Document:

Exhibit 10.32

 

 

 

 

 

 

FF GLOBAL PARTNERS LLC

 

SECOND
AMENDED AND RESTATED

 

LIMITED LIABILITY COMPANY
AGREEMENT

 

FF GLOBAL PARTNERS LLC

 

 

 

As of May 16, 2022

 

 

 

 

 

     

     

    

 

SECOND AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT OF

FF GLOBAL PARTNERS LLC

 

(a Delaware limited liability
company)

 

This Second Amended and
Restated Limited Liability Company Agreement (this “Agreement”) of FF GLOBAL PARTNERS LLC (the “Company”)
is made and entered into as of May 16, 2022 (the “Effective Date”) by and among the Company, individuals listed in
Schedule I and each other Person who is admitted as a member of the Company from time to time in accordance with the provisions
of this Agreement (each individual listed in Schedule I, a “Member” and collectively, the “Members”).
Capitalized terms used herein and not otherwise defined have the meanings set forth in Section 1.01.

 

RECITALS

 

WHEREAS,
the Company was duly formed as a limited liability company under the applicable laws of the State of Delaware by the filing of Limited
Liability Company Certificate of Formation on December 27, 2018 (the “Certificate of Formation”);

 

WHEREAS,
the Members are parties to that certain First Amended and Restated Limited Liability Company Agreement dated June 25, 2019, as amended
by the First Amendment to the First A&R LLC Agreement dated February 5, 2021 and the Second Amendment to the First A&R LLC Agreement
dated March 29, 2021 (the “First A&R LLC Agreement”);

 

WHEREAS,
after due consideration, the Committee (defined below) deems it in the Company’s interest to amend and restate in its entirety the
terms of the First A&R LLC Agreement in accordance herewith, to set forth the respective duties, interests, obligations, powers, privileges
and rights of Members and to provide for the management and governance of the Company on and after the Effective Date; and

 

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

 

ARTICLE I

 DEFINITIONS

 

Section 1.01. Definitions.

 

“Act”
means the Delaware Limited Liability Company Act, as amended from time to time (or any corresponding provisions of succeeding law).

 

“Affiliate”
means, with respect to any Person, any other Person who, directly or indirectly (including through one or more intermediaries), controls,
is controlled by, or is under common control with such Person. In addition to the foregoing, if the specified Person is an individual,
the term “Affiliate” also includes (a) the individual’s spouse, (b) the members of the immediate family (including
parents, siblings and children) of the individual or of the individual’s spouse and (c) any corporation, limited liability company,
general or limited partnership, trust, association or other business or investment entity that directly or indirectly, through one or
more intermediaries or contractual arrangements, controls, is controlled by or is under common control with any of the foregoing individuals.
For purposes of this definition, “control,” when used with respect to any specified Person, means the power, direct
or indirect, to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities
or partnership or other ownership interests, by contract or otherwise; and the terms “controlling” and “controlled”
will have correlative meanings. For purposes of this Agreement, the Parties agree that none of the Members shall be deemed an Affiliate
of the Company or any of other Members solely by holding Units or Unit Equivalents of the Company.

 

     

     

    

 

“Authorized Units Pool”
has the meaning set forth in Section 3.02.

 

“Bankruptcy”
means, with respect to a Member, the occurrence of any of the following: (a) the filing of an application by such Member for, or a
consent to, the appointment of a trustee of such Member’s assets; (b) the filing by such Member of a voluntary petition in
bankruptcy or the filing of a pleading in any court of record admitting in writing such Member’s inability to pay its debts as
they come due; (c) the making by such Member of a general assignment for the benefit of such Member’s creditors; (d) the
filing by such Member of an answer admitting the material allegations of, or such Member’s consenting to, or defaulting in
answering a bankruptcy petition filed against such Member in any bankruptcy proceeding; or (e) the expiration of sixty (60) days
following the entry of an order, judgment or decree by any court of competent jurisdiction adjudicating such Member a bankrupt or
appointing a trustee of such Member’s assets.

 

“Business
Day” means a day other than (i) a Saturday, Sunday in the United States or (ii) any other day on which commercial banks in Los
Angeles, California are closed.

 

“Capital Account”
has the meaning set forth in Section 5.02.

 

“Capital
Contribution” means, for any Member, the total amount of cash and cash equivalents and the Fair Market Value of any other property
contributed or deemed to be contributed to the Company with respect to such Member’s Common Units. Any reference in this Agreement
to the Capital Contribution of a Member will include the Capital Contribution made by any predecessor holder of the Common Unit(s) of
that Member.

 

“Capital Unit Participation
Amount” has the meaning set forth in Section 3.04(c). “Cause” shall mean and refer to any of the
following: (i) the conviction of such Person or plea of nolo contendere for commission of any crime constituting a felony in the jurisdiction
in which committed, any crime involving moral turpitude (whether or not a felony) or any other criminal act involving dishonesty (whether
or not a felony); (ii) such Person’s commission of any act of fraud, theft, embezzlement, self-dealing or misappropriation against
the business of the Company; or (iii) willful misconduct in the performance of, or failure to perform, the obligations of such Person
under this Agreement or any other Agreement between such Person and the Company or willful misconduct which could reasonably cause material
harm to the Company.

 

“Certificate of Formation”
has the meaning set forth in the Recitals.

 

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“Change
of Control” means, whether occurring through one transaction or a series of related transactions, any of the following: (a)
a merger or consolidation of the Company the effect of which is that the Members (together with their respective Affiliates) as of immediately
prior to such transaction or series of related transactions are no longer, in the aggregate, the beneficial owners, directly or indirectly,
of a majority of the Units on a Fully Diluted Basis (or the equity of the surviving entity) (or if such surviving entity is a Subsidiary
of another Person, the ultimate parent entity) immediately after such transaction or series of transactions; (b) any sale, transfer or
similar disposition by the Company or its Subsidiaries of all or substantially all of their assets on a consolidated basis to a third
Person or a group of third Persons acting in concert; or (c) any purchase by any Person (or group of affiliated Persons), of Units (either
through a negotiated purchase or a tender offer), the effect of which is that the Parties that are Members as of immediately prior to
such transaction or series of related transactions are no longer, in the aggregate, the beneficial owners, directly or indirectly, of
a majority of the Units on a Fully Diluted Basis immediately after such transaction or series of transactions.

 

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

 

“Committee” has the meaning set forth in Section 8.01.

 

“Committee
Act” has the meaning set forth in Section 4.08.

 

“Committee
Policy” means any policy or regulation with respect to the operation of the Company adopted and approved by the Committee with
the Requisite Approval, as such policy or regulation may be duly amended from time to time.

 

“Common Unit”
has the meaning set forth in Section 3.01(b).

 

“Company” has the meaning set forth in the Preamble.

 

“Company Counsel”
has the meaning set forth in Section 14.10.

 

“Confidential Information”
has the meaning set forth in Section 10.01(a).

 

“Cumulative Tax Liability” has the meaning set forth in Section
7.04.

 

“Dissolution Event” has the meaning set forth in Section 12.01.

 

“Distributable
Cash” means, as of any date, the excess of (a) the cash, cash equivalent items, marketable securities and money market investments
held by the Company over (b) the sum of the amount of such items as the Committee reasonably and in good faith determines to be necessary
for (i) the payment of the Company’s and its Subsidiaries’ then due or accrued expenses, liabilities and other obligations
and (ii) the establishment of appropriate reserves for expenses, liabilities and obligations.

 

“Distribution”
means a distribution made by the Company to a Member with respect to such Member’s Membership Interest, whether in cash,
property or securities of the Company and whether by liquidating distribution or otherwise; provided, however, that
none of the following will be a Distribution: (a) any redemption or purchase by the Company or any Member of any Units or Unit
Equivalents; (b) any recapitalization or exchange of securities of the Company (other than in connection with a Change of Control);
(c) any subdivision (by a split of Units or otherwise) or any combination (by a reverse split of Units or otherwise) of any
outstanding Units; or (d) any fees, expenses or remuneration paid to any Member in such Member’s capacity as a service
provider, licensor or Manager for the Company or any of its Subsidiaries. The terms “Distribute” when used as a
verb and “Distributable” when used as an adjective will each have a correlative meaning.

 

    3

     

    

 

“Electronic
Transmission” means any form of communication not directly involving the physical transmission of paper that creates a record
that may be retained, retrieved and reviewed by a recipient thereof and that may be directly reproduced in paper form by such a recipient
through an automated process.

 

“Effective Date” has
the meaning set forth in the Preamble.

 

“Fair
Market Value” of any asset as of any date means the purchase price that a willing buyer having all relevant knowledge would
pay a willing seller for such asset in an arm’s length transaction, as determined in good faith by the Committee based on such factors
as the Committee, in the exercise of its reasonable business judgment, considers relevant.

 

“FF Intelligent”
means Faraday Future Intelligent Electric Inc. a Delaware corporation.

 

“FF Top”
means FF Top Holding LLC (f/k/a/ FF Top Holding Ltd.), a Delaware limited liability company and a Subsidiary of the Company.

 

“Fiscal
Year” means the twelve (12)-month period ending on December 31 of each applicable calendar year.

 

“Fully
Diluted Basis” means, as of any date of determination, all issued and outstanding Units and all Units issuable upon the exercise
of any outstanding Unit Equivalents as of such date, whether or not such Unit Equivalent is at the time exercisable.

 

“Fully
Paid Units” means with respect to each issuance of the Common Units to a Member, the number of such Common Units that equals
the quotient of the total consideration of such Common Units that has been paid by such Member as of the date of determination, divided
by the applicable per Unit purchase price of such Common Units issued to the Member.

 

“IPO”
means the closing of a transaction (or a series of transactions) which result(s) in the ordinary shares, common stock or other securities
of a Person or its parent company being traded publicly on a qualified exchange, including but not limited to a firm commitment underwritten
public offering, backdoor listing (reverse merger or otherwise), and direct listing of the ordinary shares, common stock or other securities
of such Person or its parent company.

 

“IRS” means the U.S.
Internal Revenue Service.

 

“Joinder
Agreement” means the joinder agreement in form and substance attached hereto as Annex A.

 

    4

     

    

 

“Liquidation
Unit Value” means the amount that would be distributed to the relevant Unit pursuant to Section 7.02 hereof in the event
of a sale of all the assets of the Company for their respective Fair Market Values as determined by the Committee and the payment of all
of the Company’s liabilities.

