Document:

EXHIBIT 10.1

  

   

    

  EXECUTION VERSION

    

  

  

  
    AGREEMENT

    This Agreement (this “Agreement”) is made and entered into as of June 7, 2020 by and among Commvault
      Systems, Inc. (the “Company”) and the entities and natural persons set forth in the signature pages hereto (collectively, “Starboard”) (each of the Company and Starboard, a “Party” to this Agreement, and collectively, the “Parties”).

    RECITALS

    WHEREAS, the Company and Starboard have engaged in various discussions and communications concerning the
      Company’s business, financial performance and strategic plans;

    WHEREAS, as of the date hereof, Starboard has a beneficial ownership (as determined under Rule 13d-3 promulgated
      under the Securities Exchange Act of 1934, as amended, or the rules or regulations promulgated thereunder (the “Exchange Act”)) interest in the Common Stock, $0.01 par value per share, of the Company (the Common Stock”) totaling, in
      the aggregate, 4,316,000 shares, or approximately 9.3% of the Common Stock issued and outstanding on the date hereof;

    WHEREAS, Starboard submitted a letter to the Company on April 9, 2020 (the “Nomination Notice”) nominating
      a slate of director candidates to be elected to the Board of Directors of the Company (the “Board”) at the Company’s 2020 Annual Meeting of Stockholders (the “2020 Annual Meeting”); and

    WHEREAS, as of the date hereof, the Company and Starboard have determined to come to an agreement with respect to
      the composition of the Board and certain other matters, as provided in this Agreement.

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

    
      
        	1.	
                Board Appointments and Related Agreements.

              

      

    

    (a)          Board Appointments

    (i)          The Company agrees
        that immediately following the execution of this Agreement, the Board and all applicable committees of the Board shall take all necessary actions to (A) accept the resignations tendered by Alan G. Bunte, Frank J. Fanzilli, Jr. and Daniel Pulver as
        Class II directors of the Company, who the Company hereby represents have submitted, or shall no later than the date hereof submit, letters of resignation to the Board that will become effective immediately prior to the appointment of the Starboard
        Independent Appointees (as defined below) to the Board and (B) appoint R. Todd Bradley, Arlen Shenkman and Allison Pickens (each a “Starboard Independent Appointee” and collectively, the “Starboard Independent Appointees”) as Class II directors of the Company with terms expiring at the 2020 Annual Meeting. The Company agrees that it will nominate the Starboard Independent Appointees for
        election at the 2020 Annual Meeting as Class II directors with terms expiring at the Company’s 2023 Annual Meeting of

    
      
        

    

    Stockholders and will recommend, support and solicit proxies for the election of the Starboard Independent Appointees
        at the 2020 Annual Meeting in the same manner as it recommends, supports, and solicits proxies for the election of the Company’s other Class II director nominee.  The Company shall use its reasonable best efforts to hold the 2020 Annual Meeting no
        later than August 30, 2020.

    
      (ii)          If any Starboard Independent Appointee (or any Starboard Replacement
          Director (as defined below)) is unable or unwilling to serve as a director and ceases to be a director, resigns as a director, is removed as a director, or for any other reason fails to serve or is not serving as a director at any time prior to
          the expiration of the Standstill Period (as defined below), and at such time Starboard beneficially owns (as determined under Rule 13d-3 promulgated under the Exchange Act) in the aggregate at least the lesser of 3% of the Company’s
          then-outstanding Common Stock and 1,388,180 shares of Common Stock (subject to adjustment for stock splits, reclassifications, combinations and similar adjustments) (the “Minimum Ownership Threshold”), Starboard shall have the ability to
          recommend a person to be a Starboard Replacement Director in accordance with this Section 1(a)(ii) (any such replacement nominee, when appointed to the Board, shall be referred to as a “Starboard Replacement Director”). Any
          Starboard Replacement Director must (A) be reasonably acceptable to the Board (such acceptance not to be unreasonably withheld), (B) qualify as “independent” pursuant to NASDAQ listing standards, (C) have the relevant financial and business
          experience to be a director of the Company, (D) satisfy the publicly disclosed guidelines and policies of the Company with respect to service on the Board and (E) be independent of Starboard (for the avoidance of doubt, the nomination by
          Starboard of such person to serve on the board of any other company shall not (in and of itself) cause such person to not be deemed independent of Starboard).  The Nominations and Governance Committee shall make its determination and
          recommendation regarding whether such Starboard Replacement Director nominee meets the foregoing criteria within five (5) business days after (1) such nominee has submitted to the Company the documentation required by Section 1(c)(iv) and
          (2) representatives of the Board have conducted customary interview(s) and background checks of such nominee, if such interviews or background checks are requested by the Board or the Nominations and Governance Committee. The Company shall use
          its reasonable best efforts to conduct any interview(s) and background checks contemplated by this Section 1(a)(ii) as promptly as practicable, but in any case, assuming reasonable availability of the nominee, within ten (10) business
          days after Starboard’s submission of such nominee. In the event the Nominations and Governance Committee does not accept a person recommended by Starboard as the Starboard Replacement Director, Starboard shall have the right to recommend
          additional substitute person(s) whose appointment shall be subject to the Nominations and Governance Committee recommending such person in accordance with the procedures described above. Upon the recommendation of a Starboard Replacement Director
          nominee by the Nominations and Governance Committee, the Board shall vote on the appointment of such Starboard Replacement Director to the Board no later than five (5) business days after the Nominations and Governance Committee’s recommendation
          of such Starboard Replacement Director; provided, however, that if the Board does not appoint such Starboard Replacement Director to the Board pursuant to this Section 1(a)(ii), the Parties shall continue to follow the
          procedures of this Section 1(a)(ii) until a Starboard Replacement Director is elected to the Board. Subject to NASDAQ rules and applicable law, upon a Starboard Replacement Director’s appointment to the Board, the Board and all applicable committees of the Board shall take all necessary actions to appoint such Starboard Replacement Director to any applicable committee of the Board of which the replaced director 

    

    
      
        

    

    was a member immediately prior to such director’s resignation or removal. Subject to NASDAQ rules and applicable law,
        until such time as any Starboard Replacement Director is appointed to any applicable committee of the Board, the other Starboard Independent Appointee will serve as an interim member of such applicable committee.  Any Starboard Replacement Director
        designated pursuant to this Section 1(a)(ii) replacing a Starboard Independent Appointee prior to the mailing of the Company’s definitive proxy statement for the 2020 Annual Meeting shall stand for election at the 2020 Annual Meeting together with
        the other director nominees.

    (iii)          During the period
        commencing with the date of this Agreement through the expiration of the Standstill Period, the Board and all applicable committees of the Board shall not (A) increase the size of the Board to more than eleven (11) directors or (B) seek to change
        the classes on which the Board members serve, in each case without the prior written consent of Starboard.

    (b)          Board Committees.

    (i)          Operating Committee.

    Immediately following the execution of this Agreement, the Board and all applicable committees of the Board shall
      take all necessary actions to (A) form an Operating Committee of the Board (the “Operating Committee”) to oversee the Company’s budgeting processes and to work with management to establish margin targets and a balanced capital allocation
      policy for the Company, which targets and policy will be publicly announced no later than with the quarterly announcement for the quarter ended December 31, 2020 (provided, however, that if the Operating Committee determines that it
      would be in the Company’s best interests to make such announcement earlier than such time, then the deadline for making such announcement shall be such earlier time as shall be determined by the Operating Committee) and (B) appoint R. Todd Bradley,
      Arlen Shenkman and Charles Moran to the Operating Committee, and appoint Mr. Shenkman as its Chairperson.  Immediately upon the formation of the Operating Committee, the Company agrees that Starboard shall have the opportunity to meet or speak with
      the Operating Committee in order to discuss and share information with the Operating Committee relating to Starboard’s views on the establishment of the margin targets and to make recommendations to the Operating Committee regarding such margin
      targets.  The Company further agrees that, subject to entering into a customary, short-term non-disclosure agreement with the Company in a form to be agreed between the Parties, Starboard will be entitled to review and discuss the Operating
      Committee’s recommendations on the margin targets prior to such targets being approved by the Board and publicly announced.  During the Standstill Period, the Operating Committee shall be composed of three (3) directors, including Messrs. Bradley and
      Shenkman and Charles Moran, with Mr. Shenkman serving as its Chairperson.  The Operating Committee will be provided with the resources and authority necessary for the Operating Committee to discharge its purpose, including to hire and direct the work
      of any consultant and/or adviser to assist the Operating Committee if requested by the Operating Committee.

    (ii)          Audit Committee.

    Immediately following the execution of this Agreement, the Board and all applicable committees of the Board shall
      take all necessary actions to appoint Arlen Shenkman to 

    
      
        

    

    the Audit Committee of the Board.  During the Standstill Period, unless otherwise agreed by the Audit Committee, the Audit Committee
      shall be composed of three (3) directors, consisting of Mr. Shenkman, Charles Moran and David Walker.

    (iii)          Compensation
          Committee.

    Immediately following the execution of this Agreement, the Board and all applicable committees of the Board shall
      take all necessary actions to appoint R. Todd Bradley to the Compensation Committee of the Board.  During the Standstill Period, unless otherwise agreed by the Compensation Committee, the Compensation Committee shall be composed of three (3)
      directors, consisting of Mr. Bradley, Keith Geeslin and YY Lee.

    (iv)          Nominations and
          Governance Committee.

    Immediately following the execution of this Agreement, the Board and all applicable committees of the Board shall
      take all necessary actions to appoint Allison Pickens to the Nominations and Governance Committee of the Board.  During the Standstill Period, unless otherwise agreed by the Nominations and Governance Committee, the Nominations and Governance
      Committee shall be composed of three (3) directors, consisting of Ms. Pickens, Gary Smith, and Martha Bejar.

    (v)          Executive
          Committee

    Immediately following the execution of this Agreement, the Board and all applicable committees of the Board shall
      take all necessary actions to cause the Executive Committee of the Board to be disbanded.

    (vi)          Director
          Committee Appointments.

    Subject to NASDAQ rules and applicable laws, the Board and all applicable committees of the Board shall take all
      actions necessary to ensure that during the Standstill Period, each committee and subcommittee of the Board, including any new committee(s) and subcommittee(s) that may be established, shall include at least one (1) Starboard Independent Appointee
      (or a Starboard Replacement Director).  Without limiting the foregoing, the Board shall give each of the Starboard Independent Appointees the same due consideration for membership to any committee of the Board as any other independent director.

    (c)          Additional Agreements.

    (i)          Starboard shall
        comply, and shall cause each of its controlled Affiliates and Associates to comply with the terms of this Agreement and shall be responsible for any breach of this Agreement by any such controlled Affiliate or Associate.  As used in this Agreement,
        the terms “Affiliate” and “Associate” shall have the respective meanings set forth in Rule 12b-2 promulgated by the Securities and Exchange Commission under the Exchange Act and shall include all persons or entities that at any time during the term of this Agreement become Affiliates or Associates of any person or entity referred to in this Agreement. 

