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ex101llcferreraagreement

EXHIBIT 10.1      EXECUTION COPY                  AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT   OF   FERRARA BROS., LLC    (a Delaware limited liability company)   Effective as of   April 9, 2015        

 

   i      TABLE OF CONTENTS   Page   ARTICLE I DEFINITIONS ............................................................................................................1    1.1  Definitions................................................................................................................1    1.2  Construction; Usage Generally ...............................................................................4    1.3  Cross References to Other Defined Terms .............................................................5    ARTICLE II THE COMPANY AND ITS BUSINESS ...................................................................6    2.1  Formation .................................................................................................................6    2.2  Company Name .......................................................................................................6    2.3  Effective Date ..........................................................................................................6    2.4  Term .........................................................................................................................6    2.5  Offices ......................................................................................................................6    2.6  Registered Office and Registered Agent ..................................................................6    2.7  Filings; Authorized Persons .....................................................................................6    2.8  Purposes ...................................................................................................................6    2.9  No Partnership .........................................................................................................6    ARTICLE III CAPITAL CONTRIBUTIONS; DISTRIBUTIONS ................................................7    3.1  Admission ................................................................................................................7    3.2  Additional Capital Contributions .............................................................................7    3.3  No Interest in Company Property ............................................................................7    3.4  Distributions .............................................................................................................7    ARTICLE IV MEMBERSHIP INTEREST.....................................................................................8    4.1  Membership Interest ................................................................................................8    4.2  Designation of Membership Interest ........................................................................9    4.3  Issue of Membership Interests; Register; Transfer ..................................................9    4.4  Certificates ...............................................................................................................9    ARTICLE V MANAGEMENT OF THE COMPANY ...................................................................9    5.1  Management and Control of the Company ...............................................................9    5.2  Members Shall Not Manage or Control ...................................................................9    5.3  Board of Managers ...................................................................................................9    5.4  Meetings of the Board of Managers.......................................................................10    5.5  Quorum and Voting ...............................................................................................10    5.6  Procedural Matters of the Board of Managers .......................................................10    5.7  Officers ..................................................................................................................11    5.8  Terms of Office; Resignation; Removal ................................................................11    5.9  Compensation ........................................................................................................12    5.10  Subsidiaries ............................................................................................................12    ARTICLE VI MEMBERS AND MEETINGS ..............................................................................12    6.1  Members .................................................................................................................12     

 

   ii      6.2  Admission of New Members .................................................................................12    6.3  Resignation ............................................................................................................12    6.4  Power of Members .................................................................................................12    6.5  Meetings of Members ............................................................................................12    6.6  Place of Meetings ...................................................................................................12    6.7  Notice of Members’ Meetings ...............................................................................12    6.8  Waiver of Notice ....................................................................................................13    6.9  Voting ....................................................................................................................13    6.10  Quorum; Vote Required .........................................................................................13    6.11  Action by Written Consent of Members ................................................................13    6.12  Voting by Ballot .....................................................................................................14    6.13  No Cumulative Voting ...........................................................................................14    ARTICLE VII EXCULPATION; INDEMNIFICATION; LIABILITY; OPPORTUNITY .........14    7.1  Exculpation ............................................................................................................14    7.2  Indemnification ......................................................................................................15    7.3  Liability; Duties .....................................................................................................16    7.4  Insurance ................................................................................................................16    7.5  Limited Liability Company Opportunity ...............................................................16    ARTICLE VIII ACCOUNTING; FINANCIAL AND TAX MATTERS .....................................17    8.1  Books and Records; Reports ..................................................................................17    8.2  Fiscal Year; Taxable Year .....................................................................................17    8.3  Bank and Investment Accounts .............................................................................17    8.4  Tax Election ...........................................................................................................18    ARTICLE IX TRANSFERS OF MEMBERSHIP INTERESTS ...................................................18    9.1  Limitation on Transfer ...........................................................................................18    9.2  Effect of Transfer ...................................................................................................18    9.3  Tolling ....................................................................................................................18    9.4  Restrictive Covenants ............................................................................................18    9.5  Put and Call Option ................................................................................................19    ARTICLE X DISSOLUTION OF COMPANY; LIQUIDATION AND DISTRIBUTION   OF ASSETS .......................................................................................................................21    10.1  Events of Dissolution .............................................................................................21    10.2  Liquidation; Winding Up .......................................................................................21    10.3  Survival of Rights, Duties and Obligations ...........................................................22    10.4  Claims of the Members ..........................................................................................22    ARTICLE XI MISCELLANEOUS ...............................................................................................22    11.1  Expenses ................................................................................................................22    11.2  Further Assurances.................................................................................................22    11.3  Notices ...................................................................................................................22    11.4  Amendments; Termination ....................................................................................22    11.5  Severability ............................................................................................................22    11.6  Headings and Captions ..........................................................................................23     

 

   iii      11.7  Counterparts ...........................................................................................................23    11.8  GOVERNING LAW ..............................................................................................23    11.9  Jurisdiction .............................................................................................................23    11.10  Entire Agreement; Non-Waiver .............................................................................23    11.11  No Third Party Beneficiaries .................................................................................23    11.12  No Right to Partition ..............................................................................................23    11.13  Investment Representation and Indemnity.............................................................24          Schedule 3.1 Members, Addresses, Membership Interests and Initial Capital Contributions        

 

      AMENDED AND RESTATED    LIMITED LIABILITY COMPANY AGREEMENT   OF   FERRARA BROS., LLC      THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT   (as may be amended, supplemented or otherwise modified from time to time in accordance with the terms   hereof, the “Agreement”) of Ferrara Bros., LLC, a Delaware limited liability company (the “Company”),   effective as of April 9, 2015 (the “Effective Date”), is adopted and entered into by and among the   Members and the Company.   WHEREAS, the Company was formed as a limited liability company under the Act upon the   filing of its Certificate of Formation with the Secretary of State of the State of Delaware on March 30,   2015 (the “Certificate of Formation”);   WHEREAS, the Company filed a Certificate of Amendment on April 8, 2015 to its Certificate of   Formation changing its name from USCF&B Acquisition Co, LLC to Ferrara Bros., LLC;   WHEREAS, the Company and its Member previously adopted and entered into that certain   Limited Liability Company Agreement, effective as of March 30, 2015 (the “Prior Agreement”);  and    WHEREAS, the Member desires to amend and restate the Prior Agreement in its entirety and   enter into this Agreement for the purpose of governing the affairs of, and the conduct of the business of,   the Company;    NOW, THEREFORE, in consideration of the premises and of the covenants and agreements   hereinafter set forth and for other good and valuable consideration, the receipt and adequacy of which are   hereby acknowledged, the parties hereto agree as follows:   ARTICLE I   DEFINITIONS   1.1 Definitions.   As used in this Agreement, the following terms shall have the meanings set forth below:   “Act” means the Delaware Limited Liability Company Act, as amended from time to   time.   “Affiliate” means, with respect to any Person, any other Person that, directly or indirectly   through one or more intermediaries, controls, is controlled by, or is under common control with such   Person. The term “control” (including the terms “controlled by” and “under common control with”) as   used in this definition means the possession, directly or indirectly (including through one or more   intermediaries), of the power or authority to direct or cause the direction of the management and policies   of a Person, whether through the ownership of voting securities, by contract or otherwise.  The term   “Affiliated” shall have a correlative meaning.     “Board of Managers” means the Board of Managers provided for in Article V.   “Business” means the production, distribution, mining, pumping, hauling, delivering,   supplying or sale of ready-mixed concrete together with such other businesses currently operated by, or   currently proposed to be operated by, Parent, the Company or any of their respective Subsidiaries or     

 

   2      Affiliates; and (ii) any similar, related or complementary business or activity related to any of the   forgoing that the Company or its Subsidiaries conducts, as may be reasonably modified or expanded by   the Board of Managers as set forth herein.   “Business Day” means any calendar day that is not a Saturday, Sunday or other calendar   day on which banks are required or authorized to be closed in the City of New York.   “Capital Contribution” means the contribution made by a Member in accordance with   Section 3.1.   “Cause” means, with respect to any holder of Incentive Interests, the definition of Cause   in such holders’ employment agreement or grant award agreement with the Company or its Subsidiaries;   provided, however, the Cause shall also include (i) such holder’s commission of, conviction for, plea of   guilty or nolo contendere to a felony or a crime involving moral turpitude, or other material act or   omission involving dishonesty or fraud, (ii) such holder’s conduct that results in or is reasonably likely to   result in harm to the reputation or business of the Company or any of its Affiliates in any material way,   (iii) such holder’s material failure to perform duties as reasonably directed by the Company or its   Affiliates or such holder’s material violation of any rule, regulation, policy or plan for the conduct of any   service provider to the Company or its Affiliates or its or their business (which, if curable, is not cured   within ten (10) days after notice thereof is provided to such holder), (iv) such holder’s gross negligence,   willful malfeasance or material act of disloyalty with respect to the Company or its Affiliates (which, if   curable, is not cured within ten (10) days after notice thereof is provided to such holder), or (v) such   holder’s breach of Article IX and failure to cure such breach following written notice from the Company.     “Class A Members” means such Members holding Class A Membership Interests, in their   capacity as holders thereof.   “Class B Members” means such Members holding Class B Incentive Interests, in their   capacity as holders thereof.   “Code” means the Internal Revenue Code of 1986, as amended, including any successor   provisions and transition rules.   “Commission” means the United States Securities and Exchange Commission.   “Competitive Activities” shall mean, directly or indirectly (including, without limitation,   through one or more Affiliates), owning, establishing, managing, joining, operating, performing,   engaging in, participating in, being employed by, controlling, working for, consulting with, rendering   services for, doing business with, maintaining any interest in (proprietary, financial or otherwise) or   participating in the ownership establishment, management, operation or control of, any Competitive   Business in the applicable Restricted Territory.  For the purposes of this Agreement, the following   activities shall not be deemed to be Competitive Activities: (i) investing in publicly-traded equity   securities of a Competitive Business constituting less than five percent (5%) of the outstanding securities   of such class, (ii) owning shares or securities in any mutual fund, or (iii) owning less than five percent   (5%) of the equity securities of a private equity or other private investment fund that owns a Competitive   Business.    “Competitive Business” shall mean any Person engaged in the Business.   “Designated Event” means any event which the Board of Managers determines is a   “Designated Event” under this Agreement, including any actual or potential change of control, any   transaction, any financing or refinancing, or any other event requiring or with respect to which it is     

 

   3      advisable or in the interest of the Company, its Subsidiaries, or its Affiliates for a member of the Parent   Group to purchase the Put/Call Interests, in each case, only to the extent such change of control,   transaction, financing, refinancing, or other event is affirmatively determined by the Board of Managers   to be a “Designated Event” pursuant to this Agreement.    “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any   successor statute thereto, and the rules and regulations of the Commission promulgated thereunder.   “GAAP” means United States generally accepted accounting principles in effect from   time to time.   “Governmental Authority” means the government of any nation, state, city, locality or   other political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or   administrative functions of or pertaining to government, and any corporation or other entity owned or   controlled, through stock or capital ownership or otherwise, by any of the foregoing.   “Incentive Interests” means the Class B Incentive Interests and any other membership   interests designated as incentive interests by the Board of Managers.   “Manager” means a natural person or entity serving as a member of the Board of   Managers in accordance with this Agreement.   “Members” means the Persons who are parties hereto holding Membership Interests as   listed on Schedule 3.1; provided, however, that such term shall also include such other Persons who shall   become members of the Company in accordance with the terms of this Agreement and pursuant to and in   accordance with the Act; provided, further, however, that a Person shall cease to be a Member for   purposes of this Agreement at such time as such Person ceases to own any Membership Interests.    Holders of Incentive Interests, including the Class B Incentive Interests, shall not be treated as, and shall   not have any rights of, Members other than the right to receive distributions, if any, pursuant to Section   3.4 and the obligations applicable to Members in Article IX and Article XI or as otherwise explicitly   provided herein or by the Board of Managers.   “Parent” means U.S. Concrete, Inc., a Delaware corporation, and its successors and   assigns.   “Parent Group” means (i) each direct or indirect subsidiary of Parent holding Class A   Membership Interests, which shall initially be only USC Atlantic, Inc. and (ii) any other Person holding   Class A Membership Interests and designated as a member of the Parent Group by Parent, in each case   other than the Company.    “Per Class B Incentive Interests Price” means the price per vested Class B Incentive   Interest set forth in the applicable grant/award agreement with respect thereto.   “Percentage Ownership” means, with respect to any Member, the fraction, expressed as a   percentage, the numerator of which is the total number of Membership Interests held by such Member   and the denominator of which is the total number of Membership Interests issued and outstanding at the   time of determination, excluding, from each of the numerator and the denominator above, any options,   warrants, convertible debt obligations, Incentive Interests or similar Securities.     “Person” means any individual, corporation, company, voluntary association, partnership,   joint venture, limited liability company, trust, estate, unincorporated organization, Governmental     

