Document:

Exhibit 10.5

 

 

_________________________

B.R. JOHNSON, LLC

LIMITED LIABILITY COMPANY AGREEMENT

__________________________

 

     

     

    

 

Table of Contents

 

Page

 

	ARTICLE I FORMATION OF COMPANY	1
	1.1	Formation	1
	1.2	Name	1
	1.3	Principal Office of the Company	1
	1.4	Purposes	1
	1.5	Term	2
	1.6	Representations	2
	1.7	Definitions	2
	ARTICLE II CAPITAL	9
	2.1	Capital Contributions	9
	2.2	Capital Accounts	9
	ARTICLE III ALLOCATIONS OF NET INCOME AND NET LOSS	10
	3.1	Allocations of Net Income and Net Loss	10
	3.2	Allocations on Liquidation	10
	3.3	Special Allocation Rules	10
	3.4	Special Allocations	12
	3.5	Allocation of Taxable Income or Loss.	12
	3.6	Depreciation Recapture	13
	ARTICLE IV DISTRIBUTIONS	13
	4.1	Distributions	13
	4.2	Restriction on Distributions	14
	4.3	Passed Distributions	14
	ARTICLE V MEMBERS	14
	5.1	Powers of Members	14
	5.2	Meetings of Members	14
	ARTICLE VI MANAGEMENT	16
	6.1	Board of Managers; Election	16
	6.2	Notice of Board of Managers Meetings; Location; Waiver of Notice	17
	6.3	Quorum; Approvals; Written Action	18
	6.4	Powers, Rights and Duties of the Board of Managers	18
	6.5	Compensation of Managers	19
	6.6	Limitations on Actions	19
	6.7	Consent to Company Sale	21
	6.8	Executive Officers	23
	6.9	Partnership Representative	24
	6.10	Board Observers	24
	ARTICLE VII OPERATION OF THE COMPANY	24
	7.1	Books of Account	24
	7.2	Reports	25
	7.3	Access to Books	25
	7.4	Bank Accounts	25
	7.5	Tax Filings, Elections and Cooperation	26
	7.6	Partnership Representative	28

 

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	7.7	Tax Matters Partner for Transition Years	29
	7.8	Survival	30
	ARTICLE VIII DISSOLUTION; CONTINUATION OF COMPANY	30
	8.1	Dissolution of the Company	30
	8.2	Continuation	31
	8.3	Distributions on Liquidation	31
	8.4	Termination	31
	8.5	Final Statement	32
	8.6	Company Sale	32
	ARTICLE IX LIABILITY, EXCULPATION AND INDEMNIFICATION	32
	9.1	Liability	32
	9.2	Exculpation	32
	9.3	Duties and Liabilities of Covered Persons.	33
	9.4	Indemnification	33
	9.5	Expenses	34
	9.6	Limitation on Indemnification	34
	9.7	Non Exclusivity	34
	9.8	Amendments	34
	ARTICLE X TRANSFER	34
	10.1	Transfer	34
	10.2	Restrictions on Transfer	35
	10.3	Additional Restrictions on Transfer	36
	10.4	Right of First Refusal	36
	10.5	Tag-Along Right	38
	10.6	Put/Call Right	39
	ARTICLE XI ISSUANCE OF MEMBERSHIP CERTIFICATES	40
	11.1	No Issuance of Membership Certificates	40
	11.2	Transfer of Membership Interests	40
	ARTICLE XII GENERAL	41
	12.1	Relationship of Members	41
	12.2	Waiver of Jury Trial	41
	12.3	Amendment	41
	12.4	Governing Law	42
	12.5	Consent to Jurisdiction, Etc	42
	12.6	Intentionally Omitted	42
	12.7	Notices	42
	12.8	Severability	43
	12.9	Title to Company Property	43
	12.10	Partition	43
	12.11	Captions	43
	12.12	Pronouns and Plurals	43
	12.13	Payment	43
	12.14	Counterparts	43

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	12.15	Confidentiality	43
	12.16	Further Assurances	44
	12.17	Directors and Officers Liability Insurance	44
	12.18	No Third Party Rights	44
	12.19	Successors and Assigns	44
	12.20	Power of Attorney	44
	12.21	Equitable Relief	45
	12.22	Waiver	45
	12.23	Entire Agreement	45

 

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SCHEDULE AMEMBER CAPITAL CONTRIBUTIONS
AND MEMBERSHIP INTERESTS

SCHEDULE BNOTICE INFORMATION

 

 

 

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B.R. JOHNSON, LLC

LIMITED LIABILITY COMPANY AGREEMENT

THIS LIMITED LIABILITY COMPANY AGREEMENT
(as the same may be amended from time to time, the “Agreement”) of B.R. Johnson, LLC, a limited liability company
organized under the laws of the State of Delaware (the “Company”) is dated and effective as of November 1, 2016
(the “Effective Date”), by and among each of the Persons whose name appears at the foot of this Agreement (such
persons being hereinafter referred to collectively as the “Members” and individually as a “Member”).

WHEREAS, the Company was organized under
the Delaware Limited Liability Company Act pursuant to a Certificate of Formation of the Company filed in the Office of the Secretary
of the State of Delaware on September 8, 2016 (the “Certificate”); and

WHEREAS, the parties hereto desire to
establish their respective rights and obligations pursuant to the Delaware Limited Liability Company Act in connection with their
forming such limited liability company.

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

ARTICLE
I

FORMATION OF COMPANY

1.1            Formation.
The Company was formed as a limited liability company by the filing of the Certificate. The Members hereby set forth their agreements
with one another regarding the operation of the Company pursuant to the terms of the Delaware Limited Liability Company Act, as
amended from time to time (the “LLC Act”). The Members agree that each of them shall execute and file all certificates
and documents and take all actions as the Company shall determine shall be necessary or appropriate for the qualification of the
Company to do business, and its continuation, as a foreign limited liability company in any jurisdiction where the Company’s
business would require the Company to be qualified. The Certificate and any other documents shall be recorded in all offices or
jurisdictions where the Company shall determine such recording to be necessary or advisable for the conduct of the business of
the Company.

1.2            Name.
The name of the Company is “B.R. Johnson, LLC”.

1.3            Principal
Office of the Company. The principal office of the Company is located at 6960 Fly Road, East Syracuse New York. The Board of
Managers may, at any time, change the location of the Company’s principal place of business.

1.4            Purposes.
The purposes of the Company are to (a) receive as capital contributions certain assets (cash as well as tangible and intangible
property) from the Members; (b) conduct and carry on the business and manage the assets formerly carried on and managed by BR Johnson,
Inc. and its Affiliates and such other businesses and assets as may subsequently be acquired or developed by the Company in accordance
with the provisions hereof (collectively, the “Operations”); (c) employ personnel to manage the Operations and
(d) take all actions necessary or appropriate in order to consummate such capital contributions and thereafter carry on and maximize
the value of the Operations.

    	

     

    

1.5            Term.
The term of the Company commenced with the filing of the Certificate in the Office of the Secretary of State of the State of Delaware
on September 8, 2016 and shall continue until dissolved in accordance with this Agreement.

1.6            Representations.

 (a)            Each
Member, severally and not jointly, represents and warrants that (i) if an entity, the Member is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization and that it has all requisite power, authority and
capacity to own, operate and lease its properties and to carry on its business; (ii) it has all requisite power, authority and
capacity to enter into this Agreement and to perform its obligations hereunder; (iii) it has duly authorized the execution, delivery
and performance of this Agreement and the transactions contemplated hereby, and this Agreement constitutes its valid and binding
obligation, enforceable against it in accordance with its terms; (iv) the execution, delivery and performance of this Agreement
by it and the consummation of the transactions contemplated hereby do not and will not result in the breach of any of the terms
and conditions of, or cause a default under, any contract, agreement, commitment, indenture, mortgage, pledge, note, bond, license
or other instrument or obligation to which it is a party or by which it or any of its respective properties or assets may be bound
or affected, and if an entity, do not and will not violate any of the terms of its organizational documents; (v) no consent or
approval of any other Person is required in connection with its execution, delivery and performance of this Agreement or the consummation
of the transactions contemplated hereby; (vi) it is acquiring the Membership Interest in the Company solely for its own account
and not for the account of any other Person and not with a current view toward the distribution or resale thereof; and (vii) it
is an “accredited investor” as that term is defined in the Securities Act.

 (b)            Each
Member agrees to furnish such certificates, resolutions or other documentary evidence with respect to the foregoing representations
and warranties as may be reasonably requested to enable the Company to consummate the transactions contemplated by this Agreement
and the Management Services Agreement, and otherwise to carry out the Company’s purposes.

1.7            Definitions.
As used in this Agreement, the following terms shall have the meanings set forth below:

“Acquisition” means
any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition
of all or a material amount of the assets of any Person, or any business or division of any Person, (b) the acquisition of outstanding
equity interests of any Person, or (c) the acquisition of another Person by a merger, amalgamation or consolidation or any other
combination with such Person.

“Affiliate” means,
with respect to any Person, any other Person which directly or indirectly, through one or more intermediaries, Controls, is Controlled
by or is under common Control with such Person and when used with respect to any natural Person shall also include (i) any trust
or other estate in which such Person has a substantial beneficial interest or as to which such Person serves as trustee or in a
similar capacity and (ii) any relative or spouse of such Person, or any relative of such spouse, who has the same principal residence
as such Person.

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“Asset Value” means,
with respect to any asset of the Company, the asset’s adjusted basis for federal income tax purposes, except as follows:

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

(b)            upon
the distribution in kind of any Company asset, the Asset Value of such asset shall be adjusted immediately prior to such distribution
to equal its Gross Fair Market Value;

(c)            to
the extent the Members agree that such adjustment is reasonably necessary or appropriate to reflect the relative economic interests
of the Members in the Company, the Asset Values of all Company assets shall be adjusted to equal their respective Gross Fair Market
Values as of the following times: (i) upon the acquisition of an interest in the Company by a new Member or an additional interest
by an existing Member in exchange for more than a de minimis capital contribution; (ii) upon the distribution by the Company to
a Member of more than a de minimis amount of property as consideration for an interest in the Company; (iii) the grant of a Membership
Interest in the Company (other than a de minimis interest) as consideration for the provision of services to or for the benefit
of the Company by an existing Member acting in the capacity of a Member or by a new Member acting in the capacity of a Member or
in anticipation of being a Member; and (iv) the Liquidation of the Company; and

(d)            if
the Asset Value of an asset has been determined or adjusted in accordance with paragraphs (a), (b) or (c) of this definition, such
Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing
Net Income and Net Losses.

“Available Funds”
means funds available for distribution to Members after all current Company obligations, including, without limitation, payments
due under the Management Services Agreement, have been satisfied or have been provided for by the establishment of reserves in
amounts reasonably determined by the Board of Managers to be appropriate.

“Board” or “Board
of Managers” means the Board of Managers of the Company described in Article VI hereof.

“Book Value” shall
mean with respect to any asset, such asset’s adjusted basis for United States federal income tax purposes, except as follows:
(i) the initial Book Value of any asset contributed by a Member to the Company shall be the fair market value of such asset as
of the date of the contribution (as determined hereunder); (ii) the Book Value of all Company assets shall be adjusted to equal
their respective fair market value (as determined hereunder) upon each occurrence of the liquidation of the Company within the
meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g); and (iii) the Book Value of any asset distributed by the Company
to a Member shall be adjusted to equal the fair market value (as determined hereunder) of such asset on the date of distribution.

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“BRJ” means BR Johnson,
Inc., a New York corporation.

“BRJ Partners” means
BRJ Acquisition Partners, LLC, a New York limited liability company.

“Business Day” means
any day other than Saturday, Sunday or other day in which commercial banking institutions in New York, New York are authorized
or required by law or other governmental action to remain closed for business.

“Capital Account”
means the capital account established for each Member pursuant to Section 2.2 hereof.

“Capital Contribution”
means the sum of the cash and the net fair market value of any other property contributed by a Member to the Company in accordance
with Section 2.1 hereof.

“Certificate” has
the meaning given such term in the recitals to this Agreement.

“Code” means the Internal
Revenue Code of 1986, as amended, or any successor legislation as in effect from time to time.

“Common Member” means
each of the Persons listed on Schedule A attached hereto and designated as a Common Member thereon and any assignee, transferee
or successor of such Common Member who has been admitted as a Member of the Company and whose admission is reflected on the books
and records of the Company.

“Common Member Pro Rata Interest”
means, with respect to each Common Member, the percentage of Common Membership Interest of such Common Member shown on Schedule
A hereto.

“Common Membership Interest”
means the Common Membership Interest in the Company held by each Common Member, as set forth on Schedule A hereto.

“Company Sale” means
a transaction or series of transactions with a party or group of parties acting in concert (other than an Affiliate of the Company
or any Member) which involves (a) any merger, consolidation or business combination of the Company or a sale of Membership Interests
following which the Members of the Company immediately prior to such sale own, directly or indirectly, less than 50% of the outstanding
voting interests of the surviving or resulting entity, or (b) any sale or transfer of all or substantially all of the assets of
the Company.

“Control” of a Person
means the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person whether
by voting power, contract or otherwise.

“Covered Person” means
any Member, any Manager, any Observer, any Affiliate of any Member, Manager or Observer, or any officer, director, shareholder,
member, manager, partner, employee, representative or agent of a Member, a Manager, an Observer, the Company or any of their respective
Affiliates (including any former officer, director, shareholder, member, manager, partner, employee, representative or agent).

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“Default Rate” means
a rate per annum which is twelve percent (12%).

“Depreciation” means,
for each Fiscal Year or other period, an amount equal to the depreciation, amortization or other cost recovery deduction allowable
with respect to an asset for such year or other period for federal income tax purposes, except that if the Asset Value of an asset
differs from its adjusted basis for federal income tax purposes at the beginning of such year or other period, Depreciation shall
be an amount which bears the same ratio to such beginning Asset Value as the federal income tax depreciation, amortization or other
cost recovery deduction for such year or other period bears to such beginning adjusted tax basis; provided, however, that if the
federal income tax depreciation, amortization or other cost recovery deduction for such year is zero, Depreciation shall be determined
with reference to such beginning Asset Value using any reasonable method selected by the Board of Managers.

“Family Member” means,
with respect to any Member who is a natural person, such Member’s spouse and any lineal descendant (whether by birth or adoption)
of such Member.

“Fiscal Year” means
the fiscal year of the Company, which shall be the twelve month period ending on December 31 of each year; provided, however, that
(i) the first “Fiscal Year” shall be the period commencing with the date of the filing of the Certificate with
the Office of the Secretary of State of the State of Delaware and ending on December 31, 2016, and (ii) upon Termination, “Fiscal
Year” means the period from the end of the last preceding Fiscal Year to the date of Termination.

“Gross Fair Market Value”
means the fair market value reasonably determined by the Board of Managers, unreduced by any liabilities. If there is any dispute
concerning the fair market value of property, the Company will have the property appraised by an independent appraiser acceptable
to the disputing party and the Company.

“Independent Appraiser”
means any one of Pricewaterhouse Coopers, LLP, Deloitte & Touche, LLP, Ernst & Young, LLP or KPMG, LLP as selected
by Lorraine and approved by Regional, it being understood that Regional specifically agrees that Regional shall be required to
select one of such firms as Independent Appraiser within five (5) days of the issuance of a Put/Call Notice by Lorraine under Section
10.6 below.

“Liquidation” means
a liquidation of the Company or a liquidation of the interest of any Member in the Company, as the case may be, in each case as
defined in Section 1.704 1(b)(2)(ii)(g) of the Treasury Regulations.

“LLC Act” has the
meaning given such term in Section 1.1 hereof.

“Lorraine” means Lorraine
Capital, LLC, a New York limited liability company, and any Permitted Transferee of Lorraine.

“Lorraine Parties” has
the meaning given such term in Section 10.6 hereof.

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“Management Services Agreement”
means the Management Services Agreement, dated the date hereof, by and between Lorraine and the Company, as amended from time to
time.

“Manager” means a
member of the Board of Managers.

“Member” means individually,
each Common Member and each Preferred Member and collectively, the Common Members and Preferred Members and, subject to the provisions
of Article X of this Agreement, any assignee or successor of any thereof who is admitted as a Member of the Company in accordance
with the terms and provisions of this Agreement and whose admission is reflected on the books and records of the Company.

“Membership Interest”
means, with respect to each Member, its Common Membership Interest in the Company or its Preferred Membership Interest in the Company
(in each case expressed as a percentage) as set forth on Schedule A annexed hereto, as the same may be amended from time
to time.

“Net Income” or “Net
Loss” for any Fiscal Year or other period means an amount equal to the Company’s taxable income or loss for such
year or period, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction
required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following
adjustments:

(a)            Any
income of the Company that is exempt from Federal income tax and not otherwise taken into account in computing Net Income or Net
Loss shall be added to such taxable income or loss;

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

(c)            In
the event the Asset Value of any Company asset is adjusted pursuant to the definition of Asset Value, the amount of such adjustment
shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Net Income or Net Loss
for the Fiscal Year in which such adjustment occurs;

(d)            Gain
or loss resulting from any disposition of property with respect to which gain or loss is recognized for Federal income tax purposes
shall be computed by reference to the Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such
property differs from its Asset Value;

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

(f)            Notwithstanding
any other provision, any items which are specially allocated pursuant to Section 3.3 hereof shall not be taken into account in
computing Net Income or Net Loss. Nevertheless, such items shall be taken into account in adjusting Capital Accounts.

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“Non-Transition Year”
means any Fiscal Year other than a Transition Year.

“Operations” has the
meaning ascribed thereto in Section 1.4 hereof.

“Percentage Interest”
means, with respect to each Member, the percentage ownership of the Company held by such Member, as set forth on Schedule A,
as amended from time to time.

“Permitted Transferee”
means (a) with respect to any Member that is a natural person, any Family Member of such Member, any trustee of a trust solely
for the benefit of such Member or any Family Member of such Member, and any Testamentary Transferee, and (b) with respect to any
Member that is not a natural person, the Affiliates of such Member; provided, however, that no Person shall be a Permitted Transferee
until and unless such Person shall have complied with the requirements of Section 10.2 and the other provisions of this Agreement.

“Person” means any
natural person, partnership, firm, trust, association, corporation, limited liability company, joint stock company, joint venture,
bank, trust company, unincorporated organization or business entity or governmental authority or political subdivision, including
any agency, department or instrumentality thereof.

“Preferred Member”
means each of those Members so designated on Schedule A, but only in its capacity as a Preferred Member and not as a Common
Member, and any assignee, transferee or successor of such Preferred Member who has been admitted as a Member of the Company and
whose admission is reflected on the books and records of the Company.

“Preferred Member Pro Rata Interest”
means, with respect to each Preferred Member, the percentage of Preferred Membership Interest of such Preferred Member shown on
Schedule A hereto.

“Preferred Membership Interest”
means the Preferred Membership Interest in the Company held by each Preferred Member, as set forth on Schedule A hereto.

“Preferred Return”
means, as determined with respect to a Preferred Member, an amount that, when combined with all prior distributions made under
Section 4.1(b)(i) to such Preferred Member, yields a cumulative return of five percent (5%) per annum, compounded annually, on
the Unreturned Preferred Capital (as outstanding from time to time) of such Preferred Member, which return shall accrue daily and
shall be computed on the basis of a 365 day or a 366 day year, as applicable.

“Prime Rate” means
the rate posted by a majority of top 25 insured U.S.-chartered commercial banks to price short-term business loans, as published
in the Federal Reserve Statistical Release H.15 daily update for Selected Interest Rates at http://www.federalreserve.gov/releases/H15/update/default.htm.

“Pro Rata Interest”
means a Common Member Pro Rata Interest or a Preferred Member Pro Rata Interest, as applicable, based upon whether Common Membership
Interests or Preferred Membership Interests are proposed to be Transferred.

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“Purchase Agreement”
means the Asset Purchase Agreement, dated as of the date hereof (as the same may be amended from time to time), by and among BRJ,
William A. Harfosh, Michael V. Howard, Anthony C. Minieri, Arthur P. Brillanti, the Company, William J. Maggio, Charles A. Rider,
Richard F. Gioia and Justin M. Reich.

“Qualified Offer”
means a written offer from any Person (other than an Affiliate of the Company or any Member) for a Company Sale provided that such
offer is a bona fide offer, without financing contingencies, with a reasonable likelihood of closing on terms substantially consistent
with the terms set forth in the offer.

“Record Holder” means
the Person in whose name a Membership Interest is registered on the books of the Company.

“Regional” means Regional
Brands Inc., a Delaware corporation, and any Permitted Transferee of Regional Brands Inc.

“Securities Act” means
the Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder.

“Taxable Income” or
“Taxable Loss” for any Fiscal Year means the taxable income or taxable loss of the Company for such Fiscal Year,
computed for federal income tax purposes.

“Termination” means
the complete distribution of the assets of the Company to the Members following dissolution and winding up of the Company.

“Testamentary Transferee”
means, with respect to any Member who is a natural person, any heir, beneficiary, executor or trustee of a trust which is a testamentary
trust under such Member’s will or other instrument taking effect at death or under applicable laws of descent and distribution;
provided, however, that no Person shall be a Testamentary Transferee unless such Person (a) is a Family Member of such Member (in
the case of an heir or beneficiary) and (b) shall have complied with the requirements of Section 10.2 and the other provisions
of this Agreement.

“Transfer” means any
sale, assignment, transfer, pledge, hypothecation, gift, encumbrance or other disposition.

“Transferee” has the
meaning given such term in Section 10.1 of this Agreement.

“Transition Year”
means any Fiscal Year beginning on or before December 31, 2017.

