Document:

OPERATING
AGREEMENT 

OF

TCA
CRESENT CONSTRUCTION COMPANY, LLC

 

OPERATING
AGREEMENT of TCA Cresent Construction Company, LLC (the “Company”) made as of March 9, 2017 (the “Effective
Date”), by and among the Members who have subscribed to and executed this Agreement.

 

W
I T N E S S E T H:

 

WHEREAS,
the Members desire to provide for the ownership and operation of the Company upon the terms and conditions hereinafter set
forth; and

 

WHEREAS,
all capitalized terms not otherwise defined in the text of this Agreement shall have the meanings ascribed to such terms by
the glossary in §10.2 of this Agreement.

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

ARTICLE
1

 

ORGANIZATION
OF COMPANY

 

§1.1
Filing. The Company was organized as a limited liability company pursuant to the Act and the provisions of this Agreement
by filing the Articles of Organization of the Company (the “Certificate”) with the Florida Secretary of State
on January 27, 2017.

 

ARTICLE
2

 

CHARACTER
OF BUSINESS

 

§2.1
Purpose of the Company. The primary business of the Company is to engage in any business allowed under the laws of the State
of Florida.

 

ARTICLE
3

 

NAME,
PRINCIPAL OFFICE AND TERM

 

§3.1
Name. The Company shall conduct business under the name “TCA Cresent Construction Company, LLC”.

 

§3.2
Principal Office and Records Office. The principal office of the Company shall be at 19550 West Country Club Drive, Suite
101, Aventura, Florida 33180, or such other location as may be determined by the Board. Each Member shall be notified in writing
of any change in the principal office of the Company.

 

§3.3
Term. The term of the Company commenced on the filing of the Certificate with the Florida Secretary of State and shall continue
until terminated as hereinafter provided.

 

    	 	1	 

     

    

 

§3.4
Resident Agent and Registered Office. The resident agent of the Company for service of process is VCorp Services, LLC, located
at 5011 South State Road 7, Suite 106, Davie, Florida, 33314. The Company’s registered office is at 19550 West Country Club
Drive, Suite 101, Aventura, Florida 33180 in the State of Florida. The Resident Agent and Registered Office of the Company may
be changed pursuant to Florida law.

 

ARTICLE
4

 

CAPITALIZATION
OF THE COMPANY

 

§4.1
Membership Units. The Company is authorized to issue a total of 100,000 Membership Units consisting of two classes, including
1,000 Class A Membership Units (the “Class A Units”) and 99,000 Class B Membership Units (the “Class
B Units”, together with the Class A Units collectively referred to as the “Membership Units”). The
rights, duties, and obligations of the Members of the Company shall be governed by the terms and conditions of this Agreement
and shall be represented by Membership Units.

 

	 	(a)	Class
    A Membership Units. Holders of Class A Units (each a “Class A Member”) shall be entitled to vote on
    matters presented to the Members for approval. 
	 	 	 
	 	(b)	Class
    B Membership Units. Holders of Class B Units (each a “Class B Member”) shall not be entitled to vote
    unless the right for such Class B Member to vote is expressly granted herein.

 

§4.2
Capital of the Company. Each Member shall contribute to the Company the amount of the initial Capital Contribution set forth
after each Member’s name on Exhibit “A” annexed hereto (“Initial Capital Contribution”),
which sets forth the names and respective Initial Capital Contributions to the Company by each Member. No Member shall be required
to make any additional Capital Contribution to the Company or to restore any deficit in such Member’s Capital Account, and
such deficit, if any, shall not be considered a debt owed to the Company or to any other person for any purpose.

 

§4.3
Maintenance of Capital Accounts. The Company shall establish and maintain a Capital Account for each Member, in accordance
with the rules set forth in Treasury Regulation 1.704-1(b), or any successor provision(s). The initial capital account of each
of the Members shall consist of the amount or value of the Capital Contributions as set forth on Exhibit “A”.

 

§4.4
Withdrawal of Capital. A Member shall not be entitled to withdraw any part of such Member’s Capital Account or to receive
any distribution from the Company, except as provided in this Agreement.

 

§4.5
Interest on Capital Contributions. No interest shall be due from the Company on any Capital Contribution of any Member.

 

§4.6
Treatment of Loans and Other Payments. If any Member shall provide funds to the Company other than the Initial Capital Contributions,
such funds shall not increase such Member’s percentage interest in the Company or constitute an additional capital contribution;
instead, any such funds shall be treated as a loan and shall be a debt due from the Company to such Member. The Company will be
issuing a promissory note to the entities identified on Schedule B (together with any additional promissory notes to be advanced
by the holders identified on Schedule B, collectively, the “Notes”) which shall be treated as loans and shall
not be capital contributions.

 

    	 	2	 

     

    

 

ARTICLE
5

 

DISTRIBUTIONS
AND SHARING OF DISTRIBUTIONS 

AMONG MEMBERS

 

§5.1
Distributions. Upon meeting the Revenue Thresholds and upon the written consent of the Board, Net Cash Flow shall be distributed
by the Company to the Members in the manner and priority provided in § 5.4. Upon the written consent of the Board, unless
otherwise provided herein, all distributions shall be made to all Members simultaneously and shall be pro rata in proportion to
their respective Percentage Interest. Prior to any Net Cash Flow distribution to the Members, the Company must meet certain revenue
thresholds (the “Revenue Thresholds”) as determined by the Board from time to time in its sole discretion.
The Members agree that the Board may, and is hereby authorized to, in such amount and at such time as the Board shall determine,
distribute funds and make payments to third parties on behalf of the Members, including, but not limited to payments to the Internal
Revenue Service.

 

§5.2
Profits & Losses. Except as otherwise specifically provided herein, Profits and Losses for any fiscal year shall be allocated
to the Members on a pro rata basis based upon their respective Percentage Interest in the Company, unless the Board agrees to
a different allocation of Profits and Losses permitted by law and applicable regulation.

 

§5.3
Allocation Rules.

 

 (A) Determination Generally. The Profits and Losses of the Company shall be determined for each fiscal year in accordance with the accounting method adopted by the Company for federal income tax purposes. Where the accounting method adopted by the Company for federal income tax purposes provides no rule regarding a specific transaction, the transaction shall be accounted for in accordance with sound accounting procedures applied in a consistent manner. Profits and Losses shall be allocated to the Members annually. 

 

 (B) Income Characterization. For purposes of determining the character (as ordinary income or capital gain) of any Profit allocated to a Member, the portion of such Profit that is treated as ordinary income attributable to the recapture of depreciation, if any, shall be allocated among the Members in the proportion that the amount of depreciation, if any, previously allocated to each Member relating to Company assets or property bears to the total of such depreciation allocated to all Members.

 

 (C) Allocation of Other Items. Except as otherwise provided in this Agreement, all items of Company income, gain, loss, deduction, and any other allocations not otherwise provided for shall be divided among the Members in the same proportions as they share Profits or Losses, as the case may be, for the year.

 

    	 	3	 

     

    

 

 (D) Binding Effect. The Members are aware of the income tax consequences of the allocations made by this Article and hereby agree to be bound by the provisions of this Article in reporting their respective Percentage Interest of Profits and Losses for income tax purposes.

 

§5.4
Available Net Cash Flow. Net Cash Flow of the Company, as determined by the Board, shall be distributed from time to time
as soon as is reasonably practicable as determined by the Board following receipt thereof by the Company, as follows and in the
following order of priority:

 

 (i) First, to pay or reserve against any Tax Distributions required pursuant to §5.5 below;

 

 (ii) Second, to pay any amounts owed on the Notes;

 

(iii)
Third, the Members according to their Percentage Interests, provided, however, that no Net Cash Flow distribution shall be made
to the Members for the first thirty-six (36) months following the date hereof unless otherwise approved by the Board.

 

§5.5
Tax Distributions. Following the close of each taxable year, the Company shall, prior to making any additional distributions
pursuant to §5.4, distribute to each Member (each such distribution, a “Tax Distribution”), solely to
the extent of any available Net Cash Flow of the Company, an amount equal to the Company’s then best estimate of the aggregate
tax liability to the Members for the previous year. Any Tax Distribution will be credited towards payments required to have been
made under §5.4. To the extent a Member received distributions in excess of what such Member otherwise would be entitled
to under §5.4 the Board may adjust future distributions under §5.4 so that the Members shall be in the same position
they would have been had the Tax Distribution not been made.