 

   4      Authority or other entity and shall include any “group” within the meaning of the regulations promulgated   by the Commission under Section 13(d) of the Exchange Act.   “Related Person” means (i) any Affiliate of the Company (other than a Subsidiary of the   Company) and (ii) any other Person if such other Person and its Affiliates, beneficially own (within the   meaning of Rule 13d-3 under the Exchange Act), in the aggregate more than ten percent (10%) of the   outstanding Membership Interests.   “Restricted Territory” means the United States and any other geographic region in which   the Company or its Subsidiaries operate the Business as of any relevant date.   “Securities” means “securities” as defined in Section 2(a)(1) of the Securities Act and   includes, with respect to any Person, such Person’s capital stock or other equity interests or any options,   warrants or other securities that are directly or indirectly convertible into, or exercisable or exchangeable   for, such Person’s capital stock.   “Securities Act” means the Securities Act of 1933, as amended, or any successor statute   thereto, and the rules and regulations of the Commission promulgated thereunder.   “Share Purchase Agreement” means that certain Share Purchase Agreement entered into   by and among Ferrara Bros. Building Materials Corp., a New York corporation, Ferrara Family Holding   Corp., a New York corporation, the Seller’s Representative (as defined therein), and the Company.   “Subsidiary” means, with respect to any Person, any other Person, whether incorporated   or unincorporated, in which the Company or any one or more of its other Subsidiaries, directly or   indirectly, owns or controls: (i) fifty percent (50%) or more of the securities or other ownership interests,   including profits, equity or beneficial interests; or (ii) securities or other interests having by their terms   ordinary voting power to elect more than fifty percent (50%) of the board of directors or others   performing similar functions with respect to such other Person that is not a corporation.     “Tax” and “Taxes” means any federal, state, local, or non-U.S. taxes, levies, imposts,   duties, deductions, withholdings (including backup withholding), assessments, fees or other charges   imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable   thereto.    “Transfer” means any, direct or indirect, transfer, sale, assignment, pledge, hypothecation   or other disposition of any Membership Interest, whether voluntary or involuntary, or any agreement to   transfer, sell, assign, pledge, hypothecate or otherwise dispose of any Membership Interest, including any   such transfer, sale, assignment, pledge, hypothecation, disposition by operation of law or otherwise to an   heir, successor or assign.  The term “Transferred” shall have a correlative meaning.    1.2 Construction; Usage Generally.  The definitions in this Article I or the Schedules to this   Agreement shall apply equally to both the singular and plural forms of the terms defined. Whenever the   context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.    All references herein to Articles, Sections and Schedules shall be deemed to be references to Articles and   Sections of, and Schedules to, this Agreement unless the context shall otherwise require.  All Schedules   attached hereto shall be deemed incorporated herein as if set forth in full herein and, unless otherwise   defined therein, all terms used in any Schedule shall have the meaning ascribed to such term in this   Agreement.  The words “include,” “includes” and “including” shall be deemed to be followed by the   phrase “without limitation.”  All accounting terms not defined in this Agreement shall have the meanings   determined by GAAP.  The words “hereof,” “herein” and “hereunder” and words of similar import when   used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this     

 

   5      Agreement.  Unless otherwise expressly provided herein, any agreement, instrument or statute defined or   referred to herein or in any agreement or instrument that is referred to herein means such agreement,   instrument or statute as from time to time amended, modified or supplemented, including (in the case of   agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable   successor statutes and references to all attachments thereto and instruments incorporated therein.  Where   specific language is used to clarify by example a general statement contained herein, such specific   language shall not be deemed to modify, limit or restrict in any manner the construction of the general   statement to which it relates.  The language used in this Agreement has been chosen by the parties to   express their mutual intent, and no rule of strict construction shall be applied against any party.  Any   reference in this Agreement to $ shall mean U.S. dollars.  In calculating any Member’s ownership of   Membership Interests for the purposes of determining whether a Member shall have certain rights under   this Agreement, all Membership Interests held by Affiliated Members shall be aggregated for the   purposes of such determination; provided, however, that no Membership Interests shall be attributed to   more than one Person within any such group of Affiliated Members.   1.3 Cross References to Other Defined Terms.  Each capitalized term listed below is defined   on the corresponding page of this Agreement:   Term Page No.   Agreement ...................................................................................................................... 1   Call Notice ................................................................................................................... 20   Call Option ................................................................................................................... 20   Call Option Period ....................................................................................................... 20   Certificate of Formation ................................................................................................. 1   Class A Membership Interests ....................................................................................... 8   Class B Incentive Interests ............................................................................................. 8   Company ........................................................................................................................ 1   Damages....................................................................................................................... 15   Determination Date ...................................................................................................... 19   Effective Date ................................................................................................................ 1   Effective Transfer Time ............................................................................................... 18   Event of Dissolution .................................................................................................... 21   Indemnitee ................................................................................................................... 15   Membership Interest ...................................................................................................... 8   Non-USCR Member .................................................................................................... 18   Notice ........................................................................................................................... 20   Option .......................................................................................................................... 20   Parent Determination Date ........................................................................................... 20   Prior Agreement ............................................................................................................. 1   Protected Person .......................................................................................................... 14   Put Notice .................................................................................................................... 20   Put Option .................................................................................................................... 20   Put Option Period ......................................................................................................... 20   Put/Call Interests .......................................................................................................... 20   Put/Call Option Period ................................................................................................. 20   Put/Call Seller .............................................................................................................. 19   Restricted Employee .................................................................................................... 18   Restricted Member ....................................................................................................... 18        

 

   6      ARTICLE II   THE COMPANY AND ITS BUSINESS   2.1 Formation.  The Members hereby agree to continue the Company, which was formed   pursuant to the provisions of the Act prior to the execution of this Agreement, and hereby agree that the   Company shall be governed by the terms and conditions of this Agreement and, except as otherwise   provided herein, the Act.  This Agreement shall constitute the “limited liability company agreement” (as   that term is used in the Act) of the Company and the Prior Agreement is hereby amended and restated in   its entirety by this Agreement.  The rights, powers, duties, obligations and liabilities of the Members shall   be determined pursuant to the Act and this Agreement.  To the extent that the rights, powers, duties,   obligations and liabilities of any Member are different by reason of any provision of this Agreement than   they would be under the Act in the absence of such provision, this Agreement shall, to the extent   permitted by the Act, control.     2.2 Company Name.  The name of the Company is “Ferrara Bros., LLC”.  The Board of   Managers may (without the consent of any Member) change the Company’s name at any time and from   time to time in accordance with the provisions of the Act and upon notice to the other Members.   2.3 Effective Date.  This Amended and Restated Limited Liability Company Agreement of   the Company is entered into, and is effective as of the Effective Date.    2.4 Term.  The Company shall continue until dissolved and its affairs wound up in   accordance with the Act and the terms of this Agreement.   2.5 Offices.  The principal office of the Company shall be established and maintained at 331   N. Main Street, Euless, Texas, 76039, or at such other or additional place or places as the Board of   Managers shall determine from time to time. The Company may have other offices at such place or places   as the Board of Managers may from time to time designate.   2.6 Registered Office and Registered Agent.  The address of the Company’s registered office   in the State of Delaware and the name and address of the Company’s registered agent in the State of   Delaware shall be c/o Capitol Services, Inc., 1675 S. State Street, Suite B, Dover, Kent County, Delaware   19901.  The Board of Managers may designate another registered agent and/or registered office from time   to time in accordance with the provisions of the Act and any other applicable laws.   2.7 Filings; Authorized Persons.   The Members shall execute and deliver such documents   and perform such acts consistent with the terms of this Agreement as may be necessary to comply with   the requirements of law for the formation, qualification and operation of a limited liability company, the   ownership of property and the conduct of business under the laws of the State of Delaware and each other   jurisdiction in which the Company shall own property or conduct business.  Lynn Hausner was   designated as an “authorized person,” within the meaning of the Act, to execute, deliver and file the   Certificate of Formation of the Company, and the execution, delivery and filing of such Certificate of   Formation by Lynn Hausner on March 30, 2015 is hereby ratified.     2.8 Purposes.  The Company is formed for the purposes of engaging in any lawful acts or   activities for which limited liability companies may be organized under the Act and to engage in any and   all activities necessary or incidental thereto.  The Company shall have all the powers necessary or   convenient to carry out the purposes for which it is formed, including the powers granted by the Act.   2.9 No Partnership.  The Members intend that the Company shall not be a partnership   (including a limited partnership) or joint venture, and that no Member, Manager or Officer of the     

 

   7      Company shall be a partner or joint venturer of any other Member, Manager or Officer of the Company as   a result of this Agreement.    ARTICLE III   CAPITAL CONTRIBUTIONS; DISTRIBUTIONS   3.1 Admission.   (a) The Members are set forth on Schedule 3.1.      (b) Schedule 3.1 shall be amended by the Board of Managers following any Transfer   as provided by Article IX or any issuance of additional Membership Interests in accordance with   this Agreement.    (c) Each Person designated for admission to the Company as an additional Member   in accordance with this Agreement (other than in connection with a Transfer made in accordance   with Article IX) shall contribute cash, other property (including securities) or services rendered in   the amount and of the type designated by the Board of Managers and Schedule 3.1 shall be   amended at the time of such additional Members’ admission as a Member by the Board of   Managers to reflect such contribution.   3.2 Additional Capital Contributions.  No Member shall be obligated to make an Additional   Capital Contribution to the Company.  All amounts paid to the Company by a Member as additional   equity capital (other than initial Capital Contributions) shall be deemed to be an “Additional Capital   Contribution” by such Member for the purposes of this Agreement, and Schedule 3.1 shall be amended at   the time of such Additional Capital Contribution.   3.3 No Interest in Company Property.  A Member’s Membership Interests shall for all   purposes be personal property.  A Member has no interest in specific Company property.   3.4 Distributions.  No Member shall be entitled to receive any distribution from the Company   except as provided in this Agreement. Distributions (whether interim distributions or distributions on   liquidation) made after the Effective Date shall be cumulative and shall be made in amounts determined   by the Board of Managers to the Members, subject to the restrictions set forth in the Act, as follows:   (a) First, to each Class A Member until each such Class A Member has received a   total amount equal to its Capital Contributions; and    (b) Second, to Members holding Class A Membership Interests, pro rata based upon   the aggregate number of Class A Membership Interests; provided, however, that in the event, and   solely in the event, that both (i) ninety one (91) days have passed since such time as Parent has   received the Put Notice pursuant to Section 9.5 and (ii) Parent Group has breached its obligations   to purchase the Class B Incentive Interests pursuant to and subject to the terms of Section 9.5 (in   each case, solely to the extent that such breach is continuing, has not been otherwise waived at   the time of the distribution, and is not primarily caused by the breach or failure of the Class B   Members to perform their obligations pursuant to and subject to the terms of Section 9.5), to   Members holding Class A Membership Interests and to Members holding vested Class B   Incentive Interests, if any, pro rata based upon the aggregate number of Class A Membership   Interests and vested Class B Incentive Interests outstanding at the time of such distribution;   provided, further, however, that in no event shall the holders of vested Class B Incentive Interests   be entitled to aggregate distributions in excess of the Aggregate Maximum Distribution (as     

 

   8      defined in the  applicable grant/award agreement with respect to such vested Class B Incentive   Interests).      (c) All distributions, dividends, or redemptions shall be made to or among vested   Members holding Class A Membership Interests pro rata in accordance with the Class A   Membership Interest held by each Member. All distributions, dividends, or redemptions shall be   made to or among Members holding a class of Incentive Interests pro rata in accordance with the   vested Incentive Interest of such class held by each Member; provided, however, that, for the   avoidance of doubt, no Incentive Interests that have not vested pursuant to their applicable   grant/award agreement shall receive any such distributions, dividends or redemptions at any time   and no Incentive Interests, whether vested or unvested, shall receive any such distributions,   dividends or redemptions nor shall they be entitled to any such distributions, dividends or   redemptions unless in accordance with the foregoing or otherwise determined by the Board.    Notwithstanding anything to the contrary contained herein, the holders of Incentive Interests,   including the holders of Class B Incentive Interests, shall not have any voting rights or any other   rights, other than to receive distributions as set forth in this Section 3.4 and the obligations   applicable to Members in Article IX and Article XI or as otherwise explicitly provided herein.   (d) The Board of Managers shall have the power to determine all matters related to   this Section 3.4, including matters necessary or desirable to administer or to determine the   amount of any distributions, dividends or redemptions hereunder and, absent bad faith, the   determinations of the Board of Managers shall be final and binding on the Company and the   Members.   ARTICLE IV   MEMBERSHIP INTEREST   4.1 Membership Interest.     (a) As of the Effective Date, the ownership interests in the Company (each, a   “Membership Interest”) are evidenced by two (2) classes of ownership interests,    (i) Class A Interests (the “Class A Membership Interests”); and   (ii) Class B Interests (“Class B Incentive Interests”), which are intended to   be issued as incentive units to employees (or their designated entities to the extent   permitted and consented to by the Company) of the Company or its Subsidiaries or   Affiliates.    (b) The Membership Interests shall be in such amounts as initially set forth on   Schedule 3.1 attached to this Agreement.  All Class A Membership Interests shall have identical   rights in all respects as all other Class A Membership Interests except as otherwise specified in   this Agreement.  All Class B Incentive Interests shall have identical rights in all respects as all   other Class B Incentive Interests except as otherwise specified in this Agreement.  The holders of   Class B Incentive Interests shall not be treated as, and shall not have any voting or any other   rights of, Members other than to receive distributions pursuant to Section 3.4 (but subject to the   terms of such Class B Incentive Interests) and the obligations applicable to Members in Article   IX and Article XI or as otherwise explicitly provided herein.  In additional to the provisions set   forth in this Agreement, the Class B Incentive Interests shall be subject to vesting, forfeiture,   termination and other provisions to be set forth in this Agreement.       