 

“Liquidation
Value” means the aggregate amount that would be distributed with respect to all Units pursuant to Section 7.02 hereof
in the event of a sale of all the assets of the Company for their respective Fair Market Values as determined by the Committee and the
payment of all of the Company’s liabilities.

 

“Liquidator” has the meaning set
forth in Section 12.03(a).

 

“Losses” has the meaning set
forth in Section 13.03(a).

 

“Lower Committee” has the meaning set forth in Section 8.08.

 

“Manager” has the meaning set forth in Section 8.01.

 

“Managing Partner” has the meaning
set forth in Section 8.02(a)(ii).

 

“Managing Partner Vacancy” has the meaning set forth in Section 8.02(c)).

 

“Members Schedule” has the meaning set forth in Section 3.01.

 

“Membership
Interest” means a membership interest in the Company owned by a Member, including such Member’s right (based on the type
and class of Unit or Units held by such Member), as applicable: (a) to a Distributable share of Net Profit, Net Losses and other items
of income, gain, loss and deduction of the Company; (b) to a Distributable share of the assets of the Company; and (c) to vote on, consent
to or otherwise participate in any decision of the Members to the extent provided in this Agreement.

 

“Net
Profit” and “Net Loss” mean, for each Fiscal Year or other period specified in this Agreement, an amount
equal to the Company’s taxable income or loss for such period, determined in accordance with Section 703(a) of the Code, with the
adjustments provided in the regulations thereunder and the regulations under Section 704 of the Code; provided, however, that items which
are specially allocated pursuant to Section 6.01(b) hereof shall not be taken into account in computing Net Profit or Net Loss.

 

“Nomination Process” has the meaning
set forth in 4.10.

 

“Officer” has the meaning set forth in Section 8.09(a).

 

“Initial Agreement”
has the meaning set forth in the Recitals.

 

“Partnership Representative” has
the meaning set forth in Section 11.02(a).

 

“Party” or “Parties” means the party or parties
to this Agreement.

 

“Percentage Interest” means, with
respect to each Member, the percentage determined by dividing such Member’s total issued Common Units by the aggregate number
of Common Units issued to all Members. Each Member’s Percentage Interest shall be set forth on opposite such Member’s
name on Schedule A attached hereto (such percentage being understood to be reflective of the economic interest in the Company
represented by such Member’s Membership Interest), and shall be updated by the Committee at any time that a redetermination of
Percentage Interest is appropriate. The Percentage Interests shall at all times aggregate to one hundred percent (100%).

 

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“Person”
means any individual, corporation, partnership, joint venture, limited liability company, governmental authority, unincorporated organization,
trust, association or other entity.

 

“Redemption Price” has the meaning set
forth in Section 3.04.

 

“Representative”
means, with respect to any Person, any director, manager, officer, employee, independent contractor, consultant, advisor (including any
financial advisor, counsel or accountant) and other agent of such Person.

 

“Requisite
Approval” means, to the extent there exists a quorum for actions by the Committee, the affirmative approval of a majority of
the votes cast by the Managers who are present and vote on the matter (which shall not include any abstaining Manager) but excluding the
manager who has no voting rights , provided that in the event of a tie in the affirmative and negative votes cast in respect of
any matter (which may include the vote of the Managing Partner), the Managing Partner (or any other Manager appointed by the Designated
Member, in the event the role of the Managing Partner is removed or challenged) shall have a casting vote.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations thereunder,
which will be in effect at the time.

 

“Subscription
Agreement” means the certain subscription agreement(s) entered into between the Members and the Company regarding the subscription
of Common Units by the Members.

 

“Subsidiary”
of a Person means any other Person with respect to which the first Person, through contract, equity interest or otherwise, (i) has the
right to elect a majority of the board of directors or other Persons performing similar functions or (ii) beneficially owns 20% or more
of the voting power (or of any other form of other voting or controlling equity interest in the case of a Person that is not a corporation),
in each case, directly or indirectly through one or more other Persons. For the avoidance of doubt, FF Intelligent shall be deemed as
the Company’s Subsidiary even if the Company’s interest in FF Intelligent is diluted to below 20% due to future equity financing
or otherwise.

 

“Tax Distribution” has the meaning set
forth in Section 7.04.

 

“Transfer”
means to, directly or indirectly, sell, transfer, assign, pledge, encumber, hypothecate or similarly dispose of, either voluntarily
or involuntarily, by merger, operation of law or otherwise, or to enter into any contract, option or other arrangement or
understanding with respect to the sale, transfer, assignment, pledge, encumbrance, hypothecation or similar disposition of, any
Units owned by a Person or any interest (including a beneficial interest) in any Units or Unit Equivalents owned by a Person.
“Transfer” when used as a noun will have a correlative meaning. “Transferor” and
“Transferee” mean a Person who makes or receives a Transfer, respectively.

 

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“Treasury
Regulations” means the final or temporary regulations issued by the United States Department of Treasury pursuant to its authority
under the Code, and any successor regulations.

 

“Unfunded Subscription
Recovery Amount” has the meaning set forth in Section 3.04(c).

 

“Unit”
means a unit representing a fractional part of the Membership Interests of the Members and will include all types and classes of Units;
provided, however, that any type or class of Unit will have the privileges, preference, duties, liabilities, obligations
and rights set forth in this Agreement and the Membership Interests represented by such type or class or series of Unit will be determined
in accordance with such privileges, preference, duties, liabilities, obligations and rights.

 

“Unit
Equivalents” means any security or obligation that is by its terms, directly or indirectly, convertible into, or exchangeable
or exercisable for Units, and any option, warrant or other right to subscribe for, purchase or acquire Units.

 

“Withholding Taxes” has the meaning set
forth in Section 7.03.

 

Section 1.02.
Interpretation. For purposes of this Agreement: (a) the term “or” is not exclusive; and (b) the words “herein,”
“hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole. The terms
“shall” and “will” have the same meaning hereunder. The definitions given for any defined terms in this Agreement
will apply equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun will include
the corresponding masculine, feminine and neuter forms. Unless the context otherwise requires, references herein: (x) to Articles, Sections,
and Annexes mean the Articles and Sections of, and Annexes attached to, this Agreement; (y) to an agreement, instrument or other document
means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by
the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto
and any regulations promulgated thereunder. This Agreement will be construed without regard to any presumption or rule requiring construction
or interpretation against the Party drafting an instrument or causing any instrument to be drafted. The Schedules, Annexes and Exhibits
referred to herein will be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim
herein. The term “dollar” or symbol “$” refer to the lawful currency of the United States of America.

 

ARTICLE
II

 ORGANIZATION

 

Section 2.01. Formation.

 

(a) The
Company was formed as a limited liability company by the filing of the Certificate of Formation of the Company with the Secretary of
State of the State of Delaware pursuant to the Act. All prior limited liability company agreements of the Company, whether written or
oral, are hereby amended and restated and superseded in their entirety by this Agreement.

 

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(b) This
Agreement will constitute the “limited liability company agreement” (as that term is used in the Act) of the Company. The
rights, powers, duties, obligations and liabilities of the Members will be determined pursuant to the Act and this Agreement. To the extent
that the rights, powers, duties, obligations and liabilities of any Member are different by reason of any provision of this Agreement
than they would be under the Act in the absence of such provision, this Agreement will, to the extent permitted by the Act, control.

 

Section 2.02.
Name. The name of the Company is “FF Global Partners LLC” and its business shall be carried on in such name with such
variations and changes as the Committee shall determine or deem necessary to comply with requirements of the jurisdictions in which the
Company’s operations are conducted.

 

Section 2.03.
Principal Office. The location of the principal office of the Company shall be located at such location as the Committee may from
time-to-time designate.

 

Section 2.04. Registered Office; Registered Agent.

 

(a) The
registered office of the Company will be the office of the initial registered agent named in the Certificate of Formation or such other
office (which need not be a place of business of the Company) as the Committee may designate from time to time in the manner provided
by the Act.

 

(b) The
registered agent for service of process on the Company in the State of Delaware will be the initial registered agent named in the Certificate
of Formation or such other Person or Persons as the Committee may designate from time to time in the manner provided by the Act.

 

(c) The
Committee will cause the Company and its Subsidiaries to be qualified or registered under all applicable laws of any jurisdiction in which
such entity owns property or engages in activities and will be authorized to execute, deliver and file any certificates and documents
necessary to effect such qualification or registration, including the appointment of agents for service of process in such jurisdictions,
if such qualification or registration is necessary or desirable to permit the Company and its Subsidiaries to own property and engage
in the Company’s and its Subsidiaries’ business in such jurisdictions.

 

Section 2.05.
Business Purpose; Powers. The Company is formed for the purpose of engaging in any lawful business, purpose or activity for which
limited liability companies may be formed under the Act. The Company shall possess and may exercise all the powers and privileges granted
by the Act or by any other applicable law or by this Agreement, together with any powers incidental thereto, so far as such powers and
privileges are necessary or convenient to the conduct, promotion or attainment of the business purposes or activities of the Company.

 

Section 2.06. Term.
The term of the Company commenced on the date the Certificate of Formation was filed with the Secretary of State of the State of Delaware
and will continue in existence perpetually until the Company is dissolved in accordance with the provisions of this Agreement.

 

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Section 2.07.
No State Law Partnership. The Members intend that the Company will be treated as a partnership for federal and, if applicable,
state and local, income tax purposes, and, to the extent permissible, the Company will make any election reasonably determined by the
Committee to be necessary or appropriate in order to ensure the treatment of the Company as a partnership for federal and, if applicable,
state and local, income tax purposes. The Company and each Member will file all tax returns and will otherwise take all tax and financial
reporting positions in a manner consistent with such treatment and no Member will take any action inconsistent with such treatment.

 

ARTICLE III

 UNITS

 

Section 3.01. Units Generally.

 

(a) The
Membership Interests of the Members will be represented by issued and outstanding Units, which may be divided into one or more types,
classes or series as determined by the Committee. Each type, class or series of Units will have the privileges, preference, duties, liabilities,
obligations and rights, including voting rights, if any, set forth in this Agreement with respect to such type, class or series.

