Document:

ex10-2.htm

Exhibit 10.2

 

CHANGE IN CONTROL SEVERANCE AGREEMENT

 

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT ("Agreement") is made and entered into as of the 18th day of November, 2015 (the "Effective Date"), by and among Bear State Bank ("Bank"), a national bank and a wholly-owned subsidiary of Bear State Financial, Inc., a bank holding company ("Company"), and Matt Machen (the "Executive").

 

WITNESSETH:

 

WHEREAS, the parties acknowledge that the Executive is an at-will employee of the Company and is currently serving as the Sr. Executive Vice President & Chief Financial Officer of the Company;

 

WHEREAS, the Company desires to assure continuity of its management, to enable the Executive to devote his full attention to his responsibilities and, when faced with a possible change in control, to help the President and Chief Executive Officer of the Company and the Company's Board of Directors ("Board") assess options and advise as to the best interest of the Company and its shareholders without being influenced by the uncertainties of his own situation; and

 

WHEREAS, to that end, the Company desires to assure the Executive that he will receive certain benefits in the case of his termination as a result of a change in control of the Company.

 

NOW, THEREFORE, in consideration of the premises and of the mutual promises and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive agree as follows:

 

1.     Term. Subject to the terms and conditions of this Agreement, the initial term of this Agreement shall begin on the Effective Date and shall continue through December 31, 2018; provided, however, that beginning on January 1, 2019, and on the first day of each year thereafter, the term of this Agreement shall automatically be extended by one year, unless either the Company, based on action taken by its Chief Executive Officer, or the Executive shall have provided notice to the other at least one hundred eighty (180) days before such date that the term shall not be extended. (the "Term"). If a Change in Control (as defined below) does not occur during the Term of this Agreement, no payments or other benefits will be paid or payable to the Executive under this Agreement.

 

2.     Certain Definitions. For purposes of this Agreement, the following words and phrases shall have the following meanings:

 

(a)     "Cause" means any of the following:

 

(i)     the Executive's act or failure to act constituting willful misconduct or gross negligence, personal dishonesty, or breach of fiduciary duty involving personal profit;

 

 

 

 

  

(ii)     the Executive's willful and material failure to perform the duties of his employment (except in the case of a Termination of Employment for Good Reason or on account of the Executive's physical or mental inability to perform such duties) and the failure to correct such failure within ten (10) business days after receiving notice from the Company's Chief Executive Officer specifying such failure in detail;

 

(iii)     the Executive's willful and material violation of the Employer's code of ethics or written harassment policies;

 

(iv)     the requirement or direction of a federal or state regulatory agency having jurisdiction over the Employer that the Executive's employment be terminated;

 

(v)     the Executive's arrest, indictment, or conviction for (i) a felony or (ii) a lesser criminal offense involving dishonesty, breach of trust, or moral turpitude, or the Executive’s willful violation of any law, rule or regulation (other than traffic violations and similar offenses);

 

(vi)     the Executive's material breach of a material term, condition, or covenant of this Agreement and the failure to correct such violation within ten (10) business days after receipt of written notice from the Company's Chief Executive Officer specifying such breach in detail; or

 

(vii)     the Executive’s incompetence.

 

For purposes of this definition, no act or failure to act shall be considered "willful," if the Executive acted or failed to act either (i) in good faith or (ii) with a reasonable belief that his act or failure to act was not opposed to the Employer's best interests.

 

(b)     "Change in Control" means the first occurrence of any of the following events:

 

(i)     consummation of a merger, reorganization, or consolidation of the Company, as a result of which persons who were shareholders of the Company immediately prior to such merger, reorganization, or consolidation do not, immediately thereafter, own, directly or indirectly and in substantially the same proportions as their ownership of the stock of the Company immediately prior to the merger, reorganization, or consolidation, more than fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors of (i) the merged, reorganized, or consolidated company or (ii) an entity that, directly or indirectly, owns more than fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors of the company described in clause (i); 

 

 

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(ii)     a sale, transfer, or other disposition of all or substantially all of the assets of the Company, which is consummated and immediately following which the persons who were shareholders of the Company immediately prior to such sale, transfer, or disposition, do not own, directly or indirectly and in substantially the same proportions as their ownership of the stock of the Company immediately prior to the sale, transfer, or disposition, more than fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors of (i) the entity or entities to which such assets are sold or transferred or (ii) an entity that, directly or indirectly, owns more than fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors of the entities described in clause (i); or

 

(iii)     the sale, transfer or disposition of, or the granting of an irrevocable proxy to an unaffiliated third party with regard to, more than fifty percent (50%) of the shares of voting stock of the Bank.

 

Notwithstanding the preceding provisions, an event described above shall not be considered a Change in Control unless such even is a change in the effective control of the corporation or in the ownership of a substantial portion of the assets of the corporation with respect to the Executive for purposes of Code Section 409A(a)(2)(A)(v).

 

(c)     "Code" shall mean the Internal Revenue Code of 1986, as amended.

 

(d)     "Confidential Information" means the following:

 

(i)     materials, records, documents, data, statistics, studies, plans, writings, and information (whether in handwritten, printed, digital, or electronic form) relating to the Employer's Business (as defined below) that are not generally known or available to the Employer's Business, trade, or industry or to individuals who work therein other than through a breach of this Agreement, or

 

(ii)     trade secrets of the Employer (as defined under applicable law).

 

Confidential Information includes, but is not limited to: (i) information about the Employer's employees; (ii) information about the Employer's compensation policies, structure, and implementation; (iii) hardware, software, and computer programs and technology used by the Employer; (iv) Customer and Prospective Customer identities, lists, and databases, including private information related to customer history, loan activity, account balances, and financial information; (v) strategic, operating, and marketing plans; (vi) lists and databases and other information related to the Employer's vendors; (vii) policies, procedures, practices, and plans related to pricing of products and services; and (viii) information related to the Employer's acquisition and divestiture strategy. Information or documents that are generally available or accessible to the public shall be deemed Confidential Information, if the information is retrieved, gathered, assembled, or maintained by the Employer in a manner not available to the public or for a purpose beneficial to the Employer.

 

 

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(e)     "Customer" means a person or entity who is a customer of the Employer at the time of the Executive's Termination of Employment. 

 

(f)     "Disability" means that the Executive is disabled within the meaning of the long-term disability policy of the Employer. The Executive's Termination of Employment on account of Disability shall not affect his eligibility for benefits under any disability policy or program of the Employer.

 

(g)     "Employer" means the Bank, the Company, and any other employer that is treated as a single employer with the Bank or the Company pursuant to Code Section 414(b), (c), or (m).

 

(h)     "Employer's Business" means, collectively, the products and services provided by the Employer determined at the point of reference herein but in no event determined later than the Termination of Employment.

 

(i)     "Good Reason" means any of the following without the express written consent of the Executive:

 

(i)     a material reduction in the Executive's duties, responsibilities, or status with the Bank;

 

(ii)     a material diminution in the Executive's authority, duties or responsibilities or a change in his position such that he ceases to hold the title of, or serve in the role as, Sr. Executive Vice President & Chief Financial Officer      of the Company or any successor;

 

(iii)     a material reduction in the Executive's base salary; 

 

(iv)     a change in the primary location at which the Executive is required to perform the duties of his employment to a location that is more than fifty (50) miles from the location at which his office is located on the date of the Change in Control; or

 

(v)     the Bank's material breach of this Agreement.

 

If an event of Good Reason occurs during the Term, the Executive may, at any time within the ninety (90) day period following such event, provide the Bank with a notice of termination specifying the event of Good Reason and notifying the Bank of his intention to initiate a Termination of Employment if the Bank fails to correct the event of Good Reason within thirty (30) days following receipt of the Executive's notice of termination. If the Bank fails to correct the event of Good Reason within such thirty (30) day period, then the Executive may deliver a notice of Termination of Employment for Good Reason at any time within the sixty (60) days following the expiration of such cure period.

 

(j)     "Prospective Customer" means a person or entity who was the direct target of sales or marketing activity by the Executive. 

 

 

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(k)     "Termination of Employment" means the Executive's separation from service within the meaning of Code Section 409A(a)(2)(A)(i). For the avoidance of doubt, the failure to renew the Term of this Agreement pursuant to Section 1 hereof shall not constitute Termination of Employment.

 

3.     Change in Control Severance Benefit. Subject to the Executive's satisfaction of all of the conditions set forth in Section 4 below, if, within twelve (12) months following the closing date of a Change in Control which occurs during the Term, the Company initiates the Executive's Termination of Employment (for reasons other than a termination for Cause, Disability or death) or the Executive initiates a Termination of Employment for Good Reason, the Company shall (a) pay the Executive, in a single lump-sum cash payment, an amount equal to two (2) times the Executive's then current annualized base salary, but in no event less than annualized base salary on the Effective Date, subject to reduction for all applicable income, employment and related taxes and other required deductions (the "Severance Payment"), and (b) notwithstanding any provision in this Agreement (or any underlying equity award agreement) to the contrary, any time-based service condition contained in any equity awards by the Company outstanding in favor of the Executive shall be deemed to have been satisfied immediately prior to such Termination of Employment (the "Vesting Benefit"). The Company shall pay the Severance Payment to the Executive and provide the Vesting Benefit as soon as administratively feasible after the Executive's Termination of Employment and following the date on which the Executive's Release (defined below) becomes effective (but only if such Release becomes effective within sixty (60) days following the date of such termination of employment); provided, that, the Severance Payment required under this Section 3 shall be made in the second calendar year if such 60-day period begins in one calendar year and ends in the subsequent calendar year. If the Executive does not timely sign the Release such that it does not become effective within the 60-day period following the Executive's Termination of Employment with the Company, then the Severance Payment shall be forfeited and the Vesting Benefit shall be disregarded (with no accelerated vesting). Notwithstanding the preceding provisions, the obligation of the Company to make the Severance Payment and provide Vesting Benefit to the Executive hereunder is subject to compliance with any applicable provisions of the Federal Deposit Insurance Corporation regulations found in Part 359 (entitled "Golden Parachute And Indemnification Payments") of Title 12 of the Code of Federal Regulations (or any successor provisions).

 

4.     Conditions of Payment. The obligation of the Company to pay the Executive the Severance Payment and provide the Vesting Benefit is subject to the satisfaction of the following condition: the Executive shall execute and not revoke a general release of claims in form and substance reasonably satisfactory to the Company (the "Release").

 

5.     No Guarantee of Employment. This Agreement shall not confer the right of the Executive to be employed by the Company indefinitely or for a specific period of time, it being understood that this Agreement does not affect the existing and future terms of the Executive's employment with the Company. 

 

6.     Confidentiality; Non-solicitation and Non-competition Provisions.

 

(a)     Confidentiality. 

 

 

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(i)     The Executive acknowledges and agrees that (i) by virtue of his employment, he will be given access to, and will help analyze, formulate or otherwise use, Confidential Information, (ii) the Employer has devoted (and will devote) substantial time, money, and effort to develop Confidential Information and maintain the proprietary and confidential nature thereof, and (iii) Confidential Information is proprietary and confidential and, if any Confidential Information were disclosed or became known by persons engaging in a business in any way competitive with the Employer's Business, such disclosure would result in hardship, loss, irreparable injury, and damage to the Employer, the measurement of which would be difficult, if not impossible, to determine. Accordingly, the Executive agrees that the preservation and protection of Confidential Information is an essential part of his duties of employment and that, as a result of his employment with the Employer, he has a duty of fidelity, loyalty, and trust to the Employer in safeguarding Confidential Information. The Executive further agrees that he will use his best efforts, exercise utmost diligence, and take all steps necessary to protect and safeguard Confidential Information, whether such information derives from the Executive, other employees of the Employer, Customers, Prospective Customers, or vendors or suppliers of the Employer, and that he will not, directly or indirectly, use, disclose, distribute, or disseminate to any other person or entity or otherwise employ Confidential Information, either for his own benefit or for the benefit of another, except as required in the ordinary course of his employment by the Bank, except to the extent that the communication of such Confidential Information is required pursuant to a compulsory proceeding in which the Executive's failure to provide such information would subject the Executive to criminal or civil sanctions. Nothing in this Agreement prohibits the Executive from reporting possible violations of federal law or regulations to any governmental agency or entity, including but not limited to, the Department of Justice, the Securities and Exchange Commission, Congress, and/or any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. The Executive is not required to obtain the Bank's prior authorization to make any such report or disclosure or to notify the Bank that such report or disclosure has been made. Subject to the preceding, the Executive shall follow all Bank policies and procedures to protect all Confidential Information and shall take any additional precautions necessary under the circumstances to preserve and protect against the prohibited use or disclosure of any Confidential Information.

 

(ii)     The confidentiality obligations contained in this Agreement shall continue as long as Confidential Information remains confidential (except that the obligations shall continue, if Confidential Information loses its confidential nature through improper use or disclosure, including but not limited to any breach of this Agreement) and shall survive the termination of this Agreement and/or the Executive's Termination of Employment.

 

(iii)     From time to time, the Employer may, for its own benefit, choose to place certain Confidential Information in the public domain. The fact that Confidential Information may be made available to the public in a limited form and under limited circumstances does not change the confidential and proprietary nature of such information, and does not release the Executive from his obligations with respect to such Confidential Information.

 

 

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(b)     Non-competition; Non-solicitation.

 

(i)     Provided that the Employer timely pays to Executive the amounts due under Section 3 hereof, the Executive agrees that for a period of twelve (12) months following the Executive's Termination of Employment, the Executive shall not, except as may be required to perform his duties under this Agreement, (A) solicit in any manner any Customer for any product or service of the type offered by the Employer’s Business, (B) seek to obtain the business of any Prospective Customer for any product or service of the type offered by the Employer’s Business, (C) request any Customer to terminate, reduce, or limit, its business with the Employer, or (D) directly solicit the employment of any employee of the Employer. 

 

(ii)     Provided that the Employer timely pays to Executive the amounts due under Section 3 hereof, for a period of twelve (12) months following the Executive's Termination of Employment, the Executive shall not actively and on a full time basis, engage in the same business as the Employer's Business in the same or similar capacity as the Executive worked for the Bank; provided, however, that this Subsection shall not restrict the Executive from acquiring, as a passive investment, less than five percent (5%) of the outstanding securities of any class of an entity that are listed on a national securities exchange or actively traded in the over-the-counter market. The restrictions on the activities of the Executive contained in Subsection 6(b) shall be limited to the geographic area within a fifty (50) mile radius of the Employer’s corporate headquarters address. 

 

(c)     Ownership of Documents/Return of Property

 

(i)     Any and all documents, records, and copies thereof, including but not limited to hard copies or copies stored digitally or electronically, pertaining to or including Confidential Information (collectively, "Employer Documents") that are made or received by the Executive during his employment shall be deemed to be property of the Employer. The Executive shall use Employer Documents and information contained therein only in the course of his employment for the Bank and for no other purpose. The Executive shall not use or disclose any Employer Documents to anyone except as authorized in the course of his employment and in furtherance of the Employer's Business.

 

(ii)     Upon Termination of Employment, the Executive shall immediately deliver to the Bank (with or without request) all Employer Documents and all other Employer property in the Executive's possession or under his custody or control.

 

 

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(d)     Remedies. The Executive agrees that the Company will suffer irreparable damage and injury and will not have an adequate remedy at law if the Executive breaches any provision of the covenants contained in this Section 6 (the "Restrictive Covenants"). Accordingly, if the Executive breaches or threatens or attempts to breach the Restrictive Covenants, in addition to all other available remedies, the Company shall be entitled to seek injunctive relief and no or minimal bond or other security shall be required in connection therewith. The Restrictive Covenants are essential terms and conditions to the Company entering into this Agreement, and they shall be construed as independent of any other provision in this Agreement or of any other agreement between the Executive and the Company. The existence of any claim or cause of action that the Executive has against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the Company's enforcement of the Restrictive Covenants.

