Document:

Exhibit 10.1

 

 

SECOND AMENDED AND RESTATED LIMITED LIABILITY
COMPANY AGREEMENT

 

OF

 

Direct
Digital Holdings, LLC

 

(a Texas limited liability company)

 

February 15, 2022

 

 

THE UNITS REPRESENTED BY THIS AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY
OTHER APPLICABLE SECURITIES LAWS. SUCH UNITS MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED OF AT ANY TIME WITHOUT EFFECTIVE
REGISTRATION UNDER SUCH ACT AND LAWS OR EXEMPTION THEREFROM.

 

THE UNITS REPRESENTED BY THIS AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER SPECIFIED IN THIS AGREEMENT, AND THE COMPANY
RESERVES THE RIGHT TO REFUSE THE TRANSFER OF SUCH UNITS UNTIL SUCH RESTRICTIONS HAVE BEEN SATISFIED WITH RESPECT TO ANY TRANSFER. A COPY
OF SUCH RESTRICTIONS SHALL BE FURNISHED BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE.

 

    	 		 

     

    

 

Table
of Contents

  

		 	Page
	Section 1	 
	FORMATION,
    NAME, PURPOSE, MEMBERS, DEFINITIONS, ETC.	 
	 	 	 
	Section 1.1	General	2
	 	 	 
	Section 1.2	Name; Principal Office	2
	 	 	 
	Section 1.3	Purposes	2
	 	 	 
	Section 1.4	Registered Agent; Registered Office	3
	 	 	 
	Section 1.5	Commencement and Term	3
	 	 	 
	Section 1.6	Income Tax Classification	3
	 	 	 
	Section 1.7	Members	3
	 	 	 
	Section 1.8	Definitions	3
	 	 	 
	Section 2	 
	CAPITALIZATION
    AND MEMBERS	 
	 	 	 
	Section 2.1	Capitalization	3
	 	 	 
	Section 2.2	Provisions with Respect to Units	5
	 	 	 
	Section 2.3	Additional Capital Contributions	8
	 	 	 
	Section 2.4	Member Loans	9
	 	 	 
	Section 2.5	Maintenance of Capital Accounts/Reports; Withdrawal
    of Capital; No Interest	9
	 	 	 
	Section 2.6	Representations and Warranties of Members	9
	 	 	 
	Section 3	 
	NON-LIQUIDATING
    DISTRIBUTIONS	 
	 	 	 
	Section 3.1	Available Cash	10
	 	 	 
	Section 3.2	Withholding/Deemed Loans to Members	10
	 	 	 
	Section 3.3	Limitations on Distributions/Liability for Repayment	11
	 	 	 
	Section 3.4	Determination of Available Cash	12
	 	 	 
	Section 4	 
	ALLOCATIONS
    OF PROFITS AND LOSSES	 
	 	 	 
	Section 4.1	General Allocation of Profits or Losses	12
	 	 	 
	Section 4.2	Allocations of Certain Tax Items	13
	 	 	 
	Section 4.3	Miscellaneous	13
	 	 	 
	Section 5	 
	MANAGEMENT	 
	 	 	 
	Section 5.1	Designation and Authority of Managing Member	13
	 	 	 
	Section 5.2	Authority of the Managing Member; Delegation of
    Authority	14

 

    	 	-i-	 

    

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	Section 5.3	Additional or Substitute Managing
    Member	15
	 	 	 
	Section 5.4	Fiduciary Duties; Indemnification	15
	 	 	 
	Section 5.5	Compensation/Reimbursement	17
	 	 	 
	Section 5.6	Officers	18
	 	 	 
	Section 6	 
	MEMBERs	 
	 	 	 
	Section 6.1	Member Voting	18
	 	 	 
	Section 6.2	Written Consent to Action	19
	 	 	 
	Section 6.3	Members Lack of Authority	19
	 	 	 
	Section 6.4	No Right of Partition	19
	 	 	 
	Section 6.5	Limitation of Liability	19
	 	 	 
	Section 7	 
	UNREGISTERED
    SECURITIES	 
	 	 	 
	Section 8	 
	TRANSFERS
    OF MEMBERSHIP INTERESTS	 
	 	 	 
	Section 8.1	Transfers by Unitholders	20
	 	 	 
	Section 8.2	Void Transfers	21
	 	 	 
	Section 8.3	Effect of Transfer	21
	 	 	 
	Section 8.4	Additional Restrictions on Transfer	21
	 	 	 
	Section 8.5	Transfer Fees and Expenses	22
	 	 	 
	Section 8.6	Redemption and Exchange Rights	23
	 	 	 
	Section 8.7	Indirect Ownership	26
	 	 	 
	Section 8.8	Pledge of Membership Interests	27
	 	 	 
	Section 9	 
	DISSOLUTION,
    WINDING UP AND LIQUIDATING DISTRIBUTIONS	 
	 	 	 
	Section 9.1	Events of Dissolution	27
	 	 	 
	Section 9.2	Winding Up	28
	 	 	 
	Section 9.3	Liquidating Distributions	28
	 	 	 
	Section 9.4	Liquidating Trust	28
	 	 	 
	Section 9.5	Certificate of Termination	28
	 	 	 
	Section 9.6	Withdrawal and Resignation of Unitholders	29
	 	 	 
	Section 10	 
	BOOKS
    AND RECORDS; INFORMATION RIGHTS; INSURANCE	 
	 	 	 
	Section 10.1	Books and Records	29

 

    	 	-ii-	 

    

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	Section 10.2	Accounting Decisions	29
	 	 	 
	Section 10.3	Income Tax Elections	29
	 	 	 
	Section 10.4	Taxes and Liens	29
	 	 	 
	Section 10.5	Tax Reports	29
	 	 	 
	Section 10.6	Insurance	30
	 	 	 
	Section 10.7	Confidentiality	30
	 	 	 
	Section 11	 
	PARTNERSHIP
    REPRESENTATIVE	 
	 	 	 
	Section 11.1	Partnership Representative	31
	 	 	 
	Section 11.2	Indemnification	32
	 	 	 
	Section 12	 
	MISCELLANEOUS	 
	 	 	 
	Section 12.1	Notices	32
	 	 	 
	Section 12.2	Binding Effect	33
	 	 	 
	Section 12.3	Construction	33
	 	 	 
	Section 12.4	Entire Agreement; Amendments	33
	 	 	 
	Section 12.5	Assignees	34
	 	 	 
	Section 12.6	Headings	35
	 	 	 
	Section 12.7	Severability	35
	 	 	 
	Section 12.8	Further Cooperation	35
	 	 	 
	Section 12.9	Governing Law; Venue	35
	 	 	 
	Section 12.10	Waiver of Action for Partition	35
	 	 	 
	Section 12.11	Counterpart Execution; Facsimile Execution	35
	 	 	 
	Section 12.12	Time of the Essence	35
	 	 	 
	Section 12.13	Independent Legal Representation; Waiver of Conflict
    of Interests	35
	 	 	 
	Section 12.14	References	36
	 	 	 
	Section 12.15	Dispute Resolution	36
	 	 	 
	Section 12.16	Spousal Consent	38
	 	 	 
	Section 12.17	Notice to Members of Provisions of this Agreement	38
	 	 	 
	Section 12.18	Creditors	39
	 	 	 

 

    	 	-iii-	 

     

    

 

SECOND AMENDED AND RESTATED LIMITED LIABILITY
COMPANY AGREEMENT

of

Direct Digital Holdings, LLC

 

This SECOND AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT (the “Agreement”) of Direct Digital Holdings, LLC, a Texas limited liability company
(the “Company”), dated as of February 15, 2022, by and among the Company, Direct Digital Holdings, Inc.,
a Delaware corporation (“PubCo”), and each of the Members listed on the signature pages hereto, and is made effective
as of the Effective Time. Capitalized terms used herein without definition shall have the meanings assigned to such terms in Appendix
A.

 

RECITALS

 

WHEREAS, the Company was
formed as a Texas limited liability company on March 13, 2018 (the “Formation Date”), under and pursuant to the
TBOC and the issuance of a certificate of formation for the Company by the Secretary of State of Texas effective March 13, 2018
bearing filing number 802960795;

 

WHEREAS, the Company has
been governed since September 30, 2020, by that certain Amended and Restated Limited Liability Company Agreement of the Company
(the “Original Agreement”);

 

WHEREAS, on January 17,
2022, the Board (as defined in the Original Agreement) of the Company approved an “Up-C IPO structure” pursuant to which
PubCo desires to effect a proposed underwritten initial public offering of shares of its Class A Common Stock (the “IPO”);

 

WHEREAS, pursuant to a Redemption
Agreement, dated as of November 14, 2021, by and between the Company and the USDM Investor (the “Redemption Agreement”),
all outstanding Preferred Units (as defined in the Original Agreement) were redeemed prior to the Effective Time;

 

WHEREAS, at the Effective
Time, all Common Units are, automatically without any further action on the part of the Company and the Members, reclassified and changed
into Class A Common Units paired with a corresponding number of Class B Voting Units as set forth herein, and shall cease to
exist as Common Units (the conversions described in this recital, together with the USDM Redemption, the “Recapitalization”);

 

WHEREAS, after the Effective
Time and prior to the effectiveness of PubCo’s initial public offering (the “Pre-IPO Effective Time”), the holders
of Class B Voting Units other than the USDM Investor will exchange all of their Class B Voting Units to PubCo for Class B
Common Stock (the exchanges described in this recital, the “Pre-IPO Exchanges,” and the agreements pursuant to which
the Pre-IPO Exchanges are effected, the “Exchange Agreements”);

 

WHEREAS, immediately following
the Pre-IPO Exchanges, PubCo shall contribute (the “Contribution”) the net proceeds received from the IPO to the Company
in exchange for Class A Common Units from the Company;

 

WHEREAS, PubCo, as holder
of all the Class B Voting Units following the USDM Investor redemption, designates itself as, and is hereby admitted to the Company
as, Managing Member, and in such capacity shall have the rights and obligations as provided in this Agreement, and

 

WHEREAS, following receipt
of the net proceeds from the IPO, the Company will, pursuant to the Redemption Agreement, redeem in full all remaining equity interests
in the Company held by the USDM Investor;

 

    	 		 

     

    

 

WHEREAS, PubCo, the USDM
Investor, and the Company shall treat the Contribution and the USDM IPO Redemption as a disguised sale of partnership interests for all
income tax purposes within the meaning of Section 707(a)(2)(B) of the Code to the extent of the IPO proceeds received by the
USDM Investor;

 

WHEREAS, the Company, PubCo,
and the Members desire to amend and restate the Original Agreement in its entirety as set forth herein effective as of the Effective
Time, at which time the Original Agreement will be superseded entirely by this Agreement, including the rights, preferences and obligations
in respect of their membership interests, in accordance with the terms hereof; and

 

WHEREAS, this Agreement shall
constitute a company agreement within the meaning of Section 101.001(1) of the TBOC.

 

NOW, THEREFORE, in consideration
of the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Members hereby agree to amend and restate the Original Agreement as follows:

 

Section 1

FORMATION, NAME, PURPOSE, MEMBERS, DEFINITIONS, ETC.

 

Section 1.1            General.

 

(a)          Formation.
The Members acknowledge that the Company was formed as a Texas limited liability company on the Formation Date, by the filing of the
Certificate with the Texas Secretary of State and the Members hereby ratify such filings and registration.

 

(b)          Further
Actions. The Managing Member shall cause the Company (or duly appointed officer or other authorized representative of the Company)
to execute, deliver and/or file such documents and/or take such other actions as may be necessary to maintain the Company’s status
as a limited liability company under the TBOC and as a “partnership” under the Code, and to carry out the business purposes
of the Company as set forth in Section 1.3, including, causing the Company to be (or become and remain) qualified, formed
or registered under assumed or fictitious name statutes, qualification to do business statutes and similar laws in any jurisdiction in
which the Company transacts business and executing, delivering and/or filing all certificates or other instruments (and any amendments
and restatements thereof) which may be required in connection therewith. The Members shall, at the request of the Managing Member, promptly
execute such documents and furnish such information as may be necessary to enable the Managing Member to perform, on behalf of the Company,
or to enable the Company to perform those actions contemplated under this Section 1.1(b).

 

(c)          Conflicts.
In the event of any conflict between the terms or provisions of this Agreement and the Certificate (as the same may be amended from time
to time) or between this Agreement and any of the terms or provisions of the TBOC (except any provisions of the TBOC which, by their
terms, may not be superseded by the terms of this Agreement), the terms or provisions of this Agreement shall control.

 

Section 1.2            Name;
Principal Office. The name of the Company is “Direct Digital Holdings, LLC.” The principal office of the Company
shall be located at any place as the Managing Member may designate by written notice to the Members from time to time.

 

Section 1.3            Purposes.
The purpose and business of the Company shall be engaging in any lawful act or activity for which limited liability companies may be
formed under the TBOC.

 

    	 	-2-	 

     

    

 

Notwithstanding anything
herein to the contrary, nothing set forth herein shall be construed as authorizing the Company to possess any purpose or power, or to
do any act or thing, forbidden by law to a limited liability company organized under the laws of the State of Texas. Subject to the TBOC
and the provisions of this Agreement the Company may, with the approval of the Managing Member, enter into and perform under any and
all documents, agreements and instruments, all without any further act, vote or approval of any Member.

 

Section 1.4            Registered
Agent; Registered Office. The Company’s registered agent and registered office in the State of Texas are specified in the
Certificate. The Managing Member, on behalf of the Company, may change the registered office and/or the registered agent of the Company
(in any state or other jurisdiction where appointment of a registered agent is required) from time to time.

 

Section 1.5            Commencement
and Term. The term of the Company commenced on the filing of its Certificate and shall thereafter continue in perpetuity unless
sooner dissolved, liquidated and terminated as provided in Section 9 hereof.

 

Section 1.6            Income
Tax Classification. The Company is classified as a “partnership” for federal income tax purposes. The Members acknowledge
and agree that it is not the purpose or intent of the Members to cause the Company to be treated (or elect to be treated) for federal
income tax purposes as an association taxable as a corporation.

 

Section 1.7            Members.
The names and addresses of the Members and their respective Units are listed on Schedule 1.7 attached hereto. Except as otherwise
permitted by, and subject to the terms of, this Agreement, including Section 2 and Section 8 hereof, additional
or substitute “members” of the Company may be admitted only in relation to an issuance of Membership Interests as permitted
by and made pursuant to Section 2 hereof or a Transfer of Membership Interests as permitted by and made pursuant to Section 8
hereof. The Managing Member shall cause Schedule 1.7 attached hereto to be amended from time to time to reflect any sale
or other disposition by a Member of all or any portion of such Member’s Units or the admission of any additional or substitute
 “members” of the Company in accordance with the express terms hereof, or, otherwise, to reflect any change in the information
of any Member set forth therein (to the extent known or made known to the Managing Member).

 

Section 1.8            Definitions.
Words and phrases capitalized throughout this Agreement, but which are not otherwise defined herein (or in the Recitals hereto or the
opening paragraph hereof), shall have the respective meanings ascribed thereto in Appendix A or Appendix B attached
hereto and made a part hereof.

 

Section 2

CAPITALIZATION AND MEMBERS

 

Section 2.1            Capitalization.

 

(a)           Each
Member shall hold Units, and the relative rights, powers, privileges, preferences and obligations with respect to each Member’s
Units shall be determined under this Agreement and the TBOC based upon the number and the class of Units held by such Member. The number
and the class of Units held by each Member shall be set forth on Schedule 1.7. The classes of Units as of the Effective Time are
as follows: “Class A Common Units” and “Class B Voting Units.” The Members shall have no right to vote
on any matter, except as specifically set forth in this Agreement, or as may be required under the TBOC. Any such vote shall be at a
meeting of the Members entitled to vote or in writing as provided herein.

 

    	 	-3-	 

     

    

 

(i)            Class A
Common Units. The Class A Common Units shall have all the rights, powers, privileges and obligations as are specifically provided
for in this Agreement for Class A Common Units, and as may otherwise be generally applicable to all classes of Units, unless such
application is specifically limited to one or more other classes of Units. Notwithstanding anything to the contrary contained herein,
the holders of Class A Common Units shall not be entitled to vote on any matter subject to a vote of the Members, except as otherwise
required by law and on any such matter the holders of Class A Common Units shall be entitled to one (1) vote per Class A
Common Unit.

 

(ii)            Class B
Voting Units. The holders of Class B Voting Units shall be entitled to one (1) vote per Class B Voting Unit with respect
to any designation of the Managing Member pursuant to Section 5.1 or designation of an additional Managing Member or substitute
Managing Member pursuant to Section 5.3, and shall not be entitled to any other rights, powers, privileges or obligations
under this Agreement.

 

(b)           On
the date hereof and in connection with the IPO, the following shall have occurred or will occur:

 

(i)             Prior
to the Effective Time, the USDM Redemption was consummated.

 

(ii)            At
the Effective Time, the Recapitalization is hereby consummated.

 

(iii)           Immediately
after the Effective Time, the Pre-IPO Exchanges shall be consummated.

 

(iv)          The
Members agree that immediately following the Effective Time, no fractional Class A Common Unit will remain outstanding and any fractional
Class A Common Unit held by a Member shall be rounded up to the nearest whole number.

 

(c)          Subject
to the terms of this Agreement (including this Section 2.1 and Section 2.2), the Managing Member in its sole
discretion may establish and issue, from time to time in accordance with such procedures as the Managing Member shall determine from
time to time, additional Units, in one or more classes or series of Units, or other Company securities, at such price, and with such
designations, preferences and relative, participating, optional or other special rights, powers and duties (which may be senior to existing
Units, classes and series of Units or other Company securities), as shall be determined by the Managing Member without the approval of
any Member or any other Person who may acquire an interest in any of the Units, including (i) the right of such Units to share in
Profits and Losses or items thereof; (ii) the right of such Units to share in Company distributions; (iii) the rights of such
Units upon dissolution and winding up of the Company; (iv) whether, and the terms and conditions upon which, the Company may or
shall be required to redeem such Units (including sinking fund provisions); (v) whether such Units are issued with the privilege
of conversion or exchange and, if so, the terms and conditions of such conversion or exchange; (vi) the terms and conditions upon
which such Units will be issued, evidenced by certificates and assigned or transferred; (vii) the terms and conditions of the issuance
of such Units (including, without limitation, the amount and form of consideration, if any, to be received by the Company in respect
thereof, the Managing Member being expressly authorized, in its sole discretion, to cause the Company to issue such Units for less than
fair market value); and (viii) the right, if any, of the holder of such Units to vote on Company matters, including matters relating
to the relative designations, preferences, rights, powers and duties of such Units. Notwithstanding any other provision of this Agreement,
the Managing Member in its sole discretion, without the approval of any Member or any other Person, is authorized (i) to issue Units
or other Company securities of any newly established class or any existing class to Members or other Persons who may acquire an interest
in the Company; (ii) to amend this

 

    	 	-4-	 

     

    

 

Agreement to reflect the creation of any such new class, the issuance of Units or other Company
securities of such class, and the admission of any Person as a Member which has received Units or other Company securities; and (iii) to
effect the combination, subdivision and/or reclassification of outstanding Units as may be necessary or appropriate to give economic
effect to equity investments in the Company by the Managing Member that are not accompanied by the issuance by the Company to the Managing
Member of additional Units and to update the books and records of the Company accordingly. Except as expressly provided in this Agreement
to the contrary, any reference to “Units” shall include the Class A Common Units, Class B Voting Units,
and Units of any other class or series that may be established in accordance with this Agreement. All Units of a particular class shall
have identical rights in all respects as all other Units of such class, except in each case as otherwise specified in this Agreement.

 

(d)          No
Unit in the Company shall be represented by a separate certificate. All Units will be “uncertificated” pursuant to Article 8
of the Uniform Commercial Code, and no Member shall be entitled to a hold a “certificated security” pursuant to Article 8
of the Uniform Commercial Code unless consented to by the Board and any lender to the Company who has similarly reserved consent rights
has consented to such certificate. To the extent that any Units are certificated after the date hereof and in accordance with the terms
hereof, each certificate evidencing Units and each certificate issued in exchange for or upon the Transfer of any Units (if such securities
remain Units as defined herein after such Transfer) shall be stamped or otherwise imprinted with a legend in substantially as set forth
in Section 7.

 

(e)          To
the extent information is required to be disclosed to any Member pursuant to this Agreement or the TBOC, each Member acknowledges and
agrees that portions of this Agreement may be redacted by the Managing Member or information herein may otherwise be aggregated by the
Managing Member to prevent disclosure of confidential information with respect to individual allocations of employee Equity Interests.

 

(f)           Each
Member who is issued Units by the Company pursuant to the authority of the Managing Member pursuant to Section 5.1 shall
make the Capital Contributions to the Company determined by the Managing Member pursuant to the authority of the Managing Member pursuant
to Section 5.1 in exchange for such Units.

 

(g)          Each
Member, to the extent having the right to consent thereto, by executing this Agreement, hereby confirms, ratifies and approves the transactions
contemplated by this Agreement and the other agreements and transactions referred to herein.

 

Section 2.2            Provisions
with Respect to Units.

 

(a)           New
PubCo Issuances.

 

(i)            Subject
to Section 8.6 and Section 2.2(a)(ii), if, at any time after the Effective Time, PubCo issues shares of its Class A
Common Stock or any other Equity Interest of PubCo (other than shares of Class B Common Stock), (x) the Company shall concurrently
issue to PubCo an equal number of Class A Common Units (if PubCo issues shares of Class A Common Stock), or an equal number
of such other Equity Interest of the Company corresponding to the Equity Interests issued by PubCo (if PubCo issues Equity Interests
other than Class A Common Stock), and with the same rights to distributions (including distributions upon liquidation) and other
economic rights as those of such Equity Interests of PubCo so issued and (y) PubCo shall concurrently contribute to the Company
the net proceeds or other property received by PubCo, if any, for such share of Class A Common Stock or other Equity Interest.

 

    	 	-5-	 

     

    

 

 

(ii)          Notwithstanding
anything to the contrary contained in Section 2.2(a)(i) or Section 2.2(a)(iii), this Section 2.2(a) shall
not apply to (x) the issuance and distribution to holders of shares of PubCo Equity Interests of rights to purchase Equity Interests
of PubCo under a “poison pill” or similar shareholder rights plan (and upon exchange of Class A Common Units for Class A
Common Stock, such Class A Common Stock shall be issued together with a corresponding right under such plan) or (y) the issuance
under PubCo’s employee benefit plans of any warrants, options, stock appreciation right, restricted stock, restricted stock units,
performance based award or other rights to acquire Equity Interests of PubCo or rights or property that may be converted into or settled
in Equity Interests of PubCo, but shall in each of the foregoing cases apply to the issuance of Equity Interests of PubCo in connection
with the exercise or settlement of such warrants, options, stock appreciation right, restricted stock units, performance based awards
or the vesting of restricted stock (including as set forth in clause (iii) below, as applicable).

 

(iii)          In
the event any outstanding Equity Interest of PubCo is exercised or otherwise converted and, as a result, any shares of Class A Common
Stock or other Equity Interests of PubCo are issued, (x) the corresponding Equity Interest outstanding at the Company, if any, shall
be similarly exercised or otherwise converted, if applicable, (y) an equivalent number of Class A Common Units or equivalent
Equity Interests of the Company shall be issued to PubCo as required by the first sentence of Section 2.2(a)(i), and (z) PubCo
shall as soon as practicable following such exercise or conversion contribute to the Company the net proceeds received by PubCo from
any such exercise or conversion.

 

(b)          New
Company Issuances; Additional Members.

 

(i)            Except
pursuant to Section 8.6, (x) the Company may not issue any additional Class A Common Units to PubCo or any of its
Subsidiaries (other than the Company and its Subsidiaries) unless (i) substantially simultaneously therewith PubCo or such Subsidiary
issues or transfers an equal number of newly-issued shares of Class A Common Stock (or relevant Equity Interest of such Subsidiary)
to another Person or Persons, and (ii) such issuance is in accordance with Section 2.2(a), and (y) the Company
may not issue any other Equity Interests of the Company to PubCo or any of its Subsidiaries (other than the Company and its Subsidiaries)
unless (i) substantially simultaneously therewith PubCo or such Subsidiary issues or transfers, to another Person, an equal number
of newly-issued shares of Equity Interests of PubCo or such Subsidiary with substantially the same rights to dividends and distributions
(including distributions upon liquidation) and other economic rights as those of such Equity Interests of the Company, and (ii) such
issuance is in accordance with Section 2.2(a)

 

(ii)          Subject
to the provisions of Section 8 hereof, a Person may be admitted to the Company as an additional Member only upon furnishing
to the Company (x) counterparts of this Agreement or an executed joinder to this Agreement in a form acceptable to the Managing
Member and (y) such other documents or instruments as may be necessary or appropriate to effect such Person’s admission as
a Member (including entering into such documents as the Managing Member may deem appropriate); provided, however, that
PubCo, upon acquiring Units pursuant to the Exchange Agreements, shall, automatically without any further action on the part of the Company
or PubCo, be admitted to the Company as an additional Member. Such admission shall become effective on the date on which the Managing
Member determines that such conditions have been satisfied and when any such admission is shown on the books and records of the Company.

 

(c)            Repurchases
and Redemptions.

 

    -6- 

     

    

 

(i)            Subject
to Section 2.2(c)(ii), PubCo or any of its Subsidiaries (other than the Company and its Subsidiaries) may redeem, repurchase
or otherwise acquire (A) shares of Class A Common Stock pursuant to a Board approved repurchase plan or program (or otherwise
in connection with a transaction approved by the Board) and, substantially simultaneously therewith, the Company shall redeem, repurchase
or otherwise acquire from PubCo or such Subsidiary an equal number of Class A Common Units for the same price per security, if any,
or (B) any other Equity Interests of PubCo or any of its Subsidiaries (other than the Company and its Subsidiaries) pursuant to
a Board approved repurchase plan or program (or otherwise in connection with a transaction approved by the Board) and, substantially
simultaneously therewith, the Company shall redeem, repurchase or otherwise acquire from PubCo or such Subsidiary an equal number of
the corresponding class or series of Equity Interests of the Company with the same rights to dividends and distributions (including distributions
upon liquidation) and other economic rights as those of such Equity Interests of PubCo or such Subsidiary for the same price per security,
if any.

 

(ii)          In
the event that a tender offer, share exchange offer, or take-over bid or similar transaction with respect to Class A Common Stock,
if any (a “PubCo Offer”), is proposed by PubCo or is proposed to PubCo or its stockholders, the holders of Class A
Common Units shall be permitted to participate in such PubCo Offer by delivery of an Exchange Notice (which Exchange Notice shall be
effective immediately prior to the consummation of such PubCo Offer (and, for the avoidance of doubt, shall be contingent upon such PubCo
Offer and not be effective if such PubCo Offer is not consummated)). In the case of a PubCo Offer proposed by PubCo, PubCo shall use
its reasonable best efforts to take all such actions and do all such things as are necessary or desirable to enable and permit the holders
of Class A Common Units to participate in such PubCo Offer to the same extent or on an economically equivalent basis as the holders
of shares of Class A Common Stock without discrimination; provided that, without limiting the generality of this sentence
(and without limiting the ability of any Member holding Class A Common Units to consummate an Exchange at any time pursuant to the
terms of this Agreement), the Managing Member shall use its reasonable best efforts to ensure that such holders of Class A Common
Units may participate in such PubCo Offer without being required to Exchange their Class A Common Units and cancel their shares
of Paired Voting Stock, as the case may be, (or, if so required, to ensure that any such Exchange and cancelation shall be effective
only upon, and shall be conditional upon, the closing of the transactions contemplated by the PubCo Offer). For the avoidance of doubt,
in no event shall the holders of Class A Common Units be entitled to receive in such PubCo Offer aggregate consideration for each
Class A Common Unit and share of Paired Voting Stock, taken together, that is greater than or less than the consideration payable
in respect of each share of Class A Common Stock in connection with such PubCo Offer (it being understood that payments under or
in respect of the Tax Receivable Agreement shall not be considered part of any such consideration).

 

(iii)          The
Company may not redeem, repurchase or otherwise acquire (x) any Class A Common Units from PubCo or any of its Subsidiaries
(other than the Company and its Subsidiaries) unless substantially simultaneously PubCo or such Subsidiary redeems, repurchases or otherwise
acquires pursuant to a Board approved repurchase plan or program (or otherwise in connection with a transaction approved by the Board)
an equal number of shares of Class A Common Stock for the same price per security from holders thereof or (y) any other Equity
Interests of the Company from PubCo or any of its Subsidiaries (other than the Company and its Subsidiaries) unless substantially simultaneously
PubCo or such Subsidiary redeems, repurchases or otherwise acquires pursuant to a Board approved repurchase plan or program (or otherwise
in connection with a transaction approved by the Board) for the same price per security an equal number of Equity Interests of PubCo
(or such Subsidiary) of a corresponding class or series with substantially the same rights to dividends and distributions (including
distributions upon 

 

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liquidation) and other economic rights as those of such Equity Interests of PubCo or such Subsidiary.

 

(iv)          Notwithstanding
the foregoing clauses (i) through (iii), to the extent that any consideration payable by PubCo in connection with the redemption,
repurchase or acquisition of any shares of Class A Common Stock or other Equity Interests of PubCo or any of its Subsidiaries (other
than the Company and its Subsidiaries) consists (in whole or in part) of shares of Class A Common Stock or such other Equity Interests
(including in connection with the cashless exercise of an option or warrant (or other convertible right or security)) other than under
PubCo’s employee benefit plans for which there is no corresponding Class A Common Units or other Equity Interests of the Company,
then the redemption, repurchase or acquisition of the corresponding Class A Common Units or other Equity Interests of the Company
shall be effectuated in an equivalent manner.

 

(d)           Equity
Subdivisions and Combinations.

 

(i)            The
Company shall not in any manner effect any subdivision (by any equity split, equity distribution, reclassification, recapitalization
or otherwise) or combination (by reverse equity split, reclassification, recapitalization or otherwise) of the outstanding Class A
Common Units unless accompanied by an identical subdivision or combination, as applicable, of the outstanding PubCo Class A Common
Stock and Paired Voting Stock or other related class or series of Equity Interest of PubCo, with corresponding changes made with respect
to any other exchangeable or convertible Equity Interests of the Company and PubCo.

 

(ii)          Except
in accordance with Section 8.6(c), PubCo shall not in any manner effect any subdivision (by any equity split, equity distribution,
reclassification, recapitalization or otherwise) or combination (by reverse equity split, reclassification, recapitalization or otherwise)
of the outstanding PubCo Class A Common Stock or any other class or series of Equity Interest of PubCo, unless accompanied by an
identical subdivision or combination, as applicable, of the outstanding Class A Common Units or other related class or series of
Equity Interest of the Company, with corresponding changes made with respect to any applicable exchangeable or convertible Equity Interests
of the Company and PubCo.

 

(e)          General
Authority. For the avoidance of doubt, but subject to Sections 2.1 and 2.2, the Company and PubCo (including in its
capacity as the Managing Member of the Company) shall be permitted to undertake all actions, including an issuance, redemption, reclassification,
distribution, division or recapitalization, with respect to the Class A Common Units, that are necessary, in the Managing Member’s
determination, to maintain at all times a one-to-one ratio between (i) the number of Class A Common Units owned by PubCo, directly
or indirectly, and the number of outstanding shares of Class A Common Stock, and (ii) the number of outstanding shares of applicable
Paired Voting Stock held by any Person and the number of Class A Common Units held by such Person disregarding, for purposes of
maintaining the one-to-one ratios in clauses (i) and (ii), (A) options, rights or securities of PubCo issued under any plan
involving the issuance of any Equity Interests that are convertible into or exercisable or exchangeable for Class A Common Stock,
(B) treasury stock, or (C) preferred stock or other debt or equity securities (including warrants, options or rights) issued
by PubCo, that are convertible into or exercisable or exchangeable for Class A Common Stock (but in each case prior to such conversion
or exchange).

 

Section 2.3           Additional
Capital Contributions. No Member shall be required to make any additional Capital Contribution to the Company without the consent
of such Member. No Member shall have the right to make any additional Capital Contribution to the Company except as expressly provided
herein.

 

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Section 2.4           Member
Loans. Loans by Unitholders to the Company shall not be considered Capital Contributions. The amount of any such loans shall
be a debt of the Company to such Unitholder and shall be payable or collectible in accordance with the terms and conditions upon which
such loans are made.

 

Section 2.5           Maintenance
of Capital Accounts/Reports; Withdrawal of Capital; No Interest.

 

(a)          Capital
Accounts. An individual Capital Account shall be determined and maintained by the Company for each Member as provided in Section I
of Appendix B attached hereto. Upon the sale, exchange or assignment of all or a portion of an interest in the Company, the
Capital Account of the transferor, or the portion thereof that is attributable to the transferred interest, if the transferor disposed
of less than the transferor’s entire interest in the Company, shall be carried over to the transferee.