 

(b) On
the Effective Date, the Company is authorized to issue two classes of Units, consisting of “Common Units” and “Capital
Units”. The Committee will maintain a schedule of all Members, their respective mailing addresses and the amount and series of Units
held by them (the “Members Schedule”), and will update the Members Schedule upon the issuance or Transfer to any new
or existing Member. As of the Effective Date, the issued and outstanding Units and the Percentage Interests of the Members are as set
forth on the Members Schedule as Schedule A attached hereto. The Members Schedule will be kept confidential but will be available
for review at the Company by all holders of Units.

 

Section 3.02. Authorized
Units. As of the Effective Date, the Company is authorized to issue up to 362,352,941 Common Units and a like number of Capital Units
(the “Authorized Units Pool”). For the avoidance of doubt, the Committee has the full power and authority to determine,
in its sole discretion, the timing and recipient(s) of any issuances of Common Units from the Authorized Units Pool which occur following
the date hereof; provided, that, all such issuances pursuant to this Section 3.02 shall be subject to such requirements for the
admission of new Members as provided in Section 4.01 hereof. In its sole discretion, the Committee may take such actions as it
deems appropriate so that, in respect of any income available for distribution that is earned by the Company in respect of any FF Intelligent
Shares or FF Top shares currently held (directly or indirectly) by the Company, each Common Unit, at maximum, will be entitled to such
amount as bears the same proportion to such distributable income as such Common Unit bears to the sum of all Common Units (whether issued
or issuable). The Committee shall issue (and only issue) the Capital Units pursuant to Section 3.04(c). Except for the right to receive
Distributions as set forth in Section 7.02(i), the Capital Units shall have no rights in respect of the Company, including, without limitation,
no right to vote on matters submitted to the Members and no right to nominate the Managers.

 

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Section 3.03.
Other Issuances. Except for the issuance of Units contemplated by this Agreement, the Company is hereby authorized to issue additional
Units only with the Requisite Approval of the Committee, subject to the requirements of admissions of new Members as provided in Section
4.01 hereof.

 

Section 3.04. Redemption of Units.

 

(a)
Each Member acknowledges and agrees that, to the extent that any Member (i) conducts his or herself in any manner which is
detrimental to the Company, FF Intelligent or any of their Affiliates, including but not limited to destroying the spirit of
partnership or creating divisions within partnership, as determined by the Committee in its sole discretion, (ii) breaches the terms
of this Agreement or any other agreements or contracts between such Member and the Company (including for the avoidance of doubt,
the Subscription Agreement and the payment terms thereunder) and the Company provides a written notice informing the Member of such
breach, which either (x) by its nature is incapable of being cured or (y) if capable of being cured, shall not have been cured to
the reasonable satisfaction of the Committee within 10 calendar days after the date of written notice of such breach, (iii)
terminates his or her employment with, or ceases to provide any services (including but not limited to consulting services or
directors’ services) to the Company, FF Intelligent, or any of their Affiliates, as applicable, with Cause, or (iv) terminates
his or her employment with or ceases to provide any services (including but not limited to director’s services or consulting
services) to, the Company, FF Intelligent, and all of their Affiliates, as applicable, without Cause (including as a result of death
or disability) (for the avoidance of doubt, so long as a Member continues to be employed by or engaged to provide services to any of
the Company, FF Intelligent, or their Affiliates, termination of his/her employment with another of such other companies without
Cause will not trigger redemption under this Section 3.04(a)(iv)) (each of (i), (ii), (iii) and (iv), a “Redemption
Event”.), then in each case, the Company has the right, upon the Requisite Approval of the Committee (which shall be made
within 60 days after the Committee has been notified of the Redemption Event), but not the obligation to redeem, or designate any
other party to purchase, any or all of the Common Units (and in the case of redemption pursuant clause (iv) above as a result of
death or disability, any or all of the Capital Units) then held by such Member at a price determined in accordance with the
following provisions of this Section 3.04 (the “Redemption Price”).

 

(b) In the event
of a redemption pursuant to (a)(i) or (a)(ii) hereof, the Redemption Price of (w) the Common Units that are Fully Paid Units shall
be determined by the Committee, provided that the Redemption Price of such Common Units shall not be lower than the unreturned
Capital Contributions for such Common Units or higher than the Liquidation Units Value of such Common Units and (x) the Common Units
that are not Fully Paid Units shall be zero. In the event of a redemption pursuant to (a)(iii) hereof, the Redemption Price of the
Common Units that are Fully Paid Units shall be the unreturned Capital Contributions for such Common Units and the Redemption Price
of the Common Units that are not Fully Paid Units shall be zero. In the event of a redemption pursuant to (a)(iv) hereof, the
Redemption Price of the Common Units that are Fully Paid Units shall be the higher of (y) Liquidation Unit Value of such Common
Units and (z) the unreturned Capital Contributions for such Fully Paid Units, and the Redemption Price of the Common Units that are
not Fully Paid Units shall be zero. In the event of a redemption of any Capital Units pursuant to (a)(iv) hereof, the Redemption
Price shall be the unpaid Capital Unit Participation Amount (as defined below) evidenced thereby.

 

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(c) In
the event of a redemption made pursuant to Section 3.04(a) above where the Liquidation Unit Value of any Common Units redeemed
is lower than the subscription price for such Units and any part of the subscription price for such Common Units remains unpaid, the Committee
may in its discretion cause the Company to pursue legal remedies to require such Member to pay up to such part of the unpaid subscription
price (the “Unfunded Subscription Recovery Amount”) as is equal to the excess, if any of (A) the total unpaid subscription
price in respect of the Common Units of the Member being redeemed pursuant to Section 3.04(a) over (B) the greater of (x) 50% of
the Member’s aggregate subscription price in respect of such redeemed units as set forth in such Member’s Subscription Agreement
and (y) the aggregate Liquidation Unit Value of such redeemed Units. If the Member pays any amount in respect of the Unfunded Subscription
Recovery Amount as required hereunder (such paid amount, the “Capital Unit Participation Amount”), such Member shall
be issued Capital Units reflecting a right to participate in future distributions of capital as contemplated in Section 7.02(i) and Section
12.03(c). Capital Units issued to a Member will be deemed cancelled automatically once Distributions equal to the Capital Unit Participation
Amount of such Capital Units have been made to the holder of such Capital Units pursuant to Section 7.02(i) or Section 12.03(c). For the
avoidance of doubt, except as otherwise agreed by a Member, the Company shall only have the right to pursue legal remedies for any Unfunded
Subscription Recovery Amount against the Member, and not any other Person related to such Member.

 

(d) All
Units that are redeemed by the Company pursuant to this Section 3.04 shall be cancelled immediately.

 

Section 3.06. Certification of Units.

 

(a) The
Committee in its sole discretion may, but will not be required to, cause the Company to issue certificates to the Members representing
the Units held by such Member.

 

(b) In
the event that the Company will issue certificates representing the Units in accordance with Section 3.06(a), then in addition
to any other legend required by the Act, all certificates representing issued and outstanding Units will bear a legend substantially in
the following form:

 

THE UNITS REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO A LIMITED LIABILITY COMPANY AGREEMENT AMONG THE COMPANY AND ITS MEMBERS, AS AMENDED, RESTATED, SUPPLEMENTED AND/OR OTHERWISE
MODIFIED FROM TIME TO TIME, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICE OF THE COMPANY. NO TRANSFER, SALE, ASSIGNMENT,
PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE UNITS REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS
OF SUCH LIMITED LIABILITY COMPANY AGREEMENT.

 

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THE UNITS REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS, AND MAY NOT BE TRANSFERRED,
SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT EFFECTIVE UNDER SUCH ACT AND
LAWS, OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER.

 

ARTICLE IV

 MEMBERS

 

Section 4.01. Admission of New Members.

 

(a) New
Members may only be admitted (i) subject to the Requisite Approval of the Committee, and (ii) in connection with a Transfer or issuance
of Units, subject to compliance with the provisions of Article IX.

 

(b) In
order for any Person not already a Member to be admitted as a Member, whether pursuant to an issuance or Transfer, such Person will have
executed and delivered to the Company a written undertaking substantially in the form of the Joinder Agreement. Upon the amendment of
the Members Schedule by the Committee and the satisfaction of any other applicable conditions, including, if a condition, the receipt
by the Company of payment for the issuance of the applicable Units, such Person will be admitted as a Member and deemed listed as such
on the books and records of the Company and thereupon will be issued its Units. The Committee will adjust the Capital Accounts of the
Members as necessary in accordance with Section 5.02.

 

Section 4.02.
Representations and Warranties of Members. By execution and delivery of this Agreement or a Joinder Agreement, as applicable, each
of the Members, whether admitted as of the date hereof or pursuant to Section 4.01, represents and warrants to the Company and
acknowledges as of the date hereof, the date of any purchase of Units by or grant of Units to such Member or as of the date of such Joinder
Agreement, as applicable, that:

 

(a) Such Member
understands that the Units and/or Unit Equivalents have not been, and will not be, registered under the Securities Act, by reason of
a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide
nature of the investment intent and the accuracy of such Member’s representations as expressed herein. Such Member understands
that the Units and/or Unit Equivalents are “restricted securities” under applicable U.S. federal and state securities
laws and that, pursuant to these laws, such Member must hold such equity indefinitely unless such equity is registered with the U.S.
Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification
requirements is available. Such Member acknowledges that the Company has no obligation to register or qualify such equity for
resale. Such Member further acknowledges that if an exemption from registration or qualification is available, it may be conditioned
on various requirements including the time and manner of sale, the holding period for such equity, and on requirements relating to
the Company which are outside of such Member’s control, and which the Company is under no obligation and may not be able to
satisfy.

 

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(b) Such
Member is an “accredited investor” within the meaning of Rule 501 promulgated under the Securities Act, and agrees that it
will not take any action that would have an adverse effect on the availability of the exemption from registration provided by Rule 501
promulgated under the Securities Act with respect to the offer and sale of the Units;

 

(c) Such
Member’s residence address (if a natural person) or principal place of business (if an entity) is as set forth on the Members Schedule;

 

(d) If
such Member is a 20% Holder, neither such Member nor any of such Member’s Rule 506(d) Related Parties is a Bad Actor;

 

(e) Such
Member’s Units are being acquired for its own account solely for investment and not with a view to resale or distribution thereof;

 

(f) The
determination of such Member to acquire Units has been made by such Member independent of any other Member and independent of any statements
or opinions as to the advisability of such purchase or as to the business, operations, assets, liabilities, results of operations, financial
condition and prospects of the Company and its Subsidiaries that may have been made or given by any other Member or by any agent or employee
of any other Member;

 

(g) Such
Member has such knowledge and experience in financial and business matters and is capable of evaluating the merits and risks of an investment
in the Company and making an informed decision with respect thereto;

 

(h) Such
Member is able to bear the economic and financial risk of an investment in the Company for an indefinite period of time;

 

(i) The
execution, delivery and performance of this Agreement have been duly authorized by such Member and do not require such Member to obtain
any consent or approval that has not been obtained and do not contravene or result in a default in any material respect under any provision
of any law or regulation applicable to such Member or other governing documents or any agreement or instrument to which such Member is
a party or by which such Member is bound; and

 

(j) This
Agreement is valid, binding and enforceable against such Member in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium, and other similar laws of general applicability relating to or affecting creditors’ rights
or general equity principles (regardless of whether considered at law or in equity).

