Document:

Exhibit 10.1

 

AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

CWI KEY BISCAYNE HOTEL, LLC

 

THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of CWI KEY BISCAYNE HOTEL, LLC (the “Company”) is entered into as of this 29th day of May, 2015, by CWI OP, LP, a Delaware limited partnership (the “CWI Member”), and CWI 2 OP, LP, a Delaware limited partnership (the “OP2 Member”).

 

SECTION 1

 

DEFINED TERMS

 

1.1                            The following capitalized terms shall have the meanings specified in this Section 1. Other terms are defined in the text of this Agreement;  and, throughout this Agreement, those terms shall have the meanings respectively ascribed to them.

 

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

 

“Affiliate” means, either (i) as to any Person, if applicable, any WP Carey Affiliate, or (ii) as to any Person, any other Person that, directly or indirectly, is in Control of, is Controlled by or is under common Control with such Person or is a director or officer of such Person or of an Affiliate of such Person.

 

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

 

“Annual LLC Budget” has the meaning set forth in Section 5.2.3.

 

“Bankruptcy” means, with respect to any Person, if such Person (i) makes an assignment for the benefit of creditors, (ii) files a voluntary petition in bankruptcy, (iii) is adjudged a bankrupt or insolvent, or has entered against it an order for relief, in any bankruptcy or insolvency proceedings, (iv) files a petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, liquidation or similar relief under any statute, law or regulation, (v) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against it in any proceeding of this nature, (vi) seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator of the Person or of all or any substantial part of its properties, or (vii) if 120 days after the commencement of any proceeding against the Person seeking reorganization, arrangement, composition, readjustment, liquidation or similar relief under any statute, law or regulation, if the proceeding has not been dismissed, or if within 90 days after the appointment without such Person’s consent or acquiescence of a trustee, receiver or liquidator of such Person or of all or any substantial part of its properties, the appointment is not vacated or stayed, or within 90 days after the expiration of any such stay, the appointment is not vacated.  The foregoing definition of “Bankruptcy” is intended to replace and shall supersede and replace the definition of “Bankruptcy” set forth in Sections 18-101(1) and 18-304 of the Act.

 

“Book Value” means for any asset the asset’s adjusted basis for Federal income tax purposes, except as follows:

 

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(a)                               The initial Book Value of any asset contributed by a Member to the Company shall be the gross fair market value of such asset, as reasonably determined by Managing Member.

 

(b)                              The Book Values of all Company assets shall be adjusted to equal their respective gross fair market values, as reasonably determined by Managing Member, as of the following times:  (i) the acquisition of an additional membership interest in the Company by any new or existing Member in exchange for more than a de minimis capital contribution if Managing Member reasonably determines that such adjustment is necessary or appropriate to reflect the relative economic interests of the Members in the Company; (ii) the distribution by the Company to a Member of more than a de minimis amount of Company property as consideration for a Membership Interest in the Company if Managing Member reasonably determines that such adjustment is necessary or appropriate to reflect the relative economic interests of the Members in the Company; and (iii) the liquidation of the Company within the meaning of Regulation Section 1.704-1(b)(2)(ii)(g);

 

(c)                               The Book Value of any Company asset distributed to any Member shall be the gross fair market value of such asset on the date of distribution, as reasonably determined by Managing Member;

 

(d)                             The Book Values of Company assets shall be increased (or decreased) to reflect any adjustment to the adjusted basis of such assets pursuant to Section 734(b) or Section 743(b) of the Code, but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m); and

 

(e)                               If the Book Value of an asset has been determined or adjusted pursuant to subparagraphs (a), (b) or (d) of this Section, such Book Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses.

 

“Capital Account” has the meaning set forth in Section 4.1.1.

 

“Capital Transaction” means (i) the refinancing of the Company or its subsidiaries; (ii) the sale, exchange or other disposition of any material part of the Company or all or substantially all of the Company; (iii) the dissolution of the Company; or (iv) any transaction not in the ordinary course of business which results in the Company’s receipt of cash or other consideration in an amount greater than One Hundred Thousand Dollars ($100,000) in the aggregate (other than Capital Contributions), including, without limitation, proceeds of sales, exchanges, or other dispositions of assets not in the ordinary course of business, condemnations, recoveries of damage awards, and insurance proceeds.

 

“Capital Transaction Proceeds” means all proceeds from a Capital Transaction less the sum of (i) any escrow or reserve required in connection with, or costs and expenses of the Company attributable to, such Capital Transaction, including, without limitation, any holdback escrow (or similar closing reserve or escrow, provided that, in each instance, all such reserves shall be deemed Capital Transaction Proceeds upon their subsequent release), taxes, prepayment fees or penalties, brokerage fees, escrow fees, title costs and expenses, appraisal fees, consultant fees, audit and tax costs, closing costs and expenses including attorneys’ fees (but excluding amounts paid from the Company’s reserves or funds provided by Capital Contributions and paid during such fiscal year (or portion thereof) for such costs and expenses); and (ii) reasonable reserves needed for the Company’s business for the remainder of such fiscal year and future periods based on the Initial LLC Budget or any subsequent Annual LLC Budget or otherwise approved by the Members.

 

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“Certificate of Formation” means the Certificate of Formation of the Company and any and all amendments thereto and restatements thereof filed on behalf of the Company with the Office of the Secretary of State of the State of Delaware pursuant to the Act.

 

“Code” means the Internal Revenue Code of 1986, as amended, or any corresponding provision of any succeeding law.

 

“Company” means CWI Key Biscayne Hotel, LLC, the limited liability company formed in accordance with this Agreement and the Act.

 

“Company Guaranties” has the meaning set forth in Section 5.5.

 

“Company Guarantor” has the meaning set forth in Section 5.5.

 

“Company Minimum Gain” has the meaning ascribed to the term “partnership minimum gain,” in the Regulations Section 1.704-2(d).

 

“CWI Member” has the meaning set forth in the Preamble.

 

“CWI Member Causation Event” means the occurrence of any event which results in a claim against the Company or Company Guarantor arising under the Company Guaranties, but only to the extent such event is caused by the unilateral act (or intentional or knowing omission) of CWI Member or its Affiliates (excluding OP2 Member) in breach of its obligations under this Agreement and/or such Company Guaranty; provided, however, that for the avoidance of any doubt, an CWI Member Causation Event shall expressly exclude any Neutral Event.

 

“Depreciation” means, with respect to any asset of the Company for each taxable year or other period, the amount of depreciation, amortization or other cost recovery deduction allowable with respect to such asset for such taxable year or other period, except that (a) if the Book Value of an asset differs from its adjusted basis for Federal income tax purposes at the beginning of any such taxable year or other period, Depreciation with respect to such asset for such Fiscal Year or other period shall be an amount which bears the same ratio to such beginning Book Value as the Federal income tax depreciation, amortization or other cost recovery deduction for such taxable year or period bears to such beginning adjusted tax basis; and (b) if an asset has a zero adjusted basis for Federal income tax purposes, Depreciation shall be determined under any reasonable method selected by Managing Member which is in accord with Federal income tax accounting principles applicable to assets of similar character having a positive adjusted basis for Federal income tax purposes.

 

“Indemnitee” has the meaning set forth in Section 5.8. 

 

“Indemnitor” has the meaning set forth in Section 5.8.

 

“Initial LLC Budget” has the meaning set forth in Section 5.2.3. 

 

“Major Decision” has the meaning set forth in Section 5.4.

 

“Managing Member” means CWI Member or any replacement or successor Managing Member appointed in accordance with this Agreement.

 

“Managing Parties” has the meaning set forth in Section 5.8.

 

“Member Nonrecourse Debt” has the meaning ascribed to the term “partner nonrecourse debt” in Regulations Section 1.704-2(b)(4).

 

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“Member Nonrecourse Debt Minimum Gain”  means an amount, with respect each Member Nonrecourse Debt, equal to the Company Minimum Gain that would result if such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations Section 1.704-2(i)(3).

 

“Members” means CWI Member and OP2 Member, as the initial members of the Company, and includes any Person admitted as an additional member of the Company or a substitute member of the Company pursuant to the provisions of this Agreement, each in its capacity as a member of the Company.

 

“Neutral Event” means any event which gives rise to a claim under any one or more of the Company Guaranties and which is caused by (i) any act by OP2 Member, in its capacity as Managing Member, to the extent such act (a) complies with the rights, duties and/or obligations of Managing Member under this Agreement and (b) is not the result of or caused by fraud, gross negligence, willful misconduct, theft, misappropriation of funds, and/or a material default in the performance of (or failure to perform) the obligations of Managing Member under this Agreement; or (ii) without limiting clause (i) above, any act or omission other than a CWI Member Causation Event or a OP2 Member Causation Event.

 

“Net Distributable Cash” shall mean, for any fiscal year, or portion thereof, revenues of the Company from any source and received in cash during such fiscal year, or portion thereof, and Company reserves set aside out of revenues during prior periods that are no longer needed for the Company’s business, less the sum of (i)  lease and administrative expenses of the Company including, without limitation, taxes, consultant fees and/or audit costs (but excluding amounts paid from the Company’s reserves or funds provided by Capital Contributions and paid during such fiscal year (or portion thereof) for such costs and expenses); (ii) debt service, partnership costs and/or operating expenses of the Company (as set forth in the Initial LLC Budget or any subsequent Annual LLC Budget); and (iii) reasonable reserves needed for the Company’s business for the remainder of such Fiscal Year and future periods based on the Initial LLC Budget or any subsequent Annual LLC Budget or otherwise approved by the Members.

 

“Nonrecourse Liability” has the meaning ascribed to such term pursuant to Regulations Section 1.704-2(b)(3).

 

“OP2 Member” has the meaning set forth in the Preamble.

 

“OP2 Member Causation Event” means the occurrence of any event which results in a claim against the Company or Company Guarantor arising under the Company Guaranties, but only to the extent such event is caused by the unilateral act (or intentional or knowing omission) of OP2 Member or its Affiliates (excluding CWI Member) in breach of its obligations under this Agreement and/or such Company Guaranty; provided, however, for the avoidance of any doubt, a OP2 Member Causation Event shall expressly exclude any Neutral Event.

 

“Participation Percentage” of a Member means that percentage set forth opposite such Member’s name on Exhibit “A”, as it may be amended from time to time.

 

“Permitted Transferee” means any transferee pursuant to (a) a transfer of any indirect interest in Owner in connection with a single Transfer or a series of Transfers by any Person of less than a five percent (5%), in the aggregate, interest in Carey Watermark Investors Incorporated and/or Carey Watermark Investors 2 Incorporated (provided Carey Watermark Investors Incorporated or Carey Watermark Investors 2 Incorporated, as applicable, continues as a publicly registered REIT); or (b) a Transfer to (i) W.P. Carey, Inc. (provided it continues as a publically traded company), Watermark Capital Partners, LLC, Carey Watermark Investors Incorporated (provided it continues as a publicly registered REIT), Carey Watermark Investors 2

 

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Incorporated (provided it continues as a publicly registered REIT), or any combination of the foregoing, (ii) any subsidiary of W.P. Carey, Inc., Watermark Capital Partners, LLC, Carey Watermark Investors Incorporated and/or Carey Watermark Investors 2 Incorporated or any combination of the foregoing (subject to the limitations set forth in clause (i) so long as such subsidiary is controlled by one or more of the foregoing entities (without regard to the percentage of equity ownership any of them may have in such entity)), or (iii) any existing or future real estate investment trust (REIT) or other investment fund managed or advised by any of the foregoing entities in clauses (i) or (ii) (subject, in each instance, to the limitations set forth in clause (i)).

 

“Person” means any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, any federal, state county or municipal government or any bureau, department or agency thereof, and any fiduciary acting in such capacity on behalf of any of the foregoing.

 

“Profits” and “Losses” means, for each fiscal year of the Company (or other period for which Profit or Loss must be computed), the Company’s taxable income or loss determined in accordance with Section 703(a) of the Code (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or loss), with the following adjustments:

 

(a)                               Any tax-exempt income of the Company, not otherwise taken into account in computing taxable income or loss, shall be included in computing Profits or Losses;

 

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

 

(c)                               In the event the Book Value of any Company asset is adjusted pursuant to Section 1.8(b), Section 1.8(d) or Section 1.8(e), the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the Book Value of the asset) or an item of loss (if the adjustment decreases the Book Value of the asset) from the disposition of such asset and shall be taken into account for purposes of computing Profits or Losses;

 

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

 

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

 

(f)                                To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Section 734(b) of the Code is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining the Capital Account as a result of a distribution other than in liquidation of a Membership Interest in the Company, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) from the disposition of such asset and shall be taken into account for purposes of computing Profits or Losses; and

 

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(g)                              Any items which are specially allocated pursuant to Exhibit “B” shall not be taken into account in computing Profits or Losses.

 

“Property Owner” has the meaning set forth in Section 2.3.

 

“Regulation” means the income tax regulations, including any temporary regulations, from time to time promulgated under the Code.

 

“Removal Event” means the occurrence of any of the following events with respect to the Managing Member: (i) the Managing Member, as the case may be, has (1) committed fraud, gross negligence or willful misconduct, in each case relating to the Company, or (2) misappropriated any funds of the Company or its subsidiaries (provided, however, that any fraud, gross negligence, willful misconduct or misappropriation of funds by a rogue employee of Managing Member acting without the authority or direction of Managing shall not constitute a Removal Event so long as appropriate action is taken against such employee and Managing Member promptly cures any and all damages actually sustained by the Company); (ii) any Bankruptcy action, liquidation or dissolution of the Managing Member; or (iii) with respect to OP2 Member only in its capacity as Managing Member, any change in control whereupon neither W.P. Carey Inc. nor Watermark Capital Partners, LLC cease to control the day-to-day operations of OP2 Member.

 

“Special Allocations” has the meaning set forth in Section 4.1.2. 

 

“Tax Matters Partner” has the meaning set forth in Section 8.4.

 

“Transfer”  means any encumbrance, gift, assignment, pledge, hypothecation, sale or other transfer, by operation of law or otherwise, of all or any direct or indirect portion of a membership interest in the Company.

 

“WP Carey Affiliate”  means any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, and any fiduciary acting in such capacity on behalf of any of the foregoing that, directly or indirectly, is in control of, is controlled by or is under common control with the Company or a WP Carey Entity, as applicable, or is a director or officer of the Company or a WP Carey Entity, as applicable.

 

“WP Carey Entity” means any corporation, limited liability company or partnership that (1) is an WP Carey Affiliate of the Company and (2) has or whose ultimate parent has a minimum net worth (as determined in accordance with GAAP) of not less than $100,000,000.

 

SECTION 2

 

FORMATION AND NAME:  OFFICE; PURPOSE; TERM

 

 

 

2.1                            Formation and Continuance.   The Company was formed as a limited liability company pursuant to the Act by the filing of a Certificate of Formation with the Office of the Secretary of State of the State of Delaware on September 29, 2014.  The Members hereby agree to continue the Company as a Delaware limited liability company pursuant to the provisions of the Act and this Agreement.  The Managing Member or an officer shall execute, deliver and file any other certificates (and any amendments and/or restatements thereof) necessary for the Company to qualify to do business in any other jurisdiction in which the Company may wish to conduct business.  The rights and liabilities of the Members shall be as provided under the Act, the Certificate of Formation and this Agreement.

 

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2.2                            Name of the Company.  The name of the Company shall continue to be “CWIKey Biscayne Hotel, LLC”.  The Company shall do business only under that name.

 

2.3                            Purpose.  The purposes of the Company shall be to hold the membership interests in GB Key Biscayne Holdings, LLC, a Delaware limited liability company (“Property Owner”), and to engage in any and all activities and take any and all actions necessary, appropriate, proper, advisable, or convenient or incidental to, the furtherance of the foregoing purposes.  The Company is not authorized to, and shall not, engage in any business other than as described in this Section.

 

2.4                            Term.  The Company was formed upon the filing of the Certificate of Formation and exists as a separate legal entity until the cancellation of the Certificate of Formation in the manner required by the Act.

 

2.5                            Registered Office.  The registered office of the Company required by the Act to be maintained in the State of Delaware shall be located at c/o Corporation Service Company, whose post office address is 2711 Centerville Road, Suite 400, Wilmington, New Castle County, Delaware 19808, or such other office (which need not be a place of business of the Company) as the Member may designate from time to time.

 

2.6                            Registered Agent.  The registered agent of the Company in the State of Delaware shall be Corporation Service Company, whose post office address is 2711 Centerville Road, Suite 400, Wilmington, New Castle County, Delaware 19808, or such other Person or Persons within the State of Delaware as the Member may designate from time to time.

 

2.7                            Principal Office.  The principal office of the Company shall be located at c/o Carey Watermark Investors Incorporated, 272  E. Deerpath, Suite 320, Lake Forest, Illinois 60045, or at any other place which the Member may designate from time to time.

 

2.8                            Fiscal Year.  The fiscal year of the Company shall end on the last day of December in each year.

 

2.9                            Considered a Partnership for Tax Purposes.  The Members intend that, pursuant to the provisions of Subchapter K of Chapter 1 of Subtitle A of the Code and/or any comparable provision of applicable state law, beginning as of the Effective Date, the Company will be treated as a partnership for Federal, state and local income tax purposes.  Each Member agrees not to make or attempt to make an election under Section 761 of the Code or to be excluded from the application of Subchapter K or from the application of any comparable provisions of applicable state law.  The Company and the Members shall not elect classification of the Company for Federal tax purposes as other than a partnership under Regulations Section 301.7701-3 or for state and/or local tax purposes under such comparable provisions of applicable state or local law.

 

2.10                    Protection of REIT Status.   The Members acknowledge that CWI Member and OP2 Member are each Affiliates of a real estate investment trust (the “REIT”), and the Members agree to manage the Company (and any other entity in which the Company owns an interest) in a manner (i) that enables the REIT to qualify as a real estate investment trust within the meaning of Section 856 of the Code; and (ii) that recognizes the income, asset and operating requirements of the Code that are applicable to a real estate investment trust under Sections 856 through 860 of the Code to the extent possible.  Therefore, the Company shall conduct its operations in accordance with the following limitations:

 

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(a)                               The Business and affairs of the Company will be managed in a manner that does not cause the REIT to be disqualified as a real estate investment trust under the Code or incur any amount of tax pursuant to Section 856, 857 or 4981 of the Code;

 

(b)                              The Company and its Subsidiaries shall not render any services to any lessee or sublessee or any customer thereof, either directly or through an “independent contractor” within the meaning of Section 856(d)(3) of the Code, if the rendering of such services would cause all or any part of the rents received by the Company or its Subsidiaries to fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code;

 

(c)                               The Company and its Subsidiaries shall not directly or indirectly own (taking into account the attribution rules referred to in Section 856(d)(5) of the Code), in the aggregate ten percent (10%) or more of the total number of shares of all classes of stock, ten percent (10%) or more of the voting power of all classes of voting stock or ten percent (10%) or more of the assets or net profits of any lessee or sublessee of all or any part of any of the Property or other Company property, other than a lessee Subsidiary that makes an election by filing IRS Form 8875 to be treated as a “taxable REIT subsidiary” under Section 856(l)(1) of the Code;

 

(d)                             No lease or sublease of any space at any Company or Subsidiary property shall provide for any rent based in whole or in part on the “income or profits” derived by any lessee or sublessee from such property within the meaning of Section 856(d)(2)(A) of the Code;

 

(e)                               The Company and its Subsidiaries shall not own more than ten percent (10%) of the total voting power or more than ten percent (10%) of the total value of the outstanding securities of any one issuer (as determined for purposes of Section 856(c)(4)(B) of the Code) other than securities of a subsidiary, including, without limitation, the TRS SUB that makes an election by filing IRS Form 8875 to be treated as a “taxable REIT subsidiary” under Section 856(l)(1) of the Code;

 

(f)                                Any Subsidiary that is treated as a corporation under the Code (other than a “real estate investment trust”) shall make an election by filing IRS Form 8875 to be treated as a “taxable REIT subsidiary” under Section 856(l)(1) of the Code;

 

(g)                              Any Subsidiary that has made an election to be treated as a “taxable REIT subsidiary” under the Code shall not directly or indirectly operate a “lodging facility” or a “health care facility” as such terms are defined in Section 856 of the Code but rather shall use, to operate any “lodging facility,” an “eligible independent contractor” within the meaning of Section 856(d)(9)(A) of the Code (e.g., without limitation, such contractor must be actively engaged in the trade or business of operating “qualified lodging facilities” for Persons other than those that are related to the Company, its Members or any Subsidiary), provided that, in the case of any “lodging facility,” no gambling activities are conducted on the premises and no gambling revenues are generated by the facility;

 

(h)                              Neither the Company and its Subsidiaries, nor any Member shall take any action (or fail to take any action permitted under this Agreement) that would otherwise cause the Company’s gross income to consist of more than one percent (1%) of income not described in Section 856(c)(2) of the Code or more than ten percent (10%) of income not described in Section 856(c)(3) of the Code, or cause any significant part of the Company assets to consist of assets other than “real estate assets” within the meaning of Section 856(c)(5)(B) of the Code;

 

(i)                                  The Company shall distribute to the Members during each calendar year an amount of cash mutually agreed upon by the Members, but in no event in an amount less than that which is necessary to comply with the requirements of a real estate investment trust, to be

 

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made to the Members with respect to such Fiscal Year at the times required to prevent the imposition of an excise tax under Section 4981 of the Code; provided, however, that if each such Member’s distributable share of any Net Distributable Cash and/or Capital Transaction Proceeds and its distributable share of any funds maintained in the Company reserves are insufficient to meet the aforesaid distribution requirement with respect to such Member, then the Company shall have satisfied the foregoing distribution requirement with respect to such Member upon distributing to it such Member’s distributable share of Net Distributable Cash and/or Capital Transaction Proceeds and funds maintained in the Company reserves.  In no event shall the Company be required to borrow funds, or any Member be required to contribute funds to the Company, in order to permit the Company to satisfy the foregoing distribution requirement.  The foregoing provisions of this subsection shall not, however, adversely affect the allocation of, or any Member’s Participation Percentage in, Net Distributable Cash and/or Capital Transaction Proceeds; or

 

(j)                                  The Company and its Subsidiaries shall not engage in any “prohibited transactions” within the meaning of Section 857(b)(6)(B)(iii) of the Code.

