Document:

Exhibit 10.4

 

 

 

NEFF HOLDINGS LLC

 

SECOND AMENDED AND RESTATED
 LIMITED LIABILITY COMPANY AGREEMENT

 

Dated as of [·], 2014

 

 

THE COMPANY INTERESTS REPRESENTED BY THIS SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS. SUCH COMPANY INTERESTS MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED OF AT ANY TIME WITHOUT EFFECTIVE REGISTRATION UNDER SUCH ACT AND LAWS OR EXEMPTION THEREFROM, AND COMPLIANCE WITH THE OTHER SUBSTANTIAL RESTRICTIONS ON TRANSFERABILITY SET FORTH HEREIN.

 

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Article I. DEFINITIONS
    	
2
    
	
 
    	
 
    
	
Article II. ORGANIZATIONAL   MATTERS
    	
13
    
	
 
    	
 
    
	
Section 2.01
    	
Formation of Company
    	
13
    
	
Section 2.02
    	
Second Amended and Restated Limited Liability Company   Agreement
    	
13
    
	
Section 2.03
    	
Name
    	
14
    
	
Section 2.04
    	
Purpose
    	
14
    
	
Section 2.05
    	
Principal Office; Registered Office
    	
14
    
	
Section 2.06
    	
Term
    	
14
    
	
Section 2.07
    	
No State-Law Partnership
    	
14
    
	
 
    	
 
    	
 
    
	
Article III. MEMBERS; UNITS;   CAPITALIZATION
    	
14
    
	
 
    	
 
    
	
Section 3.01
    	
Members
    	
14
    
	
Section 3.02
    	
Units
    	
15
    
	
Section 3.03
    	
Recapitalization and Split; the Corporation’s Capital   Contribution; the Corporation’s Purchase of Common Units; Redemptions
    	
16
    
	
Section 3.04
    	
Authorization and Issuance of Additional Units
    	
16
    
	
Section 3.05
    	
Repurchase or Redemption of shares of Class A Common Stock
    	
17
    
	
Section 3.06
    	
Certificates Representing Units; Lost, Stolen or Destroyed   Certificates; Registration and Transfer of Units
    	
17
    
	
Section 3.07
    	
Negative Capital Accounts
    	
18
    
	
Section 3.08
    	
No Withdrawal
    	
18
    
	
Section 3.09
    	
Loans From Members
    	
18
    
	
Section 3.10
    	
LLC Option Exercises
    	
18
    
	
Section 3.11
    	
Corporate Stock Option Plans
    	
19
    
	
Section 3.12
    	
Dividend Reinvestment Plan, Cash Option Purchase Plan, Stock   Incentive Plan or Other Plan
    	
21
    
	
 
    	
 
    	
 
    
	
Article IV. DISTRIBUTIONS
    	
21
    
	
 
    	
 
    
	
Section 4.01
    	
Distributions
    	
21
    
	
Section 4.02
    	
Restricted Distributions
    	
23
    
	
 
    	
 
    	
 
    
	
Article V. CAPITAL ACCOUNTS;   ALLOCATIONS; TAX MATTERS
    	
23
    
	
 
    	
 
    
	
Section 5.01
    	
Capital Accounts
    	
23
    
	
Section 5.02
    	
Allocations
    	
24
    
	
Section 5.03
    	
Regulatory Allocations
    	
24
    
	
Section 5.04
    	
Final Allocations
    	
26
    
	
Section 5.05
    	
Tax Allocations
    	
26
    

 

 

	
Section 5.06
    	
Indemnification and Reimbursement for Payments on Behalf of   a Member
    	
26
    
	
 
    	
 
    	
 
    
	
Article VI. MANAGEMENT
    	
27
    
	
 
    	
 
    
	
Section 6.01
    	
Authority of Manager
    	
27
    
	
Section 6.02
    	
Actions of the Manager
    	
28
    
	
Section 6.03
    	
Resignation
    	
28
    
	
Section 6.04
    	
Removal
    	
28
    
	
Section 6.05
    	
Vacancies
    	
28
    
	
Section 6.06
    	
Transactions Between Company and Manager
    	
28
    
	
Section 6.07
    	
Reimbursement for Expenses
    	
28
    
	
Section 6.08
    	
Delegation of Authority
    	
29
    
	
Section 6.09
    	
Limitation of Liability of Manager
    	
29
    
	
Section 6.10
    	
Investment Company Act
    	
30
    
	
Section 6.11
    	
Outside Activities of the Manager
    	
30
    
	
 
    	
 
    	
 
    
	
Article VII. RIGHTS AND   OBLIGATIONS OF MEMBERS
    	
31
    
	
 
    	
 
    
	
Section 7.01
    	
Limitation of Liability and Duties of Members
    	
31
    
	
Section 7.02
    	
Lack of Authority
    	
32
    
	
Section 7.03
    	
No Right of Partition
    	
32
    
	
Section 7.04
    	
Indemnification
    	
32
    
	
Section 7.05
    	
Members Right to Act
    	
33
    
	
Section 7.06
    	
Inspection Rights
    	
34
    
	
 
    	
 
    	
 
    
	
Article VIII. BOOKS, RECORDS,   ACCOUNTING AND REPORTS, AFFIRMATIVE COVENANTS
    	
34
    
	
 
    	
 
    
	
Section 8.01
    	
Records and Accounting
    	
34
    
	
Section 8.02
    	
Fiscal Year
    	
34
    
	
Section 8.03
    	
Reports
    	
34
    
	
 
    	
 
    	
 
    
	
Article IX. TAX MATTERS
    	
35
    
	
 
    	
 
    
	
Section 9.01
    	
Preparation of Tax Returns
    	
35
    
	
Section 9.02
    	
Tax Elections
    	
35
    
	
Section 9.03
    	
Tax Controversies
    	
35
    
	
 
    	
 
    	
 
    
	
Article X. RESTRICTIONS ON   TRANSFER OF UNITS; PREEMPTIVE RIGHTS
    	
36
    
	
 
    	
 
    
	
Section 10.01
    	
Transfers by Members
    	
36
    
	
Section 10.02
    	
Permitted Transfers
    	
36
    
	
Section 10.03
    	
Restricted Units Legend
    	
36
    
	
Section 10.04
    	
Transfer
    	
37
    
	
Section 10.05
    	
Assignee’s Rights
    	
37
    
	
Section 10.06
    	
Assignor’s Rights and Obligations
    	
38
    
	
Section 10.07
    	
Overriding Provisions
    	
38
    

 

iii

 

	
Article XI. REDEMPTION AND   EXCHANGE RIGHTS
    	
39
    
	
 
    	
 
    
	
Section 11.01
    	
Redemption Right of a Member and LLC Optionee
    	
39
    
	
Section 11.02
    	
Election and Contribution of the Corporation
    	
41
    
	
Section 11.03
    	
Exchange Right of the Corporation
    	
42
    
	
Section 11.04
    	
Reservation of shares of Class A Common Stock; Listing;   Certificate of the Corporation
    	
42
    
	
Section 11.05
    	
Effect of Exercise of Redemption or Exchange Right
    	
43
    
	
Section 11.06
    	
Tax Treatment
    	
43
    
	
 
    	
 
    	
 
    
	
Article XII. ADMISSION OF MEMBERS
    	
43
    
	
 
    	
 
    
	
Section 12.01
    	
Substituted Members
    	
43
    
	
Section 12.02
    	
Additional Members
    	
43
    
	
 
    	
 
    	
 
    
	
Article XIII. WITHDRAWAL AND   RESIGNATION; TERMINATION OF RIGHTS
    	
44
    
	
 
    	
 
    
	
Section 13.01
    	
Withdrawal and Resignation of Members
    	
44
    
	
Section 13.02
    	
Termination of Rights of LLC Optionees
    	
44
    
	
 
    	
 
    	
 
    
	
Article XIV. DISSOLUTION AND   LIQUIDATION
    	
44
    
	
 
    	
 
    
	
Section 14.01
    	
Dissolution
    	
44
    
	
Section 14.02
    	
Liquidation and Termination
    	
45
    
	
Section 14.03
    	
Deferment; Distribution in Kind
    	
45
    
	
Section 14.04
    	
Cancellation of Certificate
    	
46
    
	
Section 14.05
    	
Reasonable Time for Winding Up
    	
46
    
	
Section 14.06
    	
Return of Capital
    	
46
    
	
 
    	
 
    	
 
    
	
Article XV. VALUATION
    	
46
    
	
 
    	
 
    
	
Section 15.01
    	
Determination
    	
46
    
	
Section 15.02
    	
Dispute Resolution
    	
46
    
	
 
    	
 
    	
 
    
	
Article XVI. GENERAL PROVISIONS
    	
47
    
	
 
    	
 
    
	
Section 16.01
    	
Power of Attorney
    	
47
    
	
Section 16.02
    	
Confidentiality
    	
47
    
	
Section 16.03
    	
Amendments
    	
48
    
	
Section 16.04
    	
Title to Company Assets
    	
48
    
	
Section 16.05
    	
Addresses and Notices
    	
48
    
	
Section 16.06
    	
Binding Effect; Intended Beneficiaries
    	
49
    
	
Section 16.07
    	
Creditors
    	
49
    
	
Section 16.08
    	
Waiver
    	
49
    
	
Section 16.09
    	
Counterparts
    	
49
    
	
Section 16.10
    	
Applicable Law
    	
50
    
	
Section 16.11
    	
Severability
    	
50
    
	
Section 16.12
    	
Further Action
    	
50
    

 

iv

 

	
Section 16.13
    	
Delivery by Electronic Transmission
    	
50
    
	
Section 16.14
    	
Right of Offset
    	
50
    
	
Section 16.15
    	
Effectiveness
    	
50
    
	
Section 16.16
    	
Entire Agreement
    	
50
    
	
Section 16.17
    	
Remedies
    	
51
    
	
Section 16.18
    	
Descriptive Headings; Interpretation
    	
51
    

 

Schedules

 

	
Schedule   1
    	
—
    	
Schedule   of Members
    
	
Schedule   2
    	
—
    	
Schedule   of LLC Optionees
    

 

Exhibits

 

	
Exhibit   A
    	
—
    	
Form   of Joinder Agreement
    

 

v

 

NEFF HOLDINGS LLC

 

SECOND AMENDED AND RESTATED
 LIMITED LIABILITY COMPANY AGREEMENT

 

This SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”), dated as of [·], 2014, is entered into by and among Neff Holdings LLC, a Delaware limited liability company (the “Company”), and its Members (as defined herein).

 

WHEREAS, the Company initially was formed as a limited liability company with the name “Reorganized Neff, L.L.C.”, pursuant to and in accordance with the Delaware Act (as defined herein) by the filing of the Certificate (as defined herein) with the Secretary of State of the State of Delaware pursuant to Section 18-201 of the Delaware Act on May 12, 2010;

 

WHEREAS, the Company entered into a Limited Liability Company Agreement of the Company, dated as of September 22, 2010 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time to but excluding October 1, 2010, together with all schedules, exhibits and annexes thereto, the “Initial LLC Agreement”), with the members of the Company party thereto;

 

WHEREAS, the Company entered into an Amended and Restated Limited Liability Company Agreement, dated as of October 1, 2010 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time to but excluding the date hereof, together with all schedules, exhibits and annexes thereto, the “First A&R LLC Agreement”), with Wayzata Opportunities Fund II, L.P., a Delaware limited partnership (“Wayzata”), and Wayzata Opportunities Fund Offshore II, L.P., a Cayman Islands limited partnership (“Wayzata Offshore”), as members (collectively, the “Original Members”) holding Class A Units (as defined Section 5.1 of the First A&R LLC Agreement, the “Original Class A Units”) of the Company;

 

WHEREAS, prior to the date hereof the Company has granted certain options (the “Original LLC Options”) under the Original Management Equity Plan (as defined herein) to those members of the Company’s management and independent, non-executive members of the board of directors of the Company identified on Schedule 2 hereto (collectively, the “Original LLC Optionees”), pursuant to which each Original LLC Optionee is entitled to purchase that number of Class B Units (as defined in Section 5.1 of the First A&R LLC Agreement, the “Original Class B Units”) of the Company set forth opposite such Person’s name on Schedule 2 hereto under the column labeled “Original LLC Options” at an exercise price of $10.82 per Original Class B Unit;

 

WHEREAS, the Company, the Original Members and the Original LLC Optionees desire to have Neff Corporation, a Delaware corporation (the “Corporation”), effect an initial public offering (the “IPO”) of shares of its Class A common stock, par value $0.01 (the “Class A Common Stock”), and in connection therewith, to amend and restate the First A&R LLC

 

 

Agreement to reflect (a) a recapitalization of the Company and the associated split in the number of Units (as defined herein) then outstanding (the “Recapitalization”), (b) the addition of the Corporation as a Member in the Company and its designation as sole Manager (as defined herein) of the Company, and (c) the rights and obligations of the Members (as defined herein) of the Company which are enumerated and agreed upon in the terms of this Agreement effective as of the Effective Time (as defined herein), pursuant to which the First A&R LLC Agreement shall be superseded entirely by this Agreement;

 

WHEREAS, in connection with the Recapitalization, (a) the Original Class A Units of each Original Member will be converted into Common Units (as defined herein) and (b) the Original Class B Units underlying the Original LLC Options will be converted into Common Units underlying the LLC Options (as defined herein);

 

WHEREAS, exclusive of the Over-Allotment Option (as defined below), the Corporation will sell shares of its Class A Common Stock to public investors in the IPO and will use a portion of the net proceeds received from the IPO (the “IPO Primary Net Proceeds”) to purchase newly issued Common Units from the Company pursuant to the IPO Common Unit Purchase Agreement (as defined herein) and will use a portion of the net proceeds received from the IPO (the “IPO Secondary Net Proceeds”) to purchase existing Common Units from the Original Members pursuant to the IPO Common Unit Purchase Agreement; and

 

WHEREAS, the Corporation may issue additional shares of Class A Common Stock in connection with the IPO as a result of the exercise by the underwriters of their over-allotment option (the “Over-Allotment Option”) and, if the Over-Allotment Option is in fact exercised in whole or in part, any additional net proceeds (the “Over-Allotment Option Net Proceeds”) shall be used by the Corporation to purchase additional newly issued Common Units from the Company pursuant to the IPO Common Unit Purchase Agreement;

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Members, intending to be legally bound, hereby agree as follows:

 

ARTICLE I.
 DEFINITIONS

 

The following definitions shall be applied to the terms used in this Agreement for all purposes, unless otherwise clearly indicated to the contrary.

 

“ABL Credit Agreement” means that certain Amended and Restated Senior Secured Credit Agreement, dated as of October 1, 2010 (as amended and restated as of November 20, 2013), by and among the Company, as holdings, Neff LLC, as parent borrower, the subsidiaries of Neff LLC from time to time signatory thereto, as additional credit parties, the several lenders from time to time party thereto, and Bank of America, N.A., as administrative agent and collateral agent for the lenders, as swing line lender and as the issuing bank for letters of credit, including all exhibits, schedules and attachments thereto, as such ABL Credit Agreement is in effect as of the date hereof and as the same may be amended, restated, amended and restated,

 

2

 

supplemented or otherwise modified from time to time and including any one or more refinancings or replacements thereof, in whole or in part, with any other debt facility or debt obligation.

 

“Additional Member” has the meaning set forth in Section 12.02.

 

“Adjusted Capital Account Deficit” means with respect to the Capital Account of any Member as of the end of any Taxable Year, the amount by which the balance in such Capital Account is less than zero.  For this purpose, such Member’s Capital Account balance shall be:

 

(a)                                 reduced for any items described in Treasury Regulation Section 1.704- 1(b)(2)(ii)(d)(4), (5), and (6); and

 

(b)                                 increased for any amount such Member is obligated to contribute or is treated as being obligated to contribute to the Company pursuant to Treasury Regulation Section 1.704-1(b)(2)(ii)(c) (relating to partner liabilities to a partnership) or 1.704-2(g)(1) and 1.704-2(i) (relating to minimum gain).

 

“Admission Date” has the meaning set forth in Section 10.06.

 

“Affiliate” (and, with a correlative meaning, “Affiliated”) means, with respect to a specified Person, each other Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the Person specified.  As used in this definition and the definition of Majority Member, “control” (including with correlative meanings, “controlled by” and “under common control with”) means possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of voting securities or by contract or other agreement).

 

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

 

“Appraisers” has the meaning set forth in Section 15.02.

 

“Assignee” means a Person to whom a Company Interest has been transferred but who has not become a Member pursuant to Article XII.

 

“Assumed Tax Liability” means, with respect to a Member, an amount equal to the Distribution Tax Rate multiplied by the estimated or actual taxable income of the Company, as determined for federal income tax purposes, allocated to such Member pursuant to Section 5.05 for the period to which the Assumed Tax Liability relates, less prior losses of the Company,  as determined for federal income tax purposes, allocated to such Member pursuant to Section 5.05 to the extent not previously taken into account in determining the Assumed Tax Liability of such Member, as determined by the Manager; provided that, in the case of the Corporation, such Assumed Tax Liability (i) shall be computed without regard to any increases to the tax basis of the Company’s property pursuant to Section 743(b) of the Code and (ii) shall in no event be less than an amount that will enable the Corporation to meet its tax obligations, including its obligations pursuant to the Tax Receivable Agreement.

 

3

 

“Base Rate” means, on any date, a variable rate per annum equal to the rate of interest most recently published by The Wall Street Journal as the “prime rate” at large U.S. money center banks.

 

“Black-Out Period” means any “black-out” or similar period under the Corporation’s policies covering trading in the Corporation’s securities to which the applicable Redeeming Member is subject, which period restricts the ability of such Redeeming Member to immediately resell shares of Class A Common Stock to be delivered to such Redeeming Member in connection with a Share Settlement.

 

“Book Value” means, with respect to any Company property, the Company’s adjusted basis for U.S. federal income tax purposes, adjusted from time to time to reflect the adjustments required or permitted by Treasury Regulation Section 1.704-1(b)(2)(iv)(d)-(g).

 

“Business Day” means any day other than a Saturday or a Sunday or a day on which banks located in New York City, New York generally are authorized or required by Law to close.

 

“Capital Account” means the capital account maintained for a Member in accordance with Section 5.01.

 

“Capital Contribution” means, with respect to any Member, the amount of any cash, cash equivalents, promissory obligations or the Fair Market Value of other property that such Member contributes (or is deemed to contribute) to the Company pursuant to Article III hereof.

 

“Cash Settlement” means immediately available funds in U.S. dollars in an amount equal to the Redeemed Units Equivalent.

 

“Certificate” means the Company’s Certificate of Formation as filed with the Secretary of State of Delaware.

 

“Change of Control Transaction” means (a) a sale of all or substantially all of the Company’s assets determined on a consolidated basis, (b) a sale of a majority of the Company’s outstanding Units (other than (i) to the Corporation or (ii) in connection with a Redemption or Exchange in accordance with Article XI) or (c) a sale of a majority of the outstanding voting securities of any Material Subsidiary of the Company; in any such case, whether by merger, recapitalization, consolidation, reorganization, combination or otherwise; provided, however, that none of (x) a transaction solely for the purpose of changing the jurisdiction of domicile of the Company, (y) a transaction solely for the purpose of changing the form of entity of the Company or (z) a sale of a majority of the outstanding shares of Class A Common Stock (whether by merger, recapitalization, consolidation, reorganization, combination or otherwise), shall constitute a Change of Control Transaction.

 

“Class A Common Stock” has the meaning set forth in the recitals to this Agreement.

 

“Class B Common Stock” means the Class B Common Stock, par value $0.01 per share, of the Corporation.

 

4

 

“Code” means the United States Internal Revenue Code of 1986, as amended.

 

“Common Unit” means a Unit representing a fractional part of the Company Interests of the Members and having the rights and obligations specified with respect to the Common Units in this Agreement.

 

“Common Unit Redemption Price” means the arithmetic average of the volume weighted average prices for a share of Class A Common Stock on the principal U.S. securities exchange or automated or electronic quotation system on which the Class A Common Stock trades, as reported by Bloomberg, L.P., or its successor, for each of the five (5) consecutive full Trading Days ending on and including the last full Trading Day immediately prior to the Redemption Date, subject to appropriate and equitable adjustment for any stock splits, reverse splits, stock dividends or similar events affecting the Class A Common Stock.  If the Class A Common Stock no longer trades on a securities exchange or automated or electronic quotation system, then a majority of the Independent Directors shall determine the Common Unit Redemption Price in good faith.

 

“Common Unitholder” means a Member who is the registered holder of Common Units.

 

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

 

“Company Interest” means the interest of a Member in Profits, Losses and Distributions.

 

“Contribution Notice” has the meaning set forth in Section 11.01(b).

 

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

 

“Corporate Omnibus Incentive Plan” means the Neff Corporation 2014 Omnibus Incentive Plan, as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time.

 

“Corporation” has the meaning set forth in the recitals to this Agreement, together with its successors and assigns.

 

“Credit Agreements” means, collectively, the ABL Credit Agreement and the Second Lien Credit Agreement.

 

“Delaware Act” means the Delaware Limited Liability Company Act, 6 Del.L. § 18-101, et seq., as it may be amended from time to time, and any successor thereto.

 

“Distributable Cash” shall mean, as of any relevant date on which a determination is being made by the Manager regarding a potential distribution pursuant to Section 4.01(a), the amount of cash that could be distributed by the Company for such purposes in accordance with the Credit Agreements (and without otherwise violating any applicable provisions of the Credit Agreements).

 

“Distribution” (and, with a correlative meaning, “Distribute”) means each distribution made by the Company to a Member with respect to such Member’s Units, whether in cash,

 

5

 

property or securities of the Company and whether by liquidating distribution or otherwise; provided, however, that none of the following shall be a Distribution: (a) any recapitalization that does not result in the distribution of cash or property to Members or any exchange of securities of the Company, and any subdivision (by Unit split or otherwise) or any combination (by reverse Unit split or otherwise) of any outstanding Units or (b) any other payment made by the Company to a Member that is not properly treated as a “distribution” for purposes of Sections 731, 732, or 733 or other applicable provisions of the Code.

 

“Distribution Tax Rate” shall mean a rate equal to the highest effective marginal combined federal, state and local income tax rate for a Fiscal Year applicable to corporate or individual taxpayers resident in New York City, New York, taking in to account the character of the relevant tax items (e.g., ordinary or capital) and the deductibility of state and local income taxes for federal income tax purposes, as determined in the reasonable discretion of the Manager.

 

“Effective Time” has the meaning set forth in Section 16.15.

 

“Equity Plan” means any stock or equity purchase plan, restricted stock or equity plan or other similar equity compensation plan now or hereafter adopted by the Company or the Corporation.

 

“Equity Securities” means (a) Units or other equity interests in the Company or any Subsidiary of the Company (including other classes or groups thereof having such relative rights, powers and duties as may from time to time be established by the Manager pursuant to the provisions of this Agreement, including rights, powers and/or duties senior to existing classes and groups of Units and other equity interests in the Company or any Subsidiary of the Company), (b) obligations, evidences of indebtedness or other securities or interests convertible or exchangeable into Units or other equity interests in the Company or any Subsidiary of the Company, and (c) warrants, options or other rights to purchase or otherwise acquire Units or other equity interests in the Company or any Subsidiary of the Company.

 

“Event of Withdrawal” means the expulsion, bankruptcy or dissolution of a Member or the occurrence of any other event that terminates the continued membership of a Member in the Company.  “Event of Withdrawal” shall not include an event that (a) terminates the existence of a Member for income tax purposes (including, without limitation, (i) a change in entity classification of a Member under Treasury Regulations Section 301.7701-3, (ii) termination of a partnership pursuant to Code Section 708(b)(1)(B), (iii) a sale of assets by, or liquidation of, a Member pursuant to an election under Code Section 338, or (iv) merger, severance, or allocation within a trust or among sub-trusts of a trust that is a Member) but that (b) does not terminate the existence of such Member under applicable state law (or, in the case of a trust that is a Member, does not terminate the trusteeship of the fiduciaries under such trust with respect to all the Company Interests of such trust that is a Member).

 

“Fair Market Value” means, with respect to any asset, its fair market value determined according to Article XV.

 

“First A&R LLC Agreement” has the meaning set forth in the recitals to this Agreement.

 

6

 

“Fiscal Period” means any interim accounting period within a Taxable Year established by the Manager and which is permitted or required by Section 706 of the Code.

 

“Fiscal Year” means the Company’s annual accounting period established pursuant to Section 8.02.

 

“Governmental Entity” means (a) the United States of America, (b) any other sovereign nation, (c) any state, province, district, territory or other political subdivision of (a) or (b) of this definition, including any county, municipal or other local subdivision of the foregoing, or (d) any entity exercising executive, legislative, judicial, regulatory or administrative functions of government on behalf of (a), (b) or (c) of this definition.

 

“Indemnified Person” has the meaning set forth in Section 7.04(a).

 

“Independent Directors” means the members of the Corporate Board who are “independent” under the standards set forth in Rule 10A-3 promulgated under the U.S. Securities Exchange Act of 1933, as amended, and the corresponding rules of the applicable exchange on which the Class A Common Stock is traded or quoted.

 

“Initial LLC Agreement” has the meaning set forth in the recitals to this Agreement.

 

“Investment Company Act” means the U.S. Investment Company Act of 1940, as amended from time to time.

 

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

 

“IPO Closing Date” means the closing date of the IPO, which for the avoidance of doubt means the date on which all IPO net proceeds required to be delivered pursuant to the Underwriting Agreement have been delivered to the Corporation in respect of its sale of Class A Common Stock excluding any proceeds from the Over-Allotment Option which may be delivered at a subsequent date following exercise of such option.

 

“IPO Common Unit Purchase” has the meaning set forth in Section 3.03(b).

 

“IPO Common Unit Purchase Agreement” means that certain Common Unit Purchase Agreement, dated as of the date hereof, by and among the Corporation, the Company and the Original Members.

 

“IPO Primary Net Proceeds” has the meaning set forth in the recitals to this Agreement.

 

“IPO Secondary Net Proceeds” has the meaning set forth in the recitals to this Agreement.

 

“Joinder” means a joinder to this Agreement, in form and substance substantially similar to Exhibit A to this Agreement.

 

7

 

“Law” means all laws, statutes, ordinances, rules and regulations of the United States, any foreign country and each state, commonwealth, city, county, municipality, regulatory body, agency or other political subdivision thereof.

 

“LLC Employee” means an employee of, or other service provider to, the Company or any Subsidiary, in each case acting in such capacity.

 

“LLC Option Exercise” means the exercise, whether in whole or in part, of an LLC Option by the applicable LLC Optionee in accordance with the provisions of the applicable LLC Option and the Original Management Equity Plan, including the payment by such LLC Optionee to the Company of the exercise price in respect thereof (whether in cash or in kind through a cashless exercise).

 

“LLC Optionees” means each of the Persons named on Schedule 2 attached hereto with respect to the number of shares of Common Units underlying the LLC Options set forth opposite the name of such Person under the column labeled “LLC Options” therein, as long as the LLC Option of such Person remains effective in accordance with its terms and only to the extent of the remaining number of Common Units with respect to which such Person has not then exercised its purchase right under such LLC Option.

 

“LLC Options” means the Original LLC Options granted under the Original Management Equity Plan, in each case as amended in connection with the Recapitalization, and which after giving effect to the Recapitalization give each LLC Optionee the right to purchase, subject to the terms and conditions set forth therein, the number of Common Units set forth opposite such LLC Optionee’s name on Schedule 2 hereto at an exercise price of $6.66 per Common Unit.  For the avoidance of doubt, no additional LLC Options will be issued on and after the date of this Agreement.

 

“Losses” means items of Company loss or deduction determined according to Section 5.01(b).

 

“Majority Members” means the Members holding a majority of the Voting Units then outstanding; provided that, if as of any date of determination, a majority of the Voting Units are then held by the Manager or any Affiliates controlled by the Manager, then “Majority Members” shall mean the Manager together with Members (other than the Manager and its controlled Affiliates) holding a majority of the Voting Units (excluding Voting Units held by the Manager) then outstanding.

 

“Manager” has the meaning set forth in Section 6.01.

 

“Market Price” means, with respect to a share of Class A Common Stock as of a specified date, the last sale price per share of Class A Common Stock, regular way, or if no such sale took place on such day, the average of the closing bid and asked prices per share of Class A Common Stock, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the Stock Exchange or, if the Class A Common Stock is not listed or admitted to trading on the Stock Exchange, as reported on the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Class A Common Stock is listed

 

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or admitted to trading or, if the Class A Common Stock is not listed or admitted to trading on any national securities exchange, the last quoted price, or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the National Association of Securities Dealers, Inc. Automated Quotation System or, if such system is no longer in use, the principal other automated quotation system that may then be in use or, if the Class A Common Stock is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Class A Common Stock selected by the Corporate Board or, in the event that no trading price is available for the shares of Class A Common Stock, the fair market value of a share of Class A Common Stock, as determined in good faith by the Corporate Board.

 

“Material Subsidiary” means any direct or indirect Subsidiary of the Company that, as of any date of determination, represents more than (a) 50% of the consolidated net tangible assets of the Company or (b) 50% of the consolidated net income of the Company before interest, taxes, depreciation and amortization (calculated in a manner substantially consistent with the definition of “Consolidated Net Income” and/or “EBITDA” or similar definition(s) appearing therein in the Credit Agreements, including such additional adjustments that are permitted to be made to such measure as described in “Adjusted EBITDA” or similar definition appearing in the Credit Agreements).

 

“Member” means, as of any date of determination, (a) each of the members named on the Schedule of Members and (b) any Person admitted to the Company as a Substituted Member or Additional Member in accordance with Article XII, but in each case only so long as such Person is shown on the Company’s books and records as the owner of one or more Units.  For the avoidance of doubt, an LLC Optionee shall not constitute a Member hereunder except to the extent that, as of such date of determination, such Person is shown on the Company’s books and records as an owner of one or more Units.

 

“Minimum Gain” means “partnership minimum gain” determined pursuant to Treasury Regulation Section 1.704-2(d).

 

“Net Loss” means, with respect to a Fiscal Year, the excess if any, of Losses for such Fiscal Year over Profits for such Fiscal Year (excluding Profits and Losses specially allocated pursuant to Section 5.03 and Section 5.04).

 

“Net Profit” means, with respect to a Fiscal Year, the excess if any, of Profits for such Fiscal Year over Losses for such Fiscal Year (excluding Profits and Losses specially allocated pursuant to Section 5.03 and Section 5.04).

 

“Officer” has the meaning set forth in Section 6.01(b).

 

“Optionee” means a Person to whom a stock option is granted under any Stock Option Plan.

 

“Original Award Agreement” means an Award Agreement as defined in the First A&R LLC Agreement, as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, including in connection with the Recapitalization.

 

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“Original Class A Units” has the meaning set forth in the recitals to this Agreement.

 

“Original Class B Units” has the meaning set forth in the recitals to this Agreement.

 

“Original LLC Optionees” has the meaning set forth in the recitals to this Agreement.

 

“Original LLC Options” has the meaning set forth in the recitals to this Agreement.

 

“Original Management Equity Plan” means the Management Equity Plan as defined in the First A&R LLC Agreement, as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, including in connection with the Recapitalization.

 

“Original Members” has the meaning set forth in the recitals to this Agreement.

 

“Other Agreements” has the meaning set forth in Section 10.04.

 

“Over-Allotment Option” has the meaning set forth in the recitals to this Agreement.

 

“Over-Allotment Option Net Proceeds” has the meaning set forth in the recitals to this Agreement.

 

“Percentage Interest” means, as among an individual class of Units and with respect to a Member at a particular time, such Member’s percentage interest in the Company determined by dividing such Member’s Units of such class by the total Units of all Members of such class at such time.  The Percentage Interest of each member shall be calculated to the 9th decimal place.

 

“Permitted Transfer” has the meaning set forth in Section 10.02.

 

“Person” means an individual or any corporation, partnership, limited liability company, trust, unincorporated organization, association, joint venture or any other organization or entity, whether or not a legal entity.

 

“Pro rata,” “pro rata portion,” “according to their interests,” “ratably,” “proportionately,” “proportional,” “in proportion to,” “based on the number of Units held,” “based upon the percentage of Units held,” “based upon the number of Units outstanding,” and other terms with similar meanings, when used in the context of a number of Units of the Company relative to other Units, means as amongst an individual class of Units, pro rata based upon the number of such Units within such class of Units.

 

“Profits” means items of Company income and gain determined according to Section 5.01(b).

 

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

 

“Redeemed Units” has the meaning set forth in Section 11.01(a).

 

“Redeemed Units Equivalent” means the product of (a) the Share Settlement, times (b) the Common Unit Redemption Price.

 

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“Redeeming Member” has the meaning set forth in Section 11.01(a).

 

“Redemption” has the meaning set forth in Section 11.01(a).

 

“Redemption Date” has the meaning set forth in Section 11.01(a).

 

“Redemption Notice” has the meaning set forth in Section 11.01(a).

 

“Redemption Right” has the meaning set forth in Section 11.01(a).

 

“Registration Rights Agreement” means that certain Registration Rights Agreement, dated as of the date hereof, by and among the Corporation, the Original Members and the Original LLC Optionees.

 

“Retraction Notice” has the meaning set forth in Section 11.01(b).

 

“Schedule of Members” has the meaning set forth in Section 3.01(b).

 

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

 

“Second Lien Credit Agreement” means that certain Second Lien Credit Agreement, dated as of June 9, 2014, by and among the Company, as holdings, Neff LLC, as parent, Neff Rental LLC, as borrower, the several lenders from time to time party thereto, and Credit Suisse AG, as administrative agent and collateral agent for the lenders, including all exhibits, schedules and attachments thereto, as such Second Lien Credit Agreement is in effect as of the date hereof and as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time and including any one or more refinancings or replacements thereof, in whole or in part, with any other debt facility or debt obligation.

 

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

 

“Share Settlement” means a number of shares of Class A Common Stock equal to the number of Redeemed Units.

 

“Stock Exchange” means the New York Stock Exchange.

 

“Stock Option Plan” means any stock option plan now or hereafter adopted by the Company or by the Corporation, including without limitation the Corporate Omnibus Incentive Plan.

 

“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or business entity of which (a) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time

 

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owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (b) if a limited liability company, partnership, association or other business entity (other than a corporation), a majority of the voting interests thereof are at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof.  For purposes hereof, references to a “Subsidiary” of the Company shall be given effect only at such times that the Company has one or more Subsidiaries, and, unless otherwise indicated, the term “Subsidiary” refers to a Subsidiary of the Company.

 

“Substituted Member” means a Person that is admitted as a Member to the Company pursuant to Section 12.01.

 

“Tax Distribution Date” has the meaning set forth in Section 4.01(b)(i).

 

“Tax Distributions” has the meaning set forth in Section 4.01(b)(i).

 

“Tax Matters Partner” has the meaning set forth in Section 9.03.

 

“Tax Receivable Agreement” means that certain Tax Receivable Agreement, dated as the date hereof, by and among the Corporation, on the one hand, and the Original Members, on the other hand (together with any joinder thereto from time to time executed by any LLC Optionee and/or by any successor or assign to any party to such agreement).

 

“Taxable Year” means the Company’s accounting period for U.S. federal income tax purposes determined pursuant to Section 9.02.

 

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

 

“Transfer” (and, with a correlative meaning, “Transferring”) means any sale, transfer, assignment, pledge, encumbrance or other disposition of (whether directly or indirectly, whether with or without consideration and whether voluntarily or involuntarily or by operation of Law) (a) any interest (legal or beneficial) in any Equity Securities or (b) any equity or other interest (legal or beneficial) in any Member if substantially all of the assets of such Member consist solely of Units.

 

“Treasury Regulations” means the income tax regulations promulgated under the Code and any corresponding provisions of succeeding regulations.

 

“Underwriting Agreement” means the Underwriting Agreement, dated as of [·], 2014, by and among the Corporation, the Company, Morgan Stanley & Co. LLC and Jefferies LLC.

 

“Unit” means a Company Interest of a Member or a permitted Assignee in the Company representing a fractional part of the Company Interests of all Members and Assignees as may be established by the Manager from time to time in accordance with Section 3.02; provided, however, that any class or group of Units issued shall have the relative rights, powers and duties

 

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set forth in this Agreement, and the Company Interest represented by such class or group of Units shall be determined in accordance with such relative rights, powers and duties.

 

“Unitholder” means a Common Unitholder and any Member who is the registered holder of any other class of Units, if any.

 

“Unvested Corporate Shares” means shares of Class A Common Stock issued pursuant to the Corporate Omnibus Incentive Plan that are not Vested Corporate Shares.

 

“Value” means (a) for any Stock Option Plan, the Market Price for the trading day immediately preceding the date of exercise of a stock option under such Stock Option Plan and (b) for any Equity Plan other than a Stock Option Plan, the Market Price for the trading day immediately preceding the Vesting Date.

 

“Vested Corporate Shares” means the shares of Class A Common Stock  issued pursuant to a Stock Option Plan adopted by the Corporation that are vested pursuant to the terms thereof or pursuant to any award or similar agreement relating thereto.

 

“Vesting Date” has the meaning set forth in Section 3.11(c)(ii).

 

“Voting Units” means (a) the Common Units and (b) any other Units other than Units that by their express terms do not entitle the record holder thereof to vote on any matter presented to the Members generally under this Agreement for approval.

 

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

 

“Wayzata Offshore” has the meaning set forth in the recitals to this Agreement.

 

ARTICLE II.
 ORGANIZATIONAL MATTERS

 

Section 2.01                             Formation of Company.  The Company was formed on May 12, 2010 pursuant to the provisions of the Delaware Act.

 

Section 2.02                             Second Amended and Restated Limited Liability Company Agreement.  The Members hereby execute this Agreement for the purpose of establishing the affairs of the Company and the conduct of its business in accordance with the provisions of the Delaware Act.  The Members hereby agree that during the term of the Company set forth in Section 2.06 the rights and obligations of the Members with respect to the Company will be determined in accordance with the terms and conditions of this Agreement and the Delaware Act.  On any matter upon which this Agreement is silent, the Delaware Act shall control.  No provision of this Agreement shall be in violation of the Delaware Act and to the extent any provision of this Agreement is in violation of the Delaware Act, such provision shall be void and of no effect to the extent of such violation without affecting the validity of the other provisions of this Agreement; provided, however, that where the Delaware Act provides that a provision of the Delaware Act shall apply “unless otherwise provided in a limited liability company agreement” or words of similar effect, the provisions of this Agreement shall in each instance control;

 

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provided further, that notwithstanding the foregoing, Section 18-210 of the Delaware Act shall not apply or be incorporated into this Agreement.

 

Section 2.03                             Name.  The name of the Company shall be “Neff Holdings LLC.” The Manager in its sole discretion may change the name of the Company at any time and from time to time.  Notification of any such change shall be given to all of the Members and, to the extent practicable, to all of the holders of any Equity Securities then outstanding.  The Company’s business may be conducted under its name and/or any other name or names deemed advisable by the Manager.

 

Section 2.04                             Purpose.  The primary business and purpose of the Company shall be to engage in such activities as are permitted under the Delaware Act and determined from time to time by the Manager in accordance with the terms and conditions of this Agreement.

 

Section 2.05                             Principal Office; Registered Office.  The principal office of the Company shall be at 3750 N.W. 87th Avenue, Suite 400, Miami, Florida 33178, or such other place as the Manager may from time to time designate.  The address of the registered office of the Company in the State of Delaware shall be c/o The Corporation Trust Company, 1209 Orange Street, in the City of Wilmington, County of New Castle, 19801, and the registered agent for service of process on the Company in the State of Delaware at such registered office shall be The Corporation Trust Company.  The Manager may from time to time change the Company’s registered agent and registered office in the State of Delaware.

 

Section 2.06                             Term.  The term of the Company commenced upon the filing of the Certificate in accordance with the Delaware Act and shall continue in existence until termination and dissolution of the Company in accordance with the provisions of Article XIV.

 

Section 2.07                             No State-Law Partnership.  The Members intend that the Company not be a partnership (including, without limitation, a limited partnership) or joint venture, and that no Member be a partner or joint venturer of any other Member by virtue of this Agreement, for any purposes other than as set forth in the last sentence of this Section 2.07, and neither this Agreement nor any other document entered into by the Company or any Member relating to the subject matter hereof shall be construed to suggest otherwise.  The Members intend that the Company shall be treated as a partnership for U.S. federal and, if applicable, state or local income tax purposes, and that each Member and the Company shall file all tax returns and shall otherwise take all tax and financial reporting positions in a manner consistent with such treatment.

 

ARTICLE III.
 MEMBERS; UNITS; CAPITALIZATION

 

Section 3.01                             Members.

 

(a)                                 Each of the Original Members previously was admitted as a Member to the Company pursuant to the First A&R LLC Agreement and shall remain a Member of the Company upon the Effective Time.  At the Effective Time and concurrently with the IPO Common Unit Purchase, the Corporation shall be admitted to the Company as a Member.  In accordance with Sections 3.10(a) and 12.02, from time to time on or after the date of this

 

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Agreement, upon each LLC Option Exercise the applicable LLC Optionee shall be admitted to the Company as an Additional Member.

 

(b)                                 The Company shall maintain a schedule setting forth: (i) the name and address of each Member; (ii) the aggregate number of outstanding Units and the number and class of Units held by each Member; (iii) the aggregate amount of cash Capital Contributions that has been made by the Members with respect to their Units; and (iv) the Fair Market Value of any property other than cash contributed by the Members with respect to their Units (including, if applicable, a description and the amount of any liability assumed by the Company or to which contributed property is subject) (such schedule, the “Schedule of Members”).  The applicable Schedule of Members in effect as of the Effective Time is set forth as Schedule 1 to this Agreement.  The Schedule of Members shall be the definitive record of ownership of each Unit of the Company and all relevant information with respect to each Member.  The Company shall be entitled to recognize the exclusive right of a Person registered on its records as the owner of Units for all purposes and shall not be bound to recognize any equitable or other claim to or interest in Units on the part of any other Person, whether or not it shall have express or other notice thereof, except as otherwise provided by the Delaware Act.

 

(c)                                  No Member shall be required by this Agreement or, except as approved by the Manager pursuant to Section 6.01 and in accordance with the other provisions of this Agreement, permitted to loan any money or property to the Company or borrow any money or property from the Company.  No member shall be required by this Agreement to (x) make a Capital Contribution in respect of Units (other than upon the acquisition thereof) to the Company after the date hereof, except to the extent as may from time to time be required by the Delaware Act or (y) personally guarantee the obligations of the Company or of any other Member.

 

Section 3.02                             Units.  Interests in the Company shall be represented by Units, or such other securities of the Company, in each case as the Manager may establish in its discretion in accordance with the terms and subject to the restrictions hereof.  Immediately after the Effective Time, the Units will be comprised of a single class of Common Units (with an aggregate of One Hundred Ten million (110,000,000) Common Units being initially authorized for issuance by the Company, subject to such modifications as may be required pursuant to Section 3.04).  To the extent required pursuant to Section 3.04(a), the Manager may create one or more classes or series of Common Units or preferred Units solely to the extent they are in the aggregate substantially equivalent to a class of common stock of the Corporation or class or series of preferred stock of the Corporation; provided that as long as there are any Members of the Company (other than the Corporation) or any LLC Optionees with respect to outstanding LLC Options, then no such new class or series of Units may deprive such Members or LLC Optionees of, or dilute or reduce, the pro rata share of all Company Interests they would have received or to which they would have been entitled (including on a pro forma basis for the exercise of LLC Options) if such new class or series of Units had not been created except to the extent (and solely to the extent) the Company actually receives cash in an aggregate amount, or other property with a Fair Market Value in an aggregate amount, equal to the pro rata share allocated to such new class or series of Units and the number thereof issued by the Company.

 

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Section 3.03                             Recapitalization and Split; the Corporation’s Capital Contribution; the Corporation’s Purchase of Common Units; Redemptions.

 

(a)                                 Recapitalization and Split.  In connection with the Recapitalization, immediately upon the Effective Time, the aggregate number of 9,200,000 Original Class A Units that were issued and outstanding and held by the Original Members prior to the execution and effectiveness of this Agreement are hereby converted into an aggregate of 14,951,625 Common Units.  The number of Common Units received by each Original Member reflect a 1.6251776625:1 split of each Unit evidencing a common Company Interest previously held by each Original Member as reflected on Schedule A to, and in other applicable provisions of, the First A&R LLC Agreement.  In connection with the Recapitalization, immediately upon the Effective Time, the aggregate number of 778,374 Original Class B Units that were underlying option grants to the Original LLC Optionees prior to the execution and effectiveness of this Agreement are hereby converted into an aggregate of 1,264,995 Common Units.  The number of Common Units underlying each grant to an Original LLC Optionee will reflect a 1.6251776625:1 split of each Unit evidencing a common Company Interest previously underlying the grant to such Original LLC Optionee and reflected in the applicable grant documentation under the Original Management Equity Plan and the applicable Original Award Agreement.  No fractional Common Units will be issued as a result of the Unit splits contemplated by this Section 3.03.

 

(b)                                 The Corporation’s Common Unit Purchase.  Following the Recapitalization, immediately upon the Effective Time, the Corporation will contribute the IPO Primary Net Proceeds to the Company in exchange for 8,333,333 newly issued Common Units pursuant to the IPO Common Unit Purchase Agreement (the “IPO Common Unit Purchase”).  The IPO Common Unit Purchase shall be reflected on the Schedule of Members.  In addition, to the extent the underwriters in the IPO exercise the Over-Allotment Option in whole or in part, (i) pursuant to the IPO Common Unit Purchase Agreement, the Corporation will contribute the Over-Allotment Option Net Proceeds to the Company in exchange for a number of newly issued Common Units equal to the number of shares of Class A Common Stock issued by the Corporation in such exercise of the Over-Allotment Option, and (ii) such issuance of additional Common Units shall be reflected on the Schedule of Members.

 

Section 3.04                             Authorization and Issuance of Additional Units.

 

(a)                                 The Company shall undertake all actions, including, without limitation, a reclassification, distribution, division or recapitalization, with respect to the Common Units, to maintain at all times a one-to-one ratio between the number of Common Units owned by the Corporation and the number of outstanding shares of Class A Common Stock, disregarding, for purposes of maintaining the one-to-one ratio, (i) Unvested Corporate Shares, (ii) treasury stock or (iii) preferred stock or other debt or equity securities (including without limitation warrants, options or rights) issued by the Corporation that are convertible into or exercisable or exchangeable for Class A Common Stock (except to the extent the net proceeds from such other securities, including any exercise or purchase price payable upon conversion, exercise or exchange thereof, has been contributed by the Corporation to the equity capital of the Company).  In the event the Corporation issues, transfers or delivers from treasury stock or repurchases Class A Common Stock in a transaction not contemplated in this Agreement, the Manager shall take all 

 

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actions such that, after giving effect to all such issuances, transfers, deliveries or repurchases, the number of outstanding Common Units owned by the Corporation will equal on a one-for-one basis the number of outstanding shares of Class A Common Stock.  In the event the Corporation issues, transfers or delivers from treasury stock or repurchases or redeems the Corporation’s preferred stock in a transaction not contemplated in this Agreement, the Manager shall take all actions such that, after giving effect to all such issuances, transfers, deliveries repurchases or redemptions, the Corporation holds (in the case of any issuance, transfer or delivery) or ceases to hold (in the case of any repurchase or redemption) equity interests in the Company which (in the good faith determination by the Manager) are in the aggregate substantially equivalent to the outstanding preferred stock of the Corporation so issued, transferred, delivered, repurchased or redeemed.  The Company shall not undertake any subdivision (by any Common Unit split, Common Unit distribution, reclassification, recapitalization or similar event) or combination (by reverse Common Unit split, reclassification, recapitalization or similar event) of the Common Units that is not accompanied by an identical subdivision or combination of Class A Common Stock to maintain at all times a one-to-one ratio between the number of Common Units owned by the Corporation and the number of outstanding shares of Class A Common Stock, unless such action is necessary to maintain at all times a one-to-one ratio between the number of Common Units owned by the Corporation and the number of outstanding shares of Class A Common Stock as contemplated by the first sentence of this Section 3.04(a) without the requirement of any consent or acknowledgement of any other Member.

 

(b)                                 The Company shall only be permitted to issue additional Units or other Equity Securities in the Company to the Persons and on the terms and conditions provided for in Section 3.02, this Section 3.04, Section 3.10, Section 3.11 and Section 3.12.  Subject to the foregoing, the Manager may cause the Company to issue additional Common Units authorized under this Agreement at such times and upon such terms as the Manager shall determine and the Manager shall amend this Agreement as necessary in connection with the issuance of additional Common Units and admission of additional Members under this Section 3.04.

 

Section 3.05                             Repurchase or Redemption of shares of Class A Common Stock.  If, at any time, any shares of Class A Common Stock are repurchased or redeemed (whether by exercise of a put or call, automatically or by means of another arrangement) by the Corporation for cash, then the Manager shall cause the Company, immediately prior to such repurchase or redemption of Class A Common Stock, to redeem a corresponding number of Common Units held by the Corporation, at an aggregate redemption price equal to the aggregate purchase or redemption price of the shares of Class A Common Stock being repurchased or redeemed by the Corporation (plus any expenses related thereto) and upon such other terms as are the same for the shares of Class A Common Stock being repurchased or redeemed by the Corporation.

 

Section 3.06                             Certificates Representing Units; Lost, Stolen or Destroyed Certificates; Registration and Transfer of Units.

 

(a)                                 Units shall not be certificated unless otherwise determined by the Manager.  If the Manager determines that one or more Units shall be certificated, each such certificate shall be signed by or in the name of the Company, by the Chief Executive Officer and any other officer designated by the Manager, representing the number of Units held by such holder.  Such certificate shall be in such form (and shall contain such legends) as the Manager may determine.  

 

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Any or all of such signatures on any certificate representing one or more Units may be a facsimile, engraved or printed, to the extent permitted by applicable Law.  The Manager agrees that it shall not elect to treat any Unit as a “security” within the meaning of Article 8 of the Uniform Commercial Code unless thereafter all Units then outstanding are represented by one or more certificates.

 

(b)                                 If Units are certificated, the Manager may direct that a new certificate representing one or more Units be issued in place of any certificate theretofore issued by the Company alleged to have been lost, stolen or destroyed, upon delivery to the Manager of an affidavit of the owner or owners of such certificate, setting forth such allegation.  The Manager may require the owner of such lost, stolen or destroyed certificate, or such owner’s legal representative, to give the Company a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of any such new certificate.

 

(c)                                  Upon surrender to the Company or the transfer agent of the Company, if any, of a certificate for one or more Units, duly endorsed or accompanied by appropriate evidence of succession, assignment or authority to transfer, in compliance with the provisions hereof, the Company shall issue a new certificate representing one or more Units to the Person entitled thereto, cancel the old certificate and record the transaction upon its books.  Subject to the provisions of this Agreement, the Manager may prescribe such additional rules and regulations as it may deem appropriate relating to the issue, Transfer and registration of Units.

 

Section 3.07                             Negative Capital Accounts.  No Member shall be required to pay to any other Member or the Company any deficit or negative balance which may exist from time to time in such Member’s Capital Account (including upon and after dissolution of the Company).

 

Section 3.08                             No Withdrawal.  No Person shall be entitled to withdraw any part of such Person’s Capital Contribution or Capital Account or to receive any Distribution from the Company, except as expressly provided in this Agreement.

 

Section 3.09                             Loans From Members.  Loans by Members to the Company shall not be considered Capital Contributions.  Subject to the provisions of Section 3.01(c), the amount of any such advances shall be a debt of the Company to such Member and shall be payable or collectible in accordance with the terms and conditions upon which such advances are made.

 

Section 3.10                             LLC Option Exercises.  If at any time or from time to time, in connection with any LLC Option, the LLC Optionee exercises its LLC Option in whole or in part:

 

(a)                                 If such LLC Optionee is not a Member as of the date of such exercise, such LLC Optionee shall execute and deliver to the Manager a Joinder to this Agreement whereby such LLC Optionee shall agree to become a Member under this Agreement, entitled to all of the rights and privileges and subject to all of the agreements and responsibilities of a Member hereunder from and after the date of such Joinder.

 

(b)                                 Notwithstanding the foregoing, if the LLC Optionee, in its capacity as a prospective Member hereunder as a result of such LLC Option exercise, intends to 

 

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simultaneously exercise its Redemption Rights with respect to all (but not less than all) of the Common Units to be received as by such LLC Optionee as a result of such exercise, then:

 

(i)                                     the actions described in subsection (a) of this Section 3.10 shall be deemed to have occurred (including that such LLC Optionee shall be deemed to have become a Member for the period of time between such exercise and such Redemption) without requiring the actual execution of a Joinder or the actual issuance and delivery to the LLC Optionee of the applicable number of Common Units; and

 

(ii)                                  such LLC Optionee may proceed to exercise all of the rights of a Member with respect to a Redemption under Article XI hereof of up to the number of Common Units that such LLC Optionee is entitled to receive (and deemed to have received) as a result of such exercise.

 

(c)                                  Anti-dilution adjustments.  For all purposes of this Section 3.10, the number of Common Units (or in connection with simultaneous Redemption, the number of shares of Class A Common Stock in lieu of Common Units) shall be determined after giving effect to all anti-dilution or similar adjustments that are applicable, as of the date of exercise, to the LLC Option being exercised the Original Management Equity Plan or applicable Original Award Agreement.

 

Section 3.11                             Corporate Stock Option Plans.

 

(a)                                 Options Granted to Persons other than LLC Employees.  If at any time or from time to time, in connection with any Stock Option Plan, a stock option granted over shares of Class A Common Stock to a Person other than an LLC Employee is duly exercised:

 

(i)                                     The Corporation shall, as soon as practicable after such exercise, make a Capital Contribution to the Company in an amount equal to the exercise price paid to the Corporation by such exercising Person in connection with the exercise of such stock option.

 

(ii)                                  Notwithstanding the amount of the Capital Contribution actually made pursuant to Section 3.11(a)(i), the Corporation shall be deemed to have contributed to the Company as a Capital Contribution, in lieu of the Capital Contribution actually made and in consideration of additional Common Units, an amount equal to the Value of a share of Class A Common Stock as of the date of such exercise multiplied by the number of shares of Class A Common Stock then being issued by the Corporation in connection with the exercise of such stock option.

 

(iii)                               The Corporation shall receive in exchange for such Capital Contributions (as deemed made under 3.11(a)(ii)), a corresponding number of Units of a class correlative to the class of Equity Securities for which such stock options were granted.

 

(b)                                 Options Granted to LLC Employees.  If at any time or from time to time, in connection with any Stock Option Plan, a stock option granted over shares of Class A Common Stock to an LLC Employee is duly exercised:

 

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(i)                                     The Corporation shall sell to the Optionee, and the Optionee shall purchase from the Corporation, for a cash price per share equal to the Value of a share of Class A Common Stock at the time of the exercise, the number of shares of Class A Common Stock equal to the quotient of (x) the exercise price payable by the Optionee in connection with the exercise of such stock option divided by (y) the Value of a share of Class A Common Stock at the time of such exercise.

 

(ii)                                  The Corporation shall sell to the Company (or if the Optionee is an employee of, or other service provider to, a Subsidiary, the Corporation shall sell to such Subsidiary), and the Company (or such Subsidiary, as applicable) shall purchase from the Corporation, a number of shares of Class A Common Stock equal to the excess of (x) the number of shares of Class A Common Stock as to which such stock option is being exercised over (y) the number of shares of Class A Common Stock sold pursuant to Section 3.11(b)(i) hereof.  The purchase price per share of Class A Common Stock for such sale of shares of Class A Common Stock to the Company (or such Subsidiary) shall be the Value of a share of Class A Common Stock as of the date of exercise of such stock option.

 

(iii)                               The Company shall transfer to the Optionee (or if the Optionee is an employee of, or other service provider to, a Subsidiary, the Subsidiary shall transfer to the Optionee) at no additional cost to such LLC Employee and as additional compensation to such LLC Employee, the number of shares of Class A Common Stock described in Section 3.11(b)(ii).

 

(iv)                              The Corporation shall, as soon as practicable after such exercise, make a Capital Contribution to the Company in an amount equal to all proceeds received (from whatever source, but excluding any payment in respect of payroll taxes or other withholdings) by the Corporation in connection with the exercise of such stock option.  The Corporation shall receive for such Capital Contribution, a number Units equal to the number of shares of Class A Common Stock for which such option was exercised.

 

(c)                                  Restricted Stock Granted to LLC Employees.  If at any time or from time to time, in connection with any Equity Plan (other than a Stock Option Plan), any shares of Class A Common Stock are issued to an LLC Employee (including any shares of Class A Common Stock that are subject to forfeiture in the event such LLC Employee terminates his employment by the Company or any Subsidiary) in consideration for services performed for the Company or any Subsidiary:

 

(i)                                     The Corporation shall issue such number of shares of Class A Common Stock as are to be issued to the LLC Employee in accordance with the Equity Plan;

 

(ii)                                  On the date (such date, the “Vesting Date”) that the Value of such shares is includible in taxable income of the LLC Employee, the following events will be deemed to have occurred: (a) the Corporation shall be deemed to have sold such shares of Class A Common Stock to the Company (or if the LLC Employee is an employee of, or other service provider to, a Subsidiary, to such Subsidiary) for a purchase price equal to the Value of such shares of Class A Common Stock, (b) the Company (or such 

 

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Subsidiary) shall be deemed to have delivered such shares of Class A Common Stock to the LLC Employee, (c) the Corporation shall be deemed to have contributed the purchase price for such shares of Class A Common Stock to the Company as a Capital Contribution, and (d) in the case where the LLC Employee is an employee of a Subsidiary, the Company shall be deemed to have contributed such amount to the capital of the Subsidiary; and

 

(iii)                               The Company shall issue to the Corporation on the Vesting Date a number of Units equal to the number of shares of Class A Common Stock issued under Section 3.11(c)(i) in consideration for a Capital Contribution in cash in an amount equal to the product of (x) the number of such newly issued Units multiplied by (y) the Value of a share of Class A Common Stock.

 

(d)                                 Future Stock Incentive Plans.  Nothing in this Agreement shall be construed or applied to preclude or restrain the Corporation from adopting, modifying or terminating stock incentive plans for the benefit of employees, directors or other business associates of the Corporation, the Company or any of their respective Affiliates.  The Members acknowledge and agree that, in the event that any such plan is adopted, modified or terminated by the Corporation, amendments to this Section 3.11 may become necessary or advisable and that any approval or consent to any such amendments requested by the Corporation shall be deemed granted by the Manager without the requirement of any further consent or acknowledgement of any other Member.

 

(e)                                  Anti-dilution adjustments.  For all purposes of this Section 3.11, the number of shares of Class A Common Stock and the corresponding number of Common Units shall be determined after giving effect to all anti-dilution or similar adjustments that are applicable, as of the date of exercise or vesting, to the option, warrant, restricted stock or other equity interest that is being exercised or becomes vested under the applicable Stock Option Plan or other Equity Plan and applicable award or grant documentation.

 

Section 3.12                             Dividend Reinvestment Plan, Cash Option Purchase Plan, Stock Incentive Plan or Other Plan.  Except as may otherwise be provided in this Article III, all amounts received or deemed received by the Corporation in respect of any dividend reinvestment plan, cash option purchase plan, stock incentive or other stock or subscription plan or agreement, either (a) shall be utilized by the Corporation to effect open market purchases of shares of Class A Common Stock, or (b) if the Corporation elects instead to issue new shares of Class A Common Stock with respect to such amounts, shall be contributed by the Corporation to the Company in exchange for additional Units.  Upon such contribution, the Company will issue to the Corporation a number of Units equal to the number of new shares of Class A Common Stock so issued.

 

ARTICLE IV.
 DISTRIBUTIONS

 

Section 4.01                             Distributions.

 

(a)                                 Distributable Cash; Other Distributions.  To the extent permitted by applicable Law and hereunder, Distributions to Members may be declared by the Manager out of 

 

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Distributable Cash or other funds or property legally available therefor in such amounts and on such terms (including the payment dates of such Distributions) as the Manager shall determine using such record date as the Manager may designate; such Distributions shall be made to the Members as of the close of business on such record date on a pro rata basis in accordance with each Member’s Percentage Interest as of the close of business on such record date; provided, however, that the Manager shall have the obligation to make Distributions as set forth in Sections 4.01(b) and 14.02; and provided further that, notwithstanding any other provision herein to the contrary, no Distributions shall be made to any Member to the extent such Distribution would render the Company insolvent.  For purposes of the foregoing sentence, insolvency means the inability of the Company to meet its payment obligations when due.  Promptly following the designation of a record date and the declaration of a Distribution pursuant to this Section 4.01(a), the Manager shall give notice to each Member of the record date, the amount and the terms of the Distribution and the payment date thereof.  In furtherance of the foregoing, it is intended that the Manager shall, to the extent permitted by applicable Law and hereunder, have the right in its sole discretion to make Distributions to the Members pursuant to this Section 4.01(a) in such amounts as shall enable the Corporation to pay dividends or to meet its obligations, including its obligations pursuant to the Tax Receivable Agreement (to the extent such obligations are not otherwise able to be satisfied as a result of Tax Distributions required to be made pursuant to Section 4.01(b)).

 

(b)                                 Tax Distributions.

 

(i)                                     Subject to Section 4.02, on or about each date (a “Tax Distribution Date”) that is ten (10) Business Days prior to (i) each date on which estimated U.S. federal income tax payments are required to be made by calendar year individual taxpayers (or, if earlier, the date on which estimated U.S. federal income tax payments are required for the Corporation) and (ii) each due date for the U.S. federal income tax return of an individual calendar year taxpayer (without regard to extensions) (or, if earlier, the due date for the U.S. federal income tax return of the Corporation, as determined without regard to extensions), the Company shall be required to make a Distribution to each Member of cash in an amount equal to the excess of such Member’s Assumed Tax Liability, if any, for such taxable period over the Distributions previously made to such Member pursuant to this Section 4.01(b) with respect to such taxable period (the “Tax Distributions”).

 

(ii)                                  To the extent a Member otherwise would be entitled to receive less than its Percentage Interest of the aggregate Tax Distributions to be paid pursuant to this Section 4.01(b) on any given date, the Tax Distributions to such Member shall be increased to ensure that all Distributions made pursuant to this Section 4.01(b) are made pro rata in accordance with Percentage Interests.  If, on a Tax Distribution Date, there are insufficient funds on hand to distribute to the Members the full amount of the Tax Distributions to which such Members are otherwise entitled, Distributions pursuant to this Section 4.01(b) shall be made to the Members to the extent of available funds in accordance with their Percentage Interests and the Company shall make future Tax Distributions as soon as funds become available sufficient to pay the remaining portion of the Tax Distributions to which such Members are otherwise entitled.

 

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(iii)                               In the event of any audit by, or similar event with, a taxing authority that affects the calculation of any Member’s Assumed Tax Liability for any taxable year, or in the event the Company files an amended tax return, each Member’s Assumed Tax Liability with respect to such year shall be recalculated by giving effect to such event (for the avoidance of doubt, taking into account interest or penalties).  Any shortfall in the amount of Tax Distributions the Members and former Members received for the relevant taxable years based on such recalculated Assumed Tax Liability promptly shall be distributed to such Members and the successors of such former Members, except, for the avoidance of doubt, to the extent Distributions were made to such Members and former Members pursuant to Section 4.01(a) and this Section 4.01(b) in the relevant taxable years sufficient to cover such shortfall.

 

(iv)                              Notwithstanding the foregoing, Distributions pursuant to this Section 4.01(b), if any, shall be made to a Member only to the extent all previous Distributions to such Member pursuant to Section 4.01(a) during the Fiscal Year are less than the Distributions such Member otherwise would have been entitled to receive during such Fiscal Year pursuant to this Section 4.01(b).

 

Section 4.02                             Restricted Distributions.  Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make any Distribution to any Member on account of any Company Interest if such Distribution would violate any applicable Law or the terms of the Credit Agreements.

 

ARTICLE V.
 CAPITAL ACCOUNTS; ALLOCATIONS; TAX MATTERS

 

Section 5.01                             Capital Accounts.

 

(a)                                 The Company shall maintain a separate Capital Account for each Member according to the rules of Treasury Regulation Section 1.704-1(b)(2)(iv).  For this purpose, the Company may (in the discretion of the Manager), upon the occurrence of the events specified in Treasury Regulation Section 1.704-1(b)(2)(iv)(f), increase or decrease the Capital Accounts in accordance with the rules of such Treasury Regulation and Treasury Regulation Section 1.704-1(b)(2)(iv)(g) to reflect a revaluation of Company property.  Upon the exercise by any LLC Optionee of its LLC Option, such LLC Optionee’s initial Capital Account shall be equal to the sum of (i) the exercise price paid by such LLC Optionee to the Company in connection with such exercise and (ii) the amount included in such LLC Optionee’s compensation income under Code Section 83 as a result of such exercise.

 

(b)                                 For purposes of computing the amount of any item of Company income, gain, loss or deduction to be allocated pursuant to this Article V and to be reflected in the Capital Accounts of the Members, the determination, recognition and classification of any such item shall be the same as its determination, recognition and classification for U.S. federal income tax purposes (including any method of depreciation, cost recovery or amortization used for this purpose); provided, however, that:

 

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(i)                                     The computation of all items of income, gain, loss and deduction shall include those items described in Code Section 705(a)(l)(B) or Code Section 705(a)(2)(B) and Treasury Regulation Section 1.704-1(b)(2)(iv)(i), without regard to the fact that such items are not includable in gross income or are not deductible for U.S. federal income tax purposes.

 

(ii)                                  If the Book Value of any Company property is adjusted pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(f), the amount of such adjustment shall be taken into account as gain or loss from the disposition of such property.

 

(iii)                               Items of income, gain, loss or deduction attributable to the disposition of Company property having a Book Value that differs from its adjusted basis for tax purposes shall be computed by reference to the Book Value of such property.

 

(iv)                              Items of depreciation, amortization and other cost recovery deductions with respect to Company property having a Book Value that differs from its adjusted basis for tax purposes shall be computed by reference to the property’s Book Value in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(g).

 

(v)                                 To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Sections 732(d), 734(b) or 743(b) is required, pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis).

 

Section 5.02                             Allocations.  Except as otherwise provided in Section 5.03 and Section 5.04, Net Profits and Net Losses for any Fiscal Year or Fiscal Period shall be allocated among the Capital Accounts of the Members pro rata in accordance with their respective Percentage Interests.  For the avoidance of doubt, in accordance with Code Section 706(d)(1), any deductions resulting from the exercise by any LLC Optionee of its LLC Option shall be allocated under a closing of the books method to the Members who were Members of the Company in the Fiscal Period ending on the day immediately prior the day of such exercise.

 

Section 5.03                             Regulatory Allocations.

 

(a)                                 Losses attributable to partner nonrecourse debt (as defined in Treasury Regulation Section 1.704-2(b)(4)) shall be allocated in the manner required by Treasury Regulation Section 1.704-2(i).  If there is a net decrease during a Taxable Year in partner nonrecourse debt minimum gain (as defined in Treasury Regulation Section 1.704-2(i)(3)), Profits for such Taxable Year (and, if necessary, for subsequent Taxable Years) shall be allocated to the Members in the amounts and of such character as determined according to Treasury Regulation Section 1.704-2(i)(4).

 

(b)                                 Nonrecourse deductions (as determined according to Treasury Regulation Section 1.704-2(b)(1)) for any Taxable Year shall be allocated pro rata among the Members in accordance with their Percentage Interests.  Except as otherwise provided in Section 4.03(a), if there is a net decrease in the Minimum Gain during any Taxable Year, each Member shall be 

 

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allocated Profits for such Taxable Year (and, if necessary, for subsequent Taxable Years) in the amounts and of such character as determined according to Treasury Regulation Section 1.704-2(f).  This Section 5.03(b) is intended to be a minimum gain chargeback provision that complies with the requirements of Treasury Regulation Section 1.704-2(f), and shall be interpreted in a manner consistent therewith.

 

(c)                                  If any Member that unexpectedly receives an adjustment, allocation or Distribution described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6) has an Adjusted Capital Account Deficit as of the end of any Taxable Year, computed after the application of Sections 5.03(a) and 5.03(b) but before the application of any other provision of this Article V, then Profits for such Taxable Year shall be allocated to such Member in proportion to, and to the extent of, such Adjusted Capital Account Deficit.  This Section 5.03(c) is intended to be a qualified income offset provision as described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted in a manner consistent therewith.

 

(d)                                 If the allocation of Net Losses to a Member as provided in Section 5.02 would create or increase an Adjusted Capital Account Deficit, there shall be allocated to such Member only that amount of Losses as will not create or increase an Adjusted Capital Account Deficit.  The Net Losses 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 this Section 5.03(d).

 

(e)                                  Profits and Losses described in Section 5.01(b)(v) shall be allocated in a manner consistent with the manner that the adjustments to the Capital Accounts are required to be made pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(j), (k) and (m).