 

(b)          No
Right to Withdraw Capital/No Right to Interest. Except as otherwise provided in Section 3 and Section 8 hereof,
no Member shall be entitled to withdraw all or any portion of such Member’s Capital Contributions or the balance in such Member’s
Capital Account, in money or other property, prior to dissolution of the Company, and then only in accordance with the provisions of
the TBOC and Section 9.3 hereof. Neither the Board, nor any Member shall be personally liable for the payment or return of
any portion of any Member’s Capital Contributions. No interest will be paid on account of any Capital Contributions (or on the
credit balance in any Member’s Capital Account). No Member shall have the right to receive or demand property other than cash in
return for such Member’s Capital Contributions, and no Member shall have priority over any other Member, either as to the return
of such Member’s Capital Contributions or as to distributions, except to the extent otherwise expressly specified in this Agreement.

 

Section 2.6           Representations
and Warranties of Members. By execution and delivery of this Agreement or a joinder hereto, as applicable, each of the Members
(other than PubCo) represents and warrants to the Company and acknowledges that:

 

(a)          Such
Member has been advised that Units have not been registered under the Securities Act or the securities laws of any other jurisdiction,
are issued in reliance upon federal and state exemptions for transactions not involving a public offering and cannot be disposed of unless
(i) they are subsequently registered or exempted from registration under the Securities Act and (ii) the provisions of this
Agreement have been complied with;

 

(b)          Such
Member is an “accredited investor” within the meaning of Rule 501 promulgated under the Securities Act, as amended by
Section 413(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act;

 

(c)          Such
Member’s Units are being acquired for its own account solely for investment and not with a view to resale or distribution thereof;

 

(d)          Such
Member has conducted its own independent review and analysis of the business, operations, assets, liabilities, results of operations,
financial condition and prospects of the Company and the Company’s subsidiaries and such Member acknowledges that it has been provided
adequate access to the personnel, properties, premises and records of the Company and the Company’s subsidiaries for such purpose;

 

(e)          The
determination of such Member to acquire Units has been made by such Member independent of any other Member and independent of any statements
or opinions as to the advisability of such purchase or as to the business, operations, assets, liabilities, results of operations, 

 

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financial
condition and prospects of the Company and the Company’s subsidiaries that may have been made or given by any other Member or by
any agent or employee of any other Member;

 

(f)          Such
Member has such knowledge and experience in financial and business matters and is capable of evaluating the merits and risks of an investment
in the Company and making an informed decision with respect thereto;

 

(g)          Such
Member is able to bear the economic and financial risk of an investment in the Company for an indefinite period of time;

 

(h)          The
execution, delivery and performance of this Agreement have been duly authorized by such Member and do not require such Member to obtain
any consent or approval that has not been obtained and do not contravene or result in a default in any material respect under any provision
of any law or regulation applicable to such Member or other governing documents or any agreement or instrument to which such Member is
a party or by which such Member is bound;

 

(i)           This
Agreement is valid, binding and enforceable against such Member in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium, and other similar laws of general applicability relating to or affecting creditors’ rights
or general equity principles (regardless of whether considered at law or in equity); and

 

(j)           Neither
the issuance of any Units to any Member nor any provision contained herein will entitle the Member to remain in the employment of the
Company or any of its subsidiaries or affect the right of the Company or any of its subsidiaries to terminate the Member’s employment
at any time for any reason, other than as otherwise provided in such Member’s employment agreement or other similar agreement with
the Company or any of its subsidiaries, if applicable.

 

Section 3

NON-LIQUIDATING DISTRIBUTIONS

 

Section 3.1            Available
Cash. Prior to the Company’s dissolution in accordance with Section 9.1 hereof, subject to the following provisions
of this Section 3 and any restrictions on distributions to the Members otherwise specified in this Agreement, the Managing
Member may from time to time cause the Company to distribute its Available Cash (after having first made any Tax Distributions permitted
to be made under Section 3.2(d) for the current and all prior Taxable Years), if any, from time to time in such amounts
as the Managing Member may determine, to the holders of Common Units (ratably among such holders based upon the number of Common Units
held by each such holder immediately prior to such distribution).

 

Section 3.2           Withholding/Deemed
Loans to Members.

 

(a)          Tax
Withholding; Treatment. If the Company is required (as determined in good faith by the Managing Member) to make a payment (a “Tax
Payment”) with respect to any Member to discharge any legal obligation of the Company (or the Managing Member) to make payments
to any governmental authority with respect to any federal, foreign, state or local tax liability of such Member arising from such Member’s
ownership or disposition of a Membership Interest, then, notwithstanding any other provision of this Agreement to the contrary, the amount
of such Tax Payment shall be treated as: (i) a distribution to such Member (and the payment by such Member of the tax to which such
payment relates), which shall offset, in whole or part, the first distribution(s), if any, otherwise to be made by the Company to such
Member as of the date thereof pursuant to Section 3.1 or Section 9.3 hereof, or (ii) to the extent such
Tax Payment exceeds the distribution(s) otherwise then to be made to such Member (or if no

 

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distribution is then to be made to such
Member), a loan by the Company to such Member, which loan shall bear interest at the Prime Rate (as determined as of the date such Tax
Payment is made) and be payable upon demand by the Managing Member or, in the discretion of the Managing Member, by set off against the
first distribution (or distributions) thereafter to be made by the Company to such Member, whether under Section 3.1 or Section 9.3
hereof.

 

(b)          Right
of Holdback. The Managing Member shall be entitled to hold back any distribution (including Company property to be distributed in-kind)
otherwise payable by the Company to any Member if and to the extent the Managing Member believes, in good faith, that a Tax Payment is
or will be required with respect to such Member in the future and the Managing Member believes that there will not be sufficient subsequent
distributions to such Member to make such Tax Payment.

 

(c)          Special
Allocations of Gain or Loss from Sale of Retained Property. If applicable, in the event Company property, or a portion thereof, to
be distributed in-kind to any Member is retained by the Company to make a Tax Payment for such Member, then such property, or applicable
portion thereof, shall be deemed for purposes hereof to have been distributed to such Member as of the date such distribution in-kind
was otherwise to be have been made and all gain or loss, as determined for federal income tax purposes, from the Company’s sale
of such property to fund such Tax Payment, shall be allocated, in full, to such Member.

 

(d)          Tax
Distributions. Notwithstanding the foregoing to the contrary, subject to the other limitations set forth herein, to the extent of
the Company’s Available Cash, the Managing Member shall cause tax distributions (“Tax Distributions”) for any
Taxable Year to be made to the Members during any such year, on a quarterly basis, as of the end of each calendar quarter, in an amount
equal to the product of (i) the Assumed Tax Rate and (ii) the Company’s net taxable income for such Taxable Year through
the end of each such calendar quarter, taking into account losses of the Company from prior calendar quarters to the extent such losses
did not previously offset net taxable income for purposes of calculating a Tax Distribution, and taking into account the aggregate prior
Tax Distributions, if any, made to the Members under this section for such year; provided, however, that the Managing Member
may make adjustments in its reasonable discretion to reflect transactions occurring during the Taxable Year. Tax Distributions shall
be apportioned among and distributed to the Members in the same proportion as the aggregate amounts of net taxable income of the Company
for such Taxable Year are allocated to the Members hereunder taking into account the adjustments set forth above. For the avoidance of
doubt, for purposes of computing Tax Distributions, salaries, bonuses, and any other payments in the nature of compensation (including
guaranteed payments for services) shall not be taken into account as allocable income. Any amounts distributed pursuant to this Section 3.2(d) as
Tax Distributions shall be treated as an advance of the subsequent distributions otherwise distributable to a Member pursuant to Section 3.1
or Section 9.3(c) (as applicable), and such subsequent distribution amounts pursuant to Section 3.1
or Section 9.3(c) (as applicable) shall be reduced by the amount distributed as a Tax Distribution to such Member pursuant
to this Section 3.2(d). No Tax Distributions shall be made under this Section 3.2(d) with respect to the
taxable year in which the Company liquidates or in which a Sale of the Company occurs (other than Tax Distributions made prior to the
date of the actual Sale of the Company).

 

Section 3.3            Limitations
on Distributions/Liability for Repayment.

 

(a)          Statutory
Restrictions. The Company shall not make any distributions (as such term is defined in TBOC Section 101.206, and other than
in accordance with Chapter 11 of the TBOC) to any of the Members if, immediately following such distribution, the Company would not otherwise
have sufficient remaining properties (based on the fair value of its remaining properties) to pay its then total outstanding liabilities,
other than liabilities to its Members on account of their Membership Interests in the Company and liabilities of the Company for which
the recourse of the applicable Company creditor(s) is 

 

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or are limited to specified Company property. (For purposes of applying the
preceding sentence, the fair value of any Company property that is subject to a liability for which the recourse of an applicable Company
creditor is limited, shall be included in the assets of the Company only to the extent that the fair value of such property exceeds that
liability.)

 

(b)          Member
Repayment Obligations. Any Member that receives a distribution made in violation of the terms of Section 3.3(a) above
and Section 101.206 of the TBOC, and who knew at the time of such distribution that such distribution was made in violation thereof,
shall be liable to the Company for the amount of such distribution; provided, that, unless otherwise agreed (or unless otherwise
provided by the TBOC), such Member shall have no liability to the Company for such distribution after the expiration of one (1) year
from the date thereof (or such longer or shorter period as may hereafter be required by the TBOC) unless an action to recover such distribution
from such Member is or was commenced prior to the expiration of said one year (or other applicable) period and an adjudication of liability
against such Member is made in said action.

 

Section 3.4            Determination
of Available Cash. In determining the amount of Available Cash, the Managing Member shall make a determination, as a prudent
business person, of the amount of cash reserves reasonably necessary or appropriate to be established and/or maintained by the Company
in furtherance of its authorized business purposes, both considering current and future or anticipated operating needs, and the amount
of such Available Cash shall be approved and made a part of the Company’s budget pursuant to Section 10.6.

 

Section 4

ALLOCATIONS OF PROFITS AND LOSSES

 

Section 4.1           General
Allocation of Profits or Losses. Subject to Appendix B attached hereto, Profits or Losses of the Company for
each Allocation Period commencing on or after the Effective Date hereof, shall be allocated as follows:

 

(a)          General.
Except as otherwise provided in this Agreement, Profits and Losses, and to the extent necessary, any items thereof, for any Allocation
Period shall be allocated among the Members in such a manner that, as of the end of such Allocation Period, the sum of (i) the Capital
Account of each Member, (ii) such Member’s share of Company Minimum Gain (as determined according to Regulations § 1.704-2(g))
and (iii) such Member’s allocation of Member Nonrecourse Debt Minimum Gain (as determined according to Regulations §
1.704-2(i)(3)) shall be equal to the respective net amounts, positive or negative, which would be distributed to them or for which they
would be liable to the Company under this Agreement, determined as if the Company were to (A) liquidate the assets of the Company
for an amount equal to their Book Value and (B) distribute the proceeds of liquidation pursuant to Section 9.3(c) hereof
(treating unvested Units as vested solely for this purpose). If the Managing Member determines that it is necessary and permissible (under
the Code and applicable regulations and rulings) to allocate items of gross income and gain separate from items of deduction or loss
to achieve the target set forth in the first sentence of this Section 4.1(a), then the Managing Member shall make such allocations
to the extent required in such manner as it determines is reasonable.

 

(b)          Limitation
on Losses. The Losses allocated under Section 4.1(a) to any Member shall not exceed the maximum amount of Losses
that can be so allocated without causing or increasing an Adjusted Capital Account Deficit with respect to such Member. If some but not
all of the Members would have an Adjusted Capital Account Deficit as a consequence of an allocation of Losses pursuant to Section 4.1(a),
then the limitation set forth in this Section 4.1(b) shall be applied so as to allocate the maximum permissible Losses
to each Member under the preceding sentence and Regulations § 1.704-1(b)(2)(ii)(d). In the event that the allocation of Losses to
any Member is prohibited under the first sentence

 

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of this Section 4.1(b), such Losses shall be allocated to the remaining
Members in proportion to their respective positive Adjusted Capital Account balances. With respect to each Allocation Period (including
Allocation Periods thereafter), Profits (or, to the extent necessary, gross income) shall be allocated to the Members up to the aggregate
of, and in proportion to, any Losses previously allocated to each Member in accordance with this Section 4.1(b) in the
reverse order in which such Losses were allocated.

 

Section 4.2          Allocations
of Certain Tax Items.

 

(a)         Code
 § 704(c). If any property, if applicable, contributed to the Company by any Member is subject to the provisions of Code §
704(c), the Members’ distributive shares of income, gain, loss and deductions, as computed for income tax purposes, with respect
to such property (and, to the extent permitted by the Regulations, with respect to other Company property), shall be determined in accordance
with Code § 704(c), utilizing such method of accounting as determined by the Managing Member.

 

(b)         Code
 § 704(c) Principles. In the event the Book Value of any Company asset is adjusted pursuant to Section I.D.(2) of
Appendix B, subsequent allocations of income, gain, loss, and deduction with respect to such asset shall take account of any variation
between the adjusted basis of such asset for federal income tax purposes and its Book Value utilizing such method of accounting as determined
by the Managing Member.

 

(c)         Other
Allocation Rules. With regard to PubCo’s acquisition of the Class A Common Units in conjunction with the IPO, Profits
or Losses shall be allocated to the Members of the Company so as to take into account the varying interests of the Members in the Company
using an “interim closing of the books” method in a manner that complies with the provisions of Section 706 of the Code
and the Treasury Regulations thereunder. If during any Taxable Year there is any other change in any Member’s Units in the Company,
the Managing Member shall allocate the Profits or Losses to the Members of the Company so as to take into account the varying interests
of the Members in the Company using any method that complies with the provisions of Section 706 of the Code and the Treasury Regulations
thereunder.

 

Section 4.3          Miscellaneous.

 

(a)         Earning
of Profits and Losses. For all purposes of this Agreement, including the determination of the allocable share of the Profits or Losses
(or items thereof) of a Member who acquires or disposes of a Membership Interest during any Taxable Year, Profits or Losses of the Company
(or items thereof) for any Taxable Year shall be allocated to the periods of such Taxable Year on the “interim closing of the books”
method of accounting unless otherwise agreed by the Managing Member (and, if applicable, a selling Member).

 

(b)         Consistent
Tax Reporting. Each Member agrees to report to the appropriate taxing authorities such Member’s share of Company Profits or
Losses (and, if different, share of the net taxable income or loss of the Company) consistent with this Section 4 and Appendix B
attached hereto.

 

Section 5

MANAGEMENT

 

Section 5.1         
Designation and Authority of Managing Member. The Managing Member shall be designated by the holders of
Class B Voting Units. Except for situations in which the approval of one or more of the Members is specifically required by the
express terms of this Agreement, and subject to the provisions of this Section 5, (i) all management powers
over the business and affairs of the Company shall be exclusively vested in the Managing Member, (ii) the Managing Member shall
conduct, direct and exercise full control over all activities of the Company, and (iii) the Managing Member shall have the sole

 

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power to bind or take any
action on behalf of the Company, or to exercise any rights and powers (including, without limitation, the rights and powers to take certain
actions, give or withhold certain consents or approvals, or make certain determinations, opinions, judgments or other decisions) granted
to the Company under this Agreement or any other agreement, instrument or other document to which the Company is a party. Without limiting
the generality of the foregoing, but subject to any situations in which the approval of the Members is specifically required by this
Agreement, (x) the Managing Member shall have discretion in determining whether to issue Equity Interests, the number of Equity
Interests to be issued at any particular time, the purchase price for any Equity Interests issued, and all other terms and conditions
governing the issuance of Equity Interests and (y) the Managing Member may enter into, approve, and consummate any Liquidity Event
or other extraordinary or business combination or divestiture transaction, and execute and deliver on behalf of the Company or the Members
any agreement, document and instrument in connection therewith (including amendments, if any, to this Agreement or adoptions of new constituent
documents) without the approval or consent of any Member. The Managing Member shall operate the Company and its Subsidiaries in accordance
in all material respects with an annual budget, business plan and financial forecasts for the Company and its Subsidiaries for each fiscal
year. The Managing Member shall be the “manager” of the Company for the purposes of the TBOC. The Managing Member is hereby
authorized to execute, deliver and file the certificate of formation of the Company and all other certificates (and any amendments and/or
restatements hereof) required or permitted by the TBOC to be filed in the Office of the Secretary of State of the State of Texas. The
Managing Member and Members hereby approve and ratify the filing of the following document with the Secretary of State of the State of
Texas: Amendment to the Certificate of formation of the Company by an authorized person, as may be designated by the Managing Member
from time to time. The Managing Member is hereby authorized to execute, deliver and file any other certificates (and any amendments and/or
restatements thereof) necessary for the Company to qualify to do business in a jurisdiction in which the Company may wish to conduct
business. Notwithstanding any other provision of this Agreement to the contrary, without the consent of any Member or other Person being
required, the Company is hereby authorized to execute, deliver and perform, and the Managing Member or any officer on behalf of the Company,
is hereby authorized to execute and deliver (a) the Exchange Agreements, (b) the Tax Receivable Agreement; (c) any other
document, certificate or contract relating to or contemplated by the Recapitalization; and (d) any amendment and any agreement,
document or other instrument contemplated thereby or related thereto. The Managing Member or any officer is hereby authorized to enter
into the documents described in the preceding sentence on behalf of the Company, but such authorization shall not be deemed a restriction
on the power of the Managing Member or any officer to enter into other documents on behalf of the Company

 

Section 5.2           Authority
of the Managing Member; Delegation of Authority.

 

(a)          Unless
otherwise provided in this Agreement, any decision, action, approval or consent required or permitted to be taken by the Managing Member
may be taken by the Managing Member through any Person or Persons to whom authority and duties have been delegated pursuant to Sections 5.2(b).
The Managing Member shall not cease to be a Managing Member of the Company as a result of the delegation of any duties hereunder. No
officer or agent of the Company, in its capacity as such, shall be considered a Managing Member of the Company by agreement, as a result
of the performance of its duties hereunder or otherwise.

 

(b)         The
Managing Member may, from time to time, delegate to one or more Persons, including any officer or director of the Company or PubCo (or
to PubCo’s compensation committee or its designees), or to any other Person, such authority and duties as the Managing Member may
deem advisable; provided that any such Person shall exercise such authority subject to the same duties and obligations to which
the Managing Member would have otherwise been subject pursuant to the terms of this Agreement.

 

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(c)          The
Managing Member may assign titles (including, without limitation, executive chairman, non-executive chairman, chief executive officer,
president, vice president, secretary, assistant secretary, treasurer or assistant treasurer) and delegate certain authority and duties
to such Persons. Any number of titles may be held by the same officer of the Company or other individual. The salaries or other compensation,
if any, of the officers and agents of the Company shall be fixed from time to time by the Managing Member. Any delegation pursuant to
this Section 5.2 may be revoked at any time by the Managing Member.

 

Section 5.3             Additional
or Substitute Managing Member. No Person may be admitted to the Company as an additional Managing Member or substitute Managing
Member without the prior approval of the majority of the holders of Class B Voting Units. A Managing Member will not be entitled
to resign as a Managing Member of the Company unless another Managing Member shall have been designated pursuant to Section 5.1
(and not have previously been removed or resigned). Any additional Managing Member or substitute Managing Member admitted as a Managing
Member of the Company pursuant to this Section 5.3 is hereby authorized to, and shall, continue the Company without dissolution.

 

Section 5.4             Fiduciary
Duties; Indemnification.

 

(a)            Fiduciary
Duties.

 

(i)           In
performing its duties, the Managing Member will be entitled to rely in good faith on the provisions of this Agreement and on information,
opinions, reports, or statements (including financial statements and information, opinions, reports or statements as to the value or
amount of the assets, liabilities, Profits or Losses of the Company or any facts pertinent to the existence and amount of assets from
which distributions to the Members might properly be paid), are furnished by one or more of the following Persons or groups: (A) one
or more officers or employees of the Company or its Subsidiaries; (B) any attorney, independent accountant, or other Person employed
or engaged by the Company or its Subsidiaries; or (C) any other Person who has been selected with reasonable care by or on behalf
of the Company or its Subsidiaries, in each case as to matters which such relying Person reasonably believes to be within any such other
Person’s or group’s professional competence. The preceding sentence shall in no way limit any Person’s right to rely
on information to the extent provided in Section 3.102 or Section 3.105 of the TBOC. The Managing Member will not be personally
liable under any judgment of a court, or in any other manner, for any debt, obligation, or liability of the Company, whether that liability
or obligation arises in contract, tort, or otherwise, solely by reason of being the Managing Member.

 

(ii)          The
Managing Member and officers of the Company, in the performance of their duties as such, will owe to the Company duties of loyalty and
due care of the type owed by the officers of a corporation to such corporation and its stockholders under the laws of the State of Texas.

 

(iii)          If
a Member is offered or presented or discovers a business, investment or acquisition opportunity of the type and character that is within
the scope of the Company and its Subsidiaries’ actual business within the geographic scope in which the Company and its Subsidiaries
then operates, then such Member shall offer the Company an opportunity to consummate such business opportunity on terms and conditions
reasonably satisfactory to the Company.

 

(b)           Indemnification.

 

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(i)            The
Company shall, to the fullest extent permitted by the TBOC, indemnify and defend each Person who was or is made a party or is threatened
to be made a party to or is involved in or participates as a witness with respect to any action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the Company), by reason of the fact that he or she, or a
Person of whom he or she is the legal representative, is or was the Managing Member or officer, or is or was serving at the request of
the Company as a director, officer, employee, fiduciary or agent of another limited liability company or of a corporation, partnership,
joint venture, trust or other enterprise (each a “Proceeding”), against all expenses (including reasonable attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such Person if such Person acted in good faith,
with reasonable care and in a manner such Person reasonably believed to be in or not opposed to the best interests of the Company and,
with respect to any criminal Proceeding, had no reasonable cause to believe such Person’s conduct was unlawful. The termination
of any 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 Person did not act in good faith and in a manner which such Person reasonably believed to be in or not
opposed to the best interests of the Company, or, with respect to any criminal Proceeding, that the Person had reasonable cause to believe
that his or her conduct was unlawful.

 

(ii)           The
Company shall, to the fullest extent permitted by the TBOC, indemnify and defend any Person who was or is a party or is threatened to
be made a party to any threatened, pending or completed action or suit by or in the right of the Company to procure a judgment in its
favor by reason of the fact that such Person, or a Person of whom he or she is the legal representative, is or was the Managing Member
or officer, or is or was serving at the request of the Company as a director, officer, employee, fiduciary or agent of another limited
liability company or of a corporation, partnership, joint venture, trust or other enterprise against expenses (including reasonable attorneys’
fees) actually and reasonably incurred by such Person in connection with the defense or settlement of such action or suit if such Person
acted in good faith, with reasonable care and in a manner such Person reasonably believed to be in or not opposed to the best interests
of the Company and except that no indemnification shall be made in respect of any claim, issue or matter as to which such Person shall
have been adjudged to be liable to the Company.

 

(iii)          The
rights to indemnification and the payment of expenses incurred in defending a Proceeding in advance of its final disposition conferred
in this Section 5.5(b), shall not be exclusive of any other right which any Person may have or hereafter acquire under any
statute, provision of this Agreement, any other agreement, as determined by the Managing Member.

 

(c)           Expenses.
Subject to the Company having sufficient Available Cash, expenses incurred by the Managing Member or officer described in Section 5.5(b)(i) or
Section 5.5(b)(ii) hereof in defending a Proceeding shall be paid by the Company in advance of such Proceeding’s
final disposition upon receipt of an undertaking by or on behalf of such Managing Member or officer to repay such amount if it shall
ultimately be determined that he or she is not entitled to be indemnified by the Company. Such expenses incurred by other employees and
agents may be so paid upon such terms and conditions, if any, as the Managing Member deems reasonably appropriate.

 

(d)          Employees
and Agents. Persons who are not covered by the foregoing provisions of this Section 5.5 and who are or were the Managing
Member, officer, employee or agent of the Company, or who are or were serving at the request of the Company, as an employee, officer
or agent of a Subsidiary of the Company, may be indemnified, retroactively or prospectively, to the extent authorized at any time or
from time to time by the Managing Member.

 

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(e)          Other
Terms; Contract Rights.

 

(i)          The
provisions of this Section 5.5 shall be deemed to be a contract right between the Company and the Managing Member or officer
who serves in any such capacity at any time while this Section 5.5 and the relevant provisions of the TBOC or other applicable
law are in effect, and any repeal or modification of this Section 5.5 or any such law shall not affect any then known (or
knowable) right of any such Person or any obligation of the Company with respect to any act, omission, state of facts or Proceeding occurring
prior to the time of such repeal or modification or otherwise then existing.

 

(ii)          Except
as provided in Section 5.5, the Company shall indemnify any such Person seeking indemnification in connection with a Proceeding
initiated by such Person only if such Proceeding was authorized by the Managing Member.

 

(iii)         If
the TBOC is amended after the Effective Date to authorize further or greater limitations on the liability or fiduciary duties of the
Managing Member or officers than that specified herein, then the limitations on liability or fiduciary duties of the Managing Member
or officers, as applicable, shall be expanded to the fullest extent permitted by the TBOC. If the TBOC is amended to authorize greater
indemnification of the Managing Member, officers or other Persons entitled to indemnification under the foregoing provisions of this
Section 5.5, then the Company’s indemnification obligations to such Person or Persons shall be expanded to the fullest
extent permitted by the TBOC.

 

(iv)         The
indemnification and other rights provided for in this Section 5.5 shall inure to the benefit of the heirs, executors and
administrators of any Person entitled to indemnification in accordance with the foregoing provisions of this Section 5.5.

 

(f)            D&O
Insurance. The Company shall purchase, at its expense, and at all times maintain, insurance to cover Losses covered by the foregoing
indemnification provisions and to otherwise cover Losses for any breach or alleged breach by the Managing Member, the officers of the
Company, if any, and any other Persons to whom the Managing Member has delegated its authority pursuant to Section 5.2 (individually,
a “Covered Person”) of such Covered Person’s duties in such amount and with commercially reasonable deductibles;
provided, that (i) all Covered Persons shall be treated equally under any such insurance policies and (ii) the failure
to obtain such insurance shall not affect the right to indemnification of any Covered Person under the indemnification provisions contained
herein, including the right to be reimbursed or advanced expenses or otherwise indemnified for Losses hereunder. If any Covered Person
recovers any amounts in respect of any Losses from any insurance coverage, then such Covered Person shall, to the extent that such recovery
is duplicative, reimburse the Company for any amounts previously paid to such Covered Person by the Company in respect of such Losses.

 

Section 5.5            Compensation/Reimbursement.

 

(a)           The
Managing Member shall not be entitled to any compensation for services rendered to the Company in its capacity as Managing Member.

 

(b)           The
Company shall pay, or cause to be paid, all costs, fees, operating expenses and other expenses of the Company (including the costs, fees
and expenses of attorneys, accountants or other professionals) incurred in pursuing and conducting, or otherwise related to, the activities
of the Company. The Company shall also, in the sole discretion of the Managing Member, bear and/or reimburse PubCo or the Managing Member
for (i) any costs, fees or expenses incurred by the Managing Member in connection with serving as the Managing Member, (ii) operating,
administrative and other similar costs incurred by the

 

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 Managing Member, to the extent the proceeds are used or will be used by the Managing
Member to pay expenses described in this clause (ii), and payments pursuant to any legal, tax, accounting and other professional fees
and expenses (but, for the avoidance of doubt, excluding any tax liabilities of the Managing Member), (iii) any judgments, settlements,
penalties, fines or other costs and expenses in respect of any claims against, or any litigation or proceedings involving, the Managing
Member, (iv) fees and expenses (other than any underwriters’ discounts and commissions that are economically recovered by
the Managing Member as a result of acquiring Company Units at a discount) related to any securities offering, investment or acquisition
transaction (whether or not successful) authorized by PubCo, as the managing member of the Managing Member, (v) other fees and expenses
in connection with the maintenance of the existence of the Managing Member, and (vi) all other expenses allocable to the Company
or otherwise incurred by PubCo or the Managing Member in connection with operating the Company’s business (including expenses allocated
to PubCo or the Managing Member by their Affiliates and expenses incurred by PubCo in its capacity as the Managing Member). To the extent
that the Managing Member determines in its sole discretion that such expenses are related to the business and affairs of PubCo or the
Managing Member that are conducted through the Company and/or its Subsidiaries (including expenses that relate to the business and affairs
of the Company and/or its Subsidiaries and that also relate to other activities of PubCo or the Managing Member), the Managing Member
may cause the Company to pay or bear all expenses of PubCo or the Managing Member, including, without limitation, compensation and meeting
costs of any board of directors or similar body of PubCo or the Managing Member, any salary, bonus, incentive compensation and other
amounts paid to any Person including Affiliates of PubCo or the Managing Member to perform services for the Company, litigation costs
and damages arising from litigation, accounting and legal costs and franchise taxes, except to the extent such franchise taxes are based
on or measured with respect to net income or profits; provided that the Company shall not pay or bear any income tax obligations
of PubCo or the Managing Member or any obligations of PubCo or the Managing Member under the Tax Receivable Agreement. To the extent
practicable, expenses incurred by PubCo or the Managing Member on behalf of or for the benefit of the Company shall be billed directly
to and paid by the Company and, if and to the extent any reimbursements to PubCo or the Managing Member or any of their Affiliates by
the Company pursuant to this Section 5.5(b) constitute gross income to such Person (as opposed to the repayment of advances
made by such Person on behalf of the Company), such amounts shall be treated as “guaranteed payments” within the meaning
of Section 707(c) of the Code and shall not be treated as distributions for purposes of computing the Members’ Capital
Account. Reimbursements pursuant to this Section 5.5(b) shall be in addition to any reimbursement to PubCo or the Managing
Member as a result of indemnification pursuant to Section 5.4(b).

 

Section 5.6             Officers.
The Managing Member may (but need not), from time to time, designate and appoint one or more persons as an officer of the Company. No
officer need be a resident of the State of Texas, a Member or the Managing Member. Any officers so designated shall have such authority
and perform such duties as the Managing Member may, from time to time, delegate to them. Any such delegation may be revoked at any time
by the Managing Member in its sole and absolute discretion. The Managing Member may assign titles to particular officers. Unless the
Managing Member otherwise decides, if the title is one commonly used for officers of a corporation formed under TBOC, the assignment
of such title shall constitute the delegation to such officer of the authority and duties that are normally associated with that office.
Any number of officers may be held by the same individual. The salaries or other compensation, if any, of the officer and agents of the
Company shall be fixed from time to time by the Managing Member.

 

Section 6

MEMBERs

 

Section 6.1           Member
Voting. A Member entitled to vote may vote either in person or by written proxy signed by the Member or by his, her or its duly
authorized attorney in fact. Persons present

 

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by telephone shall be deemed
to present “in person” for purposes hereof. At each meeting of the Members, each Member entitled to vote (or such Member’s
designated representative) may vote such Member’s Membership Percentage of Class B Voting Units with respect to any matter
to be considered at such meeting and which is subject to the vote, consent or approval of the Members. Except as may otherwise be provided
herein to the contrary, any matter subject to the consent, approval or direction of the Members hereunder or under the TBOC, shall require
the agreement or approval of the holders of a majority of the Class B Voting Units.

 

Section 6.2           Written
Consent to Action. Any action required or permitted to be taken by the Members (or by any Members), whether at a meeting or otherwise,
may be taken without a meeting, without prior notice and without a vote, if the action is evidenced by a written consent or other written
instrument dated and signed (whether or not in counterparts and whether or not through facsimile or email copies) by all of the Members.
All such written Member consent(s) shall be delivered to the Company at its principal office.

 

Section 6.3           Members
Lack of Authority. No Member (other than the Managing Member), in a Member’s capacity as such (other than in its capacity
as a Person delegated authority pursuant to Section 5.2), shall participate in or have any control over the management of
the Company’s business or transact any business for the Company; and no Member, in a Member’s capacity as a “member”
of the Company, shall have any power to sign for or bind the Company.

 

Section 6.4           No
Right of Partition. No Member shall have the right to seek or obtain partition by court decree or operation of law of any Company
property, or the right to own or use particular or individual assets of the Company.

 

Section 6.5           Limitation
of Liability. Except as provided in this Agreement or in the TBOC, the debts, obligations and liabilities of the Company, whether
arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company and no Member shall be
obligated personally for any such debts, obligations or liabilities solely by reason of being a member of the Company. Except as otherwise
provided in this Agreement or the TBOC, a Member’s liability (in its capacity as such) for Company obligations, liabilities and
Losses shall be limited to the Company’s assets; provided that a Member may be required to return to the Company any distribution
made to it pursuant to Section 3.3.

