Document:

Exhibit 10.37

Exhibit 10.37

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”). THE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE OR OTHERWISE
TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF
COUNSEL IN COMPARABLE TRANSACTIONS THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

SUBORDINATED TERM NOTE

 

			
	Denver, Colorado 

February 25, 2009
	 	

$500,000

FOR VALUE RECEIVED, CAPTERRA FINANCIAL GROUP, INC., a Colorado corporation (the
“Company”), hereby promises to pay to the order of BOCO INVESTMENTS, LLC, a Colorado
limited liability company, or registered assigns (the “Holder”) the sum of Five Hundred
Thousand Dollars ($500,000) (the “Principal”), or so much thereof as shall have been
advanced to or for the benefit of Company, together with interest on the principal balance
outstanding from time to time, on the terms and conditions set forth herein, at the close of
business on August 24, 2009.The Company, in its sole discretion, may extend the term of this Note
until the close of business on February 25, 2010(the “Maturity Date”); provided, however,
that the Company shall have first paid the Holder for the extension by granting Holder a warrant to
purchase One Hundred Twenty-Five Thousand Dollars ($125,000) of Company common shares at the
closing bid price on August 24, 2009.

As additional consideration for this Note, the Company has contemporaneously granted Holder a
warrant to purchase 1,000,000 common shares at a purchase price of $0.25 per share until February
25, 2012.

Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed
thereto in the Securities Purchase Agreement dated September 28, 2006 and any amendments thereto
(collectively, the “Purchase Agreement”).

All payments due under this Senior Subordinated Note (the “Note”) shall be made in
lawful money of the United States of America.

1. Interest; Payments

(a) Interest Rate. Subject to Section 1(b) and 1(c), this Note shall bear interest on
the unpaid Principal balance hereof at the rate (the “Interest Rate”) per annum of twelve
percent (12%).

 

 

 

(b) Default Interest. If an Event of Default has occurred and is continuing, interest
shall accrue on the unpaid Principal balance of this Note at a rate (the “Default Interest
Rate”) equal twenty-four percent (24%) per annum.

(c) Applicable Law. Notwithstanding any provision of this Note, the Purchase
Agreement or any other agreement to the contrary, the Company shall not be required to pay, and the
Holder shall not be permitted to receive, any compensation that constitutes interest under
Applicable Law in excess of the maximum amount of interest permitted by Applicable Law.

(d) Interest. Interest shall commence accruing on the date hereof, shall be computed
on the basis of a 365-day year and the actual number of days elapsed and shall be due at the end of
the term of this Note or upon the partial or complete payoff of this Note, whichever is earlier.

(e) Payments. During the term of this Note, any and all proceeds from the sale,
exchange, other transfer, financing or refinancing of all or any portion of the Company’s interest
in any land, properties or other assets, net of costs of sale and required payments then due on
Senior Debt will applied to the repayment of this Note in accordance with the terms hereof. All
payments shall be made at such address as the Holder shall hereafter give to the Company by written
notice made in accordance with the provisions of this Note. Whenever any amount expressed to be
due by the terms of this Note is due on any day which is not a Business Day, the same shall instead
be due on the next succeeding day which is a Business Day and, in the case of any interest payment
date which is not the date on which this Note is paid in full, the extension of the due date
thereof shall not be taken into account for purposes of determining the amount of interest due on
such date. The Principal amount of this Note, together with any unpaid interest thereon, shall be
due and payable on the Maturity Date.

(f) Prepayment. The unpaid Principal balance of this Note, together with all accrued
and unpaid interest, may at the Company’s option be prepaid in whole or in part, at any time or
from time to time. Any prepayments hereunder shall be applied first, to all interest accrued but
unpaid at such prepayment date and second, to outstanding Principal amounts.

(g) Advances of Principal. Prior to any advances of Principal under this Note, the
Company shall submit a summary, in a form that is acceptable to the Holder, describing the reason
for the advance on this Note as well as the underlying economics if the advance is for the purposes
of a new real estate project. The Holder reserves the right to approve each advance of Principal
under this Note; provided, however, that such approval shall not be unreasonably withheld.

 

 

 

2. Subordination. The payment of principal and interest on this Note is hereby subordinated
to the Senior Debt and Holder will not ask, demand, sue for, take or receive from the Company, by
setoff or in any other manner, the whole or any part any amount payable with respect to this Note
(whether such amounts represent principal or interest, or obligations which are due or not due,
direct or indirect, absolute or contingent), including, without limitation, the taking of any negotiable instruments evidencing such debt, nor any security for any of the Note,
unless and until all Senior Debt, whether now existing or hereafter arising, shall have been fully
and indefeasibly paid in full in cash and satisfied and all financing arrangements between the
Company and all holders of the Senior Debt have been terminated; provided, however,
that Holder may receive from the Company scheduled payments of principal and interest with respect
to this Note on an unaccelerated basis so long as no Senior Default has occurred and is continuing
or would result therefrom. If a Senior Default has occurred and is continuing or would result from
any scheduled payment of principal or interest by the Company with respect to this Note, then,
until the Senior Default which has occurred or which would result from such payment has been cured,
no payment of principal or interest shall be deemed due or otherwise payable under this Note.

3. Events of Default. Each of the following events shall be deemed an “Event of
Default”:

(a) The Company fails to pay the Principal hereof or interest thereon when due on this Note,
whether at maturity, upon acceleration or otherwise and where such failure continues for a period
of thirty (30) days after receipt of written notice from the Holder to the Company and GDBA
Investments, LLLP (“GDBA”) of such failure;

(b) Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for
relief under any bankruptcy law or any law or the relief of debtors shall be instituted by or
against the Company or any subsidiary of the Company, unless such proceeding shall be stayed within
thirty (30) days;

(c) The Company or any subsidiary of the Company shall make an assignment for the benefit of
creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a
substantial part of its property or business, or such a receiver or trustee shall otherwise be

appointed;

(d) Any representation or warranty of the Company made herein or in any agreement, statement
or certificate given in writing pursuant hereto or in connection herewith (including, without
limitation, the Purchase Agreement and the Registration Rights Agreement), shall be false or
misleading in any material respect when made and the breach of which has (or with the passage of
time will have) a material adverse effect on the rights of the Holder with respect to this Note,
or the Purchase Agreement;

(e) Any material failure by the Company to perform or observe any of its covenants contained
in the Purchase Agreement where such failure continues for a period in excess of five (5) days
after written notice from the Holder or actual knowledge of the Company of such failure;

(f) If a final judgment, writ or similar process is entered or filed against the Company or
any subsidiary of the Company or any of its property or other assets in an amount in excess of
$50,000, which is not, within twenty (20) days after the entry thereof, discharged or the execution thereof stayed pending appeal, or within twenty (20) days after the expiration of such
stay, such judgment is not discharged;

 

 

 

(g) Any default with respect to any other Indebtedness for Borrowed Money or liabilities of
the Company or any of its subsidiaries in any amount in excess of (i) $50,000 individually or in
the aggregate with respect to Indebtedness for Borrowed Money, (ii) $50,000 individually with
respect to liabilities and (iii) $100,000 in the aggregate with respect to liabilities and
Indebtedness for Borrowed Money, provided, that such event shall only constitute an “Event
of Default” where the effect of such default is to permit the holder thereof to accelerate the
maturity of such Indebtedness for Borrowed Money or liabilities, as the case may be, but only if
(x) the holder elects to exercise such a right to accelerate the maturity of such Indebtedness for
Borrowed Money or liabilities, as the case may be, and (y) where such default continues for a
period of fifteen (15) days after written notice from the Holder or actual knowledge of the Company
of such a default, and provided, further, that a default with respect to
liabilities shall not constitute an “Event of Default” where the Company in good faith objects to
the amount or obligation to pay the applicable liability and makes appropriate reserves for such
liability, if necessary, in accordance with GAAP.