 

   9      4.2 Designation of Membership Interest.  The Board of Managers shall have the power to   designate the ownership interests in the Company into one or more classes and/or series of Membership   Interests and to fix for such class or series such voting powers, full or limited, or no voting powers, and   such distinctive designations, preferences and relative, participating, optional or other special rights and   such qualifications, limitations or restrictions thereof, as shall be stated and expressed in the properly   approved resolution or resolutions of the Board of Managers providing for such designation, including   with respect to Incentive Interests, and such resolution or resolutions of the Board of Managers shall set   forth such amendments to this Agreement as shall be necessary or reasonable in the sole judgment of the   Board of Managers to effect such resolution and subject to Section 11.4, such amendments shall be   binding upon all of the Members of the Company upon a properly adopted resolution by the Board of   Managers.   4.3 Issue of Membership Interests; Register; Transfer.  Subject to Section 3.2, the Board of   Managers may issue Membership Interests from time to time in such portions of the entire interests in the   Company as the Board of Managers shall properly approve, either for cash, services, Securities, property   or other value, or in exchange for other Membership Interests, and at such price and upon such terms as   the Board of Managers may, subject to the terms of this Agreement, determine. The Board of Managers   may (a) provide that a register of holders of any or all Membership Interests shall be kept and (b) may   appoint one or more transfer agents and one or more registrars, all in accordance with such rules,   regulations and procedures as the Board of Managers may determine.   4.4 Certificates.  The Company may, upon the direction of the Board of Managers, issue   certificates of limited liability company interests evidencing the Membership Interests.  Each certificate   evidencing any Membership Interest shall bear such appropriate legend indicating the existence of this   Agreement and the restrictions on Transfer contained herein and imposed by applicable law.     ARTICLE V   MANAGEMENT OF THE COMPANY   5.1 Management and Control of the Company.  The management, operation and control of the   business and affairs of the Company shall be vested exclusively in the Board of Managers, except as   otherwise expressly provided for in this Agreement.  The Board of Managers shall have full and complete   power, authority and discretion for, on behalf of and in the name of the Company, to enter into and   perform all contracts and other undertakings that it may deem necessary or advisable to carry out any and   all of the objects and purposes of the Company.  A Manager acting individually will not have the power   to bind the Company.  The power and authority of the Board of Managers may be delegated by the Board   of Managers to a committee of Managers, to any officer of the Company or to any other Person engaged   to act on behalf of the Company.   5.2 Members Shall Not Manage or Control. The Members, other than as they may act by and   through the Board of Managers, shall take no part in the management of the business and affairs of the   Company and shall transact no business for the Company, in each case, other than as specifically   delegated by the Board of Managers.   5.3 Board of Managers.   (a) A Board of Managers shall be established and shall consist of such entities or   persons designated by the members of the Parent Group holding a majority of the issued and   outstanding Class A Membership Interests and shall initially be USC Atlantic, Inc.  All or any   number of the Managers may be removed at any time, with or without cause, by a vote or consent   of the members of the Parent Group holding a majority of the issued and outstanding Class A   Membership Interests.      

 

   10      (b) If at any time a vacancy is created on the Board of Managers by reason of the   incapacity, death, removal or resignation of any Manager, the vacancy shall be filled by another   individual selected in accordance with Section 5.3(a).  Until such vacancy is filled, the vote(s)   that would have otherwise been held by the Manager(s) whose incapacity, death, removal or   resignation resulted in such vacancy, shall be allocated equally among the Managers then in   office.       (c) The designation of an individual as a Manager shall not of itself create a right to   continued membership on the Board of Managers or employment with the Company.    5.4 Meetings of the Board of Managers.  The Board of Managers shall hold regular meetings   at least once during each fiscal year at such time and place as shall be determined by the Board of   Managers or as the Board of Managers may otherwise deem proper.  Special meetings of the Board of   Managers may be called at any time by any Manager.  Written notice shall be required with respect to any   meeting of the Board of Managers.  Unless waived by all of the Managers (before, during or after a   meeting) or with respect to any Manager at such meeting, prior notice of any regular or special meeting   (including reconvening a meeting following any adjournments or postponements thereof) shall be given   to each Manager before the occurrence of such meeting.  Notice of any meeting need not be given to any   Manager who shall submit, either before, during or after such meeting, a signed waiver of notice.    Attendance of a Manager at a meeting shall constitute a waiver of notice of such meeting, except when   the Manager attends the meeting for the express purpose of objecting at the beginning thereof to the   transaction of any business because the meeting is not properly noticed, called or convened.   5.5 Quorum and Voting.   (a) No action may be taken by the Board of Managers unless a quorum is present.  A   quorum shall consist of the presence, in person or by proxy, of a majority of the Managers then in   office.   (b) The Board of Managers shall act by vote of a majority of the Managers then in   office, and each Manager shall have one (1) vote.   (c) No Manager shall be disqualified from acting on any matter because such   member is interested in the matter to be acted upon by the Board of Managers so long as all   material aspects of such matter have been disclosed in reasonable detail to all Managers who are   to act on such matter.  Each Manager may authorize in writing another natural person or natural   persons to vote and act for such member by proxy, and such natural person or natural persons   holding such proxy shall be counted towards the determination of whether a quorum of the Board   of Managers is present.  One natural person may hold more than one proxy and each such proxy   held by such natural person shall be counted towards the determination of whether a quorum of   the Board of Managers exists.   5.6 Procedural Matters of the Board of Managers.   (a) Any action required or permitted to be taken by the Board of Managers (or any   committee thereof) may be taken without a meeting, if consented to, in writing or by electronic   transmission, by Managers having not less than the minimum number of votes that would be   necessary to authorize or take such action at a meeting at which all Managers entitled to vote   thereon were present and voted.  Such consent shall have the same effect as a vote of the Board of   Managers.     

 

   11      (b) The Board of Managers (and each committee thereof) shall cause to be kept a   book of minutes of all of its actions by written consent and in which there shall be recorded with   respect to each meeting of the Board of Managers (or any committee thereof) the time and place   of such meeting, whether regular or special (and if special, how called), the names of those   present and the proceedings thereof.   (c) Managers may participate in a meeting of the Board of Managers (or any   committee thereof) by conference telephone or similar communications equipment by means of   which all persons participating in the meeting can hear one another, and such participation shall   constitute presence in person at such meeting.   (d) At each meeting of the Board of Managers, the Chairman shall preside and, in his   or her absence, Managers holding a majority of the votes present may appoint any member of the   Board of Managers to preside at such meeting. The secretary (or such other person as shall be   designated by the Board Managers) shall act as secretary at each meeting of the Board of   Managers. In case the secretary shall be absent from any meeting of the Board of Managers, an   assistant secretary shall perform the duties of secretary at such meeting or the person presiding at   the meeting may appoint any person to act as secretary of the meeting.   (e) The Board of Managers may designate one or more committees to take any   action that may be taken hereunder by the Board of Managers, which committees shall take   actions under such procedures (not inconsistent with this Agreement) as shall be designated by it;   provided, however, that, unless otherwise unanimously agreed by the Board of Managers, any   such committee of the Board of Managers shall have the same relative composition as the Board   of Managers.   5.7 Officers.   (a) All officers of the Company shall have such authority and perform such duties as   may be provided in this Agreement or, to the extent not so provided, by resolution passed by the   Board of Managers.  The officers shall be appointed by the Board of Managers.  Each officer   shall be a natural person eighteen years of age or older.  One person may hold more than one   office.  In all cases where the duties of any officer, agent, or employee are not prescribed by this   Agreement, such officer, agent or employee shall follow the orders and instructions of the   Chairman of the Board of Managers unless otherwise directed by the Board of Managers.  The   officers, to the extent of their powers as set forth in this Agreement or as delegated to them by the   Board of Managers, are agents of the Company and the actions of the officers taken in accordance   with such powers shall bind the Company.   5.8 Terms of Office; Resignation; Removal.   (a) Each officer shall hold office until he or she is removed in accordance with   clause (c) below or his or her earlier death, disability or resignation.  Any vacancy occurring in   any of the officers of the Company, for any reason, shall be filled by action of the Board of   Managers.   (b) Any officer may resign at any time by giving written notice to the Board of   Managers.  Such resignation shall take effect at the time specified in such notice or, if the time be   not specified, upon receipt thereof by the Board of Managers.  Unless otherwise specified therein,   acceptance of such resignation shall not be necessary to make it effective.   (c) Each officer shall be subject to removal by the Board of Managers.     

 

   12      5.9 Compensation.  The compensation and terms of employment of all of the officers shall be   determined by the Board of Managers.   5.10 Subsidiaries.  The Board will determine the composition of the board of managers or   similar bodies of the Company’s Subsidiaries, which need not be identical to the Board of the Company,   and may appoint officers of the Company’s Subsidiaries.   ARTICLE VI   MEMBERS AND MEETINGS   6.1 Members.  The name, address, class and number and type of Membership Interests of each   Member are set forth on Schedule 3.1 hereto.  Such schedule shall be amended from time to time to reflect   the admission of new Members, Additional Capital Contributions of the Members, and the Transfer of   Membership Interests, each as permitted by the terms of this Agreement.  Each update to Schedule 3.1   shall be identified in sequence and dated as of the date of such update as follows:  Schedule 3.1(A) (dated   April 9, 2015), Schedule 3.1(B) (dated April 14, 2015), Schedule 3.1(C) (dated [•]), etc.   6.2 Admission of New Members.  New Members may be admitted (i) by the Board of   Managers or (ii) in accordance with the transfer provisions contained in Article IX.  Each new Member,   prior to being admitted, shall represent and warrant to the Company that such new member is acquiring   the Membership Interests solely for its own account for investment purposes and not with a view to, or for   offer or sale in connection with, any distribution thereof, that such new Member acknowledges that the   Membership Interests are not registered under the Securities Act, and that the Membership Interests may   not be transferred or sold except pursuant to the registration provisions of the Securities Act, as amended   or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as   applicable, and otherwise in accordance with this Agreement and make such other representations as the   Company shall deem necessary or appropriate.   6.3 Resignation.  A Member may not resign or withdraw from the Company prior to the   dissolution and winding up of the Company.     6.4 Power of Members.  The Members shall have the power to exercise any and all rights or   powers granted to Members pursuant to the express terms of this Agreement and the Act.  The Members   shall elect the Board of Managers in accordance with Section 5.3.  Except as otherwise specifically   provided by this Agreement or required by the Act, no Member shall have the power to act for or on   behalf of, or to bind, the Company.  All Members shall constitute one class or group of members for   purposes of the Act.   6.5 Meetings of Members.  Meetings of the Members shall be called by the Board of   Managers.  The Members may vote, approve a matter or take any action by vote of the Members at a   meeting, in person or by proxy, or without a meeting by written consent of the Members pursuant to   Section 6.11.   6.6 Place of Meetings.  The Board of Managers or a duly authorized committee thereof may   designate any place, either within or outside of the State of Delaware, as the place of meeting for any   annual meeting or for any special meeting of the Members.  If no designation is made, the place of   meeting shall be the principal executive offices of the Company.  Members may participate in a meeting   by means of a conference telephone or electronic media by means of which all persons participating in the   meeting can communicate concurrently with each other, and any such participation in a meeting shall   constitute presence in person of such Member at such meeting.   6.7 Notice of Members’ Meetings.     

