Document:

EX-10.1

 Exhibit 10.1 

[                    ], 2021 

 

			
	From:	  	[Dealer]
		  	[                    ]
		  	[                    ]
	Attention:	  	[                    ]
	Telephone No.:	  	[                    ]
	Email:	  	[                    ]
		
	To:	  	Eventbrite, Inc.
		  	155 5th Street, 7th Floor
		  	San Francisco, CA 94103
	Attention:	  	[                    ]
	Telephone No.:	  	[                    ]
	Email:	  	[                    ]

 Re:
[Base]1[Additional]2 Call Option Transaction 

The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of the call option
transaction entered into on the Trade Date specified below (the “Transaction”) between [Dealer] (“Dealer”) and Eventbrite, Inc. (“Counterparty”). This communication constitutes a
“Confirmation” as referred to in the Agreement specified below. 
 1. This Confirmation is subject to, and incorporates, the
definitions and provisions of the 2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with the
2006 Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”). Certain defined terms used herein have the meanings assigned to them in the
Offering Memorandum dated March 8, 2021 (as so supplemented, the “Offering Memorandum”) relating to the USD 185,000,000 principal amount of 0.750% Convertible Senior Notes due 2026 (the “Base Convertible
Securities”) issued by Counterparty (as increased by up to an additional USD 27,750,000 principal amount of 0.750% Convertible Senior Notes due 2026 [that may be]3 issued pursuant to the
option to purchase additional convertible securities [exercised on the date hereof]4 (the “Optional Convertible Securities” and, together with the Base Convertible Securities, the
“Convertible Securities”)) pursuant to an Indenture to be dated March 11, 2021 between Counterparty and Wilmington Trust, National Association, as trustee (the “Indenture”). In the event of any inconsistency
between the terms defined in the Indenture and this Confirmation, this Confirmation shall govern. The parties acknowledge that this Confirmation is entered into on the date hereof with the understanding that (i) definitions set forth in the
Indenture that are also defined herein by reference to the Indenture and (ii) sections of the Indenture that are referred to herein, in each case, will conform to the descriptions thereof in the Offering Memorandum. If any such definitions in
the Indenture or any such sections of the Indenture differ from the descriptions thereof in the Offering Memorandum, the descriptions thereof in the Offering Memorandum will govern for purposes of this Confirmation. For the avoidance of doubt,
subject to the foregoing, references herein to sections of, or definitions set forth in, the Indenture are based on the draft of the Indenture most recently reviewed by the parties at the time of execution of this Confirmation. If any relevant
sections of, or definitions set forth in, the Indenture are changed, added or renumbered between the execution of this Confirmation and the execution of the Indenture, the parties will amend this Confirmation in good faith and in a commercially
reasonable manner to preserve the economic intent of the parties as evidenced by such draft of the Indenture. In addition, subject to the foregoing, the parties acknowledge that references to the Indenture herein are references to the Indenture as
in effect on the date of its execution and if the Indenture is, or the Convertible Securities are, amended, modified or supplemented following such date, any such amendment, modification or supplement (other than any amendment, modification or
supplement (i) pursuant to Section 5.09 of the Indenture, 
  

	1 	 Include for base capped call. 

	2 	 Include for additional capped call. 

	3 	 Include for base capped call. 

	4 	 Include for additional capped call. 

  
 Page 1 of 31 

 
subject to the provisions opposite the caption “Discretionary Adjustments” in Section 2 hereof, or (ii) pursuant to Section 8.01(I) of the Indenture that, as determined
by the Calculation Agent in good faith and in a commercially reasonable manner, conforms the Indenture to the description of Convertible Securities in the Offering Memorandum) will be disregarded for purposes of this Confirmation unless the parties
agree otherwise in writing. 
 Each party is hereby advised, and each such party acknowledges, that the other party has engaged in, or
refrained from engaging in, substantial financial transactions and has taken other material actions in reliance upon the parties’ entry into the Transaction to which this Confirmation relates on the terms and conditions set forth below. 

This Confirmation evidences a complete and binding agreement between Dealer and Counterparty as to the terms of the Transaction to which this
Confirmation relates. This Confirmation shall be subject to an agreement (the “Agreement”) in the form of the 2002 ISDA Master Agreement as if Dealer and Counterparty had executed an agreement in such form on the date hereof (but without
any Schedule except for (i) the election of US Dollars (“USD”) as the Termination Currency, (ii) the election of the laws of the State of New York as the governing law (without reference to choice of law doctrine)[, (iii) the
election of an executed guarantee of [                    ]5 (“Guarantor”) dated as of
the Trade Date in customary form as a Credit Support Document, (iv) the election of Guarantor as Credit Support Provider in relation to Dealer]9 and [iv][(iii)] (A) the election that the
“Cross Default” provisions of Section 5(a)(vi) of the Agreement shall apply to Dealer with a “Threshold Amount” of three percent of Dealer’s [ultimate parent’s]6
shareholders’ equity; provided that “Specified Indebtedness” shall not include obligations in respect of deposits received in the ordinary course of Dealer’s banking business, (B) the phrase “or becoming capable
at such time of being declared” shall be deleted from clause (1) of such Section 5(a)(vi) and (C) the following language shall be added to the end thereof “Notwithstanding the foregoing, a default under subsection
(2) hereof shall not constitute an Event of Default if (x) the default was caused solely by error or omission of an administrative or operational nature; (y) funds were available to enable the party to make the payment when due; and
(z) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.”). 

All provisions contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as expressly modified herein.
In the event of any inconsistency among this Confirmation, the Equity Definitions, the 2006 Definitions or the Agreement, the following shall prevail in the order of precedence indicated: (i) this Confirmation; (ii) the Equity Definitions;
(iii) the 2006 Definitions; and (iv) the Agreement. For the avoidance of doubt, except to the extent of an express conflict, the application of any provision of this Confirmation, the Agreement, the Equity Definitions or the 2006
Definitions shall not be construed to exclude or limit any other provision of this Confirmation, the Agreement, the Equity Definitions or the 2006 Definitions. 

The Transaction hereunder shall be the sole Transaction under the Agreement. If there exists any ISDA Master Agreement between Dealer and
Counterparty or any confirmation or other agreement between Dealer and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between Dealer and Counterparty, then notwithstanding anything to the contrary in such ISDA Master
Agreement, such confirmation or agreement or any other agreement to which Dealer and Counterparty are parties, the Transaction shall not be considered a “Transaction” under, or otherwise governed by, such existing or deemed ISDA Master
Agreement. 
 2. The Transaction constitutes a Share Option Transaction for purposes of the Equity Definitions. The terms of the particular
Transaction to which this Confirmation relates are as follows: 
  

			
	General Terms:	  	
		
	Trade Date:	  	[                    ], 2021

  
  

 

	5 	 Include if Dealer is not the highest rated entity in group. 

	6 	 Include if guarantee is provided. 

  
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	Effective Date:	  	The closing date of the [initial]7 issuance of the Convertible Securities [issued pursuant to the option to purchase Optional Convertible Securities exercised on the date hereof]8.
		
	Option Style:	  	Modified American, as described under “Procedures for Exercise” below.
		
	Option Type:	  	Call
		
	Seller:	  	Dealer
		
	Buyer:	  	Counterparty
		
	Shares:	  	The Class A Common Stock of Counterparty, par value USD 0.00001 (Ticker Symbol: “EB”).
		
	Number of Options:	  	[The number of Base Convertible Securities in denominations of USD 1,000 principal amount issued by Counterparty on the closing date for the initial issuance of the Convertible Securities.]9 [The number of Optional Convertible Securities in denominations of USD 1,000 principal amount purchased by the Initial Purchasers (as defined in the Purchase Agreement), at their option pursuant to
Section 2 of the Purchase Agreement (as defined below).]10 For the avoidance of doubt, the Number of Options outstanding shall be reduced by each exercise of Options hereunder. In no event
will the Number of Options be less than zero.
		
	Applicable Percentage:	  	[    ]%11
		
	Option Entitlement:	  	A number equal to the product of the Applicable Percentage and [            ]12
		
	Make-Whole Adjustment:	  	Any adjustment to the Conversion Rate pursuant to Section 5.07 of the Indenture.
		
	Discretionary Adjustment:	  	Any adjustment to the Conversion Rate pursuant to Section 5.06 of the Indenture.
		
	Strike Price:	  	USD[            ]13
		
	Cap Price:	  	USD[            ]

 

	7 	 Include if applicable for base capped call. 

	8 	 Include for additional capped call. 

	9 	 Include for base capped call. 

	10 	 Include for additional capped call. 

	11 	 To be Dealer’s percentage of the overall capped call transaction. 

	12 	 To be the initial “Conversion Rate.” 

	13 	 To be the initial “Conversion Price.” 

  
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	 Rounding of Strike Price/Cap
 Price/Option
Entitlement:
	  	In connection with any adjustment to the Option Entitlement or Strike Price, the Option Entitlement or Strike Price, as the case may be, shall be rounded by the Calculation Agent in accordance with the provisions of the Indenture
relating to rounding of the “Conversion Price” or the “Conversion Rate”, as applicable (each as defined in the Indenture). In connection with any adjustment to the Cap Price hereunder, the Calculation Agent will round the
adjusted Cap Price to the nearest USD 0.0001.
		
	Number of Shares:	  	As of any date, a number of Shares equal to the product of the Number of Options and the Option Entitlement.
		
	Premium:	  	USD [            ]
		
	Premium Payment Date:	  	The Effective Date
		
	Exchange:	  	The New York Stock Exchange
		
	Related Exchange:	  	All Exchanges; provided that Section 1.26 of the Equity Definitions shall be amended to add the words “United States” before the word “exchange” in the tenth line of such Section.
		
	Procedures for Exercise:	  	
		
	Exercise Dates:	  	Each Conversion Date.
		
	Conversion Date:	  	 [With respect to any conversion of a Convertible Security (other than (x) any conversion of Convertible Securities with a
“Conversion Date” (as defined in the Indenture) occurring prior to the Free Convertibility Date or (y) any conversion of Convertible Securities in respect of which holder(s) of such Convertible Securities would be entitled to an
increase in the Conversion Rate pursuant to a Make-Whole Adjustment (including, for the avoidance of doubt, if such Make-Whole Adjustment does not result in an increase to the Conversion Rate) (any such conversion described in clause (x) or
clause (y), an “Early Conversion”), to which the provisions of Section 8(b)(iii) of this Confirmation shall apply), the “Conversion Date” (as defined in the Indenture), provided that, no Conversion Date shall
be deemed to have occurred with respect to Exchanged Securities (such Convertible Securities, other than Exchanged Securities, the “Relevant Convertible Securities” for such Conversion Date).]14
  
 [With respect to any conversion
of a Convertible Security (other than (x) any conversion of Convertible Securities with a “Conversion Date” (as defined in the Indenture) occurring prior to the Free Convertibility Date or (y) any conversion of Convertible
Securities in respect of which holder(s) of such Convertible Securities would be entitled to an increase in the Conversion Rate pursuant to a Make-Whole Adjustment (including, for the avoidance of doubt, if such Make-Whole Adjustment does not result
in an increase to the Conversion Rate) (any such

  

	14 	 Include for base capped call. 

  
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		  	conversion described in clause (x) or clause (y), an “Early Conversion”), to which the provisions of Section 8(b)(iii) of this Confirmation shall apply), the “Conversion Date” (as defined in the
Indenture) for Convertible Securities that are not “Relevant Convertible Securities” under (and as defined in) the confirmation between the parties hereto regarding the Base Call Option Transaction dated March 8, 2021 (the “Base
Call Option Transaction Confirmation”), provided that, no Conversion Date shall be deemed to have occurred with respect to Exchanged Securities (such Convertible Securities, other than Exchanged Securities, the “Relevant
Convertible Securities” for such Conversion Date). For the purposes of determining whether any Convertible Securities will be Relevant Convertible Securities hereunder or “Relevant Convertible Securities” under the Base Call
Option Transaction Confirmation, Convertible Securities that are converted pursuant to the Indenture shall be allocated first to the Base Call Option Transaction Confirmation until all Options thereunder are exercised or terminated.]15
		
	Free Convertibility Date:	  	March 15, 2026
		
	Exchanged Securities:	  	With respect to any Conversion Date, any Convertible Securities with respect to which Counterparty makes the election described in Section 5.08 of the Indenture and the financial institution designated by Counterparty accepts
such Convertible Securities in accordance with Section 5.08 of the Indenture, as long as Counterparty does not submit a Notice of Exercise in respect thereof.
		
	Expiration Date:	  	September 15, 2026, subject to earlier exercise.
		
	Automatic Exercise on Conversion Dates:	  	Applicable, which means that on each Conversion Date occurring on or after the Free Convertibility Date, a number of Options equal to the number of Relevant Convertible Securities for such Conversion Date in denominations of USD
1,000 principal amount shall be automatically exercised, subject to “Notice of Exercise” below. Notwithstanding anything to the contrary herein or in the Equity Definitions, unless Counterparty notifies Dealer in writing prior to 5:00
P.M., New York City time, on the Expiration Date that it does not wish automatic exercise to occur, all Options then outstanding as of 5:00 P.M., New York City time, on the Expiration Date shall be deemed to be automatically exercised as if
(i) a number of Relevant Convertible Securities (in denominations of USD 1,000 principal amount) equal to such number of then-outstanding Options were converted with a Conversion Date occurring on or after the Free Convertibility Date and
(ii) such Relevant Convertible Securities were outstanding under the Indenture immediately prior to such deemed conversion; provided that no such automatic exercise pursuant to this sentence shall occur if the Relevant Price for each
Valid Day during the Settlement Averaging Period is less than or equal to the Strike Price.
		
	Notice Deadline:	  	In respect of any exercise of Options hereunder on any Conversion Date on or after the Free Convertibility Date, 5:00 P.M., New York City

 

	15 	 Include for additional capped call. 

  
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		  	time, on the “Scheduled Trading Day” (as defined in the Indenture) immediately preceding the “Maturity Date” (as defined in the Indenture).
		
	Notice of Exercise:	  	Counterparty shall notify Dealer in writing prior to the Notice Deadline of the number of Relevant Convertible Securities being converted on the related Conversion Date[; provided that any “Notice of Exercise”
delivered to Dealer pursuant to the Base Call Option Transaction Confirmation shall be deemed to be a Notice of Exercise pursuant to this Confirmation and the terms of such Notice of Exercise shall apply, mutatis mutandis, to this
Confirmation]16. For the avoidance of doubt, if Counterparty fails to give such notice when due in respect of any exercise of Options hereunder with a Conversion Date occurring on or after the
Free Convertibility Date, Automatic Exercise shall apply and the Conversion Date shall be deemed to be the Notice Deadline.
		
	Notice of Final Convertible Security Settlement Method:	  	In addition, Counterparty shall notify Dealer in writing before 5:00 P.M., New York City time, on the “Scheduled Trading Day” (as defined in the Indenture) immediately preceding the Free Convertibility Date of the
settlement method (and, if applicable, the “Specified Dollar Amount” (as defined in the Indenture)) elected (or deemed to be elected) with respect to Relevant Convertible Securities with a Conversion Date occurring on or after the Free
Convertibility Date (any such notice, a “Notice of Final Convertible Security Settlement Method”); provided that if Counterparty does not timely deliver the Notice of Final Convertible Security Settlement Method then the
Notice of Final Convertible Security Settlement Method shall be deemed timely given and the Applicable Settlement Method shall be a Cash Election with a “Specified Dollar Amount” (as defined in the Indenture) of USD 1,000. If Counterparty
elects a Settlement Method other than Net Share Settlement in the Notice of Final Convertible Security Settlement Method, the Notice of Final Convertible Security Settlement Method shall contain a written representation by Counterparty to Dealer
that Counterparty is not, on the date of the Notice of Final Convertible Security Settlement Method, in possession of any material non-public information with respect to Counterparty or the Shares.
		
	Dealer’s Contact Details for purpose of Giving Notice:	  	As specified in Section 6(b) below.
		
	Settlement Terms:	  	
		
	Settlement Date:	  	For any Exercise Date, the date one Settlement Cycle following the final day of the Cash Settlement Averaging Period.
		
	Delivery Obligation:	  	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the Equity Definitions, and subject to “Automatic Exercise on Conversion Dates” and “Notice of Exercise” above and “Method of Adjustment”,
“Discretionary Adjustments”, “Consequences of Merger Events/Tender Offers”, “Consequences of Announcement Events” and Section 8(u) below, in respect of an Exercise Date, Dealer will deliver
to

  

	16 	 Include for additional capped call confirmation only. 

  
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		  	Counterparty on the related Settlement Date (the “Delivery Obligation”), (i) a number of Shares equal to the product of the Applicable Percentage and the aggregate number of Shares, if any, that Counterparty would
be obligated to deliver to the holder(s) of the Relevant Convertible Securities for such Conversion Date pursuant to Section 5.03(B) of the Indenture (except that such number of Shares shall be rounded down to the nearest whole number) and cash
in lieu of any fractional Share resulting from such rounding and/or (ii) the product of the Applicable Percentage and the aggregate amount of cash, if any, in excess of the principal amount of the Relevant Convertible Securities that
Counterparty would be obligated to deliver to holder(s) of the Relevant Convertible Securities for such Conversion Date pursuant to Section 5.03(B) of the Indenture, determined, for each of clauses (i) and (ii), by the Calculation Agent in
a commercially reasonable manner by reference to such Sections of the Indenture as if Counterparty had elected to satisfy its conversion obligation in respect of such Relevant Convertible Securities by the Applicable Settlement Method,
notwithstanding any different actual election by Counterparty with respect to the settlement of such Relevant Convertible Securities; provided that if the “Daily VWAP” (as defined in the Indenture) for any “VWAP Trading
Day” (as defined in the Indenture) during the Cash Settlement Averaging Period is greater than the Cap Price, then clause (b) of the relevant “Daily Conversion Value” (as defined in the Indenture) for such “VWAP Trading
Day” shall be determined as if such “Daily VWAP” for such “VWAP Trading Day” were deemed to equal the Cap Price; provided further that the Delivery Obligation shall be determined excluding any Shares and/or cash that
Counterparty is obligated to deliver to holder(s) of the Relevant Convertible Securities as a direct or indirect result of any adjustments to the Conversion Rate pursuant to a Discretionary Adjustment, a Make-Whole Adjustment and any interest
payment that Counterparty is (or would have been) obligated to deliver to holder(s) of the Relevant Convertible Securities for such Conversion Date.
		
	Applicable Settlement Method:	  	For any Relevant Convertible Securities, if Counterparty has notified Dealer in the Notice of Final Convertible Security Settlement Method that it has elected, or is deemed to have elected, to satisfy its conversion obligation in
respect of such Relevant Convertible Securities in cash or in a combination of cash and Shares in accordance with Section 5.03(A) of the Indenture (a “Cash Election”) with a “Specified Dollar Amount” (as defined in
the Indenture) of at least USD 1,000, the Applicable Settlement Method shall be the settlement method actually so elected, or deemed to be elected, by Counterparty in respect of such Relevant Convertible Securities (the “Convertible
Securities Settlement Method”); otherwise, the Applicable Settlement Method shall assume Counterparty had made a Cash Election with respect to such Relevant Convertible Securities (a “Deemed Cash Election”) with a
“Specified Dollar Amount” (as defined in the Indenture) of USD 1,000 per Relevant Convertible Security (“Net Share Settlement”) and the Delivery Obligation shall be determined by the Calculation Agent pursuant to
Section 5.03(B)(i)(3) of the Indenture as if the relevant “Observation Period” (as defined in the Indenture) were the Cash Settlement Averaging Period.

  
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	Cash Settlement Averaging Period:	  	The forty (40) consecutive “VWAP Trading Days” (as defined in the Indenture) commencing on the 41st “Scheduled Trading Day” (as defined in the Indenture) immediately preceding the “Maturity Date”
(as defined in the Indenture).
		
	Other Applicable Provisions:	  	To the extent Dealer is obligated to deliver Shares hereunder, the provisions of Sections 9.8, 9.9 and 9.11 of the Equity Definitions will be applicable as if “Physical Settlement” applied to the Transaction;
provided that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under
applicable securities laws that exist as a result of the fact that Counterparty is the issuer of the Shares.
		
	Restricted Certificated Shares:	  	Notwithstanding anything to the contrary in the Equity Definitions, Dealer may, in whole or in part, deliver Shares required to be delivered to Counterparty hereunder in certificated form in lieu of delivery through the Clearance
System. With respect to such certificated Shares, the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by deleting the remainder of the provision after the word “encumbrance” in the
fourth line thereof.
		
	Adjustments:	  	
		
	Method of Adjustment:	  	 Notwithstanding Section 11.2 of the Equity Definitions, upon the occurrence of any event or condition set forth in the Dilution
Adjustment Provisions (a “Potential Adjustment Event”) that requires an adjustment under the Indenture, the Calculation Agent shall, in good faith and in a commercially reasonable manner, make a corresponding adjustment in respect
of any one or more of the Strike Price, the Number of Options, the Option Entitlement and any other term relevant to the exercise, settlement or payment of the Transaction, to the extent an analogous adjustment is required under the Indenture,
subject to “Discretionary Adjustments” below. Immediately upon the occurrence of any Potential Adjustment Event, Counterparty shall notify the Calculation Agent of such Potential Adjustment Event.

 
 Notwithstanding anything to the contrary herein or in the Equity Definitions:

 
 (i) in connection with any Potential Adjustment Event as a result of an event or
condition set forth in Section 5.05(A)(ii) of the Indenture or Section 5.05(A)(iii) of the Indenture where, in either case, the period for determining “Y” (as such term is used in Section 5.05(A)(ii) of the Indenture) or
“SP” (as such term is used in Section 5.05(A)(iii) of the Indenture), as the case may be, begins before Counterparty has publicly announced the event or condition giving rise to such Potential Adjustment Event, then the Calculation
Agent shall, in good faith and in a commercially reasonable manner, have the right to adjust any variable relevant to the exercise, settlement or payment for the Transaction as appropriate to reflect the commercially reasonable costs (to account
solely for hedging mismatches and market losses) and commercially reasonable out-of-pocket expenses incurred by Dealer in connection with its commercially reasonable
hedging activities as a result of such event or condition not having been publicly announced prior to the beginning of such period; and

  
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		  	 (ii) if any Potential Adjustment Event is declared and (a) the event or condition giving rise to such Potential Adjustment Event is
subsequently amended, modified, cancelled or abandoned, (b) the “Conversion Rate” (as defined in the Indenture) is otherwise not adjusted at the time or in the manner contemplated by the relevant Dilution Adjustment Provision based on
such declaration or (c) the “Conversion Rate” (as defined in the Indenture) is adjusted as a result of such Potential Adjustment Event and subsequently re-adjusted (each of clauses (a), (b) and
(c), a “Potential Adjustment Event Change”) then, in each case, the Calculation Agent shall, in good faith and in a commercially reasonable manner, have the right to adjust any variable relevant to the exercise, settlement or
payment for the Transaction as appropriate to reflect the commercially reasonable costs (to account solely for hedging mismatches and market losses) and commercially reasonable
out-of-pocket expenses incurred by Dealer in connection with its commercially reasonable hedging activities as a result of such Potential Adjustment Event Change.

 
 For the avoidance of doubt, Dealer shall not have any payment or delivery obligation
hereunder in respect of, and no adjustment shall be made to the terms of the Transaction on account of, (x) any distribution of cash, property or securities by Counterparty to the holders of Convertible Securities (upon conversion or otherwise)
or (y) any other transaction in which holders of Convertible Securities are entitled to participate, in each case, in lieu of an adjustment under the Indenture in respect of a Potential Adjustment Event (including, without limitation, under the
proviso to the first sentence of Section 5.05(A)(iii)(1) of the Indenture or the proviso to the first sentence of Section 5.05(A)(iv) of the Indenture).