 

Section 7

UNREGISTERED SECURITIES

 

THE UNITS ISSUED BY THE COMPANY
HAVE NOT BEEN REGISTERED, QUALIFIED, APPROVED OR DISAPPROVED UNDER ANY FEDERAL, STATE OR FOREIGN SECURITIES LAWS AND HAVE BEEN SOLD OR
ISSUED IN BY THE COMPANY IN RELIANCE ON EXEMPTIONS FROM REGISTRATION AFFORDED BY APPLICABLE FEDERAL, STATE AND/OR FOREIGN SECURITIES
LAWS.

 

THE UNITS ISSUED BY THE COMPANY
MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR
SUCH UNITS UNDER APPLICABLE FEDERAL, STATE AND/OR FOREIGN SECURITIES LAWS, UNLESS SOLD OR OTHERWISE TRANSFERRED PURSUANT TO AN AVAILABLE
EXEMPTION FROM REGISTRATION AND, IF REQUESTED BY THE MANAGING MEMBER, THE TRANSFERRING MEMBER FIRST PROVIDES THE COMPANY WITH AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE MANAGING MEMBER TO SUCH EFFECT, WHICH OPINION SHALL BE AT THE COST AND EXPENSE OF THE
COMPANY.

 

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EACH MEMBER HEREBY REPRESENTS
AND WARRANTS TO THE COMPANY, THE MANAGING MEMBER AND EACH OTHER MEMBER THAT EACH SUCH MEMBER HAS ACQUIRED SUCH MEMBER’S UNITS FOR
INVESTMENT PURPOSES ONLY. IN ADDITION TO ANY OTHER CONDITIONS IMPOSED BY THIS AGREEMENT, EACH MEMBER ACKNOWLEDGES AND UNDERSTANDS THE
ABOVE RESTRICTIVE LEGENDS AND AGREES TO ACCEPT AND ABIDE BY THE ABOVE DESCRIBED RESTRICTIONS ON THE TRANSFERABILITY OF SUCH MEMBER’S
UNITS (AND RELATED MEMBERSHIP INTEREST).

 

The Company will imprint
such legend on certificates (if any) evidencing Units. The legend set forth above will be removed from the certificates (if any) evidencing
any units which cease to be Units in accordance with the definition thereof.

 

Section 8

TRANSFERS OF MEMBERSHIP INTERESTS

 

Section 8.1           Transfers
by Unitholders.

 

(a)          No
Unitholder shall Transfer, or offer to agree to Transfer, directly or indirectly, all or any part of any interest in such Unitholder’s
Units or other Equity Interests, except (i) any Transfer of Units (A) from a Continuing Member to another Continuing Member
or (B) Exchanges pursuant to and in accordance with Section 8.6 (each being an “Exempt Transfer”),
or (ii) (A) with the prior written consent of the Managing Member, and (B) then only in compliance with this Section 8.
Notwithstanding the foregoing, no party hereto shall avoid the provisions of this Agreement by making one or more Transfers to one or
more transferees permitted under clause (i)(A) above and then disposing of all or any portion of such party’s interest in
such transferee if such disposition would result in such transferee ceasing to be a permitted transferee. No Member may withdraw from
the Company pursuant to Section 101.205 of the TBOC and no Member may withdraw from the Company except as provided in and pursuant
to the terms of this Agreement.

 

(b)          Except
in connection with Exchanges pursuant to the Exchange Agreements, Transfers pursuant to Section 8.6 or any other Transfer
to the Company, each Transferee of Units shall, as a condition prior to such Transfer, execute and deliver to the Company a counterpart
or joinder to this Agreement pursuant to which such Transferee shall agree to be bound by the provisions of this Agreement and such Transferee
shall become a substituted Member on the effective date of such Transfer, which effective date shall not be earlier than the date of
compliance with the conditions to such Transfer, and such admission shall be shown on the books and records of the Company

 

(c)          Notwithstanding
anything to the contrary in this Section 8, no Unitholder shall make a Transfer of Units to a competitor of the Company or
any Subsidiary.

 

(d)          The
Members agree that the Managing Member and the Company shall not be required to recognize the interest or purported interest in the Company
of any Person who has obtained an interest or a purported interest in the Company, directly or indirectly, as a result of a Transfer
which is not authorized by this Agreement, and further agree that any such Transfer shall be null and void for all purposes (except to
the extent otherwise provided by law or in this Section 8). If there is a doubt as to the ownership of an interest in the
Company or who is entitled to a distribution of Available Cash or of other property, including liquidating proceeds, the Managing Member
(or liquidating trustee, if applicable), may accumulate the Available Cash or liquidation proceeds or other property attributable to
the interest(s) in question until the issue is resolved to the reasonable satisfaction of the Managing Member.

 

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(e)           Except
as otherwise expressly provided herein, it shall be a condition precedent to any Transfer of any Class A Common Unit held by a Member
other than PubCo that, concurrently with such Transfer such transferring Member shall also Transfer to the transferee the shares of Paired
Voting Stock corresponding to such Transferred Class A Common Units.

  

Section 8.2            Void
Transfers. Any Transfer by any Unitholder of any Units or other interest in the Company in contravention of this Agreement (including,
without limitation, the failure of the Transferee to execute a counterpart in accordance with Section 8.1(b)) shall be void
ab initio and ineffectual and shall not bind or be recognized by the Company or any other party. No such purported Transferee shall have
any right to any distributions of the Company.

 

Section 8.3            Effect
of Transfer.

 

(a)            Any
Member who shall Transfer any Units or other interest in the Company shall cease to be a Member of the Company with respect to such Units
or other interest Transferred and shall no longer have any rights or privileges of a Member with respect to such Units or other interest
Transferred.

 

(b)           Notwithstanding
anything to the contrary in this Agreement, no Member shall attempt to avoid the provisions of Section 2.7 (Non-Competition
and Non-Solicitation) or Section 10.7 (Confidentiality) as result of making one (1) or more Transfers pursuant to Section 8.2,
and the provisions of Section 2.7 and Section 10.7 shall be interpreted to apply to such Member as if such Transfers
had not occurred.

 

(c)           Any
Person who acquires in any manner whatsoever any Units or other interest in the Company, irrespective of whether such Person has accepted
and adopted in writing the terms and provisions of this Agreement, shall be deemed by the acceptance of the benefits of the acquisition
thereof to have agreed to be subject to and bound by all of the terms and conditions of this Agreement that any predecessor in such Units
or other interest in the Company of such Person was subject to or by which such predecessor was bound.

 

Section 8.4            Additional
Restrictions on Transfer.

 

(a)           In
connection with the Transfer of any Units, the Unitholder holding such Units will deliver to the Company (a) a written notice describing
in reasonable detail the Transfer or proposed Transfer and (b) to the extent required by the Managing Member, an opinion of counsel
that (to the Managing Member’s reasonable satisfaction) is knowledgeable in securities law matters or other documentation acceptable
to the Managing Member to the effect that such Transfer of Units may be effected without registration of such Units under the Securities
Act. In addition, if the holder of such Units delivers to the Company an opinion of such counsel, or other documentation acceptable to
the Managing Member to the effect that no subsequent Transfer of such Units shall require registration under the Securities Act, the
Company shall promptly deliver to such holder new certificates for such Units that do not bear the Securities Act legend set forth in
Section 7.

 

(b)           Notwithstanding
any contrary provision in this Agreement, the Managing Member may impose such vesting requirements, forfeiture provisions, Transfer restrictions,
minimum retained ownership requirements or other similar provisions with respect to any Units that are outstanding as of the date of
this Agreement or are created thereafter, only with the written consent of the holder of such Units. Such requirements, provisions and
restrictions need not be uniform and may be waived or released by the Managing Member in its sole discretion with respect to all or a
portion of the Units owned by any one or more Members at any time and from time to time, and shall not, to the fullest extent permitted
by law, constitute the breach of any duty hereunder or otherwise existing at law, in equity or otherwise.

 

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(c)           Notwithstanding
any contrary provision in this Agreement, in no event may any Transfer of Units be made by any Member or Assignee if the Managing Member
determines in good faith that:

 

(i)            such
Transfer is made to any Person who lacks the legal right, power or capacity to own such Units;

 

(ii)           such
Transfer would require the registration of such transferred Units or of any class of Units pursuant to any applicable U.S. federal or
state securities laws (including, without limitation, the Securities Act or the Exchange Act) or other non-U.S. securities laws (including
Canadian provincial or territorial securities laws) or would constitute a non-exempt distribution pursuant to applicable provincial or
state securities laws;

 

(iii)          such
Transfer would cause (i) all or any portion of the assets of the Company to (A) constitute “plan assets” (under
ERISA, the Code or any applicable similar law) of any existing or contemplated Member, or (B) be subject to the provisions of ERISA,
Section 4975 of the Code or any applicable similar law, or (ii) the Managing Member to become a fiduciary with respect to any
existing or contemplated Member, pursuant to ERISA, any applicable similar law, or otherwise;

 

(iv)          to
the extent requested by the Managing Member, the Company does not receive such legal and/or tax opinions and written instruments (including,
without limitation, copies of any instruments of Transfer and such Assignee’s consent to be bound by this Agreement as an Assignee)
that are in a form satisfactory to the Managing Member, as determined by the Managing Member in good faith; or

 

(v)          such
Transfer would pose a material risk that the Company would be treated as a “publicly traded partnership” within the meaning
of Section 7704 of the Code and the Treasury Regulations promulgated thereunder.

 

(d)           In
addition, notwithstanding any contrary provision in this Agreement, to the extent the Managing Member shall reasonably determine that
interests in the Company do not meet the requirements of Treasury Regulation Section 1.7704-1(h) (determined taking into account
the rules of Treasury Regulations Section 1.7704-1(h)(3), provided that, for such purpose, unless otherwise required
by applicable Law, the Company and the Managing Member shall assume that each Member as of immediately after the Pre-IPO Exchanges is
treated as a single partner within the meaning of Regulations Section 1.7704-1(h) (and none of the Member’s beneficial
owners is treated as a separate partner)), the Managing Member may impose such restrictions on the Transfer of Units or other interests
in the Company as the Managing Member may reasonably determine to be necessary or advisable so that the Company is not treated as a “publicly
traded partnership” within the meaning of Section 7704 of the Code and the Treasury Regulations promulgated thereunder.

 

Section 8.5            Transfer
Fees and Expenses. The Transferor and Transferee of any Units or other interest in the Company shall be jointly and severally
obligated to reimburse the Company for all reasonable expenses (including attorneys’ fees and expenses) of any Transfer or proposed
Transfer, whether or not consummated.

 

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Section 8.6            Redemption
and Exchange Rights.

 

(a)           Exchange
Procedures.

 

Upon the terms and subject to the conditions
set forth in this Section 8.6 and the other provisions of this Agreement, after the expiration of the period commencing on
the effectiveness of the S-1 related to PubCo’s initial public offering and ending on the date that is six (6) months following
such commencement date (the “Lock-Up Period”), each Class A Member (other than PubCo) shall be entitled, not
more than once per month, to cause the Company to effect an Exchange by delivering an Exchange Notice to the Company with a copy to PubCo.
Each Exchange Notice shall be in the form set forth on Appendix D and shall include all information required to be included therein.
In the event that an Exchange is being exercised in order to participate in a Piggyback Registration, the Exchange Notice Date shall
be prior to the expiration of the time period in which a holder of securities is required to notify PubCo that it wishes to participate
in such Piggyback Registration in accordance with the Registration Rights Agreement.

 

(b)           Exchange
Payment. The Exchange shall be consummated on the Exchange Date. Unless PubCo has exercised its PubCo Call Right pursuant to Section 8.6(f),
on the Exchange Date (to be effective immediately prior to the close of business on the Exchange Date) (i) PubCo shall contribute
to the Company for delivery to the Exchanging Member the Stock Exchange Payment with respect to any Exchanged Units not subject to a
Cash Exchange Notice, (ii) the Exchanging Member shall transfer and surrender the Exchanged Units to the Company, free and clear
of all liens and encumbrances, (iii) the Company shall issue to PubCo a number of Class A Common Units equal to the number
of Class A Common Units surrendered pursuant to clause (ii), (iv) solely to the extent necessary in connection with an Exchange,
PubCo shall undertake all actions, including an issuance, reclassification, distribution, division or recapitalization, with respect
to the Class A Common Stock to maintain a one-to-one ratio between the number of Class A Common Units owned by PubCo, directly
or indirectly, and the number of outstanding shares of Class A Common Stock and Class C Common Stock, taking into account the
issuance in clause (iii), any Stock Exchange Payment, and any other action taken in connection with this Section 8.6,
(v) the Company shall (x) cancel the redeemed Class A Common Units which were Exchanged Units held by the Exchanging Member
and (y) transfer to the Exchanging Member the Stock Exchange Payment, as applicable, and (vi) PubCo shall cancel the surrendered
shares of Paired Voting Stock. On or prior to the Exchange Date, and as a condition to the Exchange, the Exchanging Member shall make
any applicable Certificate Delivery. Upon the Exchange of all of a Member’s Units, such Member shall cease to be a Member of the
Company.

 

(c)           Splits,
Distributions and Reclassifications. If there is any reclassification, reorganization, recapitalization or other similar transaction
in which the shares of Class A Common Stock are converted or changed into another security, securities or other property, this Section 8.6
shall continue to be applicable, mutatis mutandis, with respect to such security or other property. This Section 8.6(c) is
intended to preserve the intended economic effect of Section 2.1 and this Section 8.6 and to put each Member
in the same economic position, to the greatest extent possible, with respect to Exchanges as if such reclassification, reorganization,
recapitalization or other similar transaction had not occurred and shall be interpreted in a manner consistent with such intent.

 

(d)           PubCo
Covenants. PubCo shall at all times keep available, solely for the purpose of issuance upon an Exchange, out of its authorized but
unissued shares of Class A Common Stock, such number of shares of Class A Common Stock that shall be issuable upon the Exchange
of all outstanding Class A Common Units (other than those Class A Common Units held by PubCo); provided that nothing
contained in this Agreement shall be construed to preclude the Company or PubCo from satisfying their obligations with respect to an
Exchange by delivery of shares of Class A Common Stock that are held in treasury of PubCo. PubCo covenants that all shares of Class A
Common Stock that shall be issued upon an

 

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Exchange shall, upon issuance thereof, be validly issued, fully paid and non-assessable, free
and clear of all liens and encumbrances. In addition, for so long as the shares of Class A Common Stock are listed on a stock exchange
or automated or electronic quotation system, PubCo shall cause all shares of Class A Common Stock issued upon an Exchange to be
listed on such stock exchange or automated or electronic quotation system at the time of such issuance. For purposes of this Section 8.6(d),
references to the “Class A Common Stock” shall be deemed to include any Equity Interests issued or issuable as a result
of any reclassification, combination, subdivision or similar transaction of the Class A Common Stock that any Member would be entitled
to receive pursuant to Section 8.6(c).

 

(e)            Exchange
Taxes. PubCo, the Company and each Exchanging Member shall bear their own expenses in connection with the consummation of any Exchange,
whether or not any such Exchange is ultimately consummated, except that the Company shall bear any transfer taxes, stamp taxes or duties,
or other similar taxes in connection with, or arising by reason of, any Exchange; provided, however, that if any shares
of Class A Common Stock are to be delivered in a name other than that of the Exchanging Member (subject to the restrictions in Section 8),
then the Person or Persons in whose name the shares are to be issued shall pay to the Company or PubCo, as applicable, the amount of
any additional tax that may be payable in respect of any Transfer involved in such issuance in excess of the amount otherwise due if
such shares were issued in the name of the Exchanging Member or shall establish to the reasonable satisfaction of the Company or PubCo,
as applicable, that such additional tax has been paid or is not payable.

 

(f)            PubCo
Call Rights. Notwithstanding anything to the contrary contained in this Section 8.6(f), with respect to any Exchange
Notice, an Exchanging Member shall be deemed to have offered to sell its Exchanged Units as described in any Exchange Notice directly
to PubCo (rather than causing the Company to redeem such Exchanged Units), and PubCo may, by delivery of a written notice to the Exchanging
Member no later than five (5) Business Days following the giving of an Exchange Notice, in accordance with, and subject to the terms
of, this Section 8.6(f) (such notice, a “PubCo Call Notice”), elect to purchase directly and acquire
such Exchanged Units on the Exchange Date by paying to the Exchanging Member (or such other Person specified in the Exchange Notice)
the Stock Exchange Payment, whereupon PubCo shall acquire the Exchanged Units on the Exchange Date and be treated for all purposes of
this Agreement as the owner of such Class A Common Units. Except as otherwise provided in this Section 8.6(f), an exercise
of the PubCo Call Right shall be consummated pursuant to the same timeframe and in the same manner as the relevant Exchange would have
been consummated if PubCo had not given a PubCo Call Notice, in each case as relevant, including that Section 8.6(a)(ii) shall
apply mutatis mutandis and that clauses (iv) and (vi) of Section 8.6(b) shall apply (notwithstanding
that the other clauses thereof do not apply).

 

(g)          Distribution
Rights. No Exchange shall impair the right of the Exchanging Member to receive any Distributions payable on the Class A Common
Units redeemed pursuant to such Exchange in respect of a record date that occurs prior to the Exchange Date for such Exchange. No Exchanging
Member, or a Person designated by an Exchanging Member to receive shares of Class A Common Stock, shall be entitled to receive,
with respect to such record date, Distributions or dividends both on Class A Common Units redeemed by the Company from such Exchanging
Member and on shares of Class A Common Stock received by such Exchanging Member, or other Person so designated, if applicable, in
such Exchange.

 

(h)           Exchange
Restrictions

 

(i)            Notwithstanding
any contrary provision in this Agreement, to the extent the Managing Member shall reasonably determine that interests in the Company
do not meet the requirements of Treasury Regulation Section 1.7704-1(h) (determined taking into account the rules

 

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 of Treasury Regulations
Section 1.7704-1(h)(3), provided that, for such purpose, unless otherwise required by applicable Law, the Company and the
Managing Member shall assume that each Member as of immediately following the Pre-IPO Exchanges is treated as a single partner within
the meaning of Regulations Section 1.7704-1(h) (and none of the Member’s beneficial owners is treated as a separate
partner)), the Managing Member may impose such restrictions on Exchanges (including limiting Exchanges or creating priority procedures
for Exchanges) as the Managing Member may reasonably determine to be necessary or advisable so that the Company is not treated as a “publicly
traded partnership” within the meaning of Section 7704 of the Code and the Treasury Regulations promulgated thereunder. If
the Managing Member determines in good faith that any such limitations or restrictions are necessary, then before imposing any such restrictions,
the Managing Member shall first consult in good faith with the Continuing Member in order to attempt to ameliorate the cause of such
restrictions. Notwithstanding anything to the contrary herein, no Exchange shall be permitted (and, if attempted, shall, to the fullest
extent permitted by law, be void ab initio) if, in the good faith determination of the Managing Member, such Exchange would pose a material
risk that the Company would be treated as a “publicly traded partnership” under Section 7704 of the Code.

 

(ii)          For
the avoidance of doubt, and notwithstanding anything to the contrary herein, a Member shall not be entitled to effect an Exchange to
the extent PubCo or the Company reasonably determines that such Exchange (i) would be prohibited by law or regulation (including,
without limitation, the unavailability of any requisite registration statement filed under the Securities Act or any exemption from the
registration requirements thereunder) or (ii) would not be permitted under any other agreements with PubCo or its subsidiaries by
which such Member is bound (including, without limitation, this Agreement) or any written policies of PubCo related to unlawful or inappropriate
trading applicable to its directors, officers or other personnel. Upon such determination, PubCo shall notify the Member requesting the
Exchange of such determination, which notice shall include an explanation in reasonable detail as to the reason that the Exchange has
not been effected.

 

(i)            Tax
Matters

 

(i)            In
connection with any Exchange, the Exchanging Member shall, to the extent it is legally entitled to do so, deliver to PubCo or the Company,
as applicable, a certificate, dated as of the Exchange Date and sworn under penalties of perjury, in a form reasonably acceptable to
PubCo or the Company, as applicable, certifying as to such Exchanging Member’s taxpayer identification number and that such Exchanging
Member is a not a foreign person for purposes of Section 1445 and Section 1446(f) of the Code, which certificate may be
an Internal Revenue Service Form W-9 if then sufficient for such purposes under applicable Law (such certificate a “Non-Foreign
Person Certificate”). If an Exchanging Member is unable to provide a Non-Foreign Person Certificate in connection with an Exchange,
then, at the Managing Member’s option, (i) such Exchanging Member shall provide a certificate substantially in the form described
in Treasury Regulations Section 1.1446(f)-2(c)(2)(ii)(B) or (ii) the Company shall deliver a certificate substantially
in the form described in Regulations Section 1.1446(f)-2(c)(2)(ii)(C), in each case setting forth the liabilities of the Company
allocated to the Exchanged Units under Section 752 of the Code, and PubCo or the Company, as applicable, shall be permitted to withhold
on the amount realized by such Exchanging Partner in respect of such Exchange as provided in Section 1446(f) of the Code and
Treasury Regulations thereunder and consistent with the certificate provided pursuant to clause (i) or (ii) of this sentence,
as applicable.

 

(ii)           For
U.S. federal and applicable state and local income tax purposes, each of the Exchanging Member, the Company and PubCo agree to treat,
to the maximum extent

 

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 permitted by applicable law, each Exchange as a taxable sale by the Exchanging Member of the Exchanging Member’s
Class A Common Units (together with an equal number of shares of Paired Voting Stock, which shares shall not be allocated any economic
value) to PubCo in exchange for (A) the payment by PubCo of the Stock Exchange Payment to the Exchanging Member, and (B) corresponding
payments under the Tax Receivable Agreement. Within thirty (30) days following the Exchange Date, PubCo shall deliver a Section 743
notification to the Company in accordance with Treasury Regulations Section 1.743-1(k)(2).

  

(j)             Withholding.
Notwithstanding any other provision in this Agreement, with respect to any Exchange pursuant to Section 8.6, PubCo, the Company
and their agents and affiliates shall have the right to deduct and withhold taxes (in cash or in kind, including Class A Common
Stock with a fair market value determined in the sole discretion of the Managing Member equal to the amount of such taxes) from any payments
to be made pursuant to such Exchange, if, in their opinion, such withholding is required by law. The Managing Member may, in its sole
discretion, allow an Exchanging Member to pay such taxes owed on the Exchange in cash in lieu of the Company or PubCo, as applicable,
withholding or deducting such taxes. To the extent that any of the aforementioned amounts are so withheld, such withheld amounts shall
be treated for all purposes of this Agreement as having been delivered and paid to the recipient of the payments in respect of which
such deduction and withholding was made. To the extent that any payment pursuant to this Agreement is not reduced by such deductions
or withholdings, such recipient shall indemnify the applicable withholding agent for any amounts imposed by any taxing authority together
with any costs and expenses related thereto.

 

(k)           Representations
and Warranties. In connection with any Exchange or exercise of a PubCo Call Right, (i) upon the issuance of the Class A
Common Stock, the Exchanging Member shall represent and warrant that the Exchanging Member is the owner of the number of Class A
Common Units that the Exchanging Member is electing to Exchange and that such Class A Common Units are not subject to any liens
or restrictions on transfer (other than restrictions imposed by this Agreement, the certificate of incorporation, bylaws and any other
governing documents of PubCo and applicable Law), and (ii) if the Managing Member elects a Stock Exchange Payment, the Managing
Member shall represent that (A) the shares of Class A Common Stock issued to the Exchanging Member in settlement of the Stock
Exchange Payment are duly authorized, validly issued, fully paid and non-assessable and were issued in compliance in all material respects
with applicable securities laws, and (B) the issuance of such shares of Class A Common Stock issued to the Exchanging Member
in settlement of the Stock Exchange Payment does not conflict with or result in any breach of the organizational documents of PubCo.

 

Section 8.7             Indirect
Ownership. If any Unitholder holds Units through a Person other than an individual, then each beneficial owner of such Unitholder
shall be deemed to be, together with such Unitholder, the Unitholder for the purposes of all covenants and obligations of such Unitholder
under this Agreement and the agreements contemplated hereby, and such Unitholder shall cause such beneficial owners to comply with and
perform such covenants. Any contrary provision in this Agreement or any corporate governing documents of any Unitholder that is not an
individual notwithstanding, except as specifically permitted or required by this Agreement, such Unitholder and its equityholders, partners
and beneficiaries may not, without full compliance with this Section 8, (a) directly or indirectly transfer any Units,
(b) permit the transfer of any portion of the direct or indirect equity or beneficial interest in the Unitholder or (c) otherwise
seek to avoid any transfer restriction or requirement in this Section 8 by issuing, or permitting the issuance of, any direct
or indirect equity or beneficial interest in such Unitholder in a manner that would fail to comply with this Agreement if such Person
were a direct holder of Units. If any Unitholder holds Units through a Person other than an individual, then the beneficial owner of
such Unitholder who is or was an employee or independent contractor of the Company or its subsidiaries shall be deemed to be, together
with such Unitholder, the Unitholder for the purposes of this Agreement with

 

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 respect to provisions addressing or impacted by the employment,
engagement or conduct of the Unitholder in a way that refers to a Unitholder as an individual.

 

Section 8.8            Pledge
of Membership Interests. The pledge of any of the Member's membership interests in the Company shall not, except as otherwise
provided in the loan documents underlying such pledge (the “Loan Documents”), cause the Member to cease to be a member
of the Company or to have the power to exercise any rights or powers of a member and, except as provided in such Loan Documents, the
secured party under the Loan Documents (the “Secured Party”) shall not have any liability solely as a result of such
pledge. Without limiting the foregoing, the right of a Secured Party to enforce its rights and remedies under the Loan Documents hereby
is acknowledged, and any such action taken in accordance therewith shall be valid and effective for all purposes under this Agreement,
subject to the terms of the Loan Documents and applicable law. Any assignment, sale or other disposition of the membership interests
in the Company by a Secured Party pursuant to any Loan Documents in connection with the exercise of such Secured Party’s rights
and powers thereunder shall be valid and effective for all purposes, to transfer all right, title and interest of the Member hereunder
to the Secured Party, any other lender pursuant to the Loan Documents or any other person (each an “Assignee”) in
accordance with the Loan Documents and applicable law (including, without limitation, the rights to (i) participate in the management
of the business and the business affairs of the Company, (ii) share profits and losses, (iii) receive distributions, and (iv) receive
allocations of income, gain, loss, deduction, credit or similar items), and such Assignee shall be a member of the Company, with all
rights and powers of a member, and the Member shall cease to be a member of the Company. Furthermore, no lender pursuant to the Loan
Documents or any Assignee shall be liable for the obligations of the Member to make contributions of capital to the Company. The Member,
which is the sole member of the Company, approves all of the foregoing, and the Member agrees that no further approval shall be required
for the exercise of any rights or remedies under such collateral documentation, subject to the terms of the Loan Documents and applicable
law.

 

Section 9

DISSOLUTION, WINDING UP AND LIQUIDATING DISTRIBUTIONS

 

Section 9.1            Events
of Dissolution. The Company shall not be dissolved by the admission of additional Members or substituted Members or by the death,
retirement, expulsion, Bankruptcy or dissolution of any Unitholder. The Company shall be dissolved, and its assets liquidated pursuant
to Section 9.3 below, upon the first to occur of the following (each, an “Event of Dissolution”):

 

(a)           the
occurrence of any event that terminates the continued membership in the Company of the theretofore last remaining Member;

 

(b)           the
entry of a decree of judicial dissolution or the administrative dissolution of the Company, as provided in the TBOC;

 

(c)           the
occurrence of any other event which causes a dissolution of the Company as set forth in the TBOC; and

 

(d)           the
determination of the Managing Member in its sole discretion; provided that in the event of a dissolution pursuant to this clause
(d), the relative economic rights of each class of Units immediately prior to such dissolution shall be preserved to the greatest extent
practicable with respect to distributions made to Members pursuant to Section 9.3 in connection with the winding up of the
Company, taking into consideration tax and other legal constraints that may adversely affect one or more parties hereto and subject to
compliance with applicable laws and regulations, unless, and to the extent that, with respect to any class of Units, holders of not less
than 90% of the Units of such class consent in writing to a treatment other than as described above; provided, that if the dissolution
of the Company pursuant to and in

 

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accordance with clauses (c) or (d) in this Section 9.1 would have a material
adverse effect on any Member, the dissolution of the Company shall require the prior written consent of such Member, which consent shall
not be unreasonably withheld.

 

Section 9.2             Winding
Up. Upon the dissolution of the Company, as provided by Section 9.1 above, the Managing Member (or, as applicable,
if none, the personal or other legal representative of the last remaining Member), shall immediately commence to wind up the Company’s
affairs and, except as provided in Section 9.3 hereof, shall (a) cause a proper accounting to be made by a recognized
firm of certified public accountants of the Company’s assets, liabilities, and operations through the last day of the calendar
month in which such event occurs or the final liquidation is completed, as applicable, (b) deliver to each known claimant of the
Company the notice required by Section 11.052 of the TBOC, and (c) distribute all the assets of the Company, in accordance
with Section 9.3 hereof, in liquidation of the Company as soon as practicable. During the wind-up phase of the Company, the
Managing Member (or, if none, the personal or other legal representative of the last remaining Member, as the case may be), may take
all actions necessary or appropriate to winding up the business and affairs of the Company, including selling or causing the Company
to sell or otherwise dispose of the Company’s assets as promptly as possible, but in a manner which is consistent with obtaining
the fair market value thereof.

 

Section 9.3             Liquidating
Distributions.  Upon the winding up of the Company, and its business and affairs following the dissolution of the Company, as
provided in Section 9.1 and Section 9.2 hereof, the Managing Member (or, as applicable, if none, the personal
or other legal representative of the last remaining Member), shall distribute, or cause the Company to distribute its cash, including
the proceeds from the disposition of the Company’s noncash assets, as promptly as possible, in the following order of priority:

 

(a)           first,
to the Company creditors, including Members (or Affiliates of any Members) (or former Members) who are creditors, to the extent otherwise
permitted by law, in satisfaction of liabilities of the Company;

 

(b)           second,
to set up any reserves which the Managing Member deems reasonably necessary for contingent or unforeseen liabilities or obligations of
the Company arising out of or in connection with the business of the Company; and

 

(c)           thereafter,
to the Members in accordance with Section 3.1.

 

Section 9.4             Liquidating
Trust. The Managing Member may cause the Company to establish a trust to receive the distributions to be made to the Members
(or the successors or assigns of the last remaining Member) under Section 9.3 hereof for the purposes of liquidating Company
non-cash assets, collecting amounts owed to the Company, and paying liabilities or obligations of the Company. Distributions from this
trust, if established, to the Members (in their capacity as such) (or successors or assigns of the last remaining Member) shall occur,
from time to time, in the reasonable discretion of the trustee of the liquidating trust, in the same proportions as would have been distributed
to the Members (or such successors and assigns) under Section 9.3 hereof.

 

Section 9.5            Certificate
of Termination. In accordance with the TBOC, following the dissolution, wind-up and liquidation of the Company, the Managing
Member (or, if none, the personal or other legal representative of the last remaining Member), shall prepare and file, or cause to prepared
and filed, a Certificate of Termination (to the Company’s Certificate) with the Secretary of State of Texas, which certificate
shall be in the form required by Section 11.101 of the TBOC, and take such other actions as may be necessary to terminate the Company.

 

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Section 9.6            Withdrawal
and Resignation of Unitholders. No Unitholder shall have the power or right to withdraw or otherwise resign from the Company
prior to the dissolution and winding up of the Company pursuant to this Section 9, without the prior written consent of the
Board (which consent may be withheld by the Board in its sole discretion) except as otherwise expressly permitted by this Agreement or
any of the other agreements contemplated hereby. Upon a Transfer of all of a Unitholder's Units in a Transfer permitted by this Agreement,
subject to the provisions of Section 8.4, such Unitholder shall cease to be a Unitholder. Notwithstanding that payment on
account of a withdrawal may be made after the effective time of such withdrawal, any completely withdrawing Unitholder will not be considered
a Unitholder for any purpose after the effective time of such complete withdrawal, and, in the case of a partial withdrawal, such Unitholder’s
Capital Account (and corresponding voting and other rights) shall be reduced for all other purposes hereunder upon the effective time
of such partial withdrawal.

 

Section 10

BOOKS AND RECORDS; INFORMATION RIGHTS; INSURANCE

 

Section 10.1          Books
and Records. The Company shall maintain, at the Company’s principal office, adequate books and records, including all records
required to be maintained by the Company pursuant to Section 101.501 and Section 3.151 of the TBOC. The books of the Company,
for tax and financial reporting purposes, shall be kept on the accrual method of accounting.

 

Section 10.2          Accounting
Decisions. All decisions as to accounting matters, except as specifically provided to the contrary herein, to be made by the
Managing Member, on behalf of the Company, shall be made consistent with the Company’s method of accounting for federal income
tax purposes.