 

   13      (a) In connection with the calling of any meeting of the Members, the Board of   Managers may set a record date for determining the Members entitled to vote at such meeting.   Written notice stating the place, day, and hour of the meeting and, in case of a special meeting,   the purpose for which the meeting is called shall be delivered not less than three (3) days nor   more than fifty (50) days before the date of the meeting, either personally, by facsimile or by   mail, by or at the direction of any Manager calling the meeting to each Member entitled to vote at   such meeting.   (b) Notice to Members shall be given in accordance with Section 11.3.   (c) When a meeting is adjourned to another time or place, notice need not be given   of the adjourned meeting if the time and place thereof are announced at the meeting at which the   adjournment is taken. At the adjourned meeting the Company may transact any business which   might have been transacted at the original meeting.  If the adjournment is for more than thirty   (30) days, a notice of the adjourned meeting shall be given to each Member entitled to vote at the   meeting.   6.8 Waiver of Notice.   (a) When any notice is required to be given to any Member of the Company under   the provisions of this Agreement, a waiver thereof in writing signed by the Person entitled to such   notice, whether before, at, or after the time stated therein, shall be equivalent to the giving of such   notice.   (b) By attending a meeting, a Member:   (i) waives objection to lack of notice or defective notice of such meeting   unless the Member, at the beginning of the meeting, objects to the holding of the meeting   or the transacting of business at the meeting; and   (ii) waives objection to consideration at such meeting of a particular matter   not within the purpose or purposes described in the meeting notice unless the Member   objects to considering the matter when it is presented.   6.9 Voting.  Each holder of Class A Membership Interests shall be entitled to one (1) vote for   each Class A Membership Interest owned by such holder, except as expressly provided otherwise in this   Agreement.  Incentive Interests and Class B Incentive Interests (if and when issued) shall not be entitled   to vote.  Holders of Incentive Interests, including holders of Class B Incentive Interests, shall have no   voting rights whatsoever.    6.10 Quorum; Vote Required.  The presence at a meeting, in person or by proxy, of Members   owning a majority of the outstanding Class A Membership Interests entitled to vote on the subject matter   of the meeting at the time of the action taken constitutes a quorum for the transaction of business   required.  When a quorum is present, the affirmative vote, in person or by proxy, of Members owning a   majority of the Class A Membership Interests entitled to vote on the subject matter shall be the act of the   Members, unless the vote of a greater proportion or number or voting by classes is required by the Act or   by this Agreement.  If a quorum is not represented at any meeting of the Members, such meeting may be   adjourned to a period not to exceed sixty (60) days at any one adjournment.    6.11 Action by Written Consent of Members.  Any action required or permitted to be taken at   any meeting of the Members may be taken without a meeting if Members holding not less than the   minimum number of Class A Membership Interests that would be necessary to approve the action     

 

   14      pursuant to the terms of this Agreement, consent thereto in writing, and the writing or writings are filed   with the minutes of the proceedings of the Members.  In no instance where action is authorized by written   consent shall a meeting of Members be required to be called or notice required to be given; provided,   however, a copy of the action taken by written consent shall be with the records of the Company.    Reasonably prompt notice of the taking of any action taken without a meeting by less than unanimous   written consent shall be given to those Members who have not consented in writing and who, if the action   had been taken at a meeting, would have been entitled to notice of the meeting if the record date for such   meeting had been the date that written consents signed by a sufficient number of Members to take the   action were obtained; provided, however, that the effectiveness of such action is not dependent on the   giving of such notice.  Written consent by the Members pursuant to this Section 6.11 shall have the same   force and effect as a vote of such Members taken at a duly held meeting of the Members and may be   stated as such in any document.   6.12 Voting by Ballot.  Voting on any question or in any election may be by voice vote unless   the presiding officer shall order or any Member shall demand that voting be by ballot.   6.13 No Cumulative Voting.  No Member shall be entitled to cumulative voting in any   circumstance.   ARTICLE VII   EXCULPATION; INDEMNIFICATION; LIABILITY; OPPORTUNITY   7.1 Exculpation.   (a) No Manager, officer or Member, in any way, guarantees the return of any   Members’ capital contributions or a profit for the Members from the operations of the Company.   To the fullest extent permitted by Section 18-1101 of the Act, none of the Members, Managers,   any of their respective Affiliates, nor any of their respective officers, directors, employees,   partners, members, representatives or equityholders (each, a “Protected Person”) will be liable to   the Company or any Member for any loss or damage sustained by the Company or any Member   except as specifically provided to the contrary in the immediately following sentence.  None of   the Protected Persons shall be liable to the Company or its Members for any loss or damage   resulting from any act or omission taken or suffered by such Protected Person in connection with   the conduct of the affairs of the Company or otherwise in connection with this Agreement or the   matters contemplated hereby, unless such loss or damage is incurred by reason of such Protected   Person’s acts or omissions that constitute a bad faith violation of the implied contractual covenant   of good faith and fair dealing.  Any Protected Person or officer may consult with legal counsel,   accountants, advisors or other similar persons with respect to the Company’s affairs and shall be   fully protected and justified in any action or inaction that is taken or omitted in good faith, in   reliance upon and in accord with the opinion or advice of such persons; provided, however, such   legal counsel, accountants, advisors or other similar persons shall have been selected in good   faith. The preceding sentence shall in no way limit any Person’s right to rely on information to   the extent provided in Section 18-406 of the Act.    (b) None of the Members, by reason of their execution of this Agreement or their   status as Members or equity holders of the Company shall be responsible or liable for any   indebtedness, liability or obligation of any other Member incurred either before or after the   execution of this Agreement.     

 

   15      7.2 Indemnification.   (a) To the fullest extent permitted under the Act and applicable law, the Company   shall indemnify and hold harmless each of the Protected Persons (each, an “Indemnitee”) from   and against any and all claims, liabilities, damages, losses, costs and expenses (including amounts   paid in satisfaction of judgments, in compromises and settlements, as fines and penalties and legal   or other costs and reasonable expenses of investigating or defending against any claim or alleged   claim) of any nature whatsoever, known or unknown, liquidated or unliquidated (collectively,   “Damages ”), that are incurred by any Indemnitee, and arise out of, are related to, or are in   connection with (i) the affairs or operations of the Company or the performance by such   Indemnitee of any of the Indemnitee’s responsibilities hereunder, (ii) the service at the request of   the Company by such Indemnitee as a partner, member, manager, director, officer, trustee,   employee or agent of any other Person; provided, however, that the Indemnitee acted in good   faith and in a manner such Indemnitee reasonably believed to be in or not opposed to the best   interests of the Company, and, with respect to any criminal action or proceeding, had no   reasonable cause to believe such Indemnitee’s conduct was unlawful.  The termination of any   action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo   contendere or its equivalent, shall not, of itself, create a presumption that the Indemnitee did not   act in good faith and in a manner which such Indemnitee reasonably believed to be in or not   opposed to the best interests of the Company, and, with respect to any criminal action or   proceeding, had reasonable cause to believe that such Indemnitee’s conduct was unlawful.  The   indemnification obligations of the Company pursuant to this Section 7.2 shall be satisfied from   and limited to the Company’s assets and no Member shall have any personal liability on account   thereof.   (b) The Company shall pay reasonable, documented expenses incurred by any   Indemnitee in defending any action, suit or proceeding described in subsection (a) of this   Section 7.2 in advance of the final disposition of such action, suit or proceeding, as such   Damages are incurred; provided, however, that any such advance shall only be made if such   Indemnitee provides written affirmation to repay such advance if it shall ultimately be determined   by a court of competent jurisdiction that such Indemnitee is not entitled to be indemnified by the   Company pursuant to this Section 7.2.   (c) Without limiting Section 7.2(c), the indemnification provided by this Section 7.2   shall not be deemed exclusive of any other rights to indemnification to which those seeking   indemnification may be entitled under any agreement, determination of the Board of Managers or   otherwise.  The rights to indemnification and reimbursement or advancement of expenses   provided by, or granted pursuant to, this Section 7.2 shall continue as to an Indemnitee who has   ceased to be a Member, Manager or officer (or other Person indemnified hereunder) and shall   inure to the benefit of the successors, executors, administrators, legatees and distributees of such   Person.   (d) The provisions of this Section 7.2 shall be a contract between the Company, on   the one hand, and each Indemnitee who served at any time while this Section 7.2 is in effect in   any capacity entitling such Indemnitee to indemnification hereunder, on the other hand, pursuant   to which the Company and each such Indemnitee intend to be legally bound. No repeal or   modification of this Section 7.2 shall affect any rights or obligations with respect to any state of   facts then or theretofore existing or thereafter arising or any action, suit or proceeding theretofore   or thereafter brought or threatened based in whole or in part upon such state of facts.   (e) The Company may enter into indemnity contracts with Indemnitees and adopt   written procedures pursuant to which arrangements are made for the advancement of expenses     

 

   16      and the funding of obligations under this Section 7.2 hereof and containing such other procedures   regarding indemnification as are appropriate.  For the avoidance of doubt, each of the Managers   shall be entitled to receive indemnity contracts with the Company on terms no less favorable than   any other indemnity contract entered into between the Company (or any of its Subsidiaries) and   any other Manager.   7.3 Liability; Duties.     (a) No Member, Manager or officer of the Company shall be personally liable for   any indebtedness, liability or obligation of the Company, except as specifically provided for in   this Agreement or required pursuant to the Act or any other applicable law.  To the fullest extent   permitted by Section 18-1101 of the Act, each Member agrees that any fiduciary or other duties   imposed under Delaware law (including the duty of loyalty and the duty of care) on the Managers   are hereby eliminated, except to the extent specifically set forth in this Agreement.   (b) Any duties (including fiduciary duties) of a Member (but not the duties of the   officers of the Company, in their capacity as such) that would otherwise apply at law or in equity   (including the duty of loyalty and the duty of care) are hereby waived and eliminated to the fullest   extent permitted under Delaware law and any other applicable law; provided, however, that (i) the   foregoing shall not eliminate the obligation of each Member to act in compliance with the express   terms of this Agreement and (ii) the foregoing shall not be deemed to eliminate the implied   contractual covenant of good faith and fair dealing.  In furtherance of the foregoing (but subject   to the provisos in the foregoing), when any Member (but not the officers of the Company, in their   capacity as such) takes any action under this Agreement to give or withhold its consent or   approval, such Member shall have no duty (fiduciary or other) to consider the interests of the   Company, its Subsidiaries or the other Members, and may act exclusively in its own interest.   (c) The officers of the Company, in their capacity as such, shall owe the same duties   (including fiduciary duties) to the Company and the Members as the duties that officers of a   Delaware corporation owe to such corporation and its stockholders.   (d) The Members acknowledge and agree that the foregoing is intended to comply   with the provisions of the Act (including Section 18-1101 of the Act) permitting members and   managers of a limited liability company to eliminate fiduciary duties to the fullest extent   permitted under the Act.   7.4 Insurance.  The Company shall purchase and maintain insurance, on behalf of such   Indemnitees, and may purchase and maintain insurance on behalf of the Company, against any liability   that may be asserted against or expenses that may be incurred by any such Person in connection with the   activities of the Company or such Indemnitees, and in such amounts, as the Board of Managers   reasonably determines are customary for similarly-situated businesses such as the Company and its   Subsidiaries, regardless of whether the Company would have the power to indemnify such Person against   such liability under the provisions of this Agreement.   7.5 Limited Liability Company Opportunity.     (a) Each Member acknowledges and affirms that the other Members may have, and   may continue to, participate, directly or indirectly, in investments in assets and businesses which   are, or will be, suitable for the Company or competitive with the Company’s business.   (b) Each Member, individually and on behalf of the Company, expressly (i) waives   any conflicts of interest or potential conflicts of interest that exist or arise as a result of any such     

 

   17      investments and agrees that no Member, Manager nor any of their respective representatives shall   have liability to any Member or any Affiliate thereof, or the Company with respect to such   conflicts of interest or potential conflicts of interest, (ii) acknowledges and agrees that no   Member nor any of their respective representatives (including any Manager) will have any duty to   disclose to the Company or any other Member any such business opportunities, whether or not   competitive with the Company’s business and whether or not the Company might be interested in   such business opportunity for itself (except to the extent that such representative is an officer,   consultant or employee of the Company or its Subsidiaries, excluding the Chairman  of the Board   that is not otherwise an employee, consultant or officer of the Company), (iii) agrees that the   terms of this Section 7.5 to the extent that they modify or limit a duty or other obligation   (including fiduciary duties), if any, that a Member may have to the Company or any other   Member under the Act or other applicable law, rule or regulation, are reasonable in form, scope   and content; and (iv) waives to the fullest extent permitted by the Act any duty or other   obligation, if any, that a Member may have to the Company or another Member, pursuant to the   Act or any other applicable law, rule or regulation, to the extent necessary to give effect to the   terms of this Section 7.5.   ARTICLE VIII   ACCOUNTING; FINANCIAL AND TAX MATTERS   8.1 Books and Records; Reports.   (a) The books of the Company will be maintained at the offices of the Company’s   primary outside legal counsel.   (b) The Board of Managers shall maintain or cause to be maintained a system of   accounting established and administered in accordance with the accrual method of accounting or   as shall be required by GAAP, and shall set aside on the books of the Company or otherwise   record all such proper reserves pursuant to the accrual method of accounting or as shall be   required by GAAP.   (c) As soon as reasonably practicable after the close of each fiscal year of the   Company, but in any event with respect to the first fiscal year following the Effective Date, not   later than one hundred and eighty (180) days and for any subsequent fiscal year not later than one   hundred twenty (120) days after the end of each fiscal year of the Company, as applicable, the   Company shall provide to each Member a copy of the balance sheet and income statement of the   Company, all as customarily prepared by the Company and in reasonable detail.   (d) In no event shall any financial information required to be furnished pursuant to   Sections 8.1(c) be required to be audited or to include any information required by, or to be   prepared or approved in accordance with, or otherwise be subject to, any provision of Section 404   of the Sarbanes-Oxley Act of 2002 or any rules, regulations, or accounting guidance adopted   pursuant to that section.   8.2 Fiscal Year; Taxable Year.  The fiscal year of the Company for financial accounting   purposes shall end on December 31.  The taxable year of the Company for federal, state and local income   Tax purposes shall end on December 31 unless another date is required by the Code.    8.3 Bank and Investment Accounts.  All funds of the Company shall be deposited in its   name, or in such name as may be designated by the Board of Managers, in such checking, savings or   other accounts, or held in its name in the form of such other investments, as shall be designated by the   Board of Managers.  All withdrawals of such deposits or liquidations of such investments by the     