(h) Any liquidation, dissolution or winding up of the Company and its subsidiaries or its
business;

(i) Reserved.

(k) Any event, circumstance or conditions exists which could reasonably be expected to result
in a Material Adverse Effect on the Company and its Subsidiaries, provided that the
Holder shall provide thirty (30) days written notice to the Company if it intends to declare an
Event of Default under this paragraph 3(k) and provide the Company with an opportunity to present
evidence satisfactory to the Holder in its sole discretion that such event, circumstance or
condition has been remedied; or

(l) The Company shall fail to maintain the listing of the Common Stock on at least one of the
OTCBB or any equivalent replacement exchange, the Nasdaq Global Select Market, the Nasdaq Global
Market, the Nasdaq Capital Market, the New York Stock Exchange or the American Stock Exchange

4. Consequences of Event of Default

(a) If there shall occur, after the fulfillment of any applicable notice and cure provisions
(if any), any Event of Default specified in sections (b) or (c) of Section 3 hereof, the unpaid
Principal balance of this Note and all accrued interest thereon shall be immediately due and
payable, without presentment, demand, protest or notice of any kind, all of which are expressly
waived.

(b) If there shall occur, after the fulfillment of any applicable notice and cure provisions
(if any), any Event of Default other than those listed in Section 4(a) above, the Holder may, at
its option, by written notice to the Company, declare the entire Principal balance of this Note and all accrued interest thereon due and payable, and the same shall thereupon become
immediately due and payable without presentment, demand, protest or (except as required hereby)
notice of any kind, all of which are expressly waived.

 

 

 

(c) If an Event of Default shall occur, the Company shall pay the Holder hereof all costs of
collection, including reasonable attorneys’ fees.

5. Definitions

“Applicable Law” means that law in effect from time to time and applicable to this Note
which lawfully permits the contracting, charging, taking, reserving and/or collection of the
highest permissible lawful, non-usurious rate of interest or amount of interest on or in connection
with this Note.

“Business Day” means any day other than a Saturday, Sunday or a day on which commercial
banks in the city of Denver, Colorado are authorized or required by law or executive order to
remain closed.

“Senior Debt” means all indebtedness, obligations and other liabilities of the Company to
(i) Vectra Bank Colorado, national association, pursuant to that certain First Amendment to Credit
Agreement dated August 3, 2006, as amended, and (ii) United Western Bank (“UWB”) pursuant to that
certain Credit Agreement dated May 7, 2007 between UWB and Maker, as the same may be amended,
modified, restated or extended from time to time.

“Senior Default” means any “Default,” “Event of Default” or any condition or event that
(with or without notice, lapse of time, or both) would permit Holders of Senior Debt to accelerate
the maturity of such Senior Debt if that condition or event were not cured or removed within any
applicable grace or cure period set forth therein.

6. Miscellaneous

(a) No failure or delay on the part of the Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or of any other
right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not
exclusive of, any rights or remedies otherwise available.

(b) Any notice herein required or permitted to be given shall be in writing and may be
personally served or delivered by courier or sent by United States mail and shall be deemed to have
been given upon receipt if personally served (which shall include telephone line facsimile
transmission) or sent by courier or three (3) days after being deposited in the United States mail,
certified, with postage pre-paid and properly addressed, if sent by mail. For the purposes hereof,
the addresses of the parties for receipt of notice hereunder are:

If to the Company:

Capterra Financial Group, Inc.

1440 Blake Street, Suite 310

Denver, Colorado 80202

Attention: Chief Executive Officer

Telephone: (303) 893-1003

Facsimile: (303) 893-1005

With a copy to:

David Wagner & Associates, P.C.

8400 East Prentice Ave.

Penthouse Suite

Greenwood Village, Colorado 80111

Attention: David J. Wagner, Esq.

Telephone: (303) 793-0304

Facsimile: (303) 409-7650

If to the Holder:

BOCO Investments, LLC

103 West Mountain Ave.

Fort Collins, Colorado 80524

Facsimile: (970) 482-6139

Attention: Chief Executive Officer

With a copy to:

Davis Graham & Stubbs LLP

1550 17th Street, Suite 500

Denver, CO 80202

Attention: Ronald R. Levine II and Brian J. Boonstra

Telephone: (303) 892-9400

Facsimile: (303) 892-7400

If to GDBA:

GDBA Investments, LLLP

1440 Blake Street, Suite 310

Denver, Colorado 80202

Facsimile: (720) 932-9397

Attention: Peter Shepard

With a copy to:

Davis & Ceriani, P.C.

1350 17th Street, Suite 400

Denver, Colorado 80202

Attention: Patrick J. Kanouff

Telephone: (303) 534-9000

Facsimile: (303) 534-4618

 

 

 

(c) This Note and any provision hereof may only be amended by an instrument in writing signed
by the Company and the Holder. The term “Note” and all reference thereto, as used throughout this
instrument, shall mean this instrument as originally executed, or if later amended or supplemented,
then as so amended or supplemented.

(d) This Note shall be binding upon the Company and its successors and assigns, and shall
inure to be the benefit of the Holder and its successors and assigns. Notwithstanding anything in
this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide
margin account or other lending arrangement.

(e) This Note shall be enforced, governed by and construed in accordance with the laws of the
State of Colorado applicable to agreements made and to be performed entirely within such state,
without regard to the principles of conflict of laws. The parties hereto hereby submit to the
exclusive jurisdiction of federal or state courts located in Denver, Colorado with respect to any
dispute arising under this Note. Both parties irrevocably waive the defense of an inconvenient
forum to the maintenance of such suit or proceeding. Both parties further agree that service of
process upon a party mailed to the notice address set forth in this Note by registered first class
mail shall be deemed in every respect effective service of process upon the party in any such suit
or proceeding. Nothing herein shall affect either party’s right to serve process in any other
manner permitted by law. Both parties agree that a final non-appealable judgment in any such suit
or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on such
judgment or in any other lawful manner.

IN WITNESS WHEREOF, Company has caused this Note to be signed in its name by its duly
authorized officer this 25th day of February, 2009

	 	 	 	 	 
	 	CAPTERRA FINANCIAL GROUP, INC.