 

The Members acknowledge that the foregoing are the current guidelines applicable to the qualification of real estate investment trusts.  If any of the requirements to qualify for “real estate investment trust” status are changed, such changes shall be deemed incorporated herein, and this Section 2.10 shall be deemed amended as necessary to incorporate such changed real estate investment trust requirements.

 

2.11                    Dispute Resolution Regarding REIT Compliance.   Notwithstanding anything to the contrary in this Agreement, any dispute over whether an activity of the Company is in violation of Section 2.10 shall be determined in the sole and absolute discretion of the Non- Managing Member.

 

SECTION 3

 

CAPITAL CONTRIBUTIONS

 

3.1                            Capital Contributions.  The Members shall make such capital contributions to the Company at such times, and in such amounts, as the Managing Member shall determine in its sole discretion.  Except as provided in the immediately preceding sentence, the Members shall not be required to make any additional capital contributions or loans to the Company.  If Managing Member reasonably determines that the Members shall make additional capital contributions or loans to the Company, then such additional capital contribution shall be contributed or made, as applicable, by the Members in accordance with their respective Participation Percentages.  Managing Manager shall deliver a notice (a “Cash Notice”) to each Member setting forth the amount of cash required from such Member (a “Required Amount”). Within the twenty (20) day period following the date of receipt by a Member of a Cash Notice, the Member shall contribute to the Company its Required Amount.  If within twenty (20) days after the date a Cash Notice is given, a Member (the “Non-Contributing Member”) shall fail to advance all or any part of its Required Amount, the other Members (the “Contributing Members”), within ten (10) days thereafter, may elect, in their sole discretion either (i) to advance directly to the Company as a loan to the Non-Contributing Member the portion of the Required Amount not advanced by the Non-Contributing Member (the “Deficiency Amount” ans such loan hereinafter referred to as a “Deficit Loan”); or (ii) advance a capital contribution to the Company equal to the Deficiency Amount, whereupon the Participation Percentage of the Members shall be recalculated to (A) increase the Contributing Member(s)’ collective Participation Percentage by the Applicable Adjustment Percentage (as defined below) and increasing their aggregate Capital Accounts by the product of the Deficiency Amount and the Dilution Multiplier (as defined below), with such increases in Participation Percentage and

 

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Capital Accounts to be allocated to the Contributing Members(s) pro rata based on the portion of the Deficiency Amount owed to each Contributing Member, and (B) reduce the Non- Contributing Member’s Participation Percentage by the Applicable Adjustment Percentage and decrease its Capital Account by the product of the Deficiency Amount and the Dilution Multiplier.  The “Applicable Adjustment Percentage” shall mean the fraction, expressed as a percentage, in which the numerator is an amount equal to the Dilution Multiplier times the Deficiency Amount, and the denominator is the sum of the Member’s total Capital Contribution (taking into account any additional Capital Contributions funded by the Contribution Member(s)).  The “Dilution Multiplier” shall mean 1.0.  Unless they mutually agree otherwise, the Contributing Members shall fund such loan pro rata in proportion to their respective Participation Percentages.  Each Deficit Loan shall bear interest at the annual rate of ten percent (10%), compounded annually, and shall be repaid within ten (10) days following demand by the Contributing Members upon the Non-Contributing Member, or until demand is made, by payment directly by the Company to the Contributing Members of any distributions otherwise due the Non-Contributing Member pursuant to the other Sections of this Agreement; provided, however, that for Capital Account maintenance purposes, such amount shall be deemed distributed to the Non-Contributing Member (with a corresponding reduction to its Capital Account) followed by the repayment by the Non-Contributing Member to the Contributing Member.  Any payments on a Deficit Loan shall be credited first to any interest then due on the loan with the balance of such distributions to be credited against the outstanding principal balance of such loan.  Any Deficit Loan will be recourse to the Non-Contributing Member’s right to distributions pursuant to this Agreement and must be repaid directly by the Company on behalf of the Non-Contributing Member as set forth in this Section 3.1.  For avoidance of doubt, no Deficit Loan shall be considered a capital contribution by the Contributing Member for purposes of this Agreement or increase such Contributing Member’s Capital Account.  Any Deficit Loan may be structured in a manner that causes the REIT to comply with the requirements of Section 2.10.

 

3.2                            Interest on Contributions.   No interest shall be paid by the Company on any capital contribution made by any Member to the Company.

 

3.3                            Return of Contributions.   Except as otherwise provided in this Agreement, no Member shall have the right to withdraw or reduce such Member’s capital contribution or to receive any distributions, except as a result of dissolution.  No Member shall have the right to demand or receive property other than cash in return for such Member’s capital contributions.

 

SECTION 4

 

PROFIT, LOSS AND DISTRIBUTIONS

 

4.1                            Capital Accounts.

 

4.1.1                The Company shall maintain a separate capital account (“Capital Account”) for each Member.

 

4.1.2                The Capital Account of each Member shall be maintained in accordance with Sections 1.704-1(b) and 1.704-2 of the Regulations and shall be interpreted and applied in a manner consistent with such Regulations and the special allocations set forth in Sections (a) through (i) of Exhibit “B” attached hereto shall apply (the “Special Allocations”).

 

4.1.3                Each Member’s Capital Account shall be adjusted in accordance with the following provisions:

 

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(a)                               To each Member’s Capital Account there shall be credited (i) the amount of any cash Capital Contributions made, and the Book Value of any property contributed (net of liabilities secured by such property), by such Member to the Company, and (ii) such Member’s allocable share of Profits and other items of income and gain allocated to such Member; and

 

(b)                              To each Member’s Capital Account there shall be debited (i) the amount of cash and the Book Value of any Company property distributed to such Member pursuant to any provision of this Agreement (net of any liabilities secured by such property), and (ii) such Member’s allocable share of Losses and other items of income and gain allocated to such Member.

 

4.1.4                     In the event of a Transfer of a Member’s Membership Interest, or any portion thereof, in accordance with the terms of this Agreement, whether or not the purchaser, assignee or successor-in-interest is then a Member, the Person so acquiring such Member’s Membership Interest, or any portion thereof, shall acquire the Capital Account, or any portion thereof, of the Member formerly owning such Membership Interest, adjusted for distributions of Net Distributable Cash and/or Capital Transaction Proceeds made pursuant to Section 8 and allocations of Profits and Losses made pursuant to Section 4.2.

 

4.2                            Allocation of Profits and Losses.  After giving effect to the Special Allocations set forth in Exhibit “B” attached hereto, Managing Member shall cause the Company to allocate Profits and Losses in respect of each fiscal year of the Company (and, in each case, each item of income, gain, loss, deduction and tax preference, required to be taken into account by the Members separately under Section 702(a) of the Code, which are included in the computation of such Profits and Losses for such year) to the Members in a manner such that the Capital Account of each Member is, as nearly as possible, equal (proportionately) to the excess of:

 

(a)                               the distributions that would be made to that Member pursuant to Section 4.1 if:

 

(i)                                  the Company were dissolved, its affairs wound up and its assets sold for an amount of cash equal to their Book Values;

 

(ii)                              all liabilities of the Company were satisfied (limited with respect to each non-recourse liability to the Book Value of the assets securing such liability); and

 

(iii)                          the assets of the Company were distributed to the Members in accordance with Section 4.5 immediately after making such allocation; over

 

(b)                              the sum of (i) the Member’s respective share of Company Minimum Gain and Member Nonrecourse Debt Minimum Gain; and (ii) the amount, if any, that such Member is obligated (or deemed obligated) to contribute, in its capacity as a Member, to the Company, computed immediately prior to the hypothetical sale of assets described in Section 4.2(a).

 

4.3                    Other Allocation Rules.

 

4.3.1                For purposes of determining Profits, Losses or any other items allocable to any period, Profits, Losses and other items shall be determined on a daily, monthly or other basis, as determined by Managing Member, using any permissible method under Section 706 of the Code and the Regulations thereunder.  However, Profits, Losses and other items realized as a result of a Capital Transaction shall be allocated based on the interim closing of the books method.

 

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4.3.2                Credits, or income resulting from the recapture of credits, shall be allocated among the Members in accordance with the Code, Regulations and Applicable Law.

 

4.3.3                Whenever items of income or loss of the Company allocable hereunder consist of items of different character for tax purposes (i.e., ordinary income, long-term capital gain, depreciation recapture, interest expense, etc.) the items of income or loss of the Company allocable to each Member shall include, to the extent possible, its pro rata share of each such item; provided, however, in making allocations of depreciation recapture under Section 1245 or Section 1250 of the Code, or unrecaptured Section 1250 gain under Section 1(h) of the Code, principles consistent with those of Regulations Section 1.1245-1(e) shall be followed such that amounts treated as ordinary income shall be allocated first to the Member that was allocated the related ordinary deduction.

 

4.3.4                The Members are aware of the income tax consequences of the allocations made by this Article 4 and Exhibit “B” attached hereto and hereby agree to be bound by the provisions of this Article 4 and Exhibit “B” attached hereto in reporting their shares of Company income and loss for income tax purposes.

 

4.3.5                If the Book Value of any Company asset is adjusted as provided in the definition thereof, subsequent allocations of income, gain, loss and deduction with respect to such asset shall, solely for Federal income tax purposes and pursuant to Regulations Section 1.704-1(b), take account of any variation between the adjusted basis of such asset for Federal income tax purposes and its Book Value in the same manner as under Section 704(c) of the Code and the Regulations thereunder.

 

4.4                            Tax Allocations.

 

4.4.1                Except as provided in Section 4.4.2, items of Company income, gain, loss, deduction and credit shall be allocated, for Federal, state and local income tax purposes, among the Members in accordance with the allocation of such income, gain, losses, deductions and credits among the Members under Section 4.2.

 

4.4.2                In accordance with Section 704(c) of the Code and the Regulations thereunder, income, gain, loss and deduction with respect to any property contributed to the capital of the Company shall, 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 initial Book Value in accordance with such method as selected by the Members.  In accordance with Section 704(c) of the Code and the Regulations thereunder, income, gain, loss and deduction with respect to any property contributed to the capital of the Company shall, 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 initial Book Value in accordance with such method as selected by Managing Member.  To achieve the foregoing intent, the Company shall use the traditional method under Section 704(c)  of the Code and the Regulations promulgated thereunder.

 

4.5                    Distributions.

 

4.5.1                The Company shall distribute all available Net Distributable Cash in accordance with this Section 4.5.  Subject to Section 4.7, Net Distributable Cash of the Company shall be distributed from time to time to the Members pro rata in accordance with their respective Participation Percentages.

 

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4.5.2                The Members intend that the Initial LLC Budget and any subsequent Annual LLC Budget shall include, as an expense item, such reasonable and customary Company reserves to be mutually agreed upon by the Members from time to time, and the Members agree that distributions to the Members according to this Agreement will not be made if such distributions have the effect of impairing such Company reserves.  The amount of the reserves for each fiscal year shall be determined by Managing Member at the time that it presents any draft budget each year to the Members, but the approval of such reserves shall be a Major Decision.

 

4.5.3                Notwithstanding any other provision to the contrary, upon the approval of the Members, the Company may withhold from any amount otherwise distributable to the Members any taxes payable by the Company with respect to amounts allocable or distributable to any Member.  Any amounts so withheld shall be paid by the Company to the appropriate taxing authority and shall be treated as amounts distributed to the Member.

 

4.6                            Distributions of Cash from Capital Transactions.  Subject to Section 4.7, Capital Transaction Proceeds shall be distributed following a Capital Transaction, in the same order of priority and in accordance with Section 4.5.1.

 

4.7                            To Whom Distributions Are Made.   Unless named in this Agreement or unless admitted as a Member as provided in this Agreement, no Person shall be considered a Member in the Company.  Any distribution by the Company to the Person shown on the Company records as a Member, or to such Member’s legal representatives, or to a named assignee of the right to receive distributions, shall acquit the Company and the Members of all liability to any other Person who may be interested in such distribution by reason of an assignment by a Member or for any other reason.  Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make a distribution to a Member on account of its interest in the Company if such distribution would violate the Act or any other applicable law.

 

SECTION 5

 

MANAGEMENT; RIGHTS, POWERS AND DUTIES; RESTRICTIONS ON POWERS

 

5.1                    Managing Member.

 

(a)                               Managing Member shall, subject to the limitations set forth in Sections 5.3 and 5.4, be empowered to set policy for and to make all decisions in respect of the Company and to make all decisions regarding those matters, and to perform any and all other acts or activities incident thereto.  Managing Member may be removed from its position as Managing Member by the other Member (the “Removing Member”) only upon the determination of a Removal Event in accordance with Section 5.1(b) below and, upon such removal, the Removing Member shall thereafter serve as the Managing Member of the Company.

 

(b)                              In the event a Removing Member believes that a Removal Event has occurred with respect to Managing Member, the Removing Member may deliver written notice (the “Removal Notice”)  to the Member (or non-Member, if applicable)  then-serving as Managing Member (the “Removed Party”) setting forth in reasonable detail the basis for that determination.  If, after the receipt of a Removal Notice, the Removed Party does not resign in its capacity as Managing Member, as the case may be, within five (5) days after its receipt of the Removal Notice, the Removing Member may (i) with respect to a Removal Event described in clause (ii) or clause (iii) of the definition of “Removal Event”, remove the Removed Party from

 

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its position as Managing Member, as the case may be, upon written notice thereof to the Removed Party and without any further action required by the Removing Member, and the Removing Member shall become the Managing Member, or (ii) with respect to a Removal Event described in clause (i) of the definition of “Removal Event”, submit the same to arbitration pursuant to Section 9.10.  Upon a final decision or judgment of the arbitrator that a Removal Event has occurred pursuant to clause (i) of the definition of “Removal Event”, the Removed Party shall be removed as Managing Member and the Removing Member shall become the Managing Member.  In the event a Removal Notice is delivered with respect to a Removal Event that allegedly occurred with respect to CWI Member, then CWI Member’s authority as Managing Member under this Agreement shall be suspended, and any and all action to be taken on behalf of the Company or any of its subsidiaries shall require the unanimous written approval of the Members during the period from the delivery of the Removal Notice until the final determination of the arbitrator as to whether such Removal Event did in fact occur.

 

5.2                            Duties and Responsibilities of Managing Member.

 

5.2.1                Except as set forth in Sections 5.3 and 5.4, Managing Member shall be responsible for, and is hereby authorized to use reasonable efforts to perform acts to the extent necessary to carry out the business affairs of the Company under this Agreement.

 

5.2.2                Managing Member will devote such time, effort and skill to the business of the Company as Managing Member reasonably determines necessary.

 

5.2.3                Each fiscal year, commencing on January 1, 2016, Managing Member shall prepare an annual business plan and operating budget for the Company including Managing Member’s good faith estimates of all partnership costs including, without limitation, estimated costs and expenses of any audits, compliance costs and/or third-party fees, costs and expenses. Each draft budget shall be delivered to the Members not later than thirty (30) calendar days before the beginning of the fiscal year in question.  The approval of any draft budget shall be a Major Decision pursuant to Section 5.4(a).  Once a draft budget is approved, it shall be the “Annual LLC Budget” for the Company for the fiscal year in question.  The “Initial LLC Budget” for the partial fiscal year 2015 shall be prepared promptly after execution of this Agreement and submitted to the Members for approval as a Major Decision.

 

5.3                    Actions by Managing Member.  In addition to the duties and responsibilities of Managing Member described in Section 5.2, and except as expressly set forth to the contrary, subject to the limitations of the Initial LLC Budget or the subsequent Annual LLC Budgets and those Major Decisions set forth in Section 5.4(a), as applicable, Managing Member shall have control over all decisions of the Company and may exercise any and all rights of the Company without the consent of the other Members, including, without limitation, the following actions:

 

(a)                               In accordance with the Initial LLC Budget and any subsequent Annual LLC Budget, retain or employ, and coordinate the services of, any employees, attorneys and other persons to carry out the business of the Company;

 

(b)                              In accordance with the Initial LLC Budget or any subsequent Annual LLC Budget, enter into any contract in the name of or for the benefit of the Company;

 

(c)                               Retain legal counsel for the Company in connection with any matter involving an uninsured claim;

 

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(d)                             Initiate or settle any litigation of Five Hundred Thousand Dollars ($500,000) or less on behalf of the Company or undertake any course of defense in connection with any litigation brought against the Company, or settle any litigation concerning the Company;

 

(e)                               Settle any insurance claim on behalf of the Company; and

 

(f)                                Approve or effectuate any program of insurance for the Company.

 

5.4                            Major Decisions.   Except as otherwise expressly set forth in this Agreement, neither Managing Member nor any of the Members may take any of the following actions on behalf of the Company without the prior approval of both Members (the “Major Decisions”):

 

(a)                               Approve any proposed Annual LLC Budget under Section 5.2.3;

 

(b)                              Initiate or settle any litigation of more than Five Hundred Thousand Dollars ($500,000) on behalf of the Company or undertake any course of defense in connection with any litigation brought against the Company, or settle any litigation concerning the Company;

 

(c)                               File any voluntary petition under Title 11 of the United States Code, the Bankruptcy Act, or seek the protection of any other Federal or State bankruptcy or insolvency law or debtor relief statute or consenting to the institution or continuation of any involuntary bankruptcy proceeding or the admission in writing of the inability to pay debts generally as they become due; or the making of a general assignment for the benefit of creditors;

 

(d)                             Except for installment sales contracts for personal property or equipment in the ordinary course of business, trade payables and/or accounts payable incurred in the ordinary course of business: (i) approving the terms and conditions of any loan and/or other indebtedness of the Company or its subsidiaries for borrowed money (including without limitation, approval of all loan documents); (ii) approving the terms and conditions of any material modification, amendment or refinancing of any loan or other financing to the Company or its subsidiaries;

 

(e)                               Dissolve or liquidate the Company;

 

(f)                                Admit an additional Member to the Company except as otherwise permitted pursuant to Article 6;

 

(g)                              Approve any Transfers except as otherwise permitted pursuant to Article 6; 

 

(h)          Effect a merger, conversion, consolidation or other reorganization of the Company;

 

(i)                                  Enter into any contract or agreement with an Affiliate of the Company or of one of the Members; or

 

(j)                                  Amend the Certificate or this Agreement.

 

Except as otherwise expressly set forth in this Agreement, any approval, consent, agreement, or exercise of judgment or other determination to be made by a Member with respect to a Major Decision may be withheld in such Member’s sole and absolute discretion. If the Members are unable, after due consideration, to reach an agreement on any

 

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Major Decision described in this Section 5.4, such failure shall constitute an “Impasse” hereunder.