 

   18      Company shall be made exclusively upon the signature or signatures of such officer or officers of the   Company as the Board of Managers may designate.   8.4 Tax Election.  The Company shall be taxed as a partnership for federal and state Tax   purposes.   ARTICLE IX   TRANSFERS OF MEMBERSHIP INTERESTS   9.1 Limitation on Transfer.     (a) No Incentive Interests, including any Class B Incentive Interests shall be   transferrable, whether directly or indirectly (including as a result of a Transfer of equity, debt, or   other interests in the Member directly or indirectly), unless authorized by the Board of Managers   and any attempt to Transfer any Class B Incentive Interests or any Incentive Interests otherwise   shall be null and void ab initio and the Company shall not register or effect any such Transfer.   (b) The Board of Managers shall have the power to determine all matters related to   this Section 9.1, including matters necessary or desirable to administer or to determine   compliance with this Section 9.1 and, absent actual fraud, bad faith, or manifest error, the   determinations of the Board of Managers shall be final and binding on the Company and the   Members and any proposed transferee.    9.2 Effect of Transfer.  Upon the close of business on the effective date of any Transfer of   Membership Interests (the “Effective Transfer Time”) in accordance with the provisions of this   Agreement, (a) the Transferee shall be admitted as a Member (if not already a Member) and for purposes   of this Agreement such transferee shall be deemed a Member, and (b) the Transferred Membership   Interests shall continue to be subject to all the provisions of this Agreement.  Unless the transferor and   Transferee otherwise agree in writing, and give written notice of such agreement to the Company at least   seven (7) days prior to such Effective Transfer Time, all distributions declared to be payable to the   transferor at or prior to such Effective Transfer Time shall be made to the transferor.  No Transfer shall   relieve the transferor (or any of its Affiliates) of any of their obligations or liabilities under this   Agreement arising prior to the closing of the consummation of such Transfer.   9.3 Tolling.  All time periods specified in this Article IX are subject to reasonable extension   for the purpose of complying with requirements of law or regulation as determined by the Board of   Managers.   9.4 Restrictive Covenants.     (a) Each Member who is not a Subsidiary of or Affiliate of Parent (the “Non-USCR   Member”), and each holder of Incentive Interests, including each holder of Class B Incentive   Interests (each, a “Restricted Member”), shall not, and shall cause its Subsidiaries, Affiliates,   shareholders, members, managers, directors, employees not to, directly or indirectly, (i) engage in   any Competitive Activities; (ii) cause, solicit, induce or encourage any employee or consultant   employed or engaged by the Company or any of its Subsidiaries or Affiliates (each, a “Restricted   Employee”) to leave such employment or engagement or to apply for or accept employment (or   otherwise become engaged with) with any Person (other than the Company or any of its   Subsidiaries or Affiliates); (iii) cause, solicit, induce or encourage any current, former (with   which the Company or any of its Subsidiaries or Affiliates has done business in the twelve (12)   months preceding the date hereof) or prospective client, customer, supplier, or licensor of the   Company or any of its Subsidiaries or Affiliates or any other Person who has a business     

 

   19      relationship with the Company or any of its Subsidiaries or Affiliates, to terminate or modify any   such current or prospective relationship or to interfere with any such current or prospective   relationship; or (iv) solicit for business or transact business in any way relating to the Business,   with any current, former (with which the Company or any of its Subsidiaries or Affiliates has   done business in the twelve (12) months preceding the Closing Date) or prospective client,   customer, supplier, or licensor of the Company or any of its Subsidiaries or Affiliates.  The   covenant in this Section 9.4(a) shall terminate on February 28, 2022.     (b) The covenants and undertakings contained in this Section 9.4 relate to matters   which are of a special, unique and extraordinary character, and each Restricted Member   acknowledges and agrees that a violation of any of the terms of this Section 9.4 will cause   irreparable harm to the Company and any of its Subsidiaries or Affiliates, the amount of which   will be impossible to estimate or determine and which cannot be adequately compensated.    Accordingly, each Restricted Member acknowledges and agrees that the remedy at law for any   breach of this Section 9.4 will be inadequate.  Therefore, each Restricted Member acknowledges   and agrees that the Company and any of its Subsidiaries or Affiliates will be entitled to an   injunction, restraining order or other equitable relief from any court of competent jurisdiction in   the event of any breach or threatened breach of this Section 9.4 without the necessity of proving   actual damages or posting any bond whatsoever.  The rights and remedies provided by this   Section 9.4 are cumulative and in addition to any other rights and remedies that the Company or   any of its Subsidiaries or Affiliates may have hereunder or at law or in equity.     (c) Each Restricted Member represents to the Company and its Subsidiaries and   Affiliates that it is willing and able to engage in businesses that are not restricted pursuant to this   Section 9.4 and that enforcement of the restrictive covenants set forth in this Section 9.4 will not   be unduly burdensome to such Restricted Member.  Each Restricted Member acknowledges and   agrees that the restrictive covenants and remedies set forth in this Section 9.4 are reasonable as to   time, geographic area and scope of activity and do not impose a greater restraint than is necessary   to protect the goodwill and legitimate business interests of the Company and its Subsidiaries and   Affiliates.   (d) Notwithstanding anything contained in this Agreement, if the restrictive   covenants set forth in this Section 9.4 are found by a court of competent jurisdiction to contain   limitations as to time, geographic area or scope of activity that are not reasonable or not necessary   to protect the goodwill or legitimate business interests of the Company and its Subsidiaries and   Affiliates, then such court is hereby authorized and directed to reform such provisions to the   minimum extent necessary to cause the limitations contained in this Section 9.4 as to time,   geographical area and scope of activity to be reasonable and to impose a restraint that is not   greater than necessary to protect the goodwill and legitimate business interests of the Company   and its Subsidiaries and Affiliates.   (e) The existence of any claim or cause of action by any Restricted Member against   the Company or any of its Subsidiaries or Affiliates, whether predicated on this Agreement or   otherwise, shall not constitute a defense to the enforcement by the Company of the restrictive   covenants contained in this Section 9.4 or preclude injunctive relief.   9.5 Put and Call Option.     (a) Upon the determination of the Final Performance Amount for an applicable   Measurement Period (such date, the “Determination Date”), each Class B Member (as applicable, the   “Put/Call Seller”) shall have the right to require the Parent or USC Atlantic, Inc. to purchase, any then   vested Class B Incentive Interests (but in no event any unvested Class B Incentive Interests) held by such     

 

   20      Put/Call Seller (such right to require Parent or USC Atlantic, Inc. to purchase, the “Put Option”) by   providing written notice of its intention to exercise such Put Option (such notice, the “Put Notice”) for a   purchase price per vested Class B Incentive Interest equal to the Per Class B Incentive Interests Price.  On   the one (1) year anniversary of the Determination Date or upon a Designated Event (such date, the “Parent   Determination Date”), any member of the Parent Group shall have the right to require each Class B   Member to sell to the Parent Group or its designee any vested Class B Incentive Interests (but in no event   any unvested Class B Incentive Interests) held by such Put/Call Seller (such right to require such Put/Call   Seller to sell, the “Call Option” and, together with the Put Option, the “Option”) by providing written   notice of its intention to exercise such Call Option (such notice, the “Call Notice” and, together with the   Put Notice, the “Notice”) for a purchase price per vested Class B Incentive Interest equal to the Per Class   B Incentive Interests Price.  The vested Class B Incentive Interests subject to the Option are referred to   herein as the “Put/Call Interests”.     (b) In the event that (i) the Put/Call Seller wishes to exercise the Put Option, the   Put/Call Seller shall give the Notice in writing to the Parent and the Company of its intention to sell the   Put/Call Interests pursuant to the Put Option within eighty (180) days after the applicable Determination   Date with respect to the Measurement Period (the “Put Option Period”) or (ii) the Parent Group wishes to   exercise the Call Option, the Parent Group shall give the Notice in writing to the applicable Put/Call   Seller (or their respective authorized representative, executor, conservator or personal representative) and   the Company of its intention to purchase the Put/Call Interests pursuant to the Call Option within one   hundred eighty (180) days after the applicable Parent Determination Date with respect to the   Measurement Period (the “Call Option Period” and, together with the Put Option Period, the “Put/Call   Option Period ”).  If no Notice is given within the Put/Call Option Period, the Option shall terminate with   respect to such Put/Call Interests.  The closing of the purchase and sale pursuant to the Option shall take   place on a date reasonably designated by the Company within ninety (90) days after the end of the   Put/Call Option Period; provided, however, that if the Board of Managers determines an earlier date is   required for the closing, such closing shall occur at such earlier date.  At such closing, the applicable   Put/Call Seller shall deliver to the purchasing member of the Parent Group certificates or instruments, if   any, evidencing the Put/Call Interests, duly endorsed (or accompanied by duly executed assignments) and   otherwise in good form for delivery and free and clear of all liens other than as provided for in this   Agreement, and the purchasing member of the Parent Group shall pay the Put/Call Purchase Price in cash   (by wire transfer of immediately available funds or by certified or cashier’s check).  The purchasing   member of the Parent Group will be entitled to require each Put/Call Seller to provide representations and   warranties regarding (1) its power, authority and legal capacity to enter into such sale, (2) valid right, title   and interest in such Put/Call Interests and record and beneficial ownership of such Put/Call Interests, and   (3) the absence of any liens on such Put/Call Interests.  To the extent a Put/Call Seller fails to deliver all   of such Put/Call Interests in accordance with the terms hereof, the Parent Group may, at its option, in   addition to all other remedies it may have, require the Company to: (1) cancel on its books the Call   Interests registered in the name of such Put/Call Seller and (2) issue to the purchasing member of the   Parent Group, in lieu of such Put/Call Interests, Class B Incentive Interests registered in the purchasing   member of the Parent Group’s name, and all of the Put/Call Seller’s right, title, and interest in and to such   Put/Call Interests shall terminate in all respects.       (c) The rights of the Parent Group under Section 9.5 may be assigned or transferred   in whole or in part to any Subsidiary or Affiliate of the Parent (other than the Company), without any   consent or other action on the part of any Member; provided, however, that nothing herein shall release   Parent of its obligations hereunder; provided, further, however, that in no event shall any Class B Member   be permitted to assign or otherwise Transfer, directly or indirectly (including by the sale of equity, by   merger, or by operation of law) its rights hereunder and any attempted assignment shall be null and void   ab initio.     

 

   21      ARTICLE X   DISSOLUTION OF COMPANY;   LIQUIDATION AND DISTRIBUTION OF ASSETS   10.1 Events of Dissolution.  This Section 10.1 sets forth the exclusive events which will cause   the dissolution of the Company. The provisions of Section 18-801 of the Act that apply unless the limited   liability company agreement otherwise provides shall not become operative. The Company shall be   dissolved upon any of the following events (each, an “Event of Dissolution”):   (a) The Board of Managers shall elect to dissolve the Company; or   (b) A dissolution is required under Section 18-801(a)(4) of the Act or there is entered   a decree of judicial dissolution under Section 18-802 of the Act.   10.2 Liquidation; Winding Up.  Upon the occurrence of an Event of Dissolution, the Board of   Managers shall wind up the affairs of the Company in accordance with the Act and shall supervise the   liquidation of the assets and property of the Company and, except as hereinafter provided, shall have full,   complete and absolute discretion in the mode, method, manner and timing of effecting such liquidation.    The Board of Managers shall have absolute discretion in determining whether to sell or otherwise dispose   of Company assets or to distribute the same in kind.  The Board of Managers shall liquidate and wind up   the affairs of the Company as follows:   (a) The Board of Managers shall prepare (or cause to be prepared) a balance sheet of   the Company in accordance with GAAP as of the date of dissolution.   (b) The assets, properties and business of the Company shall be liquidated by the   Board of Managers in an orderly and businesslike manner so as not to involve undue sacrifice.   Notwithstanding the foregoing, if it is determined by the Board of Managers not to sell all or any   portion of the properties and assets of the Company, such properties and assets shall be   distributed in kind in the order of priority set forth in subsection (c); provided, however, that the   fair market value of such properties and assets (as determined by the Board of Managers in good   faith, which determination shall be binding and conclusive) shall be used in determining the   extent and amount of a distribution in kind of such properties and assets in lieu of actual cash   proceeds of any sale or other disposition thereof.   (c) The proceeds of the sale of all or substantially all of the properties and assets of   the Company and all other properties and assets of the Company not sold, as provided in   subsection (b) above, and valued at the fair market value thereof as provided in such   subsection (b), shall be applied and distributed in one or more installments as follows, and in the   following order of priority:   (i) First, to the payment of all debts and liabilities of the Company and the   expenses of liquidation not otherwise adequately provided for and the setting up of any   reserves that are reasonably necessary for any contingent, conditional or unmatured   liabilities or obligations of the Company or of the Members arising out of, or in   connection with, the Company;    (ii) Second, to each Class A Member until each such Class A Member has   received a total amount equal to its Capital Contributions; and    (iii) Third, the remaining proceeds to the Members in accordance with the   applicable provisions of Section 3.4.     