“Treasury Regulations”
means the rules, regulations and interpretations of rules and regulations adopted under the Code, as in effect from time to time.

“Underpayment Amount”
means, as determined with respect to a Member, (a) any “imputed underpayment” determined under Code Section 6225, (b)
any similar or corresponding amount determined under any similar or corresponding provision of any state tax, (c) any other similar
or corresponding amount if and to the extent such amount represents the payment or collection of any tax that would otherwise be
paid or payable by such Member as a result of the pass-through (or similar treatment) of any item of income or loss to such Member,
and (d) any withholding, estimated or other tax required by law to be withheld or paid by the Company with respect to or on behalf
of such Member.

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“Unreturned Preferred Capital”
means an amount not less than zero and equal to the excess of a Preferred Member’s total Capital Contributions with respect
to its Preferred Membership Interest over the sum of any distributions to such Member pursuant to Section 4.1(b)(ii) with respect
to such Member’s Preferred Membership Interest.

ARTICLE
II

CAPITAL

2.1            Capital
Contributions.

(a)            The
Capital Contributions of the Members to the Company, made on or about the date of this Agreement, are as shown on Schedule A.

(b)            No
Member shall be required to make any Capital Contributions in excess of the amounts contributed by each Member as shown on Schedule
A, and no Member shall be required to make up any deficit in its Capital Account.

(c)            A
Member is not entitled to be paid interest in respect of either its Capital Account or its Capital Contributions.

2.2            Capital
Accounts. The Company shall maintain a separate Capital Account for each Member according to the rules of Treasury Regulation
Section 1.704 1(b)(2)(iv). For this purpose, the Company may, upon the occurrence of the events specified in Treasury Regulation
Section 1.704 1(b)(2)(iv)(f), adjust the Members’ Capital Accounts in accordance with the rules of such regulation and Treasury
Regulation Section 1.704 1(b)(2)(iv)(g) to reflect a revaluation of Company property. For purposes of computing the amount of any
item of Company income, gain, loss or deduction to be allocated pursuant to Section 3.1 below and to be reflected as an adjustment
to the Members’ Capital Accounts, the determination, recognition and classification of any such item shall be the same as
its determination, recognition and classification for federal income tax purposes (including any method of depreciation, cost recovery
or amortization used for this purpose), provided that:

(a)            The
computation of all items of income, gain, loss and deduction shall include income exempt from federal income tax and those items
described in Code Section 705(a)(2)(B) or Treasury Regulation Section 1.704 1(b)(2)(iv)(i), without regard to the fact that such
items are not includable in gross income or are not deductible for federal income tax purposes.

(b)            If
the Book Value of any Company property is adjusted pursuant to Treasury Regulation Section 1.704 1 (b)(2)(iv)(e) or (f), the amount
of such adjustment shall be taken into account as gain or loss from the disposition of such property.

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(c)            Items
of income, gain, loss or deduction attributable to the disposition of Company property having a Book Value that differs from its
adjusted basis for tax purposes shall be computed by reference to the Book Value of such property.

(d)            Items
of depreciation, amortization and other cost recovery deductions with respect to Company property having a Book Value that differs
from its adjusted basis for tax purposes shall be computed by reference to the property’s Book Value in accordance with Treasury
Regulation Section 1.704 1(b)(2)(iv)(g).

(e)            To
the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Sections 732(d), 734(b) or 743(b) is required,
pursuant to Treasury Regulation Section 1.704 1(b)(2)(iv)(m), to be taken into account in determining the amount in the 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).

ARTICLE
III

ALLOCATIONS OF NET INCOME AND NET LOSS

3.1            Allocations
of Net Income and Net Loss. For each Fiscal Year, after adjusting each Member’s Capital Account for all Capital Contributions
and distributions during such Fiscal Year and making all allocations pursuant to Section 3.3 with respect to such Fiscal Year,
items of Net Income and Net Loss shall be allocated to each Member such that, as of the end of such Fiscal Year, the Capital Account
of each Member shall equal:

(a)            the
amount that would be distributed under Section 4.1(b) to such Member, determined as if the Company were to sell (as of the last
day of the Fiscal Year) all of its assets for cash equal to their gross Asset Values and distribute all of such cash in accordance
with Section 8.3 (with the assumption that the amount paid in satisfaction of any nonrecourse obligation is limited to the gross
Asset Value of any property securing the nonrecourse obligation), minus

(b)            the
amount, if any, which each Member is or would be obligated to contribute to the capital in connection with a liquidation of the
Company or otherwise in accordance with the Agreement or applicable law.

3.2            Allocations
on Liquidation. Upon a Liquidation, all or substantially all of the assets of the Company shall be sold and any assets not
sold shall be treated as if they were sold for their gross Asset Values. Any resulting Net Income or Net Loss shall be allocated
in accordance with Section 3.1.

3.3            Special
Allocation Rules. Notwithstanding any other provision of this Agreement:

(a)            Nonrecourse
deductions (as defined in Treasury Regulations Section 1.704-2(c)) for each fiscal year shall be allocated to the Common Members
in the ratio of their Membership Interests.

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(b)            Any
member nonrecourse deductions (defined in the same way as “partner nonrecourse deductions” in Treasury Regulations
Section 1.704-2(i)) for each Fiscal Year shall be specially allocated to the Common Member who bears the economic risk of loss
with respect to the member nonrecourse debt (defined in the same way as “partner nonrecourse debt” in Treasury Regulations
Section 1.704-2(b)(4)) to which such member nonrecourse deductions are attributable in accordance with Treasury Regulations Section
1.704-2(i)(2).

(c)            If
there is a net decrease in Company minimum gain (calculated in the same way as “partnership minimum gain” in Treasury
Regulations Section 1.704-2(b)(2) and 1.704-2(d)) or in minimum gain attributable to member nonrecourse debt (calculated in the
same way as “partner nonrecourse debt minimum gain” in Treasury Regulations Section 1.704-2(i)(3)) during a Fiscal
Year, the Common Members shall be allocated items of income and gain in accordance with Treasury Regulations Section 1.704-2(f)
and 1.704-2(i)(4).

(d)            A
Common Member shall not be allocated items of loss or deduction to the extent such an allocation would cause or increase a deficit
Capital Account balance for such Member as of the close of any taxable year in excess of the amount of such balance the Member
is obligated or deemed obligated to restore pursuant to Treasury Regulations under Section 704(b) of the Code. In determining the
Capital Account balance of a Member for this purpose, adjustments, allocations and distributions described in Treasury Regulations
Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6) shall be taken into account. Any items of loss and deduction not allocated to a Common
Member under this Section 3.3(d) shall be allocated first, to the remaining Common Members with positive Capital Account balances
(as adjusted in accordance with the preceding sentence and after adding back each Common Member’s share of Company minimum
gain and minimum gain attributable to member nonrecourse debt) in proportion to, and to the extent of, such positive Capital Account
balances and thereafter, as provided in applicable Treasury Regulations. If a Common Member unexpectedly receives an adjustment,
allocation or distribution described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) which results in a negative
Capital Account balance in excess of any deficit balance which the Common Member is obligated or deemed obligated to restore pursuant
to Treasury Regulations under Section 704(b) of the Code, items of income and gain (consisting of a pro rata portion of each item
of income, including gross income, and gain) shall be allocated to such Member in an amount and manner sufficient to eliminate
such excess deficit balance as quickly as possible. This Section 3.3(d) is intended to comply with the qualified income offset
requirement of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted and applied consistently therewith.

(e)            The
special allocations set forth in Section 3.3(d) herein (the “Loss Limit Allocations”) are intended to comply with certain
requirements of Treasury Regulations under Section 704(b) of the Code. Notwithstanding any other provisions of this Agreement (other
than the provisions of this Section 3.3 and Section 3.4), the Loss Limit Allocations shall be taken into account in allocating
other Net Income, Net Loss and items of income, gain, loss and deduction among the Common Members so that, to the extent possible,
the net amount of such allocations of other Net Income, Net Loss and other items and the Loss Limit Allocations to each Common
Member shall be equal to the net amount that would have been allocated to each such Member if the Loss Limit Allocations had not
occurred.

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3.4            Special
Allocations. Notwithstanding Sections 3.1, 3.2 and 3.3 hereof, if any interest in the Company is sold, assigned or transferred
during any Fiscal Year in compliance with the provisions of Article X hereof, Net Income and Net Loss, each item thereof and all
other items of income, gain, loss and deduction attributable to the transferred interest for such Fiscal Year shall be divided
and allocated between the transferor and the transferee by taking into account their varying interests during the period in accordance
with Code Section 706(d), using any conventions permitted by law and selected by the Board of Managers, in their reasonable discretion.
Solely for purposes of making such allocations, such transfer shall be effective on the first day of the calendar month immediately
following the date of such assignment or transfer. All distributions on or before the effective date of a transfer shall be made
to the transferor, and all distributions thereafter shall be made to the transferee.

3.5            Allocation
of Taxable Income or Loss.

(a)            Subject
to Section 3.5(b) hereof, in any Fiscal Year, items of Taxable Income or Taxable Loss shall be allocated to the Members, solely
for Federal income tax purposes, in an amount equal to such Member’s share of the corresponding items of Net Income or Net
Loss, as the case may be, allocated in accordance with Sections 3.1, 3.2, 3.3 and 3.4 hereof.

(b)            Income,
gain, loss or deduction with respect to property contributed to the Company shall be allocated for Federal income tax purposes
among the Members in accordance with the provisions of Section 704(c) of the Code (and the Treasury Regulations thereunder), using
any allocation method described in the regulations under Section 704(c) of the Code chosen by the Board of Managers, in their discretion.
The Capital Accounts of the Members shall not be adjusted to reflect any item of income, gain, loss or deduction attributable to
the difference between the basis for Federal income tax purposes of such property as of the date of such contribution and the fair
market value of such property credited to the Capital Account of such Member by reason of such contribution.

(c)            If
the Asset Value of any property of the Company is adjusted so as to differ from its adjusted basis for Federal income tax purposes,
subsequent allocations of income, gain, loss and deduction (and any item thereof) with respect to such asset shall take account
of any variation between the adjusted basis of such asset for Federal income tax purposes and the Asset Value in the same manner
as under Code Section 704(c) and the applicable Treasury Regulations thereunder.

(d)            Allocations
pursuant to this Section 3.5 are solely for tax purposes and shall not affect, or in any way be taken into account in computing,
any Member’s Capital Account or share of Net Income, Net Loss or other items, or distributions pursuant to any provision
of this Agreement.

(e)            If
any fees paid to a Member are determined to be a distribution by the Company for Federal income tax purposes, any resulting increase
in Taxable Income or decrease in Taxable Loss in an amount equal to such fees shall be allocated to such Member. To the extent
that any distribution to a Member is determined for Federal income tax purposes to be a fee paid to such Member, such Member’s
allocated share of Taxable Loss shall be increased, or its share of Taxable Income reduced, by an amount equal to such distribution.

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3.6            Depreciation
Recapture. To the extent the Company recognizes gain as a result of a sale, exchange or other disposition of assets which is
taxable as ordinary income pursuant to Code Section 1245 or Code Section 1250, such ordinary income shall be allocated for Federal
income tax purposes among the Common Members in the same proportion as the Depreciation giving rise to such ordinary income was
allocable among the Common Members. In no event, however, shall any Common Member be allocated ordinary income hereunder in excess
of the amount of gain allocated to such Member under this Agreement.

ARTICLE
IV

DISTRIBUTIONS

4.1            Distributions.
For each Fiscal Year, the Company shall make the following distributions, out of Available Funds, to the Members as follows:

(a)            Tax
Distributions.

(i)            Notwithstanding
anything herein to the contrary, during each Fiscal Year or within ninety (90) days thereafter, to the extent of Available Funds
and to the extent permitted by the LLC Act, the Company shall, before any distributions are made under Section 4.1(b), distribute,
in cash, to each Member an amount sufficient to enable such Member to satisfy such Member’s federal, state and local tax
liabilities attributable to the items of income, gain, loss or deduction allocated to such Member by the Company with respect to
such Fiscal Year. The amount to be distributed shall be determined by the Board in consultation with the Company’s accountants
and shall be computed for each Member (i) as if such Member were taxable at the highest applicable federal, state and local income
Tax rates applicable to an individual domiciled in New York City, New York; provided that such rate may be increased or decreased
from time to time as reasonably determined by the Board to take into account increases or decreases in applicable federal, state
and local income tax rates for such location; (ii) as if allocations from the Company were, for such year, the sole source of income
and loss for such Member (but determined without regard to allocations of any Company items deductible by individuals only under
Code Section 212); and (iii) without regard to the carryover of items of loss, deduction and expense previously allocated by the
Company to such Member. The Board may cause the Company to make tax distributions to Members during any year to cover estimated
Taxes based on good-faith estimates of their respective tax liabilities attributable to Company tax items for such year.

(ii)           Any
distributions under Section 4.1(a)(i) to, and any Underpayment Amount required by law to be withheld or paid by the Company with
respect to or on behalf of or that is otherwise allocable to, a Member shall be treated as an advance and offset against and shall
reduce any amount otherwise distributable to a Member under Section 4.1(b). Promptly upon demand from the Company, a Member shall
pay to the Company an amount equal to any Underpayment Amount (to the extent not previously offset against any distributions under
Section 4.1(b) or otherwise reimbursed to the Company by the Member) that the Company has withheld or paid with respect to such
Member.

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(b)            Available
Funds Distributions.

(i)            First,
to the Preferred Members, in accordance with their respective Preferred Member Pro Rata Interests, until each Preferred Member
has received an amount equal to the Preferred Return of such Preferred Member;

(ii)           Second,
to the Preferred Members, pro rata in accordance with their respective amounts of Unreturned Preferred Capital, until the Unreturned
Preferred Capital of each Preferred Member equals zero;

(iii)          Third,
to the Common Members, in accordance with their respective Common Member Pro Rata Interests.

4.2            Restriction
on Distributions. Notwithstanding any other provision in this Agreement, no distribution may be made by the Company to any
Member in violation of the LLC Act.

4.3            Passed
Distributions. If any Member assigns all or part of its interest in the Company in accordance with Section 10.1 of this Agreement,
unless otherwise agreed by the assigning Member and the assignee, the assignee shall be entitled to receive, to the extent of the
interest in the Company assigned, the amount of any distributions required to be made to the assigning Member under Section 4.1
of this Agreement that were not actually made prior to the date of the assignment (“passed distributions”), when such
passed distributions are made by the Company.

ARTICLE
V

MEMBERS

5.1            Powers
of Members. No Member shall, in its capacity as a Member of the Company, transact any business for the Company or have the
power to act for or bind the Company, all such powers being vested solely and exclusively in the Board of Managers. The possession
or exercise by a Member of its rights under Section 6.6 or 12.3 hereof shall not constitute a violation of this Section. Except
as otherwise provided in this Agreement, Membership Interests held by Common Members and Preferred Members shall be identical in
every respect and shall be entitled to the same rights, benefits, duties and obligations.

5.2            Meetings
of Members.

(a)            Meetings
of the Members may be called by the Board of Managers and shall be called upon the written request of any Member not more than
once per fiscal quarter. The call shall state the location of the meeting and the nature of the business to be transacted. Notice
of any such meeting shall be given to all Members not less than five (5) days or more than thirty (30) days prior to the date of
such meeting. Members may vote in person, by proxy or by telephone at such meeting and may waive advance notice of such meeting.
A quorum shall be present at a meeting of Members if the holders of (i) a majority of the Preferred Member Pro Rata Interests and
(ii) a majority of the Common Member Pro Rata Interests are represented at the meeting in person or by proxy. Whenever the vote
or consent of Members is permitted or required under the Agreement, such vote or consent may be given at a meeting of the Members
or may be given in accordance with the procedure prescribed in this Section 5.2. Except as otherwise expressly provided in this
Agreement, the vote of the Members holding (a) a majority of the Preferred Member Pro Rata Interests and (b) a majority of the
Common Member Pro Rata Interests at a meeting of Members at which a quorum is present shall be required to constitute the act of
the Members (it being understood and agreed that any failure to vote by a Member or abstention from voting by a Member shall be
deemed in all cases to be a vote by such Member against such act).

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(b)            For
the purpose of determining the Members entitled to vote on, or to vote at, any meeting of the Members or any adjournment thereof,
the Board of Managers or the Member requesting such meeting may fix, in advance, a date as the record date for any such determination.
Such date shall not be more than thirty (30) days nor less than ten (10) days before any such meeting.

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

(d)            Each
meeting of Members shall be conducted by the Board of Managers or such other Person that the Board of Managers may appoint.

(e)            The
approval or consent of any Member required under this Agreement, except as expressly provided to the contrary in this Agreement,
may be given or withheld in the sole and absolute discretion of such Member. If the Board of Managers receives the necessary approval
or consent of the Members to such action, the Board of Managers shall be authorized and empowered to implement such action as approved
by the Members without further authorization by such Members; provided, however, that prior to the implementation of any such action,
the Board of Managers shall provide each Member with at least ten (10) days prior written notice thereof; provided, further, however,
that to the extent any such action to be taken by the Board of Managers deviates in any material respect from the action approved
by the Members, such action by the Board of Managers shall require the further approval of the Members.

(f)            Any
action required or permitted to be taken at any meeting of Members may be taken without a meeting, without prior notice, and without
a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the Members that would be necessary
to take such action at a meeting at which the holders of all Members entitled to vote on the action were present and voted. Prompt
notice of the taking of the action without a meeting by less than unanimous written consent, to the extent permitted hereunder,
shall be given to those Members who have not consented in writing and who, if the action had been taken at a meeting, would have
been entitled to notice of the meeting if the record date for such meeting had been the date that written consents signed by a
sufficient number of holders to take the action were delivered to the Company as provided in this section. The record date for
determining Members entitled to consent to action in writing without a meeting shall be the first date on which a signed written
consent setting forth the action taken or proposed to be taken is delivered to the Company by delivery to its principal place of
business.

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(g)            Members
may participate in and hold a meeting by means of conference telephone or similar communications equipment by means of which all
Persons participating in the meeting can hear each other, and participation in such meeting shall constitute attendance and presence
in person at such meeting, except where a Person participates in the meeting for the express purpose of objecting to the transaction
of any business on the ground that the meeting is not lawfully called or convened.

ARTICLE
VI

MANAGEMENT

6.1            Board
of Managers; Election.

(a)            Except
as otherwise specifically provided in this Agreement (including matters as to which the approval of the Members is required by
this Agreement), the business, property and affairs of the Company shall be managed by the Board of Managers. The Board of Managers
shall have all of the rights and powers of Managers as provided in the LLC Act and as otherwise provided by law and shall have
the full, complete and exclusive right, power and authority to do on behalf of the Company all things which, in its judgment, are
necessary or desirable to carry out the aforementioned duties and responsibilities as set forth in this Agreement or as required
by law, subject to the provisions of this Article VI. Approval by or action taken by the Board of Managers in accordance with this
Agreement shall constitute approval or action by the Company and shall be binding on the Members. No Manager, solely in his or
her capacity as such, shall have any power to act for, sign for or do any act that would bind the Company, unless authorized by
the Board of Managers with respect to a specific action.

(b)            During
the term of this Agreement, there shall be five (5) Managers of the Company, selected as set forth in Section 6.1(c) below. At
each meeting of the Members of the Company for the election of Managers, the Members shall vote all Membership Interests held by
them for the election of the five (5) persons nominated pursuant to Section 6.1(c).

(c)            During
the term of this Agreement, but subject to Section 6.1(h), Managers shall be nominated by the Members as follows: the nominees
for Managers shall be (i) three (3) persons nominated by Lorraine, and (ii) two (2) persons nominated by Regional. The three (3)
initial persons nominated by Lorraine are William J. Maggio, Justin M. Reich and Richard F. Gioia. The two (2) initial persons
nominated by Regional are Louis Joseph and Fred DiSanto.

(d)            During
the term of this Agreement, should a vacancy in the Board of Managers be caused by death, resignation, removal or any other reason,
each of the Members agrees to vote all Membership Interests owned by such Member as follows: (i) in the case of a vacancy of a
Manager previously nominated under Section 6.1(c)(i), the nominee selected by Lorraine, and (ii) in the event of a vacancy of a
Manager previously nominated under Section 6.1(c)(ii), the nominee selected by Regional.

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(e)            If
at any time any Member proposes to remove any Manager who was nominated by such Member as provided in Section 6.1(c) hereof, each
Member agrees to vote all of the Membership Interests owned by such Member for such removal if removal has been approved by the
Persons who would be entitled to fill a vacancy pursuant to Section 6.1(d) hereof.

(f)            Notwithstanding
any reference herein to votes cast at a meeting of the Members, Managers may be chosen for nomination by the Members acting by
written consent without a meeting, and Managers may be elected by the Members acting by written consent without a meeting to the
extent permitted by law; provided, however, that nothing in this Section 6.1(f) shall authorize the nomination, election or removal
of Managers other than in accordance with the provisions of this Section 6.1.

(g)            The
Board of Managers shall appoint a Chairman who shall preside over the meetings of the Board of Managers and carry out such other
responsibilities as are customarily exercised by a Chairman. The initial Chairman shall be William J. Maggio. The Chairman shall
have no greater authority than any other Manager.