 

Section 10.3           Income
Tax Elections. Except as otherwise provided herein to the contrary, the Managing Member may cause the Company to make any income
tax elections which are otherwise available to the Company under the Code or applicable Treasury Regulations, as determined in the discretion
of the Managing Member. Without limiting the generality of the foregoing, the Managing Member shall cause the Company to have in effect
(and to cause each direct or indirect subsidiary that is treated as a partnership for U.S. federal income tax purposes to have in effect)
an election pursuant to Section 754 of the Code, to adjust the tax basis of Company properties, for the taxable year that includes
the date of the initial public offering of shares of Class A Common Stock and for each taxable year in which an Exchange occurs.
The Managing Member shall determine whether to make or revoke any other available election or decision relating to tax matters, including
controversy in Section 11.1 pursuant to the Code. Each Member will upon request supply any information necessary to give
proper effect to any such election.

 

Section 10.4           Taxes
and Liens. The Company shall, and shall cause its Subsidiaries to, (i) file all tax returns and appropriate schedules thereto
that are required to be filed under applicable law, prior to the date of delinquency; (ii) pay and discharge all taxes, assessments,
and governmental charges or levies imposed upon their income and profits or upon any properties belonging to them, prior to the date
on which penalties attach thereto; and (iii) pay all taxes, assessments, and governmental charges or levies that, if unpaid, might
become a lien or charge upon any of their properties; provided, that the Company shall have the right to contest in good faith
and by appropriate proceedings the applicability or validity of any such tax, assessment, charge, or levy without paying such tax, assessment,
charge, or levy so long as adequate reserves with respect thereto are maintained in accordance with GAAP.

 

Section 10.5           Tax
Reports. Within one hundred twenty (120) days after the end of each fiscal year and at the expense of the Company, the Managing
Member shall cause to be prepared a complete accounting of the affairs of the Company, together with the Company’s federal and
state tax returns and an associated Schedule K-1 for each Member, together with such other information reasonably required by 

 

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each Member
for federal, state, and local income tax reporting purposes for that year, which accounting shall be completed and such information shall
be furnished to each Member promptly after the close of such Taxable Year of the Company.

 

Section 10.6          Insurance.
In addition to the insurance to be maintained in accordance with Section 5.5(f), the Company shall, and shall cause its Subsidiaries
to, maintain (i) full insurance on their assets which are of an insurable character against loss or damage by fire, flood, theft,
explosion, sprinklers and all other hazards and risks ordinarily insured against under all risk policies in use in the jurisdiction where
such assets are located, (ii) insurance against claims for general comprehensive liability (including without limitation products
liability) relating to bodily injury, death or property damage in amounts as shall be reasonably satisfactory to the Managing Member
and are consistent with industry standards in regard to the type and amounts of insurance customarily carried by similar companies and
(iii) insurance under the workers’ compensation laws of the states in which the Company and its Subsidiaries conduct business.
The Company shall provide the Managing Member with copies of all such policies upon request, which policies shall be issued by financially
sound and reputable insurers acceptable to the Managing Member in its reasonable discretion.

 

Section 10.7           Confidentiality.

 

(a)            Each
Member covenants and agrees that financial information, books, records, business strategies, business practices, methodologies, formula
or process of the Company or its Affiliates disclosed to Member (collectively, the “Confidential Information”) shall
be maintained confidential by each such Member at all times. Each Member covenants and agrees that each Member shall not at any time
divulge or reveal any of the Confidential Information to any Person or utilize any of the Confidential Information for the benefit of
any Person, party or entity, except as expressly authorized by this Agreement or with the prior written consent of the Managing Member.

 

(b)           Nothing
contained in this Section 10.7 shall prevent any Member from disclosing Confidential Information: (i) upon the order
of any court or administrative agency; (ii) to the extent compelled by legal process or required or requested pursuant to subpoena,
interrogatories or other discovery requests; (iii) to the extent necessary in connection with the exercise of any remedy hereunder;
(iv) to other Members; or (v) to such Member’s representatives who, in the reasonable judgment of such Member, need to
know such Confidential Information and agree to be bound by the provisions of this Section 10.7 or who are already bound
by confidentiality restrictions due to the nature of their representation of such Member; provided, that in the case of clause
(i) or (ii), such Member shall notify the Company and other Member of the proposed disclosure as far in advance of such disclosure
as practicable (but in no event make any such disclosure before notifying the Company and other Member) and use reasonable efforts to
ensure that any Confidential Information so disclosed is accorded confidential treatment satisfactory to the Company, when and if available.

 

(c)            The
restrictions of this Section 10.7 shall not apply to Confidential Information that: (i) is or becomes generally available
to the public other than as a result of a disclosure by a Member in violation of this Agreement; (ii) is or becomes available to
a Member or any of its representatives on a non-confidential basis prior to its disclosure to the receiving Member and any of its representatives
in compliance with this Agreement; (iii) is or has been independently developed or conceived by such Member without use of Confidential
Information; or (iv) becomes available to the receiving Member or any of its representatives on a non- confidential basis from a
source other than the Company, any other Member or any of their respective representatives; provided, that such source is not
known by the recipient of the Confidential Information to be bound by a confidentiality agreement with the disclosing Unitholder or any
of its representatives.

 

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Section 11

PARTNERSHIP REPRESENTATIVE

  

Section 11.1           Partnership
Representative.

 

(a)            The
Partnership Representative shall be the Managing Member or, if the Managing Member or any of its Affiliates no longer owns an interest
in the Company, then such Member as shall be appointed by the Managing Member, as determined from time to time. If any state or local
tax law provides for a tax matters partner, partnership representative or person having similar rights, powers, authority or obligations,
the Partnership Representative shall also serve in such capacity. The Partnership Representative shall designate from time to time a
 “designated individual” to act on behalf of the Partnership Representative, and such designated individual shall be subject
to replacement by the Partnership Representative in accordance with the Code and Treasury Regulations.

 

(b)            The
Partnership Representative is authorized and required to represent the Company (at the Company’s expense) in connection with all
examinations of the Company’s affairs by tax authorities, including resulting administrative and judicial proceedings, and to expend
Company funds for professional services incurred in connection therewith. The Partnership Representative may employ experienced tax advisors
to represent the Company in connection with any audit or investigation of the Company by any tax authority and in connection with all
subsequent administrative and judicial proceedings arising out of such audit. All expenses reasonably incurred by the Partnership Representative
in serving as the Partnership Representative (including but not limited to fees and expenses of counsel and tax advisors) shall be a
Company expense and shall be paid or reimbursed, without interest, by the Company.

 

(c)            The
Partnership Representative shall keep the Members reasonably informed of all administrative and judicial proceedings involving the Company
or any Company return, as required by the Code. The Partnership Representative shall notify the Members, within thirty (30) days after
it receives any notice from the IRS or any state, local or foreign taxing authority, and shall forward to each Member copies of all material
written communications it may receive in that capacity, of (a) any administrative or judicial proceedings with respect to an examination
of, or proposed adjustments to, the income, deductions, gains, losses or credits of the Company, (b) any extension of the statute
of limitations with respect to any taxable year of the Company, (c) filing of a request for administrative adjustment with respect
to the Company, (d) filing of a suit concerning any tax refunds or deficiency relating to any Company administrative adjustment
or (e) entering into any settlement agreement relating to any Company item of income, gain, loss, deduction or credit for any taxable
period of the Company. Each Member agrees to cooperate with the Partnership Representative and to do or refrain from doing any or all
things reasonably required by the Partnership Representative in connection with the conduct of all such proceedings.

 

(d)           In
the event of an audit of the Company that is subject to the partnership audit procedures enacted under Section 1101 of the Bipartisan
Budget Act of 2015 (the “BBA Procedures”), the Partnership Representative, in its sole discretion, shall have the
right to make any and all elections and to take any actions that are available to be made or taken by the Partnership Representative
or the Company under the BBA Procedures (including any election under Code Section 6226) that the Partnership Representative believes
to be in the best interest of the Company or all of the Members. If the IRS adjusts any items of Company taxable income, gain, loss,
deduction or credit for a given year (a “Review Year”), and if the Company is permitted under the applicable provisions
of the Code and Treasury Regulations to either pay tax at the Company level or to elect to pass the adjustment through to the Members
(a “Pass-Through Election”), the Managing Member shall determine whether to make a Pass-Through Election. In any case
where an adjustment of Company taxable income, gain, loss, deduction or credit for a Review Year results in the payment of tax by the
Company (because no Pass-Through Election was made or because 

 

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no Pass-Through Election was available), it is intended that the Members
shall bear the economic responsibility for the payment of the tax, penalty and interest paid by the Company in proportion to the manner
in which such adjustments made by the IRS would have been allocated to the Members based on their interests in the Company in the Review
Year. If a Person who was a Member of the Company in the Review Year has withdrawn from the Company, such former Member shall remain
obligated to indemnify the Company and the other Members for such former Member’s proportionate share of the tax, penalties and
interest paid by the Company with respect to the Review Year. Each Member hereby agrees to take all other actions as the Partnership
Representative may reasonably direct with respect to the Member’s (or, in respect of the Member, the Company’s) tax liabilities,
including filing an amended return for any Review Year to account for all adjustments under Section 6225(a) of the Code properly
allocable to the Member as provided in and otherwise contemplated by Section 6225(c) of the Code and any Treasury Regulations
that may be promulgated thereunder. Notwithstanding anything to the contrary in this Agreement, the Partnership Representative shall
not take any action or omit any action that would reasonably be expected to have a disproportionate, material adverse effect on a Member
without such other Member’s written consent, which such consent shall not be unreasonably withheld, delayed or conditioned.

 

(e)            The
provisions of this Section 11.1 shall survive the termination or dissolution of the Company or the termination of any Member’s
interest in the Company, any transfer of a Member’s interest in the Company or withdrawal as a Member and shall remain binding
on the Member.

 

Section 11.2           Indemnification.
The Company shall indemnify the Partnership Representative against judgments, fines, amounts paid in settlement and expenses (including
attorneys’ fees regardless of whether paid or incurred before or at trial or during any appellate proceeding) incurred by the Partnership
Representative in any civil, criminal or investigative proceeding in which the Partnership Representative is involved or threatened to
be involved solely by reason of being the Partnership Representative for the Company; provided, that the Partnership Representative
acted reasonably and in good faith within what the Partnership Representative reasonably believed to be in the best interests of the
Company or its Members, and in accordance with the terms of this Agreement. The Partnership Representative shall not be indemnified under
this provision against any liability to the Company or the other Member(s) which the Partnership Representative would otherwise
be subject by reason of its willful or intentional misconduct or bad faith.

 

Section 12

MISCELLANEOUS

 

Section 12.1           Notices.
All notices or other communications given or made under this Agreement or pursuant to the TBOC shall be in writing. Notices or other
communications to the Managing Member, any of the Members or the Company shall be deemed to have been given or received (i) upon
personal delivery, (ii) emailed to the recipient if emailed before 5:00 p.m. Central Standard Time on a business day, and otherwise
on the next business day, (iii) three (3) days after deposit in the United States mail, if sent by registered or certified
mail, return receipt requested, postage prepaid or the next business day after deposit with Federal Express (or comparable nationally
recognized overnight courier service) for guaranteed next business day delivery service, and addressed as follows:

 

(a)            Members.
To the Members (or any Member), at the address(es) set forth in Schedule 1.7 hereto, or at such other address as any Member
may specify in a writing given to the Company, the Managing Member and the other Members in accordance with this Section 12.1;
or

 

(b)            Company.
To the Company at the principal office of the Company specified in Section 1.2 above (all notices to the Company to be sent
to the attention of the Managing Member).

 

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Section 12.2           Binding
Effect. Except as stated in this Agreement, every provision of this Agreement shall be binding upon and inure to the benefit
each of the Members who are parties hereto and their respective successors and assigns, provided, that nothing in this Section 12.2
shall be interpreted as permitting any Transfer by any Member (or other party hereto or other Person bound by the terms hereof) of
any rights or obligations of any Member (or any such other Person) hereunder which is not otherwise expressly permitted under another
provision of this Agreement.

 

Section 12.3           Construction.
Any court or arbitrator shall construe every provision of this Agreement in accordance with its simple and fair meaning and not strictly
for or against any Member. No court or arbitrator shall interpret any provision of this Agreement as a penalty upon, or a forfeiture
by, any party to this Agreement. The parties hereto shared equally in the drafting of this Agreement and no court or arbitrator construing
this Agreement shall construe it more strictly against one party than the other.

 

Section 12.4           Entire
Agreement; Amendments.

 

(a)            Entire
Agreement. This Agreement, together with its schedules and appendices, those documents expressly referred to herein (including the
Exchange Agreements and the Tax Receivable Agreement) and together with the Certificate constitutes the entire agreement between the
Members with respect to its subject matter, and supersedes the Original Agreement and any and all other prior agreements and undertakings
with respect to such subject matter among them. No Member is making any guarantee, promise, or undertaking any obligation to or with
respect to the Company that is not expressly contained in this Agreement.

 

(b)            Amendments.

 

(i)            The
Managing Member, without the consent of any holder of Units, may amend any provision of this Agreement, and execute, swear to, acknowledge,
deliver, file and record whatever documents may be required in connection therewith, to reflect:

 

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

 

(B)         admission,
substitution, removal or withdrawal or resignation of Members or Assignees in accordance with this Agreement;

 

(C)         a
change that does not adversely affect any holder of Units in any material respect in its capacity as an owner of Units and is necessary
or desirable to satisfy any requirements, conditions or guidelines contained in any opinion, directive, order, ruling or regulation of
any United States federal or state agency or judicial authority or contained in any United States federal or state statute; or

 

(D)         amendments
contemplated by Section 2.1(c).

 

(ii)           Except
as provided in Section 2.2 and Section 12.4(b)(i), neither this Agreement nor the Certificate may be amended,
unless such amendments are required or, otherwise, permitted by any of the terms hereof or shall have been first been consented to, in
writing, by the Managing Member and, so long as the Continuing Member Ownership Percentage is at least 50%, the Continuing Member; provided,
however, that an amendment or modification modifying the rights or obligations of any Member in a manner that is disproportionately
adverse in any material respect to (A) such Member relative to the rights of other Members in respect of Units of the same class
or series or (B) a class or series of Units relative to the rights of another

 

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class or series of Units, shall in each case be effective
only with that Member’s consent or the consent of the Members holding a majority of the Units in that class or series, as applicable.
Notwithstanding the preceding sentence, (i) no consent or approval shall be required for the Company to admit a permitted transferee
as a Member following an Exempt Transfer completed in compliance with this Agreement, and (ii) if the Continuing Member Ownership
Percentage is less than 50%, the Continuing Member must also consent to or approve any amendments or modifications to Section 3,
Section 4 (and, for the avoidance of doubt, Appendix B), Section 6.5, Section 8.1, Section 8.6,
Section 9.3, this Section 12.4(b) or related definitions or any other amendments or modifications that affect
the rights granted to Continuing Member in such sections in any material respect, including, without limitation, changes to the number
of shares of Class A Common Stock issued upon an Exchange, either through an amendment to the definition of “Exchange Rate”
or otherwise, or that otherwise increases the obligations or decreases the benefits to the Continuing Member. Notwithstanding the foregoing,
any amendment which would materially and adversely affect the rights or duties of a Member on a discriminatory and non-pro rata basis
shall require the consent of such Member, other than those actions set forth in Section 12.4(b)(i) above. In addition,
the amendment of any specific approval, consent, voting right, or transfer rights of a specified Member shall require the approval of
such Member, provided that such Member holds the number of Units, as applicable, required to exercise such rights. Any amendment
or modification effected in accordance with this Section 12.4(b)(ii) shall be effective, in accordance with its terms,
with respect to the rights and obligations of and binding upon all Members. For the avoidance of doubt, without any action or requirement
of consent by any Member, the Company shall update the books and records of the Company to remove a Member’s name therefrom once
such Member no longer holds any Equity Interests, following which such Person shall cease to be a “Member” or have any rights
or obligations under this Agreement.

 

(iii)           Copies
of any amendments to this Agreement shall be sent all Members as promptly as is reasonably possible following the adoption thereof.

 

Section 12.5          Assignees.

 

(a)            Rights
of Assignees to Profits/Losses/Distributable Cash. In the event that any transferee or other successor-in-interest to a Member or
to a Membership Interest (resulting from a transfer not treated as null and void hereunder) is not admitted as an additional or substitute
 “member” of the Company in accordance with the provisions of this Agreement, such transferee or other successor-in-interest
shall be treated as an assignee, and shall only have the right to be allocated or distributed the profits, losses or monies or other
property, and shall be subject to all of the losses, liabilities, obligations and restrictions, to which the transferring Member (or
other transferor) would otherwise be entitled or subject to, to the extent applicable to the transferred interest.

 

(b)            Application
of Agreement to Assignees. In applying the provisions of this Agreement, including Section 3, Section 4 and
Appendix B hereof or attached hereto, each successor to an interest in the Company, whether admitted as an additional or substitute
 “member” of the Company, shall be deemed to have made the aggregate Capital Contributions previously made with respect to
the assigned interest by any predecessor owner thereof, and to have received the aggregate allocations or distributions previously made
to each such predecessor owner, to the extent attributable to the assigned interest.

 

(c)            Limits
on Rights of Assignees. An assignee of an interest in the Company who is not otherwise admitted as an additional or substitute “member”
of the Company shall not have: (i) voting, consent or approval rights otherwise afforded Members (or any Member) hereunder or under
the TBOC; (ii) the right to interfere in the management or administration of the Company’s business or affairs; or 

 

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(iii) the
right to acquire any information or account of Company transactions or inspect Company books or records during the continuance of the
Company, unless expressly allowed by the TBOC pursuant to any provision thereof which, as a matter of law, cannot be superseded by the
foregoing terms of this Agreement.

 

Section 12.6           Headings.
Section and other headings contained in this Agreement are for reference purposes only and shall not be considered interpretive
of the provisions thereof or hereof.

 

Section 12.7           Severability.
Every provision of this Agreement is intended to be severable. If any term or provision is illegal or invalid for any reason, then its
illegality or invalidity shall not affect the validity or legality of the remainder of this Agreement.

 

Section 12.8           Further
Cooperation. Each Member agrees to perform all such further acts, including executing and/or delivering any other documents or
instruments, as may be reasonably requested from time to time by the Managing Member, to carry out (or better carry out) any of the provisions
of this Agreement.

 

Section 12.9          Governing
Law; Venue. The laws of the State of Texas, exclusive of its conflicts of laws provisions, shall govern this Agreement, the organization
and internal affairs of the Company, the liability of the Managing Member (subject to the provisions hereof) and the limited liability
of the Members. Venue for any legal or other action arising out of or in any way related to the Company or this Agreement shall lie exclusively
in the courts of the State of Texas located in Harris County, Texas or in the United States District Court for the Southern District
of Texas, and each of the Members (and each other party to this Agreement), on each such Member’s (or other party’s) behalf
and on behalf of its or their successors and assigns, hereby consent to the exclusive personal jurisdiction of those courts and waive
any other jurisdiction or venue.

 

Section 12.10         Waiver
of Action for Partition. Each Member hereby waives any right such Member may have to maintain any action for partition with respect
to any assets of the Company.

 

Section 12.11         Counterpart
Execution; Facsimile Execution. This Agreement may be executed in any number of counterparts. These executions may be transmitted
to the Company and/or the other parties by facsimile or other electronic transmission and shall have the effect of an original signature.
All fully executed counterparts shall be construed together and shall constitute one agreement.

 

Section 12.12         Time
of the Essence. Time is of the essence with respect to each term of this Agreement; provided, that, in the event that
the day upon which any event specified herein is to take place falls on a Saturday, Sunday or other business holiday, then such event
shall take place on the next succeeding business day.

 

Section 12.13         Independent
Legal Representation; Waiver of Conflict of Interests. The Members all acknowledge that McGuireWoods LLP (“Counsel”),
acted as legal counsel for the DDH Investor in connection with the preparation of this Agreement and that: (i) the Members have
been advised by such Counsel’s representation of the Company in connection therewith will or may conflict with the interests of
one or more (or all) Members’ individually, (ii) the Members have been advised, before their execution of this Agreement,
to seek the advice of independent counsel on the merits and detriments to such Member of the terms of this Agreement, and (iii) each
Member had the opportunity, prior to such Member’s execution of this Agreement, to seek the advice of independent counsel. The
Members hereby jointly and severally waive any claim that Counsel’s representation of the Company in connection with the preparation
of this Agreement constitutes or creates a conflict of interest.

 

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Section 12.14         References.
All references in this Agreement to articles, sections or other subdivisions refer to corresponding articles, sections or subdivisions
of this Agreement unless expressly provided otherwise. The words “this Agreement,” “herein,” “hereof,”
 “hereby,” “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular
subdivision unless expressly so limited (or limited by the context within which used). Words in the singular form shall be construed
to include the plural and vice versa, and words of one gender shall be construed to include all genders, unless the context otherwise
requires.

  

Section 12.15         Third-Party
Beneficiaries. Except for (a) Members, the Managing Member or officers in their capacities as such, (b) the indemnified
parties in accordance with Section 5.5, and (c) the rights of Counsel to rely on the waivers in Section 12.13,
any agreement contained herein to make any contribution or to otherwise pay any amount, and any assumption of liability herein contained,
express or implied, shall be only for the benefit of the Members who are parties to this Agreement (and their respective permitted successors
and assigns), and to the Managing Member, and such agreements and assumptions shall not inure to the benefit of the obligees under
any indebtedness, or to any other Person whomsoever, it being the intention of the Members that no one shall be deemed to be a third-party
beneficiary of this Agreement or any portion hereof.

 

Section 12.15         Dispute
Resolution.

 

(a)            Scope.
Except as provided in Section 2.7(c), Section 8.10, and Section 12.16(e), any and all claims, counterclaims,
disputes and other matters in question arising out of or relating to this Agreement or the breach hereof (each, a “Dispute”)
will be resolved by the parties hereto in accordance with this Section of the Agreement.

 

(b)            Negotiation.
The parties shall attempt in good faith to resolve any Dispute promptly by negotiation between representatives of each of the parties
who have authority to settle the controversy. Either party may give the other party(s) written notice of a Dispute (“Notice
of Dispute”), which Notice of Dispute shall include (i) a statement of that party’s position and a summary of arguments
supporting that position, (ii) the dollar amount of the Dispute, if known, and the section(s) of the Agreement to which the
Dispute relates and (iii) the name and title of the individual who will represent that party in any negotiations concerning the
Dispute. Within thirty (30) days after delivery of the Notice of Dispute, the receiving party(s) shall submit to the other a written
response (the “Response to Dispute”). The Response to Dispute shall include (y) a statement of that party’s
position and a summary of arguments including references to any section(s) of the Agreement, if applicable, supporting that position
and (z) the name and title of the individual who will represent that party in any negotiations concerning the Dispute. Within ten
(10) days after delivery of the Response to Dispute, the designated individuals of both parties shall meet at a mutually acceptable
time and place or by telephone conference, and thereafter as often as they reasonably deem necessary, to attempt to resolve the Dispute.
All negotiations pursuant to this Section 12.16(b) are confidential and shall be treated as compromise and settlement
negotiations for purposes of applicable rules of evidence.

 

(c)            Mediation.
If the Dispute has not been resolved by negotiation as provided under subparagraph (b) above within sixty (60) days after delivery
of the initial Notice of Dispute, the party providing the Notice of Dispute may initiate mediation for the Dispute by written notice
to the other party(s) (the “Mediation Notice”), in which case the parties shall thereafter attempt in good faith
to settle the Dispute by mediation. The parties will attempt to select a mediator by mutual agreement within fifteen (15) days after
delivery of the Mediation Notice. If the parties are unable to agree upon a mediator within this fifteen (15) day period, each party
shall than identify one mediator by written notice to the other party(s) delivered within five (5) days after the expiration
of such fifteen (15) day period, and the identified mediators shall, within ten (10) days after the end of such five (5) day
period, jointly select a mediator who

 

    - 36 -

    

    

 

shall be appointed as mediator for the Dispute, subject to confirming that such mediator does not
have a potential or actual conflict of interest that prevents the mediator from serving and subject to the mediator confirming that he/she
can serve within the time allowed for mediation under this subparagraph. Unless otherwise agreed by the parties, the mediation conference
shall be held within sixty (60) days after delivery of the Mediation Notice. The mediator shall be required to abide by the Model Standards
of Conduct for Mediators then in effect. The parties shall ensure that appropriate representatives of each party, having authority to
consummate a settlement, attend the mediation conference. All expenses of the mediation, including required traveling and other expenses
or charges of the mediator, shall be borne equally by the parties unless they agree otherwise; provided, however, in the
event the parties are unable to agree mutually upon a mediator and the parties use the process identified above to select a mediator,
each party will be responsible for paying any amounts payable to the mediator such party identified as part of that process. The expenses
of participant(s) for each side shall be paid by the party requesting the attendance of each such participant. All negotiations
that occur in connection with any mediation held pursuant to this subparagraph (c) are confidential and shall be treated as compromise
and settlement negotiations for purposes of applicable rules of evidence.

 

(d)            Arbitration.
If the Dispute has not been resolved by mediation as provided under subparagraph (c) above within (60) days after delivery of the
Mediation Notice, any party may elect to have the Dispute finally resolved by arbitration. To commence the arbitration process, the party
must deliver a written demand for arbitration (“Arbitration Notice”) to the other party(s). No demand for arbitration
may be made after the date when institution of legal or equitable proceedings based on such Dispute would be barred by the applicable
statute of limitation. Once a party has provided an Arbitration Notice, the arbitration shall be conducted in accordance with the following:

 

(i)            Location;
Rules. The arbitration shall be conducted in Houston, Texas in accordance with the Commercial Arbitration Rules (including Procedures
for Large, Complex Commercial Disputes) (the “Arbitration Rules”) of the American Arbitration Association (the “AAA”)
then in effect, as applicable, subject to the modifications set forth in this Section.

 

(ii)          Arbitrator.
The arbitration will be held before one arbitrator who shall be a retired judge with at least 10 years of experience practicing business
litigation. Within twenty (20) days following the delivery of an Arbitration Notice pursuant to this Section 12.16(d)(ii),
the parties shall jointly select an arbitrator who fulfills the requirements of this Section 12.16; provided, however,
that, if the parties are unable to agree on the choice of arbitrator prior to the expiration of such twenty (20) day period, each party
shall choose one arbitrator within five (5) days after the expiration of such twenty (20) day period, and the two selected arbitrators
shall, within five (5) days after their appointment, jointly select a third arbitrator who fulfills the requirements of this Section 12.16(d)(ii) to
conduct the arbitration proceedings. Notwithstanding the foregoing, any Dispute in which the claimed amount (as reflected on the Notice
of Dispute, as the same may be amended) exceeds $1,000,000 will be heard before three such arbitrators, in which case each party shall
choose one arbitrator, and the two selected arbitrators shall jointly select the third arbitrator.

 

(iii)         Subject
to delay as set forth below, the arbitration will be scheduled to commence within sixty 60 days of appointment of the arbitrator(s) and
will be concluded as promptly as possible. The arbitrator(s) will be entitled to limit the evidence presented if the arbitrator(s) deem
such limitation necessary to conclude the arbitration in a timely manner. Within ten (10) days following appointment, the arbitrator
shall conduct a preliminary hearing as contemplated under the Arbitration Rules. The parties (and, if applicable, their counsel) must
attend this preliminary hearing in person or via telephone. The parties shall be entitled at this preliminary hearing to, inter alia,
request permission to conduct discovery, including serving requests for

 

    - 37 -

    

    

 

production of documents and conducting depositions, relating
to the Dispute. Notwithstanding anything herein to the contrary, in the event the arbitrator determines at or following the preliminary
hearing that more than sixty (60) days after appointment of the arbitrator are needed for the parties to exchange information, complete
any necessary discovery, or otherwise prepare adequately to arbitrate the Dispute, the arbitrator may elect to delay the commencement
of the arbitration until a date by which all preliminary matters may completed; provided, however, in no event may commencement
of the arbitration be delayed longer than one hundred twenty (120) days following appointment of the arbitrator.

 

(iv)         Decision
and Appeal. The decision of the arbitrator(s) will be a reasoned decision reduced to writing and will be binding on all parties.
The right of each party to arbitrate, and any other agreement or consent to arbitrate, will be specifically enforceable in any court
having jurisdiction. The award rendered by the arbitrator(s) will be final and judgment may be entered upon it in any court having
jurisdiction thereof, and will not be subject to modification or appeal except to the extent permitted by Title 9 of the United States
Code (the “Federal Arbitration Act”). The award of the arbitrator(s) may include an assessment of reasonable
attorney’s fees and expenses if, in the opinion of the arbitrator(s), a party has advanced a position that is without a reasonable
basis in law or fact. Unless otherwise determined by the arbitrator(s), the administrative costs of the arbitration, including payment
of the arbitrator, will be borne equally by the parties to the Dispute.

 

(v)          Choice
of Law. The arbitrator will apply the substantive law of the State of Texas, without reference to the law of conflicts of any other
jurisdiction, except that the interpretation and enforcement of this Section will be governed by the Federal Arbitration Act.

 

(vi)         Privilege;
Confidentiality. In the arbitration, all privileges under state and federal law, including attorney/client and work product privileges,
will be preserved and protected to the same extent that such privileges would be protected in a federal court in the United States applying
the internal law of the State of Texas (without reference to the law of conflicts of any jurisdiction). The parties will keep the evidence,
testimony and award in the arbitration confidential and will instruct their counsel and witnesses to do the same, except this information
may be revealed to the extent necessary in any proceeding to confirm or challenge the arbitration award.

 

(e)           Nothing
in this Section or this Agreement shall bar any party to this Agreement from exercising any rights and or seeking any remedies in
law or in equity that are available to any such party, including but not limited to seeking injunctive or other equitable relief in a
court of competent jurisdiction, or seeking relief pursuant to Section 2.7(c) or Section 8.10.

 

Section 12.16         Spousal
Consent. Each Member who has a Spouse on the date of this Agreement shall cause such Member’s Spouse to execute and deliver
to the Company a spousal consent in the form of Appendix C hereto (a “Spousal Consent”), pursuant to which
the Spouse acknowledges that he or she has read and understood the Agreement and agrees to be bound by its terms and conditions. If any
Member should marry or engage in a Marital Relationship following the date of this Agreement, such Member shall cause his or her Spouse
to execute and deliver to the Company a Spousal Consent within 5 Business Days thereof.

 

Section 12.17         Notice
to Members of Provisions of this Agreement. By executing this Agreement, each Member acknowledges that it has actual notice of
(a) all of the provisions of this Agreement, including, without limitation, the restrictions on the transfer of Membership Interests
set forth in Section 8, and (b) all of the provisions of the Certificate. Each Member hereby agrees that this Agreement
constitutes adequate notice of all such provisions, including, without limitation, any notice 

 

    - 38 -

    

    

 

requirement under Section 3.205 of
the TBOC and Chapter 8 of the Texas Uniform Commercial Code, and each Member hereby waives any requirement that any further notice thereunder
be given.

 

Section 12.18         Creditors.
None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditors of the Company or any of its Affiliates,
and no creditor who makes a loan to the Company or any of its Affiliates may have or acquire (except pursuant to the terms of a separate
agreement executed by the Company in favor of such creditor) at any time as a result of making the loan any direct or indirect interest
in Company profits, losses, distributions, capital or property other than as a secured creditor.

 

(Signature Page Follows)

 

    - 39 -

    

    

 

 

The Company and undersigned
Members have executed and delivered this Agreement as of the date set forth below.

 

	COMPANY:	 
	 	 
	DIRECT DIGITAL HOLDINGS, LLC	 
	 	 
	By:	/s/ Mark D. Walker	 
	Name: Mark D. Walker	 
	Title: Chief Executive Officer	 
	 	 
	MANAGING MEMBER:	 
	 	 
	DIRECT DIGITAL HOLDINGS, INC.	 
	 	 
