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Exhibit 10.9    
    

 
 

INDEMNITY
  AGREEMENT    
    

        This Agreement is made as of the    day of            , 2005, by and between ZUMIEZ INC., a
Washington corporation (the
"Company"), and                        ("Indemnitee"). 

 
 

RECITALS    

A.        The
Company desires to attract and retain qualified directors and officers, and to provide them with protection against liability and expenses incurred while acting in that capacity. 

B.        The
Company's articles of incorporation (the "Articles of Incorporation") and its bylaws (the
"Bylaws") contain provisions for indemnifying directors and officers of the Company, and the Articles of Incorporation, Bylaws and Title 23B of the
Revised Code of Washington (the "Washington Business Corporation Act") contemplate that separate contracts may be entered into between the Company and
its directors and officers with respect to their indemnification by the Company, which contracts may provide greater protection than is afforded by the Articles of Incorporation and Bylaws. 

C.        The
Company recognizes that Indemnitee has reservations about serving or continuing to serve the Company without adequate protection against personal liability arising from such
service, and that it is also of critical importance to Indemnitee that adequate provision be made for advancing costs and expenses of legal defense. 

D.        The
Board of Directors of the Company has approved as being in the best interests of the Company indemnity agreements substantially in the form of this Agreement for directors and
certain officers of the Company. 

        NOW,
THEREFORE, in consideration of the promises, conditions, representations and warranties set forth herein, including the Director's continued service to the Company, the Company and
Indemnitee hereby agree as follows: 

        1.    Definitions.    The following terms, as used herein, shall have the following respective
meanings; other terms not specifically defined herein have the meaning provided in the Washington Business Corporation Act or the Bylaws: 

        "Covered Amount" means and all losses, claims, damages, liabilities, Expenses, judgments, fines, ERISA excise taxes or penalties, amounts
paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in connection with a
Proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe Indemnitee's conduct was unlawful. 

        "Expenses" means attorneys' fees and all other costs, expenses and obligations paid or incurred in connection with investigating,
defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness in or participate in, any Proceeding. 

        "Proceeding" means any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or
investigative, and whether formal or informal in which Indemnitee is, was or becomes involved as a party or otherwise, by reason of the fact that Indemnitee is or was a director, officer, employee or
agent of the Company or that, being or having been such a director, officer, employee or agent, Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of
another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to an employee benefit plan, whether the basis of such proceeding is alleged action
(or inaction) by Indemnitee in an official capacity as a director, officer, employee or agent or in any other capacity while serving as a director, officer, employee or agent; 

 

provided,
however, that, except with respect to an action to enforce the provisions of this Agreement, Proceeding shall not include any action, suit, claim or proceeding instituted by or at the
direction of Indemnitee unless such action, suit, claim or proceeding is or was authorized by the Company's board of directors. 

 2.        Indemnification.  

        (a)    Scope.    The Company agrees to hold harmless and indemnify Indemnitee to the fullest extent permitted by law,
notwithstanding that such indemnification is not specifically authorized by this Agreement, the Articles of Incorporation, the Bylaws, the Washington Business Corporation Act or otherwise. In the
event of any change, after the date of this Agreement, in any applicable law, statute or rule regarding the right of a Washington corporation to indemnify a member of its board of directors or an
officer, such changes, to the extent that they would expand Indemnitee's rights hereunder, shall be within the purview of Indemnitee's rights and the Company's obligations hereunder, and, to the
extent that they would narrow Indemnitee's rights hereunder, shall be excluded from this Agreement; provided, however, that any change that is required by applicable laws, statutes or rules to be
applied to this Agreement shall be so applied regardless of whether the effect of such change is to narrow Indemnitee's rights hereunder. 

        (b)    Additional Indemnification.    If Indemnitee was or is made a party, or is threatened to be made a party, to or
is otherwise involved (including, without limitation, as a witness) in any Proceeding, the Company shall hold harmless and indemnify Indemnitee from and against any and all Covered Amounts. 

        (c)    Determination of Entitlement.    In the event that a determination of Indemnitee's entitlement to
indemnification is required pursuant to Section 23B.08.550 of the Washington Business Corporation Act or any successor thereto or pursuant to other applicable law, an appropriate decision-maker
specified in Section 23B.08.550 of the Washington Business Corporation Act shall make such determination; provided, however, that Indemnitee shall initially be presumed in all cases to be
entitled to indemnification, unless the Company shall deliver to Indemnitee written notice of a determination that Indemnitee is not entitled to indemnification (a "Company Denial Notice") within
sixty (60) calendar days of the final disposition of the Proceeding under which such Indemnitee is seeking indemnification. The Indemnitee shall conclusively be deemed to be entitled to such
indemnification in the absence of delivery of a Company Denial Notice within the time period specified in the prior sentence and the Company hereby agrees not to assert otherwise. In the event the
Company delivers a Company Denial Notice within the prescribed time period, and such denial is disputed by the Indemnitee, the Company shall bear the burden of proof to establish that the Indemnitee
is not entitled to indemnification in such situation. 

        (d)    Survival.    The indemnification provided under this Agreement shall apply to any and all Proceedings,
notwithstanding that Indemnitee has ceased to be a director, officer, employee or agent of the Company. 

 3.        Notification and Defense of Claim.  

        (a)    Notification.    Promptly after receipt by Indemnitee of notice of the commencement of any Proceeding,
Indemnitee will, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company in writing of the commencement thereof; but the omission to notify the Company
will not relieve the Company from any liability which it may have to Indemnitee under this Agreement unless and only to the extent that such omission can be shown to have prejudiced the Company's
ability to defend the Proceeding. 

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        (b)    Defense of Claim.    With respect to any such Proceeding as to which Indemnitee notifies the Company of the
commencement thereof: 

                (i)    The
Company may participate therein at its own expense; 

                (ii)   The
Company, jointly with any other indemnifying party similarly notified, may assume the defense thereof, with counsel satisfactory to Indemnitee
(Indemnitee's consent to such counsel may not be unreasonably withheld). After notice from the Company to Indemnitee of its election to assume the defense thereof, the Company shall not be liable to
Indemnitee under this Agreement for any legal or other expenses subsequently incurred by Indemnitee in connection with the defense thereof unless (A) the employment of counsel by Indemnitee has
been authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of the defense of such
action, or (C) the Company shall not in fact have employed counsel to assume the defense of such action, in each of which cases the fees and expenses of counsel shall be at the expense of the
Company. The Company shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Company or as to which Indemnitee shall have made the conclusion
provided for in 3(b)(ii)(B) above; 

                (iii)  The
Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without its
written consent; 

                (iv)  The
Company shall not settle any action or claim in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee's written
consent; and 

                (v)   Neither
the Company nor Indemnitee will unreasonably withhold its, his or her consent to any proposed settlement. 

        (c)    Notice to Insurers.    If, at the time of the receipt of a notice of a claim pursuant to Section 3(a)
hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as
a result of such proceeding in accordance with the terms of such policies. 

 4.        Expense Advances.  

        (a)    Expense Advances.    The right to indemnification of Covered Amounts conferred hereby shall include the right
to have the Company pay Indemnitee's Expenses in any Proceeding as such expenses are incurred and in advance of such Proceeding's final disposition (such right is referred to hereinafter as an
"Expense Advance"). Any Expense Advance to be made under this Agreement shall be paid by the Company to Indemnitee within twenty (20) calendar
days following delivery of a written request therefor by Indemnitee to the Company. 

        (b)    Conditions to Expense Advance.    The Company's obligation to provide an Expense Advance is subject to the
following conditions: 

                (i)    Indemnitee
shall submit to the Company a written undertaking, constituting an unlimited general obligation of the Indemnitee, to repay any and all of the
Expense Advance if it is ultimately determined by a court of competent jurisdiction that the Indemnitee did not meet the required standard of conduct; 

                (ii)   Indemnitee
shall submit to the Company a written affirmation of the Indemnitee's good faith belief that the Indemnitee has met the standard of conduct
required to be eligible for indemnification; and 

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                (iii)  Indemnitee
shall give the Company such information and cooperation as it may reasonably request and as shall be within Indemnitee's power. 

 5.        Enforcement.  

        (a)    Enforcement.    In the event that a claim for indemnification, an Expense Advance or otherwise is made
hereunder and is not paid within (i) sixty (60) calendar days of the final disposition of the Proceeding under which an Indemnitee is seeking indemnification, provided that written
notice of such final disposition is promptly delivered to the Company, or (ii) twenty (20) days for an Expense Advance, Indemnitee may, but need not, at any time thereafter bring suit
against the Company to recover the unpaid amount of the claim (an "Enforcement Action"). 

        (b)    Presumptions in Enforcement Action.    In any Enforcement Action the following presumptions (and limitation on
presumptions) shall apply: 

                (i)    The
Company shall conclusively be presumed to have entered into this Agreement and assumed the obligations imposed on it hereunder in order to induce
Indemnitee to continue as an officer and/or director, as the case may be, of the Company; 

                (ii)   Neither
(i) the failure of the Company (including the Company's board of directors, independent or special legal counsel or the Company's
shareholders) to have made a determination prior to the commencement of the Enforcement Action that indemnification of Indemnitee is proper in the circumstances nor (ii) an actual determination
by the Company, its board of directors, independent or special legal counsel or shareholders that Indemnitee is not entitled to indemnification shall be a defense to the Enforcement Action or create a
presumption that Indemnitee is not entitled to indemnification hereunder; and 

                (iii)  If
Indemnitee is or was serving as a director, officer, employee or agent of a corporation of which a majority of the shares entitled to vote in the
election of its directors is held by the Company or in an executive or management capacity in a partnership, joint venture, trust or other enterprise of which the Company or a wholly-owned subsidiary
of the Company is a general partner or has a majority ownership, then Indemnitee shall conclusively be deemed to be serving such entity at the request of the Company. 

        (c)    Attorneys' Fees and Expenses for Enforcement Action.    In the event Indemnitee is required to bring an
Enforcement Action, the Company shall indemnify and hold harmless Indemnitee against all of Indemnitee's fees and expenses in bringing and pursuing the Enforcement Action (including attorneys' fees at
any stage, including on appeal); provided, however, that the Company shall not be required to provide such indemnification for such attorneys' fees or expenses if a court of competent jurisdiction
determines that each of the material assertions made by Indemnitee in such Enforcement Action was not made in good faith or was frivolous. 

 6.        Limitations on Indemnification; Mutual Acknowledgment.  

        (a)    Limitation on Indemnification.    No indemnification pursuant to this Agreement shall be provided by the
Company: 

                (i)    On
account of any suit in which a final, unappealable judgment is rendered against Indemnitee for an accounting of profits made from the purchase or sale
by Indemnitee of securities of the Company in violation of the provisions of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto; 

                (ii)   For
Covered Amounts that have been paid directly to Indemnitee by an insurance carrier under a policy of officers' and directors' liability insurance
maintained by the Company; 

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                (iii)  On
account of Indemnitee's conduct which is finally adjudged to have been intentional misconduct, a knowing violation of law or RCW 23B.08.310 or any
successor provision of the Washington Business Corporation Act, or a transaction from which Indemnitee derived benefit in money, property or services to which Indemnitee is not legally entitled; or 

                (iv)  If
a final decision by a court having jurisdiction in the matter shall determine that such indemnification is not lawful. 

        (b)    Mutual Acknowledgment.    The Company and Indemnitee acknowledge that, in certain instances, federal law or
public policy may override applicable state law and prohibit the Company from indemnifying Indemnitee under this Agreement or otherwise. For example, the Company and Indemnitee acknowledge that the
Securities and Exchange Commission (the "SEC") has taken the position that indemnification is not permissible for liabilities arising under certain
federal securities laws, and federal legislation prohibits indemnification for certain ERISA violations. Furthermore, Indemnitee understands and acknowledges that the Company has undertaken or may be
required in the future to undertake with the SEC to submit the question of indemnification to a court in certain circumstances for a determination of the Company's right under public policy to
indemnify Indemnitee. 

        7.    D&O Insurance.    The Company hereby covenants and agrees that, so long as Indemnitee
shall continue to serve as an officer or director of the Company and thereafter so long as Indemnitee shall be subject to any Proceeding, the Company shall maintain in full force and effect a policy
or policies of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for losses from wrongful acts. In all policies of director and officer
liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company's
directors, if Indemnitee is a director, or of the Company's officers, if Indemnitee is not a director of the Company but is an officer. Notwithstanding the foregoing, the Company shall have no
obligation to obtain or maintain such insurance if the Company's board of directors determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance
are disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by
similar insurance maintained by a parent or subsidiary of the Company; provided however that such decision shall not adversely affect coverage of director and officer liability insurance for periods
prior to such decision without the unanimous vote of all directors. 

        8.    Rights Not Exclusive.    The rights provided hereunder shall not be deemed exclusive by
any other rights to which the Indemnitee may be entitled under the Bylaws or any agreement, vote of shareholders or of disinterested directors or otherwise, both as to action in Indemnitee's official
capacity and as to action in any other capacity by holding such office, and shall continue after the Indemnitee ceases to serve the Company as a Indemnitee. 

        9.    Notices.    Any notice, demand or request required or permitted to be given under this
Agreement shall be in writing and shall be deemed given when actually received (either through delivery in person or by telex or facsimile transmission) or two business days after being deposited in
the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified. 

        10    No Employment Rights.    Nothing contained in this Agreement is intended to create in
Indemnitee any right to continued or future employment. 

        11.    Severability.    In the event that any provision of this Agreement is determined by a
court to require the Company to do or to fail to do an act which is in violation of the Washington Business Corporation Act or other applicable law, such provision shall be limited or modified in its
application 

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to
the minimum extent necessary to avoid a violation of law, and, as so limited or modified, such provision and the balance of this Agreement shall be enforceable in accordance with their terms. 

        12.    Choice of Law.    This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Washington. 

        13.    Consent to Jurisdiction.    The Company and the Indemnitee each hereby irrevocably
consent to the jurisdiction of the state and federal courts located in King County, Washington for all purposes in connection with any action or proceeding which arises out of or relates to this
Agreement. 

        14.    Entire Agreement; Enforcement of Rights.    This Agreement sets forth the entire
agreement and understanding of the parties relating to the subject matter herein and merges all prior discussions between them. No modification, amendment or termination of this Agreement, nor any
waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall
not be construed as a waiver of any rights of such party. 

        15.    Counterparts.    This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one instrument. 

        16.    Successor and Assigns.    This Agreement shall be (i) binding upon all
successors and assigns of the Company (including any transferee of all or substantially all of its assets and any successor by merger or otherwise by operation of law) and (ii) shall be binding
on and inure to the benefit of the heirs, personal representatives and estate of Indemnitee. 

        17.    Amendment.    No amendment, modification, termination or cancellation of this Agreement
shall be effective unless made in a writing signed by each of the parties hereto. 

[remainder of page left intentionally blank] 

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        IN WITNESS WHEREOF, the Company and Indemnitee have executed this Agreement as of the day and year first above written. 

	 	 	ZUMIEZ INC.
	