(h)            Notwithstanding
anything to the contrary contained in this Agreement, in the event the Management Services Agreement is terminated for any reason
and all of the Membership Interests of the Lorraine Parties are redeemed in accordance with the provisions of Section 10.6 hereof,
Regional will be entitled to remove all of the Managers nominated by Lorraine from the Board of Managers, and Regional will have
the sole right to nominate and remove all of the members of the Board of Managers and to fill all vacancies occurring on the Board
of Managers for any reason, provided, however that the removal of the Managers nominated by Lorraine shall only become effective
upon the redemption of all of the Membership Interests of the Lorraine Parties in accordance with the provisions of Section 10.6,
and in the event the Management Services Agreement is terminated for any reason and the Lorraine Parties’ Membership Interests
are not redeemed in accordance with the provisions of Section 10.6 hereof, Lorraine shall retain the sole right to appoint and
maintain two (2) Managers on the Board of Managers and shall cause the third Manager appointed by Lorraine to resign from the Board,
and Regional will have the sole right to appoint and maintain three (3) Managers on the Board, provided, further that Lorraine
shall retain the right appoint three (3) Managers if the Lorraine Parties’ Membership Interests are not redeemed as a result
of any breach of the provisions of Section 10.6 by the Company or Regional. In any of the foregoing cases, any provision in this
Agreement (including, without limitation, Section 6.6) that requires the consent or approval of each of the Members will no longer
require the consent or approval of the Lorraine Parties.

6.2            Notice
of Board of Managers Meetings; Location; Waiver of Notice. Regular meetings of the Board of Managers will be held at least
once per calendar quarter at the offices of the Company at such time as may be fixed by the Board of Managers, or at such other
times and places as may be fixed by the Board of Managers, upon at least seven (7) days’ prior written notice to the Managers.
Special meetings of the Board of Managers may be called by the Chairman or by any Manager upon at least seven (7) days’ prior
written notice to the other Managers, which notice shall identify the purpose of the special meeting and the business to be transacted.
Notice of meeting may be waived before or after a meeting by a written waiver of notice signed by the Manager entitled to notice.
Managers may participate in any Board of Managers meeting by means of conference telephone or similar communications equipment
by which all persons participating in the meeting can hear each other. Such participation shall constitute presence in person at
the meeting. A Manager’s attendance at a meeting shall constitute waiver of notice unless the Manager states at the beginning
of the meeting his objection to the transaction of business because the meeting was not lawfully called or convened.

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6.3            Quorum;
Approvals; Written Action.

(a)            The
presence in person or by proxy of a majority of the entire Board of Managers (which must include at least one Manager nominated
by Regional) shall constitute a quorum for the transaction of business at a meeting of the Board of Managers; provided,
however, that if a quorum is not present at a meeting of the Board of Managers because no Manager nominated by Regional
is present at such meeting, a new meeting of the Board of Managers will be held upon proper notice, and it shall not be necessary
for a Manager nominated by Regional to be present in order for there to be a quorum at such new meeting. Each Manager shall have
a single vote. The vote of a majority of the Managers present at the time of the vote, if a quorum is present at that time, shall
constitute an act of and approval by the Board of Managers, except for such actions as to which a higher than majority vote is
required pursuant to the provisions of this Agreement. The Board of Managers may act without a meeting if the action taken is approved
in writing by the unanimous consent of all Managers. The Board of Managers shall cause written minutes to be prepared of all action
taken by the Board of Managers and shall cause a copy thereof to be delivered to each Manager.

(b)            Subject
to the provisions of Section 6.6 hereof, the Board of Managers may enter into, amend or modify any agreement, understanding or
arrangement or otherwise enter into any transaction (including loans) in which any Member or any Affiliate of any Member has a
direct or indirect interest, provided that such agreement, understanding or arrangement shall be on terms which are no less favorable
to the Company than those which would have been obtained if such agreement, understanding or arrangement had been entered into
with an unrelated third party.

6.4            Powers,
Rights and Duties of the Board of Managers. Subject to the provisions of Section 6.6 hereof, the Board of Managers shall have
the full, exclusive and complete authority and discretion in the management, control and operation of the business of the Company
and shall make all decisions affecting the business of the Company. Subject to the provisions of Section 6.6 hereof, the Board
of Managers shall have all the rights, powers and duties generally conferred upon managers of a limited liability company by law
and that are necessary, advisable or consistent with the purposes of the Company and the management of Company affairs in accordance
with this Agreement, including but not limited to the following:

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(a)            To
make, execute, acknowledge, deliver, file and/or record such certificates, instruments and documents as may be required by, or
which the Board of Managers may deem appropriate under, the laws or regulations of any state, municipality or government in connection
with the business and affairs of the Company;

(b)            To
supervise the business of the Company and to expend Company funds in furtherance of the purposes of the Company;

(c)            To
consummate any Acquisition with a purchase price less than $500,000;

(d)            To
make investments or enter into a joint venture or partnership with an investment or contribution amount less than $500,000 per
transaction or series of related transactions;

(e)            To
acquire and enter into any contract of insurance necessary and proper for the protection of the Company, for the conservation of
its assets, or for any other purpose convenient or beneficial to the Company;

(f)            To
employ attorneys and accountants, at the Company’s expense, to advise and perform services for the Company, and to designate
and change from time to time the agent for acceptance of service of process of the Company; and

(g)            To
file such reports and take such action as may be required by any governmental authority having jurisdiction over the business of
the Company.

6.5            Compensation
of Managers. No Manager shall be compensated for his services as a Manager but each Manager and Observer (as defined below)
shall be reimbursed for his reasonable and necessary out-of-pocket expenses incurred in connection with attending meetings of the
Board of Managers.

6.6            Limitations
on Actions. Notwithstanding any other provision of this Agreement, neither the Company nor the Board of Managers on behalf
of the Company shall, without the prior written consent of each of the Members:

(i)            cause
the Company to lose its status as a partnership for United States federal income tax purposes or cause the Company to be considered
a publicly traded partnership under §7704(b) of the Code;

(ii)           settle,
or confess a judgment against the Company in connection with, any threatened or pending legal action;

(iii)          amend
the Management Services Agreement;

(iv)          enter
into or modify any agreement or transaction with any Covered Person;

(v)           create,
authorize, issue or sell (A) any Membership Interests or other equity interests of the Company, (B) any obligation or security
convertible into or exchangeable for any Membership Interests or other equity interests of the Company or (C) any options, warrants
or other rights to acquire any Membership Interests or other equity interests of the Company;

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(vi)          make
any distribution of Company property to the Members other than in cash;

(vii)         file
or consent to the filing of any petition, either voluntary or involuntary, under any applicable insolvency, bankruptcy, liquidation
or reorganization statute, or make any assignment for the benefit of creditors;

(viii)        effect
the dissolution or liquidation of the Company;

(ix)            incur,
assume, modify or refinance any indebtedness, or any guarantee thereof (specifically excluding any working capital line of credit
established by the Company from time to time (including as contemplated by clause (B) below) up to an aggregate principal amount
of $500,000, other than (A) trade credit incurred in the ordinary course of business and (B) the indebtedness of the Company incurred
on or about the date hereof in connection with the purchase of the Operations and the assets of BRJ;

(x)           enter
into or consummate any Acquisition with a purchase price equal to or in excess of $500,000;

(xi)          make
any investment or enter into any joint venture or partnership with an investment or contribution amount equal to or in excess of
$500,000 per transaction or series of related transactions;

(xii)         subject
to the provisions of Section 6.7 below, enter into or consummate any Company Sale;

(xiii)        subject
to the provisions of Section 6.7 below, transfer any assets having a fair market value equal to or in excess of $500,000 per transaction
or series of related transactions, other than in the ordinary course of business;

(xiv)        subject
to the provisions of Sections 6.7 and 10.6 below, purchase, redeem, retire or otherwise acquire any equity interests of the Company
or any obligation or security convertible or exchangeable into, or exercisable for, any such equity interests;

(xv)         amend
or modify the purpose or Operations of the Company as set forth in Section 1.4;

(xvi)        materially
change or modify any accounting or tax practice or procedure of the Company;

(xvii)       create
a subsidiary of the Company;

(xviii)      admit
a new member to the Company, other than a Permitted Transferee;

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(xix)         amend,
modify, supplement, alter, terminate, waive or repeal any provision in the Certificate or this Agreement that would adversely affect
the rights of Preferred Members or Common Members (in each case including in connection with any merger, consolidation, business
combination or other extraordinary corporate transaction); or

(xx)      
   increase or decrease the authorized number of Managers constituting the Board of Managers.

6.7            Consent
to Company Sale.

(a)            In
the event that, on or after November 1, 2018, Lorraine identifies a Qualified Offer, Lorraine shall provide Regional a fully executed
letter of intent for such Qualified Offer (which shall include the proposed form and amount of consideration and other material
terms and conditions of the Company Sale) and Regional shall have a period of ten (10) Business Days (the “Consent Notice
Period”) to notify Lorraine in writing either:

(i)            that
Regional will provide its consent to the Company Sale described in the Qualified Offer under Sections 6.6(xii), 6.6(xiii) and/or
6.6(xiv) above (a “Consent Notice”);

(ii)           that
Regional will withhold its consent to the Company Sale set forth in the Qualified Offer under Section 6.6(xii), 6.6(xiii) and/or
6.6(xiv) above (a “Consent Withhold Notice”) (it being understood that a failure by Regional to provide a Consent
Notice by the expiration of the Consent Notice Period shall be deemed to be notice that Regional will provide consent to the Company
Sale described in the Qualified Offer); or

(iii)          that
Regional will purchase, or cause the Company to purchase, all of Lorraine’s Membership Interests and BRJ Partners’
Membership Interests (the “Repurchase Right”) for the value Lorraine and BRJ Partners (collectively, the “Lorraine
Parties”), respectively, would receive for their Membership Interests in connection with closing of the Qualified Offer
pursuant to Section 8.6 and the other applicable provisions hereof (a “Repurchase Notice”).

If Regional issues a Repurchase Notice,
Regional shall, within thirty (30) days of the issuance thereof (the “Repurchase Period”) pay or cause the Company
to pay the Lorraine Parties the amount the Lorraine Parties would have, respectively, received for their respective Membership
Interests pursuant to Section 8.6 and the other applicable provisions hereof had the Qualified Offer closed in accordance with
the terms thereof (the “Repurchase Price”). In addition, Regional shall pay any reasonable, documented, out-of-pocket
expenses of, and/or break-up fees (not exceeding two percent (2%) of the purchase price for the Company Sale set forth in the Qualified
Offer) payable to the seller to the extent required by the transaction documents of the Qualified Offer, promptly, upon request
therefor. Once exercised, the Repurchase Right shall be irrevocable and Regional shall have the absolute and unconditional obligation
to pay, or cause the Company to pay, the Lorraine Parties the Repurchase Price. If the Lorraine Parties have not been paid the
amount of the Repurchase Price within thirty (30) days of the date of the Repurchase Notice, the Lorraine Parties shall also become
entitled to receive, in addition to the Repurchase Price, (i) an amount equal to the accrued interest on the Repurchase Price at
the Default Rate (compounded quarterly), measured from the date due to and including the date of payment in full of the Repurchase
Price and such additional accrued amount, (ii) a penalty equal to 3% of the Repurchase Price and (iii) an amount equal to the amount
of any reasonable, documented, out-of-pocket expenses, including, without limitation, reasonable attorneys’ fees incurred
to enforce the collection of the Repurchase Price and any amount of default interest accrued thereon. The Lorraine Parties will
take, and cause the Managers nominated by Lorraine to take, all actions and will do, and cause the Managers nominated by Lorraine
to do, all things necessary, proper or advisable to consummate the repurchase of the Lorraine Parties’ Membership Interests
in accordance with this Section 6.7. The repurchase of the Lorraine Parties’ Membership Interests will be subject to (x)
the resignation of all of Lorraine’s nominees from the Board of Managers, (y) the termination of any and all agreements between
the Company, on the one hand, and any of the Lorraine Parties or any of their respective Affiliates, on the other hand, including
the Management Services Agreement, and (z) the execution by the Company, on the one hand, and the Lorraine Parties, on the other
hand, of purchase documentation (containing customary representations and warranties from the Lorraine Parties regarding such sale
(including non-contravention, and ownership of, and authority to sell, such Membership Interests free and clear of all liens, encumbrances
and adverse claims of any nature whatsoever)), a non-competition and non-solicitation agreement, and a general release and discharge
of the Company, its Affiliates and all present and former directors, officers, managers, members, agents, representatives, employees,
their respective successors and assigns and their respective direct or indirect equity holders, each in form and substance reasonably
satisfactory to Regional and Lorraine.

    	21

     

    

(b)            During
the Repurchase Period, Lorraine hereby agrees to conduct the Operations in the ordinary course of business consistent with the
historical practices of the Company and to consult with, and cause the Managers designated by Lorraine to consult with, Regional
and to obtain Regional’s consent on any material changes related to the Operations. Unless extended in writing by Lorraine,
the rights conferred on Regional under this Section 6.7(b) shall automatically terminate thirty (30) days after the issuance of
a Repurchase Notice.

(c)            From
and after the expiration of the Consent Notice Period, if Regional has not exercised its Repurchase Right or has not delivered
a Consent Withhold Notice (the “Sale Process Period”), the Board of Managers and the Company shall commence
negotiations and activities directed at closing the Company Sale described in the Qualified Offer (the “Sale Process”).
Throughout the Sale Process, Lorraine will provide Regional with periodic updates about the status of the Sale Process and the
Company Sale, such updates to include notifications concerning any material developments with respect to the negotiation of the
Company Sale. In addition, from and after the commencement of the Sale Process Period through the closing of the Company Sale,
(i) in the case of a Company Sale structured as a sale of securities or other equity interests, Regional shall have the obligation
to sell its Membership Interests, free and clear of any liens, encumbrances or adverse claims of any nature, on the terms and conditions
of the Company Sale and (ii) Regional shall vote for, consent to and raise no objections to such Company Sale and shall take such
other necessary or desirable actions in connection with the consummation of such Company Sale as reasonably requested by Lorraine,
including executing and delivering such documents as are necessary or appropriate to effectuate the Company Sale and which the
Lorraine Parties have also agreed to execute and deliver, and shall not bring any claim against the Company or any of its Affiliates
or Lorraine, the Lorraine Parties or any of their Affiliates, or any of their respective officers, directors, members, managers,
partners, stockholders, employees, agents, advisors or representatives with respect to the Company Sale, or contest or seek to
enjoin the Company Sale, or seek appraisal, dissenters or other similar rights with respect thereto. If any Member is given an
option as to the form of consideration to be received, each Member of the same class or series will be given the same option.

    	22

     

    

(d)            Notwithstanding
anything to the contrary contained in the foregoing:

(i)            for
a period of thirty (30) days after the commencement of the Sale Process Period, Regional may issue a Repurchase Notice. If Regional
issues a Repurchase Notice after the commencement of a Sale Process, the terms set forth in Section 6.7(a)(iii) above shall apply,
provided, however that the Repurchase Price shall be due and payable within five (5) Business Days of the issuance of the
Repurchase Notice.

(ii)           if
any of the material terms of the proposed Company Sale are re-negotiated or changed in any material respect that adversely affects
the value of the Qualified Offer to the Members, and if Lorraine desires to pursue such Company Sale, then Lorraine must deliver
to Regional a revised Qualified Offer, triggering a new Consent Notice Period with respect to such revised Qualified Offer, and
the provisions of this Section 6.7 will apply anew to such revised Qualified Offer (and any Sale Process then being conducted with
respect to any prior Qualified Offer will be terminated).

(iii)          no
Member will be obligated to execute and deliver any document which requires such Member to be obligated for any indemnification
obligations other than (A) an obligation to join on a pro rata basis (but not on a joint and several basis), based on its respective
share of the aggregate proceeds received by the Members in such Company Sale, in any indemnification obligations and (B) indemnification
with respect to representations and warranties given by such Member regarding such Member’s ownership of Membership Interests
and its ability to convey title thereto free and clear of liens, encumbrances or adverse claims; provided, however, that
the aggregate indemnification obligations of a Member shall not exceed the amount of net proceeds actually received by such Member
in such Company Sale.

(e)            The
terms and provisions of this Section 6.7 shall not constitute a proposed transfer for the purposes of Sections 10.4 or 10.5 and
the provisions set forth in those Sections of this Agreement and the time periods set forth therein shall not apply upon Lorraine’s
initiation of a Company Sale pursuant to a Qualified Offer.

6.8            Executive
Officers.

(a)            The
Board of Managers shall appoint a President (the “President”), who will manage the day to day affairs of the
Company. The initial President shall be William A. Harfosh. In the event of his death, retirement, resignation, termination or
inability to serve, a successor President shall be appointed by the Board of Managers.

(b)            The
Board of Managers may appoint a Chief Executive Officer, Executive Vice President, one or more Vice Presidents, a Treasurer and
a Secretary, and may appoint one or more Assistant Secretaries and/or Assistant Treasurers (together with the President, each an
“Executive Officer”) with such duties as may be established by the Board of Managers.

    	23

     

    

(c)            Each
officer shall hold office until his or her successor shall be duly appointed and shall qualify or until his or her death or until
he or she shall resign or shall have been removed in the manner hereinafter provided. Any number of offices may be held by the
same Person. Any officer may be removed as such, either with or without cause, by the Board of Managers. Designation of an officer
shall not of itself create contract rights. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

6.9            Partnership
Representative. The partnership representative (the “Partnership Representative”) shall act (i) with respect
to a Transition Year, as the “tax matters partner” within the meaning of Code Section 6231(a)(7) (as in effect with
respect to the Transition Year), (ii) with respect to a Non-Transition Year, as the “partnership representative” within
the meaning of Code Section 6223 (as in effect with respect to the Non-Transition Year) and/or (iii) with respect to any Fiscal
Year for purposes of a state tax, in a capacity similar to any of the foregoing positions for purposes of the state tax. No more
than one Person at any time may serve as the Partnership Representative with respect to the same tax in the same Fiscal Year. No
Person shall be selected as the Partnership Representative with respect to a Fiscal Year, unless (x) for federal income tax purposes
in the case of a Transition Year, such Person is qualified to serve as the “tax matters partner” within the meaning
of Code Section 6231(a)(7) (as in effect with respect to the Transition Year), (y) for federal income tax purposes in the case
of a Non-Transition Year, such Person is qualified to serve as the “partnership representative” within the meaning
of Code Section 6223 (as in effect with respect to the Non-Transition Year) and (z) in the case of any state tax for any Fiscal
Year, such Person is qualified to serve in the requisite capacity under the state tax. During any time that a Partnership Representative
is not also a Manager, the Partnership Representative shall act at all times only under the supervision of and at the direction
of the Board and, except as otherwise provided in this Agreement, the Partnership Representative shall not and shall not have the
authority to bind the Company, any Manager, any Member or any officer in any proceeding.

6.10            Board
Observers. Each of Brian Hopkins, Jeff Anderson and Carl Grassi shall be entitled to attend each meeting of the Board of Managers
as an observer (each, an “Observer”). The Company shall provide to each Observer copies of all notices, minutes,
consents and other materials, financial and otherwise, provided to the Board of Managers. Each Observer may, at his option, attend
any meeting of the Board of Managers by means of conference telephone or similar communications equipment, but shall not have the
right to vote with the Board on any matter.

ARTICLE
VII

OPERATION OF THE COMPANY

7.1            Books
of Account. The Company shall maintain its books and records on a full accrual basis of accounting in accordance with generally
accepted accounting principles consistently applied.

    	24

     

    

7.2            Reports.

(a)            Within
thirty (30) days after the end of each quarter of the Fiscal Year, there shall be prepared and delivered to each Member an unaudited
balance sheet, income statement and statement of cash flows of the Company showing the financial position of the Company as of
the end of such quarter, its results of operations during such quarter and for the portion of the Fiscal Year then ended, and its
cash flows for the portion of the Fiscal Year then ended, and stating in comparative form the figures as of the end of and for
the comparable periods in the prior Fiscal Year.

(b)            Within
seventy-five (75) days after the end of each Fiscal Year, the Company shall deliver to each Member (i) financial statements for
the Company as of the end of and for such Fiscal Year, audited by the Company’s independent certified public accountants,
consisting of a balance sheet, income statement, and statements of cash flows and members’ equity as of the end of and for
such Fiscal Year, showing the computation and allocation of Net Income and Net Losses and stating in comparative form the figures
as of the end of and for the prior Fiscal Year, (ii) the amount of the distributions to the Members and the effect of such distributions
on the balance sheet of the Company, and (iii) a statement of such Member’s Capital Account, including such Member’s
allocation and share of Net Income and Net Loss and any special allocations for such Fiscal Year.

(c)            As
soon as available, but in any event not later than thirty (30) days prior to the beginning of each Fiscal Year of the Company,
the business plan and projections of the Company for such Fiscal Year and a capital budget and operating budget, calculated monthly,
for such Fiscal Year, each as approved by the Board of Managers, and any updates or revisions as soon as available.

(d)            From
time to time, and promptly, such additional information and financial data regarding the results of operations, financial condition,
business or affairs of the Company, which any Member may reasonably request.

The annual and quarterly financial information
referred to in paragraphs (a) and (b) above will be prepared in accordance with United States generally accepted accounting principles
consistently applied and will be prepared on a consolidated basis, to the extent applicable.

7.3            Access
to Books. The books and records of the Company shall be available to each Member or its representatives for inspection and
audit (at its own expense) during normal business hours at the principal office of the Company. The Board of Managers shall request
the Company’s independent certified public accountants to cooperate in any such inspection and audit and to provide any of
their work papers requested in connection therewith, all at the cost and expense of such Member.

7.4            Bank
Accounts. The operating bank accounts of the Company shall be maintained in such bank or banks as may be designated by the
Board of Managers and withdrawals from said accounts shall be made as the Board of Managers may determine. There shall be no commingling
of the moneys or funds of the Company with moneys or funds of any Member or any other Person (other than with moneys or funds of
corporations or other entities wholly owned by the Company).

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7.5            Tax
Filings, Elections and Cooperation.