 

§5.6
Liens and Encumbrances. Notwithstanding anything contained herein to the contrary, in the event that the Class B Membership
Units held by any Class B Member become subject to any lien, pledge, hypothecation, security interest or encumbrance of any nature
or kind, such Class B Member’s Class B Membership Units shall have no Economic Interest and shall not be entitled to any
distribution of Net Cash Flows or any other distribution provided herein. The Economic Interest otherwise attributable to such
Class B Member’s Percentage Interest shall instead be allocated to the Class A Members, thereby increasing each Class A
Member’s Percentage Interest pro rata in proportion to such Class A Member’s ownership of the Class A Membership Units.

 

ARTICLE
6

 

BOOKS
OF ACCOUNT AND COMPANY RECORDS

 

§6.1
Books of Account. The Company shall keep and maintain, or cause to be kept and maintained, in accordance with generally accepted
accounting principles consistently applied complete and accurate books, records and accounts of the Company. Unless otherwise
determined by the Manager, the accounting firm for the Company (“Accountant”), among other things, shall prepare
quarterly and annual financial statements of the Company.

 

    	 	4	 

     

    

 

§6.2
Record Keeping. All books, records and accounts of the Company together with executed copies of this Agreement and all other
documents relating, without limitation, to the existence, control and governance of the Company shall be kept at all times at
the principal office of the Company and/or the offices of the Company’s Accountant or lawyers. Upon reasonable prior notice,
Members or their designated representatives shall at all times have access to the Accountant and the right to inspect the books
and records of the Company. The Company shall provide the Members with unaudited financial statement for the previous fiscal year
no later than April 15th of the subsequent year. The Company shall also distribute to the Members quarterly unaudited financial
statements within 45 days of the end of the first three fiscal quarters of the calendar year.

 

§6.3
Fiscal Year. The fiscal year of the Company shall be the calendar year.

 

§6.4
Financial Statements. The Company shall cause to be prepared and filed all Federal, state and local income tax returns and
information returns, if any, which the Company is required to file. For each fiscal year, the Company shall transmit to the Members
on a timely basis such information as the Members may reasonably require for submission of their income tax returns.

 

§6.5
Bank Accounts. The funds of the Company shall be deposited at such bank or banks and in such Company account or accounts as
shall be designated by the Board. The signatory or signatories of Company’s bank accounts shall be designated by the Board.

 

§6.6
Tax Matters Partner. TCA Global Credit Master Fund, LP, shall act as the “Tax Matters Partner” under Section
6231(a)(7) of the Internal Revenue Code of 1986, as amended, to manage administrative tax proceedings with the Internal Revenue
Service.

 

ARTICLE
7

 

RIGHTS,
POWERS, DUTIES AND OBLIGATIONS OF THE

BOARD,
MANAGERS AND MEMBERS

 

§7.1
Management.

 

Unless
otherwise specifically provided in this Agreement, the business and affairs of the Company shall be managed, directed and controlled
solely by a board of managers (each a “Manager”; together, collectively, the Managers shall constitute the
“Board”). Initially, the Board shall be comprised of a single Manager, Alyce Schreiber. The number of Managers
constituting the Board may be adjusted at any time by unanimous vote of the Class A Members. A Manager shall not be required to
be a Member.

 

§7.2
Management Duties, Authority and Powers. Subject to the provisions, limitations and restrictions of § 7.14 and §
7.15 of this Agreement, the business and affairs of the Company shall be managed by and under the sole and complete authority
of the Board, who shall be responsible for directing, supervising and undertaking the business affairs of the Company and shall
make all decisions affecting the Company.

 

    	 	5	 

     

    

 

§7.3
Officers. The Board may appoint officers to act on behalf of the Company under the direct supervision and control of the Board.

 

§7.4
Reimbursement to the Managers. A Manager shall be entitled to receive reimbursement for actual and reasonable travel and entertainment
expenses incurred in connection with his or her duties as a Manager of the Company. The Managers shall be entitled to be reimbursed
for all actual and out-of-pocket costs and expenses incurred in connection with the Company’s organizational costs, including
legal fees incurred in connection with the formation and initial capitalization of the Company (but excluding legal fees and expenses
incurred in the preparation and negotiation of this Agreement) and amounts expended that are related to the filing of the Certificate
and the formation of the Company.

 

§7.5
Management Fees. The Company shall not pay any fees or salaries to the Manager(s) unless approved by the Class A Members in
accordance with Sections 7.14 and 7.15.

 

§7.6
Resignation. A Manager may resign at any time by giving ten (10) days’ written notice to the Members. The resignation
of a Manager shall take effect at the time at least ten (10) days after the date of the written notice as shall be specified in
the notice; and, unless otherwise specified in the notice, the acceptance of the resignation shall not be necessary to make it
effective. The resignation of a Manager who is also a Member shall not affect such Manager’s rights as a Member and shall
not constitute a withdrawal or dissociation of a Member; provided, however, any Manager who resigns shall no longer be entitled
to receive any salary or other benefits from the Company if any, that are payable to the Managers.

 

§7.7
Removal. At a meeting called expressly for that purpose, a Manager may be removed at any time, without cause, by the affirmative
unanimous vote of the Class A Members. The removal of a Manager who is also a Member shall not affect such Manager’s rights
as a Member and shall not constitute a withdrawal or dissociation of a Member.

 

§7.8
Vacancies. In the event of the withdrawal, removal, resignation of any Manager, a replacement Manager shall be appointed by
unanimous vote of the Class A Members. A successor Manager shall qualify by executing an agreement, in form reasonably acceptable
to the Company, whereby the successor Manager agrees to be bound by the provisions of this Agreement.

 

§7.9
Voting Decisions By Members.

 

 (A) General Rules. Unless otherwise specifically set forth in this Agreement, all actions and decisions requiring the approval of the Members pursuant to any provision of this Agreement or the Act may be authorized or made by a unanimous vote of the Class A Members. Any action that may be taken by the Class A Members at a meeting may be taken by the unanimous written consent of the Class A Members. Economic Interest Owners shall not be entitled to receive notices, vote, call meetings, or act as proxies, and their consent shall not be required for any purpose under this Agreement.

 

(B)
Vote by Proxy. A Class A Member entitled to vote on any matter may vote (or execute a written consent) by proxy given to
any other Class A Member. Any such proxy must be in writing and must identify the specific meeting or matter to which the proxy
applies or state that it applies to all matters (subject to specified reservations, if any) coming before the Class A Members
for approval under any provision of this Agreement prior to a specified date (which shall not be later than the first anniversary
date on which such proxy is given). Any such proxy shall be revocable at any time and shall not be effective at any meeting at
which the Class A Member giving such proxy is in attendance.

 

    	 	6	 

     

    

 

§7.10
Power of Employees and Agents. Unless authorized to do so by this Agreement or in writing by the Board of the Company, no
attorney-in-fact, employee or other agent of the Company, other than the Manager(s), shall have any power or authority to bind
the Company in any way, to pledge its credit or to render it pecuniarily liable for any purpose.

 

§7.11
Liability for Certain Acts. To the extent permitted by Florida law, neither the Manager nor any owner, officer, director or
Member of the Company shall be personally liable to the Company or its Members for damages for breach of any duty owed to the
Company or its Members except that the Manager and any officer, director, or Member of the Company shall not be relieved from
liability for any breach of duty based on an act or omission (a) in breach of such person’s duty of loyalty to the Company
or its Members, (b) not in good faith or involving a knowing violation of law or this Agreement, (c) resulting in receipt by such
person of an improper personal benefit not permitted under this Agreement or (d) which is grossly negligent or constitutes willful
misconduct.

 

§7.12
Indemnification. Each Manager and Company officer shall be indemnified by the Company subject to the provisions of Article
11.

 

§7.13
Voting Decisions By the Managers. All actions and decisions requiring the approval or consent of the Board pursuant to any
provision of this Agreement or by the Act must be authorized by a majority of the Managers.