 

   22      (d) A certificate of cancellation, as required by the Act, shall be filed by the Board of   Managers.   10.3 Survival of Rights, Duties and Obligations. Termination, dissolution, liquidation or   winding up of the Company for any reason shall not release any party from liability which at the time of   such termination, dissolution, liquidation or winding up already had accrued to any other party or which   thereafter may accrue with respect to any act or omission prior to such termination, dissolution,   liquidation or winding up.   10.4 Claims of the Members.  Members and former Members shall look solely to the   Company’s assets for the return of their contributions to the Company, and if the assets of the Company   remaining after payment of or due provision for all debts, liabilities and obligations of the Company are   insufficient to return such contributions, the Members and former Members shall have no recourse against   the Company or any other Member.   ARTICLE XI   MISCELLANEOUS   11.1 Expenses.  Unless otherwise provided herein, the Company shall bear all of the expenses   incurred by the Company in connection with the preparation, execution and performance of this   Agreement and, the transactions contemplated hereby, including all fees and expenses of agents, counsel   and accountants.   11.2 Further Assurances.  Each party to this Agreement agrees to execute, acknowledge,   deliver, file and record such further certificates, amendments, instruments and documents, and to do all   such other acts and things, as may be required by law or as, in the opinion of the Board of Managers, may   be necessary or advisable to carry out the intent and purposes of this Agreement.   11.3 Notices.  Any notice or other communication required or permitted to be given hereunder   shall be in writing, and shall be deemed given and received (a) when transmitted by facsimile or   electronic mail or personally delivered on a Business Day during normal business hours, (b) on the   Business Day following the date of dispatch by overnight courier, or (c) on the third Business Day   following the date of mailing by registered or certified mail, return receipt requested, in each case,   addressed to the Company or the Board of Managers at the address of the principal office of the Company   set forth in Section 2.5, or to a Member at such Members’ address shown on Schedule 3.1, or in any such   case to such other address as the Company or any party hereto shall have last designated to the Company   and the Members by notice given in accordance with this Section 11.3.     11.4 Amendments; Termination.  Except as otherwise expressly provided herein, this   Agreement and the Certificate of Formation may not be modified, amended or restated, and provisions   hereof may not be waived without the approval of the Members holding a majority of the then   outstanding Class A Membership Interests on a fully-diluted basis, provided, however, that (a) any   amendment, modification or waiver of Sections 9.4 or 9.5 shall not be effective with respect to the Class   B Members without the consent of the Members holdings a majority of the issued and outstanding Class   B Incentive Interests (including, to the extent then a Member, 2G FB LLC) and (b) the Company shall   automatically amend Schedule 3.1 hereto without the consent of the Members and distribute such   amended Schedule 3.1 to each of the Members upon any change in any Member’s information thereon.    Any waiver of any provision of this Agreement requested by any party hereto must be in writing by the   party granting such waiver.     11.5 Severability.  Each provision of this Agreement shall be considered severable and if for   any reason any provision which is not essential to the effectuation of the basic purposes of this Agreement     

 

   23      is determined by a court of competent jurisdiction to be invalid, unenforceable or contrary to the Act or   existing or future applicable law, such invalidity, unenforceability or illegality shall not impair the   operation of or affect those provisions of this Agreement which are valid, enforceable and legal. In that   case, this Agreement shall be construed so as to limit any term or provision so as to make it valid,   enforceable and legal within the requirements of any applicable law, and in the event such term or   provision cannot be so limited, this Agreement shall be construed to omit such invalid, unenforceable or   illegal provisions.   11.6 Headings and Captions.  All headings and captions contained in this Agreement and the   table of contents hereto are inserted for convenience only and shall not be deemed a part of this   Agreement.  The Annexes are considered a part of this Agreement.   11.7 Counterparts.  This Agreement may be executed in counterparts, each of which shall   constitute an original and all of which, when taken together, shall constitute one and the same agreement.    Facsimile counterpart signatures to this Agreement shall be binding and enforceable.   11.8 GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS   OF THE STATE OF DELAWARE (WITHOUT REGARD TO THE RULES OF CONFLICTS OF LAW   TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION   WOULD BE REQUIRED THEREBY).   11.9 Jurisdiction.  The parties hereby agree that any suit, action or proceeding seeking to   enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or   the transactions contemplated hereby, whether in contract, tort or otherwise, shall be brought in the   United States District Court for the District of Delaware or in the Court of Chancery of the State of   Delaware (or, if such court lacks subject matter jurisdiction, in the Court of Chancery of the State of   Delaware), so long as one of such courts shall have subject-matter jurisdiction over such suit, action or   proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen   from a transaction of business in the State of Delaware.  Each of the parties hereby irrevocably consents   to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit,   action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it   may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such   court or that any such suit, action or proceeding which is brought in any such court has been brought in an   inconvenient forum. Service of process, summons, notice or other document by registered mail to the   address designated in Section 11.3 shall be effective service of process for any suit, action or other   proceeding brought in any such court.   11.10 Entire Agreement; Non-Waiver.  This Agreement supersedes all prior agreements   between the parties with respect to the subject matter hereof and contains the entire agreement between   the parties with respect to such subject matter.  No delay on the part of any party in exercising any right   hereunder shall operate as a waiver thereof, nor shall any waiver, express or implied, by any party of any   right hereunder or of any failure to perform or breach hereof by any other party constitute or be deemed a   waiver of any other right hereunder or of any other failure to perform or breach hereof by the same or any   other Member, whether of a similar or dissimilar nature.   11.11 No Third Party Beneficiaries.  Nothing contained in this Agreement (other than the   provisions of Article VII hereof), express or implied, is intended to or shall confer upon anyone other than   the parties (and their successors and permitted assigns) and the Company any right, benefit or remedy of   any nature whatsoever under or by reason of this Agreement.   11.12 No Right to Partition.  The Members, on behalf of themselves and their successors and   assigns, if any, hereby specifically renounce, waive and forfeit all rights, whether arising under contract     

 

   24      or statute or by operation of law, except as otherwise expressly provided in this Agreement, to seek, bring   or maintain any action in any court of law or equity for partition of the Company or any asset of the   Company, or any Membership Interest which is considered to be Company property, regardless of the   manner in which title to such property may be held.   11.13 Investment Representation and Indemnity.  Each Member, by execution of this   Agreement, (a) represents to each other Member and to the Company that such Member is acquiring a   Membership Interest in the Company for the purpose of investment for such Members’ own account, with   the intent of holding such Membership Interest for investment and without the intent of participating   directly or indirectly in any sale or distribution thereof in a manner that would violate the Securities Act,   (b) acknowledges that such Member must bear the economic risk of loss of such Members’ capital   contributions to the Company because this Agreement contains substantial restrictions on Transfer and   because the Membership Interests in the Company have not been registered under applicable United   States federal and state securities laws (it being understood that the Company shall be under no obligation   so to register such Membership Interests in the Company) and cannot be Transferred unless registered   under such securities laws or an exemption therefrom is available, and (c) agrees to indemnify each other   Member and the Company from any loss, damage, liability, claims and expenses (including reasonable   attorneys’ fees and expenses) incurred, suffered or sustained by any of them as a result of the inaccuracy   of any representation contained in this Section 11.13.   11.14 Confidentiality.                                                                                                                                                                                               (a) Except as and to the extent as may be required by applicable law, regulatory   authorities or examinations (including the Securities and Exchange Commission, FINRA, or any   analogous federal, state or local Governmental Authority), without the prior written consent of the Board   of Managers, the Members shall not make, and shall direct their officers, directors, agents, employees and   other representatives not to make, directly or indirectly, any public comment, statement, or   communication with respect to, or otherwise disclose or permit the disclosure of Confidential Information   or any of the terms, conditions, or other aspects of this Agreement; provided, however, that the Members   and their respective equity owners may disclose Confidential Information (i) to the extent required under   any agreement between the Members or their respective equity owners and their respective investors,   limited partners or other similar Persons of the Members and their respective equity owners, as applicable   who are subject to obligations of confidentiality and in confidential materials delivered to prospective   investors, limited partners or other similar Persons of the Members and their respective equity owners, as   applicable who are subject to obligations of confidentiality; provided, however, that the Members will use   commercially reasonable best efforts to, or cause their respective equity owners, to, enforce their   respective rights in connection with a breach of such confidentiality obligations by any Person receiving   Confidential Information pursuant to this clause (i), and (ii) to a bona fide potential purchaser of   Membership Interests held by such Member if such bona fide potential purchaser executes a   confidentiality agreement with such Member containing terms at least as protective as the terms set forth   in this Section 11.14 and which, among other things, provides for third-party beneficiary rights in favor of   the Company to enforce the terms thereof.  As used herein, “Confidential Information” means all   information, knowledge, systems or data relating to the business, operations, finances, policies, strategies,   intentions or inventions of the Company (including any of the terms of this Agreement and any   information provided pursuant to Article VIII) from whatever source obtained, except for any such   information, knowledge, systems or data which at the time of disclosure was in the public domain or   otherwise in the possession of the disclosing Person unless such information, knowledge, systems or data   was placed into the public domain or became known to such disclosing Person in violation of any non-   disclosure obligation, including this Section 11.14.  Each Member agrees that money damages would not   be a sufficient remedy for any breach of this Section 11.14 by a Member, and that in addition to all other   remedies, the Company shall be entitled to injunctive or other equitable relief as a remedy for any such     

 

   25      breach.  Each Member agrees not to oppose the granting of such relief and agrees to waive any   requirement for the securing or posting of any bond in connection with such remedy.   (b) If any Member is required by applicable law to disclose any Confidential   Information, it must, to the extent permitted by applicable law, first provide notice reasonably in advance   to the Company with respect to the content of the proposed disclosure, the reasons that such disclosure is   required by law and the time and place that the disclosure will be made.  Such Member shall cooperate, at   the Company’s sole cost and expense, with the Company to obtain confidentiality agreements or   arrangements with respect to any legally mandated disclosure and in any event shall disclose only such   information as is required by applicable law when required to do so.   (c) Each Member shall indemnify each other Member and the Company for any   Damages incurred, suffered or sustained by any of them as a result of any breach by such Member of this   Section 11.14.   *  *  *  *  *    

 

   Signature Page to    Amended & Restated Limited Liability Company Agreement    of Ferrara Bros., LLC   IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of   the date first above written.   COMPANY:   FERRARA BROS., LLC    By: /s/ Kevin R. Kohutek      Name:  Kevin R. Kohutek   Title: Vice President    

 

   Signature Page to    Amended & Restated Limited Liability Company Agreement    of Ferrara Bros., LLC   MEMBERS:         USC ATLANTIC, INC.         By: /s/ Kevin R. Kohutek       Name: Kevin R. Kohutek   Title:  Vice President           

 

   Signature Page to    Amended & Restated Limited Liability Company Agreement    of Ferrara Bros., LLC   2G FB LLC            By: /s/ Joseph J. Ferrara       Name: Joseph J. Ferrara   Title:  Manager                 

 

      Schedule 3.1(B)      (Dated April 14, 2015)      Owner Address   Initial Capital   Contribution   Class A   Membership   Interests   Class B   Membership   Interests   USC ATLANTIC,   INC.   331 N. Main Street   Euless, Texas 76039   Attn.:  CEO and President      with a copy to:      331 N. Main Street   Euless, Texas 76039   Attn.:  General Counsel                $60,000,000 60,000 0   2G FB LLC Ferrara Family Holding Corp.      $0 0 35,000ex102ferreraincentiveint