(a)            Except
as otherwise set forth herein, the Company shall properly prepare and timely file or shall cause to be properly prepared and timely
filed all tax returns required to be filed for or on behalf of the Company, which tax returns shall be prepared, except as otherwise
provided herein, in such manner (including, but not limited to, the making of any election or the taking of any position, subject
to the provisions of Section 6.6) as the Board of Managers may determine in good faith to be in the best interests of the Members.
Unless otherwise required by applicable law, the Company shall use the Fiscal Year as the tax period on all income tax returns.

(b)            The
Company shall (i) use reasonable efforts to cause to be delivered within seventy-five (75) days after the end of each Fiscal Year
(but in no event later than ninety (90) days following each such Fiscal Year), a Schedule K-1 with respect to each such Fiscal
Year to each Person that was a Member at any time during each such Fiscal Year; and (ii) make available to each Member such other
information as may be necessary for the preparation of any tax return for or including such Member or the making of any estimated
tax payment for on behalf of such Member (or if such Member is a flow-through entity for federal income tax purposes, its direct
or indirect owners).

(c)            With
respect to each Non-Transition Year, to the maximum extent permitted by the Code, the Treasury Regulations and other applicable
law, the Company shall make or cause to be made and shall maintain or cause to be maintained the following elections:

(i)            in
the case of any Non-Transition Year with respect to which the Company is eligible to make an election under Code Section 6221(b),
an election to apply Code Section 6221(b), and

(ii)           in
the case of any Non-Transition Year with respect to which the Company fails or is ineligible to make an election under Code Section
6221(b), an election to apply Code Section 6226.

(d)            With
respect to each Non-Transition Year, subject to the provisions of Section 6.6, the Company shall take and shall cause to be taken
any and all actions (including, but not limited to, the providing of all notices required under Code Section 6221(b)(1)(E) and
all statements required under Code Section 6226(a)(2)) necessary to allow the making and maintenance of any election in accordance
with Section 7.5(c). As determined by the Board in good faith, the Company may apply any reasonable method for the purpose of determining
(i) a Member’s share of any adjustment described in Code Section 6226(a)(2) (including, but not limited to, for the purpose
of providing any statement described in Code Section 6226(a)(2)) or for any other tax purpose or (ii) the extent to which any Underpayment
Amount has been withheld or paid by the Company with respect to or on behalf of or is otherwise attributable to a Member. Any determination
under the preceding sentence shall be final and binding on the Company and all Members and neither the Company nor any Member shall
take any position for any purpose that is inconsistent with such determination.

    	26

     

    

(e)            To
the extent permitted by a state tax, the Company shall take such actions as may be reasonably necessary to reduce, prevent or otherwise
mitigate the Company’s liability for any Underpayment Amount under the state tax, including, but not limited to, making elections
similar to and in the same order of preference as the elections described in each of Section 7.5(c) and Section 7.5(d).

(f)            As
determined by the Board in its reasonable discretion, the Company may elect in a timely manner pursuant to Code Section 754 and
pursuant to any corresponding provisions of applicable state and local tax laws to adjust the bases of the assets of the Company
pursuant to Code Sections 734 and 743 and pursuant to any corresponding provisions of applicable state and local tax laws.

(g)            Neither
the Company, any Manager, any officer, nor any Member shall take any action (including, but not limited to, the filing of any tax
return or the making of any election on or in connection with any tax return) or permit or cause any action to be taken by or on
behalf of the Company that would cause or otherwise result in:

(i)            the
classification of the Company or any of its Affiliates as an association taxable as a corporation for any income tax purpose,

(ii)           the
exclusion of the Company from the application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or any similar
provisions of other applicable tax law,

(iii)          the
taking by any Member of any position for any purpose that is inconsistent with the treatment of such position on any U.S. federal
income tax return of the Company or any of its Affiliates,

(iv)    
     in the case of a Transition Year, the application of all or any portion of any of Code
Sections 6221 through 6241, as in effect with respect to any Non-Transition Year, and

(v)          in
the case of a Non-Transition Year, the amendment, revocation, lapse or termination of any election under Code Section 6221(b) or
Code Section 6226, each as in effect with respect to the Non-Transition Year.

(h)            When
and as requested by the Company, each Member, at the Member’s own expense, shall preserve and furnish to the Company all
documents and information (including, but not limited to, any change in mailing address or other contact information, any change
in residency for any tax purpose, and any social security, employer identification or other taxpayer identification number), and
shall take such other action (including, but not limited to, a Member’s filing of one or more amended tax returns) as may
be necessary to enable the Company (or any Person on behalf of the Company) to (i) prepare, amend and/or file any tax return (including,
but not limited to, any making, amendment, rescission or revocation of any election on or with respect to any tax return, subject
to the provisions of Section 6.6), (ii) eliminate, settle, limit, reduce, modify or otherwise determine any liability for any Underpayment
Amount (including, but not limited to, any “imputed underpayment amount” under Code Section 6225(c)), (iii) register
to do business, collect tax, or comply with any similar prerequisite to doing business or conducting any other activity in any
jurisdiction, or (iv) pursue, defend, settle or otherwise respond to any proceeding. In the case of any Non-Transition Year with
respect to which an election under Code Section 6226 (or under any other similar or corresponding provisions of any state tax)
is or will be in effect, each Member shall comply with all provisions of Code Section 6226 (and any other similar or corresponding
provisions of any state tax), including, but not limited to, taking such Member’s share of any adjustment under Code Section
6226 into account on any separate tax return of such Member, the amendment of all tax returns affected by such adjustment, and
the payment of any increased or additional tax resulting therefrom.

    	27

     

    

(i)            No
Member shall take any action (including, but not limited to, converting from an entity described in Code Section 6221(b)(1)(C)
to an entity not described in Code Section 6221(b)(1)(C) and any gift, bequest or other Transfer) that, either alone or in conjunction
with any other action or other circumstance, can or will revoke, amend, terminate or otherwise adversely affect any election under
Code Section 6221(b) or the Company’s present or future ability or eligibility to make any election under Code Section 6221(b).

7.6            Partnership
Representative.

(a)            This
Section 7.6 shall only apply with respect to Non-Transition Years and to any tax proceedings for any Non-Transition Year.

(b)            The
Partnership Representative shall serve as the “partnership representative” within the meaning of Code Section 6223
and, if and to the extent permitted by an applicable state tax, as the “partnership representative” or “tax matters
partner” or in any other similar capacity for purposes of such state tax. If the Partnership Representative for federal income
tax purposes cannot also serve in the capacity of a “partnership representative” or “tax matters partner”
or in any other similar capacity for purposes of a state tax, the Partnership Representative designated by the Board for purposes
of such state tax shall act in such capacity for purposes of such state tax (and only for purposes of such state tax).

(c)            Within
ten (10) days after the receipt of any notice from the Internal Revenue Service (or other tax authority) relating to any tax proceeding,
the Company shall mail or cause to be mailed a copy of such notice to each Member. Thereafter, the Company shall deliver or cause
to be delivered to each Member in writing (or in such other form as may be necessary to preserve any applicable attorney-client
privilege) a report setting forth in reasonable detail the status of the tax proceeding, no later than ten (10) days after the
close of each calendar quarter or an occurrence of any significant change, progress or other development in the tax proceeding
(including, but not limited to, copies of all material written communications relating to the tax proceeding that the Company,
any Manager or any officer may send or receive).

(d)            Neither
the Company, any Manager nor any officer, either directly or through any of their respective Affiliates, shall take any material
direct or indirect action or make any material decision with respect to any tax proceeding, any of Code Sections 6221 through 6241
(as in effect with respect to any Non-Transition Year) or any of Code Sections 6221 through 6234 (as in effect with respect to
any Transition Year), unless (i) the Company has first given the Members written notice of the contemplated action or decision
at least ten (10) business days prior to the taking such action and (ii) the Company has received the written consent of each of
the Members to such contemplated action or decision. Neither the Company, any Manager nor any officer shall bind any Member to
a settlement agreement with respect to any tax without first obtaining the written consent of such Member.

    	28

     

    

(e)            To
the extent permitted by a state tax, the Company shall take such actions as may be reasonably necessary to reduce, prevent or otherwise
mitigate the Company’s liability for any Underpayment Amount under the state tax, including, but not limited to, making elections
similar to and in the same order of preference as the elections described in each of Section 7.5(c) and Section 7.5(d).

7.7            Tax
Matters Partner for Transition Years.

(a)            This
Section 7.7 shall apply only with respect to Transition Years and to any tax proceedings for any Transition Year. All Code sections
referenced in and other applicable tax law otherwise relating to implementation of this Section 7.7 shall be applied as in effect
with respect to a Transition Year.

(b)            The
Partnership Representative shall serve as the “tax matters partner” within the meaning of Code Section 6231(a)(7) and,
if and to the extent permitted by an applicable state tax, as the “partnership representative” or “tax matters
partner” or in any other similar capacity for purposes of such state tax. If the Partnership Representative for federal income
tax purposes cannot also serve in the capacity of a “partnership representative” or “tax matters partner”
or in any other similar capacity for purposes of a state tax, the Partnership Representative designated by the Board for purposes
of such state tax shall act in such capacity for purposes of such state tax (and only for purposes of such state tax).

(c)            Within
ten (10) days after the receipt of any notice from the Internal Revenue Service (or other tax authority) relating to any tax proceeding
for a Transition Year, the Company shall mail or cause to be mailed a copy of such notice to each Member and shall take such action
as may be necessary to cause each Member to become a “notice partner” within the meaning of Code Section 6231(a)(8).
Thereafter, the Company shall deliver or cause to be delivered to each Member in writing (or in such other form as may be necessary
to preserve any applicable attorney-client privilege) a report setting forth in reasonable detail the status of the tax proceeding,
no later than ten (10) days after the close of each calendar quarter or an occurrence of any significant change, progress or other
development in the tax proceeding (including, but not limited to, copies of all material written communications relating to the
tax proceeding that the Company, any Manager or any officer may send or receive).

(d)            Neither
the Company, any Manager nor any officer, either directly or through any of their respective Affiliates, shall take any material
direct or indirect action or make any material decision with respect to any tax proceeding, any of Code Sections 6221 through 6241
(as in effect with respect to any Non-Transition Year) or any of Code Sections 6221 through 6234 (as in effect with respect to
any Transition Year), unless (i) the Company has first given the Members written notice of the contemplated action or decision
at least ten (10) business days prior to the taking such action and (ii) the Company has received the written consent of each of
the Members to such contemplated action or decision. Neither the Company, any Manager nor any officer shall bind any Member to
a settlement agreement with respect to any tax without first obtaining the written consent of such Member.

    	29

     

    

7.8            Survival.
If a Person, in whole or in part, makes a Transfer of a Membership Interest or otherwise ceases to be a Member, then such Person
shall remain obligated and subject to the terms and conditions of each of Sections 7.5 through 7.8, along with any other provisions
of this Agreement necessary or ancillary to implementation of any of Sections 7.5 through 7.8, in the same manner as if such Transfer
or cessation never occurred.

ARTICLE
VIII

DISSOLUTION; CONTINUATION OF COMPANY

8.1            Dissolution
of the Company.

(a)            The
happening of any one of the following events shall cause the dissolution of the Company, in which event the Company shall be wound
up in accordance with the provisions of this Article VIII:

(i)            the
sale, transfer, assignment or other disposition of all or substantially all of the Operations;

(ii)           the
agreement in writing by all of the Preferred Members to dissolve the Company; or

(iii)          the
entry of an order of a court of competent jurisdiction dissolving the Company.

(b)            In
the event of the dissolution of the Company for any reason, the Board of Managers shall proceed promptly and continue with reasonable
expedition to wind up the affairs of the Company. The Members shall continue to share Net Income and Net Losses during the period
of winding up in accordance with the provisions of Article III hereof and to receive distributions as provided in Section 8.3 hereof.
The Board of Managers shall, acting in good faith, determine the time, manner and terms of any sale or sales of Company property
pursuant to such winding up, having due regard for the activity and condition of the relevant market and general financial and
economic conditions (subject, in the case of any dissolution of the Company in circumstances which constitute a Liquidation, to
the provisions of Section 8.3 hereof).

    	30

     

    

8.2            Continuation. The death, legal incapacity, retirement, resignation, termination of employment, expulsion, bankruptcy or dissolution of a
Member shall not cause a dissolution of the Company and in all such events, the Company shall continue. Upon the happening of such
an event with respect to any Member, all rights of a Member under this Agreement, including the rights to share in the Net Income
and Net Losses of the Company, to receive distributions of Company funds and to assign a Membership Interest, shall devolve on
its successors and assigns, subject to the terms and conditions of this Agreement; provided, however, in no event shall any of
such successors or assigns (other than a Permitted Transferee) become a substitute Member, except with the consent of the Members
as provided in Section 6.6 hereof and the Board of Managers as provided in Section 10.1(b) hereof.

8.3            Distributions
on Liquidation.

(a)            Notwithstanding
any other provision of this Agreement, in the event of a Liquidation, the Company shall make liquidating distributions within the
time period prescribed in, and otherwise in accordance with, the Treasury Regulations under Section 704(b) of the Code. After any
Net Income or Net Losses have been allocated pursuant to Section 3.1 and after paying or making reasonable provision for the payment
of all debts, liabilities and obligations of and all claims against the Company, all expenses of winding up, and subject to the
right of the Board of Managers to set up such reserves as it may deem reasonably necessary for any contingent or unforeseen liabilities
or obligations of the Company, the remaining assets of the Company shall be distributed, subject to the provisions of Section 8.3(b)
hereof, in cash or property, or both, in the discretion of the Board of Managers, to the Members in the same manner as set forth
in Section 4.1(b).

(b)            In
the case of any Liquidation, the Company shall have the right (in addition to any other rights it may have under this Agreement,
the LLC Act or otherwise), to make any liquidating distributions in cash, Company notes or property, or any combination thereof,
in the discretion of the Board of Managers; provided that the ratio of cash, notes or other property included as part of any distribution
made to Members under this Section 8.3 shall be the same for all Members; and provided, further, that any distribution of notes
issued by the Company to any Member hereunder shall bear interest at the rate prescribed by the Treasury Regulations under Section
704(b) of the Code and shall be on terms consistent with the Treasury Regulations under Section 704(b) of the Code.

(c)            To
the extent that at the time of payment of any distributions under Section 8.3(a), the amount to be distributed is insufficient
to satisfy the entire amounts described in Section 8.3(a), then such funds that are available for distribution shall be distributed
in accordance with the priorities set forth in Section 8.3(a). If more than one Member shall be entitled to equal priority with
respect to the amount of any distribution, then such funds available for distribution with respect to such priority shall be applied
to each Member in proportion to the amount payable to such Member with respect to such priority.

8.4            Termination.
The Board of Managers shall have the authority to execute and record any and all documents required in connection with the dissolution,
winding up and Termination of the Company.

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8.5            Final
Statement. Within a reasonable time following Termination, the Board of Managers shall cause to be supplied to each Member
a statement setting forth the assets and liabilities of the Company as of the date of Termination and the distributions made or
to be made to each Member as of such date and shall prepare and deliver to each Member a report setting forth in sufficient detail
all such information and data with respect to the business transactions effected by or involving the Company during the last Fiscal
Year of the Company as shall enable each Member to prepare all its tax returns in accordance with the laws, rules and regulations
then prevailing.

8.6            Company
Sale. If a Company Sale shall occur, the Company shall cause to be paid to the Members (or their equity holders, as applicable)
amounts equal to the amounts they would be entitled to receive pursuant to, and in accordance with, Section 8.3 hereof if the Company
liquidated on the date of such Company Sale and had assets equal to the aggregate consideration payable or deliverable in connection
with such Company Sale.

ARTICLE
IX

LIABILITY, EXCULPATION AND INDEMNIFICATION

9.1            Liability.

(a)            Except
as otherwise provided by this Agreement or the LLC Act, the debts, obligations and liabilities of the Company, whether arising
in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Covered Person shall
be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Covered Person.

(b)            Except
as otherwise expressly required by this Agreement or the LLC Act, a Member, in its capacity as Member, shall have no liability
in excess of (i) its Capital Contributions made to the Company, (ii) its obligation to make other payments expressly provided for
in this Agreement, and (iii) the amount of any distributions distributed to it in violation of applicable law. Any deficit in a
Member’s Capital Account does not have to be restored and shall not be treated as an obligation of the Member for any purpose
whatsoever.

9.2            Exculpation.

(a)            No
Covered Person shall be liable to the Company or any other Covered Person for any loss, damage or claim incurred by reason of any
act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed
to be within the scope of authority conferred on such Covered Person by this Agreement, except that a Covered Person shall be liable
for any such loss, damage or claim incurred by reason of such Covered Person’s actual fraud or willful misconduct with respect
to the Company.

(b)            A
Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions,
reports or statements presented to the Company by any Person as to matters the Covered Person reasonably believes are within such
other Person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Company,
including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses,
or any other facts pertinent to the existence and amount of assets from which distributions to Members might properly be paid.

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(c)            No
Manager shall be liable to any Member for (i) any action lawfully taken or omitted to be taken by him in accordance with this Agreement,
or (ii) any action taken or omitted to be taken by him at, and in accordance with, the direction of the required Membership Interests
of the Members.

9.3            Duties
and Liabilities of Covered Persons.

(a)            To
the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto
to the Company or to any other Covered Person, a Covered Person acting under this Agreement shall not be liable to the Company
or to any other Covered Person for its good faith reliance on the provisions of this Agreement. Notwithstanding anything to the
contrary in this Agreement or the LLC Act, to the fullest extent permitted by law, the Company and the Members hereby eliminate
any and all fiduciary duties stated or implied by applicable law or equity that any Covered Person may have (in such capacity)
to any other Covered Person (in such capacity) or the Company (including in connection with the exercise of rights hereunder).

(b)            The
Members expressly acknowledge and agree that no Covered Person is under any obligation to consider the separate interests of any
other Covered Person in deciding whether to cause the Company to take (or omit to take) any actions, and that no Covered Person
shall be liable, at law or in equity, for losses sustained, liabilities incurred or benefits not derived by any other Covered Person
in connection with such decisions.

(c)            Whenever
in this Agreement a Covered Person is permitted or required to make a decision (i) in its “discretion” or under a grant
of similar authority or latitude, the Covered Person shall be entitled to consider only such interests and factors as it desires,
including its own interests, and shall have no duty or obligation to give any consideration to any interest of or factors affecting
the Company or any other Person, or (ii) in its “good faith” or under another express standard, the Covered Person
shall act under such express standard and shall not be subject to any other or different standard imposed by this Agreement or
other applicable law.

9.4            Indemnification.
To the fullest extent permitted by applicable law, and after exhausting all coverage under any applicable insurance policy, each
Covered Person, including without limitation, each of the Managers, shall be entitled to indemnification from the Company for any
loss, damage, claim or liability incurred by such Covered Person by reason of any act or omission performed, or omitted to be performed,
or alleged to be performed or omitted to be performed, by such Covered Person in good faith on behalf of the Company and in a manner
reasonably believed to be within the scope of authority conferred on such Covered Person by this Agreement, except that no Covered
Person shall be entitled to be indemnified in respect of any loss, damage, claim or liability incurred by such Covered Person by
reason of his or its actual fraud or willful misconduct with respect to the Company.

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9.5            Expenses.
To the fullest extent permitted by applicable law, reasonable expenses (including reasonable legal fees and disbursements) incurred
by a Covered Person in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company
prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking
by or on behalf of the Covered Person to repay such amount if it shall be determined, in a final, non-appealable judgment, that
the Covered Person is not entitled to be indemnified as authorized in Section 9.4 hereof.

9.6            Limitation
on Indemnification. Any indemnification of a Covered Person under this Article IX shall be satisfied solely out of the assets
of the Company, and no Member shall have any liability whatsoever with respect to any such claim for indemnity or reimbursement.
In addition, the indemnification provided by the Company pursuant to this Article IX shall be net of the proceeds of any insurance
or other indemnification that the Covered Person shall receive in respect of any matter giving rise to the Company’s obligation
to indemnify such Covered Person. The Board of Managers may obtain, at the Company’s expense, such policies of insurance
providing such coverage as is customary in the case of enterprises of established reputation engaged in the same or similar business
as, and similarly situated with, the Company and naming such of the Covered Persons as insureds as the Board of Managers may determine
from time to time in its discretion; provided, that, if any Covered Person (e.g., a Manager) is covered by any such insurance
policy, then all Covered Persons in the same category (e.g., all Managers) shall be so covered.

9.7            Non
Exclusivity. The right of any Covered Person to the indemnification provided in this Article IX shall be cumulative with, and
in addition to, and shall not be required to be exhausted in priority to, any and all rights to which such Covered Person may otherwise
be entitled by contract or as a matter of law or equity and shall extend to the successors, assigns and legal representatives of
such Covered Person. If the Company shall indemnify any Covered Person, it shall be subrogated to the right of such Covered Person
against any third party, including any insurance company, to recover the amount of such indemnification after the Covered Person
shall have been fully and completely indemnified in respect of the matter which gave rise to such indemnification. The Board of
Managers shall pursue such rights of recovery if it would be in the best interests of the Company to do so.

9.8            Amendments.
Any amendment or modification of any provision of this Article IX that adversely affects any right of a Covered Person under this
Article IX shall be prospective only, and shall not adversely affect any right or protection conferred on a Covered Person pursuant
to this Article IX and existing at the time of such amendment or modification.