 

 (A) General Rules. Actions and decisions requiring the approval or consent of the Board pursuant to any provision of this Agreement or the Act may be authorized or made either by majority vote of the Manager(s) taken at a meeting of the Manager(s) or by unanimous written consent of the Manager(s) without a meeting.

 

 (B) Meetings. Any Manager may call a meeting to consider approval of an action or decision under any provision of this Agreement by delivering to each other Manager notice of the time and purpose of such meeting at least ten (10) days before the day of such meeting. A Manager may waive the requirement of notice of a meeting either by attending such meeting or executing a written waiver before or after such meeting. Any such meeting shall be held during the regular business hours at the Company’s principal place of business unless all of the other Managers consent in writing or by their attendance at such meeting to its being held at another location or time.

 

(C)
Authorization By Written Consent. A Manager may propose that the Company authorize an action or decision pursuant to any
provision of this Agreement by written consent of a majority of the Managers in lieu of a meeting if there is more than one (1)
Manager. A Manager’s written consent may be evidenced by such person’s signature on a counterpart of the proposal
or by a separate writing (including a facsimile) that identifies the proposal with reasonable specificity and states that the
Manager consents to such proposal.

 

    	 	7	 

     

    

 

 (D) Records. The Company shall maintain permanent records of all material actions taken by the Manager and/or at meetings of the Manager(s) pursuant to any provision of this Agreement, including minutes of all Company meetings, copies of all actions taken by consent of the Manager(s), and copies of all proxies pursuant to which one Manager votes or executes a consent on behalf of another.

 

§7.14
Approval of Major Decisions. Notwithstanding anything to the contrary in this Agreement, all decisions or actions as set forth
in Section 7.15 (“Major Decisions”) may not be taken solely in the Board’s discretion and shall require
the unanimous affirmative vote of the Class A Members. Approval of Major Decisions may be given at a Meeting called for that purpose
or by written consent.

 

§7.15
Designation of Major Decisions. The following shall constitute Major Decisions subject to approval of the Class A Members,
as set forth in Section 7.14:

 

 (A) Other than in the regular course of business, the sale of all or a substantial portion of the assets owned by the Company. For this purpose, Twenty Percent (20%) of the fair market value of the assets owned by the Company shall constitute a “substantial portion.”

 

 (B) Any change in the principal purpose of the Company’s business, as set forth in § 2.1.

 

 (C) Any decision to dissolve the Company.

 

 (D) Any borrowing by the Company or any pledge of assets owned by the Company or any loan to a Member or Manager.

 

 (E) The admission of any new Member.

 

 (F) Any amendment of this Agreement.

 

 (G) Any distributions to be made to the Members, provided, however, that repayment with respect to the Notes, in the event that any Note has been issued by a Member, shall not be a Major Decision and shall not require the affirmative unanimous vote of the Class A Members.

 

ARTICLE
9

 

TRANSFER
OF INTERESTS

 

§8.1
Transfer With Substitution.

 

(A)
Except for a transfer of Membership Units (i) by a Member to a member of his/her family or (ii) by a Member to a trust(s) for
the benefit of a Member’s family or (iii) by a Member of all of his/her Membership Units to a corporation or limited liability
company wholly owned by the original Member or (iv) by a Member to an employee of the Company pursuant to a membership/stock option
plan or similar type of employee compensation plan adopted by the Company or (v) pursuant to § 8.9 hereof (each hereinafter
referred to as a “Permitted Transfer”), no Member may transfer all or part of a Member’s Membership Units
without the consent of the Board nor shall any assignee, legatee or distributee of the whole or any part of such Membership Units
have the right to become a substituted Member in place of his predecessor in interest in respect to the whole or any portion of
said Membership Units without the prior written consent of the Board. In the case of a Permitted Transfer, the transferring Member
shall remain the Member of the Company unless a permitted transferee is either (I) over 21; (ii) is a professional trustee or
investment manager; or (iii) the transferee is an entity of which the transferring Member is sole owner, in which cases the transferee
shall become the Member upon satisfaction of the requirements for becoming a Member set forth in this Agreement.

 

    	 	8	 

     

    

 

(B)
The word “family” as used in this Section shall mean a person who is a (i) parent, child or sibling of a Member,
or (ii) trustee or custodian on behalf of any person described in (i) hereof.

 

(B)
For purposes of this Agreement, a “transfer” includes, but is not limited to, any (i) sale, assignment, gift,
exchange, hypothecation, collateral assignment or subjection to any security interest of a Percentage’s Interest or (ii)
sale, assignment, gift, exchange, pledge, hypothecation or other transfer by operation of law or otherwise, in one or a series
of transactions, of any Membership Units, partnership or membership interests or other equity interests of a corporation, partnership,
limited liability company or other entity which is a Member.

 

§8.2
Transfer without Substitution. Subject to compliance with the other conditions of this Article, a Member may only transfer
all or part of such Member’s Membership Units with the prior written consent of the Board (except for a Permitted Transfer
where no Board consent is required) and only in the manner permitted under this Agreement by a written instrument of assignment,
the terms of which may not be in contravention of any of the provisions of this Agreement. The assigning Member shall deliver
to the Board a written instrument of assignment in form and substance reasonably satisfactory to the Board, duly executed by the
assigning Member or such Member’s personal representative or authorized agent. The assignment shall be accompanied by such
assurances of genuineness and effectiveness and by such consents or authorizations of governmental or other authorities or such
opinions as to compliance with or exemption from securities laws as may be reasonably required by the Board. Upon consent of the
Board to the proposed assignment, the assignee shall take all steps required by this Agreement to become a Member and shall not
become a Member until all such steps have been completed. Until the assignee becomes a Member, all rights accruing or attaching
to Membership shall belong to the assignor Member and neither the Board nor the Company shall incur any liability for so treating
the assignor and assignee Members. Unless and until admitted as a substitute or additional Member by the Board in accordance with
this Agreement, any person that succeeds to the Membership Interest of a Member, whether by assignment or operation of law, shall
only be an Economic Interest Owner, who shall be entitled to receive distributions from the Company, and be allocated Profits
and Losses of the Company attributable to the Percentage Interest acquired by reason of such assignment from and after the effective
date of the assignment of such Interest and the consent to such assignment by the Board and all other rights of a Member attributable
to such Percentage Interest, except for the right to inspect Company books and records, if any, shall terminate until and unless
such assignee becomes a substituted or additional Member; provided, however, that the Board and the Company shall be entitled
to treat the assignor of such Percentage Interest as the owner thereof in all respects, and shall incur no liability for distributions
made in good faith to such assignor, until such time as both the beneficiary of such assignment has been recognized by the Company
as an assignee in accordance with this Article 8.

 

    	 	9	 

     

    

 

§8.3
Admission of Substituted Members. The transferee of Membership Units transferred by a Member in connection with a Permitted
Transfer or Membership units transferred by a Member who has obtained the prior written consent of the Board shall become a substituted
or additional Member in the Company provided that, in addition to the requirements of § 8.5, the transferor and transferee
of such Membership Units have executed, acknowledged and delivered such other instruments as counsel to the Company reasonably
deems necessary or desirable to effect such admission. A transferee accepted as a substitute or additional Member by the Board
shall have all of the rights and obligations of its predecessor in interest in the Company, to the extent that they relate to
the transferred Interest.

 

§8.4
Admission of Additional Members. Except as limited by the terms of this Agreement including §7.15(E), with the approval
and consent of the Board, any person may become an additional Member in the Company by the issuance of such additional Membership
Units in exchange for such consideration as the Board may determine. Such person may become an additional Member in the Company
only if, in addition to the requirements of Section 8.5, the person executes such instruments as counsel to the Company may deem
reasonably necessary or desirable to effect such admission.

 

§8.5
Conditions on Transfers of Interest. A transfer of a Membership Unit and the admission of additional Members, otherwise permitted
by this Article 8 shall be subject to the following additional limitations:

 

 (A) No Membership Unit may be transferred or issued if such proposed action, in the reasonable opinion of counsel for the Company, would result in the termination of the Company under Section 708 of the Code, or would impair the ability of the Company to be taxed as a partnership for Federal income tax purposes.