 

(f)                                   The allocations set forth in Section 5.03(a) through and including Section 5.03(e) (the “Regulatory Allocations”) are intended to comply with certain requirements of Sections 1.704-1(b) and 1.704-2 of the Treasury Regulations.  The Regulatory Allocations may not be consistent with the manner in which the Members intend to allocate Profit and Loss of the Company or make Distributions.  Accordingly, notwithstanding the other provisions of this Article V, but subject to the Regulatory Allocations, income, gain, deduction and loss shall be reallocated among the Members so as to eliminate the effect of the Regulatory Allocations and thereby cause the respective Capital Accounts of the Members to be in the amounts (or as close thereto as possible) they would have been if Profit and Loss (and such other items of income, gain, deduction and loss) had been allocated without reference to the Regulatory Allocations.  In general, the Members anticipate that this will be accomplished by specially allocating other Profit and Loss (and such other items of income, gain, deduction and loss) among the Members so that the net amount of the Regulatory Allocations and such special allocations to each such Member is zero.  In addition, if in any Fiscal Year or Fiscal Period there is a decrease in partnership minimum gain, or in partner nonrecourse debt minimum gain, and application of the minimum gain chargeback requirements set forth in Section 5.03(a) or Section 5.03(b) would cause a distortion in the economic arrangement among the Members, the Members may, if they do not expect that the Company will have sufficient other income to correct such distortion, request the Internal Revenue Service to waive either or both of such minimum gain chargeback requirements.  If such request is granted, this Agreement shall be applied in such instance as if it did not contain such minimum gain chargeback requirement.

 

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Section 5.04                             Final Allocations.  Notwithstanding any contrary provision in this Agreement except Section 5.03, the Manager shall make appropriate adjustments to allocations of Profits and Losses to (or, if necessary, allocate items of gross income, gain, loss or deduction of the Company among) the Members upon the liquidation of the Company (within the meaning of Section 1.704 1(b)(2)(ii)(g) of the Treasury Regulations), the transfer of substantially all the Units (whether by sale or exchange or merger) or sale of all or substantially all the assets of the Company, such that, to the maximum extent possible, the Capital Accounts of the Members are proportionate to their Percentage Interests.  In each case, such adjustments or allocations shall occur, to the maximum extent possible, in the Fiscal Year of the event requiring such adjustments or allocations.

 

Section 5.05                             Tax Allocations.

 

(a)                                 The income, gains, losses, deductions and credits of the Company will be allocated, for federal, state and local income tax purposes, among the Members in accordance with the allocation of such income, gains, losses, deductions and credits among the Members for computing their Capital Accounts; provided that if any such allocation is not permitted by the Code or other applicable Law, the Company’s subsequent income, gains, losses, deductions and credits will be allocated among the Members so as to reflect as nearly as possible the allocation set forth herein in computing their Capital Accounts.

 

(b)                                 Items of Company taxable income, gain, loss and deduction with respect to any property contributed to the capital of the Company shall be allocated among the Members in accordance with Code Section 704(c) 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 Book Value using the traditional method, as described in Treasury Regulations Section 1.704-3(b).

 

(c)                                  If the Book Value of any Company asset is adjusted pursuant to Section 5.01(b), subsequent allocations of items of taxable income, gain, loss and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Book Value in the same manner as under Code Section 704(c) using the traditional method, as described in Treasury Regulations Section 1.704-3(b).

 

(d)                                 Allocations of tax credits, tax credit recapture, and any items related thereto shall be allocated to the Members pro rata as determined by the Manager taking into account the principles of Treasury Regulation Section 1.704-1(b)(4)(ii).

 

(e)                                  For purposes of determining a Member’s pro rata share of the Company’s “excess nonrecourse liabilities” within the meaning of Treasury Regulation Section 1.752-3(a)(3), each Member’s interest in income and gain shall be in proportion to the Units held by such Member.

 

(f)                                   Allocations pursuant to this Section 5.05 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 Profits, Losses, Distributions or other Company items pursuant to any provision of this Agreement.

 

Section 5.06                             Indemnification and Reimbursement for Payments on Behalf of a Member.  If the Company is obligated to pay any amount to a Governmental Entity (or otherwise 

 

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makes a payment to a Governmental Entity) that is specifically attributable to a Member or a Member’s status as such (including federal withholding taxes, state personal property taxes and state unincorporated business taxes, but excluding payments such as professional association fees and the like made voluntarily by the Company on behalf of any Member based upon such Member’s status as an employee of the Company), then such Person shall indemnify the Company in full for the entire amount paid (including interest, penalties and related expenses).  The Manager may offset Distributions to which a Person is otherwise entitled under this Agreement against such Person’s obligation to indemnify the Company under this Section 5.06.  A Member’s obligation to make contributions to the Company under this Section 5.06 shall survive the termination, dissolution, liquidation and winding up of the Company, and for purposes of this Section 5.06, the Company shall be treated as continuing in existence.  The Company may pursue and enforce all rights and remedies it may have against each Member under this Section 5.06, including instituting a lawsuit to collect such contribution with interest calculated at a rate per annum equal to the sum of the Base Rate plus 300 basis points (but not in excess of the highest rate per annum permitted by Law).

 

ARTICLE VI.
 MANAGEMENT

 

Section 6.01                             Authority of Manager.

 

(a)                                 Except for situations in which the approval of any Member(s) is specifically required by this Agreement, (i) all management powers over the business and affairs of the Company shall be exclusively vested in the Corporation, as the sole managing member of the Company (the Corporation, in such capacity, the “Manager”) and (ii) the Manager shall conduct, direct and exercise full control over all activities of the Company.  The Manager shall be the “manager” of the Company for the purposes of the Delaware Act.  Except as otherwise expressly provided for herein and subject to the other provisions of this Agreement, the Members hereby consent to the exercise by the Manager of all such powers and rights conferred on the Members by the Delaware Act with respect to the management and control of the Company.  The Corporation may not be removed as a Manager except as provided in Section 6.04.  Any Manager that is properly removed pursuant to Section 6.04 shall be replaced in the manner provided in Section 6.05.  The Original Members terminate as of the Effective Time the “Board” previously established in order to conduct the business of the Company pursuant to the First A&R LLC Agreement (as such term was previously defined in the First A&R LLC Agreement).

 

(b)                                 The day-to-day business and operations of the Company shall be overseen and implemented by officers of the Company (each, an “Officer” and collectively, the “Officers”), subject to the limitations imposed by the Manager.  An Officer may, but need not, be a Member.  Each Officer shall be appointed by the Manager and shall hold office until his or her successor shall be duly designated and shall qualify or until his or her death or until he shall resign or shall have been removed in the manner hereinafter provided.  Any one Person may hold more than one office.  Subject to the other provisions in this Agreement (including in Section 6.08 below), the salaries or other compensation, if any, of the Officers of the Company shall be fixed from time to time by the Manager.  The authority and responsibility of the Officers shall include, but not be limited to, such duties as the Manager may, from time to time, delegate to them and the carrying out of the Company’s business and affairs on a day-to-day basis.  The existing Officers 

 

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of the Company as of the Effective Time shall remain in their respective positions and shall be deemed to have been appointed by the Manager.  All Officers shall be, and shall be deemed to be, officers and employees of the Company.  An Officer may also perform one or more roles as an officer of the Manager.

 

(c)                                  The Manager shall have the power and authority to effectuate the sale, lease, transfer, exchange or other disposition of any, all or substantially all of the assets of the Company (including the exercise or grant of any conversion, option, privilege or subscription right or any other right available in connection with any assets at any time held by the Company) or the merger, consolidation, reorganization or other combination of the Company with or into another entity.

 

Section 6.02                             Actions of the Manager.  The Manager may act through any Officer or through any other Person or Persons to whom authority and duties have been delegated pursuant to Section 6.08.

 

Section 6.03                             Resignation.  The Manager may resign at any time by giving written notice to the Members.  Unless otherwise specified in the notice, the resignation shall take effect upon receipt thereof by the Members, and the acceptance of the resignation shall not be necessary to make it effective.

 

Section 6.04                             Removal.  The Manager may only be removed by the Corporation.

 

Section 6.05                             Vacancies.  Vacancies in the position of Manager occurring for any reason shall be filled by the Corporation (or, if the Corporation has ceased to exist without any successor or assign, then by the holders of a majority in interest of the voting capital stock of the Corporation immediately prior to such cessation).

 

Section 6.06                             Transactions Between Company and Manager.  The Manager may cause the Company to contract and deal with the Manager, or any Affiliate of the Manager, provided such contracts and dealings are on terms comparable to and competitive with those available to the Company from others dealing at arm’s length or are approved by the Members and otherwise are permitted by the Credit Agreements.  The Members hereby approve the IPO Common Unit Purchase Agreement.

 

Section 6.07                             Reimbursement for Expenses.  The Manager shall not be compensated for its services as Manager of the Company except as expressly provided in this Agreement or as otherwise approved by the Members (other than the Manager) holding a majority of the Voting Units (excluding Voting Units held by the Manager) then outstanding.  The Members acknowledge and agree that, upon consummation of the IPO, the Manager’s Class A Common Stock will be publicly traded and therefore the Manager will have access to the public capital markets and that such status and the services performed by the Manager will inure to the benefit of the Company and all Members; therefore, the Manager shall be reimbursed by the Company for any reasonable out-of-pocket expenses incurred on behalf of the Company, including without limitation all fees, expenses and costs associated with the IPO and all fees, expenses and costs of being a public company (including without limitation public reporting obligations, proxy statements, stockholder meetings, stock exchange fees, transfer agent fees, SEC and FINRA 

 

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filing fees and offering expenses) and maintaining its corporate existence.  In the event that shares of Class A Common Stock are sold to underwriters in the IPO (or in any subsequent public offering) at a price per share that is lower than the price per share for which such shares of Class A Common Stock are sold to the public in the IPO (or in such subsequent public offering, as applicable) after taking into account underwriters’ discounts or commissions and brokers’ fees or commissions (such difference, the “Discount”), the Company shall reimburse the Manager for such Discount by treating such Discount as an additional Capital Contribution made by the Manager to the Company and increasing the Manager’s Capital Account by the amount of such Discount.  To the extent practicable, expenses incurred by the Manager on behalf of or for the benefit of the Company shall be billed directly to and paid by the Company and, if and to the extent any reimbursements to the Manager or any of its Affiliates by the Company pursuant to this Section 6.07 constitute gross income to such Person (as opposed to the repayment of advances made by such Person on behalf of the Company), such amounts shall be treated as “guaranteed payments” within the meaning of Code Section 707(c) and shall not be treated as distributions for purposes of computing the Members’ Capital Accounts.

 

Section 6.08                             Delegation of Authority.  The Manager (a) may, from time to time, delegate to one or more Persons such authority and duties as the Manager may deem advisable, and (b) may assign titles (including, without limitation, chief executive officer, president, chief executive officer, chief financial officers, chief operating officer, vice president, secretary, assistant secretary, treasurer or assistant treasurer) and delegate certain authority and duties to such Persons as the same may be amended, restated or otherwise modified from time to time.  Any number of titles may be held by the same individual.  The salaries or other compensation, if any, of such agents of the Company shall be fixed from time to time by the Manager, subject to the other provisions in this Agreement.

 

Section 6.09                             Limitation of Liability of Manager.

 

(a)                                 Except as otherwise provided herein or in an agreement entered into by such Person and the Company, neither the Manager nor any of the Manager’s Affiliates shall be liable to the Company or to any Member that is not the Manager for any act or omission performed or omitted by the Manager in its capacity as the sole managing member of the Company pursuant to authority granted to the Manager by this Agreement; provided, however, that, except as otherwise provided herein, such limitation of liability shall not apply to the extent the act or omission was attributable to the Manager’s gross negligence, willful misconduct or knowing violation of Law or for any present or future breaches of any representations, warranties or covenants by the Manager or its Affiliates contained herein or in the other agreements with the Company.  The Manager may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its agents, and shall not be responsible for any misconduct or negligence on the part of any such agent (so long as such agent was selected in good faith and with reasonable care).  The Manager shall be entitled to rely upon the advice of legal counsel, independent public accountants and other experts, including financial advisors, and any act of or failure to act by the Manager in good faith reliance on such advice shall in no event subject the Manager to liability to the Company or any Member that is not the Manager.

 

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(b)                                 Whenever this Agreement or any other agreement contemplated herein provides that the Manager shall act in a manner which is, or provide terms which are, “fair and reasonable” to the Company or any Member that is not the Manager, the Manager shall determine such appropriate action or provide such terms considering, in each case, the relative interests of each party to such agreement, transaction or situation and the benefits and burdens relating to such interests, any customary or accepted industry practices, and any applicable United States generally accepted accounting practices or principles.

 

(c)                                  Whenever in this Agreement or any other agreement contemplated herein, the Manager is permitted or required to take any action or to make a decision in its “sole discretion” or “discretion,” with “complete discretion” or under a grant of similar authority or latitude, the Manager shall be entitled to consider such interests and factors as it desires, including its own interests, and shall, to the fullest extent permitted by applicable Law, have no duty or obligation to give any consideration to any interest of or factors affecting the Company or other Members.

 

(d)                                 Whenever in this Agreement the Manager is permitted or required to take any action or to make a decision in its “good faith” or under another express standard, the Manager shall act under such express standard and, to the extent permitted by applicable Law, shall not be subject to any other or different standards imposed by this Agreement or any other agreement contemplated herein, and, notwithstanding anything contained herein to the contrary, so long as the Manager acts in good faith, the resolution, action or terms so made, taken or provided by the Manager shall not constitute a breach of this Agreement or any other agreement contemplated herein or impose liability upon the Manager or any of the Manager’s Affiliates.

 

Section 6.10                             Investment Company Act.  The Manager shall use its best efforts to ensure that the Company shall not be subject to registration as an investment company pursuant to the Investment Company Act.

 

Section 6.11                             Outside Activities of the Manager.  The Manager shall not, directly or indirectly, enter into or conduct any business or operations, other than in connection with (a) the ownership, acquisition and disposition of Common Units, (b) the management of the business and affairs of the Company and its Subsidiaries, (c) the operation of the Manager as a reporting company with a class (or classes) of securities registered under Section 12 of  the Exchange Act and listed on a securities exchange, (d) the offering, sale, syndication, private placement or public offering of stock, bonds, securities or other interests, (e) financing or refinancing of any type related to the Company, its Subsidiaries or their assets or activities, and (f) such activities as are incidental to the foregoing; provided, however, that, except as otherwise provided herein, the net proceeds of any financing raised by the Manager pursuant to the preceding clauses (d) and (e) shall be made available to the Company, whether as Capital Contributions, loans or otherwise, as appropriate, and, provided further, that the Manager may, in its sole and absolute discretion, from time to time hold or acquire assets in its own name or otherwise other than through the Company and its Subsidiaries so long as the Manager takes commercially reasonable measures to ensure that the economic benefits and burdens of such assets are otherwise vested in the Company or its Subsidiaries, through assignment, mortgage loan or otherwise or, if it is not commercially reasonable to vest such economic interests in the Company or any of its Subsidiaries, the Members shall negotiate in good faith to amend this Agreement to reflect such activities and the direct ownership of assets by the Manager.  Nothing contained herein shall be 

 

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deemed to prohibit the Manager from executing any guarantee of indebtedness of the Company or its Subsidiaries.

 

ARTICLE VII.
 RIGHTS AND OBLIGATIONS OF MEMBERS

 

Section 7.01                             Limitation of Liability and Duties of Members.

 

(a)                                 Except as provided in this Agreement or in the Delaware 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 (including without limitation, the Manager) shall be obligated personally for any such debts, obligation or liability solely by reason of being a Member or acting as the Manager of the Company.  Except as otherwise provided in this Agreement, a Member’s liability (in its capacity as such) for Company liabilities and Losses shall be limited to the Company’s assets.  Notwithstanding anything contained herein to the contrary, the failure of the Company to observe any formalities or requirements relating to the exercise of its powers or management of its business and affairs under this Agreement or the Delaware Act shall not be grounds for imposing personal liability on the Members for liabilities of the Company.

 

(b)                                 In accordance with the Delaware Act and the laws of the State of Delaware, a Member may, under certain circumstances, be required to return amounts previously distributed to such Member.  It is the intent of the Members that no Distribution to any Member pursuant to Article IV shall be deemed a return of money or other property paid or distributed in violation of the Delaware Act.  The payment of any such money or Distribution of any such property to a Member shall be deemed to be a compromise within the meaning of Section 18-502(b) of the Delaware Act, and, to the fullest extent permitted by Law, any Member receiving any such money or property shall not be required to return any such money or property to the Company or any other Person.  However, if any court of competent jurisdiction holds that, notwithstanding the provisions of this Agreement, any Member is obligated to make any such payment, such obligation shall be the obligation of such Member and not of any other Member.

 

(c)                                  Notwithstanding any other provision of this Agreement, to the extent that, at law or in equity, any Member (or any Member’s Affiliate or any manager, managing member, general partner, director, officer, employee, agent, fiduciary or trustee of any Member or of any Affiliate of a Member) has duties (including fiduciary duties) to the Company, to the Manager, to another Member, to any Person who acquires an interest in a Company Interest or to any other Person bound by this Agreement, all such duties (including fiduciary duties) are hereby eliminated, to the fullest extent permitted by law, and replaced with the duties or standards expressly set forth herein, if any.  The elimination of duties (including fiduciary duties) to the Company, the Manager, each of the Members, each other Person who acquires an interest in a Company Interest and each other Person bound by this Agreement and replacement thereof with the duties or standards expressly set forth herein, if any, are approved by the Company, the Manager, each of the Members, each other Person who acquires an interest in a Company Interest and each other Person bound by this Agreement.

 

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Section 7.02                             Lack of Authority.  No Member, other than the Manager or a duly appointed Officer, in each case in its capacity as such, has the authority or power to act for or on behalf of the Company, to do any act that would be binding on the Company or to make any expenditure on behalf of the Company.  The Members hereby consent to the exercise by the Manager of the powers conferred on them by Law and this Agreement.

 

Section 7.03                             No Right of Partition.  No Member, other than the Manager, shall have the right to seek or obtain partition by court decree or operation of Law of any Company property, or the right to own or use particular or individual assets of the Company.

 

Section 7.04                             Indemnification.

 

(a)                                 Subject to Section 5.06, the Company hereby agrees to indemnify and hold harmless any Person (each an “Indemnified Person”) to the fullest extent permitted under the Delaware Act, as the same now exists or may hereafter be amended, substituted or replaced (but, in the case of any such amendment, substitution or replacement only to the extent that such amendment, substitution or replacement permits the Company to provide broader indemnification rights than the Company is providing immediately prior to such amendment), against all expenses, liabilities and losses (including attorneys’ fees, judgments, fines, excise taxes or penalties) reasonably incurred or suffered by such Person (or one or more of such Person’s Affiliates) by reason of the fact that such Person is or was a Member or is or was serving as the Manager, Officer, employee or other agent of the Company or is or was serving at the request of the Company as a manager, officer, director, principal, member, employee or agent of another corporation, partnership, joint venture, limited liability company, trust or other enterprise; provided, however, that no Indemnified Person shall be indemnified for any expenses, liabilities and losses suffered that are attributable to such Indemnified Person’s or its Affiliates’ gross negligence, willful misconduct or knowing violation of Law or for any present or future breaches of any representations, warranties or covenants by such Indemnified Person or its Affiliates contained herein or in the other agreements with the Company.  Expenses, including attorneys’ fees, incurred by any such Indemnified Person in defending a proceeding shall be paid by the Company in advance of the final disposition of such proceeding, including any appeal therefrom, upon receipt of an undertaking by or on behalf of such Indemnified Person to repay such amount if it shall ultimately be determined that such Indemnified Person is not entitled to be indemnified by the Company.

 

(b)                                 The right to indemnification and the advancement of expenses conferred in this Section 7.04 shall not be exclusive of any other right which any Person may have or hereafter acquire under any statute, agreement, bylaw, action by the Manager or otherwise.

 

(c)                                  The Company shall maintain directors’ and officers’ liability insurance, or substantially equivalent insurance, at its expense, to protect any Indemnified Person (and the investment funds, if any, they represent) against any expense, liability or loss described in Section 7.04(a) whether or not the Company would have the power to indemnify such Indemnified Person against such expense, liability or loss under the provisions of this Section 7.04.  The Company shall use its commercially reasonable efforts to purchase and maintain property, casualty and liability insurance in types and at levels customary for companies of similar size engaged in similar lines of business, as determined in good faith by the Manager, and 

 

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the Company shall use its commercially reasonable efforts to purchase directors’ and officers’ liability insurance (including employment practices coverage) with a carrier and in an amount determined necessary or desirable as determined in good faith by the Manager.

 

(d)                                 Notwithstanding anything contained herein to the contrary (including in this Section 7.04), any indemnity by the Company relating to the matters covered in this Section 7.04 shall be provided out of and to the extent of Company assets only and no Member (unless such Member otherwise agrees in writing or is found in a final decision by a court of competent jurisdiction to have personal liability on account thereof) shall have personal liability on account thereof or shall be required to make additional Capital Contributions to help satisfy such indemnity of the Company.

 

(e)                                  If this Section 7.04 or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify and hold harmless each Indemnified Person pursuant to this Section 7.04 to the fullest extent permitted by any applicable portion of this Section 7.04 that shall not have been invalidated and to the fullest extent permitted by applicable Law.

 

Section 7.05                             Members Right to Act.  For matters that require the approval of the Members, the Members shall act through meetings and written consents as described in paragraphs (a) and (b) below:

 

(a)                                 Except as otherwise expressly provided by this Agreement, acts by the Members holding a majority of the Units, voting together as a single class, shall be the acts of the Members.  Any Member entitled to vote at a meeting of Members or to express consent or dissent to Company action in writing without a meeting may authorize another person or persons to act for it by proxy.  An electronic mail, telegram, telex, cablegram or similar transmission by the Member, or a photographic, photostatic, facsimile or similar reproduction of a writing executed by the Member shall (if stated thereon) be treated as a proxy executed in writing for purposes of this Section 7.05(a).  No proxy shall be voted or acted upon after eleven months from the date thereof, unless the proxy provides for a longer period.  A proxy shall be revocable unless the proxy form conspicuously states that the proxy is irrevocable and that the proxy is coupled with an interest.  Should a proxy designate two or more Persons to act as proxies, unless that instrument shall provide to the contrary, a majority of such Persons present at any meeting at which their powers thereunder are to be exercised shall have and may exercise all the powers of voting or giving consents thereby conferred, or, if only one be present, then such powers may be exercised by that one; or, if an even number attend and a majority do not agree on any particular issue, the Company shall not be required to recognize such proxy with respect to such issue if such proxy does not specify how the votes that are the subject of such proxy are to be voted with respect to such issue.

 

(b)                                 The actions by the Members permitted hereunder may be taken at a meeting called by the Manager or by the Members holding a majority of the Units entitled to vote on such matter on at least 48 hours’ prior written notice to the other Members entitled to vote, which notice shall state the purpose or purposes for which such meeting is being called.  The actions taken by the Members entitled to vote or consent at any meeting (as opposed to by written consent), however called and noticed, shall be as valid as though taken at a meeting duly held 

 

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after regular call and notice if (but not until), either before, at or after the meeting, the Members entitled to vote or consent as to whom it was improperly held signs a written waiver of notice or a consent to the holding of such meeting or an approval of the minutes thereof.  The actions by the Members entitled to vote or consent may be taken by vote of the Members entitled to vote or consent at a meeting or by written consent, so long as such consent is signed by Members having not less than the minimum number of Units 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 the action so taken, which shall state the purpose or purposes for which such consent is required and may be delivered via email, without a meeting shall be given to those Members entitled to vote or consent who have not consented in writing; provided, however, that the failure to give any such notice shall not affect the validity of the action taken by such written consent.  Any action taken pursuant to such written consent of the Members shall have the same force and effect as if taken by the Members at a meeting thereof.

 

Section 7.06                             Inspection Rights.  The Company shall permit each Member and each of its designated representatives to (i) visit and inspect any of the properties of the Company and its Subsidiaries, all at reasonable times and upon reasonable notice, (ii) examine the corporate and financial records of the Company or any of its Subsidiaries and make copies thereof or extracts therefrom, (iii) consult with the managers, officers, employees and independent accountants of the Company or any of its Subsidiaries concerning the affairs, finances and accounts of the Company or any of its Subsidiaries.  The presentation of an executed copy of this Agreement by any Member to the Company’s independent accountants shall constitute the Company’s permission to its independent accountants to participate in discussions with such Persons and their respective designated representatives.

 

ARTICLE VIII.
 BOOKS, RECORDS, ACCOUNTING AND REPORTS, AFFIRMATIVE COVENANTS

 

Section 8.01                             Records and Accounting.  The Company shall keep, or cause to be kept, appropriate books and records with respect to the Company’s business, including all books and records necessary to provide any information, lists and copies of documents required to be provided pursuant to Section 8.03 or pursuant to applicable Laws.  All matters concerning (a) the determination of the relative amount of allocations and Distributions among the Members pursuant to Articles III and IV and (b) accounting procedures and determinations, and other determinations not specifically and expressly provided for by the terms of this Agreement, shall be determined by the Manager, whose determination shall be final and conclusive as to all of the Members absent manifest clerical error.

 

Section 8.02                             Fiscal Year.  The Fiscal Year of the Company shall end on December 31 of each year or such other date as may be established by the Manager.

 

Section 8.03                             Reports.  The Company shall deliver or cause to be delivered, within ninety (90) days after the end of each Fiscal Year, to each Person who was a Member at any time during such Fiscal Year, all information reasonably necessary for the preparation of such Person’s United States federal and applicable state income tax returns.

 

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ARTICLE IX.
 TAX MATTERS

 

Section 9.01                             Preparation of Tax Returns.  The Company shall arrange for the preparation and timely filing of all tax returns required to be filed by the Company.  On or before March 15, June 15, September 15, and December 15 of each Fiscal Year, the Company shall send to each Person who was a Member at any time during the prior quarter, an estimate of such Member’s state tax apportionment information and allocations to the Members of taxable income, gains, losses, deductions and credits for the prior quarter, which estimate shall have been reviewed by the Company’s outside tax accountants.  In addition, no later than the later of (i) March 15 following the end of the prior Fiscal Year, and (ii) five (5) Business Days after the issuance of the final audit report for a Fiscal Year by the Company’s auditors, the Company shall send to each Person who was a Member at any time during such Fiscal Year, a statement showing such Member’s final state tax apportionment information and allocations to the Members of taxable income, gains, losses, deductions and credits for such Fiscal Year and a completed IRS Schedule K-1.  Each Member shall notify the other Members upon receipt of any notice of tax examination of the Company by federal, state or local authorities.  Subject to the terms and conditions of this Agreement, in its capacity as Tax Matters Partner, the Corporation shall have the authority to prepare the tax returns of the Company using such permissible methods and elections as it determines in its reasonable discretion, including without limitation the use of any permissible method under Section 706 of the Code for purposes of determining the varying Company Interests of its Members.

 

Section 9.02                             Tax Elections.  The Taxable Year shall be the Fiscal Year set forth in Section 8.02.  The Company shall make an election pursuant to Section 754 of the Code, shall not thereafter revoke such election and shall make a new election pursuant to Section 754 to the extent necessary following any “termination” of the Company under Section 708 of the Code.  Each Member will upon request supply any information reasonably necessary to give proper effect to any such elections.

 

Section 9.03                             Tax Controversies.  The Corporation is hereby designated the Tax Matters Partner within the meaning given to such term in Section 6231 of the Code (the Corporation, in such capacity, the “Tax Matters Partner”) and is authorized and required to represent the Company (at the Company’s expense) in connection with all examinations of the Company’s affairs by tax authorities, including resulting administrative and judicial proceedings, and to expend Company funds for professional services reasonably incurred in connection therewith.  Each Member agrees to cooperate with the Company and to do or refrain from doing any or all things reasonably requested by the Company with respect to the conduct of such proceedings.  The Tax Matters Partners shall keep all Members fully informed of the progress of any examinations, audits or other proceedings, and all Members shall have the right to participate at their expense in any such examinations, audits or other proceedings.  Notwithstanding the foregoing, the Tax Matters Partners shall not settle or otherwise compromise any issue in any such examination, audit or other proceeding without first obtaining approval of the Manager.  Nothing herein shall diminish, limit or restrict the rights of any Member under Subchapter C, Chapter 63, Subtitle F of the Code (Code Sections 6221 et seq.).

 

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ARTICLE X.
 RESTRICTIONS ON TRANSFER OF UNITS; PREEMPTIVE RIGHTS

 

Section 10.01                      Transfers by Members.  No holder of Units may Transfer any interest in any Units, except Transfers (a) pursuant to and in accordance with Section 10.02 or (b) approved in writing by the Manager.  Notwithstanding the foregoing, “Transfer” shall not include an event that terminates the existence of a Member for income tax purposes (including, without limitation, a change in entity classification of a Member under Treasury Regulations Section 301.7701-3, termination of a partnership pursuant to Code Section 708(b)(1)(B), a sale of assets by, or liquidation of, a Member pursuant to an election under Code Section 338, or merger, severance, or allocation within a trust or among sub-trusts of a trust that is a Member), but that does not terminate the existence of such Member under applicable state law (or, in the case of a trust that is a Member, does not terminate the trusteeship of the fiduciaries under such trust with respect to all the Company Interests of such trust that is a Member).

 

Section 10.02                      Permitted Transfers.  The restrictions contained in Section 10.01 shall not apply to any Transfer (each, a “Permitted Transfer”) (i) pursuant to (A) a Change of Control Transaction, (B) a Redemption or Exchange in accordance with Article XI hereof or (C) a Transfer by a member to the Corporation or any of its Subsidiaries (including without limitation pursuant to Article XI hereof), (ii) by any Member to such Member’s spouse, any lineal ascendants or descendants or trusts or other entities in which such Member or Member’s spouse, lineal ascendants or descendants hold (and continue to hold while such trusts or other entities hold Units) 50% or more of such entity’s beneficial interests, (iii) pursuant to the laws of descent and distribution and (iv) if such Transfer is made by an Original Member, to a partner, shareholder or member of such Original Member; provided, however, that (A) the restrictions contained in this Agreement will continue to apply to Units after any Permitted Transfer of such Units, and (B) in the case of the foregoing clauses (ii), (iii) and (iv), the transferees of the Units so Transferred shall agree in writing to be bound by the provisions of this Agreement and, the transferor will deliver a written notice to the Company and the Members, which notice will disclose in reasonable detail the identity of the proposed transferee.  In the case of a Permitted Transfer by any Original Member of Common Units to a transferee in accordance with this Section 10.02, such Original Member (or any subsequent transferee of such Original Member) shall be required to also transfer the fraction of its remaining Class B Common Stock ownership corresponding to the proportion of such Original Member’s (or subsequent transferee’s) Common Units that were transferred in the transaction to such transferee.  All Permitted Transfers are subject to the additional limitations set forth in Section 10.07(b).

 

Section 10.03                      Restricted Units Legend.  The Units have not been registered under the Securities Act and, therefore, in addition to the other restrictions on Transfer contained in this Agreement, cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is then available.  To the extent such Units have been certificated, each certificate evidencing Units and each certificate issued in exchange for or upon the Transfer of any Units (if such securities remain Units as defined herein after such Transfer) shall be stamped or otherwise imprinted with a legend in substantially the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED ON [•], 2014, AND HAVE NOT BEEN REGISTERED UNDER THE

 

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SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER.  THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER SPECIFIED IN THE SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF NEFF HOLDINGS LLC, AS MAY BE AMENDED AND MODIFIED FROM TIME TO TIME, AND NEFF HOLDINGS LLC RESERVES THE RIGHT TO REFUSE THE TRANSFER OF SUCH SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH RESPECT TO ANY TRANSFER.  A COPY OF SUCH CONDITIONS SHALL BE FURNISHED BY NEFF HOLDINGS LLC TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE.”

 

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

 

Section 10.04                      Transfer.  Prior to Transferring any Units (other than pursuant to a Change of Control Transaction), the Transferring Holder of Units shall cause the prospective Transferee to be bound by this Agreement and any other agreements executed by the holders of Units and relating to such Units in the aggregate (collectively, the “Other Agreements”), and shall cause the prospective Transferee to execute and deliver to the Company and the other holders of Units counterparts of this Agreement and any applicable Other Agreements.  Any Transfer or attempted Transfer of any Units in violation of any provision of this Agreement (including any prohibited indirect Transfers) (a) shall be void, and (b) the Company shall not record such Transfer on its books or treat any purported Transferee of such Units as the owner of such securities for any purpose.

 

Section 10.05                      Assignee’s Rights.

 

(a)                                 The Transfer of a Company Interest in accordance with this Agreement shall be effective as of the date of its assignment (assuming compliance with all of the conditions to such Transfer set forth herein), and such Transfer shall be shown on the books and records of the Company.  Profits, Losses and other Company items shall be allocated between the transferor and the Assignee according to Code Section 706, using any permissible method as determined in the reasonable discretion of the Manager.  Distributions made before the effective date of such Transfer shall be paid to the transferor, and Distributions made after such date shall be paid to the Assignee.

 

(b)                                 Unless and until an Assignee becomes a Member pursuant to Article XII, the Assignee shall not be entitled to any of the rights granted to a Member hereunder or under applicable Law, other than the rights granted specifically to Assignees pursuant to this Agreement; provided, however, that, without relieving the transferring Member from any such limitations or obligations as more fully described in Section 10.06, such Assignee shall be bound by any limitations and obligations of a Member contained herein that a Member would be bound

 

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on account of the Assignee’s Company Interest (including the obligation to make Capital Contributions on account of such Company Interest).

 

Section 10.06                      Assignor’s Rights and Obligations.  Any Member who shall Transfer any Company Interest in a manner in accordance with this Agreement shall cease to be a Member with respect to such Units or other interest and shall no longer have any rights or privileges, or, except as set forth in this Section 10.06, duties, liabilities or obligations, of a Member with respect to such Units or other interest (it being understood, however, that the applicable provisions of Sections 6.09 and 7.04 shall continue to inure to such Person’s benefit), except that unless and until the Assignee (if not already a Member) is admitted as a Substituted Member in accordance with the provisions of Article XII (the “Admission Date”), (i) such assigning Member shall retain all of the duties, liabilities and obligations of a Member with respect to such Units or other interest, and (ii) the Manager may, in its sole discretion, reinstate all or any portion of the rights and privileges of such Member with respect to such Units or other interest for any period of time prior to the Admission Date.  Nothing contained herein shall relieve any Member who Transfers any Units or other interest in the Company from any liability of such Member to the Company with respect to such Company Interest that may exist on the Admission Date or that is otherwise specified in the Delaware Act and incorporated into this Agreement or for any liability to the Company or any other Person for any materially false statement made by such Member (in its capacity as such) or for any present or future breaches of any representations, warranties or covenants by such Member (in its capacity as such) contained herein or in the other agreements with the Company.

 

Section 10.07                      Overriding Provisions.

 

(a)                                 Any Transfer in violation of this Article X shall be null and void ab initio, and the provisions of Sections 10.05 and 10.06 shall not apply to any such Transfers.  For the avoidance of doubt, any Person to whom a Transfer is made or attempted in violation of this Article X shall not become a Member, shall not be entitled to vote on any matters coming before the Members and shall not have any other rights in or with respect to any rights of a Member of the Company.  The approval of any Transfer in any one or more instances shall not limit or waive the requirement for such approval in any other or future instance.  The Manager shall promptly amend the Schedule of Members to reflect any Permitted Transfer pursuant to this Article X.

 

(b)                                 Notwithstanding anything contained herein to the contrary (including, for the avoidance of doubt, the provisions of Section 10.01 and Article XI and Article XII), in no event shall any Member Transfer any Units to the extent such Transfer would:

 

(i)                                     result in the violation of the Securities Act, or any other applicable federal, state or foreign Laws;

 

(ii)                                  cause an assignment under the Investment Company Act;

 

(iii)                               in the reasonable determination of the Manager, be a violation of or a default (or an event that, with notice or the lapse of time or both, would constitute a default) under, or result in an acceleration of any indebtedness under, any promissory note, mortgage, loan agreement, indenture or similar instrument or agreement to which

 

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the Company or the Manager is a party; provided that (x) the payee or creditor to whom the Company or the Manager owes such obligation is not an affiliate of the Company or the Manager and (y) such indebtedness, individually or in the aggregate, has an aggregate principal amount then outstanding that is greater than $25,000,000;

 

(iv)                              cause the Company to lose its status as a partnership for federal income tax purposes and, without limiting the generality of the foregoing, such Transfer was effected on or through an “established securities market” or a “secondary market or the substantial equivalent thereof,” as such terms are used in Section 1.7704-1 of the Treasury Regulations;

 

(v)                                 be a Transfer to a Person who is not legally competent or who has not achieved his or her majority under applicable Law (excluding trusts for the benefit of minors);

 

(vi)                              cause the Company to be treated as a “publicly traded partnership” or to be taxed as a corporation pursuant to Section 7704 of the Code or successor provision of the Code; or

 

(vii)                           result in the Company having more than one hundred (100) partners, within the meaning of Treasury Regulations Section 1.7704-1(h)(1) (determined pursuant to the rules of Treasury Regulations Section 1.7704-1(h)(3)).

 

ARTICLE XI.
 REDEMPTION AND EXCHANGE RIGHTS

 

Section 11.01                      Redemption Right of a Member and LLC Optionee.

 

(a)                                 Each Member (other than the Corporation) and each LLC Optionee (in connection with its exercise of an LLC Option) shall be entitled to cause the Company to redeem (a “Redemption”) its Common Units (the “Redemption Right”) at any time following the expiration of the lock-up period under the lock-up agreements, dated as of [•], 2014, executed by each Original Member and each Original LLC Optionee.  A Member or LLC Optionee desiring to exercise its Redemption Right (the “Redeeming Member”) shall exercise such right by giving written notice (the “Redemption Notice”) to the Company with a copy to the Corporation.  The Redemption Notice shall specify the number of Common Units (the “Redeemed Units”) that the Redeeming Member intends to have the Company redeem and a date, not less than seven (7) Business Days nor more than ten (10) Business Days after delivery of such Redemption Notice (unless and to the extent that the Manager in its sole discretion agrees in writing to waive such time periods), on which exercise of the Redemption Right shall be completed (the “Redemption Date”); provided that the Company, the Corporation and the Redeeming Member may change the number of Redeemed Units and/or the Redemption Date specified in such Redemption Notice to another number and/or date by mutual agreement signed in writing by each of them; provided further that a Redemption Notice may be conditioned on the closing of an underwritten distribution of the shares of Class A Common Stock that may be issued in connection with such proposed Redemption.  Unless the Redeeming Member timely has delivered a Retraction Notice as provided in Section 11.01(b) or has revoked or delayed a Redemption as provided in Section

 

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11.01(c), on the Redemption Date (to be effective immediately prior to the close of business on the Redemption Date) (i) only in the case of an LLC Optionee, the Redeeming Member shall have completed its exercised of an LLC Option for a corresponding number of Units subject to the Redemption Notice, (ii) the Redeeming Member shall transfer and surrender the Redeemed Units to the Company, free and clear of all liens and encumbrances (which in the case of an LLC Optionee will be deemed to be delivered by the Company in lieu of delivery of the Units underlying the LLC Option to the LLC Optionee), and (ii) the Company shall (x) cancel the Redeemed Units, (y) transfer to the Redeeming Member the consideration to which the Redeeming Member is entitled under Section 11.01(b), and (z), if the Units are certificated, issue to the Redeeming Member a certificate for a number of Common Units equal to the difference (if any) between the number of Common Units evidenced by the certificate surrendered by the Redeeming Member pursuant to clause (i) of this Section 11.01(a) and the Redeemed Units.

 

(b)                                 In exercising its Redemption Right, a Redeeming Member shall be entitled to receive the Share Settlement or the Cash Settlement; provided that the Corporation shall have the option as provided in Section 11.02 and subject to Section 11.01(d) to select whether the redemption payment is made by means of a Share Settlement or a Cash Settlement.  Within three (3) Business Days of delivery of the Redemption Notice, the Corporation shall give written notice (the “Contribution Notice”) to the Company (with a copy to the Redeeming Member) of its intended settlement method; provided that if the Corporation does not timely deliver a Contribution Notice, the Corporation shall be deemed to have elected the Share Settlement method.  If the Corporation elects the Cash Settlement method, the Redeeming Member may retract its Redemption Notice by giving written notice (the “Retraction Notice”) to the Company (with a copy to the Corporation) within two (2) Business Days of delivery of the Contribution Notice.  The timely delivery of a Retraction Notice shall terminate all of the Redeeming Member’s, Company’s and the Corporation’ rights and obligations under this Section 11.01 arising from the Redemption Notice.

 

(c)                                  In the event the Corporation elects a Share Settlement in connection with a Redemption, a Redeeming Member shall be entitled to revoke its Redemption Notice or delay the consummation of a Redemption if any of the following conditions exists: (i) any registration statement pursuant to which the resale of the Class A Common Stock to be registered for such Redeeming Member at or immediately following the consummation of the Redemption shall have ceased to be effective pursuant to any action or inaction by the SEC or no such resale registration statement has yet become effective; (ii) the Corporation shall have failed to cause any related prospectus to be supplemented by any required prospectus supplement necessary to effect such Redemption; (iii) the Corporation shall have exercised its right to defer, delay or suspend the filing or effectiveness of a registration statement and such deferral, delay or suspension shall affect the ability of such Redeeming Member to have its Class A Common Stock registered at or immediately following the consummation of the Redemption; (iv) the Corporation shall have disclosed to such Redeeming Member any material non-public information concerning the Corporation, the receipt of which results in such Redeeming Member being prohibited or restricted from selling Class A Common Stock at or immediately following the Redemption without disclosure of such information (and the Corporation does not permit disclosure); (v) any stop order relating to the registration statement pursuant to which the Class A Common Stock was to be registered by such Redeeming Member at or immediately following the Redemption shall have been issued by the SEC; (vi) there shall have occurred a material

 

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disruption in the securities markets generally or in the market or markets in which the Class A Common Stock is then traded; (vii) there shall be in effect an injunction, a restraining order or a decree of any nature of any Governmental Entity that restrains or prohibits the Redemption; (viii) the Corporation shall have failed to comply in all material respects with its obligations under the Registration Rights Agreement, and such failure shall have affected the ability of such Redeeming Member to consummate the resale of Class A Common Stock to be received upon such redemption pursuant to an effective registration statement; (ix) the Redemption Date would occur three (3) Business Days or less prior to, or during, a Black-Out Period; provided further, that in no event shall the Redeeming Member seeking to revoke its Redemption Notice or delay the consummation of such Redemption and relying on any of the matters contemplated in clauses (i) through (ix) above have controlled or intentionally influenced any facts, circumstances, or Persons in connection therewith (except in the good faith performance of his or her duties as an officer or director of the Corporation) in order to provide such Redeeming Member with a basis for such delay or revocation.  If a Redeeming Member delays the consummation of a Redemption pursuant to this Section 11.01(c), the Redemption Date shall occur on the fifth Business Day following the date on which the conditions giving rise to such delay cease to exist (or such earlier day as the Corporation, the Company and such Redeeming Member may agree in writing).

 

(d)                                 The number of shares of Class A Common Stock or the Redeemed Units Equivalent that a Redeeming Member is entitled to receive under Section 11.01(b) (whether through a Share Settlement or Cash Settlement) shall not be adjusted on account of any Distributions previously made with respect to the Redeemed Units or dividends previously paid with respect to Class A Common Stock; provided, however, that if a Redeeming Member (other than an LLC Optionee) causes the Company to redeem Redeemed Units and the Redemption Date occurs subsequent to the record date for any Distribution with respect to the Redeemed Units but prior to payment of such Distribution, the Redeeming Member shall be entitled to receive such Distribution with respect to the Redeemed Units on the date that it is made notwithstanding that the Redeeming Member transferred and surrendered the Redeemed Units to the Company prior to such date.

 

(e)                                  In the event of a reclassification or other similar transaction as a result of which the shares of Class A Common Stock are converted into another security, then in exercising it Redemption Right a Redeeming Member shall be entitled to receive the amount of such security that the Redeeming Member would have received if such Redemption Right had been exercised and the Redemption Date had occurred immediately prior to the record date of such reclassification or other similar transaction.

 

Section 11.02                      Election and Contribution of the Corporation.  In connection with the exercise of a Redeeming Member’s Redemption Rights under Section 11.01(a), the Corporation shall contribute to the Company the consideration the Redeeming Member is entitled to receive under Section 11.01(b).  The Corporation, at its option, shall determine whether to contribute, pursuant to Section 11.01(b), the Share Settlement or the Cash Settlement.  Unless the Redeeming Member has timely delivered a Retraction Notice as provided in Section 11.01(b), or has revoked or delayed a Redemption as provided in Section 11.01(c), on the Redemption Date (to be effective immediately prior to the close of business on the Redemption Date) (i) the Corporation shall make its Capital Contribution to the Company (in the form of the Share

 

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Settlement or the Cash Settlement) required under this Section 11.02, and (ii) the Company shall issue to the Corporation a number of Common Units equal to the number of Redeemed Units surrendered by the Redeeming Member.  Notwithstanding any other provisions of this Agreement to the contrary, in the event that the Corporation elects a Cash Settlement, the Corporation shall only be obligated to contribute to the Company an amount in respect of such Cash Settlement equal to the net proceeds (after deduction of any underwriters’ discounts or commissions and brokers’ fees or commissions) from the sale by the Corporation of a number of shares of Class A Common Stock equal to the number of Redeemed Units to be redeemed with such Cash Settlement provided that the Corporation’s Capital Account shall be increased by an amount equal to any Discount relating to such sale of shares of Class A Common Stock in accordance with Section 6.07.  The timely delivery of a Retraction Notice shall terminate all of the Company’s and the Corporation’ rights and obligations under this Section 11.02 arising from the Redemption Notice.

 

Section 11.03                      Exchange Right of the Corporation.

 

(a)                                 Notwithstanding anything to the contrary in this Article XI, the Corporation may, in its sole and absolute discretion, elect to effect on the Redemption Date the exchange of Redeemed Units for the Share Settlement or Cash Settlement, as the case may be, through a direct exchange of such Redeemed Units and such consideration between the Redeeming Member and the Corporation (a “Direct Exchange”).  Upon such Direct Exchange pursuant to this Section 11.03, the Corporation shall acquire the Redeemed Units and shall be treated for all purposes of this Agreement as the owner of such Units.

 

(b)                                 The Corporation may, at any time prior to a Redemption Date, deliver written notice (an “Exchange Election Notice”) to the Company and the Redeeming Member setting forth its election to exercise its right to consummate a Direct Exchange; provided that such election does not prejudice the ability of the parties to consummate a Redemption or Direct Exchange on the Redemption Date.  An Exchange Election Notice may be revoked by the Corporation at any time; provided that any such revocation does not prejudice the ability of the parties to consummate a Redemption or Direct Exchange on the Redemption Date.  The right to consummate a Direct Exchange in all events shall be exercisable for all the Redeemed Units that would have otherwise been subject to a Redemption.  Except as otherwise provided by this Section 11.03, a Direct Exchange shall be consummated pursuant to the same timeframe and in the same manner as the relevant Redemption would have been consummated if the Corporation had not delivered an Exchange Election Notice.

 

Section 11.04                      Reservation of shares of Class A Common Stock; Listing; Certificate of the Corporation.  At all times the Corporation shall reserve and keep available out of its authorized but unissued Class A Common Stock, solely for the purpose of issuance upon a Redemption or Direct Exchange, such number of shares of Class A Common Stock as shall be issuable upon any such Redemption or Direct Exchange pursuant to Share Settlements; provided that nothing contained herein shall be construed to preclude the Corporation from satisfying its obligations in respect of any such Redemption or Direct Exchange by delivery of purchased Class A Common Stock (which may or may not be held in the treasury of the Corporation) or the delivery of cash pursuant to a Cash Settlement.  The Corporation shall deliver Class A Common Stock that has been registered under the Securities Act with respect to any Redemption or Direct

 

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Exchange to the extent a registration statement is effective and available for such shares.  The Corporation shall use its commercially reasonable efforts to list the Class A Common Stock required to be delivered upon any such Redemption or Direct Exchange prior to such delivery upon each national securities exchange upon which the outstanding shares of Class A Common Stock are listed at the time of such Redemption or Direct Exchange (it being understood that any such shares may be subject to transfer restrictions under applicable securities Laws).  The Corporation covenants that all Class A Common Stock issued upon a Redemption or Direct Exchange will, upon issuance, be validly issued, fully paid and non-assessable.  The provisions of this Article XI shall be interpreted and applied in a manner consistent with the corresponding provisions of the Corporation’s certificate of incorporation.

 

Section 11.05                      Effect of Exercise of Redemption or Exchange Right.  This Agreement shall continue notwithstanding the consummation of a Redemption or Direct Exchange and all governance or other rights set forth herein shall be exercised by the remaining Members, LLC Optionees (to the extent of such LLC Optionee’s rights to exercise LLC Options and the related Redemption Right) and the Redeeming Member (to the extent of such Redeeming Member’s remaining interest in the Company).  No Redemption or Direct Exchange shall relieve such Redeeming Member of any prior breach of this Agreement.

 

Section 11.06                      Tax Treatment.  Unless otherwise required by applicable Law, the parties hereto acknowledge and agree a Redemption or a Direct Exchange, as the case may be, shall be treated as a direct exchange between the Corporation and the Redeeming Member for U.S. federal and applicable state and local income tax purposes.

 

ARTICLE XII.
 ADMISSION OF MEMBERS

 

Section 12.01                      Substituted Members.  Subject to the provisions of Article X hereof, in connection with the Permitted Transfer of a Company Interest hereunder, the transferee shall become a substituted Member (“Substituted Member”) on the effective date of such Transfer, which effective date shall not be earlier than the date of compliance with the conditions to such Transfer, and such admission shall be shown on the books and records of the Company.

 

Section 12.02                      Additional Members.  Each LLC Optionee upon exercise of an LLC Option (to the extent such LLC Optionee does not simultaneously exercise its Redemption Right with respect thereto under Article XI) and, subject to the provisions of Article X hereof, any other Person may be admitted to the Company as an additional Member (any such LLC Optionee or other Person, an “Additional Member”) only upon furnishing to the Manager (a) counterparts of this Agreement and any applicable Other Agreements and (b) such other documents or instruments as may be reasonably necessary or appropriate to effect such Person’s admission as a Member (including entering into such documents as the Manager may deem appropriate in its sole discretion).  Such admission shall become effective on the date on which the Manager determines in its sole discretion that such conditions have been satisfied and when any such admission is shown on the books and records of the Company.

 

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ARTICLE XIII.
 WITHDRAWAL AND RESIGNATION; TERMINATION OF RIGHTS

 

Section 13.01                      Withdrawal and Resignation of Members.  No Member shall have the power or right to withdraw or otherwise resign as a Member from the Company prior to the dissolution and winding up of the Company pursuant to this Article XIII.  Any Member, however, that attempts to withdraw or otherwise resign as a Member from the Company without the prior written consent of the Manager upon or following the dissolution and winding up of the Company pursuant to this Article XIII, but prior to such Member receiving the full amount of Distributions from the Company to which such Member is entitled pursuant to this Article XIII, shall be liable to the Company for all damages (including all lost profits and special, indirect and consequential damages) directly or indirectly caused by the withdrawal or resignation of such Member.  Upon a Transfer of all of a Member’s Units in a Transfer permitted by this Agreement, subject to the provisions of Section 10.06, such Member shall cease to be a Member.

 

Section 13.02                      Termination of Rights of LLC Optionees.  With respect to each LLC Optionee, all rights of such Person to exercise a Redemption Right hereunder pursuant to Article XI or to become a Member hereunder pursuant to Article XII, and all other rights afforded such Person hereunder in his or her capacity as an LLC Optionee, shall automatically terminate upon the expiration or other termination (whether as a result of exercise in full, forfeiture, death, disability, termination of employment or otherwise) of all LLC Options awarded by the Company to such Person (except to the extent the Company substantially simultaneously novates or reissues an LLC Option to such Person or his or her heirs), in each case in accordance with such LLC Option’s terms, and upon such expiration or termination of all LLC Options of such Person, such Person shall cease to be an LLC Optionee hereunder.

 

ARTICLE XIV.
 DISSOLUTION AND LIQUIDATION

 

Section 14.01                      Dissolution.  The Company shall not be dissolved by the admission of Additional Members or Substituted Members or the attempted withdrawal or resignation of a Member.  The Company shall dissolve, and its affairs shall be wound up, upon:

 

(a)                                 the unanimous decision of the Members that then hold Voting Units to dissolve the Company;

 

(b)                                 a Change of Control Transaction that is not approved by the Majority Members;

 

(c)                                  a dissolution of the Company under Section 18-801(4) of the Delaware Act; or

 

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

 

Except as otherwise set forth in this Article XIV, the Company is intended to have perpetual existence.  An Event of Withdrawal shall not cause a dissolution of the Company and the Company shall continue in existence subject to the terms and conditions of this Agreement.

 

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Section 14.02                      Liquidation and Termination.  On dissolution of the Company, the Manager shall act as liquidator or may appoint one or more Persons as liquidator.  The liquidators shall proceed diligently to wind up the affairs of the Company and make final distributions as provided herein and in the Delaware Act.  The costs of liquidation shall be borne as a Company expense.  Until final distribution, the liquidators shall continue to operate the Company properties with all of the power and authority of the Manager.  The steps to be accomplished by the liquidators are as follows:

 

(a)                                 as promptly as possible after dissolution and again after final liquidation, the liquidators shall cause a proper accounting to be made by a recognized firm of certified public accountants of the Company’s assets, liabilities and operations through the last day of the calendar month in which the dissolution occurs or the final liquidation is completed, as applicable;

 

(b)                                 the liquidators shall cause the notice described in the Delaware Act to be mailed to each known creditor of and claimant against the Company in the manner described thereunder;

 

(c)                                  the liquidators shall pay, satisfy or discharge from Company funds, or otherwise make adequate provision for payment and discharge thereof (including, without limitation, the establishment of a cash fund for contingent liabilities in such amount and for such term as the liquidators may reasonably determine): first, all expenses incurred in liquidation; and second, all of the debts, liabilities and obligations of the Company; and

 

(d)                                 all remaining assets of the Company shall be distributed to the Members in accordance with Article IV by the end of the Taxable Year during which the liquidation of the Company occurs (or, if later, by ninety (90) days after the date of the liquidation).  The distribution of cash and/or property to the Members in accordance with the provisions of this Section 14.02 and Section 14.03 below constitutes a complete return to the Members of their Capital Contributions, a complete distribution to the Members of their interest in the Company and all the Company’s property and constitutes a compromise to which all Members have consented within the meaning of the Delaware Act.  To the extent that a Member returns funds to the Company, it has no claim against any other Member for those funds.

 

Section 14.03                      Deferment; Distribution in Kind.  Notwithstanding the provisions of Section 14.02, but subject to the order of priorities set forth therein, if upon dissolution of the Company the liquidators determine that an immediate sale of part or all of the Company’s assets would be impractical or would cause undue loss (or would otherwise not be beneficial) to the Members, the liquidators may, in their sole discretion, defer for a reasonable time the liquidation of any assets except those necessary to satisfy Company liabilities (other than loans to the Company by Members) and reserves.  Subject to the order of priorities set forth in Section 14.02, the liquidators may, in their sole discretion, distribute to the Members, in lieu of cash, either (a) all or any portion of such remaining Company assets in-kind in accordance with the provisions of Section 14.02(d), (b) as tenants in common and in accordance with the provisions of Section 14.02(d), undivided interests in all or any portion of such Company assets or (c) a combination of the foregoing.  Any such Distributions in kind shall be subject to (x) such conditions relating to the disposition and management of such assets as the liquidators deem reasonable and equitable and (y) the terms and conditions of any agreements governing such assets (or the

 

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operation thereof or the holders thereof) at such time.  Any Company assets distributed in kind will first be written up or down to their Fair Market Value, thus creating Profit or Loss (if any), which shall be allocated in accordance with Article V.  The liquidators shall determine the Fair Market Value of any property distributed in accordance with the valuation procedures set forth in Article XV.

 

Section 14.04                      Cancellation of Certificate.  On completion of the distribution of Company assets as provided herein, the Company is terminated (and the Company shall not be terminated prior to such time), and the Manager (or such other Person or Persons as the Delaware Act may require or permit) shall file a certificate of cancellation with the Secretary of State of Delaware, cancel any other filings made pursuant to this Agreement that are or should be canceled and take such other actions as may be necessary to terminate the Company.  The Company shall be deemed to continue in existence for all purposes of this Agreement until it is terminated pursuant to this Section 14.04.

 

Section 14.05                      Reasonable Time for Winding Up.  A reasonable time shall be allowed for the orderly winding up of the business and affairs of the Company and the liquidation of its assets pursuant to Sections 14.02 and 14.03 in order to minimize any losses otherwise attendant upon such winding up.

 

Section 14.06                      Return of Capital.  The liquidators shall not be personally liable for the return of Capital Contributions or any portion thereof to the Members (it being understood that any such return shall be made solely from Company assets).

 

ARTICLE XV.
 VALUATION

 

Section 15.01                      Determination.  “Fair Market Value” of a specific Company asset will mean the amount which the Company would receive in an all-cash sale of such asset in an arms-length transaction with a willing unaffiliated third party, with neither party having any compulsion to buy or sell, consummated on the day immediately preceding the date on which the event occurred which necessitated the determination of the Fair Market Value (and after giving effect to any transfer taxes payable in connection with such sale), as such amount is determined by the Manager (or, if pursuant to Section 14.02, the liquidators) in its good faith judgment using all factors, information and data it deems to be pertinent.

 

Section 15.02                      Dispute Resolution.  If any Member or Members dispute the accuracy of any determination of Fair Market Value in accordance with Section 15.01, and the Manager and such Member(s) are unable to agree on the determination of the Fair Market Value of any asset of the Company, the Manager and such Member(s) shall each select a nationally recognized investment banking firm experienced in valuing securities of closely-held companies such as the Company in the Company’s industry (the “Appraisers”), who shall each determine the Fair Market Value of the asset or the Company (as applicable) in accordance with the provisions of Section 15.01.  The Appraisers shall be instructed to give written notice of their determination of the Fair Market Value of the asset or the Company (as applicable) within thirty (30) days of their appointment as Appraisers.  If Fair Market Value as determined by an Appraiser is higher than Fair Market Value as determined by the other Appraiser by 10% or more, and the Manager and

 

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such Member(s) do not otherwise agree on a Fair Market Value, the original Appraisers shall designate a third Appraiser meeting the same criteria used to select the original two.  If Fair Market Value as determined by an Appraiser is within 10% of the Fair Market Value as determined by the other Appraiser (but not identical), and the Manager and such Member(s) do not otherwise agree on a Fair Market Value, the Manager shall select the Fair Market Value of one of the Appraisers.  The fees and expenses of the Appraisers shall be borne by the Company.

 

ARTICLE XVI.
 GENERAL PROVISIONS

 

Section 16.01                      Power of Attorney.

 

(a)                                 Each Member who is an individual hereby constitutes and appoints the Manager (or the liquidator, if applicable) with full power of substitution, as his or her true and lawful agent and attorney-in-fact, with full power and authority in his, her or its name, place and stead, to:

 

(i)                                     execute, swear to, acknowledge, deliver, file and record in the appropriate public offices (A) this Agreement, all certificates and other instruments and all amendments thereof which the Manager deems appropriate or necessary to form, qualify, or continue the qualification of, the Company as a limited liability company in the State of Delaware and in all other jurisdictions in which the Company may conduct business or own property; (B) all instruments which the Manager deems appropriate or necessary to reflect any amendment, change, modification or restatement of this Agreement in accordance with its terms; (C) all conveyances and other instruments or documents which the Manager deems appropriate or necessary to reflect the dissolution and liquidation of the Company pursuant to the terms of this Agreement, including a certificate of cancellation; and (D) all instruments relating to the admission, withdrawal or substitution of any Member pursuant to Article XII or XIII; and

 

(ii)                                  sign, execute, swear to and acknowledge all ballots, consents, approvals, waivers, certificates and other instruments appropriate or necessary, in the reasonable judgment of the Manager, to evidence, confirm or ratify any vote, consent, approval, agreement or other action which is made or given by the Members hereunder.

 

(b)                                 The foregoing power of attorney is irrevocable and coupled with an interest, and shall survive the death, disability, incapacity, dissolution, bankruptcy, insolvency or termination of any Member who is an individual and the transfer of all or any portion of his, her or its Company Interest and shall extend to such Member’s heirs, successors, assigns and personal representatives.

 

Section 16.02                      Confidentiality.  The Manager and each of the Members agree to hold the Company’s Confidential Information in confidence and may not use such information except in furtherance of the business of the Company or as otherwise authorized separately in writing by the Manager.  “Confidential Information” as used herein includes, but is not limited to, ideas, financial product structuring, business strategies, innovations and materials, all aspects of the Company’s business plan, proposed operation and products, corporate structure, financial and

 

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organizational information, analyses, proposed partners, software code and system and product designs, employees and their identities, equity ownership, the methods and means by which the Company plans to conduct its business, all trade secrets, trademarks, tradenames and all intellectual property associated with the Company’s business.  With respect to the Manager and each Member, Confidential Information does not include information or material that: (a) is rightfully in the possession of the Manager or each Member at the time of disclosure by the Company; (b) before or after it has been disclosed to the Manager or each Member by the Company, becomes part of public knowledge, not as a result of any action or inaction of the Manager or such Member, respectively, in violation of this Agreement; (c) is approved for release by written authorization of the CEO of the Company or of the Corporation; (d) is disclosed to the Manager or such Member or their representatives by a third party not, to the knowledge of the Manager or such Member, respectively, in violation of any obligation of confidentiality owed to the Company with respect to such information; or (e) is or becomes independently developed by the Manager or such Member or their respective representatives without use or reference to the Confidential Information.

 

Section 16.03                      Amendments.  This Agreement and the Certificate may be amended or modified upon the consent of the Majority Members.  Notwithstanding the foregoing, (i) no amendment or modification to any of the terms and conditions of this Agreement or the Certificate which terms and conditions expressly require the approval or action of certain Persons may be made without obtaining the consent of the requisite number or specified percentage of such Persons who are entitled to approve or take action on such matter, (ii) no amendment or modification to or waiver of any of the terms of the terms and conditions of this Agreement or the Certificate which would materially and adversely affect a holder of Units in a manner materially different than any other holder of Units of the same class or series (other than amendments, modifications and waivers (y) necessary to implement the provisions of Article XII or (y) relate to the rights and responsibilities of the Manager in its capacity as such under this Agreement) shall be effective against such disparately affected holder of Units without the prior written consent of such holder of Units (for all purposes of this clause (ii), a holder of Units shall be deemed to include any LLC Optionee) and (iii) no amendment or modification to or waiver of any of Section 3.01(a), Section 3.01(c), Section 3.02, Section 3.03(a), Section 3.10, Article XI, Section 12.02, Section 13.02 , this Section 16.03 or Section 16.06 that would be materially adverse to any LLC Optionee shall be effective against such adversely affected LLC Optionee without the prior written consent of such LLC Optionee.

 

Section 16.04                      Title to Company Assets.  Company assets shall be deemed to be owned by the Company as an entity, and no Member, individually or collectively, shall have any ownership interest in such Company assets or any portion thereof.  The Company shall hold title to all of its property in the name of the Company and not in the name of any Member.  All Company assets shall be recorded as the property of the Company on its books and records, irrespective of the name in which legal title to such Company assets is held.  The Company’s credit and assets shall be used solely for the benefit of the Company, and no asset of the Company shall be transferred or encumbered for, or in payment of, any individual obligation of any Member.

 

Section 16.05                      Addresses and Notices.  Any notice provided for in this Agreement will be in writing and will be either personally delivered, or received by certified mail, return receipt

 

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requested, or sent by reputable overnight courier service (charges prepaid) to the Company at the address set forth below and to any other recipient and to any Member at such address as indicated by the Company’s records, or at such address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.  Notices will be deemed to have been given hereunder when delivered personally or sent by telecopier (provided confirmation of transmission is received), three (3) days after deposit in the U.S. mail and one (1) day after deposit with a reputable overnight courier service.  The Company’s address is:

 

to the Company:

 

Neff Holdings LLC
 3750 N.W. 87th Avenue, Suite 400
 Miami, Florida 33178
 Attn: Mark Irion, Chief Financial Officer
 Facsimile: (305) 773-2291
 E-mail: mirion@neffcorp.com

 

with a copy (which copy shall not constitute notice) to:

 

Latham & Watkins LLP
 885 Third Avenue
 New York, New York 10022
 Attn: Dennis D. Lamont 
 Facsimile: (212) 751-4864
 E-mail: dennis.lamont@lw.com

 

Section 16.06                      Binding Effect; Intended Beneficiaries.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted assigns.  Section 3.01(a), Section 3.02, Section 3.03(a), Section 3.10, Article XI, Section 12.02 and Section 13.02 hereof shall inure to the benefit of the LLC Optionees who are intended to be third-party beneficiaries thereof and which Articles and Sections shall be enforceable by each LLC Optionee and its successors and assigns.

 

Section 16.07                      Creditors.  None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditors of the Company or any of its Affiliates, and no creditor who makes a loan to the Company or any of its Affiliates may have or acquire (except pursuant to the terms of a separate agreement executed by the Company in favor of such creditor) at any time as a result of making the loan any direct or indirect interest in Company Profits, Losses, Distributions, capital or property other than as a secured creditor.

 

Section 16.08                      Waiver.  No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or any other covenant, duty, agreement or condition.

 

Section 16.09                      Counterparts.  This Agreement may be executed in separate counterparts, each of which will be an original and all of which together shall constitute one and the same agreement binding on all the parties hereto.

 

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Section 16.10                      Applicable Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.  Any dispute relating hereto shall be heard in the state or federal courts of the State of Delaware, and the parties agree to jurisdiction and venue therein.

 

Section 16.11                      Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable Law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable Law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or the effectiveness or validity of any provision in any other jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

Section 16.12                      Further Action.  The parties shall execute and deliver all documents, provide all information and take or refrain from taking such actions as may be necessary or appropriate to achieve the purposes of this Agreement.

 

Section 16.13                      Delivery by Electronic Transmission.  This Agreement and any signed agreement or instrument entered into in connection with this Agreement or contemplated hereby, and any amendments hereto or thereto, to the extent signed and delivered by means of an electronic transmission, including by a facsimile machine or via email, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  At the request of any party hereto or to any such agreement or instrument, each other party hereto or thereto shall re-execute original forms thereof and deliver them to all other parties.  No party hereto or to any such agreement or instrument shall raise the use of electronic transmission by a facsimile machine or via email to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through such electronic transmission as a defense to the formation of a contract and each such party forever waives any such defense.

 

Section 16.14                      Right of Offset.  Whenever the Company is to pay any sum (other than pursuant to Article IV) to any Member, any amounts that such Member owes to the Company which are not the subject of a good faith dispute may be deducted from that sum before payment.  For the avoidance of doubt, the distribution of Units to the Corporation shall not be subject to this Section 16.14.

 

Section 16.15                      Effectiveness.  This Agreement shall be effective immediately prior to the time at which the IPO closes on the IPO Closing Date (the “Effective Time”).  The First A&R LLC Agreement shall govern the rights and obligations of the Company and the other parties to this Agreement in their capacity as Unitholders prior to the Effective Time.

 

Section 16.16                      Entire Agreement.  This Agreement, those documents expressly referred to herein (including the Registration Rights Agreement and the Tax Receivable Agreement), any indemnity agreements entered into in connection with the First A&R LLC Agreement with any member of the board of managers at that time and other documents of even date herewith

 

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embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.  For the avoidance of doubt, the First A&R LLC Agreement is superseded by this Agreement as of the Effective Time and shall be of no further force and effect thereafter.

 

Section 16.17                      Remedies.  Each Member shall have all rights and remedies set forth in this Agreement and all rights and remedies which such Person has been granted at any time under any other agreement or contract and all of the rights which such Person has under any Law.  Any Person having any rights under any provision of this Agreement or any other agreements contemplated hereby shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by Law.

 

Section 16.18                      Descriptive Headings; Interpretation.  The descriptive headings of this Agreement are inserted for convenience only and do not constitute a substantive part of this Agreement.  Whenever required by the context, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.  The use of the word “including” in this Agreement shall be by way of example rather than by limitation.  Reference to any agreement, document or instrument means such agreement, document or instrument as amended or otherwise modified from time to time in accordance with the terms thereof, and if applicable hereof.  Without limiting the generality of the immediately preceding sentence, no amendment or other modification to any agreement, document or instrument that requires the consent of any Person pursuant to the terms of this Agreement or any other agreement will be given effect hereunder unless such Person has consented in writing to such amendment or modification.  Wherever required by the context, references to a Fiscal Year shall refer to a portion thereof.  The use of the words “or,” “either” and “any” shall not be exclusive.  The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.  Wherever a conflict exists between this Agreement and any other agreement, this Agreement shall control but solely to the extent of such conflict.

 

51

 

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed on their behalf this Agreement as of the date first written above.