 

(e)     Periods of Noncompliance and Reasonableness of Periods. The Restrictive Covenants shall be deemed not to run during all periods of noncompliance, the intention of the parties being to have such restrictions and covenants apply for the full periods specified in this Section 6 following the Termination of Employment with the Company for any reason. The Company and the Executive acknowledge and agree that the Restrictive Covenants are reasonable in view of the nature of the Employer's Business and the Executive's advantageous knowledge of and familiarity with the Employer's Business, operations, affairs, and customers.

 

(f)     Survival; Reformation. The provisions of this Section 6 shall survive the termination or expiration of this Agreement and the Executive's employment with the Company and shall be fully enforceable thereafter. If it shall be finally determined that any restriction in this Section 6 is excessive in duration or scope or is unreasonable or unenforceable under the laws of any state or jurisdiction, it is the intention of the parties that such restriction may be modified or amended to render it enforceable to the maximum extent permitted by the law of that state or jurisdiction.

 

7.     Termination. This Agreement shall automatically and immediately terminate without notice and no amounts or benefits shall be payable hereunder on the earlier of (i) the effective date of the Executive's Termination of Employment with the Company if the Executive's employment with the Company is terminated for any reason prior to any Change in Control, or (ii) the expiration of the Term of this Agreement. 

 

8.     Successors. 

 

(a)     All provisions of this Agreement shall inure to the benefit of and be binding upon the parties hereto, their heirs, personal representatives, successors and assigns. 

 

(b)     If the Executive should die while any amounts are payable to him hereunder, this Agreement shall inure to his administrators, heirs, distributes, devisees and legatees, and all amounts payable hereunder shall then be paid in accordance with the terms of this Agreement to the Executive's devisee, legatee or other designee or, if there be no such designee, to his estate. 

 

 

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9.     Miscellaneous. 

 

(a)     This Agreement shall be governed by and construed in accordance with the laws of Arkansas, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified other than by a written agreement executed by the parties hereto or their respective successors and legal representatives. 

 

(b)     All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

If to the Executive:

15 Foxhunt Trail

Little Rock, AR 72227

 

If to the Company:

900 S. Shackleford, Ste 401

Little Rock, AR 72211

 

or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 

 

(c)     The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

 

(d)     This Agreement may be executed in one or more counterparts, each of which shall be deemed an original.

 

10.     Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter herein and specifically supersedes any existing severance benefits under any plans, program, policy or agreements to which the Executive may be entitled, as well as any change in control, stay bonus, severance or similar agreements previously entered into by, or for the benefit of, the Executive and by the Company (whether oral or written), its predecessors or their affiliates. The Executive hereby acknowledges that he has received sufficient consideration for substitution of this Agreement for any prior such agreement.

 

 

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11.     Adjustment for Excess Parachute Payments. 

 

(a)     Notwithstanding any provision of this Agreement to the contrary, if any amount or benefit to be paid or provided under this Agreement or otherwise payable to the Executive by the Employer would be an "Excess Parachute Payment," within the meaning of Section 280G of the Code, but for the application of this sentence, then the payments and benefits to be paid or provided under this Agreement will be reduced to the minimum extent necessary (but in no event to less than zero) so that no portion of any such payment or benefit, as so reduced, constitutes an Excess Parachute Payment; provided, however, that the foregoing reduction will be made only if and to the extent that such reduction would result in an increase in the aggregate payment and benefits to be provided to Executive, determined on an after-tax basis (taking into account the excise tax imposed pursuant to Section 4999 of the Code, any tax imposed by any comparable provision of state law, and any applicable federal, state and local income and employment taxes). Whether requested by the Executive or the Employer, the determination of whether any reduction in such payments or benefits to be provided under this Agreement or otherwise is required pursuant to the preceding sentence will be made at the expense of the Employer by the Employer's independent accountants. In the event the payments to the Executive are required to be reduced pursuant to this Subsection, the portions of the payments that would be paid latest in time will be reduced first and if multiple portions of the payments to be reduced are paid at the same time, any noncash payments will be reduced before any cash payments, and any remaining cash payments will be reduced pro rata. If requested by the Executive, the Employer’s independent accountants shall take into account in determining whether any reduction in payments or benefits is required a reasonable compensation analysis of the value of services provided or to be provided by Executive, including Executive’s agreeing to refrain from performing services pursuant to a covenant not to compete or similar covenant applicable to Executive.

 

(b)     As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Employer’s independent accountants, it is possible that amounts will have been paid or distributed by the Employer to or for the benefit of the Executive pursuant to this Plan which should not have been so paid or distributed (“Overpayment”).  It is also possible that additional amounts that should be paid or distributed by the Employer to or for the benefit of the Executive pursuant to this Plan will have not been paid or distributed by the Employer (“Underpayment”).  In the event that the Employer’s independent accountants, based upon the assertion of a deficiency by the Internal Revenue Service against either the Employer or the Executive which the Employer’s independent accountants believe has a high probability of success, determine that an Overpayment has been made, any such Overpayment paid or distributed by the Employer to or for the benefit of the Executive shall be treated for all purposes as a loan to the Executive which the Executive shall repay to the Employer together with reasonable interest.  Provided, however, that no loan shall be deemed to have been made and no amount shall be payable by the Executive to the Employer if and to the extent such deemed loan and payment would not either reduce the amount on which the Executive is subject to tax under Section 1 and Section 4999 of the Code, generate a refund of such taxes or violate any applicable law.  In the event that the Employer’s independent accountants, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Employer to or for the benefit of the Executive together with reasonable interest.

 

 

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12.     Claw-back of Compensation. The Executive agrees to repay any compensation previously paid or otherwise made available to the Executive under this Agreement or otherwise that is subject to recovery under any applicable law (including any rule of any exchange or service through which the securities of the Company are then traded), including, but not limited to, the following circumstances:

 

(a)     where the Company or the Employer is required to prepare an accounting restatement due to the Company’s material noncompliance as a result of misconduct, with any financial reporting requirement under securities law (a “required accounting restatement”), provided that the Executive’s repayment obligation shall be limited to any bonus or other incentive-based or equity-based compensation received during the 12-month period following the filing of the document that was the subject of the required accounting restatement;

 

(b)     where the Executive has committed, is substantially responsible for, or has violated, the respective acts, omissions, conditions, or offenses outlined under 12 C.F.R. Section 359.4(a)(4); and/or

 

(c)     if the Bank becomes, and for so long as the Bank remains, subject to the provisions of 12 U.S.C. Section 18310(f), where such compensation exceeds the restrictions imposed on the senior executive officers of such an institution.

 

The Executive agrees to return promptly any such compensation properly identified by the Employer by written notice provided pursuant to this section.

 

13.     Section 409A of the Code. The Company intends that, unless otherwise exempt, all amounts to be paid to the Executive hereunder will be provided or paid in compliance with all applicable provisions of Code Section 409A and the regulations issued thereunder, and the rulings, notices and other guidance issued by the Internal Revenue Service interpreting the same, and this Agreement shall be construed and administered in accordance with such intent. All payments to be made upon a Termination of Employment under this Agreement may only be made upon a "separation from service" under Code Section 409A. Any payments hereunder that qualify for the "short-term deferral" or "involuntary separation pay" exception or another exception under Code Section 409A shall be paid under the applicable exception. Notwithstanding the foregoing or anything to the contrary contained in any other provision of this Agreement, if the Executive is a "specified employee" at the time of his "separation from service" within the meaning of section 409A of the Code, then the Severance Payment shall not be made until the first business day after (i) the expiration of six (6) months from the date of the Executive's separation from service, or (ii) if earlier, the date of the Executive's death (the "Delayed Payment Date"). On the Delayed Payment Date, there shall be paid to the Executive or, if deceased, to the Executive's devisee, legatee or other designee or, if there be no such designee, his estate, in a single lump sum cash payment, an amount equal to aggregate amount of the Severance Payment delayed pursuant to the preceding sentence.

 

(signature page follows)

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date. 

 

 

	
 
	
 
	
BEAR STATE FINANCIAL, INC.
	
 

	 	 	 	 
	 	 	 	 
	
/s/ Matt Machen
	
 
	
By:
	
/s/ Mark McFatridge
	
 

	
 
	
 
	
 
	
 
	
 

	
Matt Machen
	
 
	
Mark McFatridge
	
 

	 	 	 	 	 
	 	 	 	 	 
	November 17, 2015	 	 	November 17, 2015	 
	Date	 	 	Date	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	BEAR STATE BANK.	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	By: 	/s/ Mark McFatridge	 
	 	 	 	 	 
	 	 	Mark McFatridge	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	November 17, 2015	 
	 	 	 	DateAMENDED
AND RESTATED

 

OPERATING
AGREEMENT

 

OF

 

CON
TV, LLC

 

THE
INTERESTS IN THIS COMPANY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS
OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THAT ACT AND THE APPLICABLE STATE
SECURITIES LAWS, OR THE COMPANY WILL HAVE RECEIVED AN OPINION OF COUNSEL (WHICH COUNSEL AND OPINION WILL BE SATISFACTORY TO THE
COMPANY’S COUNSEL) THAT REGISTRATION OF SUCH SECURITIES UNDER THAT ACT AND UNDER THE APPLICABLE STATE SECURITIES LAWS IS
NOT REQUIRED.

 

THE
INTERESTS IN THIS COMPANY ARE SUBJECT TO THE RESTRICTIONS AND PROVISIONS OF THIS OPERATING AGREEMENT AND MAY ONLY BE DISPOSED
OF OR ENCUMBERED IN COMPLIANCE HEREWITH.

 

    	 

    	 	 	 

    

 

AMENDED
AND RESTATED

 

OPERATING
AGREEMENT

 

OF

 

CON
TV, LLC

 

This
Amended and Restated Operating Agreement (“Agreement”) is dated as of July 1, 2015 (the “Effective
Date”), and is among Con TV, LLC, a Delaware limited liability company (the “Company”);
and the entities executing this Agreement as “Members” (as set forth on Schedule A attached hereto).

 

On
June 26, 2014, the Company was formed by the filing of Certificate of Formation with the Delaware Secretary of State under the
Delaware Limited Liability Company Act (the “Act”).

 

On
August 27, 2014, the Members (defined below) entered into the Operating Agreement of the Company, which the Members now wish to
amend and restate as set forth herein.

 

The
Members hereby adopt this Agreement as the “operating agreement” of the Company under the Act to set forth the rules,
regulations and provisions regarding the management and business of the Company, the governance of the Company, the conduct of
its business, and the rights and privileges of its Members.

 

In
consideration of the premises and the mutual agreements contained herein, the parties hereto agree as follows:

 

ARTICLE
1

BUSINESS PURPOSES AND OFFICES

 

1.1
Business Purpose. The business purpose of the Company will be to fund, design, create, launch, and operate a digital
network, worldwide in scope, which will distribute digital, on-demand entertainment via the internet and other consumer digital
distribution platforms and media (e.g., gaming consoles, set-top boxes, handsets, and tablets) (“Network”),
all in accordance with this Agreement, as well as the development of an e-commerce retail solution and the creation of original
content for the Network. The Company will be an association among the Members only for such specifically authorized business purpose
and will not be deemed to create any association among the Members with respect to any other activities whatsoever other than
the activities within such business purpose described herein. The Company will not engage in any other business without the unanimous
written consent of its Class A Members.

 

1.2
Principal Office. The principal business office of the Company will be located at Cinedigm’s corporate headquarters,
currently, 1901 Ave. of the Stars, 12th Floor, or at such other place(s) as the Board (defined below) may determine
from time to time.

 

1.3
Registered Office and Resident Agent. The location of the registered office and the name of the resident agent of
the Company in the State of Delaware will be as stated in the Certificate (defined below), or as will be determined from time
to time by the Board and appropriately filed with the Delaware Secretary of State as required by the Act.

 

    	 

    	 	 	 

    

 

1.4
Formation. Fernando Cortez was an “authorized person” within the meaning of the Act and for purposes
of executing, delivering and filing the Certificate with the Delaware Secretary of State. Upon execution of this Agreement,
each Member will be and continue as an “authorized person” within the meaning of the Act. Each Member was admitted
to the Company as a member at the time of filing of the Certificate, and the Certificate is hereby ratified by the Members upon
execution of this Agreement.

 

ARTICLE
2

DEFINITIONS

 

2.1
Terms Defined Herein. Certain terms used in this Agreement are defined in the Tax Exhibit (defined below) or elsewhere
in this Agreement. As used herein, the following terms will have the following meanings, unless the context otherwise specifies:

 

“2015
Recapitalization” means the recapitalization of the Company accompanying the increased capital commitment of Cinedigm,
the adjustment to Percentage Interests of the Members set forth in this amended and restated Agreement as of the Effective Date,
and the adjustment to the manner in which both Available Cash and Liquidation Proceeds shall be distributed following the Effective
Date.

 

“Act”
means the Delaware Limited Liability Company Act, as amended or replaced from time to time.

 

“Adjusted
Capital Contribution” means with respect to a Class A Member or Class C Member, the total amount of Capital Contributions
of such Class A Member or Class C Member, minus the total amount of Distributions to such Class A Member or Class C Member under
Section 4.1(b)(2) (including by virtue of Section 4.2(c) below).

 

“Affiliate”
means any Person that directly or indirectly controls, is controlled by, or is under common control with, the Person in question
and any partner, member, shareholder, manager, officer or director of the Person in question or Person performing a similar function
for the Person in question. 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 Operating Agreement of the Company, as amended from time to time.

 

“Allocations”
means any allocations among the Members and Assignees of Income, Loss, Credits or items thereof (as such terms are defined in
the Tax Exhibit).

 

“Appraised
Value” means the fair market value of the Units held by Wizard World on the last day of the month ended prior to
the exercise of the Put Right, as determined through the following process: (i) if the Company and Wizard World cannot mutually
agree, negotiating in good faith, on the Appraised Value within the 30 day period following Wizard World’s exercise of the
Put Right, then (ii) the valuation will be made by a valuation consultant or an investment banker of recognized standing selected
by the Company and Wizard World or, if they cannot agree on a valuation consultant or an investment banker within 5 days after
the last day of the 30 day negotiating period, each of the Company and Wizard World will select a valuation consultant or an investment
banker of recognized standing, and the two valuation consultants will jointly designate a third valuation consultant or an investment
banker of recognized standing, whose valuation will be determinative of the Appraised Value. The cost of the valuation will be
divided equally between the Company and Wizard World.

 

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“Assignee”
means a Person to whom all or part of a Member’s Interest or Economic Rights has been Transferred, but who has not been
admitted as a Substitute Member with respect to such Transferred Interest or Economic Rights.

 

“Available
Cash” means the aggregate amount of cash on hand or in bank, money market or similar accounts of the Company at
any given time derived from any source (other than Capital Contributions and Liquidation Proceeds) which the Board determines
is available for distribution to the Members in accordance with the Act and any applicable loan covenants after all current debt
service obligations of the Company are satisfied, after any Required Distributions and after taking into account any amount required
or appropriate to maintain a reasonable amount of Reserves.

 

“Bankruptcy”
means, with respect to any Person, the entry of an order for relief against such Person under the United States Bankruptcy Code,
the insolvency of such Person under any state insolvency act or any other event of “bankruptcy” with respect to such
Person as described in the Act.

 

“Board”
has the meaning set forth in Section 6.1.

 

“Bristol”
means Bristol Capital, LLC, a Delaware limited liability company, a Member.

 

“Business”
means the business to be conducted by the Company in accordance with this Agreement.

 

“Capital
Account” means the separate bookkeeping account established and maintained for each Member by the Company as authorized
by Section 3.5.

 

“Capital
Contribution,” with respect to a Member, means the total amount of cash and the net Fair Value of property contributed
by such Member (or his predecessor in interest) to the capital of the Company.

 

“Cinedigm”
means Cinedigm Entertainment Corp., a Member.

 

“Certificate”
means the Certificate of Formation of the Company filed with the Delaware Secretary of State, as amended from time to time.

 

“Class
A Members” means those Persons executing this Agreement as Class A Members of the Company, or otherwise becoming
bound by this Agreement as Class A Members of the Company as provided in this Agreement, including any Substitute Members, in
each such Person’s capacity as a Class A Member of the Company by virtue of holding Class A Units. The Class A Members are
set forth on Schedule A attached hereto which shall be updated from time to time by the Board to reflect the then current
Class A Members of the Company.