    
      
        

    

    (ii)          Starboard, on behalf
        of itself and its controlled Affiliates and Associates, hereby irrevocably withdraws its Nomination Notice and any related materials or notices submitted to the Company in connection therewith. During the Standstill Period, except as otherwise
        provided herein, Starboard shall not, and shall cause each of its controlled Affiliates and Associates not to, directly or indirectly, (A) nominate or recommend for nomination any person for election at any annual or special meeting of the
        Company’s stockholders, (B) submit any proposal for consideration at, or bring any other business before, any annual or special meeting of the Company’s stockholders, or (C) initiate, encourage or participate in any “vote no,” “withhold”
        or similar campaign with respect to any annual or special meeting of the Company’s stockholders. Starboard shall not publicly or privately encourage or support any other stockholder, person or entity to take any of the actions described in this Section

          1(c)(ii).

    (iii)          Starboard shall
        appear in person or by proxy at the 2020 Annual Meeting and vote all shares of Common Stock beneficially owned by Starboard at the 2020 Annual Meeting (A) in favor of all directors nominated by the Board for election, (B) in favor of the
        ratification of the appointment of Ernst & Young LLP as the Company’s registered public accounting firm for the fiscal year ended March 31, 2021, (C) in accordance with the Board’s recommendation with respect to the Company’s “say-on-pay”
        proposal and (D) in accordance with the Board’s recommendation with respect to any other Company proposal or stockholder proposal or nomination presented at the 2020 Annual Meeting; provided, however, that in the event Institutional
        Shareholder Services Inc. (“ISS”) or Glass Lewis & Co., LLC (“Glass Lewis”) recommends otherwise with respect to the Company’s “say-on-pay” proposal or any other Company proposal or stockholder proposal presented at the 2020
        Annual Meeting (other than proposals relating to the election of directors), Starboard shall be permitted to vote in accordance with the ISS or Glass Lewis recommendation.  Starboard further agrees that it will appear in person or by proxy at any
        special meeting of the Company’s stockholders held during the Standstill Period and, to the extent any such special meeting includes the appointment, election or removal of directors, vote all shares of Common Stock beneficially owned by Starboard
        at such special meeting in accordance with the Board’s recommendation on any proposal relating to the appointment, election or removal of directors.

    (iv)          Starboard
        acknowledges that, prior to the date of this Agreement, each Starboard Independent Appointee and prior to any appointment, each Starboard Replacement Director, is required to submit to the Company a fully completed copy of the Company’s standard
        director & officer questionnaire, all other documents required of nominees for director pursuant to the Company’s Amended and Restated Bylaws (the “Bylaws”) and other reasonable and customary
        director onboarding documentation applicable to directors of the Company.

    (v)          The Company agrees
        that the Board and all applicable committees of the Board shall take all necessary actions, effective no later than immediately following the execution of this Agreement, to determine, in connection with their initial appointment as a director and
        nomination by the Company at the 2020 Annual Meeting, that each of the Starboard Independent Appointees is deemed to be (A) a member of the “Incumbent Board” or “Continuing Director” (as such term may be defined in the definition of “Change in
        Control,” “Change of Control” (or any similar term) under the Company’s incentive plans, options plans, equity plans, deferred compensation plans, employment agreements, severance
        plans, retention plans, loan agreements, or indentures, including, without limitation, the Company’s Employment Agreements with its 

    
      
        

    

    executive officers, or any other related plans or agreements that refer to any such plan, policy or agreement’s
        definition of “Change in Control” or any similar term) and (B) a member of the Board as of the beginning of any applicable measurement period for the purposes of the definition of “Change in Control” or any similar term under the Company’s
        incentive plans, options plans, equity plans, deferred compensation plans, employment agreements, severance plans, retention plans, loan agreements, or indentures, including, without limitation, the Company’s Employment Agreements with its
        executive officers. 

    
      
        	2.	
                Standstill Provisions.

              

      

    

    (a)          Starboard agrees
        that, from the date of this Agreement until the earlier of (x) the date that is fifteen (15) business days prior to the deadline for the submission of stockholder nominations for the 2021 Annual Meeting pursuant to the Bylaws or (y) the date that
        is one hundred (100) days prior to the first anniversary of the 2020 Annual Meeting (the “Standstill Period”), Starboard shall not, and shall cause each of its controlled Affiliates and Associates not to, in each case directly or indirectly,
        in any manner:

    (i)          engage in any
        solicitation of proxies or become a “participant” in a “solicitation” (as such terms are defined in Regulation 14A under the Exchange Act) of proxies (including, without limitation, any solicitation of consents that seeks to call a
        special meeting of stockholders), in each case, with respect to securities of the Company;

    (ii)          form, join, or in
        any way knowingly participate in any “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to the shares of the Common Stock (other than a “group” that includes all or some of the persons or entities listed
        on the signature pages hereto (referred to herein as the members of Starboard), but does not include any other entities or persons that are not members of Starboard as of the date hereof); provided, however, that nothing herein
        shall limit the ability of an Affiliate of Starboard to join the “group” following the execution of this Agreement, so long as any such Affiliate agrees to be bound by the terms and conditions of this Agreement;

    (iii)          deposit any shares
        of Common Stock in any voting trust or subject any shares of Common Stock to any arrangement or agreement with respect to the voting of any shares of Common Stock, other than any such voting trust, arrangement or agreement solely among the members
        of Starboard and otherwise in accordance with this Agreement;

    (iv)          seek or submit, or
        knowingly encourage any person or entity to seek or submit, nomination(s) in furtherance of a “contested solicitation” for the appointment, election or removal of directors with respect to the Company or seek, or knowingly encourage or take
        any other action with respect to the appointment, election or removal of any directors, in each case in opposition to the recommendation of the Board; provided, however, that nothing in this Agreement shall prevent Starboard or its
        Affiliates or Associates from taking actions in furtherance of identifying director candidates in connection with the 2021 Annual Meeting so long as such actions do not create a public disclosure obligation for Starboard or the Company, are not
        publicly disclosed by Starboard or its representatives, Affiliates or Associates, and are undertaken on a basis reasonably designed to be confidential and in accordance in all
        material respects with Starboard’s normal practices in the circumstances; 

    
      
        

    

    (v)          (A) make any proposal
        for consideration by stockholders at any annual or special meeting of stockholders of the Company or through any referendum of stockholders, (B) make any offer or proposal (with or without conditions) with respect to any merger, tender (or
        exchange) offer, acquisition, recapitalization, restructuring, disposition or other business combination involving the Company or any of its subsidiaries, (C) affirmatively solicit a third party to make an offer or proposal (with or without
        conditions) with respect to any merger, tender (or exchange) offer, acquisition, recapitalization, restructuring, disposition or other business combination involving the Company or any of its subsidiaries, or publicly encourage, initiate or support
        any third party in making such an offer or proposal, (D) publicly comment on any third party proposal regarding any merger, tender (or exchange) offer, acquisition, recapitalization, restructuring, disposition, or other business combination with
        respect to the Company or any of its subsidiaries by such third party prior to such proposal becoming public or (E) call or seek to call a special meeting of stockholders;

    (vi)          seek, alone or in
        concert with others, representation on the Board, except as specifically permitted in Section 1;

    (vii)          advise, knowingly
        encourage, support or knowingly influence any person or entity with respect to the voting or disposition of any securities of the Company at any annual or special meeting of stockholders, except in accordance with Section 1; or

    (viii)          make any request
        or submit any proposal to amend the terms of this Agreement other than through non-public communications with the Company or the Board that would not be reasonably determined to trigger public disclosure obligations for any Party.

    (b)          Except as expressly
        provided in Section 1 or Section 2(a), Starboard shall be entitled to (i) vote any shares of Common Stock that it beneficially owns as Starboard determines in its sole discretion and (ii) disclose, publicly or otherwise, how it
        intends to vote or act with respect to any securities of the Company, any stockholder proposal or other matter to be voted on by the stockholders of the Company and the reasons therefor.

    (c)          Nothing in Section

          2(a) shall be deemed to limit the exercise in good faith by any Starboard Independent Appointee (or a Starboard Replacement Director) of such person’s fiduciary duties solely in such person’s capacity as a director of the Company and in a
        manner consistent with such person’s and Starboard’s obligations under this Agreement.

    
      
        	3.	
                Representations and Warranties of the Company.

              

      

    

    The Company represents and warrants to Starboard that (a) the Company has the corporate power and authority to
      execute this Agreement and to bind it thereto, (b) this Agreement has been duly and validly authorized, executed and delivered by the Company, and assuming due execution by each counterparty hereto, constitutes a valid and binding obligation and
      agreement of the Company, and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws
      generally affecting the rights of creditors and subject to general equity principles, (c) immediately prior to entering into this Agreement, the Board was composed of eleven (11) directors and there are no vacancies on the Board and (d) the 

    
      
        

    

    execution, delivery and performance of this Agreement by the Company does not and will not (i) violate or conflict with any law,
      rule, regulation, order, judgment or decree applicable to the Company, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both would constitute such a breach, violation or default)
      under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document or material agreement to which the Company is a party or by which it is
      bound. 

    
      
        	4.	
                Representations and Warranties of Starboard.

              

      

    

    Starboard represents and warrants to the Company that (a) the authorized signatory of Starboard set forth on the
      signature page hereto has the power and authority to execute this Agreement and any other documents or agreements to be entered into in connection with this Agreement and to bind Starboard thereto, (b) this Agreement has been duly authorized,
      executed and delivered by Starboard, and assuming due execution by each counterparty hereto, is a valid and binding obligation of Starboard, enforceable against Starboard in accordance with its terms except as enforcement thereof may be limited by
      applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles, (c) the execution of this Agreement, the consummation of any of
      the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case in accordance with the terms hereof, will not conflict with, or result in a breach or violation of the organizational documents of Starboard as currently in
      effect, (d) the execution, delivery and performance of this Agreement by Starboard does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to Starboard, or (ii) result in any breach or
      violation of or constitute a default (or an event which with notice or lapse of time or both would constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of
      termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which such member is a party or by which it is bound, (e) as of the date of this Agreement,
      Starboard is deemed to beneficially own 4,316,000 shares of Common Stock, (f) as of the date hereof, and except as set forth in clause (e) above, Starboard does not currently have, and does not currently have any right to acquire, any interest in any
      securities or assets of the Company or its Affiliates (or any rights, options or other securities convertible into or exercisable or exchangeable (whether or not convertible, exercisable or exchangeable immediately or only after the passage of time
      or the occurrence of a specified event) for such securities or assets or any obligations measured by the price or value of any securities of the Company or any of its controlled Affiliates, including any swaps or other derivative arrangements
      designed to produce economic benefits and risks that correspond to the ownership of shares of Common Stock or any other securities of the Company, whether or not any of the foregoing would give rise to beneficial ownership (as determined under Rule
      13d-3 promulgated under the Exchange Act), and whether or not to be settled by delivery of  shares of Common Stock or any other class or series of the Company’s stock, payment of cash or by other consideration, and without regard to any short
      position under any such contract or arrangement) and (g) Starboard has not (except as disclosed in the Nomination Letter), directly or indirectly, compensated or agreed to compensate, and will not, directly or indirectly, compensate or agree to
      compensate, any of the Starboard Independent Appointees (or any Starboard Replacement Director, if applicable) for serving as a nominee or director of the Company with any cash, securities (including any rights or options convertible into 

    
      
        

    

    or exercisable for or exchangeable into securities or any profit sharing agreement or arrangement), or other form of compensation
      related to the Company or its securities. For the avoidance of doubt, nothing herein shall prohibit Starboard for compensating or agreeing to compensate any person for his or her respective service as a nominee or director of any other company. 