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	James W. Creamer, III 	 
	 	 	Title:  	Chief Executive OfficerWaitlist's Operating Agreement

 Exhibit 4.1 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF 
  Waitlist, LLC 
 THIS LIMITED LIABILITY COMPANY AGREEMENT OF WAITLIST, LLC (this “Agreement”) is

made as of September 3, 2008 by IndieShares Management, LLC (as the Manager (as defined below) and Common Member (as defined below)). Additional Members (as defined below) may be added to this Agreement by becoming a party to a Subscription

Agreement (as defined below), purchasing Class A Shares (as defined below), and upon Waitlist meeting the minimum raise requirement. The parties hereto agree as follows: 
  

	 	1.	DEFINITIONS. The following terms shall have the following meanings in this Agreement: 

  

	 	1.1.	The term “Affiliate” means, when used with reference to the Manager or Waitlist: 

  

	 	(a)	the principals of companies affiliated with Manager or Waitlist; 

  

	 	(b)	persons directly or indirectly controlling, controlled by or under common control with such companies, including LLCs; 

  

	 	(c)	any persons owning or controlling ten percent (10%) or more of the outstanding units of such company, including LLCs; and 

  

	 	(d)	any successor-in-interest following a merger or similar transfer when such successor-in-interest is owned by the same persons who own such company or LLC; and

  

	 	1.2.	The term “Agreement” means this Limited Liability Company Agreement of Waitlist, LLC, as originally executed and as amended from time to time. 

  

	 	1.3.	The term “Articles” means the Certificate of Formation with the Washington State Secretary of State for the purpose of forming Waitlist, in the form prescribed by the LLC Act

and the Washington Secretary of State. 

  

	 	1.4.	The term “Board Of Directors” means the board of directors of Waitlist (Jay T. Schwartz, Julie Chase, and George Brumder) who collectively own 100% of the outstanding units of

Manager. 

  

	 	1.5.	The term “Capital Contribution” means the total amount of cash and the fair market value of any other assets contributed (or deemed contributed to Waitlist by a Member, net of

liabilities assumed by Waitlist or to which the assets are subject, as further described in Paragraph 9. 

  

	 	1.6.	The term “Capital Account” means the account to be maintained by Waitlist for each Member in accordance with the provisions of this Agreement and the Code. It is intended that

the Capital Accounts of all Members shall be maintained in compliance with the applicable provisions of the Code. 

	 	1.7.	The term “Class A Shares” means the class of limited liability company units held by Members of Waitlist as further described in Paragraph 11. 

  

	 	1.8.	The term “Code” means the Internal Revenue Code of 1986, as amended (or any corresponding provision or provisions of any succeeding law). 

  

	 	1.9.	The term “Common Member” means that class of shareholder owning the Common Share. The Manager will be the sole Common Member. 

  

	 	1.10.	The term “Common Share” means the class of Share held by the Manager of Waitlist as further described in Paragraph 11. 

  

	 	1.11.	The term “Director” means the individual directors comprising the Board Of Directors. 

  

	 	1.12.	The term “Distributable Cash” means all cash funds derived from Waitlist attributable to the operations of Waitlist, including proceeds of insurance to compensate for covered losses,

less the sum of: 

  

	 	(a)	debt service; 

  

	 	(b)	current operating expenditures; 

  

	 	(c)	capital improvements and replacements, as determined by Manager; and 

  

	 	(d)	a reasonable reserve for the operation of the business of Waitlist, as determined by the Manager; 

 provided, however, that in no event shall Distributable Cash be less than each Member’s respective tax liability associated with a Net Profit

allocation in a given year. 
  

	 	1.13.	The term “Economic Interest” means a person’s right to share in the Net Profits, Net Losses or similar items, and to receive distributions of Distributable Cash from Waitlist, but does not include any other rights of a Member. 

  

	 	1.14.	The term, “Film” means the motion picture “Waitlist”. 

  

	 	 1.15. 	 The term, “Income” means all items of income and gain for federal income tax purposes together with items of income exempt from tax and income and gain described in Treas. Reg. §1.704-1(b)(2)(iv)(g) but excluding income and gain described in Treas. Reg. §1.704-1(b)(4)(i). 

  

	 	1.16.	The term “LLC Act” means the limited liability company laws of the state of Washington, specifically RCW 25.15, as now in effect and as hereafter amended or revised.

	 	 1.17. 	 The term, “Loss” means all items of loss and deduction for federal income tax purposes together with expenditures not properly chargeable to capital account but not otherwise deductible for tax purposes including loss and deduction described in Treas. Reg. §1.704-1(b)(2)(iv)(g) but excluding expenditures of the Company described in Code Section 705(a)(2)(B), loss or deduction described in Treas. Reg. §1.704-1(b)(4)(i) and §1.704-1(b)(4)(iii). 

  

	 	1.18.	The term “Manager” means IndieShares Management, LLC. The Manager is also the sole Common Member. 

  

	 	1.19.	The term “Member” means a person who: 

  

	 	(a)	has been admitted to Waitlist as a Member after the purchase of Class A Shares, and in accordance with this Agreement; and 

  

	 	(b)	has not resigned, withdrawn, or been expelled as a Member. 

 The term “Member” does not include the Manager, except to the extent the Manager or its members purchase Class A Shares. 
  

	 	1.20.	The terms “Net Profits” and “Net Losses” mean, for each taxable year of Waitlist, Waitlist’s income, gain, loss, deductions, and credits, in the aggregate or separately

stated, as appropriate, determined in accordance with standard accounting principles. 

  

	 	1.21.	The term “Production Management Fee” means $300,000 out of the offering proceeds to be paid by Waitlist in accordance with the terms of the agreement between Waitlist and the Manager (see Exhibit 10.2). Since

the subject offering is “all or none”, Manager shall only be paid such fee if all of the Class A Shares are sold and the offering proceeds are released. 

  

	 	 1.22. 	 The term “Regulation” or “Regulatios” means the federal tax regulations, including any temporary regulations, from time to time promulgated under the Code. 

   

	 	1.23.	The term “Special Meetings” means those meetings, which may be called by the Members as further described in Paragraph 4.4. 

   

	 	1.24.	The term “Subscription Agreement” means the agreement executed by Members pursuant to which they agree to make their Capital Contributions, acquire Class A Shares,

agree to be bound to this Agreement, and are admitted as Members of Waitlist. 

  

	 	1.25.	The term “Waitlist” means Waitlist, LLC, a Washington limited liability company. 

  

	 	2.	FORMATION. 

 The Manager formed Waitlist as a limited

liability company pursuant to the provisions of the LLC Act by filing the Certificate of Formation with the Washington State Secretary of State on May 7, 2008. The rights, duties, and liabilities of the Members and the Common Member shall be as

provided in the LLC Act, except as otherwise expressly stated in this Agreement. 
  

	 	3.	NAME. 

 The name of the company shall be Waitlist, LLC

(“Waitlist”). 

	 	4.	COMMENCEMENT; ADMISSION OF MEMBERS; NO MEETINGS; MEETINGS; NO OFFICERS. 

   

	 	4.1.	 Waitlist commenced its existence upon the filing of the Articles with the Washington State Secretary of State. Waitlist shall continue its existence until it is dissolved pursuant to the

provisions of the LLC Act and this Agreement. 

  

	 	4.2.	Each Member shall be admitted into Waitlist as a Member for tax, book, accounting, and other applicable purposes upon completion of the subscription agreement and payment via debit card for his shares, unless the Manager in its discretion selects a different admission policy that is reasonable and consistent with applicable law and regulation. As soon as practicable after the execution of this Agreement with respect to each

new Member, the Manager shall make available an electronic unit certificate to each Member representing the newly admitted Member’s Class A Shares acknowledging his status as a Member. 