 	
 	
By:	

	 	 	Title:	 

	

 	
 	
INDEMNITEE
	

 	
 	

	 	 	    
	 	 	                         , Indemnitee

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Exhibit 10.9

INDEMNITY AGREEMENT

RECITALSQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.10    
    

        

 

LIMITED LIABILITY COMPANY AGREEMENT  

 OF  

 ZUMIEZ HOLDINGS LLC  

 a Delaware Limited Liability Company  

 Dated as of November 4, 2002  

 

  

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	ARTICLE 1 ORGANIZATIONAL MATTERS	 	1
	 	 1.1	 	Formation	 	1
	 	 1.2	 	Name	 	1
	 	 1.3	 	Principal Place of Business; Other Places of Business	 	1
	 	 1.4	 	Business Purpose	 	1
	 	 1.5	 	Certificate of Formation; Filings	 	2
	 	 1.6	 	Designated Agent for Service of Process	 	2
	 	 1.7	 	Term	 	2
	ARTICLE 2 DEFINITIONS	 	2
	 	 2.1	 	"Act"	 	2
	 	 2.2	 	"Additional Interest"	 	2
	 	 2.3	 	"Additional Members"	 	2
	 	 2.4	 	"Adjusted Capital Account Deficit"	 	2
	 	 2.5	 	"Affiliate"	 	2
	 	 2.6	 	"Agreement"	 	3
	 	 2.7	 	"Assignee"	 	3
	 	 2.8	 	"Bankruptcy"	 	3
	 	 2.9	 	"Brentwood"	 	3
	 	 2.10	 	"Brentwood Manager"	 	3
	 	 2.11	 	"Brentwood Nominee"	 	3
	 	 2.12	 	"Brooks"	 	3
	 	 2.13	 	"Brooks Manager"	 	3
	 	 2.14	 	"Brooks Nominee"	 	3
	 	 2.15	 	"Campion"	 	3
	 	 2.16	 	"Campion Manager"	 	3
	 	 2.17	 	"Campion Nominee"	 	3
	 	 2.18	 	"Capital Account"	 	3
	 	 2.19	 	"Capital Contributions"	 	4
	 	 2.20	 	"Cash Available for Distribution"	 	4
	 	 2.21	 	"Certificate"	 	4
	 	 2.22	 	"Code"	 	4
	 	 2.23	 	"Company"	 	4
	 	 2.24	 	"Contribution Agreement"	 	4
	 	 2.25	 	"Control"	 	4
	 	 2.26	 	"Depreciation"	 	4
	 	 	 	 	 

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	 	 2.27	 	"Drag-Along Sale"	 	5
	 	 2.28	 	"Drag-Along Sale Date"	 	5
	 	 2.29	 	"Drag-Along Sale Notice"	 	5
	 	 2.30	 	"Drag-Along Seller"	 	5
	 	 2.31	 	"Economic Interest"	 	5
	 	 2.32	 	"Eligible Member"	 	5
	 	 2.33	 	"GAAP"	 	5
	 	 2.34	 	"Gross Asset Value"	 	5
	 	 2.35	 	"Haakenson"	 	6
	 	 2.36	 	"Immediate Family"	 	6
	 	 2.37	 	"Incapacity"	 	6
	 	 2.38	 	"Indemnitee"	 	6
	 	 2.39	 	"Interest"	 	6
	 	 2.40	 	"Investment Agreement"	 	6
	 	 2.41	 	"IRR Amount"	 	6
	 	 2.42	 	"Liquidation Event"	 	6
	 	 2.43	 	"Liquidator"	 	6
	 	 2.44	 	"Manager"	 	6
	 	 2.45	 	"Member Nominee"	 	6
	 	 2.46	 	"Members"	 	6
	 	 2.47	 	"Members' Allotment"	 	7
	 	 2.48	 	"Membership Interest"	 	7
	 	 2.49	 	"Net Profits" or "Net Losses"	 	7
	 	 2.50	 	"Offer Notice"	 	7
	 	 2.51	 	"Offered Interest"	 	7
	 	 2.52	 	"Offeree"	 	7
	 	 2.53	 	"Offeror"	 	7
	 	 2.54	 	"Percentage Interest"	 	8
	 	 2.55	 	"Permitted Assignee"	 	8
	 	 2.56	 	"Person"	 	8
	 	 2.57	 	"Plan Assets"	 	8
	 	 2.58	 	"Plan Asset Regulation"	 	8
	 	 2.59	 	"Pledge Agreement"	 	8
	 	 2.60	 	"Preferred Return"	 	8
	 	 2.61	 	"Property"	 	8
	 	 2.62	 	"Regulations"	 	8
	 	 2.63	 	"Regulatory Allocations"	 	8
	 	 	 	 	 

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	 	 2.64	 	"Remaining Interest"	 	8
	 	 2.65	 	"Requisite Members"	 	8
	 	 2.66	 	"Reserves"	 	8
	 	 2.67	 	"Responsible Party"	 	8
	 	 2.68	 	"Safe Harbors"	 	8
	 	 2.69	 	"Securities Act"	 	8
	 	 2.70	 	"Shares"	 	8
	 	 2.71	 	"Stockholders' Agreement"	 	8
	 	 2.72	 	"Substitute Member"	 	8
	 	 2.73	 	"Tag-Along Notice"	 	9
	 	 2.74	 	"Tag-Along Notice Date"	 	9
	 	 2.75	 	"Tag-Along Sale"	 	9
	 	 2.76	 	"Tag-Along Sale Date"	 	9
	 	 2.77	 	"Tag-Along Sale Notice"	 	9
	 	 2.78	 	"Tag-Along Seller"	 	9
	 	 2.79	 	"Transfer"	 	9
	 	 2.80	 	"UBTI"	 	9
	 	 2.81	 	"Unpaid IRR Amount"	 	9
	 	 2.82	 	"Unpaid Preferred Return"	 	9
	 	 2.83	 	"Unrepaid Capital Contribution"	 	9
	 	 2.84	 	"Zumiez"	 	9
	 	 2.85	 	"Zumiez Entities"	 	9
	ARTICLE 3 CAPITAL; CAPITAL ACCOUNTS; MEMBERS; REPRESENTATIONS	 	9
	 	 3.1	 	Initial Capital Contributions of Members	 	9
	 	 3.2	 	Capital Accounts	 	9
	 	 3.3	 	Additional Members	 	9
	 	 3.4	 	Member Capital	 	10
	 	 3.5	 	Additional Capital Contributions	 	10
	 	 3.6	 	Member Loans	 	10
	 	 3.7	 	Liability of Members	 	10
	 	 3.8	 	Member Representations, Warranties and Agreements	 	10
	ARTICLE 4 DISTRIBUTIONS	 	12
	 	 4.1	 	Distributions	 	12
	 	 4.2	 	Special Distribution	 	12
	 	 4.3	 	Withholding	 	12
	 	 4.4	 	Distributions in Kind	 	13
	 	 4.5	 	Limitations on Distributions	 	13
	 	 	 	 	 

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	ARTICLE 5 ALLOCATIONS OF NET PROFITS AND NET LOSSES	 	13
	 	 5.1	 	General Allocation of Net Profits and Losses	 	13
	 	 5.2	 	Regulatory Allocations	 	14
	 	 5.3	 	Tax Allocations	 	14
	 	 5.4	 	Other Provisions	 	15
	ARTICLE 6 OPERATIONS	 	15
	 	 6.1	 	Management	 	15
	 	 6.2	 	Authority of the Managers; Limitations on Authority of the Managers	 	17
	 	 6.3	 	Compensation of the Managers; Reimbursement of Expenses	 	17
	 	 6.4	 	Records and Reports	 	17
	 	 6.5	 	Liability of the Managers	 	17
	 	 6.6	 	Devotion of Time	 	18
	 	 6.7	 	Information Rights	 	18
	 	 6.8	 	Indemnification of the Members and the Managers	 	18
	 	 6.9	 	Other Activities	 	19
	 	 6.10	 	Management Rights	 	19
	 	 6.11	 	UBTI	 	20
	ARTICLE 7 INTERESTS AND TRANSFERS OF INTERESTS	 	20
	 	 7.1	 	Transfers	 	20
	 	 7.2	 	Right of First Refusal	 	20
	 	 7.3	 	Tag-Along Rights	 	21
	 	 7.4	 	Drag-Along Rights	 	23
	 	 7.5	 	Further Restrictions	 	24
	 	 7.6	 	Rights of Assignees	 	24
	 	 7.7	 	Admissions and Withdrawals	 	25
	 	 7.8	 	Forfeiture Upon Withdrawal	 	25
	 	 7.9	 	Admission of Assignees as Substitute Members	 	25
	 	 7.10	 	Withdrawal of Members	 	25
	 	 7.11	 	Conversion of Membership Interest	 	26
	 	 7.12	 	Compliance With IRS Safe Harbor	 	26
	ARTICLE 8 DISSOLUTION, LIQUIDATION, AND TERMINATION OF THE COMPANY	 	26
	 	 8.1	 	Limitations	 	26
	 	 8.2	 	Exclusive Causes	 	26
	 	 8.3	 	Effect of Dissolution	 	26
	 	 8.4	 	No Capital Contribution Upon Dissolution	 	26
	 	 8.5	 	Liquidation	 	27
	 	 	 	 	 

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	ARTICLE 9 MISCELLANEOUS	 	27
	 	 9.1	 	Appointment of Managers as Attorneys-in-Fact	 	27
	 	 9.2	 	Amendments	 	28
	 	 9.3	 	Accounting and Fiscal Year	 	28
	 	 9.4	 	Meetings	 	28
	 	 9.5	 	Entire Agreement	 	29
	 	 9.6	 	Further Assurances	 	29
	 	 9.7	 	Notices	 	29
	 	 9.8	 	Tax Matters	 	29
	 	 9.9	 	Dispute Resolution	 	29
	 	 9.10	 	Governing Law	 	31
	 	 9.11	 	Construction	 	31
	 	 912	 	Captions—Pronouns	 	31
	 	 9.13	 	Binding Effect	 	31
	 	 9.14	 	Severability	 	31
	 	 9.15	 	Confidentiality	 	31
	 	 9.16	 	UCC Article 8	 	31
	 	 9.17	 	Counterparts	 	31
	

Exhibit A	
 	

A-1
	Exhibit B	 	B-1
	Exhibit C	 	C-1

v

  

 
 

LIMITED LIABILITY COMPANY AGREEMENT
  OF
  ZUMIEZ HOLDINGS LLC    
    

        THIS LIMITED LIABILITY COMPANY AGREEMENT (the "Agreement") of Zumiez Holdings LLC, a Delaware limited liability company (the "Company"), is made and entered into
as of the 4th day of November 2002, by and among the parties listed on the signature pages hereto (collectively, the "Members"). 

 
 

RECITALS    
    

        WHEREAS, the Members have formed the Company as a limited liability company under the laws of the State of Delaware and desire to enter into a written agreement,
in accordance with the provisions of the Delaware Limited Liability Company Act, as it may be amended from time to time, and any successor to such statute (the "Act"). 

 
 

AGREEMENT    
    

        NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and for other good and valuable consideration the receipt and adequacy of
which are hereby acknowledged, the Members agree as follows: 

 
 

ARTICLE 1
  ORGANIZATIONAL MATTERS    
    

        1.1    Formation.    Richard M. Brooks ("Brooks") previously formed the Company as a limited liability company under
the Act for the purposes hereinafter set forth. The rights and liabilities of the Members of the Company shall be as provided in the Act, except as otherwise expressly provided herein. In the event of
any inconsistency between any terms and conditions contained in this Agreement and any non-mandatory provisions of the Act, the terms and conditions contained in this Agreement shall
govern. 

        1.2    Name.    The name of the Company is Zumiez Holdings LLC. The Company may also conduct business at the same time
under one or more fictitious names if a majority of the Managers (as hereinafter defined) determines that such is in the best interests of the Company and a majority of the Managers may change the
name of the Company, from time to time, in accordance with applicable law; provided that, in each case, the Managers shall promptly give written notice
of any change to the Members. 

        1.3    Principal Place of Business; Other Places of Business.    The principal place of business of the Company is
located at 11150 Santa Monica Boulevard, Suite 1200, Los Angeles, California 90025, care of Brentwood Associates, or such other place within or outside the State of Delaware as a majority of the
Managers may from time to time designate; provided that the Managers shall promptly give written notice of any change to the Members. The Company may
maintain offices and places of business at such other place or places within or outside the State of Delaware as a majority of the Managers deem advisable; provided
that the Managers shall promptly give written notice of any change to the Members. 

        1.4    Business Purpose.    The principal purpose of the Company is to make investments, directly or indirectly
through its wholly owned subsidiaries, in Zumiez Inc., a Delaware corporation ("Zumiez"), and its subsidiaries, if any, including their respective successors (the "Zumiez Entities"), and to
manage the business of the Zumiez Entities, either directly or indirectly through its wholly owned subsidiaries. The Company may also engage in any and all other ancillary or similar business, purpose
or activity deemed necessary or appropriate by a majority of the Managers and in which a limited liability company may be engaged under applicable law, including, without limitation, the Act. 

1

 

        1.5    Certificate of Formation; Filings.    Prior to the effective date of this Agreement, Richard M. Brooks caused
to be executed and filed a certificate of formation as described in Section 18-201 of the Act (the "Certificate") in the Office of the Secretary of State of the State of Delaware in
conformity with the Act. The Managers may cause to be executed and filed any duly authorized amendments to the Certificate from time to time in a form prescribed by the Act. The Managers shall also
cause to be made, on behalf of the Company, such additional filings and recordings as a majority of the Managers shall deem necessary or advisable. 

        1.6    Designated Agent for Service of Process.    The Company shall continuously maintain a registered office and a
designated and duly qualified agent for service of process on the Company in the State of Delaware. 

        1.7    Term.    The Company commenced on the date that the Certificate was filed with the Office of the Delaware
Secretary of State, and shall continue until terminated pursuant to this Agreement. 

 
 

ARTICLE 2
  DEFINITIONS    
    

        Capitalized words and phrases used and not otherwise defined elsewhere in this Agreement shall have the following meanings: 

        2.1    "Act" is defined in the Preamble. 

        2.2    "Additional Interest" is defined in Paragraph 7.3.3. 

        2.3    "Additional Members" means those Persons admitted to the Company pursuant to  Paragraph 3.3 of this Agreement. 

        2.4    "Adjusted Capital Account Deficit" means, with respect to any Member, the deficit balance, if any, in such Member's
Capital Account as of the end of the relevant fiscal year, after giving effect to the following adjustments: 

        2.4.1    Add
to such Capital Account the following items: 

        (a)   The
amount, if any, that such Member is obligated to contribute to the Company upon liquidation of such Member's Interest; and 

        (b)   The
amount that such Member is obligated to restore or is deemed to be obligated to restore pursuant to Regulations Section 1.704-1(b)(2)(ii)(c) or
the penultimate sentence of each of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and 

        2.4.2    Subtract
from such Capital Account such Member's share of the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6). 

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

        2.5    "Affiliate" means, with reference to a specified Person: (a) a Person that, directly or indirectly, through one or
more intermediaries, controls, is controlled by, or is under common control with, the specified Person, (b) any Person that is an executive officer, general partner, managing member or trustee
of, or serves in a similar capacity with respect to, the specified Person, or for which the specified Person is an executive officer, general partner, managing member or trustee, or serves in a
similar capacity, or (c) any member of the Immediate Family of the specified Person. 

2

 

        2.6    "Agreement" is defined in the Preamble. 

        2.7    "Assignee" means any Person (a) to whom a Member (or assignee thereof) Transfers all or any part of its interest
in the Company, and (b) which has not been admitted to the Company as a Substitute Member pursuant to Paragraph 7.9 of this Agreement. 

        2.8    "Bankruptcy" means the occurrence of any event described in Section 18-304 of the Act. 

        2.9    "Brentwood" means Brentwood-Zumiez Investors, LLC. 

        2.10    "Brentwood Manager" is defined in Paragraph 6.1.4. 

        2.11    "Brentwood Nominee" is defined in Paragraph 6.9.1. 

        2.12    "Brooks" means Richard M. Brooks. 

        2.13    "Brooks Manager" is defined in Paragraph 6.1.4. 

        2.14    "Brooks Nominee" is defined in Paragraph 6.9.1. 

        2.15    "Campion" means Thomas D. Campion. 

        2.16    "Campion Manager" is defined in Paragraph 6.1.4. 

        2.17    "Campion Nominee" is defined in Paragraph 6.9.1. 