 

	
 
    	
 
    	
 
    	
 
    
	
 
    	
COMPANY:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
NEFF   HOLDINGS LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   NEFF CORPORATION, its Managing Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
MEMBERS:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
WAYZATA   OPPORTUNITIES FUND II, L.P.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
WOF   II GP, LP, its General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
WOF   II GP, LLC, its General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
WAYZATA   OPPORTUNITIES FUND OFFSHORE II, L.P.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Wayzata   Offshore II, LLC, its General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
NEFF   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

52

 

SCHEDULE 1*

 

SCHEDULE OF MEMBERS

 

	
Member
    	
 
    	
Common Units
    	
 
    	
Percentage Interest
    	
 
    
	
Wayzata Opportunities   Fund II, L.P.
    	
 
    	
12,494,948
    	
**
    	
53.661027122
    	
%
    
	
Wayzata Opportunities   Fund Offshore II, L.P.
    	
 
    	
313,820
    	
**
    	
1.347737498
    	
 
    
	
Neff Corporation 
    	
 
    	
10,476,190
    	
***
    	
44.991235380
    	
 
    
	
Total 
    	
 
    	
23,284,958
    	
 
    	
100.000000000
    	
%
    

 

*                             This Schedule of Members reflects the Recapitalization and shall be updated from time to time to reflect any adjustment with respect to any subdivision (by Unit split or otherwise) or any combination (by reverse Unit split or otherwise) of any outstanding Common Units, or to reflect any additional issuances of Common Units pursuant to this Agreement.

**                      Reflects the Recapitalization and the IPO Secondary Net Proceeds to acquire Common Units from the Original Members.  As a result of the conversion and split set forth in Section 3.03(a), initially Wayzata Opportunities Fund II, L.P. held 14,585,304 Common Units, and the number opposite its name in the table above reflects the amount retained after the sale of 2,090,356 Common Units to Neff Corporation.  As a result of the conversion and split set forth in Section 3.03(a), initially Wayzata Opportunities Fund Offshore II, L.P. held 366,321 Common Units, and the number opposite its name in the table above reflects the amount retained after the sale of 52,501 Common Units to Neff Corporation.

***               Reflects the purchase of 8,333,333 Common Units from the Company and an aggregate of 2,142,857 Common Units from the Original Members with the IPO Primary Net Proceeds.  If, when and to the extent the Over-Allotment Option is exercised, this amount will be adjusted to also reflect the purchase of additional Common Units from the company with the Over-Allotment Option Net Proceeds.

 

 

SCHEDULE 2*

 

SCHEDULE OF LLC OPTIONEES

 

	
 
    	
 
    	
Original LLC Options
   Number of Common Units Underlying
    	
 
    	
LLC Options**
   Number of Common Units Underlying
    	
 
    
	
LLC Optionees
    	
 
    	
Performance
   Options
    	
 
    	
Service
   Options
    	
 
    	
Total
   Options
    	
 
    	
Performance
   Options
    	
 
    	
Service
   Options
    	
 
    	
Total
   Options
    	
 
    
	
James Continenza 
    	
 
    	
—
    	
 
    	
12,573
    	
 
    	
12,573
    	
 
    	
—
    	
 
    	
20,433
    	
 
    	
20,433
    	
 
    
	
Robert Singer 
    	
 
    	
—
    	
 
    	
8,801
    	
 
    	
8,801
    	
 
    	
—
    	
 
    	
14,303
    	
 
    	
14,303
    	
 
    
	
Graham Hood 
    	
 
    	
81,750
    	
 
    	
136,250
    	
 
    	
218,000
    	
 
    	
132,858
    	
 
    	
221,430
    	
 
    	
354,288
    	
 
    
	
Mark Irion 
    	
 
    	
48,750
    	
 
    	
81,250
    	
 
    	
130,000
    	
 
    	
79,227
    	
 
    	
132,045
    	
 
    	
211,272
    	
 
    
	
Wes Parks 
    	
 
    	
22,500
    	
 
    	
37,500
    	
 
    	
60,000
    	
 
    	
36,566
    	
 
    	
60,944
    	
 
    	
97,510
    	
 
    
	
Henry Lawson 
    	
 
    	
22,500
    	
 
    	
37,500
    	
 
    	
60,000
    	
 
    	
36,566
    	
 
    	
60,944
    	
 
    	
97,510
    	
 
    
	
John Anderson 
    	
 
    	
22,500
    	
 
    	
37,500
    	
 
    	
60,000
    	
 
    	
36,566
    	
 
    	
60,944
    	
 
    	
97,510
    	
 
    
	
Brad Nowell 
    	
 
    	
13,875
    	
 
    	
23,125
    	
 
    	
37,000
    	
 
    	
22,549
    	
 
    	
37,582
    	
 
    	
60,131
    	
 
    
	
Steven Settelmayer 
    	
 
    	
13,875
    	
 
    	
23,125
    	
 
    	
37,000
    	
 
    	
22,549
    	
 
    	
37,582
    	
 
    	
60,131
    	
 
    
	
Paula Papamarcos 
    	
 
    	
11,625
    	
 
    	
19,375
    	
 
    	
31,000
    	
 
    	
18,892
    	
 
    	
31,487
    	
 
    	
50,380
    	
 
    
	
Steve Michaels 
    	
 
    	
13,875
    	
 
    	
23,125
    	
 
    	
37,000
    	
 
    	
22,549
    	
 
    	
37,582
    	
 
    	
60,131
    	
 
    
	
Tom Sutherland 
    	
 
    	
11,625
    	
 
    	
19,375
    	
 
    	
31,000
    	
 
    	
18,892
    	
 
    	
31,487
    	
 
    	
50,380
    	
 
    
	
Tammy Parham 
    	
 
    	
5,250
    	
 
    	
8,750
    	
 
    	
14,000
    	
 
    	
8,532
    	
 
    	
14,220
    	
 
    	
22,752
    	
 
    
	
Jim Horn 
    	
 
    	
5,250
    	
 
    	
8,750
    	
 
    	
14,000
    	
 
    	
8,532
    	
 
    	
14,220
    	
 
    	
22,752
    	
 
    
	
Bryant Becton 
    	
 
    	
5,250
    	
 
    	
8,750
    	
 
    	
14,000
    	
 
    	
8,532
    	
 
    	
14,220
    	
 
    	
22,752
    	
 
    
	
Bobby Corner 
    	
 
    	
5,250
    	
 
    	
8,750
    	
 
    	
14,000
    	
 
    	
8,532
    	
 
    	
14,220
    	
 
    	
22,752
    	
 
    
	
Total 
    	
 
    	
283,875
    	
 
    	
494,499
    	
 
    	
778,374
    	
 
    	
461,342
    	
 
    	
803,643
    	
 
    	
1,264,987
    	
 
    

 

*                 This Schedule of LLC Optionees shall be updated from time to time to reflect any adjustment with respect to any subdivision (by Unit split or otherwise) or any combination (by reverse Unit split or otherwise) of any outstanding Common Units, or to reflect any additional issuances of Common Units pursuant to this Agreement.

**          This column reflects the Recapitalization.

 

 

Exhibit A

 

FORM OF JOINDER AGREEMENT

 

This JOINDER AGREEMENT, dated as of                                , 20      (this “Joinder”), is delivered pursuant to that certain Second Amended and Restated Limited Liability Company Agreement, dated as of [·], 2014 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “LLC Agreement”) by and among Neff Holdings LLC, a Delaware limited liability company (the “Company”), Neff Corporation, a Delaware corporation and the managing member of the Company (the “Manager”), and each of the Members from time to time party thereto.  Capitalized terms used but not otherwise defined herein have the respective meanings set forth in the LLC Agreement.

 

1.              Joinder to the LLC Agreement.  Upon the execution of this Joinder by the undersigned and delivery hereof to the Company, and acceptance hereof by the Company (subject to Articles X and XII of the LLC Agreement) upon the execution of a counterpart hereof by the Manager on behalf of the Company, the undersigned hereby is and hereafter will be a Member under the LLC Agreement and a party thereto, with all the rights, privileges and responsibilities of a Member thereunder.  The undersigned hereby agrees that it shall comply with and be fully bound by the terms of the LLC Agreement as if it had been a signatory thereto as of the date thereof.

 

2.              Incorporation by Reference.  All terms and conditions of the LLC Agreement are hereby incorporated by reference in this Joinder as if set forth herein in full.

 

3.              Address.  All notices under the LLC Agreement to the undersigned shall be direct to:

 

[Name] 
 [Address] 
 [City, State, Zip Code] 
 Attn: 
 Facsimile: 
 E-mail:

 

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Joinder as of the day and year first above written.

 

	
 
    	
[NAME   OF NEW MEMBER]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

Acknowledged and agreed
 as of the date first set forth above:

 

	
NEFF   HOLDINGS LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:   NEFF CORPORATION, its Managing Member
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:Exhibit 10.6

 

	
  

  	
  EXECUTION VERSION #86469808v2 AMENDMENT NO. 1 TO SECOND LIEN
  CREDIT AGREEMENT This AMENDMENT NO. 1, dated as of October 14, 2014 (this
  “Amendment”), is entered into by and among Neff LLC, a Delaware limited
  liability company (“Parent”), Neff Holdings LLC, a Delaware limited liability
  company (“Holdings”), Neff Rental LLC, a Delaware limited liability company
  (the “Borrower”), Credit Suisse, AG, as administrative agent (in such
  capacity, “Administrative Agent”), and each of the financial institutions on
  the signature pages hereto in its capacity as a Lender under the Credit
  Agreement (as defined below), and amends that certain Second Lien Credit
  Agreement, dated as of June 9, 2014 (as the same may be amended, restated,
  amended and restated, supplemented or otherwise modified from time to time
  prior to the date hereof, the “Credit Agreement”), by and among Parent,
  Borrower, Holdings, the Administrative Agent, the Lenders from time to time
  party thereto and the other parties thereto. PRELIMINARY STATEMENTS (1)
  WHEREAS, Parent, Borrower, Holdings, the Administrative Agent and the Lenders
  have entered into the Credit Agreement; (2) WHEREAS, Parent, Borrower,
  Holdings, the Administrative Agent and certain Lenders wish to amend the
  Credit Agreement as set forth in Section 2 below and provide the
  confirmations set forth in Section 5 below; (3) WHEREAS, pursuant to Section
  9.08 of the Credit Agreement Borrower may, with the consent of the
  Administrative Agent and the Required Lenders, amend the Credit Agreement as
  set forth in Section 2 below; and (4) WHEREAS, the Required Lenders are
  willing to consent to the amendments set forth in Section 2 below and provide
  the confirmations set forth in Section 5(b) below. NOW, THEREFORE, in
  consideration of the mutual covenants and agreements herein contained and for
  other good and valuable consideration, the sufficiency and receipt of which
  are hereby acknowledged, the parties hereto hereby agree as follows: Section
  1. Defined Terms; References. Unless otherwise specifically defined herein,
  each capitalized term used herein that is not otherwise defined shall have
  the respective meaning assigned to such term in the Credit Agreement. Each
  reference contained in any Loan Document to “hereof”, “hereunder”, “herein”
  and “hereby” and each other similar reference and each reference contained in
  any Loan Document to “this Agreement” and each other similar reference, and
  each reference contained in any Loan Document to any other Loan Document or
  “thereunder”, “thereof” or other similar reference to such other Loan
  Document, shall, in each case after the Amendment No. 1 Operative Date (as
  defined in Section 4 of this Amendment), refer to such Loan Document or such
  other Loan Document as amended by this Amendment. Section 2. Amendments. With
  effect from the Amendment No. 1 Operative Date: (a) Section 6.01(j) of the
  Credit Agreement shall be and hereby is amended by deleting the text of such
  Section in its entirety and inserting in lieu thereof text as follows: 

  

 

	
  

  	
  2 #86469808v2 “unsecured Indebtedness in an aggregate principal
  amount not to exceed $50,000,000 at any one time outstanding so long as no
  cash interest or amortization payments are made on, or required with respect
  to, such Indebtedness and such Indebtedness has a final maturity date at
  least six months after the Latest Maturity Date;”. (b) Section 6.04(a) of the
  Credit Agreement shall be and hereby is amended as follows: (i) By deleting
  the text appearing in clause (iii) thereof in its entirety and inserting in
  lieu thereof the following: “so long as no Default or Event of Default shall
  have occurred and be continuing or would result therefrom, (A) Parent may
  make a Restricted Payment to Holdings to allow Holdings to, and Holdings may
  (and Holdings may make Restricted Payments to any Qualifying IPO Issuer to
  allow such Qualifying IPO Issuer to), purchase, redeem or otherwise acquire
  or retire for value Equity Interests of Holdings, Parent or the Borrower (or
  such Qualifying IPO Issuer) deemed to occur upon the exercise of stock
  options, warrants, rights to acquire Equity Interests or other convertible
  securities to the extent such Equity Interests represent a portion of the
  exercise or exchange price thereof and (B) Parent may make a Restricted
  Payment to Holdings to allow Holdings to, and Holdings may (and Holdings may
  make Restricted Payments to any Qualifying IPO Issuer to allow such
  Qualifying IPO Issuer to), purchase, redeem or otherwise acquire or retire
  for value Equity Interests of Holdings, Parent or the Borrower (or such
  Qualifying IPO Issuer) made in lieu of withholding taxes in connection with
  any exercise or exchange of stock options, warrants or other similar
  rights;”. (ii) (A) By deleting “and” at the end of clause (vi) thereof, (B)
  by deleting the period at the end of clause (vii) thereof and inserting in
  lieu thereof the text “and Permitted Tax Receivable Payments; and” and (C)
  adding a new clause (viii) at the end of such Section as follows: “(viii) to
  the extent the Holdings LLC Agreement requires, (I) to reimburse Neff
  Corporation for expenses incurred on behalf or directly for the benefit of
  Holdings and its Subsidiaries, including without limitation expenses incurred
  in connection with the Neff Corporation Qualifying IPO, (II) if any member of
  Holdings exercises its right to have its units in Holdings redeemed in
  accordance with the Holdings LLC Agreement, Holdings may make Restricted
  Payments in connection with such redemption in the form of any cash or Stock
  contributed to Holdings by Neff Corporation for such purpose, and (III) in
  accordance with the Holdings LLC Agreement, Holdings shall be permitted to
  (A) undertake all actions, including, without limitation, a reclassification,
  distribution, division or recapitalization, with respect to its common units,
  to maintain 

  

 

	
  

  	
  3 #86469808v2 at all times a one-to-one ratio between the number
  of common units owned by Neff Corporation and the number of outstanding
  shares of Class A common stock of Neff Corporation (disregarding, for
  purposes of maintaining the one-to-one ratio, such Stock of Neff Corporation
  as provided in the Holdings LLC Agreement); provided that, in the case of any
  action pursuant to this clause (viii)(III)(A) involving a distribution or
  other transfer by Holdings of cash or assets (other than Equity Interests of
  Holdings), such distribution or other transfer is then permitted pursuant one
  or more other clauses of this proviso to Section 6.04(a), and (B) issue,
  transfer or deliver from treasury stock any units of Holdings to Neff
  Corporation.”. (c) Section 6.11(b) of the Credit Agreement shall be and
  hereby is amended by adding a proviso at the end thereof as follows:
  “provided that Holdings shall be permitted to amend and restate its limited
  liability company operating agreement on or before the closing date of the
  Neff Corporation Qualifying IPO substantially in the form attached as Exhibit
  B to Amendment No. 1;”. (d) Section 6.11(c) of the Credit Agreement shall be
  and hereby is amended by adding a new proviso at the end thereof as follows:
  “provided that the Loan Parties shall be permitted to enter into that certain
  Revolving Credit Facility Amendment No. 2 on or before the closing date of
  the Neff Corporation Qualifying IPO substantially in the form attached as
  Exhibit A to Amendment No. 1;”. (e) Section 6.16 of the Credit Agreement
  shall be and hereby is amended by (i) deleting “and” at the end of clause (i)
  thereof, (ii) deleting the period at the end of clause (j) thereof and
  inserting in lieu thereof “; and”, and (iii) adding a new clause (k) to the
  end thereof as follows: “(k) (A) in connection with a Neff Corporation
  Qualifying IPO, the entry into the Holdings LLC Agreement, the Tax Receivable
  Agreement, the IPO Common Unit Purchase Agreement and the Amended Neff
  Holdings LLC Management Equity Plan, and (B) transactions arising from the
  performance of such agreements (including pursuant to any amendment to such
  agreements or documentation replacing such agreements to the extent that such
  amendment or agreement is permitted hereunder and is not more disadvantageous
  to the applicable Loan Party or the Lenders in any material respect than the
  original agreement).”. (f) Section 6.19 of the Credit Agreement shall be and
  hereby is amended by deleting clause (i) thereof in its entirety and inserting
  in lieu thereof the following: “(i) With respect to Holdings, engage in any
  business activities or have any assets or liabilities other than its
  ownership of the Equity Interests of Parent and 

  

 

	
  

  	
  4 #86469808v2 activities and liabilities incidental thereto,
  including its liabilities pursuant to the Guarantee and Collateral Agreement
  and the Pledge Agreement; provided Holdings may (1) incur Indebtedness and
  Liens and make Restricted Payments to the extent permitted by the other
  Sections of this Article 6, (2) enter into and perform its obligations under
  the Neff Holdings LLC 2014 Bonus Plans and the Amended Neff Holdings LLC
  Management Equity Plan, (3) enter into and perform of its obligations under
  the Holdings LLC Agreement, the Tax Receivable Agreement and the IPO Common
  Unit Purchase Agreement and (4) any activities reasonably related thereto;
  provided, further that Holdings will not create, incur, assume or permit to
  exist any Lien (other than (1) Liens created under the Loan Documents and (2)
  Liens of a type described in clause (c), (d), (g), (j)(i), (j)(ii), (j)(vi),
  (j)(vii), (j)(viii), (k) (it being understood that such Lien will be
  terminated substantially concurrently with the consummation of the
  Transactions) and (u) of Section 6.02) on any Equity Interests issued by
  Parent, and”. (g) Section 5.04 of the Credit Agreement shall be and hereby is
  amended by inserting two new paragraphs immediately following clause (n) of
  such Section as follows: “Notwithstanding anything to the contrary set forth
  in this Section 5.04 or in any other provision of this Agreement that refers
  to this Section 5.04 or any clause hereof, the obligations of Holdings,
  Parent and Borrower set forth in clauses (a) and (b) of this Section 5.04 may
  be satisfied by furnishing the applicable financial information required by
  such clause with respect to Neff Corporation and its Subsidiaries on a
  consolidated basis in lieu of furnishing the applicable financial information
  required by such clause with respect to Holdings and its Subsidiaries on a
  consolidated basis; provided, that to the extent such financial information
  relates to Neff Corporation and its Subsidiaries, such information is
  accompanied by consolidating information that explains in reasonable detail
  the differences between the information relating to such Neff Corporation and
  its Subsidiaries (other than Holdings and its Subsidiaries), on the one hand,
  and the information relating to Holdings and its Subsidiaries on a
  consolidated basis, on the other hand. Documents required to be delivered
  pursuant to Section 5.04(a), (b) or (g) (to the extent any such documents are
  included in materials otherwise filed with the SEC) may be delivered
  electronically and if so delivered, shall be deemed to have been delivered on
  the date (i) on which Holdings, Parent or Borrower posts such documents, or
  provides a link thereto on Holdings’, Parent’s or Borrower’s website on the
  Internet at www.neffcorp.com; (ii) on which Neff Corporation electronically
  files such documents with the U.S. Securities and Exchange Commission and
  they become publicly available on
  www.sec.gov/edgar/searchedgar/companysearch.html (or any successor website
  maintained by such agency); or (iii) on which such documents are posted on
  Holding’s, Parent’s or Borrower’s behalf on an Internet or intranet website,
  if any, to which each Lender and the Administrative Agent have access
  (whether a 

  

 

	
  

  	
  5 #86469808v2 commercial, third-party website or whether
  sponsored by the Administrative Agent); provided that (i) Borrower shall
  deliver paper copies of such documents to the Administrative Agent or any
  Lender that requests Borrower to deliver such paper copies until a written
  request to cease delivering paper copies is given by the Administrative Agent
  or such Lender and (ii) any such posting shall only be deemed delivered when
  Borrower shall notify the Administrative Agent (by facsimile or electronic
  mail) of the posting of any such documents and provide to the Agent by
  electronic mail electronic versions (i.e., soft copies) of such documents.
  Notwithstanding anything contained herein, in every instance Borrower shall
  be required to provide paper copies of the Compliance Certificates required
  by Section 5.04(d) to the Administrative Agent. Except for such Compliance
  Certificates, the Administrative Agent shall have no obligation to request
  the delivery or to maintain copies of the documents referred to above, and in
  any event shall have no responsibility to monitor compliance by Borrower with
  any such request for delivery, and each Lender shall be solely responsible
  for requesting delivery to it or maintaining its copies of such documents.”
  (h) Section 1.01 of the Credit Agreement shall be and hereby is amended by:
  (i) Deleting the definition of “Change of Control” appearing therein in its
  entirety and inserting in lieu thereof the following: ““Change of Control”
  shall mean the occurrence of any of the following events: (a) at any time
  prior to the consummation of a Qualifying IPO, the Permitted Investors cease
  to “beneficially own” (within the meaning of Rules 13d-3 and 13d-5 under the
  Exchange Act), or to have the power to vote or direct the voting of, Voting
  Stock of Holdings representing more than fifty percent (50%) of the voting
  power of the total outstanding Voting Stock of Holdings; (b) at any time as
  of or after the consummation of a Qualifying IPO, (i) any “person” or “group”
  (within the meaning of Sections 13(d) and 14(d) of the Exchange Act, but
  excluding any employee benefit plan of such person and its subsidiaries, and
  any person or entity acting in its capacity as trustee, agent or other
  fiduciary or administrator of any such plan, and excluding the Permitted
  Investors) shall become the “beneficial owner” (within the meaning of Rules
  13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of Voting
  Stock of the Qualifying IPO Issuer entitling such “person” or “group” to cast
  more than thirty-five percent (35%) of the votes eligible to be cast in an
  election of directors, managing members or general partners, as applicable,
  of the Qualifying IPO Issuer and (ii) the Permitted Investors shall own
  outstanding Voting Stock of the Qualifying IPO Issuer having a lesser
  percentage of the votes eligible to be cast in such an election of the
  Qualifying IPO Issuer at such time than the “person” or “group” in the
  foregoing clause (i); 

  

 

	
  

  	
  6 #86469808v2 (c) Holdings ceases to own and control, directly
  or indirectly, all of the voting rights associated with all of the
  outstanding Equity Interests of Parent and Borrower; or (d) a “Change of
  Control” shall occur under and as defined in the Revolving Credit Facility
  Documentation.”. (ii) Deleting the definition of “Continuing Director”
  appearing therein in its entirety. (iii) Deleting the definition of
  “Qualifying IPO Issuer” appearing therein in its entirety and inserting in
  lieu thereof the following: ““Qualifying IPO Issuer” means Holdings or a
  corporation or other legal entity which either (a) owns, directly or
  indirectly, 100% of the outstanding Stock of Holdings or (b) is the sole
  managing member of Holdings. For the avoidance of doubt, upon consummation of
  the Neff Corporation Qualifying IPO, Neff Corporation shall be a Qualifying
  IPO Issuer.”. (iv) Amending the definition of “Consolidated EBITDA” appearing
  therein by (A) deleting “and” appearing at the end of clause (a)(xiii)
  thereof and inserting in lieu thereof “,” and (B) inserting two new clauses
  immediately after the end of clause (a)(xiv) thereof and immediately before
  the words “and minus” following the end of clause (a)(xiv), as follows: “,
  (xv) fees, expenses and other amounts payable by any Loan Party in connection
  with its performance, or payable or reimbursable to Neff Corporation in
  connection with its performance, of its obligations under the Tax Receivable Agreement
  and the IPO Common Unit Purchase Agreement and (xvi) any fees, costs,
  expenses or charges related to, or arising in connection with, the Neff
  Corporation Qualifying IPO, Amendment No. 1 or Revolving Credit Facility
  Amendment No. 2 (including, without limitation, (A) payment of consent fees
  to lenders, (B) payment of prepayment premium and breakage costs to lenders,
  (C) any incentive bonuses and other compensation, if any, paid or payable to
  employees and/or members of the board of directors of any of the Loan Parties
  in connection with the Neff Corporation Qualifying IPO or under any Neff
  Holdings LLC 2014 Bonus Plans, (D) filing fees and exchange listing fees, (E)
  “roadshow” expenses, printer costs and other offering expenses and (F)
  underwriter discounts and commissions),”. (v) By deleting the definition of
  “Permitted Tax Distributions” appearing therein in its entirety and inserting
  in lieu thereof the following: ““Permitted Tax Distributions” shall mean: 

  

 

	
  

  	
  7 #86469808v2 (1) for so long as for U.S. federal income tax
  purposes Parent is taxed as a partnership or disregarded entity and is not
  wholly owned (directly or indirectly) by a corporate parent, (A) with respect
  to any taxable year ending after the Closing Date, cash distributions to fund
  the assumed income tax liabilities of the direct or indirect equity owners of
  Parent (including estimated tax liabilities) in respect of the income of
  Parent for such taxable year, in an aggregate amount equal to the excess of
  (a) the product of (x) the net taxable income of Parent (treating Parent as a
  taxable entity, and calculated (i) by including in such net taxable income
  Parent’s distributive share of all tax items attributable to Parent and any
  Subsidiary of Parent taxed as a partnership or disregarded entity for U.S.
  federal income tax purposes, and (ii) without regard to any adjustments
  pursuant to Section 734 of the Code that arises on or after the Qualifying
  IPO or any adjustments pursuant to Section 743 of the Code) for the taxable
  year in question, reduced by any cumulative net taxable loss with respect to
  any prior taxable year ending after the Closing Date to the extent such prior
  net taxable loss (I) is of a character (ordinary or capital) that would
  permit such loss to be deducted against the income of the taxable year in
  question and (II) was not previously taken into account in determining the
  assumed income tax liabilities for any prior taxable year and (y) the highest
  combined marginal federal and applicable state and/or local income tax rate
  (taking into account the deductibility of state and local income taxes for
  U.S. federal income tax purposes and the character of the taxable income in
  question (i.e., long term capital gain, qualified dividend income, etc.))
  applicable to an individual United States citizen or corporation (whichever
  is higher) residing in New York, New York for the taxable year in question
  (or portion thereof), over (b) in the case of any taxable year beginning
  prior to the Closing Date, the aggregate amount of assumed estimated tax
  payments that should have been made under Section 6654 of the Code prior to
  the Closing Date (based on the assumption that all of the owners are
  individual or corporate residents of New York, New York (which results in a
  higher applicable combined marginal federal and applicable state and/or local
  income tax rate), calculated in a manner consistent with the calculation in
  clause (y) above); provided that, for the avoidance of doubt, in the event of
  any tax audit adjustment or other tax assessment or the filing of an amended
  tax return that results in additional taxable income of Parent (treating
  Parent as a taxable entity), the Permitted Tax Distributions with respect to
  such taxable year ending on or after the Closing Date shall be recalculated
  by giving effect to such adjustment, assessment or amended tax return (for
  the avoidance of doubt, taking into account interest and penalties), in a
  manner consistent with the calculation in clause (B) below) and (B) with
  respect to any taxable year ending prior to the Closing Date, cash
  distributions to pay the assumed income tax liabilities of the direct or
  indirect equity owners of Parent in respect of the income of Parent for such
  taxable year, in an aggregate amount equal to the sum of (i) the product of
  (I) any additional taxable income of Parent (calculated in a 

  

 

	
  

  	
  8 #86469808v2 manner consistent with the calculation in clause
  (A) above) for such taxable year resulting from a tax audit adjustment or
  other tax assessment or the filing of an amended tax return made after the
  Closing Date and (II) the highest combined marginal federal and applicable
  state and/or local income tax rate (taking into account the deductibility of
  state and local income taxes for U.S. federal income tax purposes and the character
  of the taxable income in question (i.e., long term capital gain, qualified
  dividend income, etc.)) applicable to an individual United States citizen or
  corporation (whichever is higher) residing in New York, New York for the
  taxable year in question plus (ii) interest and penalties relating to such
  tax audit adjustment, assessment or amended tax return, (2) with respect to
  any taxable period for which Parent or any of its Subsidiaries is a member of
  a consolidated, combined or similar income, franchise or other state and/or
  local tax group of which Holdings or its direct or indirect parent is the
  common parent (a “Tax Group”), or for which Parent is a partnership or
  disregarded entity that is wholly owned (directly or indirectly) by a
  corporate parent (a “Corporate Parent”), cash distributions to pay the
  portion of the Tax Group’s or Corporate Parent’s actual cash income,
  franchise or other state and/or local tax liability attributable to Parent
  and/or its Subsidiaries, in an amount not to exceed the income, franchise or
  other state and/or local tax liability that would have been payable by Parent
  and/or such Subsidiaries if such entities had always been taxable on a
  stand-alone basis (reduced by any such income, franchise or other state
  and/or local taxes paid or to be paid directly by Parent or its
  Subsidiaries), and (3) cash distributions to pay any taxes of Holdings not
  described in clause (1) or (2) above, provided that the aggregate payments
  pursuant to this clause (3) shall not exceed $250,000 per calendar year.”.
  (vi) By deleting the definition of “Voting Stock” appearing therein in its
  entirety and inserting in lieu thereof the following: ““Voting Stock” shall
  mean, with respect to any Person, any class or classes of Stock of such
  Person that entitles the holders thereof to vote in the election of
  directors, managing members or general partners, as the case may be, of such
  Person.” (i) Section 1.01 of the Credit Agreement shall be and hereby is
  amended by inserting the following definitions in appropriate alphabetical
  order: “Amended Neff Holdings LLC Management Equity Plan” means the Amended
  Neff Holdings LLC Management Equity Plan as in effect on the Amendment No. 1
  Operative Date substantially in the form attached to Amendment No. 1 as
  Exhibit E as further amended from time to time in any manner that the
  Borrower reasonably determines is not adverse to the interests of the
  Administrative Agent or the Lenders. 

  

 

	
  

  	
  9 #86469808v2 “Amendment No. 1” means that certain Amendment No.
  1 to Second Lien Credit Agreement, dated as of the Amendment No. 1 Effective
  Date, among the Administrative Agent, the Lenders party thereto, Holdings,
  Parent and the Borrower. “Amendment No. 1 Effective Date” means October 14,
  2014. “Amendment No. 1 Operative Date” has the meaning set forth in Amendment
  No. 1. “Holdings LLC Agreement” means the Second Amended and Restated Limited
  Liability Company Agreement as in effect on the Amendment No. 1 Operative
  Date substantially in the form attached to Amendment No. 1 as Exhibit B as
  further amended from time to time in any manner that the Borrower reasonably
  determines is not adverse to the interests of the Administrative Agent or the
  Lenders. “IPO Common Unit Purchase Agreement” means the IPO Common Unit
  Purchase Agreement as in effect on the Amendment No. 1 Operative Date
  substantially in the form attached to Amendment No. 1 as Exhibit C as amended
  from time to time in any manner that the Borrower reasonably determines is
  not adverse to the interests of the Administrative Agent or the Lenders.
  “Neff Corporation” means Neff Corporation, a Delaware corporation formed at
  the direction of Wayzata for the purposes of effecting a Qualifying IPO,
  together with its successors and assigns. “Neff Corporation Qualifying IPO”
  means a Qualifying IPO of Neff Corporation in connection with which (a)
  Holdings amends and restates its limited liability operating agreement
  substantially in the form of Exhibit B to Amendment No. 1, (b) Neff
  Corporation applies all or a portion of the net proceeds from such Qualifying
  IPO to purchase common units of Holdings, and (c) Neff Corporation becomes
  the sole managing member of Holdings. “Neff Holdings LLC 2014 Bonus Plans”
  means each of (a) the Neff Holdings LLC 2014 Management Special Bonus Plan,
  effective June 1, 2014, (b) the Neff Holdings LLC Amended and Restated Sale
  Transaction Bonus Plan, effective as of June 1, 2014 and as the same was
  further amended on or prior to the Amendment No. 1 Operative Date in
  connection with the Neff Corporation Qualifying IPO, and (c) the Neff
  Holdings LLC Incentive Bonus Plan, as in effect on or prior to the Amendment
  No. 1 Operative Date. “Permitted Tax Receivable Payment” means the aggregate
  amount of any accelerated lump sum amounts payable pursuant to the Tax
  Receivable Agreement by reason of any early termination of the Tax Receivable
  Agreement as a result of or in connection with the occurrence of a Change of
  Control that has been waived by the Required Lenders. 

  

 

	
  

  	
  10 #86469808v2 “Revolving Credit Facility Amendment No. 2” means
  that certain Amendment No. 2 to Amended and Restated Credit Agreement, to be
  dated and effective prior to or simultaneous with the Neff Corporation
  Qualifying IPO, by and among Holdings, Parent, the Borrower, the Revolving
  Agent and the Revolving Lenders that are party thereto, which amends the
  Revolving Credit Facility. “Revolving Lenders” means each of the “Lenders” as
  defined in the Revolving Credit Facility. “Tax Receivable Agreement” means
  the Tax Receivable Agreement as in effect on the Amendment No. 1 Operative
  Date substantially in the form attached to Amendment No. 1 as Exhibit D as
  amended from time to time in any manner that the Borrower reasonably
  determines is not adverse to the interests of the Administrative Agent or the
  Lenders. Section 3. Representations. Holdings, Parent, Borrower and each
  other Loan Party represents and warrants that immediately prior to and after
  giving effect to the effectiveness of this Amendment (i) the representations
  and warranties set forth in Article 3 of the Credit Agreement or any other
  Loan Document will be true and correct in all material respects (except to
  the extent any such representation or warranty is qualified by “materially”,
  “Material Adverse Effect” or a similar term, in which case such representation
  and warranty shall be true and correct in all respects) on and as of the
  Amendment No. 1 Effective Date and the Amendment No. 1 Operative Date, except
  in each case to the extent that such representations and warranties expressly
  relate to an earlier date, in which case they shall be true and correct in
  all material respects (except to the extent any such representation or
  warranty is qualified by “materially”, “Material Adverse Effect” or a similar
  term, in which case such representation and warranty shall be true and
  correct in all respects) as of such earlier date and (ii) no Default or Event
  of Default shall have occurred and be continuing under the Credit Agreement
  on the Amendment No. 1 Effective Date or on the Amendment No. 1 Operative Date.
  Section 4. Conditions to Effectiveness; Operation of Amendments and
  Confirmations. (a) This Amendment No. 1 shall become effective on the date
  (the “Amendment No. 1 Effective Date”) when, and only when, each of the
  following conditions shall have been satisfied to the reasonable satisfaction
  of the Administrative Agent (or waived by the Administrative Agent in its
  sole discretion): (i) Execution of Counterparts. The Administrative Agent
  shall have received from Holdings, Parent, Borrower, each other Loan Party
  and the Required Lenders under the Credit Agreement an original counterpart
  of this Amendment signed by such party or a facsimile or electronic (i.e.,
  “.pdf” or “.tif”) copy of such signed original counterpart. (ii) Officer’s
  Certificate. Borrower shall have delivered to the Administrative Agent duly
  executed copies of a certificate of an authorized officer of Borrower, dated
  the Amendment No. 1 Effective Date, certifying on behalf of Borrower that (i)
  as of the Amendment No. 1 Effective Date and after giving 

  

 

	
  

  	
  11 #86469808v2 effect to this Amendment, the representations and
  warranties in this Amendment and the Credit Agreement are accurate, true and
  correct in all material respects and (ii) no Default or Event of Default has
  occurred or is continuing. (iii) Expenses. The Administrative Agent shall
  have received all reasonable and documented fees and invoiced out-of-pocket
  expenses (including reasonable and documented expenses of counsel) due and
  payable by Holdings, Parent or Borrower under Section 9.05(a) of the Credit
  Agreement or otherwise on or prior to the Amendment No. 1 Effective Date to
  the extent an invoice has been submitted to the Borrower therefor. (b)
  Notwithstanding the fact that this Amendment No. 1 has become effective on
  the Amendment No. 1 Effective Date, the amendments set forth in Section 2 and
  consents set forth in Section 5(b) shall become operative only on the date on
  or prior to April 30, 2015 (the “Amendment No. 1 Operative Date”) when, and
  only when, each of the following conditions shall have been satisfied to the
  reasonable satisfaction of the Administrative Agent (or waived by the
  Administrative Agent in its sole discretion) and once operative, the
  provisions in Section 2 and Section 5(b) shall then be deemed to have occurred
  substantially simultaneous with the events contemplated therein and in
  Section 5(b): (i) Officer’s Certificate. Borrower shall have delivered to the
  Administrative Agent duly executed copies of a certificate of an authorized
  officer of Borrower, dated the Amendment No. 1 Operative Date, certifying on
  behalf of Borrower that (i) as of the Amendment No. 1 Operative Date and
  after giving effect to this Amendment, the representations and warranties in
  this Amendment and the Credit Agreement are accurate, true and correct in all
  material respects, (ii) no Default or Event of Default has occurred or is
  continuing and (iii) the Neff Corporation Qualifying IPO has closed or will
  close substantially simultaneous with the operation of the amendments set
  forth in Section 2 of this Amendment. (ii) Prepayment of Indebtedness. On the
  Amendment No. 1 Operative Date (after giving effect to this Amendment and the
  operation of the amendments and consents herein), (i) substantially
  simultaneous with the consummation of the Neff Corporation Qualifying IPO,
  the Borrower shall have repaid or prepaid Indebtedness in an aggregate
  principal amount not less than the greater of (x) $75,000,000 and (y) the
  aggregate net proceeds of the Neff Corporation Qualifying IPO (excluding any exercise
  of the over-allotment option) received by Holdings (and not otherwise
  applied, substantially concurrently with the consummation of the Neff
  Corporation Qualifying IPO, to redeem the Stock of Holdings from the
  Permitted Investors in lieu of the direct purchase of such Stock by Neff
  Corporation), net of premium, interest, breakage costs, consent fees, other
  fees and expenses incurred in connection with the repayment of such
  Indebtedness or in connection with this Amendment or the Revolving Credit Facility
  Amendment No. 2; provided that, (x) in the case of any revolving 

  

 

	
  

  	
  12 #86469808v2 Indebtedness, commitments in respect thereof need
  not be terminated, and (y) not less than $50,000,000 of such repayment or
  prepayment, as applicable, shall be applied to prepay Loans (together with
  amounts required by the Credit Agreement to be paid upon such prepayment) and
  (ii) Borrower shall have delivered a certificate to the Administrative Agent
  setting forth the following (which calculation shall be reasonably acceptable
  to the Administrative Agent): the sum of (a) the aggregate principal amount
  of the Loans prepaid with a portion of the net proceeds of from a Qualifying
  IPO received by the Loan Parties, plus (b) a 2.00% prepayment premium on the
  principal amount of Loans repaid pursuant to the foregoing clause (a), plus
  (c) accrued and unpaid interest in respect of the principal amount of Loans
  repaid pursuant to the foregoing clause (a), plus (d) solely to the extent
  ascertainable as of the date of pricing of the Neff Corporation Qualifying
  IPO, customary LIBOR breakage fees payable to the Lenders in respect of the
  principal amount of Loans repaid pursuant to the foregoing clause (a), plus
  (e) consent fees payable to the Lenders, plus (f) solely to the extent ascertainable
  as of the date of pricing the Neff Corporation Qualifying IPO, expenses
  payable to counsel to the Administrative Agent in connection with this
  Amendment No. 1. (iii) Amendment Fee. The Borrower shall have paid to each
  Lender consenting to this Amendment prior to 3:00 p.m. (New York City time)
  on October 10, 2014, a nonrefundable cash fee (the “Amendment Fee”) in U.S.
  dollars equal to five basis points of the Loans held by such Lender as of the
  Amendment No. 1 Effective Date. Such payment of the Amendment Fee shall be
  made to the Administrative Agent for further distribution of the Lenders
  entitled thereto. (iv) Expenses. The Administrative Agent shall have received
  all reasonable and documented fees and invoiced out-of-pocket expenses
  (including reasonable and documented expenses of counsel) due and payable by
  Holdings, Parent or Borrower under Section 9.05(a) of the Credit Agreement or
  otherwise on or prior to the Amendment No. 1 Operative Date to the extent an
  invoice has been submitted to the Borrower therefor. For the avoidance of
  doubt, the operation of Section 2 and Section 5(b) are contingent upon the
  closing of the Neff Corporation Qualifying IPO and the satisfaction of the
  other conditions precedent set forth in this Section 4(b), and this Amendment
  shall lapse and have no effect if the Neff Corporation Qualifying IPO has not
  occurred and the other conditions set forth in this Section 4(b) have not
  been satisfied on or before April 30, 2015. Section 5. Confirmation of Loan
  Documents; Lender Consents. (a) The Loan Parties hereby confirm that the
  Collateral Documents and the obligations of such parties under the Loan
  Documents continue in full force and effect and shall not be affected by this
  Amendment, except as expressly provided herein. Each of the Loan Parties
  hereby further ratifies and reaffirms the validity and enforceability of 

  

 

	
  

  	
  13 #86469808v2 all of the Liens and security interests
  heretofore granted, pursuant to and in connection with the Collateral
  Documents, to the Administrative Agent, as collateral security for the
  Obligations under the Loan Documents in accordance with their respective
  terms, and acknowledges that all of such Liens and security interests, and
  all Collateral heretofore pledged as security for such Obligations, continue
  to be and remain collateral for such obligations from and after the date
  hereof. (b) Notwithstanding anything set forth in the Credit Agreement,
  subject to the conditions set forth in Section 4 of this Amendment, each of
  the Lenders hereby consents to: (i) the entry by the Loan Parties into the
  Revolving Credit Facility Amendment No. 2 substantially in the form attached
  hereto as Exhibit A; (ii) the amendment and restatement of the Holdings
  limited liability company operating agreement substantially in the form
  attached hereto as Exhibit B; (iii) the entry by Holdings into the IPO Common
  Unit Purchase Agreement substantially in the form attached hereto as Exhibit
  C; (iv) the entry by Holdings into the Tax Receivable Agreement substantially
  in the form attached hereto as Exhibit D; (v) the entry by Holdings into the
  Amended Neff Holdings LLC Management Equity Plan substantially in the form
  attached hereto as Exhibit E; and (vi) all transactions directly related to
  the foregoing clauses (i) through (v). (c) Upon the Amendment No. 1 Effective
  Date this Amendment shall constitute a Loan Document. The execution,
  delivery, and performance of this Amendment shall not operate, except as
  expressly set forth herein, as a waiver of, consent to, or a modification or
  amendment of, any right, power, or remedy of Administrative Agent or any
  Lender under the Credit Agreement or any other Loan Document. Except for the
  amendments to the Credit Agreement and the consents expressly set forth
  herein, the Credit Agreement and the other Loan Documents shall remain
  unchanged and in full force and effect. The amendments and consents set forth
  herein shall, except to the extent they become operative on the Amendment No.
  1 Operative Date, (i) neither excuse future non-compliance with the Loan
  Documents nor operate as a waiver of any Default or Event of Default, (ii)
  not operate as a consent to any matter under the Loan Documents except as
  expressly set forth herein and (iii) not be construed as an indication that
  the Lenders will agree to any other amendments or give any other consents or
  waivers with respect to the Credit Agreement or the other Loan Documents that
  may be requested by the Loan Parties; it being understood that the agreement
  of any other amendments or giving of any other consents or waivers 

  

 

	
  

  	
  14 #86469808v2 which may hereafter be requested by the Loan
  Parties remains in the sole and absolute discretion of Administrative Agent
  and the Lenders. Section 6. Certain Consequences Of Effectiveness. On and
  after the Amendment No. 1 Operative Date, the rights and obligations of the
  parties to the Credit Agreement and each other Loan Document shall be
  governed by the Credit Agreement as amended hereby; provided that the
  provisions of Section 2 and Section 5(b) of this Amendment shall not become
  operative (and this Amendment shall lapse and have no effect) unless and
  until the Neff Corporation Qualifying IPO and the other conditions precedent
  set forth in Section 4(b) hereof have occurred on or before April 30, 2015.
  To the extent that this Amendment has become effective and the provisions
  hereof have become operative, the Credit Agreement and the other Loan
  Documents, as specifically amended hereby, are, and shall continue to be, in
  full force and effect and are hereby ratified and confirmed in all respects.
  Section 7. Severability. In the event any one or more of the provisions
  contained in this Amendment should be held invalid, illegal or unenforceable
  in any respect, the validity, legality and enforceability of the remaining
  provisions contained herein shall not in any way be affected or impaired
  thereby (it being understood that the invalidity of a particular provision in
  a particular jurisdiction shall not in and of itself affect the validity of
  such provision in any other jurisdiction). The parties shall endeavor in
  good-faith negotiations to replace the invalid, illegal or unenforceable
  provisions with valid provisions the economic effect of which comes as close
  as possible to that of the invalid, illegal or unenforceable provisions.
  Section 8. Governing Law; Jurisdiction; Service of Process. (a) THIS
  AMENDMENT AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN
  CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS
  AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
  THE STATE OF NEW YORK. (b) BORROWER AND EACH LOAN PARTY HEREBY IRREVOCABLY
  AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION
  OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER
  IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST ANY AGENT, ANY LENDER, OR ANY
  RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AMENDMENT OR THE
  TRANSACTIONS RELATING HERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE
  OF NEW YORK SITTING IN NEW YORK COUNTY IN THE BOROUGH OF MANHATTAN, AND OF
  THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND
  ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO
  IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL
  CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD
  AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY
  APPLICABLE LAW, SUCH FEDERAL COURT. NOTHING IN THIS AMENDMENT SHALL AFFECT
  ANY RIGHT THAT THE ADMINISTRATIVE AGENT, THE COLLATERAL AGENT OR ANY LENDER
  MAY 

  

 

	
  

  	
  15 #86469808v2 OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
  RELATING TO THE CREDIT AGREEMENT OR THE OTHER LOAN DOCUMENTS AGAINST
  HOLDINGS, PARENT, THE BORROWER OR THEIR RESPECTIVE PROPERTIES IN THE COURTS
  OF ANY JURISDICTION. (c) HOLDINGS, PARENT AND THE BORROWER HEREBY IRREVOCABLY
  AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND
  EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
  LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
  TO THIS AMENDMENT IN ANY NEW YORK STATE OR FEDERAL COURT. EACH OF THE PARTIES
  HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE
  DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
  PROCEEDING IN ANY SUCH COURT. (d) EACH PARTY TO THIS AMENDMENT IRREVOCABLY
  CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION
  9.01 OF THE CREDIT AGREEMENT. NOTHING IN THIS AMENDMENT WILL AFFECT THE RIGHT
  OF ANY PARTY TO THIS AMENDMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
  BY LAW. Section 9. Waiver of Jury Trial. BORROWER, EACH LOAN PARTY,
  ADMINISTRATIVE AGENT, EACH LENDER AND EACH OTHER PARTY HERETO HEREBY WAIVE,
  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
  TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
  OF, UNDER OR IN CONNECTION WITH THIS AMENDMENT OR ANY OF THE OTHER LOAN
  DOCUMENTS. BORROWER, EACH LOAN PARTY, ADMINISTRATIVE AGENT, EACH LENDER AND
  EACH OTHER PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
  ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
  SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
  FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
  HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE
  MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9. Section 10.
  Counterparts. This Amendment may be executed in counterparts (and by
  different parties hereto on different counterparts), each of which shall
  constitute an original, but all of which when taken together shall constitute
  a single contract. Delivery of an executed signature page to this Amendment
  by facsimile transmission or in electronic (i.e., “pdf” or “tif”) format
  shall be as effective as delivery of a manually signed counterpart of this
  Amendment. Section 11. Certain Tax Matters. For purposes of determining
  withholding Taxes imposed under the Foreign Account Tax Compliance Act
  (FATCA), from and after the Amendment No. 1 Effective Date, the Borrower and
  the Administrative Agent shall treat (and the Lenders hereby authorize the
  Administrative Agent to treat) the Loans as not qualifying as a
  "grandfathered obligation" within the meaning of Treasury
  Regulation Section 1.1471-2(b)(2)(i). 

  

 

	
  

  	
  IN WITNESS WHEREOF, the parties hereto have caused this
  Amendment to be duly executed as of the date first above written. NEFF LLC,
  as Parent and a Loan Party By: Name: Mark Irion Title: Chief Financial
  Officer NEFF HOLDINGS LLC, as Holdings and a Loan Party By: Name: Mark Irion
  Title: Chief Financial Officer NEFF RENTAL LLC, as Borrower and a Loan Party
  By: Name: Mark Irion Title: Chief Financial Officer [Signature Page –
  Amendment No. 1 to Second Lien Credit Agreement]

  

 

	
  

  	
  IN WITNESS WHEREOF, the parties hereto have caused this
  Amendment to be duly executed as of the date first above written. CREDIT
  SUISSE AG, CAYMAN ISLANDS BRANCH, as Administrative Agent By: Name: MIKHAIL
  FAYBUSOVICH Title: AUTHORIZED SIGNATORY By: Name: Remy Riester Title:
  Authorized Signatory [Signature Page – Amendment No. 1 to Second Lien Credit
  Agreement]

  

 

	
  

  	
  #86469808v2 EXHIBIT A FORM OF REVOLVING CREDIT FACILITY AMENDMENT
  NO. 2 [see attached] 

  

 

	
  

  	
  EXECUTION VERSION AMENDMENT NO. 2 TO AMENDED AND RESTATED CREDIT
  AGREEMENT This AMENDMENT NO. 2, dated as of October 14, 2014 (this
  “Amendment”), is entered into by and among Neff LLC, a Delaware limited
  liability company (“Parent Borrower”), Neff Holdings LLC, a Delaware limited
  liability company (“Holdings”), Neff Rental LLC, a Delaware limited liability
  company, Bank of America, N.A., as administrative agent (in such capacity,
  “Agent”), and each of the financial institutions on the signature pages
  hereto in its capacity as a Lender under the Credit Agreement (as defined
  below), and amends that certain Amended and Restated Senior Secured Credit
  Agreement, dated as of October 1, 2010 and as amended and restated as of
  November 20, 2013 (as amended by that Amendment No. 1 to Amended and Restated
  Credit Agreement, dated as of June 9, 2014, and as the same may be further
  amended, restated, amended and restated, supplemented or otherwise modified
  from time to time prior to the date hereof, the “Credit Agreement”), by and
  among Parent Borrower, Holdings, the other Credit Parties party thereto, the
  Agent, the Lenders from time to time party thereto and the other parties
  thereto. Capitalized terms used and not otherwise defined herein shall have
  the respective meanings set forth in the Credit Agreement. PRELIMINARY
  STATEMENTS (1) WHEREAS, Parent Borrower, the other Credit Parties, the Agent
  and the Lenders have entered into the Credit Agreement; (2) WHEREAS, Parent
  Borrower, the other Credit Parties, the Agent and certain Lenders wish to
  amend the Credit Agreement as set forth in Section 2 below and provide the
  confirmations set forth in Section 5 below; (3) WHEREAS, pursuant to Section
  9.2 of the Credit Agreement Parent Borrower may, with the consent of the
  Agent and the Requisite Lenders, amend the Credit Agreement as set forth in
  Section 2 below; and (4) WHEREAS, the Requisite Lenders are willing to
  consent to the amendments set forth in Section 2 below and provide the
  confirmations set forth in Section 5(b) below. NOW, THEREFORE, in
  consideration of the mutual covenants and agreements herein contained and for
  other good and valuable consideration, the sufficiency and receipt of which
  are hereby acknowledged, the parties hereto hereby agree as follows: Section
  1. Defined Terms; References. Unless otherwise specifically defined herein,
  each capitalized term used herein that is not otherwise defined shall have
  the respective meaning assigned to such term in the Credit Agreement. Each
  reference contained in any Loan Document to “hereof”, “hereunder”, “herein”
  and “hereby” and each other similar reference and each reference contained in
  any Loan Document to “this Agreement” and each other similar reference, and
  each reference contained in any Loan Document to any other Loan Document or
  “thereunder”, “thereof” or other similar reference to such other Loan
  Document, shall, in each case after the Amendment No. 2 Operative Date (as
  defined in Section 4 of this Amendment), refer to such Loan Document or such
  other Loan Document as amended by this Amendment. Section 2. Amendments. With
  effect from the Amendment No. 2 Operative Date: 

  

 

	
  

  	
  2 (a) Section 1.5(c)(iii) of the Credit Agreement shall be and
  hereby is amended by deleting the text of such Section in its entirety and
  inserting in lieu thereof “[Reserved]”. (b) Section 2.9(c)(ii) of the Credit
  Agreement shall be and hereby is amended by deleting the proviso at the end
  thereof and inserting in lieu thereof: “provided, however, that after
  delivery by Agent of a control notice or similar notice as set forth in this
  clause (ii), (A) if the applicable Event of Default causing such delivery has
  been cured or (B) if such control notice or similar notice was delivered as a
  result of the Excess Availability thresholds set forth in this clause (ii),
  if Excess Availability is greater than or equal to the greater of (I) 12.5%
  of the aggregate Revolving Loan Commitments then in effect and (II) $35.0
  million for a period of thirty (30) consecutive days (a “Cash Dominion
  Reversal Event”), then in the case of clause (A) or (B) Agent shall within
  one (1) Business Day thereof rescind such control notice or similar notice
  and instruct the applicable depositary institution, securities intermediary
  or commodities intermediary that all amounts on deposit in or credited to the
  applicable accounts shall cease to be transferred to the Concentration
  Account and shall be immediately available to the applicable Credit Party.”
  (c) Section 3.1(j) of the Credit Agreement shall be and hereby is amended by
  deleting the text of such Section in its entirety and inserting in lieu
  thereof text as follows: “unsecured Indebtedness in an aggregate principal
  amount not to exceed $50,000,000 at any one time outstanding so long as no
  cash interest or amortization payments are made on, or required with respect
  to, such Indebtedness and such Indebtedness has a final maturity date at
  least six months after the Commitment Termination Date;”. (d) Section 3.5 of
  the Credit Agreement shall be and hereby is amended as follows: (i) By
  inserting immediately before the semicolon at the end of clause (a) thereof
  the text “and Permitted Tax Receivable Payments”. (ii) By deleting the text
  appearing in clause (e) thereof in its entirety and inserting in lieu thereof
  the following: “Parent Borrower may make Restricted Payments to Holdings, and
  Holdings may make Restricted Payments to any Qualifying IPO Issuer, in the
  minimum amount necessary to enable Holdings or such Qualifying IPO Issuer to
  make repurchases of Stock deemed to occur upon the exercise of stock options
  if such Stock represents a portion of the exercise price thereof or the
  minimum amount of taxes due upon such exercises;”. 

  

 

	
  

  	
  3 (iii) (A) By deleting “and” at the end of clause (i) thereof,
  (B) replacing the period at the end of clause (j) thereof with “; and”, and
  (C) adding a new clause (k) at the end of such Section as follows: “(k) to
  the extent the Holdings LLC Agreement requires, (i) to reimburse Neff
  Corporation for expenses incurred on behalf or directly for the benefit of
  Holdings and its Subsidiaries, including without limitation expenses incurred
  in connection with the Neff Corporation Qualifying IPO, (ii) if any member of
  Holdings exercises its right to have its units in Holdings redeemed in
  accordance with the Holdings LLC Agreement, Holdings may make Restricted
  Payments in connection with such redemption in the form of any cash or Stock
  contributed to Holdings by Neff Corporation for such purpose, and (iii) in
  accordance with the Holdings LLC Agreement, Holdings shall be permitted to
  (A) undertake all actions, including, without limitation, a reclassification,
  distribution, division or recapitalization, with respect to its common units,
  to maintain at all times a one-to-one ratio between the number of common
  units owned by Neff Corporation and the number of outstanding shares of Class
  A common stock of Neff Corporation (disregarding, for purposes of maintaining
  the one-to-one ratio, such Stock of Neff Corporation as provided in the Holdings
  LLC Agreement); provided that, in the case of any action pursuant to this
  clause (k)(iii)(A) involving a distribution or other transfer by Holdings of
  cash or assets (other than Stock of Holdings), such distribution or other
  transfer is then permitted pursuant one or more other clauses of this Section
  3.5, and (B) issue, transfer or deliver from treasury stock any units of
  Holdings to Neff Corporation.”. (e) Section 3.6(a) of the Credit Agreement
  shall be and hereby is amended by adding a proviso at the end thereof as
  follows: “provided that Holdings shall be permitted to amend and restate its
  limited liability company operating agreement on or before the closing date
  of the Neff Corporation Qualifying IPO substantially in the form attached as
  Exhibit B to Amendment No. 2;”. (f) Section 3.8(b) of the Credit Agreement
  shall be and hereby is amended by deleting the text appearing in clause (i)
  thereof in its entirety and inserting in lieu thereof the following: “(i) (x)
  reasonable fees and compensation paid to, and indemnity provided on behalf
  of, officers, directors, managers, members, employees or consultants of
  Holdings, Parent Borrower or any of its Subsidiaries as determined in good
  faith by Parent Borrower’s Board of Directors or senior management, (y) incentive
  bonuses and other compensation, if any, paid to employees and/or members of
  the Board of Directors of any of the Credit Parties in connection with the
  2014 Loan Transactions and (z) incentive bonuses and other compensation, if
  any, paid to employees and/or members of the Board of Directors of any of the
  Credit Parties 

  

 

	
  

  	
  4 in connection with the Neff Corporation Qualifying IPO or
  under any Neff Holdings LLC 2014 Bonus Plan;”. (g) Section 3.8(b) of the
  Credit Agreement shall be and hereby is amended by (i) deleting “and” at the
  end of clause (v) thereof, (ii) deleting the period at the end of clause (vi)
  thereof and inserting in lieu thereof “; and”, and (iii) adding a new clause
  (vii) to the end thereof as follows: “(vii) (A) in connection with a Neff
  Corporation Qualifying IPO, the entry into the Holdings LLC Agreement, the
  Tax Receivable Agreement, the IPO Common Unit Purchase Agreement and the
  Amended Neff Holdings LLC Management Equity Plan, and (B) Affiliate
  Transactions arising from the performance of such agreements (including
  pursuant to any amendment to such Contractual Obligations or documentation
  replacing such Contractual Obligations to the extent that such amendment or
  agreement is permitted hereunder and is not more disadvantageous to the
  applicable Credit Party or the Lenders in any material respect than the
  original Contractual Obligation).”. (h) Section 3.9(a) of the Credit
  Agreement shall be and hereby is amended by deleting such clause in its
  entirety and inserting in lieu thereof the following: “(a) Holdings shall not
  engage in any business or activity other than (i) being a guarantor with
  respect to the Obligations under the Loan Documents and performing its
  Obligations thereunder and a guarantor with respect to the obligations under
  the Second Lien Loans and any Parity Lien Debt and performing its obligations
  thereunder and the security and other documents executed in connection
  therewith, (ii) holding shares of the Stock of Parent Borrower, (iii) paying
  taxes, (iv) preparing reports to Governmental Authorities and to the holders
  of its Stock, (v) holding meetings of its Board of Directors and/or the
  holders of its Stock, preparing company records and other company activities
  required to maintain its separate company structure, (vi) entry into and
  performance of its obligations under the Neff Holdings LLC 2014 Bonus Plans
  and Amended Neff Holdings Management Equity Plan, (vii) entry into and
  performance of its obligations under the Holdings LLC Agreement, the Tax
  Receivable Agreement and the IPO Common Unit Purchase Agreement and (viii)
  any activities reasonably related thereto.”. (i) Section 3.18 of the Credit
  Agreement shall be and hereby is amended by (i) deleting “or” at the end of
  clause (a) in the first sentence thereof and replacing it with “,”, (ii)
  adding “or” at the end of clause (b)(y)(2) in the first sentence thereof and
  (iii) adding a new clause (c) to the end of the first sentence thereof as
  follows: “(c) such Indebtedness is prepaid (including any consent fees and/or
  prepayment premiums payable in connection therewith) with the proceeds from a
  Neff Corporation Qualifying IPO or, thereafter, with the net proceeds from
  any other public offering of common equity securities by Neff Corporation
  (including in each case any “green shoe” or over-allotment option in
  connection therewith) that are applied by Neff Corporation to purchase common
  units of Holdings 

  

 

	
  

  	
  5 (provided that payment of interest, customary breakage fees,
  and reimbursement of expenses of the Second Lien Agent in connection with
  such prepayment may be paid out of other funds of the Credit Parties)”. (j)
  Section 4.1 of the Credit Agreement shall be and hereby is amended by
  deleting the first full paragraph following clause (n) of such Section in its
  entirety and inserting in lieu thereof the following: “Notwithstanding
  anything to the contrary set forth in this Section 4.1 or in any other
  provision of this Agreement that refers to this Section 4.1 or any clause
  hereof, the obligations of the Parent Borrower set forth in clauses (a), (b)
  and (c) of this Section 4.1 may be satisfied by furnishing the applicable
  financial information required by such clause with respect to Neff
  Corporation and its Subsidiaries on a consolidated basis in lieu of
  furnishing the applicable financial information required by such clause with
  respect to Parent Borrower and its Subsidiaries on a consolidated basis;
  provided, that to the extent such financial information relates to Neff
  Corporation and its Subsidiaries, such information is accompanied by
  consolidating information that explains in reasonable detail the differences
  between the information relating to such Neff Corporation and its
  Subsidiaries (other than Holdings and its Subsidiaries), on the one hand, and
  the information relating to Holdings and its Subsidiaries on a consolidated
  basis, on the other hand. Documents required to be delivered pursuant to
  Section 4.1(a), (b), (c) or (h) (to the extent any such documents are
  included in materials otherwise filed with the SEC) may be delivered
  electronically and if so delivered, shall be deemed to have been delivered on
  the date (i) on which Parent Borrower posts such documents, or provides a
  link thereto on Parent Borrower’s website on the Internet at the website
  address listed in Section 9.3; (ii) on which Neff Corporation electronically
  files such documents with the U.S. Securities and Exchange Commission and
  they become publicly available on
  www.sec.gov/edgar/searchedgar/companysearch.html (or any successor website
  maintained by such agency); or (iii) on which such documents are posted on
  Parent Borrower’s behalf on an Internet or intranet website, if any, to which
  each Lender and the Agent have access (whether a commercial, third-party
  website or whether sponsored by the Agent); provided that (i) Parent Borrower
  shall deliver paper copies of such documents to the Agent or any Lender that
  requests Parent Borrower to deliver such paper copies until a written request
  to cease delivering paper copies is given by the Agent or such Lender and
  (ii) any such posting shall only be deemed delivered when Parent Borrower
  shall notify the Agent (by facsimile or electronic mail) of the posting of
  any such documents and provide to the Agent by electronic mail electronic
  versions (i.e., soft copies) of such documents. Notwithstanding anything
  contained herein, in every instance Parent Borrower shall be required to
  provide paper copies of the Compliance and Pricing Certificates required by
  Section 4.1(m) to the Agent. Except for such Compliance and Pricing
  Certificates, the Agent shall have no obligation to request the delivery or
  to maintain copies of the documents referred to above, and in any event shall
  have no responsibility to monitor compliance by Parent Borrower with any such
  

  

 

	
  

  	
  6 request for delivery, and each Lender shall be solely
  responsible for requesting delivery to it or maintaining its copies of such
  documents.” (k) Section 5.4(b)(iv) of the Credit Agreement shall be and
  hereby is amended by deleting such Section in its entirety and inserting in
  lieu thereof the following: “(iv) each Credit Party is, and at the time of
  delivery of the Pledged Stock (as defined in the Security Agreement) to Agent
  will be, the sole holder of record and, other than Wayzata (or, after the
  Neff Corporation Qualifying IPO, Neff Corporation), the sole beneficial owner
  of such pledged Collateral pledged by each Credit Party free and clear of any
  Lien thereon or affecting the title thereto, except for any Lien created by
  this Agreement or any of the Collateral Documents in favor of the Agent for
  the benefit of the Agent and Lenders and the Permitted Encumbrances;”. (l)
  Annex A to the Credit Agreement shall be and hereby is amended by: (i)
  Deleting the definition of “Change of Control” appearing therein in its entirety
  and inserting in lieu thereof the following: ““Change of Control” means any
  event, transaction or occurrence as a result of which: (a) at any time prior
  to the consummation of a Qualifying IPO, the Permitted Holders cease to
  “beneficially own” (within the meaning of Rules 13d-3 and 13d-5 under the
  Securities Exchange Act of 1934) and control all of the voting rights
  associated with ownership of more than fifty percent (50%) of the outstanding
  Stock of Holdings having ordinary voting power on a fully diluted basis; or
  (b) at any time as of or after the consummation of a Qualifying IPO, (A) any
  “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the
  Securities Exchange Act of 1934, but excluding any employee benefit plan of
  such person and its subsidiaries, and any person or entity acting in its
  capacity as trustee, agent or other fiduciary or administrator of any such
  plan, and excluding the Permitted Holders) shall become the “beneficial
  owner” (within the meaning of Rules 13d-3 and 13d-5 under the Securities
  Exchange Act of 1934), directly or indirectly, of outstanding Voting Stock of
  the Qualifying IPO Issuer entitling such “person” or “group” to cast more
  than thirty-five percent (35%) of the votes eligible to be cast in an election
  of directors, managing members or general partners, as applicable, of the
  Qualifying IPO Issuer and (B) the Permitted Holders shall own outstanding
  Voting Stock of the Qualifying IPO Issuer having a lesser percentage of the
  votes eligible to be cast in such an 

  

 

	
  

  	
  7 election of the Qualifying IPO Issuer at such time than the
  “person” or “group” in the foregoing clause (A); or (c) Holdings ceases to
  own and control all of the voting rights associated with all of the
  outstanding Stock of Parent Borrower.”. (ii) Deleting the definition of
  “Continuing Director” appearing therein in its entirety. (iii) Deleting the
  definition of “Qualifying IPO Issuer” appearing therein in its entirety and
  inserting in lieu thereof the following: ““Qualifying IPO Issuer” means
  Holdings or a corporation or other legal entity which either (a) owns,
  directly or indirectly, 100% of the outstanding Stock of Holdings or (b) is
  the sole managing member of Holdings. For the avoidance of doubt, upon
  consummation of the Neff Corporation Qualifying IPO, Neff Corporation shall
  be a Qualifying IPO Issuer.”. (iv) Deleting clause (a)(xvi) of the definition
  of “Consolidated EBITDA” appearing therein in its entirety and inserting in
  lieu thereof the following: “(xvi) fees, expenses and other amounts payable
  by any Credit Party in connection with its performance, or payable or
  reimbursable to Neff Corporation in connection with its performance, of its
  obligations under the Tax Receivable Agreement and the IPO Common Unit
  Purchase Agreement,”. (v) Further amending the definition of “Consolidated
  EBITDA” by (i) deleting “and” at the end of clause (a)(xvii) thereof and
  replacing it with “,”, (ii) adding “and” at the end of clause (a)(xviii)
  thereof and (iii) adding a new clause (a)(xix) as follows: “(xix) any fees,
  costs, expenses or charges related to, or arising in connection with, the
  Neff Corporation Qualifying IPO, Amendment No. 2 or Second Lien Amendment No.
  1 (including, without limitation, (A) payment of consent fees to lenders, (B)
  payment of prepayment premium and breakage costs to lenders, (C) any
  incentive bonuses and other compensation, if any, paid or payable to
  employees and/or members of the Board of Directors of any of the Credit
  Parties in connection with the Neff Corporation Qualifying IPO or under any
  Neff Holdings LLC 2014 Bonus Plan, (D) filing fees and exchange listing fees,
  (E) “roadshow” expenses, printer costs and other offering expenses and (F)
  underwriter discounts and commissions)”. 

