlling, controlled by or under
common control with such particular Person.

 

“Agreement” is defined in the preamble.

 

“Business
Day” means any day other than (i) a Saturday or Sunday or (ii) a day on which banking institutions located in Las Vegas,
Nevada are permitted or required by applicable law or regulation to remain closed.

 

“Closing” means
the closing of the sale, transfer, assignment and conveyance of the Revenue Participation Right hereunder.

 

“Closing Date” means the date on which
the Closing occurs pursuant to Section 2.01.

 

“Collateral” means (i) the
Product Collateral and (ii) until such time as the first Revenue Participation Payment owed and payable under this Agreement
is made by the Company to Working Interest Holder, the Stock Collateral.

 

“Company” is defined in the preamble.

 

“Company Indemnified Parties” is
defined in Section 6.01(b).

 

“Confidential Information” is defined in Section 7.01.

 

“Disclosing Party” is defined in Section
7.01.

 

“Extraction Machine”
means that that certain petroleum extraction machine built using funds invested by Working Interest Holder’s investors.

 

“Extraction
Technology” means that certain petroleum extraction technology (also known as hydrocarbon extraction technology) suitable
to extract petroleum (or hydrocarbons) from material, and all related concepts and conceptualizations thereof, and all related
proprietary information and intellectual property rights related thereto, all of which are proprietary to and owned exclusively
by the Company.

 

“Governmental
Entity” means any: (i) nation, principality, republic, state, commonwealth, province, territory, county, municipality,
district or other jurisdiction of any nature; (ii) federal, state, local, municipal, foreign or other government; (iii)
governmental or quasi-governmental authority of any nature (including any governmental division, subdivision, department,
agency, bureau, branch, office, commission, council, board, instrumentality, officer, official, representative, organization,
unit, body or other entity and any court, arbitrator or other tribunal); (iv) multi-national organization or body; or (v)
individual, body or other entity exercising, or entitled to exercise, any executive, legislative, judicial, administrative,
regulatory, police, military or taxing authority or power of any nature.

 

“Gross
Revenue” means the actual cash receipts of the Company from the sale of Product extracted by the Company from the
Selected Material using the Extraction Machine, which Product has been delivered to and accepted by the purchaser. “Gross
Revenue,” as determined pursuant to this Agreement, may materially differ from the calculation of revenue determined by Generally
Accepted Accounting Principles and the Company’s revenue recognition policies used in the preparation of its financial statements.
“Judgment” means any judgment, order, writ, injunction, citation, award or decree of any nature.

 

 

 

    	 	10	 

     

    

 

“Knowledge
of the Company” means the actual knowledge of Matt Nicosia,and/or Tyler Nelson, after due inquiry. (Matt Nicosia is the President
and CEO of the Company; and Tyler Nelson is the Chief Financial Officer and Secretary of the Company.)

 

“Land-Related
Expenses” means all costs incurred by the Company arising from or relating to the ownership, lease, control or use of the
land from which the Selected Material is extracted (or is to be extracted), including but not limited to the purchase price, lease
or rental charges, existing royalties, profit sharing and similar obligations, governmental fees and charges, transfer fees, property
taxes and license fees.

 

“Late Payment Notice” is defined in Section
5.02(c).

 

“Lien”
means any mortgage, lien, pledge, participation interest, charge, adverse claim, security interest, encumbrance or restriction
of any kind, including any restriction on use, transfer or exercise of any other attribute of ownership of any kind.

 

“Loss”
means any and all Judgments, damages, losses, claims, costs, liabilities and expenses, including reasonable fees and out-of-pocket
expenses of counsel; provided, however, that “Loss” shall not include any consequential, punitive, special or
incidental damages.

 

“Maximum Revenue Participation”
is defined in Section 5.01.

 

“Non-Disclosing Party” is defined in Section 7.01.

 

“Payment Breach” is defined in Section
1.04(d).

 

“Payment
Stream” means all Revenue Participation Payments payable in respect of Gross Revenue from Selected Material.

 

“Permitted
Liens” means any and all Liens related to or otherwise based on or created by or pursuant to Land-Related Expenses.

 

“Person”
means any individual, firm, corporation, company, partnership, limited liability company, trust, joint venture, association, estate,
trust, Governmental Entity or other entity, enterprise, association or organization.

 

“Prime
Rate” means the prime rate published by The Wall Street Journal, from time to time, as the prime rate.

 

“Product”
means any hydrocarbon product extracted by the Company from the Selected Material using the Extraction Machine, whether crude or
refined oil, diesel, gasoline, naphtha, fuel oil, heavy oil or any other hydrocarbon byproduct.

 

“Product
Collateral” means any and all Product that has not been sold by the Company and therefore has not been converted into Gross
Revenue.

 

“Purchase Price” is defined in Section
1.02.

 

“Revenue
Participation Payment” means, for each quarter, an amount payable to Working Interest Holder equal to the Gross Revenue of
Selected Material during such quarter multiplied by the Revenue Participation Rate.

 

“Revenue
Participation Rate” means twenty-five percent (25%) of the Gross Revenue from the sale of such Product.

 

“Revenue Participation Report” is defined
in Section 5.02(d).

 

 

 

    	 	11	 

     

    

 

“Revenue
Participation Right” means, collectively, all of Working Interest Holder’s rights to receive the Payment Stream.

 

“Selected Material” is defined in Section
5.01.

 

“Stock Collateral” means twenty million
(20,000,000) shares of Common Stock, par value

$.001 per share, of Vivakor, Inc., a Nevada corporation.

 

“Tax”
or “Taxes” means any federal, state, local or foreign income, gross receipts, license, payroll, employment, excise,
severance, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding,
social security, unemployment, disability, real property, personal property, abandoned property, value added, alternative or add-
on minimum, estimated or other tax of any kind whatsoever, including any interest, penalty or addition thereto, whether disputed
or not.

 

“Third
Party” means any Person that is not the Company or an Affiliate of the Company and not Working Interest Holder or an Affiliate
of Working Interest Holder.

 

“Uniform
Commercial Code” means the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the
State of Nevada; provided that, to the extent that the Uniform Commercial Code is used to define any term herein and
such term is defined differently in different Articles or Divisions of the Uniform Commercial Code, the definition of such
term contained in Article or Division 9 shall govern; provided further that, in the event that, by reason of mandatory
provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Working Interest
Holder’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the
State of Nevada, the term “Uniform Commercial Code” shall mean the Uniform Commercial Code as enacted and in
effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection,
priority or remedies and for purposes of definitions relating to such provisions.

 

“Working Interest Holder” is defined in
the preamble.

 

“Working Interest Holder Indemnified Parties”
is defined in Section 6.01(a).

 

“Working
Interest Right” means Working Interest Holder’s right and obligations related to the Company’s operations and
production of the Property, which is being acquired with 80% of each Working Interest Holder investor’s funds.

 

Section 9.02 Certain Interpretations.
Except where expressly stated otherwise in this Agreement, the following rules of interpretation apply to this Agreement:

 

(a)   “either” and “or” are not exclusive and “include,” “includes” and “including”
are not limiting and shall be deemed to be followed by the words “without limitation”;

 

(b)   “extent” in the phrase “to the extent” means the degree to which a subject or other thing extends,
and such phrase does not mean simply “if”;

 

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

 

 (d)   references to a Person are also to its permitted successors and assigns;

 

 (e)   definitions are applicable to the singular as well as the plural forms of such terms;

 

 

 

    	 	12	 

     

    

 

 (f)    references to an “Article” or “Section” refer to an Article or Section of this Agreement;

 

(g)    references
to “$” or otherwise to Dollar amounts refer to the lawful currency of the United States; and

 

(h)    references to a law include any amendment or modification to such law and rules and regulations issued thereunder, whether
such amendment or modification is made, or issuance of such rules and regulations occurs, before or after the effective date of
this Agreement.

 

Section 9.03 Headings. The
descriptive headings of the several Articles and Sections of this Agreement are for convenience only, do not constitute a part
of this Agreement and shall not control or affect, in any way, the meaning or interpretation of this Agreement.

 

Section 9.04 Notices. All
notices and other communications under this Agreement shall be in writing and shall be by courier service or personal
delivery to the following addresses, or to such other addresses as shall be designated from time to time by a party hereto in
accordance with this

 

Section 9.04:

 

If to the Company, to it at:

 

VivaVentures Energy Group, Inc.

8565 S.
Eastern Ave.,

Las Vegas, NV 89123

Attention: Chief Executive
Officer

 

with a copy to:

 

Law Offices of Craig V. Butler

300 Spectrum Center Drive, Ste 300

Irvine, CA 92618

Attention: Craig V. Butler, Esq

 

If to Working Interest Holder, to it at:

 

VivaVentures ROYALTY II, LLC

c/o VivaVentures Management
Company, Inc., Manager

8565 S. Eastern Ave.,

Las Vegas, NV 89123

Attention: Chief Executive Officer

 

All notices and
communications under this Agreement shall be deemed to have been duly given (i) when delivered by hand, if personally
delivered, or (ii) one (1) Business Day following sending within the United States by overnight delivery via commercial
one-day overnight courier service.

 

Section 9.05 Expenses. Except
as otherwise provided herein, all fees, costs and expenses (including legal, accounting and banking fees) incurred in connection
with the preparation, negotiation, execution and delivery of this Agreement and to consummate the transactions contemplated hereby
shall be paid by the party hereto incurring such fees, costs and expenses.

 

 

 

    	 	13	 

     

    

 

Section 9.06 Assignment. This
Agreement shall be binding on, inure to the benefit of and be enforceable by the parties hereto and their respective permitted
successors and assigns. The Company may not assign this Agreement without Working Interest Holder’s prior written consent,
except in connection with a sale of all or substantially all of the assets of the Company, and provided that the successor
entity expressly assumes in writing to Working Interest Holder all of the Company’s rights and obligations under this Agreement.
Working Interest Holder may not assign this Agreement without the Company’s prior written consent (which the Company may
withhold in its discretion), provided that any such assignee agrees in writing to the Company all of Working Interest Holder’s
rights and obligations under this Agreement; provided further, however, that Working Interest Holder shall not have any
right to assign this Agreement at any time before the release of Working Interest Holder’s Lien in all of the Stock Collateral
pursuant to Section 1.04(b). Any purported assignment in violation of this Section 9.06 shall be null and void.

 

Section 9.07 Amendment and Waiver.

 

(a)   This
Agreement may be amended, modified or supplemented only in a writing signed by each of the parties hereto. Any provision of this
Agreement may be waived only in a writing signed by the party hereto granting such waiver.

 

(b)   No
failure or delay on the part of any party hereto in exercising any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy. No course of dealing between the parties hereto shall be effective to amend,
modify, supplement or waive any provision of this Agreement.

 

Section 9.08 Entire Agreement.
This Agreement constitutes the entire understanding between the parties hereto with respect to the subject matter hereof and supersedes
all other understandings and negotiations with respect thereto.

 

Section 9.09 No Third Party
Beneficiaries. This Agreement is for the sole benefit of the Company and Working Interest Holder and their permitted successors
and assigns, and nothing herein expressed or implied shall give or be construed to give to any Person, other than the parties hereto
and such permitted successors and assigns, any legal or equitable rights hereunder.

 

Section 9.10 Governing Law.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada without giving effect to
any choice or conflict of law provision or rule that would cause the application of the laws of any other jurisdiction.

 

Section 9.11 JURISDICTION; VENUE.

 

(a)   EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS RESPECTIVE PROPERTY AND ASSETS, TO
THE EXCLUSIVE JURISDICTION OF ANY NEVADA STATE COURT OR FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN LAS VEGAS,
NEVADA, AND ANY APPELLATE COURT THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, AND WORKING INTEREST HOLDER AND THE COMPANY HEREBY IRREVOCABLY
AND UNCONDITIONALLY AGREE THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH
NEVADA COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. WORKING INTEREST HOLDER AND THE
COMPANY HEREBY AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY APPLICABLE LAW. EACH OF WORKING INTEREST HOLDER AND
THE COMPANY HEREBY SUBMITS TO THE EXCLUSIVE PERSONAL JURISDICTION AND VENUE OF SUCH NEVADA STATE AND FEDERAL COURTS. WORKING
INTEREST HOLDER AND THE COMPANY AGREE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THAT PROCESS MAY BE SERVED ON
WORKING INTEREST HOLDER OR THE COMPANY IN THE SAME MANNER THAT NOTICES MAY BE GIVEN PURSUANT TO SECTION 9.04 HEREOF.

 

 

 

    	 	14	 

     

    

 

(b)   EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY
AND EFFECTIVELY DO SO, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY NEVADA STATE OR FEDERAL COURT.
EACH OF WORKING INTEREST HOLDER AND THE COMPANY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

 

Section 9.12 Severability.
If any term or provision of this Agreement is for any reason held to be invalid, illegal or unenforceable in any situation in any
jurisdiction, then, to the extent that the economic and legal substance of the transactions contemplated hereby is not affected
in a manner that is materially adverse to either party hereto, all other terms and provisions of this Agreement shall nevertheless
remain in full force and effect, and the enforceability and validity of the offending term or provision shall not be affected in
any other situation or jurisdiction.

 

Section 9.13 Specific
Performance. Each of the parties hereto acknowledges and agrees that the other party would be damaged irreparably in the
event that any of the provisions of this Agreement is not performed in accordance with its specific terms or otherwise is
breached or violated. Accordingly, each of the parties hereto agrees that, without posting bond or other undertaking, the
other party will be entitled to an injunction or injunctions to prevent breaches or violations of the provisions of this
Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action, suit or other
proceeding instituted in any court of the United States or any state thereof having jurisdiction over the parties and the
matter in addition to any other remedy to which it may be entitled, at law or in equity. Each party hereto further agrees
that, in the event of any action for specific performance in respect of such breach or violation, such party will not assert
the defense that a remedy at law would be adequate.

 

Section 9.14 Counterparts.
This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same agreement.
Copies of executed counterparts transmitted by telecopy, facsimile or other similar means of electronic transmission, including
“PDF,” shall be considered original executed counterparts, provided receipt of such counterparts is confirmed.

 

Section 9.15 Relationship
of Parties. The relationship between Working Interest Holder and the Company is solely that of purchaser and company, and
neither Working Interest Holder nor the Company has any fiduciary or other special relationship with the other party or any
of its Affiliates. This Agreement is not a partnership or similar agreement, and nothing contained herein shall be deemed to
constitute Working Interest Holder and the Company as a partnership, an association, a joint venture or any other kind of
entity or legal form for any purpose, including any Tax purpose. Working Interest Holder and the Company agree that they
shall not take any inconsistent position with respect to such treatment in a filing with any Governmental Entity.

 

[Signature Page Follows]

 

 

 

 

 

    	 	15	 

     

    

 

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed and delivered by their respective representatives thereunto duly authorized effective as of
the effective date first written above.

 

	 	The “Company”:

 

VIVAVENTURES ENERGY GROUP, INC.,

a Nevada corporation

 

 

By: /s/ Matt Nicosia

      Matt Nicosia,

      President and CEO

 

“Working Interest Holder”:

 

VIVAVENTURES
ROYALTY II, LLC,

a Nevada limited liability company

 

By: VIVAVENTURES MANAGEMENT COMPANY, INC.,

a Nevada corporation, its Manager

 

 

By: /s/ Matt Nicosia

      Matt Nicosia,

      President and CEO

 

 

 

 

 

 

[SIGNATURE PAGE TO WORKING INTEREST AGREEMENT]

 

 

 

 

    	 	16Exhibit 10.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIMITED LIABILITY COMPANY
AGREEMENT

 

OF

 

International
Metals Exchange, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THE SECURITIES OFFERED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 NOR APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION NOR BY THE SECURITIES REGULATORY AUTHORITY OF ANY STATE, NOR HAS ANY COMMISSION OR AUTHORITY PASSED UPON OR
ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF ANY DISCLOSURE MADE IN CONNECTION THEREWITH. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE. THE SECURITIES OFFERED HEREBY MAY NOT BE RESOLD WITHOUT REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS OR EXEMPTION THEREFROM. ANY TRANSFER OF THE SECURITIES REPRESENTED BY THIS AGREEMENT
IS FURTHER SUBJECT TO OTHER RESTRICTIONS, TERMS AND CONDITIONS WHICH ARE SET FORTH IN THIS AGREEMENT.