 

Section 4.03. No
Personal Liability. Except as otherwise provided in the Act, no Member will be obligated personally for any debt, obligation or
liability of the Company, its Subsidiaries, or other Members, whether arising in contract, tort or otherwise, solely by reason of
being a Member. Except as otherwise required by the Act or expressly in this Agreement or by another writing signed by a Member,
such Member will have no fiduciary or other duty with respect to the business and affairs of the Company, and such Member will not
be liable to the Company for acting in good faith reliance upon the provisions of this Agreement. Except as expressly set forth
herein, no Member will have any obligation to contribute to, or in respect of, the liabilities or obligations of the Company or
return Distributions made by the Company except as required by the Act, or as expressly set forth herein. To the fullest extent
permitted by law, the failure of the Company to observe any formalities or requirements relating to the exercise of its powers or
the management of its business or affairs under this Agreement or the Act will not be grounds for making its Members (including the
Partnership Representative) responsible for the liabilities of the Company.

 

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Section 4.04. No Withdrawal.

 

(a) Distributions.
No Member shall have the right to withdraw any Capital Contributions made to the Company or to such Member’s Capital Account. No
Member will have any right to Distributions (including in connection with a withdrawal) other than cash as a Distribution from the Company
as expressly provided for herein and as determined by the Committee in its sole discretion.

 

(b) Bankruptcy;
Cessation of Membership. A Member will cease to be a Member as a result of the Bankruptcy of such Member or as a result of any other
events specified in Section 18-304 of the Act. As soon as any Person who is a Member ceases to hold any Units, such Person will no longer
be a Member.

 

Section 4.05.
Death. The death of any Member will not cause the dissolution of the Company. In such event, the Company and its business will
be continued by the remaining Member or Members and, the Committee may in its sole discretion determine whether to redeem or cause Units
owned by the deceased Member to be sold pursuant to Section 3.04(a) or to have such Units transfer to such deceased Member’s heirs;
provided, however, that as a condition to such Transfer to the heirs, the applicable heirs will sign a written undertaking
substantially in the form of the Joinder Agreement.

 

Section 4.06. Voting; Action
by Written Consent. Except as expressly provided in Section 8.02 of this Agreement, the Certificate of Formation or non-waivable
provisions of applicable law or otherwise pursuant to a Committee Act (as defined below) or Committee Policy, the Members shall have
no voting, approval, veto, consent or similar rights over any action, decision, document or other matter involving the Company or
the Business. Notwithstanding anything herein to the contrary, any action of the Members that may be taken by the Members pursuant
to Section 8.02 hereof may be taken without a meeting if a written consent, by means of Electronic Transmission or as
otherwise permitted by the Act, is executed by all of the Members.

 

Section 4.07.
No Interest in Company Property. No real or personal property of the Company will be deemed to be owned by any Member individually,
but will be owned by, and title will be vested solely in, the Company. Without limiting the foregoing, each Member hereby irrevocably
waives during the term of the Company any right that such Member may have to maintain any action for partition with respect to the property
of the Company.

 

Section 4.08. Compliance
with Committee Acts; Further Assurances. In the event the Committee takes any action or makes any decisions (a
“Committee Act”) pursuant to the terms of this Agreement, each Member shall do and perform, or cause to be done
and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments
and documents, as the Committee may request in order to carry out the intent and accomplish the purposes of the Committee Act and
the consummation of any transactions contemplated thereby.

 

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Section 4.10. Partners
and Preparatory Partners. The Committee may categorize its Members and/or Managers into “Partners” and
“Preparatory Partners” or such other designation with such rights and privileges determined by a Committee Act (with
Requisite Approval) or pursuant to the relevant Committee Policy. Unless provided elsewhere in this Agreement or as provided by the
then-applicable Committee Policy or Committee Act (with Requisite Approval) (i) the Managers (except for the Managing Partner) shall
be nominated by the Partners, and (ii) Partners shall be nominated by the existing Partners and Preparatory Partners (the
“Nomination Process”). If a Manager is removed, resigns, or cannot take the role before the next scheduled
nomination meeting, the Committee shall have the right, but not the obligation, to fill the vacancy subject to the Nomination
Process.

 

ARTICLE V

CAPITAL CONTRIBUTIONS; CAPITAL
ACCOUNTS

 

Section 5.01. Capital Contributions.

 

(a) As
of the Effective Date, each Member will be issued and will own the number, type, series and class of Units, and each Member shall have
made, or be deemed to have made, the Capital Contributions, in each case, in the amounts set forth opposite such Member’s name in
the Members Schedule attached hereto as Schedule A. No Member will be required to make any additional Capital Contributions to
the Company in excess of the subscription price for the Common Units set forth in such Member’s Subscription Agreement(s). Any future
Capital Contributions made by any Member will only be made with the Requisite Approval of the Committee.

 

(b) No
Member will be required to lend any funds to the Company and no Member will have any personal liability for the payment or repayment of
any Capital Contribution by or to any other Member.

 

Section 5.02.
Maintenance of Capital Accounts. The Company will establish and maintain for each Member holding Units a separate capital account
(a “Capital Account”) on its books and records in accordance with this Section 5.02. Each Capital Account will
be established and maintained in accordance with the following provisions:

 

 (a) Each Member’s Capital Account will be increased by the amount of:

 

(i) such
Member’s Capital Contributions (subject to Treasury Regulations Section 1.704-1(b)(2)(ii)(c) in the case of a contribution of a
note to the extent applicable);

 

(ii) any
Net Profit or other item of income or gain allocated to such Member pursuant to Article VI; and

 

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(iii) any
liabilities of the Company that are assumed by such Member or secured by any property Distributed to such Member.

 

 (b) Each Member’s Capital Account will be decreased by:

 

(i) the
cash amount or Fair Market Value of any property Distributed to such Member pursuant to Article VII, Section 12.03(c) or
any other provision hereof;

 

(ii) the
amount of any Net Loss or other item of loss or deduction allocated to such Member pursuant to Article VI; and

 

(iii) the
amount of any liabilities of such Member assumed by the Company or which are secured by any property contributed by such Member to the
Company.

 

The foregoing provisions and the other
provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulations Section
1.704-1(b), and will be interpreted and applied in a manner consistent with such Treasury Regulations.

 

Section 5.03.
Succession Upon Transfer. In the event that any Units are transferred in accordance with the terms of this Agreement, the Transferee
will succeed to the Capital Account of the Transferor to the extent it relates to the transferred Units and, subject to Section 6.04,
will receive allocations and Distributions pursuant to Article VI, Article VII and Article XII in respect of such
Common Units.

 

Section 5.04.
Negative Capital Accounts. In the event that any Member will have a deficit balance in its Capital Account, such Member will have
no obligation, during the term of the Company or upon dissolution or liquidation thereof, to restore such negative balance or make any
Capital Contributions to the Company by reason thereof, except as may be required by the Act or in respect of any negative balance resulting
from a withdrawal of capital or dissolution in contravention of this Agreement.

 

Section 5.05.
No Withdrawal. No Member will be entitled to withdraw any part of its Capital Account or to receive any Distribution from the Company,
except as provided in this Agreement. No Member will receive any interest, salary or drawing with respect to its Capital Contributions
or its Capital Account, except as otherwise provided in this Agreement. The Capital Accounts are maintained for the sole purpose of allocating
items of income, gain, loss and deduction among the Members and will have no effect on the amount of any Distributions to any Members,
in liquidation or otherwise.

 

[Intentionally Omitted]

 

Section 5.07. Modifications.
The foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply
with Section 1.704-1(b) of the Treasury Regulations and will be interpreted and applied in a manner consistent with such Treasury Regulations.
If the Committee reasonably determines that it is prudent to modify the manner in which the Capital Accounts (including debits or credits
relating to liabilities that are (i) secured by contributed or Distributed property, or (ii) assumed by the Company, any of its Subsidiaries
or any Members), or any increases or decreases to the Capital Accounts, are computed in order to comply with such Treasury Regulations,
the Committee will take all actions reasonably required to amend this Agreement to reflect such modifications, provided that any
such modification will not affect the economic arrangements of the Parties unless the Committee with the Requisite Approval determines
otherwise.

 

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ARTICLE VI

 ALLOCATIONS

 

Section 6.01. Allocation of Net Income and Net Loss.

 

(a) General
Allocation of Net Profit and Net Loss. After giving effect to the special allocations set forth in Section 6.01(b), Net Profit
or Net Loss, as the case may be, for any Fiscal Year or other period for which such allocation is made shall be allocated among the Members
in a manner such so as to ensure, to the extent possible, that the Capital Accounts of the Members as of the end of such period conform,
in the reasonable judgment of the Committee, with the economics of this Agreement in accordance with Section 7.02 and Section
12.03. The allocations made pursuant to this Section 6.01(a) are intended to comply with the provisions of Section 704(b) of
the Code and the Treasury Regulations thereunder and, in particular, to reflect the economic interests in the Company of the Members as
set forth in this Agreement, and this Section 6.01(a) shall be interpreted in a manner consistent with such intention.

 

(b) Special
Allocations. The Committee shall make special allocations in accordance with the provisions of the Treasury Regulations under Section
704 of the Code, minimum gain chargeback, including Member minimum gain chargeback, qualified income offset and gross income allocation
as they deem necessary in order to cause the allocations under Article VI to comply with the provisions of Section 704 of the Code and
the Treasury Regulations thereunder.

 

Section 6.02. Other Allocation Rules.