    
      
        	5.	
                Press Release.

              

      

    

    Promptly following the execution of this Agreement, the Company and Starboard shall jointly issue a mutually
      agreeable press release (the “Press Release”) announcing certain terms of this Agreement in the form attached hereto as Exhibit A. Prior to the issuance of the Press Release and subject to the terms of this Agreement, neither
      the Company (including the Board and any committee thereof) nor Starboard shall issue any press release or make any public announcement regarding this Agreement or the matters contemplated hereby, except as required by law or the rules of any stock
      exchange, or with the prior written consent of the other Party. During the Standstill Period, neither the Company nor Starboard shall make any public announcement or statement that is inconsistent with or contrary to the terms of this Agreement,
      except as required by law or the rules of any stock exchange.

    
      
        	6.	
                Specific Performance.

              

      

    

    Each of Starboard, on the one hand, and the Company, on the other hand, acknowledges and agrees that irreparable
      injury to the other Party hereto would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that such injury would not be adequately compensable by the
      remedies available at law (including the payment of money damages). It is accordingly agreed that Starboard, on the one hand, and the Company, on the other hand (the “Moving Party”), shall each be entitled to specific enforcement of, and
      injunctive relief to prevent any violation of, the terms hereof, and each Party further agrees to waive any requirement for the security or posting of any bond in connection with such remedy and the other Party will not take action, directly or
      indirectly, in opposition to the Moving Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity. This Section 6 is not the exclusive remedy for any violation of this Agreement.

    
      
        	7.	
                Expenses.

              

      

    

    The Company shall reimburse Starboard for its reasonable, documented out-of-pocket fees and expenses (including
      legal expenses) incurred in connection with Starboard’s involvement at the Company through the date of this Agreement, including, but not limited to its Schedule 13D filings, its preparation and delivery of the Nomination Letter, and the negotiation
      and execution of this Agreement, provided that such reimbursement shall not exceed $350,000 in the aggregate.

    
      
        	8.	
                Severability.

              

      

    

    If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to
      be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. It is hereby stipulated and
      declared to be the intention of the Parties that the Parties would have executed the remaining terms, provisions, covenants and 

    
      
        

    

    restrictions without including any of such which may be hereafter declared invalid, void or unenforceable. In addition, the Parties
      agree to use their best efforts to agree upon and substitute a valid and enforceable term, provision, covenant or restriction for any of such that is held invalid, void or enforceable by a court of competent jurisdiction. 

    
      
        	9.	
                Notices.

              

      

    

    Any notices, consents, determinations, waivers or other communications required or permitted to be given under
      the terms of this Agreement must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; (b) upon confirmation of receipt, when sent by email (provided such confirmation is not automatically
      generated); or (c) two (2) business days after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the Party to receive the same. The addresses and facsimile numbers (as applicable) for such
      communications shall be:

    If to the Company:

    
      	 	
              Commvault Systems, Inc.

              1 Commvault Way

              Tinton Falls, New Jersey 07724

            
	 	Attention:	Warren Mondschein, Esq.
	 	E-mail:	wmondschein@commvault.com

    

    

      

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

    
      
        	 	
                Paul, Weiss, Rifkind, Wharton & Garrison LLP

                1285 Avenue of the Americas

                New York, New York 10019

              
	 	Attention:	
                Scott A. Barshay, Esq.

                Steven J. Williams, Esq. 

              
	 	Facsimile:	(212) 757-3990
	 	E-mail:	
                sbarshay@paulweiss.com

                swilliams@paulweiss.com 

              

      

    

    
      
        

    

    If to Starboard or any member thereof:

     

    

    
      
        
          	 	Starboard Value LP

                  777 Third Avenue, 18th Floor

                  New York, NY 10017
	 	Attention:	
                  Jeffrey C. Smith

                  Peter A. Feld

                
	 	Facsimile:	(212) 845-7989
	 	E-mail:	
                  jsmith@starboardvalue.com

                  pfeld@starboardvalue.com

                

        

      

    

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

    
      
        
          
            	 	Olshan Frome Wolosky LLP

                    1325 Avenue of the Americas

                    New York, New York 10019
	 	Attention:	
                    Steve Wolosky, Esq.

                    Andrew Freedman, Esq.

                  
	 	Facsimile:	(212) 451-2222
	 	E-mail:	
                    swolosky@olshanlaw.com

                    afreedman@olshanlaw.com

                  

          

        

      

    

    
      
        	10.	
                Applicable Law.

              

      

    

    This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of
      Delaware without reference to the conflict of laws principles thereof that would result in the application of the law of another jurisdiction. Each of the Parties hereto irrevocably agrees that any legal action or proceeding with respect to this
      Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other Party hereto or its successors or
      assigns, shall be brought and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular
      matter, any federal court within the State of Delaware). Each of the Parties hereto hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property, generally and unconditionally, to the personal
      jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement in any court other than the aforesaid courts. Each of the Parties hereto hereby irrevocably waives, and agrees not to assert in any action or
      proceeding with respect to this Agreement, (a) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or
      from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) to the fullest extent permitted by applicable
      legal requirements, any claim that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be
      enforced in or by such courts.

    
      
        

    

    
      
        	11.	
                Counterparts.

              

      

    

    This Agreement may be executed in two or more counterparts, each of which shall be considered one and the same
      agreement and shall become effective when counterparts have been signed by each of the Parties and delivered to the other Party (including by means of electronic delivery or facsimile).

    
      
        	12.	
                Mutual Non-Disparagement.

              

      

    

    Subject to applicable law, each of the Parties covenants and agrees that, during the Standstill Period, or if
      earlier, until such time as the other Party or any of its agents, subsidiaries, controlled affiliates, successors, assigns, partners, members, officers, key employees or directors shall have breached this Section 12, neither it nor any of its
      respective agents, subsidiaries, controlled affiliates, successors, assigns, partners, members, officers, key employees or directors shall in any way publicly criticize, disparage, call into disrepute or otherwise defame or slander the other Party or
      such other Party’s subsidiaries, affiliates, successors, assigns, officers (including any current officer of a Party or a Party’s subsidiaries who no longer serves in such capacity at any time following the execution of this Agreement), directors
      (including any current officer or director of a Party or a Party’s subsidiaries who no longer serves in such capacity in connection with the execution of this Agreement), employees, stockholders, agents, attorneys or representatives, or any of their
      businesses, products or services, in any manner that would reasonably be expected to damage the business or reputation of such other Party, their businesses, products or services or their subsidiaries, affiliates, successors, assigns, officers (or
      former officers), directors (or former directors), employees, shareholders, agents, attorneys or representatives.

    
      
        	13.	
                Securities Laws.

              

      

    

    Starboard acknowledges that it is aware, and will advise each of its representatives who are informed as to the
      matters that are the subject of this Agreement, that the United States securities laws may prohibit any person who directly or indirectly has received from an issuer material, non-public information from purchasing or selling securities of such
      issuer or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities.

    
      
        	14.	
                Entire Agreement; Amendment and Waiver; Successors and Assigns; Third Party Beneficiaries; Term.

              

      

    

    This Agreement (including its exhibits) contains the entire understanding of the Parties with respect to its
      subject matter. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings between the Parties other than those expressly set forth herein. No modifications of this Agreement can be made except in writing
      signed by an authorized representative of each the Company and Starboard. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or
      partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies
      provided by law. The terms

    
      
        

    

    and conditions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the Parties hereto and their
      respective successors, heirs, executors, legal representatives, and permitted assigns. No Party shall assign this Agreement or any rights or obligations hereunder without, with respect to Starboard, the prior written consent of the Company, and with
      respect to the Company, the prior written consent of Starboard. This Agreement is solely for the benefit of the Parties and is not enforceable by any other persons or entities. This Agreement shall terminate at the end of the Standstill Period,
      except provisions of Section 8, Section 9, Section 10, Section 13 and Section 14, and any liability for breach prior to such termination, in each case which shall survive such termination.

    [The remainder of this page intentionally left blank]

      

      

      

      

      

    

    
      
        

    

    IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the Parties as of the
      date hereof.

    	 	
            COMMVAULT SYSTEMS, INC.

          	 
	 	 	 
	 	
            By:

          	/s/ Warren H. Mondschein	 
	 	 	
            Name:

          	Warren H. Mondschein

          	 
	 	 	
            Title:

          	Vice President and General Counsel

          	 

    

    

    

    

    

    

    

    

    

    

    
      [Signature Page to Agreement]

    

    
      
        

    

    	 	
            STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD 

            

          	 
	 	 	 
	 	By:	
             Starboard Value LP,

            its investment manager

          	 
	 	 	 	 
	 	 	 	 
	 	STARBOARD VALUE AND OPPORTUNITY S LLC	 
	 	 	 
	 	By: 	
            Starboard Value LP,

            its manager

          	 
	 	 	 	 
	 	 	 	 
	 	
            STARBOARD VALUE AND OPPORTUNITY C LP

          	 
	 	 	 
	 	By: 	
            Starboard Value R LP,

            its general partner

          	 
	 	 	 	 
	 	 	 	 
	 	
            STARBOARD VALUE R LP

          	 
	 	 	 
	 	By: 	Starboard Value R GP LLC,
            its general partner

          	 
	 	 	 	 
	 	 	 	 
	 	
            STARBOARD VALUE AND OPPORTUNITY MASTER FUND L LP

          	 
	 	 	 
	 	By: 	
            Starboard Value L LP,

            its general partner

          	 
	 	 	 	 
	 	 	 	 
	 	STARBOARD VALUE L LP	 
	 	 	 
	 	By: 	
            Starboard Value R GP LLC,

            its general partner

          	 
	 	 	 	 
	 	 	 	 
	 	STARBOARD VALUE LP	 
	 	 	 
	 	By:	
             Starboard Value GP LLC,

            its general partner

          	 
	 	 	 	 
