Document:

Ex. 10.2

		
			
		

		
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			BEST BUY CO., INC.
LONG-TERM INCENTIVE PROGRAM AWARD AGREEMENT
		

		
			Award Date: June  11, 2020
		

		
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			This Long-Term Incentive Program Agreement (the “Agreement”), dated the date set forth above (the “Award Date”), is between Best Buy Co., Inc., a Minnesota corporation, (“Best Buy” or the “Company”), and the individual (“you”  or the “Participant”) whose name is set forth in the Award Notification you received from the Company (the “Award Notification”).  The Award Notification is included in and made a part of this Agreement.
		

		
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				 1.
			

			
	
			
			Grant of Award.  In consideration of your service on the Board of Directors of the Company (“Board”), the Company hereby grants to you the award set forth in the Award Notification (the “Award”) subject to the terms and conditions of this Agreement and the Best Buy Co., Inc. 2020 Omnibus Incentive Plan (the “Plan”).  In the event of any conflict between this Agreement and the Plan, the Plan will govern.    By your acceptance of this Award, you acknowledge receipt of a copy of the Prospectus for the Plan and your agreement to the terms and conditions of the Plan and this Agreement.

		
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				 2.
			

			
	
			
			Restricted Stock Units.  A “Restricted Stock Unit” is a right to receive a share of the Company’s common stock (“Share”) upon the lapse of the restrictions set forth in this Agreement.

		
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				 (a)
			

			
	
			
			Restrictions.  During the time you serve on the Board (the “Holding Period”),  the Restricted Stock Units are subject to the restrictions described in this Agreement and the Plan (the “Restrictions”). During the Holding Period, the Restricted Stock Units may not be assigned, transferred (other than by will or the laws of descent and distribution), pledged or hypothecated (whether by operation of law or otherwise) or otherwise conveyed or encumbered, and shall not be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition contrary to the provisions this Agreement or the Plan, or the levy of any execution, attachment or similar process upon the Restricted Stock Units, shall be void and unenforceable against the Company.  The Restricted Stock Units are subject to forfeiture to Best Buy as provided in this Agreement and the Plan.

		
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				 (b)
			

			
	
			
			Vesting.  Except as otherwise set forth herein, so long as your service on the Board continues, the Restricted Stock Units shall vest in accordance with the vesting schedule stated in the Award Notification. If your service on the Board is terminated for any reason other than Cause, a pro rata portion (based on your length of service during the applicable vesting period) of any unvested Restricted Stock Units will vest as of such termination date.  If your service on the Board is terminated for Cause, all Restricted Stock Units, whether vested or not as of the date of termination pursuant to the vesting schedule, will be forfeited as of the date of termination.

		
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				 (c)
			

			
	
			
			Issuance of Shares; Holding Period.    Within 30 days from the end of the Holding Period, the Shares underlying the Restricted Stock Units that have vested as of the end of the Holding Period will be delivered to you.

		
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				 3.
			

			
	
			
			Restrictive Covenants and Remedies.  By accepting the Award, you specifically agree to the restrictive covenants contained in this Section 3 (the “Restrictive Covenants”) and you agree that the Restrictive Covenants and the remedies described herein are reasonable and necessary to protect the legitimate interests of the Company Group.

		
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				 (a)
			

			
	
			
			Confidentiality.  In consideration of the Award, you acknowledge that the Company Group operates in a competitive environment and has a substantial interest in protecting its Confidential Information, and you agree, during your service to the Company and thereafter, to maintain the confidentiality of the Company Group’s Confidential Information and to use such Confidential Information for the exclusive benefit of the Company Group. 

		

		

		 

		

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				 (b)
			

			
	
			
			Non-Solicitation.  During the Holding Period and for one year following the termination of your service on the Board, you shall not:

		
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				 (i)
			

			
	
			
			induce or attempt to induce any employee of the Company Group to leave the employ of Company Group, or in any way interfere adversely with the relationship between any such employee and Company Group;

			
	
			
				 (ii)
			

			
	
			
			induce or attempt to induce any employee of Company Group to work for, render services to, provide advice to, or supply Confidential Information of Company Group to any third Person;

			
	
			
				 (iii)
			

			
	
			
			employ, or otherwise pay for services rendered by, any employee of Company Group in any business enterprise with which you may be associated, connected or affiliated;

			
	
			
				 (iv)
			

			
	
			
			induce or attempt to induce any customer, supplier, licensee, licensor or other business relation of Company Group to cease doing business with Company Group, or in any way interfere with the then existing business relationship between any such customer, supplier, licensee, licensor or other business relation and Company Group; or

			
	
			
				 (v)
			

			
	
			
			assist, solicit, or encourage any other Person, directly or indirectly, in carrying out any activity set forth above that would be prohibited by any of the provisions of this Agreement if such activity were carried out by you.  In particular, you will not, directly or indirectly, induce any employee of Company Group to carry out any such activity.

		
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				 (c)
			

			
	
			
			Partial Invalidity.  If any portion of this Section 3 is determined by an arbitrator to be unenforceable in any respect, it shall be interpreted to be valid to the maximum extent for which it reasonably may be enforced, and enforced as so interpreted, all as determined by such arbitrator in such action.  You acknowledge the uncertainty of the law in this respect and expressly stipulate that this Agreement is to be given the construction that renders its provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law.

		
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				 (d)
			

			
	
			
			Remedy for Breach.  You agree that a breach of any of the Restrictive Covenants would cause material and irreparable harm to the Company Group that would be difficult or impossible to measure, and that monetary damages for any such harm would, therefore, be an inadequate remedy.  Accordingly, you agree that if you breach any Restrictive Covenant, the Company Group shall be entitled, in addition to and without limitation upon all other remedies the Company Group may have under this Agreement, at law or otherwise, to obtain injunctive or other appropriate equitable relief, without bond or other security, to restrain any such breach through arbitration.  You further agree that the duration of the Restrictive Covenant shall be extended by the same amount of time that you are in breach of any Restrictive Covenant.

		
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				 (e)
			

			
	
			
			Claw Back & Recovery.  

		
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				 (i)
			

			
	
			
			In the event (i) you breach any of the Restrictive Covenants, (ii) you engage in conduct materially adverse to the interests of the Company, including any material violations of any Company policy, (iii) you engage in intentional misconduct that caused or contributed to the restatement of any financial statements of the Company, (iv) you materially violate the terms of any agreement to which you and a member of the Company Group is a party or (v) you engage in a criminal act, fraud, or violation of any securities laws, then notwithstanding any other provision of this Agreement to the contrary, the Company, in its sole discretion, may take one or more of the following actions with respect to your Award (and shall, in any event, take all action required by applicable law):

		
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				 (A)
			

			
	
			
			cause the immediate forfeiture of any of your then unvested Restricted Stock Units;

		
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				 (B)
			

			
	
			
			require you to immediately return to the Company any Shares issued under any Restricted Stock Units that are still under your control; and 

		
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				 (C)
			

			
	
			
			require you to promptly pay to the Company an amount equal to the fair market value of all Shares included in your Award that are no longer under your control (as measured on the date of issuance of any Shares issued under any Restricted Stock Units).

		
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				 (ii)
			

			
	
			
			The Committee shall have sole discretion to determine what constitutes the conduct described in Section 3(e)(i) above.

		
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				 (iii)
			

			
	
			
			In addition to the Company’s rights set forth above, you agree your Award and the value of any portion of your Award no longer under your control, shall be subject to recovery or other penalties pursuant to (i) any Company clawback policy, as may be adopted or amended from time to time, or (ii) any applicable law, rule or regulation, or applicable stock exchange rule, including without limitation, the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act. 

		
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				 (f)
			

			
	
			
			Right of Set Off.    By accepting the Award, you agree that any member of the Company Group may set off any amount owed to you (including wages or other compensation, fringe benefits or vacation pay) against any amounts you owe under this Section 3.

		
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				 4.
			

			
	
			
			General Terms and Conditions.

		
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				 (a)
			

			
	
			
			Rights as a Shareholder.    You will have no rights as a shareholder with respect to any Shares issuable under the Restricted Stock Units until you have actually received such Shares in accordance with the terms of this Agreement and the Plan.  This means that you will not have the right to vote as a shareholder nor the right to receive dividend payments.  Upon issuance of Shares at vesting of the Restricted Stock Units,  you will have all of the rights of a shareholder with respect to the Shares unless Shares are forfeited or recovered under this Agreement or the Plan.