 

 

 

 

 

 

 

 

 

 

 

 

    	 	i	 

     

    

 

TABLE
OF CONTENTS

 

	 	Page
	1.   Organization	1
	1.1   Formation	1
	1.2   Name and Place of Business	1
	1.3   Business and Purpose of the Company	1
	1.4   Term	1
	1.5   Required Filings	1
	1.6   Registered Office and Registered Agent	1
	1.7   Competitive Transactions	1
	2.   Definitions	1
	3.   Capitalization and Financing	1
	3.1   Capital Contributions	1
	3.2   Additional Capital Contributions	2
	3.3   Failure to Make Additional Capital Contribution	2
	3.3.1   Loan	2
	3.3.2   Return of Additional Capital Contribution	2
	3.4   Enforcement of Obligation	2
	3.5   Liabilities of Members	2
	3.6   Company Loans	2
	3.7   Additional Equity Investors	2
	4.   Allocation of Tax Items	3
	4.1   Allocation of Net Income and Net Loss	3
	4.1.1   Net Income	3
	4.1.2   Net Loss	3
	4.2   Special Allocations	3
	4.2.1   Qualified Income Offset	3
	4.2.2   Gross Income Allocation	3
	4.2.3   Minimum Gain Chargeback	3
	4.2.4   Member Minimum Gain Chargeback	4
	4.2.5   Nonrecourse Deductions	4
	4.2.6   Member Nonrecourse Deductions	4
	4.2.7   Code Section 754 Adjustments	4

 

 

 

    	 	ii	 

     

    

 

TABLE
OF CONTENTS

(continued)

	 	Page

	4.3   Curative Allocations	4
	4.4   Contributed Property	4
	4.5   Recapture Income	4
	4.6   Allocation of Company Items	4
	4.7   Assignment	5
	4.8   Power of Managers to Vary Allocations	5
	4.9   Consent of Members	5
	4.10   Withholding Obligations	5
	5.   Distributions	6
	5.1   Cash From Operations	6
	5.2   Restrictions	6
	6.   Compensation to the Managers and their Affiliates	6
	6.1   Compensation	6
	6.2   Company Expenses	6
	6.2.1   Operating Expenses	6
	6.2.2   Overhead of Managers	6
	7.   Authority and Responsibilities of the Managers	6
	7.1   Management	6
	7.2   Number, Tenure and Qualifications	6
	7.3   Managers’ Authority	6
	7.4   Major Decisions	9
	7.5   Obligations of the Managers	10
	7.6   Administration of the Company	11
	7.7   Indemnification of the Managers and the Officers	11
	7.8   No Personal Liability for Return of Capital	11
	7.9   Authority as to Third Persons	11
	7.10   Insurance	12
	7.11   Officers	12
	7.11.1   Appointment of Officers	12
	7.11.2   Removal, Resignation and Filling of Vacancy of Officers	12
	7.11.3   Salaries of Officers	12
	7.11.4   Signing Authority	12

 

 

 

    	 	iii	 

     

    

 

TABLE
OF CONTENTS

(continued)

	 	Page

	8.   Rights, Authority and Voting of the Members	12
	8.1   Members Are Not Agents	12
	8.2   Voting by the Members	12
	8.3   Member Vote	13
	8.4   Meetings of the Members	13
	8.4.1   Notice	13
	8.4.2   Adjourned Meeting and Notice Thereof	13
	8.4.3   Quorum	13
	8.4.4   Consent of Absentees	13
	8.4.5   Action Without Meeting	13
	8.4.6   Record Dates	14
	8.4.7   Proxies	14
	8.4.8   Chairman of Meeting	14
	8.4.9   Record Date and Closing Company Books	14
	8.4.10 Meetings	14
	8.5   Rights of Members	14
	8.6   Restrictions on the Owners	15
	8.7   Return of Capital	15
	8.8   Indemnification of Members	15
	9.   Resignation, Withdrawal or Removal of a Manager	15
	9.1   Resignation or Withdrawal of Manager	15
	9.2   Removal	15
	9.3   Purchase of Manager’s Interest	15
	9.4   Fair
    Market Value	16
	10.   Assignment of a Manager’s Interest	16
	10.1   Permitted Assignments	16
	10.2   Substitute Manager	16
	10.3   Transfer in Violation Not Recognized	16
	10.4   Transfers to Affiliates	16

 

 

 

    	 	iv	 

     

    

 

TABLE
OF CONTENTS

(continued)

	 	Page

	11.   Member and Owner Transfers	16
	11.1   Resignation or Withdrawal of a Member	16
	11.2   Permitted Assignments	16
	11.3   Substituted Members	17
	11.4   Loss of Rights	17
	11.5   Consent of Members	17
	11.6   Transfer in Violation Not Recognized	17
	11.7   Rights of Economic Interest Owner	17
	11.8   Right to Inspect Books	18
	11.9   Transfer Subject to Law	18
	11.10   Right of First Refusal	18
	11.11   Repurchase Upon Violation of this Agreement	18
	11.12   Exit
    Opportunities	18
	11.13   Specific Performance	19

	12.   Option
                                         to Purchase Units Upon Specified Events	19
	12.1   Option
    to Purchase	19
	12.2   Exercise
    of Option	20
	12.3   Notice
    of Exercise of Option	20
	12.4   Purchase
    Price for Units	20
	12.5   Payment
    of Purchase Price	21
	12.6   Agreement
    to Transfer

	13.   Books,
    Records, Accounting and Reports	21
	13.1   Records	21
	13.2   Delivery to Members and Inspection	22
	13.3   Reports	22
	13.4   Tax Information	22
	13.5   Limitations	22
	13.6   Partnership Audit Rules	22
	14.   Termination and Dissolution of the Company	23
	14.1   Termination of the Company	23
	14.2   Certificate of Cancellation	23
	14.3   Liquidation of Assets	24
	14.4   Distributions Upon Dissolution	24
	14.5   Liquidation of Member’s Interest	24
	15.   Special and Limited Power of Attorney and Amendments	24
	15.1   Power of Attorney	24
	15.2   Provision of Power of Attorney	25
	15.3   Notice to Members	25
	15.4   Amendment of Agreement	25

 

 

 

    	 	v	 

     

    

 

TABLE
OF CONTENTS

(continued)

	 	Page

	15.4.1   Admission of Member	25
	15.4.2   Amendments with Consent of Member	25
	15.4.3   Amendments Without Consent of the Members	26
	15.4.4   Execution and Recording of Amendments	 
	15.4.5   Prohibitions	26
	16.   Relationship of this Agreement to the Act	26
	17.   Representations of Each Member	26
	17.1   Sophistication and Risk Tolerance	26
	17.2   Unregistered Securities	27
	17.3   No View to Resell	27
	17.4   Status	27
	17.5   Due Authorization	27
	17.6   Other Agreements	27
	18.   Miscellaneous	27
	18.1   Counterparts	27
	18.2   Successors and Assigns	27
	18.3   Severability	27
	18.4   Notices	27
	18.5   Members’ Address	27
	18.6   Name and Address of Managers	27
	18.7   Governing Law	28
	18.8   Captions	28
	18.9   Gender	28
	18.10   Time	28
	18.11   Additional Documents	28
	18.12   Descriptions	28
	18.13   Attorneys’ Fees	28
	18.14   Venue	28
	18.15   Partition	28
	18.16   Integrated and Binding Agreement	28
	18.17   Title to Company Property	28
	18.18   Electronic Signatures	28

 

EXHIBITS:

EXHIBIT A: Definitions

EXHIBIT B: Members

 

 

 

    	 	vi	 

     

    

 

LIMITED LIABILITY COMPANY
AGREEMENT

OF

International
Metals Exchange, LLC

 

This Limited Liability
Company Agreement (this “Agreement”) of International Metals Exchange, LLC, effective as of June 10, 2020, is entered
into by and between VivaVentures Management Company, Inc., a Nevada corporation (“VVMC”), as a Member and a Manager,
pursuant to the Act on the following terms and conditions.

 

1.                  
Organization.

 

1.1              
Formation. On June 10, 2020, a Certificate of Formation was filed in the office of the Secretary of State of the
state of Nevada in accordance with and pursuant to the Act.

 

1.2              
Name and Place of Business. The name of the Company shall be International Metals Exchange, LLC, and its principal
place of business shall be 8565 S. Eastern Ave, Ste. 150 Las Vegas, Nevada 89123. The Managers may change such name, change such
place of business or establish additional places of business of the Company as the Managers may determine to be necessary or desirable.

 

1.3              
Business and Purpose of the Company. The purpose of the Company is to (i) preserve the Members’ capital
investment, (ii) realize income through its investment in the Business, and (iii) engage in such other activities which
are allowed under Nevada law in the sole discretion of the Managers. The Company intends to purchase
precious metals concentrate with the goal of marketing and selling the precious metal concentrate to international buyers of precious
metal

 

1.4              
Term. The term of the Company shall commence on the effective date of this Agreement and shall terminate on December
31, 2099, unless the Company is sooner dissolved and terminated as provided in this Agreement.

 

1.5              
Required Filings. The Administrative Manager shall execute, acknowledge, file, record, amend and/or publish such
certificates and documents as may be required by this Agreement or by law in connection with the formation and operation of the
Company.

 

1.6              
Registered Office and Registered Agent. The Company’s initial registered office and initial registered agent
shall be as provided in the Certificate of Formation. The registered office and registered agent may be changed from time to time
by the Administrative Manager by filing the address of the new registered office and/or the name of the new registered agent pursuant
to the Act.

 

1.7              
Competitive Transactions. Any Manager, Owner or any Affiliate thereof, or any shareholder, officer, director, employee,
partner, member, manager or any Person owning an interest therein, may engage in or possess an interest in any other business or
venture of any nature or description, whether or not competitive with the Company, including, but not limited to, the acquisition,
syndication, ownership, financing, leasing, operation, maintenance, management and development of property similar to the Business
and no Manager, Owner or any Affiliate, or other Person shall have any interest in such other business or venture by reason of
their interest in the Company.

 

2.                  
Definitions. Definitions for this Agreement are set forth on Exhibit A and are incorporated herein.

 

3.                  
Capitalization and Financing.

 

3.1              
Capital Contributions.

 

 

 

    	 	1	 

     

    

 

3.1.1         
Manager’s Capital Contribution. Upon the execution of this Agreement by VVMC, VVMC contributes to the Company
cash in the amount of One Thousand Dollars ($1,000) in exchange for the Company’s issuance of 1,000 Class A Units to VVMC.

 

3.1.2         
Units. The Company is hereby authorized to sell and issue not more than 2,201,000 units, 1,000 Class A Units, 2,200,000
Class B Units and to admit the Persons who acquire such Units as Members.

 

3.2              
Additional Capital Contributions. If the Managers determine that the Company requires cash in addition to the Capital
Contributions set forth in Section 3.1 in order to carry out the purposes of this Agreement or to carry on the business of
the Company, no more than 30 days after the written request of the Managers, the Members shall contribute the additional Capital
Contributions required. All future additional Capital Contributions shall be made pro rata by the Members according to their respective
Percentage Interests in their respective class of unit at the time of the request for additional Capital Contributions.

 

3.3              
Failure to Make Additional Capital Contribution. In the event a Member (the “Delinquent Member”) fails
to make all or any portion of its capital contribution as set forth in Section 3.2 (the “Required Additional Capital
Contribution”) by the specified contribution date for the Required Additional Capital Contribution, the non-defaulting Member
(the “Non-Delinquent Member”) may elect one of the following:

 

3.3.1         
Loan. The Non-Delinquent Member may fund the amount of the Required Additional Capital Contribution not made by the
Delinquent Member, such amount together with the amount funded by the Non-Delinquent Member shall be treated as a loan to the Company
by the Non-Delinquent Member. Any such loan shall bear interest at a fixed rate equal to the lesser of 10% or the maximum interest
rate permitted by applicable law. Any principal and interest on any such loan shall be repaid prior to any Distributions to the
Members pursuant to Section 5.1; or

 

3.3.2         
Return of Additional Capital Contribution. The Non-Delinquent Member may elect to have its Required Additional Capital
Contribution returned to it by the Company.

 

3.4              
Enforcement of Obligation. Only the Company, the Managers or a Member and no third party creditor (either in its
own right or as a successor-in-interest of the Company, and including a trustee, receiver or other representative of the Company
or an Owner), shall be entitled to enforce the requirements to make additional Capital Contributions. The Members intend and agree
that the obligation of a Member to make Capital Contributions constitutes an agreement to make financial accommodations to and
for the benefit of the other Member and the Company.

 

3.5              
Liabilities of Manager or Members. Except as specifically provided in this Agreement, neither the Managers nor any
Member shall be required to make any additional contributions to the Company and no Manager or Member shall be liable for the debts,
liabilities, contracts or any other obligations of the Company, by reason of being a Manager or Member of the Company, nor shall
the Managers or Members be required to lend any funds to the Company, the Managers or to repay or to contribute to the Company
or any Member, or any creditor of the Company any portion or all of any deficit balance in a Member’s Capital Account.

 

3.6              
Company Loans. Any Manager, Member or an Affiliate (at the request of the Managers) may, but will have no obligation
to, make loans to the Company in the sole discretion of the Managers. All of the terms and conditions of such loan shall be approved
by the Managers in their sole discretion.

 

3.7              
Additional Equity Investors. To raise additional capital in the future to expand the Business, the Company intends
to issue and sell additional Membership Interests to other investors. In the event additional Membership Interests are sold to
raise additional capital, the Company may either amend this Agreement to add additional classes of units or the book value of the
Company’s assets may be booked up or booked down to their fair market value, and the additional Membership Interests will
be priced correspondingly. Each class of unit is anticipated to only receive distributions based on the Assets that each fund or
Member may have funded or that is associated with that class of unit.

 

 

 

    	 	2	 

     

    

 

4.                  
Allocation of Tax Items.

 

4.1              
Allocation of Net Income and Net Loss. For each fiscal year, the Net Income and Net Loss of the Company shall be
allocated to each class of unit based on the Net Income or Net Loss from the Assets funded by that class of unit. Net Income and
Net Loss of the Company shall be allocated as follows:

 

4.1.1         
Net Income. After giving effect to the special allocations set forth in Sections 4.2 and 4.3, Net Income for
any fiscal year shall be allocated as follows:

 

(a)               
To the Members of their respective class of unit in proportion to and to the extent of Net Loss allocated to the Members
pursuant to Section 4.1.2(b) until the aggregate Net Income allocated to the Members pursuant to this Section 4.1.1(a) for
such fiscal year and all previous fiscal years is equal to the aggregate Net Loss of their respective class of unit allocated to
the Members pursuant to Section 4.1.2(b) for all previous fiscal years; and

 

(b)               
Thereafter, to the Members in proportion to their Percentage Interests within and according to their class of unit.

 

4.1.2         
Net Loss. After giving effect to the special allocations set forth in Sections 4.2 and 4.3, Net Loss for any
fiscal year shall be allocated as follows:

 

(a)               
To the Members of their respective class of unit in proportion to and to the extent of Net Income allocated to the Members
pursuant to Section 4.1.1(b) until the aggregate Net Loss allocated pursuant to this Section 4.1.2(a) for such
fiscal year and all previous fiscal years equals the aggregate Net Income of their respective class of unit allocated to the Members
pursuant to Section 4.1.1(b) for all previous fiscal years; and

 

(b)               
Thereafter, to the Members in proportion to their Percentage Interests within and according to their class of unit.