		
	Dilution Adjustment Provisions:	  	Sections 5.05(A)(i), (A)(ii), (A)(iii), (A)(iv), (A)(v) and Section 5.05(H) of the Indenture
		
	Discretionary Adjustments:	  	Notwithstanding anything to the contrary herein or in the Equity Definitions, if the Calculation Agent in good faith disagrees with any adjustment under the Indenture that is the basis of any adjustment hereunder and that involves
an exercise of discretion by Counterparty, its board of directors or a committee of its board of directors (including, without limitation, pursuant to Section 5.05(H) of the Indenture or pursuant to Section 5.09 of the Indenture or any
supplemental indenture entered into thereunder or in connection with the determination of the fair value of any securities, property, rights or other assets), then the Calculation Agent will determine the corresponding adjustment to be made to any
one or more of the Strike Price, Number of Options, Option Entitlement and any other variable relevant to the exercise, settlement or payment of or under the Transaction in good faith and in a commercially reasonable manner consistent with the
methodology set forth in the Indenture. In addition, notwithstanding the foregoing, if any Potential Adjustment Event occurs during the Cash Settlement Averaging Period but no adjustment was made to any Convertible Security under the Indenture
because the relevant holder of such Convertible Security was deemed to be a record owner of the

  
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		  	underlying Shares on the related Conversion Date, then the Calculation Agent shall, in good faith and in a commercially reasonable manner, make an adjustment, consistent with the methodology set forth in the Indenture as determined
by it, to the terms hereof in order to account for such Potential Adjustment Event. For the avoidance of doubt, the Delivery Obligation shall be calculated on the basis of such adjustments by the Calculation Agent.
		
	Extraordinary Events:	  	
		
	Merger Events:	  	Notwithstanding Section 12.1(b) of the Equity Definitions, “Merger Event” shall have the same meaning as the meaning of “Common Stock Change Event” set forth in Section 5.09 of the Indenture.
		
	Consequences of Merger Events/Tender Offers:	  	Notwithstanding Section 12.2 of the Equity Definitions, upon the occurrence of a Merger Event, the Calculation Agent, acting in good faith and commercially reasonably, shall make a corresponding adjustment in respect of any
adjustment under the Indenture to any one or more of the nature of the Shares, the Number of Options, the Option Entitlement, composition of the “Shares” hereunder and any other variable relevant to the exercise, settlement or payment for
the Transaction, to the extent an analogous adjustment is required under Section 5.09 of the Indenture in respect of such Merger Event, as determined in good faith and in a commercially reasonable manner by the Calculation Agent by reference to
such Section, subject to “Discretionary Adjustments” above; provided that such adjustment shall be made without regard to any adjustment to the Conversion Rate pursuant to a Make-Whole Adjustment or a Discretionary Adjustment;
provided further that in respect of any election by the holders of Shares with respect to the consideration due upon consummation of any Merger Event, the Calculation Agent shall have the right to adjust any variable relevant to the exercise,
settlement or payment for the Transaction as appropriate to compensate Dealer for any losses (including, without limitation, market losses customary for transactions similar to the Transaction with counterparties similar to Counterparty) relating to
any mismatch on its Hedge Position, assuming Dealer maintains a commercially reasonable Hedge Position, and the type and amount of consideration actually paid or issued to the holders of Shares in respect of such Merger Event; and provided
further that if, with respect to a Merger Event or a Tender Offer, (i) the consideration for the Shares includes (or, at the option of a holder of Shares, may include) securities issued by an entity that is not a corporation organized under
the laws of the United States, any state thereof or the District of Columbia or (ii) the Counterparty to the Transaction, following such Merger Event, will not be a corporation organized under the laws of the United States, any State thereof or
the District of Columbia or will not be the Issuer, Dealer may elect in its commercially reasonable discretion that Cancellation and Payment (Calculation Agent Determination) shall apply. For the avoidance of doubt, adjustments shall be made
pursuant to the provisions set forth above regardless of whether any Merger Event gives rise to an Early Conversion. For purposes of this paragraph, “Tender Offer” means the occurrence of any event or condition set forth in
Section 5.05(A)(v)i of the Indenture.

  
 Page 10 of 31 

			
		
	Notice of Merger Consideration:	  	Upon the occurrence of a Merger Event, Counterparty shall reasonably promptly (but in any event prior to consummation of such Merger Event) notify the Calculation Agent of, in the case of a Merger Event that causes the Shares to be
converted into the right to receive more than a single type of consideration (determined based in part upon any form of stockholder election), the weighted average of the types and amounts of consideration actually received by holders of Shares upon
consummation of such Merger Event.
		
	Consequences of Announcement Events:	  	Modified Calculation Agent Adjustment as set forth in Section 12.3(d) of the Equity Definitions; provided that, in respect of an Announcement Event, (x) references to “Tender Offer” shall be replaced by
references to “Announcement Event” and references to “Tender Offer Date” shall be replaced by references to “date of such Announcement Event”, (y) the phrase “exercise, settlement, payment or any other terms of the
Transaction (including, without limitation, the spread)” shall be replaced with the phrase “Cap Price (provided that in no event shall the Cap Price be less than the Strike Price)” and the words “whether within a
commercially reasonable (as determined by the Calculation Agent) period of time prior to or after the Announcement Event” shall be inserted prior to the word “, which” in the seventh line, and (z) for the avoidance of doubt, the
Calculation Agent shall, in good faith and in a commercially reasonable manner, determine whether the relevant Announcement Event has had an economic effect on the Transaction (the terms of which include, among other terms, the Strike Price and Cap
Price), and, if so, shall adjust the Cap Price accordingly to take into account such economic effect on one or more occasions on or after the date of the Announcement Event up to, and including, the Expiration Date, any Early Termination Date and/or
any other date of cancellation, it being understood that (i) any adjustment in respect of an Announcement Event shall take into account any earlier adjustment relating to the same Announcement Event and (ii) in making any adjustment the
Calculation Agent shall take into account volatility, expected dividends, stock loan rate, liquidity relevant to the Shares or the Transaction or other commercially reasonable option pricing inputs before and after such Announcement Event. An
Announcement Event shall be an “Extraordinary Event” for purposes of the Equity Definitions, to which Article 12 of the Equity Definitions is applicable.
		
	Announcement Event:	  	(i) The public announcement by Issuer, any subsidiary of Issuer, any affiliate of Issuer, any agent or representative of Issuer, any Valid Third Party Entity or any affiliate of a Valid Third Party Entity of (x) any transaction
or event that, if completed, would constitute a Merger Event or Tender Offer, (y) any potential acquisition or disposition by Issuer and/or its subsidiaries where the aggregate consideration exceeds 25% of the market capitalization of Issuer as
of the date of such announcement (a “Transformative Transaction”) or (z) the intention to enter into a Merger Event or Tender Offer or a Transformative Transaction, (ii) the public announcement by Issuer of an intention to
solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, a Merger Event or Tender Offer or a Transformative Transaction or (iii) any subsequent public announcement by Issuer, any subsidiary of
Issuer, any affiliate of Issuer, any agent or representative of Issuer or a Valid Third Party Entity of a change to a transaction or intention that is the subject of an

  
 Page 11 of 31 

			
		  	announcement of the type described in clause (i) or (ii) of this sentence (including, without limitation, a new announcement, whether or not by the same party, relating to such a transaction or intention or the announcement of
a withdrawal from, or the abandonment or discontinuation of, such a transaction or intention), as determined by the Calculation Agent in good faith and in a commercially reasonable manner. For the avoidance of doubt, the occurrence of an
Announcement Event with respect to any transaction or intention shall not preclude the occurrence of a later Announcement Event with respect to such transaction or intention. For purposes of this definition of “Announcement Event,” (A)
“Merger Event” shall mean such term as defined under Section 12.1(b) of the Equity Definitions (but, for the avoidance of doubt, the remainder of the definition of “Merger Event” in Section 12.1(b) of the Equity
Definitions following the definition of “Reverse Merger” therein shall be disregarded) and (B) “Tender Offer” shall mean such term as defined under Section 12.1(d) of the Equity Definitions.
		
	Valid Third Party Entity:	  	In respect of any transaction, any third party that has a bona fide intent to enter into or consummate such transaction (it being understood and agreed that in determining whether such third party has such a bona fide intent, the
Calculation Agent may take into consideration the effect of the relevant announcement by such third party (or its agent or representative) on the Shares and/or options relating to the Shares).
		
	Nationalization, Insolvency or Delisting:	  	Cancellation and Payment (Calculation Agent Determination); provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it will also constitute a Delisting if the Shares are not
immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The Nasdaq Global Select Market or The
Nasdaq Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any
such exchange or quotation system, such exchange or quotation system shall thereafter be deemed to be the Exchange.
		
	Additional Termination Event(s):	  	Notwithstanding anything to the contrary in the Equity Definitions, if, as a result of an Extraordinary Event, the Transaction would be cancelled or terminated (whether in whole or in part) pursuant to Article 12 of the Equity
Definitions, an Additional Termination Event (with the Transaction (or the cancelled or terminated portion thereof) being the Affected Transaction and Counterparty being the sole Affected Party) shall be deemed to occur, and, in lieu of Sections
12.7, 12.8 and 12.9 of the Equity Definitions, Section 6 of the Agreement shall apply to such Affected Transaction.
		
	Additional Disruption Events:	  	
		
	(a) Change in Law:	  	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “, or public
announcement of, the formal or informal interpretation”, (ii) by adding the phrase “and/or Hedge Position” after the word “Shares” in clause (X) thereof and (iii) by immediately following the word
“Transaction” in clause (X) thereof,

  
 Page 12 of 31 

			
		  	adding the phrase “in the manner contemplated by the Hedging Party on the Trade Date”; and provided further that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the
parenthetical beginning after the word “regulation” in the second line thereof with the words “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations
authorized or mandated by existing statute)” and (ii) adding the words “, or holding, acquiring or disposing of Shares or any Hedge Positions relating to,” after the words “obligations under” in clause
(Y) thereof.
		
	(b) Failure to Deliver:	  	Applicable
		
	(c) Insolvency Filing:	  	Applicable
		
	(d) Hedging Disruption:	  	 Applicable; provided that:
  

(i) Section 12.9(a)(v) of the Equity Definitions is hereby amended by (a) inserting the following at the end of clause (A) thereof: “in the
manner contemplated by the Hedging Party on the Trade Date” and (b) inserting the following at the end of such Section:
  

“For the avoidance of doubt, (i) the term “equity price risk” shall be deemed to include, but shall not be limited to, stock price and
volatility risk, and (ii) the transactions or assets referred to in phrases (A) or (B) above must be available on commercially reasonable pricing and other terms”; and

 
 (ii) Section 12.9(b)(iii) of the Equity Definitions is hereby amended by inserting
in the third line thereof, after the words “to terminate the Transaction”, the words “or a portion of the Transaction affected by such Hedging Disruption”.

		
	(e) Increased Cost of Hedging:	  	Not Applicable
		
	Hedging Party:	  	Dealer
		
	Determining Party:	  	Dealer; provided that the Determining Party will promptly, upon written notice from Counterparty, provide a statement displaying in reasonable detail the basis for such determination, adjustment or calculation, as the case
may be (including any quotations, market data or information from internal or external sources used in making such determination, adjustment or calculation, it being understood that the Determining Party shall not be required to disclose any
confidential information or proprietary models used by it in connection with such determination, adjustment or calculation, as the case may be).
		
	Non-Reliance:	  	
		
	Agreements and Acknowledgments	  	Applicable
		
	Regarding Hedging Activities:	  	Applicable
		
	Additional Acknowledgments:	  	Applicable

  
 Page 13 of 31 

			
	Hedging Adjustment:	  	For the avoidance of doubt, whenever Dealer, Determining Party or the Calculation Agent makes an adjustment, calculation or determination permitted or required to be made pursuant to the terms of this Confirmation or the Equity
Definitions to take into account the effect of any event (other than an adjustment, calculation or determination made by reference to the Indenture), the Calculation Agent, Determining Party or Dealer, as the case may be, shall make such adjustment,
calculation or determination in a commercially reasonable manner and by reference to the effect of such event on Dealer assuming that Dealer maintains a commercially reasonable hedge position.
		
	3. Calculation Agent:	  	Dealer; provided that all calculations and determinations by the Calculation Agent (other than calculations or determinations made by reference to the Indenture) shall be made in good faith and in a commercially reasonable
manner and assuming for such purposes that Dealer is maintaining, establishing and/or unwinding, as applicable, a commercially reasonable hedge position; provided further that if an Event of Default of the type described in
Section 5(a)(vii) of the Agreement with respect to which Dealer is the sole Defaulting Party occurs, Counterparty shall have the right to appoint a successor calculation agent which shall be a nationally recognized third-party dealer in over-the-counter corporate equity derivatives. The Calculation Agent agrees that it will promptly, upon written notice from Counterparty, provide a statement displaying in
reasonable detail the basis for such determination, adjustment or calculation, as the case may be (including any quotations, market data or information from internal or external sources used in making such determination, adjustment or calculation,
it being understood that the Calculation Agent shall not be required to disclose any confidential information or proprietary models used by it in connection with such determination, adjustment or calculation, as the case may be).

 4. Account Details: 

Dealer Payment Instructions: 

[                    ] 

Counterparty Payment Instructions: 

[                    ] 

5. Offices: 

The Office of Dealer for the Transaction is:
[                    ] 

The Office of Counterparty for the Transaction is: 

Inapplicable, Counterparty is not a Multibranch Party 

  
 Page 14 of 31 

 6. Notices: For purposes of this Confirmation: 

(a) Address for notices or communications to Counterparty: 

 

			
	To:	  	Eventbrite, Inc.
		  	155 5th Street, 7th Floor
		  	San Francisco, CA 94103
	Attention:	  	[Title of contact]
	Telephone No.:	  	[                    ]
	Facsimile No.:	  	[                    ]
	Email:	  	[                    ]

 (b) Address for notices or communications to Dealer: 

[Dealer Address] 

7. Representations, Warranties and Agreements: 

(a) In addition to the representations and warranties in the Agreement and those contained elsewhere herein, Counterparty
represents and warrants to and for the benefit of, and agrees with, Dealer as follows: 
 (i) On the Trade Date,
(A) Counterparty is not aware of any material nonpublic information regarding Counterparty or the Shares and (B) all reports and other documents filed by Counterparty with the Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not
contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading. 

(ii) (A) On the Trade Date, the Shares or securities that are convertible into, or exchangeable or exercisable for Shares, are
not subject to a “restricted period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”) and (B) Counterparty shall not engage in any “distribution,” as such term is defined in
Regulation M, other than a distribution meeting the requirements of the exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day immediately following the Trade Date. 

(iii) Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that neither
Dealer nor any of its affiliates is making any representations or warranties or taking any position or expressing any view with respect to the treatment of the Transaction under any accounting standards including ASC Topic 260, Earnings Per
Share, ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging - Contracts in Entity’s Own Equity
(or any successor issue statements). 
 (iv) Without limiting the generality of Section 3(a)(iii) of the Agreement, the
Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act. 

(v) Prior to the Trade Date, Counterparty shall deliver to Dealer a resolution of Counterparty’s board of directors
authorizing the Transaction. 
 (vi) Counterparty is not entering into this Confirmation to create actual or apparent trading
activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares) or otherwise in violation of
the Exchange Act. 
 (vii) Counterparty is not, and after giving effect to the transactions contemplated hereby will not be,
required to register as, an “investment company” as such term is defined in the Investment Company Act of 1940, as amended. 

  
 Page 15 of 31 

 (viii) On each of the Trade Date and the Premium Payment Date, Counterparty
is not “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase the Number of
Shares in compliance with the laws of the jurisdiction of Counterparty’s incorporation. 
 (ix) The representations and
warranties of Counterparty set forth in Section 3 of the Agreement and Section 1 of the Purchase Agreement, dated as of March 8, 2021, among Counterparty and Morgan Stanley & Co. LLC as representatives of the initial
purchasers party thereto (the “Purchase Agreement”) are true and correct as of the Trade Date and the Effective Date and are hereby deemed to be repeated to Dealer as if set forth herein. 

(x) To the knowledge of Counterparty, no state or local (including non-U.S.
jurisdictions) law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or
entity) as a result of Dealer or its affiliates owning or holding (however defined) Shares; provided that Counterparty makes no representation or warranty regarding any such requirement that is applicable generally to the ownership of equity
securities by Dealer or any of its affiliates solely as a result of it or any of such affiliates being financial institutions or broker-dealers. 

(xi) Counterparty (A) is capable of evaluating investment risks independently, both in general and with regard to all
transactions and investment strategies involving a security or securities; (B) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the
broker-dealer in writing; and (C) has total assets of at least USD 50 million as of the date hereof. 
 (xii)
Counterparty acknowledges that the Transaction may constitute a purchase of its equity securities. Counterparty further acknowledges that, pursuant to the provisions of the Coronavirus Aid, Relief and Economic Security Act (the “CARES
Act”), the Counterparty would be required to agree to certain time-bound restrictions on its ability to purchase its equity securities if it receives loans, loan guarantees or direct loans (as that term is defined in the CARES Act) under
section 4003(b) of the CARES Act. Counterparty further acknowledges that it may be required to agree to certain time-bound restrictions on its ability to purchase its equity securities if it receives loans, loan guarantees or direct loans (as that
term is defined in the CARES Act) under programs or facilities established by the Board of Governors of the Federal Reserve System for the purpose of providing liquidity to the financial system (together with loans, loan guarantees or direct loans
under section 4003(b) of the CARES Act. Accordingly, Counterparty represents and warrants that it has not applied for, and prior to the termination or settlement of this Transaction has no intention to apply for loans, loan guarantees or direct
loans (as that term is defined in the CARES Act, under programs or facilities established by the Board of Governors of the Federal Reserve System under section 4003(b) of the CARES Act for the purpose of providing liquidity to the financial system
(together with loans, loan guarantees or direct loans under section 4003(b) of the CARES Act, “Governmental Financial Assistance”) under any governmental program or facility that (a) is established under section 4003(b) of the
CARES Act or the Federal Reserve Act, as amended, and (b) requires, as a condition of such Governmental Financial Assistance, that the Counterparty agree, attest, certify or warrant that it has not, as of the date specified in such condition,
repurchased, or will not repurchase, any equity security of Counterparty; provided, that Counterparty may apply for Governmental Financial Assistance if Counterparty either (X) determines based on the advice of outside counsel of
national standing that the terms of the Transaction would not cause Counterparty to fail to satisfy any condition for application for or receipt or retention of such Governmental Financial Assistance based on the terms of the program or facility as
of the date of such advice or (Y) delivers to Dealer evidence or other guidance from a governmental authority with jurisdiction for such program or facility that the Transaction is permitted under such program or facility (either by specific
reference to the Transaction or by general reference to transactions with the attributes of the Transaction in all relevant respects). 

  
 Page 16 of 31 

 (b) Each of Dealer and Counterparty agrees and represents that it is an
“eligible contract participant” as defined in Section 1a(18) of the U.S. Commodity Exchange Act, as amended, and is entering into the Transaction as principal (and not as agent or in any other capacity, fiduciary or otherwise) and not
for the benefit of any third party. 
 (c) Each of Dealer and Counterparty acknowledges that the offer and sale of the
Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(a)(2) thereof. Accordingly, Counterparty represents and warrants to Dealer
that (i) it has the financial ability to bear the economic risk of its investment in the Transaction and is able to bear a total loss of its investment and its investments in and liabilities in respect of the Transaction, which it understands
are not readily marketable, are not disproportionate to its net worth, and it is able to bear any loss in connection with the Transaction, including the loss of its entire investment in the Transaction, (ii) it is an “accredited
investor” as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is entering into the Transaction for its own account and without a view to the distribution or resale thereof, (iv) the assignment,
transfer or other disposition of the Transaction has not been and will not be registered under the Securities Act and is restricted under this Confirmation, the Securities Act and state securities laws, and (v) its financial condition is such
that it has no need for liquidity with respect to its investment in the Transaction and no need to dispose of any portion thereof to satisfy any existing or contemplated undertaking or indebtedness and is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of the Transaction. 

(d) Each of Dealer and Counterparty agrees and acknowledges that Dealer is a “financial institution” and
“financial participant” within the meaning of Sections 101(22) and 101(22A) of the Bankruptcy Code. The parties hereto further agree and acknowledge (A) that this Confirmation is a “securities contract,” as such term is
defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within
the meaning of Section 362 of the Bankruptcy Code and a “settlement payment” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections,
Sections 362(b)(6), 362(b)(27), 362(o), 546(e), 546(j), 548(d)(2), 555 and 561 of the Bankruptcy Code. 
 (e) As a condition
to the effectiveness of the Transaction, Counterparty shall deliver to Dealer an opinion of counsel, dated as of the Premium Payment Date and reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in
Section 3(a) of the Agreement and Section 7(a)(vii) hereof; provided that any such opinion of counsel may contain customary exceptions and qualifications, including, without limitation, exceptions and qualifications relating to
indemnification provisions. 
 (f) Counterparty understands that notwithstanding any other relationship between Counterparty
and Dealer and its affiliates, in connection with this Transaction and any other over-the-counter derivative transactions between Counterparty and Dealer or its
affiliates, Dealer or its affiliates is acting as principal and is not a fiduciary or advisor in respect of any such transaction, including any entry, exercise, amendment, unwind or termination thereof. 

(g) [Counterparty represents and warrants that it has received, read and understands the OTC Options Risk Disclosure Statement
and a copy of the most recent disclosure pamphlet prepared by The Options Clearing Corporation entitled “Characteristics and Risks of Standardized Options”. 

(h) Each party acknowledges and agrees to be bound by the Conduct Rules of the Financial Industry Regulatory Authority, Inc.
applicable to transactions in options, and further agrees not to violate the position and exercise limits set forth therein, in each case, to the extent such rules are applicable to such party.]17

  

	17 	 To be included as applicable. 

  
 Page 17 of 31 

 8. Other Provisions: 

(a) Right to Extend. Dealer may postpone or add, in whole or in part, any Exercise Date or Settlement Date or any other
date of valuation, payment or delivery by Dealer, with respect to some or all of the relevant Options (in which event the Calculation Agent, in good faith and in a commercially reasonable manner, shall make appropriate adjustments to the Delivery
Obligation), if Dealer determines, in good faith and in a commercially reasonable manner, and, in respect of clause (ii) below, based on the advice of counsel, that such extension is reasonably necessary or appropriate (i) to preserve
Dealer’s commercially reasonable hedging or hedge unwind activity hereunder in light of existing liquidity conditions in the cash market, the stock borrow market or other relevant market (but only if there is a material decrease in liquidity
relative to Dealer’s expectations on the Trade Date), or (ii) to enable Dealer to effect purchases or sales of Shares or Share Termination Delivery Units in connection with its commercially reasonable hedging, hedge unwind or settlement
activity hereunder in a manner that would (assuming, in the case of purchases, Dealer were Counterparty or an affiliated purchaser of Counterparty) be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related
policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Dealer and, in the case of policies or procedures, so long as such policies or procedures are consistently
applied to transactions similar to the Transaction); provided that no such Exercise Date, Settlement Date or other date of valuation, payment or delivery may be postponed or added more than 80 “VWAP Trading Days” (as defined in the
Indenture) after the original Exercise Date, Settlement Date or other date of valuation, payment or delivery, as the case may be. 

(b) Additional Termination Events. 