 

 (B) No Membership Unit may be issued by the Company or transferred by a Member unless the transferee confirms in a writing reasonably acceptable to counsel for the Company that such transferee has accepted, assumed, and agreed to be subject to and bound by all of the terms and conditions of this Agreement.

 

§8.6
Withdrawal of Member. Except as otherwise provided in this Article 8, no Member shall be entitled to withdraw or resign from
the Company without the consent of the Board.

 

§8.7
Obligations of Transferring Member. No transfer by a Member of all or any portion of an Interest in the Company shall, to
any extent, relieve the transferring Member of any of such Member’s obligations to the Company or liability, if any, as
a Member (whether or not such person remains as a Member).

 

§8.8
Allocations Upon Transfer of Interest.

 

(A)
As between a Member and his transferee, profits, losses and credits for any quarterly period shall be apportioned to the person
who is the holder of the Membership Units transferred on the last day of such quarterly period, without regard to the results
of the Company’s operations during the period before or after such transfer. However, in the event that it is determined
by the Board that the convention adopted by the Company to allocate income, gain, loss, deduction or credit of the Company is
not in compliance with Section 706(d) of the Code, as modified by Regulations promulgated thereunder, then the Board shall revise
the method of allocation to comply with such Regulations.

 

    	 	10	 

     

    

 

(B)
No new Member shall be entitled to any retroactive allocation of Profits or Losses incurred by the Company. The Board may, at
its option, at the time a Member is admitted, or an Interest transferred, close the Company’s books or make an allocation
of tax items using any reasonable method permitted under the Code and applicable Treasury Regulations.

 

(C)
Any distributions of cash or other property shall be made to the holder of record of any Membership Units on the date of distribution
or on the declared record date, if earlier.

 

ARTICLE
9

 

DISSOLUTION
AND LIQUIDATION

 

§9.1
Events Triggering Dissolution. The Company shall dissolve and commence winding up and liquidating upon the first to occur
of any of the following (“Liquidating Events”):

 

 (A) the determination by the Class A Members as set forth in § 7.15(C) above, that the Company should be dissolved; or

 

 (B) a judicial determination that an event has occurred that makes it impossible or unlawful to carry on the business of the Company.

 

§9.2
Effect of Dissolution. No dissolution of the Company shall release any of the parties to this Agreement from their contractual
obligations under this Agreement.

 

§9.3
Liquidation. Upon dissolution of the Company in accordance with § 9.1, the Company shall be liquidated. The Board shall
select a Liquidating Manager (who may be a Manager) who shall serve only for purposes of winding up the Company. If there are
then no members of the Board, the Liquidating Manager shall be selected by unanimous vote of the Class A Members. The proceeds
of such liquidation shall be applied and distributed in the following order of priority:

 

(A)
to the payment of the debts and liabilities of the Company and the expenses of liquidation (including, if applicable, the reasonable
fees of the Liquidating Manager);

 

 (B) to the setting up of any reserves which the Liquidating Manager may deem reasonably necessary for any contingent or unforeseen liabilities or obligations of the Company, which reserves shall be paid over to an attorney at law, as escrow-holder, to be held for the purpose of disbursing (under the direction of the Liquidating Manager) such reserves in payment of any of the aforementioned liabilities and, at the expiration of such period (not to exceed two (2) years) as the Liquidating Manager may deem advisable, for distribution in the manner hereinafter provided;

 

    	 	11	 

     

    

 

 (C) to the repayment of any outstanding loans that may have been made by any of the Members to the Company pro rata among them on the basis of the principal and accrued interest on such loans to the Company; and

 

 (D) to the Members in the amounts and the order of priority set forth in § 5.4.

 

§9.4
Distributions in Kind. The Liquidating Manager may make distributions to the Members in cash or in kind, or partly in cash
or partly in kind, in divided or undivided interests, and allocate any property towards the satisfaction of any payment or distribution
due to the Members in such manner as the Liquidating Manager may reasonably determine. Distribution of any asset in kind to a
Member shall be considered as a distribution of an amount equal to the asset’s fair market value for purposes of this §
9.4.

 

§9.5
Timing of Liquidation. Distributions and liquidation of the Company shall be made in compliance with Treasury Regulation Section
1.704-1(b)(2)(ii)(b).

 

§9.6
Certificate of Cancellation. Upon the dissolution of the Company and the completion of the liquidation and winding-up of the
Company’s affairs and business, the Liquidating Manager shall (or if the Liquidating Manager fails to act, then any Manager
may) prepare and file a certificate of cancellation with the State of Florida Secretary of State, as required by the Act. When
such certificate is filed, the Company’s existence shall cease.

 

ARTICLE
10

 

MISCELLANEOUS
PROVISIONS

 

§10.1
Amendment. Notwithstanding anything to the contrary in §7.15, this Agreement may not be amended, without the consent
of the Class A Members.

 

§10.2
Glossary. Unless otherwise defined herein, as used in this Agreement, capitalized words and phrases shall have the following
meanings:

 

(A)
Affiliate. “Affiliate” of a Person shall mean any Relative of such Person or any Person that controls,
is controlled by, or is under common control with, such Person, or an officer, director, partner, managers, or trustee (or Relative
of any thereof) of such Person, where “control” means the power, by contract, ownership of securities or other interests
in a Person, or otherwise, to elect the majority of the directors of a corporation or otherwise direct the management of a Person.
The Company shall not be deemed an Affiliate of a Member or of any of a Member’s Affiliates.

 

(B)
Bankruptcy. “Bankruptcy” of any individual, corporation or partnership shall be deemed to occur when
(1) such individual, corporation or partnership files a petition in bankruptcy, or voluntarily takes advantage of any bankruptcy
or insolvency law, or (2) is the subject of a petition or answer proposing the adjudication of such person as bankrupt, and such
individual, corporation or partnership either consents to the filing thereof, or fails to cause such petition or answer to be
discharged or denied prior to the expiration of sixty (60) days from the date of such filing, or (3) such person’s or entity’s
assets are insufficient to pay his, her or its liabilities, or he, she or it has so admitted in writing.

 

    	 	12	 

     

    

 

(C)
Capital Account Deficit. “Capital Account Deficit” means, with respect to any Member, the deficit
balance, if any, in such Member’s Capital Account as of the end of the relevant fiscal year of the Company, after giving
effect to the following adjustments:

 

(i)
Credit to such Capital Account any amounts which such Member is obligated to restore (pursuant to the terms of any promissory
note of such Member or otherwise) or is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations
Sections 1.704-2(g)(1) and 1.704-2(i)(5); and

 

(ii)
Debit to such Member’s Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6) of the Regulations.

 

The
foregoing definition of Capital Account Deficit is intended to comply with Regulations Section 1.704-1(b)(2)(ii)(d) and shall
be interpreted consistently therewith.

 

(D)
Capital Contribution. “Capital Contribution” means, with respect to any Member, the amount of money and
the initial fair market value of any property (other than money) contributed to the Company with respect to a Membership Unit
held by such Member.

 

(E)
Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time (or any corresponding
provisions of succeeding law).

 

(F)
Company. “Company” means the limited liability company governed by this Agreement.

 

(G)
Economic Interest. “Economic Interest” means the Percentage Interest of a Member in the Company’s
Profits, Losses, Net Cash Flow, and other distributions of the Company’s assets pursuant to this Agreement and the Act,
but shall not include any right to participate in the management or affairs of the Company, including, without limitation, the
right to vote on, consent to, or otherwise participate in any decision of the Members or the Company.

 

(H)
Economic Interest Owner. “Economic Interest Owner” shall mean the owner of an Economic Interest who is not
a Member, including without limitation, a person who has acquired an Economic Interest (i) as an assignee pursuant to § 8.2,
or (ii) as the personal representative, guardian or other successor in interest upon the death (in the case of a Member who is
an individual), dissolution (in the case of a Member who is not an individual) or bankruptcy of a Member.

 

(I)
Members. “Members” mean the persons listed on the attached Exhibit “A” and executing this
Agreement as Members, and any person admitted to the Company as a Member in accordance with Article 8. The Members shall have
the powers, rights and privileges provided to them in this Agreement.