	 	 	 	 
	 	STARBOARD VALUE GP LLC 

          	 
	 	By: 	
            Starboard Principal Co LP,

            its member

          	 
	 	 	 	 
	 	 	 	 
	 	
            STARBOARD PRINCIPAL CO LP

          	 
	 	 	 
	 	By: 	
            Starboard Principal Co GP LLC,

            its general partner

          	 
	 	 	 	 
	 	 	 	 
	 	
            STARBOARD PRINCIPAL CO GP LLC

             

            STARBOARD VALUE R GP LLC

          	 

    

    

    	 	
            By:

          	/s/ Jeffrey C. Smith	 
	 	 	
            Name:

          	
            Jeffrey C. Smith

          	 
	 	 	
            Title:

          	
            Authorized Signatory

          	 

    

    

    

    

    
      [Signature Page to Agreement]

    

    
      
        

    

    

    	 	
            JEFFREY C. SMITH

             

            PETER A. FELD

          	 
	 	 	 	 
	 	
            By:

          	/s/ Jeffrey C. Smith	 
	 	
            

            

          	Name: 

          	
            Jeffrey C. Smith

          	 
	 	
            

            

          	Title: 

          	
            Individually and as Attorney-in-Fact for Peter A. Feld

          	 

     

    

    

    

    

    

    

    

    

    

    [Signature Page to Agreement]

    
      
        

    

    Exhibit A

    Press Release

    
      (See Exhibit 99.1)Wells Fargo & Co. S-3 

 

Exhibit 4(d)

 

WELLS FARGO FINANCE LLC

 

LIMITED LIABILITY COMPANY

AGREEMENT

 

This Limited Liability Company Agreement of Wells
Fargo Finance LLC, a Delaware limited liability company (the “Company”) is made as of April 19, 2018, by Wells
Fargo & Company, a Delaware corporation, as the sole member (“Member”).

 

NOW, THEREFORE, in consideration of the agreements
and obligations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Member hereby, intending to be legally bound, agrees as follows:

 

ARTICLE I

 

DEFINED TERMS

 

Section 1.1 Definitions. Unless the context
otherwise requires, the terms defined in this Article I shall, for the purposes of this Agreement, have the meanings herein specified.

 

“Additional Member” has
the meaning set forth in Section 12.1 hereof.

 

“Additional Units” has
the meaning set forth in Section 12.1 hereof.

 

“Affiliate” means with
respect to a specified Person, any Person that directly or indirectly controls, is controlled by, or is under common control with,
the specified Person. As used in this definition, the term “control” means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities,
by contract or otherwise.

 

“Agreement” means this
Limited Liability Company Agreement of the Company as amended, modified, supplemented or restated from time to time.

 

“Assignee” means any
Person who is an assignee of a Member’s limited liability company interest in the Company, or part thereof, and who does
not become a Member pursuant to Section 13.1 hereof.

 

“Authorized Person”
means any person designated by the Company as its agent pursuant to § 18.204 of the Delaware Act, including without limitation,
each person designated as an Authorized Person in Section 2.1(iii) hereof.

 

“Board” means the Board
of Directors of the Company established pursuant to Article VI of this Agreement.

 

    

     

    

 

“Capital Contribution”
means, with respect to any Unit Holder, the aggregate amount of money and the initial fair market value of any property (other
than money) contributed to the Company pursuant to Section 4.1 hereof with respect to the Units held by such Unit Holder.

 

“Certificate” means
the Certificate of Formation of the Company, initially filed on March 17, 2017, and any and all amendments thereto and restatements
thereof filed on or after such date on behalf of the Company with the office of the Secretary of State of the State of Delaware
pursuant to the Delaware Act.

 

“Code” means the Internal
Revenue Code of 1986, as amended from time to time, or any corresponding federal tax statute enacted after the date of this Agreement.
A reference to a specific section of the Code refers not only to such specific section but also to any corresponding provision
of any federal tax statute enacted after the date of this Agreement, as such specific section or corresponding provision is in
effect on the date of application of the provisions of this Agreement containing such reference.

 

“Company” means Wells
Fargo Finance LLC, the limited liability company hereby established under and pursuant to the Delaware Act and this Agreement.

 

“Covered Person” means
(i) a Member, a Director, an Officer, and any Affiliate of a Member; (ii) as applicable, any officer, director, member,
partner, employee, representative or agent of a Member; and (iii) any employee, representative, or agent of the Company, including
without limitation any Authorized Person.

 

“Delaware Act” means
the Delaware Limited Liability Company Act, 6 Del. C. § 18-101, et seq., as amended from time to time.

 

“Director” means any
person designated as a Director of the Company by the Members or the Board pursuant to Section 6.1 or Section 15.1 of this Agreement.

 

“Fiscal Year” means
(i) the period commencing upon the formation of the Company and ending on December 31 of the year of formation, (ii) any subsequent
twelve (12) month period commencing on January 1 and ending on December 31, or (iii) any portion of the period described in Clause
(ii) of this sentence for which the Company is required to allocate Profits, Losses and other items of Company income, gain, loss
or deduction pursuant to Article VIII hereof.

 

“Liquidating Trustee”
has the meaning set forth in Section 14.3 hereof.

 

“Majority Vote” means
the approval of, or the affirmative vote by, Members holding a majority of the Units held by Members.

 

“Manager” means Directors
when acting as the Board pursuant to the provisions of Article VI hereof, and Officers of the Company, subject to any limitations
on the authority of the Directors and any Officer to act as “Manager” under the Delaware Act or this Agreement,

 

    2

     

    

or
as otherwise imposed from time to time by the Members (in the case of Directors and Officers) and/or the Board (in the case of
Officers).

 

“Member” means any
Person named as a member in the recitals to this Agreement or who executes this Agreement as a member and includes any Person admitted
as an Additional Member or a Substitute Member pursuant to the provisions of this Agreement, and “Members” means two
(2) or more of such Persons when acting in their capacities as members of the Company. “Members” shall also include
the sole Member of the Company at any time there is only one Member. For purposes of the Delaware Act, the Members shall constitute
one (1) class or group of members.

 

“Net Cash Flow” means,
for each Fiscal Year or other period of the Company, the gross cash receipts of the Company from all sources, but excluding any
amounts, such as gross receipts taxes, that are held by the Company as a collection agent or in trust for others or that are otherwise
not unconditionally available to the Company, less all amounts paid by or for the account of the Company during the same Fiscal
Year or other period (including, without limitation, payments of principal and interest on any Company indebtedness), and less
any amounts determined by the Board to be necessary to provide a reasonable reserve for working-capital needs or any other contingencies
of the Company. Net Cash Flow shall be determined in accordance with the cash receipts and disbursements method of accounting and
otherwise in accordance with generally accepted accounting principles, consistently applied. Net Cash Flow shall not be reduced
by depreciation, amortization, cost recovery deductions, depletion, similar allowances or other non-cash items, but shall be increased
by any reduction of reserves previously established.

 

“Officer” means any
person either initially designated by the Member or subsequently elected or appointed as an Officer of the Company by the Board
pursuant to Section 7.1 or Section 15.1 hereof.

 

“Person” includes any
individual, association, corporation, partnership (general or limited), joint venture, trust, estate, limited liability company
or partnership, or other legal entity or organization.

 

“Profits” and “Losses”
means, for each Fiscal Year, the net profits or net losses, as the case may be, of the Company for such Fiscal Year, determined
on the accrual method of accounting in accordance with generally accepted accounting principles.

 

“Substitute Member”
means a Person who is admitted to the Company as a Member pursuant to Section 13.1 hereof, and who is named as a Member on Schedule
A to this Agreement.

 

“Treasury Regulations”
means the income tax regulations, including temporary regulations, promulgated under the Code, as such regulations may be amended
from time to time (including corresponding provisions of succeeding regulations).

 

    3

     

    

“Unit” means a limited
liability company interest in the Company representing such fractional part of the limited liability company interest of all Unit
Holders pursuant to this Agreement as is equal to the quotient of one (1) divided by the total number of Units.

 

“Unit Holder” means
any Person who holds one (1) or more Units, regardless of whether such Person is a Member and regardless of whether such Units
were initially acquired by such Person from the Company or by assignment from another Unit Holder.

 

Section 1.2 Headings. The headings and subheadings
in this Agreement are included for convenience and identification only and are in no way intended to describe, interpret, define
or limit the scope, extent or intent of this Agreement or any provision hereof.

 

ARTICLE II

 

THE COMPANY

 

Section 2.1 Formation.

 

(i) The Member, by the
filing of the Certificate on March 22, 2018, by the “Authorized Person” (as defined in subparagraph (iii) of this Section
2.1) and the execution of this Agreement, hereby (a) ratifies, approves, and confirms the formation of, and forms the Company as
a limited liability company under and pursuant to the Delaware Act, and (b) hereby subscribes and pays for the Units set forth
on Schedule A for the initial Capital Contribution also set forth on Schedule A. The Member agrees that the rights, powers, duties
and liabilities of the Member, Directors and Officers shall be as provided in the Delaware Act, except as otherwise provided in
this Agreement.

 

(ii) The name and mailing address of each
Member or Unit Holder shall be listed on Schedule A attached hereto. The Directors and/or Officers shall be required to update
Schedule A from time to time as necessary to accurately reflect the information therein. Any amendment or revision to Schedule
A made in accordance with this Agreement shall not be deemed an amendment to this Agreement. Any reference in this Agreement to
Schedule A shall be deemed to be a reference to Schedule A as amended and in effect from time to time.

 

(iii) Mindi D. O’Hayre
is hereby designated as an “Authorized Person” of the Company and the Member hereby ratifies and confirms the execution,
delivery, and filing of the Certificate with the Secretary of State of the State of Delaware by the Authorized Person on March
22, 2018. As of the date of this Agreement, all powers of the person named above as an “Authorized Person” shall cease,
and the Member and each Officer named in, or elected or appointed pursuant to this Agreement, shall hereafter be deemed to be the
designated Authorized Person and shall continue as the designated Authorized Person.

 

Section 2.2 Name. The name of the Company
is “Wells Fargo Finance LLC”.

 

Section 2.3 Existence. The existence of the
Company as a separate legal entity shall continue until cancellation of the Certificate in the manner required by the Delaware
Act.

 

    4

     

    

Section 2.4 Registered Agent and Office.
The Company’s registered agent and office in Delaware shall be Corporation Service Company, 251 Little Falls Drive, Wilmington,
DE 19808. At any time, an Officer may designate another registered agent and/or registered office.