 

4.2              
Special Allocations.

 

4.2.1         
Qualified Income Offset. Except as provided in Section 4.2.3, in the event any Member unexpectedly receives
any adjustments, allocations, or distributions described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5),
or 1.704-1(b)(2)(ii)(d)(6), items of Company income and gain shall be specially allocated to such Member in an amount and manner
sufficient to eliminate, to the extent required by the Treasury Regulations, the Adjusted Capital Account Deficit created by such
adjustment, allocation or distribution as quickly as possible.

 

4.2.2         
Gross Income Allocation. Net Loss shall not be allocated to any Member to the extent such allocation would cause
such Member to have an Adjusted Capital Account Deficit at the end of a fiscal year. In the event any Member has an Adjusted Capital
Account Deficit at the end of any fiscal year, each such Member shall be specially allocated items of Company gross income and
gain in the amount of such Adjusted Capital Account Deficit as quickly as possible.

 

4.2.3         
Minimum Gain Chargeback. Notwithstanding any other provision of this Section 4, if there is a net decrease in
Company Minimum Gain during any Company fiscal year, each Member shall be specially allocated items of Company income and gain
for such year (and, if necessary, subsequent years) in an amount equal to such Member’s share of the net decrease in Company
Minimum Gain, determined in accordance with Treasury Regulations Section 1.704-2(g)(2). This Section 4.2.3 is intended
to comply with the partnership minimum gain chargeback requirement in the Treasury Regulations and shall be interpreted consistently
therewith. This provision shall not apply to the extent the Member’s share of net decrease in Company Minimum Gain is caused
by a guaranty, refinancing or other change in the debt instrument causing it to become partially or wholly recourse debt or Member
Nonrecourse Debt, and such Member bears the economic risk of loss (within the meaning of Treasury Regulations Section 1.752-2)
for the newly guaranteed, refinanced or otherwise changed debt or to the extent the Member contributes cash to the capital of the
Company that is used to repay the Nonrecourse Debt, and the Member’s share of the net decrease in Company Minimum Gain results
from the repayment.

 

 

 

    	 	3	 

     

    

 

4.2.4         
Member Minimum Gain Chargeback. Notwithstanding any other provision of this Section 4, except Section 4.2.3,
if there is a net decrease in Member Minimum Gain, any Member with a share of that Member Minimum Gain (as determined under Treasury
Regulations Section 1.704-2(i)(5)) as of the beginning of the year shall be allocated items of Company income and gain for
such year (and, if necessary, subsequent years) in an amount equal to such Member’s share of the net decrease in Member Minimum
Gain, determined in accordance with Treasury Regulations Section 1.704-2(g)(2). This Section shall not apply to the extent
the net decrease in Member Minimum Gain arises because the liability ceases to be Member Nonrecourse Debt due to conversion, refinancing
or other change in a debt instrument that causes it to become partially or wholly a Nonrecourse Debt. This Section is intended
to comply with the partner minimum gain chargeback requirements in the Treasury Regulations and shall be interpreted consistently
therewith and applied with the restrictions attributable thereto.

 

4.2.5         
Nonrecourse Deductions. Nonrecourse Deductions for any fiscal year or other period shall be allocated to the Members
based on Nonrecourse Deductions pertaining to each class of unit’s Assets, and then in proportion to their Percentage Interests
and each Member’s share of excess Nonrecourse Debt shall be in the same proportion.

 

4.2.6         
Member Nonrecourse Deductions. Member Nonrecourse Deductions for any fiscal year shall be allocated to the Member
who bears the economic risk of loss as set forth in Treasury Regulations Section 1.752-2 with respect to the Member Nonrecourse
Debt. If more than one Member bears the economic risk of loss for a Member Nonrecourse Debt, any Member Nonrecourse Deductions
attributable to that Member Nonrecourse Debt shall be allocated among the Members according to the ratio in which they bear the
economic risk of loss.

 

4.2.7         
Code Section 754 Adjustments. To the extent an adjustment to the adjusted tax basis of any Company asset pursuant
to Code Section 734(b) or Code Section 743(b) is required, pursuant to Treasury Regulations Section 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 to the Members in a manner consistent with the manner in which their Capital Accounts
are required to be adjusted pursuant to such Section of the Treasury Regulations.

 

4.3              
Curative Allocations. Notwithstanding any other provision of this Agreement, the Regulatory Allocations shall be
taken into account in allocating items of income, gain, loss and deduction among the Members so that, to the extent possible, the
net amount of such allocations of other items and the Regulatory Allocations to each Member shall be equal to the net amount that
would have been allocated to each such Member if the Regulatory Allocations had not occurred.

 

4.4              
Contributed Property. Notwithstanding any other provision of this Agreement, the Administrative Manager shall cause
depreciation and/or cost recovery deductions and gain or loss attributable to Property contributed by a Member or revalued by the
Company to be allocated among the Members for income tax purposes in accordance with Code Section 704(c) and the Treasury
Regulations promulgated thereunder. The Managers shall be entitled to select the appropriate method to account for the variation
between the basis of a Member’s interest in a contributed Property and the fair market value of the interest at the time
it is contributed to the Company or revalued.

 

4.5              
Recapture Income. The portion of each Member’s distributive share of Net Income that is characterized as ordinary
income pursuant to Code Sections 1245 or 1250 shall be proportionate to the amount of Net Income or Net Loss which included
the corresponding depreciation deductions that were allocated to such Member as compared with the amount of depreciation deductions
allocated to all of the Members.

 

4.6              
Allocation of Company Items. Except as otherwise provided herein, whenever a proportionate part of Net Income or
Net Loss is allocated from the Assets funded by each class of unit, and then to a class of unit and a Member within its respective
class, every item of income, gain, loss or deduction entering into the computation of such Net Income or Net Loss, and every item
of credit or tax preference related to such allocation and applicable to the period during which such Net Income or Net Loss was
realized shall be allocated to the Member in the same proportion. For purposes of this Section 4 and Section 5, an Economic
Interest Owner shall be treated as a Member.

 

 

 

    	 	4	 

     

    

 

4.7              
Assignment.

 

4.7.1         
Unless otherwise agreed to by the Managers, in the event of the assignment of an Interest pursuant to the terms of this
Agreement (or a change in a Member’s Percentage Interest), the Net Income and Net Loss shall be allocated as between the
Owner and such Owner’s assignee based upon the number of months of their respective ownership during the year in which the
assignment occurs, without regard to the results of the Company’s operations during the period before or after such assignment.
Distributions shall be made to the Owner or the assignee, whichever is the owner of the Interest, as of the date of the Distribution.
An assignee who receives an Interest during the first 15 days of a month will receive any allocations relative to such month. An
assignee who acquires an Interest on or after the 16th day of a month will be treated as acquiring the Interest on the
first day of the following month. Net Income and Net Loss from a sale or exchange of Property will be allocated between the Owner
and its assignee (or to reflect such change in Percentage Interest) as of the date of any such transaction.

 

4.8              
Power of Managers to Vary Allocations. It is the intent of the Members that each Member’s share of Net Income
and Net Loss be determined and allocated in accordance with Code Section 704(b) and the provisions of this Agreement shall
be so interpreted. Therefore, if the Company is advised that the allocations provided in this Section 4 are unlikely to be
respected for federal income tax purposes, the Managers are hereby granted the power to amend the allocation provisions of this
Agreement to the minimum extent necessary to comply with Code Section 704(b) and effect the plan of allocations and Distributions
provided for in this Agreement.

 

4.9              
Consent of Members. The allocation methods of Net Income and Net Loss are hereby expressly consented to by each Member
as a condition of becoming a Member.

 

4.10          
Withholding Obligations.

 

4.10.1     
If the Company is required (as determined by the Administrative Manager) to make a payment (“Tax Payment”) with
respect to any Member to discharge any legal obligation of the Company or the Managers to make payments to any governmental authority
with respect to any federal, foreign, state or local tax liability of such Member arising as a result of such Member’s interest
in the Company, then, notwithstanding any other provision of this Agreement to the contrary, the amount of any such Tax Payment
shall be deemed to be a loan by the Company to such Member, which loan shall bear interest at the Prime Rate and be payable upon
demand or by offset to any Distribution which otherwise would be made to such Member.

 

4.10.2     
If and to the extent the Company is required to make any Tax Payment with respect to any Member, or elects to make payment
on any loan described in Section 4.10.1 by offset to a Distribution to a Member, either (i) such Member’s proportionate
share of such Distribution shall be reduced by the amount of such Tax Payment or offset or (ii) such Member shall pay to the
Company prior to such Distribution an amount of cash equal to such Tax Payment or offset. In the event a portion of a Distribution
in kind is retained by the Company pursuant to clause (i) above, such retained Property may, in the discretion of the Administrative
Manager, either (A) be distributed to the other Members, or (B) be sold by the Company to generate the cash necessary
to satisfy such Tax Payment. If the Property is sold, then for purposes of income tax allocations only under this Agreement, any
gain or loss from such sale or exchange shall be allocated to the Member to whom the Tax Payment relates. If the Property is sold
at a gain, and the Company is required to make any Tax Payment on such gain, the Member to whom the gain is allocated shall pay
the Company prior to the due date of the Tax Payment an amount of cash equal to such Tax Payment.

 

4.10.3     
The Administrative Manager shall be entitled to hold back any Distribution to any Member to the extent the Administrative
Manager believes in good faith that a Tax Payment will be required with respect to such Member in the future and the Administrative
Manager believes that there will not be sufficient subsequent Distributions to make such Tax Payment.

 

 

 

    	 	5	 

     

    

 

5.                  
Distributions.

 

5.1              
Cash From Operations. Except as otherwise provided in Section 13, Cash From Operations with respect to each
calendar year shall be distributed to each class of unit from the Assets funded by that class of unit. No class of unit will receive
Distributions from the operations of any unit of Assets not funded or associated with that class of unit. Distributions within
each class of unit will be distributed to the Members of their respective class of unit in proportion to their Percentage Interests
within their class of unit.

 

5.2     
Restrictions. The Company intends to make periodic Distributions of substantially all cash determined by the Managers
to be distributable, subject to the following: (i) Distributions may be restricted or suspended for periods when the Managers
determine that it is in the best interest of the Company; and (ii) all Distributions are subject to the payment, and the maintenance
of reasonable reserves for payment of Company obligations.

 

6.                  
Compensation to the Managers and their Affiliates.

 

6.1              
Compensation. All compensation to be received by the Managers or their Affiliates from the Company or any subsidiary
thereof shall be approved by all of the Managers. Any agreements that the Company enters into with an Affiliate of the Managers
will be at arm’s length, market terms.

 

6.1.1         
Affiliates of the Managers may provide other services to the Company and shall be entitled to receive market fees and compensation
for such services as determined by the Managers.

 

6.2              
Company Expenses.

 

6.2.1         
Operating Expenses. Subject to the limitations set forth in Section 6.2.2, the Company shall pay directly, or
reimburse the Managers, as the case may be, for all of the costs and expenses of the Company’s operations.

 

6.2.2         
Overhead of Managers. The Managers and their Affiliates shall be reimbursed for the Managers’ or their Affiliate’s
overhead expenses attributable to the business of the Company.

 

7.                  
Authority and Responsibilities of the Managers.

 

7.1              
Management. Subject to the terms of this Agreement, the business and affairs of the Company shall be managed by the
Managers. Except as otherwise set forth in this Agreement, the Managers shall have full and complete authority, power and discretion
to manage and control the business, affairs and properties of the Company, to make all decisions regarding those matters and to
perform any and all other acts or activities customary or incident to the management of the Company’s business. The Managers
may delegate, in their sole discretion, any power and authority to officers of the Company.

 

7.2              
Number, Tenure and Qualifications. The Company shall have one Manager which shall be VVMC. The Manager shall hold
office until the Manager withdraws, resigns or is removed as set forth in this Agreement.

 

7.3              
Managers’ Authority. The Manager shall have all authority, rights and powers conferred by law (subject to Section 7.4
and Section 8.2) and those required or appropriate to the management of the Company’s business, which, by way of illustration
but not by way of limitation, shall include the right, authority and power to cause the Company, in its own capacity or in its
capacity as the manager, general partner or member of any subsidiary of the Company, to:

 

 

 

    	 	6	 

     

    

 

7.3.1         
Enter into any limited liability company agreement, partnership agreement, other operating agreement or any joint venture
directly or for any subsidiary;

 

7.3.2         
Take all actions as the manager, general partner, or member of any subsidiary;

 

7.3.3         
Acquire, hold, develop, lease, rent, operate, sell, exchange and otherwise dispose of Property;

 

7.3.4         
Plan, manage and coordinate the operation of the Business, obtain all necessary licenses, permits and entitlements in connection
therewith, and enter into any contracts and agreements with any Affiliates or third parties to perform any services in connection
with the Business;

 

7.3.5         
Place record title to, or the right to use, the Property in the name or names of a nominee or nominees for any purpose convenient
or beneficial to the Company;

 

7.3.6         
Borrow money, and, if security is required therefor, to pledge or mortgage or subject Property to any security device, to
obtain replacements of any mortgage or other security device and to prepay, in whole or in part, refinance, increase, modify, consolidate
or extend any mortgage or other security device. All of the foregoing shall be on such terms and in such amounts as the Managers,
in their sole discretion, deems to be beneficial;

 

7.3.7         
Provide guarantees with respect to any loan or preferred equity obtained by the Company;

 

7.3.8         
Enter into such contracts and agreements as the Managers determine to be reasonably necessary or appropriate in connection
with the Company’s business and purpose (including contracts with Affiliates of the Managers) and any contract of insurance
that the Managers deem necessary or appropriate for the protection of the Company, any subsidiary, the Managers and any officers,
including errors and omissions insurance, for the conservation of Company assets, or for any purpose convenient or beneficial to
the Company;

 

7.3.9         
Employ Persons, who may be Affiliates of the Managers, in the operation and management of the business of the Company or
any subsidiary;

 

7.3.10     
Prepare or cause to be prepared reports, statements and other relevant information for distribution to the Members;

 

7.3.11     
Open accounts and deposit and maintain funds in the name of the Company or any subsidiary in banks, savings and loan associations,
“money market” mutual funds and in such other entities or instruments as the Managers may deem in their discretion
to be necessary or desirable;

 

7.3.12     
Cause the Company to make or revoke any of the elections referred to in the Code (the Managers shall have no obligation
to make any such elections);

 

7.3.13     
Select as the Company’s accounting year a calendar or fiscal year as may be approved by the Internal Revenue Service
(the Company initially intends to adopt the calendar year);

 

7.3.14     
Determine the appropriate accounting method or methods to be used by the Company;

 

 

 

    	 	7	 

     

    

 

7.3.15     
In addition to any amendments otherwise authorized herein, amend this Agreement without any action on the part of the Members
by special or general power of attorney or otherwise:

 

(a)               
To add to the representations, duties, services or obligations of the Managers or its Affiliates, for the benefit of the
Members;

 

(b)               
To cure any ambiguity or mistake, to correct or supplement any provision herein that may be inconsistent with any other
provision herein, or to make any other provision with respect to matters or questions arising under this Agreement that will not
be inconsistent with the provisions of this Agreement;

 

(c)               
To amend this Agreement to reflect the addition or substitution of the Members or the reduction of Capital Accounts upon
the return of capital to the Members;

 

(d)               
To minimize the adverse impact of, or comply with, any final regulation of the United States Department of Labor, or other
federal agency having jurisdiction, defining “plan assets” for ERISA purposes;

 

(e)               
To reconstitute the Company under the laws of another state if beneficial;

 

(f)                
To execute, acknowledge and deliver any and all instruments to effectuate the foregoing, including the execution, acknowledgement
and delivery of any such instrument by the attorney-in-fact for the Managers under a special or limited power of attorney, and
to take all such actions in connection therewith as the Managers shall deem necessary or appropriate with the signature of the
Managers acting alone; and

 

(g)               
To make any changes to this Agreement as requested or required by any lender or potential lender which may be required to
obtain financing including, but not limited to, complying with any special purpose entity requirements;

 

7.3.16     
Structure or restructure the Company to accommodate any financing;

 

7.3.17     
Temporarily invest the proceeds from Cash From Operations in short-term, highly-liquid investments;

 

7.3.18     
Require in any Company or any subsidiary contract that the Managers shall not have any personal liability, but that the
Person contracting with the Company or any subsidiary is to look solely to the Company or any subsidiary and its respective assets
for satisfaction;

 

7.3.19     
Lease personal property for use by the Company or any subsidiary;

 

7.3.20     
Establish reserves from income in such amounts as the Managers may deem appropriate;

 

7.3.21     
Represent the Company and the Members as the “partnership representative” within the meaning of the Code in
discussions with the Internal Revenue Service regarding the tax treatment of items of Company income, loss, deduction or credit,
or any other matter reflected in the Company’s returns, and, if deemed in the best interest of the Members, to agree to final
Company administrative adjustments or file a petition for a readjustment of the Company items in question with the applicable court
and take any action permitted to the “partnership representative” pursuant to applicable law or regulation;

 

 

 

    	 	8	 

     

    

 

7.3.22     
Initiate legal actions, settle legal actions and defend legal actions on behalf of the Company;

 

7.3.23     
Merge or combine the Company or a subsidiary or “roll-up” the Company into a partnership, limited liability
company or other entity;

 

7.3.24     
Appoint officers of the Company as set forth in Section 7.11;

 

7.3.25     
Structure or restructure the Company to accommodate any financing;

 

7.3.26     
Perform any and all other acts which the Managers are obligated to perform hereunder or which the Company or a subsidiary
is obligated to perform as the manager, general partner or member of any subsidiary of the Company;

 

7.3.27     
Admit additional Members as set forth herein;

 

7.3.28     
Redeem or repurchase Membership Interests on behalf of the Company;

 

7.3.29     
Hold an election for a successor Manager before the resignation, expulsion or dissolution of a Manager; and

 

7.3.30     
Execute, acknowledge and deliver any and all instruments to effectuate the foregoing and take all such actions in connection
therewith as the Managers may deem necessary or appropriate. Any and all documents or instruments may be executed on behalf of
and in the name of the Company by the Managers or any officer of the Company designated by the Managers.