EXHIBIT 10.2      CONFIDENTIAL TREATMENT:      U.S. CONCRETE, INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS   DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE AFFORDED CONFIDENTIAL   TREATMENT PURSUANT TO RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF   1934. U.S. CONCRETE, INC. HAS SEPARATELY FILED THE OMITTED PORTIONS OF THE   DOCUMENT WITH THE SECURITIES AND EXCHANGE COMMISSION.      Execution Copy        1   110193941 v2   FERRARA BROS., LLC   CLASS B INCENTIVE INTERESTS AWARD AGREEMENT   This Class B Incentive Interests Award Agreement (this “Agreement”), is made effective as of   the calendar day immediately following the later of (a) the date on which the effective time of the Merger   (as defined herein) in the State of New York occurs, (b) the date on which the effective time of the   Merger in the State of Delaware occurs and (c) April 9, 2015 (such date, the “Grant Date”), between   Ferrara Bros., LLC, a Delaware limited liability company (the “Company”), and 2G FB LLC (“Holder”).   R E C I T A L S:   WHEREAS, prior to the execution of this Agreement, the Company entered into that certain   Amended and Restated Limited Liability Company Agreement of the Company (as amended, restated,   modified, or supplemented from time to time, the “LLC Agreement”);    WHEREAS, capitalized terms used and not otherwise defined in this Agreement shall have the   meanings set forth in the LLC Agreement;    WHEREAS, pursuant to the LLC Agreement, the Company may issue Class B Incentive   Interests (the “Incentive Interests”) to Holder;    WHEREAS, prior to the date hereof and in any event prior to the issuance of the Incentive   Interests, Ferrara Bros. Building Materials Corp., a New York corporation was merged with and into the   Company (the “Merger”); and       WHEREAS, the Company desires to issue to Holder that number of Incentive Interests as set   forth on the signature page hereto, subject to the terms and conditions set forth in this Agreement and the   LLC Agreement.   NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties   hereto agree as follows:   1.  Issuance of Incentive Interests.  Subject to the terms and conditions of the LLC Agreement and   the additional terms and conditions set forth in this Agreement, the Company hereby issues to Holder the   number of Incentive Interests set forth on the signature page attached hereto effective as of the Grant   Date.  In no event shall the Incentive Interests granted hereby be issued prior to, or deemed issued prior   to, the calendar day immediately following the later of (a) the date on which the effective time of the   Merger in the State of New York occurs and (b) the date on which the effective time of the Merger in the   State of Delaware occurs.      

 

2   2.  Vesting; Per Class B Incentive Interests Price.  The Incentive Interests shall vest as set forth on   Annex A attached hereto.  The “Per Class B Incentive Interests Price” for purposes of the LLC   Agreement means $1,000 per vested Class B Incentive Interest.   3.  Rights as Holder of Incentive Interests; Profits Interests.  Subject to the terms of the LLC   Agreement, Holder shall be (a) the record owner of the Incentive Interests issued hereunder and (b) as   record owner, shall be entitled to the rights of a holder of Incentive Interests as set forth in the LLC   Agreement, in each case, effective as of the Grant Date.  All Incentive Interests are subject to certain   restrictions as provided in the LLC Agreement.  The Incentive Interests are intended to constitute “profits   interests” within the meaning of Rev. Proc. 93-27, 1993-2 C.B. 343 and Rev. Proc. 2001-43, 2001-2 C.B.   191.   4.  Section 83(b) Election; Withholding.  The Company recommends that within thirty (30)   calendar days after the Grant Date, Holder should make an election with the Internal Revenue Service   (“IRS”) under Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), and the   regulations promulgated thereunder (an “83(b) Election”), in the form attached hereto as Exhibit A.    Holder shall submit any 83(b) Election to the IRS within thirty (30) calendar days after the Grant Date   and shall promptly send a copy to the Company.  To the extent that Holder does not make an 83(b)   Election with respect to the Incentive Interests and Holder is subject to ordinary income and withholding   taxes upon the vesting of such Incentive Interests (the “Vesting Units”), Holder will be required to pay, in   cash, to the Company an amount equal to such withholding taxes, as determined by the Company in good   faith and the Company shall remit any such payments to the proper taxing authorities. The Company shall   be authorized to withhold from compensation otherwise payable to Holder by the Company or its   Affiliates the amount of such withholding taxes.    Holder understands that (a) in making the 83(b) Election, Holder may be taxed at the time the   Incentive Interests are issued hereunder to the extent the fair market value of the Incentive Interests   exceeds the purchase price, if any, for such Incentive Interests and (b) in order to be effective, the 83(b)   Election must be filed with the IRS within thirty (30) calendar days after the Grant Date.  Holder hereby   acknowledges that (i) the foregoing description of the tax consequences of the 83(b) Election is not   intended to be complete and, among other things, does not describe state, local or foreign income and   other tax consequences, (ii) the Company has not provided, and is not hereby providing, Holder with tax   advice regarding the 83(b) Election and has urged Holder to consult Holder's own tax advisor with respect   to the income taxation consequences thereof, and (iii) the Company will have no liability to Holder if the   actual fair market value of any of the Incentive Interests on the date hereof exceeds the amount specified   in the 83(b) Election.   5.  Notices.  All notices, requests, consents and other communications hereunder to any party shall   be deemed to be sufficient if delivered in writing in person or by telecopy (or similar electronic means   with a copy following by nationally-recognized overnight courier) or sent by nationally-recognized   overnight courier or first class registered or certified mail, return receipt requested, postage prepaid,   addressed to such party at the address set forth in the LLC Agreement or on the signature page hereto or   at such other address as may hereafter be designated in writing by such party to the other parties.   6.  Incentive Interests Subject to Agreements.  As a condition of the issuance of the Incentive   Interests, Holder will become a party to the LLC Agreement.  By entering into this Agreement, Holder   acknowledges and agrees that (a) Holder has received and read the copy of the LLC Agreement enclosed   with this Agreement, (b) the Incentive Interests are subject to the LLC Agreement, the terms and   provisions of which are hereby incorporated herein by reference, and this Agreement, including the terms   and conditions set forth on Annex A attached hereto, (c) Holder shall execute, and return to the Company,     

 

3   an executed copy of this Agreement and the LLC Agreement, and (d) the Incentive Interests are only   transferable in accordance with the LLC Agreement.     7.  Legend.  Each certificate (if certificated) evidencing Incentive Interests and each instrument   issued in exchange for or upon the transfer of any Incentive Interests shall be stamped or otherwise   imprinted with a legend in substantially the following form, or such similar legend as may be specified in   any other agreement with the Company:   “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO   (1) THE TERMS SET FORTH IN THE AWARD AGREEMENT DATED AS OF   APRIL 11, 2015 AND (2) THE REDEMPTION AND FORFEITURE TERMS AND   CERTAIN TRANSFER AND OTHER RESTRICTIONS SET FORTH IN THE   AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT   OF FERRARA BROS., LLC. THE SECURITIES MAY NOT BE OFFERED OR   SOLD EXCEPT IN COMPLIANCE WITH SUCH TRANSFER RESTRICTIONS.    COPIES OF SUCH AGREEMENTS ARE ON FILE WITH THE SECRETARY OF   FERRARA BROS., LLC AND ARE AVAILABLE WITHOUT CHARGE UPON   WRITTEN REQUEST THEREFOR.  THE HOLDER OF THIS CERTIFICATE, BY   ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF   THE PROVISIONS OF THE AFORESAID AGREEMENTS.”    8.  No Right to Continued Service.  This Agreement shall not be construed as giving Holder or any   Affiliate, member, or equity holder of Holder the right to be retained in the employ of, or to continue to   provide services to, the Company or any of its Affiliates.   9.  Entire Agreement. This Agreement and the LLC Agreement, as any of the foregoing may be   amended or supplemented in accordance with their terms, constitute the entire agreement and   understanding of the parties hereto with respect to the subject matter contained herein and therein and   supersedes all prior communications, representations and negotiations in respect thereto.   10. Signature in Counterparts.  This Agreement may be signed in counterparts, each which shall be   an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.     11. 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 of law provision or rule   (whether of the State of Delaware or any other jurisdiction) that would cause the laws of any jurisdiction   other than the State of Delaware to be applied.   [SIGNATURE PAGE FOLLOWS]      IRS Circular 230 Notice Requirement.  This communication is not given in the form of a covered   opinion, within the meaning of Circular 230 issued by the United States Secretary of the Treasury.    Thus, we are required to inform you that you cannot rely upon any tax advice contained in this   communication for the purpose of avoiding United States federal tax penalties.  In addition, any tax   advice contained in this communication may not be used to promote, market or recommend a   transaction to another party.     

 

       Signature Page to Class B Incentive Interests Award Agreement    IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first   written above.      FERRARA BROS., LLC   By:  /s/ Kevin R. Kohutek     Name:   Kevin R. Kohutek   Title:   Vice President         2G FB LLC   By:  /s/ Joseph J. Ferrara     Name:   Joseph J. Ferrara    Title:   Manager      Incentive Interests Number (#)   Class B Incentive Interests 35,000        

 

5   ANNEX A      VESTING TERMS      (a) For the purposes of the LLC Agreement, this Award Agreement and the Class B   Incentive Interests granted pursuant thereto and hereto, the following definitions shall apply:   (i) “2020 Measurement Period Corrective Maximum Amount” means an amount   equal to 35,000,000, less the aggregate Performance Amounts for the Measurement Periods for   fiscal years 2017, 2018, and 2019.     (ii) “Aggregate Maximum Distribution” with respect to the vested Class B Incentive   Interests means 35,000,000.00.     (iii)  “Performance Amount” means, with respect to each Measurement Period, if the   EBITDA for such Measurement Period is equal to or greater than the Qualifying EBITDA   Threshold for such Measurement Period, an amount equal to the product of: (i) the amount set   forth on Schedule A under the column entitled “Performance Amount” for such Measurement   Period, multiplied by (ii) the amount equal to (A) the sum of (1) the EBITDA for such   Measurement Period, plus (2) the amount by which EBITDA in any prior Measurement Period   was in excess of the amount set forth on Schedule A under the column entitled “Target EBITDA   to Achieve Maximum Payment” for such prior Measurement Period (in each case to the extent,   and solely to the extent, such amount is not included in a prior Measurement Period’s calculation   of Performance Amount under this clause (2)), less (3) the sum of: (x) the Qualifying EBITDA   Threshold for such Measurement Period, plus (y) the amount by which EBITDA in any prior   Measurement Period was less than the Qualifying EBITDA Threshold for such prior   Measurement Period (in each case to the extent, and solely to the extent, not included in a prior   Measurement Period’s calculation of Performance Amount under this clause (y)), divided by (2)   the amount set forth on Schedule A under the column entitled “Target EBITDA to Achieve   Maximum Payment” for such Measurement Period, less the Qualifying EBITDA Threshold for   such Measurement Period; provided, however, that, in calculating the amount described in the   foregoing clause (3)(y) of this definition of Performance Amount in the event that the EBITDA   for a given Measurement Period with respect to 2017, 2018, or 2019 is below the amount set forth   on Schedule A under the column entitled “Floor EBITDA” for such Measurement Period, the   amount set forth on Schedule A under the column entitled “Floor EBITDA” shall be used instead   as the Qualifying EBITDA Threshold for purposes of such calculation of the prior Measurement   Period with respect to 2017, 2018, or 2019, as applicable; provided, further however, that:       (1) in the special case when both (x) EBITDA (as adjusted pursuant to the   preceding calculation of Performance Amount) for the 2020 Measurement Period is   greater than the amount set forth on Schedule A under the column entitled “Target   EBITDA to Achieve Maximum Payment” for the Measurement Period for fiscal year   2020 and (y) the sum of the Performance Amounts earned with respect to all   Measurement Periods equals less than 35 million, then the following principles shall   govern the award of additional Performance Amounts to the Performance Amount for the   Measurement Period for 2020:    a. The “Remaining Potential Award” equals (x) the 2020 Measurement   Period Corrective Maximum Amount, minus (y) ****;     

 

6   b. The “Remaining Cumulative EBITDA” equals (x) the sum of the   amounts set forth on Schedule A under the column entitled “Target EBITDA to Achieve   Maximum Payment”, minus (y) the sum of EBITDA for each Measurement Period   (inclusive of the **** of EBITDA for the Measurement Period for fiscal year 2020 which   is a prerequisite of this special case scenario); and   c. The relationship of the Remaining Potential Award to Remaining   Cumulative EBITDA shall govern the pro rata treatment for purposes of computing how   much of an additional Performance Award is to be awarded in this special case scenario   for the Measurement Period for fiscal year 2020.   (2) in no event shall the total Performance Amount in a given Measurement   Period exceed the amount set forth on Schedule A under the column entitled “Maximum   Payment” for such Measurement Period; and    (3) in no event shall the sum of each Performance Amount with respect to all   Measurement Periods exceed 35,000,000.   (iv) “Performance Statement” means, for each Measurement Period, a written   statement setting forth (i) in reasonable detail, the Company’s calculation of EBITDA for such   Measurement Period, and (ii) the Company’s calculation of the Performance Amount (such   calculation, the “Estimated Performance Amount”, if any, for such Measurement Period.   (v) “Designated Acquisitions” means such acquisitions agreed upon by email from   **** to **** and the Seller’s Representative on the date hereof at 12:52 p.m. Dallas time.   (vi) “EBITDA” means, for the Measurement Period and without duplication, the sum   of (A) consolidated net income of the Performance Business for such Measurement Period   (computed without regard to any extraordinary items of gain or loss), plus (B) to the extent   included in the calculation of net income for the Measurement Period, the sum of (1) interest   expense, (2) income tax expense, and (3) depreciation and amortization expense, in all cases   determined in accordance with GAAP in a manner consistent with the historical accounting   practices of such Seller; provided, however, that in determining such EBITDA: (A) EBITDA   shall not include any gains, losses or profits realized from the sale of any assets other than in the   ordinary course of business and (B)****; provided, however, that ****.       (vii) “EBIDTA Target” means, with respect to a Measurement Period, the amount set   forth on Schedule A under the column entitled “Target EBITDA to Achieve Maximum Payment”   for such Measurement Period.   (viii) “Measurement Period” means (i) with respect to fiscal year 2017, January 1,   2017 through December 31, 2017, (ii) with respect to fiscal year 2018, January 1, 2018 through   December 31, 2018, (iii) with respect to fiscal year 2019, January 1, 2019 through December 31,   2019, and (iv) with respect to fiscal year 2020, January 1, 2020 through December 31, 2020.    (ix) “Performance Business” means: ****.     (x) “Qualifying EBITDA Threshold”  means, with respect to a Measurement Period,   the amount set forth on Schedule A under the column entitled “Qualifying EBITDA Threshold”   for such Measurement Period.     