 

Section 2.5 Principal Place of Business.
The principal place of business of the Company shall be at 375 Park Avenue, 4th Floor, New York, NY 10152, which location
may be changed from time to time by the Board of Directors. The Company shall have such additional offices from time to time as
determined by the Board of Directors

 

Section 2.6 Qualification in Other Jurisdictions.
Any Officer shall cause the Company to be qualified, formed or registered under assumed or fictitious name statutes or similar
laws in any jurisdiction in which the Company transacts business and to file under another name in other jurisdictions if required
in order to conduct business there. Any Officer, as an authorized person, within the meaning of the Delaware Act, shall execute,
deliver and file any certificates (and any amendments and/or restatements thereof) necessary for the Company to qualify to do business
in a jurisdiction in which the Company may wish to conduct business.

 

ARTICLE III

 

PURPOSE AND POWERS OF THE COMPANY

 

Section 3.1 Purpose. The purpose of the Company
is to engage in all lawful activities for which limited liability companies may be formed under the Delaware Act, and to engage
in any and all activities necessary, advisable or incidental thereto.

 

Section 3.2 Powers of the Company.

 

(i) The Company, acting
by and through the Board and its Officers on behalf of the Company pursuant to this Agreement, shall possess and exercise all power
and authority to take any and all actions necessary, appropriate, proper, advisable, incidental or convenient to or for the furtherance
of the purpose set forth in Section 3.1, including, but not limited to, the power:

 

(a) to conduct its business, carry on its
operations and have and exercise the powers granted to a limited liability company by the Delaware Act in any state, territory,
district or possession of the United States, or in any foreign country that may be necessary, convenient or incidental to the accomplishment
of the purpose of the Company;

 

(b) to acquire by purchase, lease, contribution
of property or otherwise, own, hold, operate, maintain, finance, improve, lease, sell, convey, mortgage, transfer, demolish or
dispose of any real or personal property that may be necessary, convenient or incidental to the accomplishment of the purpose of
the Company;

 

(c) to enter into, perform and carry out
contracts of any kind, including, without limitation, contracts with the Directors, the Officers ,any Member, any Affiliate thereof,

 

    5

     

    

or any agent of the Company necessary to, in connection with, convenient to, or incidental to the accomplishment of the purpose
of the Company;

 

(d) to purchase, take, receive, subscribe
for or otherwise acquire, own, hold, vote, use, employ, sell, mortgage, lend, pledge, or otherwise dispose of, and otherwise use
and deal in and with, shares or other interests in or obligations of domestic or foreign corporations, associations, general or
limited partnerships, trusts, limited liability companies or partnerships, or individuals or direct or indirect obligations of
the United States or of any government, state, territory, governmental district or municipality or of any instrumentality of any
of them;

 

(e) to lend money for its proper purpose,
to invest and reinvest its funds, to take and hold real and personal property for the payment of funds so loaned or invested;

 

(f) to sue and be sued, complain and defend,
and participate in administrative or other proceedings, in its name;

 

(g) to employ and otherwise engage employees
and agents of the Company (who may be designated as Officers with titles), and define their duties and fix their compensation;

 

(h) to indemnify any Person in accordance
with the Delaware Act;

 

(i) to cease its activities and cancel its
Certificate;

 

(j) to negotiate, enter into, renegotiate,
extend, renew, terminate, modify, amend, waive, execute, acknowledge or take any other action with respect to any lease, contract
or security agreement in respect of any assets of the Company;

 

(k) to borrow money and issue evidences
of indebtedness, and to secure the same by a mortgage, pledge or other lien on the assets of the Company;

 

(l) to pay, collect, compromise, litigate,
arbitrate or otherwise adjust or settle any and all other claims or demands of or against the Company or to hold such proceeds
against the payment of contingent liabilities; and

 

(m) to make, execute, acknowledge and file
any and all documents or instruments necessary, convenient or incidental to the accomplishment of the purpose of the Company.

 

(ii) The Company may
merge with, or consolidate into, another limited liability company or other business entity (as defined in Section 18-209(a)
of the Delaware Act) upon a Majority Vote.

 

    6

     

    

ARTICLE IV

 

CAPITAL CONTRIBUTIONS, UNITS,

AND ADVANCES

 

Section 4.1 Capital Contributions.

 

(i) The records of the
Company shall reflect the cash or property that each Unit Holder has contributed or is deemed to have contributed to the capital
of the Company and the agreed value of such Capital Contributions.

 

(ii) No Unit Holder
shall be required to make any additional Capital Contribution to the Company. However, a Unit Holder (if the sole Member) may make
additional Capital Contributions to the Company from time to time, and if the Unit Holder is not a Member or is not the sole Member,
then the Unit Holder may make such additional Capital Contributions upon approval by a Majority Vote of the Members.

 

Section 4.2 Units. A Unit Holder’s
limited liability company interest in the Company shall be represented by the “Unit” or “Units” held by
such Unit Holder. Each Unit Holder’s respective Units shall be set forth on Schedule A attached hereto. Each Unit Holder
hereby agrees that its limited liability company interest in the Company and in its Units shall for all purposes be personal property.
A Unit Holder has no interest in specific Company property.

 

Section 4.3 Status of Capital Contributions.

 

(i) Except as otherwise
provided in this Agreement, the amount of a Unit Holder’s Capital Contributions may be returned to it, in whole or in part,
at any time, but only with the consent of all Members. Any such returns of Capital Contributions shall be made to all Unit Holders
in proportion to the number of Units then held by each Unit Holder. Notwithstanding the foregoing, no return of a Unit Holder’s
Capital Contributions shall be made hereunder if such distribution would violate applicable state law. Under circumstances requiring
a return of any Capital Contribution, no Unit Holder shall have the right to demand or receive property other than cash, except
as may be specifically provided in this Agreement.

 

(ii) No Unit Holder shall receive any
interest, salary or drawing with respect to its Capital Contributions or for services rendered on behalf of the Company or otherwise
in its capacity as a Unit Holder, except as otherwise specifically provided in this Agreement.

 

(iii) Except as otherwise provided herein
and by applicable state law, the Members shall be liable only to make their capital contributions pursuant to Section 4.1 hereof,
and no Member or Assignee shall be required to lend any funds to the Company or, after a Member’s Capital Contributions have
been fully paid pursuant to Section 4.1 hereof, to make any additional capital contributions to the Company. No Unit Holder shall
have any personal liability for the repayment of any Capital Contribution of any other Member or Assignee.

 

    7

     

    

Section 4.4 Advances. If any Unit Holder
shall advance any funds to the Company in excess of its Capital Contributions, the amount of such advance shall not entitle it
to any increase in its share of the distributions of the Company. The amount of any such advance shall be a debt obligation of
the Company to such Unit Holder and shall be repaid to it by the Company with interest at a rate equal to (i) the rate of
interest set forth in any note or other writing memorializing such advance, or if the Unit Holder and the Company do not enter
into any such note or other writing, then (ii) the lesser of (a) the applicable federal rate under Section 1274(d) of the
Code and (b) the maximum rate permitted by applicable law, and upon such other terms and conditions as shall be mutually determined
by such Unit Holder and a Manager. Any such advance shall be payable and collectible only out of Company assets, and the other
Unit Holders shall not be personally obligated to repay any part thereof. No Person who makes any nonrecourse loan to the Company
shall have or acquire, as a result of making such loan, any direct or indirect interest in the profits, capital or property of
the Company, other than as a creditor.

 

ARTICLE V

 

MEMBERS AND MEETINGS OF MEMBERS

 

Section 5.1 Powers of Members. The Members
shall have the power to exercise any and all rights or powers granted to the Members pursuant to the express terms of this Agreement.
The Members shall also have the power to authorize the Board, by Majority Vote, to possess and exercise any right or power not
already vested in the Board pursuant to Section 6.1 or any other provision of this Agreement. In addition to the foregoing, the
Members have the power to exercise any and all other rights or powers of the Company and do all lawful acts and things as are not
by the Delaware Act or this Agreement directed or required to be exercised or done by the Board. Except as provided herein, the
Members shall have no power to bind the Company.

 

Section 5.2 Reimbursements. The Company may
reimburse the Members for all ordinary and necessary out of pocket expenses incurred by the Members on behalf of the Company.

 

Section 5.3 Partition. Each Member waives
any and all rights that it may have to maintain an action for partition of the Company’s property.

 

Section 5.4 Meetings of the Members.

 

(i) Meetings of the
Members may be called at any time by any Member. Notice of any meeting shall be given to all Members not less than two (2) days
nor more than thirty (30) days prior to the date of such meeting. Each Member may authorize any Person to act for it by proxy on
all matters in 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.

 

(ii) The Members shall
establish all other provisions relating to meetings of Members, including notice of the time, place or purpose of any meeting at
which any matter is to be voted on by any Members, waiver of any such notice, action by consent without a meeting, the establishment
of a record date, quorum requirements, voting in person or by proxy or any other

 

    8

     

    

matter with respect to the exercise of any such
right to vote. Any action required to be taken at any meeting of the Members may be taken without a meeting, if the Members consent
in writing and the writings are filed with the minutes of meeting of the Members

 

(iii)            
All actions requiring the approval of the Members, whether under the Delaware Act or pursuant
to this Agreement, shall be by Majority Vote.

 

(iv)            
Meetings of the Members may be held by means of conference telephone or by other communications
equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall
constitute presence in person at the meeting

 

ARTICLE VI

 

MANAGEMENT OF THE COMPANY

 

Section 6.1 Board of Directors. The business
and affairs of the Company shall be managed by or under the direction of a Board of one or more Directors named in or hereafter
elected by the Members as provided in this Agreement. Except as provided herein, it is intended that this grant of authority shall
authorize the Board to function in all matters not otherwise reserved to the Members as if the Company were a corporation formed
under the Delaware General Corporation Law and the Board were the board of directors of such corporation. The authorized number
of Directors shall initially be fixed at three (3) persons. The Members from time to time hereafter shall determine the number
of Directors to constitute the Board, provided that thereafter the authorized number of Directors may be increased or decreased
by the Members at any time in their sole discretion, upon notice to all Directors. Each Director elected shall hold office until
a successor is elected and qualified or until such Director's earlier death, resignation or removal. Directors need not be Members.
Vacancies, except vacancies caused by removal pursuant to Section 6.7 of this Article VI, and newly created directorships resulting
from any increase in the authorized number of Directors may be filled by a majority of the Directors then in office, though less
than a quorum, or by a sole remaining Director, and the Directors so chosen shall hold office until the next election of Directors
and until their successors are duly elected and shall qualify, unless sooner displaced.

 

Section 6.2 Meetings of the Board of Directors.
The Board of the Company may hold meetings, both regular and special, either within or without the State of Delaware. Regular meetings
of the Board may be held without notice at such time and at such place as shall from time to time be determined by the Board. Special
meetings of the Board may be called by the Chairman of the Board or President on one (1) day notice to each Director, either personally,
by telephone, by mail, by facsimile, by electronic mail or by any other means of communication; special meetings shall be called
by the President or Secretary in like manner and on like notice on the written request of one or more of the Directors. Whenever
any notice is required to be given, a waiver thereof in writing, signed by the person or persons entitled to said notice, whether
before or after the time stated therein, shall be deemed equivalent thereto. Attendance of a person at a meeting shall constitute
a waiver of notice of such meeting, except when the persons attend a meeting for the express purpose of objecting, at the beginning
of the meeting, to the transaction of any business at such meeting.