 

7.4              
Major Decisions. The Company may not take the following actions without the consent of all of the Managers (each
a “Major Decision”):

 

7.4.1         
Use or permit any other Person to use Company funds or assets in any manner except for the exclusive benefit of the Company;

 

7.4.2         
Alter the primary purpose of the Company;

 

7.4.3         
Receive from the Company a rebate or give-up or participate in any reciprocal business arrangements which would enable it
or any Affiliate to do so;

 

7.4.4         
Enter into any limited liability company agreement, partnership agreement, other operating agreement or joint venture directly
or for any subsidiary;

 

7.4.5         
Sell or transfer all or substantially all of the assets of the Company or the Business;

 

7.4.6         
Make any decisions regarding the acquisition, management, financing, leasing, operation or disposition of the Business;

 

7.4.7         
Make any decisions regarding the development of the Business or enter into any contracts or agreements relating thereto;

 

7.4.8         
Borrow or lend any sum of money, extend any credit or become a surety, guarantor, endorser or accommodation maker;

 

7.4.9         
Acquire any real estate;

 

 

 

    	 	9	 

     

    

 

7.4.10     
Merge, combine or “roll up” the Company with another entity;

 

7.4.11     
Do any act in contravention of this Agreement;

 

7.4.12     
Do any act that would make it impossible to carry on the ordinary business of the Company;

 

7.4.13     
Obtain insurance on behalf of the Company or any of its principals;

 

7.4.14     
Require any additional capital contributions by the Members;

 

7.4.15     
Select or vary accounting methods, file federal or state income tax returns or other income tax filings and make other decisions
with respect to treatment of items for accounting, financial reporting, or federal or state income tax purposes, or other matters
in connection therewith;

 

7.4.16     
Approve any proposed settlement with the Internal Revenue Service or other taxing authority regarding any Company matter;

 

7.4.17     
Distribute any Company assets in-kind;

 

7.4.18     
Confess any judgment against the Company;

 

7.4.19     
Structure or restructure the Company to accommodate any financing.

 

7.4.20     
Modify the terms of any subsidiary partnership or operating agreement; and

 

7.4.21     
Dissolve and wind up the Company as set forth in Section 13.1.2.

 

7.5              
Obligations of the Managers. Except as may be otherwise provided herein, the Managers shall be obligated to:

 

7.5.1         
Exercise their management powers in order to carry out the purposes of the Company on a commercially reasonable basis;

 

7.5.2         
Devote such of its time and business efforts to the business of the Company as it shall in its discretion, exercised in
good faith, determine to be necessary to conduct the business of the Company on a commercially reasonable basis;

 

7.5.3         
Keep all bank and other accounts and records in the name of the Company; and

 

7.5.4         
File and publish all certificates, statements, or other instruments required by law for the formation, qualification and
operation of the Company and for the conduct of its business in all appropriate jurisdictions.

 

 

 

    	 	10	 

     

    

 

7.6              
Administration of the Company.

 

7.6.1         
So long as they are Managers and the provisions of this Agreement for compensation
and reimbursement of expenses of the Managers are observed, the Managers shall have the responsibility of providing administrative
and executive support, advice, consultation, analysis and supervision with respect to the functions of the Company on a commercially
reasonable basis. In this regard, the Managers may retain the services of such Affiliates or unaffiliated parties as the Managers
may deem appropriate to provide management and financial consultation and advice, and may enter into agreements for the management
and operation of Company assets. 

 

7.6.2         
The Administrative Manager shall have the obligation to (i) manage the day to day operations of the Company and (ii) comply
with the obligations specifically allocated to the Administrative Manager in this Agreement.

 

7.7              
Indemnification of the Managers and the Officers.

 

7.7.1         
The Managers, their shareholders, Affiliates, officers, directors, partners, managers, members, employees, agents, assigns,
principals, trustees and any officers of the Company, shall not be liable for, and shall be indemnified and held harmless (to the
extent of the Company’s Property) from, any loss or damage incurred by them, the Company or the Members in connection with
the business of the Company, including costs and reasonable attorneys’ fees and any amounts expended in the settlement of
any claims of loss or damage resulting from any act or omission performed or omitted in good faith, which shall not constitute
fraud, gross negligence or willful misconduct, pursuant to the authority granted to promote the interests of the Company. Moreover,
neither the Managers nor any officer of the Company shall be liable to the Company or the Members because any taxing authorities
disallow or adjust any deductions or credits in the Company’s income tax returns.

 

7.7.2         
Neither the Managers nor any of their Affiliates shall have any obligation to cause the Company to take any action that
would result in personal liability to the Managers, their principals or any of their Affiliates in their capacity as obligator
or guarantor of any loan that is obtained or assumed by the Company or any subsidiary thereof, notwithstanding that the failure
to take any such action might result in the total or partial loss of the Company’s (or any subsidiary’s) interest in
some or all of the Company’s (or subsidiary’s) Property. Any action or inaction by the Managers or any of their Affiliates
that is intended to avoid personal liability under any obligation or guaranty related to a loan that is obtained or assumed by
the Company will not constitute a breach of any fiduciary or other duty that the Managers or their Affiliates may owe the Company
or the Members.

 

7.7.3         
The Members acknowledge that the Managers are also Members and it shall not be a breach
of any fiduciary duty or fiduciary obligation or any other duty or obligation if the Managers vote their Membership Interest in
its own best interest with respect to any vote of the Members.

 

7.8              
No Personal Liability for Return of Capital. The Managers shall not be personally liable or responsible for the return
or repayment of all or any portion of the Capital Contribution of any Member or any loan made by any Member to the Company, it
being expressly understood that any such return of capital or repayment of any loan shall be made solely from the assets (which
shall not include any right of contribution from any Member) of the Company.

 

7.9              
Authority as to Third Persons.

 

7.9.1         
No third party dealing with the Company shall be required to investigate the authority of the Managers or the officers of
the Company or secure the approval or confirmation by any Member of any act of the Managers or officers in connection with the
Company’s business. No purchaser of any Property owned by the Company shall be required to determine the right to sell or
the authority of the Managers or any officers to sign and deliver any instrument of transfer on behalf of the Company, or to see
to the application or distribution of revenues or proceeds paid or credited in connection therewith.

 

 

 

    	 	11	 

     

    

 

7.9.2         
The Managers and any officer designated by the Managers, shall have full authority to execute on behalf of the Company,
in its own capacity or in its capacity as the general partner, manager or member of any subsidiary, any and all agreements, contracts,
conveyances, deeds, mortgages and other instruments, and the execution thereof by the Managers or any officer designated by the
Managers, executing on behalf of the Company, in its own capacity or in its capacity as the general partner, manager or member
of any subsidiary, shall be the only execution necessary to bind the Company thereto. No signature of any Member shall be required.

 

7.10          
Insurance. The Company shall maintain insurance in the amounts determined by the Managers.

 

7.11          
Officers.

 

7.11.1     
Appointment of Officers. The Managers, in their sole discretion, may appoint officers of the Company at any time.
The officers of the Company, if appointed by the Managers, may include a president, chief executive officer, chief legal officer,
chief financial officer, chief accounting officer, chief investment officer, any number of vice presidents and a secretary. The
officers shall serve at the pleasure of the Managers. Any individual may hold any number of offices. The officers shall exercise
such powers and perform such duties as determined and authorized by the Managers.

 

7.11.2     
Removal, Resignation and Filling of Vacancy of Officers. Subject to the rights, if any, of an officer under a contract
of employment, any officer may be removed, either with or without cause, by the Managers at any time. Any officer may resign at
any time by giving written notice to the Managers. Any resignation shall take effect on the date of the receipt of that notice
or at any later time specified in that notice and, unless otherwise specified in that notice, the acceptance of the resignation
shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Company under any
contract to which the officer is a party. A vacancy in any office because of death, resignation, removal, disqualification or any
other cause shall be filled in the manner prescribed in this Agreement for regular appointments to that office.

 

7.11.3     
Salaries of Officers. Subject to the requirements set forth in this Agreement, the salaries and the compensation
of the officers of the Company shall be determined by the Managers.

 

7.11.4     
Signing Authority. Subject to any restrictions imposed by the Managers, and in accordance with the terms of this
Agreement, the chief executive officer, the president, the chief financial officer, the chief legal officer or the chief accounting
officer, acting alone, are authorized to sign and endorse checks, drafts, and other evidences of indebtedness made payable to the
order of the Company. Only the Managers shall be authorized to sign contracts and obligations on behalf of the Company; provided,
however, that the chief executive officer, the president, the chief financial officer, the chief legal officer or the chief accounting
officer shall have the authority to execute any contract that has been approved by written consent of the Managers.

 

8.                  
Rights, Authority and Voting of the Members.

 

8.1              
Members Are Not Agents. Pursuant to Section 7 the management of the Company is vested in the Managers. No Member,
acting solely in the capacity of a Member, is an agent of the Company nor can any Member in such capacity bind nor execute any
instrument on behalf of the Company.

 

8.2              
Voting by the Members. To the extent that holders of Units in the Company are provided with the right to vote hereunder
or as required under the Act, the Members shall be entitled to cast one vote for each Percentage
Interest attributable to their Membership Interest. Except as otherwise specifically provided in this Agreement, Members (but not
Economic Interest Owners) with the right to vote shall have the right to vote only upon the following matters:

 

8.2.1         
Election of a new Manager after the resignation of a Manager as set forth in this Agreement;

 

 

 

    	 	12	 

     

    

 

8.2.2         
Dissolution and winding up of the Company as set forth in Section 13.1.2;

 

8.2.3         
Amendment of this Agreement unless otherwise provided herein; or

 

8.2.4         
Any merger or combination of the Company or roll-up of the Company.

 

8.3              
Member Vote. Matters upon which the Members may vote shall require a Majority Vote and the consent of all of the
Managers to pass and become effective.

 

8.4              
Meetings of the Members. The Managers may at any time call for a meeting of the Members, or for a vote without a
meeting, on matters on which the Members are entitled to vote, and shall call for such a meeting (but not a vote without a meeting)
following receipt of a written request therefor of Members holding more than 10% of the Percentage Interests entitled to vote as
of the record date. Within 20 days after receipt of such request, the Managers shall notify all Members of record on the record
date of the Company meeting.

 

8.4.1         
Notice. Written notice of each meeting shall be given to each Member entitled to vote, either personally or by mail
or other means of written communication, charges prepaid, addressed to such Member at its address appearing on the books of the
Company or given by it to the Company for the purpose of notice or, if no such address appears or is given, at the principal executive
office of the Company. All such notices shall be sent not less than 10, nor more than 60, days before such meeting. The notice
shall specify the place, date and hour of the meeting and the general nature of business to be transacted, and no other business
shall be transacted at the meeting.

 

8.4.2         
Adjourned Meeting and Notice Thereof. When a Members’ meeting is adjourned to another time or place, notice
need not be given of the subsequent meeting if the time and place thereof are announced at the meeting at which the adjournment
is taken. At the subsequent meeting, the Company may transact any business which might have been transacted at the original meeting.
If the adjournment is for more than 45 days or if after the adjournment a new record date is fixed for the subsequent meeting,
a notice of the subsequent meeting shall be given to each Member of record entitled to vote at the meeting.

 

8.4.3         
Quorum. The presence in person or by proxy of the Persons entitled to vote a majority of the Membership Interests
shall constitute a quorum for the transaction of business. The Members present at a duly called or held meeting at which a quorum
is present may continue to transact business until adjournment notwithstanding the withdrawal of enough Members to leave less than
a quorum, if any action taken (other than adjournment) is approved by at least a Majority Vote or such greater vote as may be required
by this Agreement or by law. In the absence of a quorum, any meeting of Members may be adjourned from time to time by the vote
of a majority of the Membership Interests represented either in person or by proxy, but no other business may be transacted, except
as provided above.

 

8.4.4         
Consent of Absentees. The transactions of any meeting of Members, however called and noticed and wherever held, are
as valid as though they occurred at a meeting duly held after regular call and notice, if a quorum is present either in person
or by proxy, and if, either before or after the meeting, each of the Persons entitled to vote, not present in person or by proxy,
signs a written waiver of notice, or a consent to the holding of the meeting or an approval of the minutes thereof. All waivers,
consents and approvals shall be filed with the Company records or made a part of the minutes of the meeting.

 

8.4.5         
Action Without Meeting. Except as otherwise provided in this Agreement, any action which may be taken at any meeting
of the Members may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by the
Members having not less than the minimum number of votes that would be necessary to authorize or take that action at a meeting
at which all entitled to vote thereon were present and voted. In the event the Members are requested to consent on a matter without
a meeting, each Member shall be given not less than 10 nor more than 20 days’ notice. In the event the Members request a
meeting for the purpose of discussing or voting on the matter, the notice of a meeting shall be given in the same manner as required
by Section 8.4.1 and no action shall be taken until the meeting is held. Unless delayed as a result of the preceding sentence,
any action taken without a meeting will be effective immediately after the Members representing the minimum number of votes have
signed the consent.

 

 

 

    	 	13	 

     

    

 

8.4.6         
Record Dates. For purposes of determining the Members entitled to notice of any meeting or to vote or entitled to
receive any Distributions or to exercise any rights in respect of any other lawful matter, the Managers may fix in advance a record
date, which is not more than 60 nor less than 10 days prior to the date of the meeting nor more than 60 days prior to any other
action. If no record date is fixed:

 

(a)               
The record date for determining Members entitled to notice of or to vote at a meeting of Members shall be at the close of
business on the business day next preceding the day on which notice is given or, if notice is waived, at the close of business
on the business day next preceding the day on which the meeting is held;

 

(b)               
The record date for determining Members entitled to give consent to Company action in writing without a meeting shall be
the day on which the first written consent is given;

 

(c)               
The record date for determining Members for any other purpose shall be at the close of business on the day on which the
Managers adopt the resolution relating thereto, or the 60th day prior to the date of such other action, whichever is later; and

 

(d)               
A determination of Members of record entitled to notice of or to vote at a meeting of Members shall apply to any adjournment
of the meeting unless the Managers fix a new record date for the adjourned meeting, but the Managers shall fix a new record date
if the meeting is adjourned for more than 45 days from the date set for the original meeting.