 

(a) For
purposes of determining the Net Profit, Net Loss or any other items applicable to any period, Net Profit, Net Loss and any other such
items shall be determined on a daily, monthly or other basis, as determined by the Committee in its reasonable discretion using any permissible
method under Section 706 of the Code and the Treasury Regulations promulgated thereunder.

 

(b) Except
as otherwise provided in this Agreement, all items of Company income, gain, loss, deduction and any other allocations not otherwise provided
for shall be allocated among the Members in the same proportions as they share Net Profit or Net Loss, as the case may be, for the Fiscal
Year or other period for which such allocation is made.

 

(c) In
accordance with Section 704(c) of the Code and the Treasury Regulations promulgated thereunder, income, gain, loss and deduction
with respect to any property contributed to the capital of the Company shall, solely for tax purposes, be allocated to the Members
so as to take account of the variation between the adjusted basis of such property to the Company for federal income tax purposes
and its initial value on the date of contribution to the Company as determined by the Committee in its reasonable discretion.
Allocations of income, gain, loss and deduction with respect to any such assets shall take into account any variation between the
adjusted basis of such asset for federal income tax purposes and its value in the same manner as under Section 704(c) of the Code
and the Treasury Regulations promulgated thereunder. Any elections or other decisions relating to such allocations shall be made by
the Committee in any manner that reasonably reflects the purpose and intention of this Agreement. Allocations pursuant to this Section
6.02(c) are solely for federal, state and local taxes and shall not affect, or in any way be taken into account in computing any
Member’s Capital Account or share of Net Profit, Net Loss or other items or distributions pursuant to any provision of this
Agreement.

 

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(d) All
elections, decisions and other matters concerning the allocation of profits, gains and losses among the Members, and accounting procedures,
not specifically and expressly provided for by the terms of this Agreement, shall be determined by the Committee in its sole discretion.

 

(e) If
the Committee determines that the manner in which the Members’ Capital Accounts are maintained should be modified, or that any particular
item of income, gain, loss, deduction or credit should be allocated in a manner other than as provided above, including with respect to
the redemption of any Units, the Committee may make the modification or the allocation.

 

Section 6.03.
Tax Allocations. Notwithstanding any provision of this Agreement to the contrary, each item of income, gain, loss, deduction or
credit as determined for U.S. federal income tax purposes shall be allocated in the same manner as the related items are allocated under
Article VI, provided that the Committee may adjust such allocations as may be necessary or desirable to ensure that such
allocations are in accordance with the interests of the Members in the Company, or otherwise comply with the applicable provisions of
the Code and Treasury Regulations (including, for the avoidance of doubt, Section 704(c) of the Code and the regulations promulgated thereunder).
All matters concerning allocations for U.S. federal, state and local income tax purposes (including accounting procedures) not expressly
provided for by the terms of this Agreement shall be determined in good faith by the Committee in a manner intended to satisfy the requirements
of the Code, Treasury Regulations and applicable provisions of the U.S. federal, state or local tax laws. Allocations pursuant to this
Section 6.03 are solely for purposes of federal, state and local taxes and will not affect, or in any way be taken into account
in computing, any Member’s Capital Account or share of Net Profit, Net Losses, Distributions or other items pursuant to any provisions
of this Agreement.

 

Section 6.04.
Allocations in Respect of Transferred Units. In the event of a Transfer during any Fiscal Year made in compliance with the provisions
of Article IX, Net Profit, Net Losses and other items of income, gain, loss and deduction of the Company attributable to such Units
for such Fiscal Year will be determined, except as reasonably determined by the Committee, using the interim closing of the books method
in accordance with applicable Treasury Regulations.

 

ARTICLE
VII

 DISTRIBUTIONS

 

Section 7.01. General.
Subject to Section 7.02 below, the Committee will have sole discretion regarding the amounts and timing of Distributions to
Members, including to decide to forego payment of Distributions in order to comply with Section 18-607 of the Act or to provide for
the retention and establishment of reserves of, or payment to third Persons of, such funds as it deems necessary with respect to the
reasonable business needs of the Company (which needs may include the payment or the making of provision for the payment when due of
the Company’s obligations, including present and anticipated debts and obligations, capital needs and expenses, the payment of
any management or administrative fees and expenses, and reasonable reserves for contingencies).

 

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Section 7.02.
Distributions. If at any time the Committee decides in its sole discretion that the Company shall make any Distributions to the
Members, such Distributions shall be distributed to the Members as follows:

 

(i) First,
to the holders of the Common Units and holders of the Capital Units in proportion to the respective unreturned Capital Contributions of
such Common Units and unreturned Capital Unit Participation Amount of such Capital Units until holders of Common Units and holders of
Capital Units have received aggregate Distributions pursuant to this Section 7.02(i) equal to their unreturned Capital Contributions
(with respect to the Common Units) and their unreturned Capital Unit Participation Amount (with respect to the Capital Units) as of the
date of such Distribution (and for the avoidance of doubt, any Distributions made under this Section 7.02(i) to the holders of
the Common Units shall be deemed as Capital Contributions returned to the holders of Common Units, and any Distributions made under this
Section 7.02(ii) to the holders of the Capital Units shall be deemed as Capital Unit Participation Amount returned to the holders of Capital
Units);

 

(ii) Second,
the remaining Distributions shall be allocated to holders of Common Units in proportion to their respective paid-in Capital Contributions
at the time of such Distribution.

 

Section 7.03. Withholding
Advances. Notwithstanding any provision of this Agreement to the contrary, the Committee is authorized (a) to withhold from
distributions to any Member or with respect to allocations to any Member, and to pay over to a federal, state or local government or
other taxing authority, any taxes required to be so withheld pursuant to the Code, or any corresponding provisions of any other
federal, state or local law (such amounts, “Withholding Taxes”), and (b) subject to obtaining any required
consents and approvals of any settlement agreement, pay any tax, penalty and interest imposed on the Company under Code Sections
6221 through 6241, and under any corresponding provisions of any other federal, state or local law (such amounts,
“Partnership Audit Liabilities”). If the Company and its Managers are obligated to pay such Withholding Taxes
because of a Member’s status or such Withholding Taxes are otherwise specifically attributable to a Member, such Member shall
reimburse the Company in full for the entire amount. The amount of any such (i) Withholding Taxes that are not specifically
attributable to a Member and (ii) Partnership Audit Liabilities shall be allocated among the Members as reasonably determined by the
Committee. Each Member shall indemnify and hold the Company and the other Members harmless against all claims, liabilities and
expenses relating to the Company’s obligation to pay any taxes, interest, penalties or additional amounts allocable to such
Member. Without limiting the generality of the foregoing, to the extent a Member has failed to reimburse the Company pursuant to
this Section 7.03 within fifteen (15) days following the issuance by the Company or any Member of written notice to a Member
of the portion of any Withholding Taxes or Partnership Audit Liabilities that are allocable to such Member, the Company shall have
the right to file an action against such Member in order to obtain full and immediate payment of such amount together with interest
thereon, as well as the reasonable costs of collection. In addition to any other remedies available to the Company, the Company
shall apply all distributions or payments that would otherwise be made to such Member toward payments due from such Member under
this Section 7.03, which payments or distributions shall be applied until such amount (including interest thereon and any
costs of collection) is repaid in full. Any such payments shall be treated as if the Company made Distributions (or payments, as the
case may be) to the Member and such Member repaid such amounts to the Company. The foregoing provisions of this Section 7.03
shall survive any termination of this Agreement, the withdrawal of any Member or the Transfer of any Member’s interest in the
Company.

 

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Section 7.04.
Tax Relief Distributions. Notwithstanding any other provision of this Agreement to the contrary, to the extent that the Company
has Distributable Cash, the Company may, upon Requisite Approval of the Committee, make pro rata Distributions to each Member based on
its Percentage Interest at least equal to such Member’s Cumulative Tax Liability less the cumulative amount of distributions received
by such Member under Section 7.02 (each a “Tax Distribution”). Such Tax Distributions, to the extent paid, shall
be made on a quarterly basis or at such earlier times as the Managers deem appropriate and shall be treated as advances of, or offsets
to, future distributions under this Agreement (as determined by the Committee). The term “Cumulative Tax Liability”
means the product of (i) the cumulative excess of taxable income over taxable losses or tax credits (to the extent usable against such
income) of the Company allocated to a Member pursuant to this Agreement and (ii) the highest combined marginal federal, state and local
tax rates (including any tax on “net investment income”) applicable at the time of the relevant allocation to any Member,
for an individual or corporation resident in New York City, New York (taking into account any tax imposed on “net investment income”
as well as the deductibility of state and local income taxes for U.S. federal income tax purposes). Any and all Tax Distributions under
this Section 7.04 shall be treated as advances of distributions and shall be taken into account in determining the amount of distributions
to the Members under Section 7.02 and Article XII.

 

Section 7.05. Distributions in Kind.

 

(a) Subject
to any requirements set forth in Section 7.02, the Committee (including the Requisite Approval) is hereby authorized, in its sole
discretion, to make Distributions to the Members in the form of securities or other property held by the Company; provided, however,
that Tax Distributions will only be made in cash. In any non-cash Distribution, the securities or property so Distributed will be Distributed
among the Members in the same proportion and priority as cash equal to the Fair Market Value of such securities or property would be Distributed
among the Members pursuant to Section 7.02.

 

(b) Any
Distribution of securities will be subject to such conditions and restrictions as the Committee determines are required or advisable
to ensure compliance with the Act. In furtherance of the foregoing, the Committee may require that the Members execute and deliver
such documents as the Committee may deem necessary or appropriate to ensure compliance with all federal and state securities laws
that apply to such Distribution and any further Transfer of the Distributed securities, and may appropriately legend the
certificates that represent such securities to reflect any restriction on Transfer with respect to such laws.