	By:	/s/ Mark D. Walker	 
	Name: Mark D. Walker	 
	Title: Chief Executive Officer	 
	 	 
	CONTINUING MEMBER:	 
	 	 
	DIRECT DIGITAL MANAGEMENT, LLC	 
	 	 
	By:	/s/ Mark D. Walker	 
	Name: Mark D. Walker	 
	Title: Managing Partner	 

 

[Signature Page to Second A&R LLC Agreement
 – Direct Digital Holdings, LLC]

 

     

     

    

 

SCHEDULE 1.7

MEMBER INFORMATION – CAPITALIZATION

 

	 
Name
	 	Class A

 Common

Units	 	 	Class B

Voting 

Units	 
	Direct Digital Holdings, Inc.	 	 	2,800,000	 	 	 	11,378,000	 
	Direct Digital Management, LLC	 	 	11,378,000	 	 	 	--	 
	TOTAL	 	 	14,178,000	 	 	 	11,378,000	 

  

     

     

    

 

SCHEDULE 1.7 (continued)

MEMBER INFORMATION – NOTICE ADDRESSES

 

	Direct Digital Holdings, Inc.	 
	1233 West Loop South, Suite 1170	 
	Houston, TX 77027	 
	Attention: Keith Smith and Mark Walker	 
	Email:	ksmith@directdigitalholdings.com	 
	 	mwalker@directdigitalholdings.com	 
	 	 
	with a copy (not constituting notice) to:	 
	McGuireWoods LLP	 
	2000 McKinney Avenue, Suite 1400	 
	Dallas, Texas 75201	 
	Attention: Phyllis Y. Young	 
	Email:	pyoung@mcguirewoods.com	 
	 	 
	Direct Digital Management, LLC	 
	1233 West Loop South, Suite 1170	 
	Houston, TX 77027	 
	Attention: Keith Smith and Mark Walker	 
	Email:	ksmith@directdigitalholdings.com	 
	 	mwalker@directdigitalholdings.com	 
	 	 
	with a copy (not constituting notice) to:	 
	 	 
	McGuireWoods LLP	 
	2000 McKinney Avenue, Suite 1400	 
	Dallas, Texas 75201	 
	Attention: Phyllis Y. Young	 
	Email:	pyoung@mcguirewoods.com	 

 

     

     

    

 

APPENDIX A

GENERAL DEFINITIONS

 

Capitalized words and phrases
used in the Agreement, but which are not otherwise defined therein, shall have the following meanings (or the meanings set forth in Appendix
B to the Agreement):

 

“Affiliate”
means, with respect to any Person: (i) any other Person directly or indirectly controlling, controlled by or under common control
with such Person; (ii) any other Person who is an officer, director, manager, general partner, trustee or holder of 50% or more of
the voting stock or other voting securities of such Person (if a legal entity) or of any other Person (who is a legal entity) who is an
Affiliate of such Person described in clause (i) above; and/or (iii) any spouse, ancestor, child (including by adoption) or
other lineal descendant, sibling or in-law of such Person or of any other Person (who is a natural person) who is an Affiliate of such
Person and described in either clause (i) or (ii) above.

 

“Appraiser FMV”
means the fair market value of any Equity Interest as determined by an independent appraiser mutually agreed upon by the Managing Member
and the relevant Exchanging Member, whose determination shall be final and binding for those purposes for which Appraiser FMV is used
in this Agreement. Appraiser FMV shall be the fair market value determined without regard to any discounts for minority interest, illiquidity
or other discounts. The cost of any independent appraisal in connection with the determination of Appraiser FMV in accordance with this
Agreement shall be borne by the Company.

 

“Assumed Tax Rate”
means the sum of the maximum effective federal, state and local income tax rates to which any Member (or any of such Member’s direct
or indirect owners to the extent such Member is a pass through entity for federal income tax purposes) is subject for such tax year, as
determined from time to time by the Managing Member based on the information available to it. The Assumed Tax Rate shall be the same for
each Member.

 

“Available Cash”
means all cash of the Company on hand as of the last business day of any calendar month (or other fiscal period), as determined after
payment of all then due or past due Company expenses and obligations, other than cash which is: (i) restricted from distribution
under the terms of any agreement to which the Company is a party; or (ii) added to or retained in Company reserves pursuant to Company
budgets approved pursuant to Section 10.6 hereof.

 

“Bankruptcy”
means, with respect to any Person, the occurrence of any of the following events:

 

(a)            such
Person makes an assignment for the benefit of such Peron’s creditors;

 

(b)            such
Person files a voluntary petition in bankruptcy;

 

(c)            such
Person is adjudged a bankrupt or insolvent or has entered against such Person an order for any relief in any bankruptcy or insolvency
proceeding;

 

(d)            such
Person files a petition or answer seeking for it any reorganization, arrangement, composition, readjustment, liquidation, dissolution,
or similar relief under any statute, law, or regulation;

 

(e)            such
Person files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against such Person
in any proceeding of this nature;

 

    	 	A-1	 

     

    

 

(f)            such
Person seeks, consents to, or acquiesces in the appointment of a trustee, receiver or liquidator of such Person or of all or any substantial
part of such Person’s properties; or

 

(g)            after
one hundred and twenty (120) days after the commencement of any proceeding against such Person seeking reorganization, arrangement, composition,
readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation, the proceeding has not been dismissed;
or after ninety (90) days after the appointment, without such Person’s consent or acquiescence, of a trustee, receiver or liquidator
of such Person or of any substantial part of such Person’s property, the appointment has not been vacated or stayed or, if stayed,
ninety (90) days following the expiration of any such stay if the appointment has not been vacated.

 

“Board”
means the board of directors of PubCo, as constituted at any given time.

 

“Capital Contribution(s)”
means with respect to any Member, the amount of money and the initial Book Value of any property (other than money) contributed by such
Member (or predecessor owner of such Member’s Units) to the Company with respect to such Member’s Units, in accordance with
the terms of the Agreement (or the Original Agreement).

 

“Certificate”
means the Certificate of Formation of the Company and any amendments thereto and restatement thereof filed on behalf of the Company with
the Texas Secretary of State pursuant to the TBOC

 

“Certificate Delivery”
means, in the case of any shares of Paired Voting Stock to be transferred and surrendered by an Exchanging Member in connection with an
Exchange which are represented by a certificate or certificates, the process by which the Exchanging Member shall also present and surrender
such certificate or certificates representing such shares of Paired Voting Stock during normal business hours at the principal executive
offices of PubCo, or if any agent for the registration or transfer of shares of Paired Voting Stock is then duly appointed and acting,
at the office of such transfer agent, along with any instruments of transfer reasonably required by the Managing Member or such transfer
agent, as applicable, duly executed by the Exchanging Member or the Exchanging Member’s duly authorized representative.

 

“Class A 3-Day
VWAP” means, on any relevant measurement date, the VWAP for three (3) consecutive Trading Days ending on such date.

 

“Class A Common
Stock” means the Class A common stock, par value $0.001 per share, of PubCo.

 

“Class A Common
Units” means the limited liability company interests described in Section 2.1(a)(i) and having the rights,
powers and preferences specified herein.

 

“Class B Common
Stock” means the Class B common stock, par value $0.001 per share, of PubCo.

 

“Class B Voting
Units” means the limited liability company interests described in Section 2.1(a)(ii) and having the rights,
powers and preferences specified herein.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

“Continuing Member”
means the DDH Investor, being the member receiving Class A Common Units in the Recapitalization for so long as such Member continues
to hold such Class A Common Units after the Pre-IPO Exchanges.

 

    	 	A-2	 

     

    

 

“Continuing Member
Ownership Percentage” means the percentage obtained by dividing (i) the total number of Class A Common Units owned
by the Continuing Member by (ii) the aggregate number of Class A Common Units outstanding at such time.

 

“DDH Investor”
means Direct Digital Management, LLC, a Delaware limited liability company, together with its permitted transferees.

 

“DTC” means
The Depository Trust Company.

 

“Effective Time”
means such time as is immediately prior to the Pre-IPO Effective Time.

 

“Equity Interests”
means, with respect to any Person, all shares, interests, participations or other equivalents (however designated, whether voting or non-voting)
of such Person’s capital, whether now outstanding or issued or acquired after the date hereof, including without limitation, common
shares, preferred shares, membership interests in a limited liability company, limited or general partnership interests in a partnership,
interests in a trust, interests in joint ventures, interests in other unincorporated organizations or any other equivalent of such ownership
interest.

 

“Exchange”
means (a) the redemption by the Company of vested Class A Common Units held by a Member (together with the surrender and cancellation
of the same number of outstanding shares of Paired Voting Stock held by such Member) for the Stock Exchange Payment, or (b) the direct
purchase by PubCo of vested Class A Common Units and Paired Voting Stock held by a Member in accordance with a PubCo Call Right,
in each case in accordance with Section 8.6(f).

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and applicable rules and regulations thereunder, and any successor to such
statute, rules or regulations. Any reference herein to a specific section, rule or regulation of the Exchange Act shall be deemed
to include any corresponding provisions of future law.

 

“Exchange Agreements”
has the meaning set forth in the Recitals.

 

“Exchange Blackout
Period” means (i) any “black out” or similar period under PubCo’s policies covering trading in PubCo’s
securities to which the applicable Exchanging Member is subject (or will be subject at such time as it owns Class A Common Stock),
which period restricts the ability of such Exchanging Member to immediately resell shares of Class A Common Stock to be delivered
to such Exchanging Member in connection with a Stock Exchange Payment and (ii) the period of time commencing on (x) the date
of the declaration of a dividend by PubCo and ending on the first day following (y) the record date determined by the Board with
respect to such dividend declared pursuant to clause (x), which period of time shall be no longer than 10 Business Days; provided,
that in no event shall an Exchange Blackout Period which respect to clause (ii) of the definition hereof occur more than four (4) times
per calendar year.

 

“Exchange Conditions”
means any of the following conditions: (i) in the event of a valid request for registration pursuant to the Registration Rights Agreement,
(a) PubCo shall have failed to cause any related prospectus to be supplemented by any required prospectus supplement necessary to
effect such Exchange, (b) PubCo shall have exercised its right to defer, delay or suspend the filing or effectiveness of a Registration
Statement and such deferral, delay or suspension shall affect the ability of such Exchanging Member to have its Class A Common Stock
registered at or immediately following the consummation of the Exchange, (c) any stop order relating to the Registration Statement
pursuant to which the Class A Common Stock was to be registered by such Exchanging Member at or immediately following the Exchange
shall have been issued by the Securities and Exchange Commission, (d) there shall be in effect

 

    	 	A-3	 

     

    

 

an injunction, a restraining
order or a decree of any nature of any Governmental Entity that restrains or prohibits the Exchange, or (e) PubCo shall have failed
to comply in any material respect with its obligations under the Registration Rights Agreement to the extent related to the resale of
the Class A Common Stock of an Exchanging Member, and such failure shall have adversely affected the ability of such Exchanging
Member to consummate the resale of Class A Common Stock to be received upon such Exchange pursuant to an effective Registration
Statement; (ii) PubCo shall have disclosed in good faith to such Exchanging Member any material non-public information concerning
PubCo, the receipt of which results in such Exchanging Member being prohibited or restricted from selling Class A Common Stock at
or immediately following the Exchange without disclosure of such information (and PubCo does not permit disclosure); (iii) there
shall have occurred a material disruption in the securities markets generally or in the market or markets in which the Class A Common
Stock is then traded; (iv) there shall be in effect an injunction, a restraining order or a decree of any nature of any Governmental
Entity that restrains or prohibits the Exchange; or (v) the Exchange Date would occur three (3) Business Days or less prior
to, or during, an Exchange Blackout Period. For purposes of clarity, the matters contemplated in clauses (ii) through (v) above
shall constitute an Exchange Condition regardless of the existence of a valid request for registration pursuant to the Registration Rights
Agreement.

 

“Exchange Date”
means the date that is five (5) Business Days after the Exchange Notice Date is given; provided, that if an Exchanging Member
delays the consummation of an Exchange by delivering an Exchange Delay Notice, the Exchange Date shall occur on the date that is three
(3) Business Days following the date on which the conditions giving rise to such delay cease to exist which shall in no event be
prior to the date otherwise determined pursuant to this definition (or such earlier day as the Managing Member and such Exchanging Member
may agree in writing); provided, further, that if the Exchange Date for any Exchange with respect to which PubCo elects
to make a Stock Exchange Payment would otherwise fall within any Exchange Blackout Period, then the Exchange Date shall occur on the next
Business Day following the end of such Exchange Blackout Period.

 

“Exchange Delay Notice”
has the meaning set forth in Section 8.6(a)(iii).

 

“Exchange Notice”
means a written election of Exchange in the form of Appendix D, duly executed by the Exchanging Member.

 

“Exchange Notice
Date” means, with respect to any Exchange Notice, the date such Exchange Notice is given to the Company in accordance with Section 8.6(a).

 

“Exchanged Units”
means, with respect to any Exchange, the Class A Common Units being exchanged pursuant to a relevant Exchange Notice, and an equal
number of shares of Paired Voting Stock held by the relevant Exchanging Member.

 

“Exchanging Member”
means a Member initiating an Exchange.

 

“Exempt Transfer”
has the meaning set forth in Section 8.1(a).

 

“Fully Diluted Basis”
assumes the full conversion into Units of all convertible Equity Interests, if any, that at the time of any such determination would be
entitled to participate in the distributions upon consummation of the proposed Transfer, Sale of the Company, or other transaction in
question.

 

“Indebtedness”
means (a) all indebtedness for borrowed money, including that evidenced by notes, bonds, indentures, debentures or other instruments,
(b) any amounts owed with respect to drawn letters of credit, and (c) any outstanding guarantees of obligations of the type
described in clauses (a) or (b) above;

 

    	 	A-4	 

     

    

 

 provided, that, Indebtedness shall not include credit card charges and associated
balances incurred or carried in the ordinary course of business.

 

“IPO” has
the meaning set forth in the Recitals.

 

“Managing Member”
means the person designated as such pursuant to Section 5.1, which shall be PubCo as of the effectiveness of PubCo’s
admission as an additional member pursuant to Section 2.2(b)(ii), or any successor Managing Member admitted to the Company
in accordance with the terms of this Agreement, in its capacity as the managing member of the Company.

 

“Member(s)”
means the Members signing the Agreement and who are admitted as a “member” of the Company as of the Effective Date and/or
such (or each such) other Person, if any, subsequently admitted as an additional or substitute “member” of the Company, from
time to time, in accordance with the terms of the Agreement, provided, that a Person shall cease to be a “Member” at
such time as such Person shall dispose of such Person’s entire Membership Interest in the Company or, otherwise, upon the occurrence
of any event, including a Member’s dissolution, liquidation and termination, which results in a transfer or other disposition of
such Person’s entire Membership Interest (or other termination of such Person’s status as a “member” of the Company,
as specified in the Agreement or in the TBOC, as the same may be modified or superseded by the Agreement).

 

“Membership Interest”
means the entire interest of a Member (or assignee of a Member’s “transferable interest” not otherwise admitted as an
additional or substitute “member” of the Company) in the Company as a “member” thereof (or assignee of a Member’s
transferrable interest in the Company), including a Member’s Units, voting rights (as a “Member”) and a Member’s
(or assignee’s) interest in and to Company profits, losses and capital, including a Member’s (or assignee’s) right to
receive both current and liquidating distributions from the Company. The Members may hold any combination of Membership Interests (including
Units of more than one class).

 

“Membership Percentage”
means with respect to each Member, in reference to a Membership Percentage of any class of Units, that ratio, expressed as a percentage,
the numerator of which is the number of Units of such class owned by such Member, and the denominator of which is the total Units of such
class then outstanding.

 

“National Securities
Exchange” means a securities exchange registered with the Securities and Exchange Commission under Section 6 of the Exchange
Act.

 

“Paired Voting Stock”
means, with respect to Class A Common Units held by a Member other than PubCo, the shares of Class B Common Stock issued in
exchange for the Class B Voting Units initially paired with such Class A Common Units, subject, as applicable, to adjustment
pursuant to Section 3.2(d) and Section 3.2(e) and the certificate of incorporation of PubCo.

 

“Partnership Representative”
has the meaning set forth in Section 6223(a) of the Code and any comparable provisions of foreign, state and local income tax
laws.

 

“Person(s)”
means any individual(s) who is (or are) a natural person, partnership(s), limited liability company (or companies), limited liability
partnership(s), limited partnership(s), corporation(s), trust(s) and any other association or legal entity.

 

“Piggyback Registration”
is defined in the Registration Rights Agreement.

 

“Pre-IPO Effective
Time” has the meaning set forth in the Recitals.

 

    	 	A-5	 

     

    

 

“Pre-IPO Exchanges”
has the meaning set forth in the Recitals.

 

“Prime Rate”
as of a particular date means the prime rate of interest as published on that date in the Wall Street Journal. If the Wall Street Journal
is not published on a date for which the Prime Rate must be determined, then the Prime Rate shall be the prime rate published in the Wall
Street Journal on the nearest-preceding date on which the Wall Street Journal is published.

 

“PubCo”
means Direct Digital Holdings, Inc., a corporation incorporated under the laws of the State of Delaware, and its successors.

 

“PubCo Offer”
has the meaning set forth in Section 2.2(c)(ii).

 

“Recapitalization”
has the meaning set forth in the Recitals.

 

“Registration Rights
Agreement” means the Registration Rights Agreement, dated as of the date hereof, by and among PubCo, certain of the Members
and the other parties thereto (together with any other parties that become a party thereto from time to time upon execution of a joinder
in accordance with the terms thereof by any successor or assign to any party to such Registration Rights Agreement).

 

“Registration Statement”
means any registration statement that PubCo is required to file pursuant to the Registration Rights Agreement.

 

“Sale of the Company”
means either (a) the sale, transfer, conveyance or other disposition, in one transaction or a series of related transactions, of
all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole, or (b) a transaction or series of related
transactions (including by way of merger, consolidation, recapitalization, reorganization or sale of securities) the result of which is
that the Unitholders immediately prior to such transaction are after giving effect to such transaction no longer, in the aggregate, the
 “beneficial owners” (as such term is defined in Rule 13d-3 and Rule 13d-5 promulgated under the Exchange Act), directly
or indirectly through one or more intermediaries, of more than eighty percent (80%) of the voting power of the outstanding voting Equity
Interests of the Company, unless the foregoing change in voting power results from a capital raising transaction in which the Company
issues new securities or admits new Members in exchange for new Capital Contributions to the Company.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations thereunder.Any reference herein to a specific section,
rule or regulation of the Securities Act shall be deemed to include any corresponding provisions of future law.

 

“Securities and Exchange
Commission” means the United States Securities and Exchange Commission, including any governmental body or agency succeeding
to the functions thereof.

 

“Stock Exchange Payment”
means, with respect to any Exchange, a number of shares of Class A Common Stock equal to the number of Class A Common Units
subject to such Exchange.

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity, in any
jurisdiction, of which (i) if a corporation or a limited liability company or limited partnership (with voting securities), a majority
of the total voting power of Equity Interests thereof entitled (without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees (or members of any similar governing body) thereof is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited
liability company (without voting securities), a partnership, an association or other business entity, a majority of the Equity Interests
thereof is at the time owned or 

 

    	 	A-6	 

     

    

 

controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited
liability company (without voting securities), a partnership, an association or other business entity, a majority of the Equity Interests
thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination
thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company,
a partnership, an association or other business entity if such Person or Persons shall be allocated a majority of limited liability company,
partnership, association or other business entity gains or losses or shall be or control any managing director, managing member or general
partner (or equivalent) of such limited liability company, partnership, association or other business entity.

 

“Tax Receivable Agreement”
means the Tax Receivable Agreement dated as of or about the date hereof among the Company, the Managing Member and the other parties from
time to time party thereto, as amended from time to time.

 

“Taxable Year”
means, with respect to the Company, the calendar year (or such other fiscal period, if any, required to be adopted as the “taxable
year” of the Company for federal income tax purposes) (or portion thereof during which the Company is in existence).

 

“TBOC”
means the Texas Business Organizations Code and any successor statute, as amended from time to time.

 

“Third Party Purchaser”
means any Person who, immediately prior to the contemplated transaction, does not directly or indirectly own or have the right to acquire
any outstanding Units.

 

“Trading Day”
means a day on which Nasdaq or such other principal United States securities exchange on which the Class A Common Stock is listed,
quoted or admitted to trading and is open for the transaction of business (unless such trading shall have been suspended for the entire
day).

 

“Transfer”
means, as a noun, any voluntary or involuntary sale, exchange pledge, assignment, hypothecation, or other disposition of any rights in
tangible or intangible property, and, as a verb, means voluntarily or involuntarily (including, but not limited to, an assignment or other
disposition by reason of Bankruptcy) to sell, exchange, pledge, assign, hypothecate or otherwise dispose of such property. For any Member
that is a corporation, partnership, joint venture, enterprise, limited liability company, unincorporated association, trust, estate or
other business or legal entity, including any state law entity disregarded as a separate entity for federal and state income tax purposes,
Transfer shall also mean any voluntary or involuntary, direct or indirect, transfer, assignment, sale, pledge hypothecation, or other
disposition of more than fifty percent (50%) of the voting Equity Interests of the Member in a single transaction or a series of related
transactions. The terms “Transferee”, “Transferor”, “Transferred”, and other
forms of the word “Transfer” have correlative meanings.

 

“Treasury Regulations”
(or “Regulations”) means the Treasury Regulations promulgated under the Code, as such Treasury Regulations may be amended
and in effect from time to time.

 

“Unit”
or “Units” means a Unit of a Member in the Company representing a fractional part of interests in distributions of
the Company held by all Members and shall include, collectively, the Class A Common Units, the Class B Voting Units and such
other units of the Company as may be authorized, designated or issued, as determined by the Managing Member from time to time after the
date hereof; provided, that any class or group of Units issued shall have the relative rights, powers and duties set forth in this
Agreement.

 

“Unitholder”
shall mean, with respect to any class of Units, a Member (or other Person) owning a Unit or Units of such class.

 

“USDM Investor”
means USDM Holdings, Inc., a Texas corporation.

 

    	 	A-7	 

     

    

 

“USDM Redemption”
has the meaning set forth in the Recitals.

 

“VWAP”
means the daily per share volume-weighted average price of the Class A Common Stock on Nasdaq or such other principal United States
securities exchange on which the shares of Class A Common Stock are listed, quoted or admitted to trading, as displayed under the
heading Bloomberg VWAP on the Bloomberg page designated for the Class A Common Stock (or the equivalent successor if such page is
not available) in respect of the period from the open of trading on such Trading Day until the close of trading on such Trading Day (or
if such volume-weighted average price is unavailable, (a) the per share volume-weighted average price of a share of Class A
Common Stock on such Trading Day (determined without regard to afterhours trading or any other trading outside the regular trading session
or trading hours), or (b) if such determination is not feasible, the market price per share of Class A Common Stock as determined
by a nationally recognized independent investment banking firm retained in good faith for this purpose by PubCo); provided, however,
that if at any time for purposes of the Class A 3-Day VWAP shares of Class A Common Stock are not then listed, quoted or traded
on a principal United States securities exchange or automated or electronic quotation system, then the VWAP shall mean the per share Appraiser
FMV of one (1) share of Class A Common Stock (or such other Equity Interest into which the Class A Common Stock was converted
or exchanged).

 

    	 	A-8	 

     

    

 

APPENDIX B

SPECIAL TAX AND ACCOUNTING PROVISIONS

 

		I.	Tax and Accounting Definitions. The following terms, which are used predominantly in Section 4
of the Agreement and this Appendix B, shall have the meanings set forth below:

 

A.            “Adjusted
Capital Account” means, with respect to any Member, such Member’s Capital Account as of the end of the relevant Taxable
Year, after giving effect to the following adjustments:

 

(1)            credit
to such Capital Account any amounts which such Member is obligated to restore pursuant to this Agreement or as determined pursuant to
Regulations § 1.704-1(b)(2)(ii)(c), or is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations §§
1.704-2(g)(1) and 1.704-2(i)(5); and

 

(2)            debit
to such Capital Account the items described in clauses (4), (5) and (6) of Regulations § 1.704-1(b)(2)(ii)(d).

 

B.            “Adjusted
Capital Account Deficit” means, with respect to any Member, the deficit balance, if any, in such Member’s Adjusted Capital
Account. The foregoing definition of Adjusted Capital Account Deficit is intended to comply with the provisions of Regulations §
1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

 

C.            “Allocation
Period” means, unless otherwise required pursuant to the Code and Treasury Regulations, (i) the Taxable Year of the Company,
(ii) any portion of the Taxable Year for which the Company is required to allocate Profits, Losses and other items of Company income,
gain, loss, deduction or other items pursuant to Section 4 or this Appendix B, or (iii) any other period reasonably
determined by the Managing Member as appropriate for a closing of the Company’s books.

 

D.            “Book
Value” means, with respect to any Company asset, such asset’s adjusted basis for federal income tax purposes, except as
follows:

 

(1)            the
initial Book Value of any asset (other than money) contributed by a Member to the Company shall be the gross fair market value thereof
as of the date of contribution, as set forth in this Agreement or, if not set forth in this Agreement, as reasonably determined by the
Managing Member and the contributing Member as of the date of contribution;

 

(2)            the
Book Value of all Company assets shall be adjusted to equal their respective gross fair market values, as reasonably determined by the
Managing Member (but subject to Code § 7701(g)), as of the following times: (i) the acquisition of additional interests
in the Company by any new or existing Member in exchange for more than a de minimis initial or additional Capital Contribution;
(ii) the distribution by the Company to a Member of more than a de minimis amount of cash or property as consideration for
an interest in the Company; (iii) the issuance by the Company of a non-compensatory option (other than an option to acquire a de
minimis interest in the Company); (iv) in connection with the grant of an interest in the Company (other than a de minimis
interest) as consideration for the provision of services to or for the benefit of the Company by an existing Member acting in a member
capacity, or by a new Member acting in a partner capacity in anticipation of being a Member; or (v) the Liquidation of the Company;
provided, that an adjustment described in clauses (i), (ii), (iii) and (iv) immediately above shall be made only if the
Managing Member reasonably determines that such adjustment is necessary to reflect the relative economic interests of the Members in the
Company;

 

    	 	B-1	 

     

    

 

(3)            the
Book Value of any Company asset distributed to any Member shall be adjusted immediately before its distribution to equal its gross fair
market value on the date of distribution, as reasonably determined by the Managing Member;

 

(4)            the
Book Values of the Company’s assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets
pursuant to Code § 734(b) or Code § 743(b), but only to the extent that such adjustments are taken into account
in determining Capital Accounts pursuant to Regulations § 1.704-1(b)(2)(iv)(m); provided, however, that Book Values
shall not be adjusted pursuant to this Section I.D(4) to the extent that an adjustment pursuant to Section I.D(2) above
is otherwise made thereto in connection with or as a result of any transaction or event that would otherwise result in an adjustment pursuant
to this Section I.D(4); and

 

(5)            if
the Book Value of any asset subject to the allowance for depreciation or amortization has been determined or adjusted pursuant to Section I.D(1),
Section I.D(2), or Section I.D(4) above, such Book Value shall thereafter be adjusted by the Depreciation
taken into account, from time to time, with respect to such asset for purposes of computing Profits or Losses of the Company.

 

For purposes Section I.D(2) above,
the term “Liquidation of the Company” means the date upon which the Company ceases to be a going concern (even though
it may continue in existence for the purpose of winding up its affairs, paying its debts and distributing any remaining assets to its
Members).

 

E.            “Capital
Account” means, with respect to any Member, the Capital Account maintained by the Company for such Member in accordance with
Regulations § 1.704-1(b)(2). Except as otherwise provided in said Regulations section, each Member’s Capital Account shall
be maintained or adjusted in accordance with the following rules or provisions:

 

(1)            to
each such Member’s Capital Account, there shall be credited the amount of cash contributed to the Company by such Member and the
initial Book Value of any property, other than cash, contributed to the capital of the Company by such Member (net of any liability secured
by such contributed property that the Company is considered to assume or take subject to pursuant to Code § 752), such Member’s
allocable share of Company Profits and any items of income or gain comprising the Profits of the Company that are allocated to such Member,
and the amount of any Company liabilities assumed by such Member or that are secured by any Company property distributed to such Member;

 

(2)            to
each such Member’s Capital Account, there shall be debited the amount of cash and the Book Value of any property distributed by
the Company to such Member pursuant to any provision of this Agreement (net of Company liabilities secured by such distributed property
that such Member is considered to assume or take subject to pursuant to Code § 752), such Member’s allocable share of Company
Losses and any items of expense or loss comprising the Losses of the Company that are allocated to such Member, and the amount of any
liabilities of such Member (excluding liabilities taken into account in accordance with Section I.E(1) above) assumed
by the Company or that are secured by any property contributed by such Member to the Company;

 

(3)            to
the extent that the unrealized income, gain, loss or deduction inherent in property distributed (or deemed to be distributed) in kind
(whether or not distributed in liquidation) is not then reflected in the Members’ Capital Accounts, the Capital Accounts of the
Members shall be adjusted to reflect the manner in which the unrealized income, gain, loss and 

 

    	 	B-2	 

     

    

 

deduction inherent in such property would
be allocated among the Members under the Agreement if there were a fully taxable disposition of such property for all cash for its then
fair market value, as determined by the Managing Member, in its reasonable discretion, as of the date of its actual (or deemed) distribution;

 

(4)            in
the event that the Book Value of Company assets are adjusted as described in Section I.D(2) above, the Members’
Capital Accounts shall be adjusted to reflect their allocable share of the gain or loss (not then reflected in the Members’ Capital
Accounts) which the Company would recognize as of or immediately before such adjustment, if it sold all of its assets, as of such time,
for all cash in a fully taxable transaction for an amount equal to such assets’ adjusted Book Value;

 

(5)            in
the event that any Company property is subject to Code § 704(c), or in the event Company property is re-valued, at the election
of the Managing Member, in accordance with Regulations § 1.704-1(b)(2)(iv)(f) and, as a result, has a Book Value different
from such property’s adjusted income tax basis, the Members’ Capital Accounts shall be adjusted in accordance with Regulations §
1.704-1(b)(2)(iv)(g) to reflect only allocations to them of Depreciation, if any, allowable for such Company property and by the
gain or loss arising from the sale or other disposition of such property, as computed for book purposes and not for income tax purposes,
by reference to such property’s adjusted Book Value; and

 

(6)            If
there is a transfer of a Membership Interest in accordance with the terms of this Agreement, the transferee shall succeed to the Capital
Account of the transferor to the extent it relates to the transferred Membership Interest.

 

The foregoing provisions and
the other provisions of the Agreement or this Appendix B relating to the maintenance of Capital Accounts are intended to comply
with Regulations § 1.704-1(b) and § 1.704-2 and shall be interpreted and applied in a manner consistent with such
Regulations. In the event the Managing Member shall determine that it is prudent to modify the manner in which the Capital Accounts, or
any debits or credits thereto (including, without limitation, debits or credits relating to liabilities which are secured by contributed
or distributed property or which are assumed by the Company or any Members), are computed in order to comply with such Treasury Regulations,
the Managing Member may make such modification, provided, that it is not likely to have a material effect on the amounts distributed
to any Person pursuant to Section 9 hereof upon the dissolution of the Company. The Managing Member also shall (i) make
any adjustments that are necessary or appropriate to maintain equality between the Capital Accounts of the Members and the amount of capital
reflected on the Company’s balance sheet, as computed for book purposes, in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(q),
and (ii) make any appropriate modifications in the event unanticipated events might otherwise cause this Agreement not to comply
with Treasury Regulations Section 1.704-1(b).

 

F.            “Company
Minimum Gain” has the same meaning as the term “partnership minimum gain” under Regulations §§ 1.704-2(b)(2) and
1.704-2(d).

 

G.            “Depreciation”
means, for each Taxable Year, or other fiscal period of the Company, an amount equal to the depreciation, amortization or other cost recovery
deduction allowable with respect to an asset for such year or other period for federal income tax purposes, except that if the Book Value
of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such year or other period, Depreciation
shall be an amount that bears the same ratio to such beginning Book Value as the federal income tax depreciation, amortization or other
cost recovery deduction for such year or other period bears to such beginning adjusted tax basis; provided, however, that
if such depreciation, amortization or other cost recovery deductions with respect to any such asset for federal income tax 

 

    	 	B-3	 

     

    

 

purposes is
zero for any Allocation Period, Depreciation shall be determined with reference to such asset’s Book Value at the beginning of such
period using any reasonable method selected by the Managing Member.

 

H.            “Economic
Risk of Loss” has the meaning assigned to that term in Regulations § 1.752-2(a).

 

I.            “Member
Nonrecourse Debt” has the same meaning as the term “partner nonrecourse debt” under Regulations § 1.704-2(b)(4).

 

J.            “Member
Nonrecourse Debt Minimum Gain” has the same meaning as the term “partner nonrecourse debt minimum gain” under Regulations §
1.704-2(i)(2) and shall be determined in accordance with Regulations § 1.704-2(i)(3).

 

K.            “Member
Nonrecourse Deductions” has the same meaning as the term “partner nonrecourse deductions” under Regulations §
1.704-2(i)(1) and shall be determined in accordance with Regulations § 1.704-2(i)(2).

 

L.            “Nonrecourse
Debt” or “Nonrecourse Liability” has the same meaning as the term “nonrecourse liability” under
Regulations § 1.704-2(b)(3).

 

M.            “Nonrecourse
Deductions” has the meaning set forth in Regulations § 1.704-2(b)(1) and shall be determined according to the
provisions of Regulations § 1.704-2(c).