 

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“Class
A Units” means the Class A voting membership units of the Company. The number of Class A Units owned by each Class
A Member is set forth on Schedule A hereto, which shall be updated from time to time by the Board to reflect the number of Class
A Units then owned by each Class A Member.

 

“Class
B Members” means those Persons executing this Agreement as Class B Members of the Company, or otherwise becoming
bound by this Agreement as Class B Members of the Company as provided in this Agreement, including any Substitute Members, in
each such Person’s capacity as a Class B Member of the Company by virtue of holding Class B Units. The Class B Members are
set forth on Schedule A attached hereto which shall be updated from time to time by the Board to reflect the then current
Class A Members of the Company. Class B Members shall have no right to vote in meetings of Members or in connection with other
actions of Members or to grant approvals or give consents. The number of Class B Units owned by each Class B Member is set forth
on Schedule A hereto, which shall be updated from time to time by the Board to reflect the number of Class B Units then
owned by each Class B Member.

 

“Class
B Units” means the Class B non-voting, profits interest membership units of the Company. The number of Class B Units
owned by each Class B Member is set forth on Schedule A hereto, which shall be updated from time to time by the Board to
reflect the number of Class B Units then owned by each Class B Member.

 

“Class
C Members” means those Persons executing this Agreement as Class C Members of the Company, or otherwise becoming
bound by this Agreement as Class C Members of the Company as provided in this Agreement, including any Substitute Members, in
each such Person’s capacity as a Class C Member of the Company by virtue of holding Class C Units. The Class C Members are
set forth on Schedule A attached hereto which shall be updated from time to time by the Board to reflect the then current
Class C Members of the Company.

 

“Class
C Units” means the Class C voting membership units of the Company. The number of Class C Units owned by each Class
C Member is set forth on Schedule A hereto, which shall be updated from time to time by the Board to reflect the number
of Class C Units then owned by each Class C Member.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, or corresponding provisions of future laws.

 

“Company”
means Con TV, LLC, a Delaware limited liability company.

 

“Distributions”
means any distributions by the Company to the Members and Assignees of Available Cash, Required Distributions or Liquidation Proceeds.

 

“Economic
Rights” has the meaning set forth in Section 9.3.

 

“Exclusivity
Term” has the meaning set forth in Section 6.6 (a).

 

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“Fair
Value” of an asset or property means its fair market value.

 

“Gross
Asset Value” means, with respect to property, the property’s adjusted basis for federal income tax purposes,
except that:

 

(a)
the initial Gross Asset Value of contributed property other than cash shall be the gross Fair Value of such property, as agreed
by the Members as evidenced in this Agreement;

 

(b)
the Gross Asset Values of all property shall be adjusted to equal its respective Fair Values as of the times of any Revaluation;

 

(c)
the Gross Asset Value of any property distributed to any Member shall be adjusted to equal the gross Fair Value of such property
on the date of distribution as determined by the distributee and the Board; provided, however, if the distributee is a related
party with respect to the Board, the agreement as to value shall require the consent of the remaining Members (excluding the distributee);
and

 

(d)
the Gross Asset Value of property shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such property
pursuant to Code Section 734(b) or Section 743(b), but only to the extent that such adjustments are taken into account in determining
Capital Accounts pursuant to Treasury Regulation § 1.704-1(b)(2)(iv)(m).

 

“Initial
Capital Contributions” has the meaning set forth in Section 3.1.

 

“Interest”
refers to all of a Member’s rights and interests in, and obligations to, the Company in its capacity as a Member, all as
provided in the Certificate, this Agreement and the Act as represented by Units. “Interest” does not include a Member’s
rights as a lender to or creditor of the Company, as an independent contractor of the Company, or in any other similar capacity.
For purposes of the Uniform Transfer on Death Security Registration Act or any similar applicable legislation and for purposes
of granting and perfecting a security interest, an Interest in the Company will be and is a “security” as defined
in and governed by Article 8 of the Uniform Commercial Code.

 

“Involuntary
Transfer” means, with respect to an Interest and despite the Transfer restrictions set forth in this Agreement,
that the Interest (or a portion thereof) has been Transferred (i) by operation of law (such as, without limitation, Transferred
to a Member’s trustee in Bankruptcy or Transferred to a guardian or conservator of an incompetent person or Transferred
by court order, but not including Transfer upon death), (ii) pursuant to a dissolution of marriage or legal separation or (iii)
under levy of attachment or charging order or upon foreclosure of a pledge or security interest.

 

“Majority
in Interest” means any Class A Members and Class C Members holding an aggregate of more than 50% of the Class A
Units and Class C Units held by all Class A Members and Class C Members. Whenever this Agreement provides that a Majority in Interest
is to be determined by excluding a Class A Member(s) or Class C Member(s) or is to be determined out of only certain Class A Members
or Class C Members, then a Majority in Interest means any non-excluded Class A Members or non-excluded Class C Members holding
an aggregate of more than 50% of the Class A Units and Class C Units held by all of the non-excluded Class A Members and non-excluded
Class C Members. Class B Units shall not be taken into account in calculating a Majority in Interest.

 

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“Members”
means those Persons executing this Agreement as members of the Company, or otherwise becoming bound by this Agreement as members
of the Company as provided in this Agreement, including any Substitute Members, in each such Person’s capacity as a member
of the Company. The Members are set forth on Schedule A attached hereto. Schedule A will be updated from time to
time by the Board to reflect the then current Members of the Company.

 

“Network”
means has the meaning set forth in Section 1.1.

 

“Opportunity
Notice” has the meaning set forth in Section 6.6 (c).

 

“Percentage
Interest,” means, with respect to each Member, at any given time, a fraction (expressed as a percentage carried
to the second decimal place) the numerator of which is the number of Units owned by such Member at such time, and the denominator
of which is the total number of Units owned by all Members at such time. The Percentage Interests of the Members are set forth
on Schedule A attached hereto. The Percentage Interests will be subject to adjustment from time to time as provided by
this Agreement. Schedule A attached hereto will be updated from time to time by the Board to reflect the then current Percentage
Interests of each Member.

 

“Person”
means any natural person, partnership, limited liability company, corporation, association, cooperative, trust, estate, custodian,
nominee or other individual or entity in its own or representative capacity.

 

“Pre-Recapitalization
Contributions” means, with respect to a Class A Member, the Capital Contributions made by such Class A Member prior
to the 2015 Recapitalization.

 

“Prime
Rate” means the annual rate of interest reported from time to time in The Wall Street Journal under the column
“Money Rates” (or any successor column) as being the “Prime Rate”.

 

“Property”
means all properties and assets that the Company may own or otherwise have an interest in (to the extent of such interest) from
time to time.

 

“Required
Distribution” means, with respect to each taxable year of the Company, an amount equal to the net income of the
Company for Federal income tax purposes multiplied by the Maximum Combined Marginal Rate. The “Maximum Combined Marginal
Rate” means the percentage determined by adding the maximum marginal federal income tax rate and the maximum marginal state
income tax rate in the State of California for individuals filing joint returns.

 

“Reserves”
means amounts set aside from time to time by the Board as authorized by Section 4.8 of this Agreement.

 

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“Revaluation”
has the meaning set forth in the Tax Exhibit.

 

“ROAR”
means ROAR, LLC, a California limited liability company, a Member.

 

“Streaming”
has the meaning set forth in Section 6.6 (a).

 

“Substitute
Member” has the meaning set forth in Section 9.2 of this Agreement.

 

“Tax
Exhibit” means the additional definitions and provisions that are contained in Schedule B attached hereto.

 

“Transfer”
or “Transferred” means (i) when used as a verb, to give, sell, exchange, assign, transfer, pledge, hypothecate,
bequeath, devise or otherwise dispose of or encumber, and (ii) when used as a noun, the nouns corresponding to such verbs, in
either case voluntarily or involuntarily, by operation of law or otherwise, including, without limitation, upon Bankruptcy, death,
divorce, marriage dissolution or otherwise.

 

“Treasury
Regulations” means the regulations promulgated by the Treasury Department with respect to the Code, as such regulations
are amended from time to time, or corresponding provisions of future regulations.

 

“Units”
means the Class A Units, Class B Units and Class C Units.

 

“Withdraw”
or “Withdrawal” means any action taken by a Member which is intended by such Member to be in the nature
of a resignation, retirement, withdrawal, quitting or otherwise voluntarily ceasing to be a Member of the Company.

 

“Wizard
World” means Wizard World, Inc., a Member.

 

2.2
Other Definitional Provisions.

 

(a)
As used in this Agreement, accounting terms not defined in this Agreement, and accounting terms partly defined to the extent not
defined, will have the respective meanings given to them under generally accepted accounting principles.

 

(b)
The words “hereof,” “herein” and “hereunder” and
words of similar import when used in this Agreement will refer to this Agreement as a whole and not to any particular provision
of this Agreement, and section, subsection, schedule and exhibit references are to this Agreement unless otherwise specified.

 

(c)
Words of the masculine gender will be deemed to include the feminine or neuter genders, and vice versa, where applicable. Words
of the singular number will be deemed to include the plural number, and vice versa, where applicable.

 

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ARTICLE
3

CAPITAL CONTRIBUTIONS AND LOANS

 

3.1
Initial Capital Contributions. The Class A Members have made the Capital Contributions (cumulatively, the “Initial
Capital Contributions”) to the Company in cash as set forth on Schedule A and Wizard World has contributed
the trademark and URLs set forth on Schedule A as a non-cash capital contribution. The Members have been or are hereby
issued the Units (including any reduction in previously issued Units) set forth on Schedule A.

 

3.2
Capital Contributions for Units; Past Expense Allocations.

 

(a)
Cinedigm shall, from the Effective Date, be responsible as between Cinedigm and Wizard World for funding 100% of the operating
costs and the costs of acquiring and distributing original programming pursuant to budgets approved by the Board (the “On-Going
Costs”) either in cash or through allocated costs as additional Capital Contributions; provided, however,
that Wizard World shall only be obligated to fund On-Going Costs in the amount of $25,000 in cash on an on-going monthly basis
for a period of 12 months following the Effective Date and the On-Going Costs for which Wizard World is responsible shall in no
event exceed $300,000 in the aggregate, as an additional Capital Contribution. Cinedigm is hereby granted the Class C Units and
Wizard World’s Class A Units are reduced to the amounts as set forth on Schedule A. Wizard World’s funding
obligation set forth in the previous sentence shall cease at the end of the month of the first to occur of (x) the sale by Wizard
World of the all of the Units owned by Wizard World or (y) a public offering of securities of the Company. Capital Contributions
in respect of On-Going Costs shall not result in the granting of additional Units, unless approved by the Board.

 

(b)
Wizard World shall pre-pay $300,000 of On-Going Costs, representing its commitment pursuant to Section 3.2 (a), $150,000
of which shall be paid upon execution hereof and $150,000 of which shall be paid within 90 days of Wizard World’s execution
of this Agreement, which $300,000 amount shall not be adjusted in the event the total amount of the first 12 months’ of
On-Going Costs (or any monthly amount therein) shall be less than $25,000 per month; provided that in the event the Company
is dissolved within the first 12 months after the Effective Date pursuant to Section 10.1 (b), the Company shall repay the pro
rata share of such $300,000 actually paid by Wizard World, taking into account the number of days elapsed from the Effective
Date to the date of dissolution within the first 12 months. In addition, Wizard World shall pay the Company upon execution of
this Agreement $305,019.81, representing Wizard World’s unpaid share of Company expenses incurred prior to the Effective
Date.

 

3.3
Amended License Agreement and Amended Services Agreement. Wizard World has entered into an a License Agreement as
amended by an amended and restated agreement dated of even date herewith (a “License Agreement”) and
a Services Agreement, as amended by an amended and restated agreement dated of even date herewith ( a “Services Agreement”)
attached as Schedule C pursuant to which it agrees to license certain proprietary intellectual property to the Company
and to perform certain services on a free and/or at-cost basis for the Company. The Members agree that entering into such agreements
are material actions.

 

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3.4
Additional Capital Contributions. No Member will be required to make any additional Capital Contributions to the
Company beyond those set forth in this Article 3, except as approved by the Member in its sole discretion.

 

3.5
Capital Accounts. A separate Capital Account will be maintained for each Member in accordance with the Tax Exhibit.

 

3.6
Capital Withdrawal Rights, Interest and Priority. Except as otherwise expressly provided in this Agreement, (i)
no Member will be entitled to withdraw, receive any return of or reduce such Member’s Capital Contribution or Capital Account
or to receive any distributions from the Company, (ii) no Member will be entitled to demand or receive Property other than cash
in return for its Capital Contribution or as part of any Distribution, (iii) no Member will be entitled to receive or be credited
with any interest on any Capital Contribution or the balance in such Member’s Capital Account at any time, and (iv) no Member
will have any priority over any other Member as to the return of the Capital Contribution of such Member or the balance in such
Member’s Capital Account.

 

3.7
Loans and Guarantees From Members.

 

(a)
Any Member or Affiliate of a Member may make (but will not be obligated to make) a loan to the Company in such amounts, at such
times and on such terms as may be approved in good faith by the Board. Loans by any Member or Affiliate of a Member to the Company
will not be considered as contributions to the capital of the Company. The Company will repay all loans made by the Members and
their Affiliates to the Company before the distribution of any Available Cash to the Members under Section 4.1(b). If there
are two or more loans from the Members or their Affiliates to the Company at any time, such loans will be treated on a pari
passu basis and all loan payments made by the Company on such loans will be made proportionately.

 

(b)
No Member will be obligated to guarantee or cause any other Person to guarantee personally or provide any personal collateral
to secure the obligations of the Company.

 

(c)
A Member or an Affiliate of a Member who makes a loan to the Company will have no fiduciary or other duty to not declare a default
or event of default or to not initiate any collection, enforcement or foreclosure actions or proceedings by it as a lender upon
the occurrence of a default by the Company (even if such default by the Company could have been avoided or cured by an additional
Capital Contribution or loan by such Member or an Affiliate of the Member).

 

3.8
Profits Interest. The Class B Units of ROAR and Bristol were intended to be, and are, a “profits interest”
within the meaning of section 2.02 of Rev. Proc. 93-27 (as subsequently clarified by Rev. Proc. 2001-43), and any provision in
this Agreement to the contrary is hereby revised to the extent necessary to cause such Percentage Interest to be a profits interest
on the date of its issuance by the Company.

 

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3.9
No Personal Liability. Except as otherwise expressly provided in this Agreement, no Member will be personally liable
for the return of any Capital Contributions of, or loans made by, the Members or any portion thereof and the return of Capital
Contributions and repayment of loans will be made solely from the Company’s assets. Except as otherwise expressly provided
in this Agreement, the Members will not be personally liable for the payment or performance of the debts and other obligations
of the Company, except as and to the extent the Member expressly agrees to be personally bound.

 

3.10
No Liability for Restoration of Negative Capital Account. Notwithstanding anything in this Agreement to the contrary,
no Member will have an obligation to contribute additional capital to the Company to restore a negative Capital Account balance
to zero (unless and to the extent such negative Capital Account balance results from an inaccurate distribution made to or received
by a Member that results in another Member having a final positive Capital Account balance).

 

ARTICLE
4

ALLOCATIONS AND DISTRIBUTIONS

 

4.1
Non-Liquidation Cash Distributions. The amount, if any, of Available Cash shall be determined by the Board from
time to time and shall be distributed to the Members as follows:

 

(a)
First, to the Members in accordance with their respective allocation of Income pursuant to Section 4.4 in an aggregate
amount with respect to each taxable year of Company equal to the Required Distribution. Such annual distribution shall be made
within ninety (90) days after the end of the taxable year; then

 

(b)
Second, any remaining Available Cash after application of Section 4.1(a), if applicable, shall be distributed to the Members
at such times as determined by the Board in its sole discretion as follows:

 

(1)
To the Class A Members, pro rata in accordance with their relative Pre-Recapitalization Contributions, until each Class A Member
has received cumulative distributions under this Section 4.1(b)(1) equal to such Class A Member’s Pre-Recapitalization Contributions;
then

 

(2)
To the Class A and Class C Members until they have received cumulative distributions under this Section 4.1(b)(2) equal to all
Capital Contributions made by them after the 2015 Recapitalization; and then

 

(3)
To the Members in accordance with their respective Percentage Interests.