  

 

 

	
  

  	
  8 (vi) Deleting
  clause (b)(iv) of the definition of “Fixed Charge Coverage Ratio” appearing
  therein in its entirety and inserting in lieu thereof the following: “(iv)
  Restricted Payments paid by Holdings and its Subsidiaries after the
  Restatement Effective Date pursuant to Sections 3.5(a), (e), (f), (i) and
  (k)(i) (with respect to (k)(i), solely to the extent that such Restricted
  Payment is related to an expense of Neff Corporation that is an expense item
  that, if such payment were made by the Parent Borrower or its Subsidiaries
  and deducted in the calculation of Consolidated Net Income, such payment
  would be added back in the calculation of Consolidated EBITDA.”. (vii)
  Deleting the definition of “Stock” appearing therein in its entirety and
  inserting in lieu thereof the following: ““Stock” means all shares, options,
  warrants, general or limited partnership interests, membership interests or
  other equivalents (regardless of how designated) of or in a corporation,
  partnership, limited liability company or equivalent entity whether voting or
  nonvoting, including common stock, preferred stock, common units, preferred
  units, units or any other “equity security” (as such term is defined in Rule
  3a11-1 of the General Rules and Regulations promulgated by the Securities and
  Exchange Commission under the Securities Exchange Act of 1934).”. (viii)
  Deleting the definition of “Tax Distributions” appearing therein in its
  entirety and inserting in lieu thereof the following: ““Tax Distributions”
  means: (1) for so long as for U.S. federal income tax purposes, Parent
  Borrower is taxed as a partnership or disregarded entity and is not wholly
  owned (directly or indirectly) by a corporate parent, (A) with respect to any
  taxable year ending after the Closing Date, cash distributions to fund the
  assumed income tax liabilities of the direct or indirect equity owners of
  Parent Borrower (including estimated tax liabilities) in respect of the
  income of Parent Borrower for such taxable year, in an aggregate amount equal
  to the excess of (a) the product of (x) the net taxable income of Parent
  Borrower (treating Parent Borrower as a taxable entity, and calculated (i) by
  including in such net taxable income Parent Borrower’s distributive share of
  all tax items attributable to Parent Borrower and any Subsidiary of Parent
  Borrower taxed as a partnership or disregarded entity for U.S. federal income
  tax purposes, and (ii) without regard to any adjustments pursuant to Section
  734 of the Code that arises on or after the Qualifying IPO or any adjustments
  pursuant to Section 743 of the Code) for the taxable year in question,
  reduced by any cumulative net taxable loss with respect to any prior taxable
  year ending after the Closing Date to the extent such prior net taxable loss
  (I) is of a character (ordinary or 

  

 

	
  

  	
  9 capital) that
  would permit such loss to be deducted against the income of the taxable year
  in question and (II) was not previously taken into account in determining the
  assumed income tax liabilities for any prior taxable year, and (y) the
  highest combined marginal federal and applicable state and/or local income
  tax rate (taking into account the deductibility of state and local income
  taxes for U.S. federal income tax purposes and the character of the taxable
  income in question (i.e., long term capital gain, qualified dividend income,
  etc.)) applicable to an individual United States citizen or corporation
  (whichever is higher) residing in New York, New York for the taxable year in
  question (or portion thereof), over (b) in the case of any taxable year
  beginning prior to the Closing Date, the aggregate amount of assumed
  estimated tax payments that should have been made under Section 6654 of the
  Code prior to the Closing Date (based on the assumption that all of the
  owners are individual or corporate residents of New York, New York (which
  results in a higher applicable combined marginal federal and applicable state
  and/or local income tax rate), calculated in a manner consistent with the
  calculation in clause (y) above); provided that, for the avoidance of doubt,
  in the event of any tax audit adjustment or other tax assessment or the
  filing of an amended tax return that results in additional taxable income of
  Parent Borrower (treating Parent Borrower as a taxable entity), the Tax
  Distributions with respect to such taxable year ending on or after the
  Closing Date shall be recalculated by giving effect to such adjustment,
  assessment or amended tax return (for the avoidance of doubt, taking into
  account interest and penalties), in a manner consistent with the calculation
  in clause (B) below) and (B) with respect to any taxable year ending prior to
  the Closing Date, cash distributions to pay the assumed income tax
  liabilities of the direct or indirect equity owners of Parent Borrower in
  respect of the income of Parent Borrower for such taxable year, in an
  aggregate amount equal to the sum of (i) the product of (I) any additional
  taxable income of Parent Borrower (calculated in a manner consistent with the
  calculation in clause (A) above) for such taxable year resulting from a tax
  audit adjustment or other tax assessment or the filing of an amended tax
  return made after the Closing Date and (II) the highest combined marginal
  federal and applicable state and/or local income tax rate (taking into account
  the deductibility of state and local income taxes for U.S. federal income tax
  purposes and the character of the taxable income in question (i.e., long term
  capital gain, qualified dividend income, etc.)) applicable to an individual
  United States citizen or corporation (whichever is higher) residing in New
  York, New York for the taxable year in question plus (ii) interest and
  penalties relating to such tax audit adjustment, assessment or amended tax
  return, (2) with respect to any taxable period for which Parent Borrower or
  any of its Subsidiaries is a member of a consolidated, combined or similar
  income, franchise or other state and/or local tax group of which Holdings or
  its direct or indirect parent is the common parent (a “Tax Group”), or for
  which Parent Borrower is a partnership or 

  

 

	
  

  	
  10 disregarded
  entity that is wholly owned (directly or indirectly) by a corporate parent (a
  “Corporate Parent”), cash distributions to pay the portion of the Tax Group’s
  or Corporate Parent’s actual cash income, franchise or other state and/or
  local tax liability attributable to Parent Borrower and/or its Subsidiaries,
  in an amount not to exceed the income, franchise or other state and/or local
  tax liability that would have been payable by Parent Borrower and/or such Subsidiaries
  if such entities had always been taxable on a stand-alone basis (reduced by
  any such income, franchise or other state and/or local taxes paid or to be
  paid directly by Parent Borrower or its Subsidiaries), and (3) cash
  distributions to pay any taxes of Holdings not described in clause (1) or (2)
  above, provided that the aggregate payments pursuant to this clause (3) shall
  not exceed $250,000 per calendar year.”. (m) Annex A to the Credit Agreement
  shall be and hereby is amended by inserting the following definitions in
  appropriate alphabetical order: “Amended Neff Holdings LLC Management Equity
  Plan” means the Amended Neff Holdings LLC Management Equity Plan as in effect
  on the Amendment No. 2 Operative Date substantially in the form attached to Amendment
  No. 2 as Exhibit E as further amended from time to time in any manner that
  the Borrower reasonably determines is not adverse to the interests of the
  Agent or the Lenders. “Amendment No. 2” means that certain Amendment No. 2 to
  Amended and Restated Credit Agreement, dated as of the Amendment No. 2
  Effective Date, among the Agent, the Lenders party thereto, Holdings and
  Borrowers. “Amendment No. 2 Effective Date” means October 14, 2014.
  “Amendment No. 2 Operative Date” has the meaning set forth in Amendment No.
  2. “Holdings LLC Agreement” means the Second Amended and Restated Limited
  Liability Company Agreement as in effect on the Amendment No. 2 Operative
  Date substantially in the form attached to Amendment No. 2 as Exhibit B as
  further amended from time to time in any manner that the Borrower reasonably
  determines is not adverse to the interests of the Agent or the Lenders. “IPO
  Common Unit Purchase Agreement” means the IPO Common Unit Purchase Agreement
  as in effect on the Amendment No. 2 Operative Date substantially in the form
  attached to Amendment No. 2 as Exhibit C as amended from time to time in any
  manner that the Borrower reasonably determines is not adverse to the
  interests of the Agent or the Lenders. “Neff Corporation” means Neff Corporation,
  a Delaware corporation formed at the direction of Wayzata for the purposes of
  effecting a Qualifying IPO, together with its successors and assigns. 

  

 

	
  

  	
  11 “Neff
  Corporation Qualifying IPO” means a Qualifying IPO of Neff Corporation in
  connection with which (a) Holdings amends and restates its limited liability
  operating agreement substantially in the form of Exhibit B to Amendment No.
  2, (b) Neff Corporation applies all or a portion of the net proceeds from
  such Qualifying IPO to purchase common units of Holdings, and (c) Neff
  Corporation becomes the sole managing member of Holdings. “Neff Holdings LLC
  2014 Bonus Plans” means each of (a) the Neff Holdings LLC 2014 Management
  Special Bonus Plan, effective June 1, 2014, (b) the Neff Holdings LLC Amended
  and Restated Sale Transaction Bonus Plan, effective as of June 1, 2014 and as
  the same was further amended on or prior to the Amendment No. 2 Operative
  Date in connection with the Neff Corporation Qualifying IPO, and (c) the Neff
  Holdings LLC Incentive Bonus Plan, as in effect on or prior to the Amendment
  No. 2 Operative Date. “Permitted Tax Receivable Payment” means the aggregate
  amount of any accelerated lump sum amounts payable pursuant to the Tax
  Receivable Agreement by reason of any early termination of the Tax Receivable
  Agreement as a result of or in connection with the occurrence of a Change of
  Control that has been waived by the Requisite Lenders. “Second Lien Agent”
  means Credit Suisse AG, in its capacity as administrative and collateral
  agent under the Second Lien Credit Agreement, together with its successors
  and assigns. “Second Lien Amendment No. 1” means that certain Amendment No. 1
  to Second Lien Credit Agreement, to be dated and effective prior to or
  simultaneous with the Neff Corporation Qualifying IPO, by and among Parent
  Borrower, Holdings, the other Credit Parties that are party thereto, the
  Second Lien Agent and the Second Lien Lenders that are party thereto, which
  amends the Second Lien Credit Agreement. “Second Lien Lenders” means each of
  the “Lenders” as defined in the Second Lien Credit Agreement. “Second Lien
  Loan Repayment Amount” means the sum of (a) the aggregate principal amount of
  the Second Lien Loans prepaid with a portion of the net proceeds of from a
  Qualifying IPO received by the Credit Parties, plus (b) a 2.00% prepayment
  premium on the principal amount of Second Lien Loans repaid pursuant to the
  foregoing clause (a), plus (c) accrued and unpaid interest in respect of the
  principal amount of Second Lien Loans repaid pursuant to the foregoing clause
  (a), plus (d) solely to the extent ascertainable as of the date of pricing of
  the Neff Corporation Qualifying IPO, customary LIBOR breakage fees payable to
  the Second Lien Lenders in respect of the principal amount of Second Lien Loans
  repaid pursuant to the foregoing clause (a), plus (e) consent fees payable to
  the Second Lien Lenders, plus (f) solely to the extent ascertainable as of
  the date of pricing the Neff Corporation Qualifying IPO, expenses payable to 

  

 

	
  

  	
  12 counsel to the
  Second Lien Agent in connection with the amendment to the Second Lien Credit
  Agreement. “Tax Receivable Agreement” means the Tax Receivable Agreement as
  in effect on the Amendment No. 2 Operative Date substantially in the form
  attached to Amendment No. 2 as Exhibit D as amended from time to time in any
  manner that the Borrower reasonably determines is not adverse to the
  interests of the Agent or the Lenders. “Voting Stock” means, with respect to
  any Person, any class or classes of Stock of such Person that entitles the
  holders thereof to vote in the election of directors, managing members or
  general partners, as the case may be, of such Person. Section 3.
  Representations. Holdings, Parent Borrower and each other Credit Party
  represents and warrants that immediately prior to and after giving effect to
  the effectiveness of this Amendment (i) the representations and warranties
  set forth in Section 5 of the Credit Agreement or any other Loan Document
  will be true and correct in all material respects (except to the extent any
  such representation or warranty is qualified by “materially”, “Material
  Adverse Effect” or a similar term, in which case such representation and
  warranty shall be true and correct in all respects) on and as of the
  Amendment No. 2 Effective Date and the Amendment No. 2 Operative Date, except
  in each case to the extent that such representations and warranties expressly
  relate to an earlier date, in which case they shall be true and correct in
  all material respects (except to the extent any such representation or
  warranty is qualified by “materially”, “Material Adverse Effect” or a similar
  term, in which case such representation and warranty shall be true and
  correct in all respects) as of such earlier date and (ii) no Default or Event
  of Default shall have occurred and be continuing under the Credit Agreement
  on the Amendment No. 2 Effective Date or on the Amendment No. 2 Operative
  Date. Section 4. Conditions to Effectiveness; Operation of Amendments and
  Confirmations. (a) This Amendment No. 2 shall become effective on the date
  (the “Amendment No. 2 Effective Date”) when, and only when, each of the
  following conditions shall have been satisfied to the reasonable satisfaction
  of the Administrative Agent (or waived by the Administrative Agent in its
  sole discretion): (i) Execution of Counterparts. The Agent shall have
  received from Holdings, Parent Borrower, each other Credit Party and the
  Requisite Lenders under the Credit Agreement an original counterpart of this
  Amendment signed by such party or a facsimile or electronic (i.e., “.pdf” or
  “.tif”) copy of such signed original counterpart. (ii) Officer’s Certificate.
  Parent Borrower shall have delivered to the Agent duly executed copies of a
  certificate of an authorized officer of Parent Borrower, dated the Amendment
  No. 2 Effective Date, certifying on behalf of Parent Borrower that as of the
  Amendment No. 2 Effective Date and after giving effect to this Amendment (i)
  the representations and warranties in this Amendment and the Credit Agreement
  are accurate, true and correct in all 

  

 

	
  

  	
  13 material
  respects and (ii) no Default or Event of Default has occurred or is
  continuing. (iii) Expenses. The Agent shall have received all reasonable and
  documented fees and invoiced out-of-pocket expenses (including reasonable and
  documented expenses of counsel) due and payable by Holdings or Parent
  Borrower under Section 1.3(e) of the Credit Agreement or otherwise on or
  prior to the Amendment No. 2 Effective Date to the extent an invoice has been
  submitted to the Parent Borrower therefor. (b) Notwithstanding the fact that
  this Amendment No. 2 has become effective on the Amendment No. 2 Effective
  Date, the amendments set forth in Section 2 and consents set forth in Section
  5(b) shall become operative only on the date on or prior to April 30, 2015
  (the “Amendment No. 2 Operative Date”) when, and only when, each of the
  following conditions shall have been satisfied to the reasonable satisfaction
  of the Administrative Agent (or waived by the Administrative Agent in its sole
  discretion) and once operative, the provisions in Section 2 and Section 5(b)
  shall then be deemed to have occurred substantially simultaneous with the
  events contemplated therein and in Section 5(b): (i) Officer’s Certificate.
  Parent Borrower shall have delivered to the Agent duly executed copies of a
  certificate of an authorized officer of Parent Borrower, dated the Amendment
  No. 2 Operative Date, certifying on behalf of Parent Borrower that as of the
  Amendment No. 2 Operative Date and after giving effect to this Amendment (i)
  the representations and warranties in this Amendment and the Credit Agreement
  are accurate, true and correct in all material respects, (ii) no Default or
  Event of Default has occurred or is continuing and (iii) the Neff Corporation
  Qualifying IPO has closed or will close substantially simultaneous with the
  operation of the amendments set forth in Section 2 of this Amendment. (ii)
  Minimum Availability. On the Amendment No. 2 Operative Date (after giving
  effect to this Amendment and the operation of the amendments and consents
  herein), (i) Borrowers shall have Excess Availability of at least
  $150,000,000, calculated on a pro forma basis after giving effect to the
  consummation of the Neff Corporation Qualifying IPO and the application of a
  portion of the net proceeds therefrom to repay Loans and to prepay Second
  Lien Loans and (ii) Parent Borrower shall have delivered a certificate to the
  Agent setting forth the Second Lien Loan Repayment Amount (as defined in the
  Credit Agreement as amended hereby) and setting forth the calculation thereof
  (which calculation shall be reasonably acceptable to the Agent). (iii)
  Amendment Fee. The Parent Borrower shall have paid to each Lender consenting
  to this Amendment prior to Noon (New York City time) on October 8, 2014, a
  nonrefundable cash fee (the “Amendment Fee”) in U.S. dollars equal to five
  basis points of the Revolving Loan Commitments held by such Lender as of the
  Amendment No. 2 Effective Date. Such payment of the 

  

 

	
  

  	
  14 Amendment
  Fee shall be made to the Agent for further distribution of the Lenders
  entitled thereto. (iv) Expenses. The Agent shall have received all reasonable
  and documented fees and invoiced out-of-pocket expenses (including reasonable
  and documented expenses of counsel) due and payable by Holdings or Parent
  Borrower under Section 1.3(e) of the Credit Agreement or otherwise on or
  prior to the Amendment No. 2 Operative Date to the extent an invoice has been
  submitted to the Parent Borrower therefor. For the avoidance of doubt, the
  operation of Section 2 and Section 5(b) are contingent upon the closing of
  the Neff Corporation Qualifying IPO and the satisfaction of the other
  conditions precedent set forth in this Section 4(b), and this Amendment shall
  lapse and have no effect if the Neff Corporation Qualifying IPO has not
  occurred and the other conditions set forth in this Section 4(b) have not
  been satisfied on or before April 30, 2015. Section 5. Confirmation of Loan
  Documents; Lender Consents. (a) The Credit Parties hereby confirm that the
  Collateral Documents and the obligations of such parties under the Loan
  Documents continue in full force and effect and shall not be affected by this
  Amendment, except as expressly provided herein. Each of the Credit Parties
  hereby further ratifies and reaffirms the validity and enforceability of all
  of the Liens and security interests heretofore granted, pursuant to and in
  connection with the Collateral Documents, to the Agent, as collateral
  security for the Obligations under the Loan Documents in accordance with
  their respective terms, and acknowledges that all of such Liens and security
  interests, and all Collateral heretofore pledged as security for such
  Obligations, continue to be and remain collateral for such obligations from
  and after the date hereof. (b) Notwithstanding anything set forth in the
  Credit Agreement, subject to the conditions set forth in Section 4 of this
  Amendment, each of the Lenders hereby consents to: (i) the prepayment by the
  Credit Parties of the Second Lien Loans with a portion of the net proceeds of
  from the Neff Corporation Qualifying IPO received by the Credit Parties; (ii)
  the payment by the Credit Parties to the Second Lien Lenders of a 2.00%
  prepayment premium on the principal amount of Second Lien Loans repaid pursuant
  to the foregoing clause (a) with a portion of the net proceeds of from Neff
  Corporation Qualifying IPO received by the Credit Parties; (iii) the payment
  by the Credit Parties of accrued and unpaid interest in respect of the
  principal amount of Second Lien Loans repaid pursuant to the foregoing clause
  (a), whether out of the proceeds from Neff Corporation Qualifying IPO
  received by the Credit Parties or otherwise; 

  

 

	
  

  	
  15 (iv) the
  payment by the Credit Parties of customary LIBOR breakage fees payable to the
  Second Lien Lenders in respect of the principal amount of Second Lien Loans
  repaid pursuant to the foregoing clause (a), whether out of the proceeds from
  Neff Corporation Qualifying IPO received by the Credit Parties or otherwise;
  (v) the payment by the Credit Parties of consent fees payable to the Second
  Lien Lenders not to exceed $287,500 in the aggregate out of the proceeds from
  Neff Corporation Qualifying IPO received by the Credit Parties; (vi) the
  payment by the Credit Parties of expenses payable to counsel to the Second
  Lien Agent in connection with the amendment to the Second Lien Credit
  Agreement whether out of the proceeds from Neff Corporation Qualifying IPO
  received by the Credit Parties or otherwise; (vii) the entry by the Credit
  Parties into the Second Lien Amendment No. 1 substantially in the form
  attached hereto as Exhibit A; (viii) the amendment and restatement of the
  Holdings limited liability company operating agreement substantially in the
  form attached hereto as Exhibit B; (ix) the entry by Holdings into the IPO
  Common Unit Purchase Agreement substantially in the form attached hereto as
  Exhibit C; (x) the entry by Holdings into the Tax Receivable Agreement
  substantially in the form attached hereto as Exhibit D; (xi) the entry by Holdings
  into the Amended Neff Holdings LLC Management Equity Plan substantially in
  the form attached hereto as Exhibit E; and (xii) all transactions directly
  related to the foregoing clauses (i) through (xi). (c) Upon the Amendment No.
  2 Effective Date this Amendment shall constitute a Loan Document. The
  execution, delivery, and performance of this Amendment shall not operate,
  except as expressly set forth herein, as a waiver of, consent to, or a
  modification or amendment of, any right, power, or remedy of Agent or any
  Lender under the Credit Agreement or any other Loan Document. Except for the
  amendments to the Credit Agreement and the consents expressly set forth
  herein, the Credit Agreement and the other Loan Documents shall remain
  unchanged and in full force and effect. The amendments and consents set forth
  herein shall, except to the extent they become operative on the Amendment No.
  2 Operative Date, (i) neither excuse future non-compliance with the Loan
  Documents nor operate as a waiver of any Default or Event of Default, (ii)
  not operate as a consent to any matter under the Loan Documents except as
  expressly set forth herein and (iii) not be construed as an indication that
  the Lenders will agree to any other amendments or give any other consents or
  waivers with respect to the Credit Agreement or the other Loan Documents 

  

 

	
  

  	
  16 that may be
  requested by the Credit Parties; it being understood that the agreement of
  any other amendments or giving of any other consents or waivers which may
  hereafter be requested by the Credit Parties remains in the sole and absolute
  discretion of Agent and the Lenders. Section 6. Certain Consequences Of
  Effectiveness. On and after the Amendment No. 2 Operative Date, the rights
  and obligations of the parties to the Credit Agreement and each other Loan
  Document shall be governed by the Credit Agreement as amended hereby;
  provided that the provisions of Section 2 and Section 5(b) of this Amendment
  shall not become operative (and this Amendment shall lapse and have no
  effect) unless and until the Neff Corporation Qualifying IPO and the other
  conditions precedent set forth in Section 4(b) hereof have occurred on or
  before April 30, 2015. To the extent that this Amendment has become effective
  and the provisions hereof have become operative, the Credit Agreement and the
  other Loan Documents, as specifically amended hereby, are, and shall continue
  to be, in full force and effect and are hereby ratified and confirmed in all
  respects. Section 7. Severability. Any provision of this Amendment held to be
  invalid, illegal or unenforceable in any jurisdiction shall, as to such
  jurisdiction, be ineffective to the extent of such invalidity, illegality or
  unenforceability without affecting the validity, legality and enforceability
  of the remaining provisions hereof; and the invalidity of a particular
  provision in a particular jurisdiction shall not invalidate such provision in
  any other jurisdiction. Section 8. Governing Law; Jurisdiction; Service of
  Process. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND
  ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.
  PARENT BORROWER AND EACH CREDIT PARTY HEREBY CONSENT TO THE EXCLUSIVE
  JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN NEW YORK COUNTY,
  STATE OF NEW YORK AND IRREVOCABLY AGREE THAT, SUBJECT TO AGENT’S ELECTION,
  ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AMENDMENT SHALL
  BE LITIGATED IN SUCH COURTS. PARENT BORROWER AND EACH CREDIT PARTY EXPRESSLY
  SUBMIT AND CONSENT TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVE ANY
  DEFENSE OF FORUM NON CONVENIENS. PARENT BORROWER AND EACH CREDIT PARTY HEREBY
  WAIVE PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREE THAT ALL SUCH SERVICE
  OF PROCESS MAY BE MADE UPON PARENT BORROWER AND SUCH CREDIT PARTIES BY
  CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO PARENT
  BORROWER, AT THE ADDRESS SET FORTH IN SECTION 9.3 OF THE CREDIT AGREEMENT AND
  SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN
  POSTED. Section 9. Waiver of Jury Trial. PARENT BORROWER, EACH CREDIT PARTY,
  AGENT, EACH LENDER AND EACH OTHER PARTY HERETO HEREBY WAIVE THEIR RESPECTIVE
  RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
  OUT OF THIS AMENDMENT. PARENT BORROWER, EACH CREDIT PARTY, AGENT, EACH LENDER
  AND EACH OTHER PARTY HERETO ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL
  INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON
  THIS WAIVER IN 

  

 

	
  

  	
  17 ENTERING
  INTO THIS AMENDMENT AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS
  RELATED FUTURE DEALINGS. Section 10. Counterparts. This Amendment may be
  executed in counterparts (and by different parties hereto on different
  counterparts), each of which shall constitute an original, but all of which
  when taken together shall constitute a single contract. Delivery by facsimile
  or email of an executed counterpart of a signature page to this Amendment
  shall be effective as delivery of an original executed counterpart of this
  Amendment. Section 11. Certain Tax Matters. For purposes of determining
  withholding Taxes imposed under the Foreign Account Tax Compliance Act
  (FATCA), from and after the Amendment No. 2 Effective Date, the Borrower and
  the Administrative Agent shall treat (and the Lenders hereby authorize the
  Administrative Agent to treat) the Loans as not qualifying as a
  "grandfathered obligation" within the meaning of Treasury
  Regulation Section 1.1471-2(b)(2)(i). 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] IN WITNESS
  WHEREOF, the parties hereto have caused this Amendment to be duly executed as
  of the date first above written. NEFF LLC, as Parent Borrower By: Name: Mark
  Irion Title: Chief Financial Officer NEFF HOLDINGS LLC, as Holdings and a
  Credit Party By: Name: Mark Irion Title: Chief Financial Officer NEFF RENTAL
  LLC, as a Borrower By: Name: Mark Irion Title: Chief Financial Officer 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] BANK OF AMERICA,
  N.A., as Agent and as a Lender: By: Name: Title: 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] CIT FINANCE LLC,
  as a Lender: By: Name: Title: 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] CREDIT SUISSE
  AG, CAYMAN ISLANDS BRANCH, as a Lender: By: Name: Title: By: Name: Title: 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] JFIN BUSINESS
  CREDIT FUND I LLC, as a Lender: By: Name: Title: 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] NYCB Specialty
  Finance Company, LLC, a wholly-owned subsidiary of New York Community Bank,
  as a Lender: By: Name: Title: 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] PNC BANK, NATIONAL
  ASSOCIATION, as a Lender: By: Name: Title: 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] RBS CITIZENS
  BUSINESS CAPITAL, a division of RBS Asset Finance, Inc., as a Lender: By:
  Name: Title: 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] REGIONS BANK, as
  a Lender: By: Name: Title: 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] SUNTRUST BANK,
  as a Lender: By: Name: Title: 

  

 

	
  

  	
  [Signature Page
  to Amendment No. 2 to Amended and Restated Credit Agreement] WELLS FARGO
  CAPITAL FINANCE, LLC, as a Lender: By: Name: Title: 

  

 

	
  

  	
  EXHIBIT A FORM
  OF SECOND LIEN AMENDMENT NO. 1 [see attached] 

  

 

	
  

  	
  EXHIBIT B FORM
  OF HOLDINGS LLC AGREEMENT [see attached] 

  

 

	
  

  	
  EXHIBIT C FORM
  OF IPO COMMON UNIT PURCHASE AGREEMENT [see attached] 

  

 

	
  

  	
  EXHIBIT D FORM
  OF TAX RECEIVABLE AGREEMENT [see attached] 

  

 

	
  

  	
  EXHIBIT E FORM
  OF AMENDED NEFF HOLDINGS LLC MANAGEMENT EQUITY PLAN [see attached] 

  

 

	
  

  	
  #86469808v2
  EXHIBIT B FORM OF HOLDINGS LLC AGREEMENT [see attached] 

  

 

 

 

 

 

 

 

	
  

  	
  DRAFT
  10-14-2014#86439994v1 Posting Version NEFF HOLDINGS LLC SECOND AMENDED AND
  RESTATED LIMITED LIABILITY COMPANY AGREEMENT Dated as of [.], 2014 THE
  COMPANY INTERESTS REPRESENTED BY THIS SECOND AMENDED AND RESTATED LIMITED
  LIABILITY COMPANY AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
  SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES
  LAWS. SUCH COMPANY INTERESTS MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE
  DISPOSED OF AT ANY TIME WITHOUT EFFECTIVE REGISTRATION UNDER SUCH ACT AND
  LAWS OR EXEMPTION THEREFROM, AND COMPLIANCE WITH THE OTHER SUBSTANTIAL
  RESTRICTIONS ON TRANSFERABILITY SET FORTH HEREIN. 

  

 

	
  

  	
  DRAFT
  10-14-2014#86439994v1 TABLE OF CONTENTS Page Article I. DEFINITIONS 2 Article
  II. ORGANIZATIONAL MATTERS 13 Section 2.01 Formation of Company 13 Section
  2.02 Second Amended and Restated Limited Liability Company Agreement 13
  Section 2.03 Name 13 Section 2.04 Purpose 14 Section 2.05 Principal Office;
  Registered Office 14 Section 2.06 Term 14 Section 2.07 No State-Law
  Partnership 14 Article III. MEMBERS; UNITS; CAPITALIZATION 14 Section 3.01
  Members 14 Section 3.02 Units 15 Section 3.03 Recapitalization and Split; the
  Corporation’s Capital Contribution; the Corporation’s Purchase of Common
  Units; Redemptions 15 Section 3.04 Authorization and Issuance of Additional
  Units 16 Section 3.05 Repurchase or Redemption of shares of Class A Common
  Stock 17 Section 3.06 Certificates Representing Units; Lost, Stolen or
  Destroyed Certificates; Registration and Transfer of Units 17 Section 3.07
  Negative Capital Accounts 18 Section 3.08 No Withdrawal 18 Section 3.09 Loans
  From Members 18 Section 3.10 LLC Option Exercises 18 Section 3.11 Corporate
  Stock Option Plans 18 Section 3.12 Dividend Reinvestment Plan, Cash Option Purchase
  Plan, Stock Incentive Plan or Other Plan 21 Article IV. DISTRIBUTIONS 21
  Section 4.01 Distributions 21 Section 4.02 Restricted Distributions 22
  Article V. CAPITAL ACCOUNTS; ALLOCATIONS; TAX MATTERS 23 Section 5.01 Capital
  Accounts 23 Section 5.02 Allocations 24 Section 5.03 Regulatory Allocations
  24 Section 5.04 Final Allocations 25 Section 5.05 Tax Allocations 25 

  

 

	
  

  	
  iii DRAFT
  10-14-2014#86439994v1 Section 5.06 Indemnification and Reimbursement for
  Payments on Behalf of a Member 26 Article VI. MANAGEMENT 26 Section 6.01
  Authority of Manager 26 Section 6.02 Actions of the Manager 27 Section 6.03
  Resignation 27 Section 6.04 Removal 27 Section 6.05 Vacancies 28 Section 6.06
  Transactions Between Company and Manager 28 Section 6.07 Reimbursement for
  Expenses 28 Section 6.08 Delegation of Authority 28 Section 6.09 Limitation
  of Liability of Manager 29 Section 6.10 Investment Company Act 30 Section
  6.11 Outside Activities of the Manager 30 Article VII. RIGHTS AND OBLIGATIONS
  OF MEMBERS 30 Section 7.01 Limitation of Liability and Duties of Members 30
  Section 7.02 Lack of Authority 31 Section 7.03 No Right of Partition 31
  Section 7.04 Indemnification 31 Section 7.05 Members Right to Act 32 Section
  7.06 Inspection Rights 33 Article VIII. BOOKS, RECORDS, ACCOUNTING AND
  REPORTS, AFFIRMATIVE COVENANTS 34 Section 8.01 Records and Accounting 34
  Section 8.02 Fiscal Year 34 Section 8.03 Reports 34 Article IX. TAX MATTERS
  34 Section 9.01 Preparation of Tax Returns 34 Section 9.02 Tax Elections 34
  Section 9.03 Tax Controversies 35 Article X. RESTRICTIONS ON TRANSFER OF
  UNITS; PREEMPTIVE RIGHTS 35 Section 10.01 Transfers by Members 35 Section
  10.02 Permitted Transfers 35 Section 10.03 Restricted Units Legend 36 Section
  10.04 Transfer 36 Section 10.05 Assignee’s Rights 37 Section 10.06 Assignor’s
  Rights and Obligations 37 Section 10.07 Overriding Provisions 37 

  

 

	
  

  	
  iv DRAFT
  10-14-2014#86439994v1 Article XI. REDEMPTION AND EXCHANGE RIGHTS 38 Section
  11.01 Redemption Right of a Member and LLC Optionee 38 Section 11.02 Election
  and Contribution of the Corporation 41 Section 11.03 Exchange Right of the
  Corporation 41 Section 11.04 Reservation of shares of Class A Common Stock;
  Listing; Certificate of the Corporation 42 Section 11.05 Effect of Exercise
  of Redemption or Exchange Right 42 Section 11.06 Tax Treatment 42 Article
  XII. ADMISSION OF MEMBERS 42 Section 12.01 Substituted Members 42 Section
  12.02 Additional Members 43 Article XIII. WITHDRAWAL AND RESIGNATION;
  TERMINATION OF RIGHTS 43 Section 13.01 Withdrawal and Resignation of Members
  43 Section 13.02 Termination of Rights of LLC Optionees 43 Article XIV.
  DISSOLUTION AND LIQUIDATION 43 Section 14.01 Dissolution 43 Section 14.02
  Liquidation and Termination 44 Section 14.03 Deferment; Distribution in Kind
  45 Section 14.04 Cancellation of Certificate 45 Section 14.05 Reasonable Time
  for Winding Up 45 Section 14.06 Return of Capital 45 Article XV. VALUATION 45
  Section 15.01 Determination 45 Section 15.02 Dispute Resolution 46 Article
  XVI. GENERAL PROVISIONS 46 Section 16.01 Power of Attorney 46 Section 16.02
  Confidentiality 47 Section 16.03 Amendments 47 Section 16.04 Title to Company
  Assets 47 Section 16.05 Addresses and Notices 48 Section 16.06 Binding
  Effect; Intended Beneficiaries 48 Section 16.07 Creditors 48 Section 16.08 Waiver
  49 Section 16.09 Counterparts 49 Section 16.10 Applicable Law 49 Section
  16.11 Severability 49 Section 16.12 Further Action 49 

  

 

	
  

  	
  v DRAFT
  10-14-2014#86439994v1 Section 16.13 Delivery by Electronic Transmission 49
  Section 16.14 Right of Offset 49 Section 16.15 Effectiveness 50 Section 16.16
  Entire Agreement 50 Section 16.17 Remedies 50 Section 16.18 Descriptive
  Headings; Interpretation 50 Schedules Schedule 1 – Schedule of Members
  Schedule 2 – Schedule of LLC Optionees Exhibits Exhibit A – Form of Joinder
  Agreement 

  

 

	
  

  	
  DRAFT
  10-14-2014#86439994v1 NEFF HOLDINGS LLC SECOND AMENDED AND RESTATED LIMITED
  LIABILITY COMPANY AGREEMENT This SECOND AMENDED AND RESTATED LIMITED
  LIABILITY COMPANY AGREEMENT (this “Agreement”), dated as of [.], 2014, is
  entered into by and among Neff Holdings LLC, a Delaware limited liability
  company (the “Company”), and its Members (as defined herein). WHEREAS, the
  Company initially was formed as a limited liability company with the name
  “Reorganized Neff, L.L.C.”, pursuant to and in accordance with the Delaware
  Act (as defined herein) by the filing of the Certificate (as defined herein)
  with the Secretary of State of the State of Delaware pursuant to Section
  18-201 of the Delaware Act on May 12, 2010; WHEREAS, the Company entered into
  a Limited Liability Company Agreement of the Company, dated as of September
  22, 2010 (as amended, restated, amended and restated, supplemented or
  otherwise modified from time to time to but excluding October 1, 2010,
  together with all schedules, exhibits and annexes thereto, the “Initial LLC
  Agreement”), with the members of the Company party thereto; WHEREAS, the
  Company entered into an Amended and Restated Limited Liability Company
  Agreement, dated as of October 1, 2010 (as amended, restated, amended and
  restated, supplemented or otherwise modified from time to time to but
  excluding the date hereof, together with all schedules, exhibits and annexes
  thereto, the “First A&R LLC Agreement”), with Wayzata Opportunities Fund
  II, L.P., a Delaware limited partnership (“Wayzata”), and Wayzata
  Opportunities Fund Offshore II, L.P., a Cayman Islands limited partnership
  (“Wayzata Offshore”), as members (collectively, the “Original Members”)
  holding Class A Units (as defined Section 5.1 of the First A&R LLC Agreement,
  the “Original Class A Units”) of the Company; WHEREAS, prior to the date
  hereof the Company has granted certain options (the “Original LLC Options”)
  under the Original Management Equity Plan (as defined herein) to those
  members of the Company’s management and independent, non-executive members of
  the board of directors of the Company identified on Schedule 2 hereto
  (collectively, the “Original LLC Optionees”), pursuant to which each Original
  LLC Optionee is entitled to purchase that number of Class B Units (as defined
  in Section 5.1 of the First A&R LLC Agreement, the “Original Class B
  Units”) of the Company set forth opposite such Person’s name on Schedule 2
  hereto under the column labeled “Original LLC Options” at an exercise price
  of $10.82 per Original Class B Unit; WHEREAS, the Company, the Original
  Members and the Original LLC Optionees desire to have Neff Corporation, a
  Delaware corporation (the “Corporation”), effect an initial public offering
  (the “IPO”) of shares of its Class A common stock, par value $0.01 (the
  “Class A Common Stock”), and in connection therewith, to amend and restate
  the First A&R LLC 

  

 

	
  

  	
  2 DRAFT
  10-14-2014#86439994v1 Agreement to reflect (a) a recapitalization of the
  Company and the associated split in the number of Units (as defined herein)
  then outstanding (the “Recapitalization”), (b) the addition of the
  Corporation as a Member in the Company and its designation as sole Manager
  (as defined herein) of the Company, and (c) the rights and obligations of the
  Members (as defined herein) of the Company which are enumerated and agreed
  upon in the terms of this Agreement effective as of the Effective Time (as
  defined herein), pursuant to which the First A&R LLC Agreement shall be
  superseded entirely by this Agreement; WHEREAS, in connection with the
  Recapitalization, (a) the Original Class A Units of each Original Member will
  be converted into Common Units (as defined herein) and (b) the Original Class
  B Units underlying the Original LLC Options will be converted into Common
  Units underlying the LLC Options (as defined herein); WHEREAS, exclusive of
  the Over-Allotment Option (as defined below), the Corporation will sell
  shares of its Class A Common Stock to public investors in the IPO and will
  use the net proceeds received from the IPO (the “IPO Net Proceeds”) to
  purchase newly issued Common Units from the Company pursuant to that certain
  IPO Common Unit Purchase Agreement (as defined herein); and WHEREAS, the
  Corporation may issue additional shares of Class A Common Stock in connection
  with the IPO as a result of the exercise by the underwriters of their
  over-allotment option (the “Over-Allotment Option”) and, if the
  Over-Allotment Option is in fact exercised in whole or in part, any
  additional net proceeds (the “Over-Allotment Option Net Proceeds”) shall be
  used by the Corporation to purchase Common Units from the Original Members
  pursuant to the IPO Common Unit Purchase Agreement;1 NOW, THEREFORE, in
  consideration of the mutual covenants contained herein and other good and
  valuable consideration, the receipt and sufficiency of which are hereby
  acknowledged, the Company and the Members, intending to be legally bound,
  hereby agree as follows: ARTICLE I. DEFINITIONS The following definitions
  shall be applied to the terms used in this Agreement for all purposes, unless
  otherwise clearly indicated to the contrary. “ABL Credit Agreement” means
  that certain Amended and Restated Senior Secured Credit Agreement, dated as
  of October 1, 2010 (as amended and restated as of November 20, 2013), by and
  among the Company, as holdings, Neff LLC, as parent borrower, the
  subsidiaries of Neff LLC from time to time signatory thereto, as additional
  credit parties, the several lenders from time to time party thereto, and Bank
  of America, N.A., as administrative agent and collateral agent for the
  lenders, as swing line lender and as the issuing bank for letters of credit,
  1 NTD: This draft assumes that all of the IPO Net Proceeds will be used to
  purchase newly issued Common Units from the Company, and all Over-Allotment
  Option Net Proceeds will be used to purchase Common Units directly from
  Wayzata. To be revised to the extent these assumptions change. 

  

 

	
  

  	
  3 DRAFT
  10-14-2014#86439994v1 including all exhibits, schedules and attachments
  thereto, as such ABL Credit Agreement is in effect as of the date hereof and
  as the same may be amended, restated, amended and restated, supplemented or
  otherwise modified from time to time and including any one or more
  refinancings or replacements thereof, in whole or in part, with any other
  debt facility or debt obligation. “Additional Member” has the meaning set
  forth in Section 12.02. “Adjusted Capital Account Deficit” means with respect
  to the Capital Account of any Member as of the end of any Taxable Year, the
  amount by which the balance in such Capital Account is less than zero. For
  this purpose, such Member’s Capital Account balance shall be: (a) reduced for
  any items described in Treasury Regulation Section 1.704- 1(b)(2)(ii)(d)(4),
  (5), and (6); and (b) increased for any amount such Member is obligated to
  contribute or is treated as being obligated to contribute to the Company
  pursuant to Treasury Regulation Section 1.704-1(b)(2)(ii)(c) (relating to
  partner liabilities to a partnership) or 1.704-2(g)(1) and 1.704-2(i) (relating
  to minimum gain). “Admission Date” has the meaning set forth in Section
  10.06. “Affiliate” (and, with a correlative meaning, “Affiliated”) means,
  with respect to a specified Person, each other Person that directly, or
  indirectly through one or more intermediaries, controls or is controlled by,
  or is under common control with, the Person specified. As used in this
  definition and the definition of Majority Member, “control” (including with
  correlative meanings, “controlled by” and “under common control with”) means
  possession, directly or indirectly, of power to direct or cause the direction
  of management or policies (whether through ownership of voting securities or
  by contract or other agreement). “Agreement” has the meaning set forth in the
  preamble to this Agreement. “Appraisers” has the meaning set forth in Section
  15.02. “Assignee” means a Person to whom a Company Interest has been
  transferred but who has not become a Member pursuant to Article XII. “Assumed
  Tax Liability” means, with respect to a Member, an amount equal to the
  Distribution Tax Rate multiplied by the estimated or actual taxable income of
  the Company, as determined for federal income tax purposes, allocated to such
  Member pursuant to Section 5.05 for the period to which the Assumed Tax Liability
  relates, less prior losses of the Company, as determined for federal income
  tax purposes, allocated to such Member pursuant to Section 5.05 to the extent
  not previously taken into account in determining the Assumed Tax Liability of
  such Member, as determined by the Manager; provided that, in the case of the
  Corporation, such Assumed Tax Liability (i) shall be computed without regard
  to any increases to the tax basis of the Company’s property pursuant to
  Section 743(b) of the Code and (ii) shall in no event be less than an amount
  that will enable the Corporation to meet its tax obligations, including its
  obligations pursuant to the Tax Receivable Agreement. 

  

 

	
  

  	
  4 DRAFT
  10-14-2014#86439994v1 “Base Rate” means, on any date, a variable rate per
  annum equal to the rate of interest most recently published by The Wall
  Street Journal as the “prime rate” at large U.S. money center banks.
  “Black-Out Period” means any “black-out” or similar period under the
  Corporation’s policies covering trading in the Corporation’s securities to
  which the applicable Redeeming Member is subject, which period restricts the
  ability of such Redeeming Member to immediately resell shares of Class A
  Common Stock to be delivered to such Redeeming Member in connection with a
  Share Settlement. “Book Value” means, with respect to any Company property,
  the Company’s adjusted basis for U.S. federal income tax purposes, adjusted
  from time to time to reflect the adjustments required or permitted by
  Treasury Regulation Section 1.704-1(b)(2)(iv)(d)-(g). “Business Day” means
  any day other than a Saturday or a Sunday or a day on which banks located in
  New York City, New York generally are authorized or required by Law to close.
  “Capital Account” means the capital account maintained for a Member in
  accordance with Section 5.01. “Capital Contribution” means, with respect to
  any Member, the amount of any cash, cash equivalents, promissory obligations
  or the Fair Market Value of other property that such Member contributes (or
  is deemed to contribute) to the Company pursuant to Article III hereof. “Cash
  Settlement” means immediately available funds in U.S. dollars in an amount
  equal to the Redeemed Units Equivalent. “Certificate” means the Company’s
  Certificate of Formation as filed with the Secretary of State of Delaware.
  “Change of Control Transaction” means (a) a sale of all or substantially all
  of the Company’s assets determined on a consolidated basis, (b) a sale of a
  majority of the Company’s outstanding Units (other than (i) to the
  Corporation or (ii) in connection with a Redemption or Exchange in accordance
  with Article XI) or (c) a sale of a majority of the outstanding voting
  securities of any Material Subsidiary of the Company; in any such case,
  whether by merger, recapitalization, consolidation, reorganization,
  combination or otherwise); provided, however, that neither (x) a transaction
  solely for the purpose of changing the jurisdiction of domicile of the
  Company, nor (y) a transaction solely for the purpose of changing the form of
  entity of the Company, shall constitute a Change of Control Transaction.
  “Class A Common Stock” has the meaning set forth in the recitals to this
  Agreement. “Class B Common Stock” means the Class B Common Stock, par value
  $0.01 per share, of the Corporation. “Code” means the United States Internal
  Revenue Code of 1986, as amended. 

  

 

	
  

  	
  5 DRAFT
  10-14-2014#86439994v1 “Common Unit” means a Unit representing a fractional
  part of the Company Interests of the Members and having the rights and
  obligations specified with respect to the Common Units in this Agreement.
  “Common Unitholder” means a Member who is the registered holder of Common
  Units. “Common Unit Redemption Price” means the arithmetic average of the
  volume weighted average prices for a share of Class A Common Stock on the
  principal U.S. securities exchange or automated or electronic quotation
  system on which the Class A Common Stock trades, as reported by Bloomberg,
  L.P., or its successor, for each of the five (5) consecutive full Trading
  Days ending on and including the last full Trading Day immediately prior to
  the Redemption Date, subject to appropriate and equitable adjustment for any
  stock splits, reverse splits, stock dividends or similar events affecting the
  Class A Common Stock. If the Class A Common Stock no longer trades on a
  securities exchange or automated or electronic quotation system, then a
  majority of the Independent Directors shall determine the Common Unit
  Redemption Price in good faith. “Company” has the meaning set forth in the
  preamble to this Agreement. “Company Interest” means the interest of a Member
  in Profits, Losses and Distributions. “Contribution Notice” has the meaning
  set forth in Section 11.01(b). “Corporate Board” means the Board of Directors
  of the Corporation. “Corporate Omnibus Incentive Plan” means the Neff
  Corporation 2014 Omnibus Incentive Plan, as the same may be amended,
  restated, amended and restated, supplemented or otherwise modified from time
  to time. “Corporation” has the meaning set forth in the recitals to this
  Agreement, together with its successors and assigns. “Credit Agreements”
  means, collectively, the ABL Credit Agreement and the Second Lien Credit
  Agreement. “Delaware Act” means the Delaware Limited Liability Company Act, 6
  Del.L. § 18-101, et seq., as it may be amended from time to time, and any
  successor thereto. “Distributable Cash” shall mean, as of any relevant date
  on which a determination is being made by the Manager regarding a potential
  distribution pursuant to Section 4.01(a), the amount of cash that could be
  distributed by the Company for such purposes in accordance with the Credit
  Agreements (and without otherwise violating any applicable provisions of the
  Credit Agreements). “Distribution” (and, with a correlative meaning,
  “Distribute”) means each distribution made by the Company to a Member with
  respect to such Member’s Units, whether in cash, property or securities of
  the Company and whether by liquidating distribution or otherwise; provided,
  however, that none of the following shall be a Distribution: (a) any
  recapitalization that 

  

 

	
  

  	
  6 DRAFT
  10-14-2014#86439994v1 does not result in the distribution of cash or property
  to Members or any exchange of securities of the Company, and any subdivision
  (by Unit split or otherwise) or any combination (by reverse Unit split or
  otherwise) of any outstanding Units or (b) any other payment made by the
  Company to a Member that is not properly treated as a “distribution” for
  purposes of Sections 731, 732, or 733 or other applicable provisions of the
  Code. “Distribution Tax Rate” shall mean a rate equal to the highest
  effective marginal combined federal, state and local income tax rate for a
  Fiscal Year applicable to corporate or individual taxpayers resident in New
  York City, New York, taking in to account the character of the relevant tax
  items (e.g., ordinary or capital) and the deductibility of state and local
  income taxes for federal income tax purposes, as determined in the reasonable
  discretion of the Manager. “Effective Time” has the meaning set forth in Section
  16.15. “Equity Plan” means any stock or equity purchase plan, restricted
  stock or equity plan or other similar equity compensation plan now or
  hereafter adopted by the Company or the Corporation. “Equity Securities”
  means (a) Units or other equity interests in the Company or any Subsidiary of
  the Company (including other classes or groups thereof having such relative
  rights, powers and duties as may from time to time be established by the
  Manager pursuant to the provisions of this Agreement, including rights,
  powers and/or duties senior to existing classes and groups of Units and other
  equity interests in the Company or any Subsidiary of the Company), (b)
  obligations, evidences of indebtedness or other securities or interests
  convertible or exchangeable into Units or other equity interests in the
  Company or any Subsidiary of the Company, and (c) warrants, options or other
  rights to purchase or otherwise acquire Units or other equity interests in
  the Company or any Subsidiary of the Company. “Event of Withdrawal” means the
  expulsion, bankruptcy or dissolution of a Member or the occurrence of any
  other event that terminates the continued membership of a Member in the
  Company. “Event of Withdrawal” shall not include an event that (a) terminates
  the existence of a Member for income tax purposes (including, without
  limitation, (i) a change in entity classification of a Member under Treasury
  Regulations Section 301.7701-3, (ii) termination of a partnership pursuant to
  Code Section 708(b)(1)(B), (iii) a sale of assets by, or liquidation of, a
  Member pursuant to an election under Code Section 338, or (iv) merger,
  severance, or allocation within a trust or among sub-trusts of a trust that
  is a Member) but that (b) does not terminate the existence of such Member
  under applicable state law (or, in the case of a trust that is a Member, does
  not terminate the trusteeship of the fiduciaries under such trust with
  respect to all the Company Interests of such trust that is a Member). “Fair
  Market Value” means, with respect to any asset, its fair market value
  determined according to Article XV. “First A&R LLC Agreement” has the
  meaning set forth in the recitals to this Agreement. “Fiscal Period” means
  any interim accounting period within a Taxable Year established by the Manager
  and which is permitted or required by Section 706 of the Code. 

  

 

	
  

  	
  7 DRAFT
  10-14-2014#86439994v1 “Fiscal Year” means the Company’s annual accounting
  period established pursuant to Section 8.02. “Governmental Entity” means (a)
  the United States of America, (b) any other sovereign nation, (c) any state,
  province, district, territory or other political subdivision of (a) or (b) of
  this definition, including any county, municipal or other local subdivision
  of the foregoing, or (d) any entity exercising executive, legislative,
  judicial, regulatory or administrative functions of government on behalf of
  (a), (b) or (c) of this definition. “Indemnified Person” has the meaning set
  forth in Section 7.04(a). “Independent Directors” means the members of the
  Corporate Board who are “independent” under the standards set forth in Rule
  10A-3 promulgated under the U.S. Securities Exchange Act of 1933, as amended,
  and the corresponding rules of the applicable exchange on which the Class A
  Common Stock is traded or quoted. “Initial LLC Agreement” has the meaning set
  forth in the recitals to this Agreement. “Investment Company Act” means the
  U.S. Investment Company Act of 1940, as amended from time to time. “IPO” has
  the meaning set forth in the recitals to this Agreement. “IPO Closing Date”
  means the closing date of the IPO, which for the avoidance of doubt means the
  date on which all IPO net proceeds required to be delivered pursuant to the
  Underwriting Agreement have been delivered to the Corporation in respect of
  its sale of Class A Common Stock excluding any proceeds from the
  Over-Allotment Option which may be delivered at a subsequent date following
  exercise of such option. “IPO Common Unit Purchase” has the meaning set forth
  in Section 3.03(c). “IPO Common Unit Purchase Agreement” means that certain
  Common Unit Purchase Agreement, dated as of the date hereof, by and among the
  Corporation, the Company and the Original Members. “IPO Net Proceeds” has the
  meaning set forth in the recitals to this Agreement. “Joinder” means a joinder
  to this Agreement, in form and substance substantially similar to Exhibit A
  to this Agreement. “Law” means all laws, statutes, ordinances, rules and
  regulations of the United States, any foreign country and each state,
  commonwealth, city, county, municipality, regulatory body, agency or other
  political subdivision thereof. “LLC Employee” means an employee of, or other
  service provider to, the Company or any Subsidiary, in each case acting in
  such capacity. 

  

 

	
  

  	
  8 DRAFT
  10-14-2014#86439994v1 “LLC Option Exercise” means the exercise, whether in
  whole or in part, of an LLC Option by the applicable LLC Optionee in
  accordance with the provisions of the applicable LLC Option and the Original
  Management Equity Plan, including the payment by such LLC Optionee to the
  Company of the exercise price in respect thereof (whether in cash or in kind
  through a cashless exercise). “LLC Optionees” means each of the Persons named
  on Schedule 2 attached hereto with respect to the number of shares of Common
  Units underlying the LLC Options set forth opposite the name of such Person
  under the column labeled “LLC Options” therein, as long as the LLC Option of
  such Person remains effective in accordance with its terms and only to the
  extent of the remaining number of Common Units with respect to which such
  Person has not then exercised its purchase right under such LLC Option. “LLC
  Options” means the Original LLC Options granted under the Original Management
  Equity Plan, in each case as amended in connection with the Recapitalization,
  and which after giving effect to the Recapitalization give each LLC Optionee
  the right to purchase, subject to the terms and conditions set forth therein,
  the number of Common Units set forth opposite such LLC Optionee’s name on
  Schedule 2 hereto at an exercise price of $[.] per Common Unit. For the
  avoidance of doubt, no additional LLC Options will be issued on and after the
  date of this Agreement. “Losses” means items of Company loss or deduction
  determined according to Section 5.01(b). “Majority Members” means the Members
  holding a majority of the Voting Units then outstanding; provided that, if as
  of any date of determination, a majority of the Voting Units are then held by
  the Manager or any Affiliates controlled by the Manager, then “Majority Members”
  shall mean the Manager together with Members (other than the Manager and its
  controlled Affiliates) holding a majority of the Voting Units (excluding
  Voting Units held by the Manager) then outstanding. “Material Subsidiary”
  means any direct or indirect Subsidiary of the Company that, as of any date
  of determination, represents more than (a) 50% of the consolidated net
  tangible assets of the Company or (b) 50% of the consolidated net income of
  the Company before interest, taxes, depreciation and amortization (calculated
  in a manner substantially consistent with the definition of “Consolidated Net
  Income” and/or “EBITDA” or similar definition(s) appearing therein in the
  Credit Agreements, including such additional adjustments that are permitted
  to be made to such measure as described in “Adjusted EBITDA” or similar
  definition appearing in the Credit Agreements). “Manager” has the meaning set
  forth in Section 6.01. “Market Price” means, with respect to a share of Class
  A Common Stock as of a specified date, the last sale price per share of Class
  A Common Stock, regular way, or if no such sale took place on such day, the
  average of the closing bid and asked prices per share of Class A Common
  Stock, regular way, in either case as reported in the principal consolidated
  transaction reporting system with respect to securities listed or admitted to
  trading on the Stock Exchange or, 

  

 

	
  

  	
  9 DRAFT
  10-14-2014#86439994v1 if the Class A Common Stock is not listed or admitted
  to trading on the Stock Exchange, as reported on the principal consolidated
  transaction reporting system with respect to securities listed on the
  principal national securities exchange on which the Class A Common Stock is
  listed or admitted to trading or, if the Class A Common Stock is not listed
  or admitted to trading on any national securities exchange, the last quoted
  price, or, if not so quoted, the average of the high bid and low asked prices
  in the over-the-counter market, as reported by the National Association of
  Securities Dealers, Inc. Automated Quotation System or, if such system is no
  longer in use, the principal other automated quotation system that may then
  be in use or, if the Class A Common Stock is not quoted by any such
  organization, the average of the closing bid and asked prices as furnished by
  a professional market maker making a market in the Class A Common Stock
  selected by the Corporate Board or, in the event that no trading price is
  available for the shares of Class A Common Stock, the fair market value of a
  share of Class A Common Stock, as determined in good faith by the Corporate
  Board. “Member” means, as of any date of determination, (a) each of the
  members named on the Schedule of Members and (b) any Person admitted to the
  Company as a Substituted Member or Additional Member in accordance with
  Article XII, but in each case only so long as such Person is shown on the
  Company’s books and records as the owner of one or more Units. For the
  avoidance of doubt, an LLC Optionee shall not constitute a Member hereunder
  except to the extent that, as of such date of determination, such Person is
  shown on the Company’s books and records as an owner of one or more Units.
  “Minimum Gain” means “partnership minimum gain” determined pursuant to
  Treasury Regulation Section 1.704-2(d). “Net Loss” means, with respect to a
  Fiscal Year, the excess if any, of Losses for such Fiscal Year over Profits
  for such Fiscal Year (excluding Profits and Losses specially allocated
  pursuant to Section 5.03 and Section 5.04). “Net Profit” means, with respect
  to a Fiscal Year, the excess if any, of Profits for such Fiscal Year over
  Losses for such Fiscal Year (excluding Profits and Losses specially allocated
  pursuant to Section 5.03 and Section 5.04). “Officer” has the meaning set
  forth in Section 6.01(b). “Optionee” means a Person to whom a stock option is
  granted under any Stock Option Plan. “Original Award Agreement” means an
  Award Agreement as defined in the First A&R LLC Agreement, as the same
  may be amended, restated, amended and restated, supplemented or otherwise
  modified from time to time, including in connection with the
  Recapitalization. “Original Class A Units” has the meaning set forth in the
  recitals to this Agreement. “Original Class B Units” has the meaning set
  forth in the recitals to this Agreement. “Original LLC Optionees” has the
  meaning set forth in the recitals to this Agreement. 

  

 

	
  

  	
  10 DRAFT
  10-14-2014#86439994v1 “Original LLC Options” has the meaning set forth in the
  recitals to this Agreement. “Original Management Equity Plan” means the Management
  Equity Plan as defined in the First A&R LLC Agreement, as the same may be
  amended, restated, amended and restated, supplemented or otherwise modified
  from time to time, including in connection with the Recapitalization.
  “Original Members” has the meaning set forth in the recitals to this
  Agreement. “Other Agreements” has the meaning set forth in Section 10.04.
  “Over-Allotment Option” has the meaning set forth in the recitals to this
  Agreement. “Over-Allotment Option Net Proceeds” has the meaning set forth in
  the recitals to this Agreement. “Over-Allotment Option Redemption” has the
  meaning set forth in the recitals to this Agreement. “Percentage Interest”
  means, as among an individual class of Units and with respect to a Member at
  a particular time, such Member’s percentage interest in the Company
  determined by dividing such Member’s Units of such class by the total Units
  of all Members of such class at such time. The Percentage Interest of each
  member shall be calculated to the 9th decimal place. “Permitted Transfer” has
  the meaning set forth in Section 10.02. “Person” means an individual or any
  corporation, partnership, limited liability company, trust, unincorporated
  organization, association, joint venture or any other organization or entity,
  whether or not a legal entity. “Profits” means items of Company income and
  gain determined according to Section 5.01(b). “Pro rata,” “pro rata portion,”
  “according to their interests,” “ratably,” “proportionately,” “proportional,”
  “in proportion to,” “based on the number of Units held,” “based upon the
  percentage of Units held,” “based upon the number of Units outstanding,” and
  other terms with similar meanings, when used in the context of a number of
  Units of the Company relative to other Units, means as amongst an individual
  class of Units, pro rata based upon the number of such Units within such
  class of Units. “Recapitalization” has the meaning set forth in the recitals
  to this Agreement. “Redeemed Units” has the meaning set forth in Section
  11.01(a). “Redeemed Units Equivalent” means the product of (a) the Share
  Settlement, times (b) the Common Unit Redemption Price. “Redeeming Member”
  has the meaning set forth in Section 11.01(a). 

  

 

	
  

  	
  11 DRAFT
  10-14-2014#86439994v1 “Redemption” has the meaning set forth in Section
  11.01(a). “Redemption Date” has the meaning set forth in Section 11.01(a).
  “Redemption Notice” has the meaning set forth in Section 11.01(a).
  “Redemption Right” has the meaning set forth in Section 11.01(a).
  “Registration Rights Agreement” means that certain Registration Rights
  Agreement, dated as of the date hereof, by and among the Corporation, the
  Original Members and the Original LLC Optionees. “Retraction Notice” has the
  meaning set forth in Section 11.01(b). “Schedule of Members” has the meaning
  set forth in Section 3.01(b). “SEC” means the U.S. Securities and Exchange
  Commission, including any governmental body or agency succeeding to the
  functions thereof. “Second Lien Credit Agreement” means that certain Second
  Lien Credit Agreement, dated as of June 9, 2014, by and among the Company, as
  holdings, Neff LLC, as parent, Neff Rental LLC, as borrower, the several
  lenders from time to time party thereto, and Credit Suisse AG, as
  administrative agent and collateral agent for the lenders, including all
  exhibits, schedules and attachments thereto, as such Second Lien Credit
  Agreement is in effect as of the date hereof and as the same may be amended,
  restated, amended and restated, supplemented or otherwise modified from time
  to time and including any one or more refinancings or replacements thereof,
  in whole or in part, with any other debt facility or debt obligation.
  “Securities Act” means the U.S. Securities Act of 1933, as amended, and
  applicable rules and regulations thereunder, and any successor to such
  statute, rules or regulations. Any reference herein to a specific section,
  rule or regulation of the Securities Act shall be deemed to include any
  corresponding provisions of future Law. “Share Settlement” means a number of
  shares of Class A Common Stock equal to the number of Redeemed Units. “Stock
  Exchange” means the [New York Stock Exchange / NASDAQ Stock Market]. “Stock
  Option Plan” means any stock option plan now or hereafter adopted by the
  Company or by the Corporation. “Subsidiary” means, with respect to any
  Person, any corporation, limited liability company, partnership, association
  or business entity of which (a) if a corporation, a majority of the total
  voting power of shares of stock entitled (without regard to the occurrence of
  any contingency) to vote in the election of directors, managers or trustees
  thereof is at the time owned or controlled, directly or indirectly, by that
  Person or one or more of the other Subsidiaries of that Person or a
  combination thereof, or (b) if a limited liability company, partnership,
  association or other business entity (other than a corporation), a majority
  of the 

  

 

	
  

  	
  12 DRAFT
  10-14-2014#86439994v1 voting interests thereof are at the time owned or
  controlled, directly or indirectly, by any Person or one or more Subsidiaries
  of that Person or a combination thereof. For purposes hereof, references to a
  “Subsidiary” of the Company shall be given effect only at such times that the
  Company has one or more Subsidiaries, and, unless otherwise indicated, the term
  “Subsidiary” refers to a Subsidiary of the Company. “Substituted Member”
  means a Person that is admitted as a Member to the Company pursuant to
  Section 12.01. “Tax Distribution Date” has the meaning set forth in Section
  4.01(b)(i). “Tax Distributions” has the meaning set forth in Section
  4.01(b)(i). “Tax Matters Partner” has the meaning set forth in Section 9.03.
  “Tax Receivable Agreement” means that certain Tax Receivable Agreement, dated
  as the date hereof, by and among the Corporation, on the one hand, and the
  Original Members, on the other hand (together with any joinder thereto from
  time to time executed by any LLC Optionee and/or by any successor or assign
  to any party to such agreement). “Taxable Year” means the Company’s
  accounting period for U.S. federal income tax purposes determined pursuant to
  Section 9.02. “Trading Day” means a day on which the Stock Exchange or such
  other principal United States securities exchange on which the Class A Common
  Stock is listed or admitted to trading is open for the transaction of
  business (unless such trading shall have been suspended for the entire day).
  “Transfer” (and, with a correlative meaning, “Transferring”) means any sale,
  transfer, assignment, pledge, encumbrance or other disposition of (whether
  directly or indirectly, whether with or without consideration and whether
  voluntarily or involuntarily or by operation of Law) (a) any interest (legal
  or beneficial) in any Equity Securities or (b) any equity or other interest
  (legal or beneficial) in any Member if substantially all of the assets of
  such Member consist solely of Units. “Treasury Regulations” means the income
  tax regulations promulgated under the Code and any corresponding provisions
  of succeeding regulations. “Underwriting Agreement” means the Underwriting
  Agreement, dated as of [.], 2014, by and among the Corporation, the Company,
  Morgan Stanley & Co. LLC and Jefferies LLC. “Unit” means a Company
  Interest of a Member or a permitted Assignee in the Company representing a
  fractional part of the Company Interests of all Members and Assignees as may
  be established by the Manager from time to time in accordance with Section
  3.02; provided, however, that any class or group of Units issued shall have
  the relative rights, powers and duties set forth in this Agreement, and the
  Company Interest represented by such class or group of Units shall be
  determined in accordance with such relative rights, powers and duties. 