 

N.            “Profits”
or “Losses” of the Company for each Allocation Period means an amount equal to the Company’s taxable income or
loss for each such Allocation Period, as determined for federal income tax purposes in accordance with the accounting method followed
by the Company for federal income tax purposes and in accordance with Code § 703 (for this purpose, all items of income, gain,
loss or deduction required to be separately stated pursuant to Code § 703(a)(1) shall be included in taxable income or
loss), subject to the following modifications:

 

(1)            any
income of the Company that is exempt from federal income taxation and not otherwise taken into account in computing Profits or Losses
shall be added to such taxable income or loss;

 

(2)            any
expenditures of the Company described in Code § 705(a)(2)(B) or treated as Code § 705(a)(2)(B) expenditures
pursuant to Regulations § 1.704-1(b)(2)(iv)(i), and not otherwise taken into account, shall be subtracted from such taxable
income or loss;

 

(3)            in
the event the Book Value of any Company property is adjusted pursuant to Section I.D(2) or Section I.D(3),
the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the Book Value of the Company property)
or an item of loss (if the adjustment decreases the Book Value of the item of Company property) from the disposition of such Company property
and shall be taken into account for purposes of computing Profits or Losses;

 

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

 

    	 	B-4	 

     

    

 

(5)            in
lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss,
there shall be taken into account Depreciation for such Allocation Period, computed in accordance with the definition of Depreciation;

 

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

 

(7)            notwithstanding
any other provision of this definition or Section 4 of the Agreement, any items that are specially allocated pursuant to Section II
below shall not be taken into account in computing Profits or Losses; and

 

(8)            the
amounts of the items of Company income, gain, loss, or deduction available to be specially allocated pursuant to Section II
below shall be determined by applying rules analogous to those set forth in subsections (1) through (6) above.

 

		II.	Special Allocations. Notwithstanding the provisions of Section 4.1 of the Agreement
to the contrary, the following special rules shall apply:

 

A.            Minimum
Gain Chargeback. Except as otherwise provided in Regulations § 1.704-2(f), notwithstanding any other provision of this Appendix
B, if there is a net decrease in Company Minimum Gain during any Allocation Period, each Member shall be specially allocated items
of Company income and gain for such Allocation Period (and, if necessary, subsequent Allocation Periods) in an amount equal to such Member’s
share of the net decrease in Company Minimum Gain, determined in accordance with Regulations § 1.704-2(g). Allocations pursuant to
the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Member pursuant thereto.
The items to be so allocated shall be determined in accordance with Regulations §§ 1.704- 2(f)(6) and 1.704-2(j)(2). This
subsection is intended to comply with the minimum gain chargeback requirement in Regulations § 1.704-2(f) and shall be interpreted
consistently therewith.

 

B.            Member
Minimum Gain Chargeback. Except as otherwise provided in Regulations § 1.704-2(i)(4), notwithstanding any other provision of
this Appendix B, if there is a net decrease in Member Nonrecourse Debt Minimum Gain attributable to a Member Nonrecourse Debt during
any Allocation Period, each Member who has a share of the Member Nonrecourse Debt Minimum Gain attributable to such Member Nonrecourse
Debt, determined in accordance with Regulations § 1.704-2(i)(5), shall be specially allocated items of Company income and gain for
such Allocation Period (and, if necessary, subsequent Allocation Periods) in an amount equal to such Member’s share of the net decrease
in Member Nonrecourse Debt Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance with Regulations §
1.704-2(i)(4). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated
to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations §§ 1.704-2(i)(4) and
1.704-2(j)(2). This subsection is intended to comply with the minimum gain chargeback requirement in Regulations § 1.704-2(i)(4) and
shall be interpreted consistently therewith.

 

    	 	B-5	 

     

    

 

C.            Qualified
Income Offset. In the event that any Member who unexpectedly receives any adjustments, allocations, or distributions described in
Regulation §§ 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6) has an Adjusted Capital Account
Deficit as of the end of any Taxable Year, computed after the application of Section II.A and Section II.B but
before the application of any other provision of this Section II, items of Company income and gain shall be allocated to such
Member in an amount and manner sufficient to eliminate, to the extent required by the Treasury Regulations, the Adjusted Capital Account
Deficit of such Member as quickly as possible, provided, that an allocation pursuant to this subsection shall be made only if and
to the extent that such Member would have an Adjusted Capital Account Deficit after all other allocations provided for in this Appendix
B have been tentatively made as if this subsection were not applicable. This subsection is intended to be a “qualified income
offset” as defined in Regulations § 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

 

D.            Nonrecourse
Deductions. Nonrecourse Deductions for any Allocation Period (or other applicable period) shall be specially allocated pro rata among
the Members in proportion to their respective Membership Percentage, except to the extent that the Code and Treasury Regulations require
that such deductions be allocated in some other manner. Any Member Nonrecourse Deductions for any Allocation Period shall be specially
allocated to the Member who bears the Economic Risk of Loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse
Deductions are attributable in accordance with Regulations § 1.704-2(i)(1). If more than one Member bears the Economic Risk of Loss
with respect to Member Nonrecourse Debt, Member Nonrecourse Deductions attributable thereto shall be allocated between or among such Members
in accordance with the ratios in which they share such Economic Risk of Loss.

 

E.            Section 754
Adjustments. To the extent an adjustment to the adjusted tax basis of any Company asset, pursuant to Code §§ 734(b) or
Section 743(b) is required, pursuant to Regulations § 1.704-1(b)(2)(iv)(m)(2) or Regulations § 1.704-1(b)(2)(iv)(m)(4),
to be taken into account in determining Capital Accounts, the amount of such adjustment to Capital Accounts shall be treated as an item
of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall
be specially allocated to the Members in a manner consistent with the manner in which their Capital Accounts are required to be adjusted
pursuant to such provisions.

 

F.            Curative
Allocations.

 

(1)            The
allocations set forth in Sections II.A through II.E of this Appendix B are intended to comply with certain
requirements imposed by Code § 704(b) and the Regulations promulgated thereto (the “Regulatory Allocations”).
If in any Taxable Year any Regulatory Allocations (which term shall include any other allocations required to be made under Code § 704(b) or
under the Regulations promulgated thereunder) are made, then in allocating the remainder of the Company’s Profits or Losses (or
items thereof) thereafter pursuant to Section 4.1 of the Agreement, whether in the same Allocation Period or in subsequent
Allocation Periods, the Regulatory Allocations shall be taken into account so that, to the maximum extent possible and as quickly as possible,
the net amount of allocations made to each of the Members under Section 4.1 of the Agreement and Sections II.A
through II.E of this Appendix B (and otherwise under Code § 704(b) and the Regulations promulgated thereunder)
and this Section II.F(1), shall be equal to the net amount that would have been allocated to each of the Members solely under
Section 4.1 of the Agreement had the Regulatory Allocations not been applicable. The application of this Section II.F(1) and
the making of curative allocations pursuant hereto shall be made in any reasonable manner determined by the Managing Member, following
consultation with the Company’s tax advisors.

 

    	 	B-6	 

     

    

 

(2)            For
purposes of applying Section II.F(1) above, Regulatory Allocations which constitute allocations of Nonrecourse Deductions
or Member Nonrecourse Deductions shall not be offset by subsequent curative allocations of Profits or items of income or gain comprising
the Profits or Losses of the Company pursuant to Section II.F(1) prior to the first Taxable Year thereafter during which
there is a net decrease in the Company Minimum Gain (or a net decrease in Member Nonrecourse Debt Minimum Gain attributable to a Member
Nonrecourse Debt, as the case may be), and then, shall only be offset by curative allocations pursuant to Section II.F(1),
if the Managing Member reasonably determines that such Regulatory Allocations are not offset (or reasonably likely to be offset) by allocations
(including expected future allocations) of income or gain under Section II.A or Section II.B of this Appendix B.

 

		III.	Excess Nonrecourse Liabilities. For purposes of determining the Members’ proportionate share
of “excess nonrecourse liabilities,” if any, of the Company within the meaning of Regulations § 1.752-3(a)(3) for
any Allocation Period, the Members’ respective interests in Company “profits” shall be in the same proportions that
the Members share Profits during such Allocation Period.

 

		IV.	Tax Treatment of Fees Paid by the Company to Member/Affiliate. For income tax reporting purposes,
any and all fees paid by the Company to any Member and/or any Affiliate thereof, shall be treated as expenses of the Company and, if paid
to a Member, shall be treated as payments made pursuant to § 707(a) of the Code. To the extent that payments of such fees to
any Member or Affiliate thereof (or any other fees or compensation paid to any Member or Affiliate thereof) ultimately are not determined
to be Code § 707(a) payments, the Member receiving such fee or compensation shall be specially allocated gross income of the
Company in an amount equal to the amount of such fee or compensation, and the Member’s Capital Account shall be adjusted to reflect
the payment of such fee or compensation, subject to the next sentence. If the Company’s gross income for an Allocation Period is
less than the amount of such fee or compensation paid in such year, the Member shall be specially allocated gross income of the Company
in the succeeding Allocation Period(s) until the total amount so allocated equals the total amount of such fee or compensation.

 

		V.	Related Matters. Any elections or other decisions relating to such allocations shall be made by
the Managing Member in any manner that reasonably reflects the purpose and intention of this Agreement.

 

		VI.	Deficit Restoration. Notwithstanding any other provision of this Agreement to the contrary, upon
liquidation of a Member’s Membership Interest (whether or not in connection with a liquidation of the Company), no Member shall
have any liability to restore any deficit in any deemed or hypothetical Capital Account. In addition, no allocation to any Member of any
Loss, whether attributable to depreciation or otherwise, shall create any asset of or obligation to the Company, even if that allocation
reduces, or creates or increases a deficit in that Member’s deemed or hypothetical Capital Account; it is also the intent of the
Members that no Member shall be obligated to pay any such amount to or for the account of the Company or any creditor of the Company.
Notwithstanding the foregoing, upon the liquidation of a Member’s Membership Interest, the Company may, with the approval of the
Managing Member, allocate to such Member items of income and gain with respect to the Taxable Year in which such liquidation occurs, and
with respect to any prior Taxable Year to the extent permitted by law, in order to eliminate any such deficit.

 

    	 	B-7	 

     

    

 

APPENDIX C

FORM OF SPOUSAL CONSENT

 

SPOUSAL CONSENT

 

I, _______________________,
spouse of _______________________, acknowledge that I have read the Amended and Restated Limited Liability Company Agreement, dated as
of September 30 2020, by and among Direct Digital Holdings, LLC, a Texas limited liability company (the “Company”),
and the other parties thereto, to which this Spousal Consent (this “Consent”) is attached as Appendix C (as the same
may be amended or amended and restated from time to time, the “Agreement”), and that I understand the contents of the
Agreement. I am aware that my spouse is a party to the Agreement and the Agreement contains provisions regarding the voting and transfer
of the Membership Interests (as defined in the Agreement) of the Company which my spouse may own, including any interest I might have
therein.

 

I hereby agree that I and
any interest, including any community property interest, that I may have in any Membership Interests of the Company subject to the Agreement
shall be irrevocably bound by the Agreement, including any restrictions on the transfer or other disposition of any Membership Interests,
valuation methods, or agreed values for the Membership Interests or voting or other obligations as set forth in the Agreement. I hereby
irrevocably appoint my spouse as my attorney-in-fact with respect to the exercise of any rights and obligations under the Agreement.

 

I agree that, in the event
of divorce or the dissolution of my marriage to my present spouse or other legal division of property, I will transfer and sell,
at the fair market value, to my spouse any and all interest I have or may acquire in the Company, and I further agree that a court may
award such entire interest to my spouse as part of any such legal division of property. The foregoing agreement is not intended as a waiver
of any community property or other ownership interest I may have in the Membership Interests of the Company, but only as an agreement
to accept other property or assets of substantially equivalent value as part of any property settlement agreement or other legal division
of property upon divorce or the dissolution of my marriage.

 

I agree not to bequeath my
interest, if any, in the Membership Interests of the Company, by will, trust, or any other testamentary disposition to any person other
than my current spouse. Further, the residuary clause in my will shall not include my interest, if any, in the Membership Interests of
the Company.

 

I agree not to pledge or encumber
any interest I may have in the Membership Interests of the Company.

 

This Consent shall be binding
on my executors, administrators, heirs, and assigns. I agree to execute and deliver such documents as may be necessary to carry out the
intent of the Agreement and this Consent.

 

I am aware that the legal,
financial, and related matters contained in the Agreement are complex and that I am free to seek independent professional guidance or
counsel with respect to this Consent. I have either sought such guidance or counsel or determined after reviewing the Agreement carefully
that I will waive such right. I am under no disability or impairment that affects my decision to sign this Consent and I knowingly and
voluntarily intend to be legally bound by this Consent. I am satisfied with the terms of this Consent and I understand and have received
full disclosure of all the rights that I am agreeing to waive.

 

I hereby agree that my spouse
may join in any future amendment, waiver, consent, or modification of the Agreement without any further signature, acknowledgment, agreement,
or consent on my part or notice to me.

 

    	 	C-1	 

     

    

 

The undersigned has executed
and delivered this spousal consent as of the date set forth below.

 

	 	Dated to be effective on _____________________, 202_
	 	 
	 	Name:	                              

 

    	 	C-2	 

     

    

 

APPENDIX D

FORM OF ELECTION OF EXCHANGE

 

ELECTION
OF EXCHANGE

 

Direct Digital Holdings, Inc.

1233 West Loop South, Suite 1170

Houston, TX 77027

Email Address: sechard@directdigitalholdings.com

Attention: Susan Echard

 

Direct Digital Holdings, LLC

c/o Direct Digital Holdings, Inc., its manager

1233 West Loop South, Suite 1170

Houston, TX 77027

Email Address: sechard@directdigitalholdins.com

Attention: Susan Echard

 

Reference is hereby made to
the Second Amended and Restated Limited Liability Company Agreement of Direct Digital Holdings, LLC, a Texas limited liability company
(the “Company”), dated as of February [_], 2022 (as amended from time to time, the “LLC Agreement”),
among Direct Digital Holdings, Inc., a Delaware corporation (“PubCo”), the Company, and the Members from time
to time party thereto (each, a “Holder”). Capitalized terms used but not defined herein shall have the meanings given
to them in the LLC Agreement.

 

Effective as of the Exchange
Date as determined in accordance with the LLC Agreement, the undersigned Member hereby transfers and surrenders to the Company the number
of Class A Common Units set forth below and an equal number of shares of Paired Voting Stock held by such Member in exchange for
the issuance to the undersigned Member of that number of shares of Class A Common Stock equal to the number of Class A Common
Units so exchanged (to be issued in its name as set forth below), in accordance with the LLC Agreement. The undersigned hereby acknowledges
that the Exchange of Class A Common Units shall include the cancellation of an equal number of outstanding shares of Paired Voting
Stock held by the undersigned that have been surrendered in such Exchange.

 

	Legal Name of Undersigned Member:	 

	Address:	 

 

	Number of Class A Common Units to be Exchanged:	 

 

If the undersigned Member
desires the shares of Class A Common Stock be settled through the facilities of The Depositary Trust Company (“DTC”),
please indicate the account of the DTC participant below.

 

In the event PubCo elects
to certificate the shares of Class A Common Stock issued to the Member, please indicate the following:

 

	Legal Name for Certificate Delivery:	 

	Address for Certificate Delivery:	 

 

    	 	D-1	 

     

    

 

The undersigned hereby represents
and warrants that (i) the undersigned has full legal capacity to execute and deliver this Election of Exchange and to perform the
undersigned’s obligations hereunder; (ii) this Election of Exchange has been duly executed and delivered by the undersigned
and is the legal, valid and binding obligation of the undersigned enforceable against it in accordance with the terms thereof or hereof,
as the case may be, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and the
availability of equitable remedies; (iii) no consent, approval, authorization, order, registration or qualification of any third
party or with any court or governmental agency or body having jurisdiction over the undersigned, the Class A Common Units, the Paired
Voting Stock or shares of Class A Common Stock subject to this Election of Exchange is required to be obtained by the undersigned
for the transfer of such Class A Common Units, Paired Voting Stock or shares of Class A Common Stock to the Company (or PubCo,
as applicable); (iv) the undersigned has complied with any qualifications or filings required under applicable securities laws; (v) the
undersigned is the owner of the number of Class A Common Units and Paired Voting Stock the undersigned is electing to Exchange pursuant
to this Exchange Notice, and that such Class A Common Units and Paired Voting Stock are not subject to any liens or restrictions
on transfer (other than restrictions imposed by the Agreement, the charter and governing documents of PubCo and applicable Law); (vi) the
undersigned is an accredited investor as such term is defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended;
(vii) the undersigned is either not currently in possession of material non-public information concerning PubCo or its securities
or will not be in possession of such material non-public information at the time the shares of Class A common stock are sold in any
public sale and (viii) the undersigned has consulted with the undersigned’s personal tax advisor regarding the tax consequences
to the undersigned of this Election of Exchange and acknowledges that neither PubCo nor the Company is making any representations or warranties
regarding the tax treatment of this Election of Exchange.

 

The undersigned hereby irrevocably
constitutes and appoints any officer of PubCo, as applicable, as the attorney of the undersigned, with full power of substitution and
resubstitution in the premises, solely to do any and all things and to take any and all actions necessary to effect the Exchange elected
hereby.

 

IN
WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Election of Exchange to be executed and delivered
by the undersigned or by its duly authorized attorney.

 

		Name:	 
	 	 	 
		Dated:	 

 

    	 	D-2Exhibit 10.2

 

Tax
Receivable Agreement

 

between

 

DIRECT
DIGITAL HOLDINGS, Inc.

 

and

 

THE PERSONS NAMED HEREIN

 

Dated as of February 15, 2022

 

     

     

    

 

TABLE OF CONTENTS

 

 

		TAX RECEIVABLE AGREEMENT	1
		RECITALS        	1
		ARTICLE
                            I Definitions	
2

	1.1	 	Definitions	 	2

		Article II
Determination of Certain Realized Tax Benefits	10

	2.1	 	Basis Schedule	 	10
	2.2	 	Tax Benefit Schedule	 	11
	2.3	 	Procedures, Amendments	 	12
	2.4	 	Basis Adjustments	 	13

		Article	III Tax Benefits Payments	13

	3.1	 	Payments	 	13
	3.2	 	No Duplicative Payments	 	14
	3.3	 	Pro Rata Payments	 	14
	3.4	 	Payment Ordering	 	15
	3.5	 	Excess Payments	 	15

		Article	IV Termination	15

	4.1	 	Early Termination of Agreement; Breach of Agreement	 	15
	4.2	 	Early Termination Notice	 	17
	4.3	 	Payment upon Early Termination	 	17

		Article	V Subordination and Late Payments	18

	5.1	 	Subordination	 	18
	5.2	 	Late Payments by the Corporate Taxpayer	 	18

		Article	VI No Disputes; Consistency; Cooperation	18

	6.1	 	Participation in the Corporate Taxpayer’s and OpCo’s Tax Matters	 	18
	6.2	 	Consistency	 	19
	6.3	 	Cooperation	 	19

		Article	VII Miscellaneous	19

	7.1	 	Notices	 	19
	7.2	 	Counterparts	 	20
	7.3	 	Entire Agreement; No Third Party Beneficiary	 	20
	7.4	 	Governing Law	 	20

 

    -i-

     

    

 

	7.5	 	Severability	 	20
	7.6	 	Successors; Assignment; Amendments; Waivers	 	21
	7.7	 	Titles and Subtitles	 	21
	7.8	 	Resolution of Disputes	 	22
	7.9	 	Reconciliation	 	23
	7.10	 	Withholding	 	23
	7.11	 	Admission of the Corporate Taxpayer into a Consolidated Group; Transfers of Corporate Assets	 	24
	7.12	 	Confidentiality	 	25
	7.13	 	Partnership Agreement	 	26
	7.14	 	Change in Law	 	26
	7.15	 	Electronic Signatures	 	26

 

    -ii-

     

    

 

TAX RECEIVABLE AGREEMENT

 

This TAX RECEIVABLE AGREEMENT
(this “Agreement”), is dated as of February 15, 2022, and is between Direct Digital Holdings, Inc., a Delaware
corporation, each of the undersigned parties, and each of the other persons from time to time that becomes a party hereto (each, excluding
the Corporate Taxpayer and OpCo (each as defined below), a “TRA Party” and together the “TRA Parties”).

 

RECITALS

 

WHEREAS, the TRA Parties directly
or indirectly hold Class A Common Units (the “Class A Units”) in Direct Digital Holdings, LLC, a Delaware
limited liability company (“OpCo”), which is classified as a partnership for U.S. federal income Tax purposes;

 

WHEREAS, after the Pre-IPO
Exchanges (as defined in the LLC Agreement), the Corporate Taxpayer will be the sole managing member of OpCo, and will hold, directly
and/or indirectly, all of the Class B Voting Units (the “Class B Units,” and together with the Class A
Units, the “Units”);

 

WHEREAS, from time to time
following the Lock-Up Period (as defined in the LLC Agreement), each holder of Class A Units has the right to require OpCo to redeem
(a “Redemption”) all or a portion of such holder’s Class A Units for, at the Corporate Taxpayer’s
election, cash or shares of Class A common stock of the Corporate Taxpayer (the “Class A Shares”), in either
case contributed to OpCo by the Corporate Taxpayer, provided that, at the election of the Corporate Taxpayer in its sole discretion,
the Corporate Taxpayer may effect a direct exchange (a “Direct Exchange”) of such cash or Class A Shares for such
Class A Units, all in accordance with and subject to the provisions of the LLC Agreement (as defined below);

 

WHEREAS, OpCo and each of
its direct and indirect Subsidiaries (as defined below) treated as a partnership for U.S. federal income Tax purposes currently have and
will have in effect an election under Section 754 of the Code, for each Taxable Year (as defined below) that includes the IPO Date
and for each Taxable Year in which a taxable acquisition (including a deemed taxable acquisition under Section 707(a) of the
Code) of Class A Units by the Corporate Taxpayer or by OpCo from any of the TRA Parties (an “Exchanging Holder”)
for Class A Shares and/or other consideration occurs;

 

WHEREAS, the income, gain,
loss, expense and other Tax items of the Corporate Taxpayer may be affected by the (i) Basis Adjustments and (ii) Imputed Interest
(each as defined below) (collectively, the “Tax Attributes”); and

 

WHEREAS, the parties to this
Agreement desire to provide for certain payments and make certain arrangements with respect to the effect of the Tax Attributes on the
liability for Taxes (as defined below) of the Corporate Taxpayer.

 

NOW, THEREFORE, in consideration
of the foregoing and the respective covenants and agreements set forth herein, and intending to be legally bound hereby, the parties hereto
agree as follows:

 

     

     

    

 

ARTICLE I

Definitions

 

1.1            Definitions.
As used in this Agreement, the terms set forth in this Article I shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined).

 

“Actual Tax Liability”
means, with respect to any Taxable Year, an amount, not less than zero, equal to the actual liability for Taxes of (i) the Corporate
Taxpayer and (ii) without duplication, OpCo (and OpCo’s applicable Subsidiaries), but in the case of this clause (ii), only
with respect to Taxes imposed on OpCo (and OpCo’s applicable Subsidiaries) and allocable to the Corporate Taxpayer; provided, that
the actual liability for Taxes described in clauses (i) and (ii) shall be calculated (a) using the Assumed Rate, solely
for purposes of calculating the U.S. state and local Actual Tax liability of the Corporate Taxpayer, and (b) assuming, solely for
purposes of calculating the liability for U.S. federal income Taxes, in order to prevent double counting, that U.S. state and local Taxes
are not deductible by the Corporate Taxpayer for U.S. federal income Tax purposes.

 

“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 first Person.

 

“Agreed Rate”
means a per annum rate of the lesser of (i) 6.5% and (ii) LIBOR plus 100 basis points.

 

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

 

“Amended Schedule”
has the meaning set forth in Section 2.3(b) of this Agreement.

 

“Assumed Rate”
means, with respect to any Taxable Year, the tax rate equal to the sum of the product of (x) OpCo’s income and franchise Tax
apportionment percentage(s) for each U.S. state and local jurisdiction in which OpCo files income or franchise Tax Returns for the
relevant Taxable Year, and (y) the highest corporate income and franchise Tax rate(s) for each such U.S. state and local jurisdiction
in which OpCo files income or franchise Tax Returns for each relevant Taxable Year; provided, that the Assumed Rate calculated
pursuant to the foregoing shall be reduced by the assumed U.S. federal income Tax benefit received by the Corporate Taxpayer with respect
to U.S. state and local jurisdiction income and franchise Taxes (with such benefit calculated as the product of (a) the Corporate
Taxpayer’s marginal U.S. federal income Tax rate for such Taxable Year and (b) the Assumed Rate (without regard to this proviso)).

 

“Attributable”
means the portion of any Tax Attribute of the Corporate Taxpayer that is “Attributable” to any present or former holder of
Units, other than the Corporate Taxpayer, and shall be determined by reference to the Tax Attributes, under the following principles:

 

(i)            the
Basis Adjustments shall be determined separately with respect to each Exchanging Holder, using reasonable methods for tracking such Basis
Adjustments, and are Attributable to each Exchanging Holder in an amount equal to the total Basis Adjustments relating to such Class A
Units Exchanged by such Exchanging Holder (determined without regard to any dilutive or antidilutive effect of any contribution to or
distribution from OpCo after the date of an applicable Exchange, and taking into account any adjustment under Section 743(b) of
the Code); and

 

(ii)            any
deduction to the Corporate Taxpayer with respect to a Taxable Year in respect of Imputed Interest is Attributable to the Person that is
required to include the Imputed Interest in income (without regard to whether such Person is actually subject to Tax thereon).

 

     2

     

    

 

“Basis Adjustment”
means the adjustment to the Tax basis of a Reference Asset under Sections 732, 734(b), 754 and/or 1012 of the Code (in situations where,
as a result of one or more Exchanges, OpCo becomes an entity that is disregarded as separate from its owner for U.S. federal income Tax
purposes) or under Sections 734(b), 743(b), 754 and/or 755 of the Code (in situations where, following an Exchange, OpCo remains in existence
as an entity treated as a partnership for U.S. federal income Tax purposes) and, in each case, analogous sections of state, local and
foreign Tax laws, as a result of an Exchange and the payments made pursuant to this Agreement in respect of such Exchange. For the avoidance
of doubt, the amount of any Basis Adjustment resulting from an Exchange of one or more Class A Units shall be determined without
regard to any Pre-Exchange Transfer of such Class A Units and as if any such Pre-Exchange Transfer had not occurred. The amount of
any Basis Adjustment shall be determined using the Market Value at the time of the Exchange.

 

“Basis Schedule”
has the meaning set forth in Section 2.1 of this Agreement.

 

“Beneficial Owner”
means, with respect to any security, a Person who directly or indirectly, through any contract, arrangement, understanding, relationship
or otherwise, has or shares: (i) voting power, which includes the power to vote, or to direct the voting of, such security; and/or
(ii) investment power, which includes the power to dispose of, or to direct the disposition of, such security. The term “Beneficial
Ownership” shall have a correlative meaning.

 

“Board”
means the Board of Directors of the Corporate Taxpayer.

 

“Business Day”
means each day that is not a Saturday, Sunday or other day on which banking institutions in Houston, Texas or New York, New York are authorized
or required by law to close.

 

“Change of Control”
means the occurrence of any of the following events:

 

(i)            any
Person or any group of Persons acting together that would constitute a “group” for purposes of Section 13(d) of
the Securities Exchange Act of 1934, as amended or any successor provisions thereto (excluding (a) a corporation or other entity
owned, directly or indirectly, by the stockholders of the Corporate Taxpayer in substantially the same proportions as their ownership
of stock of the Corporate Taxpayer or (b) a group of Persons in which one or more Affiliates of the Founder Member, directly or indirectly
hold Beneficial Ownership of securities representing more than 50% of the total voting power held by such group) is or becomes the Beneficial
Owner, directly or indirectly, of securities of the Corporate Taxpayer representing more than 50% of the combined voting power of the
Corporate Taxpayer’s then outstanding voting securities; or

 

     3

     

    

 

(ii)            the
following individuals cease for any reason to constitute a majority of the number of directors of the Corporate Taxpayer then serving:
individuals who, on the IPO Date, constitute the Board and any new director whose appointment or election by the Board or nomination for
election by the Corporate Taxpayer’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors
then still in office who either were directors on the IPO Date or whose appointment, election or nomination for election was previously
so approved or recommended by the directors referred to in this clause (ii); or

 

(iii)           there
is consummated a merger or consolidation of the Corporate Taxpayer with any other corporation or other entity, and, immediately after
the consummation of such merger or consolidation, either (x) the Board immediately prior to the merger or consolidation does not
constitute at least a majority of the board of directors of the company surviving the merger or, if the surviving company is a Subsidiary,
the ultimate parent thereof, or (y) the voting securities of the Corporate Taxpayer immediately prior to such merger or consolidation
do not continue to represent or are not converted into more than 50% of the combined voting power of the then outstanding voting securities
of the Person resulting from such merger or consolidation or, if the surviving company is a Subsidiary, the ultimate parent thereof; or

 

(iv)           the
stockholders of the Corporate Taxpayer approve a plan of complete liquidation or dissolution of the Corporate Taxpayer or there is consummated
an agreement or series of related agreements for the sale, lease or other disposition, directly or indirectly, by the Corporate Taxpayer
of all or substantially all of the Corporate Taxpayer’s assets, other than such sale or other disposition by the Corporate Taxpayer
of all or substantially all of the Corporate Taxpayer’s assets to an entity at least 50% of the combined voting power of the voting
securities of which are owned by stockholders of the Corporate Taxpayer in substantially the same proportions as their ownership of the
Corporate Taxpayer immediately prior to such sale.

 

Notwithstanding the foregoing,
except with respect to clause (ii) and clause (iii)(x) above, a “Change of Control” shall not be deemed to have
occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record
holders of the shares of the Corporate Taxpayer immediately prior to such transaction or series of transactions continue to have substantially
the same proportionate ownership in, and voting control over, and own substantially all of the shares of, an entity which owns, directly
or indirectly, all or substantially all of the assets of the Corporate Taxpayer immediately following such transaction or series of transactions.

 

“Class A Shares”
has the meaning set forth in the Recitals of this Agreement.

 

“Class A Units”
has the meaning set forth in the Recitals of this Agreement.

 

“Class B Units”
has the meaning set forth in the Recitals of this Agreement.

 

“Code”
means the U.S. Internal Revenue Code of 1986, as amended.

 

“Control”
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise.

 

     4

     

    

 

“Corporate Taxpayer”
means Direct Digital Holdings, Inc. and any successor corporation and shall include any Person that is a member of any consolidated
Tax Return of which Direct Digital Holdings, Inc. is a member.

 

“Corporate Taxpayer
Return” means the U.S. federal income Tax Return of the Corporate Taxpayer filed with respect to Taxes of any Taxable Year,
including any consolidated Tax Return.

 

“Cumulative Net Realized
Tax Benefit” for a Taxable Year means the cumulative amount of Realized Tax Benefits for all Taxable Years of the Corporate
Taxpayer, up to and including such Taxable Year net of the Realized Tax Detriment for the same period. The Realized Tax Benefit and Realized
Tax Detriment for each Taxable Year shall be determined based on the most recent Tax Benefit Schedules or Amended Schedules, if any, in
existence at the time of such determination; provided, that, for the avoidance of doubt, the computation of the Cumulative Net
Realized Tax Benefit shall be adjusted to reflect any applicable Determination with respect to any Realized Tax Benefits and/or Realized
Tax Detriments.

 

“DDM” means
Direct Digital Management, LLC, a Delaware limited liability company.

 

“Default Cap”
has the meaning set forth in Section 3.1(c) of this Agreement.

 

“Default Rate”
means a per annum rate of LIBOR plus 500 basis points.

 

“Determination”
shall have the meaning ascribed to such term in Section 1313(a) of the Code or any other event (including the execution of IRS
Form 870-AD), including a settlement with the applicable Taxing Authority, that establishes the amount of any liability for Tax.

 

“Direct Exchange”
has the meaning set forth in the Recitals of this Agreement.

 

“Dispute”
has the meaning set forth in Section 7.8(a) of this Agreement.

 

“Early Termination
Date” means the date of an Early Termination Notice for purposes of determining the Early Termination Payment.

 

“Early Termination
Effective Date” means the date on which an Early Termination Schedule becomes binding pursuant to Section 4.2 of
this Agreement.

 

“Early Termination
Notice” has the meaning set forth in Section 4.2 of this Agreement.

 

“Early Termination
Payment” has the meaning set forth in Section 4.3(b) of this Agreement.

 

“Early Termination
Rate” means the lesser of (i) 6.5% and (ii) LIBOR plus 100 basis points.