(i) The occurrence of an event of default with respect to Counterparty under the terms of the Convertible Securities as set
forth in Section 7.01 of the Indenture, which default has resulted in the Convertible Securities becoming due and payable under the terms thereof, shall constitute an Additional Termination Event with respect to which the Transaction is the
sole Affected Transaction and Counterparty is the sole Affected Party, and Dealer shall be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement and to determine the amount payable pursuant to
Section 6(e) of the Agreement. 
 (ii) Within five Exchange Business Days immediately following any Repurchase Event (as
defined below), Counterparty (x) in the case of a Repurchase Event resulting from the repurchase of any Convertible Securities by Counterparty upon the occurrence of a “Fundamental Change” (as defined in the Indenture), shall notify
Dealer in writing of such Repurchase Event and (y) in the case of a Repurchase Event not described in clause (x) above, may notify Dealer of such Repurchase Event, in each case, including the number of Convertible Securities subject to
such Repurchase Event (any such notice, a “Convertible Securities Repurchase Notice”) [; provided further that any “Convertible Securities Repurchase Notice” delivered to Dealer pursuant to the Base Call
Option Transaction Confirmation shall be deemed to be a Convertible Securities Repurchase Notice pursuant to this Confirmation and the terms of such Convertible Securities Repurchase Notice shall apply, mutatis mutandis, to this Confirmation]18. Notwithstanding anything to the contrary in this Confirmation, the receipt by Dealer from Counterparty of (1) any Convertible Securities Repurchase Notice, and (2) in the case of any
Convertible Securities Repurchase Notice described in clause (y) above, a written representation and warranty by Counterparty that, as of the date of such Convertible Securities Repurchase Notice, Counterparty is not in possession of any
material nonpublic information regarding Counterparty or the Shares, in each case, within the applicable time period set forth in the preceding sentence, shall constitute an Additional Termination Event as provided in this Section 8(b)(ii).
Upon receipt of any such Convertible Securities Repurchase Notice and the related written representation and warranty, Dealer shall promptly designate an Exchange Business Day following receipt of such Convertible Securities Repurchase Notice (which
in no event shall be earlier than the related repurchase date for such Convertible Securities) as an Early Termination Date with respect to the portion of this 

 

	18 	 Include for additional capped call. 

  
 Page 18 of 31 

 
Transaction corresponding to a number of Options (the “Repurchase Options”) equal to the lesser of (A) the number of such Convertible Securities specified in such
Convertible Securities Repurchase Notice [minus the number of Repurchase Options (as defined in the Base Call Option Transaction Confirmation), if any, that relate to such Convertible Securities (and for purposes of determining whether any
Options under this Confirmation or under the Base Call Option Transaction Confirmation will be among the Repurchase Options hereunder or under, and as defined in, the Base Call Option Transaction Confirmation, the Convertible Securities specified in
such Convertible Securities Repurchase Notice shall be allocated first to the Base Call Option Transaction Confirmation until all Options thereunder are exercised or terminated)]19 and
(B) the Number of Options as of the date Dealer designates such Early Termination Date and, as of such date, the Number of Options shall be reduced by the number of Repurchase Options. Any payment hereunder with respect to such termination
shall be calculated pursuant to Section 6 of the Agreement as if (1) an Early Termination Date had been designated in respect of a Transaction having terms identical to this Transaction and a Number of Options equal to the number of
Repurchase Options, (2) Counterparty were the sole Affected Party with respect to such Additional Termination Event and (3) the terminated portion of the Transaction were the sole Affected Transaction. “Repurchase Event”
means that (i) any Convertible Securities are repurchased or redeemed (whether pursuant to Section 4.02 or Section 4.03 of the Indenture or otherwise) by Counterparty or any of its
subsidiaries (including in connection with, or as a result of, a Fundamental Change (as defined in the Indenture), a tender offer, exchange offer or similar transaction or for any other reason), (ii) any Convertible Securities are delivered to
Counterparty in exchange for delivery of any property or assets of Counterparty or any of its subsidiaries (howsoever described), (iii) any principal of any of the Convertible Securities is repaid prior to the final maturity date of the Convertible
Securities, or (iv) any Convertible Securities are exchanged by or for the benefit of the “Holders” (as such term is defined in the Indenture) thereof for any other securities of Counterparty or any of its affiliates (or any other
property, or any combination thereof) pursuant to any exchange offer or similar transaction. For the avoidance of doubt, any conversion of Convertible Securities (whether into cash, Shares, “Reference Property” (as defined in the
Indenture) or any combination thereof) pursuant to the terms of the Indenture shall not constitute a Repurchase Event. Counterparty acknowledges and agrees that if an Additional Termination Event has occurred under this Section 8(b)(ii), then
any related Convertible Securities subject to a Repurchase Event will be deemed to be cancelled and disregarded and no longer outstanding for all purposes hereunder. 

(iii) Notwithstanding anything to the contrary in this Confirmation, upon any Early Conversion in respect of which the relevant
converting “Holder” (as such term is defined in the Indenture) has satisfied the requirements to conversion set forth in Section 5.02(A) of the Indenture: 
  

	 	(A)	 Counterparty may, as promptly as practicable (but in any event within five Scheduled Trading Days of the
“Conversion Date” (as defined in the Indenture) for such Early Conversion), provide written notice (an “Early Conversion Notice”) to Dealer specifying the number of Convertible Securities surrendered for conversion on such
Conversion Date (such Convertible Securities, the “Affected Convertible Securities”), and the giving of such Early Conversion Notice shall constitute an Additional Termination Event as provided in this Section 8(b)(iii);
provided that any such Early Conversion Notice shall contain a written acknowledgement by Counterparty of its responsibilities under applicable securities laws, and in particular Section 9 and Section 10(b) of the Exchange Act and
the rules and regulations thereunder, in respect of the delivery of such Early Conversion Notice; 

  

	 	(B)	 upon receipt of any such Early Conversion Notice, within a commercially reasonable period of time thereafter,
Dealer shall designate an Exchange 

  

	19 	 Include for additional capped call. 

  
 Page 19 of 31 

	 	
Business Day as an Early Termination Date (which Exchange Business Day shall be on or as promptly as reasonably practicable after the related settlement date for such Affected Convertible
Securities) with respect to the portion of the Transaction corresponding to a number of Options (the “Affected Number of Options”) equal to the lesser of (x) the number of Affected Convertible Securities [minus the
“Affected Number of Options” (as defined in the Base Call Option Transaction Confirmation) (and for purposes of determining whether any Options under this Confirmation or under the Base Call Option Transaction Confirmation will be among
the Affected Number of Options hereunder or under, and as defined in, the Base Call Option Transaction Confirmation, the Affected Convertible Securities specified in such Early Conversion Notice shall be allocated first to the Base Call Option
Transaction Confirmation until all options thereunder are exercised or terminated)]20 and (y) the Number of Options as of the “Conversion Date” (as defined in the Indenture) for
such Early Conversion; 

  

	 	(C)	 any payment hereunder with respect to such termination shall be calculated pursuant to Section 6 of the
Agreement as if (x) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Transaction and a Number of Options equal to the Affected Number of Options, (y) Counterparty were the sole
Affected Party with respect to such Additional Termination Event and (z) the terminated portion of the Transaction were the sole Affected Transaction; 

  

	 	(D)	 for the avoidance of doubt, in determining the amount payable in respect of such Affected Transaction pursuant
to Section 6 of the Agreement, the Calculation Agent shall assume that (x) the relevant Early Conversion and any conversions, adjustments, agreements, payments, deliveries or acquisitions by or on behalf of Counterparty leading thereto had
not occurred, (y) no adjustment to the conversion rate for the Convertible Securities has occurred pursuant to any Make-Whole Adjustment or Discretionary Adjustment and (z) the corresponding Convertible Securities remain outstanding; and

  

	 	(E)	 the Transaction shall remain in full force and effect, except that, as of the “Conversion Date”(as
defined in the Indenture) for such Early Conversion, the Number of Options shall be reduced by the Affected Number of Options. 

(c) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events. If (a) an Early
Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is designated with respect to the Transaction or (b) the Transaction is cancelled or terminated upon the occurrence of an Extraordinary Event (except
as a result of (i) a Nationalization, Insolvency or Merger Event in which the consideration to be paid to all holders of Shares consists solely of cash, (ii) a Merger Event or Tender Offer that is within Counterparty’s control, or
(iii) an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party other than an Event of Default of the type described in Section 5(a)(iii), (v), (vi), (vii) or
(viii) of the Agreement or a Termination Event of the type described in Section 5(b) of the Agreement, in each case that resulted from an event or events outside Counterparty’s control), and if Dealer would owe any amount to
Counterparty pursuant to Section 6(d)(ii) and 6(e) of the Agreement (any such amount, a “Payment Obligation”), then Dealer shall satisfy the Payment Obligation by the Share Termination Alternative (as defined below) unless
(a) Counterparty gives irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later than 12:00 p.m. (New York City time) on the Merger Date, Tender Offer Date, Announcement Date (in the case of a
Nationalization, Insolvency or Delisting), Early Termination Date or date of cancellation, as applicable, of its election that the Share Termination Alternative shall not apply, (b) as of the date of such election, Counterparty 

 

	20 	 Include for additional capped call. 

  
 Page 20 of 31 

 
represents that is not in possession of any material non-public information regarding Counterparty or the Shares, and that such election is being made in
good faith and not as part of a plan or scheme to evade compliance with the federal securities laws, and (c) Dealer agrees, in its sole discretion, to such election, in which case the provisions of Section 6(d)(ii) and 6(e) of the
Agreement, as the case may be, shall apply. 
  

			
	Share Termination Alternative:	  	If applicable, means that Dealer shall deliver to Counterparty the Share Termination Delivery Property on the date on which the Payment Obligation would otherwise be due pursuant to Section 6(d)(ii) of the Agreement or such
later date or dates as Dealer may commercially reasonably determine (the “Share Termination Payment Date”) taking into account commercially reasonable hedging or hedge unwind activity, in satisfaction of the Payment
Obligation.
		
	Share Termination Delivery	  	
		
	Property:	  	A number of Share Termination Delivery Units, as calculated by the Calculation Agent in good faith and in a commercially reasonable manner, equal to the Payment Obligation divided by the Share Termination Unit Price. The Calculation
Agent shall, in good faith and in a commercially reasonable manner, adjust the Share Termination Delivery Property by replacing any fractional portion of the aggregate amount of a security therein with an amount of cash equal to the value of such
fractional security based on the values used to calculate the Share Termination Unit Price.
		
	Share Termination Unit Price:	  	The value of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share Termination Delivery Property, as determined by the Calculation Agent in a
commercially reasonable manner and notified by the Calculation Agent to Dealer at the time of notification of the Payment Obligation.
		
	Share Termination Delivery Unit:	  	In the case of a Termination Event (other than on account of an Insolvency, Nationalization or Merger Event), Event of Default, Delisting or Additional Disruption Event, one Share or, in the case of an Insolvency, Nationalization or
Merger Event, one Share or a unit consisting of the number or amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any
securities) in such Insolvency, Nationalization or Merger Event, as applicable. If such Insolvency, Nationalization or Merger Event involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive
the maximum possible amount of cash.
		
	Failure to Deliver:	  	Applicable
		
	Other Applicable Provisions:	  	If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9 and 9.11 of the Equity Definitions will be applicable as if “Physical Settlement” applied to the Transaction, except that all references
to “Shares” shall be read as references to “Share Termination Delivery Units”; provided that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any
representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws as a result of the fact that Counterparty is the issuer of any Share Termination Delivery Units (or any part
thereof).

  
 Page 21 of 31 

 (d) Disposition of Hedge Shares. Counterparty hereby agrees that if,
in the good faith reasonable judgment of Dealer, based on the advice of counsel, the Shares (the “Hedge Shares”) acquired by Dealer for the purpose of hedging its obligations pursuant to the Transaction in a commercially reasonable
manner cannot be sold in the U.S. public market by Dealer without registration under the Securities Act, Counterparty shall, at its election: (i) in order to allow Dealer to sell the Hedge Shares in a registered offering, make available to
Dealer an effective registration statement under the Securities Act to cover the resale of such Hedge Shares and (A) enter into an agreement, in form and substance reasonably satisfactory to Dealer, substantially in the form of an underwriting
agreement for a registered offering, (B) provide accountant’s “comfort” letters in customary form for registered offerings of equity securities, (C) provide disclosure opinions of nationally recognized outside counsel to
Counterparty reasonably acceptable to Dealer, (D) provide other customary opinions, certificates and closing documents customary in form for registered offerings of equity securities and (E) afford Dealer a reasonable opportunity to
conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities (in all cases of (A)-(E) above, as would be usual and customary for offerings for companies of similar
size and industry); provided that if Counterparty elects clause (i) above but the items referred to therein are not completed in a timely manner, or if Dealer, in its sole reasonable discretion, is not satisfied with access to due
diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this Section 8(d) shall apply at the election
of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private placement, enter into a private placement agreement substantially similar to private placement purchase agreements customary for private placements of equity
securities of similar size and industry, in form and substance commercially reasonably satisfactory to Dealer, including customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Dealer, due
diligence rights (for Dealer or any designated buyer of the Hedge Shares from Dealer), and best efforts obligations to provide opinions and certificates and such other documentation as is customary for private placements agreements for transactions
of similar size and type, as is commercially reasonably acceptable to Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, in its good faith, commercially reasonable judgment, to
compensate Dealer for any commercially reasonable discount from the public market price of the Shares incurred on the sale of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Dealer at the then-current market price
on such Exchange Business Days, and in the amounts and at such time(s), commercially reasonably requested by Dealer. This Section 8(d) shall survive the termination, expiration or early unwind of the Transaction. 

(e) Repurchase Notices. Counterparty shall, at least two Scheduled Trading Days prior to any day on which Counterparty
effects any repurchase of Shares, give Dealer a written notice of such repurchase (a “Repurchase Notice”) if, following such repurchase, the Notice Percentage would reasonably be expected to be (i) greater than [●]21 or (ii) greater by 0.50% than the Notice Percentage included in the immediately preceding Repurchase Notice. The “Notice Percentage” as of any day is determined by reference to
the Dealer party to the base call option in respect of the Convertible Securities that specifies the largest Applicable Percentage and is the fraction, expressed as a percentage, the numerator of which is the total number of Shares underlying the
base call option between Counterparty and such Dealer, together with the number of Shares underlying any additional call option between Counterparty and such Dealer and the number of Shares underlying any other convertible bond hedge transactions or
similar call options sold by such Dealer to Counterparty and the denominator of which is the number of Shares outstanding on such day. In the event that Counterparty fails to provide Dealer with a Repurchase Notice on the day and in the manner
specified in this Section 8(e) then Counterparty agrees to indemnify and hold harmless Dealer, its affiliates and their respective directors, officers, employees, agents and controlling persons (Dealer and each such person being an
“Indemnified Party”) from and against any and all commercially reasonable losses (including losses relating to the Dealer’s commercially reasonable hedging activities as a consequence of becoming, or of the risk of becoming, a
Section 16 “insider”, including without limitation, any forbearance from hedging activities or cessation of hedging activities and any losses in connection therewith with respect to this Transaction), claims, damages and liabilities
(or actions in respect thereof), joint or several, to which such Indemnified Party may become subject under 
  

	21 	 To be 0.5% higher than the Notice Percentage as of the Trade Date.

  
 Page 22 of 31 

 
applicable securities laws, including without limitation, Section 16 of the Exchange Act or under any state or federal law, regulation or regulatory order, relating to or arising out of such
failure. If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Counterparty shall contribute, to the maximum extent permitted by law, to the amount paid
or payable by the Indemnified Party as a result of such loss, claim, damage or liability. In addition, Counterparty will reimburse any Indemnified Party for all commercially reasonable
out-of-pocket expenses (including commercially reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in connection with the
investigation of, preparation for or defense or settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit
or proceeding is initiated or brought by or on behalf of Counterparty. This indemnity shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and delegation of the Transaction made pursuant to this
Confirmation or the Agreement and shall inure to the benefit of any permitted assignee of Dealer. 
 (f) Transfer and
Assignment. 
 (i) Either party may transfer or assign any of its rights or obligations under the Transaction with the
prior written consent of the non-transferring party, such consent not to be unreasonably withheld or delayed; provided that Dealer may transfer or assign without any consent of Counterparty its rights
and obligations hereunder, in whole or in part, to any person, or any person whose obligations would be guaranteed by a person, in either case, with a rating (i) for its long-term, unsecured and unsubordinated indebtedness at least equivalent
to Dealer’s (or its ultimate parent’s) or (ii) that is no lower than A3 from Moody’s Investor Service, Inc. (or its successor) or A- from Standard and Poor’s Rating Group, Inc. (or its
successor); provided further that, at the time of such transfer or assignment either (x) both the Dealer and transferee or assignee in any such transfer or assignment are a “dealer in securities” within the meaning of
Section 475(c) (1) of the Internal Revenue Code of 1986, as amended (the “Code”) or (y) the transfer or assignment does not result in a deemed exchange by Counterparty within the meaning of Section 1001 of the
Code. In the event of any such transfer or assignment, the transferee or assignee shall agree that (i) Counterparty shall not be required to pay the transferee or assignee under Section 2(d)(i)(4) of the Agreement any amount greater than
the amount Counterparty would have been required to pay to Dealer in the absence of such transfer or assignment and (ii) Counterparty shall not receive from the transferee or assignee any amount or number of Shares less than it would have been
entitled to receive in the absence of such transfer or assignment. If at any time at which (1) the Equity Percentage exceeds 8.0% or (2) Dealer, Dealer Group (as defined below) or any person whose ownership position would be aggregated
with that of Dealer or Dealer Group (Dealer, Dealer Group or any such person, a “Dealer Person”) under Section 203 of the Delaware General Corporation Law or other federal, state or local law, rule, regulation or regulatory
order or organizational documents or contracts of Counterparty applicable to ownership of Shares (“Applicable Restrictions”), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a
relevant definition of ownership in excess of a number of Shares equal to (x) the number of Shares that would give rise to reporting, registration, filing or notification obligations or other requirements (including obtaining prior approval by
a state or federal regulator, but excluding reporting obligations arising under Section 13 of the Exchange Act as in effect on the Trade Date) of a Dealer Person under Applicable Restrictions and with respect to which such requirements have not
been met or the relevant approval has not been received, or that would have any other adverse effect on a Dealer Person, under Applicable Restrictions minus (y) 1% of the number of Shares outstanding on the date of determination (either such
condition described in clause (1) or (2), an “Excess Ownership Position”), Dealer, in its discretion, is unable to effect a transfer or assignment to a third party after its commercially reasonable efforts on pricing and terms
and within a time period reasonably acceptable to Dealer such that an Excess Ownership Position no longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated
Portion”) of the Transaction, such that an Excess Ownership Position would no longer exist following the resulting partial termination of the Transaction (after taking into account commercially reasonable adjustments to Dealer’s
commercially reasonable Hedge Positions from such partial termination). 

  
 Page 23 of 31 

 
In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement or
Section 8(c) of this Confirmation as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Counterparty were the sole Affected Party
with respect to such partial termination, (iii) such portion of the Transaction were the only Terminated Transaction and (iv) Dealer were the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the
Agreement and to determine the amount payable pursuant to Section 6(e) of the Agreement. The “Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares
that Dealer and any of its affiliates or any other person subject to aggregation with Dealer for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act, or any “group” (within the meaning of
Section 13 of the Exchange Act) of which Dealer is or may be deemed to be a part (collectively, “Dealer Group”) beneficially owns (within the meaning of Section 13 of the Exchange Act), without duplication, on such day
(or, to the extent that for any reason the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder results in a higher number, such higher number) and (B) the denominator of which is the number
of Shares outstanding on such day. In the case of a transfer or assignment by Counterparty of its rights and obligations hereunder and under the Agreement, in whole or in part (any such Options so transferred or assigned, the “Transfer
Options”), to any party, withholding of such consent by Dealer shall not be considered unreasonable if such transfer or assignment does not meet the reasonable conditions that Dealer may impose including, but not limited, to the following
conditions: 
  

	 	(A)	 With respect to any Transfer Options, Counterparty shall not be released from its notice and indemnification
obligations pursuant to Section 8(e) or any obligations under Section 2 (regarding Extraordinary Events) or Section 8(d) of this Confirmation; 

  

	 	(B)	 Any Transfer Options shall only be transferred or assigned to a third party that is a United States person (as
defined in the Code); 

  

	 	(C)	 Such transfer or assignment shall be effected on terms, including any reasonable undertakings by such third
party (including, but not limited to, undertakings with respect to compliance with applicable securities laws in a manner that, in the reasonable judgment of Dealer, will not expose Dealer to material risks under applicable securities laws) and
execution of any documentation and delivery of legal opinions with respect to securities laws and other matters by such third party and Counterparty as are requested by, and reasonably satisfactory to, Dealer; 

 

	 	(D)	 Dealer shall not, as a result of such transfer and assignment, be required to pay the transferee on any payment
date an amount under Section 2(d)(i)(4) of the Agreement greater than an amount that Dealer would have been required to pay to Counterparty in the absence of such transfer and assignment; 

 

	 	(E)	 Dealer shall not, as a result of such transfer or assignment, receive from the transferee or assignee any
amount or number of Shares less than it would have been entitled to receive in the absence of such transfer or assignment; 

  

	 	(F)	 An Event of Default, Potential Event of Default or Termination Event shall not occur as a result of such
transfer and assignment; 

  

	 	(G)	 Without limiting the generality of clause (B), Counterparty shall have caused the transferee to make such Payee
Tax Representations and to provide such tax documentation as may be reasonably requested by Dealer to permit Dealer to determine that results described in clauses (D) and (E) will not occur upon or after such transfer and assignment; and

  
 Page 24 of 31 

	 	(H)	 Counterparty shall be responsible for all reasonable costs and expenses, including reasonable counsel fees,
incurred by Dealer in connection with such transfer or assignment. 

 (ii) Notwithstanding any other
provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities, or make or receive any payment in cash, to or from Counterparty, Dealer may designate any of its
affiliates to purchase, sell, receive or deliver such Shares or other securities, or to make or receive such payment in cash, and otherwise to perform Dealer’s obligations in respect of the Transaction and any such designee may assume such
obligations. Dealer shall be discharged of its obligations to Counterparty solely to the extent of any such performance. 

(g) Staggered Settlement. If upon advice of counsel with respect to applicable legal and regulatory requirements,
including any requirements relating to Dealer’s commercially reasonable hedging activities hereunder, Dealer reasonably determines that it would not be practicable or advisable to deliver, or to acquire Shares to deliver, any or all of the
Shares to be delivered by Dealer on any Settlement Date for the Transaction, Dealer may, by notice to Counterparty on or prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares on two or more dates
(each, a “Staggered Settlement Date”) as follows: 
 (i) in such notice, Dealer will specify to Counterparty
the related Staggered Settlement Dates (each of which will be on or prior to such Nominal Settlement Date) and the number of Shares that it will deliver on each Staggered Settlement Date; 

(ii) the aggregate number of Shares that Dealer will deliver to Counterparty hereunder on all such Staggered Settlement Dates
will equal the number of Shares that Dealer would otherwise be required to deliver on such Nominal Settlement Date; and 

(iii) if the Net Share Settlement terms or the “Combination Settlement” (as defined in the Indenture) terms set forth
above were to apply on the Nominal Settlement Date, then the Net Share Settlement terms or the Combination Settlement terms, as the case may be, will apply on each Staggered Settlement Date, except that the Shares otherwise deliverable on such
Nominal Settlement Date will be allocated among such Staggered Settlement Dates as specified by Dealer in the notice referred to in clause (i) above. 

(h) Disclosure. Effective from the date of commencement of discussions concerning the Transaction, Counterparty and each
of its employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses)
that are provided to Counterparty relating to such tax treatment and tax structure. 
 (i) No Netting and Set-off. The provisions of Section 2(c) of the Agreement shall not apply to the Transaction. Each party waives any and all rights it may have to set-off delivery or
payment obligations it owes to the other party under the Transaction against any delivery or payment obligations owed to it by the other party, whether arising under the Agreement, under any other agreement between parties hereto, by operation of
law or otherwise. 
 (j) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common stockholders in the event of Counterparty’s bankruptcy. For the avoidance of doubt, the parties agree that the preceding sentence shall not apply at any
time other than during Counterparty’s bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations under this Confirmation or the Agreement. For the avoidance of doubt, the parties acknowledge that the
obligations of Counterparty under this Confirmation are not secured by any collateral that would otherwise secure the obligations of Counterparty herein under or pursuant to any other agreement. 