 

8.4.7         
Proxies. Every Person entitled to vote or execute consents shall have the right to do so either in person or by one
or more agents authorized by a written proxy executed by such Person or its duly authorized agent and filed with the Managers.
No proxy shall be valid after the expiration of 11 months from the date thereof unless otherwise provided in the proxy. Every proxy
continues in full force and effect until revoked as specified or unless it states that it is irrevocable. A proxy which states
that it is irrevocable is irrevocable for the period specified therein.

 

8.4.8         
Chairman of Meeting. A Manager may select any Person to preside as chairman of any meeting of the Members, and if
such Person shall be absent from the meeting, or fail or be unable to preside, a Manager may name any other Person in substitution
therefor as chairman. The chairman of the meeting shall designate a secretary for such meeting, who shall take and keep or cause
to be taken and kept minutes of the proceedings thereof. The conduct of all Members’ meetings shall at all times be within
the discretion of the chairman of the meeting and shall be conducted under such rules as the chairman may prescribe. The chairman
shall have the right and power to adjourn any meeting at any time, without a vote of the Membership Interests present in person
or represented by proxy, if the chairman shall determine such action to be in the best interests of the Company.

 

8.4.9         
Record Date and Closing Company Books. When a record date is fixed, only Members of record on that date are entitled
to notice of and to vote at the meeting or to receive a Distribution, or allotment of rights, or to exercise the rights, as the
case may be, notwithstanding any transfer of any Membership Interests on the books of the Company after the record date.

 

8.4.10     
Meetings. No meeting of the Members shall be required.

 

8.5              
Rights of Members. No Owner shall have the right or power to: (i) withdraw or reduce its Capital Contribution,
except as a result of the dissolution and termination of the Company or as otherwise provided in this Agreement or by law; (ii) bring
an action for partition against the Company; or (iii) demand or receive property other than cash in return of its Capital
Contribution. Except as provided in this Agreement, no Owner shall have priority over any other Owner either as to the return of
Capital Contributions or as to allocations of the Net Income, Net Loss or Distributions of the Company. Other than upon the termination
and dissolution of the Company as provided by this Agreement, there has been no time agreed upon when the contribution of each
Owner is to be returned.

 

 

 

    	 	14	 

     

    

 

8.6              
Restrictions on the Owners. No Owner shall:

 

8.6.1         
Disclose to any non-Owner, other than their lawyers, accountants or consultants, and/or commercially exploit any of the
Company’s business practices, trade secrets or any other information not generally known to the business community, including
the identity of suppliers utilized by the Company;

 

8.6.2         
Do any other act or deed with the intention of harming the business operations of the Company;

 

8.6.3         
Do any act contrary to this Agreement; or

 

8.6.4         
Do any act which would make it impossible to carry on the intended purposes or ordinary business of the Company.

 

8.7              
Return of Capital. In accordance with the Act, an Owner may, under certain circumstances, be required to return to
the Company, for the benefit of the Company’s creditors, amounts previously distributed to the Owner. If any court of competent
jurisdiction holds that any Owner is obligated to make any such payment, such obligation shall be the obligation of such Owner
and not of the Company, the Managers or any other Owner.

 

8.8              
Indemnification of Members. The Company shall indemnify, protect, defend and hold harmless the Members, in their
capacity as Members (as opposed to the Managers which are indemnified pursuant to Section 7.7 in their capacity as the Managers),
and their shareholders, Affiliates, officers, directors, partners, managers, members, employees, agents and its and their respective
successors and assigns, from and against any loss, liability, damage, cost or expense (including legal fees and expenses incurred
in defense of any demands, claims or lawsuits) arising from actions or omissions concerning business or activities undertaken by
or on behalf of the Company from any source other than for the Member’s gross negligence, willful misconduct or fraud. The
Company shall advance to any Person entitled to indemnification pursuant to this Section 8.8 such funds as shall be required
to pay legal fees and expenses incurred in defense of any demands, claims or lawsuits as they become due. Notwithstanding the foregoing,
if the claim for indemnification is in connection with an action against the Company, or against another indemnified party by the
Person requesting the indemnification, the Company shall have no such obligation to advance any funds for the payment of legal
fees and expenses. In the event that there is a final, non-appealable determination by a court of competent jurisdiction that the
Member committed gross negligence, willful misconduct or fraud, such Member shall reimburse the Company for all costs and expenses
advanced pursuant to this Section 8.8. The obligations contained herein shall survive the termination or expiration of this Agreement
until such time as an action against the Members is absolutely barred by the statute of limitations.

 

9.                  
Resignation, Withdrawal or Removal of a Manager.

 

9.1              
Resignation or Withdrawal of Manager. A Manager may withdraw as a Manager at any time, in its sole discretion.

 

9.2              
Removal. A Manager may be removed as a manager by the Members with a Majority Vote. Members holding Class B Units
are entitled to one (1) vote per Class B Unit only in the matter of removing Manager.

 

9.3              
Purchase of Manager’s Interest. Upon a Manager withdrawing pursuant to Section 9.1, (i) the withdrawing
Manager’s and any Affiliated Member’s Interest in the Distributions and allocations of Net Income and Net Loss set
forth in this Agreement and (ii) its interest in its right to the earned but unpaid fees and other compensation remaining
to be paid under this Agreement, shall be purchased by the Company for a purchase price equal to the Fair Market Value of the Manager’s
and the Affiliated Member’s Interest determined according to the provisions of Section 9.4 plus any unpaid fees and
compensation. The purchase price of such Interest shall be paid by the Company to the Manager and any Affiliated Member in cash
within 30 days of the determination of the aggregate Fair Market Value.

 

 

 

    	 	15	 

     

    

 

9.4              
Fair Market Value. The Fair Market Value of a Manager’s Interest to be purchased by the Company pursuant to
Section 9.3 shall be determined by agreement between the Manager and the Company. If the Manager and the Company cannot agree
upon the Fair Market Value of such Company interest within 30 days, the Fair Market Value thereof shall be determined by appraisal,
the Company and the withdrawing Manager each to choose one appraiser and the two appraisers so chosen to choose a third appraiser.
The decision of a majority of the appraisers as to the Fair Market Value of such Company interest shall be final and binding and
may be enforced by legal proceedings. The withdrawing Manager and the Company shall each compensate the appraiser appointed by
it and the compensation of the third appraiser shall be borne equally by such parties.

 

10.              
Assignment of a Manager’s Interest.

 

10.1          
Permitted Assignments. A Manager may sell, assign, hypothecate, encumber or otherwise transfer all or any portion
of the Manager’s Interest in its sole discretion.

 

10.1.1     
Any assignment or transfer of a Manager’s Interest provided for by this Agreement can be an assignment or transfer
of all or any portion of the Manager’s Interest.

 

10.1.2     
Any transfer of all or a portion of a Manager’s Interest may be made only pursuant to the terms and conditions contained
in this Section 10.

 

10.1.3     
Any such assignment shall be by a written instrument of assignment, the terms of which are not in contravention of any of
the provisions of this Agreement, and which has been duly executed by the assignor of the Manager’s Interest.

 

10.2          
Substitute Manager. Any assignee of all of a Manager’s Interest in compliance with this Section 10 shall
automatically be substituted as a Manager.

 

10.3          
Transfer in Violation Not Recognized. Any assignment, sale, exchange or other transfer in contravention of the provisions
of this Section 10 shall be void and ineffectual and shall not bind or be recognized by the Company.

 

10.4          
Transfers to Affiliates. Notwithstanding the limitations set forth in this Section, a Manager may transfer its interest
without any restrictions and without application of Section 10 with respect to transfers to an Affiliate.

 

11.              
Member and Owner Transfers.

 

11.1          
Resignation or Withdrawal of a Member. Subject to this Section 11, a Member shall not resign or withdraw as
a Member, without the consent of the Managers.

 

11.2          
Permitted Assignments. No Owner may directly or indirectly sell, assign, hypothecate, encumber or otherwise transfer
all or any portion of its Interest without the written consent of the Managers in their sole discretion.

 

11.2.1     
Any assignment or transfer by an Owner of its Interest provided for by this Agreement can be an assignment or transfer of
all or any portion of its Interest.

 

11.2.2     
Any transfer of all or any portion of an Owner’s Interest may be made only pursuant to the terms and conditions contained
in this Section 11.

 

 

 

    	 	16	 

     

    

 

11.2.3     
Any such assignment shall be by a written instrument of assignment, the terms of which are not in contravention of any of
the provisions of this Agreement, and which has been duly executed by the assignor of such Interest and accepted by the Managers.

 

11.2.4     
All costs of the transfer, including reasonable attorneys’ fees (if any), shall be borne by the transferring Owner.

 

11.2.5     
The Company will limit transfers of Units to transfers of not more than 2% of the total Units per year other than transfers
for the following: (i) transfers as a result of death or incompetency, (ii) transfers between family members, (iii) other transfers
that qualify as “private transfers” as set forth in Treasury Regulations § 1.7704-1(e) or (iv) other transfers
that will not result in the Company being treated as a publicly traded partnership as set forth in the Treasury Regulations.

 

11.3          
Substituted Members. No assignee of an Interest shall have the right to become a Substituted Member unless the Managers
shall consent thereto and all of the following conditions are satisfied:

 

11.3.1     
A duly executed and acknowledged written instrument of assignment shall have been filed with the Company, which instrument
shall specify the Interest being assigned and set forth the intention of the assignor that the assignee succeed to the assignor’s
Interest as a Substituted Member in its place;

 

11.3.2     
The assignor and assignee shall have executed, acknowledged and delivered such other instruments as the Managers may deem
necessary or desirable to effect such substitution, which may include an opinion of counsel regarding the effect and legality of
any such proposed transfer, and which shall include the written acceptance and adoption by the assignee of the Membership Interest
of the provisions of this Agreement;

 

11.3.3     
The Managers shall have consented to admit the proposed assignee as a Substituted Member as set forth in this Section 11.3;
and

 

11.3.4     
The assignee shall have delivered to the Managers a signed acknowledgement of receipt of a copy of this Agreement.

 

11.4          
Loss of Rights. A Member shall cease to have the power to exercise any rights with respect to that portion of the
assigning Member’s Membership Interest that is assigned to a Substituted Member. In the event that the Member has assigned
all of the Member’s Membership Interest when the assignee becomes a Substituted Member, the assigning Member shall cease
to be a Member and shall cease to have the power to exercise any rights of a Member.

 

11.5          
Consent of Members. By executing or adopting this Agreement, each Member hereby consents to the admission of a Substituted
Member, and to any Economic Interest Owner becoming a Substituted Member upon the consent of the Managers in compliance with this
Agreement.

 

11.6          
Transfer in Violation Not Recognized. Any assignment, sale, transfer, exchange or other disposition in contravention
of the provisions of this Section 11 shall be void and ineffectual and shall not bind or be recognized by the Company. Upon
the transfer of a Member’s Membership Interest in violation of this Agreement, the Membership Interest of a Member shall
be converted to an Economic Interest.

 

11.7          
Rights of Economic Interest Owner. An Economic Interest Owner shall be entitled to receive Distributions from the
Company attributable to the Interest acquired by reason of such assignment from and after the effective date of the assignment;
provided, however, that notwithstanding anything herein to the contrary, the Company shall be entitled to treat the assignor of
such Interest as the absolute owner thereof in all respects, and shall incur no liability for allocations of Net Income and Net
Loss or Distributions, or for the transmittal of reports or other information until the written instrument of assignment has been
received by the Company and recorded on its books. The effective date of such assignment shall be the date on which all of the
requirements of this Section have been complied with, subject to Section 4.7.

 

 

 

    	 	17	 

     

    

 

11.8          
Right to Inspect Books. Economic Interest Owners shall have no right to inspect the Company’s books or records,
to vote on Company matters based on the voting rights attributable to the their class of unit, or to exercise any other right or
privilege as Members, until they are admitted to the Company as Substituted Members except as required by the Act.

 

11.9          
Transfer Subject to Law. No assignment, sale, transfer, exchange or other disposition of any Membership Interest
may be made except in compliance with the applicable governmental laws and regulations, including state and federal securities
laws.

 

11.10       
Right of First Refusal. This Section 11.10 is applicable whenever a Member desires to sell, assign, or otherwise
transfer any part or all of its Membership Interest:

 

11.10.1 
If the Member desires to transfer all or a portion of its Interest, the Member shall give the Company written notice of
such proposed transfer (the “Transfer Notice”) and offer to sell such Interest to the Company or non-transferring Members.
The price of the Interest shall be the price at which such Interest is intended to be transferred by the Member to a third party
in a bona fide transaction. The Transfer Notice shall set forth the intended terms, conditions, price and the name and address
of such third party.

 

11.10.2 
The Company or non-transferring Members shall have the option for a period of 10 business days from the date of receipt
of such written offer (the “Offer Period”) to accept such offer, and 2 months from the date of the receipt of such
written offer to purchase the Interest (the “Option Period”) on the terms and conditions set forth therein.

 

11.10.3 
If the offer has not been accepted in writing prior to the expiration of the Offer Period, or, if so accepted in writing,
the closing of the purchase of the Interest by the Company or non-transferring Members is done so by delivering such written acceptance,
but if the applicable Interest has not been purchased, the Member shall have the right for a period of 180 days following the end
of the Offer Period (where no acceptance has been delivered by the Company) or the Option Period (where acceptance of the offer
has been delivered but the applicable Interest has not been purchased on or prior to the expiration of the Option Period), as applicable,
to dispose of all (but not less than all) of such Interest in accordance with the terms set forth in the Transfer Notice.

 

11.11       
Repurchase Upon Violation of this Agreement. In the event a Member assigns all or a portion of its Membership Interest
without approval of the Managers or in violation of this Agreement, the Company may, at its option exercised within 60 days following
receipt of notice of such assignment from the Member or at any time if such information is obtained from any other Person, purchase
from such Member, and the Member shall transfer to the Company for the consideration of $100, all of the Member’s remaining
rights in the Company other than its Economic Interest. Each Member acknowledges and agrees that the right of the Company to purchase
such remaining rights and interest from a Member who transfers a Membership Interest in violation of Section 11 is not unreasonable
under the circumstances existing as of the date hereof. No such purchase by the Company of the remaining rights and interest of
the Member shall operate to make a Member’s assignee a Substituted Member. Upon exercise of the Company’s repurchase
rights under this Section 11.11, the Company shall have the right to purchase from the assignee the Economic Interest purchased
from the Member at the same price and terms paid by the assignee.

 

11.12       
Exit Opportunities. Sale of Metals Concentrate: Management intends to sell the metals concentrate to a buyer and
upon the close of the sale shall use proceeds to redeem the units from the investors at a anticipated twelve and a half percent
(12.5%) return. Sale of the Company: The Manager will have the right, in its sole discretion, to cause the Company to sell the
interests in the Company. In the event that the Company provisions are revised the Company may sell the business.

 

 

 

    	 	18	 

     

    

 

11.13       
Specific Performance. It is agreed that the rights granted to the parties in this Section 11 are of a special
and unique kind and character and if there is a breach by any Member of any material provision in this Section, the other Member
would not have adequate remedy at law. It is expressly agreed, therefore, that the provisions in this Section and the rights of
the Members thereunder may be enforced by an action for specific performance and such other equitable relief as is provided for
under the laws of the State of Nevada, and that any such action may only be brought in a court of competent jurisdiction in the
State of Nevada.