 

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ARTICLE
VIII

MANAGEMENT

 

Section 8.01.
Establishment of the Committee. A board of managers of the Company (the “Committee”) is hereby established and,
except to the extent otherwise expressly provided in this Agreement, is vested with all rights, powers, obligations and authority to manage
the business and affairs of the Company. The Committee will be comprised of natural Persons (each such Person, a “Manager”)
who will be appointed in accordance with the provisions of Section 8.02. The business and affairs of the Company will be managed,
operated and controlled by or under the direction of the Committee, and the Committee will have, and is hereby granted, the full and complete
power, authority and discretion for, on behalf of and in the name of the Company, to take such actions as it may in its sole discretion
deem necessary or advisable to carry out any and all of the objectives and purposes of the Company, subject only to the terms of this
Agreement. Each of the members of the Committee will be the “Manager” of the Company as provided in the Act, including acting
for and binding the Company. Subject to the provisions set forth herein, the Committee will have the authority to undertake all actions
on behalf of the Company which the Company is authorized to undertake, including to make Distributions and sell assets of the Company,
and will, subject to the provisions set forth herein, have the exclusive right to manage the business and affairs of the Company, and
will, subject to the provisions set forth herein, delegate such management duties and responsibilities to such other Person or Persons
designated by it as it may determine. For the avoidance of any doubt and notwithstanding anything to the contrary contained elsewhere
in this Agreement, all decisions of the Committee will be made subject to the Requisite Approval of the Committee.

 

Section 8.02. Committee Composition; Voting; Vacancies.

 

(a) The
number of Managers constituting the Committee shall be eight as of the date hereof, but may be otherwise determined by the Requisite Approval
of the Committee. The Committee shall be comprised as follows:

 

(i) subject
to Section 8.02(e) below, such number of Managers determined by the Committee to be appointed by the Requisite Approval of the
Committee (the “Ordinary Managers”); and the term of the Ordinary Managers shall be determined by the Committee; and

 

(ii) one
individual appointed by Ms. Chaoying Deng (the “Designated Member”) and such individual shall be a U.S. citizen (the
“Managing Partner”) ; the Managing Partner may continue to serve as Managing Partner until his/her resignation or removal
by the Designated Member; for the avoidance of doubt, the Designated Member may appoint herself as the Managing Partner provided
that the Designated Member is a

U.S. citizen.

 

(b) The
removal of the Ordinary Managers from the Committee or the filling of any vacancy on the Committee resulting therefrom shall only be
authorized and carried out by the Requisite Approval of the Committee. For the avoidance of doubt, the Managing Partner may only be
removed by the Designated Member.

 

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(c) If,
as a result of death, disability, retirement, resignation, removal or otherwise of the Managing Partner, there shall exist or occur any
vacancy on the Committee (the “Managing Partner Vacancy”), the Designated Member may appoint another individual (including
herself/himself, but in any event a U.S. citizen) to fill such Managing Partner Vacancy. The filling of the Managing Partner Vacancy by
the Designated Member pursuant to this Section 8.02(d) shall not require the Requisite Approval of the Committee or the approval
of any other Members. If at any time it is determined, under applicable law or otherwise, that the other Members and/or the Committee
are entitled to vote on the filling of the Managing Partner Vacancy, each Manager and/or Member, as applicable, shall vote in favor of
the individual selected by the Designated Member. If any Manager or Member, as applicable, fails to vote in favor of such individual to
fill the Managing Partner Vacancy, such Manager or Member, as applicable, shall, upon such failure to so vote, be deemed immediately to
have granted to the Designated Member a proxy to vote solely for the filling of the Managing Partner Vacancy. Each proxy granted hereby,
including any successive proxy, if necessary, is given to secure the performance of an obligation hereunder, coupled with an interest,
and shall be irrevocable until such obligation is performed.

 

(d) If,
as a result of death, disability, retirement, resignation, removal or otherwise of any Ordinary Manager, there shall exist or occur any
vacancy on the Committee, the remaining Managers on the Committee entitled under this Section 8.02 to appoint such Manager whose
death, disability, retirement, resignation or removal resulted in such vacancy, subject to the provisions of Section 8.02(d), may
appoint another individual to fill such vacancy and serve as a Manager on the Committee or reduce the number of Managers upon the Requisite
Approval of such remaining Managers.

 

(e) For
the avoidance of doubt, to the extent the Managing Partner resigns from the position of the Managing Partner, unless she indicates otherwise,
such resigned Managing Partner shall automatically become an Ordinary Manager without any further action of the Committee or other Members.

 

(f) The
Managers as of the Effective Date are: Yueting Jia, Matthias Aydt, Jiawei Wang, Tin Mok, Prashant Gulati, Chaoying Deng, Philip Bethell
and Dr. Carsten Breitfeld. Among them, Chaoying Deng has been designated as the Managing Partner.

 

Section 8.03. [Intentionally
Omitted]

 

Section 8.04. Meetings.

 

(a) Generally.
The Committee will meet at such time and at such place as any Manager or the Secretary may designate. Meetings of the Committee may
be held either in person or by means of telephone or video conference or other communications device that permits all Managers
participating in the meeting to hear each other, at the offices of the Company or such other place (either within or outside the
State of Delaware) as may be determined from time to time by the Committee. Written notice of each meeting of the Committee will be
given to each Manager at least one (1) Business Day prior to each such meeting. Any Manager may waive such notice with respect to
himself.

 

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(b) Attendance
and Waiver of Notice. Attendance of a Manager at any meeting will constitute a waiver of notice of such meeting, except where a Manager
attends a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully
called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Committee need
be specified in the notice or waiver of notice of such meeting.

 

Section 8.05. Quorum; Manner of Acting.

 

(a) Quorum.
The presence of a majority of the Managers then in office will constitute a “Quorum”
for the transaction of business of the Committee. The Manager who has no voting right should not be taken into account in determining
a Quorum.

 

(b) Participation.
A Manager may vote or be present at a meeting either in person or by proxy, and such proxy may be granted in writing, by means of Electronic
Transmission or as otherwise permitted by the Act.

 

(c) Binding
Act. The Committee shall act by the Requisite Approval. With respect to any action to be taken by the Committee, each Manager will
have one vote, except that when there are equal votes on each side, the Managing Partner shall have a casting vote.

 

Section 8.06.
Action By Written Consent. Notwithstanding anything herein to the contrary, any action of the Committee (or any committee of the
Committee, if applicable) may be taken without a meeting if a written consent, by means of Electronic Transmission or as otherwise permitted
by the Act, executed by all of the Managers then in office.

 

Section 8.07. Compensation; Reimbursement; No Employment.

 

(a)
Each Manager will not be compensated for his or her services as a Manager unless otherwise determined by the Committee, but will be reimbursed
for his or her reasonable out-of-pocket expenses incurred in the performance of his or her duties as a Manager, pursuant to such policies
as from time to time established by the Committee. Nothing contained in this Section 8.07 will be construed to preclude any Manager
from serving the Company in any other capacity and receiving reasonable compensation for such services.

 

(b) This
Agreement does not, and is not intended to, confer upon any Manager any rights with respect to employment by the Company, and nothing
herein should be construed to have created any employment agreement with any Manager.

 

Section 8.08.
Committees. The Committee may, by Requisite Approval, designate from among the Managers one or more committees (a “Lower
Committee”); provided, however, that in no event may the Committee designate any Lower Committee with all of the authority
of the Committee.

 

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Section 8.09. Executive Team; Officers.

 

(a) The
Committee may, at such time as it deems advisable, appoint individuals as officers of the Company (collectively, the “Officers”
and each individually, an “Officer”) as it deems necessary or desirable to carry on the day-to-day business and operations
of the Company under the supervision of the Committee and the Committee may delegate to such Officers such power and authority as the
Committee deems advisable. No Officer is required to be a Member or Manager. Any individual may hold two or more offices of the Company.
Each Officer will hold office until his or her successor is designated by the Committee or until his or her earlier death, resignation
or removal. Any Officer may resign at any time upon written notice to the Committee. Any Officer may be removed by the Committee with
or without cause at any time. A vacancy in any office occurring because of death, resignation, removal or otherwise, may, but need not,
be filled by the Committee.

 

(b) Pursuant
to Section 8.09(a), the Committee may at such times as it deems advisable elect a Secretary as an Officer of the Company. The duties
and powers of the Secretary shall be as follows:

 

(i) The
Secretary shall attend all meetings of the Members, the Committee, and any Lower Committee, and shall prepare and maintain minutes or
records of proceedings of all such meetings in a book to be kept for that purpose. The Secretary shall give, or cause to be given, such
notice as may be required of all meetings of the Members, the Committee, and any Lower Committees, shall authenticate and certify records
and proceedings of the Company, shall keep accurate membership records for the Company, and shall perform such other duties as may be
assigned by the Committee or any superior Officer so designated by the Committee. The Secretary shall be authorized to bind the Company
and enter into any material agreements on behalf of the Company, upon the Requisite Approval of the Committee. Any material agreement
that is executed by the Secretary on behalf of the Company without the prior Requisite Approval of the Committee shall be considered null
and void.

 

(ii)
The initial Secretary shall be Nan Yang.

 

Section 8.10.
No Personal Liability. Except as otherwise provided in the Act or expressly in this Agreement (including Section 14.02),
no Officer or Manager will be obligated personally for any debt, obligation or liability of the Company or of any of its Subsidiaries,
whether arising in contract, tort or otherwise, solely by reason of being an Officer or Manager.

 

ARTICLE IX

TRANSFER

 

Section 9.01. General Restrictions on Transfer.

 

(a) No
Member may pledge, transfer or assign, directly or indirectly, all or any portion of their Membership Interests in the Company without
the Requisite Approval of the Committee.

 

(b) If
any Transfer or issuance would cause the Company to be considered a “publicly traded partnership” under Section 7704(b)
of the Code within the meaning of Treasury Regulation Section 1.7704-1(h)(1)(ii), including the look-through rule in Treasury
Regulation Section 1.7704-1(h)(3), each Member agrees that it will not, directly or indirectly, consummate any such Transfer of any
such Units.

 

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ARTICLE
X

COVENANTS

 

Section 10.01. Confidentiality.

 

(a) Each
Member acknowledges that during the term of this Agreement, such Member may have access to and become acquainted with trade secrets, proprietary
information and confidential information belonging to the Company and its Subsidiaries that are not generally known to the public, including
information concerning business plans, financial statements and other information provided pursuant to this Agreement, operating practices
and methods, expansion plans, strategic plans, marketing plans, contracts, customer lists or other business documents which the Company
treats as confidential, in any format whatsoever (including oral, written, electronic or any other form or medium) (collectively, including
any materials containing such information, “Confidential Information”). Subject
to Section 10.01(b) and 10.01(c), no Member shall, during the term of this Agreement, directly or indirectly disclose, communicate or
make available to any Person (including but not limited to the Company’s Subsidiaries but except for the subsidiary directly and
indirectly owned not less than 80% by the Company) other than Persons agreed by the Company with the prior written consent of the Company,
for any reason or purpose whatsoever, any Confidential Information, other than with the prior written consent of the Company.