  
 Page 25 of 31 

 (k) Early Unwind. In the event the sale by Counterparty of the [Base
Convertible Securities]22[Optional Convertible Securities]23 is not consummated pursuant to the Purchase Agreement for any reason by the close
of business in New York on March 11, 2021 (or such later date as agreed upon by the parties) (March 11, 2021 or such later date being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early
Unwind”) on the Early Unwind Date and the Transaction and all of the respective rights and obligations of Dealer and Counterparty hereunder shall be cancelled and terminated. Following such termination and cancellation, each party shall be
released and discharged by the other party from, and agrees not to make any claim against the other party with respect to, any obligations or liabilities of either party arising out of, and to be performed in connection with, the Transaction either
prior to or after the Early Unwind Date. Dealer and Counterparty represent and acknowledge to the other that upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged. 

(l) Agreements and Acknowledgements Regarding Hedging. Counterparty understands, acknowledges and agrees that:
(A) at any time on and prior to the Expiration Date, Dealer and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to adjust its
hedge position with respect to the Transaction; (B) Dealer and its affiliates also may be active in the market for Shares other than in connection with hedging activities in relation to the Transaction; (C) Dealer shall make its own
determination as to whether, when or in what manner any hedging or market activities in securities of Issuer shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the “Daily
VWAP” (as defined in the Indenture); (D) any market activities of Dealer and its affiliates with respect to Shares may affect the market price and volatility of Shares, as well as the “Daily VWAP” (as defined in the Indenture), each
in a manner that may be adverse to Counterparty; and (E) the Transaction is a derivatives transaction in which it has granted Dealer an option, and Dealer may purchase shares for its own account at an average price that may be greater than, or
less than, the price paid by Counterparty under the terms of the Transaction. 
 (m) Wall Street Transparency and
Accountability Act. In connection with Section 739 of the Wall Street Transparency and Accountability Act of 2010 (the “WSTAA”), the parties hereby agree that neither the enactment of the WSTAA (or any statute containing
any legal certainty provision similar to Section 739 of the WSTAA) or any regulation under the WSTAA (or any such statute), nor any requirement under the WSTAA (or any statute containing any legal certainty provision similar to Section 739
of the WSTAA) or an amendment made by the WSTAA (or any such statute), shall limit or otherwise impair either party’s otherwise applicable rights to terminate, renegotiate, modify, amend or supplement this Confirmation or the Agreement, as
applicable, arising from a termination event, force majeure, illegality, increased costs, regulatory change or similar event under this Confirmation, the Equity Definitions incorporated herein, or the Agreement (including, but not limited to, rights
arising from Change in Law, Hedging Disruption, Increased Cost of Hedging or Illegality). 
 (n) Governing Law; Exclusive
Jurisdiction; Waiver of Jury. 
 (i) THE AGREEMENT, THIS CONFIRMATION AND ALL MATTERS ARISING IN CONNECTION WITH THE
AGREEMENT AND THIS CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW DOCTRINE, OTHER THAN TITLE 14 OF ARTICLE 5 OF THE NEW YORK GENERAL
OBLIGATIONS LAW). 
  

	22 	 Include for base capped call. 

	23 	 Include for additional capped call. 

  
 Page 26 of 31 

 (ii) Section 13(b) of the Agreement is deleted in its entirety and
replaced by the following: 
 “Each party hereby irrevocably and unconditionally submits for itself and its
property in any suit, legal action or proceeding relating to this Confirmation or the Agreement, or for recognition and enforcement of any judgment in respect thereof, (each, “Proceedings”) to the exclusive jurisdiction of the Supreme
Court of the State of New York, sitting in New York County, the courts of the United States of America for the Southern District of New York and appellate courts from any thereof. Nothing in this Confirmation or the Agreement precludes either party
from bringing Proceedings in any other jurisdiction if (A) the courts of the State of New York or the United States of America for the Southern District of New York lack jurisdiction over the parties or the subject matter of the Proceedings or
decline to accept the Proceedings on the grounds of lacking such jurisdiction; (B) the Proceedings are commenced by a party for the purpose of enforcing against the other party’s property, assets or estate any decision or judgment rendered
by any court in which Proceedings may be brought as provided hereunder; (C) the Proceedings are commenced to appeal any such court’s decision or judgment to any higher court with competent appellate jurisdiction over that court’s
decisions or judgments if that higher court is located outside the State of New York or Borough of Manhattan, such as a federal court of appeals or the U.S. Supreme Court; or (D) any suit, action or proceeding has been commenced in another
jurisdiction by or against the other party or against its property, assets or estate and, in order to exercise or protect its rights, interests or remedies under this Confirmation or the Agreement, the party (1) joins, files a claim, or takes
any other action, in any such suit, action or proceeding, or (2) otherwise commences any Proceeding in that other jurisdiction as the result of that other suit, action or proceeding having commenced in that other jurisdiction.” 

(iii) EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS CONFIRMATION OR THE AGREEMENT. 

(o) Amendment. This Confirmation and the Agreement may not be modified, amended or supplemented, except in a written
instrument signed by Counterparty and Dealer. 
 (p) Counterparts. This Confirmation may be executed in several
counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including any electronic signature covered by the U.S.
federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable law, e.g., DocuSign and AdobeSign (any such signature, an “Electronic Signature”)) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. The words “execution,” “signed,” “signature” and words of like import in this
Confirmation or in any other certificate, agreement or document related to this Confirmation shall include any Electronic Signature, except to the extent electronic notices are expressly prohibited under this Confirmation or the Agreement. 

(q) Tax Matters. For purposes of Sections 4(a)(i) and (ii) of the Agreement, Counterparty agrees to deliver to
Dealer one duly executed and completed United States Internal Revenue Service Form W-9 (or successor thereto) and Dealer shall provide to Counterparty one duly executed and completed United States
Internal Revenue Service Form [W-9][W-8BEN-E]24 (or successor thereto).
Such forms shall be delivered upon (i) execution and delivery of this Confirmation, (ii) promptly upon reasonable request of the other party and (iii) promptly upon learning that any such form previously provided has become obsolete
or incorrect. 
  

	24 	 Insert as applicable. 

  
 Page 27 of 31 

 (r) Withholding Tax with Respect to
Non-US Counterparties. “Indemnifiable Tax” as defined in Section 14 of the Agreement shall not include (i) any U.S. federal withholding tax imposed or collected pursuant to Sections
1471 through 1474 of the Code, any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted
pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code (a “FATCA Withholding Tax”) or (ii) any U.S. federal withholding tax imposed on amounts treated as
dividends from sources within the United States under Section 871(m) of the Code (or any Treasury regulations or other guidance issued thereunder). For the avoidance of doubt, a FATCA Withholding Tax is a Tax the deduction or withholding of
which is required by applicable law for the purposes of Section 2(d) of the Agreement. 
 (s) Payee Tax
Representations. For the purpose of Section 3(f) of the Agreement, the parties make the representations below: 

(i) [Dealer is organized under the laws of the United States and its U.S. taxpayer identification number is
[        ]. It is “exempt” within the meaning of Treasury Regulation sections 1.6041-3(p) and 1.6049-4(c) from
information reporting on IRS Form 1099 and backup withholding.]25 

(ii) Counterparty is a corporation for U.S. federal income tax purposes and is organized under the laws of the United States.
It is “exempt” within the meaning of Treasury Regulation sections 1.6041-3(p) and 1.6049-4(c) from information reporting on IRS Form 1099 and backup
withholding. 
 (t) Amendment to Equity Definitions. 

(i) Solely in respect of adjustments to the Cap Price pursuant to Section 8(u): 

 

	 	(1)	 Section 11.2(e)(v) of the Equity Definitions is hereby amended by adding the phrase “, provided that,
notwithstanding this Section 11.2(e)(v), the parties hereto agree that, with respect to the Transaction, the following repurchases of Shares by the Issuer or any of its subsidiaries shall not be considered Potential Adjustment Events: any
repurchases of Shares in open-market transactions at prevailing market prices or privately negotiated accelerated Share repurchase (or similar) transactions that are entered into at prevailing market prices and in accordance with customary market
terms for transactions of such type to repurchase the Shares, in each case, to the extent that, after giving effect to such transactions, the aggregate number of Shares repurchased during the term of the Transaction pursuant to all transactions
described in this proviso would not exceed 20% of the number of Shares outstanding as of the Trade Date, as determined by the Calculation Agent” at the end of such Section. 

 

	 	(2)	 Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “that may have
a diluting or concentrative effect on the theoretical value of the relevant Shares” and replacing them with the words “that is the result of a corporate event involving the Issuer or its securities that has, in the commercially reasonable
judgment of the Calculation Agent, a material economic effect on the Shares or options on the Shares; provided that such event is not based on (a) an 

 

	25 	 To be updated for particular dealer entity.

  
 Page 28 of 31 

	 	
observable market, other than the market for the Counterparty’s own stock or (b) an observable index, other than an index calculated and measured solely by reference to
Counterparty’s own operations.” 

  

	 	(3)	 Section 12.1(d) of the Equity Definitions is hereby amended by replacing “10%” with
“20%”. 

 (ii) Section 12.9(b)(i) of the Equity Definitions is hereby amended by replacing
“either party may elect” with “Dealer may elect or, if Counterparty represents to Dealer in writing at the time of such election that (i) it is not aware of any material nonpublic information with respect to Counterparty or the
Shares and (ii) it is not making such election as part of a plan or scheme to evade compliance with the U.S. federal securities laws, Counterparty may elect.” 

(u) Other Adjustments Pursuant to the Equity Definitions. Notwithstanding anything to the contrary in the Agreement, the
Equity Definitions or this Confirmation, upon the occurrence of a Merger Date, the occurrence of a Tender Offer Date, or declaration by Counterparty of the terms of any Potential Adjustment Event, the Calculation Agent shall determine in good faith
and in a commercially reasonable manner whether such occurrence or declaration, as applicable, has had a material economic effect on the Transaction and, if so, shall, in its good faith and commercially reasonable discretion, adjust the Cap Price to
preserve the fair value of the Options taking into account, for the avoidance of doubt, such economic effect on both the Strike Price and Cap Price (provided that in no event shall the Cap Price be less than the Strike Price; provided
further that any adjustment to the Cap Price made pursuant to this Section 8(u) shall be made without duplication of any other adjustment hereunder) and that such adjustments may be made to account solely for changes in
volatility, expected dividends, interest rates, stock loan rate or liquidity relative to the relevant Shares). Solely for purposes of this Section 8(u), the terms “Potential Adjustment Event,” “Merger Event,” and
“Tender Offer” shall each have the meanings assigned to each such term in the Equity Definitions (as amended by Section 8(t)(i)). 

(v) Notice of Certain Other Events. (A) Counterparty shall give Dealer commercially reasonable advance (but in no
event less than one Exchange Business Day) written notice of the section or sections of the Indenture and, if applicable, the formula therein, pursuant to which any adjustment will be made to the Convertible Securities in connection with any
Potential Adjustment Event, Merger Event or Tender Offer and (B) promptly following any such adjustment, Counterparty shall give Dealer written notice of the details of such adjustment. 

(w) Payment by Counterparty. In the event that, following payment of the Premium, (i) an Early Termination Date
occurs or is designated with respect to the Transaction as a result of a Termination Event or an Event of Default (other than an Event of Default arising under Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Counterparty owes
to Dealer an amount calculated under Section 6(e) of the Agreement, or (ii) Counterparty owes to Dealer, pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an amount calculated under Section 12.8 of the
Equity Definitions, such amount shall be deemed to be zero. 
 (x) U.S. QFC Stay Rules. The parties agree that
(i) to the extent that prior to the date hereof both parties have adhered to the 2018 ISDA U.S. Resolution Stay Protocol (the “Protocol”), the terms of the Protocol are incorporated into and form a part of the Agreement, and
for such purposes the Agreement shall be deemed a Protocol Covered Agreement and each party shall be deemed to have the same status as Regulated Entity and/or Adhering Party as applicable to it under the Protocol; (ii) to the extent that prior
to the date hereof the parties have executed a separate agreement the effect of which is to amend the qualified financial contracts between them to conform with the requirements of the QFC Stay Rules (the “Bilateral Agreement”), the
terms of the Bilateral Agreement are incorporated into and form a part of the Agreement and each party shall be deemed to have the status of “Covered Entity” or “Counterparty Entity” (or other similar term) as applicable to it
under the Bilateral Agreement; or (iii) if clause (i) and clause (ii) do not apply, the terms of Section 1 and Section 2 and the related defined terms (together, the “Bilateral Terms”) of the form of
bilateral template entitled “Full-Length Omnibus (for use between U.S. G-SIBs and Corporate Groups)” published by ISDA on November 2, 2018 (currently available on the 2018 ISDA U.S.

  
 Page 29 of 31 

 
Resolution Stay Protocol page at www.isda.org and, a copy of which is available upon request), the effect of which is to amend the qualified financial contracts between the parties thereto to
conform with the requirements of the QFC Stay Rules, are hereby incorporated into and form a part of the Agreement, and for such purposes the Agreement shall be deemed a “Covered Agreement,” Dealer shall be deemed a “Covered
Entity” and Dealer shall be deemed a “Counterparty Entity.” In the event that, after the date of the Agreement, both parties hereto become adhering parties to the Protocol, the terms of the Protocol will replace the terms of this
Section 8(x) of the Confirmation. In the event of any inconsistencies between the Agreement and the terms of the Protocol, the Bilateral Agreement or the Bilateral Terms (each, the “QFC Stay Terms”), as applicable, the QFC Stay
Terms will govern. Terms used in this paragraph without definition shall have the meanings assigned to them under the QFC Stay Rules. For purposes of this paragraph, references to “the Agreement” include any related credit enhancements
entered into between the parties or provided by one to the other. In addition, the parties agree that the terms of this paragraph shall be incorporated into any related covered affiliate credit enhancements, with all references to Dealer Parent
replaced by references to the covered affiliate support provider.“QFC Stay Rules” means the regulations codified at 12 C.F.R. 252.2, 252.81–8, 12 C.F.R. 382.1-7 and 12 C.F.R. 47.1-8, which, subject to limited exceptions, require an express recognition of the stay-and-transfer powers of the FDIC under the
Federal Deposit Insurance Act and the Orderly Liquidation Authority under Title II of the Dodd Frank Wall Street Reform and Consumer Protection Act and the override of default rights related directly or indirectly to the entry of an affiliate into
certain insolvency proceedings and any restrictions on the transfer of any covered affiliate credit enhancements. 
 (y)
[Role of Agent.]26 [Insert any Dealer agency language or communications with employees provisions.] 

[Signature Pages Follow] 

 

	26 	 Insert as applicable for each Dealer. 

  
 Page 30 of 31 

 Counterparty hereby agrees (a) to check this Confirmation carefully and immediately
upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Counterparty
with respect to the Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information required herein and immediately returning an executed copy to Dealer. 

 

			
	Yours faithfully,
	
	[DEALER]
		
	By:	 	  

		 	Name:
		 	Title:

 Agreed and Accepted By: 
  

			
	EVENTBRITE, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	  

  
 Page 31 of 31Operating Agreement

     

    

    of

     

    

    PVT-MADISON PARTNERS LLC

     

    

    A California Limited Liability Company

    

    

    

    THE INTERESTS OF THE COMPANY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR THE LAWS OF
      ANY OTHER NATION OR JURISDICTION AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED UNLESS THE SAME HAVE BEEN INCLUDED IN AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE MANAGER HAS BEEN
      RENDERED TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION UNDER APPLICABLE SECURITIES LAWS IS AVAILABLE.  IN ADDITION, TRANSFER OR OTHER DISPOSITION OF THE INTERESTS IS RESTRICTED AS PROVIDED IN THIS AGREEMENT.

    
      
        

    

    

    

    

    OPERATING AGREEMENT FOR PVT-MADISON PARTNERS LLC

     This Operating Agreement is entered into to take
        effect February ____, 2021 (the “Effective Date”) regarding PVT-Madison Partners LLC (the “Company”) by  BAA Investment Group, LLC, a California limited liability
        company, the Manager, Joel Kelly, Kristopher Lamont, MacKenzie Realty Capital, Inc., a Maryland corporation that has elected to be taxable for federal income tax purposes as a real estate investment trust under the Code and  any other persons
        admitted and executed as Members as set out in Exhibit B attached hereto (referred to herein individually as a “Member” and collectively as the “Members”).

    A. The Members
        desire to form a limited liability company under the California Revised Limited Liability Company Act, as amended.

    B. The Members
        enter into this Operating Agreement in order to form and provide for the governance of the Company and the conduct of its business and to specify their relative rights and obligations.

    NOW THEREFORE, the Members hereby agree as follows:

    ARTICLE I:  DEFINITIONS

    The following capitalized terms used in this Agreement have the meanings specified in this Article or elsewhere in this Agreement and when not so defined shall have the meanings set
      forth in California Corporations Code section 17701.02:

    1.1 “Accrued Return” means, as of any date, the cumulative Preferred Return that has been accrued but not paid to the Members.

    1.2 “Act” means the California Revised Limited Liability Company Act (California Corporations Code sections 17701.01-17713.13), including any amendments from time to time.

    1.3 “Agreement” means this Operating Agreement, as originally executed and as amended from time to time.

    1.4 “Articles of Organization” is defined in California Corporations Code section 17701.02(b) as applied to this Company.

    1.5 “Assignee” means a person who has acquired a Member’s Economic Interest in the Company, by way of a Transfer in accordance with the terms of this Agreement, but who has not become a Member.

    1.6 “Assigning Member” means a Member who by means of a Transfer has transferred an Economic Interest in the Company to an Assignee.

    1.7  “Available Cash Flow from Operations” means, with respect to any period, the net cash generated by the Company from operations, after payment of all expenses and obligations of the Company, including Member
        loans, if any, for such period, including any fees payable to the Manager or its affiliates following the creation of such reserves as the Manager in its and absolute discretion may establish and maintain for a period to be determined by the
        Manager in its commercially reasonable good faith judgment.

    1.8 “Available Proceeds” means net cash received by the Company, from time to time, from the proceeds of any financing or refinancing, any sale, lease, exchange or other disposition of any Company asset or
        condemnation or expropriation award or insurance claim (unless all proceeds are used to repair or restore the Company assets), sale of an individual Property or sale of the entire Project after payment of the costs of the transaction giving rise to
        the Available Proceeds, payment of such outstanding debts, expenses and obligations as are required to be paid in connection therewith and the creation of such reserves as the Manager in its and absolute discretion may establish).

    1.9 “Capital Account” means, as to any Member, a separate account maintained and adjusted in accordance with Article III, Section 3.5.

    1.10 “Capital Contribution” means, with respect to any Member, the amount of the money and the Fair Market Value of any property (other than money) contributed to the Company (net of liabilities secured by such
        contributed property) that the Company is considered to assume or take “subject to” under IRC section 752) in consideration for a Percentage Interest held by such Member.  A Capital Contribution shall not be deemed a loan.

    1.11 “Cause” means any of the following:

    (a) engaging in any criminal act which is or involves a violation of federal or state securities laws or regulations (or equivalent securities laws or regulations of any country or political subdivision thereof), embezzlement, fraud, wrongful
        taking or misappropriation of property, theft or any other crime involving dishonesty or other serious felony offense that is a crime of moral turpitude and such act results in a conviction (whether or not subject to appeal), plea of guilty, or
        plea of nolo contendere (or any similar plea) to any criminal offense in connection with or relating to such act;

    (b) unlawful acts of moral turpitude or willful misconduct in the management of the affairs of the Company;

    (c) any act or failure to act that was performed in bad faith and has a materially detrimental effect on the Company;

    (d) any breach, by a Manager, of a fiduciary duty including the duty of care as more particularly provided in Section 5.1.6;

    1.12 “Code” or “IRC” means the Internal Revenue Code of 1986, as amended, and any successor provision.

    1.13 “Company” means PVT-Madison Partners LLC.

    1.14 “Economic Interest” means a Person’s right to share in the income, gains, losses, deductions, credit or similar items of, and to receive distributions from the Company, but does not include any other rights of a
        Member, including the right to Vote or to participate in management.

    1.15 “Encumber” means the act of creating or purporting to create an Encumbrance, whether or not perfected under applicable law.

    1.16 “Encumbrance” means, with respect to any Membership Interest, or any element thereof, a mortgage, pledge, security interest, lien, proxy coupled with an interest (other than as contemplated in this Agreement),
        option, or preferential right to purchase.

    1.17 “Fair Market Value” means, with respect to any item of property of the Company, the item’s adjusted basis for federal income tax purposes, except as follows:

    (a) The Fair
        Market Value of any property contributed by a Member to the Company shall be the value of such property, as mutually agreed by the contributing Member and the Company;

    (b) The Fair
        Market Value of any item of Company property distributed to any Member shall be the value of such item of property on the date of distribution, as mutually agreed by the recipient Member and the Company; and

    (c) Fair Market
        Value for purposes of Article VIII, Section 8.10 shall be as determined under that section.

    1.18 “Initial Member” or “Initial Members” means those Persons whose names are listed in Exhibit B to this Agreement as of the date hereof.  A reference to an “Initial Member”
        means any of the Initial Members.

    1.19 “Involuntary Transfer” means, with respect to any Membership Interest, or any element thereof, any Transfer or Encumbrance, whether by operation of law, pursuant to court order, foreclosure of a security interest,
        execution of a judgment or other legal process, or otherwise, including a purported transfer to or from a trustee in bankruptcy, receiver, or assignee for the benefit of creditors.  Included within the general definition of Involuntary Transfer
        shall be (a) a transfer in whole or in part to the spouse of a Member in connection with a divorce proceeding, (b) a transfer by will or intestate succession on account of the death of a Member, (c) the continued ownership after the death of a
        Member, of a Membership Interest by a trust formerly established by the deceased Member.

    1.20 “Losses” See “Profits and Losses.”

    1.21 “MacKenzie” shall mean MacKenzie Realty Capital, Inc., a Maryland corporation that has elected to be taxable for federal income tax purposes as a real estate investment trust under the Code (herein, a “REIT”);
        and/or any subsidiary or affiliate of MacKenzie.

    1.22 “Majority in Interest” shall mean Members whose combined Percentage Interests represent more than fifty percent (50%) of the Membership Interests then held by all Members.

    1.23 “Manager” means BAA Investment Group, LLC, a California limited liability company, or their successors as set out in Article V.

    1.24 “Meeting” is defined in Article V, Section 5.2.

    1.25 “Member” means an Initial Member or a Person who otherwise acquires a Membership Interest, as permitted under this Agreement, and who remains a Member. The Equity Investor Members and the Developer Investor
        Members are Members of the Company.

    1.26 “Membership Interest” means both a Member’s ownership and right to Vote a as determined and set out in this Agreement and the Member’s Percentage Interest in the Company. The Membership Interests of a Member shall
        be determined by the number of Membership Units of the Member.

    1.27 “Notice” means a written notice required or permitted under this Agreement.  A notice shall be deemed given or sent when deposited, as certified mail or for overnight delivery, postage and fees prepaid, in the
        United States mails; when delivered to Federal Express, United Parcel Service, DHL World Wide Express, or Airborne Express, for overnight delivery, charges prepaid or charged to the sender’s account; when personally delivered to the recipient; when
        transmitted by electronic means, and such transmission is electronically confirmed as having been successfully transmitted; or when delivered to the home or office of a recipient in the care of a person whom the sender has reason to believe will
        promptly communicate the notice to the recipient, in each case at the address set forth for the recipient in Exhibit B hereto, or such other address as the recipient shall have notified to each of the parties hereto in accordance with the terms of
        this Section 1.26.