 

12.              
Option to Purchase Units Upon Specified Events

 

12.1          
Option to Purchase. Upon the occurrence of any of the following
events (each referred to hereinafter as an “Option Event”)
affecting a Member (the “Affected Member”), the Company
and then the other Members shall have the option to purchase the number of Units of the Affected Member as described in Section
9.2, for the price and on the terms set forth in Sections 12.3
and 12.4; provided, however, that no Option Event
shall be deemed to occur (and this Section 12 shall not apply)
if the Manager consents to any assignment or transfer (or potential assignment or transfer) resulting from an event described below
(which consent may not be unreasonably withheld) as if such assignment or transfer were made by the Affected Member pursuant to
Section 11: (a)
The maintenance of any proceeding initiated by or against a Member under any bankruptcy or debtors’ relief law
of the United States or of any other jurisdiction, which proceeding is not terminated within ninety (90) days after its commencement;
(b) A general assignment for the benefit of the creditors
of a Member; (c) A levy upon the Units of a Member pursuant
to a writ of execution or subject to the authority of any governmental entity, which levy is not removed within thirty (30) days,
and only to the extent of the Units subject to such levy; (d) The
entry of a Final Judgment of Dissolution of Marriage of a Member if in connection with such dissolution the spouse of such Member
is awarded Units or any interest therein as a result of a property settlement agreement or otherwise, but in such event such option
to purchase shall extend only to such spouse’s Units or interest therein. In such event, the Units of such spouse or such
spouse’s interest therein shall be deemed to be the “Units
of the Affected Member” for the purposes of this Agreement; (e)
With respect to Units transferred by a Member pursuant to Section
11, the loss of sole voting control over such Units by the transferring Member or such Units becoming no longer subject
to such trust, unless such Units are returned to the original transferor thereof. In such event, the Units so transferred shall
be deemed to be the “Units of the Affected Member” for
the purposes of this Agreement; (f) The death of a Member
(the “Deceased Member”) or upon the death of
any spouse of a Member who has acquired any interest in such Member’s Units subject to such spouse’s disposition by
will or otherwise at such spouse’s death if such spouse’s death occurs before such Member’s death (the “Deceased
Spouse”); provided, however, that the prior death of a spouse of a Member shall not give rise to an option
to purchase such Deceased Spouse’s interest in a Member’s Units by the Company or the other Members if, as a result
of such spouse’s death, such spouse’s Units or interest therein pass or will pass by will or otherwise to the Member
outright or to a trust pursuant to which the Member has sole voting control of such Units; provided further that, at such
time that the Member ceases to have sole voting control over Units or over any interest therein transferred to trust or the Units
or interest therein are distributed free of trust to other than such Member, the cessation of such voting control or distribution
free of trust shall give rise at such time to an option to purchase such Units or interest therein as though the Deceased Spouse
had then died without leaving the Deceased Spouse’s Units to the Member or to a trust over which such Member has sole voting
control of such Units or interest therein. In the event of the prior death of a spouse of a Member, such spouse and the interest
of such spouse in Units of the Member shall be deemed to be the “Affected
Member” and the “Units of the Affected Member,”
respectively, for the purposes of this Agreement. Notwithstanding anything to the contrary hereinabove, if the Deceased
Spouse of a Member leaves such Deceased Spouse’s interest in such Member’s Units in a manner that would otherwise give
rise to an option to purchase such interest by the Company and/or the remaining Members, then such Member shall have the first
option to purchase any such interest of his or her Deceased Spouse for the price and on the terms specified in Sections
12.4 and 12.5.

 

 

 

 

 

 

 

 

 

 

 

    	 	19	 

     

    

 

12.2          
Exercise of Option. The Affected Member or the Affected
Member’s legal representative shall give written notice to the Company and the non-transferring Members immediately upon
the occurrence of an Option Event and in no event more than ten (10) days after the occurrence of such Option Event or the appointment
of a legal representative for such Affected Member, whichever occurs last. Upon receipt of written notice of the occurrence of
an Option Event and for a period of thirty (30) days thereafter, the Company shall have the first option to purchase all or any
portion of the Units of the Affected Member subject to repurchase pursuant to Section
12.1, provided that, in the event of the dissolution of the marriage of a Member, or on the occurrence of an
Option Event within the meaning of Section 12.1(e) or (f),
the divorced, transferring or widowed Member, as the case may be, shall have during the first fifteen (15) days of such thirty
(30) day period a concurrent but priority right to purchase the Units or interest therein that have been awarded to such Member’s
spouse as a result of the dissolution of such Member’s marriage or with respect to which such Member was the transferring
Member under Section 11, or which are not distributed to
such Member outright or to a trust over which such Member has sole voting control. In the event that the Company and, in any situation
where a divorced, transferring or widowed Member has a concurrent but priority option to purchase, such Member does not elect to
purchase all of the Units within such thirty (30) day period, the Company shall forthwith notify the non-transferring Members of
the election not to purchase all or a portion of the Affected Member’s Units, and such non-transferring Members shall then
have the option for a period of fifteen (15) days from the receipt of such notice to purchase the Units of the Affected Member
not purchased by the Company and/or the divorced, transferring or widowed Member (the “Remaining
Units of the Affected Member”). Within fifteen (15) days after the receipt of such notice, if the non-transferring
Members desire to acquire all or any portion of the Remaining Units of the Affected Member (the “Purchasing
Members”), then the Purchasing Members shall deliver to the Secretary (or to the Company in the event that there
is no Secretary) a written election to purchase such Remaining Units of the Affected Member or a specified number thereof. Except
upon the occurrence of the death of a Deceased Member or Deceased Spouse, as hereinabove defined, the option set forth in this
Section 12 may not be exercised unless the Company and/or
the Purchasing Members purchase all of the Units of the Affected Member. Subject to the foregoing, each non-transferring Member
shall have the right to elect to purchase all or any portion of such non-transferring Member’s pro rata share of the
Remaining Units of the Affected Member (with any reallotment as provided below in this Agreement). Each such non-transferring Member’s
pro rata share of the Remaining Units of the Affected Member shall be a fraction of the Remaining Units of the Affected
Member, of which the number of Units owned by such non-transferring Member on the date of the Option Event shall be the numerator,
and the total number of Units owned by all of the nontransferring Members on the date of the Option Event shall be the denominator.
Each non-transferring Member shall have a right of reallotment such that, if any other non-transferring Member fails to exercise
the right to purchase such non-transferring Member’s full pro rata share of the Remaining Units of the Affected Member,
then the participating non-transferring Members may exercise an additional right to purchase, on a pro rata basis, the Remaining
Units of the Affected Member not previously purchased.

 

12.3          
Notice of Exercise of Option. If the Company and/or
the non-transferring Members elect to purchase all of the Units of the Affected Member, then the Company shall give notice of such
election, setting forth the number of such Units to be purchased by each party, by giving written notice of such election to the
Affected Member and, if applicable, the Affected Member’s receiver or trustee in bankruptcy, the creditor who secured a levy
upon the Affected Member’s assets and the Affected Member’s legal representative, spouse or other transferee, as the
case may be. Such notice shall be given within thirty (30) days after the Company’s receipt of notice of the Option Event
giving rise to the option to purchase in the event that the Company elects to purchase all of the Affected Member’s Units,
or within fifteen (15) days after the non-transferring Members have received notice of the Company’s election not to purchase
all of such Units in the event that all or a portion of such Units are to be purchased by the non-transferring Members.

 

12.4          
9.4 Purchase Price for Units. (a) Purchase Price. The
purchase price to be paid by the Company and/or the Purchasing Members upon the exercise of any option to purchase Units under
Section 12.3 (the “Purchase
Price”) shall be the fair market value of the Units. (b)
Fair Market Value. The Affected Member or the legal representative of an Affected Member or Deceased Member or Deceased
Spouse, as one party, and the Company, as another party, shall attempt to agree upon the fair market value of the Units. If such
parties are unable to agree upon the fair market value of the Units within thirty (30) days following the notice of the exercise
of the option pursuant to Section 12.3, then the value per
Unit of the Units shall be determined by an independent appraiser experienced in appraising closely held businesses selected by
the mutual agreement of such parties. If such parties are unable to agree upon a mutually acceptable appraiser within forty-five
(45) days following the notice of exercise of the option pursuant to Section
12.3, then the fair market value shall be determined by the Company’s independent certified public accountant.
In performing such valuation, the appraiser or accountant, as the case may be, shall consider such methods of valuation as are
customary and appropriate in the discretion of such appraiser or accountant. (c)
Binding Effect. The value determined pursuant to this Section
12.4 shall be binding on the parties to this Agreement, their legal representatives and their successors in interest
for purposes of purchases and sales made pursuant to Section 12.3.

 

 

 

    	 	20	 

     

    

 

12.5          
Payment of Purchase Price. (a) Form of Payment. The
Company and/or the Purchasing Members shall execute and deliver a negotiable promissory note (the “Note(s)”)
representing the purchase price of that portion of the Units of the Affected Member or Deceased Member or Deceased Spouse to be
purchased by him, her or it no later than thirty (30) days following (i) the giving of notice pursuant to Section
12.3 containing the election of the Company and/or the Purchasing Members to purchase the Units of the Affected Member;
(ii) the appointment of a legal representative for a Deceased Member or Deceased Spouse; or (iii) if applicable, receipt of the
decision of the appraiser or independent certified public accountant as to the value of the Units of the Affected Member or Deceased
Member or Deceased Spouse under Section 12.4, whichever
is later. (b) Terms of Note(s). The Note(s) shall be fully
amortized over a period of not more than forty-eight (48) months and shall bear interest from the date of delivery at a rate equal
to nine percent (9%) per annum or the maximum lawful rate, whichever is less. Anything herein to the contrary notwithstanding,
in no event shall the interest rate exceed the maximum rate permitted by law. Principal and interest on the Note(s) shall be payable
in equal quarterly installments commencing three (3) months after the Option Event date or ten (10) days after the date specified
in Section 12.5(a) for delivery of the Note(s), whichever
occurs later, and ending no later than forty-eight (48) months after the Option Event date, provided that the Note(s) shall
be subject to prepayment, in whole or in part, without penalty, at any time after the calendar year of the sale of the Units of
the Affected Member or Deceased Member or Deceased Spouse. All prepaid sums shall be applied against the installments thereafter
falling due in inverse order of their maturity or against all the remaining installments equally, at the option of the payee. The
Note(s) shall provide that, in any case of default, at the election of the holder the entire sum of principal and interest shall
immediately be due and payable and that the maker shall pay reasonable attorneys’ fees to the holder in the event that suit
is commenced because of default. Any promissory note executed by the Company and/or the Purchasing Members pursuant to this Section
12.5 shall be secured by a pledge of the Units so purchased. The pledgeholder shall be such person as the parties shall
mutually agree upon, and the pledge agreement shall contain such other terms and provisions as may be customary and reasonable.
As long as no default occurs in payment on the Note(s), the purchasers (other than the Company) shall be entitled to vote the Units
(provided that the Units are Class A Units); however, Distributable Cash shall be paid to the holder of the Note(s) as a prepayment
of principal. The Company and/or the Purchasing Members shall expressly waive demand, notice of default and notice of sale and
shall consent to public or private sale of the Units in the event of default, in mass or in lots at the option of the pledgeholder,
and the holder of the Note(s) shall have the right to purchase at the sale.

 

12.6          
Agreement to Transfer. Each Member agrees that, upon
receipt of the Note(s) in connection with the purchase of such Member’s Units pursuant to Sections
12.3 and 12.5, such Member or such Member’s
legal representative shall execute and deliver all documents that are required to transfer the Units to the Company and/or the
Purchasing Members. If such Member or such Member’s legal representative refuses to do so, then the Company nevertheless
shall enter the transfer on its Member records and hold such consideration available for the Member or such Member’s legal
representative, and thereafter all voting rights of such Units shall be exercised by the designated transferees of such Units under
this Agreement.

 

13.              
Books, Records, Accounting and Reports.

 

13.1          
Records. The Company shall maintain at its principal office the Company’s records and accounts of all operations
and expenditures of the Company including the following:

 

13.1.1     
A current list of the name and last known business, residence or mailing address of each Owner and Managers;

 

13.1.2     
A copy of the Certificate of Formation and all amendments thereto, together with any powers of attorney pursuant to which
the Certificate of Formation or any amendments thereto were executed;

 

13.1.3     
Copies of the Company’s federal, state and local income tax or information returns and reports, if any, for the 6
most recent fiscal years;

 

 

 

    	 	21	 

     

    

 

13.1.4     
Copies of this Agreement and any amendments thereto together with any powers of attorney pursuant to which any written accounting
or any amendments thereto were executed;

 

13.1.5     
Copies of any financial statements of the Company, if any, for the 6 most recent years; and

 

13.1.6     
The Company’s books and records as they relate to the internal affairs of the Company for at least the current and
past 4 fiscal years.

 

13.2          
Delivery to Members and Inspection. Each Member, or its representative designated in writing, has the right, upon
reasonable written request for the purposes related to the interest of that Person as a Member, which purposes shall be set forth
in the written request, to receive from the Company:

 

13.2.1     
True and full information regarding the status of the business and financial condition of the Company;

 

13.2.2     
Promptly after becoming available, a copy of the Company’s federal, state and local income tax returns for each year;

 

13.2.3     
A current list of the name and last known business, residence or mailing address of each Manager;

 

13.2.4     
A copy of this Agreement and the Certificate of Formation and all amendments thereto, together with executed copies of any
written powers of attorney pursuant to which this Agreement and the Certificate of Formation and all amendments thereto have been
executed; and

 

13.2.5     
True and full information regarding the amount of cash and a description and statement of the agreed value of any property
or services contributed by each Owner and which each Owner has agreed to contribute in the future, and the date on which each became
an Owner.

 

13.3          
Reports. The Administrative Manager will cause the Company, at the Company’s expense, to prepare an annual
report on the operations of the Company containing a year-end balance sheet and income statement.

 

13.4          
Tax Information. The Administrative Manager, at the Company’s expense, shall cause the income tax returns for
the Company to be prepared and timely filed with the appropriate authorities. The Company shall send to each Member within 90 days
after the end of each taxable year such information as is necessary to complete federal and state income tax or information returns,
and a copy of the Company’s federal, state, and local income tax or information returns for that year; provided, however,
that this time may be extended by the Administrative Manager in its sole discretion.

 

13.5          
Limitations. Notwithstanding Section 12.2, the Managers, in their sole discretion, may restrict receipt of the
information identified in Section 12.2, if the Managers reasonably believe that disclosure of such information is not in the
best interest of the Company or could damage the Company or its business.

 

13.6          
Partnership Audit Rules.

 

13.6.1     
The Administrative Manager shall be the “partnership representative” for purposes of Code Sections 6223 and
6231, as amended by Section 1101 of the Bipartisan Budget Act of 2015, and shall, at the Company’s expense, cause to be prepared
and timely filed after the end of each taxable year of the Company all federal and state income tax returns required of the Company
for such taxable year. If any state or local tax law provides for a partnership representative or Person having similar rights,
powers, authority or obligations, the Administrative Manager shall also serve in such capacity. The Company shall make such elections
pursuant to the provisions of the Code as the Administrative Manager, in its sole discretion, deems appropriate (including, in
the Administrative Manager’s sole discretion, an election under Code Section 754 or an election to have the Company treated
as an “electing investment partnership” for purposes of Code Section 743).