 

(J)
Net Cash Flow. “Net Cash Flow” means the gross cash proceeds from Company operations (including all sales
and dispositions) and all refinancing or acquisition of loans obtained by the Company less the operating expenses of the Company
(the “Operating Expenses”) including the portion of such proceeds used to pay or establish reasonable reserves
for all Company expenses, debt payments, debt service (including loan principal and interest payments), capital improvements,
replacements, and contingencies, all as determined by the Board in accordance with the provisions of this Agreement and in consultation
with the Accountant. Net Cash Flow shall not be reduced by depreciation, amortization, cost recovery deductions, or similar allowances,
but shall be increased by any reductions of reserves previously established. Payments of principal and interest on any debts or
other obligations of the Company, whether or not secured by mortgages or liens on Company property, shall be considered as a deduction
from Net Cash Flow.

 

    	 	13	 

     

    

 

(K)
Percentage Interest. “Percentage Interest” means a Member’s Economic Interest in the Company equal
to the proportion of all Class A Membership Units and Class B Membership Units owned by such Member to the total Membership Units
of the Company.

 

(L)
Person. “Person” means and includes an individual, corporation, partnership, association, limited liability
company, trust, estate or other entity.

 

(M)
Profit and Losses. “Profits” and “Losses” means, for each fiscal year or other period,
an amount equal to the Company’s taxable income or loss for such year or period, determined by the Board in accordance with
the Code, with the following adjustments:

 

 (i) Any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this Subsection shall be added to such taxable income or loss; 

 

(ii)
Any expenditures of the Company described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant
to Treasury Regulation Section 1.704-1(b)(2)(iv)(i), and not otherwise required to be taken into account in computing Profits
or Losses pursuant to this Subsection, shall be subtracted from such taxable income or loss.

 

(N)
Relative. “Relative” of an individual means any other individual to whom the individual in question
is related by blood, marriage or adoption, not more remotely than as a first cousin.

 

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

 

§10.3
Notices. Unless otherwise provided in this Agreement or by written agreement of the Members, all notices or other communications
required or permitted to be given under this Agreement shall be deemed given when delivered personally or two (2) days after mailing
by registered or certified mail, return receipt required, postage prepaid, or on the date delivered if delivered by overnight
courier service or by electronic mail, to the Members at their addresses or E-mail addresses on the records of the Company, or
at such other addresses as a Member may designate in writing to the Company.

 

    	 	14	 

     

    

 

§10.4
Binding Effect. Except as otherwise provided in this Agreement to the contrary, this Agreement shall be binding upon and inure
to the benefit of the parties, their personal representatives, successors and assigns.

 

§10.5
Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of
which shall be deemed to constitute one and the same instrument, and it shall be sufficient for each party to have executed at
least one, but not necessarily the same, counterpart.

 

§10.6
Governing Law. This Agreement shall be governed by, and construed in accordance with the laws of the State of Florida. Any
action to enforce the terms hereof shall be brought in the courts located in the State of Florida, County of Broward.

 

§10.7
Severability. The invalidity or unenforceability of any particular provision of this Agreement shall be construed in all respects
as if such invalid or unenforceable provision were omitted.

 

§10.8
Gender. As used in this Agreement, the masculine gender shall include the feminine and the neuter, and vice versa.

 

§10.9
Injunctive Relief. Each Member acknowledges that the restrictions and limitations upon the sale, assignment, transfer, pledge
or encumbrance of the Percentage Interests are special, unique and necessary to assure the continuity and harmony of the Company’s
policies and operations, and that it would be impossible to measure damages, in money to the Company or the Members for breach
of any provision herein. Each Member agrees that if the Company or any Member violates or attempts to violate the provisions of
this Agreement, in addition to any other rights or remedies that the Company or other Members may have under this Agreement or
otherwise, the Company and the other Members shall be entitled to an injunction to restrain any such violation or attempted violation
thereof.

 

§10.10
Entire Agreement. This Agreement, together with the Articles to the extent referenced herein, constitute the complete and
exclusive agreement and understanding of the Members with respect to the subject matter contained herein. This Agreement and the
Articles replace and supersede all prior agreements, negotiations, statements, memoranda and understandings, whether written or
oral, by and among the Members or any of them.

 

§10.11
Facsimile Copies. Facsimile or electronic mail copies of this Agreement or of any counterpart, and facsimile or electronic
mail signatures hereon or on any counterpart, shall have the same force and effect as originals.

 

§10.11
Advice of Counsel. the PARTIES HERETO
hereby acknowledge that THEY HAVE been, and hereby ARE, advised to seek legal counsel and to review thIs AGREEMENT with legal
counsel of ITs choice, and (ii) such partIES HAVE sought such legal counsel, which such legal counsel has reviewed this AGREEMENT,
or hereby waives the right to do so. The PARTIES acknowledge that THEY HAVE no objection to the terms and conditions herein contained.
The economic, business and legal terms and conditions contained herein were agreed upon by the PARTIES after THE PARTIES had the
opportunity to consult with independent counsel. The PARTIES HAVE had access to their respective independent counsel and HAVE
knowingly consented and executed this AGREEMENT and agreed to be irrevocably bound by its terms.

 

    	 	15	 

     

    

 

ARTICLE
11

 

INVESTMENT
REPRESENTATIONS OF MEMBERS,

UCC
AND CERTIFICATES

 

§11.1
Securities Law Qualification. THE SECURITIES REPRESENTED BY THIS DOCUMENT HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, 15 U.S.C. § 15b ET SEQ., AS AMENDED (THE “FEDERAL ACT”),
OR REGISTERED WITH OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE (THE “STATE ACTS”), IN RELIANCE UPON
ONE OR MORE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE FEDERAL ACT AND THE STATE ACTS. NO SALE OR OTHER TRANSFER OF
THESE SECURITIES OR ANY INTEREST THEREIN TO, OR RECEIPT OF ANY CONSIDERATION THEREFOR, MAY BE MADE IF THE PROPOSED SALE OR OTHER
TRANSFER OF THESE SECURITIES AFFECTS THE AVAILABILITY TO THE COMPANY OF SUCH EXEMPTIONS FROM REGISTRATION AND QUALIFICATION, AND
ANY SUCH PROPOSED SALE OR OTHER TRANSFER MUST BE IN COMPLIANCE WITH ALL APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THEREFORE,
MEMBERS MAY NOT BE ABLE TO LIQUIDATE THEIR INVESTMENTS AND THESE SECURITIES MAY NOT BE READILY ACCEPTED AS COLLATERAL FOR A LOAN.

 

§11.2
Representations and Warranties under the Securities Laws. Each Member (each an “Investor”) represents and
warrants with respect to the purchase of the Membership Units as follows:

 

(A)
Investor understands that the Membership Units are being offered and sold without qualification under the Federal Act or the State
of Florida securities laws in reliance upon certain exemptions from the qualification and registration requirements contained
therein. Specifically, Investor is purchasing its Membership Units for investment only and not with a view to resale.

 

(B)
Investor is further aware that Rule 144 of the Rules and Regulations for the Securities and Exchange Commission (“SEC”)
issued under the Federal Act is not presently available to exempt the sale of the Membership Units from the registration requirements
of the Federal Act.

 

(C)
Investor acknowledges and understands that the availability of the exemptions depend in part upon the accuracy of the representations
and warranties set forth herein, and with the intent that such representations and warranties may be relied upon in determining
the availability of the exemptions, and in order to induce the Company to issue the Membership Units to Investor without requiring
that they be registered under the Federal Act or qualified under the State Act, Investor makes such representations and warranties
to the Company:

 

    	 	16	 

     

    

 

(D)
Investor is purchasing the Membership Units of the Company and becoming a Member of the Company without being furnished any offering
literature or prospectus which has been reviewed or approved by the SEC or any other federal or state agency.

 

(E)
Investor understands and acknowledges that Investor’s purchase of the Percentage Interests has not been reviewed by, passed
on by or submitted to any governmental agency, including the SEC, and the Investor is aware that no federal or state agency has
made any recommendation or endorsement of the Percentage Interests.

 

(F)
Investor recognizes that the Company has no financial or operating history and that an investment therein involves substantial
risks.

 

(G)
Investor is experienced in making investments generally and is experienced in evaluating and investing in recently organized companies
such as the Company.