 

7   (b) On or prior to February of the second fiscal year after the end of an applicable   Measurement Period (e.g., 2019 for 2017, 2020 for 2018, 2021 for 2019, and 2022 for 2020), the   Company shall prepare and deliver to the Parent and the Class B Member the Performance Statement.    Promptly following the delivery of the Performance Statement to the Class B Member, the Company shall   afford the Class B Member and its representatives the reasonable opportunity to examine the Company’s   calculation of EBITDA and the Estimated Performance Amount and such underlying records and work   papers as are reasonably necessary and appropriate.  The Company shall cooperate with the Class B   Member and its representatives in such examination.  If the Class B Member disagrees with the   Company’s calculation of EBITDA or the Estimated Performance Amount contained in the Performance   Statement, the Class B Member shall, within thirty (30) calendar days after receipt of the Performance   Statement, deliver a written notice (a “Performance Objection Notice”) to the Company setting forth the   Class B Member’s objections to the Performance Statement.  The Performance Objection Notice shall   contain a specific list of the disputed items and, for each individual disputed item, sufficient detail   regarding the nature and the basis for such disputed item.  If a Performance Objection Notice is not   delivered within such time period, then the Estimated Performance Amount as set forth in the   Performance Statement delivered by the Company shall be conclusive and binding upon each of the   Company, the Parent Group and the Class B Member and shall be deemed the “Final Performance   Amount.” Any item or amount with respect to which no dispute is raised in the Performance Objection   Notice will be final, conclusive and binding on each of the Company, the Parent Group and the Class B   Member.  The Company and the Class B Member shall in good faith attempt to resolve all items set forth   in the Performance Objection Notice and, if the Company and the Class B Member so resolve all such   items, the Performance Statement, including the EBITDA and the Final Performance Amount, as   amended to the extent necessary to reflect the resolution of the items set forth in the Performance   Objection Notice, shall be conclusive and binding on each of the Company, the Parent Group and the   Class B Member.  If the Company and the Class B Member do not reach agreement in resolving the items   set forth in the Performance Objection Notice within thirty (30) calendar days after such Performance   Objection Notice is timely and properly delivered to the Company, either the Company or the Class B   Member may submit the dispute to the Independent Accountant (as defined in the Share Purchase   Agreement) for resolution.  The Company and the Class B Member shall jointly instruct the Independent   Accountant that he or she (A) shall act as an expert and not as an arbitrator and (B) shall review only the   disputed items that were specifically identified in the Performance Objection Notice and that the   Company and the Class B Member were unable to resolve during such thirty (30) calendar day period   after such Performance Objection Notice was timely and properly delivered to the Company.  Promptly,   but no later than thirty (30) calendar days after acceptance of his or her appointment as Independent   Accountant, the Independent Accountant shall determine, based solely on written submissions by the   Company and the Class B Member, and not by independent review, only those issues in dispute and shall   render a written report as to the resolution of the dispute and the resulting computation of the EBITDA   and the Final Performance Amount which shall be conclusive and binding on the Parties.  In resolving   any disputed item, the Independent Accountant (x) shall be bound by the provisions of this Award   Agreement and the LLC Agreement and (y) may not assign a value to any individual disputed item   greater than the greatest value for such item claimed by the Company or the Class B Member or less than   the smallest value for such item claimed by the Company or the Class B Member.   (c) The Class B Member hereby agrees and acknowledges that (i) from and after the   Effective Date, the Company and the Parent Group have the right to operate the Performance Business   (and all other components of the Company’s or the Parent Group’s business) in any way that the   Company deems appropriate in the Company’s sole and absolute discretion, (ii) the Company and the   Parent Group have no obligation to operate the Performance Business (or any other component of the   Company’s or the Parent Group’s business) in a manner designed to achieve any EBITDA, EBITDA   Target or the Performance Amount, (iii) the post-Closing Board of Managers of the Company and the   boards of managers and comparable governing bodies of the members of the Parent Group shall have the     

 

8   power and right to control all aspects of the business and operations of the Performance Business   including all personnel (including directors and officers) decisions and the sale, marketing, supply,   pricing and distribution of all of the products and services, which actions may have the effect of reducing   or eliminating EBITDA and/or affecting the Company’s ability to achieve or achievement of the EBITDA   Target or the resulting Performance Amount, (iv) the Company and the Parent Group are not obligated to   operate the Performance Business (or any component of the Company’s or the Parent Group’s business)   in a manner consistent with the manner in which any prior owner or operator operated the Performance   Business prior to the Closing Date, (v) the Company is under no obligation to continue to serve any client,   customer, or Person after the Effective Date, (vi) the Performance Amounts described in this Annex A   (and the resulting vesting of the Class B Incentive Interests, if applicable) are speculative and subject to   numerous factors outside the control of the Company and the Parent Group, (vii) none of the Parent, any   Subsidiary of the Parent or the Company owes any fiduciary duty or express or implied duty to any Class   B Member, other than any implied duty of good faith imposed by applicable New York law, (viii) none of   the Parent, any Subsidiary of the Parent or the Company makes any representation and expresses no   opinion as to the value or likelihood of the Performance Business achieving an EBITDA Target, and (ix)   the parties to the LLC Agreement and this Award Agreement solely intend for the express provisions of   this Award Agreement and the LLC Agreement to govern their relationship with respect to the   Performance Amounts, the Class B Incentive Interests, the vesting thereof, and the calculation and   determination of any component of or any matter related to the foregoing.      (d) Upon the determination of a Final Performance Amount for a Measurement   Period, a number of unvested Class B Incentive Interests of the Class B Member equal to the following   shall vest: (i) the Final Performance Amount for such Measurement Period, divided by (ii) 1,000.  For   example, if the Final Performance Amount is equal to ****, then **** Class B Incentive Interests shall   vest.  By way of example and not limitation, example calculations of the Performance Amounts and the   resulting vesting of the Class B Incentive Interests are set forth below on Schedule B.   (e) In the event that there are unvested Class B Incentive Interests following the   determination of the Final Performance Amount for all Measurement Periods, all such unvested Class B   Incentive Interests following such determination shall be automatically canceled and of no further force or   effect and shall be canceled on the books and records of the Company and its applicable transfer agent.   (f) Notwithstanding anything to the contrary contained herein, as a condition to the   vesting of any Incentive Interest, **** must not all have been terminated for Cause by the Company,   Parent or any of their Subsidiaries and, in the event that each of **** have been terminated for Cause by   the Company, Parent or any of their Subsidiaries then all such unvested Incentive Interests at the time of   termination shall immediately terminate and be of no further force or effect and regardless of any   subsequent determination of a Final Performance Amount, no further vesting shall occur.                 

 

           Schedule A      Fiscal Year Performance   Amount    (in millions)   Qualifying EBITDA   Threshold   (in millions)   Target EBITDA to   Achieve Maximum   Payment   (in millions)   Maximum Payment   (in millions)   Floor EBITDA   (in millions)      2017      ****      ****      ****      ****      ****      2018      ****      ****      ****      ****      ****      2019      ****      ****      ****      ****      ****      2020      **** ****      ****      2020 Measurement Period   Corrective Maximum Amount      N/A      Provided, however, that in the event that none of the Designated Acquisitions is completed on or prior to January 1 of the Measurement Period the   following shall constitute Schedule A:       Fiscal Year Performance   Amount    (in millions)   Qualifying EBITDA   Threshold   (in millions)   Target EBITDA to   Achieve Maximum   Payment   (in millions)   Maximum Payment   (in millions)   Floor EBITDA   (in millions)      2017      ****      ****      ****      ****      ****      2018      ****      ****      ****      ****      ****      2019      ****      ****      ****      ****      ****      2020      **** ****      ****      2020 Measurement Period   Corrective Maximum Amount      N/A           

 

           Schedule B   Example Calculations        2017 EBITDA    ($ in millions)   Performance Amount on   Such Year    (Corresponding Vested   Class B Incentive   Interests)   2018 EBITDA   ($ in millions)   Performance Amount   on Such Year    (Corresponding Vested   Class B Incentive   Interests)   2019   EBITDA   ($ in millions)   Performance Amount on Such   Year    (Corresponding Vested Class   B Incentive Interests)   2020   EBITDA   ($ in   millions)   Performance   Amount on Such   Year    (Corresponding   Vested Class B   Incentive Interests)   Example 1 **** **** **** **** **** **** **** ****   Example 2 **** **** **** **** **** **** **** ****   Example 3 **** **** **** **** **** **** **** ****   Example 4 **** **** **** **** **** **** **** ****   Example 5 **** **** **** **** **** **** **** ****      ** In cases in which the special case scenario is implicated, the following examples would apply:         2017 EBITDA    ($ in millions)   Performance Amount on   Such Year    (Corresponding Vested   Class B Incentive   Interests)   2018 EBITDA   ($ in millions)   Performance Amount   on Such Year    (Corresponding Vested   Class B Incentive   Interests)   2019   EBITDA   ($ in millions)   Performance Amount on Such   Year    (Corresponding Vested Class   B Incentive Interests)   2020   EBITDA   ($ in   millions)   Performance   Amount on Such   Year    (Corresponding   Vested Class B   Incentive Interests)   Example 1 ****  **** **** **** ****  **** **** ****   Example 2 ****  **** **** **** ****  **** **** ****   Example 3 ****  **** **** **** ****  **** **** ****   Example 4 ****  **** **** **** ****  **** **** ****    

 

          Annex A-1      ****    

 

          Annex A-2         ****    

 

          EXHIBIT A      ELECTION TO INCLUDE PROFITS UNITS IN GROSS   INCOME PURSUANT TO SECTION 83(b) OF THE   INTERNAL REVENUE CODE      The undersigned was issued Class B Incentive Interests (the “Profits Units”) of Ferrara Bros., LLC (the   “Company”) on April __, 2015.  The undersigned desires to make an election to have the Profits Units   taxed under the provision of Section 83(b) of the Internal Revenue Code of 1986, as amended (“Code   §83(b)”), at the time such Profits Units were issued.   Therefore, pursuant to Code §83(b) and Treasury Regulation §1.83-2 promulgated thereunder, the   undersigned hereby makes an election, with respect to the Profits Units (described more fully in   Paragraph 2 below), to report as taxable income for calendar year 2015 the excess, if any, of the Profits   Units’ fair market value on _____________,  over the purchase price thereof, if any.   The following information is supplied in accordance with Treasury Regulation §1.83-2(e):   The name, address and social security number of the undersigned:              ______________________________   ______________________________   SSN:__________________________   1.  A description of the property with respect to which the election is being made:          35,000 Profits Units.     2.  The date on which the property was transferred: April __, 2015.  The taxable year for   which such election is made: calendar year 2015.   3.  The restrictions to which the property is subject: If the undersigned ceases to be   employed by the Company or any of its subsidiaries under certain circumstances, all or a portion of the   Profits Units may be subject to forfeiture.  The Profits Units are also subject to transfer restrictions and   vesting.   4.  The aggregate fair market value on April __, 2015, of the Profits Units, determined   without regard to any lapse restriction, is: $__________.   5.  The aggregate amount paid for the Profits Units is $0.00.     6.   A copy of this election has been furnished to the Secretary of the Company pursuant   to Treasury Regulations §1.83-2(e)(7).   Dated:  _____________, 2015    ____________________________          Name:

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