    1.28 “Percentage Interest” means a Member’s share of profits and losses and rights to distributions from the Company based on the Member’s pro-rated share of the Member’s Membership Units, which includes the right to
        Vote Member’s Membership Units: it is a fraction, expressed as a percentage, the numerator of which is the amount of the individual Member’s Membership Units and the denominator of which is the total of all of the issued and outstanding Membership
        Units in the Company.  Each Member’s Percentage Interest shall be set forth in Exhibit B hereto, and the Manager shall amend Exhibit B from time to time to reflect any changes in such Percentage Interests.

    1.29 “Person” means an individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

    1.30 “Preferred Return” means an amount determined by multiplying seven percent (7%) per annum by the ending balance of a Member's Unreturned Capital, calculated monthly. The
        Preferred Return shall begin to accrue for each Member at the later of i) the date the Company closes the purchase of the Property and the Company holds record title to the Property (even if the individual Equity Investor (as defined below) has
        subscribed and deposited funds prior to the closing of the purchase of the Property) or ii) the Company receives all of an Equity Investor’s subscribed funds, if later. See Article IV Allocations and Distributions

    1.31 “Profits and Losses” means, for each fiscal year or other period specified in this Agreement, an amount equal to the Company’s taxable income or loss for such year or period, determined in accordance with IRC
        section 703(a).

    1.32 “Proxy” has the meaning set forth in Section 178 of the California General Corporation Law (the “Law”), Division 1, Title 1, and pursuant to section 17704.07 of the Act,
        shall be governed by the Law.  A Proxy may not be transmitted orally.

    1.33 “Regulations” (“Reg”) means the income tax regulations promulgated by the United States Department of the Treasury and published in the Federal Register for the purpose of
        interpreting and applying the provisions of the Code, as such Regulations may be amended from time to time, including corresponding provisions of applicable successor regulations.

    1.34 “REIT
          Prohibited Transactions” shall mean any action specified in Section 5.4.

    

    

    1.35 “Remaining Members” means, at any time, Members who have not delivered a Notice of Withdrawal, as defined in Article VIII, Section 8.1.

    1.36 “Substituted Member” is defined in Article VIII, Section 8.12.

    1.37 “Successor in Interest” means an Assignee, a successor of a Person by merger or otherwise by operation of law, or a transferee of all or substantially all of the business or assets of a Person.

    1.38 “Transfer” means, with respect to a Membership Interest, or any element of a Membership Interest, any sale, assignment, gift, Involuntary Transfer, or other disposition of a Membership Interest or any element of
        such a Membership Interest, directly or indirectly, other than an Encumbrance that is expressly permitted under this Agreement.

    1.39 “Triggering Event” is defined in Article VIII, Section 8.5.

    1.40 “Unreturned Capital” means, with respect to each Member, at any given time, Capital Contributions made by such Member minus all Distributions received by such Member in excess of the Preferred Return.

    1.41 “Vote” means a written consent or approval, or a ballot cast at a Meeting.

    1.42 “Voting Interest” means, with respect to a Member, the right to Vote except as limited by the provisions of this Agreement.  Each Member shall have the number of Votes represented by that Member’s Membership
        Units.

    1.43 “Transferring Member” means a Member whose Membership Interest is subject to transfer or sale, whether voluntary or involuntary.  The “Transferring Member’s Interest” means
        the Membership Interest owned by a Transferring Member or owned by a successor to a Member which successor has not been approved as a transferee pursuant to Section 8.2, or subject to a voluntary Transfer or Involuntary Transfer.

    ARTICLE II: ORGANIZATION

    2.1 The Members
        approve the Articles of Organization, attached to this Agreement as Exhibit A, which have been filed with the California Secretary of State effective, November 24, 2020. The California State file number is #202033510463.

    2.2 The name of
        the Company is PVT-Madison Partners LLC.

    2.3 The principal
        executive office of the Company shall be at 11 Embarcadero W, Suite 200, Oakland, California 94607 or such other place or places as may be determined by the Manager from time to time.

    2.4 The initial
        agent for service of process on the Company shall be Tyler Kellner, whose address is at the principal executive office of the Company.  The Manager may from time to time change the Company’s agent for service of process.

    2.5 The Company
        has been formed to purchase that certain real property which consists of a 39-unit residential apartment building located at 315 Park View Terrace, Oakland, California 94610 (referred to as the “Property”). 
        The Company shall acquire the Property, and will be engaged in managing, owning, developing, remodeling, constructing improvements, repairing, operating, leasing, potentially selling and/or holding for investment the apartment units located on the
        Property (collectively including the ownership of the Property, the “Project”). The Company shall purchase the Property for approximately Fifteen Million Two Hundred and Fifty Thousand Dollars
        ($15,250,000.00) (the “Purchase Price”) and secure investor equity of Eight Million Dollars ($8,000,000.00). Portions of the investor equity shall be used for additional costs and expenses.  The balance of
        the Purchase Price shall be paid pursuant to the First Indebtedness (as set forth below). The Company shall manage the development and operation of the Property and the Project. Notwithstanding the foregoing, The Company may purchase the Property
        to hold for investment purposes only and not develop the Property.  The Company may enter into agreements with respect to the Property and the Project.  The Company shall have complete control of the development of the Property and the Project.  In
        addition, the Company shall have such other purposes as may be necessary, incidental or convenient to carry on the Company’s primary purpose and may engage in any other business activities permitted under the Act.

    2.6  The term of
        existence of the Company shall commence on the effective date of filing of Articles of Organization with the California Secretary of State and shall continue until the Company is dissolved by the Manager at its absolute discretion unless sooner
        terminated by the provisions of this Agreement or as provided by law.

    2.7 Restrictions
        on Business/Purpose.  For so long as MacKenzie is a Member of the Company, the Company may only invest in real property and/or in entities that own only real property.

    ARTICLE III: CAPITALIZATION

    3.1 Developer
          Investor. The Company shall have the right to issue  Twelve Thousand and Five Hundred
        (12,667) Membership Units (the “Membership Unit(s)”).  There shall only be one class of Membership Units.  The Company shall initially issue  Ten Thousand  Six Hundred and Sixty-Seven (10,667) Membership
        Units.  The Company shall reserve Two Thousand (2,000) Membership Units for issuance to raise additional capital from Equity Investors (or new Equity Investors) and for potential additional issuance to the Developer Investors pursuant to this
        Agreement and the Company’s raising additional capital.  One Thousand  Five Hundred (1,500) Membership Units shall be reserved (the “Additional Equity Investor Units”) for additional issuance to the Equity
        Investors (“Additional Equity Membership Unit Issuance”) and Five Hundred (500)  Membership Units (“Additional Developer Investor Units”) shall be reserved for
        additional issuance to the Developer Investors (“Additional Developer Membership Units Issuance”). If the Company issues additional Membership Units to the Equity Investors through an Additional Equity
        Membership Unit Issuance, then the Developer Investors (issued at the direction of the Manager) shall be issued the number of additional Membership Units, through an Additional Developer Membership Unit Issuance, that are necessary to maintain
        their original Percentage Interests (25%) in the Company.

    3.2 Categories
          of Capitalization.  There shall be two categories of capitalization, namely cash from Equity Investors, and services from the Developer Investors.

    3.3 Equity
          Investors.

    (a) The Equity
        investors and the amounts contributed by each such Member are listed on Exhibit B (“Equity Investors”).  The Equity Investors as a group shall have seventy five percent (75%) of the Percentage Interests in
        the Company. The Company shall originally issue  Eight Thousand (8,000)  Membership Units to the Equity Investors as a group for a total investment of Eight Million Dollars($8,000,000.00) (the “Original Equity
          Membership Unit Issuance”).  Each Equity Unit shall initially be One Thousand dollars ($1,000.00) per Membership Unit. The initial Equity Investors, their individual Membership Units and their individual Capital Contributions are set forth
        in Exhibit B.

    (b) Restrictions
        on the Equity Investor Membership Interests:

    (i)  No Membership Unit issued to an Equity Investor hereunder shall be sold, transferred by gift, pledged, hypothecated, or otherwise transferred or disposed
      of by the Equity Investors at any time (except to a qualified trust or otherwise by devise as set forth below) without the approval of the Manager and such Membership Interests shall be “Restricted Equity Membership
        Units” until the Company sells or assigns their interest in the Property or the Project.

    If the Company sells or assigns their interest in the Property or the Project then the Equity Investor Membership Units shall no longer be Restricted Equity Membership Units and,
      unless as set forth elsewhere in this Agreement, shall not be subject to a Repurchase Option (as defined in Article XIII below) in favor of the Company or the other Members.

    (ii)  Any attempt to transfer the Restricted Equity Investor Membership Interests in violation of this Section shall be null and void and shall be disregarded by
      the Company.

    

    

    3.4 Developer
          Investors.

    (a) The Developer
        investors and their individual Membership Units are listed on Exhibit B (the “Developer Investors”), subordinated to the return to the Equity Investors of their capital contributions and payment of the
        Preferred Return. The Company shall originally issue Two Thousand Six Hundred and Sixty-Seven (2,667) Membership Units to the Developer Investors as a group (the “Developer Investor Units”).

    (b) The 
        Additional Developer Investor Units shall be issued to the Developer Members such that for every three (3) Additional Equity Investor Units sold by the Company the Developer Investors as a group shall receive one (1) additional Membership Unit so
        that the Developer Investors shall (as a group) remain the owners of twenty-five percent (25%) of the Percentage Interests in the Company.   Such Additional Developer Investor Units shall be issued upon the closing of each sale of Additional Equity
        Investor Units.  The Additional Developer Investor Units shall be issued to or at the direction of the Manager.

    3.5 Capital
          Accounts.

    (a) An individual
        Capital Account shall be maintained for each Member consisting of that Member’s Capital Contribution (1) increased by that Member’s share of Profits, (2) decreased by that Member’s share of Losses, (3) reduced by any distributions to the Members,
        and (4) adjusted as required in accordance with applicable provisions of the Code and Regulations.

    (b) A Member shall
        not be entitled to withdraw any part of the Member’s Capital Contribution or to receive any distributions, whether of money or property, from the Company except as provided in this Agreement.

    (c) No interest
        shall be paid or shall accrue on funds or property contributed to the capital of the Company or on the balance of a Member’s Capital Account except as provided in this Agreement.

    3.6 A Member shall
        not be bound by, or be personally liable for, the expenses, liabilities, or obligations of the Company except as otherwise provided in the Act or in this Agreement.

    3.7 Except as
        otherwise stated in this Operating Agreement no Member shall have priority over any other Member. with respect to the return of a Capital Contribution, or distributions or allocations of income, gain, losses, deductions, credits, or items thereof.
        The rights of the Developer Investor’s interest are subordinated to the Equity Investors’ rights to the return of their invested Capital and the Preferred Return.

    3.8 First
          Indebtedness.  The Company shall initially be borrowing approximately Eight Million Three Hundred Eighty-Seven Thousand and Five Hundred Dollars ($8,387,500.00) pursuant to a first mortgage loan from First Republic Bank (the “Lender”) to acquire the Property and for other expenses associated with the Project (collectively the “First Indebtedness”) All of the documents associated with the First
        Indebtedness shall be defined as the “Loan Documents”. For as long as the First Indebtedness is outstanding the Company shall maintain a copy of the Loan Documents at the Company’s office where each of the
        Equity Investors and Developer Investors shall have the opportunity to review them.  The First Indebtedness may be for a greater or lesser amount which determination shall be at the sole discretion of the Manager. The First Indebtedness shall be
        secured by a first deed of trust on the Property in favor of the Lender. The Company may borrow additional funds for operating capital or financing of the Project that is separate from any other debt that shall initially encumber the Project.  The
        Manager in its reasonable judgment may approve a loan to the Company by one or more of the Members, a third party or the Manager. Such loans shall be exhibited by a promissory note and paid current prior to
        any distribution to the Members and shall be repaid prior to the payment of any final distribution to the Members.

    3.9 Sale of
          Additional Equity Investor Units.  Prior to the issuance and sale of any Additional Membership Units, the Manager shall, using reasonably acceptable accounting methods, determine financial needs of and in light thereof the fair market value
        of the Company and the 75% profits share of the Members and thereby determining the fair market value of each 1% of Membership Interest.  The Manager with approval of a Majority in Interest of the Membership Units, may then offer to sell additional
        Equity Membership Units at a price that in its reasonable determination reflects the fair market value of the Membership Units at the time of such issuance, given the Company’s circumstances. Such Additional Membership Interests shall be first
        offered to the existing Members, on a pro-rata basis, but if they do not subscribe for and acquire all of those Interests offered within the terms specified by the Manager, then the Manager may offer the Interests to third parties so long as a
        Majority in Interest of Membership Interests and the Manager have approved.  If the Company issues Additional Equity Investor Units to the Equity Investors through an Additional Equity Membership Unit Issuance, then the Developer Investors shall be
        issued  a number of additional Membership Units through an Additional Developer Membership Unit Issuance to maintain the Percentage Interests of the Developer Investors.

    3.10 Joel Kelly
        and/or Kristopher Lamont may personally guaranty loans on behalf of the Project.  The Members agree that all of the assets of the Company and all equity in and income of the Property is dedicated to indemnify Joel Kelly and/or Kristopher Lamont for
        any liability, costs or damages (including without limitation attorneys’ fees, judgments, fines, and amounts paid in settlement, payable as incurred) that are incurred by Joel Kelly and/or Kristopher Lamont as a result of any of his guarantees on
        behalf of the Company including without limitation his guaranty of any loans made to the Company.  The Company  and the Members shall defend, indemnify and hold harmless each and every Manager, and every other Member, and any officers, directors,
        shareholders, managers, members, employees, partners, agents, attorneys, registered representatives, and control persons of any such entity who was or is a party or is threatened to be made party to any threatened, pending, completed action, suit,
        or proceeding, whether civil, criminal administrative, or investigative, by reason of or arising from any misrepresentation or misstatement of facts or omission to represent or state facts made by him or her including, without limitation, the
        information in this Agreement, against losses, liabilities, and expenses of the Company, each and every Manager, each and every other Member, and any officers, directors, shareholders, managers, members, employees, partners, attorneys, accountants,
        agents, registered representatives, and control persons of any such Person (including attorneys’ fees, judgments, fines, and amounts paid in settlement, payable as incurred) incurred by such Person in connection with such action, suit, proceeding,
        or the like.

    3.11 Additional
          and Contribution Loans.    Subject to the provisions set forth in this Operating Agreement, the Company may obligate itself pursuant to Additional Loans (which may be commercial loans or individual third party loans), provided that such
        additional loans are not senior to the First Indebtedness, for the purchase of the Property and the development, remodeling and the operation of the Project and the Company for any reason that the Manager determines to be necessary, that is
        separate from any debt that shall encumber the Property pursuant to the First Indebtedness or other indebtedness (“Additional Loans”).  The Manager may determine in its and absolute discretion that any
        Additional Loans may be recorded and secured against the Property or the Project.

    The Members, but only with the request and the consent of the Manager, may lend the Company money from time to time (“Contribution Loans”).
      The Contribution Loans shall not be senior to the First Indebtedness or any Additional Loans.  The Contribution Loans shall be used for development costs, operating costs and other expenses determined to be necessary by the Manager in its sole and
      absolute discretion.  If the Manager determines in its reasonable business judgment that further loans are required to enable the Company to carry out the purposes of this Agreement, such loans shall be offered to the Members in proportion to their
      Percentage Interests.  All Contribution Loans of the Members shall bear interest at 6% per annum or such other commercially reasonable rate as agreed by the Manager.  All Contribution Loans made pursuant to this paragraph shall be evidenced by a
      promissory note and set out in Exhibit B (as amended for each additional Contribution Loan).

    The Manager, in its and absolute discretion, shall have the right to make  distributions  to the Members pursuant to this Agreement prior to repayment of the principal and interest
      on Contribution Loans and Additional Loans as long as the terms of such Loans permit such distributions.  The Company shall repay the Additional Loans and Contribution Loans prior to any final distribution to the Members.

    ARTICLE IV: ALLOCATIONS AND DISTRIBUTIONS

    4.1 Tax
          Allocations. All items of Company income, gain, loss, deduction, or credit (“profits and losses”) shall be the same as the amounts which are reportable by the Company for federal income tax purposes, as generally determined in accordance with
        I.R.C. Sec. 703 et seq.  Profits and losses from Operations shall be determined and allocated at the end of each Company year with respect to that year. Profits and losses from a Major Capital Event and a Liquidating Event shall be determined and
        allocated as of the date of such Event, without regard to allocations of profit or loss occurring after, or distributions of cash occurring after or with respect to, such event. The Company does not intend to make any special allocations of income,
        gain or losses and intends to allocate reportable income, and gains consistent with the actual cash distributions to the Partners Such items allocated to the Equity Investors shall be allocated among the Members according to their Percentage
        Interests.

    (a) Allocation of
        Losses:

    (1) Elimination
          of Undistributed Profits.  First, any net loss of the Company shall be allocated among the Members until the Capital Account of each Member is reduced to an amount equal to that Member's aggregate Capital Contributions to the Company.

    (2) Elimination
          of Contributed Capital Balance.  Second, any remaining net loss of the Company shall thereafter be allocated among the Members until the Capital Account of each Member is reduced to zero.

    (3) Allocation
          of Loss Attributable to Non-Member Debt.  Third, any remaining net loss of the Company shall thereafter be allocated to the Members until the deficit in each Member's Capital Account equals his allocable share of Company debt (not including
        debt to Members, debts guaranteed by Members, debt secured by a Member's property, or other debts for which a Member has economic risk). It is understood that recourse debt, if any, owed to persons who are not Members will be allocated entirely to
        the Manager.

    (4) Allocation
          of Loss Attributable to Member Debt.  Fourth, any remaining net loss of the Company shall thereafter be allocated to the Members until the deficit in each Member's Capital Account equals, in addition to amounts allocated pursuant to the
        previous sentence, (a) the amount of the Company's outstanding debts (outstanding principal and accrued unpaid interest) to that Member, and (b) that Member's share of any Company debt that the Member has guaranteed or pledged collateral for, or
        with respect to which the Member has otherwise assumed the risk of nonpayment.

    (5) Remaining
          Net Loss.  Fifth, any remaining net loss of the Company shall be allocated 100% to the Developer Investors.

    (6) Liquidating
          Event Loss. Notwithstanding the foregoing, losses arising from a Liquidating Event shall be allocated first to those Members with positive Capital Accounts in a manner so as to reduce all positive Capital Accounts to zero, or to equal amounts
        and as close to zero as the extent of the allocable losses allow. No loss amount shall be allocated to a Member with a negative Capital Account balance so long as any Member has a positive Capital Account balance. No additional losses shall be
        allocated to a Member's Capital Account to cause the Member's Capital Account to be reduced below zero. Any losses which are not allocated to the Member's Capital Accounts, or to any of them, shall be allocated 100% to the Developer Investors.

    
      	
              (b)

            	
              Allocation of Income from Operations:

            

    

    (1) Elimination
          of Accumulated Net Loss.  First, any net income from Operations shall be allocated among the Members in the inverse of the order and in the amounts in which net losses of the Company have previously been allocated, until the Capital Account
        of each Member equals the amount of the Member's capital contribution to the Company.

    (2) Preferred
          Return. Second, any remaining net income from Company Operations shall be allocated 100% to the Members until they have been allocated amounts equal to the full amount of the Preferred Return which has been distributed to them.

    (3) Remaining
          Net Income. Third, any remaining net income from Operations shall be allocated 75% to the Equity Investors based upon their Percentage Interest and 25% to the Developer Investors based upon their Percentage Interests, consistent with the
        distributions made.

    (c) Net Income and
        Gain from Liquidating or Capital Events:

    (1) Elimination
          of Accumulated Net Loss.  First, any net income or gain from a Liquidating Event or a Capital Event shall be allocated among the Members in the inverse of the order and in the amounts in which net losses of the Company have previously been
        allocated, until the Capital Account of each Member equals the amount of the Member's Capital Contribution to the Company less the amount of distributions previously made to each Member which reduced that Member's capital account balance.

    (2) Make up
          Return.  Second, net income or gain from a Liquidating Event or a Capital Event shall be allocated to the Members in an amount sufficient to ensure that if the Company were to then distribute all of its assets to the Members, the Members
        would receive total capital distributions, including prior Capital Distributions made, equal to the aggregate of their Capital Contributions.

    (3) Preferred
          Return. Third, net income or gain from a Liquidating Event or a Capital Event shall be allocated to the Members in an amount equal to the Preferred Return and Accrued Preferred Return paid to them out of the Liquidating Event or a Capital
        Event proceeds.

    (4) Remaining
          Net Income and Gain. Fourth, any remaining net income or gains from a Liquidating Event or a Capital Event shall be allocated 75% to the Equity Investors based upon their Percentage Interests and 25% to the Developer Investors based upon
        their Percentage Interests. The intent is that to the extent that 25% of profits is received by the Developer Investor Members, a pro-rata share of profits or gain, as the case may be, in that year, shall be allocated to the Developer Investors.
        This is intended to be treated as a carried interest to the Developer Investors. When there is a distribution in liquidation of the Company, or when any Member’s interest is liquidated, all items of income and loss first shall be allocated to the
        Members’ Capital Accounts under this Article IV, and other credits and deductions to the Members’ Capital Accounts shall be made before the final distribution is made.

    (d) Allocations
        Among Members:

    (1) Amounts
        allocated to the Members collectively shall be allocated pro rata among the Members per their Percentage Interests. No Member shall be allocated an amount of losses that would reduce his Capital Account below zero or which would require him to
        contribute additional funds to the Company if it were dissolved. To the extent consistent with Federal tax law, it is intended that allocations of profits shall be made to the Members to the extent of and in accordance with first, prior allocations
        of loss and second, actual distributions of cash made to them.

    (2) All
        allocations of profits and losses from Operations shall be made to the persons who were Members during the fiscal period for which such allocation is made based upon the number of days in such period during which the person was a Member.

    (3) All
        allocations of profits and losses from a Major Capital Event or Liquidating Event shall be made to the persons who are Members as of the date of such event.

    (4) If profits
        from a Major Capital Event or Liquidating Event allocated to the Members are less than the deficit amounts of the Capital Accounts of all Members whose Capital Accounts are negative, if any, such profits shall be allocated among such Members in the
        ratio which the deficit amount of each such Member's Capital Account bears to the deficit amounts of the Capital Accounts of all such Members whose Capital Accounts have a deficit balance.

    (5) If the
        character of any profit or loss is in part capital and in part ordinary in the hands of the Company or is in part governed by Internal Revenue Code Section 1231 and in part not governed thereby, then all allocations of any such profit or loss shall
        be made among the Members in a manner such that each Member to whom such profit or loss is allocated, is allocated the same proportion of each such separate class of profit or loss as such Member is allocated to the total amount of such profit or
        loss.

    (6) Any
        recognition of taxable income or loss arising from the recharacterization of the status or treatment of any item, or any recapture of any tax credit on audit or by an amended tax return, shall be allocated in the same manner and ratio as said item
        or credit was previously allocated to the Members, or as close thereto as the Manager may determine, in its sole discretion on competent advice.

    (7) For the
        purposes of the allocations made upon a liquidation or capital event, the balance in a Member's Capital Account shall be determined as if the Company's year had closed immediately prior to the date as of which such allocations are made.

    (8) To the extent
        that taxable profits equal cash distributions, profit allocations will correspond with the actual cash distributions made.

    (9) If there are
        more than one Developer Investor, amounts distributed, or profits or losses allocated to the Developer Investors shall be divided among those persons pursuant to their Percentage Interest.

    (e) Allocations
        for Capital Account Purposes:

    (1) Capital
        accounts shall be maintained for each Equity Investor and for each Developer Investor. For Federal Income Tax purposes and for the purposes of maintaining the Capital Accounts and in determining the rights of the Members among themselves, each item
        of income, gain, loss and deduction (computed in accordance with the above) shall be allocated to the Members pro rata in accordance with their respective Percentage Interests, except as otherwise provided in this document or by the Manager to make
        the allocation equitable.