		
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				 (b)
			

			
	
			
			Dividend Equivalents.  Notwithstanding the foregoing, you shall accumulate a right to “dividend equivalents” on the Restricted Stock Units if cash dividends are paid on Shares having a record date on or after the Award Date and prior to the end of the Holding Period. You will be entitled to such dividend equivalents with respect to the Restricted Stock Units from the Award Date until the date such Restricted Stock Units are issued (the “Dividend Equivalent Period”), as follows:

		
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				 (i)
			

			
	
			
			For each Share dividend having a record date during the Dividend Equivalent Period, as of each payment date for such dividend, a dollar amount equal to the amount of the dividend that would have been paid on the number of Shares equal to the number of Restricted Stock Units held by you under this Award as of the close of business on the record date for such dividend will be converted into a number of additional notional Restricted Stock Units equal to the number of whole Shares with fractional shares rounded up to the next whole Share that could have been purchased at the closing price on the dividend payment date with such dollar amount.

		
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				 (ii)
			

			
	
			
			Such accrued dividend equivalents will be paid to you in Shares at such time and in accordance with Section 2, as applies, but in each such case only to the extent that the Restricted Stock Units on which such dividend equivalents were credited have become vested and payable. The Committee may, in its discretion, pay such dividend equivalents in cash in lieu of Shares.

		
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				 (c)
			

			
	
			
			Participant’s Acknowledgements.  

		
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				 (i)
			

			
	
			
			Committee’s Sole Discretion.  The Committee has sole discretion to make decisions regarding your Award, and to interpret all terms of this Agreement, with the exception of the application of the Company’s Arbitration Policy. You agree that all decisions regarding and interpretations of this Agreement by the Committee are binding, conclusive, final and non-appealable.

		
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				 (ii)
			

			
	
			
			Taxes.    You are liable for any for any federal, state and other taxes incurred upon the lapse of a substantial risk of forfeiture (e.g., employment taxes) or upon delivery of Shares underlying the Restricted Stock Units (e.g., income taxes), and any subsequent disposition of any Shares (e.g., capital gain taxes).  You authorize the Company, or its agents, to satisfy its obligations with regard to all taxes by selling Shares of the Company on your behalf, or otherwise withholding from such Shares a number of Shares having a Fair Market Value equal to the amount of all taxes required to be withheld by the Company, pursuant to the policies and processes of the Company’s stock plan administrator and broker.  

		
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				 (iii)
			

			
	
			
			Section 409A.  Anything herein to the contrary notwithstanding, this Agreement shall be interpreted so as to comply with or satisfy an exemption from Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively, “Section 409A”). The Committee may in good faith make the minimum modifications to this Agreement as it may deem appropriate to comply with Section 409A while to the maximum extent reasonably possible maintaining the original intent and economic benefit to you and the Company Group of the applicable provision.

		
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				 (A)
			

			
	
			
			To the extent required by Section 409A(a)(2)(B)(i), to the extent that you are a specified employee, Shares (or cash equivalent value of Shares) underlying Restricted Stock Units that become payable to you upon your separation from service will be delayed and paid promptly after the earlier of the date that is six (6) months after the date of such separation from service or the date of your death after such separation from service. For purposes hereof, (x) any reference to your termination of service under this Agreement shall mean your separation from service, (y) the occurrence of your “separation from service” will be determined in accordance with the default provisions of Treasury Regulation Section 1.409A-1(h) and (z) whether you are a “specified employee” will be determined in accordance with the default provisions of Treasury Regulation Section 1.409A-1(i) with the “identification date” to be December 31 and the “effective date” to be the April 1 following the identification date (as such terms are used under such regulation). Notwithstanding anything in this Agreement to the contrary, your service shall not be deemed to have been terminated unless and until you have incurred a “separation from service” within the meaning of Section 409A.

		
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				 (B)
			

			
	
			
			For purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii), your right to receive any installment payments under this Agreement shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment under this Agreement shall at all times be considered a separate and distinct payment. 

		
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				 (iv)
			

			
	
			
			Consultation With Professional Tax Advisors.  You acknowledge that the grant, exercise, vesting or any payment with respect to the Award, and the sale or other taxable disposition of the Shares acquired as a result of the Award may have tax consequences under federal, state, local or international tax laws.  You further acknowledge that you are relying solely on your own professional tax and investment advisors with respect to any and all such matters (and are not relying, in any manner, on the Company or any of its employees or representatives).  You understand and agree that any and all tax consequences resulting from the Award and its grant, exercise, vesting or any payment with respect thereto, and the sale or other taxable disposition of the Shares acquired pursuant to the Plan, are solely your responsibility without any expectation or understanding that the Company or any of its employees or representatives will pay or reimburse you for such taxes.

		
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				 (d)
			

			
	
			
			Severability.  In the event that any provision in the Plan or this Agreement is held to be invalid, illegal or unenforceable or would disqualify the Plan or this Agreement under any law, the invalid, illegal or unenforceable provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the purpose or intent of the Plan or this Agreement, such provision shall be stricken as to the applicable jurisdiction or Shares, and the remainder of the Plan or this Agreement shall remain in full force and effect.

		
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				 (e)
			

			
	
			
			Governing Law and Dispute Resolution. Any disputes under this Agreement or the Plan must be resolved by arbitration subject to the Company’s Arbitration Policy.  The substantive laws of Minnesota, without regard to the conflict of law provisions, shall apply to all questions concerning this Agreement to the extent not prohibited by the applicable law of the State in which you primarily work and reside; however, the Arbitration Policy, its enforceability, and its implementation are governed by the Federal Arbitration Act. 

		
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				 5.
			

			
	
			
			Definitions.  Capitalized terms used but not defined in this Agreement are defined in the Plan or, if not defined therein, will have the following meanings:

		
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				 (a)
			

			
	
			
			“Cause” for termination of your service with the Company Group shall, solely for purposes of this Agreement, is deemed to exist if you:

		

		

		 

		

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				 (i)
			

			
	
			
			are charged with, convicted of or enter a plea of guilty or nolo contendere to: (a) a felony, (b) any crime involving moral turpitude, dishonesty, breach of trust or unethical business conduct, or (c) any crime involving the business of the Company Group;

		
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				 (ii)
			

			
	
			
			in the performance of your duties for the Company Group or otherwise to the detriment of the Company Group, engage in: (a) dishonesty that is harmful to the Company Group, monetarily or otherwise, (b) willful or gross misconduct, (c) willful or gross neglect, (d) fraud, (e) misappropriation, (f) embezzlement, or (g) theft;

		
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				 (iii)
			

			
	
			
			disobey the directions of the Board, or any individual or individuals the Board authorizes to act on its or their behalf, acting within the scope of its or their authority;

		
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				 (iv)
			

			
	
			
			fail to comply with the policies or practices of the Company Group;

		
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				 (v)
			

			
	
			
			are adjudicated in any civil suit, or acknowledge in writing in any agreement or stipulation, to have committed any theft, embezzlement, fraud, or other act of dishonesty involving any other Person;

		
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				 (vi)
			

			
	
			
			are determined, in the sole judgment of the Board or any individual or individuals the Board authorizes to act on its or their behalf, to have engaged in a pattern of poor performance;

		
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				 (vii)
			

			
	
			
			are determined, in the sole judgment of the Board or any individual or individuals the Board authorizes to act on its or their behalf, to have willfully engaged in conduct that is harmful to the Company Group, monetarily or otherwise;

		
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				 (viii)
			

			
	
			
			breach any provision of this Agreement or any other agreement between you and any member of the Company Group; or

		
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				 (ix)
			

			
	
			
			engage in any activity intended to benefit any entity at the expense of the Company Group or intended to benefit any competitor of the Company Group.

		
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			All determinations and other decisions relating to Cause (as defined above) for termination of your service shall be within the sole discretion of the Board or any individual or individuals the Board authorizes to act on its behalf; and shall be final, conclusive and binding upon you.  In the event that there exists Cause (as defined above),  the Company may terminate this Agreement immediately, upon written notification of such termination for Cause, given to you by the Board or any individual or individuals the Board authorizes to act on its behalf. 
		

		
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				 (b)
			

			
	
			
			“Company Group”  means, collectively, Best Buy Co., Inc. and its subsidiaries.