        2.18    "Capital Account" means the Capital Account maintained for each Member on the Company's books and records in accordance
with the following provisions: 

        2.18.1    To
each Member's Capital Account there shall be added (a) such Member's Capital Contributions, (b) such Member's allocable share of Net Profits and any
items in the nature of income or gain that are specially allocated to such Member pursuant to Article 5 hereof or other provisions of this Agreement,
and (c) the amount of any Company liabilities assumed by such Member or which are secured by any property distributed to such Member. The principal amount of a promissory note which is not
readily traded on an established securities market and which is contributed to the Company by the maker of the note (or a Member related to the maker of the note within the meaning of Regulations
Section 1.704-1(b)(2)(ii)(c)) shall not be included in the Capital Account of any Member until the Company makes a taxable disposition of the note or until (and to the extent)
principal payments are made on the note, all in accordance with Regulations Section 1.704-1(b)(2)(iv)(d)(2). 

        2.18.2    From
each Member's Capital Account there shall be subtracted (a) the amount of (i) cash and (ii) the Gross Asset Value of any Company assets
(other than cash) distributed to such Member (other than any payment of principal and/or interest to such Member pursuant to the terms of a loan made by the Member to the Company) pursuant to any
provision of this Agreement, (b) such Member's allocable share of Net Losses and any other items in the nature of expenses or losses that are specially allocated to such Member pursuant to  Article
5 or other provisions of this Agreement, and (c) liabilities of such Member assumed by the Company or which are secured by any property
contributed by such Member to the Company. 

        2.18.3    In
the event any Interest is Transferred 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 Interest. 

        2.18.4    In
determining the amount of any liability for purposes of Paragraphs 2.18.1 and 2.18.2 hereof, there shall be taken
into account Code Section 752(c) and any other applicable provisions of the Code and Regulations. 

3

 

        2.18.5    The
foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulations Sections
1.704-1(b) and 1.704-2 and shall be interpreted and applied in a manner consistent with such Regulations. In the event that a majority of the Managers determine that it is prudent to
modify the manner in which the Capital Accounts, or any additions or subtractions thereto, are computed in order to comply with such Regulations, the Managers may make such modification,  provided that
it is not likely to have a material effect on the amounts distributable to any Member pursuant to  Article 8 hereof upon the dissolution of the Company. The Managers shall also make (a) any
adjustments that are necessary or appropriate to
maintain equality between the Capital Accounts of the Members and the amount of Company capital reflected on the Company's balance sheet, as computed for book purposes, in accordance with Regulations
Section 1.704-1(b)(2)(iv)(q), and (b) any appropriate modifications in the event that unanticipated events might otherwise cause this Agreement not to comply with Regulations
Sections 1.704-1(b) and 1.704-2. 

        2.19    "Capital Contributions" means, with respect to any Member, the total amount of money and the initial Gross Asset Value
of property (other than money) contributed to the capital of the Company by such Member, whether as an initial Capital Contribution or as an additional Capital Contribution. 

        2.20    "Cash Available for Distribution" means, with respect to any fiscal year, all Company cash receipts, after deducting
payments for operating expenses, payments required to be made in connection with any loan to the Company or any other loan secured by a lien on any Company assets, capital expenditures and any other
amounts set aside for the restoration, increase or creation of reasonable Reserves. 

        2.21    "Certificate" means the Certificate of Formation of the Company filed under the Act in the Office of the Delaware
Secretary of State for the purpose of forming the Company as a Delaware limited liability company, and any duly authorized, executed and filed amendments or restatements thereof. 

        2.22    "Code" means the Internal Revenue Code of 1986, as amended from time to time. 

        2.23    "Company" is defined in the Preamble. 

        2.24    "Contribution Agreement" means the Contribution Agreement, dated as of October 18, 2002, by and among Zumiez, the
Company and each of the Members. 

        2.25    "Control" means, with respect to any Person, the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise. 

        2.26    "Depreciation" means, for each fiscal year or other period, an amount equal to the Federal income tax depreciation,
amortization or other cost recovery deduction allowable with respect to an asset for such period, except that if the Gross Asset Value of an asset differs from its adjusted basis for Federal income
tax purposes at the beginning of such period, Depreciation shall be an amount that bears the same ratio to such beginning Gross Asset Value as the Federal income tax depreciation, amortization or
other cost recovery deduction for such period bears to such beginning adjusted tax basis; provided, however, that if the Federal income tax
depreciation, amortization or other cost recovery deduction for such period is zero, Depreciation shall be determined with reference to such. beginning Gross Asset Value using any
reasonable method selected by the Managers. 

4

 

        2.27    "Drag-Along Sale" is defined in Paragraph 7.4.1. 

        2.28    "Drag-Along Sale Date" is defined in Paragraph 7.4.2. 

        2.29    "Drag-Along Sale Notice" is defined in  Paragraph 7.4.2. 

        2.30    "Drag-Along Seller" is defined in Paragraph 7.4.1. 

        2.31    "Economic Interest" means a Person's right to share in the Net Profits, Net Losses, or similar items of, and to receive
distributions from, the Company, but does not include any other rights of a Member including, without limitation, the right to vote or to participate in the management of the Company, or, except as
specifically provided in this Agreement or required under the Act, any right to information concerning the business and affairs of the Company. 

        2.32    "Eligible Member" means, with respect to Brentwood, Campion or Brooks, as applicable, that such Member, together with
its Affiliates, continues to directly or indirectly Control at least 50% of the Percentage Interest owned by such Member as of the date of this Agreement, provided, however, that only for purposes of
determining whether such Member is an Eligible Member, such Member's Percentage Interest shall be appropriately adjusted to not take into account any decrease in a Member's Percentage Interest
resulting from the admission of Additional Members pursuant to Paragraph 3.3. Certain of the rights in this Agreement are dependent on a Member being an
Eligible Member. The rights of a transferee of an Eligible Member to these particular rights are governed by Paragraph 7.9.3. 

        2.33    "GAAP" means generally accepted United States accounting principles as in effect from time to time. 

        2.34    "Gross Asset Value" means, with respect to any asset, the asset's adjusted basis for Federal income tax purposes, except
as follows: 

        2.34.1    The
initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of such asset, as determined by a majority of
the Managers and the contributing Member. 

        2.34.2    The
Gross Asset Values of all Company assets immediately prior to the occurrence of any event described in subsection (a), subsection (b), subsection (c) or
subsection (d) hereof shall be adjusted to equal their respective gross fair market values, as determined by a majority of the Managers using such reasonable method of valuation as it may
adopt, as of the following times: 

        (a)   the
acquisition of an additional interest in the Company (other than in connection with the execution of this Agreement) by a new or existing Member in exchange for more
than a de minimis Capital Contribution, if a majority of the Managers reasonably determine that such adjustment is necessary or appropriate to reflect
the relative Economic Interests of the Members in the Company; 

        (b)   the
liquidation of the Company within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); 

        (c)   on
any date the IRR Amount is required to be determined; and 

        (d)   at
such other times as a majority of the Managers shall reasonably determine necessary or advisable in order to comply with Regulations Sections 1.704-1(b)
and 1.704-2. 

        2.34.3    The
Gross Asset Value of any Company asset distributed to a Member shall be the gross fair market value of such asset on the date of distribution as determined by a
majority of the Managers. 

5

 

        2.34.4    The
Gross Asset Values of Company assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code
Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Regulations
Section 1.704-1(b)(2)(iv)(m); provided, however, that Gross Asset Values shall not be adjusted pursuant to this  Paragraph 2.34.4 to the extent that a
majority of the Managers reasonably determine that an adjustment pursuant to  Paragraph 2.34.2 above is necessary or appropriate in connection with a transaction that would otherwise result in an
adjustment pursuant to this  Paragraph 2.34.4. 

        2.34.5    If
the Gross Asset Value of a Company asset has been determined or adjusted pursuant to Paragraph 2.34.1,  Paragraph 2.34.2 or Paragraph 2.34.4 hereof, such Gross Asset Value shall thereafter be adjusted by the
Depreciation taken into account with respect to such Company Asset for purposes of computing Net Profits and Net Losses. 

        2.35    "Haakenson" means John G. Haakenson. 

        2.36.    "Immediate Family" means, and is limited to, an individual Member's current spouse, parents,
parents-in-law, grandparents, children, siblings, and grandchildren, or a trust, estate or other estate-planning vehicle, all of the beneficiaries of which consist of such
Member or members of such Member's Immediate Family. 

        2.37    "Incapacity" means the entry of an order of incompetence or of insanity, or the death, dissolution, Bankruptcy or
termination (other than by merger or consolidation) of any Person. 

        2.38    "Indemnitee" is defined in Paragraph 6.8.1. 

        2.39    "Interest" means a Member's Membership Interest or Economic Interest. 

        2.40    "Investment Agreement" means the Investment Agreement, dated as of November 4, 2002, by and between Brentwood and
Zumiez. 

        2.41    "IRR Amount" means the amount of cash and/or the Gross Asset Value of Property that if distributed to Brentwood on the
date in respect of which the IRR Amount is being determined and after taking into account the amount of the Preferred Return distributed to Brentwood under  Article 4 and Article 8, would be sufficient to provide Brentwood with a cumulative 25% annual rate of
return, compounded annually, on all Capital Contributions. For purposes of calculating the IRR Amount, all Capital Contributions shall be deemed made as of the date such Capital Contributions are
actually made to the Company and, no Capital Contributions shall be deemed to have been made prior to the date hereof. 

        2.42    "Liquidation Event" means (i) any sale or other disposition of all or substantially all of the assets of the
Company or a related series of transactions that, taken together, result in the sale or other disposition of all or substantially all of the assets of the Company, including, but not limited to, a
sale of the Shares of Zumiez in accordance with the terms. of Section V of the Stockholders' Agreement, and (ii) the consummation of an initial public offering of Zumiez in
accordance with Section XIII of the Stockholders' Agreement. 

        2.43    "Liquidator" is defined in Paragraph 8.5.1. 

        2.44    "Manager" means a Person elected or appointed to the Board of Managers in accordance with  Paragraph 6.1.4. 

        2.45    "Member Nominee" is defined in Paragraph 6.9.1. 

        2.46    "Members" means the Persons owning Membership Interests, as reflected in the books and records of the Company, as
amended from time to time, any Substitute Members and any Additional Members, with each Member being referred to, individually, as a "Member."

6

 

        2.47    "Members' Allotment" is defined in Paragraph 7.3. 

        2.48    "Membership Interest" means the entire ownership interest of a Member in the Company at any particular time, including
without limitation, the Member's Economic Interest, any and all rights to vote and otherwise participate in the Company's affairs, and the rights to any and all benefits to which a Member may be
entitled as provided in this Agreement, together with the obligations of such Member to comply with all of the terms and provisions of this Agreement. 

        2.49    "Net Profits" or "Net Losses" means, for each fiscal year or other
period, an amount equal to the Company's taxable income or loss for such year or period determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or
deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments (without duplication): 

        2.49.1    Any
income of the Company that is exempt from Federal income tax and not otherwise taken into account in computing Net Profits or Net Losses pursuant to this  Paragraph 2.49 shall be added to such taxable
income or loss; 

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

        2.49.3    Gain
or loss resulting from any disposition of Company assets where such gain or loss is recognized for Federal income tax purposes shall be computed by reference to
the Gross Asset Value of the Company assets disposed of, notwithstanding that the adjusted tax basis of such Company assets differs from its Gross Asset Value; 

        2.49.4    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 fiscal year; 

        2.49.5    To
the extent an adjustment to the adjusted tax basis of any asset included in Company assets pursuant to Code Section 734(b) or Code Section 743(b) is
required pursuant to Regulations Section 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 asset) or loss (if the adjustment decreases the basis of
the asset) from the disposition of the asset and shall be taken into account for the purposes of computing Net Profits and Net Losses; 

        2.49.6    If
the Gross Asset Value of any Company Asset is adjusted in accordance with Paragraph 2.34.2 or  Paragraph 2.34.3 of this Agreement, the amount of such
adjustment shall be taken into account in the taxable year of such adjustment as gain or loss
from the disposition of such asset for purposes of computing Net Profits or Net Losses; and 

        2.49.7    Notwithstanding
any other provision of this Paragraph 2.49, any items that are specially allocated pursuant to  Paragraph 5.2 hereof shall not be taken into account in
computing Net Profits or Net Losses. 

        2.50    "Offer Notice" is defined in Paragraph 7.2.2. 

        2.51    "Offered Interest" is defined in Paragraph 7.2.2. 

        2.52    "Offeree" is defined in Paragraph 7.2.3. 

        2.53    "Offeror" is, defined in Paragraph 7.2.1. 

7

  

        2.54    "Percentage Interest" means, with respect to each Member, the percentage set forth opposite such Member's name on  Exhibit "A" (which exhibit shall take into account the effects of the Special Distribution pursuant to  Paragraph 4.2 hereof), attached hereto as it may be amended,
modified or supplemented from time to time, to the extent necessary to reflect accurately
transfers, redemptions, Capital Contributions, the issuance of additional Membership Interests, or similar events having an effect on a Member's Percentage Interest. 

        2.55    "Permitted Assignee" is defined in Paragraph 7.2.3. 

        2.56    "Person" means and includes an individual, a corporation, a partnership, a limited liability company, a trust, an
unincorporated organization, a government or any department or agency thereof, or any entity similar to any of the foregoing. 

        2.57    "Plan Assets" shall have the meaning set forth in the Plan Asset Regulation. 

        2.58    "Plan Asset Regulation" means 29 C.F.R. §2510.3-101. 

        2.59    "Pledge Agreement" means the Indemnity Pledge Agreement, dated as of November 4, 2002, by and among the Company,
Brentwood, Thomas D. Campion and Richard M. Brooks. 

        2.60    "Preferred Return" means an amount equal to the sum of (i) the accrued interest on a Member's initial Capital
Contribution and (ii) the accrued interest on any additional Capital Contribution by such member, in each case (a) taking into account any repayments of the Capital Contribution and
(b) at an annual rate of 8%, compounded annually, from the date of such Capital Contribution until the repayment of such Capital Contribution, or portion thereof, as the case may be. 

        2.61    "Property" means all property and assets of the Company (whether such assets are real or personal, or are owned, leased
or otherwise possessed or held), including cash, and any improvements thereto, and shall include both tangible and intangible property. 

        2.62    "Regulations" means proposed, temporary and final Treasury Regulations promulgated under the Code, as such regulations
may be amended from time to time. 

        2.63    "Regulatory Allocations" is defined in Paragraph 5.2.4. 

        2.64    "Remaining Interest" is defined in Paragraph 7.2.3. 

        2.65    "Requisite Members" means Members holding an aggregate Percentage Interest of at least 662/3%. 

        2.66    "Reserves" means funds set aside or amounts allocated to reserves that shall be maintained in amounts deemed sufficient
by a majority of the Managers for costs or expenses incident to the conduct of business by the Company as contemplated hereunder. 

        2.67    "Responsible Party" is defined in Paragraph 6.7.6. 

        2.68    "Safe Harbors" is defined in Paragraph 7.12. 

        2.69    "Securities Act" is defined in Paragraph 3.8.3. 

        2.70    "Shares" means all of the capital stock of Zumiez owned by the Company. 

        2.71    "Stockholders' Agreement" means the Amended and Restated Stockholders' Agreement, dated as of November 4, 2002,
by and among Zumiez and the stockholders listed on the signature pages thereto. 

        2.72    "Substitute Member" means any Person (a) to whom a Member (or assignee thereof) Transfers all or any part of its
interest in the Company, and (b) which has been admitted to the Company as a Substitute Member pursuant to Paragraph 7.9 of this Agreement. 

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        2.73    "Tag-Along Notice" is defined in Paragraph 7.3.3. 

        2.74    "Tag-Along Notice Date" is defined in Paragraph 7.3.3. 