 

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Section 6.3 Quorum and Acts of the Board.
At all meetings of the Board a majority of the Directors shall constitute a quorum for the transaction of business and the act
of a majority of the Directors present at any meeting at which there is a quorum shall be the act of the Board, except as may be
otherwise specifically provided by this Agreement. If a quorum shall not be present at any meeting of the Board, the Directors
present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum
shall be present. Any action required or permitted to be taken at any meeting of the Board or of any committee thereof may be taken
without a meeting, if all members of the Board or committee, as the case may be, consent thereto in writing, and the writing or
writings are filed with the minutes of proceedings of the Board or committee. Such written actions of the Board will be effective
on the date such acts are approved or such earlier or later date as the Board may designate, except as may be designated or required
by applicable law.

 

Section 6.4 Electronic Communications. Members
of the Board, or any committee designated by the Board, may participate in a meeting of the Board, or any committee, by means of
conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each
other, and such participation in a meeting shall constitute presence in person at the meeting.

 

Section 6.5 Committees of Directors. The
Board may, by resolution passed by a majority of the whole Board, designate one or more committees, each committee to consist of
one or more of the Directors of the Company. The Board may designate one or more Directors as alternate members of any committee,
who may replace any absent or disqualified member at any meeting of the committee.

 

In the absence or disqualification of a member of
a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such members
constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of any such absent
or disqualified member.

 

Any such committee, to the extent provided in the
resolution of the Board, shall have and may exercise all the powers and authority of the Board in the management of the business
and affairs of the Company, but no such committee shall have the power or authority in reference to amending this Agreement, adopting
an agreement of merger or consolidation, recommending to the Members the sale, lease or exchange of all or substantially all of
the Company’s property and assets, recommending to the Members a dissolution of the Company or a revocation of a dissolution;
and unless the resolution of the Board designating the committee expressly so provides, no such committee shall have the power
or authority to declare a distribution. Such committee or committees shall have such name or names as may be determined from time
to time by resolution adopted by the Board. Each committee shall keep regular minutes of its meetings and report the same to the
Board when required.

 

Section 6.6 Compensation of Directors. The
Board shall have the authority to fix the compensation of Directors. The Directors may be paid their expenses, if any, of attendance
at such meeting of the Board and may be paid a fixed sum for attendance at each meeting of the Board or a stated salary as Director.
No such payment shall preclude any Director from serving the Company in any other capacity and receiving compensation therefor.
Members of special or standing committees may be allowed like compensation for attending committee meetings.

 

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Section 6.7 Removal of Directors. Unless
otherwise restricted by law, any Director or the entire Board may be removed, with or without cause, by a Majority Vote. Any vacancy
caused by any such removal may be filled by a Majority Vote.

 

Section 6.8 Directors as Agents. The Directors,
to the extent of their powers set forth in this Agreement, are agents of the Company for the purposes of the Company’s business,
and the actions of the Directors taken in accordance with this Agreement shall bind the Company.

 

Section 6.9 Directors as Managers Under the Delaware
Act. Directors shall be deemed to be “Managers” of the Company within the meaning of the Delaware Act when acting
collectively as the Board of the Company pursuant to this Article VI; provided, however, that no individual Director (other than
a Director who is the sole member of the Board or a Director acting as the sole member of a Committee of the Board established
pursuant to this Article VI), shall be considered to be a “Manager” of the Company within the meaning of the Act. The
authority granted to Directors as Manager shall be subject to any powers and rights reserved to Members to manage the Company’s
business by the Delaware Act or under this Agreement, and any limitations on such authority imposed by this Agreement or by the
Members from time to time.

 

ARTICLE VII

 

OFFICERS

 

Section 7.1 Officers.

 

(i) Except as provided in Section 7.7
below, the Officers of the Company shall be chosen by the Board and shall include at least a President, a Treasurer, and a Secretary.
The Board may also choose a Chairman of the Board, a Chief Financial Officer, one or more Vice Presidents including Executive,
Senior and Assistant Vice Presidents, and one or more Assistant Secretaries and Assistant Treasurers. A person elected or appointed
to be an Officer is by such election or appointment designated a Manager by the Members for purposes of the Delaware Act. Any number
of offices may be held by the same person. The Board may appoint such other Officers and agents as it shall deem necessary who
shall have such titles, shall hold their offices for such terms, and shall exercise such powers and perform such duties as shall
be determined from time to time by the Board. The Board may authorize Officers elected by the Board to appoint other Officers and
agents pursuant to procedures prescribed by this Agreement, if any, or by resolution of the Board. The salaries of all Officers
and agents of the Company shall be fixed by or in the manner prescribed by the Board. The Officers of the Company shall hold office
until their successors are chosen and qualify. Officers need not be Members. Any Officer elected or appointed by the Board may
be removed at any time by the affirmative vote of a majority of the Board. Any vacancy occurring in any office of the Company shall
be filled by the Board or, to the extent applicable, may be filled pursuant to Section 7.7.

 

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(ii) The initial officers of the Company
shall be those persons named as “Officers” of the Company pursuant to Section 15.1 hereof and shall serve in the capacities
so indicated until their successors are duly elected or appointed by the Board pursuant to Section 7.1(i) hereof.

 

Section 7.2 Chairman of the Board. The Chairman
of the Board, if such an officer be elected, shall preside at all meetings of the Board, if then present at such meeting, and exercise
and perform such other powers and duties as may be from time to time assigned to him by the Board or prescribed by the by-laws.
The Chairman of the Board shall in addition be the Chief Executive Officer of the corporation and shall have the powers and duties
given to the President in Section 7.3 of this Article.

 

Section 7.3 President. Subject to such supervisory
powers, if any, as may be given by the Board to the Chairman of the Board, the President shall be the chief executive officer of
the Company and shall be responsible for general and active management of the business of the Company. In the absence of the Chairman
of the Board, if such an officer be chosen, or if there is none, the President shall preside at all meetings of the Members and
the Board, and shall see that all orders and resolutions of the Board are carried into effect. The President may execute bonds,
mortgages, leases and other contracts, except where required by law to be otherwise signed and executed and except where signing
and execution thereof shall be expressly delegated by the Board to some other Officer or agent of the Company.

 

Section 7.4 Vice President. In the absence
of the President or in the event of such Officer’s inability to act, the Vice President, if any (or in the event there be
more than one Vice President, the Vice Presidents in the order designated by the Directors, or in the absence of any designation,
then in the order of their election), shall perform the duties of the President, and when so acting, shall have all the powers
of and be subject to all the restrictions upon the President. The Vice President, if any, shall perform such other duties and have
such other powers as the Board may from time to time prescribe.

 

Section 7.5 Secretary and Assistant Secretary.
The Secretary shall attend all meetings of the Board and all meetings of the Members and record all the proceedings of the meetings
of the Company and of the Board in a book to be kept for that purpose, may certify as necessary the accuracy and completeness of
such records and shall perform like duties for the standing committees when required. The Secretary shall give, or cause to be
given, notice of all meetings of the Members and special meetings of the Board, and shall perform such other duties as may be prescribed
by the Board, the President, under whose supervision the Secretary shall be. The Assistant Secretary, or if there be more than
one, the Assistant Secretaries in the order determined by the Board (or if there be no such determination, then in order of their
election) shall, in the absence of the Secretary or in the event of the Secretary's inability to act, perform the duties and exercise
the powers of the Secretary and shall perform such other duties and have such other powers as the Board may from time to time prescribe.

 

Section 7.5 The Treasurer. The Treasurer
(who may have the title “Chief Financial Officer,” in addition to, or instead of the title “Treasurer”)
shall have the custody of the Company funds and securities and shall keep full and accurate accounts of receipts and disbursements
in books belonging to the Company and shall deposit all moneys and other valuable effects in the name and to the credit of the
Company in such depositories as may be designated by the Board. The Treasurer shall disburse the funds of the Company as may be
ordered by the Board, taking proper vouchers for such disbursements,

 

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and shall render to the President and the Board, at its regular
meetings, or when the Board so requires, an account of all of the Treasurer's transactions and of the financial condition of the
Company.

 

Section 7.6 Officers as Managers and Agents.

 

(i) Officers shall be deemed to be “Managers”
of the Company within the meaning of the Delaware Act; provided, however, the authority granted to Officers as Managers shall be
subject to any powers and rights reserved to Members and/or to Directors pursuant to Section 6.9 of this Agreement to manage the
Company’s business by the Delaware Act or under this Agreement, and any limitations on such authority imposed by this Agreement
or by the Members or the Board from time to time.

 

(ii) The Officers, to the extent of their
powers set forth in, or now or hereafter granted by the Board pursuant to this Agreement are also agents of the Company for the
purpose of the Company's business, and the actions of any Officer taken in accordance with this Agreement or any resolutions of
the Board shall bind the Company.

 

Section 7.7 Election and Appointment of Officers.
The Chairman of the Board, President, and any Executive Vice President, acting singly, may also appoint and terminate the appointment
of any Officer of the Company, except that the Board shall have the sole authority to choose Officers holding the titles of Chairman
of the Board, President, and Executive Vice President, and any Executive Vice President, acting singly, may also appoint and terminate
the appointment of any other Officer of the Company having such titles and such duties as may be determined by the Chairman of
the Board, President, or any such Executive Vice President as necessary for the prompt and orderly transaction of the Company’s
business. All such appointments and termination of appointments shall be made in a written document filed with the Secretary or
Assistant Secretary of the Company. Any Officer appointed pursuant to this Section shall maintain his or her status as an Officer
until the earlier of the filing of a written termination of such appointment with the Secretary or Assistant Secretary or the termination
of such Officer’s employment with the Company.

 

Section 7.8 Third Party Reliance. Any person
dealing with the Company or any Member, Director or Officer in connection with the business of the Company, may rely upon a certificate
signed by a Secretary or Assistant Secretary of the Company as to:

 

(i) the identity of a Member, Director
or Officer of the Company;

 

(ii) the existence or non-existence of
any fact or facts that constitute a condition precedent to acts by the Board, the Members or the Officers or in any matter related
to the affairs of the Company;

 

(iii) the Persons who are authorized to
execute and deliver any instrument or document of, or on behalf of, the Company; or

 

(iv) any act or failure to act by the
Company or as to any other matter whatsoever involving the Company, or any Member, Director or Officer.

 

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ARTICLE VIII

 

ALLOCATIONS

 

Section 8.1 Profits and Losses. Profits and
Losses for any Fiscal Year shall be allocated among the Unit Holders in proportion to the number of Units held by each Unit Holder.