  

 

	
  

  	
  13 DRAFT
  10-14-2014#86439994v1 “Unitholder” means a Common Unitholder and any Member
  who is the registered holder of any other class of Units, if any. “Unvested
  Corporate Shares” means shares of Class A Common Stock issued pursuant to the
  Corporate Omnibus Incentive Plan that are not Vested Corporate Shares.
  “Value” means (a) for any Stock Option Plan, the Market Price for the trading
  day immediately preceding the date of exercise of a stock option under such
  Stock Option Plan and (b) for any Equity Plan other than a Stock Option Plan,
  the Market Price for the trading day immediately preceding the Vesting Date.
  “Vested Corporate Shares” has the meaning set forth in Section 3.04(c)(ii).
  “Vesting Date” has the meaning set forth in Section 3.11(c)(ii). “Voting
  Units” means (a) the Common Units and (b) any other Units other than Units
  that by their express terms do not entitle the record holder thereof to vote
  on any matter presented to the Members generally under this Agreement for
  approval. “Wayzata” has the meaning set forth in the recitals to this
  Agreement. “Wayzata Offshore” has the meaning set forth in the recitals to
  this Agreement. ARTICLE II. ORGANIZATIONAL MATTERS Section 2.01 Formation of
  Company. The Company was formed on May 12, 2010 pursuant to the provisions of
  the Delaware Act. Section 2.02 Second Amended and Restated Limited Liability
  Company Agreement. The Members hereby execute this Agreement for the purpose
  of establishing the affairs of the Company and the conduct of its business in
  accordance with the provisions of the Delaware Act. The Members hereby agree
  that during the term of the Company set forth in Section 2.06 the rights and
  obligations of the Members with respect to the Company will be determined in
  accordance with the terms and conditions of this Agreement and the Delaware
  Act. On any matter upon which this Agreement is silent, the Delaware Act
  shall control. No provision of this Agreement shall be in violation of the
  Delaware Act and to the extent any provision of this Agreement is in
  violation of the Delaware Act, such provision shall be void and of no effect
  to the extent of such violation without affecting the validity of the other
  provisions of this Agreement; provided, however, that where the Delaware Act
  provides that a provision of the Delaware Act shall apply “unless otherwise
  provided in a limited liability company agreement” or words of similar
  effect, the provisions of this Agreement shall in each instance control;
  provided further, that notwithstanding the foregoing, Section 18-210 of the
  Delaware Act shall not apply or be incorporated into this Agreement. Section
  2.03 Name. The name of the Company shall be “Neff Holdings LLC.” The Manager
  in its sole discretion may change the name of the Company at any time and
  from time to time. Notification of any such change shall be given to all of
  the Members and, to the extent 

  

 

	
  

  	
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  10-14-2014#86439994v1 practicable, to all of the holders of any Equity
  Securities then outstanding. The Company’s business may be conducted under
  its name and/or any other name or names deemed advisable by the Manager.
  Section 2.04 Purpose. The primary business and purpose of the Company shall
  be to engage in such activities as are permitted under the Delaware Act and
  determined from time to time by the Manager in accordance with the terms and
  conditions of this Agreement. Section 2.05 Principal Office; Registered
  Office. The principal office of the Company shall be at 3750 N.W. 87th
  Avenue, Suite 400, Miami, Florida 33178, or such other place as the Manager
  may from time to time designate. The address of the registered office of the
  Company in the State of Delaware shall be c/o The Corporation Trust Company,
  1209 Orange Street, in the City of Wilmington, County of New Castle, 19801,
  and the registered agent for service of process on the Company in the State
  of Delaware at such registered office shall be The Corporation Trust Company.
  The Manager may from time to time change the Company’s registered agent and
  registered office in the State of Delaware. Section 2.06 Term. The term of
  the Company commenced upon the filing of the Certificate in accordance with
  the Delaware Act and shall continue in existence until termination and
  dissolution of the Company in accordance with the provisions of Article XIV.
  Section 2.07 No State-Law Partnership. The Members intend that the Company
  not be a partnership (including, without limitation, a limited partnership)
  or joint venture, and that no Member be a partner or joint venturer of any
  other Member by virtue of this Agreement, for any purposes other than as set
  forth in the last sentence of this Section 2.07, and neither this Agreement
  nor any other document entered into by the Company or any Member relating to
  the subject matter hereof shall be construed to suggest otherwise. The
  Members intend that the Company shall be treated as a partnership for U.S. federal
  and, if applicable, state or local income tax purposes, and that each Member
  and the Company shall file all tax returns and shall otherwise take all tax
  and financial reporting positions in a manner consistent with such treatment.
  ARTICLE III. MEMBERS; UNITS; CAPITALIZATION Section 3.01 Members. (a) Each of
  the Original Members previously was admitted as a Member to the Company
  pursuant to the First A&R LLC Agreement and shall remain a Member of the
  Company upon the Effective Time. At the Effective Time and concurrently with
  the IPO Common Unit Purchase, the Corporation shall be admitted to the
  Company as a Member. In accordance with Section 12.02, from time to time on
  or after the date of this Agreement, upon each LLC Option Exercise the
  applicable LLC Optionee shall be admitted to the Company as an Additional
  Member. (b) The Company shall maintain a schedule setting forth: (i) the name
  and address of each Member; (ii) the aggregate number of outstanding Units
  and the number and class of Units held by each Member; (iii) the aggregate
  amount of cash Capital Contributions that have been 

  

 

	
  

  	
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  10-14-2014#86439994v1 made by the Members with respect to their Units; and
  (iv) the Fair Market Value of any property other than cash contributed by the
  Members with respect to their Units (including, if applicable, a description
  and the amount of any liability assumed by the Company or to which
  contributed property is subject) (such schedule, the “Schedule of Members”).
  The applicable Schedule of Members in effect as of the Effective Time is set
  forth as Schedule 1 to this Agreement. The Schedule of Members shall be the
  definitive record of ownership of each Unit of the Company and all relevant
  information with respect to each Member. The Company shall be entitled to
  recognize the exclusive right of a Person registered on its records as the
  owner of Units for all purposes and shall not be bound to recognize any
  equitable or other claim to or interest in Units on the part of any other
  Person, whether or not it shall have express or other notice thereof, except
  as otherwise provided by the Delaware Act. (c) No Member shall be required
  or, except as approved by the Manager pursuant to Section 6.01 and in
  accordance with the other provisions of this Agreement, permitted to loan any
  money or property to the Company or borrow any money or property from the
  Company. Section 3.02 Units. Interests in the Company shall be represented by
  Units, or such other securities of the Company, in each case as the Manager
  may establish in its discretion in accordance with the terms and subject to
  the restrictions hereof. Immediately after the Effective Time, the Units will
  be comprised of a single class of Common Units (with an aggregate of [.]
  Common Units being authorized for issuance by the Company). To the extent
  required pursuant to Section 3.04(a), the Manager may create one or more
  classes or series of Common Units or preferred Units solely to the extent
  they are in the aggregate substantially equivalent to a class of common stock
  of the Corporation or class or series of preferred stock of the Corporation;
  provided that as long as there are any Members of the Company (other than the
  Corporation) or any LLC Optionees with respect to outstanding LLC Options,
  then no such new class or series of Units may deprive such Members or LLC
  Optionees of, or dilute or reduce, the pro rata share of all Company
  Interests they would have received or to which they would have been entitled
  (including on a pro forma basis for the exercise of LLC Options) if such new
  class or series of Units had not been created except to the extent (and
  solely to the extent) the Company actually receives cash in an aggregate
  amount, or other property with a Fair Market Value in an aggregate amount,
  equal to the pro rata share allocated to such new class or series of Units
  and the number thereof issued by the Company. Section 3.03 Recapitalization
  and Split; the Corporation’s Capital Contribution; the Corporation’s Purchase
  of Common Units; Redemptions. (a) Recapitalization and Split. In connection
  with the Recapitalization, immediately upon the Effective Time, the aggregate
  number of 9,200,000 Original Class A Units that were issued and outstanding
  and held by the Original Members prior to the execution and effectiveness of
  this Agreement are hereby converted into an aggregate of [.] Common Units.
  The number of Common Units received by each Original Member reflect a [__]:1
  ([_______________] to one) split of each Unit evidencing a common Company
  Interest previously held by each Original Member and reflected on Schedule A
  to, and in other applicable provisions of, the First A&R LLC Agreement.
  In connection with the Recapitalization, immediately upon the Effective Time,
  the aggregate number of 778,374 Original Class B Units that were underlying
  option grants to the Original LLC Optionees prior to the execution and 

  

 

	
  

  	
  16 DRAFT
  10-14-2014#86439994v1 effectiveness of this Agreement are hereby converted
  into an aggregate of [.] Common Units. The number of Common Units underlying
  each grant to an Original LLC Optionee will reflect a [__]:1
  ([_______________] to one) split of each Unit evidencing a common Company
  Interest previously underlying the grant to such Original LLC Optionee and
  reflected in the applicable grant documentation under the Original Management
  Equity Plan and the applicable Original Award Agreement. (b) The
  Corporation’s Common Unit Purchase. Following the Recapitalization,
  immediately upon the Effective Time, the Corporation will contribute the IPO
  Net Proceeds to the Company in exchange for [.] Common Units pursuant to the
  IPO Common Unit Purchase Agreement (the “IPO Common Unit Purchase”). The IPO
  Common Unit Purchase shall be reflected on the Schedule of Members. Section
  3.04 Authorization and Issuance of Additional Units. (a) The Company shall
  undertake all actions, including, without limitation, a reclassification,
  distribution, division or recapitalization, with respect to the Common Units,
  to maintain at all times a one-to-one ratio between the number of Common
  Units owned by the Corporation and the number of outstanding shares of Class
  A Common Stock, disregarding, for purposes of maintaining the one-to-one
  ratio, (i) Unvested Corporate Shares, (ii) treasury stock or (iii) preferred
  stock or other debt or equity securities (including without limitation
  warrants, options or rights) issued by the Corporation that are convertible
  into or exercisable or exchangeable for Class A Common Stock (except to the
  extent the net proceeds from such other securities, including any exercise or
  purchase price payable upon conversion, exercise or exchange thereof, has
  been contributed by the Corporation to the equity capital of the Company). In
  the event the Corporation issues, transfers or delivers from treasury stock or
  repurchases Class A Common Stock in a transaction not contemplated in this
  Agreement, the Manager shall have the authority to take all actions such
  that, after giving effect to all such issuances, transfers, delivers or
  repurchases, the number of outstanding Common Units owned by the Corporation
  will equal on a one-for-one basis the number of outstanding shares of Class A
  Common Stock. In the event the Corporation issues, transfers or delivers from
  treasury stock or repurchases or redeems the Corporation’s preferred stock in
  a transaction not contemplated in this Agreement, the Manager shall have the
  authority to take all actions such that, after giving effect to all such
  issuances, transfers, deliveries repurchases or redemptions, the Corporation
  holds (in the case of any issuance, transfer or delivery) or ceases to hold
  (in the case of any repurchase or redemption) equity interests in the Company
  which (in the good faith determination by the Manager) are in the aggregate
  substantially equivalent to the outstanding preferred stock of the
  Corporation so issued, transferred, delivered, repurchased or redeemed. The
  Company shall not undertake any subdivision (by any Common Unit split, Common
  Unit distribution, reclassification, recapitalization or similar event) or
  combination (by reverse Common Unit split, reclassification, recapitalization
  or similar event) of the Common Units that is not accompanied by an identical
  subdivision or combination of Class A Common Stock to maintain at all times a
  one-to-one ratio between the number of Common Units owned by the Corporation
  and the number of outstanding shares of Class A Common Stock, unless such
  action is necessary to maintain at all times a oneto- one ratio between the
  number of Common Units owned by the Corporation and the number of outstanding
  shares of Class A Common Stock as contemplated by the first sentence of this
  Section 3.04(a). 

  

 

	
  

  	
  17 DRAFT
  10-14-2014#86439994v1 (b) The Company shall only be permitted to issue
  additional Units or other Equity Securities in the Company to the Persons and
  on the terms and conditions provided for in Section 3.02, this Section 3.04,
  Section 3.10, Section 3.11 and Section 3.12. Subject to the foregoing, the
  Manager may cause the Company to issue additional Common Units authorized
  under this Agreement at such times and upon such terms as the Manager shall
  determine and the Manager shall amend this Agreement as necessary in
  connection with the issuance of additional Common Units and admission of
  additional Members under this Section 3.04. Section 3.05 Repurchase or
  Redemption of shares of Class A Common Stock. If, at any time, any shares of
  Class A Common Stock are repurchased or redeemed (whether by exercise of a
  put or call, automatically or by means of another arrangement) by the
  Corporation for cash, then the Manager shall cause the Company, immediately
  prior to such repurchase or redemption of Class A Common Stock, to redeem a
  corresponding number of Common Units held by the Corporation, at an aggregate
  redemption price equal to the aggregate purchase or redemption price of the
  shares of Class A Common Stock being repurchased or redeemed by the
  Corporation (plus any expenses related thereto) and upon such other terms as
  are the same for the shares of Class A Common Stock being repurchased or
  redeemed by the Corporation. Section 3.06 Certificates Representing Units;
  Lost, Stolen or Destroyed Certificates; Registration and Transfer of Units.
  (a) Units shall not be certificated unless otherwise determined by the
  Manager. If the Manager determines that one or more Units shall be
  certificated, each such certificate shall be signed by or in the name of the
  Company, by the Chief Executive Officer and any other officer designated by
  the Manager, representing the number of Units held by such holder. Such
  certificate shall be in such form (and shall contain such legends) as the
  Manager may determine. Any or all of such signatures on any certificate
  representing one or more Units may be a facsimile, engraved or printed, to
  the extent permitted by applicable Law. The Manager agrees that it shall not
  elect to treat any Unit as a “security” within the meaning of Article 8 of
  the Uniform Commercial Code unless thereafter all Units then outstanding are
  represented by one or more certificates. (b) If Units are certificated, the
  Manager may direct that a new certificate representing one or more Units be
  issued in place of any certificate theretofore issued by the Company alleged
  to have been lost, stolen or destroyed, upon delivery to the Manager of an
  affidavit of the owner or owners of such certificate, setting forth such
  allegation. The Manager may require the owner of such lost, stolen or
  destroyed certificate, or such owner’s legal representative, to give the
  Company a bond sufficient to indemnify it against any claim that may be made
  against it on account of the alleged loss, theft or destruction of any such
  certificate or the issuance of any such new certificate. (c) Upon surrender
  to the Company or the transfer agent of the Company, if any, of a certificate
  for one or more Units, duly endorsed or accompanied by appropriate evidence
  of succession, assignment or authority to transfer, in compliance with the
  provisions hereof, the Company shall issue a new certificate representing one
  or more Units to the Person entitled thereto, cancel the old certificate and
  record the transaction upon its books. Subject to the 

  

 

	
  

  	
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  10-14-2014#86439994v1 provisions of this Agreement, the Manager may prescribe
  such additional rules and regulations as it may deem appropriate relating to
  the issue, Transfer and registration of Units. Section 3.07 Negative Capital
  Accounts. No Member shall be required to pay to any other Member or the
  Company any deficit or negative balance which may exist from time to time in
  such Member’s Capital Account (including upon and after dissolution of the
  Company). Section 3.08 No Withdrawal. No Person shall be entitled to withdraw
  any part of such Person’s Capital Contribution or Capital Account or to
  receive any Distribution from the Company, except as expressly provided in
  this Agreement. Section 3.09 Loans From Members. Loans by Members to the
  Company shall not be considered Capital Contributions. Subject to the
  provisions of Section 3.01(c), the amount of any such advances shall be a
  debt of the Company to such Member and shall be payable or collectible in
  accordance with the terms and conditions upon which such advances are made.
  Section 3.10 LLC Option Exercises. If at any time or from time to time, in
  connection with any LLC Option, the LLC Optionee exercises its LLC Option in
  whole or in part: (a) If such LLC Optionee is not a Member as of the date of
  such exercise, such LLC Optionee shall execute and deliver to the Manager a
  Joinder to this Agreement whereby such LLC Optionee shall agree to become a
  Member under this Agreement, entitled to all of the rights and privileges and
  subject to all of the agreements and responsibilities of a Member hereunder
  from and after the date of such Joinder. (b) Notwithstanding the foregoing,
  if the LLC Optionee, in its capacity as a prospective Member hereunder as a
  result of such LLC Option exercise, intends to simultaneously exercise its
  Redemption Rights with respect to all (but not less than all) of the Common
  Units to be received as by such LLC Optionee as a result of such exercise,
  then: (i) the actions described in subsection (a) of this Section 3.10 shall
  be deemed to have occurred (including that such LLC Optionee shall be deemed
  to have become a Member for the period of time between such exercise and such
  Redemption) without requiring the actual execution of a Joinder or the actual
  issuance and delivery to the LLC Optionee of the applicable number of Common
  Units; and (ii) such LLC Optionee may proceed to exercise all of the rights of
  a Member with respect to a Redemption under Article XI hereof of up to the
  number of Common Units that such LLC Optionee is entitled to receive (and
  deemed to have received) as a result of such exercise. (e) Anti-dilution
  adjustments. For all purposes of this Section 3.10, the number of Common
  Units (or in connection with simultaneous Redemption, the number of shares of
  Class A Common Stock in lieu of Common Units) shall be determined after
  giving effect to all antidilution or similar adjustments that are applicable,
  as of the date of exercise, to the LLC Option being exercised the Original
  Management Equity Plan or applicable Original Award Agreement. Section 3.11
  Corporate Stock Option Plans. 

  

 

 

	
  

  	
  19 DRAFT
  10-14-2014#86439994v1 (a) Options Granted to Persons other than LLC
  Employees. If at any time or from time to time, in connection with any Stock
  Option Plan, a stock option granted over shares of Class A Common Stock to a
  Person other than an LLC Employee is duly exercised: (i) The Corporation
  shall, as soon as practicable after such exercise, make a Capital
  Contribution to the Company in an amount equal to the exercise price paid to
  the Corporation by such exercising Person in connection with the exercise of
  such stock option. (ii) Notwithstanding the amount of the Capital
  Contribution actually made pursuant to Section 3.11(a)(i), the Corporation
  shall be deemed to have contributed to the Company as a Capital Contribution,
  in lieu of the Capital Contribution actually made and in consideration of
  additional Common Units, an amount equal to the Value of a share of Class A
  Common Stock as of the date of such exercise multiplied by the number of
  shares of Class A Common Stock then being issued by the Corporation in
  connection with the exercise of such stock option. (iii) The Corporation
  shall receive in exchange for such Capital Contributions (as deemed made
  under 3.11(a)(ii)), a corresponding number of Units of a class correlative to
  the class of Equity Securities for which such stock options were granted. (b)
  Options Granted to LLC Employees. If at any time or from time to time, in
  connection with any Stock Option Plan, a stock option granted over shares of
  Class A Common Stock to an LLC Employee is duly exercised: (i) The
  Corporation shall sell to the Optionee, and the Optionee shall purchase from
  the Corporation, for a cash price per share equal to the Value of a share of
  Class A Common Stock at the time of the exercise, the number of shares of Class
  A Common Stock equal to the quotient of (x) the exercise price payable by the
  Optionee in connection with the exercise of such stock option divided by (y)
  the Value of a share of Class A Common Stock at the time of such exercise.
  (ii) The Corporation shall sell to the Company (or if the Optionee is an
  employee of, or other service provider to, a Subsidiary, the Corporation
  shall sell to such Subsidiary), and the Company (or such Subsidiary, as
  applicable) shall purchase from the Corporation, a number of shares of Class
  A Common Stock equal to the excess of (x) the number of shares of Class A
  Common Stock as to which such stock option is being exercised over (y) the
  number of shares of Class A Common Stock sold pursuant to Section 3.11(b)(i)
  hereof. The purchase price per share of Class A Common Stock for such sale of
  shares of Class A Common Stock to the Company (or such Subsidiary) shall be
  the Value of a share of Class A Common Stock as of the date of exercise of
  such stock option. (iii) The Company shall transfer to the Optionee (or if
  the Optionee is an employee of, or other service provider to, a Subsidiary,
  the Subsidiary shall transfer to the Optionee) at no additional cost to such
  LLC Employee and as additional 

  

 

	
  

  	
  20 DRAFT
  10-14-2014#86439994v1 compensation to such LLC Employee, the number of shares
  of Class A Common Stock described in Section 3.11(b)(ii). (iv) The
  Corporation shall, as soon as practicable after such exercise, make a Capital
  Contribution to the Company in an amount equal to all proceeds received (from
  whatever source, but excluding any payment in respect of payroll taxes or
  other withholdings) by the Corporation in connection with the exercise of
  such stock option. The Corporation shall receive for such Capital
  Contribution, a number Units equal to the number of shares of Class A Common
  Stock for which such option was exercised. (c) Restricted Stock Granted to
  LLC Employees. If at any time or from time to time, in connection with any
  Equity Plan (other than a Stock Option Plan), any shares of Class A Common
  Stock are issued to an LLC Employee (including any shares of Class A Common
  Stock that are subject to forfeiture in the event such LLC Employee
  terminates his employment by the Company or any Subsidiary) in consideration
  for services performed for the Company or any Subsidiary: (i) The Corporation
  shall issue such number of shares of Class A Common Stock as are to be issued
  to the LLC Employee in accordance with the Equity Plan; (ii) On the date
  (such date, the “Vesting Date”) that the Value of such shares is includible
  in taxable income of the LLC Employee, the following events will be deemed to
  have occurred: (a) the Corporation shall be deemed to have sold such shares
  of Class A Common Stock to the Company (or if the LLC Employee is an employee
  of, or other service provider to, a Subsidiary, to such Subsidiary) for a
  purchase price equal to the Value of such shares of Class A Common Stock, (b)
  the Company (or such Subsidiary) shall be deemed to have delivered such
  shares of Class A Common Stock to the LLC Employee, (c) the Corporation shall
  be deemed to have contributed the purchase price for such shares of Class A
  Common Stock to the Company as a Capital Contribution, and (d) in the case
  where the LLC Employee is an employee of a Subsidiary, the Company shall be
  deemed to have contributed such amount to the capital of the Subsidiary; and
  (iii) The Company shall issue to the Corporation on the Vesting Date a number
  of Units equal to the number of shares of Class A Common Stock issued under
  Section 3.11(c)(i) in consideration for a Capital Contribution in cash in an
  amount equal to the product of (x) the number of such newly issued Units
  multiplied by (y) the Value of a share of Class A Common Stock. (d) Future
  Stock Incentive Plans. Nothing in this Agreement shall be construed or
  applied to preclude or restrain the Corporation from adopting, modifying or
  terminating stock incentive plans for the benefit of employees, directors or
  other business associates of the Corporation, the Company or any of their
  Affiliates. The Members acknowledge and agree that, in the event that any
  such plan is adopted, modified or terminated by the Corporation, amendments
  to this Section 3.11 may become necessary or advisable and that any approval
  or consent to any such amendments requested by the Corporation shall be
  deemed granted by the Members. 

  

 

	
  

  	
  21 DRAFT
  10-14-2014#86439994v1 (e) Anti-dilution adjustments. For all purposes of this
  Section 3.11, the number of shares of Class A Common Stock and the corresponding
  number of Common Units shall be determined after giving effect to all
  anti-dilution or similar adjustments that are applicable, as of the date of
  exercise or vesting, to the option, warrant, restricted stock or other equity
  interest that is being exercised or becomes vested under the applicable Stock
  Option Plan or other Equity Plan and applicable award or grant documentation.
  Section 3.12 Dividend Reinvestment Plan, Cash Option Purchase Plan, Stock
  Incentive Plan or Other Plan. Except as may otherwise be provided in this
  Article III, all amounts received or deemed received by the Corporation in
  respect of any dividend reinvestment plan, cash option purchase plan, stock
  incentive or other stock or subscription plan or agreement, either (a) shall
  be utilized by the Corporation to effect open market purchases of shares of
  Class A Common Stock, or (b) if the Corporation elects instead to issue new
  shares of Class A Common Stock with respect to such amounts, shall be
  contributed by the Corporation to the Company in exchange for additional
  Units. Upon such contribution, the Company will issue to the Corporation a
  number of Units equal to the number of new shares of Class A Common Stock so
  issued. ARTICLE IV. DISTRIBUTIONS Section 4.01 Distributions. (a) Distributable
  Cash; Other Distributions. To the extent permitted by applicable Law and
  hereunder, Distributions to Members may be declared by the Manager out of
  Distributable Cash or other funds or property legally available therefor in
  such amounts and on such terms (including the payment dates of such
  Distributions) as the Manager shall determine using such record date as the
  Manager may designate; such Distributions shall be made to the Members as of
  the close of business on such record date on a pro rata basis in accordance
  with each Member’s Percentage Interest as of the close of business on such
  record date; provided, however, that the Manager shall have the obligation to
  make Distributions as set forth in Sections 4.01(b) and 14.02; and provided
  further that, notwithstanding any other provision herein to the contrary, no
  Distributions shall be made to any Member to the extent such Distribution
  would render the Company insolvent. For purposes of the foregoing sentence,
  insolvency means the inability of the Company to meet its payment obligations
  when due. Promptly following the designation of a record date and the
  declaration of a Distribution pursuant to this Section 4.01(a), the Manager
  shall give notice to each Member of the record date, the amount and the terms
  of the Distribution and the payment date thereof. In furtherance of the
  foregoing, it is intended that the Manager shall, to the extent permitted by
  applicable Law and hereunder, have the right in its sole discretion to make
  Distributions to the Members pursuant to this Section 4.01(a) in such amounts
  as shall enable the Corporation to pay dividends or to meet its obligations,
  including its obligations pursuant to the Tax Receivable Agreement (to the
  extent such obligations are not otherwise able to be satisfied as a result of
  Tax Distributions required to be made pursuant to Section 4.01(b)). (b) Tax
  Distributions. 

  

 

	
  

  	
  22 DRAFT
  10-14-2014#86439994v1 (i) On or about each date (a “Tax Distribution Date”)
  that is [ten (10)] Business Days prior to (i) each date on which estimated
  U.S. federal income tax payments are required to be made by calendar year
  individual taxpayers (or, if earlier, the date on which estimated U.S.
  federal income tax payments are required for the Corporation) and (ii) each due
  date for the U.S. federal income tax return of an individual calendar year
  taxpayer (without regard to extensions) (or, if earlier, the due date for the
  U.S. federal income tax return of the Corporation, as determined without
  regard to extensions), the Company shall be required to make a Distribution
  to each Member of cash in an amount equal to the excess of such Member’s
  Assumed Tax Liability, if any, for such taxable period over the Distributions
  previously made to such Member pursuant to this Section 4.01(b) with respect
  to such taxable period (the “Tax Distributions”). (ii) To the extent a Member
  otherwise would be entitled to receive less than its Percentage Interest of
  the aggregate Tax Distributions to be paid pursuant to this Section 4.01(b)
  on any given date, the Tax Distributions to such Member shall be increased to
  ensure that all Distributions made pursuant to this Section 4.01(b) are made
  pro rata in accordance with Percentage Interests. If, on a Tax Distribution
  Date, there are insufficient funds on hand to distribute to the Members the
  full amount of the Tax Distributions to which such Members are otherwise
  entitled, Distributions pursuant to this Section 4.01(b) shall be made to the
  Members to the extent of available funds in accordance with their Percentage
  Interests and the Company shall make future Tax Distributions as soon as
  funds become available sufficient to pay the remaining portion of the Tax
  Distributions to which such Members are otherwise entitled. (iii) In the
  event of any audit by, or similar event with, a taxing authority that affects
  the calculation of any Member’s Assumed Tax Liability for any taxable year,
  or in the event the Company files an amended tax return, each Member’s
  Assumed Tax Liability with respect to such year shall be recalculated by
  giving effect to such event (for the avoidance of doubt, taking into account
  interest or penalties). Any shortfall in the amount of Tax Distributions the
  Members and former Members received for the relevant taxable years based on
  such recalculated Assumed Tax Liability promptly shall be distributed to such
  Members and the successors of such former Members, except, for the avoidance
  of doubt, to the extent Distributions were made to such Members and former
  Members pursuant to Section 4.01(a) and this Section 4.01(b) in the relevant
  taxable years sufficient to cover such shortfall. (iv) Notwithstanding the
  foregoing, Distributions pursuant to this Section 4.01(b), if any, shall be
  made to a Member only to the extent all previous Distributions to such Member
  pursuant to Section 4.01(a) during the Fiscal Year are less than the
  Distributions such Member otherwise would have been entitled to receive
  during such Fiscal Year pursuant to this Section 4.01(b). Section 4.02
  Restricted Distributions. Notwithstanding any provision to the contrary
  contained in this Agreement, the Company shall not make any Distribution to
  any Member on account of any Company Interest if such Distribution would
  violate any applicable Law or the terms of the Credit Agreements. 

  

 

	
  

  	
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  10-14-2014#86439994v1 ARTICLE V. CAPITAL ACCOUNTS; ALLOCATIONS; TAX MATTERS
  Section 5.01 Capital Accounts. (a) The Company shall maintain a separate
  Capital Account for each Member according to the rules of Treasury Regulation
  Section 1.704-1(b)(2)(iv). For this purpose, the Company may (in the
  discretion of the Manager), upon the occurrence of the events specified in
  Treasury Regulation Section 1.704-1(b)(2)(iv)(f), increase or decrease the
  Capital Accounts in accordance with the rules of such Treasury Regulation and
  Treasury Regulation Section 1.704- 1(b)(2)(iv)(g) to reflect a revaluation of
  Company property. Upon the exercise by any LLC Optionee of its LLC Option,
  such LLC Optionee’s initial Capital Account shall be equal to the sum of (i)
  the exercise price paid by such LLC Optionee to the Company in connection
  with such exercise and (ii) the amount included in such LLC Optionee’s
  compensation income under Code Section 83 as a result of such exercise. (b)
  For purposes of computing the amount of any item of Company income, gain,
  loss or deduction to be allocated pursuant to this Article V and to be
  reflected in the Capital Accounts of the Members, the determination,
  recognition and classification of any such item shall be the same as its
  determination, recognition and classification for U.S. federal income tax
  purposes (including any method of depreciation, cost recovery or amortization
  used for this purpose); provided, however, that: (i) The computation of all
  items of income, gain, loss and deduction shall include those items described
  in Code Section 705(a)(l)(B) or Code Section 705(a)(2)(B) and Treasury
  Regulation Section 1.704-1(b)(2)(iv)(i), without regard to the fact that such
  items are not includable in gross income or are not deductible for U.S.
  federal income tax purposes. (ii) If the Book Value of any Company property
  is adjusted pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(f), the
  amount of such adjustment shall be taken into account as gain or loss from
  the disposition of such property. (iii) Items of income, gain, loss or
  deduction attributable to the disposition of Company property having a Book
  Value that differs from its adjusted basis for tax purposes shall be computed
  by reference to the Book Value of such property. (iv) Items of depreciation,
  amortization and other cost recovery deductions with respect to Company
  property having a Book Value that differs from its adjusted basis for tax
  purposes shall be computed by reference to the property’s Book Value in accordance
  with Treasury Regulation Section 1.704-1(b)(2)(iv)(g). (v) To the extent an
  adjustment to the adjusted tax basis of any Company asset pursuant to Code
  Sections 732(d), 734(b) or 743(b) is required, pursuant to Treasury
  Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in
  determining Capital Accounts, the amount of such adjustment to the Capital
  Accounts shall be treated as an item of gain (if the adjustment increases the
  basis of the asset) or loss (if the adjustment decreases such basis). 

  

 

	
  

  	
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  10-14-2014#86439994v1 Section 5.02 Allocations. Except as otherwise provided
  in Section 5.03 and Section 5.04, Net Profits and Net Losses for any Fiscal
  Year or Fiscal Period shall be allocated among the Capital Accounts of the
  Members pro rata in accordance with their respective Percentage Interests.
  For the avoidance of doubt, in accordance with Code Section 706(d)(1), any
  deductions resulting from the exercise by any LLC Optionee of its LLC Option
  shall be allocated under a closing of the books method to the Members who
  were Members of the Company in the Fiscal Period ending on the day
  immediately prior the day of such exercise. Section 5.03 Regulatory
  Allocations. (a) Losses attributable to partner nonrecourse debt (as defined in
  Treasury Regulation Section 1.704-2(b)(4)) shall be allocated in the manner
  required by Treasury Regulation Section 1.704-2(i). If there is a net
  decrease during a Taxable Year in partner nonrecourse debt minimum gain (as
  defined in Treasury Regulation Section 1.704-2(i)(3)), Profits for such
  Taxable Year (and, if necessary, for subsequent Taxable Years) shall be
  allocated to the Members in the amounts and of such character as determined
  according to Treasury Regulation Section 1.704-2(i)(4). (b) Nonrecourse
  deductions (as determined according to Treasury Regulation Section
  1.704-2(b)(1)) for any Taxable Year shall be allocated pro rata among the
  Members in accordance with their Percentage Interests. Except as otherwise
  provided in Section 4.03(a), if there is a net decrease in the Minimum Gain
  during any Taxable Year, each Member shall be allocated Profits for such
  Taxable Year (and, if necessary, for subsequent Taxable Years) in the amounts
  and of such character as determined according to Treasury Regulation Section
  1.704- 2(f). This Section 5.03(b) is intended to be a minimum gain chargeback
  provision that complies with the requirements of Treasury Regulation Section
  1.704-2(f), and shall be interpreted in a manner consistent therewith. (c) If
  any Member that unexpectedly receives an adjustment, allocation or
  Distribution described in Treasury Regulation Section
  1.704-1(b)(2)(ii)(d)(4), (5) and (6) has an Adjusted Capital Account Deficit
  as of the end of any Taxable Year, computed after the application of Sections
  5.03(a) and 5.03(b) but before the application of any other provision of this
  Article V, then Profits for such Taxable Year shall be allocated to such
  Member in proportion to, and to the extent of, such Adjusted Capital Account
  Deficit. This Section 5.03(c) is intended to be a qualified income offset
  provision as described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)
  and shall be interpreted in a manner consistent therewith. (d) If the
  allocation of Net Losses to a Member as provided in Section 5.02 would create
  or increase an Adjusted Capital Account Deficit, there shall be allocated to
  such Member only that amount of Losses as will not create or increase an
  Adjusted Capital Account Deficit. The Net Losses 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 this Section 5.03(d). (e) Profits and Losses
  described in Section 5.01(b)(v) shall be allocated in a manner consistent
  with the manner that the adjustments to the Capital Accounts are required to
  be made pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(j), (k) and
  (m). 

  

 

	
  

  	
  25 DRAFT
  10-14-2014#86439994v1 (f) The allocations set forth in Section 5.03(a)
  through and including Section 5.03(e) (the “Regulatory Allocations”) are
  intended to comply with certain requirements of Sections 1.704-1(b) and
  1.704-2 of the Treasury Regulations. The Regulatory Allocations may not be
  consistent with the manner in which the Members intend to allocate Profit and
  Loss of the Company or make Distributions. Accordingly, notwithstanding the
  other provisions of this Article V, but subject to the Regulatory
  Allocations, income, gain, deduction and loss shall be reallocated among the
  Members so as to eliminate the effect of the Regulatory Allocations and
  thereby cause the respective Capital Accounts of the Members to be in the
  amounts (or as close thereto as possible) they would have been if Profit and
  Loss (and such other items of income, gain, deduction and loss) had been
  allocated without reference to the Regulatory Allocations. In general, the
  Members anticipate that this will be accomplished by specially allocating
  other Profit and Loss (and such other items of income, gain, deduction and
  loss) among the Members so that the net amount of the Regulatory Allocations
  and such special allocations to each such Member is zero. In addition, if in
  any Fiscal Year or Fiscal Period there is a decrease in partnership minimum
  gain, or in partner nonrecourse debt minimum gain, and application of the
  minimum gain chargeback requirements set forth in Section 5.03(a) or Section
  5.03(b) would cause a distortion in the economic arrangement among the
  Members, the Members may, if they do not expect that the Company will have
  sufficient other income to correct such distortion, request the Internal
  Revenue Service to waive either or both of such minimum gain chargeback
  requirements. If such request is granted, this Agreement shall be applied in
  such instance as if it did not contain such minimum gain chargeback
  requirement. Section 5.04 Final Allocations. Notwithstanding any contrary
  provision in this Agreement except Section 5.03, the Manager shall make
  appropriate adjustments to allocations of Profits and Losses to (or, if
  necessary, allocate items of gross income, gain, loss or deduction of the
  Company among) the Members upon the liquidation of the Company (within the
  meaning of Section 1.704 1(b)(2)(ii)(g) of the Treasury Regulations), the
  transfer of substantially all the Units (whether by sale or exchange or
  merger) or sale of all or substantially all the assets of the Company, such
  that, to the maximum extent possible, the Capital Accounts of the Members are
  proportionate to their Percentage Interests. In each case, such adjustments
  or allocations shall occur, to the maximum extent possible, in the Fiscal
  Year of the event requiring such adjustments or allocations. Section 5.05 Tax
  Allocations. (a) The income, gains, losses, deductions and credits of the
  Company will be allocated, for federal, state and local income tax purposes,
  among the Members in accordance with the allocation of such income, gains,
  losses, deductions and credits among the Members for computing their Capital
  Accounts; provided that if any such allocation is not permitted by the Code
  or other applicable Law, the Company’s subsequent income, gains, losses,
  deductions and credits will be allocated among the Members so as to reflect
  as nearly as possible the allocation set forth herein in computing their
  Capital Accounts. (b) Items of Company taxable income, gain, loss and
  deduction with respect to any property contributed to the capital of the
  Company shall be allocated among the Members in accordance with Code Section
  704(c) so as to take account of any variation between the adjusted 

  

 

	
  

  	
  26 DRAFT
  10-14-2014#86439994v1 basis of such property to the Company for federal
  income tax purposes and its Book Value using the traditional method, as
  described in Treasury Regulations Section 1.704-3(b). (c) If the Book Value
  of any Company asset is adjusted pursuant to Section 5.01(b), subsequent
  allocations of items of taxable income, gain, loss and deduction with respect
  to such asset shall take account of any variation between the adjusted basis
  of such asset for federal income tax purposes and its Book Value in the same
  manner as under Code Section 704(c) using the traditional method, as
  described in Treasury Regulations Section 1.704-3(b). (d) Allocations of tax
  credits, tax credit recapture, and any items related thereto shall be
  allocated to the Members pro rata as determined by the Manager taking into
  account the principles of Treasury Regulation Section 1.704-1(b)(4)(ii). (e)
  For purposes of determining a Member’s pro rata share of the Company’s
  “excess nonrecourse liabilities” within the meaning of Treasury Regulation
  Section 1.752-3(a)(3), each Member’s interest in income and gain shall be in
  proportion to the Units held by such Member. (f) Allocations pursuant to this
  Section 5.05 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 Profits, Losses, Distributions or other
  Company items pursuant to any provision of this Agreement. Section 5.06
  Indemnification and Reimbursement for Payments on Behalf of a Member. If the
  Company is obligated to pay any amount to a Governmental Entity (or otherwise
  makes a payment to a Governmental Entity) that is specifically attributable
  to a Member or a Member’s status as such (including federal withholding
  taxes, state personal property taxes and state unincorporated business taxes,
  but excluding payments such as professional association fees and the like
  made voluntarily by the Company on behalf of any Member based upon such
  Member’s status as an employee of the Company), then such Person shall
  indemnify the Company in full for the entire amount paid (including interest,
  penalties and related expenses). The Manager may offset Distributions to
  which a Person is otherwise entitled under this Agreement against such
  Person’s obligation to indemnify the Company under this Section 5.06. A
  Member’s obligation to make contributions to the Company under this Section
  5.06 shall survive the termination, dissolution, liquidation and winding up
  of the Company, and for purposes of this Section 5.06, the Company shall be
  treated as continuing in existence. The Company may pursue and enforce all
  rights and remedies it may have against each Member under this Section 5.06,
  including instituting a lawsuit to collect such contribution with interest
  calculated at a rate per annum equal to the sum of the Base Rate plus [300]
  basis points (but not in excess of the highest rate per annum permitted by
  Law). ARTICLE VI. MANAGEMENT Section 6.01 Authority of Manager. (a) Except
  for situations in which the approval of any Member(s) is specifically
  required by this Agreement, (i) all management powers over the business and
  affairs of the Company shall be exclusively vested in the Corporation, as the
  sole managing member of the 

  

 

	
  

  	
  27 DRAFT
  10-14-2014#86439994v1 Company (the Corporation, in such capacity, the
  “Manager”) and (ii) the Manager shall conduct, direct and exercise full
  control over all activities of the Company. The Manager shall be the
  “manager” of the Company for the purposes of the Delaware Act. Except as
  otherwise expressly provided for herein and subject to the other provisions
  of this Agreement, the Members hereby consent to the exercise by the Manager
  of all such powers and rights conferred on the Members by the Delaware Act
  with respect to the management and control of the Company. The Corporation
  may not be removed as a Manager except as provided in Section 6.04. Any
  Manager that is properly removed pursuant to Section 6.04 shall be replaced
  in the manner provided in Section 6.05. The Original Members terminate as of
  the Effective Time the “Board” previously established in order to conduct the
  business of the Company pursuant to the First A&R LLC Agreement (as such
  term was previously defined in the First A&R LLC Agreement). (b) The
  day-to-day business and operations of the Company shall be overseen and
  implemented by officers of the Company (each, an “Officer” and collectively,
  the “Officers”), subject to the limitations imposed by the Manager. An
  Officer may, but need not, be a Member. Each Officer shall be appointed by
  the Manager and shall hold office until his or her successor shall be duly
  designated and shall qualify or until his or her death or until he shall
  resign or shall have been removed in the manner hereinafter provided. Any one
  Person may hold more than one office. Subject to the other provisions in this
  Agreement (including in Section 6.08 below), the salaries or other compensation,
  if any, of the Officers of the Company shall be fixed from time to time by
  the Manager. The authority and responsibility of the Officers shall include,
  but not be limited to, such duties as the Manager may, from time to time,
  delegate to them and the carrying out of the Company’s business and affairs
  on a day-today basis. The existing Officers of the Company as of the
  Effective Time shall remain in their respective positions and shall be deemed
  to have been appointed by the Manager. All Officers shall be, and shall be
  deemed to be, officers and employees of the Company. An Officer may also
  perform one or more roles as an officer of the Manager. (c) The Manager shall
  have the power and authority to effectuate the sale, lease, transfer, exchange
  or other disposition of any, all or substantially all of the assets of the
  Company (including the exercise or grant of any conversion, option, privilege
  or subscription right or any other right available in connection with any
  assets at any time held by the Company) or the merger, consolidation,
  reorganization or other combination of the Company with or into another
  entity. Section 6.02 Actions of the Manager. The Manager may act through any
  Officer or through any other Person or Persons to whom authority and duties
  have been delegated pursuant to Section 6.08. Section 6.03 Resignation. The
  Manager may resign at any time by giving written notice to the Members.
  Unless otherwise specified in the notice, the resignation shall take effect
  upon receipt thereof by the Members, and the acceptance of the resignation
  shall not be necessary to make it effective. Section 6.04 Removal. The
  Manager may only be removed by the Corporation. 

  

 

	
  

  	
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  10-14-2014#86439994v1 Section 6.05 Vacancies. Vacancies in the position of
  Manager occurring for any reason shall be filled by the Corporation (or, if
  the Corporation has ceased to exist without any successor or assign, then by
  the holders of a majority in interest of the voting capital stock of the
  Corporation immediately prior to such cessation). Section 6.06 Transactions
  Between Company and Manager. The Manager may cause the Company to contract
  and deal with the Manager, or any Affiliate of the Manager, provided such
  contracts and dealings are on terms comparable to and competitive with those
  available to the Company from others dealing at arm’s length or are approved
  by the Members and otherwise are permitted by the Credit Agreements. The
  Members hereby approve the IPO Common Unit Purchase Agreement. Section 6.07
  Reimbursement for Expenses. The Manager shall not be compensated for its
  services as Manager of the Company except as expressly provided in this
  Agreement or as otherwise approved by the Members (other than the Manager)
  holding a majority of the Voting Units (excluding Voting Units held by the
  Manager) then outstanding. The Members acknowledge and agree that, upon
  consummation of the IPO, the Manager’s Class A Common Stock will be publicly
  traded and therefore the Manager will have access to the public capital markets
  and that such status and the services performed by the Manager will inure to
  the benefit of the Company and all Members; therefore, the Manager shall be
  reimbursed by the Company for any reasonable out-of-pocket expenses incurred
  on behalf of the Company, including without limitation all fees, expenses and
  costs associated with the IPO and all fees, expenses and costs of being a
  public company (including without limitation public reporting obligations,
  proxy statements, stockholder meetings, stock exchange fees, transfer agent
  fees, SEC and FINRA filing fees and offering expenses) and maintaining its
  corporate existence. In the event that shares of Class A Common Stock are
  sold to underwriters in the IPO (or in any subsequent public offering) at a
  price per share that is lower than the price per share for which such shares
  of Class A Common Stock are sold to the public in the IPO (or in such
  subsequent public offering) after taking into account underwriters’ discounts
  or commissions and brokers’ fees or commissions (such difference, the
  “Discount”), the Company shall reimburse the Manager for such Discount by
  treating such Discount as an additional Capital Contribution made by the
  Manager to the Company and increasing the Manager’s Capital Account by the amount
  of such Discount. To the extent practicable, expenses incurred by the Manager
  on behalf of or for the benefit of the Company shall be billed directly to
  and paid by the Company and, if and to the extent any reimbursements to the
  Manager or any of its Affiliates by the Company pursuant to this Section 6.07
  constitute gross income to such Person (as opposed to the repayment of
  advances made by such Person on behalf of the Company), such amounts shall be
  treated as “guaranteed payments” within the meaning of Code Section 707(c)
  and shall not be treated as distributions for purposes of computing the
  Members’ Capital Accounts. Section 6.08 Delegation of Authority. The Manager
  (a) may, from time to time, delegate to one or more Persons such authority
  and duties as the Manager may deem advisable, and (b) may assign titles
  (including, without limitation, chief executive officer, president, chief
  executive officer, chief financial officers, chief operating officer, vice
  president, secretary, assistant secretary, treasurer or assistant treasurer)
  and delegate certain authority and duties to such Persons as the same may be
  amended, restated or otherwise modified from time to time. Any number of
  titles may be held by the same individual. The salaries or other compensation,
  if 

  

 

	
  

  	
  29 DRAFT
  10-14-2014#86439994v1 any, of such agents of the Company shall be fixed from
  time to time by the Manager, subject to the other provisions in this
  Agreement. Section 6.09 Limitation of Liability of Manager. (a) Except as
  otherwise provided herein or in an agreement entered into by such Person and
  the Company, neither the Manager nor any of the Manager’s Affiliates shall be
  liable to the Company or to any Member that is not the Manager for any act or
  omission performed or omitted by the Manager in its capacity as the sole
  managing member of the Company pursuant to authority granted to the Manager
  by this Agreement; provided, however, that, except as otherwise provided
  herein, such limitation of liability shall not apply to the extent the act or
  omission was attributable to the Manager’s gross negligence, willful
  misconduct or knowing violation of Law or for any present or future breaches
  of any representations, warranties or covenants by the Manager or its
  Affiliates contained herein or in the other agreements with the Company. The
  Manager may exercise any of the powers granted to it by this Agreement and
  perform any of the duties imposed upon it hereunder either directly or by or
  through its agents, and shall not be responsible for any misconduct or
  negligence on the part of any such agent (so long as such agent was selected
  in good faith and with reasonable care). The Manager shall be entitled to
  rely upon the advice of legal counsel, independent public accountants and
  other experts, including financial advisors, and any act of or failure to act
  by the Manager in good faith reliance on such advice shall in no event
  subject the Manager to liability to the Company or any Member that is not the
  Manager. (b) Whenever this Agreement or any other agreement contemplated
  herein provides that the Manager shall act in a manner which is, or provide
  terms which are, “fair and reasonable” to the Company or any Member that is
  not the Manager, the Manager shall determine such appropriate action or provide
  such terms considering, in each case, the relative interests of each party to
  such agreement, transaction or situation and the benefits and burdens
  relating to such interests, any customary or accepted industry practices, and
  any applicable United States generally accepted accounting practices or
  principles. (c) Whenever in this Agreement or any other agreement
  contemplated herein, the Manager is permitted or required to take any action
  or to make a decision in its “sole discretion” or “discretion,” with
  “complete discretion” or under a grant of similar authority or latitude, the
  Manager shall be entitled to consider such interests and factors as it
  desires, including its own interests, and shall, to the fullest extent
  permitted by applicable Law, have no duty or obligation to give any
  consideration to any interest of or factors affecting the Company or other
  Members. (d) Whenever in this Agreement the Manager is permitted or required
  to take any action or to make a decision in its “good faith” or under another
  express standard, the Manager shall act under such express standard and, to
  the extent permitted by applicable Law, shall not be subject to any other or
  different standards imposed by this Agreement or any other agreement
  contemplated herein, and, notwithstanding anything contained herein to the
  contrary, so long as the Manager acts in good faith, the resolution, action
  or terms so made, taken or provided by the Manager shall not constitute a
  breach of this Agreement or any other agreement contemplated herein or impose
  liability upon the Manager or any of the Manager’s Affiliates. 

  

 

	
  

  	
  30 DRAFT
  10-14-2014#86439994v1 Section 6.10 Investment Company Act. The Manager shall
  use its best efforts to ensure that the Company shall not be subject to
  registration as an investment company pursuant to the Investment Company Act.
  Section 6.11 Outside Activities of the Manager. The Manager shall not,
  directly or indirectly, enter into or conduct any business or operations,
  other than in connection with (a) the ownership, acquisition and disposition
  of Common Units, (b) the management of the business and affairs of the
  Company and its Subsidiaries, (c) the operation of the Manager as a reporting
  company with a class (or classes) of securities registered under Section 12
  of the Exchange Act and listed on a securities exchange, (d) the offering,
  sale, syndication, private placement or public offering of stock, bonds,
  securities or other interests, (e) financing or refinancing of any type
  related to the Company, its Subsidiaries or their assets or activities, and
  (f) such activities as are incidental to the foregoing; provided, however,
  that, except as otherwise provided herein, the net proceeds of any financing
  raised by the Manager pursuant to the preceding clauses (d) and (e) shall be
  made available to the Company, whether as Capital Contributions, loans or
  otherwise, as appropriate, and, provided further, that the Manager may, in
  its sole and absolute discretion, from time to time hold or acquire assets in
  its own name or otherwise other than through the Company and its Subsidiaries
  so long as the Manager takes commercially reasonable measures to ensure that
  the economic benefits and burdens of such assets are otherwise vested in the
  Company or its Subsidiaries, through assignment, mortgage loan or otherwise
  or, if it is not commercially reasonable to vest such economic interests in
  the Company or any of its Subsidiaries, the Members shall negotiate in good
  faith to amend this Agreement to reflect such activities and the direct
  ownership of assets by the Manager. Nothing contained herein shall be deemed
  to prohibit the Manager from executing any guarantee of indebtedness of the
  Company or its Subsidiaries. ARTICLE VII. RIGHTS AND OBLIGATIONS OF MEMBERS
  Section 7.01 Limitation of Liability and Duties of Members. (a) Except as
  provided in this Agreement or in the Delaware 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 (including without limitation, the Manager) shall be obligated
  personally for any such debts, obligation or liability solely by reason of
  being a Member or acting as the Manager of the Company. Except as otherwise
  provided in this Agreement, a Member’s liability (in its capacity as such)
  for Company liabilities and Losses shall be limited to the Company’s assets.
  Notwithstanding anything contained herein to the contrary, the failure of the
  Company to observe any formalities or requirements relating to the exercise
  of its powers or management of its business and affairs under this Agreement
  or the Delaware Act shall not be grounds for imposing personal liability on
  the Members for liabilities of the Company. (b) In accordance with the
  Delaware Act and the laws of the State of Delaware, a Member may, under
  certain circumstances, be required to return amounts previously distributed
  to such Member. It is the intent of the Members that no Distribution to any
  Member pursuant to Article IV shall be deemed a return of money or other
  property paid or distributed in violation of 

  

 

	
  

  	
  31 DRAFT
  10-14-2014#86439994v1 the Delaware Act. The payment of any such money or
  Distribution of any such property to a Member shall be deemed to be a
  compromise within the meaning of Section 18-502(b) of the Act, and, to the
  fullest extent permitted by Law, any Member receiving any such money or
  property shall not be required to return any such money or property to the
  Company or any other Person. However, if any court of competent jurisdiction
  holds that, notwithstanding the provisions of this Agreement, any Member is
  obligated to make any such payment, such obligation shall be the obligation
  of such Member and not of any other Member. (c) Notwithstanding any other
  provision of this Agreement, to the extent that, at law or in equity, any
  Member (or any Member’s Affiliate or any manager, managing member, general
  partner, director, officer, employee, agent, fiduciary or trustee of any
  Member or of any Affiliate of a Member) has duties (including fiduciary
  duties) to the Company, to the Manager, to another Member, to any Person who
  acquires an interest in a Company Interest or to any other Person bound by
  this Agreement, all such duties (including fiduciary duties) are hereby
  eliminated, to the fullest extent permitted by law, and replaced with the
  duties or standards expressly set forth herein, if any. The elimination of
  duties (including fiduciary duties) to the Company, the Manager, each of the
  Members, each other Person who acquires an interest in a Company Interest and
  each other Person bound by this Agreement and replacement thereof with the
  duties or standards expressly set forth herein, if any, are approved by the
  Company, the Manager, each of the Members, each other Person who acquires an
  interest in a Company Interest and each other Person bound by this Agreement.
  Section 7.02 Lack of Authority. No Member, other than the Manager or a duly
  appointed Officer, in each case in its capacity as such, has the authority or
  power to act for or on behalf of the Company, to do any act that would be
  binding on the Company or to make any expenditure on behalf of the Company.
  The Members hereby consent to the exercise by the Manager of the powers
  conferred on them by Law and this Agreement. Section 7.03 No Right of
  Partition. No Member, other than the Manager, shall have the right to seek or
  obtain partition by court decree or operation of Law of any Company property,
  or the right to own or use particular or individual assets of the Company.
  Section 7.04 Indemnification. (a) Subject to Section 5.06, the Company hereby
  agrees to indemnify and hold harmless any Person (each an “Indemnified
  Person”) to the fullest extent permitted under the Delaware Act, as the same
  now exists or may hereafter be amended, substituted or replaced (but, in the
  case of any such amendment, substitution or replacement only to the extent
  that such amendment, substitution or replacement permits the Company to
  provide broader indemnification rights than the Company is providing
  immediately prior to such amendment), against all expenses, liabilities and
  losses (including attorneys’ fees, judgments, fines, excise taxes or
  penalties) reasonably incurred or suffered by such Person (or one or more of such
  Person’s Affiliates) by reason of the fact that such Person is or was a
  Member or is or was serving as the Manager, Officer, employee or other agent
  of the Company or is or was serving at the request of the Company as a
  manager, officer, director, principal, member, employee or agent of another
  corporation, partnership, joint venture, limited liability company, trust or
  other enterprise; provided, however, that no Indemnified Person shall be
  indemnified for any expenses, 

  

 

	
  

  	
  32 DRAFT
  10-14-2014#86439994v1 liabilities and losses suffered that are attributable
  to such Indemnified Person’s or its Affiliates’ gross negligence, willful
  misconduct or knowing violation of Law or for any present or future breaches
  of any representations, warranties or covenants by such Indemnified Person or
  its Affiliates contained herein or in the other agreements with the Company.
  Expenses, including attorneys’ fees, incurred by any such Indemnified Person
  in defending a proceeding shall be paid by the Company in advance of the
  final disposition of such proceeding, including any appeal therefrom, upon
  receipt of an undertaking by or on behalf of such Indemnified Person to repay
  such amount if it shall ultimately be determined that such Indemnified Person
  is not entitled to be indemnified by the Company. (b) The right to
  indemnification and the advancement of expenses conferred in this Section
  7.04 shall not be exclusive of any other right which any Person may have or
  hereafter acquire under any statute, agreement, by-law, action by the Manager
  or otherwise. (c) The Company shall maintain directors’ and officers’
  liability insurance, or substantially equivalent insurance, at its expense,
  to protect any Indemnified Person (and the investment funds, if any, they
  represent) against any expense, liability or loss described in Section
  7.04(a) whether or not the Company would have the power to indemnify such
  Indemnified Person against such expense, liability or loss under the
  provisions of this Section 7.04. The Company shall use its commercially
  reasonable efforts to purchase and maintain property, casualty and liability
  insurance in types and at levels customary for companies of similar size
  engaged in similar lines of business, as determined in good faith by the
  Manager, and the Company shall use its commercially reasonable efforts to
  purchase directors’ and officers’ liability insurance (including employment
  practices coverage) with a carrier and in an amount determined necessary or
  desirable as determined in good faith by the Manager. (d) Notwithstanding
  anything contained herein to the contrary (including in this Section 7.04),
  any indemnity by the Company relating to the matters covered in this Section
  7.04 shall be provided out of and to the extent of Company assets only and no
  Member (unless such Member otherwise agrees in writing or is found in a final
  decision by a court of competent jurisdiction to have personal liability on
  account thereof) shall have personal liability on account thereof or shall be
  required to make additional Capital Contributions to help satisfy such
  indemnity of the Company. (e) If this Section 7.04 or any portion hereof
  shall be invalidated on any ground by any court of competent jurisdiction,
  then the Company shall nevertheless indemnify and hold harmless each
  Indemnified Person pursuant to this Section 7.04 to the fullest extent
  permitted by any applicable portion of this Section 7.04 that shall not have
  been invalidated and to the fullest extent permitted by applicable Law.
  Section 7.05 Members Right to Act. For matters that require the approval of
  the Members, the Members shall act through meetings and written consents as
  described in paragraphs (a) and (b) below: (a) Except as otherwise expressly
  provided by this Agreement, acts by the Members holding a majority of the
  Units, voting together as a single class, shall be the acts of the Members.
  Any Member entitled to vote at a meeting of Members or to express consent or 

  

 

	
  

  	
  33 DRAFT
  10-14-2014#86439994v1 dissent to Company action in writing without a meeting
  may authorize another person or persons to act for it by proxy. An electronic
  mail, telegram, telex, cablegram or similar transmission by the Member, or a
  photographic, photostatic, facsimile or similar reproduction of a writing
  executed by the Member shall (if stated thereon) be treated as a proxy
  executed in writing for purposes of this Section 7.05(a). No proxy shall be
  voted or acted upon after eleven months from the date thereof, unless the
  proxy provides for a longer period. A proxy shall be revocable unless the
  proxy form conspicuously states that the proxy is irrevocable and that the
  proxy is coupled with an interest. Should a proxy designate two or more
  Persons to act as proxies, unless that instrument shall provide to the
  contrary, a majority of such Persons present at any meeting at which their
  powers thereunder are to be exercised shall have and may exercise all the
  powers of voting or giving consents thereby conferred, or, if only one be
  present, then such powers may be exercised by that one; or, if an even number
  attend and a majority do not agree on any particular issue, the Company shall
  not be required to recognize such proxy with respect to such issue if such
  proxy does not specify how the votes that are the subject of such proxy are to
  be voted with respect to such issue. (b) The actions by the Members permitted
  hereunder may be taken at a meeting called by the Manager or by the Members
  holding a majority of the Units entitled to vote on such matter on at least
  [48 hours’] prior written notice to the other Members entitled to vote, which
  notice shall state the purpose or purposes for which such meeting is being
  called. The actions taken by the Members entitled to vote or consent at any
  meeting (as opposed to by written consent), however called and noticed, shall
  be as valid as though taken at a meeting duly held after regular call and
  notice if (but not until), either before, at or after the meeting, the
  Members entitled to vote or consent as to whom it was improperly held signs a
  written waiver of notice or a consent to the holding of such meeting or an
  approval of the minutes thereof. The actions by the Members entitled to vote
  or consent may be taken by vote of the Members entitled to vote or consent at
  a meeting or by written consent, so long as such consent is signed by Members
  having not less than the minimum number of Units 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 the action so taken,
  which shall state the purpose or purposes for which such consent is required
  and may be delivered via email, without a meeting shall be given to those
  Members entitled to vote or consent who have not consented in writing;
  provided, however, that the failure to give any such notice shall not affect
  the validity of the action taken by such written consent. Any action taken
  pursuant to such written consent of the Members shall have the same force and
  effect as if taken by the Members at a meeting thereof. Section 7.06
  Inspection Rights. The Company shall permit each Member and each of its
  designated representatives to (i) visit and inspect any of the properties of
  the Company and its Subsidiaries, all at reasonable times and upon reasonable
  notice, (ii) examine the corporate and financial records of the Company or
  any of its Subsidiaries and make copies thereof or extracts therefrom, (iii)
  consult with the managers, officers, employees and independent accountants of
  the Company or any of its Subsidiaries concerning the affairs, finances and
  accounts of the Company or any of its Subsidiaries. The presentation of an
  executed copy of this Agreement by any Member to the Company’s independent
  accountants shall constitute the Company’s permission to its independent
  accountants to participate in discussions with such Persons and their
  respective designated representatives. 

  

 

	
  

  	
  34 DRAFT
  10-14-2014#86439994v1 ARTICLE VIII. BOOKS, RECORDS, ACCOUNTING AND REPORTS,
  AFFIRMATIVE COVENANTS Section 8.01 Records and Accounting. The Company shall
  keep, or cause to be kept, appropriate books and records with respect to the
  Company’s business, including all books and records necessary to provide any
  information, lists and copies of documents required to be provided pursuant
  to Section 8.03 or pursuant to applicable Laws. All matters concerning (a)
  the determination of the relative amount of allocations and Distributions
  among the Members pursuant to Articles III and IV and (b) accounting
  procedures and determinations, and other determinations not specifically and
  expressly provided for by the terms of this Agreement, shall be determined by
  the Manager, whose determination shall be final and conclusive as to all of
  the Members absent manifest clerical error. Section 8.02 Fiscal Year. The
  Fiscal Year of the Company shall end on December 31 of each year or such
  other date as may be established by the Manager. Section 8.03 Reports. The
  Company shall deliver or cause to be delivered, within 90 days after the end
  of each Fiscal Year, to each Person who was a Member at any time during such
  Fiscal Year, all information reasonably necessary for the preparation of such
  Person’s United States federal and applicable state income tax returns.
  ARTICLE IX. TAX MATTERS Section 9.01 Preparation of Tax Returns. The Company
  shall arrange for the preparation and timely filing of all tax returns
  required to be filed by the Company. On or before March 15, June 15,
  September 15, and December 15 of each Fiscal Year, the Company shall send to
  each Person who was a Member at any time during the prior quarter, an
  estimate of such Member’s state tax apportionment information and allocations
  to the Members of taxable income, gains, losses, deductions and credits for
  the prior quarter, which estimate shall have been reviewed by the Company’s
  outside tax accountants. In addition, no later than the later of (i) March 15
  following the end of the prior Fiscal Year, and (ii) five (5) Business Days
  after the issuance of the final audit report for a Fiscal Year by the
  Company’s auditors, the Company shall send to each Person who was a Member at
  any time during such Fiscal Year, a statement showing such Member’s final
  state tax apportionment information and allocations to the Members of taxable
  income, gains, losses, deductions and credits for such Fiscal Year and a
  completed IRS Schedule K-1. Each Member shall notify the other Members upon
  receipt of any notice of tax examination of the Company by federal, state or
  local authorities. Subject to the terms and conditions of this Agreement, in
  its capacity as Tax Matters Partner, the Corporation shall have the authority
  to prepare the tax returns of the Company using such permissible methods and
  elections as it determines in its reasonable discretion, including without
  limitation the use of any permissible method under Section 706 of the Code
  for purposes of determining the varying Company Interests of its Members.
  Section 9.02 Tax Elections. The Taxable Year shall be the Fiscal Year set
  forth in Section 8.02. The Company shall make an election pursuant to Section
  754 of the Code, shall not thereafter revoke such election and shall make a
  new election pursuant to Section 754 to the 

  

 

	
  

  	
  35 DRAFT
  10-14-2014#86439994v1 extent necessary following any “termination” of the
  Company under Section 708 of the Code. Each Member will upon request supply
  any information reasonably necessary to give proper effect to any such
  elections. Section 9.03 Tax Controversies. The Corporation is hereby
  designated the Tax Matters Partner within the meaning given to such term in
  Section 6231 of the Code (the Corporation, in such capacity, the “Tax Matters
  Partner”) and is authorized and required to represent the Company (at the
  Company’s expense) in connection with all examinations of the Company’s
  affairs by tax authorities, including resulting administrative and judicial
  proceedings, and to expend Company funds for professional services reasonably
  incurred in connection therewith. Each Member agrees to cooperate with the
  Company and to do or refrain from doing any or all things reasonably
  requested by the Company with respect to the conduct of such proceedings. The
  Tax Matters Partners shall keep all Members fully informed of the progress of
  any examinations, audits or other proceedings, and all Members shall have the
  right to participate at their expense in any such examinations, audits or
  other proceedings. Notwithstanding the foregoing, the Tax Matters Partners
  shall not settle or otherwise compromise any issue in any such examination,
  audit or other proceeding without first obtaining approval of the Manager.
  Nothing herein shall diminish, limit or restrict the rights of any Member
  under Subchapter C, Chapter 63, Subtitle F of the Code (Code Sections 6221 et
  seq.). ARTICLE X. RESTRICTIONS ON TRANSFER OF UNITS; PREEMPTIVE RIGHTS
  Section 10.01 Transfers by Members. No holder of Units may Transfer any
  interest in any Units, except Transfers (a) pursuant to and in accordance
  with Section 10.02 or (b) approved in writing by the Manager. Notwithstanding
  the foregoing, “Transfer” shall not include an event that terminates the
  existence of a Member for income tax purposes (including, without limitation,
  a change in entity classification of a Member under Treasury Regulations
  Section 301.7701-3, termination of a partnership pursuant to Code Section
  708(b)(1)(B), a sale of assets by, or liquidation of, a Member pursuant to an
  election under Code Section 338, or merger, severance, or allocation within a
  trust or among sub-trusts of a trust that is a Member), but that does not
  terminate the existence of such Member under applicable state law (or, in the
  case of a trust that is a Member, does not terminate the trusteeship of the
  fiduciaries under such trust with respect to all the Company Interests of
  such trust that is a Member). Section 10.02 Permitted Transfers. The
  restrictions contained in Section 10.01 shall not apply to any Transfer
  (each, a “Permitted Transfer”) pursuant to (i) a Change of Control
  Transaction, (ii) a Transfer by any Member to such Member’s spouse, any
  lineal ascendants or descendants or trusts or other entities in which such
  Member or Member’s spouse, lineal ascendants or descendants hold (and
  continue to hold while such trusts or other entities hold Units) 50% or more
  of such entity’s beneficial interests, (iii) pursuant to the laws of descent
  and distribution and (iv) if such Transfer is made by an Original Member, a
  Transfer to a partner, shareholder or member of such Original Member;
  provided, however, that (A) the restrictions contained in this Agreement will
  continue to apply to Units after any Permitted Transfer of such Units, and
  (B) in the case of the foregoing clauses (ii), (iii) and (iv), the
  transferees of the Units so Transferred shall agree in writing to be bound by
  the provisions of this Agreement and, the transferor will deliver a written
  notice to the Company and the Members, which notice will 

  

 

	
  

  	
  36 DRAFT
  10-14-2014#86439994v1 disclose in reasonable detail the identity of the
  proposed transferee. In the case of a Permitted Transfer by any Original
  Member of Common Units to a transferee in accordance with this Section 10.02,
  such Original Member (or any subsequent transferee of such Original Member)
  shall be required to also transfer the fraction of its remaining Class B Common
  Stock ownership corresponding to the proportion of such Original Member’s (or
  subsequent transferee’s) Common Units that were transferred in the
  transaction to such transferee. All Permitted Transfers are subject to the
  additional limitations set forth in Section 10.07(b). Section 10.03
  Restricted Units Legend. The Units have not been registered under the
  Securities Act and, therefore, in addition to the other restrictions on
  Transfer contained in this Agreement, cannot be sold unless subsequently registered
  under the Securities Act or an exemption from such registration is then
  available. To the extent such Units have been certificated, each certificate
  evidencing Units and each certificate issued in exchange for or upon the
  Transfer of any Units (if such securities remain Units as defined herein
  after such Transfer) shall be stamped or otherwise imprinted with a legend in
  substantially the following form: “THE SECURITIES REPRESENTED BY THIS
  CERTIFICATE WERE ORIGINALLY ISSUED ON [.], 2014, AND HAVE NOT BEEN REGISTERED
  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD
  OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER
  THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER. THE SECURITIES
  REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS
  ON TRANSFER SPECIFIED IN THE SECOND AMENDED AND RESTATED LIMITED LIABILITY
  COMPANY AGREEMENT OF NEFF HOLDINGS LLC, AS MAY BE AMENDED AND MODIFIED FROM
  TIME TO TIME, AND NEFF HOLDINGS LLC RESERVES THE RIGHT TO REFUSE THE TRANSFER
  OF SUCH SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH RESPECT TO
  ANY TRANSFER. A COPY OF SUCH CONDITIONS SHALL BE FURNISHED BY NEFF HOLDINGS
  LLC TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE.” The
  Company shall imprint such legend on certificates (if any) evidencing Units.
  The legend set forth above shall be removed from the certificates (if any)
  evidencing any units which cease to be Units in accordance with the
  definition thereof. Section 10.04 Transfer. Prior to Transferring any Units
  (other than pursuant to a Change of Control Transaction), the Transferring
  Holder of Units shall cause the prospective Transferee to be bound by this
  Agreement and any other agreements executed by the holders of Units and
  relating to such Units in the aggregate (collectively, the “Other
  Agreements”), and shall cause the prospective Transferee to execute and
  deliver to the Company and the other holders of Units counterparts of this
  Agreement and any applicable Other Agreements. Any Transfer or attempted
  Transfer of any Units in violation of any provision of this Agreement
  (including any prohibited indirect Transfers) (a) shall be void, and (b) the
  Company shall not record such Transfer on its books or treat any purported
  Transferee of such Units as the owner of such securities for any purpose. 

  

 

	
  

  	
  37 DRAFT
  10-14-2014#86439994v1 Section 10.05 Assignee’s Rights. (a) The Transfer of a
  Company Interest in accordance with this Agreement shall be effective as of
  the date of its assignment (assuming compliance with all of the conditions to
  such Transfer set forth herein), and such Transfer shall be shown on the
  books and records of the Company. Profits, Losses and other Company items
  shall be allocated between the transferor and the Assignee according to Code
  Section 706, using any permissible method as determined in the reasonable
  discretion of the Manager. Distributions made before the effective date of
  such Transfer shall be paid to the transferor, and Distributions made after
  such date shall be paid to the Assignee. (b) Unless and until an Assignee
  becomes a Member pursuant to Article XII, the Assignee shall not be entitled
  to any of the rights granted to a Member hereunder or under applicable Law,
  other than the rights granted specifically to Assignees pursuant to this
  Agreement; provided, however, that, without relieving the transferring Member
  from any such limitations or obligations as more fully described in Section
  10.06, such Assignee shall be bound by any limitations and obligations of a
  Member contained herein that a Member would be bound on account of the
  Assignee’s Company Interest (including the obligation to make Capital
  Contributions on account of such Company Interest). Section 10.06 Assignor’s
  Rights and Obligations. Any Member who shall Transfer any Company Interest in
  a manner in accordance with this Agreement shall cease to be a Member with
  respect to such Units or other interest and shall no longer have any rights
  or privileges, or, except as set forth in this Section 10.06, duties,
  liabilities or obligations, of a Member with respect to such Units or other
  interest (it being understood, however, that the applicable provisions of
  Sections 6.09 and 7.04 shall continue to inure to such Person’s benefit), except
  that unless and until the Assignee (if not already a Member) is admitted as a
  Substituted Member in accordance with the provisions of Article XII (the
  “Admission Date”), (i) such assigning Member shall retain all of the duties,
  liabilities and obligations of a Member with respect to such Units or other
  interest, and (ii) the Manager may, in its sole discretion, reinstate all or
  any portion of the rights and privileges of such Member with respect to such
  Units or other interest for any period of time prior to the Admission Date.
  Nothing contained herein shall relieve any Member who Transfers any Units or
  other interest in the Company from any liability of such Member to the
  Company with respect to such Company Interest that may exist on the Admission
  Date or that is otherwise specified in the Delaware Act and incorporated into
  this Agreement or for any liability to the Company or any other Person for
  any materially false statement made by such Member (in its capacity as such)
  or for any present or future breaches of any representations, warranties or
  covenants by such Member (in its capacity as such) contained herein or in the
  other agreements with the Company. Section 10.07 Overriding Provisions. (a)
  Any Transfer in violation of this Article X shall be null and void ab initio,
  and the provisions of Sections 10.05 and 10.06 shall not apply to any such
  Transfers. For the avoidance of doubt, any Person to whom a Transfer is made
  or attempted in violation of this Article X shall not become a Member, shall
  not be entitled to vote on any matters coming before the Members and shall
  not have any other rights in or with respect to any rights of a Member of the
  Company. 