 

(H)
Investor has been given the opportunity by the Board to ask any questions concerning the Company and his or her proposed investment
and to discuss the Company’s business, management and financial affairs, and, to the extent Investor has availed himself
or herself of that opportunity, he or she has received satisfactory information and answers.

 

(I)
Investor has a pre-existing awareness of the character, business acumen, and general business and financial circumstances of the
Company or its Managers or a preexisting business or personal relationship with the Company or its principals and has the requisite
knowledge to assess the relative merits and risks of this investment or is aware of the risks and other considerations involved,
or by reason of the business or financial experience or relationships of Investor, Investor could be reasonably assumed capable
of evaluating the merits and risks of this investment and of protecting his or her own interests in connection with Investor’s
purchase of the Membership Units.

 

(J)
Investor is acquiring the Membership Units for long-term investment, for Investor’s own personal account, not as a nominee
or agent, and not with a view to offer for sale or resale of, or to sell, transfer, assign, pledge, hypothecate, fractionalize,
distribute or otherwise dispose (collectively, “Dispose” or, as the context requires, “Disposition”),
the Percentage Interests.

 

(K)
Investor has no contract, understanding, agreement or arrangement with any Person to Dispose of the Membership Units and Investor
is not presently engaged, nor does he or she plan to engage in the presently foreseeable future, in discussions with any Person
relative to any Disposition of the Membership Units.

 

(L)
Investor has adequate net worth and means for providing for his or her current needs and personal contingencies to sustain a complete
loss of his or her investment in the Percentage Interest and has no need for liquidity of his or her investment in the Membership
Units.

 

(M)
Investor’s overall commitment to investments which are not readily marketable is not disproportionate to his or her net
worth and his or her acquisition of the Membership Units will not cause such overall commitment to investments which are not readily
marketable is not disproportionate to his or her net worth and his or her acquisition of the Membership Units will not cause such
overall commitment to become excessive.

 

    	 	17	 

     

    

 

(N)
Investor realizes that the Membership Units cannot be readily sold as there will be no public market for them, that he or she
may not be able to Dispose of the Membership Units and, therefore, that the Membership Units must not be purchased unless Investor
has liquid assets sufficient to assure that such purchase will cause no undue financial difficulties.

 

(O)
Investor understands that the ability to transfer the Membership Units will be further restricted as set forth in this Agreement.

 

(P)
All information which Investor has provided to the Company concerning Investor’s financial position and knowledge of financial
business matters is accurate and complete as of the date hereof.

 

(Q)
Investor has been urged to consult his or her separate counsel in connection with the purchase of the Membership Units and if
Investor chooses not to consult with counsel, he or she is competent to understand and interpret this Agreement, and Investor
has not relied upon any statements, advice or opinions of counsel for the Company who prepared this Agreement.

 

§11.3
Evidence of Ownership. Evidence of a Member’s ownership of Membership Units shall be the schedule of Members attached
to this Agreement as Exhibit A. The Company shall maintain a current and complete record of Exhibit A among the books and records
of the Company.

 

Any
certificate representing Membership Units shall be endorsed and affixed with the following legends:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES
ACT OF 1933, 15 U.S.C. § 15b ET SEQ., AS AMENDED (THE “FEDERAL ACT”), OR REGISTERED WITH OR QUALIFIED
UNDER THE SECURITIES LAWS OF ANY STATE (THE “STATE ACTS”), IN RELIANCE UPON ONE OR MORE EXEMPTIONS FROM THE
REGISTRATION REQUIREMENTS OF THE FEDERAL ACT AND THE STATE ACTS. NO SALE OR OTHER TRANSFER OF THESE SECURITIES OR ANY INTEREST
THEREIN TO, OR RECEIPT OF ANY CONSIDERATION THEREFOR, MAY BE MADE IF THE PROPOSED SALE OR OTHER TRANSFER OF THESE SECURITIES AFFECTS
THE AVAILABILITY TO THE COMPANY OF SUCH EXEMPTIONS FROM REGISTRATION AND QUALIFICATION, AND ANY SUCH PROPOSED SALE OR OTHER TRANSFER
MUST BE IN COMPLIANCE WITH ALL APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THEREFORE, MEMBERS MAY NOT BE ABLE TO LIQUIDATE THEIR
INVESTMENTS AND THESE SECURITIES MAY NOT BE READILY ACCEPTED AS COLLATERAL FOR A LOAN.

 

THE
MEMBERSHIP UNITS REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THAT CERTAIN OPERATING AGREEMENT OF THE COMPANY, DATED AS OF MARCH
9, 2017, BY AND AMONG THE COMPANY AND THE HOLDER OF THIS CERTIFICATE, AND THE RESTRICTIONS ON TRANSFER AND OTHER AGREEMENTS SET
FORTH THEREIN.

 

[Signature
page follows]

 

    	 	18	 

     

    

 

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

 

COMPANY:

 

TCA
CRESENT CONSTRUCTION COMPANY, LLC

 

	 	 
	Name:
    	 	Alyce
    Schreiber	 
	Title:
    	 	Manager	 

 

MEMBERS:

 

TCA
GLOBAL CREDIT MASTER FUND, LP 

 

	By:
    	 	TCA
    Global Credit Master Fund GP, Ltd.	 
	Its:
    	 	General
    Partner	 

 

	By:
    	 	 	 
	Name:
    	 	Robert
    Press	 
	Title:
    	 	Director	 

 

INTELLIGENT
HIGHWAY SOLUTIONS, INC.

 

	 	 
	Name:
    	 	Philip
    Kirkland	 
	Title:
    	 	Secretary
    and Treasurer	 

 

    	 	19	 

     

    

 

EXHIBIT
“A”

 

MEMBERSHIP
UNITS OF

TCA
CRESENT CONSTRUCTION COMPANY, LLC

 

 

	 

         

        CLASS
        A MEMBERS

         
	INITIAL

        CAPITAL

        CONTRIBUTION
	MEMBERSHIP
    UNITS	 

        PERCENTAGE

        INTEREST

	 

        TCA
        GLOBAL CREDIT MASTER FUND, LP
	 

        $10.00
	 

        1,000

        Class A Units

         
	 

        1%

	 

        CLASS
        B MEMBERS

         
	 	 	 
	 

        TCA
        GLOBAL CREDIT MASTER FUND, LP
	 

        $190.00
	 

        19,000

        Class B Units

         
	 

        19%

	 

        INTELLIGENT
        HIGHWAY SOLUTIONS, INC.
	 

        $800.00
	 

        80,000

        Class B Units

         
	 

        80%

	 

        Total

         
	 

        $1,000.00
	 	 

        100%

 

    	 	20	 

     

    

 

EXHIBIT
“B”

 

NOTES

 

Promissory
Note issued by the Company and Intelligent Highway Solutions, Inc., as joint and several Co-Borrowers, in favor of TCA GLOBAL
CREDIT MASTER FUND LP in the principal amount of One Million Five Hundred Thousand United States Dollars (US$1,500,000).

 

    	 	21CALL
OPTION AGREEMENT

 

This
CALL OPTION AGREEMENT (this “Agreement”), is entered into as of March 9, 2017, by and between INTELLIGENT HIGHWAY
SOLUTIONS, INC., a corporation incorporated under the laws of the State of Nevada and located at 9516 Rossport way Elk Grove,
California 95624 (“IHSI”) and TCA GLOBAL CREDIT MASTER FUND LP, a limited partnership organized and existing
under the laws of the Cayman Islands and located at 3960 Howard Hughes Parkway, Suite 500, Las Vegas, NV 89169 (“TCA”,
and together with IHSI, the “Parties” and each a “Party”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Parties have entered into that certain Senior Secured Revolving Credit Facility Agreement, dated as of February 28, 2017 and
made effective as of March 9, 2017 by and among IHSI, TCA, Cresent Construction Company, Inc., a corporation incorporated under
the laws of the State of North Carolina, TCA Cresent Construction Company, LLC, a limited liability company organized and existing
under the laws of the State of Florida (the “Company”) and certain other Credit Parties (as defined therein)
(the “Credit Agreement”);

 

WHEREAS,
TCA owns one thousand (1,000) Class A Membership Units of the Company (the “Class A Units”) and nineteen thousand
(19,000) Class B Membership Units of the Company (the “Class B Units” and together with the Class A Units,
the “Membership Units”) (representing twenty percent (20%) of the Membership Units of the Company;

 

WHEREAS,
in connection with the Credit Agreement, TCA desires, subject to the terms and conditions contained herein, to grant to IHSI the
right to purchase Membership Units of the Company from TCA (the “IHSI Call Option”), and IHSI wishes to accept
the IHSI Call Option;

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual promises, covenants and agreements of the Parties hereto, and for
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto hereby
agree as follows.