ARTICLE
X

TRANSFER

10.1            Transfer.

(a)            Except
as otherwise required by law, or permitted under this Article X, neither this Agreement nor any interest of any Member in this
Agreement or in the Company, including any interests in undistributed moneys belonging to, or which may accrue to, such Member
may be Transferred; provided, however, that any Member may Transfer all or a portion of its interest in this Agreement or in the
Company to (i) any entity providing financing to the Company, (ii) any Permitted Transferee of such Member, (iii) to Regional or
to the Company in accordance with the provisions of 6.7 or 10.6 hereof or (iv) any other Person, but only, in the case of this
clause (iii), with the prior written consent of the Board of Managers and Preferred Members holding at least a majority of the
then outstanding Preferred Membership Interests, in their respective absolute discretion, which consent may be conditioned upon
the satisfaction of all conditions set forth in Section 10.2 hereof and the receipt of such legal opinions and other documents
as the Board of Managers shall deem to be appropriate. Any Transfer pursuant to this Article X shall be effected in accordance
with the provisions of Section 10.2(b) hereof.

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(b)            Notwithstanding
the provisions of Section 10.1(a) hereof, no transferee of any interest of any Member in this Agreement or in the Company (“Transferee”),
other than a Permitted Transferee of a Member, shall become a Member hereunder unless the Board of Managers and Preferred Members
holding at least a majority of the then outstanding Preferred Membership Interests, in their respective absolute discretion, consent
to the admission of such Transferee as a Member of the Company. The admission of any such Transferee as a substitute Member may
be conditioned on such Transferee providing such legal opinions and other documents as the Board of Managers shall deem to be appropriate.
Any substitute Member admitted to the Company pursuant to the provisions of this Section 10.1(b) will succeed to all of the rights
and be subject to all the obligations of the assigning Member with respect to the interest to which such Member was substituted.

(c)            The
transferor and Transferee of any interest hereunder will, jointly and severally, be obligated to reimburse the Company for all
reasonable expenses (including legal fees and disbursements) of any Transfer or proposed Transfer of the Member’s interest
in the Company or the admission of any Transferee as a Member.

(d)            Except
as otherwise permitted by this Article X, no Member shall have the right to voluntarily withdraw as a Member of the Company.

(e)            Notwithstanding
anything to the contrary contained herein, no Transfer or assignment of any interest of any Member in this Agreement or in the
Company shall be effective if, in the opinion of counsel for the Company, such Transfer or assignment would cause the Company to
(i) lose its status as a partnership for federal income tax purposes, (ii) cause the Company to be considered a publicly traded
partnership under Section 7704(b) of the Code, or (iii) be terminated for tax purposes pursuant to Section 708 of the Code.

10.2            Restrictions
on Transfer.

(a)            General
Restrictions. No Membership Interest now owned or hereafter acquired by any of the Members may be Transferred unless:

(i)            such
Transfer of a Membership Interest shall be made in accordance with the provisions of this Agreement;

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(ii)           the
proposed recipient of such Membership Interest, if such recipient is to be admitted as a substitute Member, shall deliver to the
Company a signed counterpart of this Agreement or a written acknowledgment that the Membership Interest to be received in such
proposed Transfer is subject to this Agreement and that the proposed recipient and its successors in interest are bound hereby
and agree to comply with this Agreement, each such document to be in form and substance reasonably satisfactory to the Company;
and

(iii)      
   such Transfer shall be made pursuant to an effective registration under the Securities Act and any
applicable state securities laws, or an exemption from such registration, and prior to any such Transfer the Member proposing
to Transfer a Membership Interest shall give the Company (A) notice describing the manner and circumstances of the proposed
Transfer (copies of which the Company shall furnish to each Member following receipt thereof by the Company) and (B) if such
Transfer is to be made pursuant to an exemption from such registration and if reasonably requested by the Company, a written
opinion of counsel, who shall be reasonably satisfactory to the Company and its counsel, such opinion to be in form and
substance reasonably satisfactory to the Company and its counsel, to the effect that the proposed Transfer of Membership
Interest may be effected without registration under the Securities Act and any applicable state securities laws.

Upon the Transfer of a Membership Interest in accordance
with this Agreement, the recipient of such Membership Interest shall be deemed a “Transferee” hereunder and shall not
be made a Member except in accordance with Section 10.1(b) hereof. Any attempted Transfer of a Membership Interest other than in
accordance with this Agreement shall be null and void and the Company shall refuse to recognize any such Transfer and shall not
reflect on its records any change in record ownership of a Membership Interest pursuant to any such Transfer.

(b)            Transfers.
The closing of any Transfer of a Membership Interest shall take place at the offices of the Company unless otherwise agreed by
the parties involved in the Transfer. Any Member who Transfers a Membership Interest shall (i) do all things and execute and deliver
all such papers as may be necessary or reasonably requested by the Company in order to consummate the Transfer of such Membership
Interest, (ii) pay to the Company such amounts as may be required for any applicable Transfer taxes incurred by the Company and
(iii) pay to the Company any reasonable expenses incurred by the Company in connection with such Transfer (including reasonable
attorney’s fees and disbursements).

10.3            Additional
Restrictions on Transfer. In the event any Member (a “Transferring Member”) wishes to Transfer any Membership
Interest, either directly or indirectly, to any Person (such Person being hereinafter referred to as a “Third Party”),
other than to a Permitted Transferee or an entity providing financing to the Company in compliance with Sections 10.1 and 10.2,
such Transferring Member must first comply with the following provisions of this Article X.

10.4            Right
of First Refusal.

(a)            If
a Transferring Member receives an offer from a Third Party to purchase any or all of its Membership Interest, such Transferring
Member shall deliver to the Company and the other Members written notice of the proposed transaction setting forth (i) the name
and address of the Third Party, (ii) the Membership Interest to be Transferred, (iii) the purchase price and form of consideration
and terms and conditions of payment and (iv) the other material terms and conditions of the transaction (collectively, the “Third
Party Terms”), and such notice shall be accompanied by a copy of a binding bona fide offer to purchase such Membership
Interest signed by such Third Party (collectively, the “First Refusal Notice”). The First Refusal Notice shall
be delivered to the Company and the other Members at least forty-five (45) days prior to the expected date of such Transfer. The
offer contained in the First Refusal Notice shall be deemed an offer by such Transferring Member to the other Members that may
be accepted in writing (which shall state the Membership Interest elected to be purchased) by the other Members or any of them
(pro rata based on each such other Member’s Pro Rata Interest or in such other proportion as the accepting Members (each
a “Participating Member”) may determine), in whole or in part, within 10 days after the receipt of such First
Refusal Notice, on the Third Party Terms.

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(b)            If
the other Members do not timely, or elect not to, accept the offer set forth in the First Refusal Notice to purchase the entire
Membership Interest pursuant to Section 10.4(a), then the Transferring Member shall promptly deliver to each Participating Member
a written notice (the “Overallotment Notice”), at least thirty (30) days prior to the expected date of such
Transfer, which shall set forth the names of the Participating Members and the Membership Interest not elected to be purchased
in accordance with Section 10.4(a) (the “Unsubscribed Interest”), and shall offer such Participating Members
the right to purchase the Unsubscribed Interest on the same terms and conditions as set forth in the First Refusal Notice. The
offer contained in the Overallotment Notice shall be deemed an offer by such Transferring Member of the Unsubscribed Interest to
the Participating Members, which offer may be accepted in writing (which shall state the Unsubscribed Interest elected to be purchased)
by the Participating Members or any of them (pro rata based on each Participating Member’s Pro Rata Interest or in such other
proportion as the accepting Participating Members may determine), in whole or in part, within five days after the receipt of such
Overallotment Notice, on the Third Party Terms.

(c)            In
the event that the Third Party Terms provide for the payment to the Transferring Member of consideration other than cash, the value
of such non-cash consideration shall be determined in good faith by the Board of Managers and shall be paid in cash at the closing
of the transaction; provided, however, that if the Third Party offers the Transferring Member (i) securities that
are traded on a recognized securities exchange, then the value of such consideration shall be computed based on the average closing
sale prices of such securities for the ten (10) consecutive trading days preceding the date of the offer, or (ii) securities that
are traded on the over-the-counter market, the value of such consideration shall be computed based on the average of the closing
bid and closing asked prices of such securities for the 10 consecutive trading days preceding the date of the offer, in each case
as reported by Bloomberg. Any dispute regarding the determination of the fair market value of non-cash consideration will be settled
by a reasonable process determined by the Board of Managers. All costs of any appraisal shall be borne by the Company.

(d)            The
closing of the purchase of the Membership Interest on the Third Party Terms shall be held as promptly as practicable following
full compliance with all applicable provisions in this Section 10.4, but in no event later than twenty (20) days thereafter. If
(i) the provisions of this Section 10.4 have been complied with in all respects, and (ii) the Participating Members have not elected
to purchase the entire Membership Interest being Transferred by the Transferring Member on the Third Party Terms, then such Transferring
Member shall comply with Section 10.5 as provided below.

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10.5            Tag-Along
Right.

(a)            In
the event that the Participating Members do not timely, or elect not to, accept, in whole, the offer contained in the First Refusal
Notice pursuant to the terms of Section 10.4, each of the Members other than the Transferring Member (each, a “Tagging
Member”) shall then have the right to require the Third Party to purchase from such Tagging Member up to the amount of
such Tagging Member’s Membership Interest (and the Transferring Member shall reduce the Membership Interest to be sold by
it by a corresponding amount) that is equal to the product of (i) the Membership Interest to be purchased by the Third Party and
(ii) such Tagging Member’s Pro Rata Interest.

(b)            Any
Membership Interest purchased from a Tagging Member pursuant to this Section 10.5 shall be purchased at the same price and same
type of consideration and on the same terms and conditions as the Transfer by the Transferring Member. It shall be an express condition
to the sale of Membership Interests by each Tagging Member that such Tagging Member execute and deliver to the Third Party any
and all documents required to be executed and delivered by the Transferring Member to effect such sale.

(c)            The
Transferring Member shall notify the Members in writing of the proposed Transfer not less than twenty (20) days prior to the date
of such proposed Transfer (the “Transferor Tag-Along Notice”). The Transferor Tag-Along Notice shall contain
the same information as set forth in the First Refusal Notice.

(d)            The
tag-along right provided for in this Section 10.5 may be exercised by any Tagging Member by delivery of a written notice to the
Company, the Transferring Member and the Third Party (the “Tag-Along Notice”) within 10 days following receipt
of the Transferor Tag-Along Notice (the “Tag-Along Period”). The Tag-Along Notice shall state the Membership
Interest that a Tagging Member wishes to include in such Transfer to the Third Party. The failure of a Member to deliver a Tag-Along
Notice meeting the requirements of this Section 10.5(d) within the Tag-Along Period shall constitute a waiver of such Member’s
tag-along rights with respect to such proposed Transfer.

(e)            Upon
the giving of its Tag-Along Notice, a Tagging Member shall be obligated to sell to the Third Party the Membership Interest set
forth in its Tag-Along Notice on the Third Party Terms (or, if a Tagging Member is not entitled to sell all such Membership Interest
under the terms of this Section 10.5, such Tagging Member shall be obligated to sell the maximum amount of such Membership Interest
such Tagging Member is permitted to sell hereunder on the Third Party Terms); provided, however, that neither the Transferring
Member nor any Tagging Member shall consummate the sale of any Membership Interests unless the Third Party purchases, on the Third
Party Terms, all of the Membership Interests contained in the Tag-Along Notices that the Tagging Members are entitled to sell under
the terms of this Section 10.5. If the Third Party does not purchase Membership Interests entitled to be sold by any Tagging Member
that has complied with the terms of this Section 10.5, then any Transfer by the Transferring Member and any other Tagging Members
to such Third Party shall be null and void and of no effect whatsoever.

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(f)            After
expiration of the Tag-Along Period, if any, if the provisions of Section 10.4 and this Section 10.5 have been complied with in
all respects and no Tag-Along Notice has been given, the Transferring Member shall have the right for 60 days to Transfer its Membership
Interest to the Third Party on the Third Party Terms without further notice to the Company or the other Members, but after such
sixty (60) days no such Transfer may be made without again complying with all of the requirements of Section 10.4 and this Section
10.5. If the terms of such proposed Transfer are different in any material respect from the Third Party Terms, the Transferring
Member shall deliver to the Company and the other Members a revised First Refusal Notice, and shall again comply with all of the
requirements of Section 10.4 and, to the extent required, this Section 10.5.

10.6            Put/Call
Right.

(a)            Notwithstanding
anything to the contrary contained in this Agreement (including, without limitation, Section 6.7 or any actions that may have been
taken under such Section), in the event that (i) the Management Services Agreement has been terminated for any reason and Regional
elects to exercise its rights under this Section 10.6 or (ii) the Management Services Agreement has been terminated by Regional
and Lorraine elects to exercise its rights under this Section 10.6, Regional or Lorraine, as applicable, may, at any time, give
written notice (a “Put/Call Notice”) to the Company and the other Member of its desire to have the Company repurchase
the Lorraine Parties’ entire Membership Interest for the fair market value thereof as determined below (the “Put/Call
Price”). The Put/Call Price shall be determined by the Independent Appraiser, without regard to any discount for minority
equity position or restriction of marketability, and shall be set forth in a written report delivered by such Independent Appraiser
(the “Appraisal Report”) to the Company, Regional and Lorraine within thirty (30) days after the date of its
appointment; provided, however, that if a Qualified Offer is then outstanding as described in Section 6.7(a) hereof, the
Put/Call Price shall instead be determined based upon the purchase price for the Company Sale set forth in such Qualified Offer.
The costs of such Independent Appraiser shall be borne by the Company.

(b)            Within
thirty (30) days after the date of the Appraisal Report or the date of the Put/Call Notice in the event a Qualified Offer is then
outstanding, as applicable (the “Put/Call Price Due Date”), the Company and Regional shall redeem all the Membership
Interests held by the Lorraine Parties for the amount of the Put/Call Price and Regional shall use commercially reasonable efforts
either to finance (or cause the Company to finance) the consideration required for the redemption or contribute additional equity
capital necessary to finance the consideration required for the redemption. The Lorraine Parties will take, and cause the Managers
nominated by Lorraine to take, all actions and will do, and cause the Managers nominated by Lorraine to do, all things necessary,
proper or advisable to consummate the redemption of its Membership Interest in accordance with this Section 10.6. The closing of
the redemption of Lorraine Parties’ Membership Interests shall be subject to (i) the resignation of all of Lorraine’s
nominees from the Board of Managers, (ii) the termination of any and all agreements between the Company, on the one hand, and any
of the Lorraine Parties or any of their respective Affiliates, on the other hand, including the Management Services Agreement,
and (iii) the execution by the Company, on the one hand, and the Lorraine Parties, on the other hand, of purchase documentation
(containing customary representations and warranties from the Lorraine Parties regarding such sale (including non-contravention,
and ownership of, and authority to sell, such Membership Interests free and clear of all liens, encumbrances and adverse claims
of any nature whatsoever)), a non-competition and non-solicitation agreement, and a general release and discharge of the Company,
its Affiliates and all present and former directors, officers, managers, members, agents, representatives, employees, their respective
successors and assigns and their respective direct or indirect equity holders, each in form and substance reasonably satisfactory
to Regional and Lorraine.

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(c)            If
the Lorraine Parties have not been paid the amount of the Put/Call Price by the Put/Call Price Due Date, the Lorraine Parties shall
also become entitled to receive, in addition to the Put/Call Price, (i) an amount equal to the accrued interest on the Put/Call
Price at the Default Rate (compounded quarterly), measured from the Put/Call Price Due Date to and including the date of payment
in full of the Put/Call Price and such additional accrued amount (ii) a penalty equal to 3% of the Put/Call Price and (iii) an
amount equal to the amount of any reasonable, documented, out-of-pocket expenses, including, without limitation, reasonable attorneys’
fees incurred to enforce the collection of the Put/Call Price and any amount of default interest accrued thereon.

(d)            Until
the Put/Call Price Due Date, Lorraine hereby agrees to conduct the Operations in the ordinary course of business consistent with
the historical practices of the Company and to consult with, and cause the Managers designated by Lorraine to consult with, Regional
and to obtain Regional’s consent on any material changes related to the Operations. Unless extended in writing by Lorraine,
the rights conferred on Regional under this Section 10.6(d) shall automatically terminate thirty (30) days after the date of the
Put/Call Notice. 

ARTICLE
XI

ISSUANCE OF MEMBERSHIP CERTIFICATES

11.1            No
Issuance of Membership Certificates. The Membership Interest of each Member in the Company shall be uncertificated.

11.2            Transfer
of Membership Interests. An interest in the Company which is Transferred in accordance with the terms of Article X of this
Agreement shall be transferable on the books of the Company by the Record Holder thereof in person or by such Record Holder’s
duly authorized attorney. Except as otherwise required by law, the Company shall be entitled to treat the Record Holder of a Membership
Interest on its books as the owner thereof for all purposes regardless of any notice or knowledge to the contrary.

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ARTICLE
XII

GENERAL

12.1            Relationship
of Members.

(a)            The
relationship between the Members shall be that of members in a limited liability company as set forth in this Agreement. Nothing
in this Agreement shall be construed as authorizing any Member to obligate legally or otherwise act as agent for the other Members,
except within the scope of the business of the Company (including, without limitation, the authorization granted to the Partnership
Representative pursuant to Section 6.9 hereof) to the extent expressly set forth herein.

(b)            Except
as otherwise expressly provided in any other agreement entered into in connection with the consummation of the transactions contemplated
herein (including the Management Services Agreement), each Member and each officer, director, stockholder, member, manager, partner,
employee and Affiliate of each Member may have other business interests and investments (whether or not in competition with the
business and/or investments of the Company) and may engage in any other business, trade, profession, or employment whatsoever (whether
or not in competition with the business and/or investments of the Company), on its or his own account or in partnership, or as
a consultant, advisor or equity holder or in any other capacity. Neither the Company nor any other Member shall have any right
or interest in any such business, investment, trade, profession or employment by reason of this Agreement. The Members hereby waive
any conflicts of interest arising from any such activity on the part of any Member or any officer, director, stockholder, member,
manager, partner, employee or Affiliate of any Member. Notwithstanding the above, if an investment, acquisition or other business
opportunity related to the Operations is presented to a Manager in his or her capacity as such, and such opportunity is of a character
that if presented to the Company could be taken by the Company, then the Member that nominated such Manager shall cause such opportunity
to be presented to the Board for its consideration.

12.2            Waiver
of Jury Trial. EACH OF THE MEMBERS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES (TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW) ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTES ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES
THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

12.3            Amendment.
No provision of this Agreement may be amended or modified except by an instrument in writing executed by each of the Members. Any
such written amendment or modification will be binding upon the Company and each Member; provided, that an amendment or
modification modifying the rights or obligations of any Member in a manner that is materially and disproportionately adverse to
such Member relative to the rights or obligations of other Members shall be effective only with that Member’s consent. Notwithstanding
the foregoing, amendments to the Schedules hereto following any new issuance, redemption, repurchase or Transfer of Membership
Interests in accordance with this Agreement may be made by the Board of Managers without the consent of or execution by the Members.

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12.4            Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAW OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE PRINCIPLES OF
THE CONFLICT OF LAWS THEREOF.

12.5            Consent
to Jurisdiction, Etc. Each party to this Agreement hereby irrevocably consents and agrees that any action, suit, arbitration
or proceeding arising in connection with any disagreement, dispute, controversy or claim arising out of or relating to this Agreement
(a “Legal Dispute”) shall be brought only to the exclusive jurisdiction of the courts of the State of New York
or the federal courts located in the State of New York sitting in New York County, New York, and each party hereby consents to
the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and
irrevocably waives, to the fullest extent permitted by applicable federal, state or local laws, rules or regulations (“Regulations”),
any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court
or that any such suit, action or proceeding that is brought in any such court has been brought in an inconvenient forum. During
the period a Legal Dispute is pending before a court, all actions, suits or proceedings with respect to such Legal Dispute or any
other Legal Dispute, including any counterclaim, cross-claim or interpleader, shall be subject to the exclusive jurisdiction of
such court. Each party hereby waives, and shall not assert as a defense in any Legal Dispute, that (a) such party is not subject
thereto, (b) such action, suit or proceeding may not be brought or is not maintainable in such court, (c) such party’s property
is exempt or immune from execution, (d) such action, suit or proceeding is brought in an inconvenient forum or (e) the venue of
such action, suit or proceeding is improper. A final judgment in any action, suit or proceeding described in this Section 12.5
following the expiration of any period permitted for appeal and subject to any stay during appeal shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Regulation. Each Member hereby
waives personal service of any process in connection with any such action or proceeding and agrees that the service thereof may
be made by certified or registered mail directed to the Member, and its counsel, at the address of such Member, and its counsel,
set forth on Schedule B hereto, or at such other addresses of which the Member has given notice as provided in Section 12.7
hereof. In the alternative, any Member may effect service upon any other Member in any other form or manner permitted by law.

12.6            Intentionally
Omitted.

12.7            Notices.
All notices, designations, consents, offers, acceptances and other communications required or permitted by this Agreement shall
be in writing and shall be sent by registered or certified mail, postage prepaid, or shall be delivered personally or by overnight
courier, or shall be sent by telecopy, e-mail or similar means of simultaneous transmission and receipt, to the Company or to any
Member at the address, telecopy number or e-mail address set forth for the Company or such Member. Notices shall be deemed to have
been given on the fifth day after being so mailed, the next business day after delivery to such overnight courier, when sent by
telecopier or e-mail (provided that in the case of e-mail the e-mail is not returned with an undeliverable, delayed or similar
message) or upon receipt when delivered personally. A copy of any notice given pursuant to this Section 12.7 shall also be given
to counsel for the party receiving such notice, at the address, e-mail address or telecopy number set forth for such counsel on
Schedule B hereto. Any Member may change its address or its counsel or counsel’s address by giving written notice
to the Company and the other Members in a manner conforming to the notice provisions hereof. All notices and other communications
received by Lorraine under the Purchase Agreement will be promptly provided by Lorraine to Regional and its counsel in accordance
with this Section 12.7.