 

5.5                            Project Financing; Guarantees.  The Members acknowledge and agree that in connection with any financing or refinancing of the Company and/or Property Owner or their respective direct and indirect interests, a lender may require one or more Members or their Affiliates (as applicable, “Company Guarantor”) to provide certain guaranties in connection with obtaining any financing or refinancing including, without limitation, a completion guaranty, an environmental indemnity and a non-recourse carve-out guaranty or such other guaranty(ies) required by such lender (collectively, the “Company Guaranties”).  The Members acknowledge that Carey Watermark Investors Incorporated shall be the initial Company Guarantor; provided, however, subject to the requirements or limitations of the applicable lender, Managing Member or a creditworthy Affiliate of Managing Member may agree to provide an alternative Company Guarantor in connection with any financing or refinancing, in each case subject to the terms of this Section 5.5.  If demand is made on the Company or any Company Guarantor providing a Company Guaranty for payment or performance under any Company Guaranty, then the Person receiving such demand shall immediately forward copies of such demand to each Member and the other guarantors of the same or a related obligation, if any.  If a claim arises under any of the Company Guaranties that results from a Neutral Event, each Member shall be liable to Company Guarantor for their pro rata share of the total liability incurred thereunder (based on each Member’s respective Participation Percentages at the time of such loss), and each Member hereby indemnifies and agrees to hold Company Guarantor harmless from and against any claim that Company Guarantor may sustain or incur as a result of such claim.  If an CWI Member Causation Event should occur, then CWI Member shall be solely liable for any and all claims made by such lender as a result of such CWI Member Causation Event, and CWI Member shall indemnify and agrees to hold Company Guarantor, the Company and OP2 Member (and its Affiliates and their respective officers, directors, principals, members and agents but expressly excluding CWI Member) harmless from and against any claim that such indemnified party may sustain or incur as a result of such claim made by such lender as a result of the CWI Member Causation Event.  If a OP2 Member Causation Event should occur, then OP2 Member shall be solely liable for any and all claims made by such lender as a result of the OP2 Member Causation Event, and OP2 Member shall indemnify and agrees to hold Company Guarantor, the Company and CWI Member (and its Affiliates and their respective officers, directors, principals, members and agents but expressly excluding OP2 Member) harmless from and against any claim that such indemnified party may sustain or incur as a result of such claim made by a lender as a result of such OP2 Member Causation Event.  For avoidance of doubt, in the event that either Member funds any amount in connection with a Neutral Event, then such funding shall be an additional Capital Contribution to the Company equal to the amount so paid which shall be treated in the same manner as a Capital Contribution made pursuant to Section 3.1; provided, however, if CWI Member funds any amount as the result of a CWI Member Causation Event or OP2 Member funds any amount as a result of a OP2 Member Causation Event, such funding Member shall not receive any credit for any Capital Contribution made in connection therewith.  In the event that either Member fails to fund any amount required to be funded by such Member under this Section 5.5, then, in additional to all other rights and remedies that Company Guarantor or the applicable Member may have on account thereof (under this Agreement or otherwise at law or in equity), if the other Member funds all or any portion of the non-funding Member’s obligations under this Section 5.5, then the funding Member shall be deemed to be a “Non-Contributing Member” under Section 3.1 with respect to the amount so funded and may make the elections with respect thereto provided in Section 3.1.

 

5.6                            Member Approval.   No annual or regular meetings of the Members are required to be held.  In any instance in which the approval of the Members is required under this Agreement, such approval may be obtained in any manner permitted by the Act.  Unless otherwise provided in this Agreement, approval of the Members shall mean the unanimous

 

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written approval of the Members.  Notwithstanding the foregoing, the Members will use their respective reasonable efforts to meet at least one time each calendar quarter via teleconference and at least once each fiscal year in person to discuss the operation, management and performance of the Company.

 

5.7                            Execution of Documents.  Except as otherwise expressly set forth in this Agreement, each check, contract, deed or act of sale or similar conveyance document, lease, promissory note, mortgage, escrow instruction, bond, release or any other documents of any nature whatsoever, in any way pertaining to the Company shall be signed by Managing Member or the person or persons designated from time to time by Managing Member.

 

5.8                            Liability/Indemnification.

 

5.8.1  Each Member and its Affiliates, and their respective partners, members, shareholders, other principals, directors, officers, employees, agents and other representatives (collectively, the “Managing Parties”) shall not be liable, responsible or accountable, in damages or otherwise, to any other Member or to the Company for any act performed by them within the scope of the authority conferred upon them by this Agreement, except for fraud, willful misconduct or gross negligence.  The Company shall, out of Company assets (but not the assets of any Members), indemnify and hold the Managing Parties harmless for any act performed by them within the scope of the authority conferred upon them, except for (i) fraud;  (ii) willful misconduct;  (iii) gross negligence; or (iv) acts or omissions which are beyond the scope of its authority hereunder (and which were taken without a good faith belief the same were within such scope of authority hereunder).  Except to the extent that any Member incurs loss or damage caused by the act or omissions under clauses (i) through (iv) above, the Company shall, out of Company assets (but not the assets of any Members), indemnify and hold the Managing Parties harmless from and against any personal loss or damage incurred by them arising from any act performed by them for and on behalf of the Company or arising out of any business of the Company.

 

5.8.2                An indemnitee (an “Indemnitee”) who desires to make a Claim against an indemnitor (an “Indemnitor”) under this Section 5.8 shall notify the Indemnitor of the claim, demand, action or right of action which is the basis of such Claim within twenty (20) calendar days of discovering such claim, and shall give the Indemnitor a reasonable opportunity to participate in the defense thereof.  Failure to give such notice shall not affect the Indemnitor’s obligations hereunder, except to the extent of any actual prejudice resulting therefrom.  Any cash distributions to which the Indemnitor would otherwise be entitled under this Agreement shall be reduced by any amounts the Indemnitor is required to pay pursuant to this Section 5.8, and instead shall be paid to the Indemnitee entitled to indemnity, up to the full amount of the indemnity obligation.

 

5.9                            Officers.  The Member may, from time to time, appoint (and subsequently remove) individuals to act on behalf of the Company as officers of the Company within the meaning of Section 18-407 of the Act to conduct the day-to-day management of the Company with such general or specific authority as the Member may specify and are permitted or authorized in this Agreement.  The officers of the Company may include, but are not limited to, a Chief Executive Officer, President, Vice President, Secretary and Chief Financial Officer.  The Chief Executive Officer, President and Vice President shall have the power to execute all documents and take all actions on behalf of the Company with the same authority as the Member is permitted under this Agreement.  The officers shall serve at the pleasure of the Member.  Any individual may hold any number of offices.  An officer need not be a member of the Company. The initial Chief Executive Officer and President of the Company is Michael G. Medzigian and the initial Vice President and Treasurer of the Company is George Gudgeon and the initial Vice President and Secretary of the Company is Gil Murillo.

 

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SECTION 6

 

TRANSFER OF INTERESTS

 

6.1                            Limitations on Transfers.   Except as set forth in Sections 6.2, 6.3 and 6.4, no Member shall for any reason, whether voluntarily, involuntarily or by operation of law, Transfer all or any of such Member’s direct or indirect membership interest, without the prior unanimous written consent of the Members.  To the fullest extent permitted by law, any Transfer not expressly permitted in this Agreement shall be null and void and of no legal effect.  A transferee of any direct membership interest shall have the right to become a substitute Member only if (a) unanimous consent of the Members is given; (b) such Person executes an instrument satisfactory to Managing Member accepting and adopting the terms and provisions of this Agreement; and (c) such Person pays any reasonable expenses in connection with such Person’s admission as a substitute Member.  The admission of a substitute Member shall not release the Member who assigned the membership interest from any liability that such Member may have to the Company.

 

6.2                            Permitted Transfers.  Notwithstanding anything to the contrary set forth in Section 6.1, the Members hereby consent to any Transfer to a Permitted Transferee.  Transfers made pursuant to this Section 6.2 will not be subject to the Right of First Offer as set forth in Section 6.3.

 

6.3                            Right of First Refusal on Transfer.

 

Except for the case of a Transfer to a Permitted Transferee, a Member (the “Selling Member”), upon receiving a bona fide offer, whether written or oral, by a third party to acquire all or any portion of such Selling Member’s membership interest which the Selling Member is willing to accept, or upon making a bona fide offer, whether written or oral, to a third party to sell, Transfer or assign all or any of the Selling Member’s membership interest (either of such types of offers is referred to herein as the “Offer”), shall give written notice thereof (the “Sale Notice”) to the Company and the other Member (the “Offered Member”).  The Sale Notice shall specify:

 

The portion of and identity of the membership interest proposed to be Transferred (the “Offered Interest”);

 

The identity of the proposed transferee;

 

The consideration to be received for the Offered Interest (including the value of any non-monetary consideration and the method for determining such value); and 

 

The terms and conditions upon which the Selling Member intends to make the Transfer.

 

The Sale Notice shall be accompanied by a true and complete copy of the Offer, if it is written, and shall constitute an offer by the Selling Member to Transfer the Offered Interest to the Offered Member as more fully set forth below.

 

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The Offered Member shall have the right to purchase all (and only all) of the Offered Interest at a price equal to the price (the “Offered Price”), and upon such other terms set forth in the Offer.  The Offered Member may exercise its right to purchase only by giving written notice thereof to the Selling Member (the “Acceptance Notice”), within thirty (30) days after the date on which the Offered Member received the Sale Notice.

 

If the Offered Member does not accept the Offer by the end of the thirty (30) day period, then notwithstanding this Section 6.3, the Selling Member shall have the right, within six (6) months, to sell the Offered Interest to another transferee, on terms that are not materially less favorable than contained in the Offer.  In the event that the Offered Member elects to purchase the Offered Interest, the Offered Member shall complete such purchase and pay the Offered Price no later than ninety (90) days after Selling Member’s timely receipt of the Acceptance Notice.  No transfer of an Offered Interest can be made to a transferee which does not, in the reasonable judgments of the Offered Member, meet the Qualified Transferee Requirements.  For purposes of this Section 6.3(c), “Qualified Transferee Requirements” means a Person who: (i) has reasonably sufficient financial resources and liquidity to fulfill the transferring Member’s obligations under this Agreement, (ii) is not known in the community as being of bad moral character, and has not been convicted of a felony in any state or Federal court, and (iii) is not an Affiliate of Persons who have been convicted of a felony in any state or Federal court.

 

6.4                    Buy/Sell.

 

(a)                               At any time after thirty (30) days following receipt of a written request for the approval of any Major Decision, if an Impasse is continuing, either Member (the “Offering Member”) may, in its sole and absolute discretion, deliver written notice (the “Buy- Sell Notice”) to the other Member (the “Responding Member”), proposing a Total Value which would be the basis for calculating the applicable price (“Applicable Price”) at which the Offering Member is willing to either (i) sell to the other Member all of the Offering Member’s membership interest; or (ii) purchase from the other Member all of the other Member’s membership interest.  The Buy-Sell Notice shall be accompanied by a letter or other statement signed by a bank or trust company confirming that the Offering Member has deposited with such bank or trust company the amount of Two Hundred Fifty Thousand Dollars ($250,000) (the “Deposit”).  The Responding Member shall have a period of thirty (30) days after receipt of the Buy-Sell Notice in which to elect, by written notice to the Offering Member (the “Response Notice”), to either (A) purchase all of the membership interest of the Offering Member at the Applicable Price; or (B) sell all of the Responding Member’s membership interest to the Offering Member at the purchase price that would be payable by the Offering Member if the Responding Member elects to sell all of the Responding Member’s membership interest to the Offering Member (the “Responding Member’s Purchase Price”) based on the amount the Responding Member would receive if the assets of the Company were sold for an amount equal to the Total Value, all third party liabilities were repaid and the balance was paid and/or distributed pursuant to Section 7.2.  A Response Notice electing to purchase the Offering Member’s membership interest shall include a letter or other statement signed by a bank or trust company confirming that the Responding Member has deposited with such bank or trust company the amount of Two Hundred Fifty Thousand Dollars ($250,000);  thereupon, the Deposit previously made by the Offering Member shall be returned to the Offering Member by the bank or trust company with which the Offering Member shall have deposited the Deposit. The failure of the Responding Member to duly and timely give a Response Notice shall constitute its election to sell all of its membership interest to the Offering Member at the Applicable Price.  Unless otherwise approved in writing by the Members, such purchase and sale

 

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shall be consummated within ninety (90) days after the date Responding Member (1) delivers a Response Notice, or (2) if the Responding Member fails to give the Offering Member a Response Notice in accordance with this Section 6.4, is deemed to have elected to sell all of its membership interest to the Offering Member (the “Closing Date”), and in either such event the Members shall negotiate and work together in a spirit of good faith and mutual cooperation to enter into the transfer documents, including a deed or act of sale, bill of sale and other such instruments of transfer as shall be reasonably requested by the purchasing Member. Furthermore, the purchasing Member shall use commercially reasonable efforts to obtain as part of the closing the absolute release of any Company Guarantor who provided a Company Guaranty to which such selling Member may be bound.  Time is of the essence with respect to the closing of the sale contemplated herein on or before expiration of such ninety (90) day period.  One hundred percent (100%) of the purchase price for the membership interest being sold or purchased shall be payable at the Closing Date by wire transfer in immediately available funds.

 

If the purchasing Member fails to complete the purchase on or before the Closing Date (other than as a result of the selling Member’s default), then (i) the Deposit deposited by the purchasing Member shall be forfeited by the purchasing Member and shall be paid over to the selling Member by the institution holding such Deposit; (ii) the selling Member shall have ninety (90) days to elect to become the purchasing Member and purchase the other Member’s membership interest at ninety percent (90%) of the Applicable Price or the Responding Member’s Purchase Price (as applicable); and (iii) such defaulting Member may be stripped of certain rights, powers and/or authority as expressly set forth in this Agreement.  All closings shall be conducted through an escrow agreement established by the Members with a title insurer.  Each Member shall pay one-half of the cost of escrow, together with all of its attorneys fees incurred in connection with such buy-sell transaction.  Either Member purchasing an interest under this Section 6.4 may assign its rights, in the whole or in part, to any Affiliate of such Member, provided that no assignment shall relieve the purchasing party from any liability or obligation with respect to such purchase.

 

6.5                            Further Assurances.   It is the intent of the Members that, in the event of any closing of a purchase of membership interest under this Section 6, the selling or transferring Member shall fully convey, transfer and assign all of its membership interest and any rights associated therewith.  Each selling Member agrees that, at any such closing and any time thereafter, upon request of the purchasing Member, the selling Member shall execute, acknowledge and deliver to the purchasing Member and the Company such assignments, conveyances, transfers and other instruments and documents, and perform such other acts, as may be reasonably necessary to fully effect the Transfer of the membership interest sold or otherwise being Transferred to such Member.  Any Member acquiring the membership interest of the other Member under this Section 6 may designate its Affiliate to take the assignment of the membership interest to be Transferred to such Member.

 

6.6                            No Dissolution.   If a Member completes a Transfer of all or any part of its membership interest in the Company without complying with the provisions of this Agreement, such action shall in and of itself not cause or constitute a dissolution of the Company.

 

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SECTION 7

 

DISSOLUTION, LIQUIDATION, CONSOLIDATION, MERGER AND SALE OF ASSETS

 

7.1                            Events of Dissolution.  Subject to Section 5.4, the Company may be dissolved and its affairs wound up upon the first to occur of the following:

 

(a)                               the termination of the legal existence of the last remaining member of the Company or the occurrence of any other event which terminates the continued membership of the last remaining member of the Company in the Company unless the Company is continued without dissolution in a manner permitted by this Agreement or the Act;

 

(b)                              at the election of the Members to dissolve the Company; or

 

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

 

7.2                            Procedure for Winding Up and Dissolution.  If the Company is dissolved, the Managing Member shall wind up its affairs.  On winding up of the Company, the assets of the Company shall be distributed, first, to creditors of the Company, and then to the Members.

 

7.3                            Timing of Termination.  The Company shall terminate when (a) all of the assets of the Company, after payment of or due provision for all debts, liabilities and obligations of the Company shall have been distributed to the Members in the manner provided for in this Agreement and (b) the Certificate of Formation shall have been canceled in the manner required by the Act.

 

SECTION 8

 

BOOKS, RECORDS, ACCOUNTING AND TAX ELECTIONS

 

8.1                            Accounts.  The funds of the Company may be deposited in such types of accounts maintained in the Company’s name as the Managing Member may determine.  The Managing Member shall determine the institution or institutions at which the accounts will be maintained, the types of accounts, and the Persons who will have authority with respect to the accounts and the funds therein.

 

8.2                            Books and Records.

 

(a)                               The Managing Member shall keep, or cause to be kept, complete and accurate books and records of the Company and supporting documentation of the transactions with respect to the conduct of the Company’s business.  The records shall include, but not be limited to, complete and accurate information regarding the state of the business and financial condition of the Company, a copy of the Certificate of Formation and this Agreement and all amendments to the Certificate and this Agreement; and the Company’s federal, state or local tax returns.

 

(b)                              The books and records shall be maintained in accordance with sound accounting principles and practices and shall be available at the Company’s principal office.

 

21
 

 

8.3                            Annual Accounting Period.  The annual accounting period of the Company shall be its taxable year.  The Company’s taxable year shall be selected by the Managing Member, subject to the requirements and limitations of the Code.

 

8.4                            Tax Matters Partner.  The CWI Member shall also be the Company’s tax matters partner (“Tax Matters Partner”).  The Tax Matters Partner shall have all powers and responsibilities provided in Code Section 6221, et seq.  The Company shall pay and be responsible for all reasonable costs and expenses incurred by the Tax Matters Partner in performing those duties.

 

8.5                            Tax Elections.  The OP2 Member shall be entitled, exercising its good faith reasonable discretion, to make all elections permitted under the Code, including, without limitation, elections of methods of depreciation and elections under Code Section 754.

 

SECTION 9

 

GENERAL PROVISIONS

 

9.8                            Assurances.  The Members shall execute all such certificates and other documents and shall do all such filing, recording, publishing and other acts as appropriate to comply with the requirements of law for the formation and operation of the Company and to comply with any laws, rules and regulations relating to the acquisition, operation or holding of the property of the Company.

 

9.2                            Applicable Law.  All questions concerning the construction, validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by the internal law, not the law of conflicts, of the State of Delaware, all rights and remedies being governed by said law.

 

9.3                            Section Titles.  The headings herein are inserted only as a matter of convenience only, and do not define, limit or describe the scope of this Agreement or the intent of the provisions hereof.

 

9.4                            Binding Provisions.  This Agreement is binding upon, and inures to the benefit of, the parties hereto and their respective heirs, executors, administrators, personal and legal representatives, successors and permitted assigns.

 

9.5                            Terms.  Common nouns and pronouns shall be deemed to refer to the masculine, feminine, neuter, singular and plural, as the identity of the Person may in the context require.

 

9.6                            Separability of Provisions.  Each provision of this Agreement shall be considered separable; and if, for any reason, any provision or provisions herein are determined to be invalid and contrary to any existing or future law, such invalidity shall not impair the operation of or affect those portions of this Agreement which are valid.

 

9.7                            Counterparts.  This Agreement may be executed simultaneously in two or more counterparts each of which shall be deemed an original, and all of which, when taken together, constitute one and the same document.  The signature of any party to any counterpart shall be deemed a signature to, and may be appended to, any other counterpart.

 

9.8                            Effective Date of Agreement.  This Agreement shall be effective as of the filing of the Certificate of Formation with the Office of the Delaware Secretary of State in accordance with Section 18-201(d) of the Act.

 

22
 

 

9.10                    Dispute Resolution.

 

(a) In the event that the Members are unable to mutually agree on any dispute which expressly provides for resolution under this Section 9.10, such dispute shall be settled as follows:

 

(i)                                  The Members shall work together in good faith and a spirit of mutual cooperation to attempt to resolve the applicable arbitrable dispute for a period of ten (10) Business Days after notice from one Member to the other referencing this Section 1.1(a)(i) (the “Discussion Period”); and

 

(ii)                              If within the Discussion Period the Members fail to resolve the applicable arbitrable dispute, then either Member may promptly thereafter file an arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, and upon the issuance of a judgment on the award rendered by the arbitrator(s) thereunder, such judgment may be entered in any court having jurisdiction thereof.  All arbitration proceedings and hearings shall occur in New York, New York.  

 

For avoidance of doubt, any failure by the Members to approve the Major Decisions shall not constitute a dispute for which arbitration under this Section 9.10 is available.

 

(b) Within ten (10) days after the commencement of arbitration, the parties shall attempt to mutually agree upon a single person to act as arbitrator.  If the parties cannot agree on a single arbitrator within such ten (10) day period, then, within twenty (20) days after the commencement of arbitration, each party shall select one person to act as arbitrator and the two selected shall select a third arbitrator within five (5) days of their appointment.  If the arbitrators selected by the parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be selected by the American Arbitration Association.  Should this selection procedure fail for any reason, the arbitrators shall be appointed as provided in the Commercial Arbitration Rules of the American Arbitration Association.  The arbitrator(s) selected should be competently knowledgeable in the subject matter of the dispute.

 

(c) The arbitrator(s) shall award reasonable attorneys’ fees and expenses to the prevailing party, if a prevailing party, if any, can be reasonably identified.  The arbitrator(s) shall make its/their determination in accordance with the laws of the State of Delaware.  The arbitrator(s) shall make specific, written findings of fact and conclusions of law.