    (2) If any Member
        unexpectedly receives any adjustments, allocations or distributions described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4) through (6), inclusive, items of Company income and gain shall be specially allocated to such Member in an amount
        and manner sufficient to eliminate a deficit in its Capital Account created by such adjustments, allocations or distributions as quickly as possible. This Article 5.f.ii. is intended to constitute a "qualified income offset" within the meaning of
        Treasury Regulation Section 1.704-1(d)(3).

    (3) If, and to
        the extent that, any Member is deemed to recognize income as a result of any transaction between such Member and the Company pursuant to Sections 1272-1274, Section 7872, Section 483 or Section 482 of the Internal Revenue Code (hereafter referred
        to as "the Code"), or any similar provision now or hereafter in effect, any corresponding resulting loss or deduction of the Company shall be allocated to the Member who was charged with such income.

    (4) If any
        Member's Capital Account has a deficit balance resulting in whole or in part from allocations of loss or deduction attributable to nonrecourse debt which is secured by Company property, which deficit balance exceeds such Member's share of minimum
        gain (as defined below), then income and gain shall first be allocated to such Member in an amount equal to such excess. For purposes of this Article 5. f. iv, "minimum gain" means the excess of the outstanding principal balance of nonrecourse debt
        which is secured by Company property over the Company's adjusted tax basis of such property. This Article 5.f.iv is intended to comply with the requirements of Treasury Regulation Section 1.704-1(b)(4)(iv), and is to be interpreted, if possible, to
        comply with the requirements of such regulation. The Manager shall have complete discretion to amend the provisions of this Agreement if such amendment would not have a material adverse effect on the Members and if, in the opinion of counsel, such
        amendment is advisable to reflect or comply with the requirements of Treasury Regulation Section 1.704-1(b)(4)(iv).

    (5) To the extent
        of any recapture income resulting from the sale or other taxable disposition of Company assets, the amount of any gain from such disposition allocated to (or recognized by) a Member (or its successor in interest) for federal income tax purposes
        pursuant to the above provisions shall be deemed to be recapture income to the extent such Member has been allocated or has claimed any deduction directly or indirectly giving rise to the treatment of such gain as recapture income.

    (6) All items of
        income, gain, loss, deduction, credit and basis allocation recognized by the Company for federal income tax purposes and allocated to the Members in accordance with the provisions of this Agreement shall be determined without regard to any election
        under Section 754 of the Code which may be made by the Company; provided, however, such allocations, once made, shall be adjusted as necessary or appropriate to take into account those adjustments permitted by Sections 734 and 743 of the Code and,
        where appropriate, to provide only Members recognizing gain on Company distributions covered by Section 734 of the Code with the federal income tax benefits attributable to the increased basis in Company property resulting from any election under
        Section 754 of the Code.

    (7) Any item of
        loss, deduction or Nondeductible Expenditure that is attributable to a Member Nonrecourse Debt shall be allocated to the Member that bears the economic risk of loss for such debt. If more than one Member bears the economic risk of loss for a Member
        Nonrecourse Debt, any such item attributable to such debt shall be allocated among such Members in accordance with the ratios in which the Members share the economic risk of loss for such debt. The determination of the items of Company loss,
        deduction and nondeductible expenditure that are attributable to a Member Nonrecourse Debt shall be made in accordance with Regulations Section 1.704-2(i)(2).

    (f) A Member's
        allocable share of the Company's items of income, gain, deduction and loss for tax purposes shall be determined under the foregoing provisions except as follows:

    (1) Contributed
          Property. Income, gain, loss and deduction, as computed for the purpose of determining taxable income, with respect to any property contributed to the capital of the Company shall, solely for tax purposes, be allocated among the Members so as
        to take account of any variation between the adjusted basis of such property to the Company for Federal income tax purposes and its initial Gross Asset Value in accordance with Code Section 704(c) and the Regulations thereunder.

    (2) Other
          Property with Gross Asset Value Different from Tax Basis. In the event that the Gross Asset Value of any Company asset is adjusted, subsequent allocations of income, gain, loss and deduction with respect to such asset, as computed for the
        purpose of determining taxable income, shall take account of any variation between the adjusted basis of such asset for Federal income tax purposes and its Gross Asset Value in the manner provided in Regulations Section 1.704-1(b)(4)(i).

    (3) Tax
          Elections; Effects on Capital Accounts. Any elections or other decisions relating to the allocations addressed by this Section shall be made in a manner that reasonably reflects the purposes and intentions of this Agreement. Allocations made
        pursuant to this Article are solely for purposes of Federal, state and local taxes and shall not affect, or be taken into account in computing, any Member's Capital Account, share of Profits and Losses, or distributions pursuant to any provision of
        this Agreement.

    (4) Compliance
          with Code and Regulations. The provisions of this Agreement that relate to the allocations for Federal income tax purposes of items of Company income (including Exempt Income), gain, loss, deduction and Nondeductible Expenditure (including
        the allocation of such items with respect to property having a Gross Asset Value different from adjusted Federal income tax basis), that relate to the determination and maintenance of Capital Accounts, and that relate to the distribution of Company
        property upon the liquidation of the Company or a Member's interest therein, are intended to comply with Regulations Section 1.704-1(b) (to the extent not superseded by Regulations Section 1.704-2) and Regulations Section 1.704-2, and with Code
        Section 704(c) and the Regulations promulgated thereunder shall be interpreted and applied in a manner consistent with such statutory and regulatory provisions, which statutory and regulatory provisions are expressly incorporated into and made a
        part of this Agreement. Should such statutory and regulatory provisions be amended, to the extent that such amendments are applicable to this Agreement, the affected provisions of this Agreement shall be interpreted and applied in accordance with
        such amended provisions.

    (5) Allocation
          in Event of Transfer. If interest(s) in the Company are transferred, in accordance with the restrictions of this Agreement, there shall be allocated to each Member who held the transferred interest(s) during the fiscal year of transfer the
        product of (a) the Company's Profits or Losses allocable to such transferred interest(s) for such fiscal year and (b) a fraction, the numerator of which is the number of days the Member has held the interest(s) and the denominator of which is the
        total number of days in such fiscal year; provided however, that the Manager may, in its reasonable discretion, allocate such Profits or Losses by closing the books of the Company immediately after the transfer of such interest(s). Such allocation
        shall be made without regard to the date, amount or recipient of any distributions that may have been made with respect to such transferred interest(s).

    
      	
              (6)

            	
              Section 704 Consistency. It is intended that the allocations prescribed above constitute allocations for federal income tax purposes that are
                consistent with Section 704 of the Code and comply with any limitations or restrictions therein, to the extent reasonably possible without causing individual percentage interests ("Interests") to lack uniform characteristics for federal
                income tax purposes. If uniformity of the Interests cannot be preserved by application of the foregoing rules, then the Manager shall have sole discretion to (i) adopt such conventions as the Manager deems appropriate in determining the
                amount of depreciation and cost recovery deductions; (ii) make special allocations of income or deduction; and (iii) amend the provisions of this Agreement as appropriate (a) to reflect the proposal or promulgation of Treasury Regulations
                under Section 704(c) of the Code, or (b) otherwise to preserve the uniformity of Interests issued or sold from time to time; provided, however, that the Manager may adopt such conventions, make such allocations and amend this Agreement as
                provided in this Article only if they would not have a material adverse effect on the  Members and if such allocations are consistent with, and supportable under, the principles of Section 704 of the Code.

            

    

    (g) Distributions:

    (1) Preferred
          Return. Equity Investors shall be entitled to distributions equal to seven percent (7%) per annum on their Unreturned Capital Contributions as a preferred return (the “Preferred Return” as defined above). Provided the Manager determines in
        its sole discretion that the Company has sufficient cash reserves to justify a distribution, the Preferred Return shall be distributed quarterly to the Equity Investors (such distribution may be a partial distribution based upon the Manager’s
        determination).

    (2) Irrespective
        of the above, the Manager may defer and accrue any portion of the Preferred Return (including without limitation the entire Preferred Return) until such time as it determines in its sole discretion that such accrual (including necessary cash
        reserves) is no longer necessary for the operation of the Company or prudently kept as cash reserves of the Company until the Company either sells, liquidates or refinances the Property (the “Accrued Return”).  The Accrued Return does not accrue
        interest.

    4.2 The Manager
        shall determine the amount available for distributions of Available Cash Flow From Operations (as defined above), with respect to any period, being the total cash received by the Company from operations, after payment of all expenses and
        obligations of the Company for such period, including any fees payable to the Manager or its affiliates and payments on loans to the Company from a Member, and following the creation of such reserves as the Manager in its sole discretion may
        establish.

    4.3 Reserves may
        be maintained for a period to be determined by the Manager in its sole discretion, and, when no longer deemed by the Manager to be necessary, shall be distributed to the Equity Investors for the payment of
        their then owing Preferred Return or their Accrued Return and thereafter to all of the Members based upon their Percentage Interests.

    4.4 Any
        distributions to Members from cash available from operations in excess of the full payment of Preferred Return or Accrued Return shall be treated as a return of invested Capital, even if paid from profits.

    4.5 Distributions
        of Available Proceeds (that is, the net cash received by the Company from time to time from the proceeds of any financing or refinancing, any sale, lease, exchange or other disposition of any Company asset or condemnation or expropriation award or
        insurance claim (unless all proceeds are used to repair or restore the Company assets), or sale of the Project after payment of the costs of the transaction giving rise to the Available Proceeds, payment of such outstanding debts, expenses and
        obligations as are required to be paid in connection therewith and the creation of such reserves as the Manager in its sole discretion may establish), will be allocated in the following order:  (a) First, 100% of such proceeds shall be distributed
        to the Equity Investors until they have received distributions equal to their total Capital Contributions, (b) Second, 100% to the Equity Investors until they have received distributions equal to the Preferred Return then owing or Accrued Return
        due, and (c) Third, to all of the Members, allocated among them based upon their Percentage Interests.  The Manager shall have the right in its sole and absolute discretion, to refinance the Property or the Project for the purpose of ascertaining
        Available Proceeds to pay the Accrued Return to the Preferred Investors and/or make other distributions.

    ARTICLE V: MANAGEMENT AND MEMBER DUTIES

    
      	
              5.1

            	
              Rights and Duties of the Manager.

            

    

    5.1.1 Manager. 
        The ordinary and usual decisions concerning the business affairs of the Company shall be made by the Manager.  The Manager shall have all of the powers to manage and operate the Company that are not expressly reserved for the Members under the Act
        or in this Agreement. Except as otherwise stated in this Agreement the Manager with the consent of a Majority in Interest of the Members shall also have all rights and powers to the  to do the following:

    a. The Manager with the consent of a Majority in Interest of the Members shall have the right to sell the Property and the Project.

    b. The Manager
        shall have the right  with the consent of a Majority to refinance the Property and the Project at any time.

    5.1.2 The initial
        Manager of the Company shall consist of BAA Investment Group, LLC (referred to in the singular “Manager” for convenience) and shall remain the Manager of the Company until (i) its resignation, (ii) its
        removal by a Majority in Interest, subject to the provisions of Section 8 below, or (iii) its removal for Cause by a vote of a Majority of Membership Interests. The Manager shall be entitled to charge the Company the fees and reasonable market rate
        management fees for managing the Property and the Project as set forth below. Each individual comprising the Manager may also invest as a Member on the same terms as other investors.

    5.1.3 Term of
          Manager.  Except as otherwise stated in this Operating Agreement, no Manager shall have any contractual right to such position.  A Manager shall serve until the earliest of:

    (1) The Resignation of such Manager;

    	

          	(2)	
            Removal of the Manager with or without Cause  by Majority in Interest of the Members;

          

    	

          	(3)	
            Full liquidation of the Company and termination or surrender of its legal charter; or

          

    	

          	(4)	
            In the case of a Manager who is an individual, the death, bankruptcy or legal incapacity of such individual.

          

    5.1.4 No
          Authority of a Member to Bind the Company.  Only the Manager and agents of the Company authorized by the Manager shall have the authority to bind the Company.  No Member may or shall take any action to bind the Company, unless that Member is
        identified as the Manager or otherwise authorized as an agent of the Company, in writing. Each Member shall indemnify the Company, the Manager, and the other Members, for any costs or damages incurred by any unauthorized action of such Member
        attempting to represent the Company or the Property or Project.  Subject to the restrictions specified in this Agreement, the Manager has the power, on behalf of the Company, to do all things necessary or convenient to carry out the business and
        affairs of the Company.

    5.1.5 Actions
          of the Manager.  The Manager has the power to bind the Company as provided in this Article V.  If there is more than one person acting as the Manager, then any difference arising as to any matter within the authority of the Manager shall be
        decided by a method which they have agreed upon, or if none or inapplicable, then by a majority of the Managers, or if a deadlock, then those comprising the Manager shall  appoint a special Manager to break any deadlock. If those comprising the
        Manager cannot resolve any disagreement, they may submit any unresolved disagreements to a vote of the Members, and a vote of a Majority in Interest of the Members in favor of a particular Manager’s proposal shall resolve the disagreement in
        accordance with such Manager’s proposal. No act of a Manager in contravention of such determination shall bind the Company to Persons having knowledge of such determination. Notwithstanding such determination, the act of a Manager for the purpose
        of apparently carrying on the usual business or affairs of the Company, including the exercise of the authority indicated in this Article V, shall bind the Company, and no person dealing with the Company shall have any obligation to inquire into
        the power or authority of the Manager acting on behalf of the Company.  If there is only one Manager such Manager shall have the sole authority to bind the Company in its sole and absolute discretion.

    5.1.6 Compensation
          of the Manager.  As the Manager shall be managing the Project and the Company for the benefit of the Membership the Manager shall have the right to charge a market rate management fee for management of the Company (as further set forth below)
        and shall be reimbursed all reasonable expenses incurred in managing the Company.  Irrespective of the above, after the acquisition of the Property there will be significant management of the Property and the Project by the Manager, and it shall
        manage the ongoing management, improvement, and operation of the Property and the Project.  The Manager shall receive a fee of six percent (6%) of the gross collected revenue of the Project for Company management, asset management, and property
        management (the “Management Fee”).  The Manager may engage a property management firm and direct the Company to pay that firm up to four percent (4%) for the property management, and the Manager intends to
        initially engage Bay Apartments Advisors, Inc., an affiliate of Joel Kelly, for such 4% fee. Any payment to an outside management firm will reduce the Management Fee payable to the Manager.   Upon the acquisition of the Property, the Manager shall
        be paid an acquisition fee of one and a quarter percent (1.25%) of the entire purchase price of the Property from the investors’ funds and may also receive a portion of brokerage commissions paid by the Property seller as a representative of the
        Company in the purchase of the Property. The Manager shall also be entitled to receive commissions individually based upon its representation of the Company in the sale of the Property, so long as such amount plus any amount paid to third-party
        brokers is no more a total of 3% of the sales price of the Property, so long as the total sales compensation is commercially reasonable.  Such fees and commissions shall be paid to the Manager in its separate and individual capacity and the Company
        is not entitled to receive or participate in any share of same.  The Manager will be reimbursed for legal, appraisal, accounting and any other out of pocket expenses incurred in the acquisition of the Property, obtaining the acquisition financing,
        formation and documentation of the Company, preparation of the documents related to the formation, financing, funding and organization of the Company, including, but not limited to the Operating Agreement, the Subscription Agreement, the business
        plan, the Property documents and pro forma numbers provided to the investors, escrow fees, reports, surveys and many other Property acquisition and Company formation related expenses.

    5.1.7 Manager’s
          Duty of Care.  The duty of care in the discharge of a Manager’s duties to the Company and the other Members is limited to refraining from engaging in intentional misconduct or a knowing violation of law.  The Manager is not liable to the
        Company or the Members for actions or omissions taken in good faith within the scope of its authority, unless the acts or omissions constitute fraud, bad faith, gross negligence or willful misconduct. In discharging its duties, a Manager shall be
        fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements by any of its other Members, or agents, or by any other person, as to matters a Manager reasonably believes are
        within such other person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Company, including information, opinions, reports or statements as to the value and amount of the assets,
        liabilities, profits or losses of the Company or any other facts pertinent to the existence and amount of assets from which distributions to members might properly be paid.  The Company and its Members shall indemnify, defend and hold harmless the
        Manager from any claim against the Manager for carrying out its lawful duties on behalf of the Company.

    5.1.8   Time
          Devoted to Company; Other Ventures.  The Manager and the individual members of the Manager shall devote so much time to the business of the Company as in their judgment the conduct of the Company’s business reasonably requires.  The Manager
        and the individual members of the Manager, provided the following activities do not materially interfere with the performance of  their duties, may engage in business ventures and activities of any nature and description independently or with
        others, whether or not in competition with the purpose, investments and/or business of the Company and neither the Company nor any of the Members shall have any rights in and to such independent ventures and activities or the income or profits
        derived from such activities of the Manager and the individual members of the Manager

    5.1.9 Indemnification
          and Limitation of Liability.  The Company shall indemnify and hold each Manager, and each of its members, and the Partnership Representative, harmless from any loss or damage (including without limitation environmental indemnification and any
        other third party or Member claims), including reasonable attorneys’ fees actually and reasonably incurred by it, by reason of any act performed by it on behalf of the Company or in furtherance of the Company’s interests.  The foregoing indemnity
        shall extend only to acts or omissions performed or omitted by such Manager, its members, or Partnership Representative which does not constitute fraud, bad faith, gross negligence, willful misconduct, or breach of fiduciary duty on the part of
        such Manager, member, or Partnership Representative. A Member shall not be bound by, or be personally liable for, the expenses, liabilities or obligations of the Company except as otherwise provided in the Act or this Agreement.

    5.1.10 Political
          Contributions.  The Manager is allowed to make contributions to political efforts that may, in its reasonable discretion, directly affect the operation and/or the valuation of the Property and the Project.

    

    

    
      	
              5.2

            	
              All assets of the Company, whether real or personal, shall be held in the name of the Company.

            

    

    
      	
              5.3

            	
              All funds of the Company shall be deposited in one or more accounts with one or more recognized financial institutions in the name of the Company, at
                such locations as shall be determined by the Manager.  The withdrawal from such accounts shall require the signature of Manager or such person as the Manager may so designate.  If none is so designated the Manager shall be so designated
                pursuant to this Agreement.

            

    

    
      	
              5.4

            	
              Prohibited Transactions.   Notwithstanding anything to the contrary contained in this Agreement, during the time MacKenzie is a Member of the
                Company, neither the Company, nor the Manager, nor any other Member of the Company, shall take any of the following actions:

            

    

    5.4.1 Entering
        into any lease or permitting any sublease that provides for rent based in whole or in part on the income or profits of any person, excluding for this purpose a lease that provides for rent based in whole or in part on a fixed percentage or
        percentages of gross receipts or gross sales of any person without reduction for any sublessor costs;

    5.4.2 Leasing
        personal property, excluding for this purpose a lease of personal property that is entered into in connection with a lease of real property where the rent attributable to the personal property is less than 15% of the total rent provided for under
        the lease, determined as set forth in Section 856(d)(1) of the Code;

    5.4.3 Acquiring or
        holding debt unless (a) the amount of interest income received or accrued by the Company under such loan does not, directly or indirectly, depend in whole or in part on the income or profits of any person, and (b) the debt is fully secured by
        mortgages on real property or on interests in real property;

    5.4.4 Acquiring or
        holding more than 10% of the outstanding voting securities of any one issuer other than a corporation that has properly elected to be a “taxable REIT subsidiary” of MacKenzie;

    5.4.5 Acquiring or
        holding more than 10% of the total value of the outstanding securities (debt or equity) of any one issuer;

    5.4.6 Making an
        election or taking any action that would cause the Company to be treated as (i) an entity that is not classified as a partnership for federal income tax purposes or (ii) a publicly traded partnership as defined in Section 7704 of the Code;

    5.4.7 Entering
        into any agreement where the Company receives amounts, directly or indirectly, for rendering services to the tenants of the properties that are owned, directly or indirectly, by the Company other than (i) amounts received for services that are
        customarily furnished or rendered in connection with the rental of real property of a similar class in the geographic areas in which the properties are located where such services are either provided by (a) an Independent Contractor (as defined in
        Section 856(d)(3) of the Code) who is adequately compensated for such services and from which the Company does not, directly or indirectly, derive revenue or (b) a taxable REIT subsidiary of MacKenzie (as defined in Section 856(1) of the Code) who
        is adequately compensated for such services or (ii) amounts received for services that are customarily furnished or rendered in connection with the rental of space for occupancy only (as opposed to being rendered primarily for the convenience of
        the Company’s tenants);

    5.4.8 Holding cash
        of the Company for operations or distribution in any manner other than a traditional bank checking or savings account; or

    5.4.9 Entering
        into any agreement where income or gain, as applicable, received or accrued by the Company under such agreement, directly or indirectly, (a) does not qualify as “rents from real property” within the meaning of Section 856 of the Code, (b) does not
        qualify as “interest on obligations secured by mortgages on real property or on interests in real property” within the meaning of Section 856 of the Code or (c) constitutes income from a sale of “inventory” or “stock in trade” of the Company within
        the meaning of Section 1221(a)(l) of the Code other than a sale that would qualify under the Section 857(b)(6)(C) “safe harbor” with respect to MacKenzie.

    ARTICLE VI:  ACCOUNTS AND RECORDS

    
      	
              6.1

            	
              Complete books of account of the Company’s business, in which each Company transaction shall be fully and accurately entered, shall be kept at the
                Company’s principal executive office and shall be open to inspection and copying by each Member, or the Member authorized representatives, on reasonable Notice during normal business hours.  In the case of a Member, the costs of such
                inspection and copying shall be borne by the Member.

            

    

    
      	
              6.2

            	
              Financial books and records of the Company shall be kept on the accrual method of accounting, which shall be the method of accounting followed by the
                Company for federal income tax purposes.  A balance sheet and income statement of the Company shall be prepared promptly following the close of each fiscal year in a manner appropriate to and adequate for the Company’s business and for
                carrying out the provisions of this Agreement.  The fiscal year of the Company shall be January 1 through December 31.

            

    

    
      	
              6.3

            	
              At all times during the term of existence of the Company, and beyond that term if a Majority in Interest deem it necessary, the Manager and/or the
                Members shall keep or cause to be kept the books of account referred to in Section 6.2, and the following:

            

    

    (a) A current list
        of the full name and last known business or residence address of each Member, together with the Capital Contribution and the share in Profits and Losses of each Member;

    (b) A copy of the
        Articles of Organization, as amended;

    (c) Copies of the
        Company’s federal, state, and local income tax or information returns and reports, if any, for the six most recent taxable years;

    (d) Executed
        counterparts of this Agreement, as amended;

    (e) Any powers of
        attorney under which the Articles of Organization or any amendments thereto were executed;

    (f) Financial
        statements of the Company for the six most recent fiscal years; and

    (g) The Books and
        Records of the Company as they relate to the Company’s internal affairs for the current and past four fiscal years.

    (h) If the Manager
        deems that any of the foregoing items shall be kept beyond the term of existence of the Company, the repository of said items shall be as designated by the Manager.

    
      	
              6.4

            	
              Each Member shall receive annual financial reports which have been reviewed by an independent accounting firm.  Such reports shall be made in
                accordance with United States generally accepted accounting principles consistently applied on an accrual accounting basis. Within 90 days after the end of each taxable year, the Company shall send to each of the Members all information
                necessary for the Members to complete their federal and state income tax or information returns, and a copy of the Company’s federal, state, and local income tax or information returns for such year.