    	42

     

    

12.8            Severability.
If any provision of this Agreement or the application of any such provision to any party or circumstances shall be determined by
any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement or the application
of such provision to such Person or circumstances other than those to which it is so determined to be invalid and unenforceable,
shall not be affected thereby, and each provision hereof shall be validated and shall be enforced to the fullest extent permitted
by law.

12.9            Title
to Company Property. All property and assets owned by the Company, whether real or personal, tangible or intangible, shall
be deemed to be owned by the Company as an entity and no Member individually, shall have any ownership of such property and assets.

12.10          Partition.
No Member nor any successor in interest to any Member shall have the right while this Agreement remains in effect to have the property
of the Company partitioned, or to file a complaint or institute any proceeding at law or in equity to have the property of the
Company partitioned, and each Member, on behalf of itself, and its successors, successors in title, executors, administrators,
representatives, heirs and assigns, hereby waives any such right. It is the intention of the Members that during the term of this
Agreement, the rights of the Members and their successors in interest, as among themselves, shall be governed by the terms of this
Agreement and that the right of any Member or successor in interest to assign, Transfer, sell or otherwise dispose of such Member’s
interest in the Company shall be subject to the limitations and restrictions of this Agreement.

12.11         Captions.
The Article and Section titles or captions contained in this Agreement are inserted only as a matter of convenience and for reference
and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof.

12.12         Pronouns
and Plurals. Whenever the context may require, any pronoun used herein shall include the corresponding masculine, feminine
or neuter forms and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

12.13         Payment.
All payments required or permitted under this Agreement, including payments of distributions shall be made in lawful money of the
United States, except as otherwise expressly permitted under Section 8.3 hereof.

12.14         Counterparts.
This Agreement may be executed in counterparts (and by facsimile and .pdf format), each of which shall be deemed to be an original
and all of such counterparts together shall constitute one and the same instrument.

12.15         Confidentiality.
The Members shall, and shall direct their directors, officers, partners, members, managers, employees, attorneys, accountants,
advisers and representatives that have access to confidential or proprietary information of the Company or the Operations to, keep
confidential and not disclose any such confidential or proprietary information of the Company or the Operations to any other Person
without the express consent of the Company, except to the extent such disclosure shall be required by applicable law, legal process,
governmental rule or regulation, court order or administrative proceeding; provided, that, after putting in place appropriate confidentiality
limitations with relevant third parties, each Member shall be permitted to disclose such information as it reasonably deems necessary
in connection with a transaction or proposed transaction contemplated by Article X. Each Member’s obligations under this
Section 12.15 shall survive the Transfer of such Member’s Membership Interest in the Company or any other event or occurrence
that results in such Member ceasing to be a Member for any reason.

    	43

     

    

12.16         Further
Assurances. From time to time after the execution hereof, the Members agree to execute and deliver said instruments, including
amendments to this Agreement, and take such other action as may be necessary to more clearly set forth the agreements of the Members
with respect to the subject matter hereof. If an election is made available to treat the Company as a partnership for federal,
state or local income tax purposes, each Member agrees to take all action, and to execute and deliver all documents, necessary
to elect to treat the Company as a partnership and to maintain and continue such election.

12.17         Directors
and Officers Liability Insurance. The Company may provide, in such amounts and at such times as the Board of Managers may determine
in its sole discretion, at the Company’s expense, coverage under a directors and officers liability insurance policy for
employees of the Company and Managers of the Company.

12.18         No
Third Party Rights. The provisions of this Agreement are for the exclusive benefit of the Company and the Members, and except
as otherwise expressly provided herein, no other Person (including, without limitation, any creditor of the Company) shall have
any right or claim against the Company or any Manager or Member by reason of those provisions or be entitled to enforce any of
those provisions against the Company or any Manager or Member.

12.19         Successors
and Assigns. Subject to the restrictions on Transfer set forth herein, this Agreement, and each and every provision hereof,
shall be binding upon and shall inure to the benefit of the Members, their respective successors, successors in title, executors,
administrators, representatives, heirs and assigns. Each and every successor in interest to any Member, whether such successor
acquires such interest by way of gift, purchase, foreclosure, Transfer or by any other method, shall hold such interest subject
to all of the terms and provisions of this Agreement.

12.20         Power
of Attorney. Each Member does hereby constitute and appoint the Partnership Representative, with full power of substitution,
as its true and lawful representative and attorney in fact, in its name, place and stead, to make, execute, sign, acknowledge and
deliver or file (a) all instruments, documents and certificates which may from time to time be required by any law to effectuate,
implement and continue the valid and subsisting existence of the Company and maintain its tax status as a partnership; and (b)
all instruments, documents and certificates which may be required in order to qualify the Company to do business in any state;
provided, however, that nothing contained in this Section 12.20 shall be deemed to expand the power of the Partnership Representative
beyond that which is granted pursuant to the express provisions of this Agreement. The powers of attorney granted herein will be
deemed to be coupled with an interest, will be irrevocable and will survive the death, incompetency, disability, bankruptcy or
dissolution of the Member.

    	44

     

    

12.21         Equitable
Relief. Each Member agrees that (a) if any Member breaches any provision of this Agreement, the damage to the Company will
be substantial, although difficult to ascertain, and money damages will not afford the Company an adequate remedy, and (b) if any
Member breaches or threatens a breach of any provision of this Agreement, the Company and each of the other Members shall be entitled,
in addition to all other rights and remedies as may be provided by law, to specific performance, injunctive and other equitable
relief to prevent or restrain a breach or threatened breach of this Agreement, without any requirement to post bond or other security.

12.22         Waiver.
No failure or delay on the part of the Members or any of them in exercising any right, power or privilege hereunder, and no course
of dealing between the Company and the Members or any of them shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude the simultaneous or later exercise of any other right, power or privilege.
The rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies which the Members
or any of them would otherwise have. No notice to or demand on the Company in any case shall entitle the Company to any other or
further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Members or any of them to
take any other or further action in any circumstances without notice or demand.

12.23         Entire
Agreement. This Agreement, together with the Management Services Agreement constitutes the entire agreement of the parties
hereto with respect to the subject matter hereof, and this Agreement supersedes all prior written and oral agreements, understandings,
negotiations or representations among the parties with respect to such subject matter.

12.24         Certain
Expenses. The Company hereby agrees to reimburse Regional for the reasonable cost (as determined by Regional) of the legal
fees and disbursements of its counsel, Olshan Frome Wolosky LLP, promptly upon receipt of a written invoice therefor.

[Signature page follows]

    	45

     

    

 

IN WITNESS WHEREOF, the undersigned have
executed this Agreement as of the day and year first above written.

	MEMBERS:
	 
	 
	LORRAINE CAPITAL, LLC
	 
	By:	
        /s/ Justin M. Reich

	Name:  Justin M. Reich
	Title:    Member
	 
	REGIONAL BRANDS INC.
	 
	By:	
        /s/ Brian Hopkins

	Name:  Brian Hopkins
	Title:  Chairman and Chief Executive Officer
	 
	BRJ ACQUISITION PARTNERS, LLC
	 
	By:	
        /s/ Justin M. Reich

	Name:   Justin M. Reich
	Title:     Manager

    	46

     

    

SCHEDULE A

MEMBER CAPITAL CONTRIBUTIONS AND MEMBERSHIP
INTERESTS

	MEMBER	CAPITAL 

CONTRIBUTION	PERCENTAGE INTERESTS
	 	Common Capital	Preferred Capital	Common	Preferred
	Regional Brands Inc.	-	$3,808,696	76.17%	95.22%
	Lorraine Capital, LLC	-	-	20.00%	-
	BRJ Acquisition Partners, LLC	-	$191,304	3.83%	4.78%

 

    	

     

    

SCHEDULE B

NOTICE INFORMATION

COMPANY:

	B.R. Johnson, LLC	
        591 Delaware Ave.

        Buffalo, NY 14203

        Attention: Justin M. Reich

        Fax: (940) 382-9966 jreich@lorrainecapital.com

         

        and

         

        c/o Regional Brands Inc.

        6060 Parkland Boulevard

        Cleveland, OH 44124

        Attention: Brian Hopkins

        Fax: (216) 825-4001

        Attention: Brian Hopkins

        brian@ancora.net

        

        

        With a copy to:

        

        Brian J. Bocketti, Esq.

        Lippes Mathias Wexler Friedman, LLP

        665 Main Street, Suite 300

        Buffalo, NY 14203

        bbocketti@lippes.com

        Fax: (716) 853-5100

         

        and

         

        Olshan Frome Wolosky LLP

        1325 Avenue of the Americas

        New York, NY 10019

        Attention: Michael R. Neidell, Esq.

        Fax: (212) 451-2222

        mneidell@olshanlaw.com

 

    	

     

    

MEMBERS:

	Lorraine Capital, LLC	
        591 Delaware Ave.

        Buffalo, NY 14203

        Attention: Justin M. Reich

        Fax: (940) 382-9966 jreich@lorrainecapital.com

         

	BRJ Acquisition Partners, LLC	
        Same as above.

         

	Regional Brands Inc.	
        6060 Parkland Boulevard

        Cleveland, OH 44124

        Attention: Brian Hopkins

        Fax: (216) 825-4001

        Attention: Brian Hopkins

        brian@ancora.net

         

        With a copy to:

         

        Olshan Frome Wolosky LLP

        1325 Avenue of the Americas

        New York, NY 10019

        Attention: Michael R. Neidell, Esq.

        Fax: (212) 451-2222

        mneidell@olshanlaw.comExhibit 10.1

 

TAX SHARING AGREEMENT

 

BETWEEN

 

LIBERTY INTERACTIVE CORPORATION

 

AND

 

LIBERTY EXPEDIA HOLDINGS, INC.

 

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
 
    	
 
    
	
SECTION 1.     Definition of Terms
    	
1
    
	
 
    	
 
    
	
SECTION 2.     Allocation of Taxes and Tax-Related Losses
    	
8
    
	
 
    	
 
    
	
2.1
    	
Allocation of Taxes
    	
8
    
	
2.2
    	
Special Rules
    	
9
    
	
2.3
    	
Tax Payments
    	
9
    
	
 
    	
 
    
	
SECTION 3.     Preparation and Filing of Tax Returns
    	
9
    
	
 
    	
 
    
	
3.1
    	
Combined Returns
    	
9
    
	
3.2
    	
Separate Returns
    	
9
    
	
3.3
    	
Provision of   Information
    	
10
    
	
3.4
    	
Special   Rules Relating to the Preparation of Tax Returns
    	
10
    
	
3.5
    	
Refunds, Credits or   Offsets
    	
12
    
	
3.6
    	
Carrybacks
    	
12
    
	
3.7
    	
Amended Returns
    	
13
    
	
 
    	
 
    
	
SECTION 4.     Tax Payments
    	
13
    
	
 
    	
 
    
	
4.1
    	
Payment of Taxes to Tax   Authority
    	
13
    
	
4.2
    	
Indemnification   Payments
    	
13
    
	
4.3
    	
Interest on Late   Payments
    	
14
    
	
4.4
    	
Tax Consequences of   Payments
    	
14
    
	
 
    	
 
    
	
SECTION 5.     Assistance and Cooperation
    	
14
    
	
 
    	
 
    
	
5.1
    	
Cooperation
    	
14
    
	
 
    	
 
    
	
SECTION 6.     Tax Records
    	
15
    
	
 
    	
 
    
	
6.1
    	
Retention of Tax   Records
    	
15
    
	
6.2
    	
Access to Tax Records
    	
15
    
	
6.3
    	
Confidentiality
    	
15
    
	
6.4
    	
Delivery of Tax Records
    	
15
    
	
 
    	
 
    
	
SECTION 7.     Restriction on Certain Actions of Distributing and Splitco; Indemnity
    	
16
    
	
 
    	
 
    
	
7.1
    	
Restrictive Covenants
    	
16
    
	
7.2
    	
Distributing Indemnity
    	
17
    
	
7.3
    	
Splitco Indemnity
    	
17
    
	
7.4
    	
Scope
    	
18
    

 

i

 

	
7.5
    	
Notices of Tax Contests   (Other than Joint Claims)
    	
18
    
	
7.6
    	
Control of Tax Contests   (Other than Joint Claims)
    	
18
    
	
7.7
    	
Cooperation
    	
19
    
	
7.8
    	
Joint Claims
    	
19
    
	
 
    	
 
    
	
SECTION 8.     General Provisions
    	
19
    
	
 
    	
 
    
	
8.1
    	
Termination
    	
19
    
	
8.2
    	
Predecessors or   Successors
    	
19
    
	
8.3
    	
Expenses
    	
20
    
	
8.4
    	
Governing Law
    	
20
    
	
8.5
    	
Waiver of Jury Trial
    	
20
    
	
8.6
    	
Notices
    	
20
    
	
8.7
    	
Counterparts
    	
21
    
	
8.8
    	
Binding Effect;   Assignment
    	
21
    
	
8.9
    	
Severability
    	
21
    
	
8.10
    	
Amendments; Waivers
    	
22
    
	
8.11
    	
Effective Date
    	
22
    
	
8.12
    	
Change in Law
    	
22
    
	
8.13
    	
Authorization, Etc.
    	
22
    
	
8.14
    	
No Third Party   Beneficiaries
    	
22
    
	
8.15
    	
Entire Agreement
    	
22
    
	
8.16
    	
No Strict Construction;   Interpretation
    	
23
    
	
8.17
    	
Headings
    	
23
    

 

ii

 

TAX SHARING AGREEMENT

 

THIS TAX SHARING AGREEMENT (this “Agreement”) is entered into as of November 4, 2016, between Liberty Interactive Corporation, a Delaware corporation (“Distributing”), and Liberty Expedia Holdings, Inc., a Delaware corporation (“Splitco”).  Unless otherwise indicated, all “Section” references in this Agreement are to sections of this Agreement.

 

RECITALS

 

WHEREAS, Splitco is a wholly owned subsidiary of Distributing; and

 

WHEREAS, the Board of Directors of Distributing has determined that it would be appropriate and desirable for Distributing to separate the Splitco Group from the Distributing Group; and

 

WHEREAS, the Board of Directors of Splitco has also approved such transaction; and

 

WHEREAS, following the Contribution, Distributing intends to distribute its entire interest in the stock of Splitco to holders of Liberty Ventures Common Stock  in exchange for a portion of their shares of Liberty Ventures Common Stock (the “Distribution”), in what is intended to qualify as a tax-free transaction described under Sections 368(a)(1)(D), 355, and 361 of the Code; and

 

WHEREAS, the parties set forth in the Reorganization Agreement the principal arrangements between them regarding the separation of the Splitco Group from the Distributing Group; and

 

WHEREAS, the parties desire to provide for and agree upon the allocation between the parties of liabilities for Taxes arising prior to, as a result of, and subsequent to the Distribution, and to provide for and agree upon other matters relating to Taxes.

 

NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, and intending to be legally bound hereby, Distributing and Splitco hereby agree as follows:

 

SECTION 1.                         Definition of Terms.  For purposes of this Agreement (including the recitals hereof), the following terms have the following meanings:

 

“Affiliate” means with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such first Person.  For the avoidance of doubt, (x) no member of the Splitco Group will be treated as an Affiliate of any member of the Distributing Group and (y) no member of the Distributing Group will be treated as an Affiliate of any member of the Splitco Group.

 

1

 

“Agreement” has the meaning set forth in the preamble hereof.

 

“business day” means any day other than a Saturday, Sunday or a day on which banking institutions in New York City, New York or London, England are authorized or required by law or executive order to close.

 

“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, or any successor law.

 

“Combined Return” means a consolidated, combined or unitary Tax Return that includes, by election or otherwise, one or more members of the Distributing Group and one or more members of the Splitco Group.

 

“Company” means Distributing or Splitco, as the context requires.

 

“Compensatory Equity Interests” means options, stock appreciation rights, restricted stock, restricted stock units or other rights with respect to Distributing Stock or Splitco Stock that are granted on or prior to the Distribution Date by Distributing, Splitco or any of their respective Subsidiaries in connection with employee, independent contractor or director compensation or other employee benefits (including, for the avoidance of doubt, options, stock appreciation rights, restricted stock, restricted stock units or other rights issued in respect of any of the foregoing by reason of the Distribution or any subsequent transaction).

 

“Contribution” has the meaning given to such term in the Reorganization Agreement.

 

“Control” means, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through ownership of securities or partnership, membership, limited liability company, or other ownership interests, by contract or otherwise and the terms “Controlling” and “Controlled” have meanings correlative to the foregoing.

 

“Delaware Chancery Court” has the meaning set forth in Section 8.4.

 

“Disclosing Party” has the meaning set forth in Section 6.3.

 

“Distributing” has the meaning set forth in the preamble hereof.

 

“Distributing Group” means Distributing and each Subsidiary of Distributing (but only while such Subsidiary is a Subsidiary of Distributing) other than any Person that is a member of the Splitco Group (but only during the period such Person is treated as a member of the Splitco Group).

 

“Distributing Indemnitees” has the meaning set forth in Section 7.3.

 

“Distributing Stock” means (x) the Series A QVC Group common stock, par value $.01 per share, the Series B QVC Group common stock, par value $.01 per

 

2

 

share, the Series A Liberty Ventures common stock, par value $.01 per share, and the Series B Liberty Ventures common stock, par value $.01 per share, (y) if and when issued, the Series C QVC Group common stock, par value $.01 per share, and the Series C Liberty Ventures common stock, par value $.01 per share, and (z) any series or class of stock into which the Series A, Series B, or Series C QVC Group common stock or the Series A, Series B, or Series C Liberty Ventures common stock is redesignated, reclassified, converted or exchanged following the Effective Time.

 

“Distribution” has the meaning set forth in the recitals hereof.

 

“Distribution Date” means the date on which the Distribution occurs.

 

“Due Date” has the meaning set forth in Section 4.3.

 

“Effective Time” means the time at which the Distribution is effected on the Distribution Date.

 

“Employing Party” has the meaning set forth in Section 3.4(d)(i).

 

“Expedia” means Expedia, Inc., a Delaware corporation.

 

“Final Determination” means a determination within the meaning of Section 1313 of the Code or any similar provision of state or local Tax Law.

 

“Group” means the Distributing Group or the Splitco Group, as the context requires.

 

“Income Tax” means all Taxes (i) based upon, measured by, or calculated with respect to, net income, net profits or deemed net profits (including any capital gains Tax, minimum Tax based upon, measured by, or calculated with respect to, net income, net profits or deemed net profits, any Tax on items of Tax preference and depreciation recapture or clawback, but not including sales, use, real or personal property, gross or net receipts, gross profits, transfer and similar Taxes), (ii) imposed by a foreign country which qualify under Section 903 of the Code or (iii) based upon, measured by, or calculated with respect to multiple bases (including, but not limited to, corporate franchise and occupation Taxes) if such Taxes may be based upon, measured by, or calculated with respect to one or more bases described in clause (i) above.

 

“Interest Rate” means the Rate determined below, as adjusted as of each Interest Rate Determination Date.  The “Rate,” means, with respect to each period between two consecutive Interest Rate Determination Dates, a rate determined at approximately 11:00 a.m., London time, two London business days before the first Interest Rate Determination Date equal to the greater of:  (x) the sum of (i) the six month dollar LIBOR rate as displayed on page “LR” of Bloomberg (or such other appropriate page as may replace such page), plus (ii) 2%, and (y) the interest rate that would be applicable at such time to a “large corporate underpayment” (within the meaning of Section 6621(c) of the Code) under Sections 6601 and 6621 of the Code.  Interest will be

 

3

 

calculated on the basis of a year of 365 days and the actual number of days for which due.

 

“Interest Rate Determination Date” means the Due Date and each March 31, June 30, September 30 and December 31 thereafter.

 

“IRS” means the Internal Revenue Service.

 

“issuing corporation” has the meaning set forth in Section 3.4(d)(ii).

 

“Joint Claim” has the meaning set forth in Section 7.8.

 

“Liberty Ventures Common Stock” means the Series A Liberty Ventures common stock, par value $.01 per share, and the Series B Liberty Ventures common stock, par value $.01 per share.

 

“Losses” means any and all damages, losses, deficiencies, liabilities, obligations, penalties, judgments, settlements, claims, payments, fines, interest, costs and expenses (including the fees and expenses of any and all actions and demands, assessments, judgments, settlements and compromises relating thereto and the costs and expenses of attorneys’, accountants’, consultants’ and other professionals’ fees and expenses incurred in the investigation or defense thereof or the enforcement of rights hereunder); provided, however, that “Losses” shall exclude any special or punitive damages; provided, further, that the foregoing proviso will not be interpreted to limit indemnification for Losses incurred as a result of the assertion by a claimant (other than the parties hereto and their successors and assigns) in a third-party claim for special or punitive damages.

 

“Non-Preparer” means the Company that is not responsible for the preparation and filing of the applicable Tax Return pursuant to Sections 3.1 or 3.2.

 

“Payment Date” means (x) with respect to any U.S. federal income tax return, the due date for any required installment of estimated taxes determined under Code Section 6655, the due date (determined without regard to extensions) for filing the return determined under Code Section 6072, and the date the return is filed, and (y) with respect to any other Tax Return, the corresponding dates determined under the applicable Tax Law.

 

“Person” means any individual, corporation, company, partnership, trust, incorporated or unincorporated association, joint venture or other entity of any kind.

 

“Post-Distribution Period” means any Tax Year or other Taxable period beginning after the Distribution Date and, in the case of any Straddle Period, that part of the Tax Year or other taxable period that begins at the beginning of the day after the Distribution Date.