 

(d) A party may apply to the arbitrator(s) seeking injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved.  A party also may, without waiving any remedy under this Agreement, seek from any court having jurisdiction any interim or provisional relief that is necessary to protect the rights or property of that party, pending the establishment of the arbitration tribunal (or pending the arbitration tribunal’s determination of the merits of the controversy).

 

(e) Each party to this Agreement agrees that it may be joined as an additional party to an arbitration involving other parties to this Agreement.  If more than one arbitration is begun under this Agreement and any party contends that two or more arbitrations are substantially related and that the issues should be heard in one proceeding, the arbitrator(s) selected in the first-filed of such proceedings shall determine whether, in the interests of justice and efficiency, the proceedings should be consolidated before those arbitrator(s).

 

[Remainder of the Page Intentionally Left Blank]

 

23
 

 

IN WITNESS WHEREOF, the parties have caused this Amended and Restated Limited Liability Company Agreement to be effective, under seal, as of the date set forth hereinabove.

 

	
 
    	
CWIMEMBER:
    
	
 
    	
 
    
	
 
    	
CWIOP, LP,
    
	
 
    	
a Delaware limited   partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
Carey Watermark   Investors Incorporated, 

a Maryland corporation,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ Michael G.   Medzigian
    	
 
    
	
 
    	
 
    	
Name:
    	
Michael G. Medzigian
    
	
 
    	
 
    	
Title:
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OP2MEMBER: 
    
	
 
    	
 
    
	
 
    	
CWI20P, LP,
    
	
 
    	
a Delaware limited   partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
Carey Watermark   Investors 2 Incorporated, a Maryland corporation,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ Michael G.   Medzigian
    	
 
    
	
 
    	
 
    	
Name:
    	
Michael G. Medzigian
    
	
 
    	
 
    	
Title:
    	
Chief Executive Officer
    
						

 

 

EXHIBIT A

 

 

PARTICIPATION PERCENTAGES

 

 

	
CWI OP, LP
    	
71%
    
	
 
    	
 
    
	
CWI 2 OP, LP
    	
29%
    

 

 

EXHIBIT B

 

 

SPECIAL ALLOCATIONS

 

All capitalized terms used in this Exhibit shall have the meanings as set forth in the Agreement.

 

To conform further the allocation provisions of this Agreement to the Regulations, the Members agree that the following special allocations rules shall apply; provided, however, that in respect of any particular allocation the following rules shall supersede the rules otherwise applicable under Section 4 of the Agreement and this Exhibit only to the extent necessary to cause such allocation to be respected under the Regulations and the remaining portion of such allocation shall not be affected.  In the event of any inconsistency between the Regulations and the provisions of the following Sections (a) through (j), the Regulations shall govern.

 

(a)                               Loss Limitation Rule.  If any allocation of Losses for any fiscal year otherwise provided in Section 4 of the Agreement or this Exhibit would (if made) cause or increase a deficit balance in the Capital Account of a Member (determined for this purpose by taking into account such Member’s share of Net Distributable Cash and/or Capital Transaction Proceeds in respect of such fiscal year and all other adjustments for such Fiscal Year otherwise required under this Agreement) that exceeds the amount such Member is obligated to restore to the Company pursuant to Regulations Section 1.704-1(b)(2)(ii)(c) or 1.704-1(b)(2)(ii)(d) or is deemed obligated to restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) less the amount of the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6), the amount of Losses otherwise allocable to such Member shall be reduced by the minimum amount necessary to eliminate such deficit.  Any amount of an allocation denied to a Member under the first sentence of this paragraph (a) of this Exhibit shall be reallocated to the Members whose allocations of Losses for such year (determined under this Exhibit) are not affected by this paragraph, such reallocation to be made pro rata in accordance with each Member’s Participation Percentage.

 

(b)                              Minimum Gain Chargeback.  If during any fiscal year there is a net decrease in Company Minimum Gain (as determined under Regulations Sections 1.704-2(b)(2)), then items of income and gain of the Company shall be allocated to each Member, for such fiscal year (and, if necessary, subsequent periods) in proportion to, and to the extent of, an amount equal to each Member’s share of the net decrease in the Company Minimum Gain during such fiscal year in accordance with Regulations Section 1.704-2(g)(2).  This paragraph (b) is intended to comply with the minimum gain chargeback requirement in such Regulations Sections and shall be interpreted consistently therewith.

 

(c)                               Qualified Income Offset.  If a Member unexpectedly receives an adjustment, allocation or distribution described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) (modified, as appropriate, by Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5)) which causes or increases a negative balance in such Member’s Capital Account (determined for this purpose with the adjustments required under Section (a)), such Member will, to the extent required by Regulations Section 1.704-1(b)(2)(ii)(d), be specially allocated an amount of gross income and/or gain (consisting of a pro rata portion of each item of Company income and gain for such Fiscal Year) sufficient to eliminate such negative balance as quickly as possible;

 

 

provided, however, that an allocation pursuant to this paragraph (c) shall be made if and only to the extent that such Member would have a deficit in its Capital Account (determined as aforesaid) after all other allocations provided for in Section 4 of the Agreement and this Exhibit have been tentatively made as if this paragraph (c) were not in this Agreement.

 

(d)                             Nonrecourse Deductions.  Nonrecourse Deductions for any fiscal year of the Company shall be specially allocated to the Members as provided in Regulations Section 1.704-2(e).

 

(e)                               Member Nonrecourse Deductions.  The Members Nonrecourse Deductions for any fiscal year of the Company shall be specially allocated to the Member that bears the economic risk of loss for such deductions within the meaning of Regulations Sections 1.704-2(i)(1) and 1.752-2 and otherwise as provided in Regulations Section 1.704-2(i).

 

(f)                                Member Nonrecourse Debt Minimum Gain Chargeback.  If during any fiscal year of the Company there is a net decrease in Member Nonrecourse Debt Minimum Gain, each Member with a share of such Member Nonrecourse Debt Minimum Gain shall be allocated items of Company income and gain for such fiscal year (and, if necessary, subsequent periods) in proportion to, and to the extent of, an amount equal to such Member’s share of the net decrease in the Member Nonrecourse Debt Minimum Gain determined in a manner consistent with the provisions of Regulations Section 1.704-2(i)(4).  This paragraph (f) is intended to comply with the “partner nonrecourse debt minimum gain” chargeback requirement of such Regulations Sections and shall be interpreted consistently therewith.

 

(g)                              Excess Nonrecourse Liabilities.  Solely for purposes of determining a Member’s proportionate share of “excess nonrecourse liabilities” of the Company within the meaning of Regulations Section 1.752-3(a)(3), each Member’s interest in Company profits shall be allocated based on the such Member’s Participation Percentage.

 

(h)                              Sections 732(d), 734(b) and 743(b) Adjustments.  To the extent that an adjustment to the adjusted tax basis of any Company asset pursuant to Section 732(d), 734(b) or 743(b) of the Code is required under Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in adjusting Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be allocated to the Members in a manner that achieves the adjustments to their respective Capital Accounts that are required to be made pursuant to such Section of the Regulations.

 

(i)                                  Curative Allocations.  The Special Allocations are intended to comply with the requirements of the Regulations.  It is the intent of the Members that, to the extent possible, all Special Allocations shall be offset with other Special Allocations and/or with allocations of other items of Company income, gain, loss or deduction pursuant to this Section (i).  Therefore, notwithstanding any other provision of Section 4 of the Agreement and this Exhibit (other than the Special Allocations), Managing Member, with the Members’ approval, shall make such offsetting allocations of Company income, gain, loss or deduction in whatever manner it reasonably determines is appropriate so that, after such offsetting allocations are made,

 

 

each Member’s Capital Account balance is, to the extent possible, equal to the Capital Account balance which such Member would have had if the Special Allocations were not part of this Agreement and all Company items were allocated pursuant to Section 4 of the Agreement.  In exercising its discretion under this paragraph (i), Managing Member shall take into account future Special Allocations under paragraphs (b) and (f) of this Exhibit that, although not yet made, are likely to offset other Special Allocations previously made under paragraph (d) and (e) of this Exhibit.

 

(j)                                  Change in Regulations.  If any of the specific Regulations upon which the Special Allocations provided for in this Exhibit are based are hereafter changed or if new Regulations in the opinion of the reputable tax counsel retained by the Company make it necessary to revise the foregoing special allocation rules or provide further special allocation rules in order to avoid a significant risk that a material portion of any allocation of Profits, Losses or other tax attributes otherwise provided for in Section 4 of the Agreement would be altered as a result of a challenge thereto by the IRS, the Members agree to make such reasonable amendments to this Agreement as, in the opinion of such counsel, are necessary or desirable, taking into account the interests of the Members as a whole and all other relevant factors, to avoid or reduce significantly such risk to the extent possible without materially affecting the amounts distributable to any Member pursuant to this Agreement.EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
  

MEMBERSHIP INTEREST PURCHASE AGREEMENT 

BY AND AMONG 

THOR INDUSTRIES, INC. 

AND 

POSTLE ALUMINUM COMPANY, LLC 

MAY 1, 2015 
  

 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 

 TABLE OF CONTENTS 

 

					
	 ARTICLE 1.     THE TRANSACTION
		 	1	  
	 Section 1.1 Purchase and Sale of Company Interests
		 	1	  
	 Section 1.2 Purchase Price
		 	1	  
	 Section 1.3 Target Net Assets
		 	2	  
	 Section 1.4 Purchase Price Adjustment; Cash Balance Adjustment
		 	2	  
	 Section 1.5 Escrow
		 	5	  
	 Section 1.6 The Closing
		 	5	  
	 Section 1.7 [Intentionally Omitted]
		 	5	  
		
	 ARTICLE 2.     REPRESENTATIONS AND WARRANTIES
OF THE SELLER
		 	6	  
	 Section 2.1 Organization, Qualification, and Limited Liability Company Power
		 	6	  
	 Section 2.2 Capitalization and Ownership
		 	6	  
	 Section 2.3 Authority
		 	6	  
	 Section 2.4 Non-contravention; Consents and Approvals
		 	7	  
	 Section 2.5 Equity Investments
		 	7	  
	 Section 2.6 Financial Statements
		 	7	  
	 Section 2.7 Tangible Property
		 	8	  
	 Section 2.8 Condition of Tangible Property
		 	8	  
	 Section 2.9 Absence of Material Adverse Changes, Etc.
		 	8	  
	 Section 2.10 No Undisclosed Liabilities
		 	8	  
	 Section 2.11 Tax Matters
		 	8	  
	 Section 2.12 Intellectual Property
		 	11	  
	 Section 2.13 Contracts; No Defaults
		 	11	  
	 Section 2.14 Proceedings
		 	12	  
	 Section 2.15 Labor and Employment Matters
		 	12	  
	 Section 2.16 Employee Benefits
		 	13	  
	 Section 2.17 Environmental Matters
		 	14	  
	 Section 2.18 Legal Compliance
		 	16	  
	 Section 2.19 Permits
		 	16	  
	 Section 2.20 Insurance
		 	16	  
	 Section 2.21 Customers and Suppliers
		 	16	  
	 Section 2.22 Brokers’ Fees
		 	16	  
	 Section 2.23 Book and Records; Bank Accounts
		 	16	  
	 Section 2.24 Certain Business Relationships with the Company
		 	17	  
	 Section 2.25 Recalls and Defects
		 	17	  
	 Section 2.26 Legal Employees
		 	17	  
	 Section 2.27 Leased Equipment
		 	17	  
	 Section 2.28 Indebtedness
		 	17	  
	 Section 2.29 No Change in Control Payments
		 	17	  
		
	 ARTICLE 3.     REPRESENTATIONS AND WARRANTIES
OF THE BUYER
		 	17	  
	 Section 3.1 Organization
		 	17	  
	 Section 3.2 Authorization of Transaction
		 	17	  

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 

					
	 Section 3.3 Noncontravention
		 	18	  
	 Section 3.4 Broker’s Fees
		 	18	  
	 Section 3.5 Litigation
		 	18	  
	 Section 3.6 Investment Intent
		 	18	  
	 Section 3.7 Solvency
		 	18	  
		
	 ARTICLE 4.     INDEMNIFICATION
		 	19	  
	 Section 4.1 Indemnification by the Seller
		 	19	  
	 Section 4.2 Indemnification by the Buyer
		 	19	  
	 Section 4.3 Claims for Indemnification
		 	19	  
	 Section 4.4 Survival
		 	21	  
	 Section 4.5 Limitations
		 	21	  
	 Section 4.6 Manner of Payment
		 	21	  
	 Section 4.7 Remedies
		 	21	  
		
	 ARTICLE 5.     TAX MATTERS
		 	22	  
	 Section 5.1 Tax Indemnification
		 	22	  
	 Section 5.2 Straddle Period
		 	22	  
	 Section 5.3 Responsibility for Filing Tax Returns
		 	23	  
	 Section 5.4 Refunds and Tax Benefits
		 	23	  
	 Section 5.5 Cooperation on Tax Matters; Tax Audits
		 	24	  
	 Section 5.6 Certain Taxes and Fees
		 	25	  
		
	 ARTICLE 6.     FURTHER AGREEMENTS
		 	25	  
	 Section 6.1 Access to Information; Record Retention; Cooperation
		 	25	  
	 Section 6.2 Further Assurances
		 	26	  
	 Section 6.3 Employee Matters
		 	26	  
	 Section 6.4 Director and Officer Insurance
		 	27	  
		
	 ARTICLE 7.     MISCELLANEOUS
		 	28	  
	 Section 7.1 Definitions and Usage
		 	28	  
	 Section 7.2 Press Releases and Announcements
		 	31	  
	 Section 7.3 No Third-Party Beneficiaries
		 	31	  
	 Section 7.4 Action to be Taken by Affiliates
		 	32	  
	 Section 7.5 Entire Agreement
		 	32	  
	 Section 7.6 Succession and Assignment
		 	32	  
	 Section 7.7 Counterparts; Facsimile Signatures
		 	32	  
	 Section 7.8 Headings
		 	32	  
	 Section 7.9 Notices
		 	32	  
	 Section 7.10 Governing Law
		 	33	  
	 Section 7.11 Amendments and Waivers
		 	33	  
	 Section 7.12 Severability
		 	33	  
	 Section 7.13 Expenses
		 	34	  
	 Section 7.14 Specific Performance
		 	34	  
	 Section 7.15 Incorporation of Exhibits, Schedules, and Attachments
		 	34	  
	 Section 7.16 Submission to Jurisdiction
		 	34	  

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		2

 MEMBERSHIP INTEREST PURCHASE
AGREEMENT 
 THIS MEMBERSHIP INTEREST
PURCHASE AGREEMENT (the “Agreement”) is dated as of May 1, 2015, by and among Thor Industries, Inc., a Delaware corporation (the “Buyer”), and Postle Aluminum Company, LLC, a
Delaware limited liability company (the “Seller”). The Buyer and the Seller are sometimes respectively referred to as “Party”, and collectively referred to as the “Parties.” Capitalized terms used
in this Agreement and not otherwise defined are defined in Section 7.1. 
 RECITALS 

1.        The Seller is the sole owner of Postle Operating, LLC, an entity that
extrudes aluminum and distributes aluminum extrusions and steel parts (the “Business”). 

2.        The Seller desires to sell to the Buyer, and the Buyer desires to purchase
from the Seller, all of the issued and outstanding membership units of the Company (collectively the “Company Interests”) for the consideration set forth below, on the terms and subject to the conditions of this Agreement. 

3.        The Seller further agrees to assign to the Buyer certain other rights and
interests, including, but not limited to, the rights in the name “Postle” and any other intangible rights owned by the Seller. 

NOW, THEREFORE, in consideration of the representations, warranties, covenants, and agreements
contained in this Agreement and other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows: 
 Article
1.      THE
TRANSACTION 

Section 1.1 Purchase and Sale of Company Interests; Other Actions. On the terms and subject to the conditions of
this Agreement, at the Closing (as defined below), the Seller shall sell, transfer, convey, assign, and deliver to the Buyer, and the Buyer shall purchase, acquire, and accept from the Seller, the Company Interests. Immediately prior to the Closing,
the Seller shall assign and transfer to the Company: (a) the Employee Non-Competes; (b) all other contracts, rights and other general intangibles owned or held by Seller and used in the Business; and (c) all of the issued and
outstanding membership interests of Postle Real Estate, LLC, a Delaware limited liability company (together, the “Assignments”). At the Closing, the Seller shall deliver to the Buyer evidence that the Assignments have been
consummated, in form and substance reasonably satisfactory to Buyer. 
 Section 1.2 Purchase Price. The purchase
price to be paid by the Buyer to the Seller by electronic wire to be released prior to 10:00 a.m. on the Closing Date for the Company Interests shall be One Hundred Forty Million Dollars ($140,000,000.00) (the “Closing Purchase Price).
The Closing Purchase Price shall be subject to adjustment as set forth in Section 1.4 below (as adjusted, the “Purchase Price”). At Closing, One Hundred Thirty-Five Million Dollars ($135,000,000.00) of the Closing
Purchase Price, plus the amount of the Estimated Cash Balance 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 1

 
(which may be a positive or a negative number) (the “Cash Payment”) shall be paid by the Buyer by wire transfer to the accounts designated by the Seller in Exhibit 1.2 hereof and
Five Million Dollars ($5,000,000.00) of the Closing Purchase Price (the “Escrow Amount”) shall be paid by the Buyer to JP Morgan Chase Bank, N.A. (the “Escrow Agent”) to be held pursuant to the provisions of
Section 1.5 (the “Escrow”). 
 Section 1.3 Target Net Assets. The Target Net Assets
shall be Forty-Four Million Six Hundred Thirty-Three Thousand Six Hundred Thirty-Five Dollars ($44,633,635.00) (the “Target Net Assets”). Net Assets were, and for the post-closing adjustment shall be, determined and calculated using
the practices, policies and methodologies described on the attached Exhibit 1.3. To the extent that Exhibit 1.3 does not address any procedure necessary for the post-closing adjustment, then such procedures shall be determined using the past
practices of the Seller provided that such practices are in accordance with GAAP. To the extent that such past practices are not consistent with GAAP, then GAAP shall govern. 

Section 1.4 Purchase Price Adjustment; Cash Balance Adjustment. 

(a)        The Seller shall deliver to the Buyer the Seller’s good
faith estimate of (i) the Net Assets (the “Estimated Net Assets”) on or before April 27, 2015, and (ii) the Actual Cash Balance (the “Estimated Cash Balance”) at least two (2) days prior to the
Closing, in each case, as of the Effective Time, along with the Seller’s backup for Estimated Net Assets and Estimated Cash Balance and any additional related materials as the Buyer may reasonably request. The Cash Payment shall be
(i) increased dollar-for-dollar by the amount by which the Estimated Net Assets exceeds the Target Net Assets or (ii) decreased dollar-for-dollar by the amount by which the Estimated Net Assets is less than the Target Net
Assets. 
 (b)        As promptly as practicable, but no later than
sixty (60) days after the Closing Date, the Seller will cause to be prepared and delivered to the Buyer a certificate (the “Closing Certificate”) setting forth the Seller’s calculation of the Net Assets as of the Effective
Time (the “Closing Net Assets”) and the Actual Cash Balance, which, as applicable, shall be prepared in accordance with the practices outlined in Section 1.3. The Closing Certificate shall present fairly in all Material
respects the Net Assets of the Company and the Actual Cash Balance as of the Effective Time. The Buyer and the Company will assist the Seller in the preparation of the Closing Certificate and will provide the Seller and the Seller’s independent
accountants and other representatives access at all reasonable times to the Company’s personnel and properties, books, and records for such purpose. The Buyer shall have thirty (30) days from the date on which the Closing Certificate is
due or delivered to Buyer, whichever is later, to review the certificate (the “Review Period”). The Buyer and its accountants and/or other representatives shall be provided with customary access to the work papers of the Seller and
its accountants in connection with such review, subject to the execution of customary confidentiality and other undertakings. If the Buyer disagrees in any respect with any item or amount shown or reflected in the Closing Certificate or with the
calculation of the Closing Net Assets and/or the Actual Cash Balance, the Buyer may, on or prior to the last day of the Review Period, deliver a notice to the Seller setting forth, in reasonable detail, each disputed item or amount the
(“Disputed Items”) and the basis for the Buyer’s disagreement therewith (the “Dispute Notice”). The Dispute Notice shall set forth, in reasonable detail the Buyer’s position as to the proper Closing Net
Assets and Actual 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 2

 
Cash Balance. If no Dispute Notice is received by the Seller on or prior to the last day of the Review Period, the Closing Certificate shall be deemed accepted by the Buyer, whereupon
(i) the Closing Net Assets reflected on the Closing Certificate shall be deemed to be the “Final Net Assets,” (ii) the Actual Cash Balance shall be deemed final, and (iii) the Buyer or the Seller, as the case may be,
will pay to the other Party the amounts owing in accordance with Section 1.4(e) hereof. In the event that the Buyer timely delivers a Dispute Notice to the Seller, the Buyer or the Seller, as the case may be, will pay to the other Party
any undisputed portion of the amount determined under Section 1.4(b) (the “Undisputed Amount”). Unless otherwise agreed, all Undisputed Amounts shall be paid on the
5th Business Day following the expiration of the Review Period or the 5th Business Day after the Parties agree that any item is an Undisputed
Amount, whichever date is later. 
 (c)        For fourteen
(14) days after the Seller’s receipt of a Dispute Notice, if any, the Parties shall endeavor in good faith to resolve by mutual agreement all Disputed Items. In the event that the Parties are unable to resolve by mutual agreement all
Disputed Items within such 14-day period, the Buyer and the Seller hereby agree that they shall engage RSM McGladrey LLP or such other firm as the parties may mutually agree upon in writing (the
“Independent Accounting Firm”) to resolve the remaining Disputed Items. The Seller and the Buyer shall submit the remaining Disputed Items, together with such arguments as either of them choose to make in support of only the
Disputed Items, in writing to the Independent Accounting Firm within twenty (20) days after the Independent Accounting Firm’s engagement or such longer period as mutually agreed to by the Parties. 