  

	 	4.3.	Annual Meetings. The Members shall meet annually, by telephone conference call, to review the business of Waitlist with the Manager and to take any and all actions requiring the

consent and approval of the Members, including voting on the retention or replacement of the directors and Manager. Notice of the annual meeting, including proxies, will be distributed to the Members via electronic mail not less than thirty

(30) days prior to the meeting. Member proposed resolutions must be sent back to the Manager not less than ten (10) days before the meeting. Notice of the meeting will also include an agenda and reservation of sufficient time to address

any Member proposed resolutions. 

  

	 	4.4.	Special Meetings. Special Meetings of the Members, for any bona fide purpose, unless otherwise proscribed by statute, may be called at the request of the Members holding not

less than ten percent (10%) of all the outstanding Class A Shares of Waitlist or by the Manager. Should Manager, in its reasonable and good faith discretion, determine that the Member proposed purpose for a Special Meeting is not bona fide, then

the Manager shall be under no obligation to notify the remaining Members. For clarity, replacement of the Manager or directors would be considered a bona fide reason for a Special Meeting. 

  

	 	(a)	Place of Special Meeting. Special Meetings shall be conducted via telephone conference call. 

  

	 	(b)	Notice of Special Meeting. Notice stating the place, day, and hour of the Special Meeting, and the purposes for which the Special Meeting is called, shall be delivered not

less than ten (10) nor more than sixty (60) days before the date of the Special Meeting by electronic mail to each Member of record. The notice is given and effective on the date received by the Member. Waitlist shall be responsible for

delivering the electronic mail notices for Special Meetings to the Members. Any Member may submit to Manager a bona fide reason for which they believe a Special Meeting should be called. 

  

	 	(c)	Quorum. A simple majority of the Class A Shareholders of Waitlist, represented in person, by proxy, or participating via electronic proxy shall constitute a quorum at a

Special Meeting of Members. 

  

	 	(d)	Proxies. At all Special Meetings of Members, a Member may vote by proxy executed either electronically or in writing by the Member or his duly authorized attorney in fact.

Such proxy shall be filed with the Manager before or at the time of the Special Meeting. Manager will file each proxy with the SEC. 

	 	4.5.	The Manager will be solely responsible for appointing officers of Waitlist. Initially, Waitlist will have only one officer, George Brumder, its “Controller”. 

  

	 	5.	STATUTORY AGENT FOR SERVICE OF PROCESS; PRINCIPAL OFFICE. 

  

	 	5.1.	The initial statutory agent for the service of process and the initial principal office shall be Corporation Service Company 6500 Harbour Heights Parkway, Suite 400, Mukilteo, WA

98275. The Manager may, from time to time, change the statutory agent or registered office through appropriate filings with the Washington State Secretary of State. In the event the statutory agent ceases to act as such for any reason or the

registered office shall change, the Manager shall promptly designate a replacement statutory agent or file a notice of change of address, as the case may be, in accordance with the LLC Act. 

  

	 	5.2.	The principal office of Waitlist shall be at 2311 N 45th Street Suite 310, Seattle, Washington 98103 or such other place as the Manager may from time to time designate.

  

	 	6.	TERM. 

  Waitlist shall have perpetual existence, unless

it is dissolved in accordance with the provisions of this Agreement or the terms of the LLC Act. 
  

	 	7.	PURPOSES. Waitlist has been formed for the following purposes: 

  

	 	7.1.	To accomplish any lawful purpose whatsoever or which shall at any time appear conducive to or expedient for the protection or benefit of Waitlist and its assets, including but not limited

to the production of the Film. 

  

	 	7.2.	To exercise all other powers necessary to or reasonably connected with Waitlist’s business, which may be legally exercised by limited liability companies under the LLC Act.

  

	 	7.3.	To engage in all activities necessary, customary, convenient, or incident to any of the foregoing. 

   

	 	8.	POWERS, RIGHTS AND DUTIES OF THE BOARD OF DIRECTORS AND MANAGER. 

  

	 	8.1.	 The Company shall have a Board of Directors, which shall have the power to form the committees and perform the duties described in Section 8.3. Such committees

shall have the powers granted to them in their charters and such charters shall be approved by the Manager. The term “Board of Directors” is 

	 	 

used for convenience only and is not intended by the parties to confer to the Board Of Directors any additional power or authority other than that expressly

and specifically conferred pursuant to and in accordance with the terms of this Agreement. The Board of Directors of Waitlist — Jay T. Schwartz, Julie Chase, and George Brumder — collectively own 100% of the outstanding units of Manager.

  

	 	8.2.	The Board of Directors is not compensated in exchange for their service on the Board Of Directors and will not be reimbursed for expenses in connection with attendance at Board of

Directors or any committee meetings.

  

	 	8.3.	The Board of Directors plans to form an audit committee, a corporate governance committee, and a compensation committee and to adopt charters (approved by the Manager) relative to

these committees, and the Members hereby agree to such actions. Until such committees are formed, the Board of Directors will perform the duties of the audit committee, the corporate governance committee, and the compensation committee, which

means that members of the Board of Directors, who are the officers of Manager, will be involved in these matters. 

  

	 	8.4.	Subject to the provisions of Paragraph 8.6 and the other applicable provisions of this Agreement, the Manager shall have the full, exclusive and complete authority and discretion in

the management and control of the business of Waitlist for the purposes stated herein and shall have the right to make any and all decisions affecting the business of Waitlist. Subject to the provisions of this Agreement, the Manager, including any of its

officers, on behalf of Waitlist, shall have full and exclusive authority to execute and acknowledge any and all contracts, agreements, licenses and other documents, and to make withdrawals from Waitlist’s checking, savings and similar accounts. Without

limiting the generality of the foregoing, the Manager shall have the following rights and powers which it may exercise at the cost, expense and risk of Waitlist: 

  

	 	(a)	To expend the capital and income of Waitlist, if any, in the furtherance of Waitlist’s business, including, but not limited to, financing, developing, producing, licensing, selling,

distributing and exhibiting the Film, which includes, but is not limited to, causing Waitlist to pay compensation to, and to reimburse expenses incurred by, third parties providing services to Waitlist; 

  

	 	(b)	To cause Waitlist to incur borrowings, whether secured or unsecured by Waitlist’s assets, without the consent of the Members, and to execute and deliver all documents and instruments in

connection with the financing, development, production, editing, filming, licensing, distribution and exhibition of the Film; 

  

	 	(c)	 To cause Waitlist to pledge and sell some or all of the assets of Waitlist on such terms and conditions as determined by the Manager without the 

	 	 

consent of the Members, and to execute and deliver assignments, licenses, and other transfers and conveyances in connection with Waitlist’s properties and

operations; 

  

	 	(d)	To execute and deliver promissory notes, checks, drafts, and other negotiable instruments on behalf of Waitlist; 

  

	 	(e)	To hire or engage on behalf of Waitlist such employees, independent contractors and personnel as the Manager deems necessary or appropriate in order to conduct Waitlist’s business and

participate in Film, including but not limited to Affiliates of Waitlist; 

  

	 	(f)	To employ such attorneys, accountants and other persons, subject to the terms otherwise stated herein, as the Manager deems necessary or advisable to carry out the purposes of Waitlist;

  

	 	(g)	To purchase from or through others, contracts of liability, casualty and other insurance which the Manager deems advisable, appropriate, convenient or beneficial to Waitlist;

  

	 	(h)	To invest Waitlist’s funds in government securities, certificates of deposit, banker’s acceptances or similar investments; 

  