 

 

 

    	 	22	 

     

    

 

13.6.2     
If any audit adjustment results in an underpayment of tax that is imputed to the Company and would be assessed and collected
at the Company level in the period that the adjustment becomes final, the Company may, in the sole discretion of the Administrative
Manager, elect:

 

(a)               
to pay an imputed underpayment as calculated under Code Section 6225(b) with respect to such adjustment, including interest,
penalties and related tax (“Imputed Underpayment”) in the Adjustment Year or otherwise take the Internal Revenue Service
adjustment into account in the Adjustment Year. The Administrative Manager shall use commercially reasonable efforts to reduce
the amount of such Imputed Underpayment on account of the tax-exempt status (as defined in Code Section 168(h)(2)) of any Members
as provided in Code Section 6225(c)(3). Each Member agrees to indemnify and hold harmless the Company and the Administrative Manager
from and against any liability with respect to the Member’s (or former Member’s) proportionate share of any Imputed
Underpayment, regardless of whether such Member is a Member in the Adjustment Year, and to promptly pay its proportionate share
of any Imputed Underpayment to the Company within 15 days following the Administrative Manager’s request for payment and
any amount that is not funded shall be treated as a Tax Payment under Section 4.10.1. Each Member’s (or former Member’s)
proportionate share shall be determined by the Administrative Manager in good faith taking into account each Member’s (or
former Member’s) particular status, including its tax-exempt or non-United States status, its interest in the Company in
the Reviewed Year, and its timely provision of information necessary to reduce the amount of Imputed Underpayment set forth in
Code Section 6225(c); or

 

(b)               
under Code Section 6226(a), as amended by the Bipartisan Act of 2015, to cause the Company to issue adjusted Schedule K-1s
or any other similar statement prescribed by the Code, Treasury Regulations or other administrative guidance published by the Internal
Revenue Service or other taxing authority to each applicable Member for the Reviewed Year, who will then be required to pay its
allocable share of tax otherwise attributable to the Company. Each Member hereby agrees and consents to such election and agrees
to take any action, and furnish the Administrative Manager with any information necessary to give effect to such election, as required
by such Code Section and applicable Treasury Regulations or other administrative guidance published by the Internal Revenue Service
or other taxing authority.

 

14.              
Termination and Dissolution of the Company.

 

14.1          
Termination of the Company. The Company shall be dissolved, shall terminate and its assets shall be disposed of,
and its affairs wound up upon the earliest to occur of the following:

 

14.1.1     
Upon the happening of any event of dissolution specified in the Certificate of Formation;

 

14.1.2     
A determination by the Managers to terminate the Company;

 

14.1.3     
Upon the entry of a decree of judicial dissolution; or

 

14.1.4     
The expiration of the term of the Company.

 

14.2          
Certificate of Cancellation. As soon as possible following the occurrence of any of the events specified in Section 13.1,
a Manager who has not wrongfully dissolved the Company or, if none, the Members shall execute a Certificate of Cancellation
in such form as shall be required by the Act.

 

 

 

    	 	23	 

     

    

 

14.3          
Liquidation of Assets. Upon a dissolution and termination of the Company, the Managers (or in case there is no Manager,
the Members or Person designated by the Members pursuant to a Majority Vote) shall take full account of the Company assets and
liabilities, shall liquidate the assets as promptly as is consistent with obtaining the fair market value thereof, and shall apply
and distribute the proceeds therefrom in the following order:

 

14.3.1     
To the payment of creditors of the Company, including Members who are creditors to the extent permitted by law, but excluding
secured creditors whose obligations will be assumed or otherwise transferred on the liquidation of Company assets;

 

14.3.2     
To the setting up of any reserves as required by law for any liabilities or obligations of the Company; provided, however,
that said reserves shall be deposited with a bank or trust company in escrow at interest for the purpose of disbursing such reserves
for the payment of any of the aforementioned contingencies and, at the expiration of a reasonable period, for the purpose of distributing
the balance remaining in accordance with the remaining provisions of this Section 13.3; and

 

14.3.3     
To the Owners as set forth in Section 5.1.

 

14.4          
Distributions Upon Dissolution. Each Member shall look solely to the assets of the Company for all Distributions
of its Capital Contributions, and shall have no recourse therefor (upon dissolution or otherwise) against the Managers or any Member.
No Member shall be required to restore any deficit in the Member’s Capital Account.

 

14.5          
Liquidation of Member’s Interest. If there is a Liquidation of a Member’s Interest or a Manager’s
Interest in the Company, any liquidating Distribution pursuant to such Liquidation shall be made only to the extent of the positive
Capital Account balance, if any, of such Member or Manager for the taxable year during which such Liquidation occurs after proper
adjustments for allocations and Distributions for such taxable year up to the time of Liquidation. Such Distributions shall be
made by the end of the taxable year of the Company during which such Liquidation occurs, or if later, within 90 days after such
Liquidation.

 

15.              
Special and Limited Power of Attorney and Amendments.

 

15.1          
Power of Attorney. The Managers shall at all times during the term of the Company have a special and limited power
of attorney as the attorney-in-fact for each Member, with power and authority to act in the name and on behalf of each such Member
to execute, acknowledge, and swear to in the execution, acknowledgment and filing of documents which are not inconsistent with
the provisions of this Agreement and which may include, by way of illustration but not by limitation, the following:

 

15.1.1     
This Agreement, as well as any amendments to the foregoing which, under the laws of the State of Nevada or the laws of any
other state, are required to be filed or which the Managers shall deem it advisable to file;

 

15.1.2     
Any other instrument or document that may be required to be filed by the Company under the laws of any state or by any governmental
agency or which the Managers shall deem it advisable to file;

 

15.1.3     
Any instrument or document that may be required to affect the continuation of the Company, the admission of Substituted
Members, or the dissolution and termination of the Company (provided such continuation, admission or dissolution and termination
are in accordance with the terms of this Agreement);

 

 

 

    	 	24	 

     

    

 

15.1.4     
Any contract for purchase or sale of real estate, and any deed, deed of trust, mortgage, or other instrument of conveyance
or encumbrance, with respect to Property;

 

15.1.5     
Any and all other instruments as the Managers may deem necessary or desirable to affect the purposes of this Agreement and
carry out fully its provisions, including, but not limited to, those in Section 14.4; and

 

15.1.6     
Any document, including assignments or other documents transferring title to an Owner’s Interest to a purchaser, required
to be executed to complete a Transfer, as set forth in Section 11.14.

 

15.2          
Provision of Power of Attorney. The special and limited power of attorney of the Managers:

 

15.2.1     
Is a special power of attorney coupled with the interest of the Managers in the Company, and its assets, is irrevocable,
shall survive the death, incapacity, termination or dissolution of the granting Member, and is limited to those matters herein
set forth;

 

15.2.2     
May be exercised by the Managers by and through one or more of the officers of the Managers for each of the Members by the
signature of the Managers acting as attorney-in-fact for all of the Members, together with a list of all Members executing such
instrument by their attorney-in-fact or by such other method as may be required or requested in connection with the recording or
filing of any instrument or other document so executed; and

 

15.2.3     
Shall survive an assignment by a Member of all or any portion of his Membership Interests except that, where the assignee
of the Membership Interests owned by the Member has been approved by the Managers for admission to the Company as a Substituted
Member, the special power of attorney shall survive such assignment for the sole purpose of enabling the Managers to execute, acknowledge
and file any instrument or document necessary to effect such substitution.

 

15.3          
Notice to Members. The Managers shall promptly furnish to a Member a copy of any amendment to this Agreement executed
by the Managers pursuant to a power of attorney from the Member.

 

15.4          
Amendment of Agreement.

 

15.4.1     
Admission of Member. Amendments to this Agreement for the admission of any Member or Substituted Member shall not,
if in accordance with the terms of this Agreement, require the consent of any Member.

 

15.4.2     
Amendments with Consent of Member. In addition to any amendments otherwise authorized herein, this Agreement may
be amended by the Managers with a Majority Vote.

 

 

 

    	 	25	 

     

    

 

15.4.3     
Amendments Without Consent of the Members. In addition to the amendments authorized pursuant to Section 4.8
and Section 7.3.15 or otherwise authorized herein, the Managers may amend this Agreement, without the consent of any of the Members,
(i) modify the allocation provisions of the Operating Agreement to comply with Code Section 704(b), (ii) add to
the representations, duties, services or obligations of the Manager or any Affiliates for the benefit of the Members, (iii) cure
any ambiguity or mistake, correct or supplement any provision in the Operating Agreement that may be inconsistent with any other
provision, or make any other provision with respect to matters or questions arising under the Operating Agreement that will not
be inconsistent with the provisions of the Operating Agreement, (iv) amend the Operating Agreement to reflect the addition
or substitution of Members or the reduction of the Capital Accounts upon the return of capital to the Members, (v) minimize
the adverse impact of, or comply with, any “plan assets” for ERISA purposes, (vi) reconstitute the Company under
the laws of another state if beneficial to the Company, (vii) execute, acknowledge and deliver any and all instruments to
effectuate the foregoing, including the execution, acknowledgment and delivery of any such instrument by the attorney-in-fact for
the Manager under a special or limited power of attorney and to take all such actions in connection therewith as the Manager deems
necessary or appropriate with the signature of the Manager acting alone, (viii)  make any changes to the Operating Agreement
required by a lender, (ix) change the name and/or principal place of business of the Company, (x) decrease the rights
and powers of the Manager (so long as such decrease does not impair the ability of the Manager to manage the Company and conduct
its business affairs). No amendment will be adopted pursuant to (ix) or (x) above without the consent of the Members
unless the adoption thereof (a) is for the benefit of and not adverse to the interests of the Members and (b) does not
affect the limited liability of the Members.

 

15.4.4     
Execution and Recording of Amendments. Any amendment to this Agreement shall be executed by the Managers, and by
the Managers as attorney-in-fact for the Members pursuant to the power of attorney contained in Section 14.1. After the execution
of such amendment, the Managers shall also prepare and record or file any certificate or other document which may be required to
be recorded or filed with respect to such amendment, either under the Act or under the laws of any other jurisdiction in which
the Company holds any Property or otherwise does business.

 

15.4.5     
Prohibitions. The Operating Agreement provides that the Manager may not, without a Majority Vote, receive any rebate
or give-up in connection with the operation of the Company, nor may the Manager participate in any reciprocal business arrangements
that would enable the Manager or its Affiliates to do so. Neither the Manager nor any Affiliates, without a Majority Vote, will
directly or indirectly pay or award any finder’s fees, commissions or other compensation to any person engaged by a potential
investor for investment advice as an inducement to such advisor to advise the purchase of an interest in the Company; provided,
however, that the Manager will not be prohibited from paying underwriting or marketing commissions to registered broker-dealers
or other properly licensed persons for their services in marketing Units as provided for in the Operating Agreement.

 

16.              
Relationship of this Agreement to the Act. Many of the terms of this Agreement are intended to alter or extend provisions
of the Act as they may apply to the Company or the Members. Any failure of this Agreement to mention or specify the relationship
of such terms to provisions of the Act that may affect the scope or application of such terms shall not be construed to mean that
any of such terms is not intended to be a limited liability company agreement provision authorized or permitted by the Act or which
in whole or in part alters, extends or supplants provisions of the Act as may be allowed thereby.

 

17.              
Representations of Each Member. Each Member represents as follows:

 

17.1          
Sophistication and Risk Tolerance. The Member is an “accredited investor” as defined in Section 501 of
Regulation D of the Securities Act of 1933. The Member is capable of evaluating the risks and merits of acquiring an interest in
the Company, has no need for liquidity of investment with respect to the purchase price of such Membership Interest, and can afford
to sustain a complete loss of such purchase price.

 

 

 

    	 	26	 

     

    

 

17.2          
Unregistered Securities. The Member understands that the interests represented by the Membership Interest issued
to the Member have not been registered or qualified and have been offered and sold in reliance on exemptions from registration
and qualification requirements of federal, state or foreign securities laws and that no governmental agency has passed on the merits
or risks of acquiring an interest in the Company.

 

17.3          
No View to Resell. The Member is acquiring the Membership Interest for investment purposes only and not with a view
to resell or distribute to any other Person.

 

17.4          
Status. The Member, if an entity, is duly formed and organized, validly existing and in good standing under the laws
of the state of its formation and has the power under its formation documents and has the power and authority to execute, deliver
and perform this Agreement, which upon execution and delivery will be a valid and binding obligation enforceable in accordance
with its terms (subject only to the application of bankruptcy, insolvency or other similar laws regarding the rights of creditors
generally and the exercise of judicial discretion in equity).

 

17.5          
Due Authorization. The execution, delivery and performance of this Agreement by such Member are duly authorized and
do not require the consent or approval of any Person that has not been obtained, and, if such Member is an entity, are not in contravention
of or in conflict with any term or provision of such Member’s organizational documents.

 

17.6          
Other Agreements. The execution, delivery and performance of this Agreement will not breach or constitute a default
under any agreement, indenture, undertaking or other instrument to which the Member or any Affiliate is a party or by which any
of such Persons or any of their respective properties may be bound or affected, which breach or default would have a materially
adverse effect on the financial condition, properties or operations of this Company, and other than as contemplated by this Agreement,
such execution, delivery and performance will not result in the creation or imposition of (or the obligation to create or impose)
any lien or encumbrance on any of the Company’s property.

 

18.              
Miscellaneous.

 

18.1          
Counterparts. This Agreement may be executed in several counterparts, and all so executed shall constitute one Agreement,
binding on all of the parties hereto, notwithstanding that all of the parties are not signatory to the original or the same counterpart.

 

18.2          
Successors and Assigns. The terms and provisions of this Agreement shall be binding upon and shall inure to the benefit
of the successors and assigns of the respective Members.

 

18.3          
Severability. In the event any sentence or Section of this Agreement is declared by a court of competent jurisdiction
to be void, such sentence or Section shall be deemed severed from the remainder of this Agreement and the balance of this Agreement
shall remain in full force and effect.

 

18.4          
Notices. All notices under this Agreement shall be in writing and shall be given to the Members or Economic Interest
Owners entitled thereto, by personal service or by mail or by overnight courier, posted to the address maintained by the Company
for such Person or at such other address as it may specify in writing.

 

18.5          
Members’ Address. The name and address of the Members are as set forth on Exhibit B.

 

18.6          
Name and Address of Managers. The name and address of the Managers are as follows:

 

	 	
        VivaVentures Management Company, Inc.

        2 park Plaza, Suite 800

        Irvine, CA 92614

        

 

 

 

    	 	27	 

     

    

 

18.7          
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada.

 

18.8          
Captions. Section titles or captions contained in this Agreement are inserted only as a matter of convenience and
reference. Such titles and captions in no way define, limit, extend or describe the scope of this Agreement nor the intent of any
provisions hereof.

 

18.9          
Gender. Whenever required by the context hereof, the singular shall include the plural, and vice versa, and the masculine
gender shall include the feminine and neuter genders, and vice versa.

 

18.10       
Time. Time is of the essence with respect to this Agreement.

 

18.11       
Additional Documents. Each Member, upon the request of the Managers, shall perform any further acts and execute and
deliver any documents which may be reasonably necessary to carry out the provisions of this Agreement, including, but not limited
to, providing acknowledgment before a Notary Public of any signature made by a Member.

 

18.12       
Descriptions. All descriptions referred to in this Agreement are expressly incorporated herein by reference as if
set forth in full, whether or not attached hereto.

 

18.13       
Attorneys’ Fees. In the event that litigation or arbitration is commenced to enforce any of the provisions
of this Agreement, to recover damages for breach of any of the provisions of this Agreement, or to obtain declaratory relief in
connection with any of the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’
fees and costs, whether or not such action proceeds to judgment. The prevailing party shall be determined by either the officiating
judge or arbitrator in the matter or by the presiding judge in Nevada.

 

18.14       
Venue. Any action relating to or arising out of this Agreement shall be brought only in a court of competent jurisdiction
located in Nevada.

 

18.15       
Partition. The Members agree that the assets of the Company are not and will not be suitable for partition. Accordingly,
each of the Members hereby irrevocably waives any and all rights that it may have, or may obtain, to maintain any action for partition
of any of the assets of the Company.

 

18.16       
Integrated and Binding Agreement. This Agreement contains the entire understanding and agreement among the Members
with respect to the subject matter hereof, and there are no other agreements, understandings, representations or warranties among
the Members other than those set forth herein. This Agreement may be amended only as provided in this Agreement.