  

 

	
  

  	
  38 DRAFT
  10-14-2014#86439994v1 The approval of any Transfer in any one or more
  instances shall not limit or waive the requirement for such approval in any
  other or future instance. The Manager shall promptly amend the Schedule of
  Members to reflect any Permitted Transfer pursuant to this Article X. (b)
  Notwithstanding anything contained herein to the contrary (including, for the
  avoidance of doubt, the provisions of Section 10.01 and Article XI and
  Article XII), in no event shall any Member Transfer any Units to the extent
  such Transfer would: (i) result in the violation of the Securities Act, or any
  other applicable federal, state or foreign Laws; (ii) cause an assignment
  under the Investment Company Act; (iii) in the reasonable determination of
  the Manager, be a violation of or a default (or an event that, with notice or
  the lapse of time or both, would constitute a default) under, or result in an
  acceleration of any indebtedness under, any promissory note, mortgage, loan
  agreement, indenture or similar instrument or agreement to which the Company
  or the Manager is a party; provided that (x) the payee or creditor to whom
  the Company or the Manager owes such obligation is not an affiliate of the
  Company or the Manager and (y) such indebtedness, individually or in the
  aggregate, has an aggregate principal amount then outstanding that is greater
  than $25,000,000; (iv) cause the Company to lose its status as a partnership
  for federal income tax purposes and, without limiting the generality of the
  foregoing, such Transfer was effected on or through an “established
  securities market” or a “secondary market or the substantial equivalent
  thereof,” as such terms are used in Section 1.7704-1 of the Treasury
  Regulations; (v) be a Transfer to a Person who is not legally competent or
  who has not achieved his or her majority under applicable Law (excluding
  trusts for the benefit of minors); (vi) cause the Company to be treated as a
  “publicly traded partnership” or to be taxed as a corporation pursuant to
  Section 7704 of the Code or successor provision of the Code; or (vii) result
  in the Company having more than one hundred (100) partners, within the
  meaning of Treasury Regulations Section 1.7704-1(h)(1) (determined pursuant
  to the rules of Treasury Regulations Section 1.7704-1(h)(3)). ARTICLE XI.
  REDEMPTION AND EXCHANGE RIGHTS Section 11.01 Redemption Right of a Member and
  LLC Optionee. (a) Each Member (other than the Corporation) and each LLC
  Optionee (in connection with its exercise of an LLC Option) shall be entitled
  to cause the Company to redeem (a “Redemption”) its Common Units (the
  “Redemption Right”) at any time following the 

  

 

	
  

  	
  39 DRAFT
  10-14-2014#86439994v1 expiration of the lock-up period under the lock-up
  agreements, dated as of [.], 2014, executed by each Original Member and each
  Original LLC Optionee. A Member or LLC Optionee desiring to exercise its Redemption
  Right (the “Redeeming Member”) shall exercise such right by giving written
  notice (the “Redemption Notice”) to the Company with a copy to the
  Corporation. The Redemption Notice shall specify the number of Common Units
  (the “Redeemed Units”) that the Redeeming Member intends to have the Company
  redeem and a date, not less than seven (7) Business Days nor more than ten
  (10) Business Days after delivery of the Redemption Notice (unless and to the
  extent that the Manager in its sole discretion agrees in writing to waive
  such time periods), on which exercise of the Redemption Right shall be
  completed (the “Redemption Date”); provided that the Company, the Corporation
  and the Redeeming Member may change the number of Redeemed Units and/or the
  Redemption Date specified in the Redemption Notice to another number and/or
  date by mutual agreement signed in writing by each of them; provided further
  that a Redemption Notice may be conditioned on the closing of an underwritten
  distribution of the shares of Class A Common Stock that may be issued at the
  election of the Corporation in connection with such proposed Redemption.
  Unless the Redeeming Member timely has delivered a Retraction Notice as
  provided in Section 11.01(b) or has revoked or delayed a Redemption as provided
  in Section 11.01(c), on the Redemption Date (to be effective immediately
  prior to the close of business on the Redemption Date) (i) only in the case
  of an LLC Optionee, the Redeeming Member shall have completed its exercised
  of an LLC Option for a corresponding number of Units subject to the
  Redemption Notice, (ii) the Redeeming Member shall transfer and surrender the
  Redeemed Units to the Company, free and clear of all liens and encumbrances
  (which in the case of an LLC Optionee will be deemed to be delivered by the
  Company in lieu of delivery of the Units underlying the LLC Option to the LLC
  Optionee), and (ii) the Company shall (x) cancel the Redeemed Units, (y)
  transfer to the Redeeming Member the consideration to which the Redeeming
  Member is entitled under Section 11.01(b), and (z), if the Units are
  certificated, issue to the Redeeming Member a certificate for a number of
  Common Units equal to the difference (if any) between the number of Common
  Units evidenced by the certificate surrendered by the Redeeming Member
  pursuant to clause (i) of this Section 11.01(a) and the Redeemed Units. (b)
  In exercising its Redemption Right, a Redeeming Member shall be entitled to
  receive the Share Settlement or the Cash Settlement; provided that the
  Corporation shall have the option as provided in Section 11.02 and subject to
  Section 11.01(d) to select whether the redemption payment is made by means of
  a Share Settlement or a Cash Settlement. Within three (3) Business Days of
  delivery of the Redemption Notice, the Corporation shall give written notice
  (the “Contribution Notice”) to the Company (with a copy to the Redeeming
  Member) of its intended settlement method; provided that if the Corporation
  does not timely deliver a Contribution Notice, the Corporation shall be
  deemed to have elected the Share Settlement method. If the Corporation elects
  the Cash Settlement method, the Redeeming Member may retract its Redemption
  Notice by giving written notice (the “Retraction Notice”) to the Company
  (with a copy to the Corporation) within two (2) Business Days of delivery of
  the Contribution Notice. The timely delivery of a Retraction Notice shall
  terminate all of the Redeeming Member’s, Company’s and the Corporation’
  rights and obligations under this Section 11.01 arising from the Redemption
  Notice. (c) In the event the Corporation elects a Share Settlement in
  connection with a Redemption, a Redeeming Member shall be entitled to revoke
  its Redemption Notice or delay 

  

 

	
  

  	
  40 DRAFT
  10-14-2014#86439994v1 the consummation of a Redemption if any of the
  following conditions exists: (i) any registration statement pursuant to which
  the resale of the Class A Common Stock to be registered for such Redeeming
  Member at or immediately following the consummation of the Redemption shall have
  ceased to be effective pursuant to any action or inaction by the SEC or no
  such resale registration statement has yet become effective; (ii) the
  Corporation shall have failed to cause any related prospectus to be
  supplemented by any required prospectus supplement necessary to effect such
  Redemption; (iii) the Corporation shall have exercised its right to defer,
  delay or suspend the filing or effectiveness of a registration statement and
  such deferral, delay or suspension shall affect the ability of such Redeeming
  Member to have its Class A Common Stock registered at or immediately
  following the consummation of the Redemption; (iv) the Corporation shall have
  disclosed to such Redeeming Member any material non-public information
  concerning the Corporation, the receipt of which results in such Redeeming
  Member being prohibited or restricted from selling Class A Common Stock at or
  immediately following the Redemption without disclosure of such information
  (and the Corporation does not permit disclosure); (v) any stop order relating
  to the registration statement pursuant to which the Class A Common Stock was
  to be registered by such Redeeming Member at or immediately following the
  Redemption shall have been issued by the SEC; (vi) there shall have occurred
  a material disruption in the securities markets generally or in the market or
  markets in which the Class A Common Stock is then traded; (vii) there shall
  be in effect an injunction, a restraining order or a decree of any nature of
  any Governmental Entity that restrains or prohibits the Redemption; (viii)
  the Corporation shall have failed to comply in all material respects with its
  obligations under the Registration Rights Agreement, and such failure shall
  have affected the ability of such Redeeming Member to consummate the resale
  of Class A Common Stock to be received upon such redemption pursuant to an
  effective registration statement; (ix) the Redemption Date would occur [three
  (3)] Business Days or less prior to, or during, a Black-Out Period; provided
  further, that in no event shall the Redeeming Member seeking to revoke its
  Redemption Notice or delay the consummation of such Redemption and relying on
  any of the matters contemplated in clauses (i) through (ix) above have
  controlled or intentionally influenced any facts, circumstances, or Persons
  in connection therewith (except in the good faith performance of his or her
  duties as an officer or director of the Corporation) in order to provide such
  Redeeming Member with a basis for such delay or revocation. If a Redeeming
  Member delays the consummation of a Redemption pursuant to this Section
  11.01(c), the Redemption Date shall occur on the fifth Business Day following
  the date on which the conditions giving rise to such delay cease to exist (or
  such earlier day as the Corporation, the Company and such Redeeming Member
  may agree in writing). (d) The number of shares of Class A Common Stock or
  the Redeemed Units Equivalent that a Redeeming Member is entitled to receive
  under Section 11.01(b) (whether through a Share Settlement or Cash
  Settlement) shall not be adjusted on account of any Distributions previously
  made with respect to the Redeemed Units or dividends previously paid with
  respect to Class A Common Stock; provided, however, that if a Redeeming
  Member (other than an LLC Optionee) causes the Company to redeem Redeemed
  Units and the Redemption Date occurs subsequent to the record date for any
  Distribution with respect to the Redeemed Units but prior to payment of such
  Distribution, the Redeeming Member shall be entitled to receive such
  Distribution with respect to the Redeemed Units on the date that it is made
  notwithstanding that the Redeeming Member transferred and surrendered the
  Redeemed Units to the Company prior to such date. 

  

 

	
  

  	
  41 DRAFT
  10-14-2014#86439994v1 (e) In the event of a reclassification or other similar
  transaction as a result of which the shares of Class A Common Stock are
  converted into another security, then in exercising it Redemption Right a
  Redeeming Member shall be entitled to receive the amount of such security
  that the Redeeming Member would have received if such Redemption Right had
  been exercised and the Redemption Date had occurred immediately prior to the
  record date of such reclassification or other similar transaction. Section 11.02
  Election and Contribution of the Corporation. In connection with the exercise
  of a Redeeming Member’s Redemption Rights under Section 11.01(a), the
  Corporation shall contribute to the Company the consideration the Redeeming
  Member is entitled to receive under Section 11.01(b). The Corporation, at its
  option, shall determine whether to contribute, pursuant to Section 11.01(b),
  the Share Settlement or the Cash Settlement. Unless the Redeeming Member has
  timely delivered a Retraction Notice as provided in Section 11.01(b), or has
  revoked or delayed a Redemption as provided in Section 11.01(c), on the
  Redemption Date (to be effective immediately prior to the close of business
  on the Redemption Date) (i) the Corporation shall make its Capital
  Contribution to the Company (in the form of the Share Settlement or the Cash
  Settlement) required under this Section 11.02, and (ii) the Company shall
  issue to the Corporation a number of Common Units equal to the number of
  Redeemed Units surrendered by the Redeeming Member. Notwithstanding any other
  provisions of this Agreement to the contrary, in the event that the
  Corporation elects a Cash Settlement, the Corporation shall only be obligated
  to contribute to the Company an amount in respect of such Cash Settlement
  equal to the net proceeds (after deduction of any underwriters’ discounts or
  commissions and brokers’ fees or commissions) from the sale by the
  Corporation of a number of shares of Class A Common Stock equal to the number
  of Redeemed Units to be redeemed with such Cash Settlement provided that the
  Corporation’s Capital Account shall be increased by an amount equal to any
  Discount relating to such sale of shares of Class A Common Stock in
  accordance with Section 6.07. The timely delivery of a Retraction Notice shall
  terminate all of the Company’s and the Corporation’ rights and obligations
  under this Section 11.02 arising from the Redemption Notice. Section 11.03
  Exchange Right of the Corporation. (a) Notwithstanding anything to the
  contrary in this Article XI, the Corporation may, in its sole and absolute
  discretion, elect to effect on the Redemption Date the exchange of Redeemed
  Units for the Share Settlement or Cash Settlement, as the case may be,
  through a direct exchange of such Redeemed Units and such consideration
  between the Redeeming Member and the Corporation (a “Direct Exchange”). Upon
  such Direct Exchange pursuant to this Section 11.03, the Corporation shall
  acquire the Redeemed Units and shall be treated for all purposes of this
  Agreement as the owner of such Units. (b) The Corporation may, at any time
  prior to a Redemption Date, deliver written notice (an “Exchange Election
  Notice”) to the Company and the Redeeming Member setting forth its election
  to exercise its right to consummate a Direct Exchange; provided that such
  election does not prejudice the ability of the parties to consummate a
  Redemption or Direct Exchange on the Redemption Date. An Exchange Election
  Notice may be revoked by the Corporation at any time; provided that any such
  revocation does not prejudice the ability of the parties to consummate a
  Redemption or Direct Exchange on the Redemption Date. The right to 

  

 

	
  

  	
  42 DRAFT
  10-14-2014#86439994v1 consummate a Direct Exchange in all events shall be
  exercisable for all the Redeemed Units that would have otherwise been subject
  to a Redemption. Except as otherwise provided by this Section 11.03, a Direct
  Exchange shall be consummated pursuant to the same timeframe and in the same
  manner as the relevant Redemption would have been consummated if the
  Corporation had not delivered an Exchange Election Notice. Section 11.04
  Reservation of shares of Class A Common Stock; Listing; Certificate of the
  Corporation. At all times the Corporation shall reserve and keep available
  out of its authorized but unissued Class A Common Stock, solely for the
  purpose of issuance upon a Redemption or Direct Exchange, such number of
  shares of Class A Common Stock as shall be issuable upon any such Redemption
  or Direct Exchange pursuant to Share Settlements; provided that nothing
  contained herein shall be construed to preclude the Corporation from
  satisfying its obligations in respect of any such Redemption or Direct
  Exchange by delivery of purchased Class A Common Stock (which may or may not
  be held in the treasury of the Corporation) or the delivery of cash pursuant
  to a Cash Settlement. The Corporation shall deliver Class A Common Stock that
  has been registered under the Securities Act with respect to any Redemption
  or Direct Exchange to the extent a registration statement is effective and
  available for such shares. The Corporation shall use its commercially
  reasonable efforts to list the Class A Common Stock required to be delivered
  upon any such Redemption or Direct Exchange prior to such delivery upon each
  national securities exchange upon which the outstanding shares of Class A
  Common Stock are listed at the time of such Redemption or Direct Exchange (it
  being understood that any such shares may be subject to transfer restrictions
  under applicable securities Laws). The Corporation covenants that all Class A
  Common Stock issued upon a Redemption or Direct Exchange will, upon issuance,
  be validly issued, fully paid and non-assessable. The provisions of this
  Article XI shall be interpreted and applied in a manner consistent with the
  corresponding provisions of the Corporation’s certificate of incorporation.
  Section 11.05 Effect of Exercise of Redemption or Exchange Right. This
  Agreement shall continue notwithstanding the consummation of a Redemption or
  Direct Exchange and all governance or other rights set forth herein shall be
  exercised by the remaining Members, LLC Optionees (to the extent of such LLC
  Optionee’s rights to exercise LLC Options and the related Redemption Right)
  and the Redeeming Member (to the extent of such Redeeming Member’s remaining
  interest in the Company). No Redemption or Direct Exchange shall relieve such
  Redeeming Member of any prior breach of this Agreement. Section 11.06 Tax
  Treatment. Unless otherwise required by applicable Law, the parties hereto
  acknowledge and agree a Redemption or a Direct Exchange, as the case may be,
  shall be treated as a direct exchange between the Corporation and the
  Redeeming Member for U.S. federal and applicable state and local income tax
  purposes. ARTICLE XII. ADMISSION OF MEMBERS Section 12.01 Substituted
  Members. Subject to the provisions of Article X hereof, in connection with
  the Permitted Transfer of a Company Interest hereunder, the transferee shall
  become a substituted Member (“Substituted Member”) on the effective date of
  such Transfer, 

  

 

	
  

  	
  43 DRAFT
  10-14-2014#86439994v1 which effective date shall not be earlier than the date
  of compliance with the conditions to such Transfer, and such admission shall
  be shown on the books and records of the Company. Section 12.02 Additional
  Members. Each LLC Optionee upon exercise of an LLC Option (to the extent such
  LLC Optionee does not simultaneously exercise its Redemption Right with
  respect thereto under Article XI) and, subject to the provisions of Article X
  hereof, any other Person may be admitted to the Company as an additional
  Member (any such LLC Optionee or other Person, an “Additional Member”) only
  upon furnishing to the Manager (a) counterparts of this Agreement and any
  applicable Other Agreements and (b) such other documents or instruments as
  may be reasonably necessary or appropriate to effect such Person’s admission
  as a Member (including entering into such documents as the Manager may deem
  appropriate in its sole discretion). Such admission shall become effective on
  the date on which the Manager determines in its sole discretion that such
  conditions have been satisfied and when any such admission is shown on the
  books and records of the Company. ARTICLE XIII. WITHDRAWAL AND RESIGNATION;
  TERMINATION OF RIGHTS Section 13.01 Withdrawal and Resignation of Members. No
  Member shall have the power or right to withdraw or otherwise resign as a
  Member from the Company prior to the dissolution and winding up of the
  Company pursuant to this Article XIII. Any Member, however, that attempts to
  withdraw or otherwise resign as a Member from the Company without the prior
  written consent of the Manager upon or following the dissolution and winding
  up of the Company pursuant to this Article XIII, but prior to such Member
  receiving the full amount of Distributions from the Company to which such
  Member is entitled pursuant to this Article XIII, shall be liable to the
  Company for all damages (including all lost profits and special, indirect and
  consequential damages) directly or indirectly caused by the withdrawal or
  resignation of such Member. Upon a Transfer of all of a Member’s Units in a
  Transfer permitted by this Agreement, subject to the provisions of Section
  10.06, such Member shall cease to be a Member. Section 13.02 Termination of
  Rights of LLC Optionees. With respect to each LLC Optionee, all rights of
  such Person to exercise a Redemption Right hereunder pursuant to Article XI
  or to become a Member hereunder pursuant to Article XII, and all other rights
  afforded such Person hereunder in his or her capacity as an LLC Optionee,
  shall automatically terminate upon the expiration or other termination
  (whether as a result of exercise in full, forfeiture, death, disability,
  termination of employment or otherwise) of all LLC Options awarded by the
  Company to such Person (except to the extent the Company substantially
  simultaneously novates or reissues an LLC Option to such Person or his or her
  heirs), and upon such expiration or termination such Person shall cease to be
  an LLC Optionee hereunder. ARTICLE XIV. DISSOLUTION AND LIQUIDATION Section
  14.01 Dissolution. The Company shall not be dissolved by the admission of
  Additional Members or Substituted Members or the attempted withdrawal or
  resignation of a Member. The Company shall dissolve, and its affairs shall be
  wound up, upon: 

  

 

 

	
  

  	
  44 DRAFT
  10-14-2014#86439994v1 (a) the unanimous decision of the Members that then
  hold Voting Units to dissolve the Company; (b) a Change of Control
  Transaction that is not approved by the Majority Members; (c) a dissolution
  of the Company under Section 18-801(4) of the Delaware Act; or (d) the entry
  of a decree of judicial dissolution of the Company under Section 18-802 of
  the Delaware Act. Except as otherwise set forth in this Article XIV, the
  Company is intended to have perpetual existence. An Event of Withdrawal shall
  not cause a dissolution of the Company and the Company shall continue in
  existence subject to the terms and conditions of this Agreement. Section
  14.02 Liquidation and Termination. On dissolution of the Company, the Manager
  shall act as liquidator or may appoint one or more Persons as liquidator. The
  liquidators shall proceed diligently to wind up the affairs of the Company
  and make final distributions as provided herein and in the Delaware Act. The
  costs of liquidation shall be borne as a Company expense. Until final
  distribution, the liquidators shall continue to operate the Company
  properties with all of the power and authority of the Manager. The steps to
  be accomplished by the liquidators are as follows: (a) as promptly as
  possible after dissolution and again after final liquidation, the liquidators
  shall cause a proper accounting to be made by a recognized firm of certified
  public accountants of the Company’s assets, liabilities and operations
  through the last day of the calendar month in which the dissolution occurs or
  the final liquidation is completed, as applicable; (b) the liquidators shall
  cause the notice described in the Delaware Act to be mailed to each known
  creditor of and claimant against the Company in the manner described
  thereunder; (c) the liquidators shall pay, satisfy or discharge from Company
  funds, or otherwise make adequate provision for payment and discharge thereof
  (including, without limitation, the establishment of a cash fund for
  contingent liabilities in such amount and for such term as the liquidators
  may reasonably determine): first, all expenses incurred in liquidation; and
  second, all of the debts, liabilities and obligations of the Company; and (d)
  all remaining assets of the Company shall be distributed to the Members in
  accordance with Article IV by the end of the Taxable Year during which the
  liquidation of the Company occurs (or, if later, by 90 days after the date of
  the liquidation). The distribution of cash and/or property to the Members in
  accordance with the provisions of this Section 14.02 and Section 14.03 below
  constitutes a complete return to the Members of their Capital Contributions,
  a complete distribution to the Members of their interest in the Company and
  all the Company’s property and constitutes a compromise to which all Members
  have consented within the meaning of the Delaware Act. To the extent that a
  Member returns funds to the Company, it has no claim against any other Member
  for those funds. 

  

 

	
  

  	
  45 DRAFT
  10-14-2014#86439994v1 Section 14.03 Deferment; Distribution in Kind.
  Notwithstanding the provisions of Section 14.02, but subject to the order of
  priorities set forth therein, if upon dissolution of the Company the
  liquidators determine that an immediate sale of part or all of the Company’s
  assets would be impractical or would cause undue loss (or would otherwise not
  be beneficial) to the Members, the liquidators may, in their sole discretion,
  defer for a reasonable time the liquidation of any assets except those
  necessary to satisfy Company liabilities (other than loans to the Company by
  Members) and reserves. Subject to the order of priorities set forth in
  Section 14.02, the liquidators may, in their sole discretion, distribute to
  the Members, in lieu of cash, either (a) all or any portion of such remaining
  Company assets in-kind in accordance with the provisions of Section 14.02(d),
  (b) as tenants in common and in accordance with the provisions of Section
  14.02(d), undivided interests in all or any portion of such Company assets or
  (c) a combination of the foregoing. Any such Distributions in kind shall be
  subject to (a) such conditions relating to the disposition and management of
  such assets as the liquidators deem reasonable and equitable and (b) the
  terms and conditions of any agreements governing such assets (or the
  operation thereof or the holders thereof) at such time. Any Company assets
  distributed in kind will first be written up or down to their Fair Market
  Value, thus creating Profit or Loss (if any), which shall be allocated in
  accordance with Article V. The liquidators shall determine the Fair Market
  Value of any property distributed in accordance with the valuation procedures
  set forth in Article XV. Section 14.04 Cancellation of Certificate. On
  completion of the distribution of Company assets as provided herein, the
  Company is terminated (and the Company shall not be terminated prior to such
  time), and the Manager (or such other Person or Persons as the Delaware Act
  may require or permit) shall file a certificate of cancellation with the
  Secretary of State of Delaware, cancel any other filings made pursuant to
  this Agreement that are or should be canceled and take such other actions as
  may be necessary to terminate the Company. The Company shall be deemed to
  continue in existence for all purposes of this Agreement until it is
  terminated pursuant to this Section 14.04. Section 14.05 Reasonable Time for
  Winding Up. A reasonable time shall be allowed for the orderly winding up of
  the business and affairs of the Company and the liquidation of its assets
  pursuant to Sections 14.02 and 14.03 in order to minimize any losses
  otherwise attendant upon such winding up. Section 14.06 Return of Capital.
  The liquidators shall not be personally liable for the return of Capital
  Contributions or any portion thereof to the Members (it being understood that
  any such return shall be made solely from Company assets). ARTICLE XV.
  VALUATION Section 15.01 Determination. “Fair Market Value” of a specific
  Company asset will mean the amount which the Company would receive in an
  all-cash sale of such asset in an armslength transaction with a willing
  unaffiliated third party, with neither party having any compulsion to buy or
  sell, consummated on the day immediately preceding the date on which the
  event occurred which necessitated the determination of the Fair Market Value
  (and after giving effect to any transfer taxes payable in connection with
  such sale), as such amount is determined 

  

 

	
  

  	
  46 DRAFT
  10-14-2014#86439994v1 by the Manager (or, if pursuant to Section 14.02, the
  liquidators) in its good faith judgment using all factors, information and
  data it deems to be pertinent. Section 15.02 Dispute Resolution. If any
  Member or Members dispute the accuracy of any determination of Fair Market
  Value in accordance with Section 15.01, and the Manager and such Member(s)
  are unable to agree on the determination of the Fair Market Value of any
  asset of the Company, the Manager and such Member(s) shall each select a
  nationally recognized investment banking firm experienced in valuing
  securities of closely-held companies such as the Company in the Company’s
  industry (the “Appraisers”), who shall each determine the Fair Market Value
  of the asset or the Company (as applicable) in accordance with the provisions
  of Section 15.01. The Appraisers shall be instructed to give written notice
  of their determination of the Fair Market Value of the asset or the Company
  (as applicable) within 30 days of their appointment as Appraisers. If Fair
  Market Value as determined by an Appraiser is higher than Fair Market Value
  as determined by the other Appraiser by 10% or more, and the Manager and such
  Member(s) do not otherwise agree on a Fair Market Value, the original
  Appraisers shall designate a third Appraiser meeting the same criteria used
  to select the original two. If Fair Market Value as determined by an
  Appraiser is within 10% of the Fair Market Value as determined by the other
  Appraiser (but not identical), and the Manager and such Member(s) do not
  otherwise agree on a Fair Market Value, the Manager shall select the Fair
  Market Value of one of the Appraisers. The fees and expenses of the
  Appraisers shall be borne by the Company. ARTICLE XVI. GENERAL PROVISIONS
  Section 16.01 Power of Attorney. (a) Each Member who is an individual hereby
  constitutes and appoints the Manager (or the liquidator, if applicable) with
  full power of substitution, as his true and lawful agent and
  attorney-in-fact, with full power and authority in his or its name, place and
  stead, to: (i) execute, swear to, acknowledge, deliver, file and record in
  the appropriate public offices (A) this Agreement, all certificates and other
  instruments and all amendments thereof which the Manager deems appropriate or
  necessary to form, qualify, or continue the qualification of, the Company as
  a limited liability company in the State of Delaware and in all other
  jurisdictions in which the Company may conduct business or own property; (B)
  all instruments which the Manager deems appropriate or necessary to reflect
  any amendment, change, modification or restatement of this Agreement in
  accordance with its terms; (C) all conveyances and other instruments or
  documents which the Manager deems appropriate or necessary to reflect the
  dissolution and liquidation of the Company pursuant to the terms of this
  Agreement, including a certificate of cancellation; and (D) all instruments
  relating to the admission, withdrawal or substitution of any Member pursuant
  to Article XII or XIII; and (ii) sign, execute, swear to and acknowledge all
  ballots, consents, approvals, waivers, certificates and other instruments
  appropriate or necessary, in the reasonable judgment of the Manager, to
  evidence, confirm or ratify any vote, consent, approval, agreement or other
  action which is made or given by the Members hereunder or is 

  

 

	
  

  	
  47 DRAFT
  10-14-2014#86439994v1 consistent with the terms of this Agreement and/or
  appropriate or necessary (and not inconsistent with the terms of this
  Agreement), in the reasonable judgment of the Manager, to effectuate the
  terms of this Agreement. (b) The foregoing power of attorney is irrevocable
  and coupled with an interest, and shall survive the death, disability,
  incapacity, dissolution, bankruptcy, insolvency or termination of any Member
  who is an individual and the transfer of all or any portion of his or its
  Company Interest and shall extend to such Member’s heirs, successors, assigns
  and personal representatives. Section 16.02 Confidentiality. The Manager and
  each of the Members agree to hold the Company’s Confidential Information in
  confidence and may not use such information except in furtherance of the
  business of the Company or as otherwise authorized separately in writing by
  the Manager. “Confidential Information” as used herein includes, but is not
  limited to, ideas, financial product structuring, business strategies,
  innovations and materials, all aspects of the Company’s business plan,
  proposed operation and products, corporate structure, financial and
  organizational information, analyses, proposed partners, software code and
  system and product designs, employees and their identities, equity ownership,
  the methods and means by which the Company plans to conduct its business, all
  trade secrets, trademarks, tradenames and all intellectual property
  associated with the Company’s business. With respect to the Manager and each
  Member, Confidential Information does not include information or material
  that: (a) is rightfully in the possession of the Manager or each Member at
  the time of disclosure by the Company; (b) before or after it has been
  disclosed to the Manager or each Member by the Company, becomes part of
  public knowledge, not as a result of any action or inaction of the Manager or
  such Member, respectively, in violation of this Agreement; (c) is approved
  for release by written authorization of the CEO of the Company or of the
  Corporation; (d) is disclosed to the Manager or such Member or their
  representatives by a third party not, to the knowledge of the Manager or such
  Member, respectively, in violation of any obligation of confidentiality owed
  to the Company with respect to such information; or (e) is or becomes
  independently developed by the Manager or such Member or their respective
  representatives without use or reference to the Confidential Information.
  Section 16.03 Amendments. This Agreement may be amended or modified upon the
  consent of the Majority Members. Notwithstanding the foregoing, no amendment
  or modification to any of the terms and conditions of this Agreement which
  terms and conditions expressly require the approval or action of certain
  Persons may be made without obtaining the consent of the requisite number or
  specified percentage of such Persons who are entitled to approve or take
  action on such matter. In addition, Section 3.01(a), Section 3.02, Section
  3.03(a), Section 3.10, Article XI, Section 12.02 and Section 13.02 may not be
  amended in a manner that is materially adverse to the interests of the LLC
  Optionees without the prior written consent of the LLC Optionees representing
  a majority of the aggregate number of Common Units underlying all LLC Options
  then outstanding. Section 16.04 Title to Company Assets. Company assets shall
  be deemed to be owned by the Company as an entity, and no Member,
  individually or collectively, shall have any ownership interest in such
  Company assets or any portion thereof. The Company shall hold title to all of
  its property in the name of the Company and not in the name of any Member.
  All 

  

 

	
  

  	
  48 DRAFT
  10-14-2014#86439994v1 Company assets shall be recorded as the property of the
  Company on its books and records, irrespective of the name in which legal
  title to such Company assets is held. The Company’s credit and assets shall
  be used solely for the benefit of the Company, and no asset of the Company
  shall be transferred or encumbered for, or in payment of, any individual
  obligation of any Member. Section 16.05 Addresses and Notices. Any notice
  provided for in this Agreement will be in writing and will be either
  personally delivered, or received by certified mail, return receipt
  requested, or sent by reputable overnight courier service (charges prepaid)
  to the Company at the address set forth below and to any other recipient and
  to any Member at such address as indicated by the Company’s records, or at
  such address or to the attention of such other person as the recipient party
  has specified by prior written notice to the sending party. Notices will be
  deemed to have been given hereunder when delivered personally or sent by
  telecopier (provided confirmation of transmission is received), three days
  after deposit in the U.S. mail and one day after deposit with a reputable
  overnight courier service. The Company’s address is: to the Company: Neff
  Holdings LLC 3750 N.W. 87th Avenue, Suite 400 Miami, Florida 33178 Attn: Mark
  Irion, Chief Financial Officer Facsimile: (305) 773-2291 E-mail:
  mirion@neffcorp.com with a copy (which copy shall not constitute notice) to:
  Latham & Watkins LLP 885 Third Avenue New York, New York 10022 Attn:
  Dennis D. Lamont Facsimile: (212) 751-4864 E-mail: dennis.lamont@lw.com
  Section 16.06 Binding Effect; Intended Beneficiaries. This Agreement shall be
  binding upon and inure to the benefit of the parties hereto and their heirs,
  executors, administrators, successors, legal representatives and permitted assigns.
  Section 3.01(a), Section 3.02, Section 3.03(a), Section 3.10, Article XI,
  Section 12.02 and Section 13.02 hereof shall inure to the benefit of the LLC
  Optionees who are intended to be third-party beneficiaries thereof and which
  Articles and Sections shall be enforceable by each LLC Optionee and its
  successors and assigns. Section 16.07 Creditors. None of the provisions of
  this Agreement shall be for the benefit of or enforceable by any creditors of
  the Company or any of its Affiliates, and no creditor who makes a loan to the
  Company or any of its Affiliates may have or acquire (except pursuant to the
  terms of a separate agreement executed by the Company in favor of such
  creditor) at any time as a result of making the loan any direct or indirect
  interest in Company Profits, Losses, Distributions, capital or property other
  than as a secured creditor. 

  

 

	
  

  	
  49 DRAFT
  10-14-2014#86439994v1 Section 16.08 Waiver. No failure by any party to insist
  upon the strict performance of any covenant, duty, agreement or condition of
  this Agreement or to exercise any right or remedy consequent upon a breach
  thereof shall constitute a waiver of any such breach or any other covenant,
  duty, agreement or condition. Section 16.09 Counterparts. This Agreement may
  be executed in separate counterparts, each of which will be an original and
  all of which together shall constitute one and the same agreement binding on
  all the parties hereto. Section 16.10 Applicable Law. This Agreement shall be
  governed by, and construed in accordance with, the laws of the State of
  Delaware, without giving effect to any choice of law or conflict of law rules
  or provisions (whether of the State of Delaware or any other jurisdiction)
  that would cause the application of the laws of any jurisdiction other than
  the State of Delaware. Any dispute relating hereto shall be heard in the
  state or federal courts of the State of Delaware, and the parties agree to
  jurisdiction and venue therein. Section 16.11 Severability. Whenever
  possible, each provision of this Agreement will be interpreted in such manner
  as to be effective and valid under applicable Law, but if any provision of
  this Agreement is held to be invalid, illegal or unenforceable in any respect
  under any applicable Law or rule in any jurisdiction, such invalidity,
  illegality or unenforceability will not affect any other provision or the
  effectiveness or validity of any provision in any other jurisdiction, and
  this Agreement will be reformed, construed and enforced in such jurisdiction
  as if such invalid, illegal or unenforceable provision had never been
  contained herein. Section 16.12 Further Action. The parties shall execute and
  deliver all documents, provide all information and take or refrain from
  taking such actions as may be necessary or appropriate to achieve the
  purposes of this Agreement. Section 16.13 Delivery by Electronic
  Transmission. This Agreement and any signed agreement or instrument entered
  into in connection with this Agreement or contemplated hereby, and any
  amendments hereto or thereto, to the extent signed and delivered by means of
  an electronic transmission, including by a facsimile machine or via email,
  shall be treated in all manner and respects as an original agreement or
  instrument and shall be considered to have the same binding legal effect as
  if it were the original signed version thereof delivered in person. At the
  request of any party hereto or to any such agreement or instrument, each
  other party hereto or thereto shall re-execute original forms thereof and
  deliver them to all other parties. No party hereto or to any such agreement
  or instrument shall raise the use of electronic transmission by a facsimile
  machine or via email to deliver a signature or the fact that any signature or
  agreement or instrument was transmitted or communicated through such
  electronic transmission as a defense to the formation of a contract and each
  such party forever waives any such defense. Section 16.14 Right of Offset.
  Whenever the Company is to pay any sum (other than pursuant to Article IV) to
  any Member, any amounts that such Member owes to the Company which are not
  the subject of a good faith dispute may be deducted from that sum before
  payment. For the avoidance of doubt, the distribution of Units to the
  Corporation shall not be subject to this Section 16.14. 

  

 

	
  

  	
  50 DRAFT
  10-14-2014#86439994v1 Section 16.15 Effectiveness. This Agreement shall be
  effective immediately prior to the time at which the IPO closes on the IPO
  Closing Date (the “Effective Time”). The First A&R LLC Agreement shall
  govern the rights and obligations of the Company and the other parties to
  this Agreement in their capacity as Unitholders prior to the Effective Time.
  Section 16.16 Entire Agreement. This Agreement, those documents expressly
  referred to herein (including the Registration Rights Agreement and the Tax
  Receivable Agreement), any indemnity agreements entered into in connection
  with the First A&R LLC Agreement with any member of the board of managers
  at that time and other documents of even date herewith embody the complete
  agreement and understanding among the parties and supersede and preempt any
  prior understandings, agreements or representations by or among the parties,
  written or oral, which may have related to the subject matter hereof in any
  way. For the avoidance of doubt, the First A&R LLC Agreement is
  superseded by this Agreement as of the Effective Time and shall be of no
  further force and effect thereafter. Section 16.17 Remedies. Each Member
  shall have all rights and remedies set forth in this Agreement and all rights
  and remedies which such Person has been granted at any time under any other
  agreement or contract and all of the rights which such Person has under any
  Law. Any Person having any rights under any provision of this Agreement or
  any other agreements contemplated hereby shall be entitled to enforce such
  rights specifically (without posting a bond or other security), to recover
  damages by reason of any breach of any provision of this Agreement and to
  exercise all other rights granted by Law. Section 16.18 Descriptive Headings;
  Interpretation. The descriptive headings of this Agreement are inserted for
  convenience only and do not constitute a substantive part of this Agreement.
  Whenever required by the context, any pronoun used in this Agreement shall
  include the corresponding masculine, feminine or neuter forms, and the
  singular form of nouns, pronouns and verbs shall include the plural and vice
  versa. The use of the word “including” in this Agreement shall be by way of
  example rather than by limitation. Reference to any agreement, document or
  instrument means such agreement, document or instrument as amended or
  otherwise modified from time to time in accordance with the terms thereof,
  and if applicable hereof. Without limiting the generality of the immediately
  preceding sentence, no amendment or other modification to any agreement,
  document or instrument that requires the consent of any Person pursuant to
  the terms of this Agreement or any other agreement will be given effect
  hereunder unless such Person has consented in writing to such amendment or
  modification. Wherever required by the context, references to a Fiscal Year
  shall refer to a portion thereof. The use of the words “or,” “either” and
  “any” shall not be exclusive. The parties hereto have participated jointly in
  the negotiation and drafting of this Agreement. In the event an ambiguity or
  question of intent or interpretation arises, this Agreement shall be
  construed as if drafted jointly by the parties hereto, and no presumption or
  burden of proof shall arise favoring or disfavoring any party by virtue of
  the authorship of any of the provisions of this Agreement. Wherever a
  conflict exists between this Agreement and any other agreement, this
  Agreement shall control but solely to the extent of such conflict. 

  

 

	
  

  	
  51 DRAFT
  10-14-2014#86439994v1 IN WITNESS WHEREOF, the undersigned have executed or
  caused to be executed on their behalf this Agreement as of the date first
  written above. COMPANY: NEFF HOLDINGS LLC By: NEFF CORPORATION, its Managing
  Member By: ________________________________ Name: Title: MEMBERS: WAYZATA
  OPPORTUNITIES FUND II, L.P. By: WOF II GP, L.P., its General Partner By: WOF
  II GP, LLC, its General Partner By: ________________________________ Name:
  Title: WAYZATA OPPORTUNITIES FUND OFFSHORE II, L.P. By: [WOFO II GP, L.P.],
  its General Partner By: [WOFO II GP, LLC], its General Partner By:
  ________________________________ Name: Title: NEFF CORPORATION By:
  ________________________________ Name: Title: 

  

 

	
  

  	
  DRAFT
  10-14-2014#86439994v1 SCHEDULE 1* SCHEDULE OF MEMBERS Member Common Units
  Percentage Interest Wayzata Opportunities Fund II, L.P. [•] ** [•] Wayzata
  Opportunities Fund Offshore II, L.P [•] ** [•] Neff Corporation [•] *** [•]
  Total [•] 100.00000 % * This Schedule of Members reflects the
  Recapitalization and shall be updated from time to time to reflect any
  adjustment with respect to any subdivision (by Unit split or otherwise) or
  any combination (by reverse Unit split or otherwise) of any outstanding
  Common Units, or to reflect any additional issuances of Common Units pursuant
  to this Agreement. ** Reflects the Recapitalization and the Over-Allotment
  Option Redemption (if applicable). *** Reflects the contribution of the IPO
  Net Proceeds and Over-Allotment Option Net Proceeds (if any). 

  

 

	
  

  	
  DRAFT
  10-14-2014#86439994v1 SCHEDULE 2* SCHEDULE OF LLC OPTIONEES Original LLC
  Options Number of Common Units Underlying LLC Options** Number of Common
  Units Underlying LLC Optionees Performance Options Service Options Total
  Options Performance Options Service Options Total Options James Continenza –
  12,573 12,573 [•] [•] [•] Robert Singer – 8,801 8,801 [•] [•] [•] Graham Hood
  81,750 136,250 218,000 [•] [•] [•] Mark Irion 48,750 81,250 130,000 [•] [•]
  [•] Wes Parks 22,500 37,500 60,000 [•] [•] [•] Henry Lawson 22,500 37,500
  60,000 [•] [•] [•] John Anderson 22,500 37,500 60,000 [•] [•] [•] Brad Nowell
  13,875 23,125 37,000 [•] [•] [•] Steven Settelmayer 13,875 23,125 37,000 [•]
  [•] [•] Paula Papamarcos 11,625 19,375 31,000 [•] [•] [•] Steve Michaels
  13,875 23,125 37,000 [•] [•] [•] Tom Sutherland 11,625 19,375 31,000 [•] [•]
  [•] Tammy Parham 5,250 8,750 14,000 [•] [•] [•] Jim Horn 5,250 8,750 14,000
  [•] [•] [•] Bryant Becton 5,250 8,750 14,000 [•] [•] [•] Bobby Corner 5,250
  8,750 14,000 [•] [•] [•] Total 283,875 494,499 778,374 [•] [•] [•] * This
  Schedule of LLC Optionees shall be updated from time to time to reflect any
  adjustment with respect to any subdivision (by Unit split or otherwise) or
  any combination (by reverse Unit split or otherwise) of any outstanding
  Common Units, or to reflect any additional issuances of Common Units pursuant
  to this Agreement. ** This column reflects the Recapitalization. 

  

 

	
  

  	
  DRAFT
  10-14-2014#86439994v1 Exhibit A FORM OF JOINDER AGREEMENT This JOINDER
  AGREEMENT, dated as of _________________, 20___ (this “Joinder”), is
  delivered pursuant to that certain Second Amended and Restated Limited
  Liability Company Agreement, dated as of [.], 2014 (as amended, restated,
  amended and restated, supplemented or otherwise modified from time to time,
  the “LLC Agreement”) by and among Neff Holdings LLC, a Delaware limited
  liability company (the “Company”), Neff Corporation, a Delaware corporation
  and the managing member of the Company (the “Holdings”), and each of the
  Members from time to time party thereto. Capitalized terms used but not
  otherwise defined herein have the respective meanings set forth in the LLC
  Agreement. 1. Joinder to the LLC Agreement. Upon the execution of this
  Joinder by the undersigned and delivery hereof to Holdings, the undersigned
  hereby is and hereafter will be a Member under the LLC Agreement and a party
  thereto, with all the rights, privileges and responsibilities of a Member
  thereunder. The undersigned hereby agrees that it shall comply with and be fully
  bound by the terms of the LLC Agreement as if it had been a signatory thereto
  as of the date thereof. 2. Incorporation by Reference. All terms and
  conditions of the LLC Agreement are hereby incorporated by reference in this
  Joinder as if set forth herein in full. 3. Address. All notices under the LLC
  Agreement to the undersigned shall be direct to: [Name] [Address] [City,
  State, Zip Code] Attn: Facsimile: E-mail: IN WITNESS WHEREOF, the undersigned
  has duly executed and delivered this Joinder as of the day and year first
  above written. [NAME OF NEW MEMBER] By: _________________________________
  Name: Title: 

  

 

	
  

  	
  DRAFT
  10-14-2014#86439994v1 Acknowledged and agreed as of the date first set forth
  above: NEFF HOLDINGS LLC By: NEFF CORPORATION, its Managing Member By:
  ___________________________ Name: Title: 

  

 

	
  

  	
  #86469808v2
  EXHIBIT C FORM OF IPO COMMON UNIT PURCHASE AGREEMENT [see attached] 

  

 

	
  

  	
  Posting Version
  DRAFT 10-14-2014#86439997v1 COMMON UNIT PURCHASE AGREEMENT This COMMON UNIT
  PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of [.],
  2014, by and among Neff Corporation, a Delaware corporation (the
  “Corporation”), Neff Holdings LLC, a Delaware limited liability company (the
  “Company”), Wayzata Opportunities Fund II, L.P., a Delaware limited
  partnership (“Wayzata”), and Wayzata Opportunities Fund Offshore II, L.P., a
  Cayman Islands limited partnership (“Wayzata Offshore” and, together with
  Wayzata, the “Wayzata Funds”). RECITALS WHEREAS, the Corporation is
  contemplating an offer and sale of its shares of Class A common stock, par
  value $0.01 per share (the “Class A Common Stock” and such shares, the
  “Shares”), to the public in an underwritten initial public offering (the
  “IPO”) pursuant to the Registration Statement (as defined herein); WHEREAS,
  the Corporation desires to use a portion of the net proceeds from the IPO to
  purchase Common Units (as defined below) of the Company, and the Company
  desires to issue its Common Units to the Corporation in exchange for such
  portion of the net proceeds from the IPO; WHEREAS, immediately prior to or
  simultaneous with the purchase by the Corporation of the Common Units and
  consummation of the other transactions contemplated by this Agreement, the
  Corporation, the Company and the Wayzata Funds will enter into that certain
  Second Amended and Restated Limited Liability Company Agreement of the
  Company in the form substantially set forth as Exhibit A hereto (such
  agreement, as it may be amended, restated, amended and restated, supplemented
  or otherwise modified from time to time, the “LLC Agreement”); WHEREAS, upon
  the Effective Time (as defined below) the Corporation will become the sole
  managing member of the Company, and the Wayzata Funds will become
  non-managing members of the Company but otherwise retain their units in the
  Company (which under the LLC Agreement are converted from “Class A Common
  Units” to Common Units), except as otherwise contemplated herein; and
  WHEREAS, the parties hereto intend for the Corporation’s contribution to the
  Company of the proceeds received from the Corporation’s IPO in exchange for
  Common Units to be treated as a contribution of property governed by Section
  721(a) of the Internal Revenue Code of 1986, as amended; NOW, THEREFORE, in
  consideration of the covenants and agreements contained herein and other good
  and valuable consideration, the receipt and sufficiency of which are hereby
  acknowledged, the Corporation, the Wayzata Funds and the Company agree as
  follows: 

  

 

	
  

  	
  2 DRAFT
  10-14-2014#86439997v1 AGREEMENT ARTICLE I. DEFINITIONS Section 1.01 Certain
  Definitions. For purposes of this Agreement, the following terms shall have
  the meanings specified in this Section 1.01: “Common Units” means the “Common
  Units” of the Company as defined in the LLC Agreement. “Company” has the
  meaning set forth in the Preamble. “Corporation” has the meaning set forth in
  the Preamble. “Effective Time” means the “Effective Time” as defined in the
  LLC Agreement. “Encumbrance” means, with respect to any specified asset, any
  security interest, lien, mortgage, claim, charge, pledge, restriction,
  option, reservation, equitable interest, deed of trust, right of first
  refusal, easement, servitude or encumbrance of any nature. “Initial Closing”
  means the closing of the transactions contemplated in Sections 2.01, 2.02 and
  2.04. “Initial Closing Date” has the meaning set forth in Section 2.03.
  “Initial Consideration” has the meaning set forth in Section 2.02. “Initial
  Units” has the meaning set forth in Section 2.01. “Initial Proceeds” means
  the net proceeds received by the Corporation in exchange for the issuance and
  sale of Shares in the IPO. Initial Proceeds will be calculated as the product
  of (a) the sum of (i) the price per share at which Shares are sold to the
  public in the IPO minus (ii) the aggregate underwriting discounts and
  commissions per share in such offering, multiplied by (b) the number of
  Shares sold to the public in the IPO without giving effect to any exercise of
  the Over-Allotment Option. For the avoidance of doubt, Initial Proceeds shall
  not include the Over- Allotment Proceeds. “IPO” has the meaning set forth in
  the Recitals. “LLC Agreement” has the meaning set forth in the Recitals.
  “Managing Underwriters” means Morgan Stanley & Co. LLC and Jefferies LLC.
  “Over-Allotment Closing” means the closing of the transactions contemplated
  in Section 3.01, 3.02 and 3.04. “Over-Allotment Closing Date” has the meaning
  set forth in Section 3.03. 

  

 

	
  

  	
  3 DRAFT
  10-14-2014#86439997v1 “Over-Allotment Option” means the Underwriters’ option
  to purchase additional Shares from the Corporation in the IPO pursuant to the
  second paragraph of Section 2 of the Underwriting Agreement. “Over-Allotment
  Proceeds” means the net proceeds received by the Corporation in exchange for
  the issuance and sale of Shares in the IPO but solely as a result of the
  exercise, in whole or in part, by the Underwriters of the Over-Allotment
  Option. Over-Allotment Proceeds will be calculated as the product of (a) the
  sum of (i) the price per share at which Shares are sold to the public in the
  IPO minus (ii) the aggregate underwriting discounts and commissions per share
  in such offering, multiplied by (b) the number of Shares sold to the public
  in the IPO solely to the extent of any exercise of the Over-Allotment Option.
  For the avoidance of doubt, Over- Allotment Proceeds shall not include the
  Initial Proceeds. “Over-Allotment Units” has the meaning set forth in Section
  3.01. “Prospectus” means the final prospectus for the IPO contained in the
  Registration Statement. “Registration Statement” means the Corporation’s
  registration statement on Form S-1, file no. 333-198559, as filed with the
  U.S. Securities and Exchange Commission on the date hereof, together with any
  other registration statement on Form S-1 that the Corporation may file in connection
  with the IPO in reliance on Rule 462(b) promulgated under the Securities Act.
  “Securities Act” means the U.S. Securities Act of 1933, as amended. “Shares”
  has the meaning set forth in the Recitals. “Transaction Documents” mean the
  transactional and organizational documents entered into contemporaneously
  with this Agreement by either the Company, the Corporation or the Wayzata
  Funds, as applicable, in connection with the IPO. “Underwriters” means each
  of the financial institutions identified in the Prospectus and in the
  Underwriting Agreement as an “underwriter” in the IPO, including without
  limitation the Managing Underwriters. “Underwriting Agreement” means that
  certain Underwriting Agreement, [dated the date hereof], by and among the
  Corporation and the managing underwriters, on behalf of the several
  Underwriters, with respect to the sale of Shares in the IPO. “Wayzata” has
  the meaning set forth in the Preamble. “Wayzata Funds” has the meaning set
  forth in the Preamble. “Wayzata Offshore” has the meaning set forth in the
  Preamble. 

  

 

	
  

  	
  4 DRAFT
  10-14-2014#86439997v1 ARTICLE II. INITIAL CLOSING Section 2.01 Company
  Issuance of Common Units to Corporation. The Company hereby agrees to issue
  to the Corporation on the Initial Closing Date, and the Corporation hereby
  agrees to subscribe for, purchase and accept on the Initial Closing Date,
  free and clear of all Encumbrances, an aggregate number of Common Units equal
  to the aggregate number of Shares sold (excluding any Shares sold pursuant to
  the exercise of the Over-Allotment Option) in the IPO (such Common Units
  collectively, the “Initial Units”). Section 2.02 Consideration. The
  consideration for the Initial Units shall be an amount equal to the Initial
  Proceeds (the “Initial Consideration”). Section 2.03 Initial Closing. The
  Initial Closing shall be held at the offices of Latham & Watkins LLP, 885
  Third Avenue, New York, NY 10022 at the time and date on which all the
  conditions set forth in Article VII have been satisfied or waived, or at such
  later time and date as the Corporation, the Company and the Wayzata Funds
  shall agree in writing (such time and date, the “Initial Closing Date”).
  Section 2.04 Initial Closing Deliverables. (a) The Company shall deliver, or
  cause to be delivered, the following documents to the Corporation at the
  Initial Closing: (i) (x) solely to the extent that the Common Units are
  certificated, a certificate or certificates representing the Initial Units
  being issued to the Corporation identifying the Corporation as the registered
  holder thereof or (y) if the Common Units are not certificated, evidence
  reasonably satisfactory to the Corporation that the Corporation has been
  registered as the holder of the Initial Units in the books and records of the
  Company (which evidence may be satisfied by the Schedule of Members attached
  to the LLC Agreement at the Effective Time, as modified to give effect to the
  Initial Closing); and (ii) all other customary documents, instruments or
  certificates as shall be reasonably requested by the Corporation and as shall
  be consistent with the terms of this Agreement; and (b) The Corporation shall
  deliver, or cause to be delivered, the following to the Company at the
  Initial Closing: (i) the Initial Consideration by wire transfer of
  immediately available funds to the following bank account of the Company:
  Bank [.] Bank Address [.] ABA Routing No. [.] Account No. [.] Beneficiary
  Name: Neff Holdings LLC 

  

 

	
  

  	
  5 DRAFT
  10-14-2014#86439997v1 (ii) all other customary documents, instruments or
  certificates as shall be reasonably requested by the Company and as shall be
  consistent with the terms of this Agreement and which will not require any
  representations or warranties other than those set forth in Article IV.
  Section 2.05 Closing Costs; Transfer Taxes and Fees. The Company shall be
  solely responsible for the documentary and transfer taxes and any sales or
  other similar taxes, if any, imposed on the issuance and sale of the Initial
  Units by the Company to the Corporation under this Agreement, as well as any
  deficiency, interest or penalty asserted with respect thereto. ARTICLE III.
  OVER-ALLOTMENT CLOSING Section 3.01 Corporation Purchase of Additional Common
  Units from the Wayzata Funds. Solely to the extent that the Underwriters
  exercise the Over-Allotment Option, the Wayzata Funds hereby agree, severally
  and not jointly, to sell to the Corporation on the Over- Allotment Closing
  Date, and the Corporation hereby agrees to purchase and accept from the
  Wayzata Funds on the Over-Allotment Closing Date, free and clear of all
  Encumbrances, an aggregate number of Common Units equal to the aggregate
  number of Shares sold to the Underwriters solely pursuant to the exercise, in
  whole or in part, by the Underwriters of the Over-Allotment Option in the IPO
  (such Common Units collectively, the “Over-Allotment Units”). The Corporation
  and the Wayzata Funds hereby acknowledge and agree that the obligation of the
  Wayzata Funds to issue any Over-Allotment Units in connection with the Over-
  Allotment Option are contingent upon the Underwriters’ exercise of their
  Over-Allotment Option. If the Underwriters exercise their Over-Allotment
  Option in whole or in part, the Corporation will, contemporaneously with the
  sale of Shares by the Corporation to the Underwriters pursuant to the Over-Allotment
  Option, purchase an aggregate number of Over- Allotment Units from the
  Wayzata Funds equal to the aggregate number of Shares purchased by the
  Underwriters from the Corporation pursuant to the exercise of the
  Over-Allotment Option. The sale of such Over-Allotment Units by the Wayzata
  Funds shall be made pro rata between them, except for such adjustments as the
  Wayzata Funds may mutually agree between them in order to avoid any
  fractional interest in Common Units. Section 3.02 Consideration. The consideration
  for the Over-Allotment Units shall be an amount equal to the Over-Allotment
  Proceeds (the “Over-Allotment Consideration”). The Corporation shall pay the
  Over-Allotment Consideration to the Wayzata Funds ratably in the same
  proportion as the Wayzata Funds are selling to the Corporation the
  Over-Allotment Units. Section 3.03 Over-Allotment Closing. The Over-Allotment
  Closing shall be held at the offices of Latham & Watkins LLP, 885 Third
  Avenue, New York, NY 10022 at the time and date on which all the conditions
  set forth in Article VII have been satisfied or waived, or at such later time
  and date as the Corporation and the Wayzata Funds shall agree in writing
  (such time and date, the “Over-Allotment Closing Date”). Section 3.04
  Over-Allotment Closing Deliverables. 

  

 

	
  

  	
  6 DRAFT
  10-14-2014#86439997v1 (a) Each Wayzata Fund shall deliver, or cause to be
  delivered, the following documents to the Corporation at the Over-Allotment
  Closing: (i) solely to the extent that the Common Units are certificated, the
  certificate or certificates representing the Over-Allotment Units being sold
  to the Corporation (provided that, to the extent a certificate represents
  more than the exact number of Common Units to be delivered to the Corporation
  hereunder, then in lieu of the obligation to deliver such certificate(s) to
  the Corporation the applicable Wayzata Fund may surrender such certificate(s)
  to the Company for exchange into one or more certificates evidencing (x) the
  Common Units to be delivered to the Corporation pursuant to this Agreement,
  which shall be registered in the name of the Corporation and (y) the
  remaining Common Units to be retained by such Wayzata Fund); and (ii) all
  other customary documents, instruments or certificates as shall be reasonably
  requested by the Corporation and as shall be consistent with the terms of
  this Agreement and which will not require any representations or warranties
  other than those set forth in Article VI. (b) The Corporation shall deliver,
  or cause to be delivered, the following to the Wayzata Funds at the
  Over-Allotment Closing: (i) a letter executed by the Managing Underwriters on
  behalf of the several Underwriters evidencing the exercise of the
  Over-Allotment Option by the Underwriters in a form reasonably satisfactory
  to the Company, which clearly states the total number of Shares with respect
  to which the Over-Allotment Option has been exercised; (ii) the
  Over-Allotment Consideration by wire transfer of immediately available funds
  to the following bank account of the Wayzata Funds: For the Over-Allotment
  Consideration payable to Wayzata: Bank [.] Bank Address [.] ABA Routing No.
  [.] Account No. [.] Beneficiary Name: Wayzata Opportunities Fund II, L.P. For
  the Over-Allotment Consideration payable to Wayzata Offshore: Bank [.] Bank
  Address [.] ABA Routing No. [.] Account No. [.] Beneficiary Name: Wayzata
  Opportunities Fund Offshore II, L.P. (iii) all other customary documents,
  instruments or certificates as shall be reasonably requested by the Company
  and as shall be consistent with the terms of this Agreement; and 

  

 

	
  

  	
  7 DRAFT
  10-14-2014#86439997v1 (c) The Company shall deliver, or cause to be
  delivered, the following documents to the Corporation at the Over-Allotment
  Closing: (i) (x) solely to the extent that the Common Units are certificated,
  a certificate or certificates representing the Initial Units being issued to
  the Corporation identifying the Corporation as the registered holder thereof
  or (y) if the Common Units are not certificated, evidence reasonably
  satisfactory to the Corporation that the Corporation has been registered as
  the holder of the Initial Units in the books and records of the Company
  (which evidence may be satisfied by the Schedule of Members attached to the
  LLC Agreement at the Effective Time, as modified to give effect to the Over-
  Allotment Closing); (ii) a duly authorized certificate in accordance with
  Treasury Regulation Section 1.1445-11T, certifying that fifty percent (50%)
  or more of the value of the gross assets of the Company does not consist of U.S.
  real property interests or that ninety percent (90%) or more of the value of
  the gross assets of the Company does not consist of U.S. real property
  interests plus cash or cash equivalents; and (iii) all other customary
  documents, instruments or certificates as shall be reasonably requested by
  the Corporation and as shall be consistent with the terms of this Agreement.
  Section 3.05 Closing Costs; Transfer Taxes and Fees. The Company shall be
  solely responsible for the documentary and transfer taxes and any sales or
  other similar taxes, if any, imposed on the sale and transfer by the Wayzata
  Funds of the Over-Allotment Units to the Corporation under this Agreement, as
  well as any deficiency, interest or penalty asserted with respect thereto.
  ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF THE COMPANY As of the date of
  this Agreement and as of each of the Initial Closing Date and, if applicable,
  the Over-Allotment Closing Date, the Company represents and warrants to the
  Corporation and the Wayzata Funds as follows: Section 4.01 Organization; Good
  Standing; Qualification. The Company is a limited liability company, duly
  organized and validly existing under the laws of the State of Delaware. The
  Company has the requisite power and authority to own and operate its
  properties and assets, and to carry on its business as presently conducted
  and as proposed to be conducted. The Company is in good standing and
  qualified to do business in the State of Delaware and in each other
  jurisdiction where the failure to so qualify would have a material adverse
  effect on its business or financial condition or its ability to enter into
  this Agreement or to consummate the transactions contemplated hereby. Section
  4.02 Authorization. The execution, delivery and performance of this Agreement
  and the issuance by the Company of the Initial Units have been duly
  authorized by the Company. This Agreement constitutes the legal, valid and
  binding obligation of the Company enforceable against the Company in
  accordance with its terms, except as may be 

  

 

	
  

  	
  8 DRAFT
  10-14-2014#86439997v1 limited by (i) applicable bankruptcy, insolvency,
  reorganization or other laws of general application relating to or affecting
  the enforcement of creditors’ rights generally and (ii) the effect of rules
  of law governing the availability of equitable remedies. Section 4.03
  Consents. Except as has been obtained or will be obtained prior to the
  Initial Closing and, if applicable, the Over-Allotment Closing, no consent,
  approval or authorization of, or designation, declaration or filing with, any
  governmental authority or other third party on the part of the Company is
  required in connection with the execution and delivery of this Agreement or
  the consummation of the transactions contemplated hereby. Section 4.04 Capitalization
  of the Company. Immediately prior to the execution and delivery of this
  Agreement, there are no Common Units issued and outstanding other than the
  Common Units issued the Wayzata Funds as set forth on the Schedule of Members
  to the LLC Agreement at the Effective Time (prior to giving effect to this
  Agreement). There are no outstanding options, warrants, rights (including
  conversion or preemptive rights), voting agreements, investor or other type
  of agreement with respect to the Common Units or other agreements for the
  purchase or acquisition from the Company of any Common Units, except for the
  LLC Options (as defined in the LLC Agreement) summarized on the Schedule of
  LLC Optionees to the LLC Agreement; provided, however, that the execution of
  any Transaction Document by the parties hereto either prior to, or
  contemporaneously with, this Agreement shall be expressly excluded from this
  Section 4.04. The assets and liabilities of the Company are as set forth in
  the financial statements included in the Prospectus as of the date indicated.
  Section 4.05 Regulation D Eligibility. None of the “Bad Actor” disqualifying
  events described in Rule 506(d)(1)(i) to (viii) promulgated under the
  Securities Act (a “Disqualification Event”) is applicable to the Company or
  any of its Rule 506(d) Related Parties except, if applicable, for a
  Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is
  applicable. For purposes of this Agreement, “Rule 506(d) Related Party” shall
  mean any person in a capacity (relative to the Company) specified in the
  first paragraph of Rule 506(d)(1) under the Securities Act. ARTICLE V.
  REPRESENTATIONS AND WARRANTIES OF THE CORPORATION As of the date of this
  Agreement and as of each of the Initial Closing Date and, if applicable, the
  Over-Allotment Closing Date, the Corporation hereby represents and warrants
  to the Company and the Wayzata Funds as follows: Section 5.01 Organization;
  Good Standing; Qualification. The Corporation is a corporation duly organized
  and validly existing under the laws of the State of Delaware. The Corporation
  has the requisite power and authority to own and operate its properties and
  assets, and to carry on its business as presently conducted and as proposed
  to be conducted. The Corporation is in good standing and qualified to do
  business in the State of Delaware and in each other jurisdiction where the
  failure to so qualify would have a material adverse effect on its ability to
  enter into this Agreement or to consummate the transactions contemplated hereby.
  