 

“Pre-Distribution Period” means any Tax Year or other taxable period that ends on or before the Distribution Date and, in the case of any Straddle Period, that part

 

4

 

of the Tax Year or other taxable period through the end of the day on the Distribution Date.

 

“Preparer” means the Company that is responsible for the preparation and filing of the applicable Tax Return pursuant to Sections 3.1 or 3.2.

 

“Protective Election” has the meaning set forth in Section 3.4(a).

 

“Receiving Party” has the meaning set forth in Section 6.3.

 

“Reorganization Agreement” means the Reorganization Agreement between Distributing and Splitco dated October 26, 2016.

 

“Restructuring” has the meaning assigned to such term in the Reorganization Agreement.

 

“Separate Return” means (a) in the case of any Tax Return required to be filed by any member of the Distributing Group (including any consolidated, combined or unitary Tax Return), any such Tax Return that does not include any member of the Splitco Group, and (b) in the case of any Tax Return required to be filed by any member of the Splitco Group (including any consolidated, combined or unitary Tax Return), any such Tax Return that does not include any member of the Distributing Group.

 

“Splitco” has the meaning set forth in the preamble hereof.

 

“Splitco Group” means (x) with respect to any Tax Year (or portion thereof) ending at or before the Effective Time, Splitco and each of its Subsidiaries at the Effective Time; and (y) with respect to any Tax Year (or portion thereof) beginning after the Effective Time, Splitco and each Subsidiary of Splitco (but only while such Subsidiary is a Subsidiary of Splitco).

 

“Splitco Indemnitees” has the meaning set forth in Section 7.2.

 

“Splitco Section 355(e) Event” means the application of Section 355(e) of the Code to the Distribution as a result of the Distribution being “part of a plan (or series of related transactions) pursuant to which 1 or more persons acquire directly or indirectly stock representing a 50-percent or greater interest” in Splitco (within the meaning of Section 355(e) of the Code).

 

“Splitco Stock” means Splitco’s Series A common stock, par value $.01 per share, and Series B common stock, par value $.01 per share, and if and when issued, Splitco’s Series C common stock, par value $.01 per share, and any series or class of stock into which Splitco’s Series A, Series B, or Series C common stock is redesignated, reclassified, converted or exchanged following the Effective Time.

 

“Straddle Period” means any Taxable period commencing on or prior to, and ending after, the Distribution Date.

 

5

 

“Subsidiary” when used with respect to any Person, means (i)(A) a corporation a majority in voting power of whose share capital or capital stock with voting power, under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such Person, by one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such Person, whether or not such power is subject to a voting agreement or similar encumbrance, (B) a partnership or limited liability company in which such Person or a Subsidiary of such Person is, at the date of determination, (1) in the case of a partnership, a general partner of such partnership with the power affirmatively to direct the policies and management of such partnership or (2) in the case of a limited liability company, the managing member or, in the absence of a managing member, a member with the power affirmatively to direct the policies and management of such limited liability company, or (C) any other Person (other than a corporation) in which such Person, one or more Subsidiaries of such Person or such Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has or have (1) the power to elect or direct the election of a majority of the members of the governing body of such Person, whether or not such power is subject to a voting agreement or similar encumbrance, or (2) in the absence of such a governing body, at least a majority ownership interest or (ii) any other Person of which an aggregate of 50% or more of the equity interests are, at the time, directly or indirectly, owned by such Person and/or one or more Subsidiaries of such Person.  For purposes of the foregoing, neither Expedia nor any of its Subsidiaries will be treated as Subsidiaries of Distributing or Splitco during any period in which such party beneficially owns less than 50% of the outstanding stock of Expedia by value.

 

“Tax” or “Taxes” means any net income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll, social security, workers compensation, employment, unemployment, disability, property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated or other similar tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any Tax Authority and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

 

“Tax Authority” means, with respect to any Tax, the governmental entity or political subdivision, agency, commission or authority thereof that imposes such Tax, and the agency, commission or authority (if any) charged with the assessment, determination or collection of such Tax for such entity or subdivision.

 

“Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose, potential or effect of redetermining Taxes of any member of either Group (including any administrative or judicial review of any claim for refund).

 

“Tax Counsel” means Skadden, Arps, Slate, Meagher & Flom LLP.

 

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“Tax Item” means, with respect to any Tax, any item of income, gain, loss, deduction, credit or other attribute that may have the effect of increasing or decreasing any Tax.

 

“Tax Law” means the law of any governmental entity or political subdivision thereof, and any controlling judicial or administrative interpretations of such law, relating to any Tax.

 

“Tax Materials” means (i) the representation letters delivered to Tax Counsel in connection with the delivery of the Tax Opinion, and (ii) any other materials delivered or deliverable by Distributing, Splitco and others in connection with the rendering by Tax Counsel of the Tax Opinion.

 

“Tax Opinion” means the opinion to be delivered by Tax Counsel to Distributing in connection with the Distribution to the effect that the Contribution and the Distribution will qualify as a tax-free transaction described under Sections 368(a)(1)(D), 355 and 361 of the Code to Distributing and the holders of Liberty Ventures Common Stock (except with respect to the receipt of cash in lieu of fractional shares).

 

“Tax Records” means Tax Returns, Tax Return work papers, documentation relating to any Tax Contests, and any other books of account or records required to be maintained under applicable Tax Laws (including but not limited to Section 6001 of the Code) or under any record retention agreement with any Tax Authority.

 

“Tax Return” means any report of Taxes due, any claims for refund of Taxes paid, any information return with respect to Taxes, or any other similar report, statement, declaration, or document filed or required to be filed (by paper, electronically or otherwise) under any applicable Tax Law, including any attachments, exhibits, or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing.

 

“Tax Year” means, with respect to any Tax, the year, or shorter period, if applicable, for which the Tax is reported as provided under applicable Tax Law.

 

“Transaction Taxes” means any Taxes resulting from the Restructuring and the Distribution, other than Transfer Taxes.

 

“Transaction Tax-Related Losses” means any Losses resulting from the failure of (i) the Restructuring to qualify in whole for nonrecognition of income, gain and loss for U.S. federal income tax purposes to Distributing, Splitco and each of their respective Subsidiaries immediately prior to the Distribution, (ii) the Contribution and Distribution to qualify as a tax-free transaction described under Sections 368(a)(1)(D), 355 and 361 of the Code (except with respect to the receipt of cash in lieu of fractional shares), or (iii) the Contribution and Distribution to qualify in whole for nonrecognition of income, gain and loss for U.S. federal income tax purposes to Distributing, Splitco, each of their respective Subsidiaries at the Effective Time, and the holders of Liberty

 

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Ventures Common Stock that receive stock of Splitco in the Distribution (except with respect to the receipt of cash in lieu of fractional shares).

 

“Transfer Taxes” means all U.S. federal, state, local or foreign transfer, documentary, stamp, duties, recording, and similar Taxes and fees (including any penalties, interest or additions thereto) imposed upon any party hereto or any of its Subsidiaries in connection with the Restructuring or the Distribution.

 

“Treasury Regulations” means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Year.

 

SECTION 2.                         Allocation of Taxes and Tax-Related Losses

 

2.1                               Allocation of Taxes.  Except as provided in Section 2.2 (Special Rules) and Section 3.4(d) (Compensatory Equity Interests), Taxes shall be allocated as follows:

 

(a)                                 Combined Returns.

 

(i)                                     Allocation of Taxes for Combined Returns.  Distributing shall be allocated: (A) all Taxes that are attributable to members of the Distributing Group and reported on, or required to be reported on, a Combined Return; and (B) all Taxes that are attributable to members of the Splitco Group for the Pre-Distribution Period and reported on, or required to be reported on, a Combined Return.  Splitco shall be allocated all Taxes that are attributable to members of the Splitco Group for the Post-Distribution Period and reported on, or required to be reported on, a Combined Return.

 

(ii)                                  Transactions Occurring on the Distribution Date.  Notwithstanding the provisions of Section 2.1(a)(i) (but subject to the provisions of Section 2.2), Taxes attributable to any transaction or action taken by or with respect to any member of the Splitco Group outside the ordinary course of business before the Distribution on the Distribution Date shall be allocated to the Pre-Distribution Period, and Taxes attributable to any transaction or action taken by or with respect to any member of the Splitco Group outside the ordinary course of business after the Distribution on the Distribution Date shall be allocated to the Post-Distribution Period.

 

(b)                                 Separate Returns.

 

(i)                                     Splitco Separate Returns.  Splitco shall be allocated all Taxes that are attributable to members of the Splitco Group and reported on, or required to be reported on, a Separate Return that is required to be filed by a member of the Splitco Group.

 

(ii)                                  Distributing Separate Returns.  Distributing shall be allocated all Taxes that are attributable to members of the Distributing Group and reported on, or required to be reported on, a Separate Return that is required to be filed by a member of the Distributing Group.

 

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(c)                                  Taxes Not Reported on Tax Returns.   Splitco shall be allocated any Tax attributable to members of the Splitco Group that is not required to be reported on a Tax Return, and Distributing shall be allocated any Tax attributable to members of the Distributing Group that is not required to be reported on a Tax Return.

 

2.2                               Special Rules.

 

(a)                                 Transaction Taxes and Transaction Tax-Related Losses.  Notwithstanding any other provision in this Section 2:

 

(i)                                     Distributing shall be allocated all Transaction Taxes and Transaction Tax-Related Losses other than any Transaction Taxes and Transaction Tax-Related Losses allocated to Splitco pursuant to clause (ii) of this Section 2.2(a).

 

(ii)                                  Splitco will be allocated any Transaction Taxes (including corresponding state and local Taxes) and Transaction Tax-Related Losses that (x) result primarily from, individually or in the aggregate, any breach by Splitco of any of its covenants set forth in Section 7.1 hereof, or (y) result from a Splitco Section 355(e) Event.

 

(b)                                 Transfer Taxes.  Notwithstanding any other provision in this Section 2, all Transfer Taxes shall be allocated 50% to Splitco and 50% to Distributing.

 

2.3                               Tax Payments.  Each Company shall pay the Taxes allocated to it by this Section 2 either to the applicable Tax Authority or to the other Company in accordance with Section 4 and the other applicable provisions of this Agreement.

 

SECTION 3.                         Preparation and Filing of Tax Returns.

 

3.1                               Combined Returns.

 

(a)                                 Preparation of Combined Returns.  Distributing shall be responsible for preparing and filing (or causing to be prepared and filed) all Combined Returns for any Tax Year.

 

3.2                               Separate Returns.

 

(a)                                 Tax Returns to be Prepared by Distributing.  Distributing shall be responsible for preparing and filing (or causing to be prepared and filed) all Separate Returns which relate to one or more members of the Distributing Group for any Tax Year.

 

(b)                                 Tax Returns to be Prepared by Splitco.  Splitco shall be responsible for preparing and filing (or causing to be prepared and filed) all Separate Returns which relate to one or more members of the Splitco Group for any Tax Year.

 

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3.3                               Provision of Information.

 

(a)                                 Distributing shall provide to Splitco, and Splitco shall provide to Distributing, any information about members of the Distributing Group or the Splitco Group, respectively, that the Preparer needs to determine the amount of Taxes due on any Payment Date with respect to a Tax Return for which the Preparer is responsible pursuant to Section 3.1 or 3.2 and to properly and timely file all such Tax Returns.

 

(b)                                 If a member of the Splitco Group supplies information to a member of the Distributing Group, or a member of the Distributing Group supplies information to a member of the Splitco Group, and an officer of the requesting member intends to sign a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then a duly authorized officer of the member supplying such information shall certify, to the best of such officer’s knowledge, the accuracy of the information so supplied.

 

3.4                               Special Rules Relating to the Preparation of Tax Returns.

 

(a)                                 In General.  All Tax Returns that include any members of the Splitco Group or Distributing Group, or any of their respective Affiliates, shall be prepared in a manner that is consistent with the Tax Opinion; provided, however, that Distributing and Splitco may agree to make protective elections under Sections 336(e) and/or 338 of the Code (and any similar provisions of state, local and foreign Tax law) with respect to Splitco and its Subsidiaries in connection with the Distribution (any such election, a “Protective Election”) and to prepare and file Tax Returns consistent with such Protective Elections.  Except as otherwise set forth in this Agreement, and subject to Sections 3.4(b) through (d), the Company responsible for preparing and filing (or causing to be prepared and filed) a Tax Return pursuant to Sections 3.1 or 3.2 shall have the right with respect to such Tax Return to determine (i) the manner in which such Tax Return shall be prepared and filed, including the elections, methods of accounting, positions, conventions and principles of taxation to be used and the manner in which any Tax Item shall be reported, (ii) whether any extensions may be requested, (iii) whether an amended Tax Return shall be filed, (iv) whether any claims for refund shall be made, (v) whether any refunds shall be paid by way of refund or credited against any liability for the related Tax and (vi) whether to retain outside firms to prepare or review such Tax Return.

 

(b)                                 Splitco Tax Returns.  With respect to any Separate Return for which Splitco is responsible pursuant to Section 3.2(b), Splitco and the other members of the Splitco Group must allocate Tax Items between such Separate Return for which Splitco is responsible pursuant to Section 3.2(b) and any related Combined Return for which Distributing is responsible pursuant to Section 3.1 that are filed with respect to the same Tax Year in a manner that is consistent with the reporting of such Tax Items on the related Combined Return for which Distributing is responsible pursuant to Section 3.1.

 

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(c)                                  Election to File Consolidated, Combined or Unitary Tax Returns.  Distributing shall have the sole discretion of filing any Tax Return on a consolidated, combined or unitary basis, if such Tax Return would include at least one member of each Group and the filing of such Tax Return is elective under the relevant Tax Law.

 

(d)                                 Compensatory Equity Interests.

 

(i)                                     Deductions Related to Compensatory Equity Interests.  To the extent permitted by applicable Tax Law, Income Tax deductions with respect to the issuance, exercise, vesting or settlement after the Distribution Date of any Compensatory Equity Interests held by any Person shall be claimed (A) in the case of an active officer or employee, solely by the Group that employs such Person at the time of such issuance, exercise, vesting, or settlement, as applicable; (B) in the case of a former officer or employee, solely by the Group that was the last to employ such Person; and (C) in the case of a director or former director (who is not an officer or employee or former officer or employee of a member of either Group), (x) solely by the Distributing Group if such person was, at any time before or after the Distribution, a director of any member of the Distributing Group, and (y) in any other case, solely by the Splitco Group (the party whose Group is described in (A), (B), or (C), the “Employing Party”).

 

(ii)                                  Withholding and Reporting.  For any Tax Year (or portion thereof), the Employing Party shall (A) satisfy, or shall cause to be satisfied, all applicable Tax reporting obligations with respect to the issuance, exercise, vesting or settlement of Compensatory Equity Interests and (B) satisfy, or cause to be satisfied, all liabilities for Taxes imposed in connection with such issuance, exercise, vesting or settlement (including the employer portion of any employment taxes); provided that, (x) in the event Compensatory Equity Interests are settled by the corporation that is the issuer or obligor under the Compensatory Equity Interest (the “issuing corporation”) and the issuing corporation is not a member of the same Group as the Employing Party, the issuing corporation shall promptly remit to the Employing Party an amount of cash equal to the amount required to be withheld in respect of any withholding Taxes, and (y) the Employing Party shall not be liable for failure to remit to the applicable Tax Authority any amount required to have been withheld from the recipient of the Compensatory Equity Interest in connection with such issuance, exercise, vesting or settlement, except to the extent that the issuing corporation shall have remitted such amount to the Employing Party.  Distributing shall promptly notify Splitco, and Splitco shall promptly notify Distributing, regarding the exercise of any option or the issuance, vesting, exercise or settlement of any other Compensatory Equity Interest to the extent that, as a result of such issuance, exercise, vesting or settlement, any other party may be entitled to a deduction or required to pay any Tax, or such information otherwise may be relevant to the preparation of any Tax Return or payment of any Tax by such other party or parties.

 

(iii)                               Distributing Employees.  For purposes of this Section 3.4(d), if a Person is an officer or employee of Distributing or any member of the Distributing Group for any Tax Year (or portion thereof), then such officer or employee

 

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will exclusively be considered to be employed by Distributing (or the applicable member of the Distributing Group) for such Tax Year (or portion thereof).

 

3.5                               Refunds, Credits or Offsets.

 

(a)                                 Except as otherwise contemplated by this Section 3.5 or Section 3.6, any refunds, credits or offsets with respect to Taxes of any member of (i) the Distributing Group that were reported on any Combined Return shall be for the account of Distributing, (ii) the Splitco Group that were reported on any Combined Return and are attributable to the Pre-Distribution Period shall be for the account of Distributing, (iii) the Splitco Group that were reported on any Combined Return and are attributable to the Post-Distribution Period shall be for the account of Splitco, (iv) the Distributing Group that were reported on any Separate Return required to be filed by a member of the Distributing Group shall be for the account of Distributing, and (v) the Splitco Group that were reported on any Separate Return required to be filed by a member of the Splitco Group shall be for the account of Splitco.

 

(b)                                 Notwithstanding Section 3.5(a), (i) any refunds, credits or offsets with respect to Taxes, including Transaction Taxes, allocated to, and actually paid by, Distributing pursuant to this Agreement shall be for the account of Distributing, and (ii) any refunds, credits or offsets with respect to Taxes, including Transaction Taxes, allocated to, and actually paid by, Splitco pursuant to this Agreement shall be for the account of Splitco.

 

(c)                                  Distributing shall forward to Splitco, or reimburse Splitco for, any such refunds, credits or offsets, plus any interest received thereon, net of any Taxes incurred with respect to the receipt or accrual thereof and any expenses incurred in connection therewith, that are for the account of Splitco within five business days from receipt thereof by Distributing or any of its Affiliates.  Splitco shall forward to Distributing, or reimburse Distributing for, any refunds, credits or offsets, plus any interest received thereon, net of any Taxes incurred with respect to the receipt or accrual thereof and any expenses incurred in connection therewith, that are for the account of Distributing within five business days from receipt thereof by Splitco or any of its Affiliates.  Any refunds, credits or offsets, plus any interest received thereon, or reimbursements not forwarded or made within the five business day period specified above shall bear interest from the date received by the refunding or reimbursing party (or its Affiliates) through and including the date of payment at the Interest Rate (treating the date received as the Due Date for purposes of determining such Interest Rate).  If, subsequent to a Tax Authority’s allowance of a refund, credit or offset, such Tax Authority reduces or eliminates such allowance, any refund, credit or offset, plus any interest received thereon, forwarded or reimbursed under this Section 3.5 shall be returned to the party who had forwarded or reimbursed such refund, credit or offset and interest upon the request of such forwarding party in an amount equal to the applicable reduction, including any interest received thereon.

 

3.6                               Carrybacks.  If and to the extent that Splitco requests in writing that Distributing or any of its Affiliates obtain a refund, credit or offset of Taxes with

 

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respect to the carryback of any Tax attribute of the members of the Splitco Group arising in a Post-Distribution Period to a Pre-Distribution Period, and provided that Distributing or any of its Affiliates would not otherwise be required to forego a refund, credit or offset of Taxes for its own account or otherwise be adversely affected as a result of such carryback, then (i) Distributing (or its Affiliate) shall take all reasonable measures to obtain a refund, credit or offset of Tax with respect to such carryback (including by filing an amended Tax Return), and (ii) to the extent that Distributing or any of its Affiliates receives any refund, credit or offset of Taxes attributable (on a last dollar basis) to such carryback, Distributing shall pay such refund, credit or offset, plus any interest received thereon, to Splitco within five business days from receipt thereof by Distributing or any of its Affiliates; provided, however, that Distributing shall be entitled to reduce the amount of any such refund, credit or offset for its reasonable out-of-pocket costs and expenses incurred in connection therewith and any Taxes incurred with respect to the receipt or accrual thereof; and provided further, that Splitco, upon the request of Distributing, agrees to repay such refund, credit or offset, plus any interest received thereon and net of Taxes, to Distributing in the event, and to the extent, that Distributing is required to repay such refund, credit or offset, plus any interest received thereon, to a Tax Authority.

 

3.7                               Amended Returns.  Any amended Tax Return or claim for Tax refund, credit or offset with respect to any member of the Splitco Group may be made only by the Company (or its Subsidiaries) responsible for preparing the original Tax Return with respect to such member pursuant to Sections 3.1 and 3.2.  Splitco (or its Subsidiaries) shall not, without the prior written consent of Distributing (which consent shall not be unreasonably withheld or delayed), file, or cause to be filed, any such amended Tax Return or claim for Tax refund, credit or offset to the extent that such filing, if accepted, is likely to increase the Taxes allocated to, or the Tax indemnity obligations under this Agreement of, Distributing for any Tax Year (or portion thereof) by more than a de minimis amount; provided, however, that such consent need not be obtained if Splitco agrees to indemnify Distributing for the incremental Taxes allocated to, or the incremental Tax indemnity obligation resulting under this Agreement to, Distributing as a result of the filing of such amended Tax Return.

 

SECTION 4.                         Tax Payments.

 

4.1                               Payment of Taxes to Tax Authority.  Distributing shall be responsible for remitting to the proper Tax Authority the Tax shown on any Tax Return for which it is responsible for the preparation and filing pursuant to Section 3.1 or Section 3.2, and Splitco shall be responsible for remitting to the proper Tax Authority the Tax shown on any Tax Return for which it is responsible for the preparation and filing pursuant to Section 3.2.