	 	(i)	To enter into such agreements and contracts with such parties and to give such receipts, releases and discharges with respect to all of the foregoing and any matters incident

thereto as the Manager deems advisable, appropriate or convenient; 

  

	 	(j)	To delegate or assign all or any of its duties, rights, or obligations hereunder, and in furtherance of any such delegation, to appoint, employ, or contract with any person deemed

in its discretion necessary or desirable for the transaction of the business of Waitlist, including persons, firms or entities (i) which employ or are affiliated with or subject to the control of the Manager, and (ii) in which it has a

proprietary interest. Such persons may, under the supervision of the Manager, (i) administer the day-to-day operations of Waitlist, (ii) serve as Waitlist’s advisors and consultants in connection with policy decisions made by the Manager,

(iii) act as consultants, accountants, correspondents, attorneys, brokers, escrow agents, or in any other capacity deemed by the Manager necessary or desirable, (iv) perform or assist in the performance of administrative or managerial

functions necessary for the management of Waitlist, and (v) perform such other acts or services for Waitlist as the Manager in its sole and absolute discretion may approve; 

  

	 	(k)	To admit new Members into Waitlist on such terms and conditions as determined by the Manager in its sole discretion; and 

	 	(l)	To execute and deliver any and all other instruments to carry out the purposes hereof. 

  

	 	8.5.	Only Members will have voting rights, one vote per Class A Share. Set forth below in (a) through (g) of this Section 8.5 are the matters which Waitlist or the Manager are

required to submit to a vote of the Class A Shares. All other actions and matters and are left to the Manager’s discretion. The following matters will require a simple majority in interest approval by the Class A Shares as described

in Paragraph 4.3 and 4.4: 

  

	 	(a)	Amendments to this Agreement; 

   

	 	(b)	The approval of a merger of Waitlist into another entity; 

  

	 	(c)	Any additional sales of equity securities of in Waitlist; 

  

	 	(d)	An election to dissolve Waitlist or cessation of all or a substantial part of Waitlist’s business; 

  

	 	(e)	The power to approve and make all final decisions and determinations regarding the selling, exchanging, or otherwise disposing of substantially all of Waitlist’s assets, including

distribution arrangements; 

  

	 	(f)	Election and removal of any director or the Manager; and 

  

	 	(g)	Purchase of the Film for fair market value by the Manager in accordance with Section 19.4 

 In the event a Member vote is required, proxies will be conducted in accordance with the process described in Paragraph 4.3 and 4.4. 
   

	 	8.6.	The Manager shall possess and may enjoy and exercise all of the rights and powers of members and managers as provided by the LLC Act, except to the extent any of such rights may be

limited or restricted by the express provisions of this Agreement. The Manager shall devote such time to Waitlist and its business as shall be necessary to conduct Waitlist’s business, to operate and manage Waitlist in an efficient manner and to carry out the

Manager’s responsibilities as herein provided. The Manager shall have the right to elect or appoint officers of Waitlist. 

  

	 	8.7.	No Member shall have any right, power or authority to: 

  

	 	(a)	Do any act in contravention of this Agreement without first obtaining the written consent thereto of the Manager. 

  

	 	(b)	 Do any act which would (i) make it impossible to carry on the 

	 	 

ordinary business of Waitlist, or (ii) change the nature of Waitlist’s business, without first obtaining the written consent thereto of the Manager.

  

	 	(c)	Confess a judgment against Waitlist, without first obtaining the written consent thereto of the Manager. 

  

	 	(d)	Possess Waitlist’s property, or assign Waitlist’s right in such property, for other than a company purpose without first obtaining the written consent thereto of the Manager.

  

	 	(e)	Amend this Agreement without first obtaining the written consent thereto of the Manager. 

  

	 	8.8.	Any person not a party to this Agreement who shall deal with Waitlist shall be entitled to rely conclusively upon the power and authority of the Manager as set forth herein.

  

	 	8.9.	 Waitlist shall reimburse the Manager for all out-of-pocket expenses and all direct and indirect disbursements to third parties made and obligations incurred on behalf of Waitlist to third

parties, including items such as Waitlist’s legal expenses and other costs and expenses incurred in the operation of Waitlist’s business. None of Waitlist’s Affiliates will earn compensation for their services to Waitlist. Notwithstanding the foregoing,

Manager shall be paid, (i) the Production Management Fee, which equals $300,000 out of the offering proceeds to be paid by Waitlist to Manager in accordance with the agreement between Waitlist and the Manager (see Exhibit 10.2). Since the subject offering is “all or

none”, Manager shall only be paid such fee if all of the Class A Shares are sold and the offering proceeds are released, upon receipt of a letter of permission from the Washington Department of Financial Institutions, from Waitlist’s impound account. The Manager will earn the Production Management Fee by (1) managing the day-to-day activities related to production of the Film, such as (a) disbursement of production funds to third parties, (b) daily review of Film

project deliverables and milestones, (c) approving any changes to the shooting schedule or budget, (d) engaging and contracting with necessary third parties in addition to the production company (e.g., graphic artists or web developers),

(e) managing third parties to ensure company’s contractual requirements are met, and (f) negotiating contract amendments or resolving disputes with third parties; (2) corresponding with Members providing updates on the progress

of the Film project, (3) marketing of the Film for eventual sale or distribution; (4) drafting and negotiation of sale or distribution terms and conditions; (5) distribution of proceeds from sale or distribution Members. , and

(ii) Manager’s contingent compensation in the form of its share of the Net Profits. Affiliates shall not earn compensation for services in connection with Waitlist’s business and Film. 

  

	 	8.10.	Any consent, approval or decision to be made by the Manager under this Agreement for Waitlist must be approved by a majority of the individual officers comprising the Manager.

	 	9.	CAPITAL CONTRIBUTIONS. 

  

	 	9.1.	The Common Member, also the Manager, may but shall not be obligated to contribute capital to Waitlist other than an initial Capital Contribution of $10.00 in cash made upon the formation

of Waitlist. Any Capital Contributions made by the Common Member for the purchase of Class A Shares (not including the initial $10.00 cash Capital Contribution) and by the other Members pursuant to Section 9.2 hereof shall be referred to as the

“Capital Contributions.” 

  

	 	9.2.	The aggregate Capital Contribution that Waitlist will accept shall be determined by the Manager. The price per Class A Share is $10.00. Concurrently with the execution and delivery

to the Manager of the Subscription Agreement, each Member shall deliver in cash to the Manager the amount of his respective Capital Contribution, all as set forth on the Subscription Agreement for each such Member. 

  

	 	9.3.	Subject to the provisions of Paragraph 12.2 below, no Member shall be personally liable for any obligations or debts of Waitlist or any of its losses beyond the total amount the Member

has agreed to contribute to the capital of Waitlist and to the Member’s share, if any, of the undistributed Distributable Cash attributable to the Member. Except as provided in this Paragraph 9, and in Paragraph 12.2 below, no Member shall have any

obligation to make additional Capital Contributions to Waitlist.

  

	 	9.4.	Except as specifically provided in this Agreement, no Common Member or Member shall be entitled to interest on his Capital Contributions. 

  

	 	10.	ADVANCES. 

  

	 	10.1.	If any funds are required by Waitlist for the operation of its business in excess of the Capital Contributions made by the Members required pursuant to Section 9 above and loans

obtained from third parties, then any Member and Manager shall have the right, but not the obligation, upon the approval of the Manager, to advance such funds (the “Advances”) to Waitlist. 