 

“Early Termination
Schedule” has the meaning set forth in Section 4.2 of this Agreement.

 

     5

     

    

 

“Exchange”
means any taxable acquisition (including a deemed taxable acquisition under Section 707(a) of the Code) of Class A Units
by the Corporate Taxpayer in exchange for Class A Shares and/or other consideration, and any deemed Exchange of Units pursuant to
this Agreement.

 

“Exchange Date”
means the date of any Exchange.

 

“Exchanging Holder”
has the meaning set forth in the Recitals of this Agreement.

 

“Expert”
has the meaning set forth in Section 7.9 of this Agreement.

 

“Founder Member”
means DDM and its permitted transferees.

 

“Future TRAs”
has the meaning set forth in Section 5.1 of this Agreement.

 

“Hypothetical Tax
Liability” means, with respect to any Taxable Year, an amount, not less than zero, equal to the liability for Taxes of (i) the
Corporate Taxpayer and (ii) without duplication, OpCo (and OpCo’s applicable Subsidiaries), but in the case of this clause
(ii) only with respect to Taxes imposed on OpCo (and OpCo’s applicable Subsidiaries) and allocable to the Corporate Taxpayer,
in each case using the same methods, elections, conventions, and practices used on the relevant Tax Return of the Corporate Taxpayer,
but (a) using the Non-Stepped Up Tax Basis as reflected on the Basis Schedule including amendments thereto for the Taxable Year,
(b) excluding any deduction attributable to Imputed Interest attributable to any payment made under this Agreement for the Taxable
Year, (c) using the Assumed Rate, solely for purposes of calculating the U.S. state and local Hypothetical Tax Liability of the Corporate
Taxpayer, and (d) assuming, solely for purposes of calculating the liability for U.S. federal income Taxes, in order to prevent double
counting, that U.S. state and local Taxes are not deductible by the Corporate Taxpayer for U.S. federal income Tax purposes. For the avoidance
of doubt, Hypothetical Tax Liability shall be determined without taking into account the carryover or carryback of any Tax item (or portions
thereof) that is attributable to a Tax Attribute as applicable.

 

“Imputed Interest”
in respect of a TRA Party shall mean any interest imputed under Section 1272, 1274, 7872 or 483 or other provision of the Code with
respect to the Corporate Taxpayer’s payment obligations in respect of such TRA Party under this Agreement.

 

“Interest Amount”
has the meaning set forth in Section 3.1(b) of this Agreement.

 

“IPO” means
the initial public offering of Class A Shares by the Corporate Taxpayer (including any greenshoe related to such initial public offering).

 

“IPO Date”
means the initial closing date of the IPO.

 

“IRS” means
the U.S. Internal Revenue Service.

 

“Joinder”
has the meaning set forth in Section 7.6(a) of this Agreement.

 

     6

     

    

 

“LIBOR”
means during any period, the rate which appears on the Bloomberg Page BBAM1 (or on such other substitute Bloomberg page that
displays rates at which U.S. dollar deposits are offered by leading banks in the London interbank deposit market), or the rate which is
quoted by another source selected by the Corporate Taxpayer as an authorized information vendor for the purpose of displaying rates at
which U.S. dollar deposits are offered by leading banks in the London interbank deposit market (an “Alternate Source”),
at approximately 11:00 a.m., London time, two (2) Business Days prior to the first day of such period as the London interbank offered
rate for U.S. dollars having a borrowing date and a maturity comparable to such period or, if such period is longer than one year, the
London interbank offered rate for U.S. dollars having a maturity of one year (or if there shall at any time, for any reason, no longer
exist a Bloomberg Page BBAM1 (or any substitute page) or any LIBOR Alternate Source, a comparable replacement rate determined by
the Corporate Taxpayer at such time, which determination shall be conclusive absent manifest error); provided, that at no time shall LIBOR
be less than 0%. If the Corporate Taxpayer has made the determination (such determination to be conclusive absent manifest error) that
(i) LIBOR is no longer a widely recognized benchmark rate for newly originated loans in the U.S. loan market in U.S. dollars or (ii) the
applicable supervisor or administrator (if any) of LIBOR has made a public statement identifying a specific date after which LIBOR shall
no longer be used for determining interest rates for loans in the U.S. loan market in U.S. dollars, then the Corporate Taxpayer shall,
subject to the prior written consent of the TRA Party Representative, which consent shall not be unreasonably withheld, conditioned or
delayed, establish a replacement interest rate (the “Replacement Rate”), after giving due consideration to any evolving
or then prevailing conventions for similar loans in the U.S. loan market in U.S. dollars for such alternative benchmark, and including
any mathematical or other adjustments to such benchmark giving due consideration to any evolving or then prevailing convention for similar
loans in the U.S. loan market in U.S. dollars for such benchmark, which adjustment, method for calculating such adjustment and benchmark
shall be published on an information service as selected from time to time by the Corporate Taxpayer. The Replacement Rate shall, subject
to the next two sentences, replace LIBOR for all purposes under this Agreement. In connection with the establishment and application of
the Replacement Rate, this Agreement shall be amended solely with the consent of the Corporate Taxpayer and OpCo, as may be necessary
or appropriate, in the reasonable judgment of the Corporate Taxpayer, to effect the provisions of this definition. The Replacement Rate
shall be applied in a manner consistent with market practice; provided that, in each case, to the extent such market practice is not administratively
feasible for the Corporate Taxpayer, such Replacement Rate shall be applied as otherwise reasonably determined by the Corporate Taxpayer.

 

“LLC Agreement”
means, with respect to OpCo, the Second Amended and Restated Limited Liability Company Agreement of OpCo, dated on or about the date hereof,
as such agreement may be further amended, restated, supplemented and/or otherwise modified from time to time.

 

“Market Value”
shall mean, (i) with respect to an Exchange, the value of the Class A Shares on the applicable Exchange Date determined by the
Corporate Taxpayer on a reasonable and consistent basis and used by the Corporate Taxpayer in its U.S. federal income Tax reporting with
respect to such Exchange, and (ii) with respect to a deemed Exchange pursuant to Valuation Assumption (6), (A) if the Class A
Shares trade on a National Securities Exchange (as defined in the LLC Agreement) or automated or electronic quotation system, the arithmetic
average of the high trading price on such date (or if such date is not a Trading Day (as used in this definition, as defined in the LLC
Agreement), the immediately preceding Trading Day) and the low trading price on such date (or if such date is not a Trading Day, the immediately
preceding Trading Day) or (B) if the Class A Shares are not then traded on a National Securities Exchange or automated or electronic
quotation system, as applicable, the Appraiser FMV (as defined in the LLC Agreement) of one (1) Class A Share on such date.

 

     7

     

    

 

“Material Objection
Notice” has the meaning set forth in Section 4.2 of this Agreement.

 

“Net Tax Benefit”
has the meaning set forth in Section 3.1(b) of this Agreement.

 

“Non-Stepped Up Tax
Basis” means, with respect to any Reference Asset at any time, the Tax basis that such asset would have had at such time if
no Basis Adjustments had been made.

 

“Objection Notice”
has the meaning set forth in Section 2.3(a) of this Agreement.

 

“OpCo”
has the meaning set forth in the Recitals of this Agreement.

 

“Opt-Out Notice”
has the meaning set forth in Section 4.1(c) of this Agreement.

 

“Person”
means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association, organization,
governmental entity or other entity.

 

“Pre-Exchange Transfer”
means any transfer (including upon death) or distribution in respect of one or more Units (i) that occurs prior to an Exchange of
such Units, and (ii) to which Section 734(b) or 743(b) of the Code applies.

 

“Realized Tax Benefit”
means, for a Taxable Year, the excess, if any, of the Hypothetical Tax Liability over the Actual Tax Liability of (i) the Corporate
Taxpayer and (ii) without duplication, OpCo (and OpCo’s applicable Subsidiaries), but only with respect to Taxes imposed on
OpCo (and OpCo’s applicable Subsidiaries) that are allocable to the Corporate Taxpayer under Section 704 of the Code. If all
or a portion of the Actual Tax Liability for the Taxable Year arises as a result of an audit by a Taxing Authority of any Taxable Year,
such liability shall not be included in determining the Realized Tax Benefit unless and until there has been a Determination.

 

“Realized Tax Detriment”
means, for a Taxable Year, the excess, if any, of the Actual Tax Liability over the Hypothetical Tax Liability of (i) the Corporate
Taxpayer and (ii) without duplication, OpCo (and OpCo’s applicable Subsidiaries), but only with respect to Taxes imposed on
OpCo (and OpCo’s applicable Subsidiaries) that are allocable to the Corporate Taxpayer under Section 704 of the Code. If all
or a portion of the Actual Tax Liability for the Taxable Year arises as a result of an audit by a Taxing Authority of any Taxable Year,
such liability shall not be included in determining the Realized Tax Detriment unless and until there has been a Determination.

 

“Reconciliation Dispute”
has the meaning set forth in Section 7.9 of this Agreement.

 

“Reconciliation Procedures”
has the meaning set forth in Section 2.3(a) of this Agreement.

 

“Redemption”
has the meaning set forth in the Recitals of this Agreement.

 

     8

     

    

 

“Reference Asset”
means any tangible or intangible asset that is held by OpCo, or by any of its direct or indirect Subsidiaries treated as a partnership
or disregarded entity (but only to the extent such indirect Subsidiaries are held through Subsidiaries treated as partnerships or disregarded
entities) for purposes of the applicable Tax, at the time of an Exchange. A Reference Asset also includes any asset that is “substituted
basis property” under Section 7701(a)(42) of the Code with respect to a Reference Asset. For the avoidance of doubt, a Reference
Asset does not include an asset held directly or indirectly by a Subsidiary treated as a corporation for U.S. federal income Tax purposes.

 

“Schedule”
means any of the following: (i) a Basis Schedule; (ii) a Tax Benefit Schedule; or (iii) the Early Termination Schedule.

 

“Senior Obligations”
has the meaning set forth in Section 5.1 of this Agreement.

 

“Subsidiaries”
means, with respect to any Person, as of any date of determination, any other Person as to which such Person, owns, directly or indirectly,
or otherwise controls more than 50% of the voting power or other similar interests or the sole general partner interest or managing member
or similar interest of such Person.

 

“Subsidiary Stock”
means stock or other equity interest in a Subsidiary of OpCo that is treated as a corporation for U.S. federal income Tax purposes.

 

“Tax Attributes”
has the meaning set forth in the Recitals of this Agreement.

 

“Tax Benefit Payment”
has the meaning set forth in Section 3.1(b) of this Agreement.

 

“Tax Benefit Schedule”
has the meaning set forth in Section 2.2 of this Agreement.

 

“Tax Return”
means any return, declaration, report or similar statement filed or required to be filed with respect to Taxes (including any attached
schedules), including, without limitation, any information return, claim for refund, amended return and declaration of estimated Tax.

 

“Taxable Year”
means a taxable year of the Corporate Taxpayer as defined in Section 441(b) of the Code or comparable section of state or local
Tax law, as applicable (and, therefore, for the avoidance of doubt, may include a period of less than twelve (12) months for which a Tax
Return is made), ending after the IPO Date.

 

“Taxes”
means any and all U.S. federal, state, local and foreign taxes, assessments or similar charges that are based on or measured with respect
to net income or profits (including alternative minimum taxes and any franchise taxes that are based on or measured by net income or profits),
and any interest related to such Tax.

 

“Taxing Authority”
means any domestic, federal, national, state, county or municipal or other local government, any subdivision, agency, commission or authority
thereof, or any quasi-governmental body exercising any taxing authority or any other authority exercising Tax regulatory authority.

 

“TRA Party”
has the meaning set forth in the Preamble to this Agreement.

 

     9

     

    

 

“TRA Party Representative”
means Mark D. Walker.

 

“Treasury Regulations”
means the final, temporary and proposed regulations under the Code promulgated from time to time (including corresponding provisions and
succeeding provisions) as in effect for the relevant taxable period.

 

“Units”
has the meaning set forth in the Recitals of this Agreement.

 

“Valuation Assumptions”
shall mean, as of an Early Termination Date, the assumptions that in each Taxable Year ending on or after such Early Termination Date,
(1) the Corporate Taxpayer will have taxable income sufficient to fully utilize the Tax items arising from the Tax Attributes (other
than any items addressed in clause (2) below) during such Taxable Year or future Taxable Years (including, for the avoidance of doubt,
Basis Adjustments and Imputed Interest that would result from future payments made under this Agreement that would be paid in accordance
with the Valuation Assumptions) in which such deductions would become available, (2) loss carryovers generated by deductions arising
from any Tax Attributes or Imputed Interest that are available as of the date of such Early Termination Date will be used by the Corporate
Taxpayer on a pro rata basis from the date of such Early Termination Date through the earlier of (x) the scheduled expiration date
under applicable Tax law of such loss carryovers or (y) the fifth (5th) anniversary of the Early Termination Date, (3) the U.S.
federal income Tax rates that will be in effect for each such Taxable Year will be those specified for each such Taxable Year by the Code
and other law as in effect on the Early Termination Date, the Assumed Rate will be calculated based on such rates and the apportionment
factors applicable in the most recently ended Taxable Year (except to the extent any change to such Tax rates has already been enacted
into law), and LIBOR or the Replacement Rate, as applicable, that will be in effect for each such Taxable Year will be the rate in effect
on the Early Termination Date, (4) any non-amortizable, non-depreciable assets (other than any Subsidiary Stock) will be disposed
of on the fifteenth (15th) anniversary of the applicable Exchange and any cash equivalents will be disposed of twelve (12) months following
the Early Termination Date, unless such date has passed in which case such assets will be deemed disposed of on the fifth (5th) anniversary
of the Early Termination Date; provided, that in the event of a Change of Control, such non-amortizable, non-depreciable assets
shall be deemed disposed of at the time of sale (if applicable) of the relevant asset in the Change of Control (if earlier than such fifteenth
(15th) anniversary), (5) any Subsidiary Stock will not be deemed to be disposed unless actually disposed, and (6) if, at the
Early Termination Date, there are Units that have not been Exchanged, then each such Unit shall be deemed Exchanged for the Market Value
(as determined in accordance with clause (ii) of the definition thereof) of the Class A Shares that would be transferred if
the Exchange occurred on the Early Termination Date.

 

Article II

Determination of Certain Realized Tax Benefits

 

2.1            Basis
Schedule. Within ninety (90) calendar days after the due date (including extensions) of IRS Form 1120 (or any successor form)
of the Corporate Taxpayer for each relevant Taxable Year, the Corporate Taxpayer shall deliver to the TRA Party Representative a schedule
(the “Basis Schedule”) that shows, in reasonable detail necessary to perform the calculations required by this Agreement,
(i) the Non-Stepped Up Tax Basis of the Reference Assets as of each applicable Exchange Date, if any, (ii) the Basis Adjustment
with respect to the Reference Assets as a result of the Exchanges effected in such Taxable Year or any prior Taxable Year, if any, calculated
(1) in the aggregate and (2) with respect to Exchanges by each TRA Party, and (iii) the period (or periods) over which
each such Basis Adjustment is amortizable and/or depreciable. All costs and expenses incurred in connection with the provision and preparation
of the Basis Schedules and Tax Benefit Schedules under this Agreement shall be borne by OpCo.

 

     10

     

    

 

2.2            Tax
Benefit Schedule.

 

(a)            Tax
Benefit Schedule. Within ninety (90) calendar days after the due date (including extensions) of IRS Form 1120 (or any successor
form) of the Corporate Taxpayer for any Taxable Year in which there is a Realized Tax Benefit or a Realized Tax Detriment, the Corporate
Taxpayer shall provide to the TRA Party Representative a schedule showing, in reasonable detail, the calculation of the Realized Tax Benefit
and Tax Benefit Payment, or the Realized Tax Detriment, as applicable, in respect of each TRA Party for such Taxable Year (a “Tax
Benefit Schedule”). Each Tax Benefit Schedule will become final as provided in Section 2.3(a) and may be amended
as provided in Section 2.3(b) (subject to the procedures set forth in Section 2.3(b)).

 

(b)            Applicable
Principles. Subject to Section 3.3, the Realized Tax Benefit (or the Realized Tax Detriment) for each Taxable Year is
intended to measure the decrease (or increase) in the actual liability for Taxes of the Corporate Taxpayer for such Taxable Year attributable
to the Tax Attributes, determined using a “with and without” methodology. Carryovers or carrybacks of any Tax item attributable
to any of the Tax Attributes shall be considered to be subject to the rules of the Code and the Treasury Regulations or the appropriate
provisions of U.S. state and local Tax law, as applicable, governing the use, limitation and expiration of carryovers or carrybacks of
the relevant type. If a carryover or carryback of any Tax item includes a portion that is attributable to any Tax Attribute (“TRA
Portion”) and another portion that is not (“Non-TRA Portion”), such portions shall be considered to be used
in accordance with the “with and without” methodology so that the amount of any Non-TRA Portion is deemed utilized, to the
extent available, prior to the amount of any TRA Portion, to the extent available (with the TRA Portion being applied on a proportionate
basis consistent with the provisions of Section 3.3). For the avoidance of doubt, the Corporate Taxpayer shall be entitled
to make reasonable simplifying assumptions in making determinations contemplated by this Agreement, including reasonable assumptions regarding
basis recovery periods based on available balance sheet information and including the assumption that the Assumed Rate is to be applied
against the amount of taxable income of the Corporate Taxpayer for U.S. federal income Tax purposes that is used in calculating the Actual
Tax Liability and the Hypothetical Tax Liability (and the parties hereby agree that that the Corporate Taxpayer’s determination
of the Realized Tax Benefit and Realized Tax Detriment with respect to U.S. state and local Taxes will not take into account jurisdiction-specific
U.S. state and local adjustments to the U.S. federal taxable income base or to the U.S. federal rules regarding the utilization of
Tax attribute carryovers). The parties agree that (A) all Tax Benefit Payments (other than the portion of the Tax Benefit Payments
treated as Imputed Interest) attributable to the Basis Adjustments will be treated as subsequent upward purchase price adjustments that
have the effect of creating additional Basis Adjustments to Reference Assets for the Corporate Taxpayer in the year of payment, (B) as
a result, such additional Basis Adjustments will be incorporated into the current year calculation and into future year calculations,
as appropriate, on an iterative basis continuing until any incremental Basis Adjustment is immaterial as reasonably determined by the
TRA Party Representative and the Corporate Taxpayer in good faith, (C) the Actual Tax Liability will take into account the deduction
of the portion of the Tax Benefit Payment that must be accounted for as Imputed Interest, and (D) the liability for U.S. federal
income Taxes of the Corporate Taxpayer and the amount of taxable income of the Corporate Taxpayer for U.S. federal income Tax purposes
as determined for purposes of calculating the Actual Tax Liability and the Hypothetical Tax Liability shall include, without duplication,
such liability for U.S. federal income Taxes and such U.S. federal taxable income that is economically borne by or allocated to the Corporate
Taxpayer as a result of the provisions of Section 4.6(d) of the LLC Agreement; provided, however, that such liability for Taxes
and such taxable income shall be included in the Hypothetical Tax Liability and the Actual Tax Liability subject to the adjustments and
assumptions set forth in the definitions thereof and, to the extent any such amount is taken into account on an Amended Schedule, such
amount shall adjust a Tax Benefit Payment, as applicable, in accordance with Section 2.3(b).

 

     11

     

    

 

2.3            Procedures,
Amendments.

 

(a)            Procedures.
Every time the Corporate Taxpayer delivers to the TRA Party Representative an applicable Schedule under this Agreement, including any
Amended Schedule delivered pursuant to Section 2.3(b), and any Early Termination Schedule or amended Early Termination Schedule,
the Corporate Taxpayer shall also (x) deliver to the TRA Party Representative supporting schedules and work papers, as determined
by the Corporate Taxpayer or as reasonably requested by the TRA Party Representative, providing reasonable detail regarding data and calculations
that were relevant for purposes of preparing the Schedule and (y) allow the TRA Party Representative reasonable access at no cost
to the appropriate representatives at the Corporate Taxpayer, as determined by the Corporate Taxpayer or as reasonably requested by the
TRA Party Representative, in connection with a review of such Schedule. Without limiting the generality of the preceding sentence, the
Corporate Taxpayer shall ensure that any Tax Benefit Schedule that is delivered to the TRA Party Representative, along with any supporting
schedules and work papers, provides a reasonably detailed presentation of the calculation of the Actual Tax Liability and the Hypothetical
Tax Liability and identifies any material assumptions or operating procedures or principles that were used for purposes of such calculations.
An applicable Schedule or amendment thereto shall become final and binding on all parties thirty (30) calendar days from the date on which
the TRA Party Representative is treated as having received the applicable Schedule or amendment thereto under Section 7.1
unless the TRA Party Representative (i) within thirty (30) calendar days from such date provides the Corporate Taxpayer with written
notice of a material objection to such Schedule (“Objection Notice”) made in good faith or (ii) provides a written
waiver of such right of any Objection Notice within the period described in clause (i) above, in which case such Schedule or amendment
thereto becomes binding on the date the waiver is received by the Corporate Taxpayer. If the Corporate Taxpayer and the TRA Party Representative,
for any reason, are unable to successfully resolve the issues raised in the Objection Notice within thirty (30) calendar days after receipt
by the Corporate Taxpayer of an Objection Notice, the Corporate Taxpayer and the TRA Party Representative shall employ the reconciliation
procedures as described in Section 7.9 of this Agreement (the “Reconciliation Procedures”).

 

     12

     

    

 

(b)            Amended
Schedule. The applicable Schedule for any Taxable Year may be amended from time to time by the Corporate Taxpayer (i) in connection
with a Determination affecting such Schedule, (ii) to correct material inaccuracies in the Schedule identified as a result of the
receipt of additional factual information relating to a Taxable Year after the date the Schedule was provided to the TRA Party Representative,
(iii) to comply with an Expert’s determination under the Reconciliation Procedures, (iv) to reflect a change in the Realized
Tax Benefit, or the Realized Tax Detriment for such Taxable Year attributable to a carryback or carryforward of a loss or other Tax item
to such Taxable Year, (v) to reflect a change in the Realized Tax Benefit or the Realized Tax Detriment for such Taxable Year attributable
to an amended Tax Return filed for such Taxable Year or (vi) to adjust an applicable TRA Party’s Basis Schedule to take into
account payments made pursuant to this Agreement (any such Schedule, an “Amended Schedule”). The Corporate Taxpayer
shall provide an Amended Schedule to the TRA Party Representative when the Corporate Taxpayer delivers the Basis Schedule for the following
taxable year.

 

2.4            Basis
Adjustments.

 

(a)            Basis
Adjustments. The parties to this Agreement acknowledge and agree to treat (A) to the fullest extent permitted by law each Direct
Exchange as giving rise to Basis Adjustments and (B) to the fullest extent permitted by law each Redemption using cash or Class A
Shares contributed to OpCo by the Corporate Taxpayer as a direct purchase of Class A Units by the Corporate Taxpayer from the applicable
TRA Party pursuant to Section 707(a)(2)(B) of the Code as giving rise to Basis Adjustments.

 

(b)            Section 754
Election. The Corporate Taxpayer shall ensure that, on and after the date hereof for each taxable year in which an Exchange may occur,
and each direct and indirect Subsidiary of OpCo that is treated as a partnership for U.S. federal income Tax purposes will have in effect
an election under Section 754 of the Code (and under any similar provision of applicable U.S. state or local law).

 

Article III

Tax Benefits Payments

 

3.1            Payments.

 

(a)            Payments.
Within five (5) Business Days after a Tax Benefit Schedule delivered to the TRA Party Representative becomes final in accordance
with Section 2.3(a) and Section 7.9, if applicable, the Corporate Taxpayer shall pay each TRA Party for
the applicable Taxable Year the Tax Benefit Payment determined pursuant to Section 3.1(b) that is Attributable to such
TRA Party. Each such Tax Benefit Payment shall be made by wire transfer of immediately available funds to the bank account previously
designated by such TRA Party to the Corporate Taxpayer or as otherwise agreed by the Corporate Taxpayer and such TRA Party. For the avoidance
of doubt, (x) no Tax Benefit Payment shall be made in respect of estimated Tax payments, including, without limitation, U.S. federal
estimated income Tax payments and (y) the payments provided for pursuant to the above sentence shall be computed separately for
each TRA Party. A separate Capital Account shall be maintained for each Member, including any Member who shall hereafter acquire an interest
in the Company.

 

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(b)            A
 “Tax Benefit Payment” in respect of a TRA Party for a Taxable Year means an amount, not less than zero, equal to the
Net Tax Benefit that is Attributable to such TRA Party and the Interest Amount with respect thereto. For the avoidance of doubt, for
tax purposes, the Interest Amount shall not be treated as interest, but instead, shall be treated as additional consideration in the
applicable transaction, unless otherwise required by law. Subject to Section 3.3, the “Net Tax Benefit”
for a Taxable Year shall be an amount equal to the excess, if any, of 85% of the Cumulative Net Realized Tax Benefit as of the end of
such Taxable Year, over the total amount of payments previously made under the first sentence of Section 3.1(a) (excluding
payments attributable to Interest Amounts); provided, for the avoidance of doubt, that no such recipient shall be required to
return any portion of any previously made Tax Benefit Payment. Notwithstanding anything to the contrary in this Agreement, the parties
acknowledge and agree that the determination of the portion of the Tax Benefit Payment to be paid to a TRA Party under this Agreement
with respect to U.S. state and local Taxes shall not require separate “with and without” calculations in respect of each
applicable U.S. state and local Tax jurisdiction but rather will be based on the U.S. federal taxable income or gain for such taxable
year reported on the Corporate Taxpayer’s IRS Form 1120 (or any successor form) and the Assumed Rate. The “Interest
Amount” shall equal the interest on the Net Tax Benefit calculated at the Agreed Rate from the due date (without extensions)
for filing IRS Form 1120 (or any successor form) of the Corporate Taxpayer with respect to Taxes for such Taxable Year until the
payment date under Section 3.1(a). Notwithstanding the foregoing, for each Taxable Year ending on or after the date of a
Change of Control that occurs after the IPO Date, all Tax Benefit Payments shall be calculated by utilizing Valuation Assumptions (1),
(2), (4) and (5), substituting in each case the terms “date of a Change of Control” for an “Early Termination
Date.”

 

(c)            Notwithstanding
anything herein to the contrary, the aggregate payments to a TRA Party under this Agreement in respect of an Exchange shall not exceed
60% of the fair market value of the initial consideration received by a TRA Party on such Exchange (the “Default Cap”),
provided that, if a TRA Party delivers written notification before the end of its taxable year that includes the Exchange to the Corporate
Taxpayer of a stated maximum selling price (within the meaning of Treasury Regulation 15A.453-1(c)(2)), the amount of the initial consideration
received in connection with the applicable Exchange and the aggregate Tax Benefit Payments to such TRA Party in respect of such Exchange
(other than amounts accounted for as interest under the Code) shall not exceed such stated maximum selling price, and the Default Cap
shall not apply with respect to such TRA Party.

 

3.2            No
Duplicative Payments. It is intended that the provisions of this Agreement will not result in duplicative payment of any amount (including
interest) required under this Agreement. The provisions of this Agreement shall be construed in the appropriate manner to ensure such
intentions are realized.

 

3.3            Pro
Rata Payments. Notwithstanding anything in Section 3.1 to the contrary, to the extent that the aggregate Realized Tax
Benefit of the Corporate Taxpayer with respect to the Tax Attributes is limited in a particular Taxable Year because the Corporate Taxpayer
does not have sufficient taxable income, the Net Tax Benefit of the Corporate Taxpayer shall collectively be allocated among all parties
eligible for Tax Benefit Payments under this Agreement in proportion to the amount of Net Tax Benefit, as such term is defined in this
Agreement, that would have been Attributable to each such party if the Corporate Taxpayer had sufficient taxable income so that there
were no such limitation.

 

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3.4            Payment
Ordering. If for any reason the Corporate Taxpayer does not fully satisfy its payment obligations to make all Tax Benefit Payments
due under this Agreement in respect of a particular Taxable Year, then the Corporate Taxpayer and the TRA Parties agree that (i) Tax
Benefit Payments for such Taxable Year shall be allocated to all parties eligible for Tax Benefit Payments under this Agreement in proportion
to the amounts of Net Tax Benefit, respectively, that would have been Attributable to each TRA Party if the Corporate Taxpayer had sufficient
cash available to make such Tax Benefit Payments and (ii) no Tax Benefit Payments shall be made in respect of any Taxable Year until
all Tax Benefit Payments to all TRA Parties in respect of all prior Taxable Years have been made in full.

 

3.5            Excess
Payments. To the extent the Corporate Taxpayer makes a payment to a TRA Party in respect of a particular Taxable Year under Section 3.1(a) of
this Agreement (taking into account Section 3.3 and Section 3.4) in an amount in excess of the amount of such
payment that should have been made to such TRA Party in respect of such Taxable Year, then (i) such TRA Party shall not receive
further payments under Section 3.1(a) until such TRA Party has foregone a cumulative amount of payments equal to such
excess and (ii) the Corporate Taxpayer will pay the amount of such TRA Party’s foregone payments to the other Persons to whom
a payment is due under this Agreement and that have not received any such excess payment in a manner such that each such Person to whom
a payment is due under this Agreement, to the maximum extent possible, receives aggregate payments under Section 3.1(a) (taking
into account Section 3.3 and Section 3.4) in the amount it would have received if there had been no excess payment
to such TRA Party.

 

Article IV

Termination

 

4.1            Early
Termination of Agreement; Breach of Agreement.

 

(a)            The
Corporate Taxpayer may terminate this Agreement with respect to all amounts payable to the TRA Parties and with respect to all of the
Class A Units held by the TRA Parties at any time by paying to each TRA Party the Early Termination Payment in respect of such TRA
Party; provided, however, that this Agreement shall only terminate upon the receipt of the Early Termination Payment by
all TRA Parties, and provided, further, that the Corporate Taxpayer may withdraw any notice to execute its termination
rights under this Section 4.1(a) prior to the time at which any Early Termination Payment has been paid. Upon payment
of the Early Termination Payment by the Corporate Taxpayer, none of the TRA Parties or the Corporate Taxpayer shall have any further
payment obligations under this Agreement, other than for any (a) Tax Benefit Payments due and payable and that remain unpaid as
of the Early Termination Notice and (b) Tax Benefit Payment due for the Taxable Year ending with or including the date of the Early
Termination Notice (except to the extent that the amount described in clause (b) is included in the Early Termination Payment).
If an Exchange occurs after the Corporate Taxpayer makes all of the required Early Termination Payments, the Corporate Taxpayer shall
have no obligations under this Agreement with respect to such Exchange.

 

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(b)            In
the event that the Corporate Taxpayer (1) materially breaches any of its material obligations under this Agreement, whether as a
result of failure to make any payment when due, failure to honor any other material obligation required hereunder or by operation of
law as a result of the rejection of this Agreement in a case commenced under the Bankruptcy Code or otherwise or (2)(A) shall commence
any case, proceeding or other action (i) under any existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking
to adjudicate a bankruptcy or insolvency, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition
or other relief with respect to it or its debts or (ii) seeking an appointment of a receiver, trustee, custodian, conservator or
other similar official for it or for all or any substantial part of its assets, or it shall make a general assignment for the benefit
of creditors or (B) there shall be commenced against the Corporate Taxpayer any case, proceeding or other action of the nature referred
to in clause (A) above that remains undismissed or undischarged for a period of sixty (60) calendar days, all obligations hereunder
shall be automatically accelerated and shall be immediately due and payable, and such obligations shall be calculated as if an Early
Termination Notice had been delivered on the date of such breach and shall include, but not be limited to, (1) the Early Termination
Payments calculated as if an Early Termination Notice had been delivered on the date of a breach, (2) any Tax Benefit Payment due
and payable and that remains unpaid as of the date of a breach, and (3) any Tax Benefit Payment in respect of any TRA Party due
for the Taxable Year ending with or including the date of a breach; provided that procedures similar to the procedures of Section 4.2
shall apply with respect to the determination of the amount payable by the Corporate Taxpayer pursuant to this sentence. Notwithstanding
the foregoing (other than as set forth in subsection (2) above), in the event that the Corporate Taxpayer breaches this Agreement,
each TRA Party shall be entitled to elect to receive the amounts set forth in clauses (1), (2) and (3) above or to seek specific
performance of the terms hereof. The parties agree that the failure to make any payment due pursuant to this Agreement within three (3) months
of the date such payment is due shall be deemed to be a material breach of a material obligation under this Agreement for all purposes
of this Agreement, and that it will not be considered to be a material breach of a material obligation under this Agreement to make a
payment due pursuant to this Agreement within three (3) months of the date such payment is due. Notwithstanding anything in this
Agreement to the contrary, it shall not be a material breach of a material obligation of this Agreement if the Corporate Taxpayer fails
to make any Tax Benefit Payment when due to the extent that the Corporate Taxpayer has insufficient funds to make such payment; provided,
(i) the Corporate Taxpayer has used reasonable efforts to obtain such funds and (ii) that the interest provisions of Section 5.2
shall apply to such late payment (unless the Corporate Taxpayer does not have sufficient funds to make such payment as a result of
limitations imposed by any Senior Obligations, in which case Section 5.2 shall apply, but the Default Rate shall be replaced
by the Agreed Rate); provided further, for the avoidance of doubt, the last sentence of this Section 4.1(b) shall not
apply to any payments due pursuant to the acceleration upon a Change of Control contemplated by Section 4.1(c).