 

4.2                               Indemnification Payments.

 

(a)                                 Tax Payments Made by the Distributing Group.  If any member of the Distributing Group is required to make a payment to a Tax Authority for Taxes allocated to Splitco under this Agreement, Splitco will pay the amount of Taxes

 

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allocated to it to Distributing not later than the later of (i) five business days after receiving notification requesting such amount, and (ii) one business day prior to the date such payment is required to be made to such Tax Authority.

 

(b)                                 Tax Payments Made by the Splitco Group.  If any member of the Splitco Group is required to make a payment to a Tax Authority for Taxes allocated to Distributing under this Agreement, Distributing will pay the amount of Taxes allocated to it to Splitco not later than the later of (i) five business days after receiving notification requesting such amount, and (ii) one business day prior to the date such payment is required to be made to such Tax Authority.

 

4.3                               Interest on Late Payments.  Payments pursuant to this Agreement that are not made by the date prescribed in this Agreement or, if no such date is prescribed, not later than five business days after demand for payment is made (the “Due Date”) shall bear interest for the period from and including the date immediately following the Due Date through and including the date of payment at the Interest Rate.  Such interest will be payable at the same time as the payment to which it relates.

 

4.4                               Tax Consequences of Payments.  For all Tax purposes and to the extent permitted by applicable Tax Law, the parties hereto shall treat any payment made pursuant to this Agreement as a capital contribution or a distribution, as the case may be, immediately prior to the Distribution.  If the receipt or accrual of any indemnity payment under this Agreement causes, directly or indirectly, an increase in the taxable income of the recipient under one or more applicable Tax Laws, such payment shall be increased so that, after the payment of any Taxes with respect to the payment, the recipient thereof shall have realized the same net amount it would have realized had the payment not resulted in taxable income.  To the extent that Taxes for which any party hereto (the indemnifying party) is required to pay another party (the indemnified party) pursuant to this Agreement may be deducted or credited in determining the amount of any other Taxes required to be paid by the indemnified party (for example, state Taxes which are permitted to be deducted in determining federal Taxes), the amount of any payment made to the indemnified party by the indemnifying party shall be decreased by taking into account any resulting reduction in other Taxes of the indemnified party.  If such a reduction in Taxes of the indemnified party occurs following the payment made to the indemnified Party with respect to the relevant indemnified Taxes, the indemnified party shall promptly repay the indemnifying party the amount of such reduction when actually realized.  If the Tax benefit arising from the foregoing reduction of Taxes described in this Section 4.4 is subsequently decreased or eliminated, then the indemnifying party shall promptly pay the indemnified party the amount of the decrease in such Tax benefit.

 

SECTION 5.                         Assistance and Cooperation.

 

5.1                               Cooperation.  In addition to the obligations enumerated in Sections 3.3 and 7.7, Distributing and Splitco will cooperate (and cause their respective Subsidiaries and Affiliates to cooperate) with each other and with each other’s agents, including accounting firms and legal counsel, in connection with Tax matters, including provision of relevant documents and information in their possession and making

 

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available to each other, as reasonably requested and available, personnel (including officers, directors, employees and agents of the parties or their respective Subsidiaries or Affiliates) responsible for preparing, maintaining, and interpreting information and documents relevant to Taxes, and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any administrative or judicial proceedings relating to Taxes.

 

SECTION 6.                         Tax Records.

 

6.1                               Retention of Tax Records.  Each of Distributing and Splitco shall preserve, and shall cause their respective Subsidiaries to preserve, all Tax Records that are in their possession, and that could affect the liability of any member of the other Group for Taxes, for as long as the contents thereof may become material in the administration of any matter under applicable Tax Law, but in any event until the later of (x) the expiration of any applicable statutes of limitation, as extended, and (y) seven years after the Distribution Date.

 

6.2                               Access to Tax Records.  Splitco shall make available, and cause its Subsidiaries to make available, to members of the Distributing Group for inspection and copying (x) all Tax Records in their possession that relate to a Pre-Distribution Period, and (y) the portion of any Tax Record in their possession that relates to a Post-Distribution Period and which is reasonably necessary for the preparation of a Tax Return by a member of the Distributing Group or any of their Affiliates or with respect to a Tax Contest by a Tax Authority of such return.  Distributing shall make available, and cause its Subsidiaries to make available, to members of the Splitco Group for inspection and copying the portion of any Tax Record in their possession that relates to a Pre-Distribution Period and which is reasonably necessary for the preparation of a Tax Return by a member of the Splitco Group or any of their Affiliates or with respect to a Tax Contest by a Tax Authority of such return.

 

6.3                               Confidentiality.  Each party hereby agrees that it will hold, and shall use its reasonable best efforts to cause its officers, directors, employees, accountants, counsel, consultants, advisors and agents to hold, in confidence all records and information prepared and shared by and among the parties in carrying out the intent of this Agreement, except as may otherwise be necessary in connection with the filing of Tax Returns or any administrative or judicial proceedings relating to Taxes or unless disclosure is compelled by a governmental authority.  Information and documents of one party (the “Disclosing Party”) shall not be deemed to be confidential for purposes of this Section 6.3 to the extent such information or document (i) is previously known to or in the possession of the other party or parties (the “Receiving Party”) and is not otherwise subject to a requirement to be kept confidential, (ii) becomes publicly available by means other than unauthorized disclosure under this Agreement by the Receiving Party or (iii) is received from a third party without, to the knowledge of the Receiving Party after reasonable diligence, a duty of confidentiality owed to the Disclosing Party.

 

6.4                               Delivery of Tax Records.  Within five business days after receiving notification from Splitco requesting any applicable Tax Records described

 

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below which are in the possession of a member of the Distributing Group, Distributing shall provide to Splitco (to the extent not previously provided or held by any member of the Splitco Group on the Distribution Date) copies of (i) the Separate Returns of any member of the Splitco Group, (ii) the relevant portions of any other Tax Returns with respect to any member of the Splitco Group, and (iii) other existing Tax Records (or the relevant portions thereof) reasonably necessary to prepare and file any Tax Returns of, or with respect to, the members of the Splitco Group, or to defend or contest Tax matters relevant to the members of the Splitco Group, including in each case, all Tax Records related to Tax attributes of the members of the Splitco Group and any and all communications or agreements with, or rulings by, any Tax Authority with respect to any member of the Splitco Group.

 

SECTION 7.                         Restriction on Certain Actions of Distributing and Splitco; Indemnity.

 

7.1                               Restrictive Covenants.

 

(a)                                 General Restrictions.  Following the Effective Time, and except as contemplated by the provisions of Section 7.1(e), Splitco shall not, and shall cause the members of the Splitco Group and their Affiliates not to, and Distributing shall not, and shall cause the members of the Distributing Group and their Affiliates not to, take any action that, or fail to take any action the failure of which, (i) would cause Distributing or any Subsidiary of Distributing immediately prior to the Distribution to recognize gain or loss, or otherwise include any amount in income, as a result of the Restructuring for U.S. federal income tax purposes, (ii) would be inconsistent with the Contribution and Distribution qualifying, or would preclude the Contribution and Distribution from qualifying, as a tax-free transaction described under Sections 368(a)(1)(D), 355 and 361 of the Code (except with respect to the receipt of cash in lieu of fractional shares), or (iii) would cause Distributing, Splitco, any of their respective Subsidiaries at the Effective Time, or the holders of Liberty Ventures Common Stock that receive stock of Splitco in the Distribution, to recognize gain or loss, or otherwise include any amount in income, as a result of the Contribution and/or the Distribution for U.S. federal income tax purposes (except with respect to the receipt of cash in lieu of fractional shares).

 

(b)                                 Restricted Actions.  Without limiting the provisions of Section 7.1(a) hereof, following the Effective Time, Splitco shall not, and shall cause the members of the Splitco Group and their Affiliates not to, and Distributing shall not, and shall cause the members of the Distributing Group and their Affiliates not to, take any action that, or fail to take any action the failure of which, would be inconsistent with, or would cause any Person to be in breach of, any representation or covenant, or any material statement, made in the Tax Materials (except as contemplated by the provisions of Section 7.1(e)).

 

(c)                                  Reporting.  Unless and until there has been a Final Determination to the contrary, each party agrees not to take any position on any Tax Return, in connection with any Tax Contest, or otherwise for Tax purposes (in each case,

 

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excluding any position taken for financial accounting purposes) that is inconsistent with the Tax Opinion, except as contemplated pursuant to the provisions of Section 7.1(e).

 

(d)                                 Election under Code Section 851(b).  Splitco shall not make any election, or file any election with any Tax Return, under Section 851(b) of the Code and the Treasury Regulations promulgated thereunder to be treated as a regulated investment company for U.S. federal income tax purposes with respect to any taxable period (or portion thereof) ending prior to the five year anniversary of the Distribution Date, unless Distributing has provided its written consent to the making or filing of such election.

 

(e)                                  Protective Elections.  Notwithstanding anything herein to the contrary, any actions taken by Distributing, Splitco or any members of their respective Groups with respect to the making of any Protective Elections in respect of the Distribution, and the preparation and filing of any forms, schedules, Tax Returns, and other materials in accordance therewith, shall not be considered a breach or nonperformance of any covenant or agreement made or to be performed by Distributing or Splitco contained in this Agreement.

 

7.2                               Distributing Indemnity.  Distributing agrees to indemnify and hold harmless each member of the Splitco Group and their respective directors, officers, employees, agents, successors and assigns (the “Splitco Indemnitees”) from and against any and all (without duplication) (a) Taxes allocated to Distributing pursuant to Section 2.1, (b) Transaction Taxes and Transaction Tax-Related Losses allocated to Distributing pursuant to Section 2.2, (c) Taxes and Losses arising out of or based upon any breach or nonperformance of any covenant or agreement made or to be performed by Distributing contained in this Agreement, (d) Transfer Taxes allocated to Distributing pursuant to Section 2.2, and (e) reasonable out-of-pocket legal, accounting and other advisory and court fees and expenses incurred in connection with the items described in clauses (a) through (d); provided, however, that notwithstanding clauses (a), (c) and (e) of this Section 7.2, Distributing shall not be responsible for, and shall have no obligation to indemnify or hold harmless any Splitco Indemnitee for, (x) any Transaction Taxes or Transaction Tax-Related Losses that are allocated to Splitco pursuant to Section 2.2, or (y) any Taxes or Losses arising out of or based upon any breach or nonperformance of any covenant or agreement made or to be performed by Splitco contained in this Agreement.

 

7.3                               Splitco Indemnity.  Splitco agrees to indemnify and hold harmless each member of the Distributing Group and their respective directors, officers, employees, agents, successors and assigns (the “Distributing Indemnitees”) from and against any and all (without duplication) (a) Taxes allocated to Splitco pursuant to Section 2.1, (b) Transaction Taxes and Transaction Tax-Related Losses allocated to Splitco pursuant to Section 2.2, (c) Taxes and Losses arising out of or based upon any breach or nonperformance of any covenant or agreement made or to be performed by Splitco contained in this Agreement, (d) Transfer Taxes allocated to Splitco pursuant to Section 2.2, and (e) reasonable out-of-pocket legal, accounting and other advisory and court fees and expenses incurred in connection with the items described in clauses (a)

 

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through (d); provided, however, that notwithstanding clauses (a), (c) and (e) of this Section 7.3, Splitco shall not be responsible for, and shall have no obligation to indemnify or hold harmless any Distributing Indemnitee for, (x) any Transaction Taxes or Transaction Tax-Related Losses that are allocated to Distributing pursuant to Section 2.2, or (y) any Taxes or Losses arising out of or based upon any breach or nonperformance of any covenant or agreement made or to be performed by Distributing contained in this Agreement.

 

7.4                               Scope.  The provisions of this Section 7 are intended to be for the benefit of, and shall be enforceable by, each Distributing Indemnitee and its successors in interest and each Splitco Indemnitee and its successors in interest.

 

7.5                               Notices of Tax Contests (Other than Joint Claims).  Each Company shall provide prompt notice to the other Company of any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware relating to Taxes for which it is or may be indemnified by such other Company hereunder (other than any Transaction Taxes or Transaction Tax-Related Losses which shall be governed by Section 7.8).  Such notice shall contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Tax Authority in respect of any such matters; provided, however, that failure to give such notification shall not affect the indemnification provided hereunder except, and only to the extent that, the indemnifying Company shall have been actually prejudiced as a result of such failure.  Thereafter, the indemnified Company shall deliver to the indemnifying Company such additional information with respect to such Tax Contest in its possession that the indemnifying Company may reasonably request.

 

7.6                               Control of Tax Contests (Other than Joint Claims).

 

(a)                                 General Rule.  Except as provided in Sections 7.6(b) and 7.8, each Company (or the appropriate member of its Group) shall have full responsibility, control and discretion in handling, defending, settling or contesting any Tax Contest involving a Tax reported (or that, it is asserted, should have been reported) on a Tax Return for which such Company is responsible for preparing and filing (or causing to be prepared and filed) pursuant to Section 3 of this Agreement.

 

(b)                                 Non-Preparer Participation Rights.  With respect to a Tax Contest (other than with respect to a Joint Claim) of any Tax Return which could result in a Tax liability for which the Non-Preparer may be liable under this Agreement, (i) the Non-Preparer shall, at its own cost and expense, be entitled to participate in such Tax Contest, (ii) the Preparer shall keep the Non-Preparer updated and informed, and shall consult with the Non-Preparer, (iii) the Preparer shall act in good faith with a view to the merits in connection with the Tax Contest, and (iv) the Preparer shall not settle or compromise such Tax Contest without the prior written consent of the Non-Preparer (which consent shall not be unreasonably withheld or delayed) if the settlement or compromise could have a more than de minimis impact on the Non-Preparer or its Affiliates.

 

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7.7                               Cooperation.  The parties shall provide each other with all information relating to a Tax Contest which is needed by the other party to handle, participate in, defend, settle or contest the Tax Contest.  At the request of any party, the other party shall take any action (e.g., executing a power of attorney) that is reasonably necessary in order for the requesting party to exercise its rights under this Agreement in respect of a Tax Contest.  Splitco shall assist Distributing, and Distributing shall assist Splitco, in taking any remedial actions that are necessary or desirable to minimize the effects of any adjustment made by a Tax Authority.  The indemnifying party shall reimburse the indemnified party for any reasonable out-of-pocket costs and expenses incurred in complying with this Section 7.7.

 

7.8                               Joint Claims.  Each Company shall promptly give notice to the other Company of any pending or threatened Tax Contest, claim, action, suit, investigation or proceeding brought by a third party relating to any Transaction Taxes or Transaction Tax-Related Losses for which such Company is or may be indemnified by the other Company under this Section 7 (each, a “Joint Claim”).  Such notice shall contain (i) factual information (to the extent known) describing any asserted Tax liability or other claim in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Tax Authority or third party relating to the Joint Claim, and (ii) the amount of the Joint Claim.  Such notice shall be given within a reasonable period of time after notice thereof was received by such Company, but any failure to give timely notice shall not affect the indemnities given hereunder except, and only to the extent that, the indemnifying Company shall have been actually prejudiced as a result of such failure.  Thereafter, each Company shall deliver to the other Company such additional information with respect to such Joint Claim in its possession that the other Company may reasonably request.  Distributing and Splitco will have the right to jointly control the defense, compromise or settlement of any Joint Claim.  No indemnified Company shall settle or compromise or consent to entry of any judgment with respect to any such Joint Claim without the prior written consent of the indemnifying Company, which consent may be withheld in the indemnifying Company’s sole discretion.  No indemnifying Company shall settle or compromise or consent to entry of any judgment with respect to any such Joint Claim without the prior written consent of the indemnified Company, which consent may not be unreasonably withheld or delayed.

 

SECTION 8.                         General Provisions.

 

8.1                               Termination.  This Agreement shall terminate at such time as all obligations and liabilities of the parties hereto have been satisfied.  The obligations and liabilities of the parties arising under this Agreement shall continue in full force and effect until all such obligations have been satisfied and such liabilities have been paid in full, whether by expiration of time, operation of law, or otherwise.

 

8.2                               Predecessors or Successors.  Any reference to Distributing, Splitco, Expedia, a Person, or a Subsidiary in this Agreement shall include any predecessors or successors (e.g., by merger or other reorganization, liquidation,

 

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conversion, or election under Treasury Regulations Section 301.7701-3) of Distributing, Splitco, Expedia, such Person, or such Subsidiary, respectively.

 

8.3                               Expenses.  Except as otherwise expressly provided for herein, each party and its Subsidiaries shall bear their own expenses incurred in connection with preparation of Tax Returns and other matters related to Taxes under the provisions of this Agreement for which they are liable.

 

8.4                               Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.  Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement will be brought exclusively in the Court of Chancery of the State of Delaware (the “Delaware Chancery Court”), or, if the Delaware Chancery Court does not have subject matter jurisdiction, in the federal courts located in the State of Delaware.  Each of the parties hereby consents to personal jurisdiction in any such action, suit or proceeding brought in any such court (and of the appropriate appellate courts therefrom) and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.  Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 8.6 shall be deemed effective service of process on such party.

 

8.5                               Waiver of Jury Trial.  EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH OR RELATING TO THIS AGREEMENT.  EACH PARTY HERETO CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH ACTION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.5.

 

8.6                               Notices.  All notices and other communications hereunder shall be in writing and shall be delivered in person, by facsimile (with confirming copy sent by

 

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one of the other delivery methods specified herein), by overnight courier or sent by certified, registered or express air mail, postage prepaid, and shall be deemed given when so delivered in person, or when so received by facsimile or courier, or, if mailed, three (3) calendar days after the date of mailing, as follows:

 

(a)                                 If to Distributing, to:

 

Liberty Interactive Corporation

12300 Liberty Boulevard

Englewood, Colorado  80112

 

Attn:  General Counsel

Facsimile:  (720) 875-5401

 

(b)                                 If to Splitco, to:

 

Liberty Expedia Holdings, Inc.

12300 Liberty Boulevard

Englewood, Colorado  80112

 

Attn:  General Counsel

Facsimile:  (720) 875-5401

 

or to such other address as the party to whom notice is given may have previously furnished to the other parties in writing in the manner set forth above.

 

8.7                               Counterparts.  This Agreement may be executed in two or more identical counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same agreement. The Agreement may be delivered by facsimile transmission of a signed copy thereof.

 

8.8                               Binding Effect; Assignment.  This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Except with respect to a merger of a party, neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any party hereto without the prior written consent of the other party; provided, however, that each of Distributing and Splitco may assign its respective rights, interests, duties, liabilities and obligations under this Agreement to any other member of their Group, but such assignment shall not relieve Distributing or Splitco, as the assignor, of its liabilities or obligations hereunder.

 

8.9                               Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  Upon a determination that any provision of this Agreement is prohibited or unenforceable in any jurisdiction, the parties shall negotiate in good faith to modify this Agreement so as to

 

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effect the original intent of the parties as closely as possible in an acceptable manner in order that the provisions contemplated hereby are consummated as originally contemplated to the fullest extent possible.

 

8.10                        Amendments; Waivers.  Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective.  No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  Except as otherwise provided herein, the rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by applicable law.  Any consent provided under this Agreement must be in writing, signed by the party against whom enforcement of such consent is sought.

 

8.11                        Effective Date.  This Agreement shall become effective on the date recited above on which the parties entered into this Agreement.

 

8.12                        Change in Law.  Any reference to a provision of the Code or any other Tax Law shall include a reference to any applicable successor provision or law.

 

8.13                        Authorization, Etc.  Each of the parties hereto hereby represents and warrants that it has the power and authority to execute, deliver and perform this Agreement, that this Agreement has been duly authorized by all necessary corporate action on the part of such party, that this Agreement constitutes a legal, valid and binding obligation of such party and that the execution, delivery and performance of this Agreement by such party does not contravene or conflict with any provision of law or of its charter or bylaws or any agreement, instrument or order binding such party.

 

8.14                        No Third Party Beneficiaries.  Except as provided in Sections 7.2 and 7.3 of this Agreement, this Agreement is solely for the benefit of Distributing, Splitco, and their Subsidiaries and is not intended to confer upon any other Person any rights or remedies hereunder.  Notwithstanding anything in this Agreement to the contrary, this Agreement is not intended to confer upon any Splitco Indemnitees any rights or remedies against Splitco hereunder, and this Agreement is not intended to confer upon any Distributing Indemnitees any rights or remedies against Distributing hereunder.

 

8.15                        Entire Agreement.  This Agreement embodies the entire understanding among the parties relating to its subject matter and supersedes and terminates any prior agreements and understandings among the parties with respect to such subject matter, and no party to this Agreement shall have any right, responsibility, obligation or liability under any such prior agreement or understanding.  Any and all prior correspondence, conversations and memoranda are merged herein and shall be without effect hereon.  No promises, covenants or representations of any kind, other than those expressly stated herein, have been made to induce any party to enter into this Agreement.

 

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8.16                        No Strict Construction; Interpretation.

 

(a)                                 Distributing and Splitco each acknowledge that this Agreement has been prepared jointly by the parties hereto and shall not be strictly construed against any party hereto.

 

(b)                                 When a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference shall be to an Article of, a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated.  The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”.  The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein.  The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term.  Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.  References to a Person are also to its permitted successors and assigns.

 

8.17                        Headings.  The headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.

 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers as of the date set forth above.

 

	
 
    	
LIBERTY   INTERACTIVE CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
/s/ Albert Rosenthaler
    
	
 
    	
 
    	
Name: 
    	
Albert Rosenthaler
    
	
 
    	
 
    	
Title: 
    	
Chief Corporate   Development Officer
    
	
 
    	
 
    	
 
    
	
 
    	
LIBERTY EXPEDIA   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
/s/ Tim Lenneman
    
	
 
    	
 
    	
Name: 
    	
Tim Lenneman
    
	
 
    	
 
    	
Title: 
    	
Senior Vice President
    

 

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