  

	 	10.2.	If Manager or any Member makes an Advance pursuant to Section 10.1 above, such Advance shall constitute an unsecured loan to Waitlist. 

  

	 	10.3.	The terms and conditions of an Advance by Manager shall be determined by the Manager pursuant to its best business judgment. The Advance shall be evidenced by a promissory note and

shall be repaid to the Manager or Member making the Advance pursuant to the terms of such note. 

  

	 	10.4.	If any Member or Manager lends money to Waitlist for any purpose, whether as an Advance or otherwise, in connection with such loan the Member or Manager shall be deemed an unsecured

creditor of Waitlist, and not a Member, for the purpose of determining his right and priority to the payment of interest on and the repayment of the principal of such loan. 

	 	11.	OWNERSHIP; CAPITAL ACCOUNTS; AND DISTRIBUTIONS BY THE COMPANY. 

  

	 	11.1.	The ownership of Waitlist shall be in the form of a Common Share and Class A Shares, each such class of shares having the rights and preferences as described herein. The total shares

that Waitlist shall be authorized to issue is 350,001, comprised of 1 Common Share and 350,000 Class A Shares. The holder of the Common Share shall be referred to herein as the Common Member, and such entity is also the Manager, and the holders of

Class A Shares shall be referred to herein as the Members. Waitlist may issue authorized shares at such times, in such amounts, and to such purchasers as determined by the Manager and as further described in a Subscription Agreement.

   

	 	 11.2. 	 A Capital Account will be established and maintained for each Member in accordance with this Agreement and in accordance with the federal income tax regulations pursuant to Code Section 704(b) and in particular those found at Reg. Section 1.704-1(b)(2)(iv).

   

	 	 11.3. 	 In the event any Member unexpectedly receives any adjustments, allocations, or distributions described in Treas. Reg. Section 1.704-1(b)(2)(ii)(d)(4), Section 1.704-1(b)(2)(ii)(d)(5), or Section 1.704-1(b)(2)(ii)(d)(6), items of Income shall be specially allocated to each such person in an amount and manner sufficient to eliminate, to the extent required by the Regulations, the adjusted Capital Account deficit of such person as quickly as possible, provided that an allocation pursuant to this paragraph shall be made if and only to the extent that such person would have an adjusted Capital Account deficit after all other allocations provided for in this paragraph have been tentatively made as if this paragraph were not in the Agreement.

   

	 	 11.4. 	 Losses shall be allocated pro rata in accordance with each Member’s respective holdings.  Income shall be allocated pro rata to the Members in accordance with each Members’ respective holdings of Class A Shares until the Class A Priority Return (as defined in Section 11.6(d) below) has been paid in full, and thereafter shall be allocated fifty percent (50%) to the Members pro rata in accordance with their respective holdings and fifty percent (50%) to the Common Member.

   

	 	11.5.	Subject to all of the provisions of this Agreement, Distributable Cash shall be distributed to the Common Member and Members at such times and in such amounts as are determined in

the sole and absolute discretion of the Manager. 

  

	 	11.6.	Distributable Cash and Net Profits, if any, shall be distributed as follows: 

  

	 	(a)	One hundred percent (100%) of the Distributable Cash to the Members, pro rata in accordance with their respective holdings, until the Members have received their Class A

Priority Return (as defined in Section 11.6(d) below), then 

  

	 	(b)	Fifty percent (50%) of the Net Profits, if any, to the Members pro rata in accordance with their respective holdings, and 

  

	 	(c)	Fifty percent (50%) of the Net Profits to the Common Member. 

  

	 	(d)	Class A Priority Return: For purposes of this Agreement, the term Class A Priority Return shall mean that amount equal to the aggregate capital contributions made by all

of the Members, plus five percent (5%). For example, if the Members have collectively contributed $3,500,000.00 of capital to Waitlist, the first $3,675,000.00 of Distributable Cash would be allocated to the Members (pro-rata amongst the Class); once the

Class A Priority Return was met, every dollar of Net Profit would be allocated 50% to the Members and 50% to the Common Member. 

  

	 	 11.7. 	Regulatory Allocations. The allocations set forth in this Agreement are intended to comply with the economic arrangements of the Members. Nothing in this Agreement or specifically

in this Section 11 is intended to contravene the Code or the regulations thereto. The Manager is hereby authorized without notice to the Members to amend this Paragraph 11 to comply with the Code including the regulations promulgated

thereunder. 

  

	 	12.	RIGHTS AND OBLIGATIONS OF THE MEMBERS. 

  

	 	12.1.	Except as expressly provided in this Agreement to the contrary, the Members shall take no part in the operation, management or control of Waitlist’s business.

	 	12.2.	The Members shall have no power to sign for or to bind Waitlist to any agreements or arrangements. All authority to act on behalf of Waitlist is vested in the Manager. Any Member who takes any

action to bind Waitlist in contravention of this Agreement shall indemnify Waitlist for any costs, expenses, claims or liabilities incurred by Waitlist as a result of the unauthorized action of such Member. Without limiting the foregoing, the exercise by a Member of

any rights granted by this Agreement, or serving as a third-party contractor, consultant or surety of Waitlist, shall not be deemed to be taking part in the execution, management or control of Waitlist’s business. 

  

	 	12.3.	Subject to the provisions of Paragraph 12.2 of this Agreement, Members shall not be personally liable for any obligations or debts of Waitlist or any of its losses beyond the total amount

the Members have agreed to contribute to the capital of Waitlist and to the Members’ share, if any, of the undistributed Distributable Cash attributable to the Members. 

  

	 	13.	ADDITIONAL MANAGERS; WITHDRAWAL; REMOVAL. 

  

	 	13.1.	Persons may be admitted to Waitlist as additional or substitute Managers upon election of the Members in accordance with Paragraph 8.5. 

   

	 	13.2.	The Manager shall have the right to withdraw or resign from Waitlist upon 90 days prior written notice to the Members. 

  

	 	14.	INSURANCE. 

  Waitlist may procure liability insurance (or

shall be designated as an additional insured, if appropriate) which will protect it from liability to others because of personal injury (including death) and property damage which may arise from operations under this Agreement, and such other

insurance as is customary, desirable or required for the conduct of Waitlist’s business, as determined by the Manager in its sole discretion. 
  

	 	15.	FISCAL YEAR, BOOKS AND RECORDS AND BANK ACCOUNTS. 

  

	 	15.1.	 Waitlist, for accounting and income tax purposes, shall operate on a fiscal year ending September 30 and shall utilize such accounting principles and income tax elections and

determinations as shall be determined by the Manager. The Manager shall serve as the “Tax Matters Partner” for Waitlist. 

  

	 	15.2.	As required by the Securities Exchange Act of 1934, as amended, the books and records of, and other information pertaining to, Waitlist shall be made electronically available to any

Member at Waitlist’s website. 

  

	 	15.3.	All funds of Waitlist shall be deposited in a separate bank account or accounts as shall be determined by the Manager and the Manager shall be entitled to sign on all such accounts.

	 	15.4.	The Manager shall maintain the books and records for Waitlist. 

  

	 	16.	REPORTS BY WAITLIST.  

  

	 	16.1.	The Manager shall make electronically available to the Members all information required by federal and state regulations for preparation of the Members’ federal and state

income tax returns within sixty (60) days after the end of Waitlist’s fiscal year. 