 

18.17       
Title to Company Property. All Property owned by the Company shall be owned by the Company as an entity and, insofar
as permitted by applicable law, no Member shall have any ownership interest in any Company Property in its individual name or right,
and each Member’s Membership Interest shall be personal property for all purposes.

 

18.18       
Electronic Signatures. Any electronic signature of a party to this Agreement and of a party to take any action related
to this Agreement or any agreement entered into by this Company shall be valid as an original signature and shall be effective
and binding. Any such electronic signature (including the signature(s) to this Agreement) shall be deemed (i) to be “written”
or “in writing,” (ii) to have been signed and (iii) to constitute a record established and maintained in the ordinary
course of business and an original written record when printed from electronic files.

 

 

[Signature Page Follows]

 

 

 

    	 	28	 

     

    

 

IN WITNESS WHEREOF,
this Agreement is effective as of the date first set forth in the preamble.

 

	 	MEMBER:
	 	 
	 	VIVAVENTURES
MANAGEMENT COMPANY, INC.,
	 	a Nevada
corporation
	 	 

		By:	VivaVentures Management Company, Inc., a Nevada corporation, its manager

 

 

		By:	
		Name:	
		Title:	

 

 

 

 

	 	MANAGER:
	 	 
	 	VIVAVENTURES
MANAGEMENT COMPANY, INC.,
	 	a Nevada
corporation
	 	 

 

		By:	
		Name:	
		Title:	

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	29	 

     

    

 

EXHIBIT A

 

DEFINITIONS

 

“Act” shall
mean the Nevada Limited Liability Company Act, as the same may be amended from time to time.

 

“Adjusted Capital
Account Deficit” shall mean, with respect to any Member, the deficit balance, if any, in such Member’s Capital Account
as of the end of the relevant fiscal year, after giving effect to the following adjustments:

 

(i)                
Credit to such Capital Account any amounts which the Member is obligated to restore and the Member’s share of Member
Minimum Gain and Company Minimum Gain and;

 

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

 

“Adjustment Year”
shall have the meaning assigned to such term in Code Section 6225(d)(2).

 

“Administrative
Manager” shall mean VivaVentures Management Company, Inc., a Nevada corporation.

 

“Affiliate”
shall mean (i) any Person directly or indirectly controlling, controlled by or under common control with another Person, (ii) a
Person owning or controlling 10% or more of the outstanding voting securities of such other Person, (iii) any officer, director
or partner of such other Person and (iv) if such other Person is an officer, director or partner, any company for which such
Person acts in any capacity.

 

“Agreement”
shall mean this Limited Liability Company Agreement, as amended from time to time.

 

“Book Gain”
shall mean the excess, if any, of the fair market value of the Property over its adjusted basis for federal income tax purposes
at the time a valuation of the Property is required under this Agreement or Treasury Regulations Section 1.704-1(b) for
purposes of making adjustments to the Capital Accounts.

 

“Book Loss”
shall mean the excess, if any, of the adjusted basis of Property for federal income tax purposes over its fair market value at
the time a valuation of the Property is required under this Agreement or Treasury Regulations Section 1.704-1(b) for
purposes of making adjustments to the Capital Accounts.

 

“Book Value”
shall mean the adjusted basis of Property for federal income tax purposes increased or decreased by Book Gain, Book Loss, Built-In
Gain and Built-In Loss as reduced by depreciation, amortization or other cost recovery deductions, or otherwise, based on such
Book Value.

 

“Built-In Gain
(or Loss)” shall mean the amount, if any, by which the agreed value of contributed Property exceeds (or is less than) the
adjusted basis of Property contributed to the Company by a Member immediately after its contribution by the Member to the capital
of the Company.

 

“Business”
shall mean purchasing precious metals concentrate with the goal of marketing and selling
the precious metal concentrate to buyers of precious metal.

 

 

 

    	 	30	 

     

    

 

“Capital Account”
with respect to any Member (or such Member’s assignee) shall mean such Member’s initial Capital Contribution adjusted
as follows:

 

(i)                
A Member’s Capital Account shall be increased by:

 

(a)               
such Member’s share of Net Income from the unit(s) of Assets funded by the Member’s class of unit;

 

(b)               
any item of income or gain specially allocated to a Member and not included in Net Income or Net Loss;

 

(c)               
any additional cash Capital Contribution made by such Member to the Company; and

 

(d)               
the fair market value of any additional Capital Contribution consisting of property contributed by such Member to the capital
of the Company reduced by any liabilities assumed by the Company in connection with such contribution or to which the Property
is subject.

 

(ii)              
A Member’s Capital Account shall be reduced by:

 

(a)               
such Member’s share of Net Loss from the unit(s) of Assets funded by the Member’s class of unit;

 

(b)               
any loss or deduction specially allocated to a Member and not included in Net Income or Net Loss;

 

(c)               
any cash Distribution made to such Member from the unit(s) of Assets funded by the Member’s class of unit; and

 

(d)               
the fair market value, as determined by the Managers, of any Property (reduced by any liabilities assumed by the Member
in connection with the Distribution or to which the distributed Property is subject) distributed to such Member; provided that,
upon liquidation and winding up of the Company, unsold Property will be valued for Distribution at its fair market value and the
Capital Account of each Member before such Distribution shall be adjusted to reflect the allocation of gain or loss that would
have been realized had the Company then sold the Property for its fair market value. Such fair market value shall not be less than
the amount of any nonrecourse indebtedness that is secured by the Property.

 

Property other than
money may not be contributed to the Company except as specifically provided in this Agreement. Property of the Company may not
be revalued for purposes of calculating Capital Accounts unless the Managers determine the fair market value of the Property and
the Company complies with the requirements of Treasury Regulations Section 1.704-1(b)(2)(iv)(f) and (g); provided, however,
for purposes of calculating Book Gain or Book Loss (but not for purposes of adjusting Capital Accounts to reflect the contribution
and distribution of such Property), the fair market value of Property shall be deemed to be no less than the outstanding balance
of any nonrecourse indebtedness secured by such Property.

 

The Capital Account
of a Substituted Member shall include the Capital Account of its transferor. Notwithstanding anything to the contrary in this Agreement,
the Capital Accounts shall be maintained in accordance with Treasury Regulations Section 1.704-1(b). For purposes of this
Agreement, any references to the Treasury Regulations shall include corresponding subsequent provisions.

 

“Capital Contribution”
shall mean the gross amount of cash actually contributed by a Member to the capital of the Company pursuant to Section 3 and
the agreed upon fair market value of a contributing Member’s equity in any property actually contributed pursuant to Section 3
(including any indebtedness assumed by a Member). In the plural, “Capital Contributions” shall mean the aggregate amount
contributed by all of the Members in the Company.

 

 

 

    	 	31	 

     

    

 

“Cash From Operations”
shall mean the net cash realized by a class of unit from all sources, including, but not limited to, the operations of the class
of unit, and also including the sale, exchange or transfer of the Business, after payment of all cash expenditures of the Company,
including, but not limited to, all operating expenses including all fees payable to the Managers or Affiliates, all payments of
principal and interest on indebtedness, expenses for repairs and maintenance, capital improvements and replacements, and such reserves
and retentions as the Managers reasonably determine to be necessary and desirable in connection with Company operations with its
then existing assets and any anticipated acquisitions.

 

“Certificate
of Formation” shall mean the Certificate of Formation of the Company as filed with the Secretary of State of Nevada as the
same may be amended or restated from time to time.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended, or corresponding provisions of subsequently enacted federal revenue laws.

 

“Company”
shall mean International Metals Exchange, LLC, a Nevada limited liability company.

 

“Company Minimum
Gain” shall have the same meaning as “partnership minimum gain” as set forth in Treasury Regulations Section 1.704-2(d).

 

“Delinquent Member”
shall have the meaning set forth in Section 3.3.

 

“Distribution”
shall refer to any money or other property transferred without consideration to Members or Owners of each class of unit from the
Assets funded by the Member’s class of unit, and then with respect to their Interests in the class of unit.

 

“Drag-Along Right”
shall have the meaning set forth in Section 11.12.

 

“Drag-Along Closing”
shall have the meaning set forth in Section 11.12.

 

“Economic Interest”
shall mean an interest in the Net Income, Net Loss and Distributions associated with the Assets funded by a certain class of unit
but shall not include any right to vote or to participate in the management of the Company.

 

“Economic Interest
Owner” shall mean the owner of an Economic Interest who is not a Member.

 

“Fair Market
Value” shall have the meaning set forth in Section 9.4.

 

“Interest”
shall mean a Membership Interest or an Economic Interest.

 

“Liquidation”
shall mean in respect to the Company the earlier of the date upon which the Company is terminated under Code Section 708(b)(1)
or the date upon which the Company ceases to be a going concern (even though it may exist for purposes of winding up its affairs,
paying its debts and distributing any remaining balance to its Members), and in respect to a Member where the Company is not in
Liquidation means the date upon which occurs the termination of the Member’s entire interest in the Company by means of a
distribution or the making of the last of a series of Distributions (whether or not made in more than one year) to the Member by
the Company.

 

“Major Decision”
shall have the meaning set forth in Section 7.4.

 

 

 

    	 	32	 

     

    

 

“Majority Vote”
shall mean, with respect to the Members, a vote of the Members holding more than 50% of the Membership Interests entitled to vote
to the extent that holders of Units in the Company are provided with the right to vote hereunder or as required under the Act,
in which case Members with the right to vote shall be entitled to cast one vote for each Membership Interest they own, and a fractional
vote for each fractional Membership Interest they own. Whenever a Majority Vote is required, the Company will provide the Members
with notice of such required vote, and the Members will have 15 days after the date such notice is sent by the Company to approve
or disapprove of the matter. If a Member does not disapprove of the matter within such 15-day period, the Member will be deemed
to have voted in accordance with the vote recommended by the Manager.

 

“Managers”
shall mean VivaVentures Management Company, Inc., a Nevada corporation.

 

“Manager’s
Interest” shall represent an interest in the class of unit of the Company entitling a Manager to the voting and other
rights that the Member may enjoy by being a Member.

 

“Member”
shall refer to any Person who is admitted to the Company under a certain class of unit as a Member of that class of unit or a Substituted
Member of that class of unit and who has not ceased to be a Member.

 

“Member Minimum
Gain” shall mean “partner nonrecourse debt minimum gain” as determined under Treasury Regulations Section 1.704-2(i)(3).

 

“Member Nonrecourse
Debt” shall mean “partner nonrecourse debt” as set forth in Treasury Regulations Section 1.704-2(b)(4).

 

“Member Nonrecourse
Deductions” shall mean “partner nonrecourse deductions,” and the amount thereof shall be, as set forth in Treasury
Regulations Section 1.704-2(i).

 

“Membership Interest”
shall mean a Member’s entire interest in the Company including such Member’s Economic Interest and such voting and
other rights and privileges that the Member may enjoy by being a Member pertaining to the Member’s class of unit.

 

“Net Income”
or “Net Loss” shall mean, respectively, for each taxable year of the Company the taxable income and taxable loss (exclusive
of Built-In Gain or Loss) of the Assets associated with each class of unit as determined for federal income tax purposes in accordance
with Code Section 703(a) (including all items of income, gain, loss, or deduction required to be separately stated pursuant
to Code Section 703(a)(1)) (other than any specific item of income, gain (exclusive of Built-In Gain), loss (exclusive of
Built-In Loss), deduction or credit subject to special allocation under this Agreement), with the following modifications:

 

(a)               
The amount determined above shall be increased by any income from the Assets associated with each class of unit exempt from
federal income tax;

 

(b)               
The amount determined above shall be reduced by any expenditures described in Code Section 705(a)(2)(B) or expenditures
treated as such pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i);

 

(c)               
Depreciation, amortization and other cost recovery deductions shall be computed based on Book Value instead of on the amount
determined in computing taxable income or loss. Any item of deduction, amortization or cost recovery specially allocated to a Member
and not included in Net Income or Net Loss shall be determined for Capital Account purposes for their individual class of unit
in a similar manner; and

 

 

 

    	 	33	 

     

    

 

(d)               
For purposes of this Agreement, Book Gain and Book Loss attributable to a revaluation of Property attributable to unrealized
gain or loss in such Property shall be treated as Net Income and Net Loss.

 

“Non-Delinquent
Member” shall have the meaning set forth in Section 3.3.

 

“Nonrecourse
Debt” shall have the meaning set forth in Treasury Regulations Section 1.704-2(b)(3).

 

“Nonrecourse
Deductions” shall have the meaning, and the amount thereof shall be, as set forth in Treasury Regulations Section 1.704-2(c).

 

“Offer Period”
shall have the meaning set forth in Section 11.10.2.

 

“Option Period”
shall have the meaning set forth in Section 11.10.2.

 

“Owner”
shall mean a Member or the holder of an Economic Interest.

 

“Percentage Interest”
shall mean the percentage interest of a Member in its respective class of unit., as set forth opposite the name of such Member
under the column “Percentage Interest” on Exhibit B.

 

“Person”
shall mean a natural person, corporation, limited partnership, general partnership, joint stock company, joint venture, association,
company, trust, bank trust company, land trust, business trust, statutory trust or other organization, whether or not a legal entity,
and a government or agency or political subdivision thereof.

 

“Prime Rate”
shall mean the reference rate announced from time-to-time by the Wall Street Journal, and changes in the Prime Rate shall be deemed
to occur on the date that changes in such rate are announced.

 

“Property”
shall refer to any or all of such real and tangible or intangible personal property or properties as may be acquired by the Company.

 

“Regulatory Allocations”
shall mean the allocations set forth in Sections 4.2.1 through 4.2.7.

 

“Required Additional
Capital Contribution” shall have the meaning set forth in Section 3.3.

 

“Substituted
Member” shall mean any Person admitted as a substituted Member pursuant to this Agreement.

 

“Tax Cuts and
Jobs Act” shall mean the Tax Cuts and Jobs Act of 2017 and the administrative interpretations and rulings thereunder.

 

“Tax Payment”
shall have the meaning set forth in Section 4.10.1.

 

 

 

    	 	34	 

     

    

 

“Transfer Notice”
shall have the meaning set forth in Section 11.10.1.

 

“Unit”
shall mean means a unit of measurement by which a Member’s right to vote (as applicable) and to participate in Net Income,
Net Loss, Nonrecourse Deductions and Distributions shall be determined in accordance with the terms of this Agreement. “Unit(s)”
may be designated as Class A Units or Class B Units. Except as otherwise provided in this Agreement or as otherwise required by
applicable law, all Class A Units and Class B units will be identical in all respects and will entitle the holders of such Units
to the same rights and privileges, subject to the same qualifications, limitations and restrictions, except that, in the case of
Class B Units, holders of Class B Units will not be entitled to vote on any matter except in the removal of Manager
and to the extent otherwise required under the Act. Notwithstanding any other provision of this Agreement, Class A Units, and Class
B Units may not be subdivided (by Unit split or distribution of Units), combined or reclassified unless the Units of the other
class of Units are concurrently therewith proportionately subdivided (by Unit split or distribution of Units), combined or reclassified
in a manner that maintains the same proportionate equity ownership (and same proportionate voting power, as applicable) among the
holders of Class A Units and Class B Units on the record date for such subdivision (by Unit split or distribution of Units), combination
or reclassification.

 

“Vivakor”
shall mean Vivakor, Inc., a Nevada corporation, and its subsidiaries.

 

“VVMC”
shall mean VivaVentures Management Company, Inc., a Nevada corporation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	35	 

     

    

 

EXHIBIT B

ROSTER OF MEMBERS

 

	Name and Address	 	Capital Contribution	 	 	Unit Class	 	Percentage Class Interest	 
	VivaVentures Management Company, Inc. 
	 	$	1,000	 	 	A	 	 	100%	 
	 	 	 	 	 	 	 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	36

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