  

 

	
  

  	
  9 DRAFT
  10-14-2014#86439997v1 Section 5.02 Authorization. The execution, delivery and
  performance of this Agreement and the subscription to the Initial Units have
  been duly authorized by the Corporation. This Agreement constitutes the
  legal, valid and binding obligation of the Corporation enforceable against
  the Corporation in accordance with its terms, except as may be limited by (i)
  applicable bankruptcy, insolvency, reorganization or other laws of general
  application relating to or affecting the enforcement of creditors’ rights
  generally and (ii) the effect of rules of law governing the availability of
  equitable remedies. Section 5.03 Consents. Except as has been obtained or
  will be obtained prior to Initial Closing and, if applicable, the Over-Allotment
  Closing, no consent, approval or authorization of, or designation,
  declaration or filing with, any governmental authority or other third party
  on the part of the Corporation is required in connection with the execution
  and delivery of this Agreement or the consummation of the transactions
  contemplated hereby. Section 5.04 Investor Representations. (a) The
  Corporation is acquiring the Common Units from the Company for its own
  account as an investment and not with a view to sell, transfer or otherwise
  distribute all or any part thereof to any other person in any transaction
  that would constitute a “distribution” within the meaning of the Securities
  Act. (b) The Corporation acknowledges and agrees that (i) it has such
  knowledge and experience in financial and business matters that it is capable
  of evaluating the merits and risks of an investment in the Common Units and
  (ii) it can bear the economic risk of its investment in the Common Units. (c)
  The Corporation is an “accredited investor” as such term is defined in Rule
  501(a) of Regulation D promulgated under the Securities Act. (d) The
  Corporation understands that neither the offer nor sale of the Common Units
  by the Company hereunder has or will have been registered pursuant to the
  Securities Act or any applicable state securities laws, that all of the
  Common Units will be characterized as “restricted securities” under federal
  securities laws and that, under such laws and applicable regulations, none of
  the Units can be sold or otherwise disposed of without registration under the
  Securities Act or a valid exemption thereunder. (e) The Corporation
  acknowledges and agrees that it (i) has, without reliance on the Company or
  Wayzata, made its own inquiry and investigation into, and based thereon has formed
  an independent judgment concerning, the Company and the Common Units and (ii)
  has been furnished with, or given adequate access to, such information about
  the Company and the Common Units as it has requested. (f) The Corporation
  further acknowledges and agrees that (1) the only representations,
  warranties, covenants and agreements made in connection with its purchase of
  the Common Units from the Company are the representations, warranties,
  covenants and agreements made in this Agreement, and the Corporation has not
  relied upon any other representations or information made or supplied by or
  on behalf of the Company or its representatives, including any information
  provided by or through the Company’s advisors, and 

  

 

	
  

  	
  10 DRAFT
  10-14-2014#86439997v1 that the Corporation will not have any right or remedy
  arising out of any such representation or other information and (2) any
  claims that the Corporation may have against the Company for breach of any
  representation or warranty shall be based solely on the representations and
  warranties set forth in Article IV (in the case of the Company) or set forth
  in Article VI (in the case of a Wayzata Fund). Section 5.05 Regulation D
  Eligibility. Neither the Corporation nor any of its shareholders, directors,
  executive officers or affiliates (the Corporation together with such Persons,
  the “Corporation Covered Persons”) are subject to a Disqualification Event,
  except, if applicable, for a Disqualification Event as to which Rule
  506(d)(2)(ii) or (iii) or (d)(3) is applicable. The Corporation has exercised
  reasonable care to determine whether any Corporation Covered Person is
  subject to a Disqualification Event. The purchase of Common Units from the
  Company by the Corporation will not subject the Company to any Disqualification
  Event. ARTICLE VI. REPRESENTATIONS AND WARRANTIES OF THE WAYZATA FUNDS. As of
  the date of this Agreement and as of the Over-Allotment Closing Date, each of
  the Wayzata Funds hereby represents and warrants, with respect to itself, to
  the Corporation as follows: Section 6.01 Organization; Good Standing;
  Qualification. Such Wayzata Fund is a limited partnership duly organized and
  validly existing under the laws of the State of Delaware. Such Wayzata Fund
  has the requisite power and authority to own and operate its properties and
  assets, and to carry on its business as presently conducted and as proposed
  to be conducted. Such Wayzata Fund is in good standing and qualified to do
  business in the jurisdiction of its organization (to the extent such concept
  is applicable in such jurisdiction) and in each other jurisdiction where the
  failure to so qualify would have a material adverse effect on its ability to
  enter into this Agreement or to consummate the transactions contemplated
  hereby. Section 6.02 Authorization. The execution, delivery and performance
  of this Agreement and the sale of the Over-Allotment Units as contemplated
  hereby have been duly authorized by such Wayzata Fund. This Agreement
  constitutes the legal, valid and binding obligation of such Wayzata Fund,
  enforceable against such Wayzata Fund in accordance with its terms, except as
  may be limited by (i) applicable bankruptcy, insolvency, reorganization or
  other laws of general application relating to or affecting the enforcement of
  creditors’ rights generally and (ii) the effect of rules of law governing the
  availability of equitable remedies. Section 6.03 Consents. Except as has been
  obtained or will be obtained prior to Over- Allotment Closing, no consent,
  approval or authorization of, or designation, declaration or filing with, any
  governmental authority or other third party on the part of such Wayzata Fund
  is required in connection with the execution and delivery of this Agreement
  or the consummation of the transactions contemplated hereby. Section 6.04
  Title to Units. Such Wayzata Fund is the record and beneficial owner of, and
  has, and on the Over-Allotment Closing Date will have, valid and marketable
  title to the 

  

 

	
  

  	
  11 DRAFT
  10-14-2014#86439997v1 Common Units to be sold by such Wayzata Fund to the
  Corporation pursuant to this Agreement, free and clear of all Encumbrances
  (other than such Encumbrances that will be extinguished upon the sale of the
  Common Units to the Corporation); and upon delivery of and payment for such
  Common Units hereunder, the Corporation will acquire valid and marketable
  title thereto, free and clear of any Encumbrances. Each Wayzata Fund is
  selling such Common Units to the Corporation for their own account and are
  not selling such Common Units for the benefit of the Company, the Corporation
  or any other person, and no part of the proceeds received by such Wayzata
  Fund in consideration of such sale of Common Units to the Corporation
  hereunder will inure, either directly or indirectly, to the benefit of the
  Company, the Corporation or any other person other than to the partners of
  such Wayzata Fund. ARTICLE VII. CONDITIONS TO CLOSING Section 7.01 Conditions
  to the Obligations of All Parties. The obligations of the parties under this
  Agreement are subject to the fulfillment or waiver of the following
  conditions: (a) There shall not have been issued and be in effect any order,
  decree or judgment of, or in, any court, tribunal of competent jurisdiction
  or governmental authority which makes the issuance by the Company of the Initial
  Units to the Corporation, the sale by the Wayzata Funds of the Over-Allotment
  Units to the Corporation, or any of the other transactions contemplated by
  this Agreement illegal or invalid; (b) The Corporation shall have entered
  into the Underwriting Agreement with respect to the IPO and all conditions to
  the consummation thereof shall have been, or will contemporaneously be,
  satisfied, except for conditions to be satisfied under this Agreement at the
  Initial Closing and, if applicable, the Over-Allotment Closing; (c) The
  Company shall have been recapitalized in the manner described in the
  Prospectus; and (d) The transactions described in the Prospectus under
  “Prospectus Summary—The Organizational Transactions” shall have been
  completed prior to, or will be completed contemporaneously with, the
  execution of this Agreement. Section 7.02 Condition to Obligations of the
  Corporation. In addition to the conditions specified in Section 7.01, the
  obligations of the Corporation under this Agreement are subject to the
  fulfillment or waiver of the following conditions: (a) all covenants,
  agreements and conditions contained in this Agreement to be performed by the
  Company on or prior to each of the Initial Closing and, if applicable, the
  Over- Allotment Closing shall have been performed or complied with in all
  material respects; (b) each of the representations and warranties of the
  Company set forth in this Agreement that is qualified as to a material
  adverse effect shall be true and correct, and each of the representations and
  warranties of the Company set forth in this Agreement that is not so
  qualified shall be true and correct in all material respects, in each case,
  as of the date of this Agreement and as of each of the Initial Closing Date
  and, if applicable, the Over-Allotment 

  

 

	
  

  	
  12 DRAFT
  10-14-2014#86439997v1 Closing Date as though made on and as of the Initial
  Closing Date and, if applicable, the Over- Allotment Closing Date (except to
  the extent in either case that such representations and warranties speak as
  of another date); (c) solely with respect to the Initial Closing, the Company
  shall have delivered, or caused to be delivered, to the Corporation
  instruments of transfer and other transaction documents, in form and
  substance reasonably satisfactory to the Corporation, to effect the issue of
  the Initial Units by the Company and the other transactions contemplated by
  this Agreement, including those documents identified in Section 2.04(a); and
  (d) solely with respect to the Over-Allotment Closing, if any, (i) each
  Wayzata Fund shall have delivered, or caused to be delivered, to the
  Corporation instruments of transfer and other transaction documents, in form
  and substance reasonably satisfactory to the Corporation, to effect the sale
  and transfer of the Over-Allotment Units by the Wayzata Funds and the other
  transactions contemplated by this Agreement, including those documents
  identified in Section 3.04(a) and (ii) the Company shall have delivered, or
  caused to be delivered, to the Corporation instruments of transfer and other
  transaction documents, in form and substance reasonably satisfactory to the
  Corporation, to effect the sale and transfer of the Over-Allotment Units by
  the Wayzata Funds and the other transactions contemplated by this Agreement,
  including those documents identified in Section 3.04(c). Section 7.03
  Conditions to the Obligations of the Company. In addition to the conditions
  specified in Section 7.01, the obligations of the Company under this
  Agreement are subject to the fulfillment or waiver of the following
  conditions: (a) all covenants, agreements and conditions contained in this
  Agreement to be performed by the Corporation and the Wayzata Funds on or
  prior to the Initial Closing and, if applicable, the Over-Allotment Closing
  shall have been performed or complied with in all material respects; (b) each
  of the representations and warranties of the Corporation and the Wayzata
  Funds set forth in this Agreement that is qualified as to a material adverse
  effect shall be true and correct, and each of the representations and
  warranties of the Corporation set forth in this Agreement that is not so
  qualified shall be true and correct in all material respects, in each case,
  as of the date of this Agreement and as of the Initial Closing Date and, if
  applicable, the Over- Allotment Closing Date as though made on and as of the
  Initial Closing Date and, if applicable, the Over-Allotment Closing Date
  (except to the extent in either case that such representations and warranties
  speak as of another date); (c) solely with respect to the Initial Closing,
  the Corporation shall have delivered to the Company instruments of transfer
  and other transaction documents, in form and substance reasonably
  satisfactory to the Company, to effect the issue of the Initial Units by the
  Company and the other transactions contemplated by this Agreement, including
  those documents identified in Section 2.04(b); and (d) solely with respect to
  the Over-Allotment Closing, if any, (i) each Wayzata Fund shall have
  delivered, or caused to be delivered, to the Company instruments of transfer
  and other 

  

 

 

	
  

  	
  13 DRAFT
  10-14-2014#86439997v1 transaction documents, in form and substance reasonably
  satisfactory to the Company, to effect the sale and transfer of the
  Over-Allotment Units by the Wayzata Funds and the other transactions
  contemplated by this Agreement, including those documents identified in
  Section 3.04(a) and (ii) the Corporation shall have delivered, or caused to
  be delivered, to the Company instruments of transfer and other transaction
  documents, in form and substance reasonably satisfactory to the Company, to
  effect the sale and transfer of the Over-Allotment Units by the Wayzata Funds
  and the other transactions contemplated by this Agreement, including those
  documents identified in Section 3.04(b). Section 7.04 Conditions to the
  Obligations of the Wayzata Funds. In addition to the conditions specified in
  Section 7.01, the obligations of each Wayzata Fund under this Agreement are
  subject to the fulfillment or waiver of the following conditions: (a) all
  covenants, agreements and conditions contained in this Agreement to be
  performed by the Corporation and by Company on or prior to the Initial
  Closing shall have been performed or complied with in all material respects;
  (b) each of the representations and warranties of the Corporation and of the
  Company set forth in this Agreement that is qualified as to a material
  adverse effect shall be true and correct, and each of the representations and
  warranties of the Corporation and of the Company set forth in this Agreement
  that is not so qualified shall be true and correct in all material respects,
  in each case, as of the date of this Agreement and as of the Over-Allotment
  Closing Date as though made on and as of the Over-Allotment Closing Date
  (except to the extent in either case that such representations and warranties
  speak as of another date); and (c) (i) the Corporation shall have delivered
  to each Wayzata Fund instruments of transfer and other transaction documents,
  in form and substance reasonably satisfactory to each Wayzata Fund, to effect
  the transfer of Over-Allotment Units by such Wayzata fund to the Corporation
  and the other transactions contemplated by this Agreement, including those
  documents identified in Section 3.04(b) and (ii) the Company shall have
  delivered to each Wayzata Fund instruments of transfer and other transaction
  documents, in form and substance reasonably satisfactory to each Wayzata
  Fund, to effect the transfer of Over-Allotment Units by such Wayzata fund to
  the Corporation and the other transactions contemplated by this Agreement,
  including those documents identified in Section 3.04(c). ARTICLE VIII.
  TERMINATION If the conditions set forth in Article VII are not satisfied or
  waived on or before the completion of the IPO or if the Registration
  Statement is withdrawn for any reason prior to that date, this Agreement
  shall become null and void and be of no further force or effect whatsoever
  and none of the Company, the Wayzata Funds or the Corporation shall have any
  further obligations hereunder or with respect hereto. To the extent that the
  Over-Allotment Option is not 

  

 

	
  

  	
  14 DRAFT
  10-14-2014#86439997v1 exercised in full on or prior to 11:59 p.m. New York
  City time on [.], 20[.]1, all obligations of the Wayzata Funds hereunder will
  terminate and be extinguished as of such time and date. ARTICLE IX. COVENANTS
  Section 9.01 Further Assurances. From time to time after the date of this
  Agreement, the Corporation shall deliver or cause to be delivered to the
  Company and the Wayzata Funds such further documents and instruments and
  shall do and cause to be done such further acts as the Company and the
  Wayzata Funds shall reasonably request to carry out more effectively the
  provisions and purposes of this Agreement. From time to time after the date
  of this Agreement, the Company shall deliver or cause to be delivered to the
  Corporation and the Wayzata Funds such further documents and instruments and
  shall do and cause to be done such further acts as the Corporation and the
  Wayzata Funds shall reasonably request to carry out more effectively the provisions
  and purposes of this Agreement. From time to time after the date of this
  Agreement, each Wayzata Fund shall deliver or cause to be delivered to the
  Corporation and the Company such further documents and instruments and shall
  do and cause to be done such further acts as the Corporation and the Company
  Funds shall reasonably request to carry out more effectively the provisions
  and purposes of this Agreement; provided that no party hereto shall be
  required to make any representations or warranties except as and to the
  extent provided herein. Section 9.02 No Transfer or Encumbrance. Between the
  date hereof and each of the Initial Closing Date and, if applicable, the
  Over-Allotment Closing Date and except as specifically disclosed in the
  Prospectus, the Company shall not issue, grant, sell, transfer, pledge or
  otherwise hypothecate any additional Common Units or any rights to any Common
  Units; provided that the Company may and shall implement the stock split
  contemplated by the LLC Agreement. Between the date hereof and each of the
  Over-Allotment Closing Date and except as specifically disclosed in the
  Prospectus, the Wayzata Funds shall not sell, transfer, pledge or otherwise
  hypothecate any additional Common Units or any rights to any Common Units; provided
  that the Wayzata Funds may participate in the stock split contemplated by the
  LLC Agreement and may deliver Common Units to the Company or to the
  Corporation in accordance with this Agreement. Section 9.03 Conduct of the
  Business. Between the date hereof and each of the Initial Closing Date and,
  if applicable, the Over-Allotment Closing Date and except as specifically
  disclosed in the Prospectus, the Company shall (i) conduct the business of
  the Company in the ordinary course consistent with past practice, (ii) use
  all commercially reasonable efforts to (A) retain the services of its key
  employees, (B) preserve the Company’s relationships with material customers,
  suppliers, sponsors, licensees and creditors, and (C) maintain and keep the
  Company’s properties and assets in as good repair and condition as at
  present, ordinary wear and tear excepted, (iii) maintain its capital
  structure as it exists on the date of this Agreement, except as specifically
  contemplated hereunder. 1 NTD: To be 30 days after the date of the
  Underwriting Agreement. 

  

 

	
  

  	
  15 DRAFT
  10-14-2014#86439997v1 ARTICLE X. MISCELLANEOUS Section 10.01 Governing Law;
  Consent to Jurisdiction and Service of Process; Waiver of Jury Trial. (a)
  This Agreement shall be governed by and construed in all respects in
  accordance with the laws of the State of Delaware without giving effect to
  principles of conflicts of law that would result in the application of the
  laws of any other jurisdiction. (b) Each of the parties hereto hereby
  irrevocably submits to the non-exclusive jurisdiction of the United States
  District Court for the District of Delaware for the purposes of any suit,
  action o other proceeding arising out of this Agreement, any related
  agreement or any transaction contemplated hereby or thereby. Each of the
  parties hereto hereby further agrees that service of any process, summons,
  notice or document by U.S. registered mail to such party’s respective address
  set forth above shall be effective service of process for any action, suit or
  proceeding with respect to any matters as to which it has submitted to
  jurisdiction in this paragraph. Each of the parties hereto hereby irrevocably
  and unconditionally waives any objection to the laying of venue of any
  action, suit or proceeding arising out of this Agreement, any related
  agreement or any transaction contemplated hereby or thereby in the United
  States District Court for the District of Delaware, and hereby further
  irrevocably and unconditionally waives and agrees not to plead or claim in
  any such court that any such action, suit or proceeding brought in any such
  court has been brought in an inconvenient forum. (c) AS A SPECIFICALLY
  BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS
  AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY
  HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR
  PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE
  MATTERS CONTEMPLATED HEREBY. Section 10.02 Notices. All notices, demands or
  other communications to be given under or by reason of this Agreement shall
  be in writing and shall be deemed to have been received when delivered
  personally, or when transmitted by overnight delivery service, addressed as
  follows: If to the Corporation: Neff Corporation 3750 N.W. 87th Avenue, Suite
  400 Miami, Florida 33178 Attention: Chief Financial Officer Fax: (305)
  513-4156 with a copy to: Latham & Watkins LLP 885 Third Avenue 

  

 

	
  

  	
  16 DRAFT
  10-14-2014#86439997v1 New York, NY 10022 Attention: Dennis D. Lamont, Esq.
  Fax: (212) 751-4864 If to the Company: Neff Holdings LLC 3750 N.W. 87th
  Avenue, Suite 400 Miami, Florida 33178 Attention: Chief Financial Officer
  Fax: (305) 513-4156 with a copy to: Latham & Watkins LLP 885 Third Avenue
  New York, NY 10022 Attention: Dennis D. Lamont, Esq. Fax: (212) 751-4864 If
  to any Wayzata Fund: Wayzata Opportunities Fund II, L.P. Wayzata
  Opportunities Fund Offshore II, L.P. c/o Wayzata Investment Partners LLC 701
  East Lake Street, Suite 300 Wayzata, Minnesota 55391 Attn: [Ray Wallander]
  Fax: [(952) 345-8901] Any party to this Agreement may change its address for
  notices, demands and other communications under this Agreement by giving
  notice of such change to the other party hereto in accordance with this
  Section 10.02. Section 10.03 Survival. The representations, warranties,
  covenants and agreements made herein shall survive any investigation made by
  any of the parties hereto and the closing of the transactions contemplated
  hereby. Section 10.04 Benefit of Parties; Assignment. This Agreement shall be
  binding upon and shall inure to the benefit of the parties hereto and their
  respective successors, legal representatives and permitted assigns. This
  Agreement may not be assigned by any party without the prior written consent
  of the other parties to this Agreement, and any assignment without such
  consent shall be null and void. Nothing herein contained shall confer or is
  intended to confer on any third party or entity that is not a party to this
  Agreement any rights under this Agreement. 

  

 

	
  

  	
  17 DRAFT
  10-14-2014#86439997v1 Section 10.05 Amendment. This Agreement may not be
  amended, modified, altered or supplemented except by means of a written
  instrument executed on behalf of each of the Corporation, the Company and
  each Wayzata Fund. Section 10.06 Waiver. No failure on the part of either
  party hereto to exercise any power, right, privilege or remedy under this
  Agreement, and no delay on the part of either party hereto in exercising any
  power, right, privilege or remedy under this Agreement, shall operate as a
  waiver thereof; and no single or partial exercise of any such power, right,
  privilege or remedy shall preclude any other or further exercise thereof or
  of any other power, right, privilege or remedy. Section 10.07 Severability.
  If any provision of this Agreement is held invalid or unenforceable by any
  court of competent jurisdiction, the other provisions of this Agreement will
  remain in full force and effect. Any provision of this Agreement held invalid
  or unenforceable only in part or degree will remain in full force and effect
  to the extent not held invalid or unenforceable. Section 10.08 Entire
  Agreement. This Agreement sets forth the entire understanding of the parties
  hereto and supersedes all other agreements and understandings between the
  parties hereto relating to the subject matter hereof. Section 10.09
  Counterparts and Facsimiles. This Agreement may be executed in one or more
  counterparts, all of which shall be considered one and the same agreement,
  and shall become effective when one or more counterparts have been signed by
  each of the parties and delivered to the other. The parties hereto may
  execute the signature pages hereof and exchange such signature pages by
  facsimile transmission. Section 10.10 Interpretation of Agreement. (a) As
  used in this Agreement, the words “include” and “including, “and variations
  thereof, shall not be deemed to be terms of limitation, and shall be deemed
  to be followed by the words “without limitation.” (b) Unless otherwise
  specified, references in this Agreement to “Articles,” “Sections” and
  “Exhibits” are intended to refer to Articles and Sections of, and Exhibits
  to, this Agreement. (c) The Section headings contained in this Agreement are
  solely for the purpose of reference, are not part of the agreement of the
  parties and shall not in any way affect the meaning or interpretation of this
  Agreement. (d) Each party hereto and its counsel cooperated in drafting and
  preparation of this Agreement and the documents referred to in this
  Agreement. Any rule of law or any legal decision that would require
  interpretation of any ambiguities in this Agreement against the party that
  drafted it is of no application and is hereby expressly waived. [Signature
  pages follow] 

  

 

	
  

  	
  [Signature Page
  to Common Unit Purchase Agreement] DRAFT 10-14-2014#86439997v1 IN WITNESS
  WHEREOF, the parties hereto have caused this Agreement to be executed on the
  day and year first above written. NEFF HOLDINGS LLC By: Name: Title: NEFF
  CORPORATION By: Name: Title: WAYZATA OPPORTUNITIES FUND II, L.P. By: WOF II
  GP, L.P., its General Partner By: WOF II GP, LLC, its General Partner By:
  ________________________________ Name: Title: WAYZATA OPPORTUNITIES FUND
  OFFSHORE II, L.P. By: WOFO II GP, L.P., its General Partner By: WOFO II GP,
  LLC, its General Partner By: ________________________________ Name: Title:
  By: Name: Title: 

  

 

	
  

  	
  DRAFT
  10-14-2014#86439997v1 Exhibit A FORM OF LLC AGREEMENT [See attached] 

  

 

	
  

  	
  #86469808v2
  EXHIBIT D FORM OF TAX RECEIVABLE AGREEMENT [see attached] 

  

 

	
  

  	
  NY\6516862.10
  DRAFT 10-14-2014#86439996v1 Posting Version TAX RECEIVABLE AGREEMENT by and
  among NEFF CORPORATION WAYZATA OPPORTUNITIES FUND II, L.P. WAYZATA
  OPPORTUNITIES FUND OFFSHORE II, L.P. the several LLC OPTION HOLDERS (as
  defined herein) OTHER MEMBERS OF NEFF HOLDINGS LLC FROM TIME TO TIME PARTY
  HERETO Dated as of [•], 2014 

  

 

	
  

  	
  i DRAFT
  10-14-2014#86439996v1 CONTENTS Page Article I. DEFINITIONS 2 Section 1.1
  Definitions 2 Section 1.2 Rules of Construction 10 Article II. DETERMINATION
  OF REALIZED TAX BENEFIT 11 Section 2.1 Basis Adjustments; Neff Holdings 754
  Election; Reverse 704(c) Allocations 11 Section 2.2 Basis and Reverse 704(c)
  Schedules 12 Section 2.3 Tax Benefit Schedules 13 Section 2.4 Procedures;
  Amendments 14 Article III. TAX BENEFIT PAYMENTS 15 Section 3.1 Timing and
  Amount of Tax Benefit Payments 15 Section 3.2 No Duplicative Payments 17
  Section 3.3 Pro-Ration of Payments as Between the Members 18 Section 3.4
  Optional Estimated Payment Procedure 18 Section 3.5 Changes; Reserves;
  Suspension of Payments 19 Error! Bookmark not defined. Article IV.
  TERMINATION 21 Section 4.1 Early Termination of Agreement; Breach of
  Agreement; Change in Control 21 Section 4.2 Early Termination Notice 22
  Section 4.3 Payment Upon Early Termination 23 Article V. SUBORDINATION AND
  LATE PAYMENTS 24 Section 5.1 Subordination 24 Section 5.2 Late Payments by
  the Corporation 24 Article VI. TAX MATTERS; CONSISTENCY; COOPERATION 24
  Section 6.1 Participation in the Corporation’s and Neff Holdings’s Tax
  Matters 24 Section 6.2 Consistency 24 Section 6.3 Cooperation 25 Article VII.
  MISCELLANEOUS 25 Section 7.1 Notices 25 Section 7.2 Counterparts 26 

  

 

	
  

  	
  ii DRAFT
  10-14-2014#86439996v1 Section 7.3 Entire Agreement; No Third Party
  Beneficiaries 26 Section 7.4 Governing Law 26 Section 7.5 Severability 26
  Section 7.6 Assignments; Amendments; Successors; No Waiver 27 Section 7.7
  Titles and Subtitles 28 Section 7.8 Resolution of Disputes 28 Section 7.9
  Reconciliation 29 Section 7.10 Withholding 30 Section 7.11 Admission of the
  Corporation into a Consolidated Group; Transfers of Corporate Assets 30
  Section 7.12 Confidentiality 30 Section 7.13 Change in Law 31 Section 7.14
  Interest Rate Limitation 31 Section 7.15 Independent Nature of Rights and
  Obligations 32 Exhibits Exhibit A - Form of Joinder Agreement 

  

 

	
  

  	
  DRAFT
  10-14-2014#86439996v1 TAX RECEIVABLE AGREEMENT This TAX RECEIVABLE AGREEMENT
  (this “Agreement”), dated as of [.], 2014, is hereby entered into by and
  among Neff Corporation, a Delaware corporation (the “Corporation”), Neff
  Holdings LLC, a Delaware limited liability company (“Neff Holdings”), each of
  the Members from time to time party hereto and the LLC Option Holders.
  Capitalized terms used but not otherwise defined herein have the respective
  meanings set forth in Section 1.01. RECITALS WHEREAS, Neff Holdings is
  treated as a partnership for U.S. federal income tax purposes; WHEREAS, each
  of the members of Neff Holdings other than the Corporation (such members,
  together with each other Person who becomes party hereto by satisfying the Joinder
  Requirement, the “Members”) owns (or, in the case of such other Persons, will
  own) common limited liability company interests in Neff Holdings (the
  “Units”); WHEREAS, the Corporation is the managing member of Neff Holdings,
  and is the registered owner and will be the registered owner of Units;
  WHEREAS, on the date hereof and exclusive of the Over-Allotment Option (as
  defined below), the Corporation issued [.] shares of its Class A common
  stock, par value $0.01 per share (the “Class A Common Stock”) to certain
  purchasers in an initial public offering of its Class A Common Stock (the
  “IPO”) in exchange for net proceeds of approximately $[.] million, after
  deducting underwriting discounts and commissions but before offering
  expenses; WHEREAS, on the date hereof, the Corporation used $[.] million of
  the net proceeds from the IPO to acquire newly-issued Units directly from
  Neff Holdings (the “Corporation’s Capital Contribution”), which proceeds will
  be used to repay or prepay certain indebtedness of Neff Holdings and to pay
  the fees and expenses from the IPO; WHEREAS, on and after the date hereof,
  the Corporation may issue additional Class A Common Stock in connection with
  the IPO as a result of the exercise by the underwriters of their
  over-allotment option (the “Over-Allotment Option”) and, if the
  Over-Allotment Option is in fact exercised in whole or in part, any
  additional net proceeds0F will be used by the Corporation to purchase Units
  of Neff Holdings directly from Wayzata at a price equal to the price per
  share in the IPO, less underwriting discounts and commissions (a “Sale”);
  WHEREAS, on and after the date hereof, pursuant to Article XI of the LLC
  Agreement, each Member has the right, in its sole discretion, from time to
  time to require Neff Holdings to redeem (a “Redemption”) all or a portion of
  such Member’s Units for cash or Class A Common Stock; provided that, at the
  election of the Corporation in its sole discretion, the Corporation may
  effect a direct exchange (a “Direct Exchange”) of such cash or shares of
  Class A Common Stock for such Units; 

  

 

	
  

  	
  2 DRAFT
  10-14-2014#86439996v1 WHEREAS, certain members of management of Neff Holdings
  and certain nonexecutive members of its board of managers (the “LLC Option
  Holders”) have existing options to acquire Units, which options may be
  exercised from time to time by the holder thereof in accordance with the
  terms thereof, whereupon such Person will be admitted as a member of
  Holdings, and it is anticipated that substantially simultaneous with such
  exercise such Person will become a Member; WHEREAS, Neff Holdings and any
  direct or indirect subsidiary (owned through a chain of pass-through
  entities) of Neff Holdings that is treated as a partnership for U.S. federal
  income tax purposes (together with Neff Holdings and any direct or indirect
  subsidiary (owned through a chain of pass-through entities) of Neff Holdings
  that is treated as a disregarded entity for U.S. federal income tax purposes,
  the “Neff Holdings Group”) will have in effect an election under Section 754
  of the Code (as defined herein) for the Taxable Year (as defined herein) in
  which any Exchange (as defined below) occurs, which election will result in
  an adjustment to the Corporation’s share of the tax basis of the assets owned
  by the Neff Holdings Group as of the date of the Exchange, with a consequent
  result on the taxable income subsequently derived therefrom; and WHEREAS, the
  parties to this Agreement desire to provide for certain payments and make
  certain arrangements with respect to any tax benefits to be derived by the
  Corporation as the result of Exchanges and the receipt of payments under this
  Agreement, as contemplated by the LLC Agreement. NOW, THEREFORE, in
  consideration of the foregoing and the respective covenants and agreements
  set forth herein, and intending to be legally bound hereby, the parties
  hereto agree as follows: ARTICLE I. DEFINITIONS Section 1.1 Definitions. As
  used in this Agreement, the terms set forth in this Article I shall have the
  following meanings (such meanings to be equally applicable to both (i) the
  singular and plural and (ii) the active and passive forms of the terms
  defined). “Actual Interest Amount” is defined in Section 3.1(b)(vii) of this
  Agreement. “Advisory Firm” means an accounting firm that is nationally
  recognized as being expert in Covered Tax matters and not an Affiliate of the
  Corporation, selected by the Corporation.1F 1 “Advisory Firm Letter” means a
  letter, that has been prepared by the Advisory Firm used by the Corporation
  in connection with the performance of its obligations under this Agreement,
  which states that the relevant Schedules, notices or other information to be
  provided by the Corporation to the Members, along with all supporting
  schedules and work papers, were prepared in a manner that is consistent with
  the terms of this Agreement and, to the extent not expressly provided in this
  Agreement, on a reasonable basis in light of the facts and law in 1 Note to
  draft: consider specifying Deloitte as the initial Advisory Firm 

  

 

	
  

  	
  3 DRAFT 10-14-2014#86439996v1
  existence on the date such Schedules, notices or other information were
  delivered by the Corporation to the Members. “Affiliate” means, with respect
  to any Person, any other Person that directly or indirectly, through one or
  more intermediaries, Controls, is Controlled by, or is under common Control
  with, such first Person. “Agreed Rate” means LIBOR plus 100 basis points.
  “Agreement” is defined in the preamble. “Amended Schedule” is defined in
  Section 2.4(b) of this Agreement. “Attributable” is defined in Section
  3.1(b)(i) of this Agreement. “Audit Committee” means the audit committee of
  the Board. “Basis Adjustment” means the increase or decrease to the tax basis
  of, or the Corporation’s share of, the tax basis of the Reference Assets (i)
  under Section 734(b), 743(b) and 754 of the Code and, in each case, the
  comparable sections of U.S. state and local tax law (in situations where,
  following an Exchange, Neff Holdings remains in existence as an entity for
  tax purposes) and (ii) under Sections 732 and 1012 of the Code and, in each
  case, the comparable sections of U.S. state and local tax law (in situations
  where, as a result of one or more Exchanges, Neff Holdings becomes an entity
  that is disregarded as separate from its owner for tax purposes), in each
  case, as a result of any Exchange and any payments made under this Agreement.
  Notwithstanding any other provision of this Agreement, the amount of any
  Basis Adjustment resulting from an Exchange of one or more Units shall be
  determined without regard to any Pre-Exchange Transfer of such Units and as
  if any such Pre-Exchange Transfer had not occurred to the extent that such
  Pre-Exchange Transfer resulted in the partial or complete elimination of a
  future Basis Adjustment that the Corporation would have otherwise obtained
  pursuant to the terms of this Agreement. “Basis Schedule” is defined in
  Section 2.2 of this Agreement. “Beneficial Owner” means, with respect to any
  security, a Person who directly or indirectly, through any contract, arrangement,
  understanding, relationship or otherwise, has or shares: (i) voting power,
  which includes the power to vote, or to direct the voting of, with respect to
  such security and/or (ii) investment power, which includes the power to
  dispose of, or to direct the disposition of, such security. “Board” means the
  Board of Directors of the Corporation. “Book-Tax Disparity” means, with
  respect to any Reference Asset, as of the date of the Corporation’s Capital
  Contribution, the difference between the Book Value (as defined in the LLC
  Agreement) of such Reference Asset and the adjusted basis thereof for U.S.
  federal income tax purposes as of such date. 

  

 

	
  

  	
  4 DRAFT
  10-14-2014#86439996v1 “Business Day” means any day excluding Saturday, Sunday
  and any day that is a legal holiday under the laws of the State of New York
  or is a day on which banking institutions located in New York are closed.
  “Change Notice” is defined in Section 3.5(a) of this Agreement. “Change of
  Control” means the occurrence of any of the following events:2F 2 (1) (A) any
  “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the
  Securities and Exchange Act of 1934, as amended, or any successor provisions
  thereto (the “Exchange Act”) but excluding any employee benefit plan of such
  person and its subsidiaries, and any person or entity acting in its capacity
  as trustee, agent or other fiduciary or administrator of any such plan, and
  excluding the Permitted Investors) shall become the “beneficial owner”
  (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act),
  directly or indirectly, of voting stock of the Corporation entitling such
  “person” or “group” to cast more than thirty-five percent (35%) of the votes
  eligible to be cast in an election of directors of the Corporation and (B)
  the Permitted Investors shall own outstanding voting stock of the Corporation
  having a lesser percentage of the votes eligible to be cast in such an
  election of the Corporation at such time than the “person” or “group” in the
  foregoing clause (A); (2) the Corporation ceases to be the sole managing
  member of Neff Holdings; (3) the Corporation or any of its Subsidiaries
  acquires, by merger, consolidation or otherwise, assets with a gross fair
  market value, and/or equity interests in an entity with a gross enterprise
  value, in excess of 50% of the gross enterprise value of the Corporation on
  the date hereof; provided that for this purpose, the gross enterprise value
  of the Corporation on the date hereof shall be the fair market value of the
  outstanding shares of stock of the Corporation (based on the price per share
  in the IPO) plus the amount of the Corporation’s liabilities as of the date
  of the IPO; or (4) a “change of control” or similar defined term in any
  agreement governing indebtedness of Neff Holdings or any of its Subsidiaries
  with aggregate principal amount or aggregate commitments outstanding in
  excess of $25,000,000. Notwithstanding the foregoing, a “Change of Control”
  shall not be deemed to have occurred by virtue of the consummation of any
  transaction or series of integrated transactions immediately following which
  the record holders of the Class A Common Stock and Class B Common Stock
  immediately prior to such transaction or series of transactions continue to
  have substantially the same proportionate ownership in and voting control
  over, and own substantially all of the shares of, an entity which owns all or
  substantially all of the assets of the Corporation immediately following such
  transaction or series of transactions. 2 INTD: Conform to what we end up with
  in our amended credit agreements (amendments are a work in process). 

  

 

	
  

  	
  5 DRAFT
  10-14-2014#86439996v1 “Code” means the U.S. Internal Revenue Code of 1986, as
  amended, and applicable Treasury Regulations promulgated thereunder.
  “Control” means the possession, direct or indirect, of the power to direct or
  cause the direction of the management and policies of a Person, whether
  through ownership of voting securities, by contract or otherwise.
  “Corporation” is defined in the preamble to this Agreement. “Corporation’s
  Capital Contribution” is defined in the recitals to this Agreement. “Covered
  Taxes” means any and all U.S. federal, state, local and foreign taxes,
  assessments or similar chargers that are based on or measure with respect to
  net income or profits, whether as an exclusive or an alternative basis, and
  any interest related thereto. “Cumulative Net Realized Tax Benefit” is
  defined in Section 3.1(b)(iii) of this Agreement. “Default Rate” means LIBOR
  plus 500 basis points. “Default Rate Interest” is defined in Section
  3.1(b)(ix) of this Agreement. “Determination” shall have the meaning ascribed
  to such term in Section 1313(a) of the Code or similar provision of U.S.
  state tax law, as applicable, or any other event (including the execution of
  IRS Form 870-AD) that finally and conclusively establishes the amount of any
  liability for tax. “Direct Exchange” is defined in the recitals to this
  agreement. “Dispute” is defined in Section 7.8(a) of this Agreement. “Early
  Termination Effective Date” means the date of an Early Termination Notice for
  purposes of determining the Early Termination Payment. “Early Termination
  Notice” is defined in Section 4.2 of this Agreement. “Early Termination
  Payment” is defined in Section 4.3(b) of this Agreement. “Early Termination
  Rate” means the lesser of (i) 6.50% per annum, compounded annually, and (ii)
  the Agreed Rate. “Early Termination Reference Date” is defined in Section 4.2
  of this Agreement. “Early Termination Schedule” is defined in Section 4.2 of
  this Agreement. “Estimated Tax Benefit Payment” is defined in Section 3.4 of
  this Agreement. “Exchange” means any Sale, Direct Exchange, Redemption or
  Section 734(b) Distribution. 

  

 

	
  

  	
  6 DRAFT
  10-14-2014#86439996v1 “Exchange Date” means the date of any Exchange. “Expert”
  is defined in Section 7.9 of this Agreement. “Extension Rate Interest” is
  defined in Section 3.1(b)(viii) of this Agreement. “Final Payment Date” means
  any date on which a payment is required to be made pursuant to this
  Agreement. For the avoidance of doubt, the Final Payment Date in respect of a
  Tax Benefit Payment is determined pursuant to Section 3.1(a) of this
  Agreement. “GAAP” means generally accepted accounting principles in the
  United States, as in effect from time to time; provided, however, that if the
  Corporation notifies the Members that the Corporation requests an amendment
  to any provision hereof to eliminate the effect of any change in GAAP or in
  the application thereof occurring after the date of this Agreement (including
  through the adoption of International Financial Reporting Standards and
  applicable accounting requirements set by the International Accounting
  Standards Board or any successor thereto, “IFRS”) on the operation of such
  provision (or if the Members notify the Corporation that they request an
  amendment to any provision hereof for such purpose), regardless of whether
  any such notice is given before or after such change in GAAP or in the
  application thereof (including through the adoption of IFRS), then such
  provision shall be interpreted on the basis of GAAP as in effect and applied
  immediately before such change shall have become effective until such notice
  shall have been withdrawn or such provision amended in accordance herewith.
  “Hypothetical Tax Liability” means, with respect to any Taxable Year, the
  hypothetical liability of the Corporation that would arise in respect of
  Covered Taxes, using the same methods, elections, conventions and similar
  practices used on the actual relevant Tax Returns of the Corporation but (i) calculating
  depreciation, amortization, or other similar deductions, or otherwise
  calculating any items of income, gain, or loss, using the Non-Adjusted Tax
  Basis as reflected on the Basis Schedule, including amendments thereto for
  the Taxable Year, (ii) disregarding the requirement under Treasury Regulation
  Sections 1.704-1(b)(2)(iv)(f)(4) and 1.704-1(b)(4)(i) to make Reverse 704(c)
  Allocations and (iii) excluding any deduction attributable to Imputed
  Interest or Actual Interest Amounts for the Taxable Year. For the avoidance
  of doubt, the Hypothetical Tax Liability shall be determined without taking
  into account the carryover or carryback of any tax item (or portions thereof)
  that is attributable to any of the items described in the previous sentence.
  “Imputed Interest” is defined in Section 3.1(b)(vi) of this Agreement.
  “Independent Directors” means the members of the Board who are “independent”
  under the standards set forth in Rule 10A-3 promulgated under the U.S.
  Securities Exchange Act of 1933, as amended, and the corresponding rules of
  the applicable exchange on which the Class A Common Stock is traded or
  quoted.3F 3 “IPO” is defined in the recitals to this Agreement 3 INTD: There
  is no single standard for “independent”, so I’ve used the audit committee
  independence requirements which will exclude anyone affiliated with the
  Corporation (i.e., Wayzata directors would not be independent for this
  purpose). 

  

 

	
  

  	
  7 DRAFT
  10-14-2014#86439996v1 “IRS” means the U.S. Internal Revenue Service.
  “Joinder” means a joinder to this Agreement, in form and substance
  substantially similar to Exhibit A to this Agreement. “Joinder Requirement”
  is defined in Section 7.6(a) of this Agreement. “LIBOR” means during any
  period, a rate per annum equal to (i) the ICE LIBOR rate for a period of one
  year (“ICE LIBOR”), as published on the applicable Bloomberg screen page (or
  such other commercially available source providing quotations of ICE LIBOR as
  may be designated by the Corporation from time to time) at approximately
  11:00 a.m., London time, two (2) Business Days prior to the commencement of
  such period, for dollar deposits (for delivery on the first day of such
  period) with a term equivalent to such period. “LLC Agreement” means that
  certain Second Amended and Restated Limited Liability Company Agreement of
  Neff Holdings LLC, dated as of the date hereof, as such agreement may be
  further amended, restated, supplemented and/or otherwise modified from time
  to time. “LLC Option Holder” is defined in the recitals to this Agreement. “Market
  Value” shall mean the Common Unit Redemption Price, as defined in the LLC
  Agreement, determined as of an Early Termination Date. “Members” is defined
  in the recitals to this Agreement. “Neff Holdings” is defined in the recitals
  to this Agreement. “Net Tax Benefit” is defined in Section 3.1(b)(ii) of this
  Agreement. “Non-Adjusted Tax Basis” means, with respect to any Reference
  Asset at any time, the tax basis that such asset would have had at such time
  if no Basis Adjustments had been made. “Objection Notice” is defined in
  Section 2.4(a)(i) of this Agreement. “Over-Allotment Option” is defined in
  the recitals to this Agreement. “Parties” means the parties named on the
  signature pages to this agreement and each additional party that satisfies
  the Joinder Requirement, in each case with their respective successors and
  assigns. “Person” means any individual, corporation, firm, partnership, joint
  venture, limited liability company, estate, trust, business association,
  organization, governmental entity or other entity. “Permitted Investors”
  shall mean private investment funds managed by Wayzata Investment Partners,
  LLC and its Affiliates (excluding any portfolio company). 

  

 

	
  

  	
  8 DRAFT
  10-14-2014#86439996v1 “Pre-Exchange Transfer” means any transfer of one or more
  Units (including upon the death of a Member or upon the issuance of Units
  resulting from the exercise of an option to acquire such Units) (i) that
  occurs after the IPO but prior to an Exchange of such Units and (ii) to which
  Section 743(b) of the Code applies. “Realized Tax Benefit” is defined in
  Section 3.1(b)(iv) of this Agreement. “Realized Tax Detriment” is defined in
  Section 3.1(b)(v) of this Agreement. “Reconciliation Dispute” is defined in
  Section 7.9 of this Agreement. “Reconciliation Procedures” is defined in
  Section 2.4(a) of this Agreement. “Redemption” has the meaning in the
  recitals to this Agreement. “Reference Asset” means any tangible or
  intangible asset of Neff Holdings or any of its successors or assigns, and
  whether held directly by NEFF Holdings or indirectly by Neff Holdings through
  any entity in which Neff Holdings now holds or may subsequently hold an
  ownership interest, at the time of an Exchange. A Reference Asset also
  includes any asset the tax basis of which is determined, in whole or in part,
  by reference to the tax basis of an asset that is described in the preceding
  sentence, including “substituted basis property” within the meaning of
  Section 7701(a)(42) of the Code. “Reserve Notice” is defined in Section
  3.5(b). “Reverse 704(c) Allocations” means, in accordance with Treasury
  Regulation Sections 1.704-1(b)(2)(iv)(f)(4) and 1.704-1(b)(4)(i), allocations
  of items of taxable income, gain, loss and deduction to take into account any
  Book-Tax Disparity of any Reference Asset on the date of the Corporation’s
  Capital Contribution in the same manner as under Section 704(c) of the Code
  using the traditional method as described in Treasury Regulation Section
  1.704-3(b). “Reverse 704(c) Schedule” is defined in Section 2.2 of this Agreement
  “Sale” is defined in the recitals to this Agreement. “Schedule” means any of
  the following: (i) a Basis Schedule, (ii) Reverse 704(c) Schedule, (iii) a
  Tax Benefit Schedule, or (iv) the Early Termination Schedule, and, in each
  case, any amendments thereto. “Section 734(b) Distribution” means any actual
  or deemed distribution to any Member by Neff Holdings to which Section
  734(b)(1) of the Code (or any similar sections of U.S. state and local tax
  law) applies. “Senior Obligations” is defined in Section 5.1 of this
  Agreement. “Subsidiary” means, with respect to any Person and as of the date
  of any determination, any other Person as to which such Person, owns,
  directly or indirectly, or otherwise controls, 

  

 

	
  

  	
  9 DRAFT
  10-14-2014#86439996v1 more than 50% of the voting power or other similar
  interests, or the sole general partner interest, or managing member or
  similar interest, of such Person. “Subsidiary Stock” means any stock or other
  equity interest in any subsidiary entity of the Corporation that is treated
  as a corporation for U.S. federal income tax purposes. “Tax Benefit Payment”
  is defined in Section 3.1(b) of this Agreement. “Tax Benefit Schedule” is
  defined in Section 2.3(a) of this Agreement. “Tax Return” means any return,
  declaration, report or similar statement required to be filed with respect to
  taxes (including any attached schedules), including, without limitation, any
  information return, claim for refund, amended return and declaration of
  estimated tax. “Taxable Year” means a taxable year of the Corporation as
  defined in Section 441(b) of the Code or comparable section of U.S. state or
  local tax law, as applicable (and, therefore, for the avoidance of doubt, may
  include a period of less than 12 months for which a Tax Return is made),
  ending on or after the closing date of the IPO. “Taxing Authority” shall mean
  any national, federal, state, county, municipal, or local government, or any
  subdivision, agency, commission or authority thereof, or any
  quasigovernmental body, or any other authority of any kind, exercising
  regulatory or other authority in relation to tax matters. “Termination
  Objection Notice” is defined in Section 4.2 of this Agreement. “Treasury
  Regulations” means the final, temporary, and (to the extent they can be
  relied upon) proposed regulations under the Code, as promulgated from time to
  time (including corresponding provisions and succeeding provisions) as in
  effect for the relevant taxable period. “True-Up” is defined in Section 3.4
  of this Agreement. “U.S.” means the United States of America. “Units” is
  defined in the recitals to this Agreement. “Valuation Assumptions” shall
  mean, as of an Early Termination Effective Date, the assumptions that: (1) in
  each Taxable Year ending on or after such Early Termination Effective Date, the
  Corporation will have taxable income sufficient to fully use the deductions
  arising from the Basis Adjustments, the Reverse 704(c) Allocations and the
  Imputed Interest during such Taxable Year or future Taxable Years (including,
  for the avoidance of doubt, Basis Adjustments and Imputed Interest that would
  result from future Tax Benefit Payments that would be paid in accordance with
  the Valuation Assumptions) in which such deductions would become available; 

  

 

	
  

  	
  10 DRAFT
  10-14-2014#86439996v1 (2) the U.S. federal income tax rates and U.S. state
  income tax rates that will be in effect for each such Taxable Year will be
  those specified for each such Taxable Year by the Code and other law as in
  effect on the Early Termination Effective Date, except to the extent any
  change to such tax rates for such Taxable Year have already been enacted into
  law; (3) all taxable income of the Corporation will be subject to the maximum
  applicable tax rates for each Covered Tax throughout the relevant period; (4)
  any loss carryovers or carrybacks generated by any Basis Adjustment, Reverse
  704(c) Allocations or Imputed Interest (including such Basis Adjustment and
  Imputed Interest generated as a result of payments under this Agreement) and
  available as of the date of the Early Termination Schedule will be used by
  the Corporation on a pro rata basis from the date of the Early Termination
  Schedule through the scheduled expiration date of such loss carryovers or
  carrybacks; (5) any non-amortizable assets (other than Subsidiary Stock) will
  be disposed of on the earlier of (i) the fifteenth anniversary of the
  applicable Basis Adjustment and (ii) the Early Termination Effective Date;
  (6) any Subsidiary Stock will be deemed never to be disposed of; (7) if, on
  the Early Termination Effective Date, (i) any Member has Units that have not
  been Exchanged, then such Units shall be deemed to be Exchanged for the
  Market Value of the shares of Class A Common Stock that would be received by
  such Member if such Units had been Exchanged on the Early Termination
  Effective Date, and such Member shall be deemed to receive the amount of cash
  such Member would have been entitled to pursuant to Section 4.3(a) had such
  Units actually been Exchanged on the Early Termination Effective Date and
  (ii) any LLC Option Holder has options that have not been exercised in
  exchange for Units, then such options shall be deemed to have been exercised
  in accordance with the terms thereof and such Units deemed to be received in
  connection with such exercise shall be deemed to be Exchanged for the Market
  Value of the shares of Class A Common Stock that would be received by such
  LLC Option Holder if such Units had been Exchanged on the Early Termination
  Effective Date, and such LLC Option Holder shall be deemed to receive the amount
  of cash such LLC Option Holder would have been entitled to pursuant to
  Section 4.3(a) had such options actually been exercised and such Units
  actually been Exchanged on the Early Termination Effective Date; and (8) any
  payment obligations pursuant to this Agreement will be satisfied on the date
  that any Tax Return to which such payment obligation relates is required to
  be filed excluding any extensions. “Wayzata” means Wayzata Opportunities Fund
  II, L.P. and Wayzata Opportunities Fund Offshore II, L.P. Section 1.2 Rules
  of Construction. Unless otherwise specified herein: 

  

 

	
  

  	
  11 DRAFT
  10-14-2014#86439996v1 (a) The meanings of defined terms are equally
  applicable to the singular and plural forms of the defined terms. (b) For
  purposes of interpretation of this Agreement: (i) The words “herein,”
  “hereto,” “hereof” and “hereunder” and words of similar import when used in
  any Loan Document shall refer to such Loan Document as a whole and not to any
  particular provision thereof. (ii) References in this Agreement to a
  Schedule, Article, Section, clause or sub-clause refer to the appropriate
  Schedule to, or Article, Section, clause or subclause in, this Agreement.
  (iii) References in this Agreement to dollars or “$” refer to the lawful
  currency of the United States of America. (iv) The term “including” is by way
  of example and not limitation. (v) The term “documents” includes any and all
  instruments, documents, agreements, certificates, notices, reports, financial
  statements and other writings, however evidenced, whether in physical or
  electronic form. (c) In the computation of periods of time from a specified
  date to a later specified date, the word “from” means “from and including;”
  the words “to” and “until” each mean “to but excluding;” and the word
  “through” means “to and including.” (d) Section headings herein are included
  for convenience of reference only and shall not affect the interpretation of
  this Agreement. (e) Unless otherwise expressly provided herein, (a)
  references to organization documents (including the LLC Agreement),
  agreements (including this Agreement) and other contractual instruments shall
  be deemed to include all subsequent amendments, restatements, extensions,
  supplements and other modifications thereto, but only to the extent that such
  amendments, restatements, extensions, supplements and other modifications are
  permitted hereby; and (b) references to any law (including the Code and the
  Treasury Regulations) shall include all statutory and regulatory provisions
  consolidating, amending, replacing, supplementing or interpreting such Law.
  ARTICLE II. DETERMINATION OF REALIZED TAX BENEFIT Section 2.1 Basis
  Adjustments; Neff Holdings 754 Election; Reverse 704(c) Allocations. (a)
  Basis Adjustments. (i) The Parties acknowledge and agree that (A) each Sale
  and each Direct Exchange shall give rise to Basis Adjustments and (B) each
  Redemption using cash or Class A 

  

 

	
  

  	
  12 DRAFT
  10-14-2014#86439996v1 Common Stock contributed to Neff Holdings by the
  Corporation shall be treated as a direct purchase of Units by the Corporation
  from the applicable Member pursuant to Section 707(a)(2)(B) of the Code that
  will give rise to Basis Adjustments. In connection with any Sale, Direct
  Exchange or Redemption, the Parties acknowledge and agree that pursuant to
  applicable law the Corporation’s share of the basis in the Reference Assets
  shall be increased by the excess, if any, of (A) the sum of (x) the Market
  Value of Class A Common Stock or the cash transferred to a Member pursuant to
  an Exchange as payment for the Units, (y) the amount of payments made
  pursuant to this Agreement with respect to such Exchange and (z) the amount
  of liabilities allocated to the Units acquired pursuant to the Exchange, over
  (B) the Corporation’s proportionate share of the basis of the Referenced
  Assets immediately after the Exchange attributable to the Units exchanged,
  determined as if each member of the Neff Holdings Group remains in existence
  as an entity for tax purposes and no member of the Neff Holdings Group made
  the election provided by Section 754 of the Code. (ii) The Parties
  acknowledge and agree that the Corporation’s Capital Contribution and the use
  of such proceeds to repay and prepay certain indebtedness of Neff Holdings
  may give rise to a Section 734(b) Distribution to Wayzata that will give rise
  to Basis Adjustments. In connection with any Section 734(b) Distribution, the
  Parties acknowledge and agree that pursuant to applicable law, Neff Holding’s
  basis in the Reference Assets shall be increased by (A) the amount of any gain
  recognized pursuant to Section 731(a)(1) of the Code by the Member or Members
  to whom the Section 734(b) Distribution was made or deemed made and (B) in
  the case of distributed property to which Section 732(a)(2) or (b) of the
  Code applies, the excess, if any, of (x) Neff Holding’s adjusted basis in
  property distributed to the relevant Member (as adjusted by Section 732(d) of
  the Code) immediately prior to the distribution over (y) the adjusted basis
  of such property in the hands of such Member as determined under Section 732
  of the Code. For the avoidance of doubt, payments made under this Agreement
  shall not be treated as resulting in a Basis Adjustment to the extent such
  payments are treated as Imputed Interest or are Actual Interest Amounts. (b)
  Neff Holdings Section 754 Election. In its capacity as the sole managing
  member of Neff Holdings, the Corporation will ensure that, on and after the
  date hereof and continuing throughout the term of this Agreement, Neff
  Holdings and each of its direct and indirect Subsidiaries that is treated as
  a partnership for U.S. federal income tax purposes will have in effect an
  election under Section 754 of the Code (and under any similar provisions of
  applicable U.S. state or local law). (c) Reverse 704(c) Allocations. The
  Parties acknowledge and agree that as a result of the Reverse 704(c)
  Allocations, the Corporation’s share of amortization and depreciation
  deductions for U.S. federal income tax purposes (and applicable state and
  local income tax purposes) as a Member of Neff Holdings will be increased
  from that which would have been allocated to the Corporation without regard
  to the requirement under Treasury Regulation Sections 1.704-1(b)(2)(iv)(f)(4)
  and 1.704-1(b)(4)(i) to make Reverse 704(c) Allocations. Section 2.2 Basis
  and Reverse 704(c) Schedules. Within thirty (30) calendar days after the
  filing of the U.S. federal income Tax Return of the Corporation for each
  relevant 

  

 

	
  

  	
  13 DRAFT
  10-14-2014#86439996v1 Taxable Year, the Corporation shall deliver to the
  Members (i) a schedule (the “Basis Schedule”) that shows, in reasonable
  detail as necessary in order to understand the calculations performed under
  this Agreement: (a) the Non-Adjusted Tax Basis of the Reference Assets as of
  each applicable Exchange Date; (b) the Basis Adjustments with respect to the
  Reference Assets as a result of the relevant Exchanges effected in such
  Taxable Year, calculated (I) in the aggregate (including Exchanges
  attributable to all Members) and (II) solely with respect to Exchanges by each
  Member; (c) the period (or periods) over which the Reference Assets are
  amortizable and/or depreciable; and (d) the period (or periods) over which
  each Basis Adjustment is amortizable and/or depreciable and (ii) a schedule
  (the “Reverse 704(c) Schedule”) that shows, in reasonable detail as necessary
  in order to understand the calculations performed under this Agreement, (x)
  allocations of Neff Holding’s items of income, gain, loss and depreciation
  without regard to any requirement to make Reverse 704(c) Allocations, (y) the
  Reverse Section 704(c) Allocations and (z) the period (or periods) over which
  the Reference Assets are amortizable and/or depreciable. The Basis Schedule
  and Reverse 704(c) Schedule will become final and binding on the Parties
  pursuant to the procedures set forth in Section 2.4(a) and may be amended by
  the Parties pursuant to the procedures set forth in Section 2.4(b). Section
  2.3 Tax Benefit Schedules. (a) Tax Benefit Schedule. Within thirty (30)
  calendar days after the filing of the U.S. federal income Tax Return of the
  Corporation for any Taxable Year in which there is a Realized Tax Benefit or
  Realized Tax Detriment, the Corporation shall provide to the Members a
  schedule showing, in reasonable detail, the calculation of the Realized Tax
  Benefit or Realized Tax Detriment for such Taxable Year (a “Tax Benefit
  Schedule”). The Tax Benefit Schedule will become final and binding on the
  Parties pursuant to the procedures set forth in Section 2.4(a), and may be
  amended by the Parties pursuant to the procedures set forth in Section
  2.4(b). (b) Applicable Principles. Subject to the provisions of this
  Agreement, the Realized Tax Benefit or Realized Tax Detriment for each
  Taxable Year is intended to measure the decrease or increase in the actual liability
  of the Corporation for Covered Taxes for such Taxable Year attributable to
  the Basis Adjustments, Reverse 704(c) Allocations, Imputed Interest, and
  Actual Interest Amounts, as determined using a “with and without” methodology
  described in Section 2.4(a). Carryovers or carrybacks of any Tax item
  attributable to any Basis Adjustment, Reverse 704(c) Allocations, Imputed
  Interest, or Actual Interest Amounts shall be considered to be subject to the
  rules of the Code and the Treasury Regulations or the appropriate provisions
  of U.S. state and local tax law, as applicable, governing the use, limitation
  and expiration of carryovers or carrybacks of the relevant type. If a
  carryover or carryback of any Tax item includes a portion that is
  attributable to a Basis Adjustment, Reverse 704(c) Allocations, Imputed
  Interest, or Actual Interest Amounts (a “TRA Portion”) and another portion
  that is not (a “Non- TRA Portion”), such portions shall be considered to be
  used in accordance with the “with and without” methodology so that: (i) the
  amount of any Non-TRA Portion is deemed utilized first, followed by the
  amount of any TRA Portion (with the TRA Portion being applied on a
  proportionate basis consistent with the provisions of Section 3.3(a)); and
  (ii) in the case of a carryback of a Non-TRA Portion, such carryback shall
  not affect the original “with and without” calculation made in the prior
  Taxable Year. The Parties agree that (i) all Tax Benefit Payments
  attributable to a Sale, Direct Exchange or Redemption will (A) be treated as
  subsequent upward purchase price adjustments that give rise to further Basis
  Adjustments for the Corporation and 

  

 

	
  

  	
  14 DRAFT
  10-14-2014#86439996v1 (B) have the effect of creating additional Basis
  Adjustments for the Corporation in the year of payment, and (ii) as a result,
  such additional Basis Adjustments will be incorporated into the current
  Taxable Year continuing until any incremental current Taxable Year benefits
  equal an immaterial amount. Section 2.4 Procedures; Amendments. (a) Procedures.
  Each time the Corporation delivers an applicable Schedule to the Members
  under this Agreement, including any Amended Schedule delivered pursuant to
  Section 2.4(b), but excluding any Early Termination Schedule or amended Early
  Termination Schedule delivered pursuant to the procedures set forth in
  Section 4.2, the Corporation shall also: (x) deliver supporting schedules and
  work papers, as determined by the Corporation or as reasonably requested by
  any Member, that provide a reasonable level of detail regarding the data and
  calculations that were relevant for purposes of preparing the Schedule; (y)
  deliver an Advisory Firm Letter supporting such Schedule; and (z) allow the
  Members and their advisors to have reasonable access to the appropriate
  representatives, as determined by the Corporation or as reasonably requested
  by the Members, at the Corporation and the Advisory Firm in connection with a
  review of such Schedule. Without limiting the generality of the preceding
  sentence, the Corporation shall ensure that any Tax Benefit Schedule that is
  delivered to the Members, along with any supporting schedules and work
  papers, provides a reasonably detailed presentation of the calculation of the
  actual liability of the Corporation for Covered Taxes (the “with” calculation)
  and the Hypothetical Tax Liability of the Corporation (the “without”
  calculation), and identifies any material assumptions or operating procedures
  or principles that were used for purposes of such calculations. An applicable
  Schedule or amendment thereto shall become final and binding on the Parties
  thirty (30) calendar days from the date on which the Members first received
  the applicable Schedule or amendment thereto unless: (i) a Member within
  thirty (30) calendar days after receiving the applicable Schedule or
  amendment thereto, provides the Corporation with (A) written notice of a
  material objection to such Schedule that is made in good faith and that sets
  forth in reasonable detail such Member’s material objection (an “Objection
  Notice”) and (B) a letter from an Advisory Firm (that is different from the
  Advisory Firm that was used by the Corporation to prepare the Schedule at
  issue) in support of such Objection Notice; or (ii) each Member provides a
  written waiver of its right to deliver an Objection Notice within the time
  period described in clause (i) above, in which case such Schedule or
  amendment thereto becomes binding on the date the waiver from all Members is
  received by the Corporation. In the event that a Member timely delivers an Objection
  Notice pursuant to clause (i) above, and if the Parties, for any reason, are
  unable to successfully resolve the issues raised in the Objection Notice
  within thirty (30) calendar days after receipt by the Corporation of the
  Objection Notice, the Corporation and the Member shall employ the
  reconciliation procedures as described in Section 7.9 of this Agreement (the
  “Reconciliation Procedures”). For the avoidance of doubt, and notwithstanding
  anything to the contrary herein, the expense of preparing and obtaining the
  letter from an Advisory Firm referenced in clause (i) above shall be borne
  solely by the Member 

  

 

 

	
  

  	
  15 DRAFT
  10-14-2014#86439996v1 and the Corporation shall have no liability with
  respect to such letter or any of the expenses associated with its preparation
  and delivery. (b) Amended Schedule. The applicable Schedule for any Taxable
  Year may be amended from time to time by the Corporation: (i) in connection
  with a Determination affecting such Schedule; (ii) to correct inaccuracies in
  the Schedule identified as a result of the receipt of additional factual
  information relating to a Taxable Year after the date the Schedule was
  originally provided to the Member; (iii) to comply with an Expert’s
  determination under the Reconciliation Procedures applicable to this
  Agreement; (iv) to reflect a change in the Realized Tax Benefit or Realized
  Tax Detriment for such Taxable Year attributable to a carryback or
  carryforward of a loss or other Tax item to such Taxable Year; (v) to reflect
  a change in the Realized Tax Benefit or Realized Tax Detriment for such
  Taxable Year attributable to an amended Tax Return filed for such Taxable
  Year; or (vi) to adjust a Basis Schedule to take into account any Tax Benefit
  Payments made pursuant to this Agreement (any such Schedule, an “Amended
  Schedule”). ARTICLE III. TAX BENEFIT PAYMENTS Section 3.1 Timing and Amount
  of Tax Benefit Payments. (a) Timing of Payments. Except as provided in
  Sections 3.4 and 3.5, and subject to Sections 3.2 and 3.3, within three (3)
  Business Days following the date on which each Tax Benefit Schedule that is
  required to be delivered by the Corporation to the Members pursuant to
  Section 2.3(a) of this Agreement becomes final in accordance with Section
  2.4(a) of this Agreement, the Corporation shall pay to each relevant Member
  the Tax Benefit Payment as determined pursuant to Section 3.1(b). Each such
  Tax Benefit Payment shall be made by wire transfer of immediately available
  funds to the bank account previously designated by such Members or as
  otherwise agreed by the Corporation and such Members. For the avoidance of
  doubt, the Members shall not be required under any circumstances to return
  any portion of any Tax Benefit Payment previously paid by the Corporation to
  the Members (including any portion of any Estimated Tax Benefit Payment or
  any Early Termination Payment). (b) Amount of Payments. For purposes of this
  Agreement, a “Tax Benefit Payment” with respect to any Member means an
  amount, not less than zero, equal to the sum of: (i) the Net Tax Benefit that
  is Attributable to such Member (including Imputed Interest calculated in
  respect of such amount); and (ii) the Actual Interest Amount. (i)
  Attributable. A Net Tax Benefit is “Attributable” to a Member to the extent
  that it is derived from any Basis Adjustment, Imputed Interest, or Actual
  Interest Amount that is attributable to an Exchange undertaken by or with
  respect to such Member or is attributable to a Reverse Section 704(c)
  Allocation that otherwise would have been allocated to such Member if Neff
  Holdings was not required to make such Reverse Section 704(c) Allocation.
  (ii) Net Tax Benefit. The “Net Tax Benefit” for a Taxable Year equals the
  amount of the excess, if any, of (x) 85% of the Cumulative Net Realized Tax
  Benefit as 

  

 

	
  

  	
  16 DRAFT
  10-14-2014#86439996v1 of the end of such Taxable Year over (y) the aggregate
  amount of all Tax Benefit Payments previously made to such Member under this
  Section 3.1. For the avoidance of doubt, if the Cumulative Net Realized Tax
  Benefit as of the end of any Taxable Year is less than the aggregate amount
  of all Tax Benefit Payments previously made to a Member, such Member shall
  not be required to return any portion of any Tax Benefit Payment previously
  made by the Corporation to such Member. (iii) Cumulative Net Realized Tax
  Benefit. The “Cumulative Net Realized Tax Benefit” for a Taxable Year equals
  the cumulative amount of Realized Tax Benefits for all Taxable Years of the
  Corporation, up to and including such Taxable Year, net of the cumulative
  amount of Realized Tax Detriments for the same period. The Realized Tax
  Benefit and Realized Tax Detriment for each Taxable Year shall be determined
  based on the most recent Tax Benefit Schedule or Amended Schedule, if any, in
  existence at the time of such determination. (iv) Realized Tax Benefit. The
  “Realized Tax Benefit” for a Taxable Year equals the excess, if any, of the
  Hypothetical Tax Liability over the actual liability of the Corporation for
  Covered Taxes. If all or a portion of the actual liability for such Covered
  Taxes for the Taxable Year arises as a result of an audit by a Taxing
  Authority of any Taxable Year, such liability shall not be included in
  determining the Realized Tax Benefit unless and until there has been a
  Determination. (v) Realized Tax Detriment. The “Realized Tax Detriment” for a
  Taxable Year equals the excess, if any, of the actual liability of the
  Corporation for Covered Taxes over the Hypothetical Tax Liability for such
  Taxable Year. If all or a portion of the actual liability for such Covered
  Taxes for the Taxable Year arises as a result of an audit by a Taxing
  Authority of any Taxable Year, such liability shall not be included in
  determining the Realized Tax Detriment unless and until there has been a
  Determination. (vi) Imputed Interest. The principles of Sections 1272, 1274,
  or 483 of the Code, as applicable, and the principles of any similar
  provision of U.S. state and local law, will apply to cause a portion of any
  Net Tax Benefit payable by the Corporation to a Member under this Agreement
  to be treated as imputed interest (“Imputed Interest”). For the avoidance of
  doubt, the deduction for the amount of Imputed Interest as determined with
  respect to any Net Tax Benefit payable by the Corporation to a Member shall
  be excluded in determining the Hypothetical Tax Liability of the Corporation
  for purposes of calculating Realized Tax Benefits and Realized Tax Detriments
  pursuant to this Agreement. (vii) Actual Interest Amount. The “Actual
  Interest Amount” calculated in respect of the Net Tax Benefit for a Taxable
  Year will equal the amount of any Extension Rate Interest. For the avoidance
  of doubt, any deduction for any Actual Interest Amount as determined with
  respect to any Net Tax Benefit payable by the Corporation to a Member shall
  be excluded in determining the Hypothetical Tax Liability of the Corporation
  for purposes of calculating Realized Tax Benefits and Realized Tax Detriments
  pursuant to this Agreement. 