  

	 	16.2.	The Manager shall make electronically available to the Members a balance sheet and an income statement prepared by the Manager as soon as is reasonably practicable after the end of

each fiscal year of Waitlist. 

  

	 	17.	RESTRICTIONS ON TRANSFER; ASSIGNEES. 

  

	 	17.1.	Except as provided in Section 17.3, below, and notwithstanding anything to the contrary contained in the LLC Act, the Members shall not sell, transfer, assign, pledge,

hypothecate, encumber, subject to a security interest or otherwise dispose (“Transfer”) of their Class A Shares, or any part thereof. 

  

	 	17.2.	Notwithstanding anything contained in Paragraph 17.1 to the contrary, a Member’s Class A Shares, or a portion thereof, may be Transferred to persons or entities entitled

thereto pursuant and limited to any operation of law; provided, however, the transferee in such case shall only become an Economic Interest holder with respect to such Class A Shares transferred, and shall in no event become a Member. It shall

be the sole responsibility of the Economic Interest holder to contact the Manager, via Waitlist’s website, so that Waitlist’s records may be updated accordingly. 

  

	 	17.3.	A Manager shall have a right to assign its interest in Net Profits, Net Losses and Distributable Cash without the consent of any Member. 

  

	 	18.	INDEMNIFICATION AND LIABILITY OF MANAGER, DIRECTORS AND OFFICERS.  

  

	 	18.1.	 Waitlist, its receiver or its trustee, shall indemnify, save harmless and pay all judgments and claims against (a) the Manager, or any officers or directors of Waitlist, from any liability or damage incurred by reason of any

act performed or omitted to be performed by it in connection with the business of Waitlist, except as provided in Section 18.3 of this Agreement or (b) the Members for any act performed by them which is expressly permitted by this Agreement,

including attorneys’ fees and costs incurred by them in connection with the defense of any action based on any such act or omission, which attorneys’ fees and costs may be paid as incurred, including all such liabilities under federal and

state securities laws as permitted by law. All judgments against Waitlist and its Members on which any Member is entitled to indemnification must first be satisfied from Waitlist assets before the Member in question is responsible for such obligations.

  

	 	18.2.	 In the event of any action by a Member against the Manager, directors, or officers of Waitlist, including a 

	 	 

company derivative suit, Waitlist will indemnify, save harmless and pay all expenses of the Manager, including attorneys’ fees and costs incurred in the

defense of such action. 

  

	 	18.3.	The Manager, directors, or officers of Waitlist shall not be relieved from any liability for any acts or omissions resulting from a material breach of its obligations hereunder or from bad faith. Indemnification to

which the Manager, directors, or officers of Waitlist are entitled under this Section 18 shall be recoverable out of the assets of Waitlist but not from the Members. 

  

	 	18.4.	The Manager, directors, or officers of Waitlist shall not be liable to the Members or to Waitlist for any loss resulting from errors made by the Manager, directors, or officers of Waitlist in the reasonable exercise of business judgment, unless such errors

result from a material breach of this Agreement or bad faith by the Manager, directors, or officers of Waitlist. 

  

	 	19.	DISSOLUTION AND LIQUIDATION. 

  

	 	19.1.	 Waitlist shall be dissolved upon the earlier of: 

  

	 	(a)	Failing to meet Waitlist’s minimum capital requirements by the close of the offering. This is an all or none offering, meaning that if all of the Class A Shares are not sold

within 180 days after commencement of the offering, sales of Class A Shares shall cease and all subscriptions funds will be promptly returned, less applicable payment processing charges; provided, however, that Waitlist may choose to extend the

offering for up to an additional 60 days (the “Offering Period”). For clarity, the Offering Period shall commence upon the sale of the Class A Shares, not upon the prospectus being declared effective. 

  

	 	(b)	An election by the Members, in accordance with Paragraph 8.5, to dissolve Waitlist. 

  

	 	(c)	An election by the Members, in accordance with Paragraph 8.5, to sell, exchange or otherwise dispose of all or substantially all of the assets of Waitlist; provided, however, that if Waitlist receives a purchase money note upon such sale, Waitlist shall continue in existence until such note is satisfied, sold or otherwise conveyed. 

   

	 	(d)	The entry of a judgment of dissolution under the LLC Act. 

  

	 	(e)	Acquisition by a single person of all outstanding Shares in Waitlist upon election by the Members in accordance with Paragraph 8.5. 

   

	 	19.2.	 Upon the dissolution of Waitlist, the Manager (which term, for the purpose of this Section 19.2, shall include the trustees, receivers or other persons required by

law to wind-up the affairs of Waitlist) shall wind up the affairs of Waitlist as provided in the LLC Act. Waitlist shall engage in no further business thereafter other than that necessary to wind up the business in accordance with the LLC Act and distribute the

assets in accordance with this Agreement. The Members shall 

	 	 

continue to allocate Net Profits and Net Losses during the winding up period in the same manner as such amounts were divided before dissolution. The parties

responsible for winding up shall be entitled to reasonable compensation for their services in connection therewith, which compensation shall be considered an expense of Waitlist. The Manager may, from time to time and at any time, have the assets or any

one or more of them appraised at the expense of Waitlist for distribution in kind, subject to existing liens and encumbrances. 

  

	 	19.3.	From and after the dissolution of Waitlist, the proceeds from the liquidation of Waitlist’s property and from the operation of Waitlist’s business shall, in accordance with Section 11

of this Agreement, be applied and distributed in the following order; 

  

	 	(a)	First, to creditors, including (to the extent permitted by law) Members who are creditors, in satisfaction of liabilities of Waitlist other than liabilities for distributions to Members

under Section 11 of this Agreement. 

  

	 	(b)	Second, to Members that have not yet received their full allocation and distribution of their Class A Priority Return, to Members, pro-rata, up to, but not more than, that

amount necessary to satisfy the Class A Priority Return. 

  

	 	(c)	Third, any remaining assets shall be distributed to the Members and Manager as follows: fifty percent (50%) to the Members pro-rata in accordance with their respective

Class A Share holdings, and fifty percent (50%) to the Manager in its capacity as the Common Share Holder. 

  

	 	19.4.	In the event of a winding up and liquidation of Waitlist, the Manager may have the right to purchase any assets of Waitlist (including the Film, or any part thereof, produced by Waitlist and any

rights thereto or associated therewith), provided that the Manager pays Waitlist the fair market value of any such assets, as determined below, and such sale is approved by a simple majority of the Class A Shareholders as described in Paragraph 4.5.

   

	 	19.5.	Fair market value will be determined on the basis of, and will be equal to, the amount which would be obtained between an informed and willing buyer under no compulsion to buy and

an informed and willing seller under no compulsion to sell. Manager will bid the Film assets to those who might desire to purchase the assets. This in no way means that there will be such interested parties. It is entirely possible that the

Film’s assets are worthless and that the fair market value of such assets is zero. 

  

	 	19.6.	Subject to this Section 19, the business and affairs of Waitlist shall be wound up in the manner provided in the LLC Act. 

  

	 	19.7.	As soon as practicable after the dissolution of Waitlist, a final statement of its assets and liabilities shall be prepared by Waitlist and electronically made available to the Members.