        2.75    "Tag-Along Sale" is defined in Paragraph 7.3.1. 

        2.76    "Tag-Along Sale Date" is defined in Paragraph 7.3.3. 

        2.77    "Tag-Along Sale Notice" is defined in Paragraph 7.3.3. 

        2.78    "Tag-Along Seller" is defined in Paragraph 7.3.1. 

        2.79    "Transfer" means, with respect to any interest in the Company, a sale, conveyance, exchange, assignment, pledge,
encumbrance, gift, bequest, hypothecation or other transfer or disposition by any other means, whether for value or no value and whether voluntary or involuntary (including, without limitation, by
operation of law), or an agreement to do any of the foregoing. The terms "Transferred" and "Transferring" shall have correlative meanings. 

        2.80    "UBTI" means unrelated business taxable income, as defined under Section 512 of the Code. 

        2.81    "Unpaid IRR Amount" means the IRR Amount less any prior payments made in respect of the IRR Amount pursuant to  Paragraph 4.1.2(c) or Paragraph 8.5.1(b).

        2.82    "Unpaid Preferred Return" means the Preferred Return of a Member less any prior payments of the Preferred Return
received by such Member pursuant to Paragraph 4.1.2(a) and (b) or Paragraph 8.5.1(b). 

        2.83    "Unrepaid Capital Contribution" means the Capital Contribution of a Member less any repayment of such Member's Capital
Contribution to such Member. For the avoidance of doubt, the amounts of cash distributed to Members pursuant to Paragraph 4.2 constitute repayment of
such Members' Capital Contributions. 

        2.84    "Zumiez" is defined in Paragraph 1.4. 

        2.85    "Zumiez Entities" is defined in Paragraph 1.4. 

 
 

ARTICLE 3
  CAPITAL; CAPITAL ACCOUNTS; MEMBERS; REPRESENTATIONS    
    

        3.1    Initial Capital Contributions of Members.    The names addresses, initial Capital Contributions and Percentage
Interests of the Members are set forth on Exhibit "A" attached hereto and incorporated herein. All Members acknowledge and agree that the Capital
Contributions set forth in Exhibit "A" represent the amount of money and the Gross Asset Value of all property (other than money) initially contributed
by the Members. 

        3.2    Capital Accounts.    A Capital Account shall be established and maintained for each Member in accordance with
the terms of this Agreement. 

        3.3    Additional Members    

        3.3.1    Following
formation of the Company and subject to the provisions of Paragraph 3.3.2, the Managers are hereby authorized
to cause the Company to issue interests in the Company, and to admit one or more recipients of such interests as additional Members ("Additional Members") from time to time, on such terms and
conditions and for such Capital Contributions, if any, as a majority of the Managers may determine. As a condition to being admitted to the Company, each Additional Member shall execute an agreement
to be bound by the terms and conditions of this Agreement. 

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        3.3.2    Preemptive Rights.    

        (a)   If
the Company proposes to issue additional interests in the Company, each Eligible Member shall have the right to subscribe, on a pro
rata basis in accordance with its Percentage Interest, to its proportionate share of such issuance. 

        (b)   If
the Company proposes to issue any additional interests in the Company, it shall give each Eligible Member written notice of its intention, and the terms and
conditions upon which the Company proposes to issue the same. Each Eligible Member shall have fifteen (15) days from the giving of such notice to agree to purchase its  pro rata share of the
additional interests being issued upon the terms and conditions specified in the notice by giving written notice to the Company
and stating therein the quantity of interests to be purchased. If the Eligible Member fails to exercise in full the rights of first refusal, then the Company shall have ninety (90) days
thereafter to sell the interests in respect of which the Eligible Member's rights were not exercised, at a price and upon general terms and conditions materially no more favorable to the purchasing
Eligible Members and the other purchasing parties than specified in the Company's notice to the Eligible Members (e.g., the price for such interests
proposed to be offered for sale to purchasing Eligible Members and others shall be no more favorable (e.g., less) than the price specified in the Company's notice to the Eligible Members). If the
Company has not sold such interests within ninety (90) days of the notice provided in this Paragraph 3.3.2, the Company shall not thereafter
issue or sell such interests, without first offering such interests to the Eligible Members in the manner provided above. 

        3.4    Member Capital.    Except as otherwise provided in this Agreement or with the prior written consent of a
majority of the Managers: (a) no Member shall demand or be entitled to receive a return of or interest on its Capital Contributions or Capital Account, and (b) no Member shall withdraw
any portion of its Capital Contributions or receive any distributions from the Company as a return of capital on account of such Capital Contributions. 

        3.5    Additional Capital Contributions.    No Member is obligated to make any additional Capital Contributions to the
Company. 

        3.6    Member Loans.    No Member shall be required or permitted (except with the consent of a majority of the
Managers) to make any loans or otherwise lend any funds to, act as a surety or endorser for, assume one or more specific obligations of, provide collateral for, or enter into other credit, guarantee,
financing or refinancing arrangements, with, the Company. No loans made by any Member to the Company shall have any effect on such Member's Percentage Interest, such loans representing a debt of the
Company payable or collectible solely from the assets of the Company in accordance with the terms and conditions upon which such loans were made. 

        3.7    Liability of Members.    Except as otherwise required by any non-waiveable provision of the Act or
other applicable law: (a) no Member shall be personally liable in any manner whatsoever for any debt, liability or other obligation of the Company, whether such debt, liability or other
obligation arises in contract, tort, or otherwise; and (b) no. Member shall in any event have any liability whatsoever in excess of (i) the amount of its Capital
Contributions, (ii) its share of any assets and undistributed profits of the Company, and (iii) the amount of any wrongful distribution to such Member, if, and only
to the extent, such Member has actual knowledge (at the time of the distribution) that such distribution is made in violation of Section 18-607 of the Act. 

        3.8    Member Representations, Warranties and Agreements.    Each Member hereby represents and warrants to, and agrees
with, the Company as set forth below: 

        3.8.1    The
Member has full power and authority to execute, deliver and perform its obligations under this Agreement, and this Agreement is a valid and binding obligation of
the Member, enforceable in accordance with its terms, except that the enforcement thereof may be 

10

 

subject
to bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors' rights generally and to general principles of equity (regardless
of whether such enforcement is considered in a proceeding in equity or at law). The Member is not subject to any agreement not to compete or other restriction on its ability to acquire the Membership
Interests being obtained pursuant to this Agreement, and the Member will not enter into any such agreement or restriction. 

        3.8.2    The
Member has received and reviewed this Agreement and all attachments hereto, and such business, financial and other information as it deems necessary and
appropriate to enable it to evaluate the financial risk inherent in making an investment in the Company, including, but not limited to, information with respect to the Zumiez Entities. The Member
acknowledges that on the date of this Agreement the Company has no assets or liabilities other than the cash contributions and stock contributions to be made by the Members as set forth on  Exhibit A hereto. 

        3.8.3    The
Member is an "accredited investor" as defined in Regulation D under the Securities Act of 1933, as amended (the "Securities Act"). The Member is acquiring
the Membership Interests hereunder with its own funds or property for investment, for its own account, and not as a nominee or agent for any other person, firm or corporation, and not with a view to
the sale or distribution of all or any part thereof, and it has no present intention of selling, granting a participation in, or otherwise distributing any of the Membership Interests. Except as
provided herein, the Member does not have any contract, undertaking, agreement or arrangement with any person, firm or corporation to sell, transfer or grant a participation to such person, firm or
corporation with respect to any of the Membership Interests. 

        3.8.4    The
Member understands and agrees that (i) the Membership Interests will not be registered under the Securities Act, in part based upon an exemption from
registration predicated on the accuracy and completeness of its representations and warranties appearing herein; (ii) it will not be permitted to sell, transfer or assign any of the Membership
Interests, unless, subject to the other provisions of this Agreement, an exemption from the registration and prospectus delivery requirements of the Securities Act is available and any sale, transfer
or assignment of the Membership Interests will be subject to
restrictions as provided in this Agreement; and (iii) there is no assurance that such an exemption from registration will ever be available or that the Membership Interests will ever be able to
be sold. 

        3.8.5    The
Member agrees that in no event will it Transfer any Membership Interests unless and until (subject to the provisions of  Paragraph 7.1) (i) it shall have notified the Company of the proposed
disposition and shall have furnished the Company with a statement of the
circumstances surrounding the proposed disposition, and (ii) it shall have furnished the Company with an opinion of counsel reasonably satisfactory in form and content to the Company to the
effect that (A) such disposition will not require registration of such Membership Interests under the Securities Act or applicable state securities laws, or (B) that appropriate action
necessary for compliance with the-Securities Act and applicable state-securities laws has been taken, or (iii) the Company shall have waived, expressly and in writing, the
provisions of clauses (i) and (ii) of this subsection. 

        3.8.6    The
Member has such knowledge, sophistication and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in
the Company and of making an informed investment decision with respect thereto, and has the ability to bear the economic risks of its investment for an indefinite period of time and can afford to
suffer the complete loss of its investment in the Company. The Member has sought and relied on the professional advice of its legal counsel and tax advisor and understands that the Company has not
rendered any legal or tax advice to such Member. 

        3.8.7    Each
Member acknowledges that, pursuant to the Investment Agreement, a copy of which each Member has reviewed, Brentwood is obligated, subject to certain terms and
conditions, 

11

 

to
purchase from Zumiez up to an aggregate of $10.0 million of convertible preferred stock of Zumiez. 

        3.8.8    Each
Member acknowledges that, pursuant to the Corporate Development and Administrative Services Agreement, dated November 4, 2002, between Zumiez and Brentwood
Private Equity III, LLC, a copy of which each Member has reviewed, Zumiez is obligated to pay certain management and transaction fees to Brentwood Private Equity III, LLC, an affiliate of Brentwood. 

        3.8.9    Each
Member acknowledges that Brooks and Zumiez have entered into an employment agreement, a copy of which each Member has reviewed. 

 
 

ARTICLE 4
  DISTRIBUTIONS    
    

        4.1    Distributions.    

        4.1.1    Except
as otherwise provided in Paragraph 4.2 or in Article 8,
distributions of Property or Cash Available for Distribution shall be made only at such times as may be determined in the sole discretion of a majority of the Managers. 

        4.1.2    Except
as provided in Paragraph 4.2, all distributions of Property or Cash Available for Distribution shall be
distributed to the Members in the manner and order of priority set forth below: 

        (a)   First,
to Brentwood in an amount equal to Brentwood's Unrepaid Capital Contribution plus the Unpaid Preferred Return; 

        (b)   Second,
to the other Members (other than Brentwood), pro rata, in an amount equal to the other Member's Unrepaid Capital
Contribution plus the Unpaid Preferred Return; 

        (c)   Third,
to the Members, pro rata in accordance with their respective Percentage Interests, until Brentwood receives an
amount equal to the Unpaid IRR Amount; 

        (d)   Fourth,
to the Members, pro rata, in accordance with. their respective Percentage Interests (except that 50% of the
amount otherwise distributable to Brentwood shall be distributed to Campion, Brooks and Haakenson pro rata, in accordance with such Members' respective
Percentage Interests set forth on Exhibit B hereto), until such Members receive the respective dollar amounts set forth opposite such Member's
name on Exhibit B hereto less the aggregate amount of any cash or Property previously received by such Members pursuant to this  Paragraph 4.1.2(d); and finally 

        (e)   Fifth,
to the Members, pro rata, in accordance with their respective Percentage Interests. 

        4.2.    Special Distribution.    On the date hereof, the Company shall distribute in cash to Campion and Haakenson,
the amounts set forth on Exhibit "C" hereto. For the avoidance of doubt, the parties hereto shall treat, for United States federal income tax purposes,
such distribution as a "purchase" by Brentwood and a "sale" by Campion and Haakenson, of the shares of common stock of Zumiez, as set forth on  Exhibit C hereto. 

        4.3    Withholding.    The Company may withhold distributions or portions thereof if it is required to do so by any
applicable rule, regulation, or law, and each Member hereby authorizes the Company to withhold from or pay on behalf of or with respect to such Member any amount of Federal, state, local or foreign
taxes that Brentwood (after advice from the independent certified public accountant that prepares the Company's tax returns) determines the Company is required to withhold or pay with respect to any
amount distributable or allocable to such Member pursuant to this Agreement. Any 

12

 

amount
paid on behalf of or with respect to a Member pursuant to this Paragraph 4.3 shall constitute a loan by the Company to such Member, which loan
shall be repaid by such Member within fifteen (15) days after notice from the Company that such payment must be made unless: (i) the Company withholds such payment from a distribution
which would otherwise be made to the Member or (ii) a majority of the Managers determine, in their sole and absolute discretion, that such payment may be satisfied out of Cash Available For
Distribution which would, but for such payment, be distributed to the Member. Any amounts withheld pursuant to this Paragraph 4.3 shall be treated as
having been distributed to such Member. In the event that a Member fails to pay any amounts owed to the Company pursuant to this Paragraph 4.3 when due,
the remaining Members may, in their respective sole and absolute discretion, elect to make the payment to the Company on behalf of such defaulting Member, and in such event shall be deemed to have
loaned such amount to such defaulting Member and shall succeed to all rights and remedies of the Company as against such defaulting Member (including, without limitation, the right to receive
distributions). Any amounts payable by a Member hereunder shall bear interest at eight percent (8%) from the date such amount is due (i.e.,
15 days after demand) until such amount is paid in full. A Member's obligations hereunder shall survive the dissolution, liquidation, or winding up of the Company. Each Member hereby submits to
the jurisdiction of any state or Federal court sitting in the state of Delaware in any action arising out of or relating to this Agreement or the transactions contemplated herein. 

        4.4    Distributions in Kind.    No right is given to any Member to demand or receive property other than cash as
provided in this Agreement. A majority of the Managers may determine, in their sole and absolute discretion, to make a distribution in kind of Company assets to the Members, and such Company assets
shall be distributed in such a fashion as to ensure that the Gross Asset Value thereof is distributed in accordance with Articles 4 and 8 hereof. If the
Managers plan to make a distribution of securities, the Managers shall provide at least five business days prior written notice to the Members of such proposed distribution of securities, which notice
shall contain the proposed distribution date, a description of the securities proposed to be distributed (including any voting rights), the quantity of securities proposed to be distributed and the
equity capitalization of the company whose securities are proposed to be distributed. 

        4.5    Limitations on Distributions.    Notwithstanding any provision to the contrary contained in this Agreement,
neither the Company nor the Managers, on behalf of the Company, shall knowingly make a distribution to any Member or the holder of any Economic Interest on account of its Membership Interest or
Economic Interest in the Company (as applicable) in violation of Section 18-607 of the Act. 

 
 

ARTICLE 5
  ALLOCATIONS OF NET PROFITS AND NET LOSSES    
    

        5.1    General Allocation of Net Profits and Losses.    

        5.1.1    Net
Profits and Net Losses shall be determined and allocated (i) with respect to each fiscal year of the Company as of the end of such fiscal year and
(ii) among the Members in a manner such that the Capital Account of each member immediately after making such allocation, is, as nearly as possible, equal (proportionately) to the distributions
that would be made to such member during such fiscal year pursuant to Article 8 if (a) the Company were dissolved and its affairs wound up and
its remaining assets were sold for cash in an amount equal to their fair market value (b) all Company liabilities were satisfied (limited with respect to each nonrecourse liability to the fair
market value of the assets securing such liability), and (c) the net assets of the Company were distributed in accordance with Article 4 to the
Members immediately after making such allocation. Subject to the other provisions of this Agreement, an allocation to a Member of a share of Net Profits or Net Losses shall be treated as an allocation
of the same share of each item of income, gain, loss or deduction that is taken into account in computing Net Profits or Net Losses. 