 

(b)
Nothing contained in Section 10.01(a) will prevent any Member and its Representatives from disclosing Confidential
Information (but only to the extent necessary): (i) upon the order of any court or administrative agency; (ii) upon the request or
demand of any regulatory agency or authority having jurisdiction over such Member; (iii) to the extent compelled by legal process or
required or requested pursuant to subpoena, interrogatories or other discovery requests; (iv) to the extent necessary in connection
with the exercise of any remedy hereunder; (v) to other Members (vi) to such Member’s Representatives who, in the reasonable
judgment of such Member, need to know such Confidential Information for a Company related purpose and are subject to customary
confidentiality obligations substantially similar to those set forth herein; (vii) to any potential transferee in connection with a
proposed Transfer of Units from such Member, as long as such Transferee is subject to customary confidentiality obligations
substantially similar to those set forth herein and the proposed Transfer has been approved by the Committee, (viii) to perform
their duties as a Manager, Officer, employee, consultant or other service provider of the Company or to comply with their legal or
fiduciary duty owed to the Company and/or its Subsidiaries, provided, however, that in the case of clause (i), (ii) or (iii),
such Member will notify the Company of the proposed disclosure as far in advance of such disclosure as practicable and use
reasonable efforts to ensure that any Confidential Information so disclosed is accorded confidential treatment satisfactory to the
Company, when and if available.

 

(c) The
restrictions of Section 10.01(a) will not apply to Confidential Information that: (i) is or becomes generally available to
the public other than as a result of a disclosure by a Member in violation of this Agreement; (ii) is or becomes available to a
Member or any of its Representatives on a non-confidential basis prior to its disclosure to the receiving Member and any of its
Representatives in compliance with this Agreement; (iii) is or has been independently developed or conceived by such Member without
use of Confidential Information; or (iv) becomes available to the receiving Member or any of its Representatives on a non-
confidential basis from a source other than the Company, any other Member or any of their respective Representatives; provided, however,
that such source is not known by the recipient of the Confidential Information to be bound by a confidentiality agreement with the
Company, any Member of the Company, or any of their respective Representatives.

 

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ARTICLE XI

INFORMATION RIGHTS; ACCOUNTING;
TAX MATTERS

 

Section 11.01.
Inspection Rights; Information Rights. Upon reasonable notice from a Member, the Company will, and will cause its Officers and
employees to, afford each Member and his, her or its Representatives reasonable access during normal business hours to (i) the Company’s
and its Subsidiaries’ properties, offices, plants and other facilities, (ii) the corporate, financial and similar records, reports
and documents of the Company and its Subsidiaries, including all books and records, minutes of proceedings, internal management documents,
reports of operations, reports of adverse developments, copies of any management letters and communications with Members or Managers,
and to permit each holder of Units and its Representatives to examine such documents and make copies thereof, and (iii) the Company’s
and its Subsidiaries’ Officers, senior employees and accountants, and to afford each holder of Units and its Representatives the
opportunity to discuss and advise on the affairs, finances and accounts of the Company and its Subsidiaries with their Officers, senior
employees and accountants (and the Company hereby authorizes said accountants to discuss with such holder of Units and its Representatives
such affairs, finances and accounts).

 

Section 11.02. Partnership Representative;.

 

(a) Partnership
Representative. Qing Ye shall be designated the “partnership representative” (the “Partnership Representative”)
as defined in Code Section 6223 and the Company and the Members shall complete any necessary actions (including executing any requested
certificates or other documents) to effectuate such designation. The Partnership Representative may make any elections available to be
made as Partnership Representative, and shall make the election described in Code Section 6226(a)(1) (as in effect following the effective
date of its amendment by Section 1101 of the Bipartisan Budget Act of 2015) to impose any adjustment to taxes proposed by the IRS with
respect to the Company on the Persons that held Membership Interests during the tax period(s) of such proposed adjustment, in accordance
with each such Person’s distributive share of the Company’s net income for such tax period(s).

 

(b) The
Partnership Representative shall receive no compensation for its services as such. All reasonable and documented third party costs
and expenses incurred by the Partnership Representative in performing his, her or its duties as such (including legal and accounting
fees and expenses) shall be borne by the Company. Nothing herein shall be construed to restrict the Company from engaging an
accounting firm to assist the Partnership Representative in discharging his, her or its duties hereunder. The Company shall
indemnify and hold harmless the Partnership Representative with respect to any proceeding brought against it in connection with any
proceeding related to the Partnership Representative acting in its capacity as such, except with respect to actions in which the
Partnership Representative is found to have acted fraudulently or willfully negligent with respect to its rights and
responsibilities as the Partnership Representative.

 

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Section 11.03. Other Tax Matters.

 

(a) Consistent
Tax Reporting. Each Member agrees that such Member will not treat any Company item inconsistently on such Member’s federal,
state, foreign or other income tax return with the treatment of the item on the Company’s return.

 

(b) Tax
Returns. At the expense of the Company, the Managers will endeavor to cause the complete and accurate preparation and timely filing
(including extensions) of all tax returns required to be filed by the Company pursuant to the Code as well as all other required tax returns
in each jurisdiction in which the Company and its Subsidiaries own property or do business. As soon as reasonably possible after the end
of each Fiscal Year, and no later than one hundred twenty (120) days after the end of such Fiscal Year, the Managers will cause to be
delivered to each Person who was a Member at any time during such Fiscal Year, IRS Schedule K-1 to Form 1065 and such other information
with respect to the Company as may be necessary for the preparation of such Person’s federal, state and local income tax returns
for such Fiscal Year. Upon request of any Member, the Company will provide tax data in electronic form as reasonably requested within
one hundred twenty (120) days after the end of such Fiscal Year. The Committee will have the right to select the external firm that prepares
the Company’s tax returns.

 

Section 11.04.
Company Funds. All funds of the Company will be deposited in its name, or in such name as may be designated by the Committee, in
such checking, savings or other accounts, or held in its name in the form of such other investments as will be designated by the Committee
with the Requisite Approval. The funds of the Company will not be commingled with the funds of any other Person. All withdrawals of such
deposits or liquidations of such investments by the Company will be made exclusively upon the signature or signatures of such Officer
or Officers as the Committee may designate.

 

ARTICLE
XII

DISSOLUTION AND LIQUIDATION

 

Section 12.01.
Events of Dissolution. The Company will be dissolved and its affairs wound up only upon the occurrence of any of the following
events (each, a “Dissolution Event”):

 

(a) An
election to dissolve the Company made by the Requisite Approval of the Committee;

 

(b) The
sale, exchange, involuntary conversion, or other disposition or Transfer of all or substantially all of the assets of the Company, other
than a transaction that constitutes a Change of Control; or

 

(c)
The entry of a decree of judicial dissolution under Section 18-802 of the Act.

 

Section 12.02. Effectiveness of Dissolution.
Dissolution of the Company will be effective on the day on which the event described in Section 12.01 occurs, but the Company
will not terminate until the winding up of the Company has been completed, the assets of the Company have been distributed as
provided in Section 12.03 and the Certificate of Formation will have been cancelled as provided in Section 12.04.

 

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Section 12.03.
Liquidation. If the Company is dissolved pursuant to Section 12.01, the Company will be liquidated and its business and
affairs wound up in accordance with the Act and the following provisions:

 

(a) Liquidator.
The Committee or, if the Committee is unable to do so, a Person selected by the Requisite Approval, will act as liquidator to wind up
the Company (the “Liquidator”). The Liquidator will have full power and authority to sell, assign, and encumber any
or all of the Company’s assets and to wind up and liquidate the affairs of the Company in an orderly and business-like manner.

 

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

 

(c) Distribution
of Proceeds. The Liquidator will liquidate the assets of the Company and Distribute the proceeds of such liquidation in the following
order of priority:

 

(i) first,
to the payment of all of the Company’s debts and liabilities to its creditors (including Members, if applicable) and the expenses
of liquidation (including sales commissions incident to any sales of assets of the Company);

 

(ii) second,
to the establishment of and additions to reserves that are determined by the Committee in its sole discretion to be reasonably necessary
for any contingent unforeseen liabilities or obligations of the Company; and

 

(iii)
third, to the Members in accordance with Section 7.02.

 

(d) Discretion
of Liquidator. Notwithstanding the provisions of Section 12.03(c) that require the liquidation of the assets of the Company,
but subject to the order of priorities set forth in Section 12.03(c), if upon dissolution of the Company the Liquidator determines
that an immediate sale of part or all of the Company’s assets would be impractical or could cause undue loss to the Members, the
Liquidator may defer the liquidation of any assets except those necessary to satisfy Company liabilities and reserves, and may, in its
absolute discretion, Distribute to the Members, in lieu of cash, as tenants in common and in accordance with the provisions of Section
12.03(c), undivided interests in such Company assets as the Liquidator deems not suitable for liquidation. Any such Distribution
in kind will be subject to such conditions relating to the disposition and management of such properties as the Liquidator deems reasonable
and equitable and to any agreements governing the operating of such properties at such time. For purposes of any such Distribution, any
property to be Distributed will be valued at its Fair Market Value.

 

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Section 12.04.
Cancellation of Certificate of Formation. Upon completion of the Distribution of the assets of the Company as provided in Section
12.03(c) hereof, the Company will be terminated and the Liquidator will cause the cancellation of the Certificate of Formation in
the State of Delaware and of all qualifications and registrations of the Company as a foreign limited liability company in jurisdictions
other than the State of Delaware and will take such other actions as may be necessary to terminate the Company.

 

Section 12.05.
Survival of Rights, Duties and Obligations. Dissolution, liquidation, winding up or termination of the Company for any reason will
not release any Party from (a) any Loss which at the time of such dissolution, liquidation, winding up or termination already had accrued
to any other Party or which thereafter may accrue in respect of any act or omission prior to such dissolution, liquidation, winding up
or termination, or (b) any obligation pursuant to Section 10.01, which will survive the dissolution, liquidation, winding up or
termination of the Company for any reason. For the avoidance of doubt, none of the foregoing will replace, diminish or otherwise adversely
affect any Member’s right to indemnification pursuant to Section 13.03.

 

Section 12.06.
Recourse for Claims. Each Member will look solely to the assets of the Company for all Distributions with respect to the Company,
such Member’s Capital Account, and such Member’s share of Net Profit, Net Loss and other items of income, gain, loss and deduction,
and will have no recourse therefor (upon dissolution or otherwise) against the Committee, the Liquidator or any other Member.