 

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4.2
Liquidation Distributions. Liquidation Proceeds will be distributed in the following order of priority:

 

(a)
To the payment of debts and liabilities of the Company (including to Members to the extent otherwise permitted by law) and the
expenses of liquidation; then

 

(b)
To the setting up of such reserves as the Person required or authorized by law to wind up the Company’s affairs may reasonably
deem necessary or appropriate for any disputed, contingent or unforeseen liabilities or obligations of the Company, provided that
any such reserves shall be paid over by such Person to an independent escrow agent, to be held by such agent or its successor
for such period as such Person shall deem advisable for the purpose of applying such reserves to the payment of such liabilities
or obligations and, at the expiration of such period, the balance of such reserves, if any, shall be distributed as hereinafter
provided; then

 

(c)
To the Class A Members, pro rata in accordance with their relative Pre-Recapitalization Contributions, until each Class A Member
has received cumulative distributions under Section 4.1(b)(1) and this Section 4.2(c) equal to such Class A Member’s Pre-Recapitalization
Contributions; then

 

(d)
To the Class A and Class C Members until they have received cumulative distributions under Section 4.1(b)(2) and this Section
4.2(d) equal to all Capital Contributions made by them after the 2015 Recapitalization; and then

 

(e)
To the Members in accordance with their respective Percentage Interests.

 

4.3
Profits, Losses and Distributive Shares of Tax Items. The Company’s net income or net loss, as the case may
be, for each taxable year of the Company, as determined in accordance with such method of accounting as may be adopted for the
Company in accordance with Article 8 hereof, will be allocated to the Members for both financial accounting and income
tax purposes as set forth in this Article 4, except as otherwise provided for herein or unless all Members agree otherwise.

 

4.4
Allocation of Income, Loss and Credits.

 

(a)
Except as otherwise provided in the Tax Exhibit, Income and Losses for any taxable year or other period shall be allocated among
the Members to the extent necessary to cause the Capital Account balance of each Member (as determined after reflection therein
of allocations for such period under the Tax Exhibit) to equal (i) the amount that would be distributable to such Member under
Section 4.2, if, on the last day of such taxable year, the Company sold all of its remaining assets for an amount equal
to their respective Gross Asset Values (limited with respect to each Nonrecourse Liability to the Gross Asset Value securing that
liability) and applied all remaining proceeds in accordance with Section 4.2 on the last day of such taxable year reduced
by (ii) such Member’s share of Company Minimum Gain and Member Minimum Gain immediately prior to the hypothetical sale.

 

(b)
Credits for any taxable year or other period shall be allocated among the Class A and Class C Members in accordance with their
respective Percentage Interests.

 

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4.5
Special Tax Rules. The special tax rules set forth in the Tax Exhibit will override any other provision of this
Article 4.

 

4.6
No Priority. Except as may be otherwise expressly provided in this Agreement, no Member will have priority over
any other Member as to Company income, gain, loss, credits and deductions or distributions.

 

4.7
Tax Withholding. Notwithstanding any other provision of this Agreement, the Board is authorized to take any action
that it determines to be necessary or appropriate to cause the Company to comply with any withholding, estimated tax or similar
requirements established under any federal, state or local tax law, including, without limitation, withholding on any distribution
to any Member and/or requiring that a Member pay to the Company any amount required by the Company to pay over to a governmental
authority as a withholding, estimated tax or similar payment on behalf of such Member. For all purposes of this Article 4,
any amount withheld on any distribution and paid over to the appropriate governmental body will be treated as if such amount had
in fact been distributed to the Member. Each Member agrees to execute such consents and elections as may be required by the taxing
authority of any state or local government in which the Company does business and generates taxable income so that the Company
will not be required to withhold on the taxable income of the Company allocated to such Member for such state or locality.

 

4.8
Reserves. The Board will have the right to establish, maintain and expend reasonable Reserves to provide for working
capital, for debt service, for expected operating deficits, for facility expansions or replacements, for future investments, for
original content production and acquisition, and for such other purposes as the Board may deem necessary or advisable.

 

ARTICLE
5

MEMBERS’ MEETINGS

 

5.1
Meetings of Members; Place of Meetings. If required by the Act, an annual meeting of the Members will be held on
the second Tuesday in February of each year or on such other date as the Class A Members and Class C Members may determine. Special
meetings may be called at any time by any Class C Member. Meetings (whether annual, regular or special meetings) of the Members
may be held for any purpose or purposes, unless otherwise prohibited by statute. All meetings of the Members will be held at such
place within the Los Angeles area as will be stated in the notice of the meeting or at any other location agreed upon by all of
the Members. The Members of the Company may participate in a meeting by means of conference telephone or similar communication
equipment whereby all of the Members participating in the meeting can hear each other, and participation in a meeting in this
manner will constitute presence in person at the meeting.

 

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5.2
Quorum; Voting Requirement. The presence, in person or by valid proxy, of the Class C Member will constitute a quorum
for the transaction of business by the Members. The affirmative vote of a Majority in Interest will constitute a valid decision
of the Members, except where a vote by a greater percentage is required by the Act, the Certificate or this Agreement. Whenever
the consent or approval of the Members is required in this Agreement for any transaction or act of the Company, such consent or
approval will be required by Class A Members and Class C Members holding the applicable aggregate Percentage Interests as stated
in this Agreement and there will be no requirement that the majority of the Members, by number, approve or consent to any transaction
or act.

 

5.3
Proxies. At any meeting of the Members, every Class A Member or Member having the right to vote will be entitled
to vote in person or by proxy appointed by an instrument in writing signed by such Class A Member or Class C Member and bearing
a date not more than one year before such meeting.

 

5.4
Notice. Written notice stating the place, day and hour of each meeting and, in the case of a special meeting, the
purpose for which the meeting is called will be delivered not less than ten days nor more than 60 days before the date of the
meeting, either personally, by mail or by electronic mail, by or at the direction of the person calling the meeting, to each Class
A Member and Class C Member entitled to vote at such meeting. Notice to Class A Members and Class C Members, (i) if mailed, will
be deemed delivered as to any Member when deposited in the United States mail, addressed to the Member at its usual place of business
or last known address, with postage prepaid and (ii) if sent by electronic mail, will be deemed delivered as to any Member when
sent to the electronic mail address last provided to the Company by such Member, with affirmative confirmation of receipt from
such Member. Class B Members shall receive courtesy copies of all notices sent to Class A Members and Class C Members.

 

5.5
Waiver of Notice. When any notice is required to be given to any Member, a waiver thereof in writing signed by the
Member, whether before, at, or after the time stated therein, or any attendance of the Member at the meeting (other than at the
beginning of the meeting to object to the holding of the meeting), will be equivalent to the giving of such notice.

 

5.6
Action Without Meeting. A meeting of the Members will not be required for the Class A Members and Class C Members
to make any decision or to take any action to be made or taken by the Class A Members and Class C Members. Any decision or action
required or permitted to be taken by the Class A Members and Class C Members may be taken without a meeting if the action is evidenced
by one or more written consents or documents constituting or describing the action to be taken, signed by a Class A Member and
Class C Members or Members having the requisite aggregate Percentage Interests. A copy of such written consent to action will
be given to each Member.

 

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ARTICLE
6

MANAGEMENT AND CONTROL

 

6.1
Board of Directors. The Company will be governed by a Board of Directors (the “Board”)
consisting of five (5) directors. The directors will be appointed in the following manner:

 

(a)
So long as it remains a Class A or Class C Member, Cinedigm will be entitled to appoint three (3) directors.

 

(b)
So long as it remains a Class A Member Wizard World will be entitled to appoint one (1) director.

 

(c)
The General Manager shall be a Board member (so long as she or he holds such officer position) in a non-voting capacity. The General
Manager shall be designated by the Board from time to time.

 

At
any time a vacancy is created on the Board by the death, removal or resignation of any director, the applicable Class A or Class
A and C Member entitled to appoint the former director, as provided above, will appoint a director to fill such vacancy. If a
Member is no longer entitled to appoint a director, the appointee of such Member will immediately resign, and if he or she fails
to do so, the remaining directors will have the right to, and will, vote to remove such director. A Class A or Class A and C Member
entitled to appoint a director will have the right to remove and replace such director from time to time.

 

Until
further action by the Class A and/or Class A and C Members, the Board will consist of the following five (5) individuals:

 

	Appointed
    by Cinedigm	 	Appointed
    by Wizard World	 	Appointed
    by the Board
	 	 	 	 	 
	Gary
    Loffredo	 	John
    Macaluso	 	General
    Manager
	Eric
    Opeka	 	 	 	 
	 	 	 	 	 
	Neil
    Davis	 	 	 	 

 

6.2
Board Meetings, Voting and Compensation.

 

(a)
The directors of each newly elected or appointed Board will meet at such time and place as will be consented to in writing by
all of the newly elected directors. Each director, upon his or her election or appointment, will qualify by accepting the office
of director, and his or her attendance at, or his or her written approval of the minutes of, any meeting of the newly elected
directors will constitute his or her acceptance of such office, or he may execute such acceptance by a separate writing.

 

(b)
Regular meetings of the Board may be held without notice at such times as will from time to time be fixed in advance by resolution
adopted by the Board. Any business may be transacted at a regular meeting. Special meetings of the Board may be called at any
time by the General Manager or any director. The place of each Board meeting will be in the Los Angeles area as designated in
the notice. Written or printed notice of each special meeting of the Board, stating the place, day and hour of the meeting and
the purpose or purposes thereof, will be sent (by email, express delivery or facsimile) to each director at least two days before
the day on which the meeting is to be held. The notice may be given by any officer having authority to call the meeting or by
any director.

 

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(c)
Unless otherwise restricted by this Agreement, any action required to be taken at a meeting of the Board or any other action which
may be taken at a meeting of the Board may be taken without a meeting if a consent in writing setting forth the action so taken
will be signed by all directors, and the consent in writing is filed with the minutes of the proceedings of the Board. Any such
consent signed by all the directors will have the same effect as a unanimous vote and may be stated as such in any document describing
the action taken by the Board.

 

(d)
Unless otherwise restricted by this Agreement, directors may participate in a meeting of such Board by means of conference telephone
or similar communications equipment, whereby all persons participating in the meeting can hear each other, and participation in
a meeting in such manner will constitute presence in person at such meeting.

 

(e)
Each director (except the General Manager, who shall be a non-voting member) will have one vote on all matters to be voted upon
by the Board. At all meetings of the Board, the attendance of a majority of designated Directors will, unless a greater number
as to any particular matter is required by this Agreement, constitute a quorum for the transaction of business, and the act of
a majority of the designated Directors present at any meeting at which there is a quorum, except as may be otherwise specifically
provided in this Agreement, will be the act of the Board. If a quorum is not present at any meeting of the Board, the directors
present may adjourn the meeting successively until a quorum is present, and no notice of adjournment will be required other than
announcement at the meeting.

 

6.3
Authority of the Board. In addition to the rights and authority given to the Board elsewhere in this Agreement,
but subject to the limitations set forth in Section 6.4, the Board will have the right, power and authority from time to
time to make such decisions and take such actions for and on behalf of the Company as the Board deems necessary or appropriate
to acquire, construct, equip, staff and operate the Business and, not in limitation of the foregoing, to make the following decisions
and direct the Company to take the following actions, all subject to any limitations set forth in this Agreement or in the Act:

 

(a)
Selection (including changes) of the Company’s legal, accounting and other professional advisors;

 

(b)
Selection of the General Manager of the Company;

 

(c)
Acquisition of insurance coverage for the protection or benefit of the Company or the Property;

 

(d)
Temporary investment of funds of the Company in short term investments where there is appropriate safety of principal;

 

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(e)
To approve and obtain loans, and secure such loan(s) with the assets of the Company in the ordinary course of business;

 

(f)
To cause the Company to: (1) bring or defend, pay, collect, compromise, arbitrate, resort to legal action or otherwise adjust
claims or demands of or against the Company; (2) make or revoke any election available to the Company under any tax law; (3) enforce
the Company’s rights and perform its obligations under all agreements to which the Company is a party; (4) carry out the
decisions of the Members made in accordance with this Agreement; (5) prepare, execute, and file any documents required to be filed
with any government authority; and (6) expend Company funds necessary or appropriate to effect any of the foregoing.

 

6.4
Limitations on Authority.

 

(a)
The Board may take an action or authorize the execution of an agreement, instrument or document for any transaction not “in
the ordinary course of business or affairs” in accordance with the power set forth in this Agreement, subject to the specific
limitations set forth in this Agreement.

 

(b)
The Company, through the Board, a Member, an officer, a Majority in Interest or otherwise, will not do any of the following without
the prior authorization of a unanimous act of the Class A Members:

 

(1)
Take any action required by any provision of this Agreement or by law to be approved or authorized by the Members.

 

(2)
Make any loans or advances to or investments in any Member.

 

(3)
Guarantee or assume any liability or obligation of any other Person, except in the ordinary course of business.

 

(4)
Cause the Company to file for Bankruptcy.

 

(5)
Cause or permit the Company to engage in any activity that is not consistent with the purposes of the Company as set forth herein.

 

(6)
Knowingly do any act in contravention of the terms of this Agreement.

 

(7)
Knowingly do any act which would make it impossible to carry on the ordinary business of the Company.

 

(8)
Use Company property, or assign rights in Company property, for other than a Company purpose.

 

(9)
Knowingly perform any act that would subject any Member or affiliate of a Member to personal liability in any jurisdiction.

 

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6.5
Other Business Ventures; Competition; Confidentiality.

 

(a)
Subject to the qualifications set forth in Section 6.5 (b), during their respective ownership of any Interest and for one
(1) year thereafter (the “Exclusivity Term”), each Class A Member and its Affiliates shall not, directly
or indirectly, own or operate, or act as a consultant, officer, director or employee to, any person or entity that is in competition
with the Company in the digital linear or on-demand streaming business, including on the internet or other consumer digital distribution
platforms and media (e.g., gaming consoles, set-top boxes, handsets, and tablets) (collectively, “Streaming Business”)
in the Comic-Con Sector, except for the ownership of up to 5% of a publicly traded company that owns a Streaming Business in the
Comic-Con Sector. “Comic-Con Sector” means the sector focusing on comic book, science fiction, fantasy,
horror, gaming and anime themes and characters, productions, conventions and other events. The Members agree and acknowledge that
Cinedigm has agreements with third parties to distribute content to the Comic Con Sector, including without limitation through
competing Streaming Businesses, and that the foregoing limitation does not apply to Cinedigm’s distribution or licensing
of content through any current or future third party Streaming Business. The Members further agree and acknowledge that nothing
in this Section 6.5 shall restrict Wizard World from facilitating or providing live-streaming of video game competitions
through other Streaming Businesses at Wizard World’s live conventions, or in the event the Company elects not to live-stream
one of Wizard World’s live conventions, Wizard World may provide live-streaming of such event on Wizard World’s Facebook
page.

 

(b)
Neither Bristol nor ROAR, nor their respective Affiliates, shall be Affiliates of either Class A Member for purposes of Section
6.5 (a). An acquirer of 50% or more of the voting securities of a Class A or Class C Member (or of substantially all of its
assets) shall not be deemed to be an Affiliate of such Class A or Class C Member for purposes of Section 6.5 (a), nor shall
such acquirer’s Affiliates (including both the Acquirer’s Affiliates at the time of the acquisition and Persons that
subsequently become Affiliates of such Acquirer) that were at no time officers or employee directors of the subject Class A Member
be deemed to be Affiliates of such Class A Member for purposes of Section 6.5 (a). No non-employee director (i.e., an “outside
director”) of a Class A or Class C Member shall be deemed to be an Affiliate for purposes of Section 6.5 (a). The
one-year post-ownership restriction set forth in the first sentence of Section 6.5 (a) shall not apply to officers and
directors of a Class A or Class C Member.