            

    

    
      	
              6.5

            	
              Quarterly Reports for MacKenzie.  MacKenzie shall be entitled to receive, and the Company and the Manager agrees to furnish to MacKenzie, any
                information that is available to the Company or the Manager or its agents, within five (5) business days of a written request to the Company by MacKenzie for such information, if such information is reasonably necessary for any MacKenzie
                REIT Entity to determine its compliance with Sections 856-860 of the Code and the Treasury Regulations promulgated thereunder.  The Company will also provide to MacKenzie, on a quarterly basis within fifteen (15) days of the end of each
                quarter, certain financial information and reports of the Company as may be produced in the regular course for the other Members.  Furthermore, MacKenzie may need to consolidate the financial statements of the Company into its own, or
                provide summary financial information with its financial reporting, and if such requirements necessitate audited financial statements then the Manager shall cooperate with MacKenzie’s auditors to complete such audits and/or provide the
                necessary financial information.

            

    

    
      	
              6.6

            	
              DESIGNATION OF PARTNERSHIP REPRESENTATIVE

            

    

    6.6.1 The
        partnership representative of the Company pursuant to Internal Revenue Code Section 6223 (as amended by the Revised Partnership Audit Procedures) (the “Partnership Representative”) shall be the Manager (or any other person or entity designated in
        the sole discretion of the Manager and who so qualifies under the Revised Partnership Audit Procedures).

    6.6.2 The
        Partnership Representative shall keep each Member informed of administrative and judicial proceedings for the adjustment at the Company level of any item required to be taken into account by a Member for income tax purposes (such administrative and
        judicial proceedings referred to hereinafter as “judicial review”)

    6.6.3 Any Member
        who enters into a settlement agreement with respect to any Membership item shall notify the Partnership Representative, as applicable, of such settlement agreement and its terms within thirty (30) days after the date of settlement.  Each Member
        shall provide the Partnership Representative any information reasonably requested in writing by the Partnership Representative and fully cooperate in any tax audit or similar proceeding of the Partnership so that the Partnership Representative can
        (i) implement the provisions set forth in Section 4.1  (including by making any election permitted thereunder) or (ii) otherwise comply with the Code and Treasury Regulations.

    6.6.4 The Company
        shall indemnify and reimburse the Partnership Representative for all expenses, including legal and accounting fees, claims, liabilities, losses and damages incurred in connection with any judicial review, tax audit or similar proceeding with
        respect to the tax liability of the Members.  Neither the Managers nor any Affiliate nor any other Person shall have any obligation to provide funds for such purpose.  The taking of any action and the incurring of any expense by the Partnership
        Representative in connection with any such proceeding, except to the extent required by law, are matters that are in the sole discretion of the Partnership Representative and the provisions on limitations of liability of the Managers and
        indemnification set forth in Section 5.1.9 shall be fully applicable to the Partnership Representative, as applicable, in its capacity as such.

    
      	
              6.7

            	
              AUTHORITY OF PARTNERSHIP REPRESENTATIVE.  The Partnership Representative shall have all the rights, authority and power of a “partnership
                representative” to the extent provided in the Code and the Treasury Regulations

            

    

    6.7.1 The
        Partnership Representative shall have all rights, power and authority for the making of any election and the conduct of, and the decision to initiate (where applicable), any judicial review involving the Company under the Revised Partnership Audit
        Procedures, including (i) an Internal Revenue Service examination of the Company, (ii) a request for administrative adjustment filed by the Company, (iii) the filing of a petition for readjustment (including choice of judicial forum) with respect
        to a final notice of partnership adjustment, (iv) the appeal of an adverse judicial decision, (v) the compromise, settlement or dismissal of any such proceedings on such terms as the Partnership Representative, in consultation with the Company’s
        tax advisors, deems appropriate, taking into account the collective interests of the Member and former Members affected thereby, (vi) if the Company is eligible, electing out of the Revised Partnership Audit Procedures under Code Section 6221(b),
        and (vii) the making of an election under Code Section 6226(a).  If the consent of agreement of the Members is at any time required in order to make effective any of the foregoing elections, each person or entity that is or has been a Member does
        hereby give its consent to the making of such election for the duration of the term of the Company.  Members shall take such actions requested by the Partnership Representative consistent with any such elections made and actions requested by the
        Partnership Representative, including by filing amended tax returns and paying any tax due in accordance with Code Section 6225(c)(2), as amended by the Revised Partnership Audit Procedures.  Each Member, on the Member’s tax return, shall treat
        each item of income, gain, loss, deduction, or credit attributable to the Company in a manner which is consistent with the treatment of such income, gain, loss, deduction, or credit on the Company’s tax return.

    6.7.2 The Members
        further agree that if the Company receives a final partnership adjustment, to the extent permissible under applicable law, the Partnership Representative shall cause the Company to elect under Code Section 6226, as amended by the Revised
        Partnership Audit Procedures for any adjustments to the Partners’ distributive share of income, gain, loss, deduction or credit to be “pushed-out” to the Partners for the reviewed year through the issuance of adjusted Schedule K-1s.  The Partners
        covenant to take into account and report to the Internal Revenue Service any adjustment to their items for the reviewed year as notified to them by the Company in a statement furnished to them pursuant to Code Section 6226(a), as amended by the
        Revised Partnership Audit Procedures, in the manner provided in Code Section 6226(b), as amended by the Revised Partnership Audit Procedures, whether or not any of the Members own any Membership Interest in the year of the Company’s statement.  Any
        Member which fails to report its share of such adjustments on its tax return for its taxable year including the date of the Company’s statement as described immediately above shall indemnify and hold harmless the Company against any tax, interest
        and penalties collected by the Internal Revenue Service from the Company as a result of such Partner’s failure.

    6.7.3 To the
        extent that the Partnership Representative does not make the election under Code Section 6226, as amended by the Revised Partnership Audit Procedures, with respect to a material imputed underpayment amount (determined in the Partnership
        Representative’s sole discretion) and the Company pays any imputed adjustment amount (including tax, any penalties, and interest) under Code Section 6225, as amended by the Revised Partnership Audit Procedures, the Company shall allocate such
        amount among the Company in a manner it determines to be fair and equitable.  To the extent that a portion of the tax liabilities imposed under Code Section 6225, as amended by the Revised Partnership Audit Procedures, for a prior year relates to a
        former Member, the Partnership Representative may require a former Member to indemnify the Company for its allocable portion of such liability.  The Partnership Representative shall seek payment from each Member (including any former Member) for
        its allocable amount, and each such Member hereby agrees to pay such amount to the Company (such amount shall not be treated as a Capital Contribution).  Any such amount not paid by a Member (or former Member) at the time requested by the
        Partnership Representative shall accrue interest at the “Prime Rate” (as set forth from time to time in the “Interest Rates” section of the Wall Street Journal or any successor publication thereto) until paid, and such Member (or former Member)
        shall also be liable to the Company for any damages resulting from a delay in making such payment beyond the date such payment is requested by the Partnership Representative.  Each Member acknowledges that, notwithstanding the Transfer of all or
        any portion of its Membership Interest in the Company, pursuant to this Section 6.6.3 it may remain liable for tax liabilities with respect to its allocable share of income and gain of the Company for the Company’s taxable years (or portions
        thereof) prior to such Transfer or redemption, as applicable, under Code Section 6225, as amended by the Revised Partnership Audit Procedures.  Without reduction in a Member’s (or former Member’s) obligation under the foregoing, any imputed
        adjustment amount paid by the Company that is attributable to a Member (or former Member), and that is not paid by such Member shall be treated as a distribution to such Member (or former Member).  Expense items attributable to any imputed
        adjustment amount of the Company shall be specially allocated to each Member in proportion to which such Partner bears the cost of such imputed adjustment amount.

    6.7.4 The
        provisions of Sections 6.5 and 6.6 shall survive indefinitely, and the foregoing covenants and indemnification obligations of each Member shall not terminate, without regard to any Transfer of a Member’s Interest, withdrawal as a Member, or
        liquidation, dissolution or termination of the Company.

    6.8 Elections.  The Managers may make any tax elections for the Company allowed under the Code or the tax laws of any state or other jurisdiction having taxing jurisdiction over the Company.

    ARTICLE VII:MEMBERS AND VOTING.

    
      	
              7.1

            	
              There shall be only one class of membership and except as otherwise set forth in this Agreement, no Member shall have any rights or preferences in
                addition to or different from those possessed by any other Member.  Except as is otherwise provided herein with respect to decisions requiring unanimity or supermajority of the Members, any differences arising among the  Managers as to
                ordinary matters connected with the Company’s business shall be decided by a  a Majority in Interest of the Members, each Member having the number of Votes equal to that Member’s Membership Units.  A Member’s Vote shall be personal to the
                Member and shall not be divisible or assignable except as provided in Section 7.3. Accept as otherwise set forth below or elsewhere in this Agreement the Manager shall have the sole and absolute authority to make all decisions on for and on
                behalf of the Company.

            

    

    
      	
              7.2

            	
              Certain Actions Requiring the Agreement of the Manager and a Member Vote.  Notwithstanding anything to the contrary contained herein, the
                Manager does not have the authority to cause the Company to do the following activities without first obtaining a vote of a Majority in Interest of the Members.  A Vote of both the Manager and the Majority in Interest of   the Members is
                required in order to take any of the following actions:

            

    

    (i) The sale of
        the Property or the Project;

    (ii) The incurrence of additional debt (other than the initial loans that make up the First Indebtedness or any refinancing thereof) by the Company in excess of $1,000,000 in the aggregate; or

    (iii) the creation of any parent company, subsidiary company or other entity under common control with the Company;

    (iv) Filing a
        petition or consent to a petition seeking reorganization, arrangement, adjustment, winding-up, dissolution, composition, liquidation or other relief on behalf of the Company of its debts under any federal or state law relating to bankruptcy,
        insolvency, relief from debts or the protection of debtors;

    (v) Seeking or
        consenting to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for the Company or a substantial portion of its Property

    (vi) Making any
        assignment for the benefit of the Company’s creditors;

    (vii) Admitting in
        writing the Company’s inability to pay its debts generally as they become due;

    (viii) The guaranty by the Company of any indebtedness of another;

    (ix) The
        compromise of the obligation of a Member to make a Capital Contribution; or

    (x) Taking any
        action in furtherance of any of the foregoing.

    7.3 The record date for determining the Members entitled to Notice of any Meeting, to Vote, to receive any distribution, or to exercise any right in respect of any other lawful action, shall be the date set by the Manager, provided that such
        record date shall not be more than 60, nor less than 10 days prior to the date of the Meeting, nor more than 60 days prior to any other action.

    In the absence of any action setting a record date the record date shall be determined in accordance with California Corporations Code section  17704.07(p).

    7.4 At all
        Meetings of Members, a Member may Vote in person or by Proxy.  Such proxy shall be filed with any Member before or at the time of the Meeting and may be filed by facsimile transmission to a Member at the principal executive office of the Company or
        such other address as may be given by the Manager to the Members for such purposes.

    7.5 Meetings. The
        Members are not required to hold formal meetings.  Decisions requiring concurrence of a Majority in Interest of the Members or other Vote of the Members, may be reached through one or more informal consultations followed by written confirmation
        signed by Members having the requisite number of Membership Interests to act pursuant to the terms and conditions of this Agreement, provided that all Members are consulted (although all Members need not be present during a particular
        consultation).  If Members wish to hold a formal meeting (a “Meeting”) for any reason, the following procedures shall apply:

    (a) A Manager or
        fifty percent (50%) of the Percentage Interests of the Members may call a Meeting of the Members by giving Notice of the time and place of the Meeting at least thirty (30) days prior to the time of the holding of the Meeting.  The Notice need not
        specify the purpose of the Meeting, or the location if the Meeting is to be held at the principal executive office of the Company.

    (b) A Majority in
        Interest of the Members shall constitute a quorum for the transaction of business at any Meeting of the Members.

    (c) The
        transactions of the Members at any Meeting, however called or noticed, or wherever held, shall be as valid as though transacted at a Meeting duly held after call and notice if a quorum is present and if, either before or after the Meeting, each
        Member not present signs a written waiver of Notice, a consent to the holding of the Meeting, or an approval of the minutes of the Meeting.

    (d) Any action
        required or permitted to be taken by the Members under this Agreement may be taken without a Meeting if Members having the requisite number of Membership Interests to act pursuant to the terms and conditions of this Agreement consent in writing to
        such action.

    (e) Members may
        participate in the Meeting through the use of a conference telephone or similar communications equipment, provided that all Members participating in the Meeting can hear one another.

    (f) The Manager shall keep or cause to be kept with the books and records of the Company full and accurate minutes of all Meetings, Notices, and Waivers of Notices of Meetings, and all written consents in lieu of
        Meetings.

    ARTICLE VIII: TRANSFERS OF MEMBERSHIP INTERESTS

    
      	
              8.1

            	
              Except as otherwise expressly provided in this Agreement, a Member shall not Transfer any part of the Member’s Membership Interest in the Company,
                whether now owned or hereafter acquired, unless (1) the Manager approves the transferee’s admission to the Company as a Member upon such Transfer and (2) the Membership Interest to be transferred, when added to the total of all other
                Membership Interests transferred in the preceding 12 months, will not cause the termination of the Company under the Code and (3)  the Membership Interest to be transferred does not cause a transfer tax or property reassessment with respect
                to the Property or the Project.  No Manager shall be under any obligation whatsoever to approve the admission of a proposed transferee of a Member’s Membership Interest.  Any attempted Transfer of a Membership Interest without such approval
                shall be void and shall constitute the Withdrawal of a Member.  Any Transfer of a Membership Interest which does not result in a change in the beneficial ownership of such Membership Interest shall not be subject to the restrictions set
                forth in this Section 8.1, and in such case, notwithstanding anything in this Agreement to the contrary, the transferee of such Membership Interest shall automatically be admitted to the Company as a Member, subject only to such
                transferee’s executing a counterpart of this Agreement as a party hereto.  Notwithstanding the foregoing, any Transfer of a Membership Interest by Mackenzie shall be subject to the provisions of Section 8.14.

            

    

    
      	
              8.2

            	
              Notwithstanding any other provision of this Agreement to the contrary, a Member who is a natural person may Transfer all or any portion of his or her
                Membership Interest by devise to a family member (i.e., spouse, child, issue, niece or nephew, parent or sibling) (a “Family Member”); or to any revocable trust created for the benefit of the Member,
                or for any combination between or among the Member, the Member’s spouse, and the Member’s issue or any other Family Member; provided that the Member is a Trustee during their lifetime, retains a beneficial interest in the trust and the
                Member as Trustee or individually possesses all of the Voting Interest included in such Membership Interest.  Any such trust shall be subject to the provisions of this Agreement, including but not limited to the limitation upon transfer to
                third parties of a Membership Interest and the valuation of such a Membership Interest in the event of a Withdrawal.  A Transfer of a Member’s entire beneficial interest in such trust, or a failure to retain such Voting Interest, or except
                upon death the Member ceasing to be the sole Trustee shall be deemed a Transfer of a Membership Interest in contravention of this Agreement and hence a Triggering Event as defined in Section 8.5.

            

    

    
      	
              8.3

            	
              No Member may Encumber or permit or suffer any Encumbrance of all or any part of the Member’s Membership Interest in the Company unless such
                Encumbrance has been approved in writing by all the other Members.  Any Encumbrance of a Membership Interest without such approval shall be void.

            

    

    
      	
              8.4

            	
              Notwithstanding any other provisions of this Agreement:

            

    

    (a) If, in
        connection with the divorce or dissolution of the marriage of a Member, any court issues a decree or order that transfers, confirms, or awards a Membership Interest, or any portion thereof, to that Member’s spouse (an “Award”), then, notwithstanding that such transfer would constitute an unpermitted Transfer under this Agreement, that Member shall have the right to purchase from his or her former spouse the Membership Interest, or portion thereof,
        that was so transferred, and such former spouse shall sell the Membership Interest or portion thereof to that Member at the price determined in conformity with Section 8.10 of this Agreement.  If the Member has failed to consummate the purchase
        within 180 days after the date of the Award (the “Expiration Date”), the Company and the other Members shall have the option to purchase from the former spouse the Membership Interest or portion thereof
        pursuant to Section 8.9(a) and at a price determined in conformity with Section 8.10, provided that the Option Period shall commence on the later of (1) the day following the Expiration Date, or (2) the date of actual notice of the Award, and
        continue for 180 days thereafter.  For purposes of this Section and for purposes of this entire Agreement, the term “Option Period” shall mean the period during which an option to purchase a Member’s
        Membership Interest can be exercised.

    (b) If, by reason
        of the death of a spouse of a Member, any portion of a Membership Interest is transferred to a transferee other than (1) that Member or (2) the Member’s siblings, parents children or issue or (3) a trust created for the benefit of that Member (or
        for the benefit of that Member and any combination between or among the Member and the Member’s issue, parents,  spouse or children) in which the Member is a Trustee and the Member, as Trustee or individually possesses all of the Voting Interest
        included in that Membership Interest, then the Member shall have the right to purchase the Membership Interest or portion thereof from the estate or other successor of his or her deceased spouse or transferee of such deceased spouse, and the
        estate, successor, or transferee shall sell the Membership Interest or portion thereof at the price set forth in Section 8.10 of this Agreement.  If the Member has failed to consummate the purchase of the entire interest within 180 days after the
        date of death (the Expiration Date), the Company and the other Members shall have the option to purchase from the estate or from any other successor of the deceased spouse, the Membership Interest or portion thereof pursuant to Section 8.9 of this
        Agreement; provided that the Option Period shall commence on the later of (1) the day following the Expiration Date, or (2) the date of actual notice of the death, and shall continue for 180 days thereafter.

    
      	
              8.5

            	
              No Member shall participate in any Vote or decision in any matter pertaining to the disposition of that Member’s Membership Interest in the Company
                under this Agreement.

            

    

    
      	
              8.6

            	
              The Members acknowledge and agree that because of the unique business relationships between the Initial Members and because of the nature of the
                Company’s business, or the occurrence of a Transfer of a Membership Interest may, in the sole discretion of the Remaining Members, force the Remaining Members to purchase the Membership Interests of a Transferring Member and is thereby
                likely to create an economic hardship on the Remaining Members.  Accordingly, except as provided in Section 8.11 below, the following shall govern the rights of the Members after a Member provides notice of their intent to Transfer any
                Membership Interests (the “Transferring Member”):

            

    

    (a) If a Member
        attempts to Transfer any Membership Interests without the consent of the other Members, then the Company and/or the remaining Members shall have options to purchase the interests of the  Transferring Member (the “Repurchase
          Option”).  The Repurchase Option to purchase the interests of the Transferring Member shall be exercised in such a fashion that the Percentage Interests of the Remaining Members shall not change relative to each other, regardless of
        whether the Company or the Remaining Members are the exercising parties.  In any such instance, not more than 180 days after the Notice of Transfer, the date of the Triggering Event, or any other event that gives rise to the option, the Company or
        the Remaining Members (as is appropriate) shall give notice in writing to the Transferring Member (or his successor, if appropriate) of their intention to exercise the said option.  Upon delivery of said notice, the Members will proceed to value
        the interest of the Transferring Member in the manner set forth in Section 8.10.

    (b) If the Company
        and then the Remaining Members elect not to exercise their Repurchase Options to purchase the interests of the Transferring Member pursuant to the terms and conditions set forth above in Section 8.7, then by a Majority in Interest Vote of the
        Members, the Members can elect to either to liquidate the Company, or to approve the transferee of the Transferring Member’s Interest.  If the Remaining Members elect to approve the said transferee of the Transferring Member’s Interest, that
        transferee shall become a Member, provided, that the entire interest of the Transferring Member shall be transferred to a single person or entity and shall have a single Vote for all purposes.  If the Remaining Members elect to liquidate the
        Company, all business activities of the Company with the exception of the management and ownership of real property assets shall be brought to an orderly conclusion.  The Property and other assets shall be promptly listed for sale and shall be sold
        on an orderly basis.  The Company shall continue to manage the Property in the manner that they were previously managed until such time as they are sold.  Upon sale of the Property, the remaining liabilities of the Company shall be paid and the
        balance of any proceeds of the sale, together with any other remaining assets shall be distributed to the Members or their representatives by first paying each Member the amount of his capital account and any Accrued Return, with the balance, if
        any, distributed to the Members in proportion to their Percentage Interests in the Company.  If, after paying the liabilities of the Company, the proceeds of the sale are insufficient to pay all Members the amounts of their capital accounts and
        Accrued Return, then any surplus shall be distributed to the Members in proportion to their Percentage Interest.

    
      	
              8.7

            	
              For purposes of establishing the price for the purchase of a Membership Interest in the Company (if the Company or the Members determine to do so)
                under any circumstances other than liquidation, the following procedures shall govern:

            

    

    (a) Within one
        hundred and twenty (120) days of (a) the receipt of a Notice of Withdrawal by the Company and the Remaining Members as contemplated by Section 8.1, (b) receipt of Notice of a Triggering Event pursuant to Section 8.5, (c) upon an Award as referred
        to in Section 8.6(a), or (d) upon the death of a spouse of a Member as referred to in Section 8.6, or (e) upon any other event, the consequence of which requires valuation of a Member’s Membership Interest incident to a voluntary Transfer or
        Involuntary Transfer, the Manager, shall determine, in good faith, a net fair market value (the “Fair Market Value”) of the Company.  In determining the Fair Market Value, no value shall be ascribed to
        goodwill, and all cash, receivables and liabilities shall be valued as stated on the books of the Company.  The net Fair Market Value of the Member’s Membership Interest shall take into consideration the Accrued Return and Unreturned Capital
        balance of such Member.  The value of the Membership Interest subject to transfer or sale shall be deemed to be 80% of the product of the Percentage Interest represented by such Membership Interest multiplied by such Fair Market Value, reduced by
        the deficit if any, in the capital account of the Member whose Membership Interest is subject to transfer or sale.  All Members agree that the “discount” of 20% is a fair estimate of deferred costs and expenses, including without limitation income
        tax consequences to the Remaining Members, transfer taxes, etc. that would ultimately be incurred were the assets of the Company to be liquidated.

    (b) In the event
        that within one hundred and twenty (120) days subsequent to the Transferring Member’s notice, the Manager fails to determine the Fair Market Value of the business of the Company, the Transferring Member or their representative shall appoint an
        appraiser and the Manager shall appoint a second appraiser to determine the Fair Market Value of the Company, which shall be valued in accordance with Section 8.10(a).  If the two appraisers so appointed are unable to agree on the Fair Market Value
        of the Company within thirty days, but the values so determined differ by not more than ten percent of the lower value, the two values shall be averaged with the result being conclusive and binding upon all Members or their representatives.  If the
        values so determined by the two appraisers differ by more than ten percent of the lower value, the two appraisers shall appoint a third appraiser.  The Fair Market Value shall be determined by disregarding the appraiser’s valuation that diverges
        the greatest from each of the other two appraisers’ valuations, and the arithmetic mean of the remaining two appraisers’ valuations shall be the Fair Market Value.  All fees and expenses of each appraiser shall be an expense of the Transferring
        Member.

    
      	
              8.8

            	
               In the event that the Company elects to purchase the Transferring Member’s Interest pursuant to Sections 8.6 and 8.7, the purchase price shall be
                payable over a period of five years in equal monthly installments of principal and interest, and the unpaid balance shall accrue interest at the simple annual rate of 5.0% per annum.  The first payment shall be due and payable thirty days
                subsequent to the date on which the Member or his Successor in Interest irrevocably transfers to the Company all of the interests in the Company being purchased.  The Company shall not be required to provide any security for the payment of
                the purchase price.

            

    

    
      	
              8.9

            	
              Except as otherwise expressly provided herein, a prospective transferee (other than an existing Member) of a Membership Interest may be admitted as a
                Member with respect to such Membership Interest (Substituted Member) only  upon such prospective transferee’s executing a counterpart of this Agreement as a party hereto.  Any prospective transferee of a Membership Interest shall be deemed
                an Assignee, and, therefore, the owner of only an Economic Interest until such prospective transferee has been admitted as a Substituted Member.

            

    

    
      	
              8.10

            	
              Any person admitted to the Company as a Substituted Member shall be subject to all provisions of this Agreement.

            

    

    
      	
              8.11

            	
              Repurchase of Membership Units Based Upon the Replacement of Manager or Disagreement of Developer Investors with a Vote of a Majority Interest of the
                Members.