 

ARTICLE
I

DEFINITIONS

 

Section
1.1. Definitions. Capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings
assigned to them in the Credit Agreement.

 

“Agreement”
has the meaning set forth in the preamble to this Agreement.

 

“Business
Day” means a day on which banks are open for business in the City of New York, United States of America.

 

“Charter
Documents” of any Person means any by-laws, charter, memorandum, certificate of incorporation, articles of association,
or other similar document of such Person.

 

    	 	 	 

     

    

 

“Class
A Units” has the meaning set forth in the preamble to this Agreement.

 

“Class
B Units” has the meaning set forth in the preamble to this Agreement.

 

“Company”
has the meaning set forth in the preamble to this Agreement.

 

“Credit
Agreement” has the meaning set forth in the preamble to this Agreement.

 

“Equity
Interests” means (a) the Membership Units; (b) any capital stock, share, partnership or membership interest, unit of
participation or other similar interest (however designated) in the Company and (b) any irrevocable capital contribution, option,
warrant, purchase right, conversion right, exchange rights or other contractual obligation which would entitle any Person to acquire
any such interest in the Company or otherwise entitle any Person to share in the equity, profit, earnings, losses or gains of
the Company (including stock appreciation, phantom stock, profit participation or other similar rights).

 

“Exercise
Price” means the payment in an amount equal to Ten and No/100 United States Dollars ($10.00).

 

“IHSI”
has the meaning set forth in the preamble to this Agreement.

 

“IHSI
Call Option” has the meaning set forth in the recitals to this Agreement.

 

“Lien”
means any mortgage, pledge, hypothecation, charge, assignment, deposit arrangement, encumbrance, security interest, lien, fiduciary
assignment and any security or similar agreement of any kind or nature whatsoever.

 

“Membership
Interests” means the membership interests of the Company, and it includes any and all voting and economic rights relating
thereto, and any rights to declared or undeclared distributions, rights to reserves, capital contributions, paid-in surplus, and
any other Equity Interests in the Company.

 

“Membership
Units” has the meaning set forth in the recitals to this Agreement.

 

“Person”
means and includes any natural person, individual, partnership, joint venture, corporation, trust, limited liability company,
limited company, joint stock company, unincorporated organization, government entity or any political subdivision or agency thereof,
or any other entity.

 

“Proceeding”
means any action, suit, charge, hearing, claim or legal, administrative, arbitration or other alternative dispute resolution proceeding
or investigation.

 

“Party(ies)”
has the meaning set forth in the preamble to this Agreement.

 

“TCA”
has the meaning set forth in the preamble to this Agreement.

 

“US$”
means the lawful currency of the United States of America.

 

    	2

     

    

 

Section
1.2. General Interpretive Principles. Whenever used in this Agreement, except as otherwise expressly provided or unless
the context otherwise requires, any noun or pronoun shall be deemed to include the plural as well as the singular and to cover
all genders. Unless otherwise specified, words such as “herein”, “hereof”, “hereby”, “hereunder”
and words of similar import refer to this Agreement as a whole and not to any particular Section or subsection of this Agreement,
and references herein to “Articles” or “Sections” refer to Articles or Sections of this Agreement. The
headings in this Agreement are intended solely for convenience of reference and shall be given no effect in the construction or
interpretation of this Agreement.

 

ARTICLE
II

GRANTING
OF THE CALL OPTIONS 

 

Section
2.1. IHSI Call Option. Upon the terms and subject to the conditions set forth in this Agreement, TCA hereby grants IHSI
an irrevocable right to purchase the Membership Interests from TCA at the Exercise Price, provided, however, such
right shall not be available until such time as all Obligations in connection with the Credit Agreement, the Revolving Note, the
Fee Note and any other Loan Document executed in connection therewith are completely and fully satisfied.

 

Section
2.2. IHSI Exercise. IHSI shall be permitted to exercise the IHSI Call Option to purchase the Membership Interests owned
by TCA, equal to twenty percent (20%) of the Membership Interests of the Company upon the full satisfaction and payment to TCA
of the Exercise Price.

 

Section
2.3. IHSI Exercise Process. IHSI shall exercise the IHSI Call Option by delivering a written notice to TCA setting forth
IHSI’s irrevocable election to exercise the IHSI Call Option (the “Exercise Notice”). The sale of the
Membership Interests pursuant to Section 2.2 shall close at a time and place reasonably acceptable to IHSI and TCA within ten
(10) Business Days after TCA’s receipt of the Exercise Notice. At such closing, IHSI shall pay the Exercise Price to TCA
in immediately available funds, upon which payment TCA shall deliver evidence showing that ownership of the Membership Interests
has been registered in the name of IHSI, free and clear from any Lien, in the records of the Company.

 

Section
2.4.  TCA Call Option. IHSI hereby grants TCA an irrevocable right to purchase the Membership Interests owned by IHSI,
equal to eighty percent (80%) of the Membership Interests of the Company (the “TCA Call Option”) at the Exercise
Price, upon an Event of Default under Section IV of this Agreement.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF IHSI

 

IHSI
hereby represents and warrants to TCA as follows:

 

Section
3.1. Legal Capacity. IHSI has full legal capacity to enter into this Agreement and consummate the transactions described
herein, if any.

 

    	3

     

    

 

Section
3.2. Authorizations. IHSI has full power and authority to execute and deliver this Agreement, to perform his obligations
hereunder and to consummate the transactions contemplated herein. The execution, delivery and performance of this Agreement has
been duly authorized by all requisite action. This Agreement constitutes, legal, valid and binding obligations of IHSI, enforceable
against IHSI in accordance with its terms.

 

(b)       All
consents, waivers, approvals, authorizations, exemptions, registrations, filings, licenses or declarations required to be made
or obtained by IHSI in connection with (i) the execution, delivery or enforceability of this Agreement or (ii) the consummation
of any of the transactions described herein, have been duly made or obtained by IHSI.

 

Section
5.3. No Conflicts, etc. (a) Neither the execution and delivery by IHSI of this Agreement, nor the performance by IHSI
of its obligations hereunder, nor the consummation of the transactions contemplated herein, will conflict with or violate any
provision of any agreement to which IHSI is a party.

 

(b)       There
is no Proceeding pending or, to the knowledge of IHSI, threatened against IHSI (i) which questions the validity of, or the obligations
of IHSI under this Agreement, or (ii) which seeks to impede, enjoin or invalidate the transactions contemplated herein, in whole
or in part.

 

ARTICLE
IV

EVENTS
OF DEFAULT 

 

If
IHSI or the Credit Parties shall have defaulted or failed to comply with the due observance or performance of any material term,
covenant or agreement contained this Agreement, the Credit Agreement, the Revolving Note, the Fee Note or any other Loan Documents,
or IHSI or the Credit Parties shall have defaulted in any material obligation to TCA or the Company, or any affiliate thereof,
and such failure to comply shall continue uncured beyond the applicable cure period (provided that if no specific cure period
is provided, the cure period shall be ten (10) days after notice of such default is delivered by TCA to IHSI), (i) the IHSI Call
Option shall immediately terminate; (ii) TCA may, without any further notice and without any presentment, demand or protest of
any kind, all of which are hereby expressly waived by IHSI, take any further action available at law or in equity, including,
without limitation, sell the Membership Interests to any Person; and (iii) TCA shall be entitled to exercise the TCA Call Option
upon payment to IHSI of the Exercise Price, as set forth in Section 2.4 of this Agreement.