 

(c)
While neither Class A Member shall be required by Section 6.5 (a) to offer opportunities to the Company (as set forth in
Section 6.6), in the event a Class A or Class C Member desires to enter into an arrangement with a third party that would
otherwise violate Section 6.5 (a), such Class A or Class C Member will, by written notice delivered to the Company and
the other Class A Member (an “Opportunity Notice”), present such opportunity to the Company for the
Company’s consideration. The Company shall then consider in good faith whether such opportunity would be in the best interests
of the Company to pursue. At the end of such consideration, which much occur within 30 days of receipt of the Opportunity Notice,
the Company shall, in its sole discretion, by written notice delivered to both Class A Members, determine whether it elects to
accept the opportunity or forego the opportunity. If the Company elects to forego the opportunity, or is otherwise unable to reach
an agreement with respect to the opportunity within 60 days of receipt of the Opportunity Notice, the proposing party may pursue
the opportunity but only with the prior written consent of the non-proposing party, which consent may be withheld for any reason
or no reason. If the proposing party receives the prior written consent of the non-proposing party, thereafter engaging in such
opportunity shall not be a violation of this Section 6.5. The proposing Class A Member shall have no obligation to pursue
the opportunity after complying with this Section 6.5 (c), and may discontinue the pursuit of such opportunity should it
so choose, at any time.

 

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(d)
Each Member agrees that, while such Member is a Member of the Company and for a period of one year thereafter, such Member will
not, directly or indirectly, without the express written consent of all of the Members:

 

(1)
entice or induce or attempt to entice or induce or in any manner influence any person who is or will be in the employ or service
of the Company to leave such employ or service for the purpose of engaging in a business which may be a competitor of the Company,
in the geographic area in which the Company does business; or

 

(2)
entice or induce or attempt to entice or induce or in any manner influence any person who is or may become a supplier or customer
of the Company to terminate or not enter into such relationship with the Company.

 

(e)
All non-public and other confidential information regarding the Company and its Members will be treated with confidentiality by
the Company and the Members and not disclosed by the Company or the Members to third parties (other than as necessary in the ordinary
course of and to further the Business) and will not be used for any purpose other than the Business or the Member’s ownership
of its Interest, without the prior written consent of the Board; provided, however, the Company and the Members may disclose such
information to their respective attorneys, accountants and other professional advisors who have a need for such information provided
that such persons are informed of the confidential nature of the information and are directed to maintain the confidentiality
thereof. The confidentiality obligations of each Member will survive any termination of the membership of such Member in the Company.

 

(f)
Each Member acknowledges that such Member has carefully read and considered the provisions of this Section 6.5 and, having
done so, agrees that the restrictions set forth herein (including, but not limited to, the time periods and scope restrictions
herein) are fair and reasonable and are reasonably required for the protection of the interests of the Company.

 

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(g)
Each Member covenants and agrees that if such Member violates any of such Member’s covenants or agreements under this Section
6.5, the Company will be entitled to an accounting and repayment of all profits, compensation, commissions, remunerations
or benefits which such Member directly or indirectly has realized and/or may realize as a result of, growing out of or in connection
with any such violation. Such remedy will be in addition to, and not in limitation of, any injunctive relief or other rights or
remedies to which the Company is or may be entitled at law or in equity or under this Agreement.

 

(h)
If any of the provisions of this Section 6.5 are held to be invalid or unenforceable, the remaining provisions will nevertheless
continue to be valid and enforceable as though the invalid or unenforceable parts had not been included therein. If any provision
of this Section 6.5 relating to time period and/or scope of restriction is declared by a court of competent jurisdiction
to exceed the maximum time period or scope such court deems reasonable and enforceable, said time period and/or scope of restriction
will be deemed to become and thereafter be the maximum time period and/or scope which such court deems reasonable and enforceable.

 

6.6
Waiver of Fiduciary Duties; Corporate Opportunities. This Agreement is not intended to, and does not, create or
impose any fiduciary duty on any of the Members hereto or their respective Affiliates or designees on the Board (including without
limitation the General Manager if the General Manager is an employee of a Member). Further, each Member hereby to the fullest
extent permitted by law, waives any and all fiduciary duties that, absent such waiver, may be implied by law, and in doing so,
recognizes, acknowledges and agrees that the duties and obligations of the Members as Members to one another and to the Company
are only as expressly set forth in this Agreement. This provision expressly does not exculpate any Person from a breach of fiduciary
duty that may arise as a result of his status as an officer. Without any accountability to the Company or the other parties hereto
by virtue of this Agreement:

 

(a)
Each Member and its Affiliates, and their respective officers, directors, shareholders, partners, members, agents and employees
(collectively, each respectively a “Corporate Opportunities Group”), shall not in any way be prohibited or restricted
from engaging or investing in, independently or with others, any business opportunity of any type or description, except as set
forth in Section 6.5;

 

(b)
Neither the Company nor any Member nor its Corporate Opportunities Group shall have any right in or to such other business opportunities
of such other Member or its Affiliates’ Corporate Opportunities Group or to the income or proceeds derived therefrom;

 

(c)
Neither a Member nor its Corporate Opportunities Group shall be obligated to present any business opportunity to the Company or
the other Member or its Corporate Opportunities Group, even if the opportunity is of the character that, if presented to such
Person, could be taken by such Person; and

 

(d)
Each Member and its Corporate Opportunities Group shall have the right to hold any such business opportunity for its own account
or to recommend such opportunity to Persons other than the Company, or the other Members or any Person in another Member’s
Corporate Opportunities Group.

 

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6.7
Officers.

 

(a)
Required Officers. The officers of the Company will be elected or appointed from time to time by the Board and will include
a General Manager, who shall be the highest officer of the Company. The Board may also elect or appoint a Secretary, Treasurer
and/or one or more Vice Presidents, Assistant Secretaries and Assistant Treasurers. Any number of offices may be held by the same
person, unless this Agreement otherwise provides.

 

(b)
Election of Officers. The Board may elect, appoint and remove the officers from such positions from time to time.

 

(c)
Compensation of Officers and Employees. The salaries and compensation (if any) of all officers and employees will be fixed
by the Board.

 

(d)
Duties of General Manager. The General Manager will be the chief executive officer and chief operating officer of the Company
with all duties normally associated with such positions. Subject to the decisions of the Members, the General Manager will have
general management of the day to day operations of the Company and will cause all decisions of the Members to be carried into
effect.

 

(e)
Duties of Vice President. A Vice President will perform such duties and have such other powers as may be prescribed by
the Board or the President.

 

(f)
Duties of Secretary. The Secretary will attend all meetings of the Board and Members and record all the proceedings of
the meetings of the Board and Members. The Secretary will perform such other duties as may be prescribed by the Board or the President.

 

(g)
Duties of Treasurer. The Treasurer will keep full and accurate accounts of receipts and disbursements in books belonging
to the Company and will be responsible for preparing all financial statements. The Treasurer will perform such other duties as
may be prescribed by the Board or the President.

 

ARTICLE
7

LIABILITY AND INDEMNIFICATION

 

7.1
Limitation of Liability. To the extent permitted by law, an officer, member of the Board, or a Member and its officers,
directors, partners, trustees, members, managers, employees and agents (each a “Covered Person”) will
not be liable for damages or otherwise to the Company or any Member for any act, omission or error in judgment performed, omitted
or made by it or them in good faith and in a manner reasonably believed by it or them to be within the scope of authority granted
to it or them by this Agreement and in the best interests of the Company, provided that such act, omission or error in judgment
does not constitute bad faith, fraud, gross negligence, or willful misconduct or breach of fiduciary duty. A Covered Person
will be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports
or statements presented to the Company by any Person as to matters the Covered Person reasonably believes are within such other
Person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Company,
including information, opinions, reports or statements as to the value and amount of the assets, liabilities, Income, Losses or
Available Cash or any other facts pertinent to the existence and amount of assets from which distributions to Members might properly
be paid. To the extent permitted by law, a Covered Person shall have no fiduciary obligations or liability to the Company
or to any Members with respect to any decisions or actions that the Covered Person may make or take in any capacity with respect
to the Company.

 

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7.2
Indemnification. The Company will indemnify each Covered Person to the fullest extent permitted by the Act, but
such indemnity will not extend to any conduct by the party seeking indemnification that is determined by a court of competent
jurisdiction to constitute bad faith, fraud, gross negligence, or willful misconduct or breach of fiduciary duty. Any indemnity
under this Section 7.2 will be paid from, and only to the extent of, Company assets and no Member will have any personal
liability on account thereof.

 

7.3
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 relating to the Company will, from time to time, be advanced
by the Company before 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 is determined that the Covered Person is not entitled
to be indemnified as authorized in this Article 7.

 

7.4
No Application to Independent Contractor Status. This provision of this Article 7 will not apply to any services
or acts of a Member as an independent contractor of the Company.

 

ARTICLE
8

ACCOUNTING AND BANK ACCOUNTS

 

8.1
Fiscal Year and Accounting Method. The fiscal year and taxable year of the Company will be as designated by the
Board in accordance with the Code. The Board will determine the accounting method to be used by the Company.

 

8.2
Books and Records. The books and records of the Company will be maintained at the principal office of the Company.
Each Member (or such Member’s designated agent or representative) will have the right, during ordinary business hours and
upon reasonable advance written notice stating the purpose for which the information is sought, to inspect and copy (at such Member’s
own expense) the following books and records of the Company (other than those containing trade secrets or similar confidential
information) for any purpose reasonably related to the Member’s Interest:

 

(a)
Copies of the Company’s federal, state and local income tax returns;

 

(b)
Current list of names and addresses of Members and Assignees;

 

(c)
Copies of the Certificate and this Agreement, all amendments thereto, and copies of any written powers of attorney used to execute
any of the foregoing;

 

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(d)
Copies of financial statements of the Company for the three most recent years;

 

(e)
Information regarding the amount, description and value of Capital Contributions made or agreed to be made by each Member; and

 

(f)
Any other information regarding the financial condition and affairs of the Company that is just and reasonable.

 

8.3
Financial Reports. Within 45 days after the end of each fiscal quarter of the Company beginning with the
first quarter of operations, the Company will cause to be prepared and delivered to each Member financial statements for the Company
as of the end of such period. The year-end financial statements will be prepared by the Company and delivered to the Members within
90 days after the end of the year.

 

8.4
Taxation as Partnership. The Company will be treated as a “partnership” for Federal and state income
tax purposes. All provisions of this Agreement and the Certificate will be construed and applied so as to preserve that tax status.

 

8.5
Tax Returns and Elections; Tax Matters Partner.

 

(a)
The Company will cause to be prepared and timely filed all federal, state and local income tax returns or other returns or statements
required by applicable law. The Company will claim all deductions and make such elections for federal or state income tax purposes
which a Majority in Interest reasonably believes will produce the most favorable tax results for the Members.

 

(b)
Cinedigm is hereby designated as, and hereby accepts the position of, the Company’s “Tax Matters Partner,”
as defined in the Code. The Tax Matters Partner is hereby authorized and empowered to act for and represent the Company and each
of the Members before the Internal Revenue Service in any audit or examination of any Company tax return and before any court
selected by the Tax Matters Partner for judicial review of any adjustment assessed by the Internal Revenue Service; provided that,
the Tax Matters Partner will take commercially reasonable steps to provide to the Members prior written notice of any such audit
or examination, and to inform the Members of the progress with respect to any such audit or examination. Each of the Members consents
to and agrees to become bound by all actions of the Tax Matters Partner, including any contest, settlement or other action or
position which the Tax Matters Partner may deem proper under the circumstances. The Members specifically acknowledge, without
limiting the general applicability of this Section, that the Tax Matters Partner will not be liable, responsible or accountable
in damages or otherwise to the Company or any Member with respect to any action taken by it in its capacity as a Tax Matters Partner,
except for bad faith, fraud, gross negligence, willful misconduct or breach of fiduciary duty. All reasonable out-of-pocket expenses
incurred by the Tax Matters Partner in such capacity will be considered expenses of the Company for which the Tax Matters Partner
will be entitled to full reimbursement.

 

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8.6
Section 754 Election. In the event a distribution of Company assets occurs which satisfies the provisions of Section
734 of the Code or in the event a transfer of an Interest occurs which satisfies the provisions of Section 743 of the Code, the
Company will elect (but only if approved by the Board, in accordance with Section 754 of the Code, to adjust the basis of the
Company’s property to the extent allowed by such Section 734 or 743 and will cause such adjustments to be made and maintained.
Any additional accounting expenses incurred by the Company in connection with making or maintaining any such basis adjustment
will be reimbursed to the Company from time to time by the distributee or transferee who benefits from the making and maintenance
of such basis adjustment. Each Member will provide the Company with such information and such other cooperation as may be necessary
to receive from such Member in order for such election to be made and effected.

 

8.7
Bank Accounts. All funds of the Company will be deposited in a separate bank, money market or similar account(s)
approved by the Board and in the Company’s name. Withdrawals (by check or otherwise) therefrom will be made only by the
signature of persons authorized by the Board to do so.

 

ARTICLE
9

TRANSFERS OF INTERESTS

 

9.1
General Restrictions; Drag-Along and Tag-Along Rights.

 

(a)
No Member may Transfer all or any part of such Member’s Interest (including any Distribution and Allocation rights
associated with such Interest), except (i) as otherwise expressly permitted in this Agreement, or (ii) with the unanimous written
consent of all Class A and Class C Members; provided that the foregoing shall not apply to Transfers by Cinedigm, which
shall be free to Transfer its Interests upon written notice to the other Members, subject to the provisions of Section 9.1
(b). Notwithstanding anything contained herein to the contrary, the Class A and Class C Members may pledge their respective
Interests in connection with their ordinary course financing activities, including commercial credit facilities, without the consent
of the Company or the other Member, and the Members expressly acknowledges each Class A and Class C Member intends to do so. Any
purported Transfer of all or any part of an Interest in violation of the terms of this Agreement (an “Unauthorized
Transfer”) will be void and of no effect whatsoever; provided, however, that if the Company is required under
the Act or other applicable law to recognize an Unauthorized Transfer, the Person to whom such Interest is Transferred will have
only the rights of an Assignee with respect to the Transferred Interest and any Distributions with respect to such Transferred
Interest may be applied (without limiting any other legal or equitable rights of the Company) towards the satisfaction of any
debts, obligations or liabilities for damages that the transferor or transferee of such Interest may have to the Company or as
otherwise provided in Section 3.7. A permitted Transfer will be effective as of the date specified in the instruments relating
thereto. Any assignee desiring to make a further Transfer will be subject to all of the provisions of this Article 9 to
the same extent and in the same manner as any other Member desiring to make any Transfer.

 

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(b)
In the event Cinedigm elects to Transfer its Interest to a third party purchaser, Cinedigm shall provide written notice, at least
thirty (30) days prior to the proposed closing, to each other Member, and each other Member will have the right to elect to participate
in the sale as a seller of all of such other Member’s Interest along with the sale by Cinedigm for the same consideration
per percent of Percentage Interest and upon the same terms relating to Interests as Cinedigm, subject to appropriate adjustments
to reflect amounts that would be payable to each Member under Section 4.1 if the Company was selling substantially all
of its assets in a transaction of comparable value with the buyer (the “Tag-Along Right”). Cinedigm
will have the right (the “Drag-Along Right”) to require all (but not less than all) of the other Members
to participate in the sale as sellers of their Interests along with the sale by Cinedigm for the same consideration per percent
of Percentage Interest and upon the same terms relating to Interests as Cinedigm subject to appropriate adjustments to reflect
amounts that would be payable to each Member under Section 4.1 if the Company was selling substantially all of its assets
in a transaction of comparable value with the buyer. The Member(s) exercising their Tag-Along Right will give written notice of
exercise to the Company and the other Members by the end of the 30 day period after notice from Cinedigm of its intention to sell.
At the closing, each participating Member will execute and deliver all documents as may be reasonably required to effectuate the
transfer of the applicable Interests, free and clear of all liens, claims and encumbrances of any type, other than this Agreement,
and each participating Member will execute such other instruments as may be reasonably required of all participating Members.
If (i) Cinedigm exercises the Drag-Along Right and (ii) any other Member actively opposes or refuses to cooperate in such sale,
then, in such circumstances, Cinedigm is hereby granted a limited power-of-attorney to act for and in the name of any such other
Member to execute any and all documentation in connection with the sale of the other Member’s Interest that Cinedigm deems
necessary to consummate the transaction.