		
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				 (c)
			

			
	
			
			“Committee”  means the Compensation and Human Resources Committee of the Board of Directors of Best Buy Co., Inc.

		
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				 (d)
			

			
	
			
			“Confidential Information” means all “Confidential Information” as that term is defined in Best Buy’s Confidentiality Policy, and includes, without limitation, any and all information in whatever form, whether written, electronically stored, orally transmitted or memorized relating to trade secrets, customer lists, records and other information regarding customers, price lists and pricing policies, financial information, records, ledgers and information, purchase orders, agreements and related data, business development and strategic plans, products and technologies, product tests, manufacturing costs, product or service pricing, sales and marketing plans, research and development plans, personnel and employment records, files, data and policies (regardless of whether the information pertains to you or  employees of the Company Group), tax information, business and sales methods and operations, business correspondence, memoranda and other records, inventions, improvements and discoveries, processes and methods, business operations and related data formulae, computer records and related data, know-how, research and development, trademark, technology, technical information, copyrighted material, and any other confidential or proprietary data and information which you encounter during your service, all of which are held, possessed and/or owned by the Company Group and all of which are used in the operations and business of the Company Group.  Confidential Information does not include information 
		

		 

		

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			which is or becomes generally known within the Company Group’s industry through no act or omission by you. 

		 

		

			6EXHIBIT
10.22

 

LIMITED
LIABILITY COMPANY

 

AGREEMENT

 

OF

 

CAT
CREEK HOLDINGS LLC

     

     

    

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	Article
    I DEFINED TERMS	1
	 	 	 
	Section
    1.1	Definitions	1
	Section
    1.2	Headings	4
	 	 	 
	Article
    II NAME AND TERM	4
	 	 	 
	Section
    2.1	Name	4
	Section
    2.2	Term	4
	Section
    2.3	Registered
    Agent and Office	5
	Section
    2.4	Qualification
    in Other Jurisdictions	5
	 	 	 
	Article
    III PURPOSE AND POWERS OF THE COMPANY	5
	 	 	 
	Section
    3.1	Purpose	5
	Section
    3.2	Powers
    of the Company.	5
	 	 	 
	Article
    IV CAPITAL CONTRIBUTIONS, INTERESTS, CAPITAL ACCOUNTS AND ADVANCES	5
	 	 	 
	Section
    4.1	Capital
    Contributions	5
	Section
    4.2	Member’s
    Interest	5
	Section
    4.3	Status
    of Capital Contributions	6
	Section
    4.4	Capital
    Accounts	6
	Section
    4.5	Advances	7
	 	 	 
	Article
    V MEMBERS	7
	 	 	 
	Section
    5.1	Powers
    of Members	7
	Section
    5.2	Reimbursements	7
	Section
    5.3	Partition	8
	Section
    5.4	Resignation	8
	Section
    5.5	Meetings
    of Members	8
	 	 	 
	Article
    VI MANAGEMENT	9
	 	 	 
	Section
    6.1	Board
    of Directors	9
	Section
    6.2	Meetings
    of the Board of Directors	10
	Section
    6.3	Quorum
    and Acts of the Board	10
	Section
    6.4	Telephonic
    Meetings	11
	Section
    6.5	Committee
    of Directors	11
	Section
    6.6	Compensation
    of Directors	11
	Section
    6.7	Removal
    of Directors	11
	Section
    6.8	Directors
    as Agents	12

    i

     

    

	Article
    VII OFFICERS	12
	 	 	 
	Section
    7.1	Officers	12
	Section
    7.2	Resignation
    and Removal	12
	Section
    7.3	Vacancies	12
	Section
    7.4	Chair
    of the Board	12
	Section
    7.5	Vice
    Chair of the Board	13
	Section
    7.6	Chief
    Executive Officer	13
	Section
    7.7	President	13
	Section
    7.8	Vice
    President	13
	Section
    7.9	Treasurer	13
	Section
    7.10	Secretary	13
	Section
    7.11	Assistant
    Treasurer	14
	Section
    7.12	Assistant
    Secretary	14
	Section
    7.13	Officers
    as Agents	14
	 	 	 
	Article
    VIII ALLOCATIONS	14
	 	 	 
	Section
    8.1	Profits
    and Losses	14
	Section
    8.2	Allocation
    Rules	15
	Section
    8.3	Tax
    Allocations; Section 704(c) of the Code	15
	 	 	 
	Article
    IX DISTRIBUTIONS	15
	 	 	 
	Section
    9.1	Net
    Cash Flow	15
	Section
    9.2	Distribution
    Rules	15
	Section
    9.3	Limitations
    on Distribution	16
	 	 	 
	Article
    X BOOKS AND RECORDS	16
	 	 	 
	Section
    10.1	Books,
    Records and Financial Statements	16
	 	 	 
	Article
    XI TAX MATTERS	16
	 	 	 
	Section
    11.1	Taxation
    as a Disregarded Entity	16
	 	 	 
	Article
    XII LIABILITY, EXCULPATION AND INDEMNIFICATION	17
	 	 	 
	Section
    12.1	Liability	17
	Section
    12.2	Exculpation	17
	Section
    12.3	Fiduciary
    Duty	17
	Section
    12.4	Indemnification	17
	Section
    12.5	Expenses	18
	Section
    12.6	Insurance	18
	Section
    12.7	Outside
    Businesses	18

    ii

     

    

	Article
    XIII ADDITIONAL MEMBERS	19
	 	 	 
	Section
    13.1	Admission	19
	Section
    13.2	Allocations	19
	 	 	 
	Article
    XIV DISSOLUTION, LIQUIDATION AND TERMINATION	19
	 	 	 
	Section
    14.1	No
    Dissolution	19
	Section
    14.2	Events
    Causing Dissolution	19
	Section
    14.3	Liquidation	20
	Section
    14.4	Termination	20
	Section
    14.5	Claims
    of the Members	20
	 	 	 
	Article
    XV MISCELLANEOUS	20
	 	 	 
	Section
    15.1	Notices	20
	Section
    15.2	Failure
    to Pursue Remedies	21
	Section
    15.3	Cumulative
    Remedies	21
	Section
    15.4	Binding
    Effect	21
	Section
    15.5	Interpretation	21
	Section
    15.6	Severability	21
	Section
    15.7	Counterparts	21
	Section
    15.8	Integration	22
	Section
    15.9	Governing
    Law	22
	Section
    15.10	Amendments	22
	Section
    15.11	No
    Implied Rights or Remedies	22

    iii

     

    

LIMITED
LIABILITY COMPANY AGREEMENT

OF
CAT CREEK HOLDINGS LLC

 

This
Limited Liability Company Agreement of Cat Creek Holdings LLC (the “Company”) is made as of June 30, 2020, by Laredo
Oil, Inc., a Delaware corporation (“Laredo”), as the sole Member of the Company, and each Person who becomes an Additional
Member of the Company in accordance with the provisions hereof and whose name is set forth as a Member on Schedule A hereto.

 

WHEREAS,
the Company was formed on May 28, 2020 by filing of a Certificate of Formation with the Secretary of State of the State of Montana;

 

NOW,
THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged and intending to be legally bound, the Members hereby agree as follows:

 

Article
I

DEFINED TERMS

 

Section
1.1 Definitions. Unless the context otherwise
requires, the terms defined in this Article I shall, for the purposes of this LLC Agreement, have the meanings herein specified.

 

“Additional
Member” has the meaning set forth in Section 13.1 hereof.

 

“Affiliate”
means, with respect to a specified Person, any Person that directly or indirectly controls, is controlled by, or is under common
control with, the specified Person. As used in this definition, the term “control” means the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership
of voting securities, by contract or otherwise.

 

“Board”
means the Board of Directors of the Company.

 

“Capital
Account” means, with respect to any Member, the account maintained for such Member in accordance with the provisions of
Section 4.4 hereof.

 

“Capital
Contribution” means, with respect to any Member, the aggregate amount of money and the fair market value of any property
(other than money) contributed to the Company pursuant to Section 4.1 hereof with respect to such Member’s Interest.

 

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

 

“Chair”
or “Chair of the Board” means the Person elected by the Board of Directors as the chair of the Board of the Company
who shall perform the duties described below in Section 7.4 of this LLC Agreement.