 

ARTICLE
V

MISCELLANEOUS

 

Section
5.1. Notices. Any notice, request or other communication to be given or made under this Agreement to the Parties shall
be in writing. Such notice, request or other communication shall be deemed to have been duly given or made when it shall be delivered
by hand, international courier (confirmed by facsimile), or facsimile (with a hard copy delivered within two (2) business days)
to the Party to which it is required or permitted to be given or made at such Party’s address specified below or at such
other address as such Party shall have designated by notice to the Party given or making such notice, request or other communication,
it being understood that the failure to deliver a copy of any notice, request or other communication to a Party to whom copies
are to be sent shall not affect the validity of any such notice, request or other communication or constitute a breach of this
Agreement.

 

    	4

     

    

 

	If
    to IHSI:	Intelligent
    Highway Solutions, Inc.
	 	9516
    Rossport Way
	 	Elk
    Grove, California 95624
	 	Attn:
    Philip Kirkland
	 	E-Mail:
    Philip@hwysolutions.com
	 	 
	If
    to TCA:	TCA
    Global Credit Master Fund, LP 
	 	3960
    Howard Hughes Parkway, Suite 500
	 	Las
    Vegas, NV 89169
	 	Attn:
    Mr. Robert Press
	 	E-Mail:
    bpress@tcaglobalfund.com
	 	 
	With
    a copy to:	Lucosky
    Brookman LLP
	(which
    shall not constitute notice)	101
    Wood Avenue South, 5th Floor 
	 	Woodbridge,
    NJ 08830
	 	Attn:
    Seth A. Brookman, Esq. 
	 	E-Mail:
    sbrookman@lucbro.com

 

Section
5.2. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original,
but all of which together shall constitute a single instrument.

 

Section
5.3. Entire Agreement. This Agreement sets forth the entire understanding and agreement between the Parties as to the
matters covered herein and supersedes and replaces any prior understanding, agreement or statement of intent, in each case, written
or oral, of any and every nature with respect thereto.

 

Section
5.4. Severability. In the event that any provision of this Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby as long
as the remaining provisions do not fundamentally alter the relations among the Parties hereto.

 

Section
5.5. No Set-Off. All obligations hereunder shall be satisfied in full without set-off, defense or counterclaim.

 

Section
5.6. Applicable Law; Venue. Except in the case of the Mandatory Forum Selection Clause, which clause shall be governed
and interpreted in accordance with Florida law, this Agreement shall be delivered and accepted in and shall be deemed to be contracts
made under and governed by the internal laws of the State of Nevada, and for all purposes shall be construed in accordance with
the laws of such State, without giving effect to the choice of law provisions of such State.

 

    	5

     

    

 

Section
5.7 MANDATORY FORUM SELECTION. (a) THE PARTIES IRREVOCABLY AGREE THAT ANY DISPUTE ARISING UNDER, RELATING TO, OR IN
CONNECTION WITH, DIRECTLY OR INDIRECTLY, THIS AGREEMENT OR RELATED TO ANY MATTER WHICH IS THE SUBJECT OF OR INCIDENTAL TO THIS
AGREEMENT (WHETHER OR NOT SUCH CLAIM IS BASED UPON BREACH OF CONTRACT OR TORT) SHALL BE SUBJECT TO THE EXCLUSIVE JURISDICTION
AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN BROWARD COUNTY, FLORIDA OR CLARK COUNTY, NEVADA, AS DETERMINED BY TCA
IN ITS SOLE AND ABSOLUTE DISCRETION. THIS PROVISION IS INTENDED TO BE A “MANDATORY” FORUM SELECTION CLAUSE AND GOVERNED
BY AND INTERPRETED CONSISTENT WITH FLORIDA LAW. IHSI HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION AND VENUE OF ANY STATE OR FEDERAL
COURT HAVING ITS SITUS IN SAID COUNTY, AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS. IHSI HEREBY WAIVES PERSONAL SERVICE
OF ANY AND ALL PROCESS AND CONSENT THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED
TO THE COMPANY AND GUARANTORS AS SET FORTH HEREIN IN THE MANNER PROVIDED BY APPLICABLE STATUTE, LAW, RULE OF COURT OR OTHERWISE.

 

(b)       EACH
PARTY HEREBY WAIVES ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

(c)       To
the extent that any Party may be entitled in any jurisdiction to claim for itself or its assets immunity in respect of its obligations
under this Agreement from any suit, execution, attachment (whether in aid of execution, before judgment or otherwise) or other
legal process or to the extent that in any jurisdiction there may be attributed to itself or its assets such immunity (whether
or not claimed), or to the extent it might have the right to have a jury trial, such Party hereby irrevocably waives and agrees
not to, as the case may be, claim or exercise, such immunity and right to jury trial to the fullest extent permitted by the laws
of such jurisdiction.

 

Section
5.8. No Third Party Rights; Assignment. This Agreement is intended to be solely for the benefit of the Parties hereto
and is not intended to confer any benefits upon, or create any rights in favor of, any other Person. All rights and obligations
hereunder and under any agreements and documents executed and delivered in connection herewith shall not be assignable without
the prior written consent of the other Party.

 

Section
5.9. Waivers and Amendments. No modification of or amendment to this Agreement shall be valid unless evidenced in writing
signed by the Parties hereto referring specifically to this Agreement and stating the Parties’ intention to modify or amend
the same. Any waiver of any term or condition of this Agreement must be in writing signed by the Party sought to be charged with
such waiver and referring specifically to the term or condition to be waived. No such waiver shall be deemed to constitute the
waiver of any other breach of the same or of any other term or condition of this Agreement.

 

    	6

     

    

 

Section
5.10. Headings. The headings in this Agreement are for purposes of reference only and shall not be considered in construing
this Agreement.

 

Section
5.11. Specific Performance. The Parties hereto agree that the obligations imposed on them in this Agreement are special,
unique and of an extraordinary character, and that, in the event of breach by any Party, damages would not be an adequate remedy
and each of the other Parties shall be entitled to specific performance and injunctive and other equitable relief in addition
to any other remedy to which it may be entitled, at law or in equity; and the Parties hereto further agree to waive any requirement
for the securing or posting of any bond in connection with the obtaining of any such injunctive or other equitable relief.

 

Section
5.12. Further Assurances. Without limiting the generality of the foregoing, each Party to this Agreement agrees to take
all necessary actions to ensure that the provisions of this Agreement are implemented. At the reasonable request of any other
Party hereto and without further consideration, each Party hereto shall execute and deliver such additional documents and take
all such further action as may be necessary or appropriate to consummate and make effective, in the most expeditious manner practicable,
the transactions contemplated by this Agreement.

 

Section
5.13. Confidentiality. Except as may be required by applicable law or as otherwise agreed among the Parties hereto, neither
Party shall at any time divulge, disclose, disseminate, announce or release any information to any Person concerning this Agreement,
without first obtaining the prior written consent of the other Parties hereto, except that the foregoing restriction shall not
apply to any such information that (i) is or hereafter becomes generally available to the public other than by reason of any default
with respect to a confidentiality obligation under this Agreement; (ii) was already known to the recipient as evidenced by prior
written documents in its possession; (iii) is disclosed to the recipient by a third party who is not in default of any confidentiality
obligation to the disclosing Party hereunder; (iv) is developed by or on behalf of the receiving Person, without reliance on confidential
information received hereunder; (v) is otherwise required to be disclosed in compliance with applicable laws or regulations or
order by a court or other regulatory body having competent jurisdiction, or (vi) is disclosed to any professional advisor of the
recipient in connection with the performance of its duties.

 

[signature
page follows]

 

    	7

     

    

 

IN
WITNESS WHEREOF, the Parties, acting through their duly authorized representatives, have caused this Agreement to be signed in
their respective names as of the date first above written.

 

INTELLIGENT
HIGHWAY SOLUTIONS, INC.

 

	By:
    	 	 	 
	Name:
    	 	Philip
    Kirkland	 
	Title:
    	 	Secretary
    and Treasurer	 

 

TCA
GLOBAL CREDIT MASTER FUND, LP

 

	By:	 	TCA
    Global Credit Master Fund GP, Ltd.	 
	Its:	 	General
    Partner	 

 

	By:	 	 	 
	Name:	 	Robert
    Press	 
	Title:	 	Managing
    Director	 

 

[signature
page to Call Option Agreement]

 

    	8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}]]