 

(c)
In the event Cinedigm’s Drag Along Right is proposed to be exercised, or Wizard World proposes to exercise its Tag-Along
Right, in connection with a sale to a competitor of Wizard World in the live convention portion of the Comic-Con Sector, Wizard
World shall have the right to terminate its License Agreement and Services Agreement with the Company, effective 60 days from
the closing of the sale of the Company to such competitor. Wizard World shall within five (5) Business Days of receipt of Cinedigm’s
notice exercising its Drag Along Right or, in the case of Wizard World exercising its Tag-Along right at the time of exercise,
notify Cinedigm in the event it reasonably and in good faith believes Cinedigm’s Drag Along Right or its own Tag-Along Right
is being exercised in connection with a sale to a competitor of Wizard World in the live convention portion of the Comic-Con Sector
and whether it proposed to so terminate the License Agreement and Services Agreement. Cinedigm shall have the option to: (i) withdraw
the Drag Along Notice, which shall also have the effect of terminating any Tag-Along Right, and terminate the sale transaction
(ii) suspend the Drag Along Notice and Tag-Along Right and the sale to which it relates and initiate mediation and arbitration
proceedings pursuant to Section 11.17 in order to determine whether the proposed buyer is, in fact, a competitor of Wizard
World in the live convention portion of the Comic-Con Sector, or (iii) proceed with the Drag Along Notice (if any) and sale, in
which case Wizard World’s notice of termination of its License Agreement and Services Agreement shall be effective pursuant
to the terms of this Agreement.

 

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9.2
Substitute Members. No assignee of all or part of a Member’s Interest therein will become a “Substitute
Member” in place of the assignor and with all of the rights of the assignor as a Member unless and until:

 

(a)
The Transfer complies with the provisions of Section 9.1.

 

(b)
Except for Transfers under Section 3.7(a) and Section 9.6, the assignor Member states that such assignor Member intends
for the assignee to be admitted as a Substitute Member of the Company in the instrument of assignment;

 

(c)
The assignee has executed an instrument accepting and adopting the terms and provisions of this Agreement as a Member;

 

(d)
The assignor or assignee has paid all reasonable expenses of the Company in connection with the admission of the assignee as a
Substitute Member; and

 

(e)
Except for Transfers under Section 3.7(a), and except for Transfers by a Member of all or a proportionate part of such
Member’s entire Interest to a Person who is already a Member, all of the Class A and Class C Members have consented in writing
to such assignee becoming a Substitute Member, which consent may be withheld for any or no reason.

 

Upon
satisfaction of all of the foregoing conditions with respect to a particular assignee, the Members will cause this Agreement (including
Schedule A) and, if necessary, the Certificate to be duly amended to reflect the admission of the assignee as a Substitute
Member.

 

9.3
Effect of Admission as a Substitute Member. Unless and until admitted as a Substitute Member in accordance with
Section 9.2, a permitted assignee of all or a part of a Member’s Interest is only an Assignee, is not a Member and
is not entitled to exercise any of the governance or any other rights or powers of a Member in the Company (all of which will
remain with the assignor Member), including, without limitation, the right to vote, grant approvals or give consents with respect
to such Interest, the right to require any information or accounting of the Company’s business, the right to receive any
notices provided under this Agreement, or the right to inspect the Company’s books and records. Such Assignee will only
be entitled to receive the specific Economic Rights transferred to the Assignee which the assignor would otherwise be entitled
to receive. A permitted assignee who has become a Substitute Member has, to the extent of the Interest transferred to such assignee,
all the rights and powers of the Person for whom such assignee is substituted as the Member and is subject to the restrictions
and liabilities of a Member under this Agreement and the Act. Upon admission of a permitted assignee as a Substitute Member, the
assignor of the Interest so acquired by the Substitute Member will cease to be a Member of the Company to the extent of such transferred
Interest. A Person will not cease to be a Member upon assignment or Transfer of all of such Member’s Interest unless and
until the assignee(s) becomes a Substitute Member as to all of such Interest.

 

    	25

    	 	 	 

    

 

9.4
Additional Members. Additional Members (as distinguished from Substitute Members) may be admitted to the Company
only by approval of the Board. Upon any such admission, the Board will (a) determine in good faith (i) the Fair Value of the Capital
Contribution being made by the additional Member in relation to the then Fair Value of the Company, and (ii) the Percentage Interest
to be held by the additional Member on a prospective basis, (b) proportionately adjust the Percentage Interests and, if applicable,
the Capital Accounts of all of the then existing Members on a prospective basis and (c) execute an amendment to this Agreement
to evidence the foregoing (which amendment will be binding on the Company and all Members).

 

9.5
Withdrawal of a Member. No Member will have the right or power, and no Member will attempt, to Withdraw from the
Company before the 36 month anniversary of this Agreement and except upon giving at least six months advance written notice thereof
to the Company and the other Members. No Assignee will have the right or power to Withdraw from the Company. Any act or purported
act of a Member or Assignee in violation of this Section will be void and of no effect. If a Member exercises any non-waivable
statutory right to Withdraw from the Company, such Withdrawal will be a default or breach by the Member of its obligations under
this Agreement and the Company may recover from such Member any damages incurred by the Company as a result of such Withdrawal
and offset the damages against any amounts payable to such Member under the Act, the Certificate or this Agreement. Unless the
other Members elect to dissolve the Company under Section 10.1(c) due to such Withdrawal, such Withdrawing Member will
only be entitled to receive from the Company 25% of the amount of the Member’s Capital Account balance, determined as of
the effective date of the Member’s Withdrawal. Such balance will constitute a liability of the Company to the Member and
will be paid to the Member by the Company in 48 consecutive equal monthly installments, without interest, beginning three months
after such Withdrawal effective date. On the Withdrawal effective date, the Member will cease to be a Member and the Member will
execute a bill of sale and assignment transferring its Interest back to the Company. The Company will not be obligated to obtain
a release of the Withdrawing Member and its affiliates from any guarantee by it and them of any loan or lease for which
the Company is liable at the time of the Member’s Withdrawal. If the Withdrawing Member has an outstanding loan to the Company,
the Company will remain obligated to repay such loan in accordance with the terms thereof, including, without limitation, the
requirements of Section 4.1 (as if the Withdrawing Member was still a Member for purposes of such Section 4.1).

 

9.6
Treatment of Class B Units in Certain Events. In the event of a buyout of one Class A Member of all of the other
Class A Member’s Class A Units (or in the case of Cinedigm, its Class A and Class C Units), the remaining Class A Member
shall have the right to purchase all Class B Units at Fair Value, as determined by the Board based upon the report of an Independent
Valuation Firm on the Class B Units.

 

9.7
Anti-Dilution Protection – Class A Units of Wizard World and Cinedigm. The Company agrees that Wizard World’s
100 Class A Units and 100 of Cinedigm’s current Class A Units as set forth on Schedule A shall have anti-dilution
protection rights such that in no event shall such Class A Units of either of them be less than 10% (ten percent) of the total
number of Units, or rights or interests convertible into or exchangeable for Units, on a fully diluted basis. In the event that
the Company issues any Interests or any interest convertible into or exchangeable for Interests to any person or entity, the Company
agrees to undertake all necessary measures to provide for a sufficient number of Units to be issued to Wizard World or Cinedigm,
as the case may be, in respect of such Units so as to maintain in each of them no less than 10% of the total number of Units,
or rights or interests convertible into or exchangeable for Units, on a fully diluted basis. The rights set forth in this Section
shall automatically become null and void upon a public offering of the Company’s securities or a sale by the Member having
such right of its Units.

 

    	26

    	 	 	 

    

 

9.8
Limited Put Right.

 

(a)
In the event that the Company (i) admits an additional Member and such additional Member is a competitor of Wizard World in the
live convention portion of the Comic-Con Sector, and (ii) such additional Member receives a Percentage Interest that is higher
than the Percentage Interest of Wizard World, then Wizard World shall have the option (but not the obligation) to sell all (but
not less than all) of its Units to the Company (the “Put Right”), and if Wizard World exercises its
Put Right, the Company shall purchase the Units held by Wizard World in accordance with the provisions of this Section 9.8.
Wizard World may exercise its Put Right at any time within thirty (30) days after Wizard World receives notice of the sale or
issuance by the Company. If Wizard World does not exercise its Put Right prior to the end of such thirty (30) day period, then
the option to sell Wizard World’s Units under this Section 9.8 shall expire, and Wizard World shall no longer have
the right to sell its Units to the Company as a result of such sale or issuance. The closing of the purchase and sale of Wizard
World’s Units shall take place on a date that is reasonably acceptable to the Company but in any event within thirty (30)
days after the date on which Wizard World exercises its Put Right.

 

(b)
The purchase price to be paid by the Company for Wizard World’s Units pursuant to this Section 9.8 shall be an amount
equal to the Appraised Value of Wizard World’s Units.

 

(c)
Notwithstanding the foregoing, this Section 9.8 shall not apply to any sale or issuance of Units or other Interests by
the Company to (i) ReedPop or its parent Reed Exhibitions or any of their respective Affiliates (collectively, “ReedPop”)
or (ii) ComicCon International or any of its Affiliates, including any joint ventures in which ComicCon International is involved
(collectively “ComicCon International”); provided, however, in the event that, at the
time of such sale or issuance, Wizard World is currently involved in any actions, claims, legal proceedings or litigation with
ReedPop and/or ComicCon International, or Wizard World is aware of any imminent action, claim, legal proceeding or litigation
with either ReedPop and/or ComicCon International, this Section 9.8(c) shall not apply and Wizard World shall be entitled
to exercise its Put Right subject to the terms of Section 9.8(a) and (b).

 

    	27

    	 	 	 

    

 

ARTICLE
10

DISSOLUTION AND TERMINATION

 

10.1
Events Causing Dissolution. The Company will be dissolved upon the first to occur of the following events:

 

(a)
The expiration of the period (if any) fixed for the duration of the Company, as set forth in the Certificate, unless extended
by the Class C Members.

 

(b)
At any time by action of the Board.

 

(c)
Any other event causing a dissolution of the Company under the Act, except that (i) a vote of the Members to dissolve will cause
a dissolution only if it satisfies clause (b) above or the next sentence, and (ii) the Withdrawal, Involuntary Transfer or dissolution
of a Member or the occurrence of any other event that terminates the continued membership of a Member will not cause the Company
to be dissolved or its affairs to be wound up. Upon the occurrence of any such event described in clause (ii) above, the Company
will be continued without dissolution, unless within 90 days following the occurrence of such event, the other Members unanimously
agree in writing to dissolve the Company. If the Company is not so dissolved, the business of the Company will continue (A) with
the affected Member, remaining as a Member, or (B) if such Interest is transferred to a successor holder by operation of law,
with such assignee being a permitted assignee of the Distribution and Allocation rights associated with such Interest, but such
assignee will become a Substitute Member only in accordance with Section 9.3.

 

10.2
Effect of Dissolution. Except as otherwise provided in this Agreement, upon the dissolution of the Company, the
Members will take such actions as may be required in accordance with the Act and will proceed to wind up, liquidate and terminate
the business and affairs of the Company. In connection with such winding up, the Board will have the authority to liquidate and
reduce to cash (to the extent necessary or appropriate) the assets of the Company as promptly as is consistent with obtaining
a fair and reasonable value for such assets, to apply and distribute the proceeds of such liquidation and any remaining assets
in accordance with the order of priority set forth in Section 4.2, and to do any and all acts and things authorized by,
and in accordance with, the Act and other applicable laws for the purpose of winding up and liquidation.

 

10.3
Right of First Offer Prior to Dissolution. In the event the Board authorizes the dissolution of the Company pursuant
to Section 10.1 (b), it shall provide Wizard World with written notice of such dissolution (a “Dissolution
Notice”) at least thirty (30) days prior to the date the Board intends to effect such dissolution. Wizard World
shall have thirty (30) days following the receipt of a Dissolution Notice (the “Dissolution Offer Period”)
to make a written good faith offer to purchase the assets or membership interests of the Company in accordance with the provisions
of this Section 10.3. Wizard World’s written good faith offer to the Company stating that it desires to purchase
the assets or membership interests of the Company shall specify: (i) the proposed purchase price and all other proposed terms
and conditions of the offer, and (ii) the proposed date, time and location of the closing of the acquisition of the Company, which
shall not be more than 45 days from the date of the Dissolution Notice. In no event shall an offer that will create an ongoing
and recurring operating cost for Cinedigm after the business of the Company has been fully transitioned to Wizard World qualify
as a “good faith offer”. Any offer delivered by Wizard World under this Section 10.3 shall be binding upon
Wizard World (but not upon the Company) upon delivery to the Company and shall be irrevocable as to Wizard World. If Wizard World
does not deliver a written good faith offer during the Dissolution Offer Period, it shall be deemed to have waived all of its
rights to purchase the Company under this Section 10.3. The Board shall consider such offer in good faith. For the avoidance
of doubt, Wizard World’s right to purchase the Company under this Section 10.3 shall only apply in the event the
Board formally authorizes a dissolution of the Company, and shall not create any rights of Wizard World in the event of any other
sale of the Company or its assets, or any issuance of membership interests, or any other transaction, all of which such transactions
are otherwise governed by other terms of this Agreement.

 

    	28

    	 	 	 

    

 

ARTICLE
11

MISCELLANEOUS

 

11.1
Title to Assets. Title to the Property and all other assets acquired by the Company will be held in the name of
the Company. No Member will individually have any ownership interest or rights in the Property or any other assets of the Company,
except indirectly by virtue of such Member’s ownership of an Interest or by virtue of a specific agreement between such
Member and the Company. No Member will have any right to seek or obtain a partition of the Property or other assets of the Company,
nor will any Member have the right to any specific assets of the Company upon the liquidation of or any distribution from the
Company.

 

11.2
Nature of Interest in the Company. A Member’s Interest will be personal property for all purposes.

 

11.3
Conversion. The Board may, with the approval of Cinedigm, in order to facilitate an initial public offering, a private
offering of the Company’s equity securities or any other capital raise, cause the Company to incorporate its business, or
any portion thereof, including by (i) the transfer of all of the assets of the Company, subject to the Company’s liabilities,
or the transfer of any portion of such assets and liabilities, to one or more corporations in exchange for shares of such corporation(s)
and the subsequent distribution of such shares, at such time as the Board may determine, to the Members, (ii) conversion of the
Company into a corporation pursuant to the Act, or (iii) transfer by each Member of Units held by such Member to one or more corporations
in exchange for shares of such corporation(s) (including by merger of the Company into a corporation). The Company shall pay any
and all organizational, legal and accounting expenses and filing fees incurred in connection with such transaction, including
any fees related to a filing under the Hart-Scott-Rodino Anti-Trust Improvements Act of 1976, as amended, if applicable. In such
event (a “Reorganization”), the Members shall take all necessary or desirable actions reasonably requested
by the Board in connection with the consummation of the Reorganization relating to such recapitalization, reorganization or exchange,
including consenting to, voting for and waiving any dissenters rights, appraisal rights or similar rights and participating in
any exchange or other transaction required in connection with such Reorganization. In the event that the Board and Cinedigm approve
a Reorganization, each Member shall vote for, consent to (to the extent it has any voting or consenting right) and raise no objections
against the Reorganization, and the Company, the Board and each Member shall take all reasonable actions in connection with the
consummation of the Reorganization as requested by the Board, including with respect to compliance with the requirements of all
applicable laws and regulatory bodies.