  

 

	
  

  	
  17 DRAFT
  10-14-2014#86439996v1 (viii) Extension Rate Interest. Subject to Section 3.4,
  the amount of “Extension Rate Interest” calculated in respect of the Net Tax
  Benefit (including previously accrued Imputed Interest) for a Taxable Year
  will equal interest calculated at the Agreed Rate from the due date (without
  extensions) for filing the U.S. federal income Tax Return of the Corporation
  for such Taxable Year until the date on which the Corporation makes a timely
  Tax Benefit Payment to the Member on or before the Final Payment Date as
  determined pursuant to Section 3.1(a). (ix) Default Rate Interest. In the
  event that the Corporation does not make timely payment of all or any portion
  of a Tax Benefit Payment to a Member on or before the Final Payment Date as
  determined pursuant to Section 3.1(a), the amount of “Default Rate Interest”
  calculated in respect of the Net Tax Benefit (including previously accrued
  Imputed Interest and Extension Rate Interest) for a Taxable Year will equal
  interest calculated at the Default Rate from the Final Payment Date for a Tax
  Benefit Payment as determined pursuant to Section 3.1(a) until the date on
  which the Corporation makes such Tax Benefit Payment to such Member. For the
  avoidance of doubt, the amount of any Default Rate Interest as determined
  with respect to any Net Tax Benefit payable by the Corporation to a Member
  shall be included in the Hypothetical Tax Liability of the Corporation for
  purposes of calculating Realized Tax Benefits and Realized Tax Detriments
  pursuant to this Agreement. (x) The Corporation and the Members hereby
  acknowledge and agree that, as of the date of this Agreement and as of the
  date of any future Exchange that may be subject to this Agreement, the
  aggregate value of the Tax Benefit Payments cannot be reasonably ascertained
  for U.S. federal income or other applicable tax purposes. (c) Interest. The
  provisions of Section 3.1(b) are intended to operate so that interest will effectively
  accrue in respect of the Net Tax Benefit for any Taxable Year as follows: (i)
  first, at the applicable rate used to determine the amount of Imputed
  Interest under the Code (from the relevant Exchange Date or date on which the
  relevant Tax Benefit Payment was made until the due date (without extensions)
  for filing the U.S. federal income Tax Return of the Corporation for such
  Taxable Year); (ii) second, at the Agreed Rate in respect of any Extension
  Rate Interest (from the due date (without extensions) for filing the U.S.
  federal income Tax Return of the Corporation for such Taxable Year until the
  Final Payment Date for a Tax Benefit Payment as determined pursuant to
  Section 3.1(a)); and (iii) third, at the Default Rate in respect of any
  Default Rate Interest (from the Final Payment Date for a Tax Benefit Payment
  as determined pursuant to Section 3.1(a) until the date on which the
  Corporation makes the relevant Tax Benefit Payment to a Member). Section 3.2
  No Duplicative Payments. It is intended that the provisions of this Agreement
  will not result in the duplicative payment of any amount (including interest)
  that may be required under this Agreement, and the provisions of this
  Agreement shall be consistently 

  

 

	
  

  	
  18 DRAFT
  10-14-2014#86439996v1 interpreted and applied in accordance with that intent.
  For purposes of this Agreement, and also for the avoidance of doubt, no Tax
  Benefit Payment shall be calculated or made in respect of any estimated tax
  payments, including, without limitation, any estimated U.S. federal income
  tax payments. Section 3.3 Pro-Ration of Payments as Between the Members. (a)
  Insufficient Taxable Income. Notwithstanding anything in Section 3.1(b) to
  the contrary, if the aggregate potential Covered Tax benefit of the
  Corporation as calculated with respect to the Basis Adjustments, Reverse
  Section 704(c) Allocations, Imputed Interest, and Actual Interest Amounts is
  limited in a particular Taxable Year because the Corporation does not have
  sufficient actual taxable income, then the available Covered Tax benefit for
  the Corporation shall be allocated among the Members in proportion to the
  respective Tax Benefit Payment that would have been payable if the
  Corporation had in fact had sufficient taxable income so that there had been
  no such limitation. As an illustration of the intended operation of this
  Section 3.3(a), if the Corporation had $200 of aggregate potential Covered
  Tax benefits with respect to the Basis Adjustments, Reverse Section 704(c)
  Allocations, Imputed Interest, and Actual Interest Amounts in a particular
  Taxable Year (with $50 of such Covered Tax benefits being attributable to
  Member 1 and $150 of such Covered Tax benefits being attributable to Member
  2), such that Member 1 would have potentially been entitled to a Tax Benefit
  Payment of $42.50 and Member 2 would have been entitled to a Tax Benefit
  Payment of $127.50 if the Corporation had $200 of taxable income, and if at
  the same time the Corporation only had $100 of actual taxable income in such
  Taxable Year, then $25 of the aggregate $100 actual Covered Tax benefit for
  the Corporation for such Taxable Year would be allocated to Member 1 and $75
  of the aggregate $100 actual Covered Tax benefit for the Corporation would be
  allocated to Member 2, such that Member 1 would receive a Tax Benefit Payment
  of $21.25 and Member 2 would receive a Tax Benefit Payment of $63.75. (b)
  Late Payments. If for any reason the Corporation is not able to timely and
  fully satisfy its payment obligations under this Agreement in respect of a particular
  Taxable Year, then Default Rate Interest will begin to accrue pursuant to
  Section 5.2 and the Corporation and other Parties agree that (i) the
  Corporation shall pay the Tax Benefit Payments due in respect of such Taxable
  Year to each Member pro rata, without favoring one obligation over the other,
  and (ii) no Tax Benefit Payment shall be made in respect of any Taxable Year
  until all Tax Benefit Payments to all Members in respect of all prior Taxable
  Years have been made in full. Section 3.4 Optional Estimated Payment
  Procedure. As long as the Corporation is current in respect of its payment
  obligations owed to each Member pursuant to this Agreement and there are no
  delinquent Tax Benefit Payments (including interest thereon) outstanding in
  respect of prior Taxable Years for any Member, the Corporation may, at any
  time on or after the due date (without extensions) for filing the U.S.
  federal income Tax Return of the Corporation for a Taxable Year and at the
  Corporation’s option, in its sole discretion, make one or more estimated
  payments to the Members in respect of any anticipated amounts to be owed with
  respect to a Taxable Year to the Members pursuant to Section 3.1 of this
  Agreement (any such estimated payments referred to as an “Estimated Tax Benefit
  Payment”); provided that any Estimated Tax Benefit Payment made to a Member
  pursuant to this Section 3.4 is matched by a proportionately equal Estimated
  Tax Benefit Payment to all other Members then entitled to a Tax 

  

 

	
  

  	
  19 DRAFT
  10-14-2014#86439996v1 Benefit Payment. Any Estimated Tax Benefit Payment made
  under this Section 3.4 shall be paid by the Corporation to the Members and
  applied against the final amount of any expected Tax Benefit Payment to be
  made pursuant to Section 3.1. The payment of an Estimated Tax Benefit Payment
  by the Corporation to the Members pursuant to this Section 3.4 shall also
  terminate the obligation of the Corporation to make payment of any Extension
  Rate Interest that might have otherwise accrued with respect to the proportionate
  amount of the Tax Benefit Payment that is being paid in advance of the
  applicable Tax Benefit Schedule being finalized pursuant to Section 2.4. Upon
  the making of any Estimated Tax Benefit Payment pursuant to this Section 3.4,
  the amount of such Estimated Tax Benefit Payment shall first be applied to
  any estimated Extension Rate Interest, then to Imputed Interest, and then
  applied to the remaining residual amount of the Tax Benefit Payment to be
  made pursuant to Section 3.1. In determining the final amount of any Tax
  Benefit Payment to be made pursuant to Section 3.1, and for purposes of
  finalizing the Tax Benefit Schedule pursuant to Section 2.4, the amount of
  any Estimated Tax Benefit Payments that may have been made with respect to
  the Taxable Year shall be increased, if the finally determined Tax Benefit
  Payment for a Taxable Year exceeds the Estimated Tax Benefit Payments made
  for such Taxable Year, with such increase being paid by the Corporation to
  the Members along with an appropriate amount of Extension Rate Interest in
  respect of the amount of such increase (a “True-Up”). If the Estimated Tax
  Benefit Payment for a Taxable Year exceeds the finally determined Tax Benefit
  Payment for such Taxable Year, such excess, along with an appropriate amount
  of Extension Rate Interest in respect of such excess (being charged by the
  Corporation to the Member), shall be applied to reduce the amount of any
  subsequent future Tax Benefit Payments (including Estimated Tax Benefit
  Payments, if any) to be paid by the Corporation to such Member. As of the
  date on which any Estimated Tax Benefit Payments are made, and as of the date
  on which any True-Up is made, all such payments shall be made in the same
  manner and subject to the same terms and conditions as otherwise contemplated
  by Section 3.1 and all other applicable terms of this Agreement. For the
  avoidance of doubt, as is the case with Tax Benefit Payments made by the
  Corporation to the Members pursuant to Section 3.1, the amount of any
  Estimated Tax Benefit Payments made pursuant to this Section 3.4 that are
  attributable to a Sale, Direct Exchange or Redemption shall also be treated,
  in part, as subsequent upward purchase price adjustments that give rise to
  Basis Adjustments in the Taxable Year of payment and as of the date on which
  such payments are made (to the extent of the estimated Net Tax Benefit
  associated with such Estimated Tax Benefit Payment, less any Imputed
  Interest, and exclusive of any Extension Rate Interest). Section 3.5 Changes;
  Reserves; Suspension of Payments. (a) Receipt of Change Notice. If any Party,
  or any Affiliate or Subsidiary of any Party, receives a 30-day letter, a
  final audit report, a statutory notice of deficiency, or similar written
  notice from any Taxing Authority relating to the amount of the Net Tax
  Benefit calculated for purposes of this Agreement, or relating to any other
  material tax matter that is relevant to the terms of this Agreement and the
  calculation of the Tax Benefit Payments that may be payable by the
  Corporation to the Members (a “Change Notice”), prompt written notification
  and a copy of the relevant Change Notice shall be delivered by the Party, or
  its Affiliate or Subsidiary, that received such Change Notice to each other
  Party. (b) Receipt of Reserve Notice. Prior to the delivery of any Tax
  Benefit Schedule or other Schedule by the Corporation to the Members pursuant
  to Section 2.4, the auditors for the 

  

 

	
  

  	
  20 DRAFT
  10-14-2014#86439996v1 Corporation shall consult with the management of the
  Corporation and, if necessary, the Advisory Firm or other legal or accounting
  advisors to the Corporation regarding the substantive tax issues and related
  conclusions that underlie the calculations related to the determination of
  the Tax Benefit Payments required under this Agreement. If, following such
  consultation, the auditors for the Corporation reasonably determine that a
  tax reserve or contingent liability must be established by the Corporation or
  Neff Holdings for financial accounting purposes (as determined in accordance
  with GAAP) in relation to any past or future tax position that affects the
  amount of any past or future Tax Benefit Payments that have been made or that
  may be made under this Agreement, then the management of the Corporation
  shall notify the Audit Committee of such determination (a “Reserve Notice”).
  (c) Suspension of Payments. From and after the date on which a Change Notice
  or a Reserve Notice is received, any Tax Benefit Payments required to be made
  under this Agreement will, to the extent determined reasonably necessary by
  the Audit Committee after considering the potential tax implications of the
  Change Notice or the Reserve Notice, be paid by the Corporation to a national
  bank mutually agreeable to the Parties to act as escrow agent to hold such funds
  in escrow pursuant to an escrow agreement until a Determination is received
  (in the case of a Change Notice) or the relevant reserve is released or
  contingent liability is eliminated (in the case of a Reserve Notice). For
  purposes of the preceding sentence, and in particular for purposes of the
  Audit Committee’s determination of the amount to be placed in escrow pending
  a Determination (in the case of a Change Notice) or the release of a reserve
  or the elimination of a contingent liability (in the Case of a Reserve
  Notice), the Audit Committee: (i) will suspend all future Tax Benefit
  Payments required under this Agreement until the amount of such suspended Tax
  Benefit Payments at least equals 85% of the amount of the asserted deficiency
  in tax owed (in the case of a Change Notice) or 85% of the amount of the
  reserve or contingent liability (in the case of a Reserve Notice); and (ii)
  upon the suspension of Tax Benefit Payments in the minimum amount
  contemplated by the preceding clause (i), may continue to suspend all or a
  portion of any future Tax Benefit Payments required under this Agreement. For
  the avoidance of doubt, the date on which the Corporation pays any such Tax
  Benefit Payments to the escrow agent shall be considered the date on which
  such Tax Benefit Payments are paid to the Members, including for purposes of
  determining the Actual Interest Amount and Default Rate Interest. (d) Release
  of Escrowed Funds. As of the date on which a reserve is released or
  contingent liability is eliminated (in the case of a Reserve Notice), and
  provided that no Change Notice has previously been issued and is still
  outstanding in relation to the same tax position that was the subject of the
  Reserve Notice, the relevant escrowed funds (along with any net interest earned
  on such funds, and less the out-of-pocket expenses incurred by the
  Corporation or Neff Holdings in administering the escrow) shall be
  distributed to the relevant Members. If a Determination is received (in the
  case of a Change Notice), and if such Determination results in no adjustment
  in any Tax Benefit Payments under this Agreement, and provided that no
  Reserve Notice has previously been issued and is still outstanding in
  relation to the same tax position that was the subject of the Change Notice,
  then the relevant escrowed funds (along with any net interest earned on such
  funds, and less the out-of-pocket expenses incurred by the Corporation or
  Neff Holdings in administering the escrow) shall be distributed to the
  relevant Members. If a Determination is received (in the case of a Change
  Notice), and if such Determination results in an adjustment in any Tax
  Benefit Payments under this Agreement, and provided that no Reserve Notice
  has previously been issued and is still outstanding in relation to the same tax
  position that 

  

 

	
  

  	
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  10-14-2014#86439996v1 was the subject of the Change Notice, then the relevant
  escrowed funds (along with any net interest earned on such funds) shall be
  distributed as follows: (i) first, to the Corporation or Neff Holdings in an
  amount equal to the out-of-pocket expenses incurred by the Corporation or
  Neff Holdings in administering the escrow and in contesting the
  Determination; and (ii) second, to the relevant Parties (which, for the
  avoidance of doubt and depending on the nature of the adjustments, may
  include the Corporation, Neff Holdings, or the relevant Members, or some
  combination thereof) in accordance with the relevant Amended Schedule
  prepared pursuant to Section 2.4 of this Agreement. ARTICLE IV. TERMINATION
  Section 4.1 Early Termination of Agreement; Breach of Agreement. (a)
  Corporation’s Early Termination Right. With the written approval of a
  majority of the Independent Directors, the Corporation may completely
  terminate this Agreement, as and to the extent provided herein, with respect
  to all amounts payable to the Members (for the avoidance of doubt, including
  the LLC Option Holders, who shall each be treated as a Member for this
  purpose) pursuant to this Agreement by paying to the Members the Early
  Termination Payment; provided that Early Termination Payments may be made
  pursuant to this Section 4.1(a) only if made to all Members that are entitled
  to such a payment simultaneously, and provided further, that the Corporation
  may withdraw any notice to execute its termination rights under this Section
  4.1(a) prior to the time at which any Early Termination Payment has been
  paid. Upon the Corporation’ payment of the Early Termination Payment, the
  Corporation shall not have any further payment obligations under this Agreement,
  other than with respect to any: (i) prior Tax Benefit Payments that are due
  and payable under this Agreement but that still remain unpaid as of the date
  of the Early Termination Notice; and (ii) current Tax Benefit Payment due for
  the Taxable Year ending on or including the date of the Early Termination
  Notice (except to the extent that the amount described in clause (ii) is
  included in the calculation of the Early Termination Payment). If an Exchange
  subsequently occurs with respect to Units for which the Corporation has
  exercised its termination rights under this Section 4.1(a), the Corporation
  shall have no obligations under this Agreement with respect to such Exchange.
  (b) Acceleration Upon Change of Control. In the event of a Change of Control,
  all obligations hereunder shall be accelerated and such obligations shall be
  calculated pursuant to this Article IV as if an Early Termination Notice had
  been delivered on the closing date of the Change of Control and utilizing the
  Valuation Assumptions by substituting the phrase “the closing date of a
  Change of Control” in each place where the phrase “Early Termination
  Effective Date” appears. Such obligations shall include, but not be limited
  to, (1) the Early Termination Payment calculated as if an Early Termination
  Notice had been delivered on the closing date of the Change of Control, (2)
  any Tax Benefit Payments agreed to by the Corporation and the Members as due
  and payable but unpaid as of the Early Termination Notice and (3) any Tax
  Benefit Payments due for any Taxable Year ending prior to, with or including
  the closing date of a Change of Control (except to the extent that any
  amounts described in clauses (2) or (3) are included in the Early Termination
  Payment). For the avoidance of doubt, Sections 4.2 and 4.3 shall apply to a
  Change of Control, mutadis mutandi. 

  

 

	
  

  	
  22 DRAFT
  10-14-2014#86439996v1 (c) Acceleration Upon Breach of Agreement. In the event
  that the Corporation materially breaches any of its material obligations
  under this Agreement, whether as a result of failure to make any payment when
  due, failure to honor any other material obligation required hereunder, or by
  operation of law as a result of the rejection of this Agreement in a case
  commenced under the Bankruptcy Code or otherwise, then all obligations
  hereunder shall be accelerated and become immediately due and payable upon
  notice of acceleration from such Member (provided that in the case of any
  proceeding under the Bankruptcy Code or other insolvency statute, such
  acceleration shall be automatic without any such notice), and such
  obligations shall be calculated as if an Early Termination Notice had been
  delivered on the date of such notice of acceleration (or, in the case of any
  proceeding under the Bankruptcy Code or other insolvency statute, on the date
  of such breach) and shall include, but not be limited to: (i) the Early
  Termination Payment calculated as if an Early Termination Notice had been
  delivered on the date of such acceleration; (ii) any prior Tax Benefit
  Payments that are due and payable under this Agreement but that still remain
  unpaid as of the date of such acceleration; and (iii) any current Tax Benefit
  Payment due for the Taxable Year ending with or including the date of such
  acceleration. Notwithstanding the foregoing, in the event that the
  Corporation breaches this Agreement and such breach is not a material breach
  of a material obligation, a Member shall still be entitled to enforce all of
  its rights otherwise available under this Agreement, including potentially
  seeking an acceleration of amounts payable under this Agreement. For purposes
  of this Section 4.1(c), and subject to the following sentence, the Parties
  agree that the failure to make any payment due pursuant to this Agreement
  within thirty (30) days of the relevant Final Payment Date shall be deemed to
  be a material breach of a material obligation under this Agreement for all
  purposes of this Agreement, and that it will not be considered to be a
  material breach of a material obligation under this Agreement to make a
  payment due pursuant to this Agreement within thirty (30) days of the
  relevant Final Payment Date. For the avoidance of doubt, a suspension of
  payments pursuant to Section 3.5 will not be considered to be a failure to
  make a payment due pursuant to this Agreement. Notwithstanding anything in
  this Agreement to the contrary, it shall not be a material breach of a
  material obligation of this Agreement if the Corporation fails to make any
  Tax Benefit Payment within thirty (30) days of the relevant Final Payment
  Date to the extent that the Corporation has insufficient funds, or cannot
  take commercially reasonable actions to obtain sufficient funds, to make such
  payment; provided that the interest provisions of Section 5.2 shall apply to
  such late payment (unless the Corporation does not have sufficient funds to
  make such payment as a result of limitations imposed by any Senior
  Obligations, in which case Section 5.2 shall apply, but the Default Rate
  shall be replaced by the Agreed Rate). Section 4.2 Early Termination Notice.
  If the Corporation chooses to exercise its right of early termination under
  Section 4.1 above, the Corporation shall deliver to the Members a notice of
  the Corporation’s decision to exercise such right (an “Early Termination Notice”)
  and a schedule (the “Early Termination Schedule”) showing in reasonable
  detail the calculation of the Early Termination Payment. The Corporation
  shall also (x) deliver supporting schedules and work papers, as determined by
  the Corporation or as reasonably requested by a Member, that provide a
  reasonable level of detail regarding the data and calculations that were
  relevant for purposes of preparing the Early Termination Schedule; (y)
  deliver an Advisory Firm Letter supporting such Early Termination Schedule;
  and (z) allow the Members and their advisors to have reasonable access to the
  appropriate representatives, as determined by the Corporation or as
  reasonably requested by the Members, at the Corporation and the Advisory Firm
  in connection 

  

 

	
  

  	
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  10-14-2014#86439996v1 with a review of such Early Termination Schedule. The
  Early Termination Schedule shall become final and binding on each Party
  thirty (30) calendar days from the first date on which the Members received
  such Early Termination Schedule unless: (i) a Member within thirty (30)
  calendar days after receiving the Early Termination Schedule, provides the
  Corporation with (A) notice of a material objection to such Early Termination
  Schedule made in good faith and setting forth in reasonable detail such
  Member’s material objection (a “Termination Objection Notice”) and (B) a
  letter from an Advisory Firm (that is different from the Advisory Firm that
  was used by the Corporation to prepare the Early Termination Schedule) in
  support of such Termination Objection Notice; or (ii) each Member provides a
  written waiver of such right of a Termination Objection Notice within the
  period described in clause (i) above, in which case such Early Termination
  Schedule becomes binding on the date the waiver from all Members is received
  by the Corporation. In the event that a Member timely delivers a Termination
  Objection Notice pursuant to clause (i) above, and if the Parties, for any
  reason, are unable to successfully resolve the issues raised in the Termination
  Objection Notice within thirty (30) calendar days after receipt by the
  Corporation of the Termination Objection Notice, the Corporation and such
  Member shall employ the Reconciliation Procedures. For the avoidance of
  doubt, and notwithstanding anything to the contrary herein, the expense of
  preparing and obtaining the letter from an Advisory Firm referenced in clause
  (i) above shall be borne solely by such Member and the Corporation shall have
  no liability with respect to such letter or any of the expenses associated
  with its preparation and delivery. The date on which the Early Termination
  Schedule becomes final in accordance with this Section 4.2 shall be the
  “Early Termination Reference Date.” Section 4.3 Payment Upon Early
  Termination. (a) Timing of Payment. Within three (3) Business Days after the
  Early Termination Reference Date, the Corporation shall pay to each Member an
  amount equal to the Early Termination Payment for such Member. Such Early
  Termination Payment shall be made by the Corporation by wire transfer of
  immediately available funds to a bank account or accounts designated by the
  Members or as otherwise agreed by the Corporation and the Members. (b) Amount
  of Payment. The “Early Termination Payment” payable to a Member pursuant to
  Section 4.3(a) shall equal the present value, discounted at the Early
  Termination Rate as determined as of the Early Termination Reference Date, of
  all Tax Benefit Payments that would be required to be paid by the Corporation
  to such Member, whether payable with respect to Units that were Exchanged
  prior to the Early Termination Effective Date or on or after the Early
  Termination Effective Date (for the avoidance of doubt, including Units that
  any LLC Option Holder would be entitled to receive upon exercise of such LLC
  Option Holder’s option to purchase such Units), beginning from the Early
  Termination Effective Date and using the Valuation Assumptions. 

  

 

	
  

  	
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  10-14-2014#86439996v1 ARTICLE V. SUBORDINATION AND LATE PAYMENTS Section 5.1
  Subordination. Notwithstanding any other provision of this Agreement to the
  contrary, any Tax Benefit Payment or Early Termination Payment required to be
  made by the Corporation to the Members under this Agreement shall rank
  subordinate and junior in right of payment to any principal, interest, or
  other amounts due and payable in respect of any obligations owed in respect
  of secured indebtedness for borrowed money of the Corporation and its
  Subsidiaries (“Senior Obligations”) and shall rank pari passu in right of
  payment with all current or future unsecured obligations of the Corporation
  that are not Senior Obligations. To the extent that any payment under this
  Agreement is not permitted to be made at the time payment is due as a result
  of this Section 5.1 and the terms of the agreements governing Senior
  Obligations, such payment obligation nevertheless shall accrue for the
  benefit of the Members and the Corporation shall make such payments at the
  first opportunity that such payments are permitted to be made in accordance
  with the terms of the Senior Obligations. Section 5.2 Late Payments by the
  Corporation. The amount of all or any portion of any Tax Benefit Payment or
  Early Termination Payment not made to the Members when due under the terms of
  this Agreement, whether as a result of Section 5.1 and the terms of the
  Senior Obligations or otherwise, shall be payable together with any interest
  thereon, computed at the Default Rate and commencing from the Final Payment
  Date on which such Tax Benefit Payment or Early Termination Payment was first
  due and payable to the date of actual payment. ARTICLE VI. TAX MATTERS;
  CONSISTENCY; COOPERATION Section 6.1 Participation in the Corporation’s and
  Neff Holdings’ Tax Matters. Except as otherwise provided herein, and except
  as provided in Article IX of the LLC Agreement, the Corporation shall have
  full responsibility for, and sole discretion over, all tax matters concerning
  the Corporation and Neff Holdings, including without limitation the
  preparation, filing or amending of any Tax Return and defending, contesting
  or settling any issue pertaining to taxes. Notwithstanding the foregoing, the
  Corporation shall notify the Members of, and keep them reasonably informed
  with respect to, the portion of any tax audit of the Corporation or Neff
  Holdings, or any of Neff Holdings’ Subsidiaries, the outcome of which is
  reasonably expected to materially affect the Tax Benefit Payments payable to
  such Members under this Agreement, and such Members shall have the right to
  participate in and to monitor at their own expense (but, for the avoidance of
  doubt, not to control) any such portion of any such Tax audit. Section 6.2
  Consistency. All calculations and determinations made hereunder, including,
  without limitation, any Basis Adjustments, Reverse Section 704(c) Allocations,
  the Schedules, and the determination of any Realized Tax Benefits or Realized
  Tax Detriments, shall be made in accordance with the elections, methodologies
  or positions taken by the Corporation and Neff Holdings on their respective
  Tax Returns. Each Member shall prepare its Tax Returns in a manner that is
  consistent with the terms of this Agreement, and any related calculations or
  determinations that are made hereunder, including, without limitation, the
  terms of Section 2.1 of this Agreement and the Schedules provided to the
  Members under this Agreement. In the event 

  

 

	
  

  	
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  10-14-2014#86439996v1 that an Advisory Firm is replaced with another Advisory
  Firm acceptable to the Audit Committee, such replacement Advisory Firm shall
  perform its services under this Agreement using procedures and methodologies
  consistent with the previous Advisory Firm, unless otherwise required by law
  or unless the Corporation and all of the Members agree to the use of other
  procedures and methodologies. Section 6.3 Cooperation. (a) Each Member shall
  (i) furnish to the Corporation in a timely manner such information, documents
  and other materials as the Corporation may reasonably request for purposes of
  making any determination or computation necessary or appropriate under this
  Agreement, preparing any Tax Return or contesting or defending any audit,
  examination or controversy with any Taxing Authority, (ii) make itself
  available to the Corporation and its representatives to provide explanations
  of documents and materials and such other information as the Corporation or
  its representatives may reasonably request in connection with any of the
  matters described in clause (i) above, and (iii) reasonably cooperate in
  connection with any such matter. (b) The Corporation shall reimburse the
  Members for any reasonable and documented out-of-pocket costs and expenses
  incurred pursuant to Section 6.3(a). ARTICLE VII. MISCELLANEOUS Section 7.1
  Notices. All notices, requests, consents and other communications hereunder
  shall be in writing and shall be given (and shall be deemed to have been duly
  given upon receipt) by delivery in person, by courier service, by fax, by
  electronic mail (delivery receipt requested) or by certified or registered
  mail (postage prepaid, return receipt requested) to the respective Parties at
  the following addresses (or at such other address for a Party as shall be as
  specified in a notice given in accordance with this Section 7.1). All notices
  hereunder shall be delivered as set forth below, or pursuant to such other
  instructions as may be designated in writing by the Party to receive such
  notice: If to the Corporation, to: Neff Corporation 3750 N.W. 87th Avenue,
  Suite 400 Miami, Florida 33178 Attn: Chief Financial Officer Facsimile: (305)
  513-4156 E-mail: mirion@neffcorp.com with a copy (which shall not constitute
  notice to the Corporation) to: Latham & Watkins LLP 885 Third Avenue New
  York, New York 10022 Attn: David Raab, Esq. 

  

 

	
  

  	
  26 DRAFT
  10-14-2014#86439996v1 Facsimile: (212) 751-4684 E-mail: david.raab@lw.com If
  to any Wayzata Member: c/o Wayzata Investment Partners 701 East Lake Street,
  Suite 300 Wayzata, Minnesota 55391 Attn: Ray Wallander Facsimile: (952)
  345-8901 E-mail: rwallander@wayzpartners.com with a copy (which shall not
  constitute notice to the Members and LLC Option Holders) to: [TBD] Attn:
  Facsimile: E-mail: Any Party may change its address, fax number or e-mail
  address by giving each of the other Parties written notice thereof in the
  manner set forth above. Section 7.2 Counterparts. This Agreement may be
  executed in one or more counterparts, all of which shall be considered one
  and the same agreement and shall become effective when one or more
  counterparts have been signed by each of the Parties and delivered to the
  other Parties, it being understood that all Parties need not sign the same
  counterpart. Delivery of an executed signature page to this Agreement by
  facsimile transmission shall be as effective as delivery of a manually signed
  counterpart of this Agreement. Section 7.3 Entire Agreement; No Third Party
  Beneficiaries. This Agreement constitutes the entire agreement and supersedes
  all prior agreements and understandings, both written and oral, among the
  Parties with respect to the subject matter hereof. This Agreement shall be
  binding upon and inure solely to the benefit of each Party hereto and their
  respective successors and permitted assigns, and nothing in this Agreement,
  express or implied, is intended to or shall confer upon any other Person any
  right, benefit or remedy of any nature whatsoever under or by reason of this
  Agreement. Section 7.4 Governing Law. This Agreement shall be governed by,
  and construed in accordance with, the law of the State of Delaware, without
  regard to the conflicts of laws principles thereof that would mandate the
  application of the laws of another jurisdiction. Section 7.5 Severability. If
  any term or other provision of this Agreement is invalid, illegal or
  incapable of being enforced by any law or public policy, all other terms and
  provisions of this Agreement shall nevertheless remain in full force and
  effect so long as the economic or legal substance of the transactions
  contemplated hereby is not affected in any manner materially adverse to any
  Party. Upon such determination that any term or other provision is invalid,
  illegal or incapable of being enforced, the Parties hereto shall negotiate in
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  10-14-2014#86439996v1 Agreement so as to effect the original intent of the
  Parties as closely as possible in an acceptable manner in order that the
  transactions contemplated hereby are consummated as originally contemplated
  to the greatest extent possible. Section 7.6 Assignments; Amendments;
  Successors; No Waiver. (a) Assignment. Neither any Member nor any LLC Option
  Holder may assign, sell, pledge, or otherwise alienate or transfer any
  interest in this Agreement, including the right to receive any Tax Benefit
  Payments under this Agreement, to any Person without the prior written
  consent of the Corporation, which consent shall not be unreasonably withheld,
  conditioned, or delayed, and without such Person executing and delivering a
  Joinder agreeing to succeed to the applicable portion of such Member’s or
  such LLC Option Holder’s interest in this Agreement and to become a Party for
  all purposes of this Agreement (the “Joinder Requirement”); provided,
  however, that to the extent any Member sells, exchanges, distributes, or
  otherwise transfers Units to any Person (other than the Corporation or Neff
  Holdings) in accordance with the terms of the LLC Agreement, the Members
  shall have the option to assign to the transferee of such Units its rights
  under this Agreement with respect to such transferred Units, provided that
  such transferee has satisfied the Joinder Requirement. For the avoidance of
  doubt, if a Member transfers Units in accordance with the terms of the LLC
  Agreement but does not assign to the transferee of such Units its rights
  under this Agreement with respect to such transferred Units, such Member
  shall continue to be entitled to receive the Tax Benefit Payments arising in
  respect of a subsequent Exchange of such Units. The Corporation may not
  assign any of its rights or obligations under this Agreement to any Person
  without the prior written consent of each of the Members and LLC Option
  Holders (and any purported assignment without such consent shall be null and
  void). (b) Amendments. No provision of this Agreement may be amended unless
  such amendment is approved in writing by each of the Parties; provided that
  amendment of the definition of Change of Control will also require the
  written approval of a majority of the Independent Directors. No provision of
  this Agreement may be waived unless such waiver is in writing and signed by
  the Party against whom the waiver is to be effective. (c) Successors. All of
  the terms and provisions of this Agreement shall be binding upon, and shall
  inure to the benefit of and be enforceable by, the Parties hereto and their
  respective successors, assigns, heirs, executors, administrators and legal
  representatives. The Corporation shall require and cause any direct or
  indirect successor (whether by purchase, merger, consolidation or otherwise)
  to all or substantially all of the business or assets of the Corporation, by
  written agreement, expressly to assume and agree to perform this Agreement in
  the same manner and to the same extent that the Corporation would be required
  to perform if no such succession had taken place. (d) Waiver. No failure by
  any Party to insist upon the strict performance of any covenant, duty,
  agreement, or condition of this Agreement, or to exercise any right or remedy
  consequent upon a breach thereof, shall constitute a waiver of any such
  breach or any other covenant, duty, agreement, or condition. 

  

 

	
  

  	
  28 DRAFT 10-14-2014#86439996v1
  Section 7.7 Titles and Subtitles. The titles of the sections and subsections
  of this Agreement are for convenience of reference only and are not to be
  considered in construing this Agreement. Section 7.8 Resolution of Disputes.
  (a) Except for Reconciliation Disputes subject to Section 7.9, any and all
  disputes which cannot be settled amicably, including any ancillary claims of
  any Party, arising out of, relating to or in connection with the validity,
  negotiation, execution, interpretation, performance or non-performance of
  this Agreement (including the validity, scope and enforceability of this
  arbitration provision) (each a “Dispute”) shall be finally resolved by
  arbitration in accordance with the [International Institute for Conflict Prevention
  and Resolution Rules for Non- Administered Arbitration]4F 4 by a panel of
  three arbitrators, of which the Corporation shall designate one arbitrator
  and the Members party to such Dispute shall designate one arbitrator in
  accordance with the “screened” appointment procedure provided in Resolution
  Rule 5.4. The arbitration shall be governed by the Federal Arbitration Act, 9
  U.S.C. §§ 1 et seq., and judgment upon the award rendered by the arbitrators
  may be entered by any court having jurisdiction thereof. The place of the
  arbitration shall be Miami, Florida. (b) Notwithstanding the provisions of
  paragraph (a), any Party may bring an action or special proceeding in any
  court of competent jurisdiction for the purpose of compelling another Party
  to arbitrate, seeking temporary or preliminary relief in aid of an
  arbitration hereunder, and/or enforcing an arbitration award and, for the
  purposes of this paragraph (b), each Party (i) expressly consents to the
  application of paragraph (c) of this Section 7.8 to any such action or
  proceeding, and (ii) agrees that proof shall not be required that monetary
  damages for breach of the provisions of this Agreement would be difficult to
  calculate and that remedies at law would be inadequate. For the avoidance of
  doubt, this Section 7.8 shall not apply to Reconciliation Disputes to be
  settled in accordance with the procedures set forth in Section 7.9. (c) Each
  Party hereby irrevocably and unconditionally submits, for itself and its
  property, to the exclusive jurisdiction of the Chancery Court of the State of
  Delaware or, if such Court declines jurisdiction, the courts of the State of
  Delaware sitting in Wilmington, Delaware, and of the U.S. District Court for
  the District of Delaware sitting in Wilmington, Delaware, and any appellate
  court from any thereof, in any action or proceeding arising out of or
  relating to this Agreement or for recognition or enforcement of any judgment,
  and each of the Parties hereto irrevocably and unconditionally agrees that
  all claims in respect of any such action or proceeding may be heard and
  determined in such Delaware State court or, to the fullest extent permitted
  by applicable law, in such U.S. District Court. Each Party agrees that a
  final judgment in any such action or proceeding shall be conclusive and may
  be enforced in other jurisdictions by suit on the judgment or in any other
  manner provided by law. (d) Each Party irrevocably and unconditionally
  waives, to the fullest extent permitted by law, any objection that it may now
  or hereafter have to the laying of venue of any suit, action or proceeding
  arising out of or relating to this Agreement in any court referred to in
  Section 4 Note to draft: please confirm if this venue is acceptable. 

  

 

	
  

  	
  29 DRAFT
  10-14-2014#86439996v1 7.8(c). Each Party irrevocably waives, to the fullest
  extent permitted by law, the defense of an inconvenient forum to the
  maintenance of any such suit, action or proceeding in any such court. (e)
  Each Party irrevocably consents to service of process by means of notice in
  the manner provided for in Section 7.1. Nothing in this Agreement shall
  affect the right of any Party to serve process in any other manner permitted
  by law. (f) WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY HERETO HEREBY
  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
  RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
  INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
  CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
  (g) Any dispute as to whether a dispute is a Reconciliation Dispute within
  the meaning of Section 7.9, or a Dispute within the meaning of this Section
  7.8, shall be decided and resolved as a Dispute subject to the procedures set
  forth in this Section 7.8. Section 7.9 Reconciliation. In the event that the
  Corporation and any Member are unable to resolve a disagreement with respect
  to a Schedule (other than an Early Termination Schedule) prepared in
  accordance with the procedures set forth in Section 2.4, or with respect to
  an Early Termination Schedule prepared in accordance with the procedures set
  forth in Section 4.2, within the relevant time period designated in this
  Agreement (a “Reconciliation Dispute”), the Reconciliation Dispute shall be
  submitted for determination to a nationally recognized expert (the “Expert”)
  in the particular area of disagreement mutually acceptable to both Parties.
  The Expert shall be a partner or principal in a nationally recognized
  accounting firm, and unless the Corporation and such Member agree otherwise,
  the Expert shall not, and the firm that employs the Expert shall not, have
  any material relationship with the Corporation or such Member or other actual
  or potential conflict of interest. If the Parties are unable to agree on an
  Expert within fifteen (15) calendar days of receipt by the respondent(s) of
  written notice of a Reconciliation Dispute, the selection of an Expert shall
  be treated as a Dispute subject to Section 7.8 and an arbitration panel shall
  pick an Expert from a nationally recognized accounting firm that does not
  have any material relationship with the Corporation or such Member or other
  actual or potential conflict of interest. The Expert shall resolve any matter
  relating to the Basis Schedule or an amendment thereto, Reverse 704(c)
  Schedule or an amendment thereto or the Early Termination Schedule or an
  amendment thereto within thirty (30) calendar days and shall resolve any
  matter relating to a Tax Benefit Schedule or an amendment thereto within
  fifteen (15) calendar days or as soon thereafter as is reasonably
  practicable, in each case after the matter has been submitted to the Expert
  for resolution. Notwithstanding the preceding sentence, if the matter is not
  resolved before any payment that is the subject of a disagreement would be
  due (in the absence of such disagreement) or any Tax Return reflecting the
  subject of a disagreement is due, the undisputed amount shall be paid on the
  date prescribed by this Agreement and such Tax Return may be filed as prepared
  by the Corporation, subject to adjustment or amendment upon resolution. The
  costs and expenses relating to the engagement of such Expert or amending any
  Tax Return shall be borne by the Corporation except as provided in the next
  sentence. The Corporation and the Members shall bear their own costs and
  expenses of such proceeding, unless (i) the Expert adopts the Member’s
  position, in which case the Corporation shall reimburse the Member for 

  

 

	
  

  	
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  10-14-2014#86439996v1 any reasonable and documented out-of-pocket costs and
  expenses in such proceeding, or (ii) the Expert adopts the Corporation’s
  position, in which case the Member shall reimburse the Corporation for any
  reasonable and documented out-of-pocket costs and expenses in such proceeding.
  The Expert shall finally determine any Reconciliation Dispute and the
  determinations of the Expert pursuant to this Section 7.9 shall be binding on
  the Corporation and the Members and may be entered and enforced in any court
  having competent jurisdiction. Section 7.10 Withholding. The Corporation
  shall be entitled to deduct and withhold from any payment that is payable to
  any Member or LLC Option Holder pursuant to this Agreement such amounts as
  the Corporation is required to deduct and withhold with respect to the making
  of such payment under the Code or any provision of U.S. state, local or
  foreign tax law. To the extent that amounts are so withheld and paid over to
  the appropriate Taxing Authority by the Corporation, such withheld amounts
  shall be treated for all purposes of this Agreement as having been paid by
  the Corporation to the relevant Member or LLC Option Holder. Each Member and
  each LLC Option Holder shall promptly provide the Corporation with any
  applicable tax forms and certifications reasonably requested by the
  Corporation in connection with determining whether any such deductions and
  withholdings are required under the Code or any provision of U.S. state,
  local or foreign tax law. Section 7.11 Admission of the Corporation into a
  Consolidated Group; Transfers of Corporate Assets. (a) If the Corporation is
  or becomes a member of an affiliated or consolidated group of corporations
  that files a consolidated income Tax Return pursuant to Section 1501 or other
  applicable Sections of the Code governing affiliated or consolidated groups,
  or any corresponding provisions of U.S. state or local law, then: (i) the
  provisions of this Agreement shall be applied with respect to the group as a
  whole; and (ii) Tax Benefit Payments, Early Termination Payments, and other
  applicable items hereunder shall be computed with reference to the
  consolidated taxable income of the group as a whole. (b) If any entity that
  is obligated to make a Tax Benefit Payment or Early Termination Payment
  hereunder transfers one or more assets to a corporation (or a Person
  classified as a corporation for U.S. income tax purposes) with which such
  entity does not file a consolidated Tax Return pursuant to Section 1501 of
  the Code, such entity, for purposes of calculating the amount of any Tax
  Benefit Payment or Early Termination Payment due hereunder, shall be treated
  as having disposed of such asset in a fully taxable transaction on the date
  of such contribution. The consideration deemed to be received by such entity
  shall be equal to the fair market value of the contributed asset. For
  purposes of this Section 7.11, a transfer of a partnership interest shall be
  treated as a transfer of the transferring partner’s share of each of the
  assets and liabilities of that partnership. Section 7.12 Confidentiality.
  Each Member or LLC Option Holder and its assignees acknowledges and agrees
  that the information of the Corporation is confidential and, except in the
  course of performing any duties as necessary for the Corporation and its
  Affiliates, as required by law or legal process or to enforce the terms of
  this Agreement, such Person shall keep and retain in the strictest confidence
  and not disclose to any Person any confidential matters, acquired pursuant to
  this Agreement, of the Corporation and its Affiliates and 

  

 

	
  

  	
  31 DRAFT
  10-14-2014#86439996v1 successors, learned by any Member or LLC Option Holder
  heretofore or hereafter. This Section 7.12 shall not apply to (i) any
  information that has been made publicly available by the Corporation or any
  of its Affiliates, becomes public knowledge (except as a result of an act of
  any Member or LLC Option Holder in violation of this Agreement) or is
  generally known to the business community, (ii) the disclosure of information
  to the extent necessary for a Member or LLC Option Holder to prosecute or
  defend claims arising under or relating to this Agreement, and (iii) the
  disclosure of information to the extent necessary for a Member or LLC Option
  Holder to prepare and file its Tax Returns, to respond to any inquiries
  regarding the same from any Taxing Authority or to prosecute or defend any
  action, proceeding or audit by any Taxing Authority with respect to such Tax
  Returns. Notwithstanding anything to the contrary herein, the Members, LLC
  Option Holders and each of their assignees (and each employee, representative
  or other agent of the Members or LLC Option Holders or their assignees, as
  applicable) may disclose at their discretion to any and all Persons, without
  limitation of any kind, the tax treatment and tax structure of the
  Corporation, the Members, the LLC Option Holders and any of their
  transactions, and all materials of any kind (including tax opinions or other
  tax analyses) that are provided to the Members or LLC Option Holders relating
  to such Tax treatment and Tax structure. If a Member, LLC Option Holder or an
  assignee commits a breach, or threatens to commit a breach, of any of the
  provisions of this Section 7.12, the Corporation shall have the right and
  remedy to have the provisions of this Section 7.12 specifically enforced by
  injunctive relief or otherwise by any court of competent jurisdiction without
  the need to post any bond or other security, it being acknowledged and agreed
  that any such breach or threatened breach shall cause irreparable injury to
  the Corporation or any of its Subsidiaries and that money damages alone shall
  not provide an adequate remedy to such Persons. Such rights and remedies
  shall be in addition to, and not in lieu of, any other rights and remedies
  available at law or in equity. Section 7.13 Change in Law. Notwithstanding
  anything herein to the contrary, if, in connection with an actual or proposed
  change in law, a Member reasonably believes that the existence of this
  Agreement could cause income (other than income arising from receipt of a
  payment under this Agreement) recognized by such Member (or direct or
  indirect equity holders in such Member) in connection with any Exchange to be
  treated as ordinary income rather than capital gain (or otherwise taxed at
  ordinary income rates) for U.S. federal income tax purposes or would have
  other material adverse tax consequences to such Member or any direct or
  indirect owner of such Member, then at the written election of such Member in
  its sole discretion (in an instrument signed by such Member and delivered to
  the Corporation) and to the extent specified therein by such Member, this
  Agreement shall cease to have further effect and shall not apply to an
  Exchange occurring after a date specified by such Member, or may be amended
  by in a manner reasonably determined by such Member, provided that such
  amendment shall not result in an increase in any payments owed by the
  Corporation under this Agreement at any time as compared to the amounts and
  times of payments that would have been due in the absence of such amendment.
  Section 7.14 Interest Rate Limitation. Notwithstanding anything to the
  contrary contained herein, the interest paid or agreed to be paid hereunder
  with respect to amounts due to any Member hereunder shall not exceed the maximum
  rate of non-usurious interest permitted by applicable Law (the “Maximum
  Rate”). If any Member shall receive interest in an amount that exceeds the
  Maximum Rate, the excess interest shall be applied to the Tax Benefit
  Payment, Estimated Tax Benefit Payment or Early Termination Payment, as
  applicable (but in each case 

  

 

	
  

  	
  32 DRAFT
  10-14-2014#86439996v1 exclusive of any component thereof comprising interest)
  or, if it exceeds such unpaid noninterest amount, refunded to the
  Corporation. In determining whether the interest contracted for, charged, or
  received by any Member exceeds the Maximum Rate, such Member may, to the
  extent permitted by applicable Law, (a) characterize any payment that is not
  principal as an expense, fee, or premium rather than interest, (b) exclude
  voluntary prepayments and the effects thereof, and (c) amortize, prorate,
  allocate, and spread in equal or unequal parts the total amount of interest
  throughout the contemplated term of the payment obligations owed by the
  Corporation to such Member hereunder. Notwithstanding the foregoing, it is
  the intention of the Lenders and the Borrower to conform strictly to any
  applicable usury laws. Section 7.15 Independent Nature of Rights and
  Obligations. The rights and obligations of the each Member and LLC Option
  Holder hereunder are several and not joint with the rights and obligations of
  any other Person. A Member or an LLC Option Holder shall not be responsible
  in any way for the performance of the obligations of any other Person
  hereunder, nor shall a Member or an LLC Option Holder have the right to
  enforce the rights or obligations of any other Person hereunder (other than
  the Corporation). The obligations of a Member or an LLC Option Holder
  hereunder are solely for the benefit of, and shall be enforceable solely by,
  the Corporation. Nothing contained herein or in any other agreement or
  document delivered at any closing, and no action taken by any Member or LLC
  Option Holder pursuant hereto or thereto, shall be deemed to constitute the
  Members and/or LLC Option Holders acting as a partnership, an association, a
  joint venture or any other kind of entity, or create a presumption that the
  Members and/or LLC Option Holders are in any way acting in concert or as a
  group with respect to such rights or obligations or the transactions
  contemplated hereby, and the Corporation acknowledges that the Members and
  LLC Option Holders are not acting in concert or as a group and will not
  assert any such claim with respect to such rights or obligations or the transactions
  contemplated hereby. [Signature Page Follows This Page] 

  

 

	
  

  	
  [Signature Page
  to Tax Receivable Agreement] NY\6516862.10 DRAFT 10-14-2014#86439996v1 IN
  WITNESS WHEREOF, the undersigned have executed or caused to be executed on
  their behalf this Agreement as of the date first written above. CORPORATION:
  NEFF CORPORATION By: _________________________________ Name: Title: MEMBERS:
  WAYZATA OPPORTUNITIES FUND II, L.P. By: WOF II GP, L.P., its General Partner
  By: WOF II GP, LLC, its General Partner By: _________________________________
  Name: Title: WAYZATA OPPORTUNITIES FUND OFFSHORE, L.P. By: [WOFO II GP,
  L.P.], its General Partner By: [WOFO II GP, LLC], its General Partner By:
  _________________________________ Name: Title: NEFF HOLDINGS: NEFF HOLDINGS LLC
  By: _________________________________ Name: Title: 

  

 

	
  

  	
  34 DRAFT
  10-14-2014#86439996v1 LLC OPTION HOLDERS James Continenza
  ____________________________________ Robert Singer
  ____________________________________ Graham Hood
  ____________________________________ Mark Irion
  ____________________________________ Wes Parks
  ____________________________________ Henry Lawson
  ____________________________________ John Anderson
  ____________________________________ Brad Nowell
  ____________________________________ 

  

 

	
  

  	
  35 DRAFT
  10-14-2014#86439996v1 Steven Settelmayer ____________________________________
  Paula Papamarcos ____________________________________ Steve Michaels
  ____________________________________ Tom Sutherland
  ____________________________________ Tammy Parham
  ____________________________________ Jim Horn
  ____________________________________ Bryant Becton
  ____________________________________ Bobby Corner
  ____________________________________ 

  

 

	
  

  	
  [Exhibit A]
  DRAFT 10-14-2014#86439996v1 Exhibit A FORM OF JOINDER AGREEMENT This JOINDER
  AGREEMENT, dated as of _________________, 20___ (this “Joinder”), is
  delivered pursuant to that certain Tax Receivable Agreement, dated as of [.],
  2014 (as amended, restated, amended and restated, supplemented or otherwise
  modified from time to time, the “Tax Receivable Agreement”) by and among Neff
  Corporation, a Delaware corporation (the “Corporation”);;, [Neff Holdings
  LLC, a Delaware limited liability company (“Neff Holdings”),] and each of the
  Members from time to time party thereto. Capitalized terms used but not
  otherwise defined herein have the respective meanings set forth in the Tax
  Receivable Agreement. 1. Joinder to the Tax Receivable Agreement. The
  undersigned hereby represents and warrants to the Corporation that, as of the
  date hereof, the undersigned is a member of Neff Holdings, and that it
  acquired [__________] Units in Neff Holdings upon assignment from a Member.
  2. Joinder to the Tax Receivable Agreement. Upon the execution of this
  Joinder by the undersigned and delivery hereof to the Corporation, the
  undersigned hereby is and hereafter will be a Member under the Tax Receivable
  Agreement and a Party thereto, with all the rights, privileges and
  responsibilities of a Member thereunder. The undersigned hereby agrees that
  it shall comply with and be fully bound by the terms of the Tax Receivable
  Agreement as if it had been a signatory thereto as of the date thereof. 3.
  Incorporation by Reference. All terms and conditions of the Tax Receivable
  Agreement are hereby incorporated by reference in this Joinder as if set
  forth herein in full. 4. Address. All notices under the Tax Receivable
  Agreement to the undersigned shall be direct to: [Name] [Address] [City,
  State, Zip Code] Attn: Facsimile: E-mail: IN WITNESS WHEREOF, the undersigned
  has duly executed and delivered this Joinder as of the day and year first
  above written. [NAME OF NEW PARTY] By: _________________________________
  Name: Title: 

  

 

	
  

  	
  [Exhibit A]
  DRAFT 10-14-2014#86439996v1 Acknowledged and agreed as of the date first set
  forth above: NEFF CORPORATION By: ___________________________ Name: Title: 

  

 

	
  

  	
  #86469808v2
  EXHIBIT E FORM OF AMENDED NEFF HOLDINGS LLC MANAGEMENT EQUITY PLAN [see
  attached] 

  

 

	
  

  	
  Posting Version
  #86439998v1 Neff Holdings LLC Management Equity Plan Amended and Restated as
  of October [__], 2014 Neff Holdings LLC, a Delaware limited liability company
  (the “Company”), originally adopted the Neff Holdings LLC Management Equity
  Plan (as amended and restated herein and as may be amended, supplemented,
  amended and restated or otherwise modified from time to time, the “Plan”),
  effective as of October 1, 2010. The Plan is hereby amended and restated in
  its entirety, effective as of October [_], 2014, in connection with the
  contemplated IPO and Recapitalization and associated conversion of each
  outstanding Award with respect to Class B Units into an Award with respect to
  Common Units. As of the Effective Time, all outstanding Awards, as so
  converted, will be governed by this amendment and restatement of the Plan,
  and, notwithstanding anything to the contrary herein, no additional Awards
  will be granted under the Plan. Section 1. Purpose. The purposes of the Plan
  are to provide an incentive for management and other employees, prospective
  employees and members of the Board of the Company and/or its subsidiaries by
  acquiring a proprietary interest in the success of the Company, to enhance
  the long-term performance of the Company and to remain in the service of the
  Company and/or its subsidiaries. Section 2. Definitions. Capitalized terms
  used in this Plan and not defined in this Plan shall have the meanings given
  thereto in the LLC Agreement. When used in this Plan, unless the context
  otherwise requires, the following terms shall have the meanings set forth next
  to such terms: (a) “Award” shall mean an award under this Plan as described
  in Section 5 hereof. (b) “Award Agreement” shall mean a written agreement
  entered into between the Company and the Grantee in connection with an Award.
  (c) “Board” shall mean the board of managers of the Company. (d) “Cause”
  shall mean, with respect to any Grantee, that one or more of the following
  has occurred: (i) the Grantee is convicted of a felony or pleads guilty or
  nolo contendere to a felony (whether or not with respect to the Company or
  any of its affiliates or subsidiaries); (ii) a failure of the Grantee to
  substantially perform his responsibilities and duties to the Company or any
  of its subsidiaries, after ten (10) days’ written notice given by the Company
  or its subsidiaries, which notice shall identify the failure in sufficient
  detail and grant the Grantee an opportunity to cure such failure within such
  ten (10) day period; (iii) the failure of the Grantee to carry out or comply
  with any lawful and reasonable directive of the Board (or any committee of
  the Board), any Subsidiary Governing Body, or the Chief Executive Officer of
  the Company or any of its subsidiaries, which is not remedied within ten (10)
  days after the Grantee’s receipt of written notice from any of the foregoing
  specifying such failure; (iv) the Grantee engages in illegal conduct, any act
  of dishonesty, breach of fiduciary duty (if any) or other misconduct, in each
  case in this clause (iv), against the Company, or any of its affiliates or
  subsidiaries; (v) a material violation or willful breach by the Grantee of
  any of the policies or 

  

 

 

	
  

  	
  2 #86439998v1
  procedures of the Company, or any of its subsidiaries, including, without any
  limitation, any employee manual, handbook or code of conduct of the Company
  or any of its subsidiaries which, to the extent curable, is not remedied
  within ten (10) days after the Grantee’s receipt of written notice given by
  the Company or any of its subsidiaries identifying the conduct in sufficient
  detail and granting the Grantee an opportunity to cure such conduct within
  such ten (10) day period; (vi) the Grantee fails to meet any material
  obligation Grantee may have under any agreement entered into with the Company
  or any of its subsidiaries; including, but not limited to, the LLC Agreement
  and any agreement entered into in connection with the Grantee’s employment or
  engagement with the Company or any of its subsidiaries which, to the extent
  curable, is not remedied within ten (10) days after the Grantee’s receipt of
  written notice given by the Company or any of its subsidiaries identifying
  the conduct in sufficient detail and granting the Grantee an opportunity to
  cure such conduct within such ten (10) day period; (vii) the Grantee’s
  habitual abuse of narcotics or alcohol; or (viii) the Grantee’s breach of any
  non-compete, non-solicit, confidentiality or other restrictive covenant to
  which the Grantee may be subject, pursuant to an employment agreement or
  otherwise. (e) “Committee” shall mean the Committee hereinafter described in
  Section 3 hereof. (f) “Fair Market Value” shall mean, with respect to any
  Award (including, without limitation, any Common Units), the fair market
  value of such Award, as determined in the sole discretion of the Committee,
  subject to Section 10 hereof, as applicable. (g) “Grantee” shall mean a
  person who receives an Award. (h) “LLC Agreement” shall mean the Second
  Amended and Restated Limited Liability Company Agreement of Neff Holdings
  LLC, dated as of October [_], 2014, as such agreement may be amended,
  supplemented, amended and restated or otherwise modified from time to time,
  together with all schedules, exhibits and annexes thereto. (i) “Prior LLC
  Agreement” shall mean the First Amended and Restated Limited Liability
  Company Agreement of the Company, dated as of October 1, 2010. (j) “Sale
  Transaction” shall mean the bona fide sale, lease, Transfer, issuance or
  other disposition, in one transaction or a series of related transactions, of
  (x) all or substantially all of the consolidated assets of the Company and
  its Subsidiaries or (y) at least a majority of the then-issued and outstanding
  Common Units to (in either case) any Person or group of related Persons
  (other than a Member or an Affiliate of a Member or the Company or an
  Affiliate of the Company), whether directly or indirectly or by way of any
  merger, statutory share exchange, sale or issuance of equity, tender offer,
  consolidation or other business combination transaction or purchase of
  beneficial ownership, provided, however, that a Sale Transaction shall not
  include a dividend or other distribution of cash or other assets of the
  Company to the Members (or any of the Members) made with the proceeds of
  borrowed money, regardless of whether the borrowing incurred to finance such
  dividend or distribution was incurred prior to or after such dividend or
  distribution. (k) “Section 409A” shall mean Section 409A of the Code. Section
  3. Administration. 

  

 

	
  

  	
  3 #86439998v1
  (a) The Plan shall be administered by the Board or, if the Board shall so
  determine, by a Committee consisting of one or more Board members, selected
  by the Board. Any member of the Committee may resign by giving written notice
  thereof to the Board, and any member of the Committee may be removed at any
  time, with or without cause, by the Board. Any vacancy on the Committee shall
  be filled by the Board. During any period in which the Plan is administered
  by the Board, all references in the Plan or in any Award Agreement to the
  Committee shall be deemed to refer to the Board. (b) The Committee shall have
  complete authority to interpret and administer this Plan and each Award Agreement,
  including, without limitation, the power (i) to exercise all of the powers
  granted to it under the Plan, (ii) to construe, interpret and implement the
  Plan and any Award Agreement, (iii) to prescribe, amend and rescind rules and
  regulations relating to the Plan, including rules governing its own
  operations, (iv) to make all determinations necessary or advisable in
  administering the Plan, (v) to correct any defect, supply any omission and
  reconcile any inconsistency in the Plan, (vi) to amend the Plan to reflect
  changes in applicable law, (vii) to delegate such powers and authority to
  such person as it deems appropriate, and (viii) to waive any conditions under
  any Awards. The determination of the Committee on all matters relating to the
  Plan or any Award Agreement shall be final, binding and conclusive. Section
  4. Eligibility for Awards. Awards under the Plan shall be made to such
  members of the Board and any Subsidiary Governing Body (as defined in the
  Prior LLC Agreement), and employees and prospective employees of the Company
  and/or its subsidiaries, as the Committee selects in its sole discretion.
  Section 5. Awards Under the Plan. (a) Awards may be made under the Plan in
  the form of Common Units, phantom units or options, warrants or other securities
  that are convertible, exercisable or exchangeable for or into Common Units,
  as the Committee determines is in the interest of the Company. (b) Each Award
  granted under the Plan shall be evidenced by an Award Agreement which shall
  contain such provisions (such as vesting, and manner and method of
  conversion, exchange or exercise (to the extent applicable)) as the Committee
  in its discretion deems necessary or desirable, consistent with the terms of
  this Plan and the LLC Agreement. The duration of any Award that is
  convertible, exchangeable or exercisable for or into Common Units shall have
  a duration that is fixed by the Committee, in its sole discretion, but in no
  event shall such Award remain in effect for a period of more than ten (10)
  years from the date of grant. (c) Any Award for Common Units, or, in the
  event an Award is converted, exercised or exchanged for or into Common Units,
  such conversion, exercise or exchange, shall be conditioned on (i) the
  Grantee executing a Joinder Agreement and becoming a Member under and bound
  by the terms of the LLC Agreement and (ii) the Grantee’s compliance with all
  other terms and conditions set forth in the LLC Agreement to be admitted as a
  Member. Section 6. Vesting and Forfeiture. Except as otherwise provided in
  the applicable Award Agreement, 

  

 

	
  

  	
  4 #86439998v1
  (a) Any portion of any then outstanding Award that is not vested (after
  taking into account any accelerated vesting that may apply under the Award
  Agreement or Section 7 hereof) and/or, if applicable, exercisable or
  exercised, convertible or converted, exchangeable or exchanged, at the time
  of the Grantee’s termination of employment or service with the Company or any
  of its subsidiaries, for any reason, shall immediately be forfeited and
  terminate and the Grantee shall no longer have any rights or interests in
  such Award. (b) If (i) the Grantee’s employment or service with the Company
  or any of its subsidiaries is terminated for Cause, (ii) the Grantee’s
  employment or service with the Company (and/or any of its subsidiaries) is
  terminated by the Company (and/or any of its subsidiaries) or the Grantee for
  any reason and the Grantee committed an act constituting Cause prior to such
  termination (regardless of whether the Grantee’s employment or service was terminated
  for Cause) and which such act, to the extent a cure period was allowed for
  such act in the definition of Cause, was not cured within such period prior
  to such termination or (iii) the Grantee breaches any restrictive covenants,
  including non-competition, non-solicitation and confidentiality covenants,
  with the Company (and/or any of its subsidiaries), all of the Grantee’s then
  outstanding Awards, whether or not previously vested and/or, if applicable,
  exercisable or exercised, convertible or converted, or exchangeable or
  exchanged, shall immediately be forfeited and terminate and the Grantee shall
  no longer have any rights or interests in such Award or anything such Award
  was exercised, converted or exchanged for or into. For purposes of this Section
  6(b), the term “Cause” shall include, with respect to any Grantee that has an
  employment agreement with the Company (and/or any of its subsidiaries), in
  addition to (and not in lieu of) the definition of “Cause” set forth in this
  Plan, the definition of “Cause” set forth in such employment agreement. (c)
  Without limiting the conditions of Section 6(b) hereof, prior to the
  consummation of a Qualified Public Offering (as defined in the Prior LLC
  Agreement), in the event the Grantee’s employment or service with the Company
  and/or any of its subsidiaries is terminated for any reason (whether by the
  Company, the Grantee or any such subsidiary) and the Grantee has outstanding
  and vested Awards at the time of such termination, the Company shall have the
  right, but not the obligation, to elect within ninety (90) days of the
  effective date of termination of the Grantee’s employment or service or such
  other time periods as are prescribed by the Committee and set forth in an
  Award Agreement or any repurchase agreement thereunder, to repurchase the
  Grantee’s then outstanding and vested Awards. Unless otherwise prescribed by
  the Committee and set forth in an Award Agreement, such Awards shall be
  repurchased by the Company at the Fair Market Value of the applicable Award, less,
  to the extent applicable, any amounts owed by the Grantee to the Company
  pursuant to any loans outstanding under Section 5.2 (or any successor
  provision) of the Prior LLC Agreement or any other amounts owed by the
  Grantee to the Company or any of its subsidiaries. Section 7. Sale
  Transaction. (a) Subject to Section 6 hereof and except as provided in an
  Award Agreement, upon the occurrence of a Sale Transaction which occurs while
  the Grantee is still employed by, or in service with, the Company or any of
  its subsidiaries, all of the Grantee’s unvested Awards shall immediately
  become vested and/or exercisable, convertible or exchangeable, as applicable.
  

  

 

	
  

  	
  5 #86439998v1
  (b) In addition, in the event of a Sale Transaction, with respect to any
  Award that is convertible, exchangeable or exercisable for or into Common
  Units, the Committee shall, in its sole discretion, either (i) provide for
  the assumption of such Awards theretofore granted, or the substitution for
  such Awards of new awards of the successor company or a parent or subsidiary
  thereof, with appropriate adjustments as to the number and kinds of shares
  and the per share exercise prices, consistent with Section 11 hereof, (ii)
  provide written notice to any holder of such Award that the Award shall be
  terminated to the extent that it is not converted, exchanged or exercised
  prior to a date certain specified in such notice (which date shall be no
  sooner than the consummation of the Sale Transaction) or (iii) provide that
  the Grantee of any such Award, to the extent then vested, shall be entitled
  to receive from the Company an amount equal to the excess of (A) the Fair
  Market Value (determined on the basis of the amount received by Members of
  the Company in connection with such transaction and consistent with Section
  409A of the Code) of the Common Units subject to the vested portion of the
  Award not theretofore converted, exchanged or exercised, over (B) the
  aggregate purchase price which would be payable for such Common Units upon
  the conversion, exchange or exercise of such Award. Any actions under this
  Section 7 shall, to the extent applicable, be in accordance with the
  regulations promulgated under Section 409A of the Code so as not to cause a
  modification or deemed new grant of the Award. Section 8. Section 83(b) of
  the Code. As a requirement for receiving an Award of, or to acquire, Common
  Units under the Plan, each Grantee shall, if, and only if, required by the
  Committee, agree to make a timely election pursuant to Section 83(b) of the
  Code to include in the Grantee’s gross income or alternative minimum taxable
  income, as the case may be, for the taxable year in which the Award is
  granted (or, if applicable, exercised, converted or exchanged), the amount of
  any compensation taxable to the Grantee in connection with the Grantee’s
  receipt of such Award. If the Committee requires the Grantee to make such an
  election, the Grantee shall notify the Committee of such election within ten
  (10) days of filing notice of the election with the Internal Revenue Service,
  in addition to any filings and notifications required pursuant to the
  regulations issued under Section 83(b) of the Code. Section 9. Restrictions
  on Transfer. Except as otherwise provided in an Award Agreement, (a)
  Notwithstanding anything in the LLC Agreement to the contrary, no Awards of
  Common Units may be Transferred until vested; provided, however, that the
  Grantee may Transfer such unvested Awards to any one or more of the Grantee’s
  Family Members (as defined in the Prior LLC Agreement) if the requirements
  set forth in the LLC Agreement relating to such Transfer are complied with
  and provided the Award remains subject to this Plan and any Award Agreement
  (including any repurchase rights in favor of the Company). As a condition to
  such Transfer, the Transferee shall execute and deliver to the Company (i) a
  Joinder Agreement, (ii) a written undertaking, in form and substance
  satisfactory to the Committee, that such Transferee shall Transfer any Awards
  (vested or unvested) back to the Grantee if such Transferee ceases to be a
  Family Member of such Grantee and (iii) a written agreement acknowledging
  that such Transferred Award is subject to vesting, may never become vested
  and is subject to the terms and conditions of the Plan, the Award Agreement and
  the LLC Agreement. Any proposed Transfer of vested Awards of Common Units
  shall be in accordance with the LLC Agreement and the Award Agreement. 

  

 

	
  

  	
  6 #86439998v1
  (b) Awards that are convertible, exercisable or exchangeable for or into
  Common Units may not be Transferred at any time prior to such conversion,
  exercise or exchange; provided, however, that the Grantee may Transfer any
  unvested Award to any one or more of the Grantee’s Family Members provided
  the Award remains subject to this Plan and any Award Agreement (including any
  repurchase rights in favor of the Company). As a condition to such Transfer,
  (i) the Transferee shall execute and deliver to the Company (A) a written
  undertaking, in form and substance satisfactory to the Committee, that such
  Transferee shall Transfer any Awards (vested or unvested) back to the Grantee
  if such Transferee ceases to be a Family Member of such Grantee and (B) a
  written agreement (1) acknowledging that such Transferred Award is subject to
  vesting, may never become vested, and is subject to the terms of the Plan,
  the Award Agreement and, upon conversion, exercise or exchange, the LLC
  Agreement and (2) agreeing to execute and deliver to the Company, upon the
  conversion, exercise or exchange of the Award, a Joinder Agreement and a
  written undertaking referred to above, and (ii) each such agreement referred
  to in clause (2) above shall be, in fact, executed and delivered to the
  Company upon the conversion, exercise or exchange of the Award. Section 10.
  Conformity to Section 409A of the Code. It is intended that all Awards under
  this Plan and any Award Agreement, either be exempt from or comply with
  Section 409A. All options or other similar Awards that are granted with an
  exercise price shall be granted with an exercise price, such that the Award
  would not constitute deferred compensation under Section 409A. Any ambiguity
  in this Plan and any Award Agreement shall be interpreted to comply with
  Section 409A. To the extent applicable, (i) each amount or benefit payable pursuant
  to this Plan and any Award Agreement shall be deemed a separate payment for
  purposes of Section 409A and (ii) in the event the stock of the Company is
  publicly traded on an established securities market or otherwise and the
  Grantee is a “specified employee” (as determined under the Company’s
  administrative procedure for such determinations, in accordance with Section
  409A) at the time of the Grantee’s termination of employment, any payments
  under this Plan or any Award Agreement that are deemed to be deferred
  compensation subject to Section 409A shall not be paid or begin payment until
  the earlier of the Grantee’s death and the first day following the six (6)
  month anniversary of the Grantee’s date of termination of employment. Section
  11. Adjustment. If, prior to the complete conversion, exchange or exercise of
  any Award that is convertible, exchangeable or exercisable for or into Common
  Units, the Units of the Company shall be split up, converted, exchanged,
  reclassified, or in any way substituted for or in the event of any
  extraordinary dividend or extraordinary distribution (of cash, Units,
  securities or other property), then the Award, to the extent it has not been
  converted, exchanged or exercised, shall be adjusted as the Committee deems
  appropriate to prevent the enlargement or dilution of rights of the Grantee,
  provided, however, that any such adjustment shall, to the extent applicable,
  be in accordance with the regulations promulgated under Section 409A so as
  not to cause a modification or deemed new grant of the Award. For avoidance
  of doubt, in no event shall any distributions for taxes or any regularly
  scheduled distribution or dividend paid pursuant to a distribution or
  dividend policy established by the Board constitute extraordinary dividends
  or extraordinary distributions. Section 12. Amendment Suspension or
  Termination of the Plan. The Board may from time to time suspend,
  discontinue, terminate, revise or amend (i) the Plan in any respect
  whatsoever and (ii) any Award Agreement, to the extent provided in such Award
  Agreement; provided, however, 

  

 

	
  

  	
  7 #86439998v1
  that in no event shall any such action adversely affect the rights of any
  Grantee in any material respect (without regard to any effect resulting from
  the individual circumstances of such Grantee) with respect to any previously
  granted Award without such Grantee’s consent, except to the extent such
  action is required by, or is necessary to comply with, law. Section 13.
  General Provisions. (a) No Right to Employment. Nothing contained in this
  Plan, any Award Agreement or the LLC Agreement shall confer upon any Grantee
  the right to continue in the employ of or association with the Company, its
  subsidiaries or its affiliates, or affect any rights which the Company, its
  subsidiaries or its affiliates may have to terminate such employment or
  association for any reason at any time. (b) Non-Uniform Determinations. The
  Committee’s determinations under the Plan need not be uniform and may be made
  by it selectively among persons who receive or are eligible to receive Awards
  (whether or not such persons are similarly situated). Without limiting the
  generality of the foregoing, the Committee shall be entitled, among, other
  things, to make non-uniform and selective determinations, and to enter into
  non-uniform and selective Award Agreements, as to the person to receive
  Awards under the Plan, and the terms and provisions of Awards under the Plan.
  (c) Freedom of Action. Nothing contained in the Plan or any Award Agreement
  shall be construed to prevent the Company, its subsidiaries, its affiliates
  or any of the holders of Common Units from taking any corporate action,
  including, but not limited to, any recapitalization, reorganization, merger,
  consolidation, dissolution or sale, which is deemed by the Company, its
  subsidiaries, its affiliates or any of the holders of Common Units to be
  appropriate or in its or their best interest, whether or not such action
  would have an adverse effect on the Plan or any Awards thereunder. (d)
  Section Headings; Construction. The section headings contained herein are for
  the purpose of convenience only and are not intended to define or limit the
  contents of the sections. All words used in this Plan shall be construed to
  be of such gender or number, as the circumstances require. Unless otherwise
  expressly provided, the word “including” does not limit the preceding words
  or terms. (e) Governing Law. This Plan, any Award Agreement hereunder and any
  conflicts arising, hereunder or related hereto shall be governed by, and construed
  under, the laws of the State of Delaware, all rights and remedies being
  governed by said laws, regardless of the laws that might otherwise govern
  under applicable principles, to the fullest extent permitted by law, of
  conflicts of laws. (f) Severability; Entire Agreement. In the event any
  provision of this Plan or any Award Agreement shall be held illegal, invalid
  or unenforceable for any reason, the illegality, invalidity or
  unenforceability shall not affect the remaining provisions of this Plan and such
  illegal, invalid or unenforceable provision shall be deemed modified as if
  the illegal, invalid or unenforceable provisions had not been included. The
  Plan, any Award Agreement and the LLC Agreement contain the entire agreement
  of the parties with respect to the subject matter thereof 

  

 

	
  

  	
  8 #86439998v1
  and supersede all prior agreements, promises, covenants, arrangements,
  communications, representations and warranties between them, whether written
  or oral, with respect to the subject matter thereof. (g) Survival of Terms;
  Conflicts. The provisions of this Plan shall survive the termination of this
  Plan to the extent consistent with, or necessary to carry out, the purposes
  thereof. To the extent of any conflict between the Plan, any Award Agreement
  and the LLC Agreement, the LLC Agreement shall control; provided, however,
  that the Plan may impose greater restrictions or grant lesser rights than the
  LLC Agreement; and provided, further, that any Award Agreement may impose
  greater restrictions or grant lesser rights than either the LLC Agreement or
  the Plan. Subject to the second proviso in the immediately preceding
  sentence, in the event of any conflict between the Plan and any Award
  Agreement, the Plan shall control. (h) No Third Party Beneficiaries. Except
  as expressly provided therein, none of the Plan, any Award Agreement or the
  LLC Agreement shall confer on any person other than the Company and the
  Grantee any rights or remedies thereunder. (i) Successors and Assigns. The
  terms of this Plan shall be binding upon and inure to the benefit of the
  Company, its subsidiaries and their successors and assigns. (j) Notices. All
  notices, requests, waivers and other communications under the Plan or any
  Award Agreement shall be in writing and shall be deemed to be effectively
  given, sent, provided, delivered or received (i) when personally delivered to
  the party to be notified, (ii) when sent by confirmed facsimile or by
  electronic mail (“e-mail”) to the party to be notified, (iii) three (3)
  Business Days after deposit in the United States mail, postage prepaid, by
  certified or registered mail with return receipt requested, addressed to the
  party to be notified or (iv) one (1) Business Pay after deposit with a
  national overnight delivery service, postage prepaid, addressed to the party
  to be notified with next-Business Day delivery guaranteed, in each case sent
  or addressed to the Company at its principal office and to the Grantee at the
  Grantee’s mailing address, facsimile number or e-mail address as carried in
  the record books of the Company or at such other mailing address, facsimile
  number or e-mail address as the Grantee may from time to time designate in
  writing to the Company. The Grantee may change his or her mailing address,
  facsimile number or e-mail address for purposes of notice hereunder by giving
  notice of such change to the Company as provided herein.

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