    1

     

    

“Chief
Executive Officer” means the Person elected by the Board of Directors as the chief executive officer of the Company who
shall perform the duties described below in Section 7.6 of this LLC Agreement.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, or any corresponding federal tax statute enacted after
the date of this LLC Agreement. A reference to a specific section (§) of the Code refers not only to such specific section
but also to any corresponding provision of any federal tax statute enacted after the date of this LLC Agreement, as such specific
section or corresponding provision is in effect on the date of application of the provisions of this LLC Agreement containing
such reference.

 

“Company”
means Cat Creek Holdings LLC, a Montana limited liability company.

 

“Covered
Person” means a Member, a Director, an Officer, a Manager, any Affiliate of a Member, a Director, an Officer or a Manager,
any officers, directors, shareholders, partners, employees, representatives or agents of a Member, a Director, an Officer or a
Manager, or their respective Affiliates, or any employee or agent of the Company or its Affiliates.

 

“Montana
Act” means the Montana Limited Liability Company Act, as amended from time to time.

 

“Director”
means a director of the Company.

 

“Fiscal
Year” of the Company means (i) the calendar year, or (ii) any portion of the period described in clause (i) of this sentence
for which the Company is required to allocate Profits, Losses and other items of Company income, gain, loss or deduction pursuant
to Article VIII hereof.

 

“Interest”
means a Member’s limited liability company interest in the Company which represents such Member’s share of the profits
and losses of the Company and a Member’s right to receive distributions of the Company’s assets in accordance with
the provisions of this LLC Agreement and the Montana Act.

 

“Laredo”
means Laredo Oil, Inc., a Delaware corporation.

 

“Laws”
means:

 

(i)
all constitutions, treaties, laws, statutes, codes, ordinances, orders, decrees, rules, regulations and municipal by-laws,
whether domestic, foreign or international;

 

(ii)
all judgments, orders, writs, injunctions, decisions, rulings, decrees and awards of any governmental body;

 

(iii)
all policies, practices and guidelines of any governmental body; and

 

(iv)
any amendment, modification, re-enactment, restatement or extension of the foregoing, in
each case binding on or affecting the party or Person referred to in the context in which such word is used; and “Law”
shall mean any one of them.

    2

     

    

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

 

“Majority
Vote” means the written approval of, or the affirmative vote by, Members holding a majority of the Percentage Interests.

 

“Manager”
means any Person designated by the Members as a manager of the Company within the meaning of the Montana Act and shall include
the Directors of the Company.

 

“Member”
means Laredo and includes any Person subsequently admitted as an Additional Member or a substitute Member pursuant to the provisions
of this LLC Agreement, in such Person’s capacity as a member of the Company, and “Members” means two (2) or
more of such Persons when acting in their capacities as members of the Company. For purposes of the Montana Act, the Members shall
constitute one (1) class or group of members.

 

“Net
Cash Flow” means, for each Fiscal Year or other period of the Company, the gross cash receipts of the Company from all sources,
but excluding any amounts, such as gross receipts taxes, that are held by the Company as a collection agent or in trust for others
or that are otherwise not unconditionally available to the Company, less all amounts paid by or for the account of the Company
during the same Fiscal Year or any other period (including, without limitation, payments of principal and interest on any Company
indebtedness and expenses reimbursed to the Members under Section 5.2 hereof), and less any amounts determined by the Members
to be necessary to provide a reasonable reserve for working-capital needs or any other contingencies of the Company. Net Cash
Flow shall be determined in accordance with the cash receipts and disbursements method of accounting and otherwise in accordance
with generally accepted accounting principles, consistently applied. Net Cash Flow shall not be reduced by depreciation, amortization,
cost recovery deductions, depletion, similar allowances or other non-cash items, but shall be increased by any reduction of reserves
previously established.

 

“Officer”
means an officer of the Company.

 

“Percentage
Interest” means the Interest of a Member, expressed as a portion of one hundred percent, as shown on Schedule A hereto,
which reflects the Member’s ownership interest in the Company, as determined by the unanimous written consent of the Members
as adjusted from time to time.

    3

     

    

“Person”
includes any individual, corporation, association, partnership (general or limited), joint venture, trust, estate, limited liability
company, or other legal entity or organization.

 

“President”
means the Person elected by the Board as the president of the Company, who shall perform the duties described in Section 7.7 of this LLC Agreement.

 

“Profits”
and “Losses” means, for each Fiscal Year, an amount equal to the Company’s taxable income or loss for such Fiscal
Year, determined in accordance with § 703(a) of the Code.

 

“Secretary”
means the Person elected by the Board as the secretary of the Company, who shall perform the duties described in Section 7.10 of this LLC Agreement.

 

“Treasurer”
means the Person elected by the Board as the treasurer of the Company, who shall perform the duties described in Section
7.9 of this LLC Agreement.

 

“Treasury
Regulations” means the income tax regulations, including temporary regulations, promulgated under the Code, as such regulations
may be amended from time to time (including corresponding provisions of succeeding regulations).

 

“Vice
Chair” means the Person elected by the Board as the vice chair of the Company, who shall perform the duties described in
Section 7.5 of this LLC Agreement.

 

“Vice
President” means the Person elected by the Board as a vice president of the Company, who shall perform the duties described
in Section 7.8 of this LLC Agreement.

 

Section
1.2 Headings. The headings and subheadings in this LLC Agreement are included for convenience and identification only and are in no way intended
to describe, interpret, define or limit the scope, extent or intent of this LLC Agreement or any provision hereof.

 

Article
II

NAME AND TERM

 

Section
2.1 Name. The
name of the Company is Cat Creek Holdings LLC. The business of the Company may be conducted upon compliance with all applicable
Laws under any other name designated by the Board.

 

Section
2.2 Term. The term of the Company
commenced on May 28, 2020 and shall continue until the Company is dissolved in accordance with the provisions of this LLC Agreement.
The existence of the Company as a separate legal entity shall continue until cancellation of the Certificate in the manner required
by the Montana Act.

 

Section
2.3 Registered Agent and Office. The
Company’s registered agent and office in the State of Montana shall be Bill D. Metzler, whose address is 231 Skookum
Road, Lakeside, Montana 59922. At any time, the Members may designate another registered agent and/or registered
office.

    4

     

    

Section
2.4 Qualification in Other
Jurisdictions. The Board shall cause the Company to be qualified, formed or registered under assumed or fictitious name
statutes or similar Laws in any jurisdiction in which the Company transacts business. Any Officer of the Company, as an
authorized person within the meaning of the Montana Act, shall be empowered to execute, deliver and file any certificates
(and any amendments and/or restatements thereof) necessary for the Company to qualify to do business in a jurisdiction in
which the Company may wish to conduct business.

 

Article
III

PURPOSE AND POWERS OF THE COMPANY

 

Section
3.1 Purpose. The Company is formed for
the object and purpose of, and the nature of the business to be conducted and promoted by the Company is, engaging in any lawful
act or activity for which limited liability companies may be formed under the Montana Act and engaging in any and all activities
reasonably necessary, appropriate or advisable from time to time in furtherance of the foregoing.

 

Section
3.2 Powers of the Company. The Company shall have the power and authority to take any and all actions necessary, appropriate,
proper, advisable, incidental or convenient to or for the furtherance of the purpose set forth in Section 3.1 hereof.

 

Article
IV

CAPITAL CONTRIBUTIONS, INTERESTS, CAPITAL

ACCOUNTS AND ADVANCES

 

Section
4.1 Capital Contributions. The Percentage
Interest for each Member is set out beside that Member’s name on the attached Schedule A. No Member shall be required
to make any additional capital contribution to the Company. However, a Member may make additional capital contributions to the
Company with the written consent of all of the Members.

 

Section
4.2 Member’s Interest. A
Member’s Interest shall for all purposes be personal property. A Member has no interest in specific Company
property.

 

Section
4.3 Status of Capital Contributions.
Except as otherwise provided in this LLC Agreement, the amount of a Member’s Capital Contributions may be returned to it,
in whole or in part, at any time, but only with the consent of all of the Members. Any such returns of Capital Contributions shall
be made to all Members in proportion to their Percentage Interests. Notwithstanding the foregoing, no return of a Member’s
Capital Contributions shall be made hereunder if such distribution would violate applicable law. Under circumstances requiring
a return of any Capital Contribution, no Member shall have the right to demand or receive property other than cash, except as
may be specifically provided in this LLC Agreement or as may be specifically agreed to by all of the Members.