	 	19.8.	As soon as possible after any of the events specified in this Section 19 affecting the dissolution of Waitlist occurs, the Manager shall file a written notice of winding up with the

Washington Secretary of State signed on behalf of Waitlist containing such information as is required by the LLC Act. 

  

	 	19.9.	Provided all of the known property and assets of Waitlist have been applied and distributed pursuant to the LLC Act and this Agreement, written articles of termination shall be signed on

behalf of Waitlist by the Manager. The Manager shall file the articles of termination with the Washington Secretary of State containing such information as is required by the LLC Act. 

  

	 	20.	INVESTMENT REPRESENTATIONS. 

 Each Member, by

executing a copy of this Agreement, hereby represents and warrants to each other Member and Waitlist as follows: 
  

	 	20.1.	The Class A Shares are being acquired for his own account for investment. 

  

	 	20.2.	The Member has been fully advised of the facts respecting the organization and business of Waitlist and has been given the opportunity to consult his legal counsel with respect to Waitlist.

  

	 	21.	SPECIAL AND LIMITED POWER OF ATTORNEY. 

 Each

Member hereby grants to the Manager a special and limited power of attorney, as set forth below: 
  

	 	21.1.	The Manager acting alone shall at all times during the term of Waitlist have a special and limited power of attorney as the attorney-in-fact for each Member, with power and authority to

act in the name and on the behalf of each such Member to execute, acknowledge, and swear to in the execution, acknowledgment and filing of documents, which shall include by way of illustration but not of limitation the following:

  

	 	(a)	The Articles, this Agreement and any amendments to the foregoing which, under the laws of the State of Washington or the laws of any other state, are required to be executed or

filed or which the Manager shall deem it advisable to have executed or to file: 

  

	 	(b)	Any other instrument or document which may be required to be executed or filed by Waitlist under the laws of any state or by any governmental agency or which the Manager shall deem it

advisable to have executed or to file; and 

  

	 	(c)	 Any instrument or document which may be required to effect the 

	 	 

continuation of Waitlist or the dissolution and termination of Waitlist (provided such continuation, admission or dissolution and termination are in accordance with the

terms of the Articles and this Agreement), or to reflect any reductions in amount of contributions of Members. 

  

	 	21.2.	The special and limited power of attorney of the Manager: 

  

	 	(a)	Is a special power of attorney coupled with an interest, is irrevocable, shall survive the death of the granting Member, and is limited to those matters herein set forth;

  

	 	(b)	May be exercised by the Manager acting alone for each of the Members by the signature of the Manager acting as attorney-in-fact for all of the Members, together with a list of all

Members executing such instrument by their attorney-in-fact; and 

  

	 	(c)	Shall survive a Transfer by a Member of all or any portion of his Class A Shares. 

  

	 	22.	MISCELLANEOUS. 

  

	 	22.1.	Notices. Any notice, request, demand, instruction or other document to be given hereunder or pursuant hereto to any party shall be in writing and delivered by email. Notices

so emailed shall be deemed to have been given twenty four (24) hours after sending. The addresses and addressees, for the purpose of this Section 22.1, may be changed by giving written notice of such change in the manner herein provided

for giving notice. Unless and until such written notice is received, the last address and addressee stated by written notice, or as provided herein if no written notice of change has been sent or received, shall be deemed to continue in effect for

all purposes hereunder. 

  

	 	22.2.	Binding Effect. This Agreement shall be binding upon all of the Members and their executors, administrators, successors and permitted assignees. 

  

	 	22.3.	Regulations and Laws. Nothing contained in this Agreement shall be construed to require the commission of any act contrary to law. If there is a conflict between any

provision of this Agreement and any present or future statute, law, ordinance or regulation contrary to which the parties have no legal right to contract, the after shall prevail, but in such event the provisions of this Agreement affected shall be

curtailed and limited only to the extent necessary to bring it within the requirement of the law. This Agreement is made under and shall be construed pursuant to the laws of the State of Washington. 

  

	 	22.4.	Attorneys’ Fees. In the event of any action for breach of or to enforce or declare rights under any provision of this Agreement, the prevailing party shall be entitled

to reasonable attorneys’ fees and costs, to be paid by the losing party. 

	 	22.5.	Counterparts. This Agreement may be executed in several counterparts, including electronic forms, and all so executed shall constitute one agreement, binding upon all of the

parties hereto, notwithstanding that all of the parties are not signatories to the original or the same counterparts. 

  

	 	22.6.	No Other Agreement. The entire agreement of the parties with respect to Waitlist is contained and referred to herein. 

  

	 	22.7.	Headings. The Section headings of the various provisions hereof are intended solely for convenience of reference and shall not in any manner amplify, limit or modify, or

otherwise be used in the interpretation of, any of said provisions. 

  

	 	22.8.	Competitive Activities. Nothing herein contained shall preclude any Manager or Member from owning, purchasing, selling, or otherwise dealing in any manner with any property

or engaging in any business whatsoever without notice to any other Manager or Member, without participation of any other Manager or Member, and without liability to any other Manager or Member. It is understood that any Manager or Member may now or

hereafter engage in any business or possess any property of any type, whether or not such business or such property competes with the business or property of Waitlist. Each Manager and Member hereby waives any right which he may have against others who

may capitalize on or take advantage of information learned as a result of an association with Waitlist. 

  

	 	22.9.	Gender and Tense. As used in this Agreement, the masculine, feminine or neuter gender, and the singular or plural number, shall be deemed to include the others whenever the

context so indicates. 

  

	 	22.10.	Remedies. If any party to this Agreement shall fail to observe or perform any term, covenant, condition or other obligation on his part to be observed or performed pursuant

to this Agreement or in connection with this Agreement (the ‘Defaulting Party”), any other party to this Agreement, in addition to and not in lieu or in limitation of, any of his other remedies under this Agreement, under any statute or at

law, shall be entitled to apply to, and obtain from, any court of equity having jurisdiction over the Defaulting Party: 

  

	 	(a)	An injunction, temporary restraining order and any other prohibitory decree to prevent any further such failure to observe or perform on the part of the Defaulting Party; and

  

	 	(b)	A decree for specific performance of any such term, covenant, condition or other obligation. 

  

	 	22.11.	Waiver. The waiver by one party of the performance of any covenant, condition or promise shall not invalidate this Agreement nor shall it be considered a waiver by such party

of any other covenant, condition or promise hereunder. The waiver by any party of the time for performing any act shall not constitute a waiver of the time for performing any other act or an identical act required to be performed at a later time.

The exercise of any remedy shall not exclude other consistent remedies. 

	 	22.12.	No Third-Party Benefit. Nothing contained in this Agreement shall be deemed to confer any right or benefit on any person or entity who is not a party to this Agreement.

  

	 	22.13.	Section 754 Election. The Manager may, in its sole and absolute discretion, make the election provided for in Section 754 of the Code. 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 
 “MANAGER” 
 INDIESHARES MANAGEMENT, LLC 

 

			
	By:	 	 /s/ JAY T. SCHWARTZ

		
	Name:	 	Jay T Schwartz, President
	Address for Manager:
	2311 N 45th Street
	Suite 310
	Seattle, Washington 98103

 “MEMBERS” 
  

			
	By:	 	  

 IndieShares Management, LLC, as Attorney-in-Fact for all of the 
 Members who have executed Subscription Agreements

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