13

 

        5.2    Regulatory Allocations.    Notwithstanding the foregoing provisions of this  Article 5, the following special allocations
shall be made in the following order of priority: 

        5.2.1    If
any Member unexpectedly receives an adjustment, allocation, or distribution of the type contemplated by Regulations Section 1.704-1
(b)(2)(ii)(d)(4), (5) or (6), items of income and gain shall be allocated to all such Members (in proportion to the amounts of their respective Adjusted Capital Account Deficits) in an amount
and manner sufficient to eliminate the Adjusted Capital Account Deficit of such Member as quickly as possible. It is intended that this Paragraph 5.2.1
qualify and be construed as a "qualified income offset" within the meaning of Regulations Section 1.704-1(b)(2)(ii)(d). 

        5.2.2    If
the allocation of Net Loss to a Member as provided in Paragraph 5.1 hereof would create or increase an Adjusted
Capital Account Deficit, there shall be allocated to such Member only that amount of Net Loss as will not create or increase an Adjusted Capital Account Deficit. The Net Loss that would, absent the
application of the preceding sentence, otherwise be allocated to such Member shall be allocated to the other Members in accordance with their relative Percentage Interests, subject to the limitations
of this Paragraph 5.2.2. 

        5.2.3    To
the extent that an adjustment to the adjusted tax basis of any Company Asset pursuant to Code Section 734(b) or Code Section 743(b) is required,
pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts
as the result of a distribution to a Member in complete liquidation of its Membership Interest in the Company, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain
(if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such gain or loss shall be specially allocated to the Members in accordance with their
interests in the Company in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Members to whom such distribution was made in the event that Regulations
Section 1.704-1(b)(2)(iv)(m)(4) applies. 

        5.2.4    The
allocations set forth in Paragraphs 5.2.1, 5.2.2 and 5.2.3 hereof (the "Regulatory Allocations") are intended to
comply with certain requirements of Regulations Sections 1.704-1(b) and 1.704-2(i). Notwithstanding the provisions of Paragraph
5.1.1, the Regulatory Allocations shall be taken into account in allocating other items of income, gain, loss and deduction among the Members so that, to the extent possible, the net amount of such
allocations of other items and the Regulatory Allocations to each Member shall be equal to the net amount that would have been allocated to each such Member if the Regulatory Allocations had not
occurred. 

        5.3    Tax Allocations.    

        5.3.1    Except
as provided in Paragraph 5.3.2 hereof, for income tax purposes under the Code and the Regulations each Company
item of income, gain, loss and deduction shall be allocated between the Members as its correlative item of "book" income, gain, loss or deduction is allocated pursuant to this  Article 5. 

        5.3.2    Tax
items with respect to Company assets that are contributed to the Company with a Gross Asset Value that varies from its basis in the hands of the contributing
Member immediately preceding the date of contribution shall be allocated between the Members for income tax purposes pursuant to Regulations promulgated under Code Section 704(c) so as to take
into account such variation. The Company shall account for such variation under any method approved under Code Section 704(c) and the applicable Regulations as chosen by a majority of the
Managers, including, without limitation, the "traditional method" as described in Regulations Section 1.704-3(b). If the Gross Asset Value of any Company asset is adjusted pursuant
to Paragraph 2.32, subsequent allocations of income, gain, loss and deduction with respect to such Company asset shall take account of any variation
between the adjusted basis of such Company 

14

 

asset
for Federal income tax purposes and its Gross Asset Value in the same manner as under Code Section 704(c) and the Regulations promulgated thereunder under any method approved under Code
Section 704(c) and the applicable Regulations as chosen by a majority of the Managers. Allocations pursuant to this Paragraph 5.3.2 are solely
for purposes of Federal, state and local taxes and shall not affect, or in any way be taken into account in computing, any Member's Capital Account or share of Net Profits, Net Losses and any other
items or distributions pursuant to any provision of this Agreement. 

        5.4    Other Provisions.    

        5.4.1    For
any fiscal year during which any part of a Membership Interest or Economic Interest is transferred between the Members or to another Person, the portion of the Net
Profits, Net Losses and other items of income, gain, loss, deduction and credit that are allocable with respect to such part of a Membership Interest or Economic Interest shall be apportioned between
the transferor and the transferee under any method allowed pursuant to Section 706 of the Code and the applicable Regulations as determined by a majority of the Managers. 

        5.4.2    In
the event that the Code or any Regulations require allocations of items of income, gain, loss, deduction or credit different from those set forth in this  Article 5, the Managers are hereby authorized to
make new allocations in reliance on the Code and such Regulations, and no such new allocation shall
give rise to any claim or cause of action by any Member. 

        5.4.3    For
purposes of determining a Member's proportional share of the Company's "excess nonrecourse liabilities" within the meaning of Regulations
Section 1.752-3(a)(3), each Member's interest in Net Profits shall be such Member's Percentage Interest. 

        5.4.4    To
the extent that any Member individually receives remuneration that results directly or indirectly from Company activity or participation, such amounts shall be
remitted to the Company. Such amount is to be allocated in accordance with the provisions of this Article 5. 

        5.4.5    The
Members acknowledge and are aware of the income tax consequences of the allocations made by this Article 5 and
hereby agree to be bound by the provisions of this Article 5 in reporting their shares of Net Profits, Net Losses and other items of income, gain, loss,
deduction and credit for Federal, state and local income tax purposes. 

 
 

ARTICLE 6
  OPERATIONS    
    

        6.1    Management.    

        6.1.1    Subject
to the provisions of this Agreement relating to actions required to be approved by the Members, the business, property and affairs of the Company shall be
managed and all powers of the Company shall be exercised by or under the direction of the Managers. 

        6.1.2    None
of the Managers (acting in their capacity as such) shall have authority to bind the Company to any third party with respect to any matter unless the Board of
Managers shall have approved such matter and authorized such Manager(s) to bind the Company with respect thereto; provided however, any Manager, acting
alone, (a) is authorized to endorse checks, drafts and other evidences of indebtedness made payable to the order of the Company, but only for the purpose of deposit into one of the Company's
bank accounts and (b) may act pursuant to Paragraph 6.10.6. Subject to Paragraph 6.2.2, a
majority of the Managers acting together shall have authority to sign any contracts, checks, drafts or other instruments obligating the Company. A majority of the Managers, acting together, may
delegate to any Manager their authority to sign on behalf of the Company. 

15

  

        6.1.3    Meetings
of the Board of Managers may be called by any Manager. All meetings shall be held upon two (2) days notice by mail or delivered personally or by
electronic mail or facsimile. A notice shall specify the purpose of any meeting. Notice of a meeting need not be given to any Managers who signs a waiver of notice or a consent to holding the meeting
(which waiver or consent need not specify the purpose of the meeting) or an approval of the minutes thereof, whether before or after the meeting. All such waivers, consents and approvals shall be
filed with the Company records or made apart of the minutes of the meeting. A majority of the Managers present may adjourn any meeting to another time and place. If the meeting is adjourned for more
than twenty-four (24) hours, notice of any adjournment shall be given prior to the time of the adjourned meeting to the Managers who are present at the time of the adjournment.
Meetings of the Managers may be held at any place which has been designated in the notice of the meeting or at such place as may be approved by the Managers. Managers may participate in a meeting
through use of conference telephone or similar communications equipment, so long as all Managers participating in such meeting can hear one another. Participation in a meeting in such manner
constitutes a presence in person at such meeting. Except to the extent that this Agreement requires the approval of all Managers, every act or decision done or made by a majority of the Managers is
the act of the Managers. Any action required or permitted to be taken by the Managers may be taken by the Managers without a meeting, if a majority of the Managers consent in writing to such action,
unless the action requires the unanimous vote of the Managers, in which case all Managers must consent in writing. Such action by written consent shall have the same force and effect as a majority
vote or unanimous vote, as applicable of such Managers. The provisions of this Paragraph 6.1.3 govern meetings of the Managers if the Managers elect, in
their discretion, to hold meetings. However, nothing in this Paragraph 6.1.3 or in this Agreement is intended to require that meetings of Managers be
held, it being the intent of the Members that meetings of Managers are not required. 

        6.1.4    The
Board of Managers shall initially consist of four (4) Managers, two of whom shall be elected by Brentwood (the "Brentwood Manager"), one of whom shall be
elected by Brooks (the "Brooks Manager"), and one of whom shall be elected by Campion (the "Campion Manager"); provided, however, neither Brentwood nor
Messrs. Brooks or Campion shall be entitled to elect a Manager if such Member is not an Eligible Member. The Board of Managers shall be composed of all the Managers. A Manager need not be a
Member. The initial Brentwood Managers shall be Messrs. Tom Davin and William Barnum. The initial Brooks Manager shall be Brooks, and the initial Campion Manager shall be Campion. The Members
agree to vote their Membership Interests as necessary from time to time to give effect to the foregoing provisions for appointment of Managers. 

        6.1.5    Any
Manager may resign at any time by giving written notice to the Members and remaining Managers without prejudice to the rights, if any, of the Company under any
contract to which the Manager is a party. The resignation of any Manager shall take effect upon receipt of that notice or at such later time as shall be specified in the notice. Unless otherwise
specified in the notice, the acceptance of the resignation shall not be necessary to make it effective. 

        6.1.6    Any
Manager may be removed at any time, with or without cause, by the written consent of the Member that elected such Manager. 

        6.1.7    Upon
the death, resignation or removal of a Manager, only the Eligible Member who elected such Manager may appoint the successor Manager;  provided, however, that, if both (a) the Member entitled to
elect the vacated Manager is Incapacitated and (b) such Incapacity does not
result in a Transfer pursuant to Paragraph 7.1.2, then the resulting vacancy on the Board of Managers shall be filled by a Person elected by the
Requisite Members. 

16

 

        6.2    Authority of the Managers; Limitations on Authority of the Managers.    

        6.2.1    Without
limiting the generality of Paragraph 6.1, but subject to  Paragraph 6.2.2 and to the express limitations set forth elsewhere in this Agreement, the Managers
shall have all necessary powers to manage and carry
out the purposes, business, property and affairs of the Company. 

        6.2.2    Notwithstanding
any contrary provision of this Agreement, the Managers shall not take (or agree to take) any action regarding the following matters without the written
consent of all Members: 

        (a)   any
act in contravention of the Agreement; or 

        (b)   any
act that would subject any Member to personal liability for the debts, liabilities or obligations of the Company. 

        6.3    Compensation of the Managers; Reimbursement of Expenses.    

        6.3.1    The
Managers shall not receive any fees or other compensation for their services in administering the Company. 

        6.3.2    Each
Manager shall be entitled to reimbursement on a monthly basis from the Company for all reasonable out-of-pocket costs and expenses
incurred by it for or on
behalf of the Company upon providing the Company with reasonable documentation for such costs and expenses. Pursuant to an expense agreement between the Company and Zumiez, dated as of the date
hereof, Zumiez shall be required to advance and/or reimburse the Company for costs and expenses incurred by the Company. 

        6.3.3    Immediately
following the execution of this Agreement by the Members and the initial Capital Contributions, the Company will pay an investment banking fee of
$1,095,000 to Brentwood Private Equity III, LLC, an affiliate of Brentwood. 

        6.4    Records and Reports.    

        6.4.1    The
Managers shall cause to be kept, at the principal place of business of the Company, or at such other location as the Managers shall reasonably deem appropriate,
full and proper ledgers, other books of account, and records of all receipts and disbursements, other financial activities, and the affairs of the Company for at least the current and past four fiscal
years. 

        6.4.2    The
Managers shall cause to be sent to each Member, within ninety (90) days following the end of each fiscal year of the Company, a report that shall include
all necessary information required by the Members for preparation of their Federal, state and local income or franchise tax or information returns, including each Member's pro rata share of Net
Profits, Net Losses and any other items of income, gain, loss and deduction for such fiscal year. 

        6.4.3    Upon
reasonable written request by any Member related to such Member's Membership Interest, the Managers shall cause to be sent to such Member a copy of the Company's
Federal, state and local income tax or information returns for any fiscal year for which such returns are still required to be made available to Members pursuant to applicable law. 

        6.4.4    Members
(personally or through an authorized representative) may, for purposes reasonably related to their Membership Interests, examine and copy (at their own cost
and expense) the books and records of the Company at all reasonable business hours. 

        6.5    Liability of the Managers.    Each Manager shall carry out its duties in good faith, in a manner that the
Manager believes to be in the best interests of the Company, and with such care as an ordinarily prudent person in a like position would use under similar circumstances. Each Manager shall devote such
time to the business of the Company as the Manager, in its discretion, deems necessary for 

17

 

the
efficient carrying on of the Company's business. A Manager who so performs the duties of Manager shall not have any liability by reason of being or having been a Manager of the Company except for
actions taken in bad faith or for gross negligence or willful misconduct. 

        6.6    Devotion of Time.    The Managers are not obligated to devote all of their time or business efforts to the
affairs of the Company. The Managers shall devote whatever time, effort and skill as they deem appropriate for the operation of the Company. 

        6.7    Information Rights.    The reports and documents furnished to the Company pursuant to Section 8.3 of the
Contribution Agreement shall be provided solely to the Managers and the Members; provided however, such reports and documents shall only be provided to those Managers that have entered into a
confidentiality agreement with the Company on terms substantially similar to Paragraph 9.15 of this Agreement. Each Member acknowledges that it
is bound by the confidentiality provisions set forth in Paragraph 9.15 of this Agreement. 

        6.8    Indemnification of the Members and the Managers.    

        6.8.1    The
Company shall indemnify and hold harmless each Member and each Manager, and each of their Affiliates, and all officers, directors, employees, and agents of any of
the foregoing (individually, an "Indemnitee") to the full extent permitted by law from and against any and all losses, claims, demands, costs, damages, liabilities, joint and several, expenses of any
nature (including attorneys' fees and disbursements), judgments, fines, settlements and other amounts arising from any and all claims, demands, actions, suits or proceedings, civil, criminal,
administrative or investigative, in which the Indemnitee may be involved, or threatened to be involved as a party or otherwise, relating to the performance or nonperformance of any act concerning the
activities of the Company, if the Indemnitee's conduct did not constitute gross negligence, bad faith, willful misconduct or material breach of this Agreement. The termination of an action, suit or
proceeding by judgment, order, settlement, or upon a plea of nolo contendere or its equivalent, shall not, in and of itself, create a presumption or otherwise constitute evidence that the Indemnitee
acted in a manner contrary to that specified above. 

        6.8.2    Expenses
incurred by an Indemnitee in defending any claim, demand, action, suit or proceeding subject to this Paragraph
6.8 shall be advanced by the Company prior to the final disposition of such claim, demand, action, suit, or proceeding upon receipt by the Company of a written commitment by or
on behalf of the Indemnitee to repay such amount if it shall be determined that such Indemnitee is not entitled to be indemnified as authorized in this  Paragraph 6.8. 

        6.8.3    Any
indemnification provided hereunder shall be satisfied solely out of the assets of the Company, as an expense of the Company. No Member shall be subject to personal
liability by reason of these indemnification provisions. 

        6.8.4    The
provisions of this Paragraph 6.8 are for the benefit of the Indemnitees and shall not be deemed to create any
rights for the benefit of any other Person. 

        6.8.5    To
the extent that the Managers, or any Affiliate, or any officer, director, employee or agent of any of the foregoing (each, a "Responsible Party") has, at law or in
equity, duties (including, without limitation, fiduciary duties) to the Company, any Member or other Person bound by the terms of this Agreement, such Responsible Parties acting in accordance with
this Agreement shall not be liable to the Company, any Member, or any such other Person for their good faith reliance on the provisions of this Agreement. The provisions of this Agreement, to the
extent that they restrict the duties of a Responsible Party otherwise existing at law or in equity, are agreed by all parties hereto to replace such other duties to the greatest extent permitted under
applicable law. 