    5

     

    

(i)
No Member shall receive any interest, salary or drawing with respect to its Capital Contributions or its Capital Account or for
services rendered on behalf of the Company or otherwise in its capacity as a Member, except as otherwise specifically provided
in this LLC Agreement.

 

(ii)
Except as otherwise provided herein and by applicable law, the Members shall be liable only to make their capital contributions
pursuant to Section 4.1 hereof, and no Member shall be required to lend any funds to the Company or, after a Member’s
Capital Contributions have been fully paid pursuant to Section 4.1 hereof, to make any additional capital contributions
to the Company. No Member shall have any personal liability for the repayment of any Capital Contribution of any other Member.

 

Section
4.4 Capital
Accounts. An individual Capital Account shall be established and maintained for each Member.

 

(i)
The Capital Account of each Member shall be maintained in accordance with the following provisions:

 

(a)
to such Member’s Capital Account there shall be credited such Member’s Capital Contributions (consisting of cash or
the fair market value of any property net of any liabilities secured by such contributed property that the Company is considered
to assume or take subject to under § 752 of the Code); such Member’s distributive share of Profits; and such Member’s
distributive share of other items of income, gain or credits; and

 

(b)
to such Member’s Capital Account there shall be debited the amount of cash and the fair market value of property distributed
by the Company to such Member (net of liabilities secured by such distributed property which the Member is considered to assume
or take subject to under § 752 of the Code); such Member’s distributive share of Losses; and such Member’s distributive
share of other items of loss or deduction.

 

Section
4.5 Advances. If any Member shall
advance any funds to the Company in excess of its Capital Contributions, the amount of such advance shall neither increase
its Capital Account nor entitle it to any increase in its share of the distributions of the Company. The amount or any such
advance shall be a debt obligation of the Company to such Member and shall be subject to such terms and conditions acceptable
to the Company and each Member. Any such advance shall be payable and collectible only out of Company assets, and the other
Members shall not be personally obligated to repay any part thereof. No Person who makes any nonrecourse loan to the Company
shall have or acquire, as a result of making such loan, any direct or indirect interest in the profits, capital or property
of the Company, other than as a creditor.

    6

     

    

Article
V

MEMBERS

 

Section
5.1 Powers of Members. The
Members shall have the power to exercise any and all rights or powers granted to the Members pursuant to the express terms of
this LLC Agreement. The Members agree that the rights, duties and liabilities of the Members shall be as provided in the Montana
Act, except as otherwise provided herein. The Members shall also have the power to authorize the Board, by Majority Vote, to possess
and exercise any right or power not already vested in the Board pursuant to Article VI or any other provision of this LLC
Agreement. In addition to the foregoing, the Members have the power to exercise any and all other rights or powers of the Company
and to do all lawful acts and things as are not by the Montana Act or this LLC Agreement directed or required to be exercised
or done by the Board. Except as provided herein, the Members shall have no power to bind the Company.

 

(i)
The name and mailing address of each Member and the Percentage Interest of each Member shall be listed on Schedule A attached
hereto. The Secretary shall be required to update Schedule A from time to time as necessary to accurately reflect the information
therein. Any amendment or revision to Schedule A made in accordance with this LLC Agreement shall not be deemed an amendment
to this LLC Agreement. Any reference in this LLC Agreement to Schedule A shall be deemed to be a reference to Schedule A
as amended and in effect from time to time.

 

Section
5.2 Reimbursements. The
Company shall reimburse the Members for all ordinary and necessary out-of-pocket expenses incurred by the Members on behalf of
the Company. Such reimbursement shall be treated as an expense of the Company that shall be deducted in computing the Net Cash
Flow and shall not be deemed to constitute a distributive share of Profits or a distribution or return of capital to any Member.

 

Section
5.3 Partition. Each
Member waives any and all rights that it may have to maintain an action for partition of the Company’s property.

 

Section
5.4 Resignation. A
Member may not resign from the Company prior to the dissolution and winding up of the Company.

 

Section
5.5 Meetings
of Members. The annual meeting of the Members for the election of Directors and the transaction of other business shall
be held at such date and time as shall be designated from time to time by the Board of Directors and stated in the notice of meeting
or in a duly executed waiver thereof. Special meetings of the Members, for any purpose or purposes, may be called by the Chair
and shall be called by the Chair or Secretary at the request in writing of a majority of the Board. Such request shall state the
purpose or purposes of the proposed meeting.

 

(i)
All meetings of the Members for the election of Directors or for any other purpose shall be held at any such place, either within
or without the State of Montana, as shall be designated from time to time by the Board of Directors and stated in the notice of
meeting or in a duly executed waiver thereof.

    7

     

    

(ii)
At the annual meeting of the Members, Laredo Oil, Inc. shall be entitled to elect two (2) Directors, Lipson Investments LLC shall
be entitled to elect one (1) Director, and Viper Oil & Gas, LLC shall be entitled to elect one (1) Director.

 

(iii)
Written notice of the annual meeting stating the place, date and hour of the meeting shall be given to each Member entitled to
vote at such meeting not less than 10 nor more than 60 days before the date of the meeting. Written notice of a special meeting
stating the place, date and hour of the meeting and the purpose or purposes for which the meeting is called, shall be given not
less than 10 nor more than 60 days before the date of the meeting, to each Member entitled to vote at such meeting.

 

(iv)
Business transacted at any special meeting of Members shall be limited to the purposes stated in the notice, unless otherwise
agreed to by all of the Members.

 

(v)
The holders of a majority of the Percentage Interests issued and outstanding and entitled to vote thereat, present in person or
represented by proxy, shall constitute a quorum at all meetings of the Members for all the transactions of business except as
otherwise provided by this LLC Agreement. If, however, such quorum shall not be present or represented at any meeting of the Members,
the Members entitled to vote thereat, present in person or represented by proxy, shall have power to adjourn the meeting from
time to time, without notice other than announcement at the meeting, until a quorum shall be present or represented. At such adjourned
meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at
the meeting as originally notified. If the adjournment is for more than 30 days, or if after the adjournment a new record date
is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each Member of record entitled to vote
at the meeting.

 

(vi)
When a quorum is present at any meeting, the vote of the holders of the majority of the Percentage Interests having voting power,
present in person or represented by proxy, shall decide any question brought before such meeting, unless the question is one upon
which by express provision of this LLC Agreement a different vote is required, in which case such express provision shall govern
and control the decision of such question.

 

(vii)
Unless otherwise provided in this LLC Agreement, each Member shall at every meeting of the Members be entitled to vote in person
or by proxy, but no proxy shall be voted on after three years from its date, unless the proxy provides for a longer period.

    8

     

    

(viii)
Members may participate in a meeting of the Members by means of conference telephone or similar communications equipment, provided
all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in
person at the meeting. If all the participants are participating by conference telephone or similar communications equipment,
the meeting shall be deemed to be held at the principal place of business of the Company.

 

(ix)
Unless otherwise provided in this LLC Agreement, any action required to be taken at any annual or special meeting of the Members
of the Company, or any action which may be taken at any annual or special meeting of such Members, may be taken without a meeting,
without prior notice and without a vote, if a consent in writing, setting forth the actions taken, shall be signed by the holders
of Percentage Interest having not less than the minimum number of votes that would be necessary to authorize or take such action
at a meeting at which all Members entitled to vote thereon were present and voted. Prompt notice of taking of the action without
a meeting by less than unanimous consent shall be given to those Members who have not consented in writing.

 

Article
VI

MANAGEMENT

 

Section
6.1 Board of Directors. Subject
to Section 5.1 of this LLC Agreement, the business and affairs of the Company shall be managed by or under the direction
of a Board of one or more Directors. A person elected a Director is by such election designated a Manager by the Members for the
purposes of the Act. The Members at their annual meeting shall determine the number of Directors to constitute the Board for the
ensuing year, provided that thereafter the authorized number of Directors may be increased by the Members or decreased by the
Members. The initial number of Directors shall be four (4), and the initial Directors of the Company shall be:

 

	Mark
    See	Chairman
    of the Board of Directors
	Kenneth
    Lipson	Director
	Curt
    Thurmon	Director
	Chris
    Lindsey	Director

 

At
each annual meeting of the Members, commencing with the 2020 annual meeting, the Directors shall be elected, except as provided
in this Article, and each Director elected shall hold office until a successor is elected and qualified or until such Director’s
earlier death, resignation or removal. Directors need not be Members. Vacancies, except vacancies caused by removal pursuant to
Section 6.7, and newly created directorships resulting from any increase in the authorized number of Directors may be filled
by a majority of the Directors then in office, though less than a quorum, or by a sole remaining Director, and the Directors so
chosen shall hold office until the next annual election and until their successors are duly elected and shall qualify, unless
sooner displaced.