 

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(c)            The
Corporate Taxpayer shall provide written notice to the TRA Party Representative thirty (30) days in advance of the closing of any Change
of Control, and the TRA Party Representative shall have the option, upon written notice to the Corporate Taxpayer (“Opt-Out
Notice”) within twenty (20) days thereafter, to cause its respective TRA Parties to continue as TRA Parties under this Agreement
after such Change of Control, in which case each such TRA Party will not be entitled to receive the amounts set forth in the remainder
of this Section 4.1(c), and Valuation Assumptions (1), (2), (4) and (5) shall apply to Tax Benefit Payments to
each such TRA Party following the closing of such Change of Control. Notwithstanding anything to the contrary in the foregoing sentence
in this Section 4.1(c), if an Opt-Out Notice is not timely provided with respect to a TRA Party, all obligations hereunder
will be accelerated and such obligations shall be calculated as if an Early Termination Notice had been delivered on the date of such
Change of Control and shall include (1) the Early Termination Payments calculated with respect to such TRA Parties as if the Early
Termination Date is the date of such Change of Control, (2) any Tax Benefit Payment due and payable and that remains unpaid as of
the date of such Change of Control, and (3) any Tax Benefit Payment in respect of any TRA Party due for the Taxable Year ending
with or including the date of such Change of Control. If an Opt-Out Notice is not timely provided with respect to a TRA Party, (i) such
TRA Party shall be entitled to receive the amounts set forth in clauses (1), (2) and (3) of the preceding sentence, (ii) any
Early Termination Payment described in the preceding sentence shall be calculated utilizing Valuation Assumptions (1), (2), (3), (4),
(5) and (6), substituting in each case the terms “date of a Change of Control” for an “Early Termination Date,”
and (iii) Section 4.2 and Section 4.3 shall apply, mutatis mutandis, with respect to payments to
such TRA Party upon the Change of Control.

 

4.2            Early
Termination Notice. If the Corporate Taxpayer chooses to exercise its right of early termination under Section 4.1 above,
the Corporate Taxpayer shall deliver to each TRA Party notice of such intention to exercise such right (“Early Termination Notice”)
and shall deliver to the TRA Party Representative a schedule (the “Early Termination Schedule”) specifying the Corporate
Taxpayer’s intention to exercise such right and showing in reasonable detail the calculation of the Early Termination Payment(s) due
for each TRA Party. Each Early Termination Schedule shall become final and binding on all parties thirty (30) calendar days from the
first date on which all applicable TRA Parties are treated as having received such Schedule or amendment thereto under Section 7.1
unless the TRA Party Representative (i) within thirty (30) calendar days after such date provides the Corporate Taxpayer with
notice of a material objection to such Schedule made in good faith (“Material Objection Notice”) or (ii) provides
a written waiver of such right of a Material Objection Notice within the period described in clause (i) above, in which case such
Schedule becomes binding on the date the waiver is received by the Corporate Taxpayer. If the Corporate Taxpayer and the TRA Party Representative,
for any reason, are unable to successfully resolve the issues raised in such notice within thirty (30) calendar days after receipt by
the Corporate Taxpayer of the Material Objection Notice, the Corporate Taxpayer and the TRA Party Representative shall employ the Reconciliation
Procedures in which case such Schedule becomes binding ten (10) calendar days after the conclusion of the Reconciliation Procedures.

 

4.3            Payment
upon Early Termination.

 

(a)            Within
three (3) calendar days after an Early Termination Effective Date, the Corporate Taxpayer shall pay to each TRA Party an amount
equal to the Early Termination Payment in respect of such TRA Party. Such payment shall be made by wire transfer of immediately available
funds to a bank account or accounts designated by such TRA Party or as otherwise agreed by the Corporate Taxpayer and such TRA Party
or, in the absence of such designation or agreement, by check mailed to the last mailing address provided by such TRA Party to the Corporate
Taxpayer.

 

(b)            “Early
Termination Payment” in respect of a TRA Party shall equal the present value, discounted at the Early Termination Rate as of
the applicable Early Termination Effective Date, of all Tax Benefit Payments in respect of such TRA Party that would be required to be
paid by the Corporate Taxpayer beginning from the Early Termination Date and assuming that the Valuation Assumptions in respect of such
TRA Party are applied and that each Tax Benefit Payment for the relevant Taxable Year would be satisfied on the due date (without extensions)
under applicable law as of the Early Termination Effective Date for filing of IRS Form 1120 (or any successor form) of the Corporate
Taxpayer.

 

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Article V

Subordination and Late Payments

 

5.1            Subordination.
Notwithstanding any other provision of this Agreement to the contrary, any Tax Benefit Payment or payments made with respect to Section 4.1(c) due
to events described in paragraph (ii) of the definition of Change of Control required to be made by the Corporate Taxpayer to the
TRA Parties under this Agreement shall rank subordinate and junior in right of payment to any principal, interest or other amounts due
and payable in respect of any obligations in respect of indebtedness for borrowed money of the Corporate Taxpayer and its Subsidiaries
(“Senior Obligations”) and shall rank pari passu in right of payment with all current or future unsecured obligations
of the Corporate Taxpayer that are not Senior Obligations. To the extent that any payment under this Agreement is not permitted to be
made at the time payment is due as a result of this Section 5.1 and the terms of agreements governing Senior Obligations,
such payment obligation nevertheless shall accrue for the benefit of TRA Parties and the Corporate Taxpayer shall make such payments
at the first opportunity that such payments are permitted to be made in accordance with the terms of the Senior Obligations. Notwithstanding
any other provision of this Agreement to the contrary, to the extent that the Corporate Taxpayer or any of its Affiliates enters into
future Tax receivable or other similar agreements (“Future TRAs”), the Corporate Taxpayer shall ensure that the terms
of any such Future TRA shall provide that the Tax Attributes subject to this Agreement are considered senior in priority to any Tax attributes
subject to any such Future TRA for purposes of calculating the amount and timing of payments under any such Future TRA.

 

5.2            Late
Payments by the Corporate Taxpayer. Subject to the proviso in the last sentence of Section 4.1(b), the amount of all
or any portion of any Tax Benefit Payment or Early Termination Payment not made to the TRA Parties when due under the terms of this Agreement,
whether as a result of Section 5.1 or otherwise, shall be payable together with any interest thereon, computed at the Default
Rate and commencing from the date on which such Tax Benefit Payment or Early Termination Payment was first due and payable to the date
of actual payment.

 

Article VI

No Disputes; Consistency; Cooperation

 

6.1            Participation
in the Corporate Taxpayer’s and OpCo’s Tax Matters. Except as otherwise provided herein, the Corporate Taxpayer shall
have full responsibility for, and sole discretion over, all Tax matters concerning the Corporate Taxpayer and OpCo, including without
limitation the preparation, filing or amending of any Tax Return and defending, contesting or settling any issue pertaining to Taxes.
Notwithstanding the foregoing, the Corporate Taxpayer shall notify the TRA Party Representative of, and keep the TRA Party Representative
reasonably informed with respect to, the portion of any audit of the Corporate Taxpayer and OpCo by a Taxing Authority the outcome of
which is reasonably expected to materially affect the rights and obligations of the TRA Parties under this Agreement, and shall provide
the TRA Party Representative reasonable opportunity to provide information and other input to the Corporate Taxpayer, OpCo and their
respective advisors concerning the conduct of any such portion of such audit; provided, however, that the Corporate Taxpayer and OpCo
shall not be required to take any action that is inconsistent with any provision of the LLC Agreement.

 

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6.2            Consistency.
The Corporate Taxpayer and the TRA Parties agree to report and cause to be reported for all purposes, including U.S. federal, state and
local Tax purposes and financial reporting purposes, all Tax-related items (including, without limitation, the Tax Attributes and each
Tax Benefit Payment) in a manner consistent with that contemplated by this Agreement or specified by the Corporate Taxpayer in any Schedule
required to be provided by or on behalf of the Corporate Taxpayer under this Agreement unless otherwise required by law. The Corporate
Taxpayer shall (and shall cause OpCo and its other Subsidiaries to) use commercially reasonable efforts (for the avoidance of doubt,
taking into account the interests and entitlements of all TRA Parties under this Agreement) to defend the Tax treatment contemplated
by this Agreement and any Schedule in any audit, contest or similar proceeding with any Taxing Authority.

 

6.3            Cooperation.
Each of the TRA Parties shall (a) furnish to the Corporate Taxpayer in a timely manner such information, documents and other materials
in its possession as the Corporate Taxpayer may reasonably request for purposes of making any determination or computation necessary
or appropriate under this Agreement, preparing any Tax Return or contesting or defending any audit, examination or controversy with any
Taxing Authority, (b) make itself available to the Corporate Taxpayer and its representatives to provide explanations of documents
and materials and such other information as the Corporate Taxpayer or its representatives may reasonably request in connection with any
of the matters described in clause (a) above, and (c) reasonably cooperate in connection with any such matter, and the Corporate
Taxpayer shall reimburse each such TRA Party for any reasonable and documented out-of-pocket costs and expenses incurred pursuant to
this Section 6.3. Upon the request of any TRA Party, the Corporate Taxpayer shall cooperate in taking any action reasonably
requested by such TRA Party in connection with its tax or financial reporting and/or the consummation of any assignment or transfer of
any of its rights and/or obligations under this Agreement, including without limitation, providing any information or executing any documentation.

 

Article VII

Miscellaneous

 

7.1            Notices.
All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be deemed duly given and received
(a) on the date of delivery if delivered personally, or by facsimile or email with confirmation of transmission by the transmitting
equipment or (b) on the first Business Day following the date of dispatch if delivered by a recognized next-day courier service.
All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by
the party to receive such notice:

 

If to the Corporate Taxpayer, to:

 

Direct Digital Holdings, Inc.

1233 West Loop South, Suite 1170

Houston, TX 77027

 

Attention: Mark Walker, Chief Executive Officer

Email:
mwalker@directdigitalholdings.com

 

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If to the TRA Parties, to
the respective addresses, fax numbers and email addresses set forth in the records of OpCo.

 

Any party may change its address or email by
giving the other party written notice of its new address or email in the manner set forth above

 

7.2            Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become
effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood
that all parties need not sign the same counterpart. Delivery of an executed signature page to this Agreement by facsimile transmission
shall be as effective as delivery of a manually signed counterpart of this Agreement.

 

7.3            Entire
Agreement; No Third Party Beneficiary. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings,
both written and oral, among the parties with respect to the subject matter hereof. This Agreement shall be binding upon and inure solely
to the benefit of each party hereto and their respective successors and permitted assigns, and nothing in this Agreement, express or
implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement.

 

7.4            Governing
Law. This Agreement shall be governed by, and construed in accordance with, the law of the State of Delaware.

 

7.5            Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all
other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance
of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any
term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions
contemplated hereby are consummated as originally contemplated to the greatest extent possible.

 

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7.6            Successors;
Assignment; Amendments; Waivers.

 

(a)            No
TRA Party may, directly or indirectly, assign or otherwise transfer its rights under this Agreement to any Person (other than a permitted
transferee) without the express prior written consent of the Corporate Taxpayer, such consent not to be unreasonably withheld, conditioned,
or delayed, and without such Person (including a permitted transferee) executing and delivering a joinder to this Agreement, substantially
in the form of Exhibit A hereto, agreeing to become a TRA Party for all purposes of this Agreement, except as otherwise provided
in such joinder (a “Joinder”). For avoidance of doubt, this Section 7.6(a) shall apply regardless
of whether such TRA Party continues to hold any interest in the Corporate Taxpayer or OpCo; provided, however, that if a TRA Party transfers
Class A Units in accordance with the terms of the LLC Agreement but does not assign to the transferee of such Units its rights under
this Agreement with respect to such transferred Class A Units, such TRA Party shall continue to be entitled to receive the Tax Benefit
Payments arising in respect of a subsequent Exchange of such Class A Units. Any assignment, or attempted assignment in violation
of this Agreement, including any failure of a purported assignee to enter into a Joinder or to provide any forms or other information
to the extent required hereunder, shall be null and void, and shall not bind or be recognized by the Corporate Taxpayer or the TRA Parties.
The Corporate Taxpayer shall be entitled to treat the record owner of any rights under this Agreement as the absolute owner thereof and
shall incur no liability for payments made in good faith to such owner until such time as a written assignment of such rights is permitted
pursuant to the terms and conditions of this Section 7.6(a) and has been recorded on the books of the Corporate Taxpayer.

 

(b)            No
provision of this Agreement may be amended unless such amendment is approved in writing by each of the Corporate Taxpayer and by the
TRA Party Representative; provided, that no such amendment shall be effective if such amendment will have a disproportionate effect on
the payments one or more TRA Parties receive under this Agreement unless such amendment is consented in writing by such TRA Parties disproportionately
affected who would be entitled to receive at least two-thirds of the total amount of the Early Termination Payments payable to all TRA
Parties disproportionately affected hereunder if the Corporate Taxpayer had exercised its right of early termination on the date of the
most recent Exchange prior to such amendment (excluding, for purposes of this sentence, all payments made to any TRA Party pursuant to
this Agreement since the date of such most recent Exchange). No provision of this Agreement may be waived unless such waiver is in writing
and signed by the party against whom the waiver is to be effective.

 

(c)            All
of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties
hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives. The Corporate Taxpayer shall
require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially
all of the business or assets of the Corporate Taxpayer, by written agreement, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that the Corporate Taxpayer would be required to perform if no such succession had taken place.

 

7.7            Titles
and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to
be considered in construing this Agreement.

 

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7.8            Resolution
of Disputes.

 

(a)            Except
as provided by Section 7.9, any dispute that is not amicably resolved within thirty (30) days after being notified to
the other parties rising out of or relating to this Agreement, including any ancillary claims of any party, arising out of, relating
to or in connection with the validity, negotiation, execution, interpretation, performance or non-performance of this Agreement (including
the validity, scope and enforceability of this arbitration provision), or the propriety of the commencement of the arbitration (each
a “Dispute”) shall be finally settled by arbitration conducted by a single arbitrator in accordance with the then-existing
Rules of Arbitration of the International Chamber of Commerce. The seat or legal place of arbitration shall be Houston, Texas. If
the parties to the Dispute fail to agree on the selection of an arbitrator within thirty (30) calendar days of the receipt of the
request for arbitration, the International Chamber of Commerce shall make the appointment. Performance under this Agreement shall continue
if reasonably possible during any arbitration proceedings. The arbitration shall be deemed to meet these qualifications unless a party
objects with five (5) days of nomination.

 

(b)            Notwithstanding
the provisions of paragraph (a), the Corporate Taxpayer may bring an action or special proceeding in any court of competent jurisdiction
for the purpose of compelling a party to arbitrate, seeking temporary or preliminary relief in aid of an arbitration hereunder, enforcing
and/or challenging an arbitration award and, for the purposes of this paragraph (b), each TRA Party (i) expressly consents to the
application of paragraph (c) of this Section 7.8 to any such action or proceeding, (ii) agrees that proof shall
not be required that monetary damages for breach of the provisions of this Agreement would be difficult to calculate and that remedies
at law would be inadequate, and (iii) irrevocably appoints the Corporate Taxpayer as agent of such TRA Party for service of process
in connection with any such action or proceeding and agrees that service of process upon such agent, who shall promptly advise the TRA
Party of any such service of process, shall be deemed in every respect effective service of process upon the TRA Party in any such action
or proceeding.

 

(c)            (i) EACH
PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF COURTS LOCATED IN HOUSTON, TEXAS FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT
IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 7.8, OR ANY JUDICIAL PROCEEDING ANCILLARY TO AN ARBITRATION OR CONTEMPLATED ARBITRATION
ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT. Such ancillary judicial proceedings include any suit, action or proceeding
to compel arbitration, to obtain temporary or preliminary judicial relief in aid of arbitration, or to confirm, enforce or challenge
an arbitration award. The parties acknowledge that the fora designated by this paragraph (c) have a reasonable relation to this
Agreement, and to the parties’ relationship with one another; and (ii) The parties hereby waive, to the fullest extent permitted
by applicable law, any objection which they now or hereafter may have to personal jurisdiction or to the laying of venue of any such
ancillary suit, action or proceeding brought in any court referred to in the preceding paragraph of this Section 7.8 and
such parties agree not to plead or claim the same.

 

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7.9            Reconciliation.
In the event that the Corporate Taxpayer and the TRA Party Representative are unable to resolve a disagreement with respect to the matters
governed by Sections 2.3 and 4.2 within the relevant period designated in this Agreement (“Reconciliation Dispute”),
the Reconciliation Dispute shall be submitted for determination to a nationally recognized expert (the “Expert”) in
the particular area of disagreement mutually acceptable to both parties. The Expert shall be a partner or principal in a nationally recognized
accounting or law firm, and unless the Corporate Taxpayer and the TRA Party Representative agree otherwise, the Expert shall not, and
the firm that employs the Expert shall not, have any material relationship with the Corporate Taxpayer or the TRA Party Representative
or other actual or potential conflict of interest. If the Corporate Taxpayer and the TRA Party Representative are unable to agree on
an Expert within fifteen (15) calendar days of receipt by the respondent(s) of written notice of a Reconciliation Dispute,
then the Expert shall be appointed by the International Chamber of Commerce Centre for Expertise. The Expert shall resolve any matter
relating to the TRA Party’s Basis Schedule or an amendment thereto or the Early Termination Schedule or an amendment thereto within
thirty (30) calendar days and shall resolve any matter relating to a Tax Benefit Schedule or an amendment thereto within fifteen
(15) calendar days or as soon thereafter as is reasonably practicable, in each case after the matter has been submitted to the Expert
for resolution. Notwithstanding the preceding sentence, if the matter is not resolved before any payment that is the subject of a disagreement
would be due (in the absence of such disagreement) or any Tax Return reflecting the subject of a disagreement is due, the undisputed
amount shall be paid on the date prescribed by this Agreement and such Tax Return may be filed as prepared by the Corporate Taxpayer,
subject to adjustment or amendment upon resolution. The costs and expenses relating to the engagement of such Expert or amending any
Tax Return shall be borne by the Corporate Taxpayer except as provided in the next sentence. The Corporate Taxpayer and the TRA Party
Representative shall bear their own costs and expenses of such proceeding, unless (i) the Expert adopts the TRA Party Representative’s
position, in which case the Corporate Taxpayer shall reimburse the relevant TRA Party Representative for any reasonable out-of-pocket
costs and expenses in such proceeding, or (ii) the Expert adopts the Corporate Taxpayer’s position, in which case the TRA
Party Representative shall reimburse the Corporate Taxpayer for any reasonable out-of-pocket costs and expenses in such proceeding. Any
dispute as to whether a dispute is a Reconciliation Dispute within the meaning of this Section 7.9 shall be decided by the
Expert. The Expert shall finally determine any Reconciliation Dispute and the determinations of the Expert pursuant to this Section 7.9
shall be binding on the Corporate Taxpayer and each of the TRA Parties and may be entered and enforced in any court having jurisdiction.

 

7.10            Withholding.
The Corporate Taxpayer shall be entitled to deduct and withhold from any payment payable pursuant to this Agreement such amounts as the
Corporate Taxpayer is required to deduct and withhold with respect to the making of such payment under the Code or any provision of state,
local or foreign Tax law; provided that, prior to deducting or withholding any such amounts, the Corporate Taxpayer shall notify the
TRA Party Representative and shall consult in good faith with such TRA Party Representative regarding the basis for such deduction or
withholding. To the extent that amounts are so withheld and paid over to the appropriate Taxing Authority by the Corporate Taxpayer,
such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of whom such withholding
was made. To the extent that any payment pursuant to this Agreement is not reduced by such deductions or withholdings, such recipient
shall indemnify the applicable withholding agent for any amounts imposed by any Taxing Authority together with any costs and expenses
related thereto, but not including penalties and interest attributable to the applicable withholding agent’s gross negligence or
willful misconduct. Each TRA Party shall promptly provide the Corporate Taxpayer, OpCo or other applicable withholding agent with any
applicable Tax forms and certifications (including IRS Form W-9 or the applicable version of IRS Form W-8) reasonably requested,
in connection with determining whether any such deductions and withholdings are required under the Code or any provision of state, local
or foreign Tax law.

 

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7.11            Admission
of the Corporate Taxpayer into a Consolidated Group; Transfers of Corporate Assets.

 

(a)            If
the Corporate Taxpayer is or becomes a member of an affiliated, consolidated, combined or unitary group of corporations that files a
consolidated, combined or unitary income Tax Return pursuant to Sections 1501 et seq. of the Code or any corresponding provisions of
state, local or foreign law, then: (i) the provisions of this Agreement shall be applied with respect to the group as a whole; and
(ii) Tax Benefit Payments, Early Termination Payments and other applicable items hereunder shall be computed with reference to the
consolidated, combined or unitary taxable income, gain, loss, deduction and attributes of the group as a whole.

 

(b)            If
the Corporate Taxpayer (or any member of a group described in Section 7.11(a)) transfers or is deemed to transfer any Unit
or any Reference Asset to a transferee that is treated as a corporation for U.S. federal income Tax purposes (other than a member of
a group described in Section 7.11(a)) in a transaction in which the transferee’s basis in the property acquired is
determined in whole or in part by reference to such transferor’s basis in such property, then the Corporate Taxpayer shall cause
such transferee to assume the obligation to make payments hereunder with respect to the applicable Tax Attributes associated with any
Reference Asset or interest therein acquired (directly or indirectly) in such transfer (taking into account any gain recognized in the
transaction) in a manner consistent with the terms of this Agreement as the transferee (or one of its Affiliates) actually realizes Tax
benefits from the Tax Attributes.

 

(c)            If
OpCo or any applicable Subsidiary transfers (or is deemed to transfer for U.S. federal income Tax purposes) any Reference Asset to a
transferee that is treated as a corporation for U.S. federal income Tax purposes (other than a member of a group described in Section 7.11(a))
in a transaction in which the transferee’s basis in the property acquired is determined in whole or in part by reference to such
transferor’s basis in such property, OpCo or the applicable Subsidiary shall be treated as having disposed of the Reference Asset
in a wholly taxable transaction. The consideration deemed to be received by OpCo or the applicable Subsidiary in the transaction contemplated
in the prior sentence shall be equal to the fair market value of the deemed transferred asset, plus (i) the amount of debt to which
such asset is subject, in the case of a transfer of an encumbered asset or (ii) the amount of debt allocated to such asset, in the
case of a transfer of a partnership interest. The transactions described in this Section 7.11(c) and Section 7.11(e) below
shall be taken into account in determining the Realized Tax Benefit or Realized Tax Detriment, as applicable, for such Taxable Year based
on the income, gain or loss deemed allocated to the Corporate Taxpayer using the Non-Adjusted Tax Basis of the Reference Assets in calculating
its Hypothetical Tax Liability for such Taxable Year and using the actual Tax basis of the Reference Assets in calculating its Actual
Tax Liability, determined using the “with and without” methodology. Thus, for example, in determining the Hypothetical Tax
Liability of the Corporate Taxpayer, the taxable income of the Corporate Taxpayer shall be determined by treating OpCo as having sold
the applicable Reference Asset for its fair market value, recovering any basis applicable to such Reference Asset (using the Non-Adjusted
Tax Basis), while the Actual Tax Liability of the Corporate Taxpayer would be determined by recovering the actual Tax basis of the Reference
Asset that reflects any Basis Adjustments.

 

    24

     

    

 

(d)            If
any member of a group described in Section 7.11(a) that owns any Unit deconsolidates from the group (or the Corporate
Taxpayer deconsolidates from the group), then the Corporate Taxpayer shall cause such member (or the parent of the consolidated group
in a case where the Corporate Taxpayer deconsolidates from the group) to assume the obligation to make payments hereunder with respect
to the applicable Tax Attributes associated with any Reference Asset it owns (directly or indirectly) in a manner consistent with the
terms of this Agreement as the member (or one of its Affiliates) actually realizes Tax benefits. If a transferee or a member of a group
described in Section 7.11(a) assumes an obligation to make payments pursuant to this Section 7.11(d), then
the initial obligor is relieved of the obligation assumed.

 

(e)            If
the Corporate Taxpayer (or any member of a group described in Section 7.11(a)) transfers (or is deemed to transfer for U.S.
federal income Tax purposes) any Unit in a transaction that is wholly or partially taxable, then for purposes of calculating payments
under this Agreement, OpCo shall be treated as having disposed of the portion of any Reference Asset (determined based on a pro rata
share of an undivided interest in each Reference Asset) that is indirectly transferred by the Corporate Taxpayer or other entity described
above (i.e., taking into account the number of Units transferred) in a wholly or partially taxable transaction, as applicable,
in which all income, gain or loss is allocated to the Corporate Taxpayer. The consideration deemed to be received by OpCo shall be equal
to the fair market value of the deemed transferred asset, plus (i) the amount of debt to which such asset is subject, in the case
of a transfer of an encumbered asset or (ii) the amount of debt allocated to such asset, in the case of a transfer of a partnership
interest.

 

7.12            Confidentiality.

 

(a)            Each
TRA Party and each of their assignees acknowledge and agree that the information of the Corporate Taxpayer is confidential and, except
in the course of performing any duties as necessary for the Corporate Taxpayer and its Affiliates, as required by law or legal process
or to enforce the terms of this Agreement, such person shall keep and retain in the strictest confidence and not disclose to any Person
any confidential matters, acquired pursuant to this Agreement, of the Corporate Taxpayer and its Affiliates and successors, concerning
OpCo, its members and its Affiliates and successors, learned by the TRA Party heretofore or hereafter. This Section 7.12
shall not apply to (i) any information that has been made publicly available by the Corporate Taxpayer or any of its Affiliates,
becomes public knowledge (except as a result of an act of the TRA Party in violation of this Agreement) or is generally known to the
business community and (ii) the disclosure of information to the extent necessary for the TRA Party to prepare and file its Tax
Returns, to respond to any inquiries regarding the same from any Taxing Authority or to prosecute or defend any action, proceeding or
audit by any Taxing Authority with respect to such Tax Returns. Notwithstanding anything to the contrary herein, each TRA Party and each
of their assignees (and each employee, representative or other agent of the TRA Party or its assignees, as applicable) may disclose to
any and all Persons, without limitation of any kind, the Tax treatment and Tax structure of the Corporate Taxpayer, OpCo and their Affiliates,
and any of their transactions, and all materials of any kind (including opinions or other Tax analyses) that are provided to the TRA
Party relating to such Tax treatment and Tax structure.

 

    25

     

    

 

(b)            If
a TRA Party or an assignee commits a breach, or threatens to commit a breach, of any of the provisions of this Section 7.12,
the Corporate Taxpayer shall have the right and remedy to have the provisions of this Section 7.12 specifically enforced
by injunctive relief or otherwise by any court of competent jurisdiction without the need to post any bond or other security, it being
acknowledged and agreed that any such breach or threatened breach shall cause irreparable injury to the Corporate Taxpayer or any of
its Subsidiaries or the TRA Parties and the accounts and funds managed by the Corporate Taxpayer and that money damages alone shall not
provide an adequate remedy to such Persons. Such rights and remedies shall be in addition to, and not in lieu of, any other rights and
remedies available at law or in equity.

 

7.13            Partnership
Agreement. This Agreement shall be treated as part of the LLC Agreement as described in Section 761(c) of the Code and
Sections 1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the Treasury Regulations.

 

7.14            Change
in Law. Notwithstanding anything herein to the contrary, if, in connection with an actual or proposed change in law, a TRA Party
reasonably believes that the existence of this Agreement could cause income (other than income arising from receipt of a payment under
this Agreement) recognized by the TRA Party upon any Exchange by such TRA Party to be treated as ordinary income rather than capital
gain (or otherwise taxed at ordinary income rates) for U.S. federal income Tax purposes or would have other material adverse Tax consequences
to such TRA Party, then at the election of such TRA Party and to the extent specified by such TRA Party, this Agreement (i) shall
cease to have further effect with respect to such TRA Party, (ii) shall not apply to an Exchange by such TRA Party occurring after
a date specified by such TRA Party, or (iii) shall otherwise be amended in a manner determined by such TRA Party, provided that
such amendment shall not result in an increase in payments under this Agreement at any time as compared to the amounts and times of payments
that would have been due in the absence of such amendment.

 

7.15            Electronic
Signatures. The words “execution,” “signed,” “signature,” “delivery,” and words of
like import in or relating to this Agreement or any document to be signed in connection with this Agreement shall be deemed to include
electronic signatures (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com),
deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability
as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, and
the parties hereto consent to conduct the transactions contemplated hereunder by electronic means.

 

[Remainder of page intentionally blank]

 

    26

     

    

 

IN
WITNESS WHEREOF, the Corporate Taxpayer and each TRA Party have duly executed this Agreement as of the date first written
above.

 

	 	Corporate Taxpayer
	 	 	 
	 	DIRECT DIGITAL HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Mark D. Walker
	 	 	Name: Mark D. Walker
	 	 	Title: Chairman and Chief Executive Officer
	 	 	 
	 	OpCo:
	 	 	 
	 	DIRECT DIGITAL HOLDINGS, LLC
	 	 	 
	 	By:	/s/ Mark D. Walker
	 	 	Name: Mark D. Walker
	 	 	Title: Chief Executive Officer

 

[Signature Page to the Tax Receivable Agreement]

 

    

     

    

 

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

 

	 	DIRECT DIGITAL MANAGEMENT, LLC
	 	 	 
	 	By:	/s/ Mark D. Walker
	 	 	Name: Mark D. Walker
	 	 	Title: Managing Partner

 

[Signature Page to the Tax Receivable Agreement]

 

    

     

    

 

Exhibit A

 

Form of Joinder

 

This JOINDER (this “Joinder”)
to the Tax Receivable Agreement (as defined below), is by and among Direct Digital Holdings, Inc., a Delaware corporation (including
any successor corporation the “Corporate Taxpayer”), ______________________ (“Transferor”) and
______________________ (“Permitted Transferee”).

 

WHEREAS, on ______________________,
Permitted Transferee shall acquire ______________________ percent of the Transferor’s right to receive payments that may become
due and payable under the Tax Receivable Agreement (as defined below) (the “Acquired Interests”) from Transferor (the
 “Acquisition”); and

 

WHEREAS, Transferor, in connection
with the Acquisition, has required Permitted Transferee to execute and deliver this Joinder pursuant to Section 7.6(a) of the
Tax Receivable Agreement, dated as of February 15, 2022, between the Corporate Taxpayer, OpCo and the TRA Parties (as defined therein)
(the “Tax Receivable Agreement”).

 

NOW, THEREFORE, in consideration
of the foregoing and the respective covenants and agreements set forth herein, and intending to be legally bound hereby, the parties
hereto agree as follows:

 

1.1            Definitions.
To the extent capitalized words used in this Joinder are not defined in this Joinder, such words shall have the respective meanings set
forth in the Tax Receivable Agreement.

 

1.2            Acquisition.
For good and valuable consideration, the sufficiency of which is hereby acknowledged by the Transferor and the Permitted Transferee,
the Transferor hereby transfers and assigns absolutely to the Permitted Transferee all of the Acquired Interests.

 

1.3            Joinder.
Permitted Transferee hereby acknowledges and agrees (i) that it has received and read the Tax Receivable Agreement, (ii) that
the Permitted Transferee is acquiring the Acquired Interests in accordance with and subject to the terms and conditions of the Tax Receivable
Agreement and (iii) to become a “TRA Party” (as defined in the Tax Receivable Agreement) for all purposes of
the Tax Receivable Agreement.

 

1.4            Notice.
Any notice, request, consent, claim, demand, approval, waiver or other communication hereunder to Permitted Transferee shall be delivered
or sent to Permitted Transferee at the address set forth on the signature page hereto in accordance with Section 7.1 of the
Tax Receivable Agreement.

 

1.5            Governing
Law. This Joinder shall be governed by and construed in accordance with the law of the State of Delaware.

 

    

     

    

 

 

IN WITNESS WHEREOF, this
Joinder has been duly executed and delivered by Permitted Transferee as of the date first above written.

 

	 	DIRECT DIGITAL HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	[TRANSFEROR]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	[PERMITTED TRANSFEREE]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	Address for Notices:

 

[Signature Page to Joinder]

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