(d)        The Seller and the Buyer shall use commercially reasonable
efforts to cause the Independent Accounting Firm to resolve the remaining Disputed Items based upon the materials submitted to it pursuant to the last sentence of Section 1.4(c) within thirty (30) days following the submission of
such materials. The Independent Accounting Firm shall determine, based solely on presentations by the Seller and the Buyer, and not by independent review, only those unresolved issues in dispute specifically set forth in the Dispute Notice and shall
render a written report to the Seller and the Buyer (the “Adjustment Report”) in which the Independent Accounting Firm shall, after considering all unresolved matters set forth in the Dispute Notice, determine what adjustments, if
any, should be made to the Closing Certificate solely as to the unresolved Disputed Items and shall determine the appropriate Final Net Assets and Actual Cash Balance on that basis. The Adjustment Report shall set forth, in reasonable detail, the
Independent Accounting Firm’s determination with respect to each of the remaining Disputed Items or other unresolved amounts specified in the Dispute Notice, and the revisions, if any, to be made to the Closing Certificate and the Closing Net
Assets, together with supporting calculations. In resolving any Disputed Item, the Independent Accounting Firm: (i) shall be bound to the principles of this Agreement, including those stated in this Section 1.4, (ii) shall
limit its review to unresolved matters specifically set forth in the Dispute Notice, and (iii) shall not assign a value to any item higher than the highest value for such item claimed by either Party or less than the lowest value for such item
claimed by either Party. The costs and fees related to such determination by the Independent Accounting Firm, including the costs relating to any negotiations with the Independent Accounting Firm with respect to the terms and conditions of such

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 3

 
Independent Accounting Firm’s engagement, will be paid by the Buyer and the Seller on an inversely proportional basis, based upon the relative portions of the Disputed Items that have been
submitted to the Independent Accounting Firm for resolution that ultimately are awarded in favor of the Buyer and the Seller (e.g., if $100,000 is in dispute, and of that amount the Independent Accounting Firm awards $75,000 in favor of the Buyer
and $25,000 in favor of the Seller, then the Buyer will be responsible for 25%, and the Seller 75%, of the costs and fees), which proportionate allocation will also be determined by the Independent Accounting Firm and be included in the Adjustment
Report. The Adjustment Report, absent fraud, shall be final and binding upon the Buyer and the Seller, shall be deemed a final arbitration award that is binding on each of the Buyer and the Seller, and no Party shall seek further recourse to courts,
other tribunals or otherwise, other than to enforce to the Adjustment Report. Judgment may be entered to enforce the Adjustment Report in any court of competent jurisdiction. 

(e)        Effective upon the end of the Review Period (if a timely
Dispute Notice is not delivered), or upon the resolution of all Disputed Items by mutual agreement of the Parties or by the issuance of the Adjustment Report (if a timely Dispute Notice is delivered): 

(i)        the Closing Purchase Price shall be
(A) increased dollar-for-dollar by the amount by which the Final Net Assets exceeds the Estimated Net Assets or (B) decreased dollar-for-dollar by the amount by which the Final Net Assets is less than the Estimated Net
Assets. 
 (ii)        The Buyer shall be obligated to pay the
Seller the amount by which the Actual Cash Balance exceeds the Estimated Cash Balance or the Seller shall be obligated to pay the Buyer the amount by which the Actual Cash Balance is less than the Estimated Cash Balance. 

(iii)        Any payment due as a result of an adjustment to the
Closing Purchase Price or the Actual Cash Balance pursuant to this Section 1.4 shall be paid by the Buyer or the Seller, as the case may be, as follows: 

(A)        if a timely Dispute Notice is not delivered, on the fifth
(5th) Business Day following the end of the Review Period, or 

(B)        if a timely Dispute Notice is delivered, (1) with
respect to Undisputed Amounts paid pursuant to the last sentence of Section 1.4(b), on the fifth (5th) Business Day following the delivery of a Dispute Notice to the Seller, and (2) on the fifth (5th) Business Day
following the resolution of all Disputed Items by mutual agreement of the Parties or on the fifth (5th) Business Day following the date on which the Adjustment Report has been received by the Seller and the Buyer less any payment made by the
Buyer or the Seller, as the case may be, as described in (1) under this Section 1.4(e)(iii)(B). 
 Any such
payments shall be made by wire transfer of immediately available funds to an account or accounts designated by the Buyer or the Seller, as the case may be, at least two (2) Business Days prior to the applicable payment date. Any amounts payable
by Seller under this Section 1.4 shall not be paid from the Escrow. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 4

 (f)        Immediately
following the Closing, the Company shall commence a complete physical identification of its inventory and count thereof as of the Closing. The Seller and the Buyer, and each of their respective representatives and accountants, shall be entitled
(i) to have unrestricted access to observe, and make inquiries with regard to, the foregoing inventory count, and (ii) to test and sample such inventory during the course of such inventory count. Any disagreement between the Parties with
respect to the inventory count, but not the value of such inventory, shall be resolved at the time of the inventory count, subject to the ability of the Seller to provide an inventory count listing as of the end of the inventory count procedures on
that date. This inventory count will be utilized by the Parties in the determination of the Closing Net Assets. The Buyer and the Seller agree to use their commercially reasonable efforts to adjust any inventory count that is, or appears to be,
incorrect based on a review of the inventory compilation prepared by the Company utilizing the counts from the inventory count procedures. Such count shall not prejudice any Party’s ability to set, dispute or adjust the value of such inventory
in connection with the calculation of the Final Net Assets. 
 Section 1.5 Escrow. Prior to 10:00 a.m. on the
Closing Date, the Buyer shall deliver by electronic wire in an amount equal to the Escrow Amount to the Escrow Agent for deposit into an escrow account (the “Escrow Account”) established pursuant to the terms of an escrow agreement
in the form attached to this Agreement as Exhibit 1.5 among the Buyer, the Seller, and the Escrow Agent (the “Escrow Agreement”). The Escrow Amount shall be held in an interest-bearing account pursuant to the Escrow
Agreement and, together with all income earned thereon, will serve as security to satisfy claims for indemnity pursuant to Article 4 and any other obligations of the Seller allowable under this Agreement. The Escrow Amount shall be
disbursed in accordance with the Escrow Agreement. 
 Section 1.6 The Closing. 

(a)        The closing of the purchase and sale of the Company
Interests contemplated herein (the “Closing”) shall take place at Thor Industries, Inc., 601 East Beardsley, Elkhart, IN, on May 1, 2015, or at such place or other date as the Parties may mutually agree in writing (the
“Closing Date”). The Closing shall be deemed effective as of 12:01 a.m. on the Closing Date (the “Effective Time”). 

(b)        At the Closing: 

(i)        the Seller shall deliver (or cause to be delivered) to the
Buyer the various certificates, instruments, agreements, and documents required to be delivered by the Seller pursuant to this Agreement; 

(ii)        the Buyer shall deliver (or cause to be delivered) to the
Seller the various certificates, instruments, agreements, and documents required to be delivered by the Buyer pursuant to this Agreement; 

(iii)        the Seller shall deliver (or shall cause to be delivered)
to the Buyer the minute books, ledgers and registers, corporate seals, and other similar corporate records of the Company; and 

(iv)        the Buyer shall deliver the Cash Payment and the Escrow
Amount as specified in Section 1.2. 
 Section 1.7 [Intentionally Omitted]. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 5

 Article 2.      
REPRESENTATIONS AND WARRANTIES OF THE SELLER 
 The Seller represents and
warrants to the Buyer as follows: 
 Section 2.1 Organization, Qualification, and Limited Liability Company
Power. 
 (a)        The Seller and the Company are limited
liability companies duly organized, validly existing and in good standing under the laws of the State of Delaware, and they are duly qualified to conduct business in the jurisdictions set forth on Section 2.1(a) of the Disclosure
Schedule. Each of the Seller and the Company have all requisite limited liability company power and authority to carry on the business in which it is now engaged and to own and/or lease and use the properties now owned and/or leased and used by it.

 (b)        The Seller has made available to the Buyer correct and
complete copies of the Organizational Documents of the Seller and the Company (as amended to date) and has made available to the Buyer the minute books and membership interest records of the Company. 

Section 2.2 Capitalization and Ownership. 

(a)        The Seller owns all of the issued and outstanding Membership
Interests of the Company, which Membership Interests constitute the Company Interests. 

(b)        All of the Company Interests are duly authorized, validly
issued and fully paid, Membership Interests of the Company. There are no outstanding or authorized securities convertible into, exchangeable for, or carrying the right to acquire equity securities of the Company or any subscriptions, warrants,
options, rights (including preemptive rights), or other arrangements or commitments obligating the Company to issue or dispose of any of its securities or any ownership interest therein. The Seller holds of record and owns beneficially all of the
Company Interests, free and clear of any Taxes, liens, options, warrants, purchase rights, contracts, commitments, equities, charges, claims, pledges, voting trusts, voting agreements, proxies, security holder or similar agreements, encumbrances, or
restrictions on transfer (other than applicable securities law restrictions) (“Ownership Encumbrances”), other than those restrictions on transfers, if any, contained in the Company’s Organizational Documents and set forth on
Section 2.2(b) of the Disclosure Schedule. The consummation of the transactions contemplated hereby will not cause any Encumbrance to be created or suffered upon the Company Interests, other than Ownership Encumbrances created or
suffered by the Buyer. 
 Section 2.3 Authority. The Seller has all requisite limited liability company power,
authority and capacity to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement and such other agreements and instruments contemplated hereby have been, or will be on the Closing Date, duly and validly executed
and delivered by the Seller and constitute (or will constitute on the Closing Date), assuming the due authorization, execution, and delivery by the other parties thereto, valid and binding obligations of the Seller, enforceable against the Seller in
accordance with their respective terms, except that such enforcement may be subject to or limited by (a) the effect of applicable bankruptcy, insolvency, reorganization, moratorium, and similar Legal Requirements related to or affecting the
rights of 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 6

 
creditors generally, and (b) the effect of general principles of equity (regardless of whether enforceability is considered in a proceeding of law or in equity). 

Section 2.4 Non-contravention; Consents and Approvals. 

(a)        Except as set forth in Section 2.4 of the
Disclosure Schedule or in the case of (ii) and (v) of this Section 2.4(a), any conflict, Breach, default, right, requirement or violation which would not, individually or in the aggregate, be Material to the Company, neither
the execution and delivery of this Agreement by the Seller, nor the consummation by the Seller of the transactions contemplated hereby, will (i) conflict with or violate any provision of the Organizational Documents of the Company,
(ii) conflict with, result in a Breach of, constitute (with or without due notice or lapse of time) a default under, result in the loss of benefit under, result in the acceleration of, create in any Person the right to accelerate, terminate,
modify or cancel, or require any notice, consent, or waiver under, any contract, lease, sublease, license, sublicense, franchise, permit, indenture, agreement or mortgage for borrowed money, instrument of indebtedness, Encumbrance (as hereinafter
defined), or other arrangement to which any of the Seller or the Company is a party or by which the Seller or the Company is bound or to which any of their respective assets is subject, (iii) result in the imposition of any Encumbrance upon the
Company Interests, (iv) result in the imposition of any Encumbrance upon any assets of the Company, or (v) assuming the filings, registrations, notifications, authorizations, consents, and approvals referred to in
Section 2.4(b) hereof have been obtained or made, as the case may be, violate any Legal Requirement applicable to any of the Seller or the Company. 

(b)        No filing or registration with, notification to, or
authorization, consent, or approval of any Governmental Authority is required in connection with the execution and delivery of this Agreement by the Seller or the performance by the Seller of its obligations hereunder, except (i) compliance
with any applicable filing requirements of the Hart-Scott-Rodino Antitrust Improvement Act (the “HSR Act”), (ii) those that become applicable as a result of matters specifically related to the Buyer or its Affiliates, or
(iii) such other consents, approvals, orders, authorizations, notifications, registrations, declarations, and filings, the failure of which to be obtained or made would not have a Material Adverse Effect. 

Section 2.5 Equity Investments. Except as set forth on Section 2.5 of the Disclosure Schedule, the
Company does not control, directly or indirectly, or have any direct or indirect equity ownership or participation in, any other Person. 

Section 2.6 Financial Statements. The Seller has delivered to the Buyer true, complete and correct copies of
(i) Seller’s audited balance sheet for the year ended December 31, 2014 (the “December 31, 2014 Balance Sheet”) and the related audited statements of income and cash flows for the year then ended, including any notes
thereto (the “Annual Income Statement” and together with the December 31, 2014 Balance Sheet, the “Annual Financial Statements”), and (ii) the Seller’s internally-prepared balance sheet and statement
of income for the three (3) months ended as of March 31, 2015 (the “Interim Financial Statements” and together with the Annual Financial Statements, the “Financial Statements”). The Financial Statements
are true, complete, and correct in all Material respects as of the respective dates and for the respective periods stated above, fairly present the properties, assets, liabilities, financial 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 7

 
condition, net worth and results of operations of the Seller and the Company, and except for the absence of notes with respect to the Interim Financial Statements, have been prepared pursuant to
and in accordance with GAAP applied on a consistent basis. 
 Section 2.7 Tangible Property. Except as set forth
on Section 2.7-1 of the Disclosure Schedule, the Company owns or leases all buildings, plants, structures, machines, equipment, and other tangible property reflected on the December 31, 2014 Balance Sheet or otherwise used by the
Company in the conduct of the Business as presently conducted (other than property sold, consumed, or otherwise disposed of in the Ordinary Course of Business since the date of the December 31, 2014 Balance Sheet) (the “Tangible
Property”), free and clear of all Encumbrances, except for Encumbrances listed on Section 2.7-2 of the Disclosure Schedule. 

Section 2.8 Condition of Tangible Property. Except as would not be Material to the Company or the Business, the
Tangible Property is (a) in operating condition and repair and free from Material defects (ordinary wear and tear excepted), and (b) adequate for the uses to which the Tangible Property is being used at Closing. None of the Tangible
Property is in need of maintenance or repairs except for ordinary, routine maintenance and repairs or repairs that would not be Material to the Company or the Business. Prior to Closing, the Seller and/or the Company completed all ordinary, routine
maintenance and repairs in accordance with the Company’s historical maintenance schedule. The Tangible Property is sufficient for the continued conduct of the Business after the Closing in substantially the same manner as conducted by the
Company prior to the Closing. 
 Section 2.9 Absence of Material Adverse Changes, Etc. From the date of the
December 31, 2014 Balance Sheet until the date hereof, there have not been any events that have resulted in or could reasonably be expected to result in a Material Adverse Effect. 

Section 2.10 No Undisclosed Liabilities. Except as set forth in Section 2.10 of the Disclosure
Schedule, the Company does not have any liability, contingent or otherwise, of the type or nature that would be required to be disclosed on a balance sheet or in footnotes related to a balance sheet prepared in accordance with GAAP except for
(a) liabilities shown on the December 31, 2014 Balance Sheet, (b) liabilities of the type reflected on the December 31, 2014 Balance Sheet which have arisen since the date of the December 31, 2014 Balance Sheet in the
Ordinary Course of Business, or (c) contractual liabilities (other than liabilities arising as a result of a default thereunder) incurred in the Ordinary Course of Business. 

Section 2.11 Tax Matters. 

(a)        For purposes of this Agreement, “Taxes”
(including with correlative meaning “Tax”) shall mean: (i) any and all taxes, and any and all other charges, fees, levies, duties, deficiencies, customs, or other similar assessments or liabilities in the nature of a tax,
including without limitation any income, gross receipts, ad valorem, net worth, premium, value-added, alternative or add-on minimum, excise, severance, stamp, occupation, windfall profits, real property, personal property, assets, sales, use,
capital stock, capital gains, documentary, recapture, transfer, transfer gains, estimated, withholding, employment, unemployment insurance, unemployment compensation, social security, business license, business organization, environmental, payroll,
profits, license, lease, service, service use, gains, franchise, and other taxes imposed by any Governmental Authority; (ii) any interest, fines, penalties, assessments, or additions 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 8

 
resulting from, attributable to, or incurred in connection with any items described in this paragraph or any contest or dispute thereof; and (iii) any items described in this
Section 2.11(a) that are attributable to another Person but that the Company is liable to pay by Legal Requirement or contract the substance of which includes the allocation of Taxes. For purposes of this Agreement, “Tax
Returns” means any and all reports, returns, declarations, statements, forms, or other information supplied to a Taxing Authority (as defined below). For purposes of this Agreement, “Taxing Authority” means any applicable
Governmental Authority responsible for the imposition of Taxes. 

(b)        Each of the Company and the Seller has always filed federal
and state income tax returns as a partnership or has been disregarded as a separate entity and has never filed an election to be characterized as a corporation for federal tax purposes. 

(c)        For all open periods under the applicable statute of
limitations, the Seller and Company have timely filed all Tax Returns of the type and in the jurisdictions identified in Schedule 2.11(c) of the Disclosure Schedule. Except as set forth on Section 2.11(c) of the Disclosure
Schedule, all such Tax Returns were correct and complete in all Material respects and were prepared in substantial compliance with all applicable Legal Requirements and all Taxes shown to be due and owing by the Seller and/or the Company on any such
Tax Return have been paid timely. There are no outstanding waivers or comparable consents regarding the application of the statute of limitations with respect to any Tax Returns that have been given by or on behalf of the Seller and/or the Company.
There are no liens for Taxes (other than Taxes not yet due and payable) upon any of the assets of the Seller and/or the Company. 

(d)        Except as disclosed on Schedule 2.11(d) of the
Disclosure Schedule, no foreign, federal, state, or local Tax audits or administrative or judicial Tax proceedings are pending or being conducted with respect to the Seller and/or the Company. The Seller and/or the Company has not received from any
Taxing Authority (including in jurisdictions where the Seller and/or the Company has not filed Tax Returns) any written (i) notice indicating an intent to open an audit or other review, (ii) request for information related to Tax matters,
or (iii) notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed by any Taxing Authority against the Seller and/or the Company. Section 2.11(d) of the Disclosure Schedule lists all federal,
state, local, and foreign income and other Material Tax Returns filed with respect to the Seller and/or the Company for all open taxable periods and indicates those Tax Returns that have been audited and/or those Tax Returns that currently are the
subject of audit. The Seller has delivered to Buyer correct and complete copies of all federal, foreign, and state income and other Material Tax Returns filed by the Seller and/or the Company, and examination reports and statements of deficiencies
assessed against, agreed to or received by the Seller and/or the Company, for all open taxable periods. 

(e)        The Company does not have Liability for the Taxes of any
Person (other than the Company) under Treasury Regulation §1.1502-6 (or any similar provision of state, local, or foreign law), as a transferee or successor or by contract the substance of which includes
the allocation of Taxes. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 9

 (f)        No claim has
been made in writing or question or inquiry made by a taxing authority in a jurisdiction where the Company does not file Tax Returns to the effect that the Company is or may be subject to taxation by that jurisdiction. 

(g)        The Company has not been a member of an affiliated,
consolidated, combined, or unitary group for Tax purposes, or made any election or participated in any arrangement whereby, in each case, any Tax liability or any Tax asset of the Company was determined or taken into account for Tax Purposes with
reference to or in conjunction with any Tax liability or Tax asset of any other person. 

(h)        The Company is not a party to any tax sharing agreement, and
the Company is not currently under any obligation to pay any amounts as a result of having been a party to such an agreement, regardless of whether such tax is imposed on the Company. 

(i)        The Company is in compliance with, and its records contain
all information and documents (including properly completed IRS Forms W-9) necessary to comply with, all applicable information reporting and Tax withholding requirements under applicable Tax related Legal Requirements. 

(j)        The Company has disclosed on its federal income Tax Return
all positions taken therein that could give rise to substantial understatement of federal income Tax within the meaning of Section 6662 of the Code. 