    9

     

    

Section
6.2 Meetings of the Board of
Directors. The Board of Directors of the Company may hold meetings, both regular and special, within or outside the State
of Montana. The first meeting of each newly elected Board of Directors shall be held immediately after the annual meeting of
Members and at the same place, and no notice of such meeting shall be necessary to the newly elected Directors in order
legally to constitute the meeting, provided a quorum shall be present. In the event such meeting is not held at that time and
place, the meeting may be held at such time and place as shall be specified in a notice given as hereinafter provided for
special meetings of the Board of Directors, or as shall be specified in a written waiver signed by all of the Directors.
Regular meetings of the Board may be held without notice at such time and at such place as shall from time to time be
determined by the Board. Special meetings of the Board may be called by the Chair on three (3) days’ notice to each
Director, either personally, by telephone, by mail, by telegram or by any other means of communication; special meetings
shall be called by the Chair or Secretary in like manner and on like notice on the written request of one or more of the
Directors.

 

Section
6.3 Quorum and Acts of the Board. At
all meetings of the Board a majority of the Directors shall constitute a quorum for the transaction of business and, except as
otherwise provided in any other provision of this LLC Agreement, the act of a majority of the Directors present at any meeting
at which there is a quorum shall be the act of the Board. For the purposes of establishing a quorum, a majority shall comprise
either (a) at least three (3) Directors or (b) any two (2) Directors, if one is the Chairman of the Board. In the event that the
vote of the Directors present at any meeting at which there is a quorum results in a tie, the majority shall be determined by
the Chairman of the Board. If a quorum shall not be present at any meeting of the Board, the Directors present thereat may adjourn
the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present. Any action
required or permitted to be taken at any meeting of the Board or any committee thereof may be taken without a meeting, if all
members of the Board or committee, as the case may be, consent thereto in writing, and the writing or writings are filed with
the minutes of proceedings of the Board or committee.

 

Section
6.4 Telephonic Meetings. Members
of the Board, or any committee designated by the Board, may participate in a meeting of the Board, or any committee, by means
of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear
each other, and such participation in a meeting shall constitute presence in person at the meeting. If all the participants are
participating by conference telephone or similar communications equipment, the meeting shall be deemed to be held at the principal
place of business of the Company.

 

Section
6.5 Committee of Directors. The
Board may designate one or more committees of not less than one member, each of whom shall be a director. The Board may designate
one or more Directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting
of the committee. Any such committee, to the extent provided in the resolution of the Board, shall have and may exercise all the
powers and authority of the Board in the management of the business and affairs of the Company except such committee shall not
have the power or authority to amend this LLC Agreement. Such committee or committees shall have such name or names as may be
determined from time to time by resolution adopted by the Board. Each committee shall keep regular minutes of its meetings and
report the same to the Board when required.

    10

     

    

Section
6.6 Compensation of Directors. The
Board shall have the authority to fix the compensation of Directors. The Directors may be paid their expenses, if any, of attendance
at such meeting of the Board and may be paid a fixed sum for attendance at each meeting of the Board or a stated salary as Director.
No such payment shall preclude any Director from serving the Company in any other capacity and receiving compensation therefor.
Members of special or standing committees may be allowed like compensation for attending committee meetings.

 

Section
6.7 Removal of Directors. Unless
otherwise restricted by Law, any Director or the entire Board of Directors may be removed, with or without cause, by the holder
of a majority of Percentage Interests entitled to vote at any election of Directors. Any vacancy caused by any such removal may
be filled by action of the Members.

 

Section
6.8 Directors as Agents. The
Directors, to the extent of their powers set forth in this LLC Agreement, are agents of the Company for the purpose of the Company’s
business, and the actions of the Directors taken in accordance with such power shall bind the Company.

 

Article
VII

OFFICERS

 

Section
7.1 Officers. The
Board of Directors may appoint a director as Chair of the Board and may also appoint a director as Vice Chair of the Board. The
Board of Directors shall appoint a President, a Secretary and a Treasurer. The Board of Directors may also appoint an Executive
Vice President and one or more Vice Presidents, none of whom need be directors. All Officers of the Company shall hold office
at the pleasure of the Board of Directors. Any two or more offices, except those of President and Executive Vice President or
Vice President and except those of Chair and Vice Chair, may, at the discretion of the Board of Directors, be held by the same
person. The Board of Directors may, from time to time, appoint such other officers and agents with such powers and duties as the
Board may prescribe.

 

Section
7.2 Resignation and Removal. Any
Officer of the Company may resign at any time by giving written notice of his or her resignation to the Company. Any such resignation
shall take effect at the time specified therein or, if the time when it shall become effective shall not be specified therein,
immediately upon receipt by the Company. Unless otherwise specified therein, the acceptance of any such resignation shall not
be necessary to make it effective. Any Officer of the Company may be removed, either with or without cause, at any time, by the
Board of Directors at any meeting thereof.

    11

     

    

Section
7.3 Vacancies. The
Board of Directors may fill any vacancy occurring in any office for any reason and may, in its discretion, leave unfilled for
such period as it may determine any offices other than those of President, Treasurer and Secretary. Each successor shall hold
office for the unexpired term of his or her predecessor and until his or her successor is elected and qualified, or until his
or her earlier death, resignation or removal.

 

Section
7.4 Chair of the Board. The
Chair of the Board shall preside at all meetings of the Board of Directors and shall perform such other duties and exercise such
other powers as may be assigned to him or her from time to time by the Board of Directors. The Chair shall be the Chief Executive
Officer of the Company.

 

Section
7.5 Vice Chair of the Board. In
the absence of the Chair of the Board, the Vice Chair of the Board shall preside at all meetings of the Board of Directors and
shall perform such other duties and exercise such other powers as may be assigned to him or her from time to time by the Board
of Directors.

 

Section
7.6 Chief Executive Officer. The
Chief Executive Officer shall, subject to the Board of Directors, have general executive charge, management, and control of the
properties and operations of the Company in the ordinary course of its business, with all such powers with respect to such properties
and operations as may be reasonably incident to such responsibilities.

 

Section
7.7 President. The
President shall be the chief operating officer of the Company and shall perform all such duties as from time to time may be assigned
to him or her by the Board of Directors, the Chair of the Board or the Vice Chair of the Board. At the request of the Chief Executive
Officer or in his or her absence or in the event of his or her inability or refusal to act, the President shall perform the duties
of the Chief Executive Officer, and, when so acting, shall have the powers of and be subject to the restrictions placed upon the
Chief Executive Officer.

 

Section
7.8 Vice President. Each
Vice President shall perform all such duties as from time to time may be assigned to him or her by the Board of Directors, the
Chair of the Board, the Vice Chair of the Board or the President. At the request of the President or in his or her absence or
in the event of his or her inability or refusal to act, the Vice President, or if there shall be more than one, the Vice Presidents
in the order determined by the Board of Directors (or if there be no such determination, then the Vice Presidents in the order
of their election), shall perform the duties of the President, and, when so acting, shall have the powers of and be subject to
the restrictions placed upon the President.

 

Section
7.9 Treasurer. The
Treasurer shall, in general, perform all duties incident to the office of Treasurer and such other duties as from time to time
may be assigned to him or her by the Board of Directors, the Chair of the Board, the Vice Chair of the Board or the President.

    12

     

    

Section
7.10 Secretary. The
Secretary shall, in general, perform all duties incident to the office of Secretary and such other duties as from time to time
may be assigned to him or her by the Board of Directors, the Chair of the Board, the Vice Chair of the Board or the President.
In the absence of the Secretary at any meeting of the Board of Directors, a committee of the Board of Directors or the Members,
the person presiding at the meeting shall designate a temporary secretary to keep a record of the meeting.

 

Section
7.11 Assistant Treasurer. The
Assistant Treasurer, or if there shall be more than one, the Assistant Treasurers in the order determined by the Board of Directors
(or if there be no such determination, then in the order of their election), shall, in the absence of the Treasurer or in the
event of his or her inability or refusal to act, perform the duties and exercise the powers of the Treasurer and shall perform
such other duties as from time to time may be assigned by the Board of Directors, the Chair of the Board, the Vice Chair of the
Board, the President or the Treasurer.