18

 

        6.9    Other Activities.    Any Member may engage or invest in, and devote its time to, any other business venture or
activity of any nature and description (independently or with others), whether or not such other activity may be deemed or construed to be in competition with the Company. Neither the Company nor any
Member shall have any right by virtue of this Agreement or the relationship created hereby in or to such other venture or activity of any other Member (or to the income or proceeds derived therefrom),
and the pursuit thereof, even if competitive with the business of the Company, shall not be deemed wrongful or improper. 

        6.10    Management Rights.    

        6.10.1    The
Company shall take appropriate actions to cause the following persons to be nominated and elected to the Board of Directors of Zumiez (each a "Member Nominee"),
including, but not limited to, voting all of the Shares owned by the Company in favor of the Member Nominees at all regular and special meetings of the stockholders of Zumiez called or held for the
purpose of filling positions on the Board of Directors of Zumiez, or in each written consent executed in lieu of such a meeting of stockholders: 

        (a)   two
(2) persons designated by Brentwood (each a "Brentwood Nominee"); provided, however, that the Company shall not be required to designate the Brentwood
Nominees at any time after Brentwood is no longer an Eligible Member; 

        (b)   one
(1) person designated by Campion (the "Campion Nominee"); provided, however, that the Company shall not be required to designate the Campion Nominee at any
time after Campion is no longer an Eligible Member; and 

        (c)   one
(1) person designated by Brooks (the "Brooks Nominee"); provided, however, that the Company shall not be required to designate the Brooks Nominee at any time
after Brooks is no longer an Eligible Member. 

        6.10.2    In
the event that the Company is no longer obligated to designate a Member Nominee pursuant to Paragraph 6.10.1, the Company shall vote all of its Shares and
take all actions otherwise necessary to ensure the election of the person designated by a majority of the Board of Directors of Zumiez then in office. 

        6.10.3    If
any Member Nominee ceases to serve as a director of Zumiez for any reason during his or her term, a Member Nominee for the vacancy resulting therefrom will be
designated by the Member(s) who designated the vacated director; provided, however, if the Company is no longer obligated to designate any particular
Member Nominee, the resulting vacancy will be filled by a person appointed by a majority of the Board of Directors of Zumiez. 

        6.10.4    The
Company (in its capacity as principal stockholder of Zumiez) shall use its reasonable best efforts to call, or cause the appropriate officers or directors of
Zumiez to call, a special meeting of stockholders of Zumiez and to vote all of the Shares owned by the Company for, or to take all actions by written consent in lieu of any such meeting necessary to
cause, the removal (with or without cause) from the Board of Directors of Zumiez of (i) any Brentwood Nominee, if Brentwood requests such director's removal in writing for any reason,
(ii) the Campion Nominee, if Campion requests such director's removal in writing for any reason, (iii) the Brooks Nominee, if Brooks requests such director's removal in writing for any
reason, or (iv) any Member Nominee of any Person listed in Paragraph 6.10.1 that is no longer an Eligible Member. 

        6.10.5    If
(i) at any time on or prior to the fourth anniversary of the date hereof, Brentwood and Campion, or (ii) at any time after the fourth anniversary of
the date hereof, either Brentwood or Campion, elect to cause the Company to exercise its rights under Sections V, XIII or XIV of the Stockholders' Agreement, the Managers shall take all actions
necessary or appropriate to effect the transactions contemplated thereunder; provided, however, that neither Brentwood nor Campion 

19

 

shall
any have rights under this Paragraph 6.10.5 at any time after Brentwood or Campion, as the case may be, is no longer an Eligible Member. No
consent or approval of any other Member is required for Brentwood and/or Campion, as the case may be, to exercise the rights in this Paragraph 6.10.5. 

        6.10.6    Each
Manager, acting alone, shall have the right on behalf of the Company, to enforce any and all rights of the Company under the Contribution Agreement. 

        6.11    UBTI.    The Company will use its commercially reasonable efforts not to incur UBTI. 

 
 

ARTICLE 7
  INTERESTS AND TRANSFERS OF INTERESTS    
    

        7.1    Transfers.    

        7.1.1    Any
purported Transfer which is not in accordance with this Agreement shall be null and void. 

        7.1.2    Paragraphs 7.2, 7.3 and 7.5.2 shall not apply to (a) a Transfer by a Member pursuant to  Paragraph 7.4 or (b) a Transfer by a Member to (i) the Company or
any subsidiary thereof, (ii) Brentwood as pledgee under the
Pledge Agreement (including any Transfer contemplated therein), (iii) such Member's Immediate Family, (iv) any custodian or trustee for the account or benefit of such Member or such
Member's Immediate Family, (iv) the shareholders, partners, or members of a Member which is an entity, (vi) a charitable organization that qualifies under Section 501(c)(3) of the
Code, or (vii) a bank or other lending institution to secure loans extended by such bank or other lending institution for any purpose; provided,
however, that each transferee pursuant to clause (iii), (iv), (v), (vi) or (vii) shall receive and hold such Interest subject to the provisions of this
Agreement, and there shall be no further Transfer of such Interest except in accordance herewith; and, provided, further, that the transferor and the
transferee pursuant to clause (iii), (iv), (v), (vi) or (vii) comply with Paragraph 7.9 of the Agreement. 

        7.2    Right of First Refusal.    

        7.2.1    Except
for Transfers (i) pursuant to Paragraph 7.1.2, (ii) through the exercise of rights as a
Member (other than the Tag-Along Seller) pursuant to Paragraph 7.3, or (iii) pursuant to  Paragraph 7.4, if at any time any Member (an
"Offeror") proposes to Transfer, directly or indirectly, all or any part of its Interest (or any
beneficial interest therein), such Offeror shall first offer such Interest to the Company and the other Members as set forth below. 

        7.2.2    The
Offeror shall deliver a written notice (the "Offer Notice") to the Company stating (i) a bona fide intention
to sell or transfer such Interest, (ii) the Interest (expressed as a percentage) proposed to be Transferred (the "Offered Interest"), (iii) the price for which such Offeror proposes to
Transfer the Offered Interest (in the case of a Transfer not involving a sale such price shall be deemed to be the fair market value of the Offered Interest as determined pursuant to  Paragraph 7.2.4) and the terms of payment of that price and other terms and conditions of sale, and (iv) the name and address of the
proposed purchaser or transferee. An Offeror shall not effect, or attempt to effect, any sale or other transfer for value of the Interest other than for money or an obligation to pay money. The Offer
Notice shall constitute an irrevocable commitment by the Offeror to sell the Offered Interest to the Company and the other Members at the same price, terms and conditions as set forth in the Offer
Notice. 

        7.2.3    For
a period of thirty (30) days after receipt of the Offer Notice, the Company or its assignee or assignees (any such assignee hereinafter referred to as a
"Permitted Assignee") shall have the right to purchase all of the Offered Interest upon giving notice within such thirty (30) day period of its intention to make such purchase to the Offeror.
The price per share of the Offered 

20

 

Interest
purchased by the Company pursuant to this Paragraph 7.2.3 shall be, in the case of a sale, the price per share as set forth in the Offer Notice
and, in the case of a Transfer not involving a sale, the fair market value of such Interest determined pursuant to Paragraph 7.2.4 hereof, and the
purchase shall be on the same terms and subject to the same conditions as those set forth in the Offer Notice. If the Company (including any Permitted Assignee or Permitted Assignees) elects not to
purchase all the Offered Interest, then it shall give written notice thereof within the thirty (30) day period following receipt of the Offer Notice, and, for a period of twenty
(20) days after receipt of the aforementioned notice from the Company, the other Members (each an "Offeree") shall have the right to purchase pro rata (pro
rata on the basis of the total Percentage Interests owned by those Offerees that elect to purchase such Remaining Interest, as defined below) all of the Offered Interest not
purchased by the Company (the "Remaining Interest") on the same price, terms and conditions as set forth in the Offer Notice; provided, however, that the price per share shall be, in the case of a
Transfer not involving a sale, the fair market value of such Interest determined pursuant to Paragraph 7.2.4 hereof. If the Company is required but
fails to give the notice referred to in the preceding sentence of this Paragraph 7.2.3, then the Company nevertheless shall be deemed to have given such
notice upon the expiration of the thirty (30) day period referred to in such preceding sentence. 

        7.2.4    In
the case of a Transfer of an Interest not involving a sale, the fair market value of the Interest shall be determined in good faith by a majority of the Managers.
This determination shall be final and binding upon all parties and persons claiming under or through them. Anything in this Paragraph 7.2 to the
contrary notwithstanding, if the Offeror is not satisfied with the determination of fair market value, the Offeror may elect not to proceed with the proposed Transfer of Interest not involving a sale
and retain such Interest subject to the provisions of this Agreement. 

        7.2.5    If
the Company, including any Permitted Assignee or Permitted Assignees, or the Offerees, as applicable, do not elect to purchase all of the Interest to which the
Offer Notice refers as provided in Paragraph 7.2.2 hereof, then the Offeror shall have no obligation to sell any of the Offered Interest to the Company
or the Offerees (unless the Offeror elects otherwise), and subject first to the Offeror's compliance with Paragraph 7.3, the Offeror may Transfer the
Offered Interest (less any portion of the Offered Interest which it has elected to Transfer pursuant to the election permitted in the first parenthetical of this  Paragraph 7.2.5) to any purchaser or
transferee named in the Offer Notice on terms and conditions materially no more favorable to such proposed
transferee than those terms and conditions specified in the Offer Notice (e.g., the price for such Interest proposed to be sold to the proposed transferee shall be no more favorable (e.g., less) than
the price specified in the Offer Notice). If more than five (5) months transpires between the date of the Offer Notice and the closing of any Transfer to such proposed transferee, the Offeror
must again comply with this Paragraph 7.2 prior to any Transfer to the proposed transferee. 

        7.2.6    The
closing of purchases of Offered Interest pursuant to Paragraph 7.2.3 shall take place on a date, time and
place mutually agreed upon by the parties. At the closing, (i) the Offeror shall deliver an executed assignment of the Offered Interest, which assignment shall contain warranties of the Offeror
that the Offered Interest is being transferred free and clear of all liens, claims, security and other encumbrances, and (ii) each purchasing Offeree shall deliver to the Offeror, by wire
transfer of immediately available funds, the amount equal to the Offered Interest being acquired by such Offeree, in full payment of the purchase price of the Offered Interest purchased. 

21

  

        7.3    Tag-Along Rights.    

        7.3.1    After
the application of Paragraph 7.2 and prior to a Transfer pursuant to  Paragraph 7.2.5, if a Member (the "Tag-Along Seller") continues to propose
to Transfer (a "Tag-Along Sale"), directly or indirectly,
all or any part of its Interest (or any beneficial interest therein) to a third-party, then each other Member shall have the right, but not the obligation, to participate in such Tag-Along
Sale (and to displace the Tag-Along Seller to the extent of such participation) by selling up to its pro rata interest of the Interest
proposed to be Transferred. For purposes hereof, a Member's pro rata interest of the Interest proposed to be Transferred by the Tag-Along
Seller shall be equal to the product of (i) the aggregate Interest (expressed as a percentage of the Company) proposed to be sold by the Tag-Along Seller in the
Tag-Along Sale and (ii) such Member's Percentage Interest. 

        Any
such sale by any Member shall be on the same terms and conditions as the proposed Tag-Along Sale by the Tag-Along Seller; provided,
however, that all selling Members shall share pro rata, based upon the Interest being sold by each (i) in any indemnity
liabilities to the proposed purchaser in the Tag-Along Sale (other than representations as to unencumbered ownership of and ability to transfer the Interest being sold of any other seller
in the Tag-Along Sale, which shall be the sole responsibility of such other seller), provided that no Member shall have liability in excess of the proceeds received by such Member in the
Tag-Along Sale, and (ii) in any escrow for the purpose of satisfying any such indemnity liabilities. 

        7.3.2    The
foregoing notwithstanding, Paragraph 7.3.1 shall not apply to any transfer permitted in  Paragraph 7.1.2. 

        7.3.3    The
Tag-Along Seller shall cause the Company to promptly provide each Member with written notice (the "Tag-Along Sale Notice") not more than
sixty (60) nor less than thirty (30) days prior to the proposed date of the Tag-Along Sale (the "Tag-Along Sale Date"). Each Tag-Along Sale Notice
shall set forth: (i) the name and address of each proposed purchaser of Interest in the Tag-Along Sale; (ii) the total Interest (expressed as a percentage) proposed to be
sold by the Tag-Along Seller; (iii) the proposed amount and form of consideration to be paid for such Interest and the terms and conditions of payment offered by each proposed
purchaser; (iv) the aggregate Interest held of record as of the close of business on the date preceding the date of the Tag-Along Sale Notice (the "Tag-Along Notice
Date") by the Member to whom the notice is sent; (v) the aggregate Interest held of record as of the Tag-Along Notice Date by the Tag-Along Seller; (vi) the maximum Interest
(the "Member's Allotment") (as computed in accordance with Paragraph 7.3.1) that the Member to whom the notice is sent is entitled to include in the
Tag-Along Sale assuming each Member elected to participate in the Tag-Along Sale and elected to sell all of the Interest owned by such Member; (vii) confirmation that
the proposed purchaser has been informed of the "Tag-Along Rights" provided for herein and has agreed to purchase the Interest in accordance with the terms hereof; (viii) the
Tag-Along Sale Date, and (ix) confirmation that, with respect to the Interest to be received by the proposed purchaser, the proposed purchaser agrees in writing to be bound by, and
covenants that each subsequent purchaser of all such Interest shall be bound by, the provisions of this Agreement as if such purchaser were an original party to this Agreement. 

        Each
Member who wishes to participate in the Tag-Along Sale shall provide written notice (or oral notice confirmed in writing) (the "Tag-Along Notice") to the
Tag-Along Seller no less than fifteen (15) days prior to the Tag-Along Sale Date. The Tag-Along Notice shall set forth the Interest, if any, that such Member
desires to include in the Tag-Along Sale (which shall not exceed such Member's Allotment). The Tag-Along Notice shall also specify the aggregate additional Interest owned of
record as of the date of the Tag-Along Notice by such Member, if any, which such Member desires also to include in the Tag-Along Sale ("Additional Interest") in the event there
is an aggregate undersubscription for the entire Members' Allotment. In the event there is an aggregate 

22

 

undersubscription
by the Members for the entire Members' Allotment, the Tag-Along Seller shall apportion the unsubscribed Interest to Members whose Tag-Along Notices specified
an Additional Interest, which apportionment shall be on a pro rata basis among such Members in accordance with the Additional Interest specified by all
such Members in their Tag-Along Notices. 

        The
Tag-Along Seller shall determine the aggregate Interest to be sold by each participating Member in any given Tag-Along Sale in accordance with the terms
hereof, and the Tag-Along Notices given by the Members shall constitute their binding respective agreements to sell such Interest on the terms and conditions applicable to such sale
(including the requirements of this Paragraph 7.3). 

        If
a Tag-Along Notice from a Member is not received by the Tag-Along Seller within the 15-day period specified above, then the Tag-Along
Seller shall have the right to sell the Interest specified in the Tag-Along Sale Notice to the proposed purchaser without any participation by such Member, but only on the terms and
conditions stated in such Tag-Along Sale Notice and only if such sale occurs on a date within five business days of the Tag-Along Sale Date. 

        7.3.4    The
provisions of this Paragraph 7.3 shall apply regardless of the form of consideration received in the
Tag-Along Sale. 