(k)        The Company has not participated in any reportable
transaction, as defined in Treasury Regulation Section 1.6011-4(b)(1), or a transaction substantially similar to a reportable transaction. 

(l)        The Company has never had a permanent establishment in any
non-U.S. country that has in effect a tax treaty with the United States or engaged in a trade or business in any other non-U.S. country that subjected it to Tax in such country. 

(m)        All individuals working for the Company have been properly
classified as employees or independent contractors. 
 (n)        The
Company maintains on file such reseller sales tax certificates as are required by Legal Requirements to be maintained for customers for which sales tax was not collected. 

(o)        The Company will not be required to include any item of
income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any: 

(i)        change in method of accounting for a taxable period ending
on or prior to the Closing Date pursuant to Code Section 481(a); 

(ii)        “closing agreement” as described in Code
§ 7121 (or any corresponding or similar provision of state, local or foreign income Tax law) executed on or prior to the Closing Date; 

(iii)        installment sale or open transaction disposition made on
or prior to the Closing Date; 
 (iv)        prepaid amount received
on or prior to the Closing Date; or 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 10

 (v)        except as set
forth on Section 2.11(o)(v) of the Disclosure Schedule, discharge of indebtedness income pursuant to Code Section 108(i). 

Section 2.12 Intellectual Property. 

(a)        Section 2.12(a) of the Disclosure Schedule
contains a correct and complete list of all patents, patent applications, registered marks, unregistered marks, trade names, and registered copyrights that are owned (pursuant to license agreements or otherwise) by the Company. 

(b)        Except as set forth in Section 2.12(b) of the
Disclosure Schedule, the Company (i) owns and possesses all right, title, and interest, free and clear of all Encumbrances, to all patents, registered marks, and copyrights owned by it and set forth on Schedule 2.12(a) of the
Disclosure Schedules, or (ii) has a valid and enforceable license to use all patents, registered marks, copyrights, and software used by it (the “Company Intellectual Property”). 

(c)        To the knowledge of Seller, the operation of the Business as
currently conducted does not infringe, misappropriate, or otherwise conflict with any intellectual property rights of any third party and no third party has infringed, misappropriated, or otherwise conflicted with any of the Company Intellectual
Property. 
 Section 2.13 Contracts; No Defaults. 

(a)        Schedule 2.13(a) of the Disclosure Schedules
identifies each of the following Contracts to which the Company or the Seller (that relates to the Business) is a party: (i) the performance of services or delivery of goods or materials by Company, including for the sale of inventory at
committed quantities or at committed prices, the performance of which involves consideration in excess of $100,000, other than purchase orders received in the Ordinary Course of Business; (ii) the performance of services or delivery of goods or
materials to Company, including any purchase at a committed quantity or at a committed price, the performance of which involves consideration in excess of $100,000, other than purchase orders issued in the Ordinary Course of Business; (iii) for
borrowed money, other than trade debt incurred by Company in the Ordinary Course of Business; (iv) the lease, license, installment, and conditional sales affecting the ownership of, leasing of, title to, or use of any personal property with
annual payments in excess of $100,000; (v) licensing with respect to Company Intellectual Property to which Company is a party other than commercially available software; (vi) joint venture or partnership or other similar arrangement
involving a sharing of profits, losses, costs, or liabilities by Company with any other Person; (vii) capital expenditures in excess of $100,000; (viii) guaranty with respect to performance of any other Person by Company; (ix) profit
sharing, stock option, stock purchase, stock appreciation, deferred compensation, severance, or other plan or arrangement for the benefit of the current or former directors, officers, and employees of the Company; (x) collective bargaining
agreements; (xi) for the employment of any individual on a full-time, part-time, consulting, or other basis providing annual compensation in excess of $75,000 or providing severance benefits;
(xii) under which Company has advanced or loaned any amount to its directors, officers, and employees; (xiii) the subject matter of which is confidentiality or non-competition except that which may be implied by law, including

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 11

 
the Employee Non-Competes; (xiv) any lease agreements with respect to real property, including with respect to the Leased Real Property; (xv) other agreement that is not in the Ordinary
Course of the operations of the Company that involves any transaction greater than $25,000 in value; (xvi) the Employee Non-Competes; and (xvii) each amendment in respect of any of the foregoing. 

(b)        Except as set forth in Schedule 2.13(b) of the
Disclosure Schedules, each Contract identified or required to be identified in Section 2.13(a) of the Disclosure Schedule (i) is legal, valid, binding, in full force and effect and valid and enforceable against Company as a party
thereto and, to Seller’s Knowledge, the other parties thereto, in accordance with its terms, except to the extent that the lack of validity or enforceability would not be Material to the Company or the Business, and (ii) the consummation
of the transactions contemplated in this Agreement will not cause the failure of such Contract to be legal, valid, binding, in full force and effect, and enforceable on identical terms following the consummation of the transactions. The Seller has
made available to the Buyer a correct and complete copy of each written Contract identified in Section 2.13(a) of the Disclosure Schedule. 

(c)        Except as set forth in Section 2.13(c) of the
Disclosure Schedule (i) each of the Seller and the Company is in compliance in all Material respects with each Contract identified in Section 2.13(a) of the Disclosure Schedule under which Company or the Seller has or had any
obligation or liability or by which Company or the Seller is bound and (ii) to the Company’s or the Seller’s Knowledge, each other Person that has any obligation or liability under any Contract identified in
Section 2.13(a) of the Disclosure Schedule under which the Seller or the Company has any rights is in compliance in all Material respects with such Contract. 

Section 2.14 Proceedings. Except as set forth on Section 2.14 of the Disclosure Schedule, there is no
(a) unsatisfied or unpaid judgment, order, or decree applicable to the Company, (b) outstanding injunction or stipulation applicable to the Company, or (c) action, suit, proceeding, claim, demand, hearing, indictment, or investigation
(each, a “Proceeding”) pending in which the Company is a party or, to the Seller’s or the Company’s Knowledge, threatened, by, against, or involving the Company or any of the assets owned or used by the Company. 

Section 2.15 Labor and Employment Matters. 

(a)        The Company is not a party to or bound by any collective
bargaining agreement or other labor contract. At no time during the last five (5) years preceding the Closing Date has the Company experienced any strikes, picketing, work stoppage, concerted refusal to work overtime, or other similar labor
activity. At no time during the five (5) years preceding the Closing Date has the Company experienced any claims of unfair labor practices or other collective bargaining disputes. The Seller has no Knowledge of any organizational effort being
made or threatened at any time during the five (5) years preceding the Closing Date by or on behalf of any labor union with respect to employees of the Company. The Company has complied with all provisions of applicable Legal Requirements
pertaining to the employment of employees, including without limitation, all laws relating to labor relations, equal employment, fair employment practices, entitlements, prohibited discrimination, and the Worker Adjustment and Retraining
Notification Act, 29 U.S.C. Section 2101 et seq. (“WARN”) 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 12

 
and comparable state and local laws or regulations relating to or arising out of the layoff or termination of employment by the Company, except where the failure to so comply that would not be
Material to the Company or the Business. 

(b)        Section 2.15(b) of the Disclosure Schedule sets
forth a true and complete list of the employees of the Company (identified by number only), along with the position and annual base compensation of each such employee, and any applicable incentive or bonus program applicable to such employee. 

Section 2.16 Employee Benefits. 

(a)        Section 2.16(a) of the Disclosure Schedule
contains a complete and accurate list of all Employee Benefit Plans (as defined below) maintained, or contributed to, by the Company or any ERISA Affiliate for the benefit of employees of the Company (and their beneficiaries) (the “Company
Plans”). For purposes of this Agreement, “Employee Benefit Plan” means any “employee pension benefit plan” (as defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)), any “employee welfare benefit plan” (as defined in Section 3(1) of ERISA), and any other employee benefit, program, or plan, (other than statutory or Tax-based programs such as workers’ compensation
or social security) including disability benefits, deferred compensation, stock options, stock purchase, phantom stock, stock appreciation, or post-retirement compensation. For purposes of this Agreement, “ERISA Affiliate” means any
entity which is a member of (i) a controlled group of corporations (as defined in Section 414(b) of the Code), (ii) a group of trades or businesses under common control (as defined in Section 414(c) of the Code), or (iii) an
affiliated service group (as defined in Section 414(m) of the Code or the regulations under Section 414(o) of the Code), any of which includes the Company. Complete and accurate copies of all Company Plans, the most recent determination
letters received from the Internal Revenue Service (if any), the last two (2) filed Forms 5500 Annual Report and all schedules thereto, all related trust agreements, insurance contracts, and summary plan descriptions, and written summaries
of all unwritten Company Plans have been made available to the Buyer. Each Company Plan is and has been administered, in all Material respects, in substantial compliance with its terms and the Company has met its obligations with respect to such
Company Plan. 
 (b)        There are no pending or threatened audits
or investigations by any Governmental Authority involving any Company Plan, and no pending or threatened termination proceedings or other claims (except claims for benefits payable in the Ordinary Course of Business and Proceedings with respect to
qualified domestic relations orders), or other Proceedings against or involving any Company Plan, any fiduciary thereof or service provider thereto, or asserting any rights or claims to benefits under any Company Plan. 

(c)        The Company Plans that are required to be qualified under
Section 401(a) of the Code have received favorable determination letters from the Internal Revenue Service to the effect that such Company Plans are qualified and the plans and the trusts related thereto are exempt from federal income taxes
under Sections 401(a) and 501(a), respectively, of the Code. 

(d)        No “accumulated funding deficiency” (as defined in
Section 412 of the Code) has occurred with respect to any Employee Benefit Plan contributed to, or 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 13

 
maintained by, the Company or any ERISA Affiliate that is subject to Section 412 of the Code or Title IV of ERISA. 

(e)        Section 2.16(e) of the Disclosure Schedule lists
each “multiemployer plan” (as defined in Section 4001(a)(3) of ERISA) to which the Company contributes or is obligated to contribute (the “Multiemployer Plans”). Neither the Company nor any ERISA Affiliate has
withdrawn from any Multiemployer Plan in a complete or partial withdrawal so as to cause any liability to the Company. 

Section 2.17 Environmental Matters. 

(a)        For purposes of this Agreement, the following terms have the
meanings provided below: 
 (i)        “CERCLA”
means the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. 

(ii)        “Environment” means soil, land surface,
or subsurface strata, surface waters (including navigable waters, ocean waters, streams, ponds, drainage basins, and wetlands), groundwater, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal life, and any
other environmental medium or natural resource. 

(iii)        “Environmental Law” means any and all
Legal Requirements of any Governmental Authority regulating or imposing standards of liability or standards of conduct concerning air, water, solid waste, hazardous waste, Materials of Environmental Concern, worker and community right-to-know,
hazard communication, noise, radioactive material, resource protection, health protection, and similar environmental health and safety concerns (including, without limitation, the Clean Water Act, the Toxic Substances Control Act, the Clean Air Act,
CERCLA, the Resource Conservation and Recovery Act, the Solid Waste Disposal Act, the Occupational Safety and Health Act, and any and all rules, regulations, common law, orders, or directives pertaining to (A) treatment, storage, disposal, or
generation of Materials of Environmental Concern (as defined below); (B) air, water, and noise pollution; (C) groundwater and soil contamination; (D) the Release (as defined below) or threatened Release into the Environment of
Materials of Environmental Concern, including without limitation emissions, discharges, injections, spills, escapes, or dumping of Materials of Environmental Concern; and (E) underground and other storage tanks or vessels. 

(iv)        “Environmental Matters” means any legal
obligation or liability arising under Environmental Law or common law with respect to the Environment or Materials of Environmental Concern. 

(v)        “Materials of Environmental Concern” means
any hazardous substance, pollutant or contaminant (including any admixture or solution thereof), oil, petroleum, and petroleum products. 

(vi)        “Release” means any spilling, leaking,
emitting, discharging, depositing, escaping, leaching, dumping, or other releasing into the Environment, whether intentional or unintentional. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 14

 (b)        Except as
described or identified in Section 2.17(b) of the Disclosure Schedule or as would not be Material to the Company or the Business: 

(i)        the operations of the Company are in compliance with all
applicable Environmental Laws; 
 (ii)        there is no pending
or, to the Seller’s or the Company’s knowledge, threatened, civil or criminal litigation, written notice of violation, currently effective order, formal administrative proceeding, investigation, or information request relating to any
Environmental Matters involving the Company, or any property currently or formerly used for its operations, including the Leased Real Property; 

(iii)        the Company has obtained, and is in compliance with,
those Permits, licenses, and approvals required under applicable Environmental Law to operate the Business as currently and, to the Seller’s and the Company’s knowledge, historically, operated by the Company; 

(iv)        except those Materials of Environmental Concern that are
used by the Company to operate the Business in the Ordinary Course of Business, the Company has not caused Materials of Environmental Concern to be present on or in the Environment at the Leased Real Property in violation of any applicable
Environmental Law; 
 (v)        to the Company’s and the
Seller’s Knowledge, except those Materials of Environmental Concern that are used by the Company to operate the Business in the Ordinary Course of Business, the Company has not caused Materials of Environmental Concern to be present on or in
the Environment at the real property formerly owned or leased by the Company in violation of any applicable Environmental Law; 

(vi)        there has been no Release of any Materials of
Environmental Concern at or from any current Leased Real Property while the Company has occupied such Leased Real Property that under Environmental Law (A) could reasonably be expected to impose a liability for removal, remediation, or other
clean-up or (B) could be reasonably be expected to result in the imposition of a lien on the Leased Real Property or assets of the Company; 

(vii)        to the Company’s and the Seller’s Knowledge,
there has been no Release of any Materials of Environmental Concern at or from any real property formerly owned or leased by the Company in violation of any applicable Environmental Law; and 

(viii)        to the Seller’s knowledge there are no underground
storage tanks located on, nor have any underground storage tanks been removed by the Company from any Leased Real Property or any real property formerly owned or leased by the Company. 

(c)        Notwithstanding any other provisions of this Agreement to
the contrary, the representations and warranties made in this Section 2.17 are the sole and exclusive representations made in this Agreement by the Seller with respect to Environmental Laws, Environmental Matters, and Materials of
Environmental Concern. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 15

 Section 2.18 Legal Compliance. Except as set forth in
Section 2.18 of the Disclosure Schedule, the Company is, and at all times during the five (5) years preceding the Closing Date has been, in compliance with each Legal Requirement that is or was applicable to it or to the conduct or
operation of its business or the ownership or use of any of its assets except where the failure to so comply would not be Material to the Company or the Business. 

Section 2.19 Permits. Each permit, license, franchise, or authorization issued by any Governmental Authority and
used by the Company in the conduct of its business or operations as presently conducted (collectively, the “Permits”) is listed in Section 2.19-1 of the Disclosure Schedule, except for those Permits for which the failure
to have would not be Material to the Company or the Business. To the Seller’s Knowledge, except as set forth on Section 2.19-2 of the Disclosure Schedule, no Permit will be revoked or terminated prior to its normal expiration date
or not renewed solely as a result of the consummation of the transactions contemplated by this Agreement. 

Section 2.20 Insurance. Section 2.20 of the Disclosure Schedule lists Material policies of insurance
insuring the Business or the Company’s assets maintained by or for the benefit of the Company. The Seller represents that all such policies shall remain in full force and effect through May 1, 2015. 

Section 2.21 Customers and Suppliers. 

(a)        Section 2.21(a) of the Disclosure Schedule
identifies the twenty (20) largest customers of the Business, based on revenue for the year ended December 31, 2013 and the twenty (20) largest customers for the year ended December 31, 2014. 

(b)        Section 2.21(b) of the Disclosure Schedule
identifies the twenty (20) largest suppliers of the Business, based on expenses for the year ended December 31, 2013 and the twenty (20) largest suppliers for the year ended December 31, 2014. 

(c)        No customer identified in Section 2.21(a) of the
Disclosure Schedule and no supplier identified in Section 2.21(b) of the Disclosure Schedule has provided written notice to the Company of such customer’s or supplier’s intent to terminate its relationship with the Company.

 Section 2.22 Brokers’ Fees. Except as set forth on Section 2.22 of the Disclosure Schedule,
none of the Seller, the Company, nor any of their respective Affiliates has any liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement. 

Section 2.23 Book and Records; Bank Accounts. The books of account and other financial records of the Company, all
of which have been made available to the Buyer, are complete and correct in all Material respects and represent actual, bona fide transactions. The organizational book of the Company, which has been made available to the Buyer, contains the current
Organizational Documents and accurate and substantially complete records of all meetings held of, and limited liability action taken by, any member, the board of directors, and committees of the board of directors of the Company. At the Closing, all
of those books and records will be in the possession of the Company. Section 2.23 of the Disclosure Schedule lists the names, account numbers, and locations of all banks and other financial institutions of which the Company has any
accounts or safe deposit boxes, and the names of all Persons authorized to draft or have access to any such accounts. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 16

 Section 2.24 Certain Business Relationships with the Company. Except
as set forth on Section 2.24 of the Disclosure Schedule, none of the Seller nor any of their Affiliates, has been involved in any business arrangement or relationship with the Company within the two (2) years preceding the Closing
Date and none of the Seller or any of its Affiliates owns any asset, tangible or intangible, that is used in the business of the Company. 

Section 2.25 Recalls and Defects. Except for ordinary course warranty claims (for which a reserve is established),
there are no defects that, in the aggregate, whether known or unknown, existing in any extrusions or parts manufactured by the Company (or any of its subsidiaries or Affiliates) or any predecessor entity for which the Company has liability upon
which any valid legal claim may be made against the Buyer and/or the Company after Closing and which would be Material to the Company or the Business. 

Section 2.26 Legal Employees. All employees are employed by the Company in accordance with applicable Legal
Requirements, except where the failure to so comply would not be Material to the Company or the Business, and there are no outstanding or unresolved violations of any applicable immigration laws by the Company other than those which would not be
Material to the Company or the Business. 
 Section 2.27 Leased Equipment. All equipment for which the Company
shall maintain responsibility for continuing capital lease payments following the Closing is currently in the possession of the Company and, except as set forth on Section 2.4 of the Disclosure Schedule, the Company’s right to
maintain possession of such equipment shall be unaffected by the Closing. 
 Section 2.28 Indebtedness. Except as
set forth on Section 2.13 of the Disclosure Schedule, the Company does not have any indebtedness for borrowed money, including capital lease obligations. All of the indebtedness described in Item 1 of
Section 2.13(a)(iii) of the Disclosure Schedule will be paid in full in connection with the Closing. 

Section 2.29 No Change in Control Payments. Except as set forth on Section 6.3(e) of the Disclosure
Schedule, following the Closing, the Company shall not be liable to any Person for any payments that may become due and payable by the Company as a result of the Closing or the transactions contemplated by this Agreement. 

Article 3.      REPRESENTATIONS AND WARRANTIES OF THE BUYER 

The Buyer represents and warrants to the Seller as follows: 

Section 3.1 Organization. The Buyer is a corporation duly organized, validly existing and in good standing under
the laws of Delaware. 
 Section 3.2 Authorization of Transaction. The Buyer has all requisite corporate power
and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution, delivery, and performance of this Agreement and the other agreements and instruments to be executed by the Buyer in connection herewith, and
the consummation by the Buyer of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate action on the part of the Buyer. This Agreement and such other agreements and instruments contemplated
hereby have been, or will be on the Closing Date, duly and validly executed and delivered by the Buyer and constitute (or will constitute on the Closing Date), assuming the due authorization, execution, and delivery by the other parties 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 17

 
thereto, valid and binding obligations of the Buyer, enforceable against the Buyer in accordance with their respective terms, except that such enforcement may be subject to or limited by
(a) the effect of the applicable bankruptcy, reorganization, moratorium, and similar Legal Requirements related to or affecting the rights of creditors generally, and (b) the effect of general principles of equity (regardless of whether
enforceability is considered in a proceeding of law or in equity). 
 Section 3.3 Noncontravention. 

(a)        Neither the execution and delivery of this Agreement by the
Buyer, nor the consummation by the Buyer of the transactions contemplated hereby, will (i) conflict with or violate any provision of the Organizational Documents of the Buyer, (ii) conflict with, result in Breach of, constitute (with or
without due notice or lapse of time or both) a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice, consent, or waiver under, any contract, lease, sublease,
license, sublicense, franchise, permit, indenture, agreement or mortgage for borrowed money, instrument of indebtedness, Encumbrance, or other arrangement to which the Buyer is a party or by which the Buyer is bound or to which any of its assets are
subject, or (iii) assuming that the filings, registrations, notifications, authorizations, consents, and approvals referred to in Section 2.4(b) hereof have been obtained or made, as the case may be, violate any Legal Requirement
applicable to the Buyer or any of its properties or assets, except in the case of clause (ii), any conflict, Breach, default, right, requirement, or violation which would not have a material adverse effect on the financial condition or results
of operations of the Buyer or on the ability of the Buyer to consummate the transactions contemplated by this Agreement (a “Buyer Material Adverse Effect”). 