 

Section
7.12 Assistant Secretary. The
Assistant Secretary, or if there shall be more than one, the Assistant Secretaries in the order determined by the Board of Directors
(or if there be no such determination, then in the order of their election), shall, in the absence of the Secretary or in the
event of his or her inability or refusal to act, perform the duties and exercise the powers of the Secretary and shall perform
such other duties as from time to time may be assigned by the Board of Directors, the Chair of the Board, the Vice Chair of the
Board, the President or the Secretary.

 

Section
7.13 Officers as Agents. The
Officers, to the extent of their powers set forth in this LLC Agreement or otherwise vested in them by action of the Board, are
agents of the Company for the purpose of the Company’s business, and the actions of the Officers taken in accordance with
such powers shall bind the Company.

 

Article
VIII

ALLOCATIONS

 

Section
8.1 Profits and Losses.

 

(i)
Subject to the allocation rules of Section 8.2 hereof, Profits for any Fiscal Year shall be allocated among the Members
in proportion to their Percentage Interests.

 

(ii)
Subject to the allocation rules of Section 8.2 hereof, Losses for any Fiscal Year shall be allocated among the Members
in proportion to their Percentage Interests.

 

Section
8.2 Allocation
Rules.

 

(i)
For purposes of determining the Profits, Losses or any other items allocable to any period, Profits, Losses and any such other
items shall be determined on a daily, monthly or other basis, as determined by the Members using any method that is permissible
under § 706 of the Code and the Treasury Regulations thereunder.

    13

     

    

(ii)
Except as otherwise provided in this LLC Agreement, all items of Company income, gain, loss, deduction and any other allocations
not otherwise provided for shall be divided among the Members in the same proportions as they share Profits and Losses for the
Fiscal Year in question.

 

(iii)
The Members are aware of the income tax consequences of the allocations made by this Article VIII and hereby agree to be bound
by the provisions of this Article VIII in reporting their shares of Company income and loss for income tax purpose.

 

(iv)
The Members intend that the allocation provisions set forth in this LLC Agreement are intended to comply with § 704(b) of
the Code and the Treasury Regulations issued thereunder and the provisions are to be interpreted in a manner consistent with those
Treasury Regulations.

 

Section
8.3 Tax Allocations; Section 704(c) of the
Code. In accordance with § 704(c) of the Code and the Treasury Regulations thereunder,
income, gain, loss and deduction with respect to any property contributed to the capital of the Company shall, solely for income
tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such property
to the Company for federal income tax purposes and its initial fair market value.

 

Article
IX

DISTRIBUTIONS

 

Section
9.1 Net Cash Flow. Except
as otherwise provided in Article XIV hereof (relating to the dissolution of the Company), any distribution of the Net Cash
Flow during any Fiscal Year shall be made to the Members in proportion to their Percentage Interests.

 

Section
9.2 Distribution Rules. All
distributions pursuant to Section 9.1 hereof shall be at such times and in such amounts as shall be determined by the Board;
provided, however, that subject to Section 9.3, the Members shall receive an annual distribution, at least equal to the
amount of their respective tax liability in connection with the Company K-1, calculated at the highest federal income tax rate
in effect at the time of such calculation and grossed up for tax on the amount of the distribution, if any.

 

Section
9.3 Limitations on Distribution.
Notwithstanding any provision to the contrary contained in this LLC Agreement, the Company, and the Board on behalf of the
Company, shall not make a distribution to any Member on account of its interest in the Company if such distribution would
violate applicable Law.

    14

     

    

Article
X

BOOKS AND RECORDS

 

Section
10.1 Books,
Records and Financial Statements.

 

(i)
At all times during the continuance of the Company, the Company shall maintain, at its principal place of business, separate books
of account for the Company that shall show a true and accurate record of all costs and expenses incurred, all charges made, all
credits made and received and all income derived in connection with the operation of the Company business in accordance with generally
accepted accounting principles consistently applied, and, to the extent inconsistent therewith, in accordance with this LLC Agreement.
Such books of account, together with a copy of this LLC Agreement and of the Certificate, shall at all times be maintained at
the principal place of business of the Company and shall be open to inspection and examination at reasonable times by each Member
and its duly authorized representative for any purpose reasonably related to such Member’s interest in the Company.

 

(ii)
The Company, and the Board on behalf of the Company, shall prepare and maintain, or cause to be prepared and maintained, the books
of account of the Company. The Company, and the Board on behalf of the Company, shall prepare and file, or cause to be prepared
and filed, all applicable federal and state tax returns.

 

Article
XI

TAX MATTERS

 

Section
11.1 Taxation as a Disregarded
Entity. Laredo is the sole Member of the Company, and the Company has not made and will not make the election permitted
to be made under Treasury Regulation § 301.7701-3(c). Accordingly, the Company is classified as a “disregarded
entity” for Federal income tax purposes under Treasury Regulation § 301.7701-3(b)(1), and no action which would
change or adversely affect that classification shall be taken without the written consent of Laredo.

 

Article
XII

LIABILITY, EXCULPATION AND INDEMNIFICATION

 

Section
12.1 Liability. Except
as otherwise provided by the Montana Act, the debts, obligations and liabilities of the Company, whether arising in contract,
tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Member or Manager shall be obligated
personally for any such debt, obligation or liability of the Company solely by reason of being a Member or Manager.

 

Section
12.2 Exculpation.

 

(i)
No Covered Person shall be liable to the Company or any other Covered Person for any loss, damage or claim incurred by reason
of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably
believed to be within the scope of authority conferred on such Covered Person by this LLC Agreement, except that a Covered Person
shall be liable for any such loss, damage or claim incurred by reason of such Covered Person’s gross negligence or willful
misconduct.

    15

     

    

(ii)
A Covered Person shall be fully protected in relying in good faith upon the records of the Company and such information, opinions,
reports or statements presented to the Company by any Person as to matters the Covered Person reasonably believes are within such
other Person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Company,
including information, opinions, reports or statements as to the value and amount of the assets, liabilities, Profits, Losses
or Net Cash Flow or any other facts pertinent to the existence and amount of assets from which distributions to Members might
properly be paid.

 

Section
12.3 Fiduciary Duty. To the extent that,
at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto to the Company
or to any other Covered Person, a Covered Person acting under this LLC Agreement shall not be liable to the Company or to any
Member for its good faith reliance on the provisions of this LLC Agreement. The provisions of this LLC Agreement, to the extent
that they restrict the duties and liabilities of a Covered Person otherwise existing at law or in equity, are agreed by the parties
hereto to replace such other duties and liabilities of such Covered Person.

 

Section
12.4 Indemnification. To
the fullest extent permitted by applicable law, a Covered Person shall be entitled to indemnification from the Company for any
loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person
in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of authority conferred on such
Covered Person by this LLC Agreement, except that no Covered Person shall be entitled to be indemnified in respect of any loss,
damage or claim incurred by such Covered Person by reason of gross negligence or willful misconduct with respect to such acts
or omissions; provided, however, that any indemnity under this Section 12.4 shall be provided out of and to the
extent of Company assets only, and no Covered Person shall have any personal liability with respect to such indemnity.

 

Section
12.5 Expenses. To
the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a Covered Person in defending any
claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition
of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered
Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized
in Section 12.4 hereof.

 

Section
12.6 Insurance. The
Company may purchase and maintain insurance, to the extent and in such amounts as the Board shall, in its sole discretion, deem
reasonable, on behalf of Covered Persons and such other Persons as the Board shall determine, against any liability that may be
asserted against or expenses that may be incurred by any such Person in connection with the activities of the Company or such
indemnities, regardless of whether the Company would have the power to indemnify such Person against such liability under the
provisions of this LLC Agreement. The Company may enter into indemnity contracts with Covered Persons and such other Persons as
the Board shall determine and adopt written procedures pursuant to which arrangements are made for the advancement of expenses
and the funding of obligations under Section 12.5 hereof and containing such other procedures regarding indemnification as are
appropriate.