        7.4    Drag-Along Rights.    

        7.4.1    If
(i) Brentwood and Campion are Eligible Members and desire to sell all of their respective Interest at any time on or prior to the fourth anniversary of the
date hereof, or (ii) Brentwood or Campion (each, a "Drag-Along Seller" and collectively, the "Drag-Along Sellers") is an Eligible Member and desires to sell all of its
respective Interest at any time after the fourth anniversary of the date hereof, in each case, pursuant to a bona fide offer to purchase from a
third-party (other than an Affiliate of such Drag-Along Seller(s)), subject to Paragraph 7.4.3 below, then each of the other Members shall
sell all Interest held by it pursuant to such offer to purchase (the "Drag-Along Sale"). All holders of Interest in such Drag-Along Sale (i) shall be subject to the same
terms and conditions of sale and shall otherwise be treated equally or, where appropriate, pro rata based upon the Percentage Interest held by each
Member, and (ii) shall execute such documents and take such actions as may be reasonably required to consummate the Drag-Along Sale. 

        Any
such sale by any Member shall be on the same terms and conditions as the proposed Drag-Along Sale by the Drag-Along Seller(s);  provided, however, that all selling Members shall share, based upon the
number of Interest being sold by each, (i) in any indemnity liabilities
to the purchaser in the Drag-Along Sale (other than representations as to unencumbered ownership of and ability to transfer the Interest being sold of any other seller in the
Drag-Along Sale, which shall be the sole responsibility of such other seller) and (ii) in any escrow for the purpose of satisfying any such indemnity liabilities;  provided that each Member's
sharing obligation hereunder with respect to such indemnity or other liabilities shall be several and limited to the
Interest being sold by such Member and the proceeds thereof, including, without limitation, the cash and non-cash consideration received by such Member with respect to such Interest. In no
circumstance whatsoever hereunder shall any other recourse be had to such Member, whether by levy or execution, or under any law, or by the enforcement of any assessment or penalty or otherwise, it
being understood that the sole recourse for enforcing such Member's obligation hereunder shall be to such Interest being sold thereby and the proceeds thereof. 

        7.4.2    The
Drag-Along Seller(s) shall cause the Company to promptly provide each Member-with written notice (the "Drag-Along Sale
Notice") not more than sixty (60) nor less than thirty (30) days prior to the date of the Drag-Along Sale (the "Drag-Along Sale Date"). Each
Drag-Along. Sale Notice shall set forth: (i) the name and address of each proposed purchaser of Interest in the Drag-Along Sale; (ii) the proposed amount and form
of consideration to be paid for 

23

 

such
Interest and the terms and conditions of payment offered by each proposed purchaser; (iii) confirmation that each proposed purchaser has been informed of the "Drag-Along
Rights" provided for herein and has agreed to purchase Interest in accordance with the terms hereof; and (iv) the Drag-Along Sale Date. 

        7.4.3    The
provisions of this Paragraph 7.4 shall apply regardless of the form of consideration to be received in the
Drag-Along Sale, and if any non-cash consideration is proposed in the Drag-Along Sale to the Drag-Along Seller(s), then each Member shall accept its  pro rata share of such non-cash consideration for the
Interest based upon its Percentage Interest. 

        7.5    Further Restrictions.    

        7.5.1    Notwithstanding
any contrary provision in this Agreement, any Transfer that would otherwise be permitted by this Agreement shall be null and void if: (a) such
Transfer would cause a termination of the Company for Federal or state, if applicable, income tax purposes (unless this clause (a) is waived by all of the Managers); (b) such Transfer
requires the registration of such Transferred Interest pursuant to any applicable Federal or state securities laws; (c) such Transfer causes the Company to become a "Publicly Traded
Partnership," as such term is defined in Sections 469(k)(2) or 7704(b) of the Code; (d) such Transfer subjects the Company to regulation under the Investment Company Act of 1940, the Investment
Advisers Act of 1940 or the Employee Retirement Income Security Act of 1974, each as amended; (e) such Transfer results in a violation of applicable laws to which the Company is subject or
could have liability; (f) such Transfer is made to any Person who lacks the legal right, power or capacity to own such Interest; (g) such Transfer would cause the assets of the Company
to constitute Plan Assets, or (h) the Company does not receive 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 reasonably satisfactory to the Managers. 

        7.5.2    Except
as provided in Paragraph 7.1.2, at any time prior to the fourth anniversary of the date hereof, no Member may
Transfer, directly or indirectly, all or any portion of its Interest without the prior written consent of a majority of the Managers, which consent may be withheld in their sole and absolute
discretion. 

        7.5.3    Any
agreement (e.g., purchase and sale agreement) governing the Transfer of an Interest shall contain a provision stating that (a) such agreement shall be
governed by Delaware law and (b) any dispute arising out of such Transfer shall be resolved in Delaware. 

        7.6    Rights of Assignees.    Until such time, if any, as a transferee of any permitted Transfer pursuant to this  Article 7 is
admitted to the Company as a Substitute Member pursuant to Paragraph 7.9: (i) such
transferee shall be an Assignee only, and only shall receive, to the extent Transferred, the distributions and allocations of income, gain, loss, deduction, or similar item to which the Member which
Transferred its Interest would be entitled, and (ii) such Assignee shall not be entitled to exercise any other rights or powers of a Member, such other rights, and all obligations relating to,
or in connection with, such Interest, remaining with the transferring Member. In such a case, the transferring Member shall remain a Member even if he has transferred his entire Economic Interest in
the Company to one or more Assignees until such time as each Assignee is admitted to the Company as a Member pursuant to Paragraph 7.9. In the event of
any permitted Transfer as contemplated by this Paragraph 7.6, Exhibit A shall be amended to reflect the interests of this Assignee in and
to the transferring Member's interest, as provided herein. In the event any Assignee desires to make a further assignment of any Economic Interest in the Company, such Assignee shall be subject to all
of the provisions of this Agreement to the same extent and in the same manner as any Member desiring to make such an assignment. 

24

 

        7.7    Admissions and Withdrawals.    No Person shall be admitted to the Company as a Member except in accordance with  Paragraph
3.3 (in the case of Persons obtaining an interest in the Company directly from the Company) or
Paragraph 7.9 (in the case of transferees of a permitted Transfer of an interest in the Company from another Person). No admission or withdrawal of a
Member shall cause the dissolution of the Company. Any purported admission or withdrawal which is not in accordance with this Agreement shall be null and void. 

        7.8    Forfeiture Upon Withdrawal.    If any Member withdraws from the Company (other than a withdrawal pursuant to  Paragraph 7.10),
 such withdrawing Member shall forfeit its Membership Interest. If any Member attempts to withdraw from the Company (other than pursuant
to Paragraph 7.10) without the consent of the Requisite Members, then, notwithstanding the last sentence of  Paragraph 7.7, a majority of the Managers may,
in their sole and absolute discretion, permit such withdrawal (without waiving, in any manner, any other
rights available to it or the Company at law or in equity and in addition to, and not in lieu of, any other remedies to which it or the Company may be entitled); provided
that such withdrawing Member shall not be entitled to receive any payment or any other benefits of or other compensation in connection with, its Membership Interest. 

        7.9    Admission of Assignees as Substitute Members.    

        7.9.1    An
Assignee shall become a Substitute Member only if and when each of the following conditions are satisfied: 

        (a)   the
assignor of the Interest transferred sends written notice to the Managers requesting the admission of the Assignee as a Substitute Member and setting forth the name
and address of the Assignee, the Percentage Interest transferred, and the effective date of the Transfer; 

        (b)   except
for Transfers that comply with the provisions of Section 7, a majority of the Managers (or, if at any time no Managers exist, the Requisite Members)
consent in writing to such admission, which consent may be given or withheld in the Managers' (or Members') sole and absolute discretion; and 

        (c)   the
Managers receive from the Assignee (i) such information concerning the Assignee's financial capacities and investment experience as may reasonably be
requested by the Managers, and (ii) written instruments (including, without limitation, copies of any instruments of Transfer and such Assignee's consent to be bound by this Agreement as a
Substitute Member) that are in a form reasonably satisfactory to the Managers. 

        7.9.2    Upon
the admission of any Substitute Member, Exhibit A shall be amended to reflect the name, address, and
Percentage Interest of such Substitute Member and to eliminate or adjust, if necessary, the name, address, and Percentage Interest, of the predecessor of such Substitute Member. 

        7.9.3    If
an Eligible Member Transfers all of its Membership Interest, and the transferee is otherwise admitted as a Substitute Member pursuant to  Paragraph 7.9, the transferee of such Membership Interest shall
succeed to (and retain) (a) the preemptive rights in  Paragraph 3.3.2, (b) the rights of appointment and removal of a Manager in Paragraph 6.1,
(c) the management rights in Paragraph 6.10 and (d) the drag-along rights in  Paragraph 7.4, in each case, if and only if, the transferee
continues to Control at least 50% of the Interest that was owned by the transferor as of the
date of this Agreement. 

        7.10    Withdrawal of Members.    If a Member has transferred all of its Membership Interest to one or more Assignees,
then such Member shall withdraw from the Company if and when all such Assignees have been admitted as Substitute Members in accordance with this Agreement. In the event that a Member has a zero
balance in its Capital Account and a zero Percentage Interest, such Member 

25

 

shall
be deemed to have withdrawn from the Company and shall have no further rights as a Member; provided, however, such Member shall nonetheless retain its rights under  Paragraph 4.1.2(d). 

        7.11    Conversion of Membership Interest.    In the event of the Incapacity of a Member that does not result in a
Transfer pursuant to Paragraph 7.1.2, such Incapacitated Member's Membership Interest shall automatically be converted to an Economic Interest only, and
such Incapacitated Member (or its executor, administrator, trustee or receiver, as applicable) shall thereafter be deemed an Assignee for
all purposes hereunder, with such Economic Interest, but without any other rights of a Member unless the holder of such Economic Interest is admitted as a Substitute Member pursuant to  Paragraph 7.9.

        7.12    Compliance With IRS Safe Harbor.    The Managers shall monitor the transfers of interests in the Company to
determine (i) if such interests are being traded on an "established securities market" or a "secondary market (or the substantial equivalent thereof)" within the meaning of section 7704
of the Code, and (ii) whether additional transfers of interests would result in the Company being unable to qualify for at least one of the "safe harbors" set forth in Regulations
Section 1.7704-1 (or such other guidance subsequently published by the Internal Revenue Service setting forth safe harbors under which interests will not be treated as "readily
tradable on a secondary market (or the substantial equivalent thereof)" within the meaning of section 7704 of the Code) (the "Safe Harbors"). The Managers shall take all steps reasonably
necessary or appropriate to prevent any trading of interests or any recognition by the Company of transfers made on such markets and, except as otherwise provided herein, to ensure that at least one
of the Safe Harbors is met. 

 
 

ARTICLE 8
  DISSOLUTION, LIQUIDATION, AND TERMINATION OF THE COMPANY    
    

        8.1    Limitations.    The Company may be dissolved, liquidated, and terminated and have its affairs wound up only
pursuant to the provisions of this Article 8, and the parties hereto do hereby irrevocably waive any and all other rights they may have to cause a
dissolution of the Company or a sale or partition of any or all of the Company assets. 

        8.2    Exclusive Causes.    Notwithstanding the Act, the following and only the following events shall cause the
Company to be dissolved, liquidated, and terminated: 

        (a)   The
election of the Requisite Members; 

        (b)   The
occurrence of a Liquidation Event; or 

        (c)   Judicial
dissolution. 

Any
dissolution of the Company other than as provided in this Paragraph 8.2 shall be a dissolution in contravention of this Agreement. 

        8.3    Effect of Dissolution.    The dissolution of the Company shall be effective on the day on which the event
occurs giving rise to the dissolution, but the Company shall not terminate until it has been wound up and its assets have been distributed as provided in  Paragraph 8.5 of this Agreement and its
Certificate has been cancelled by the filing of a certificate of cancellation with the office of the Delaware
Secretary of State. Notwithstanding the dissolution of the Company, prior to the termination of the Company, the business of the Company and the affairs of the Members, as such, shall continue to be
governed by this Agreement. 

        8.4    No Capital Contribution Upon Dissolution.    Each Member shall look solely to the assets of the Company for all
distributions with respect to the Company, its Capital Contribution thereto, its Capital Account and its share of Net Profits or Net Losses, and shall have no recourse therefor (upon dissolution or
otherwise) against any other Member. Accordingly, if any Member has a deficit balance in its Capital Account (after giving effect to all contributions, distributions and allocations for all taxable
years, including the year during which the liquidation occurs), then such Member shall have no 

26

 

deficit
restoration obligation and have no obligation to make any Capital Contribution with respect to such deficit, and such deficit shall not be considered a debt owed to the Company or to any other
person for any purpose whatsoever. 

        8.5    Liquidation.    

        8.5.1    Upon
dissolution of the Company, a majority of the Managers shall designate one of the Managers to act as the "Liquidator" of the Company. The Liquidator shall take
full account of the Company's debts, obligations, liabilities and Property and shall cause the Property or the proceeds from the sale thereof, to the extent sufficient therefore, to be applied and
distributed, to the maximum extent permitted by law, in the following priority: 

        (a)   First,
to the payment of the obligations of the Company, to the expenses of liquidation, and to the setting up of any Reserves for contingencies which the Liquidator may
consider necessary; then 

        (b)   Second,
to the Members in accordance with Article 4, after giving effect to any prior payments in accordance with such
provision. 

        8.5.2    Notwithstanding
Paragraph 8.5.1 of this Agreement, in the event that the Liquidator determines that an immediate sale
of all or any portion of the Company assets would cause undue loss to the Members, the Liquidator, in order to avoid such loss to the extent not then prohibited by the Act, may either defer
liquidation of and withhold from distribution for a reasonable time any Company assets except those necessary to satisfy the Company's debts and obligations, or distribute the Company assets to the
Members in kind. 

 
 

ARTICLE 9
  MISCELLANEOUS    
    

        9.1    Appointment of Managers as Attorneys-in-Fact.    

        9.1.1    Each
Member, including each Additional Member and Substitute Member, by its execution of this Agreement, irrevocably constitutes and appoints each Manager as its true
and lawful attorney-in-fact with full power and authority in its name, place and stead to execute, acknowledge, deliver, swear to, file and record at the appropriate public
offices such documents as may be necessary or appropriate to carry out the provisions of this Agreement, including but not limited to: 

        (a)   Subject
to Paragraph 9.2, all certificates and other instruments (including counterparts of this Agreement), and all
amendments thereto, which a majority of the Managers deem appropriate to form, qualify, continue or otherwise operate the Company as a limited liability company (or other entity in which the Members
will have limited liability comparable to that provided in the Act), in the jurisdictions in which the Company may conduct business or in which such formation, qualification or continuation is, in the
opinion of the Managers, necessary or desirable to protect the limited liability of the Members. 

        (b)   Subject
to Paragraph 9.2, all amendments to this Agreement adopted in accordance with the terms hereof, and all
instruments which a majority of the Managers deem appropriate to reflect a change or modification of the Company in accordance with the terms of this Agreement. 

        (c)   All
conveyances of Company assets, and other instruments which the Liquidator reasonably deems necessary in order to complete a dissolution and termination of the
Company pursuant to this Agreement. 

27

  

        9.1.2    The
appointment by all Members of the Managers as attorneys-in-fact shall be deemed to be a power coupled with an interest, in recognition of
the fact that each of the Members under this Agreement will be relying upon the Managers to act as contemplated by this Agreement in any filing and other action by it on behalf of the Company, shall
survive the Incapacity of any Person hereby giving such power, and the transfer or assignment of all or any portion of the Interest of such Person in the Company, and shall not be affected by the
subsequent Incapacity of the Member; provided, however, that in the event of the assignment by a Member of all of its Interest in the Company, the
foregoing power of attorney of an assignor Member shall survive such assignment only until such time as the Assignee shall have been admitted to the Company as a Substitute Member and all required
documents and instruments shall have been duly executed, filed and recorded to effect such substitution. 

        9.2    Amendments.    

        9.2.1    Each
Additional Member and Substitute Member shall become a signatory hereto by signing such number of counterpart signature pages to this Agreement, a power of
attorney to the Managers, and such other instruments, in such manner, as the Managers shall determine. By so signing, each Additional Member and Substitute Member, as the case may be, shall have, and
shall be deemed to have, adopted and agreed to be bound by all of the provisions of this Agreement. 