(b)        No filing or registration with, notification to, or
authorization, consent, or approval of, any Governmental Authority is required in connection with the execution and delivery of this Agreement or the performance by the Buyer of its obligations hereunder, except (i) compliance with any
applicable filing requirements of the HSR Act, or (ii) such other consents, approvals, orders, authorizations, notifications, registrations, declarations, and filings, the failure of which to be obtained or made would not have a Buyer Material
Adverse Effect. 
 Section 3.4 Broker’s Fees. Neither the Buyer nor any of its Affiliates has any liability
or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement 

Section 3.5 Litigation. There are no Proceedings pending against, or, to the Buyer’s Knowledge, threatened
against, the Buyer which would reasonably be expected to have a Buyer Material Adverse Effect. 
 Section 3.6
Investment Intent. The Buyer is acquiring the Company Interests for investment for its own account and not with a view to the distribution of any part thereof. The Buyer acknowledges that the Company Interests have not been registered under
the Legal Requirements of any jurisdiction. 
 Section 3.7 Solvency. On the Closing Date, the Buyer will have the
financial resources to pay the Closing Purchase Price on the terms contained in this Agreement. Following the Closing, the assets of the Buyer will exceed the total amount of its liabilities, the Buyer will be able to pay 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 18

 
its debts in the ordinary course of business as they mature, and the Buyer will have sufficient capital resources to carry on its business and the business of the Company and to fulfill all of
its obligations hereunder, including any Payments required under Section 1.4 hereof. 
 Article 4.      INDEMNIFICATION 

Section 4.1 Indemnification by the Seller. On the terms and subject to the conditions, qualifications and
limitations of this Article 4, from and after the Closing Date, the Seller shall indemnify the Buyer, the Company, and their Affiliates (the “Buyer Indemnified Persons”) in respect of, and hold the Buyer Indemnified Persons
harmless against, any and all liabilities, monetary damages, fines, fees, penalties, interest obligations, deficiencies, losses, costs, and expenses (including without limitation reasonable attorneys’ fees and expenses), but excluding any
indirect, punitive or special damages (collectively, “Damages”), incurred or suffered by a Buyer Indemnified Person related to, resulting from, or attributable to: (a) any (i) Breach of any representation or warranty of
the Seller contained in this Agreement or (ii) Breach of any covenant or agreement of the Seller contained in this Agreement; (b) any failure of any of the Seller to have good title to the issued and outstanding Company Interests free and
clear of any Encumbrance; (c) any and all known claims for which an adequate reserve (as determined by Exhibit 1.3 and, if not covered by Exhibit 1.3, then by GAAP) does not exist; or (d) resulting from any claim for brokerage or
finder’s fees or commissions or similar payments based upon any agreement or understanding made or alleged to have been made with any of the Seller or the Company (or any person or entity acting on their behalf) in connection with any of the
transactions contemplated by this Agreement. 
 Section 4.2 Indemnification by the Buyer. On the terms and
subject to the conditions, qualifications and limitations of this Article 4, from and after the Closing, the Buyer shall indemnify the Seller in respect of, and hold the Seller harmless against, any and all Damages incurred or suffered by any
of the Seller or any Affiliate thereof related to, resulting from, or attributable to: (a) any (i) Breach of any representation or warranty of the Buyer contained in this Agreement or (ii) Breach of any covenant or agreement of the
Buyer contained in this Agreement; or (b) any claim for brokerage or finder’s fees or commissions or similar payments based upon any agreement or understanding made or alleged to have been made with the Buyer in connection with any of the
transactions contemplated by this Agreement. 
 Section 4.3 Claims for Indemnification. 

(a)        All claims for indemnification made under this Article
4 resulting from a third-party claim against an Indemnified Party (as defined below) shall be made in accordance with the following procedures. A Person entitled to indemnification under this Article
4 (an “Indemnified Party”) shall give prompt written notification to the Person from whom indemnification is sought (the “Indemnifying Party”) of the commencement of any action, suit, or proceeding relating to a
third-party claim for which indemnification may be sought or, if earlier, upon the potential assertion of any such claim by a third party (collectively, an “Action”). Within thirty (30) days after delivery of such notification,
the Indemnifying Party may, upon written notice thereof to the Indemnified Party, assume control of the defense of the Action with counsel selected by the Indemnifying Party. If the Indemnifying Party does not assume control of such defense, the
Indemnified Party shall control such defense. The Party not controlling such defense of an Action may participate in such Action at its own expense. The Party 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 19

 
controlling such defense shall keep the other Party advised of the status of such Action, and the defense thereof and shall consider recommendations made by the other Party with respect thereto.
Neither the Indemnifying Party nor the Indemnified Party, as the case may be, shall agree to any settlement of such Action without the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed. 

(b)        An Indemnified Party wishing to assert a claim for
indemnification under this Article 4 that is not subject to Section 4.3(a) shall deliver to the Indemnifying Party a prompt written notice (a “Claim Notice”) which contains (i) a description and the amount
(the “Claimed Amount”) of any Damages incurred by the Indemnified Party, (ii) a statement that the Indemnified Party is entitled to indemnification under this Article 4 and a reasonable explanation of the basis therefor,
and (iii) a demand for payment in the amount of such Damages. Within sixty (60) days after delivery of a Claim Notice, the Indemnifying Party shall deliver to the Indemnified Party a written response in which the Indemnifying Party shall
either: (i) agree that the Indemnified Party is entitled to receive all of the Claimed Amount (in which case such response shall be accompanied by a payment by the Indemnifying Party to the Indemnified Party of the Claimed Amount, by check or
by wire transfer), or (ii) contest that the Indemnified Party is entitled to receive the Claimed Amount in whole or in part. If the Indemnifying Party in such response contests the payment of all or part of the Claimed Amount, the Indemnifying
Party and the Indemnified Party shall use good faith efforts to resolve such dispute. If such dispute is not resolved within sixty (60) days following the delivery by the Indemnifying Party of such response, then either Party may file a claim
to enforce its rights under this Agreement. 
 (c)        As a
condition to any payment by the Indemnifying Party, the Indemnified Party shall assign to the Indemnifying Party all of its rights with respect to the subject matter of the claim or otherwise make arrangements reasonably satisfactory to the
Indemnifying Party to provide that the Indemnifying Party is subrogated to such rights 

(d)        The Buyer and the Seller shall cooperate with each other
with respect to resolving any claim or liability with respect to which one Party is obligated to indemnify the other Party hereunder, including by making commercially reasonably efforts to mitigate or resolve any such claim or liability;
provided, however, that such Party shall not be required to make such efforts if they would be detrimental in any Material respect to such Party. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 20

 Section 4.4 Survival. Except as expressly set forth in this
Agreement, the representations and warranties of the Seller and the Buyer set forth in this Agreement, and the right to make a claim hereunder with respect to a Breach thereof, shall survive the Closing and the consummation of the transactions
contemplated hereby and shall remain in full force and effect for a period of twenty four (24) months following the Closing Date, at which time they shall expire; provided, however, that the representations and warranties set forth in
Sections 2.1, 2.2, 2.3 and 2.4 shall survive forever, and the representations and warranties set forth in Sections 2.11 and 2.17 shall survive for the applicable statutes of limitations periods. Any valid
claim for a Breach of a representation or warranty pursuant to Section 4.1(a)(i) or Section 4.2(a)(i) that is properly asserted in writing pursuant to Section 4.3 prior to the expiration as provided in this
Section 4.4 of the representation or warranty that is the basis for such claim shall survive until such claim is finally resolved and satisfied. 

Section 4.5 Limitations. 

(a)        Notwithstanding anything to the contrary contained in this
Agreement, each of the following limitations shall apply to any claim for indemnification under this Section 4: 

(i)        the Seller shall have no liability to the Buyer Indemnified
Persons pursuant to this Article 4 (other than in respect of any Breaches of representations contained in Sections 2.1, 2.2, 2.3, and 2.4 of this Agreement) until the aggregate amount of all alleged Damages
resulting therefrom exceed an amount equal to one-half of one percent (0.5%) of the Purchase Price and then indemnity shall attach to the first dollar of the indemnified claim(s); and 

(ii)        the overall aggregate liability of the Seller to the Buyer
Indemnified Persons pursuant to this Article 4 (other than in respect of Breaches of representations contained in Sections 2.1, 2.2, 2.3, and 2.4 of this Agreement) shall not exceed an amount equal to ten percent
(10%) of the Purchase Price and the overall aggregate liability of the Seller to the Buyer for Breaches of representations contained in Sections 2.1, 2.2, 2.3, and 2.4 of this Agreement shall not exceed an amount
equal to the Purchase Price. 
 (b)        Notwithstanding anything
to the contrary in this Agreement, the Buyer shall not be entitled to make any claim for indemnification with respect to any matter to the extent the Closing Purchase Price has been adjusted to reflect such matter pursuant to
Section 1.4, and the amount of any Damages for which indemnification is provided under this Article 4 shall be calculated net of any accruals, reserves, or provisions reflected in the Final Net Assets that is applicable to the
matter for which the accrual, reserve, or provision was created. 
 Section 4.6 Manner of Payment. Any
indemnification payments pursuant to this Article 4 shall be effected by wire transfer of immediately available funds to an account designated in writing by the applicable Indemnified Person within ten (10) Business Days after the final
determination thereof. All amounts to be paid by the Seller under this Article 4 shall first be paid from the Escrow until the Escrow is fully exhausted. 

Section 4.7 Remedies. The Parties acknowledge and agree that their respective sole and exclusive remedy with
respect to any and all claims relating to this Agreement and any document 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 21

 
or certificate delivered in connection with this Agreement, or any Legal Requirement or otherwise (other than claims of fraud) shall be pursuant to the indemnification provisions set forth in
Article 4. In furtherance of the foregoing, each Party hereby waives, to the fullest extent permitted under applicable Legal Requirements, any and all rights, claims and causes of action it or any of its Affiliates may have against the other
Party arising under or based upon this Agreement and any document or certificate delivered in connection with this Agreement, any Legal Requirement or otherwise (except pursuant to the indemnification provisions set forth in Article 4). 

Section 4.8 Determination of Damages; Adjustment of Purchase Price. The Parties will make adjustments for
insurance coverage in determining Damages for purposes of this Article 4 by reducing the amount of such Damages for any amounts that the Buyer or the Company actually receive in cash insurance proceeds (after giving effect to any applicable
deductible or retention, net of any premium increase as a result of any such claims and net of any costs to collect such amounts). Any indemnity payment under this Agreement shall be treated as an adjustment to the Purchase Price for Tax purposes,
unless a final determination (which shall include the execution of a Form 870-AD or successor form) with respect to the Indemnified Party or any of its Affiliates causes any such payment not to be treated as an adjustment to the Purchase Price for
United States federal income Tax purposes. 
 Article 5. TAX MATTERS 

The following provisions shall govern the allocation of responsibility as between the Buyer and the Seller for certain Tax
matters following the Closing Date. 
 Section 5.1 Tax Indemnification. The Seller shall indemnify the Company
and the Buyer indefinitely and hold them harmless from and against (a) all Taxes (or the non-payment thereof) of the Company for all taxable periods ending before the Closing Date and the portion thereof through the end of the Closing Date for
any taxable period that includes (but does not end on) the Closing Date (“Pre-Closing Tax Period”), except to the extent that such Taxes were taken into account in the calculation of the Final Net Assets or arise from a transaction
occurring after the Closing, (b) any and all Taxes for the Pre-Closing Tax Period of any member of an affiliated, consolidated, combined, or unitary group of which the Company (or any predecessor of any of the foregoing) is or was a member
prior to the Closing, including pursuant to Treasury Regulation § 1.1502-6 or any analogous or similar state, local, or foreign law or regulation, and (c) any and all Taxes of any Person (other
than the Company) imposed on the Company as a transferee or successor, by contract, or pursuant to any Legal Requirement if such Taxes relate to an event or transaction occurring before the Closing and such relationship existed prior to the Closing.
The indemnity provided in this Section 5.1 is not subject to the limitations contained in Article 4 hereof; provided, however, that the Seller’s obligations under this Section 5.1 shall not, in any event, exceed
the Purchase Price. 
 Section 5.2 Straddle Period. In the case of any taxable period that includes (but does not
end on) the Closing Date (a “Straddle Period”), the amount of any Taxes for the Pre-Closing Tax Period shall be determined based on an interim closing of the books as of the close of business
on the Closing Date. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 22

 Section 5.3 Responsibility for Filing Tax Returns. 

(a)        The Seller shall prepare or cause to be prepared and cause
to be timely filed all Tax Returns for the Company that are filed after the Closing Date that pertain to periods prior to the Closing Date. Upon completion of such Tax Returns for the Company that pertain to periods prior to the Closing Date, the
Seller shall pay to the Buyer (through the use of the Escrow, if available), any Tax payments due on such returns except to the extent that such Taxes were taken into account in the calculation of the Final Net Assets. Buyer shall then remit or
cause to be remitted all Taxes in respect of such Tax Returns payable after the Closing Date. The Seller shall permit the Buyer to review and comment on each Tax Return described in the preceding sentence for a period of up to ten (10) days
prior to filing and shall make such revisions of such Tax Returns as are reasonably requested by the Buyer’s Representative. 

(b)        The Buyer shall prepare or cause to be prepared and cause to
be timely filed all Tax Returns for the Company for each Straddle Period. The Buyer shall permit the Seller to review and comment on each Tax Return described in the preceding sentence for a period of up to ten (10) days prior to filing and
shall make such revisions to such Tax Returns as are reasonably requested by the Seller. In the event of a dispute between the Parties with respect to any item on any such Tax Return, the Parties shall act in good faith to resolve any such dispute
prior to the date on which such Tax Return is required to be filed. The Buyer agrees to file all permitted extensions of time to file such Tax Return as shall be reasonably required to allow any such dispute to be resolved. If the Parties hereto
cannot resolve any disputed item, the item or items in question shall be resolved in a manner similar to that set forth in Section 1.4(c) and Section 1.4(d) hereof. Upon completion of such Tax Returns, Seller shall pay to
Buyer (through the use of Escrow funds established hereunder, if available), the portion of the Tax payments due on such returns that relate to the Pre-Closing Tax Period, except to the extent such Taxes were taken into account in the calculation of
the Final Net Assets. Buyer shall then pay all Taxes due in respect of such Tax Returns. 

(c)        The parties acknowledge that the Company shall be
disregarded as a separate entity for federal and applicable state income Tax purposes (before and during the Closing) and will not be filing income Tax Returns with respect to such income Taxes (so that, for the avoidance of doubt, the foregoing
provisions of this Section 5.3 shall not apply to Tax Returns for Taxes that are income or franchise Taxes). 

Section 5.4 Refunds and Tax Benefits. Any Tax refunds that are received by the Buyer or the Company, and any
amounts credited against Tax to which the Buyer or the Company become entitled, that relate to Tax periods or portions thereof ending before the Closing Date shall be for the account of the Seller. The Buyer shall promptly notify the Seller in
writing of any Tax refund(s) received by or payable to the Company after the Closing that relate to Tax periods or portions thereof ending before the Closing Date. The Buyer shall pay over to the Seller any such refund or the amount of any such
credit within fifteen (15) days after receipt or entitlement thereto. The Buyer shall cooperate, and cause the Company to cooperate, in obtaining any refund that the Seller reasonably believes should be available, including without limitation,
through filing appropriate forms with the applicable Taxing Authorities. Any costs incurred in the pursuit of such returns for the benefit of the Seller shall be the responsibility of the Seller. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 23

 Section 5.5 Cooperation on Tax Matters; Tax Audits. 

(a)        The Buyer and the Seller shall cooperate fully, as and to
the extent reasonably requested by the other Party, in connection with the filing of Tax Returns pursuant to this Article 5 and any Tax Audit or other Proceeding with respect to Taxes. Such cooperation shall include the retention and (upon
the other Party’s request) the provision of records and information that are reasonably relevant to any such audit or other Proceeding and making employees available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder. The Parties agree (i) to retain all books and records with respect to Tax matters pertinent to the Company relating to any taxable period beginning before the Closing Date until the expiration of
the statute of limitations (and, to the extent notified by the Buyer or the Seller, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any Taxing Authority (any such
agreements are listed in Schedule 5.5(a) hereof), and (ii) to give the other Party reasonable written notice prior to transferring, destroying, or discarding any such books and records and, if the other Party so requests, the Buyer or
the Seller, as the case may be, shall allow the other Party to take possession of such books and records. 

(b)        The Seller shall have the sole right to represent the
Company’s interests in any audit or examination (“Tax Audit”) or Proceeding by any Taxing Authority with respect to Tax periods or portions thereof ending before the Closing Date and to employ counsel of its choice at its
expense. In the case of a Straddle Period, the Seller shall be entitled to participate at its expense in any Tax Audit or Proceeding relating in any part to Taxes attributable to the portion of such Straddle Period deemed to end before the Closing
Date and, with the written consent of the Buyer (which shall not be unreasonably withheld), at the Seller’s sole expense, may assume the control of such entire Tax Audit or Proceeding. Neither the Buyer (or its Affiliates) nor the Seller (or
its Affiliates) may settle or otherwise dispose of any Tax Audit or Proceeding for which the other party may have a liability under this Agreement or retroactive or prospective tax consequence, or which may result in an increase in either’s
liability under this Agreement, without the prior written consent of the affected party or affiliate, which consent shall not be unreasonably withheld but which may be conditioned on indemnifying the affected party or affiliate with respect to such
liability. 
 (c)        The Buyer and the Seller further agree, upon
request, to use their best efforts to obtain any certificate or other document from any Governmental Authority or any other Person as may be necessary to mitigate, reduce, or eliminate any Tax that could be imposed (including, but not limited to,
with respect to the transactions contemplated hereby). 

(d)        The Buyer and the Seller further agree, upon request, to
provide the other Party with all information that either Party may be required to report pursuant to Code § 6043, or Code § 6043A, or Treasury Regulations promulgated thereunder. 

(e)        Neither the Buyer (or its Affiliates) nor the Seller (or its
Affiliates) shall (or shall cause or permit the Company to) amend, re-file, or otherwise modify any Tax Return relating in whole or in part to the Company with respect to Tax periods or portions thereof ending before the Closing Date (or with
respect to any Straddle Period) 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 24

 
without the prior written consent of the other party’s representative, which consent may be withheld in the sole discretion of the representative, unless such modification does not result in
any adverse Tax consequences to such other Party. 
 Section 5.6 Certain Taxes and Fees. All excise, sales, use,
transfer, stamp, documentary, filing, recordation, and other similar taxes, together with any interest, additions, or penalties with respect thereto and any interest in respect of such additions or penalties (the “Transfer Taxes”),
resulting from the transfer of the Company Interests pursuant to this Agreement shall be shared equally by the Buyer and the Seller. Notwithstanding anything contained in this Article 5 to the contrary, any Tax Returns that must be filed in
connection with Transfer Taxes shall be prepared and timely filed by the Seller and the Seller shall provide the Buyer with a reasonable opportunity to review, and provide comments to, any such Tax Returns prior to filing any such Tax Returns. 

Article 6. FURTHER AGREEMENTS 

Section 6.1 Access to Information; Record Retention; Cooperation. 

(a)        Following the Closing, each Party shall afford to the other
Party and to the other Party’s Affiliates, authorized accountants, counsel, and other designated representatives reasonable access (including using reasonable efforts to give access to third parties possessing information and providing
reasonable access to its own employees who are in possession of relevant information) and duplicating rights during normal business hours to all non-privileged records, books, contracts, instruments, documents, correspondence, computer data, and
other data and information (collectively, “Information”) within the possession or control of such Party or its Affiliates, relating to the Company or its business or operations prior to the Closing, insofar as such access is
reasonably required by the other Party. Information may be requested under this Section 6.1(a) for, without limitation, any financial reporting and accounting matters, preparing or verifying financial statements, preparing and filing of
any Tax Returns, prosecuting any claims for refund, defending any Tax claims or assessment, preparing securities law or exchange filings, prosecuting, defending, or settling any litigation, Environmental Matter, or insurance claim, performing this
Agreement and the transactions contemplated hereby, and all other proper business purposes. 

(b)        Following the Closing, each Party shall use commercially
reasonable efforts to make available to the other Party, upon written request, such Party’s and its Affiliates’ officers, directors, employees, and agents to the extent that such persons may reasonably be required in connection with any
legal, administrative, or other proceedings in which the requesting Party may from time to time be involved relating to the Company or its businesses or operations prior to the Closing or for any other matter referred to in
Section 6.1(a). 
 (c)        A Party providing
Information or personnel to the other Party under Section 6.1(a) or Section 6.1(b) shall be entitled to receive from the recipient, upon the presentation of invoices therefor, payments for such amounts, relating to supplies,
disbursements, and other out-of-pocket expenses, as may be reasonably incurred in providing such Information; provided, however, that no such reimbursements shall be 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 25

 
required for the salary or cost of fringe benefits or similar expenses pertaining to employees or directors of the providing Party or its Affiliates. 