 

ARTICLE IX

 

DISTRIBUTIONS

 

Section 9.1 Net Cash Flow. Except as otherwise
provided in Article XIV hereof (relating to the dissolution of the Company), any distribution of the Net Cash Flow during any Fiscal
Year shall be made to the Unit Holders in proportion to the number of Units held by each Unit Holder.

 

Section 9.2 Distribution Rules.

 

(i) All distributions pursuant to Section
9.1 hereof shall be at such times and in such amounts as shall be determined by the Board.

 

(ii) All amounts withheld pursuant to
the Code or any provision of any state or local tax law with respect to any payment, distribution or allocation to the Company
or the Unit Holders shall be treated as amounts distributed to the Unit Holders pursuant to this Article IX for all purposes of
this Agreement. The Board is authorized to withhold from distributions, or with respect to allocations, to the Unit Holders and
to pay over to any federal, state or local government any amounts required to be so withheld pursuant to the Code or any provision
of any other federal, state or local law and shall allocate such amounts to those Unit Holders with respect to which such amounts
were withheld.

 

Section 9.3 Limitations on Distribution.
Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make a distribution to any Unit
Holder on account of its interest in the Company if such distribution would violate Sections 18-607 or 18-804 of the Delaware
Act or other applicable law.

 

ARTICLE X

 

BOOKS AND RECORDS

 

Section 10.1 Books, Records and Financial Statements.
At all times during the continuance of the Company, the Company shall maintain, at its principal place of business, separate books
of account for the Company that shall show a true and accurate record of all costs and expenses incurred, all charges made, all
credits made and received and all income derived in connection with the operation of the Company business in accordance with generally
accepted accounting principles consistently applied, and, to the extent inconsistent therewith, in accordance with this Agreement.
Such books of account, together with a certified copy of this Agreement and of the Certificate, shall at all times be maintained
at the principal place of business of the Company and shall be open to inspection and

 

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examination at reasonable times by each Member
and its duly authorized representative for any purpose reasonably related to such Member’s interest in the Company. The books
of account and the records of the Company shall be examined by and reported upon as of the end of each Fiscal Year under the direction
of the Treasurer, or if required by the Board, by a firm of independent certified public accountants selected by the Board.

 

Section 10.2 Accounting Method. For both
financial and tax reporting purposes and for purposes of determining Profits and Losses, the books and records of the Company shall
be kept on the accrual method of accounting applied in a consistent manner and shall reflect all Company transactions and be appropriate
and adequate for the Company’s business.

 

ARTICLE XI

 

LIABILITY, EXCULPATION AND INDEMNIFICATION

 

Section 11.1 Liability. Except as otherwise
provided by the Delaware 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.

 

Section 11.2 Exculpation.

 

(i) No Covered Person
shall be liable to the Company or to 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 (a) willful misconduct, (b) knowing violation
of law, (c) with respect to a Covered Person who is a Director or an Officer, a breach of the duty of loyalty provided for
in Section 11.7 of this Agreement.

 

(ii) Each Covered Person and Liquidating
Trustee shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions,
reports or statements presented by another Covered Person or Liquidating Trustee or by any other Person as to matters the Covered
Person or Liquidating Trustee reasonably believes are within such other Person’s professional or expert competence, including
information, opinions, reports or statements as to the value and amount of the assets, liabilities, Profits, Losses or Net Cash
Flow, or the value and amount of assets or reserves or contracts, agreements or other undertakings that would be sufficient to
pay claims and obligations of the Company or to make reasonable provision to pay such claims and obligations or any other facts
pertinent to the existence and amount of assets from which distributions to Members or creditors might properly be paid.

 

Section 11.3 Conflicts of Interest. Unless
otherwise expressly provided herein, (i) whenever a conflict of interest exists or arises between the Company and a Covered
Person, or any Member and a

 

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Covered Person or (ii) whenever this Agreement or any other agreement to which the Company is or may
become a party provides that a Covered Person shall act in a manner that is, or provide terms that are fair to the Company or any
Member, the Covered Person shall resolve such conflict of interest, take such action, or provide such terms, considering in each
case the relative interest of each party (including its own interest) to such conflict, agreement, transaction or situation and
the benefits and burdens relating to such interests, any customary or accepted industry practices, and any applicable generally
accepted accounting practices or principles. In the absence of bad faith by the Covered Person, the resolution, action or term
so made, taken or provided by the Covered Person shall not constitute a breach of this Agreement or any other agreement contemplated
herein or of any duty or obligation of the Covered Person at law or in equity or otherwise.

 

Section 11.4 Indemnification.

 

(i) To the fullest extent permitted by
applicable law and this Agreement, a Covered Person shall be entitled to indemnification from the Company for any claim, liability,
loss, damage and expense (collectively, a “Loss”) incurred by such Covered Person 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 no Covered Person shall be entitled to be
indemnified in respect of any Loss incurred by such Covered Person by reason of willful misconduct or a knowing violation of law
with respect to such acts or omissions; provided, however, no Covered Person shall have any personal liability on
account of any indemnity under this Section 11.4.

 

(ii) The Company may maintain insurance,
at its expense, to protect itself and any Member, Director, Officer, employee, or agent of the Company or another corporation,
partnership, joint venture, trust, or other enterprise against any Loss, whether or not the Company would have the power to indemnify
such person against such Loss under this Agreement.

 

(iii) Unless ordered by a court having
jurisdiction over the matter, any claim for indemnification under this Section 11.4 shall be made by the Company only as authorized
following a determination that indemnification of the Covered Person is appropriate in the circumstances because the Covered Person
has met the applicable standard of conduct set forth in paragraph (ii) of this section. Such determination shall be made (a) with
respect to a Covered Person who, at the time of such determination, is a Member, (1) by a majority vote of the Members who
are not also recipients of, or parties to any claim, action, suit or proceeding for which indemnification is sought (the "Non-Affected
Members"), or (2) by a committee of Non-Affected Members designated by majority vote of such Non-Affected Members,
or (3) if there are no Non-Affected Members, or if the Non-Affected Members so order, by independent legal counsel in a written
opinion; and (b) with respect to a Covered Person who is a Director or Officer at the time of such determination, (1) by a
majority vote of the Directors who are not recipients of, or parties to any claim, action, suit or proceeding for which indemnification
is sought (the "Non-Affected Directors"), or (2) by a committee of Non-Affected Directors designated by majority
vote of such Non-Affected Directors, or (3) if there are no Non-Affected Directors, or if the Non-Affected Directors so order,
by

 

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independent legal counsel in a written opinion, or (4) by the Members, and (c) with respect to any Covered Person who is not
a Member, Director, or an Officer, by the Directors acting pursuant to Section 6.3 of this Agreement. Wherever this paragraph refers
to the taking of an action by the majority vote of the Non-Affected Members or the Non-Affected Directors and notwithstanding the
provisions of Sections 5.4 and 6.3 of this Agreement, such action may be taken either at a meeting at which a majority of the Non-Affected
Members or the Non-Affected Directors are present (even though such number would not constitute a quorum at a meeting of Members
or Directors) or in writing signed by a majority of the Non-Affected Members or the Non-Affected Directors, as the case may be.

 

Section 11.5 Expenses. To the fullest extent
permitted by applicable law, expenses (including legal fees) 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 that the Covered Person is not entitled to be indemnified as authorized in Section 11.4 hereof.

 

Section 11.6 Outside Businesses. Except as
otherwise provided in any employment agreement or other agreement any Member, Director, Officer, or Affiliate thereof may engage
in or possess an interest in other business ventures of any nature or description, independently or with others, similar or dissimilar
to the business of the Company, and the Company, the Members, Directors, and Officers shall have no rights by virtue of this Agreement
in and to such independent ventures or the income or profits derived therefrom, and the pursuit of any such venture, even if competitive
with the business of the Company, shall not be deemed wrongful or improper. Except as otherwise provided in any employment agreement
or other agreement, no Member, Director, Officer, or Affiliate thereof shall be obligated to present any particular investment
opportunity to the Company even if such opportunity is of a character that, if presented to the Company, could be taken by the
Company, and any Member, Director, Officer, or Affiliate thereof shall have the right to take for its own account (individually
or as a partner or fiduciary) or to recommend to others any such particular investment opportunity.

 

Section 11.7 Duties of Board and Officers.
Except to the extent otherwise provided herein, each Director and Officer shall have a fiduciary duty of loyalty and care similar
to that of directors and officers of business corporations organized under the General Corporation Law of the State of Delaware.

 

ARTICLE XII

 

ADDITIONAL MEMBERS AND UNITS

 

Section 12.1 Additional Units. If approved
by Majority Vote, the Company is authorized to raise additional capital by offering and selling, or causing to be offered and sold,
additional limited liability company interests in the Company (“Additional Units”) to any Person in such amounts
and on such terms as the Members may determine. Each Person who subscribes for any of the Additional Units shall be admitted as
an additional member of the Company (each, an “Additional Member” and collectively, the “Additional
Members”) at the time such Person is named as a Member on Schedule A hereto. An Additional Member shall be bound by this
Agreement whether or not such Additional

 

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Member executes this Agreement. The legal fees and expenses associated with such admission
shall be borne by the Company.

 

ARTICLE XIII

 

ASSIGNABILITY AND SUBSTITUTE MEMBERS

 

Section 13.1 Assignability of Units.

 

(i) A Member may assign
the whole or any part of its Units or other interests in the Company to an Affiliate in such Member’s sole discretion and
without the prior consent of the Board. Any such assignment shall, nevertheless, not entitle the assignee to become a Substitute
Member or to be entitled to exercise or receive any of the rights, powers or benefits of a Member, other than the right to receive
distributions, to which the assigning Member would be entitled, unless the assigning Member designates, in a written instrument,
its assignee to become a Substitute Member. Such written instrument or Substitute Member designation does not require the approval
or prior consent of the Board.

 

(ii) No Member may assign the whole or
any part of its Units or other interests in the Company to any Person who is not an Affiliate without the prior consent of the
Board, which consent may be given or withheld in the sole and absolute discretion of the Board. If the prior consent of the Board
is obtained for any such assignment, such assignment shall, nevertheless, not entitle the assignee to become a Substitute Member
or to be entitled to exercise or receive any of the rights, powers or benefits of a Member, other than the right to receive distributions
to which the assigning Member would be entitled, unless the assigning Member designates, in a written instrument delivered to the
Board or otherwise to the satisfaction of the Board, its assignee to become a Substitute Member and the Board, in its sole and
absolute discretion, consents to the admission of such assignee as a Member; and provided further, that such assignee shall not
become a Substitute Member without having paid to the Company a fee sufficient to cover all reasonable expenses of the Company
in connection with such assignee’s admission as a Substitute Member. A Substitute Member shall be bound by this Agreement
whether or not such Substitute Member executes this Agreement. If a Member assigns all of its interest in the Company and the assignee
of such interest is entitled to become a Substitute Member pursuant to this Section 13.1, then unless otherwise agreed, such assignee
shall be admitted to the Company effective immediately prior to the effective date of the assignment, and, immediately following
such admission, the assigning Member shall cease to be a Member of the Company.