 

    	29

    	 	 	 

    

 

11.4
Certain Expenses. The Company will directly pay or reimburse Cinedigm or Wizard World or give the respective party
credit toward its Capital Contributions for an amount equal to its reasonable, documented out of pocket expenses incurred in connection
with the drafting and negotiation of this amended Agreement. 

 

11.5
Powers of Attorney. Any power of attorney granted by a Member under this Agreement is a durable power of attorney,
is coupled with an interest, is irrevocable, and will survive the incapacity, dissolution, termination or Bankruptcy of the Member
and/or the Transfer by the Member of all or part of such Member’s Interest.

 

11.6
Notices. Except for the notices required by Section 5.4 which will be governed by that Section, any notice,
demand, request, call, offer or other communication required or permitted to be given by this Agreement or by the Act will be
sufficient if in writing and if hand delivered or sent by mail to the address of the Member as it appears on the records of the
Company. All mailed notices will be deemed delivered when deposited in the United States mail, postage prepaid.

 

11.7
Waiver of Default. No consent or waiver, express or implied, by the Company or a Member with respect to any breach
or default by another Member hereunder will be deemed or construed to be a consent or waiver with respect to any other breach
or default by such Member of the same provision or any other provision of this Agreement. Failure on the part of the Company or
a Member to complain of any act or failure to act of another Member or to declare such other Member in default will not be deemed
or constitute a waiver by the Company or the Member of any rights hereunder.

 

11.8
No Third Party Rights. None of the provisions contained in this Agreement will be for the benefit of or enforceable
by any third parties, including, without limitation, creditors of the Company.

 

11.9
Set-Off. Without limiting any other right the Company may have, the Company, in its sole discretion, may set off
against any amounts due a Member from the Company any and all liquidated amounts then or thereafter owed to the Company by the
Member in any capacity, whether or not such amount or the obligations to pay such amount owed by the Member is then due.

 

11.10
Entire Agreement; Amendment.

 

(a)
This Agreement (together with the Certificate and any other agreements referenced herein) contains the entire agreement between
the Members, in such capacity, relative to the formation, operation and continuation of the Company.

 

    	30

    	 	 	 

    

 

(b)
This Agreement will not be amended, altered, modified or changed (each an “amendment”) except by an action of the
Board, in which case such amendment shall be binding on all Members; provided, that no amendment will, other than as provided
in Section 9.4, make any material adverse change in the rights of any Member: (i) to increase the responsibility of any
Member for any expenditures, obligations or liabilities beyond that set forth in this Agreement or (ii) to change the voting percentage
of the Members necessary for any approval required hereunder, in each case unless such amendment is approved by Members so affected.

 

11.11
Severability. In the event any provision of this Agreement is held to be illegal, invalid or unenforceable to any
extent, the legality, validity and enforceability of the remainder of this Agreement will not be affected thereby and will remain
in full force and effect and will be enforced to the greatest extent permitted by law.

 

11.12
Binding Agreement. Subject to the restrictions on the disposition of Interests herein contained, the provisions
of this Agreement will be binding upon, and inure to the benefit of, the parties hereto and their respective heirs, personal representatives,
successors and permitted assigns.

 

11.13
Headings. The headings of the articles and sections of this Agreement are for convenience only and will not be considered
in construing or interpreting any of the terms or provisions hereof.

 

11.14
Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an
original and all of which will constitute one agreement that binds all of the parties hereto, notwithstanding that all parties
are not signatories to the same counterpart. This Agreement may be delivered by facsimile transmission or by scanned e-mail transmission.
This Agreement will be considered to have been executed by a person if there exists a photocopy, facsimile copy, or a photocopy
of a facsimile copy of an original hereof or of a counterpart hereof which has been signed by such person. Any photocopy, facsimile
copy, or photocopy of facsimile copy of this Agreement or a counterpart hereof will be admissible into evidence in any proceeding
as though the same were an original.

 

11.15
Representations.

 

(a)
Each Member hereby represents to the Company and each other Member that: (i) the Member is duly organized, validly existing and
in good standing under the laws of its state of formation, (ii) the execution, delivery and performance of this Agreement has
been duly authorized by all necessary and appropriate action, (iii) this Agreement constitutes a valid and binding obligation
of the Member, enforceable against it in accordance with the terms hereof, and (iv) the Interest is being acquired by the Member
(A) solely for investment for the Member’s own account and not as nominee or agent or otherwise on behalf of any other Person,
and (B) not with a view to or with any present intention to reoffer, resell, fractionalize, assign, grant any participation interest
in, or otherwise distribute the Interest.

 

    	31

    	 	 	 

    

 

(b)
Each Member agrees to indemnify the Company and each of the other Members from and against any and all damage, loss, liability,
cost and expense (including reasonable attorneys’ fees) which any of them may incur as a result of the failure of any representation
by the indemnifying Member to be accurate.

 

11.16
Governing Law and Agreement Supersedes Act. This Agreement will be governed by and construed in accordance with
the laws of Delaware. The provisions of this Agreement will supersede and control over any and all provisions of the Act to the
contrary, to the maximum extent permitted by the Act.

 

11.17
Mediation; Arbitration.

 

(a)
The parties agree that any and all disputes, claims or controversies arising out of or relating to this Agreement shall be submitted
to JAMS, or its successor, for mediation, and if the matter is not resolved through mediation, then it shall be submitted to JAMS,
or its successor, for final and binding arbitration in accordance with the JAMS International Arbitration Rules pursuant to the
clause set forth in Section (e) below. The place of mediation and/or arbitration will be Los Angeles, California. Judgment upon
the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

 

(b)
Either party may commence mediation by providing to JAMS and the other party a written request for mediation, setting forth the
subject of the dispute and the relief requested.

 

(c)
The parties will cooperate with JAMS and with one another in selecting a mediator from the JAMS panel of neutrals and in scheduling
the mediation proceedings. The mediator and any arbitrator shall have no less than 10 years of experience in the entertainment
industry focusing on filmed content. The parties agree that they will participate in the mediation in good faith and that they
will share equally in its costs.

 

(d)
All offers, promises, conduct and statements, whether oral or written, made in the course of the mediation by any of the parties,
their agents, employees, experts and attorneys, and by the mediator or any JAMS employees, are confidential, privileged and inadmissible
for any purpose, including impeachment, in any arbitration or other proceeding involving the parties, provided that evidence that
is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the mediation.

 

(e)
Either party may initiate arbitration with respect to the matters submitted to mediation by filing a written demand for arbitration
at any time following the initial mediation session or at any time following 45 days from the date of filing the written request
for mediation, whichever occurs first (“Earliest Initiation Date”). The mediation may continue after
the commencement of arbitration if the parties so desire.

 

(f)
At no time prior to the Earliest Initiation Date shall either side initiate an arbitration or litigation related to this Agreement
except to pursue a provisional remedy that is authorized by law or by JAMS Rules or by agreement of the parties. However, this
limitation is inapplicable to a party if the other party refuses to comply with the requirements of Section (c) above.

 

    	32

    	 	 	 

    

 

(g)
All applicable statutes of limitation and defenses based upon the passage of time shall be tolled until 15 days after the Earliest
Initiation Date. The parties will take such action, if any, required to effectuate such tolling.

 

11.18
WAIVER OF JURY TRIAL. TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE COMPANY AND THE MEMBERS HEREBY KNOWINGLY, IRREVOCABLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING, COUNTERCLAIM
OR DEFENSE BASED ON THIS AGREEMENT, OR ARISING OUT OF, UNDER OR IN ANY WAY CONNECTED TO THIS AGREEMENT OR THE COMPANY, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO RELATING TO THE COMPANY
OR THIS AGREEMENT.

 

11.19
Agreement Drafted by Counsel to Member. Each Member acknowledges that (i) Polsinelli LLP, has prepared the Certificate
and this Agreement on behalf of and in its capacity as counsel for Cinedigm and (ii) the other Members have been advised and encouraged
by such law firm to seek independent counsel.

 

11.20
Attorneys Fees. In the event of a dispute between any of the parties hereto relating to the Company, the prevailing
party or parties in such dispute shall be entitled to an award of its reasonable legal fees and expenses against the non-prevailing
party or parties.

 

[Remainder
of page left blank intentionally.]

 

    	33

    	 	 	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed.

 

	THE COMPANY:	 	THE MEMBERS:
	 	 	 	 	 
	 	 	 	CINEDIGM ENTERTAINMENT CORP.
	By:		 	By:	
	Name:		 	Name: 	
	Title:		 	Title:	
	 	 	 	 	 
	 	 	 	WIZARD WORLD, INC.
	 	 	 	 	 
	 	 	 	By:	
	 	 	 	Name: 	
	 	 	 	Title:	
	 	 	 	 	 
	 	 	 	BRISTOL CAPITAL, LLC
	 	 	 	 	 
	 	 	 	By:	
	 	 	 	Name: 	
	 	 	 	Title:	
	 	 	 	 	 
	 	 	 	ROAR, LLC
	 	 	 	 	 
	 	 	 	By:	
	 	 	 	Name: 	
	 	 	 	Title:	

 

    	34

    	 	 	 

    

 

SCHEDULE
A

 

LIST
OF MEMBERS

 

	Name
                                         and Address

        
	 	Number
                                         of Units

        and
        Class

        
	 	Percentage
    Interest
	Cinedigm
                                         Entertainment Corp.

        1901
        Ave. of the Stars, 12th Floor

        Los
        Angeles, California 90067

        Attn:
        Gary Loffredo, General Counsel

        Tax
        I.D. #13-3578656
	 	475
                                         Class A Units

        375
        Class C Units
	 	47.5%

        37.5%

	 	 	 	 	 
	Wizard
                                         World, Inc.

        1350
        Avenue of the Americas, 2nd Floor

        New
        York NEW YORK 10019

        Attn:
        John Macaluso, CEO

        Tax
        I.D. #27-3627438
	 	100
                                         Class A Units

         
	 	10%
	 	 	 	 	 
	ROAR,
                                         LLC

        9701
        Wilshire Blvd., 8th Floor

        Beverly
        Hills, CA 90210

        Tax
        I.D. # 95-4841047

        

        
	 	25
                                         Class B Non-Voting Profits Interest Units

         

        
	 	2.5%

         

        

	 	 	 	 	 
	Bristol
                                         Capital, LLC 1100 Glendon Ave., Suite 850 Los Angeles, CA 90024 Tax I.D. # 95-4717240

	 	25
                                         Class B Non-Voting Profits Interest Units

	 	2.5%

 

Initial
Cash Capital Contributions

 

	Cinedigm
    – $1,577,529.01	 
	 	 
	Wizard
    World – $1,577,529.01	 

 

    	A-1

    	 	 	 

    

 

Wizard
World Non-Cash Contributions 

 

	URLs:
     	[  ]
	[  ]	Contvstore.com
	[  ]	Con.TV
	[  ]	Comiccon.tv
	[  ]	comicconchannel.com
	[  ]	Comicconchannel.info
	[  ] 	Comicconchannel.net
	[  ]	Comicconchannel.org
	[  ]	Comicconnetwork.com
	[  ]	Comicconnetwork.info
	[  ]	Comicconnetwork.net
	[  ]	Comicconnetwork.org
	[  ]	con-tv.com
	[  ]	Contv.com
	[  ]	Contv.us
	[  ]	Thecomicconchannel.com
	[  ]	Thecomicconchannel.info
	[  ]	Thecomicconchannel.net
	[  ]	Thecomicconchannel.org
	[  ]	Thecomicconnetwork.com
	[  ]	hecomicconnetwork.info
	[  ]	hecomicconnetwork.net
	[  ]	hecomicconnetwork.org

 

Trademarks
–

 

“Con
TV” – USPTO Class 41 #86276177;Class 38 # 86276167

 

Wizard
World Comic Con TV

Class:
38

Serial
Number: 86276196

 

Wizard
World Comic Con TV

Class:
41

Serial
Number: 86276209

 

    	A-2

    	 	 	 

    

 

SCHEDULE
B

 

TAX
EXHIBIT

 

1.
Definitions. As used in this Tax Exhibit, the following terms will have the following meanings, unless the context
otherwise specifies:

 

“Adjusted
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, after giving effect to the following adjustments: (i) increased for
any amounts such Member is unconditionally obligated to restore and the amount of such Member’s share of Company Minimum
Gain and Member Minimum Gain after taking into account any changes during such year; and (ii) reduced by the items described in
Treasury Regulation §§ 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

 

“Company
Minimum Gain” will have the same meaning as partnership minimum gain set forth in Treasury Regulation § 1.704-2(d).
Company Minimum Gain will be determined, first, by computing for each Nonrecourse Liability any gain which the Company would realize
if the Company disposed of the property subject to that liability for no consideration other than full satisfaction of such liability
and, then, aggregating the separately computed gains. For purposes of computing gain, the Company will use the basis of such property
which is used for purposes of maintaining Capital Accounts under Section 3.3 of the Agreement. In any taxable year in which
a Revaluation occurs, the net increase or decrease in Company Minimum Gain for such taxable year will be determined by: (1) calculating
the net decrease or increase in Company Minimum Gain using the current year’s book value and the prior year’s amount
of Company Minimum Gain, and (2) adding back any decrease in Company Minimum Gain arising solely from the Revaluation.

 

“Credits”
means all investment and other tax credits allowed by the Code with respect to activities of the Company or the Property.

 

“Income”
and “Loss” mean, respectively, for each fiscal year or other period, an amount equal to the Company’s
taxable income or loss for such year or period, determined in accordance with Code Section 703(a), except that for this purpose
(i) all items of income, gain, deduction or loss required to be separately stated by Code Section 703(a)(1) will be included in
taxable income or loss; (ii) tax exempt income will be added to taxable income or loss; (iii) any expenditures described in Code
Section 705(a)(2)(B) (or treated as Code Section 705(a)(2)(B) expenditures in accordance with Treasury Regulation § 1.704-1(b)(2)(iv)(i))
and not otherwise taken into account in computing taxable income or loss will be subtracted; and (iv) taxable income or loss will
be adjusted to reflect any item of income or loss specifically allocated in Article 4 of the Agreement.

 

“Member
Minimum Gain” will have the same meaning as partner nonrecourse debt minimum gain as set forth in Treasury Regulation
§ l.704-2(i)(3). With respect to each Member Nonrecourse Debt, Member Minimum Gain will be determined by computing for each
Member Nonrecourse Debt any gain which the Company would realize if the Company disposed of the property subject to that liability
for no consideration other than full satisfaction of such liability. For purposes of computing gain, the Company will use the
basis of such property which is used for purposes of maintaining Capital Accounts. In any taxable year in which a Revaluation
occurs, the net increase or decrease in Member Minimum Gain for such taxable year will be determined by: (1) calculating the net
decrease or increase in Member Minimum Gain using the current year’s book value and the prior year’s amount of Member
Minimum Gain, and (2) adding back any decrease in Member Minimum gain arising solely from the Revaluation.

 

    	B-1

    	 	 	 

    

 

“Member
Nonrecourse Debt” will have the same meaning as partner nonrecourse debt set forth in Treasury Regulation §
1.704-2(b)(4).

 

“Member
Nonrecourse Deductions” will have the same meaning as partner nonrecourse deductions set forth in Treasury Regulation
§ 1.704-2(i)(2). Generally, the amount of Member Nonrecourse Deductions with respect to a Member Nonrecourse Debt for a fiscal
year equals the net increase during the year in the amount of Member Minimum Gain (determined in accordance with Treasury Regulation
§ 1.704-2(i)) reduced (but not below zero) by the aggregate distributions made during the year of proceeds of a Member Nonrecourse
Debt and allocable to the increase in Member Minimum Gain, determined according to the provisions of Treasury Regulation §
1.704-2(i).

 

“Nonrecourse
Deduction” will have the same meaning as nonrecourse deductions set forth in Treasury Regulation § 1.704-2(b)(1).
Generally, the amount of Nonrecourse Deductions for a fiscal year equals the net increase in the amount of Company Minimum Gain
(determined in accordance with Treasury Regulation § 1.704-2(d)) during such year reduced (but not below zero) by the aggregate
distributions made during the year of proceeds of a Nonrecourse Liability that are allocable to an increase in Company Minimum
Gain, determined according to the provisions of Treasury Regulation § 1.704-2(c) and (h).