    16

     

    

Section
12.7 Outside Businesses. Any
Member or Affiliate thereof may engage in or possess an interest in other business ventures of any nature or description, independently
or with others, similar or dissimilar to the business of the Company, and the Company and the Members shall have no rights by
virtue of this LLC Agreement in and to such independent ventures or the income or profits derived therefrom, and the pursuit of
any such venture, even if competitive with the business of the Company, shall not be deemed wrongful or improper. No Member or
Affiliate thereof shall be obligated to present any particular investment opportunity to the Company even if such opportunity
is of a character that, if presented to the Company, could be taken by the Company, and any Member or Affiliate thereof shall
have the right to take for its own account (individually or as a partner or fiduciary) or to recommend to others any such particular
investment opportunity.

 

Article
XIII

ADDITIONAL MEMBERS

 

Section
13.1 Admission. By
approval of a Majority, the Company is authorized to admit any Person as an additional member of the Company (each, an “Additional
Member” and collectively, the “Additional Members”). Each such Person shall be admitted as an Additional Member
at the time such Person (i) executes this LLC Agreement or a counterpart of this LLC Agreement and (ii) is named as a Member on
Schedule A hereto. The legal fees and expenses associated with such admission shall be borne by the Company.

 

Section
13.2 Allocations. Additional
Members shall not be entitled to any retroactive allocation of the Company’s income, gains, losses, deductions, credits or
other items; provided that, subject to the restrictions of § 706(d) of the Code, Additional Members shall be entitled
to their respective share of the Company’s income, gains, losses, deductions, credits and other items arising under contracts
entered into before the effective date of the admission of any Additional Members to the extent that such income, gains, losses,
deductions, credits and other items arise after such effective date. To the extent consistent with § 706(d) of the Code and
Treasury Regulations promulgated thereunder, the Company’s books may be closed at the time Additional Members are admitted
(as though the Company’s tax year had ended) or the Company may credit to the Additional Members pro rata allocations
of the Company’s income, gains, losses, deductions, credits and items for that portion of the Company’s Fiscal Year
after the effective date of the admission of the Additional Members.

    17

     

    

Article
XIV

DISSOLUTION, LIQUIDATION AND TERMINATION

 

Section
14.1 No Dissolution. The
Company shall not be dissolved by the admission of Additional Members or substitute Members in accordance with the terms of this
LLC Agreement.

 

Section
14.2 Events Causing Dissolution. The
Company shall be dissolved and its affairs shall be wound up upon the occurrence of any of the following events:

 

(i)
the written consent of all Members;

 

(ii)
the death, retirement, resignation, expulsion, bankruptcy or dissolution of a Member or the occurrence of any other event under
the Montana Act that terminates the continued membership of a Member in the Company unless, within ninety (90) days after the
occurrence of such an event, all of the remaining Members agree in writing to continue the business of the Company; or

 

(iii)
the entry of a decree of judicial dissolution of the Company under the Montana Act.

 

Section
14.3 Liquidation. Upon
dissolution of the Company, the Board shall carry out the winding up of the Company and shall immediately commence to wind up
the Company’s affairs; provided, however, that a reasonable time shall be allowed for the orderly liquidation of the
assets of the Company and the satisfaction of liabilities to creditors so as to enable the Members to minimize the normal losses
attendant upon a liquidation. The Members shall continue to share Profits and Losses during liquidation in the same proportions,
as specified in Article VIII hereof, as before liquidation. The proceeds of liquidation shall be distributed in the following
order and priority:

 

(i)
to creditors of the Company, including Members who are creditors, to the extent otherwise permitted by law, in satisfaction of
the liabilities of the Company (whether by payment or the making of reasonable provision for payment thereof); and

 

(ii)
to the Members in accordance with their Capital Account balances, after giving effect to all contributions, distributions and
allocations for all periods.

 

Section
14.4 Termination. The
Company shall terminate when all of the assets of the Company, after payment of or due provision for all debts, liabilities and
obligations of the Company, shall have been distributed to the Members in the manner provided for in this Article XIV and
the Certificate shall have been canceled in the manner required by the Montana Act.

 

Section
14.5 Claims of the Members. The
Members and former Members shall look solely to the Company’s assets for the return of their Capital Contributions, and if
the assets of the Company remaining after payment of or due provision for all debts, liabilities and obligations of the Company
are insufficient to return such Capital Contributions, the Members and former Members shall have no recourse against the Company
or any other Member.

    18

     

    

Article
XV

MISCELLANEOUS

 

Section
15.1 Notices. All
notices provided for in this LLC Agreement shall be in writing, duly signed by the party giving such notice, and shall be delivered,
mailed via an overnight courier service, telecopied or mailed by registered or certified mail, as follows:

 

(i)
if given to the Company, at the following address: 231 Snookum Road, P.O. Box 953, Lakeside, MT 59922;

 

(ii)
if given to a Director, at such Director’s mailing address as provided to the Company; or

 

(iii)
if given to any Member, at the address set forth opposite its name on Schedule A attached hereto, or at such other address
as such Member may hereafter designate by written notice to the Company.

 

All
such notices shall be deemed to have been given when received.

 

Section
15.2 Failure to Pursue Remedies. The
failure of any party to seek redress for violation of, or to insist upon the strict performance of, any provision of this LLC
Agreement shall not prevent a subsequent act, which would have originally constituted a violation, from having the effect of an
original violation.

 

Section
15.3 Cumulative Remedies. The
rights and remedies provided by this LLC Agreement are cumulative and the use of any one right or remedy by any party shall not
preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights
the parties may have by Law or otherwise.

 

Section
15.4 Binding Effect. This
LLC Agreement shall be binding upon and inure to the benefit of all of the parties and, to the extent permitted by this LLC Agreement,
their successors, legal representatives and assigns.

 

Section
15.5 Interpretation. Throughout
this LLC Agreement, nouns, pronouns and verbs shall be construed as masculine, feminine, neuter, singular or plural, whichever
shall be applicable. All references herein to “Articles,” “Sections” and “Paragraphs” shall refer
to corresponding provisions of this LLC Agreement.

 

Section
15.6 Severability. The
invalidity or unenforceability of any particular provision of this LLC Agreement shall not affect the other provisions hereof,
and this LLC Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted.

 

Section
15.7 Counterparts. This
LLC Agreement may be executed in any number of counterparts with the same effect as if all parties hereto had signed the same
document. All counterparts shall be construed together and shall constitute one instrument.

    19

     

    

Section
15.8 Integration. This
LLC Agreement constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes
all prior agreements and understandings pertaining thereto.

 

Section
15.9 Governing Law. This
LLC Agreement and the rights of the parties hereunder shall be interpreted in accordance with the laws of the State of Montana,
and all rights and remedies shall be governed by such laws without regard to principles of conflict of laws.

 

Section
15.10 Amendments. Any
amendment to this LLC Agreement shall be adopted and be effective as an amendment hereto if it received the affirmative vote of
all of the Members, provided that such amendment be in writing and executed by all of the Members.

 

Section
15.11 No Implied Rights or Remedies. Nothing
expressed or implied shall be construed to confer upon any Person, except the Members and Managers, any rights or remedies under
or by reason of this LLC Agreement.

    20

     

    

IN
WITNESS WHEREOF, the undersigned has executed and delivered this LLC Agreement as of the date first above stated.

 

	 	MEMBERS:	 
	 	 	 
	 	LAREDO OIL, INC.	 
	 	 	 
	 	By:	/s/ Mark See	 
	 	Name:	Mark See	 
	 	Title:	President and CEO	 
	 	 	 	 
	 	LIPSON INVESTMENTS LLC	 
	 	 	 
	 	By:	/s/ Kenneth Lipson	 
	 	Name: 	Kenneth Lipson	 
	 	Title:	Managing Member	 
	 	 	 	 
	 	VIPER OIL & GAS, LLC	 
	 	 	 
	 	By:	/s/ Curt Thurmon	 
	 	Name:	Curt Thurmon	 
	 	Title:	Managing Member	 

     

     

    

Schedule
A

 

SCHEDULE
OF MEMBERSHIP INTERESTS

 

	Name
    and Address	Percentage

    Interest	Initial
    Capital

    Contribution
	Laredo
Oil, Inc.

P.O. Box 953

231 Snookum Road

Lakeside, MT 59922
	50%	$448,900
	Lipson
    Investments LLC

    75 27th Ave

    San Francisco, CA 94121	25%	$224,450
	Viper
    Oil & Gas, LLC

    830 Havens Road

    Shreveport, LA 71107	25%	$224,450

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