(d)        Each of the Buyer and the Seller shall hold, and shall use
commercially reasonable efforts to cause their respective Affiliates, consultants, and advisors to hold, in strict confidence all Information concerning the other furnished to it by the other Party or the other Party’s representatives at any
time prior to Closing or pursuant to this Section 6.1 (except to the extent that such Information (i) is or becomes generally available to the public other than as a result of a disclosure by the receiving Party in violation of the
terms of this Section 6.1, (ii) was within the possession of the receiving Party prior to it being furnished to the receiving Party by or on behalf of the other Party pursuant hereto, provided that the source of such information was
not known by the receiving Party at the time of receipt to be bound by a confidentiality agreement with or other contractual, legal, or fiduciary obligation of confidentiality to the other Party or any other party with respect to such information,
or (iii) is or becomes available to the receiving Party from a source other than the other Party, provided that such source is not, to the Knowledge of the receiving Party at the time of receipt, bound by a confidentiality agreement with or
other contractual, legal, or fiduciary obligation of confidentiality to the other Party or any other party with respect to such information), and each Party shall not release or disclose such Information to any other person, except its auditors,
attorneys, financial advisors, bankers, and other consultants and advisors, unless compelled to disclose such Information by judicial or administrative process or, as advised by its counsel, by other requirements of law; provided,
however, that in the case of disclosure by a receiving Party compelled by judicial or administrative process, the receiving Party shall, to the extent legally permissible, notify the disclosing Party promptly of the request or requirement so
that the disclosing Party may seek, at the disclosing Party’s sole cost and expense an appropriate protective order or waive compliance with the provisions of this Section 6.1(d). If, in the absence of a protective order or the
receipt of a waiver hereunder, a Party is, on the written advice of counsel, compelled to disclose any Information by judicial or administrative process, such Party may so disclose the Information; provided, however, that, at the
written request of the disclosing Party, the receiving Party shall use commercially reasonable efforts to obtain, at the expense of the disclosing Party an order or other assurance that confidential treatment will be accorded to such portion of the
Information required to be disclosed. 
 Section 6.2 Further Assurances. At any time and from time to time after
the Closing, as and when requested by any Party hereto and at such Party’s expense, the other Party shall promptly execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be
taken, all such further or other actions as such other Party may reasonably deem necessary or desirable to evidence and effectuate the transactions contemplated by this Agreement. 

Section 6.3 Employee Matters. 

(a)        Each individual who is employed by the Company immediately
prior to the Closing Date shall remain an employee of the Company following the Closing Date (each such employee, an “Affected Employee”). 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 26

 (b)        As of the
Closing, each Affected Employee shall remain eligible to participate, without any waiting time, in welfare benefit plans currently available to employees of the Company. 

(c)        Effective as of the Closing, the Buyer shall cause the
Company to continue to recognize all accrued and unused vacation days, holidays, personal, sickness, and other paid time off days (including banked days) that have accrued to Affected Employees through the Closing and which have been reserved for in
the Closing Net Asset Schedule. 
 (d)        The Buyer acknowledges
that no Affected Employee shall be terminated solely due to the transaction contemplated by this Agreement, and, therefore, no obligations under the Consolidated Omnibus Reconciliation Act of 1985, as amended, and the regulations and rules issued
pursuant thereto (“COBRA”) will arise in connection with such transaction. The Buyer shall or shall cause the Company to meet any obligation under COBRA with respect to qualifying events occurring after the Closing. 

(e)        The Buyer acknowledges that the Company intends to pay
transaction bonuses to certain of the Affected Employees in connection with the Closing (the “Employee Bonuses”). The recipients and the amounts of the Employee Bonuses are set forth on Section 6.3(e) of the Disclosure
Schedule. The Buyer acknowledges that the Estimated Net Assets has been (and that the Closing Net Assets will be) reduced by the amount of the Employee Bonuses (including all applicable withholding and other related Taxes) regardless of when such
Employee Bonuses are paid and understands that the Company shall pay such Employee Bonuses as directed by the Seller (even if such payment is after the Closing Date). The Buyer agrees that the Seller shall be entitled to all Tax benefits (including
the benefit of any compensation deductions) associated with or otherwise related to the payment of the Employee Bonuses. 

Section 6.4 Director and Officer Insurance. 

(a)        For a period of six (6) years from and after the
Closing Date, the Company shall, and the Buyer shall cause the Company to, maintain all rights to indemnification (including the advancement of expenses) existing in favor of each present and former Manager and officer of the Company (collectively,
the “Officer and Director Indemnified Parties”), under their respective certificates of formation, limited liability company agreements, or other governing documents, as applicable, as in effect as of the Effective Time, and shall
not amend, repeal or modify any provision thereof relating to the exculpation or indemnification of any officers and/or Managers, it being the intent of the parties that the officers and/or Managers of the Companies shall continue to be entitled to
such exculpation and indemnification to the full extent of the Law. 

(b)        At or prior to the Closing, the Seller shall, or shall cause
the Company to purchase (at the Seller’s expense) a so-called “tail” policy for such directors’ and officers’ liability insurance covering those persons who are currently covered by the Company’s directors’ and
officers’ liability insurance policies with coverage in amount and scope at least as favorable as the Company’s existing coverage for a period of at least six (6) years after the Closing. Any amount that remains payable by the Seller
or the Company at or after the Closing to purchase such tail policy pursuant to this Section 6.4(b) will be treated as a liability for purposes of the calculation of Closing Net Assets. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 27

 (c)        The provisions
of this Section 6.4 are (i) intended to be for the benefit of, and shall be enforceable by, each Officer and Director Indemnified Party, and each such Person’s heirs, representatives, successors or assigns, it being expressly
agreed that such Persons shall be third party beneficiaries of this Section 6.4, and (ii) in addition to, and not in substitution for, any other right to indemnification or contribution that any such Person may have by contract or
otherwise. Following the Closing, the Buyer shall not enter into, or permit any of its Affiliates to enter into, any merger, consolidation or similar transaction unless the Buyer and the Company shall have ensured that the surviving or resulting
entity is creditworthy and will assume the obligations imposed by this Section 6.4 and the Buyer and the Company remain liable hereunder. 

Article 7. MISCELLANEOUS

 Section 7.1 Definitions and Usage 

(a)        In addition to other terms defined in this Agreement,
capitalized terms used in this Agreement have the following meanings: 
 “Actual Cash Balance” means an
amount, which may be a positive or negative number, equal to (a) the aggregate cash balances of the Company’s bank accounts and cash equivalents of the Company, in each case as of the Effective Time, plus all checks and funds received by
any of the Company or its banks as of the Effective Time, regardless of whether cleared, less (b) the sum of the amount of any outstanding uncleared checks, drafts or wire transfers or overdrafts or other similar fees of the Company, in each
case, as determined in accordance with GAAP. 
 “Affiliate” means, with respect to any Person, any Person
directly or indirectly controlling, controlled by, or under common control with such other Person. This specifically includes officers, directors, and employees. For purposes of determining whether a Person is an Affiliate, the term
“control” shall mean 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 securities, by virtue of the office held by such Person, by
contract, or otherwise. 
 “Breach” means, as to any representation, warranty, covenant, obligation, or
other provision of this Agreement or any other instrument or certificate executed and delivered pursuant hereto, any inaccuracy in, or any failure to perform or comply with, such representation, warranty, covenant, obligation, or other provision.

 “Business Day” means any day that is not a Saturday, Sunday, or other day on which banks in the City of
Elkhart, Indiana are authorized or required to be closed. 
 “Code” means the Internal Revenue Code of
1986, as amended. 
 “Contract” means any agreement, lease, contract, note, mortgage, indenture, or other
legally binding obligation or commitment, written or oral. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 28

 “Company” means Postle Operating, LLC, a Delaware limited
liability company, and, where the context requires (including with respect to Article 2), its direct and indirect subsidiaries. 

“Disclosure Schedules” means the Disclosure Schedules delivered by Seller to Buyer concurrently with the
execution and delivery of this Agreement. 
 “Employee Non-Competes” means those non-competition agreements
described on Section 7.1(a)-1 of the Disclosure Schedule. 
 “Encumbrances” means any mortgage,
pledge, security interest, encumbrance, charge, or other lien (whether arising by contract or by operation of law), other than (A) mechanic’s, materialmen’s, and similar liens that are individually and in the aggregate not Material to
the Company, taken as a whole, (B) liens on goods in transit incurred pursuant to documentary letters of credit, (C) liens with respect to current Taxes not yet due and payable or due but not delinquent, (D) purchase money liens and
liens securing rental payments under capital lease arrangements, and (E) other liens arising in the Ordinary Course of Business and not incurred in connection with the borrowing of money. 

“Environmental Assessments” means any environmental reports, assessments, and any similar reports obtained by
Buyer regarding any of the Tangible Property. 
 “Governmental Authority” means the government of the
United States of America, the government of Canada, any nation, state, province, principality, county, city, town, village, district, or other jurisdiction of any nature located within the United States or Canada, and any federal, state, local,
municipal, other government, or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal) entitled to exercise, any administrative, executive, judicial,
legislative, police, regulatory, or taxing authority or power of any nature within the United States of America or Canada. 

“Knowledge” – an individual will be deemed to have “Knowledge” (whether such term is
capitalized or not) of a particular fact or other matter if such individual is actually aware of such fact or other matter or, in the exercise of reasonable diligence, should have been aware of such fact or matter. A Person (other than an
individual) will be deemed to have “Knowledge” (whether capitalized or not) of a particular fact or other matter if any individual who is serving, or who has at any time served, as a director, officer, partner, executor, or trustee of such
Person (or in any similar capacity) has, or at any time had, Knowledge of such fact or other matter. 
 “Leased Real
Property” means that certain real property described on Section 7.1(a)-2 of the Disclosure Schedule. 

“Legal Requirement” means any federal, state, local, municipal, constitution, law, rule, ordinance, principle
of common law, code, regulation, statute, or treaty, and any award, decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any court, administrative agency, or other Governmental Authority or by any
arbitrator. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 29

 “Manager” means any individual designated in the organizational
documents of the Company as a manager of the Company in the role similar to a director of a corporation. This term excludes operational level managers who are not specifically designated as a manager in the organizational documents of the Company.

 “Material” means any action, occurrence or circumstance that would have (i) a valuation of greater
than $125,000, or (ii) a significant impact on the operations of the Company. 
 “Material Adverse
Effect” means any action, occurrence or circumstance that would have a material adverse effect on the business, financial condition, or results of operations of the Company or that would otherwise have a material adverse non-financial
effect on the operations of the Company, except to the extent such adverse effect results from (A) general economic, financial, or market conditions in any of the geographic areas in which the Company operates, (B) conditions caused by
acts of terrorism or war (whether or not declared), (C) conditions or circumstances generally affecting the businesses or industries, as a whole, in which the Company operates, (D) the consummation of the transactions contemplated hereby,
or (E) any changes in applicable Legal Requirements. 
 “Ordinary Course of Business” – an action
taken by a Person will be deemed to have been taken in the “Ordinary Course of Business” if such action is consistent with the past practices of such Person and is taken in the ordinary course of the normal day-to-day operations of
such Person. 
 “Organizational Documents” means (A) the articles or certificate of incorporation and
the bylaws of a corporation; (B) the partnership agreement and any statement of partnership of a general partnership; (C) the limited partnership agreement and the certificate of limited partnership of a limited partnership; (D) the
operating agreement or limited liability company agreement and articles or certificate of organization of a limited liability company; (E) any charter or similar document adopted or filed in connection with the creation, formation, or
organization of a Person; and (F) any amendment to any of the foregoing. 
 “Person” means an
individual, a corporation, a general partnership, a limited partnership, a limited liability company, an association, a trust, or any other entity or organization, including a government or political subdivision or an agency or instrumentality
thereof. 
 (b)        In this Agreement, unless a clear contrary
intention appears: 
 (i)        the singular number includes the
plural number and vice versa; 
 (ii)        reference to any Person
includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are not prohibited by this Agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity or
individually; 
 (iii)        reference to any gender includes each
other gender; 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 30

 (iv)         reference
to any agreement, document, or instrument means such agreement, document, or instrument as amended or modified and in effect from time to time in accordance with the terms thereof; 

(v)         reference to any Legal Requirement means such Legal
Requirement as amended, modified, codified, replaced, or reenacted, in whole or in part, and in effect as of the date of the Closing, including rules and regulations promulgated thereunder, and reference to any section or other provision of any
Legal Requirement means that provision of such Legal Requirement from time to time in effect and constituting the substantive amendment, modification, codification, replacement, or reenactment of such section or other provision; 

(vi)         “hereunder,” “hereof,”
“hereto,” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Article, Section, or other provision hereof; 

(vii)         “including” (and with correlative meaning
“include”) means including without limiting the generality of any description preceding such term; 

(viii)         “or” is used in the inclusive sense of
“and/or;” 
 (ix)         with respect to the
determination of any period of time, “from” means “from and including” and “to” means “to but excluding;” 

(x)         references to documents, instruments, or agreements shall
be deemed to refer as well to all addenda, exhibits, schedules, or amendments thereto; and 

(xi)        all references to “Dollars” or “$”
refer to currency of the United States of America. 

(xii)        References to “the Company’s Knowledge” or
“the Seller’s Knowledge” shall be deemed to be references to the Company’s and/or the Seller’s Knowledge. 

(c) This Agreement was negotiated by the Parties with the benefit of legal representation, and any rule of
construction or interpretation otherwise requiring this Agreement to be construed or interpreted against any Party shall not apply to any construction or interpretation of this Agreement. 

Section 7.2 Press Releases and Announcements. No Party shall issue (and each Party shall cause its Affiliates not
to issue) any press release or public disclosure relating to the subject matter of this Agreement without the prior written approval of the other Party; provided, however, that either Party may make any public disclosure it believes in
good faith is required by law, regulation, or stock market rule (in which case the disclosing Party shall advise the other Party and the other Party shall have the right to review such press release or announcement prior to its publication). 

Section 7.3 No Third-Party Beneficiaries. This Agreement shall not confer
any rights or remedies upon any person other than the Parties and their respective successors and permitted assigns and, to the extent specified herein, their respective Affiliates. 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 31

 Section 7.4 Action to be Taken by Affiliates. The Parties shall cause
their respective Affiliates to comply with all of the obligations specified in this Agreement to be performed by such Affiliates. Prior to the Closing, the Company will be deemed to be an Affiliate of the Seller and not of the Buyer. Following the
Closing, the Company will be deemed to be an Affiliate of the Buyer and not of the Seller. 
 Section 7.5 Entire
Agreement. This Agreement (including the Disclosure Schedules) and the Assignments constitute the entire agreement between the Buyer, on the one hand, and the Seller, on the other hand. This Agreement supersedes any prior understandings,
agreements, or representations by or between the Buyer and its Affiliates, on the one hand, and the Seller and its Affiliates, on the other hand, whether written or oral, with respect to the subject matter hereof (other than the Assignments). 

Section 7.6 Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties
named herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other Party. 

Section 7.7 Counterparts; Facsimile Signatures. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered by facsimile. 

Section 7.8 Headings. The section headings contained in this Agreement are inserted for convenience only and shall
not affect in any way the meaning or interpretation of this Agreement. 
 Section 7.9 Notices. All notices and
other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the Party to be notified, (b) upon transmission when sent by facsimile, provided
electronic confirmation of successful transmission is received by the sending Party and a confirmation copy is sent on the same day as the facsimile transmission by nationally recognized overnight courier, specifying next day delivery, with written
verification of receipt, (c) five (5) Business Days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) Business Day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of receipt, in each case to the intended recipient as set forth below: 
  

			
	 If to the Buyer:
		 Mr. Robert Martin

Chief Executive Officer
 Thor
Industries, Inc.
 601 East Beardsley Avenue

Elkhart, IN 46514

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 32

			
	 Copy to:
		 Mr. Todd Woelfer

Senior Vice President, General Counsel and Corporate Secretary

Thor Industries, Inc.
 601 East
Beardsley Avenue
 Elkhart, IN 46514

		
	 If to the Seller:
		 Mr. Adam Wise

Postle Aluminum Company LLC
 c/o
Strength Capital Partners
 350 N. Old Woodward Ave.

Suite 100
 Birmingham, MI
48009
 Fax: (248) 593-6875

		
	 Copy to:
		 M. Lee B. Kellert

Jaffe, Raitt, Heuer, & Weiss, PC

27777 Franklin Road
 Suite
2500
 Southfield, MI 48034

Fax: (248) 531-3082

 Any Party may give any notice, request, demand, claim, or other communication hereunder using any other means
(including personal delivery, expedited courier, messenger service, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been duly given unless and until it actually is
received by the Party for whom it is intended. Either Party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other Party notice in the manner herein set forth.

 Section 7.10 Governing Law. This Agreement shall be governed by and construed in accordance with the internal
laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the
State of Delaware. 
 Section 7.11 Amendments and Waivers. The Parties may mutually amend or waive any provision
of this Agreement at any time. No amendment or waiver of any provision of this Agreement shall be valid unless the same shall be in writing and signed by each of the Parties. No waiver by either Party of any default, misrepresentation, or Breach of
warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or Breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior
or subsequent such occurrence. 
 Section 7.12 Severability. Any term or provision of this Agreement that is
invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or
in any other jurisdiction. If the final judgment of a court of competent jurisdiction declares that any term or provision hereof is invalid or unenforceable, the 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 33

 
Parties agree that the body making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or area of the term or provision, to delete specific
words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this
Agreement shall be enforceable as so modified after the expiration of the time within which the judgment may be appealed. 

Section 7.13 Expenses. Except as otherwise specifically provided to the contrary in this Agreement, each of the
Parties shall bear its own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby. For avoidance of doubt, the Parties acknowledge that the Seller will be permitted
to allocate any of its costs and expenses to the Company prior to the Closing, and that such costs and expenses shall be paid at the Closing, provided such costs and expenses are actually paid at the Closing or appropriately reflected in the
Financial Statements and the Final Net Assets. 
 Section 7.14 Specific Performance. Each of the Parties
acknowledges and agrees that the other Party would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached. Accordingly, each of the Parties
agrees that the other Party shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action instituted in any
court of the United States or any state thereof having jurisdiction over the Parties and the matter. 
 Section 7.15
Incorporation of Exhibits, Schedules, and Attachments. The Exhibits, Schedules, and Attachments identified in this Agreement are incorporated herein by reference and made a part hereof. 

Section 7.16 Submission to Jurisdiction. Except as otherwise expressly set forth in this Agreement, the Parties
hereby irrevocably and unconditionally agree that any dispute arising from this Agreement or the transaction contemplated by this Agreement shall be submitted to binding arbitration, using the Commercial Arbitration Rules of the American Arbitration
Association. The parties agree that they shall attempt in good faith to agree upon a single arbitrator to decide the matter. In the event that after a period of fifteen (15) days after receipt of the demand for arbitration the parties have
failed to agree upon a single arbitrator, each party shall name a single arbitrator. The two named arbitrators shall then be responsible for identifying a third, neutral arbitrator who shall arbitrate such dispute. Any such arbitrator shall have
significant experience in arbitrating disputes regarding mergers and acquisition transactions of a size and nature similar to the transactions contemplated by this Agreement. Unless otherwise agreed, in writing, by both parties, the arbitration
shall take place in Elkhart Country, Indiana. Each Party shall be responsible for its own costs and fees in connection with such arbitration; provided, however, that the arbitrator may award the prevailing party in such arbitration reasonable legal
and other professional fees incurred in connection with such arbitration. The arbitrator shall deliver a reasoned award with respect to his or her findings and such award, absent fraud, manifest error or bad faith, shall be deemed a final
arbitration award that is binding on each of the Buyer and the Seller. Judgment may be entered to enforce such award in any court of competent jurisdiction. 

[Signature Pages Follow] 

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		 34

 IN WITNESS WHEREOF, the Parties
hereto have executed this Membership Interest Purchase Agreement as of the date first above written. 
  

			
	 BUYER
  

Thor Industries, Inc.

		
	By:		/s/ Robert W. Martin

 
			
		
	PRINTED NAME:		ROBERT W. MARTIN

 
			
		
	TITLE:		PRESIDENT AND CEO
	
	 SELLER
  

Postle Aluminum Company, LLC

		
	By:		/s/ Kevin Robinson

 
			
		
	PRINTED NAME:		KEVIN ROBINSON

 
			
		
	TITLE:		CEO

  

			
	MEMBERSHIP INTEREST PURCHASE AGREEMENT		SIGNATURE PAGE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}]]