 

“Nonrecourse
Liability” means a Company liability with respect to which no Member bears the economic risk of loss as determined
under Treasury Regulation § 1.752-1(a)(2).

 

“Revaluation”
means the occurrence of an event described in clause (v), (w), (x), (y) or (z) of Section 2 below in which the book basis of Property
is adjusted to its Fair Value.

 

2.
Capital Accounts. Each Member’s Capital Account will be (a) increased by (i) the amount of money contributed
by such Member, (ii) the Fair Value of property contributed by such Member (net of liabilities secured by such contributed property
that the Company is considered to assume or take subject to under Code Section 752), (iii) allocations to such Member, in accordance
with Article 4 of the Agreement, of Company income and gain (or items thereof), and (iv) to the extent not already netted
out under clause (b)(ii) below, the amount of any Company liabilities assumed by the Member or which are secured by any property
distributed to such Member; and (b) decreased by (i) the amount of money distributed to such Member, (ii) the Fair Value of property
distributed to such Member (net of liabilities secured by such distributed property that such Member is considered to assume or
take subject to under Code Section 752), (iii) allocations to such Member, in accordance with Article 4 of the Agreement,
of Company loss and deduction (or items thereof), and (iv) to the extent not already netted out under clause (a)(ii) above, the
amount of any liabilities of the Member assumed by the Company or which are secured by any property contributed by such Member
to the Company.

 

    	B-2

    	 	 	 

    

 

In
the event any interest in the Company is transferred in accordance with the terms of this Agreement, the assignee will succeed
to the Capital Account of the assignor to the extent it relates to the transferred interest, except as otherwise provided in the
written transfer agreement between the assignor and assignee.

 

In
the event of (v) the grant of a more than de minimis Interest in the Company as consideration for the provision of services to
or for the benefit of the Company by an existing Member acting in a Member capacity, or by a new Member acting in a Member capacity
or in anticipation of being a Member, (w) an additional capital contribution by an existing or an additional Member of more than
a de minimis amount or a distribution of property which results in a shift in Percentage Interests, (x) the distribution by the
Company to a Member of more than a de minimis amount of property (other than cash), (y) a distribution of Property in exchange
for an Interest, or (z) the liquidation of the Company within the meaning of Treasury Regulation § 1.704-1(b)(2)(ii)(g),
the book basis of the Company Property will be adjusted to Fair Value and the Capital Accounts of all the Members will be adjusted
simultaneously to reflect the aggregate net adjustment to book basis as if the Company recognized gain and loss equal to the amount
of such aggregate net adjustment.

 

If
Property is subject to Code Section 704(c) or is revalued on the books of the Company in accordance with the preceding paragraph
in accordance with Section 1.704-1(b)(2)(iv)(f) of the Treasury Regulations, the Members’ Capital Accounts will be adjusted
in accordance with Section 1.704-1(b)(2)(iv)(g) of the Treasury Regulations for allocations to the Members of depreciation, amortization
and gain or loss, as computed for book purposes (and not tax purposes) with respect to such property.

 

The
foregoing provisions of this Section 2 and the other provisions of the Agreement relating to the maintenance of capital
accounts are intended to comply with Treasury Regulation § 1.704-1(b) and Treasury Regulation § 1.704-2, and will be
interpreted and applied in a manner consistent with such Treasury Regulations. To the extent necessary to comply with Treasury
Regulation § 1.704-1(b)(2)(ii)(d), a Member’s Capital Account will be reduced for the adjustments and allocations set
forth in Treasury Regulation § 1.704-1(b)(2)(ii)(d)(4), (5) and (6). In the event a Majority in Interest determines that
it is prudent or advisable to modify the manner in which the Capital Accounts, or any increases or decreases thereto, are computed
in order to comply with such Treasury Regulations, such Majority in Interest may cause such modification to be made without the
consent of all the Members, provided that it is not likely to have a material effect on the amounts distributable to any Member
upon the dissolution of the Company. In addition, a Majority in Interest may amend this Agreement in order to comply with such
Treasury Regulations as provided in Section 3(j) of this Tax Exhibit.

 

    	B-3

    	 	 	 

    

 

3.
Special Rules Regarding Allocation of Tax Items. Notwithstanding the provisions of Article 4 of the Agreement,
the following special rules will apply in allocating the net income or net loss of the Company:

 

(a)
Section 704(c) and Revaluation Allocations. In accordance with Code Section 704(c) and the Treasury Regulations thereunder,
and notwithstanding any subsequent repeal or modification thereof, income, gain, loss and deduction with respect to any property
contributed to the capital of the Company will, solely for tax purposes, be allocated among the Members so as to take account
of any variation between the adjusted basis of such property to the Company for federal income tax purposes and its Fair Value
at the time of contribution. In the event of the occurrence of a Revaluation, subsequent allocations of income, gain, loss and
deduction with respect to such property will take account of any variation between the adjusted basis of such property to the
Company for federal income tax purposes and its Fair Value immediately after the adjustment in the same manner as under Code Section
704(c) and the Treasury Regulations thereunder. Allocations in accordance with this Section 3(a) are solely for income
tax purposes and will not affect, or in any way be taken into account in computing, any Member’s Capital Account, distributions
or share of income or loss, in accordance with any provision of this Agreement.

 

(b)
Minimum Gain Chargeback. Notwithstanding any other provision of Article 4 of the Agreement, if there is a net decrease
in Company Minimum Gain during a Company taxable year, each Member will be allocated items of income and gain for such year (and,
if necessary, for subsequent years) in an amount equal to that Member’s share of the net decrease in Company Minimum Gain
during such year (hereinafter referred to as the “Minimum Gain Chargeback Requirement”). A Member’s
share of the net decrease in Company Minimum Gain is the amount of the total decrease multiplied by the Member’s percentage
share of the Company Minimum Gain at the end of the immediately preceding taxable year. A Member is not subject to the Minimum
Gain Chargeback Requirement to the extent: (1) the Member’s share of the net decrease in Company Minimum Gain is caused
by a guarantee, refinancing or other change in the debt instrument causing it to become partially or wholly recourse debt or a
Member Nonrecourse Liability, and the Member bears the economic risk of loss for the newly guaranteed, refinanced or otherwise
changed liability; (2) the Member contributes capital to the Company that is used to repay the Nonrecourse Liability and the Member’s
share of the net decrease in Company Minimum Gain results from the repayment; or (3) the Minimum Gain Chargeback Requirement would
cause a distortion and the Commissioner of the Internal Revenue Service waives such requirement.

 

A
Member’s share of Company Minimum Gain will be computed in accordance with Treasury Regulation § 1.704-2(g) and as
of the end of any Company taxable year will equal: (1) the sum of the nonrecourse deductions allocated to that Member up to that
time and the distributions made to that Member up to that time of proceeds of a Nonrecourse Liability allocable to an increase
of Company Minimum Gain, minus (2) the sum of that Member’s aggregate share of net decrease in Company Minimum Gain plus
his aggregate share of decreases resulting from revaluations of Company Property subject to Nonrecourse Liabilities. In addition,
a Member’s share of Company Minimum Gain will be adjusted for the conversion of recourse and Member Nonrecourse Liabilities
into Nonrecourse Liabilities in accordance with Treasury Regulation § 1.704-2(g)(3). In computing the above, amounts allocated
or distributed to the Member’s predecessor in interest will be taken into account.

 

    	B-4

    	 	 	 

    

 

(c)
Member Minimum Gain Chargeback. Notwithstanding any other provision of Article 4 of the Agreement, if there is a
net decrease in Member Minimum Gain during a Company taxable year, any Member with a share of that Member Minimum Gain (determined
under Treasury Regulation § 1.704-2(i)(5)) as of the beginning of the year will be allocated items of income and gain for
such year (and, if necessary, for subsequent years) equal to that Member’s share of the net decrease in Member Minimum Gain.
In accordance with Treasury Regulation § 1.704-2(i)(4), a Member is not subject to the Member Minimum Gain Chargeback requirement
to the extent the net decrease in Member Minimum Gain arises because the liability ceases to be Member Nonrecourse Debt due to
a conversion, refinancing or other change in the debt instrument that causes it to be partially or wholly a nonrecourse debt.
The amount that would otherwise be subject to the Member Minimum Gain Chargeback requirement is added to the Member’s share
of Company Minimum Gain.

 

(d)
Qualified Income Offset. In the event any Member unexpectedly receives an adjustment, allocation or distribution described
in Treasury Regulation § 1.704.1(b)(2)(ii)(d)(4), (5) or (6), which causes or increases such Member’s Adjusted Capital
Account Deficit, items of Company income and gain (consisting of a pro rata portion of each item of Company income, including
gross income, and gain for such year) will be specially allocated to such Member in an amount and manner sufficient to eliminate
such Adjusted Capital Account Deficit as quickly as possible, provided that an allocation under this Section 3(d) will
be made if and only to the extent such Member would have an Adjusted Capital Account Deficit after all other allocations under
Article 4 of the Agreement have been made.

 

(e)
Nonrecourse Deductions. Nonrecourse Deductions for any taxable year or other period will be allocated to the Members in
proportion to their Percentage Interests.

 

(f)
Member Nonrecourse Deductions. Any Member Nonrecourse Deduction will be allocated to the Member who bears the risk of loss
with respect to the loan to which such Member Nonrecourse Deductions are attributable in accordance with Treasury Regulation §
1.704-2(i).

 

(g)
Curative Allocations. Any special allocations of items of income, gain, deduction or loss in accordance with Sections
3(b), (c), (d), (e), (f) and (h) of this Tax Exhibit will be taken into account in computing subsequent allocations
of income and gain in accordance with Article 4 of the Agreement, so that the net amount of any items so allocated and
all other items allocated to each Member in accordance with Article 4 of the Agreement will, to the extent possible, be
equal to the net amount that would have been allocated to each such Member in accordance with the provisions of Article 4
of the Agreement if such adjustments, allocations or distributions had not occurred.

 

(h)
Loss Allocation Limitation. Notwithstanding the other provisions of Article 4 of the Agreement, unless otherwise
agreed to by all of the Members, no Member will be allocated Loss in any taxable year which would cause or increase an Adjusted
Capital Account Deficit as of the end of such taxable year.

 

(i)
Share of Nonrecourse Liabilities. Solely for purposes of determining a Member’s proportionate share of the “excess
nonrecourse liabilities” of the Company within the meaning of Treasury Regulation § 1.752-3(a)(3), each Member’s
interest in Company profits is equal to its respective Percentage Interest.

 

    	B-5

    	 	 	 

    

 

(j)
Compliance with Treasury Regulations. The foregoing provisions of this Section 3 are intended to comply with Treasury
Regulation §§ 1.704-1, 1.704-2 and 1.752-1 through 1.752-5, and will be interpreted and applied in a manner consistent
with such Treasury Regulations. In the event it is determined by a Majority in Interest that it is prudent or advisable to so
amend this Agreement in order to comply with such Treasury Regulations, such Majority in Interest is empowered to amend or modify
this Agreement without the consent of all the Members, notwithstanding any other provision of the Agreement.

 

(k)
General Allocation Provisions. Except as otherwise provided in this Agreement, all items that are components of Income
or Loss will be divided among the Members in the same proportions as they share such net income or net loss, as the case may be,
for the year. For purposes of determining the Income, Loss or any other items for any period, Income, Loss or any such other items
will be determined on a daily, monthly or other basis, as determined by the Members using any permissible method under Code Section
706 and the Treasury Regulations thereunder.

 

4.
Rules with respect to noncompensatory options. The parties agree that: (i) the terms of Section 3.2(b) of the Agreement
represent a “noncompensatory option,” as such term is defined in Treasury Regulation §1.721-2(f); (ii) that Wizard
World, the holder of such noncompensatory option, is not treated as a Member (or a partner) under Treasury Regulation §1.761-3
merely by virtue of being a holder of such noncompensatory option, and (iii) notwithstanding anything to the contrary in this
Agreement:

 

(a)
Pursuant to Treasury Regulation §1.704-1(b)(4)(ix)(a)(2), this Agreement requires that, while any noncompensatory option
is outstanding, the Company will comply with the rules of Treasury Regulation §1.704-1(b)(2)(iv)(f) and that, on the exercise
of any noncompensatory option, the Company will comply with the rules of Treasury Regulation §1.704-1(b)(2)(iv)(s).

 

(b)
Pursuant to Treasury Regulation §1.704-1(b)(2)(iv)(s)(1), in lieu of revaluing the Company’s property under Treasury
Regulation §1.704-1(b)(2)(iv)(f) immediately before the exercise of the option, the Company must revalue Company property
in accordance with the provisions of Treasury Regulation §§1.704-1(b)(2)(iv)(f)(1) through (f)(4) immediately after
the exercise of the option.

 

(c)
Pursuant to Treasury Regulation §1.704-1(b)(2)(iv)(s)(2), in determining the Capital Accounts of the Members (including the
exercising Member) under Treasury Regulation §1.704-1(b)(2)(iv)(s)(1), the Company will first allocate any unrealized income,
gain, or loss in Company property (that has not been reflected in the Capital Accounts previously) to the exercising Member to
the extent necessary to reflect that Member’s right to share in Company capital under this Agreement, and then allocate
any remaining unrealized income, gain, or loss (that has not been reflected in the Capital Accounts previously) to the existing
Members, to reflect the manner in which the unrealized income, gain, or loss in Company property would be allocated among those
Members if there were a taxable disposition of such property for its fair market value on that date. For purposes of the preceding
sentence, if the exercising Member’s initial Capital Account as determined under Treasury Regulation §1.704-1(b)(2)(iv)(b)
and Treasury Regulation §1.704-1(d)(4) would be less than the amount that reflects the exercising Member’s right to
share in Company capital under this Agreement, then only income or gain may be allocated to the exercising Member from Company
properties with unrealized appreciation, in proportion to their respective amounts of unrealized appreciation. If the exercising
Member’s initial Capital Account, as determined under Treasury Regulation §1.704-1(b)(2)(iv)(b) and Treasury Regulation
§1.704-1(d)(4), would be greater than the amount that reflects the exercising Member’s right to share in Company capital
under this Agreement, then only loss may be allocated to the exercising Member from Company properties with unrealized loss, in
proportion to their respective amounts of unrealized loss. However, any allocation must take into account the economic arrangement
of the Members with respect to the property.

 

    	B-6

    	 	 	 

    

 

(d)
Pursuant to Treasury Regulation §1.704-1(b)(2)(iv)(s)(3), if, after making the allocations described in Treasury Regulation
§1.704-1(b)(2)(iv)(s)(2), the exercising Member’s Capital Account does not reflect that Member’s right to share
in Company capital under this Agreement, then the Company reallocates Company capital between the existing Members and the exercising
Member so that the exercising Member’s Capital Account reflects the exercising Member’s right to share in Company
capital under this Agreement (a Capital Account reallocation). Any increase or decrease in the Capital Accounts of existing Members
that occurs as a result of a Capital Account reallocation under Treasury Regulation §1.704-1(b)(2)(iv)(s)(3) must be allocated
among the existing Members in accordance with the principles of Treasury Regulation §1.704-1(b)(2)(iv)(s).

 

(e)
Pursuant to Treasury Regulation §1.704-1(b)(2)(iv)(s)(4), this Agreement requires corrective allocations (as set forth in
Treasury Regulation §1.704-1(b)(4)(x)) so as to take into account all Capital Account reallocations made under Treasury Regulation
§1.704-1(b)(2)(iv)(s)(3).

 

    	B-7

    	 	 	 

    

 

SCHEDULE
C

 

AMENDED
AND RESTATED LICENSE AGREEMENT AND SERVICES AGREEMENT

OF
WIZARD WORLDAND LICENSE AGREEMENT AND SERVICES AGREEMENT OF CINEDIGM

 

    	D-1

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