            

    

    (a) Notwithstanding anything to the contrary in this Agreement, a Majority in Interest may replace the Manager at any time, with a new Manager (including an affiliate of a Member) by delivering a 15-day notice to the current Manager.  The
        outgoing Manager shall cooperate with the incoming Manager to provide a smooth transition of operations.  If the Members exercise the right provided in this Section 8.11 to replace the Manager, the outgoing Manager may, at its election, require the
        Company to purchase all (but not less than all) of its Developer Investor Units for the consideration and on the terms and conditions set forth as follows.  After receipt of the notice required by this Section 8.11, the Manager will respond within
        10 days with a value that it believes reasonably approximates the high end of the fair market value of the Property.  If the Majority in Interest of the Members believes that this price is not reasonable, the Members and the Manager shall attempt
        to agree on a value; if they cannot within 3 days, then both parties shall hire an appraiser to appraise the Property, to be completed within 15 days.  If the appraisals do not vary by more than 15%, then the Property value shall be the higher of
        the two appraisals.  If they do vary by more than 15%, then the Property value shall be the average of the two appraisals (the “Proposed Sale Price”).  The purchase price of the Developer Units (the “Purchase Price of the Developer Units”) shall be the greater of Three Million Dollars or the amount  that such Developer Units would have received (i) if the Company were liquidated at the time of the delivery of
        the notice hereunder and the Property had been sold for a purchase price of an amount equal to the Proposed Sale Price, net of reasonably estimated transaction costs (such as broker fees, title insurance premiums, and legal fees that would be
        incurred by the Company in connection with a sale of the Property), (ii) the proceeds of such sale are reduced by the aggregate state and local real estate transfer taxes that the Company would incur in connection with any such sale of the Property
        and the assets of the Company, (iii) such purchase price is then adjusted for standard proration amounts ordinarily taken into account in a sale of property similar to the Property in Oakland, California and the sale of the other assets of the
        Company and (iv) the proceeds of such sale and other assets of the Company had been used to repay all of the debts and obligations of the Company and then applied and distributed the balance in accordance with the provisions of Section 4.5. The
        Company and Mackenzie, jointly and severally, shall be responsible for the payment of the repurchase of the Developer Units pursuant to this Section 8.11.

    (b) If the Developer Investors in good faith disagree with any action taken by the Majority in Interest of the Members then the Developer Investors may provide written notice of such disagreement to the Company  if the Majority in Interest take
        such action then the Company and MacKenzie, jointly and severally, shall be required to repurchase the Developer Units from the Developer Investors for the Purchase Price of the Developer Units as set forth in Section 8.11(a) above.

    (c) Notwithstanding any other provision in this Agreement if MacKenzie intends to Transfer any of their Membership Interests or if they intend to wind up or dissolve, they must provide written notice to the Developer Investors of their intent to
        Transfer, wind up or dissolve.  The Developer Investors, in their sole and absolute discretion, shall have ten (10) days after receipt of such notice to exercise their rights pursuant to Sections 8.6 and 8.7 above or in the alternative exercise the
        option to have MacKenzie repurchase their Membership Interests pursuant for the Purchase Price of the Developer Units as set forth in Section 8.11(a) above.  Any Transfer of a Membership Interest in contravention of this Section shall be void.

    
      	
              8.12

            	
              The initial sale of Membership Interests in the Company to the Initial Members has not been qualified or registered under the securities laws of
                California, or of any state, or registered under the Securities Act of 1933, as amended, in reliance upon exemptions from the registration provisions of those laws.  No attempt has been made to qualify the offering and sale of Membership
                Interests to Members under the California Corporate Securities Law of 1968, as amended, also in reliance upon an exemption from the requirement that a permit for issuance of securities be procured. Notwithstanding any other provision of
                this Agreement, Membership Interests may not be Transferred or Encumbered unless registered or qualified under applicable state and federal securities law or unless, in the opinion of legal counsel satisfactory to the Company, such
                qualification or registration is not required.  The Member who desires to transfer a Membership Interest shall be responsible for all legal fees incurred in connection with said opinion.

            

    

    ARTICLE IX: DISSOLUTION AND WINDING UP

    
      	
              9.1

            	
              The Company shall be dissolved on the first to occur of the following events:

            

    

    (a) The expiration
        of the term of existence of the Company if any.

    (b) The
        determination by the Manager to dissolve the Company.

    (c) The sale or
        other disposition of substantially all of the Company assets.

    (d) Entry of a
        decree of judicial dissolution pursuant to California Corporations Code section 17707.03.

    
      	
              9.2

            	
              On the dissolution of the Company, the Company shall engage in no further business other than that necessary to wind up the business and affairs of the
                Company.  The Members who have not wrongfully dissolved the Company shall wind up the affairs of the Company.  The Persons winding up the affairs of the Company shall give written Notice of the commencement of winding up by mail to all
                known creditors and claimants against the Company whose addresses appear in the records of the Company.  After paying or adequately providing for the payment of all known debts of the Company including without limitation the First
                Indebtedness, and any other Additional Loan (except debts owing to Members and Contribution Loans) the remaining assets of the Company shall be distributed or applied in the following order of priority:

            

    

    (a) To pay the
        expenses of liquidation.

    (b) To repay the
        Contribution Loans and any other outstanding loans from Members.  If there are insufficient funds to pay such loans in full, each Member shall be repaid in the ratio that the Member’s respective loan, together with interest accrued and unpaid
        thereon, bears to the total of all such loans from Members, including all interest accrued and unpaid on those loans.  Such repayment shall first be credited to accrued and unpaid interest due and the remainder shall be credited to principal.

    (c) Among the
        Members in accordance with the provisions of Article IV.

    
      	
              9.3

            	
              Each Member shall look solely to the assets of the Company for the return of the Member’s investment (whether that investment consists of loans to the
                Company or one or more Capital Contributions or a combination of the two), and if the Company property remaining after the payment or discharge of the debts and liabilities of the Company is insufficient to return the investment of any
                Member, such Member shall have no recourse against the Manager or any other Members for indemnification, contribution, or reimbursement.

            

    

    ARTICLE X: DISPUTE RESOLUTION

    
      	
              10.1

            	
              Dispute Resolution; Court Jurisdiction; Arbitration; Equitable Remedies. Disputes which arise between the Parties or relating to this Agreement
                shall be resolved as follows:

            

    

    10.1.1 Arbitration.  Except as provided in Section 10.1.2, any claim, dispute or controversy of whatever nature arising out of or relating to this Agreement, including, without limitation, any action or claim based on
        tort, contract or statute (including any claims of breach) or concerning the interpretation, effect, termination, validity, performance or breach of this Agreement (each, a “Claim”) shall be resolved by final and binding arbitration before a single
        arbitrator (the “Arbitrator”) selected from and administered by JAMS, San Francisco, California (the “Administrator”), in accordance with its then existing arbitration rules or procedures regarding commercial or business disputes. The arbitration
        shall be held in San Francisco, California.

    (a) The Arbitrator
        shall, within 15 calendar days after the conclusion of the arbitration hearing, issue a written award and statement of decision describing the essential findings and conclusions on which the award is based, including the calculation of any damages
        awarded. The Arbitrator shall be authorized to award compensatory damages, but shall NOT be authorized (i) to award non-economic damages, such as for emotional distress, pain and suffering or loss of consortium, (ii) to award punitive damages or
        (iii) to reform, modify or materially change this Agreement or any other agreements contemplated hereunder; provided, however, that the damage limitations described in parts (i) and (ii) of this sentence shall not apply if such damages are
        statutorily imposed. The Arbitrator also shall be authorized to grant any temporary, preliminary or permanent equitable remedy or relief they deem just and equitable and within the scope of this Agreement, including, without limitation, an
        injunction or order for specific performance.

    (b) Each Party
        shall bear its own attorneys’ fees, costs and disbursements arising out of the arbitration and shall pay an equal share of the fees and costs of the Administrator and the Arbitrator; provided, however, that the Arbitrator shall be authorized to
        determine whether a Party is the prevailing Party, and, if so, to award to that prevailing Party reimbursement for its reasonable attorneys’ fees, costs and disbursements (including, for example, expert witness fees and expenses, photocopy charges,
        travel expenses, etc.) or the fees and costs of the Administrator and the Arbitrator. Absent the filing of an application to correct or vacate the arbitration award under California Code of Civil Procedure Sections 1285 through 1288.8, each Party
        shall fully perform and satisfy the arbitration award within 15 days of the service of the award.

    (c) By agreeing to
        this binding arbitration provision, the Parties understand that they are waiving certain rights and protections which may otherwise be available if a Claim between the parties were determined by litigation in court, including, without limitation,
        the right to seek or obtain certain types of damages precluded by this Section 10.1, the right to a jury trial, certain rights of appeal and a right to invoke formal rules of procedure and evidence.

    10.1.2 Court
          Jurisdiction. The parties hereby agree that any suit, action or proceeding seeking (i) to enforce an arbitration award rendered pursuant to the provisions of Section 10.1.1 or (ii) to obtain or enforce any equitable remedy pursuant to Section
        10.1.3 shall be brought in the California Superior Court for the County of San Francisco County or the United States District Court for the Northern District of California, as applicable under California and U.S. federal law, and that any cause of
        action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of California. Each of the parties hereby irrevocably consents to the jurisdiction of such court (and of the appropriate appellate
        courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such
        court or that any such suit, action or proceeding that is brought in any such court has been brought in an inconvenient forum. Service of process, summons, notices or other documents by registered mail shall be effective service of process for any
        suit, action or other proceeding brought in any such court.

    10.1.3 Equitable
          Remedies. Each Party hereto acknowledges that a breach or threatened breach by such Party of any of its obligations under this Agreement would give rise to irreparable harm to the other Parties for which monetary damages would not be an
        adequate remedy and hereby agrees that, in the event of a breach or a threatened breach by such Party of any such obligations, each of the other Parties shall, in addition to any and all other rights and remedies that may be available to them in
        respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction (without any requirement to post
        bond).

    10.2 Attorneys’ Fees.  In the event of any litigation regarding any rights or obligations under this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees and court costs in addition to any other relief
        which may be granted.  The “Prevailing Party” shall mean the party receiving substantially the relief desired, whether by settlement, dismissal, summary judgment, judgment, or otherwise.  The attorneys’ fees
        award shall not be computed in accordance with any court fee schedule but shall be such as to fully reimburse all attorneys’ fees reasonably incurred.  Such fees and costs shall include but not necessarily be limited to attorneys’ fees, costs and
        expenses incurred in (a) post-judgment motions, (b) contempt proceedings, (c) garnishment, levy and debtor and third-party examinations, (d) discovery, and (e) bankruptcy litigation.

    ARTICLE XI: GENERAL PROVISIONS

    
      	
              11.1

            	
              This Agreement constitutes the whole and entire agreement of the parties with respect to the subject matter of this Agreement, and it shall not be
                modified, altered,  amended or repealed in any respect except by a written instrument executed by Members holding not less than a Majority in Interest of the Membership Interests (although no such amendment that adversely affect the Manager
                or any set of Members as compared to the remaining Members may be adopted without the consent of the adversely affected Members).  This Agreement replaces and supersedes all prior written and oral agreements by and among the Members or any
                of them.

            

    

    
      	
              11.2

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

            

    

    
      	
              11.3

            	
              This Agreement shall be construed and enforced in accordance with the internal laws of the State of California.  If any provision of this Agreement is
                determined by any court of competent jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be construed as though more narrowly drawn, if a narrower construction would avoid
                such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this Agreement shall remain
                in effect.

            

    

    
      	
              11.4

            	
              This Agreement shall be binding on and inure to the benefit of the parties and their heirs, personal representatives, and permitted successors and
                assigns.

            

    

    
      	
              11.5

            	
              Whenever used in this Agreement, the singular shall include the plural, the plural shall include the singular, and the neuter gender shall include the
                male and female as well as a trust, firm, Company, or corporation, all as the context and meaning of this Agreement may require.

            

    

    
      	
              11.6

            	
              The parties to this Agreement shall promptly execute and deliver any and all additional documents, instruments, notices, and other assurances, and
                shall do any and all other acts and things, reasonably necessary in connection with the performance of their respective obligations under this Agreement and to carry out the intent of the parties.

            

    

    
      	
              11.7

            	
              Except as provided in this Agreement, no provision of this Agreement shall be construed to limit in any manner the Members in the carrying on of their
                own respective businesses or activities.  Under no circumstances shall the doctrine of enterprise opportunity be applied to any of the business activities of the Members.

            

    

    
      	
              11.8

            	
              Except as provided in this Agreement, no provision of this Agreement shall be construed to constitute a Member, in the Member’s capacity as such, the
                agent of any other Member.

            

    

    
      	
              11.9

            	
              Each Member represents and warrants to the other Members that the Member has the capacity and authority to enter into this Agreement.

            

    

    
      	
              11.10

            	
              The article, section, and paragraph titles and headings contained in this Agreement are inserted as matter of convenience and for ease of reference
                only and shall be disregarded for all other purposes, including the construction or enforcement of this Agreement or any of its provision.

            

    

    
      	
              11.11

            	
              Time is of the essence of every provision of this Agreement that specifies a time for the performance or non-performance of an act.

            

    

    
      	
              11.12

            	
              This Agreement is made solely for the benefit of the parties to this Agreement and their respective permitted successors and assigns, and no other
                person or entity shall have or acquire any right by virtue of this Agreement.

            

    

    
      	
              11.13

            	
              The Members intend the Company to be a limited liability company under the Act.  No member shall take any action inconsistent with the express intent
                of the parties to this agreement.

            

    

    
      	
              11.14

            	
              The Members and each of them expressly understand, acknowledge and agree that:

            

    

    (a) This Agreement
        was reviewed by the law firm of Seiler Epstein LLP (collectively the “Firm”) who was retained to act as legal counsel to the Manager of the Company;

    (b) The Firm does
        not represent any Member with respect to this Company, except the Manager, in the absence of a clear and explicit written agreement to such effect between the Member and the Firm and, in the absence of any such agreement, the firm shall owe no
        duties directly to any Member;

    (c) The Members
        understand and are each aware that the Firm has represented and does or may represent the Manager and other Members in other matters and all of the Members waive any conflict or potential conflict as a result of such representation and the
        representation of this Company;

    (d) The Members
        understand and are each aware of their right to and urged to seek their own legal counsel regarding this Agreement;

    (e) Notwithstanding
        any adversity that may develop, If any dispute or controversy between any Member, or all Members, on one hand, and the Manager on the other hand,  or between any Member, or all Members, on one hand and the Company, on the other hand, then each
        Member agrees and consents that the Firm may represent the Manager and/or the Company, in any such dispute or controversy to the extent permitted by the California Rules of Professional Conduct and each Member agrees to obtain his or her own legal
        representation, and will not rely on the Firm to represent the Member’s interests;

    (f) While
        communications with the Firm concerning the formation of the Company, its Members and/or its Manager may be confidential with respect to any third parties, no Member has any expectation that such communications are confidential as between any of
        the other Members, and or the Company and its Manager;

    (g) Their
        respective interests in this Agreement and the Company may conflict with those of other Members, the Company, and its Manager:

    (h) They
        understand and are each aware of the facts creating such conflict or potential conflict of interests;

    (i) They have been
        advised to review this Agreement and all provided due diligence and other materials including without limitation the Company’s business plan, Private Placement Memorandum and Subscription Agreement, with their respective accountants or other tax
        advisors concerning tax consequences; and

    (j) They each
        consent to preparation of this Agreement under these circumstances by the Firm.

    11.16 Investment Representations and Warranties.  Each Member represents and warrants to and agrees with the Manager, the other Members and the Company as follows:

    (a) Preexisting Relationship.  He or she has a preexisting personal or business relationship with the Company, its Manager or one or more of its control persons.

    (b) Experience.  By reason of his or her business or financial experience, or by reason of the business or financial experience of his or her financial advisor who is unaffiliated with and who is not compensated, directly or indirectly,
        by the Company or any affiliate or selling agent of the Company, he or she is capable of evaluating the risks and merits of an investment in the Membership Interest and of protecting his or her own interests in connection with this investment.

    (c) No Advertising.  He or she has not seen, received, been presented with, or been solicited by any leaflet, public promotional meeting, newspaper or magazine article or advertisement, radio or television advertisement, or any other form
        of advertising or general solicitation with respect to the sale of the Interest.

    (d) Investment Intent.  He or she is acquiring the interest for investment purposes for his or her own account only and not with a view to or for sale in connection with any distribution of all or any part of the Membership Interest.  No
        other person will have any direct or indirect beneficial interest or right to the Membership Interest.

    (e) Residency.  He or she is a resident of the United States of America.

    (f) Economic Risk.  He or she is financially able to bear the economic risk of an investment in the Membership Interest, including the total loss thereof.

    (g) No Registration of Membership Interest.  He or she acknowledges that the Membership Interest has not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under any states securities law, or for any
        other applicable blue-sky laws in reliance, in part, on his or her representations, warranties, and agreements herein.

    (h) No Representations by Company.  Neither any Manager, any agent or employee of the Company or of any Manager, or any other Person has at any time expressly or implicitly represented, guaranteed, or warranted to him or her that he or
        she  may freely transfer the Membership Interest, that a percentage of profit and/or amount or type of consideration will be realized as a result of any investment in the Membership Interest, that past performance or experience on the part of the
        Manager or their affiliates or any other person in any way indicates the predictable results of the ownership of the Membership Interest, the or of the overall Company business, that any cash distributions from Company operations or otherwise will
        be made to the Members by any specific date or will be  made at all, or that any specific tax benefits will accrue as a result of an investment in the Company.

    (i) Consultation with Attorney.  He or she has been advised to consult with his or her own attorney regarding all legal matters concerning an investment in the Company and the tax consequences of participating in the Company, and has done
        so, to the extent he or she considers necessary.

    (j) Tax Consequences.  He or she acknowledges that the tax consequences to his or her of investing in the Company will depend on his or her particular circumstances, and neither the Company, the Manager, the Members, nor the partners,
        shareholders, members, managers, agents, officers, directors, employees, affiliates, or consultants of any of them will be responsible or liable for the tax consequences to him or her of an investment in the Company. He or she will look solely to,
        and rely upon, his or her own advisers with respect to the tax consequences of this investment.

    (k) No Assurance of Tax Benefits.  He or she acknowledges that there can be no assurance that the Code or Regulations will not be amended or interpreted in the future in such a manner so as to deprive the Company and the Members of some
        or all of the tax benefits they might now receive, nor that some of the deductions claimed by the Company or the allocations of items of income, gain, loss, deduction, or credit among the Members may not be challenged by the Internal Revenue
        Service.

    (l) No Disposition in Violation of Law.  Without limiting the representations set forth above, he or she will not make any disposition of all or any part of the interest which will result in the violation by him or her or by the Company
        of the Securities Act, or any other states securities law or any other applicable securities laws.  Without limiting the foregoing, he or she agrees not to make any disposition of all or any part of the Membership Interest unless and until:

    (1) There is then
        in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with such registration statement and any applicable requirements of state securities laws; or

    (2) He or she has
        notified the Company of the proposed disposition and has furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Manager, he or she has furnished the Company with
        a written opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of any securities under the Securities Act or the consent of or a permit from appropriate authorities under any applicable
        state securities laws; and

    (3) The
        disposition will satisfy all of the requirements and restrictions as set out in this Operating Agreement.

    (m) Restrictions on Transferability.  He or she acknowledges that there are substantial restrictions on the transferability of the Membership Interests pursuant to this Agreement, that there is no public market for the Membership Interest
        and none is expected to develop, and that, accordingly, it may not be possible for him or her to liquidate his or her investment in the Company.

    (n) Investment
          Risk.  He or she acknowledges that the purchase of the Membership Interests is a speculative investment which involves a substantial degree of risk of loss by him or her of his or her entire investment in the Company, that he or she
        understands and takes full cognizance of the risk factors related to the purchase of the Membership Interest and that the Company is newly organized and has no financial or operating history. The Members understand that an investment in the Company
        involves a significantly high degree of risk.  Although the Company believes that the Project represents an attractive investment opportunity, there can be no assurance that the Company will be wholly or even partially successful in achieving its
        objectives or that the Company will have the ability to return any investment.  The Members understands that they may lose their entire investment by investing in the Company.  The apartment industry is highly volatile and generally considered a
        very risky investment.  The Members understand and are prepared to lose their entire investment.

    

    

    (o) No Obligation to Register.  He or she represents, warrants, and agrees that the Company and the Manager is under no obligation to register or qualify the Membership Interest under the Securities Act or under any state securities law,
        or to assist him or her in complying with any exemption from registration and qualification.

    (p) Waiver of Private Placement Memorandum.  The Members represent, warrant, and agrees that prior to investing and becoming a Member they have had the opportunity to review the business plan, the financials, all documents related to the
        purchase of the Property including without limitation the purchase agreement and title report and other documents provided by the Managers and that they waive the presentment and review of a private placement memorandum provided by the Company.

    
      	
              11.15

            	
              Indemnity.  Each Member agrees that they shall defend, indemnify and hold harmless the Company, each and every Manager, Partnership
                Representative and every other Member, and any officers, directors, shareholders, managers, members, employees, partners, agents, attorneys, registered representatives, and control persons of any such entity who was or is a party or is
                threatened to be made party to any threatened, pending, completed action, suit, or proceeding, whether civil, criminal administrative, or investigative, by reason of or arising from any misrepresentation or misstatement of facts or omission
                to represent or state facts made by him or her including, without limitation, the information in this Agreement, against losses, liabilities, and expenses of the Company, each and every Manager, each and every other Member, Partnership
                Representative and any officers, directors, shareholders, managers, members, employees, partners, attorneys, accountants, agents, registered representatives, and control persons of any such Person (including attorneys’ fees, judgments,
                fines, and amounts paid in settlement, payable as incurred) incurred by such Person in connection with such action, suit, proceeding, or the like.

            

    

    

    

    (the remainder of this page left intentionally blank)

    

    

    

    

    IN WITNESS WHEREOF, the parties have executed or caused to be executed this Operating Agreement regarding PVT-Madison Partners LLC as of the Effective Date first above written.

    

    

    	
            MANAGER

             

            BAA Investment Group LLC,

            a California limited liability company

             

            ___________________________

            Joel Kelly, Manager

             

              

            MEMBERS

            _________________________

            Joel Kelly

             

             

            ___________________________

              Kristopher Lamont

             

            ________________________________________

              MACKENZIE REALTY CAPITAL, INC.

            By: _____________________________________

                    Christine Simpson, Senior Vice President

            

               

             

            

               

          

    EXHIBIT A

    ARTICLES OF ORGANIZATION

    

    

    EXHIBIT B

    PVT-MADISON PARTNERS LLC MEMBERS AND CAPITAL CONTRIBUTIONS

    EQUITY INVESTORS MEMBERS

    	
            Member

             

          	
            Investment Amount

          	
             Number of Units

          	
            Percentage Interest

          
	
            Mackenzie Realty Capital, Inc.

          	
            $7,900,000.00

          	
            7,900

          	
            74.0602

          
	
            Joel Kelly

          	
            $50,000.00

          	
            50

          	
            .46874

          
	
            Kristopher Lamont

          	
            $50,000.00

          	
            50

          	
            .46874

          
	 	 	 	 
	 	 	 	 
	
            TOTAL

          	
            $8,000,000.00

          	
            8,000

          	
            75%

          

    

      

      

    

    DEVELOPER INVESTORS

    	
            Member

          	
            Number of Units

          	
            Percentage Interest

          
	
            Joel Kelly

          	
            1333.50

          	
             12.5%

          
	
            Kris Lamont

          	
            1333.50

          	
            12.5%

          
	 	 	 
	
            TOTAL

          	
            2,667

          	
            25%

          

    

    

    

    

    	
            TOTAL OWNERSHIP

          	
            10,667

          	
            100%

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