        9.2.2    Except
as otherwise provided in this Agreement and except for amendments otherwise specifically authorized herein, any and all amendments to this Agreement may be made
from time to time by the Managers and the Requisite Members; except that, without the consent of each Member to be adversely affected, this Agreement
may not be amended so as to (a) modify the limited liability of a Member, (b) adversely affect the interest of a Member in Net Profits, Net Losses or Cash Available for Distribution
(other than to reflect the admission and economic terms of an Additional Member or the economic interest of an Assignee) or (c) adversely affect the interest of a Member with respect to  Paragraphs
3.3.2, 7.1.2, 7.2, 7.3 or 7.4. 

        9.2.3    In
addition to other amendments authorized herein, amendments may be made to this Agreement from time to time by the Managers, without the consent of any other Member:
(a) to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein, or to make any other provisions with respect to matters or
questions arising under this Agreement that are not inconsistent with the provisions of this Agreement; (b) to delete or add any provision of this Agreement required to be so deleted or added
by any Federal or state official, which addition or deletion is deemed by such official to be for the benefit or protection of all of the Members; and (c) to take such actions as may be
necessary (if any) to insure that the Company will be treated as a partnership for Federal income tax purposes. 

        9.2.4    In
making any amendments, there shall be prepared and filed by, or for, the Managers such documents and certificates as may be required under the Act and under the
laws of any other jurisdiction applicable to the Company. 

        9.3    Accounting and Fiscal Year.    

        9.3.1    The
books of the Company shall be subject to Section 448 of the Code, on such method of accounting for tax purposes as may be determined by a majority of the
Managers. The fiscal year of the Company shall end on December 31 of each year, or on such other date permitted under the Code as a majority of the Managers shall determine. 

        9.4    Meetings.    At any time, and from time to time, the Managers may, but shall not be required to, call meetings
of the Members. Written notice of any such meeting shall be given to all Members not less than two (2) nor more than forty-five (45) days prior to the date of such meeting.
Each meeting of the Members shall be conducted by the Managers or any designee thereof. Each Member may authorize any other Person (whether or not such other Person is a Member) to act for it or on
its 

28

 

behalf
on all matters in which the Member is entitled to participate. Each proxy must be signed by the Member or such Member's attorney-in-fact. All other provisions governing,
or otherwise relating to, the holding of meetings of the Members, shall from time to time be established in the sole discretion of the Managers. 

        Any
action required or permitted to be taken at a meeting of the Members may be taken without a meeting if a written consent setting forth the action so taken is signed by Members
holding the Percentage Interests required by this Agreement for the action in question. Such consent may be in one instrument or in several instruments, and shall have the same force and effect as a
vote of approval by the Members holding the Percentage Interests required by this Agreement. Such consent shall thereafter be sent to each of the Managers. An action so taken shall be deemed to have
been taken at a meeting held on the effective date so certified. 

        9.5    Entire Agreement.    This Agreement constitutes the entire agreement between the parties pertaining to the
subject matter hereof and fully supersedes any and all prior or contemporaneous agreements or understandings between the parties hereto pertaining to the subject matter hereof. 

        9.6    Further Assurances.    Each of the parties hereto does hereby covenant and agree on behalf of itself, its
successors, and its assigns, without further consideration, to prepare, execute, acknowledge, file, record, publish, and deliver such other instruments, documents and statements, and to take such
other action as may be required by law or reasonably necessary to effectively carry out the purposes of this Agreement. 

        9.7    Notices.    Any notice, consent, payment, demand or communication required or permitted to be given by any
provision of this Agreement shall be in writing and shall be (a) delivered personally to the Person or to an officer of the Person to whom the same is directed, or (b) sent by facsimile
or registered or certified mail, return receipt requested, postage prepaid, addressed as follows: if to the Company, to the Company at the address set forth in  Paragraph 1.3 hereof, or to such other
address as the Company may from time to time specify by notice to the Members; if to a Member, to such Member at
the most recent address set forth in the Company's books and records, or to such other address as such Member may from time to time specify by notice to the Company. Any such notice shall be deemed to
be delivered, given and received for all purposes as of: (i) the date so delivered, if delivered personally, (ii) upon receipt, if sent by facsimile, or (iii) on the date of
receipt or refusal indicated on the return receipt, if sent by registered or certified mail, return receipt requested, postage and charges prepaid and properly addressed. 

        9.8    Tax Matters.    

        9.8.1    Brentwood
shall at all times be designated and shall operate as "Tax Matters Partner" (as defined in Code Section 6231), to oversee or handle matters relating
to the taxation of the Company, including the making of any election for Federal income tax purposes. 

        9.8.2    Income
tax returns of the Company shall be prepared by such Person(s) as Brentwood shall retain at the expense of the Company. In the event of any dispute between the
Internal Revenue Service and the Company, the Company will provide the Members with notice thereof and prior to any settlement of such dispute submit the proposed settlement terms to the Members for
their consent, which will require the consent of a majority of the Managers and the Requisite Members. 

        9.9    Dispute Resolution.    

        9.9.1    Mutual Discussions.    If any dispute or difference of any kind whatsoever shall arise between the Members
(each a "Disputing Member") in connection with, or arising out of, this Agreement, or the breach, termination or validity thereof (a "Dispute"), the Disputing Members shall attempt to settle such
Dispute in the first instance by mutual discussions. All negotiations 

29

 

pursuant
to this clause shall be confidential and shall be treated as compromise and settlement negotiations, and no oral or documentary representations made by the Disputing Members during such
negotiations shall be admissible for any purpose in any subsequent proceedings. If any Dispute is not resolved within thirty (30) days of receipt by a Disputing Member of notice of a Dispute
(or within such longer period as to which the Disputing Members have agreed in writing), then, on the request of any Disputing Member ("Mediation Request"), the Dispute shall be submitted to mediation
in accordance with Paragraph 9.9.2. 

        9.9.2    Mediation.    Any Dispute not resolved pursuant to Paragraph
9.9.1 shall be referred to mediation in accordance with the Commercial Mediation Rules ("Mediation Rules") of the American Arbitration Association ("AAA") before a mediator to be agreed upon by the
Disputing Members. If no mediator has been agreed upon within 20 days of receipt by a Disputing Member of a Mediation Request, then any Disputing Member may request that the AAA appoint a
mediator in accordance with the Mediation Rules. All mediation pursuant to this clause shall be confidential and shall be treated as compromise and settlement negotiations, and no oral or documentary
representations made by the Disputing Members during such mediation shall be admissible for any purpose in any subsequent proceedings. If the Dispute has not been resolved within thirty
(30) days of the appointment of a Mediator or within sixty (60) days of receipt by a Disputing Member or Disputing Members of a Mediation Request (whichever occurs sooner) then, on the
demand of any Disputing Member, the Dispute shall be referred to arbitration in accordance with Paragraph 9.9.3 herein. 

        9.9.3    Arbitration.    Any Dispute not timely resolved in accordance with  Paragraphs 9.9.1 and 9.9.2 shall, on the receipt of an
arbitration demand, be finally and exclusively resolved by arbitration in accordance with the
Commercial Arbitration Rules of the AAA (the "Rules"), then in effect, except as modified herein. The arbitration shall be held, and the award shall be issued in the State of Delaware. There shall be
one neutral arbitrator appointed by agreement of the Disputing Members within thirty (30) days of receipt by respondent of the demand for arbitration. If such arbitrator is not appointed within
the time limit provided herein, on the request of any Disputing Member such arbitrator shall be appointed by the American Arbitration Association by using a list striking and ranking procedure in
accordance with the Rules. Any arbitrator appointed by the AAA shall be a retired judge or a practicing attorney with no less than fifteen years of experience and an experienced arbitrator. By
agreeing to arbitration, the Disputing Members do not intend to deprive any court of its jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment, or other
order in aid of arbitration proceedings and the enforcement of any award. Without prejudice to such provisional remedies as may be available under the jurisdiction of a court, the arbitral tribunal
shall have full authority to grant provisional remedies and to direct the Disputing Members to request that any court modify or vacate any temporary or preliminary relief issued by such court, and to
award damages for the failure of any Disputing Member to respect the arbitral tribunal's orders to that effect. Any arbitration proceedings, decision or award rendered hereunder and the validity,
effect and interpretation of this arbitration agreement shall be governed by the Federal Arbitration Act, 9 U.S.C. §1 et seq. In arriving at
a decision, the arbitrator shall be bound by the terms and conditions of this Agreement and shall apply the governing law of this Agreement as designated in  Paragraph 9.9. The arbitrator is not
empowered to award damages in excess of compensatory damages, and each Disputing Member hereby irrevocably waives
any right to recover punitive, exemplary or similar damages with respect to any Dispute. The award shall provide that the fees and expenses of the arbitration (including the fees of the AAA, the fees
and expenses of the arbitrators and the reasonable attorneys' fees of the prevailing Disputing Member) shall be paid by the non-prevailing Disputing Member. The award, which shall be in
writing and shall state the findings of fact and conclusions of law upon which it is based, shall be final and binding on the Disputing Members and shall be the sole and exclusive remedy between the
Disputing Members regarding any claims, counterclaims, issues or accountings 

30

 

presented
to the arbitral tribunal. Judgment upon any award may be entered in any court of competent jurisdiction. 

        9.10    Governing Law.    This Agreement, including its existence, validity, construction, and operating effect, and
the rights of each of the parties hereto, shall be governed by and construed in accordance with the laws of the State of Delaware without regard to otherwise governing principles of conflicts of law. 

        9.11    Construction.    This Agreement shall be construed as if all parties prepared it. 

        9.12    Captions—Pronouns.    Any titles or captions contained in this Agreement are for convenience only
and shall not be deemed part of the text of this Agreement. All pronouns shall be deemed to refer to the masculine, feminine, neuter, singular or plural as appropriate. 

        9.13    Binding Effect.    Except as otherwise expressly provided herein, this Agreement shall be binding on and inure
to the benefit of the Members, their heirs, executors, administrators, successors and all other Persons hereafter holding, having or receiving an interest in the Company, whether as Assignees,
Substitute Members or otherwise. 

        9.14    Severability.    In the event that any provision of this Agreement as applied to any party or to any
circumstance, shall be adjudged by a court to be void, unenforceable or inoperative as a matter of law, then the same shall in no way affect any other provision in this Agreement, the application of
such provision in any other circumstance or with respect to any other party, or the validity or enforceability of the Agreement as a whole. 

        9.15    Confidentiality.    Each Party hereto agrees that the provisions of this Agreement, all understandings,
agreements and other arrangements between and among the parties, and all other non-public information received from or otherwise relating to, the Company shall be confidential, and shall
not be disclosed or otherwise released to any other Person (other than its members, partners, affiliates, employees or agents who have a need to know the contents of such information in connection
with its investment in the Company), without the written consent of the Managers. The obligations of the parties hereunder shall not apply to the extent that the disclosure of information otherwise
determined to be confidential is required by applicable law, provided that, prior to disclosing such confidential information, a party shall notify the
Company thereof, which notice shall include the basis upon which such party believes the information is required to be disclosed. 

        9.16    UCC Article 8.    The Company hereby elects that all Interests in the Company shall be securities
governed by Article 8 of the Uniform Commercial Code as in effect in the State of Delaware. This provision shall not be amended without the consent of all of the Members. 

        9.17    Counterparts.    This Agreement may be executed in any number of multiple counterparts, each of which shall be
deemed to be an original copy and all of which shall constitute one agreement, binding on all parties hereto. 

(Signature
Page Follows) 

31

   
        IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written. 

	 	 	COMPANY:
	

 	
 	

ZUMIEZ HOLDINGS LLC
	

 	
 	

By:	
 	

/s/  RICHARD M. BROOKS      
 Richard M. Brooks

Manager
	

 	
 	
MEMBERS:
	

 	
 	

BRENTWOOD-ZUMIEZ INVESTORS, LLC
	

 	
 	

By:	
 	

Brentwood Associates Private Equity III, LLC

its Manager
	

 	
 	

By:	
 	

Brentwood Private Equity III, LLC

its General Partner
	

 	
 	

By:	
 	

/s/  THOMAS E. DAVIN      
 Thomas E. Davin
	

 	
 	

/s/  THOMAS D. CAMPION      
 THOMAS D. CAMPION
	

 	
 	

/s/  RICHARD M. BROOKS      
 RICHARD M. BROOKS
	

 	
 	

/s/  JOHN G. HAAKENSON      
 JOHN G. HAAKENSON

S-1

  

 
 

EXHIBIT "A"    
    

A-1

 
 

EXHIBIT A    
    

	Member Name
 
	 	Member Address
	 	Cash

Contribution
	 	Gross Asset

Value of

Contributed

Property
	 	Less:

Cash Distribution
	 	Net Agreed

Value of

Contributed

Property
	 	Percentage

Interest in

Zumiez LLC
	 
	Brentwood-Zumiez Investors, LLC	 	11150 Santa Monica Blvd.

Suite 1200

Los Angeles, CA 90025	 	$	25,270,950.67	 	 	 	 	 	 	 	$	25,270,950.67	 	43.25	%
	

Thomas D. Campion	
 	

3123 153rd Avenue S.E.

Snohomish, WA 92890	
 	
 	

 	
 	
$	

33,050,389.76	
 	
$	

(13,414,765.57	
)	
$	

19,635,624.19	
 	

35.12	
%
	

Richard M. Brooks	
 	

6130 N.E. 152nd Street

Kenmore, WA 98028	
 	
 	

 	
 	
$	

12,091,601.91	
 	
 	

 	
 	
$	

12,091,601.91	
 	

21.63	
%
	

John O. Haakenson	
 	

801 12th Avenue N.

Edmonds, WA 98020	
 	
 	

 	
 	
$	

3,691,289.46	
 	
$	

(3,691,289.46	
)	
$	

0.00	
 	

0.00	
%
	 	 	 	 	
	 	
	 	
	 	
	 	
	 
	 	 	 	 	$	25,270,950.67	 	$	48,833,281.13	 	$	(17,106,055.03	)	$	56,998,176.77	 	100.00	%

  

 
 

EXHIBIT "B"    
    

	Member Name
 
	 	Percentage
	 	Maximum

Additional

Distribution

	Thomas D. Campion	 	81.30	%	$	5,000,000.00
	Richard M. Brooks	 	3.43	%	$	210,949.48
	John G. Haakenson	 	15.27	%	$	939,001.27
	 	 	
	 	

	 	 	100.00	%	$	6,149,950.75

B-1

  

 
 

EXHIBIT "C"    
    

	Name
 
	 	Cash
	 	Shares

	Thomas D. Campion	 	$	13,414,765.57	 	9,950.35
	John G. Haakenson	 	$	3,691,289.46	 	2,738.00

C-1

QuickLinks

Exhibit 10.10

TABLE OF CONTENTS

LIMITED LIABILITY COMPANY AGREEMENT OF ZUMIEZ HOLDINGS LLC

RECITALS

AGREEMENT

ARTICLE 1 ORGANIZATIONAL MATTERS

ARTICLE 2 DEFINITIONS

ARTICLE 3 CAPITAL; CAPITAL ACCOUNTS; MEMBERS; REPRESENTATIONS

ARTICLE 4 DISTRIBUTIONS

ARTICLE 5 ALLOCATIONS OF NET PROFITS AND NET LOSSES

ARTICLE 6 OPERATIONS

ARTICLE 7 INTERESTS AND TRANSFERS OF INTERESTS

ARTICLE 8 DISSOLUTION, LIQUIDATION, AND TERMINATION OF THE COMPANY

ARTICLE 9 MISCELLANEOUS

EXHIBIT "A"

EXHIBIT A

EXHIBIT "B"

EXHIBIT "C"

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]