 

Section 13.2 Recognition of Assignment by Company.
No assignment, or any part thereof, that is in violation of this Article XIII shall be valid or effective, and neither the Company
nor the Members shall recognize the same for the purpose of making distributions of Net Cash Flow pursuant to Section 9.1 hereof
with respect to such Company interest or part thereof. Neither the Company nor the nonassigning Members shall incur any liability
as a result of refusing to make any such distributions to the assignee of any such invalid assignment.

 

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Section 13.3 Indemnification. In the case
of an assignment or attempted assignment of an interest in the Company that has not received the consents required by Section 13.1
hereof, the parties engaging or attempting to engage in such assignment shall be liable to indemnify and hold harmless the Company
and the other Members from all costs, liabilities and damages that any of such indemnified Persons may incur (including, without
limitation, incremental tax liability and lawyers’ fees and expenses) as a result of such assignment or attempted assignment
and efforts to enforce the indemnity granted hereby.

 

Section 13.4 Effective Date of Assignment.
Any valid assignment of a Member’s interest in the Company, or part thereof, pursuant to the provisions of Section 13.1 hereof
shall be effective as of the close of business on the last day of the calendar month in which the Board gives its consent, if required,
to such assignment (or the last day of the calendar month in which such assignment occurs, if later), unless, in the case of assignment
to an Affiliate, a written instrument of the assigning Member sets forth a different effective date, or, in any case, the Board
in its discretion approves a different effective date. The Company shall, from the effective date of such assignment, thereafter
pay all further distributions on account of the Company interest (or part thereof) so assigned, to the assignee of such interest,
or part thereof.

 

ARTICLE XIV

 

DISSOLUTION, LIQUIDATION AND TERMINATION

 

Section 14.1 No Dissolution. The Company
shall not be dissolved by the admission of Additional Members or Substitute Members in accordance with the terms of this Agreement
or by the death, retirement, resignation, expulsion, bankruptcy or dissolution of a Member or the occurrence of any other event
under the Delaware Act that terminates the continued membership of a Member in the Company.

 

Section 14.2 Events Causing Dissolution.
The Company shall be dissolved and its affairs shall be wound up upon the occurrence of any of the following events:

 

(i) the expiration of
the term of the Company, as provided in Section 2.3 hereof;

 

(ii) a Majority Vote of the Members;

 

(iii) the entry of a decree of judicial
dissolution under Section 18-802 of the Delaware Act.

 

Section 14.3 Notice of Dissolution. Upon
the dissolution of the Company, the Person or Persons approved by a Majority Vote to carry out the winding up of the Company (the
“Liquidating Trustee”) shall promptly notify the Members of such dissolution.

 

Section 14.4 Liquidation. Upon dissolution
of the Company, the Liquidating Trustee shall immediately commence to wind up the Company’s affairs; provided, however,
that a reasonable time shall be allowed for the orderly liquidation of the assets of the Company and the satisfaction of liabilities
to creditors so as to enable the Members to minimize the normal losses attendant upon a

 

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liquidation. The Unit Holders shall continue
to share Profits and Losses during liquidation in the same proportions, as specified in Article VIII hereof, as before liquidation.
Each Member shall be furnished with a statement prepared by the Company’s certified public accountants that shall set forth
the assets and liabilities of the Company as of the date of dissolution. The proceeds of liquidation shall be distributed, as realized,
in the following order and priority:

 

(i) to creditors of
the Company, including Unit Holders who are creditors, to the extent otherwise permitted by law, in satisfaction of the liabilities
of the Company (whether by payment or the making of reasonable provision for payment thereof), other than liabilities for distributions
to Unit Holders; and

 

(ii) to the Unit Holders the remaining
proceeds of liquidation in proportion to the number of Units held by each Unit Holder.

 

Section 14.5 Termination. The Company shall
terminate when all of the assets of the Company, after payment of or due provision for all debts, liabilities and obligations of
the Company, shall have been distributed to the Unit Holders in the manner provided for in this Article XIV, and the Certificate
shall have been canceled in the manner required by the Delaware Act.

 

Section 14.6 Claims of the Members. The Members
and Assignees shall look solely to the Company’s assets for the return of their Capital Contributions, and if the assets
of the Company remaining after payment of or due provision for all debts, liabilities and obligations of the Company are insufficient
to return such Capital Contributions, the Members and Assignees shall have no recourse against the Company or any other Member
or Manager.

 

Section 14.7 Revocation of Dissolution. Notwithstanding
the occurrence of an event set forth in Section 18-801(a)(1), (2), (3), or (4) of the Delaware Act, the Company shall not be dissolved
if the Company is continued in accordance with Section 18-806 of the Delaware Act.

 

ARTICLE XV

 

APPOINTMENT OF OFFICERS AND DIRECTORS

 

Section 15.1 First Officers and Directors.
The Member hereby designates, as the initial Officers and Directors of this Company, the persons set forth next to their respective
offices in Schedule B.

 

ARTICLE XVI

 

AMENDMENTS

 

Section 16.1 Amendments to be Adopted Solely
by the Board. The Board, without the approval of any Member may amend any provision of this Agreement, and execute, swear to,
acknowledge, deliver, file and record all documents required or desirable in connection therewith, to reflect:

 

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(i) a change in the
name of the Company or the location of the principal place of business of the Company;

 

(ii) the admission, substitution, termination
or withdrawal of Members or Assignees in accordance with this Agreement;

 

(iii) a change that is (a) of an inconsequential
nature and does not adversely affect the Members or Assignees in any material respect; (b) necessary or desirable to cure any ambiguity,
to correct or supplement any provision herein that would be inconsistent with any other provisions herein, or to make any other
provision with respect to matters or questions arising under this Agreement that will not be inconsistent with the provisions of
this Agreement, in each case so long as such change does not adversely affect the Members or Assignees; (c) necessary or desirable
to satisfy any requirements, conditions or guidelines contained in any opinion, directive, order, ruling or regulation of any federal
or state statute, so long as such change is made in a manner which minimizes any adverse effect on the Members or Assignees; or
(d) required or contemplated by this Agreement; or

 

(iv) any other amendments
similar to the foregoing.

 

Section 16.2. Amendment Procedures. Except
as specifically provided in Section 16.1 and Section 16.2, all amendments to this Agreement shall be made solely in accordance
with the following requirements:

 

(i) Amendments of this
Agreement may be proposed only by the Board or any Member;

 

(ii) If an amendment is proposed, the
Board shall seek the written approval of, or call a meeting of the Members to consider and vote on such proposed amendment. A proposed
amendment shall be effective upon its approval by a Majority Vote, unless a greater percentage is required by this Agreement; and

 

(iii) The Board shall notify all Members
upon final adoption of any proposed amendment.

 

ARTICLE XVII

 

MISCELLANEOUS

 

Section 17.1 Notices. All notices provided
for in this Agreement shall be in writing, duly signed by the party giving such notice, and shall be delivered, telecopied or mailed
by registered or certified mail as follows:

 

(i) if given to the
Company, in care of the President, at the Company’s mailing address set forth on Schedule A attached hereto;

 

    21

     

    

 

(ii) if given to a Director, at such Director’s
mailing address as provided to the Company; or

 

(iii) if given to any Member, at the address
set forth opposite its name on Schedule A attached hereto, or at such other address as such Member may hereafter designate by written
notice to the Company.

 

All such notices shall be deemed to have been given
when received. Whenever any notice is required to be given under this Agreement, a waiver thereof in writing, signed by the person
or persons entitled to said notice, whether before or after the time stated therein, shall be deemed equivalent thereto. Attendance
of a person at a meeting shall constitute waiver of notice of such meeting, except when the person attends for the express purpose
of objecting, at the beginning of the meeting, to the transaction of business because the meeting is not lawfully called or convened.

 

Section 17.2 Failure to Pursue Remedies.
The failure of any party to seek redress for violation of, or to insist upon the strict performance of, any provision of this Agreement
shall not prevent a subsequent act, which would have originally constituted a violation, from having the effect of an original
violation.

 

Section 17.3 Cumulative Remedies. The rights
and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or
waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties
may have by law, statute, ordinance or otherwise.

 

Section 17.4 Binding Effect. This Agreement
shall be binding upon and inure to the benefit of all of the parties and, to the extent permitted by this Agreement, their successors,
legal representatives and assigns.

 

Section 17.5 Interpretation. Throughout this
Agreement, nouns, pronouns and verbs shall be construed as masculine, feminine, neuter, singular or plural, whichever shall be
applicable. All references herein to “Articles,” “Sections” and paragraphs shall refer to corresponding
provisions of this Agreement.

 

Section 17.6 Severability. The invalidity
or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision were omitted.

 

Section 17.7 Counterparts. This Agreement
may be executed in any number of counterparts with the same effect as if all parties hereto had signed the same document. All counterparts
shall be construed together and shall constitute one instrument.

 

Section 17.8 Integration. This Agreement
constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements
and understandings pertaining thereto.

 

    22

     

    

 

Section 17.9 Governing Law. This Agreement
and the rights of the parties hereunder shall be interpreted in accordance with the laws of the State of Delaware, and all rights
and remedies shall be governed by such laws without regard to principles of conflict of laws.

 

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IN WITNESS WHEREOF, the Member hereof has
executed this Agreement as of the date first above stated.

	 	 	 	 	 
	 	MEMBER:
	 	WELLS FARGO & COMPANY
	 	 	 
	 	By	/s/
    Barbara S. Brett	 
	 	Name:	Barbara S. Brett
	 	Title:	Senior Vice President

 

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SCHEDULE A

 

COMPANY

 

	Name	Mailing
    Address
	Wells Fargo Finance LLC	
        375 Park Avenue, 4th Floor

        New York, NY 10152

 

MEMBER(S)

 

	Name

	Mailing Address

	Number

        of Units

	Initial
    Capital 

    Contribution
	Wells Fargo & Company	
        420 Montgomery Street

        San Francisco, CA 94104

         
	1,000	$1,000

 

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SCHEDULE B

 

INITIAL DIRECTORS AND OFFICERS OF

WElls
fargo finance llc

 

BOARD OF DIRECTORS 

 

Le Roy Davis

Walter E. Dolhare

Michael F. Riley

 

OFFICERS

 

	William Threadgill	President and Chief Executive Officer
	Barbara Janine Garafalo	Vice President
	Le Roy Davis	Senior Vice President and Treasurer
	James McMullin	Secretary
	Barbara S. Brett	Senior Vice President
	Greg Michael Cooley	Senior Vice President and Chief Accounting Officer
	David L. Pitelka	Chief Financial Officer

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