 

ARTICLE
XIII

EXCULPATION AND INDEMNIFICATION

 

Section 13.01. Exculpation of Managers.

 

(a) Standard
of Care. No Manager will be liable to the Company, any other Manager or any other Person bound by this Agreement for any Loss by reason
of any action taken or omitted to be taken by such Manager in good-faith reliance on the provisions of this Agreement, so long as such
action or omission does not constitute fraud or willful misconduct by such Manager.

 

(b) Good
Faith Reliance. A Manager will be fully protected in relying in good faith upon the records of the Company and upon such information,
opinions, reports or statements (including financial statements and information, opinions, reports or statements as to the value or amount
of the assets, liabilities, Net Profit or Net Losses of the Company or any facts pertinent to the existence and amount of assets from
which Distributions might properly be paid) of the following Persons or groups: (i) another Manager; (ii) one or more Officers; (iii)
any attorney, independent accountant, appraiser or other expert or professional employed or engaged by or on behalf of the Company, in
each case as to matters that such relying person reasonably believes to be within such other Person’s professional or expert competence;
or (iv) any other Person selected in good faith by or on behalf of the Company, in each case as to matters that such relying Person reasonably
believes to be within such other Person’s professional or expert competence.

 

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Section 13.02. Liabilities and Duties of Managers.

 

(a) To the
extent that, at law or in equity, any Member, Manager or observer to the Committee has duties (in each case other than duties arising
as an employee or officer of the Company or a Subsidiary of the Company) and liabilities relating to the Company or to any other Member,
the Company and each other Member hereby waives such duties to the fullest extent permitted under applicable laws and acknowledges that
the Company and such Member shall only be entitled to enforce the express provisions in this Agreement or any other agreement between
the Company or its Subsidiaries, on the one hand, and any such Member, Manager or observer to the Committee, on the other hand. No Member,
Manager (in each case other than duties arising as an employee or officer of the Company or a Subsidiary of the Company) or observer to
the Committee shall be liable to the Company or to any other Member for such Person’s reliance on the express provisions of this
Agreement (or for exercising its rights hereunder for its own best interests) or for any approval or authorization granted by the Company
or any other Member in connection therewith. The provisions of this Agreement are agreed by the Members, to the fullest extent permitted
by applicable law, to replace any other express or deemed duties or liabilities of any Member, Manager (in each case other than duties
arising as an employee or officer of the Company or a Subsidiary of the Company) or observer to the Committee (including any fiduciary,
corporate opportunity or similar duties), other than liability for any act or omission that constitutes fraud or an intentional breach.

 

Section 13.03. Indemnification.

 

(a) Indemnification.
To the fullest extent permitted by the Act, as the same now exists or may hereafter be amended, substituted or replaced (but, in the case
of any such amendment, substitution or replacement only to the extent that such amendment, substitution or replacement permits the Company
to provide broader indemnification rights than the Act permitted the Company to provide prior to such amendment, substitution or replacement),
the Company will indemnify, hold harmless, defend, pay and reimburse any Manager against any and all losses, claims, damages, judgments,
fines or liabilities, including reasonable legal fees or other expenses incurred in investigating or defending against such losses, claims,
damages, judgments, fines or liabilities, and any amounts expended in settlement of any claims (collectively, “Losses”)
to which such Manager may become subject by reason of:

 

(i) Any
act or omission or alleged act or omission performed or omitted to be performed on behalf of the Company, any Member or any direct or
indirect Subsidiary of the foregoing in connection with the business of the Company or any of its Subsidiaries; or

 

(ii) The
fact that such Manager is or was acting in connection with the business of the Company as a partner, member, stockholder, controlling
Affiliate, manager, director, officer, employee or agent of the Company, any Member, or any of their respective controlling Affiliates,
or that such Manager is or was serving at the request of the Company as a partner, member, manager, director, officer, employee or agent
of any Person including the Company or any of its Subsidiaries;

 

provided, however, that (x)
such Manager acted in good faith and in a manner believed by such Manager to be in, or not opposed to, the best interests of the
Company and, with respect to any criminal proceeding, had no reasonable cause to believe his or her conduct was unlawful, and
(y) such Manager’s conduct did not constitute fraud or willful misconduct, in either case as determined by a final,
nonappealable order of a court of competent jurisdiction. In connection with the foregoing, the termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, will not, of
itself, create a presumption that the Manager did not act in good faith or, with respect to any criminal proceeding, had reasonable
cause to believe that such Manager’s conduct was unlawful, or that the Manager’s conduct constituted fraud or willful
misconduct; provided, further, that, unless the Committee otherwise determines, no Person will be entitled to
indemnification hereunder with respect to a proceeding initiated by such Person or with respect to a proceeding between such Person
on the one hand and any of the Company or its Subsidiaries on the other.

 

(b) Reimbursement.
The Company will promptly reimburse (and/or advance to the extent reasonably required) each Manager for reasonable legal or other expenses
(as incurred) of such Manager in connection with investigating, preparing to defend or defending any claim, lawsuit or other proceeding
relating to any Losses for which such Manager may be indemnified pursuant to this Section 13.03; provided, however,
that if it is finally judicially determined that such Manager is not entitled to the indemnification provided by this Section 13.03,
then such Manager will promptly reimburse the Company for any reimbursed or advanced expenses.

 

(c)
Entitlement to Indemnity. The indemnification provided by this Section 13.03 will not be deemed exclusive of any other
rights to indemnification to which those seeking indemnification may be entitled under any agreement or otherwise. The provisions of
this Section 13.03 will continue to afford protection to each Manager regardless of whether such Manager remains in the position
or capacity pursuant to which such Manager became entitled to indemnification under this Section 13.03 and will inure to the benefit
of the executors, administrators, legatees and distributees of such Manager.

 

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(d) Insurance.
To the extent available on commercially reasonable terms, the Company will purchase and maintain, at its expense as determined by
the Committee (including the Requisite Approval), insurance to cover Losses covered by the foregoing indemnification provisions and
to otherwise cover Losses for any breach or alleged breach by any Manager of such Manager’s duties in such amount and with
such deductibles as the Committee may determine; provided, however, that the failure to obtain such insurance will not
affect the right to indemnification of any Manager under the indemnification provisions contained herein, including the right to be
reimbursed or advanced expenses or otherwise indemnified for Losses hereunder. If any Manager recovers any amounts in respect of any
Losses from any insurance coverage, then such Manager will, to the extent that such recovery is duplicative, reimburse the Company
for any amounts previously paid to such Manager by the Company in respect of such Losses. The Company hereby acknowledges that the
Managers may have certain rights to indemnification, advancement of expenses and/or insurance provided by the Parties or their
respective Affiliates (excluding the Company and its Subsidiaries). The Company hereby agrees, on behalf of itself and its
Subsidiaries, (i) that it is an indemnitor of first resort (i.e., its obligations to each of the Managers are primary and any
obligation of the Parties or their respective Affiliates to advance expenses or to provide indemnification for the same expenses or
liabilities incurred by or on behalf of any of the Managers is secondary), (ii) that it will be required to advance the full amount
of expenses incurred by or on behalf of each of the Managers and will be liable for the full amount of all Losses to the extent
legally permitted and as required by the terms of this Agreement (or, to the extent applicable, the Act), without regard to any
rights such Managers may have against the Parties or their respective Affiliates (including under director and officer insurance
policies), and (iii) that it irrevocably waives, relinquishes and releases the Parties and their respective Affiliates from any and
all claims for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no
advancement or payment by the Parties or their respective Affiliates on behalf of a Managers with respect to any claim for which a
Manager has sought indemnification from the Company or any Subsidiary of the Company will affect the foregoing, and the Parties and
their respective Affiliates will have a right of contribution and/or be subrogated to the extent of such advancement or payment to
all of the rights of recovery of a Manager against the Company or any Subsidiary of the Company. The Company and each of the
Managers agree that the Parties and their respective Affiliates are express third-party beneficiaries of the terms of this Section
13.03(d).

 

(e) Funding
of Indemnification Obligation. Notwithstanding anything contained herein to the contrary, any indemnity by the Company relating to
the matters covered in this Section 13.03 will be provided out of and to the extent of Company assets only, and no Member (unless
such Member otherwise agrees in writing) will have personal liability on account thereof or will be required to make additional Capital
Contributions to help satisfy such indemnity by the Company.

 

(f) Savings
Clause. If this Section 13.03 or any portion hereof will be invalidated on any ground by any court of competent jurisdiction,
then the Company will nevertheless indemnify and hold harmless each Manager pursuant to this Section 13.03 to the fullest extent
permitted by any applicable portion of this Section 13.03 that will not have been invalidated and to the fullest extent permitted
by Delaware law.

 

(g) Amendment.
The provisions of this Article XIII may be amended or repealed in accordance with Section 14.09; provided, however,
that no amendment or repeal of such provisions that adversely affects the rights of a Manager under this Article XIII with respect
to his or her acts or omissions at any time prior to such amendment or repeal, will apply to such Manager without his or her consent.

 

(h) The
provisions of this Section 13.03 will be a contract between the Company, on the one hand, and each Manager who served in such capacity
at any time while this Section 13.03 is in effect, on the other hand, pursuant to which the Company and each such Manager intend
to be legally bound. No amendment, modification or repeal of this Section 13.03 that adversely affects the rights of a Manager
to indemnification for Losses incurred or relating to a state of facts existing prior to such amendment, modification or repeal will apply
in such a way as to eliminate or reduce such Manager’s entitlement to indemnification for such Losses without the Manager’s
prior written consent.

 

Section 13.04. Survival.
The provisions of this Article XIV will survive the dissolution, liquidation, winding up and termination of the Company.

 

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ARTICLE
XIV

MISCELLANEOUS

 

Section 14.01.
Expenses. Except as otherwise expressly provided herein, all costs and expenses, including fees and disbursements of counsel, financial
advisors and accountants, incurred in connection with the preparation and execution of this Agreement, or any amendment or waiver hereof,
and the transactions contemplated hereby will be paid by the Party incurring such costs and expenses.

 

Section 14.02.
Further Assurances. In connection with this Agreement and the transactions contemplated hereby, the Company and each Member hereby
agree, at the request of the Company or any other Member, to execute and deliver such additional documents, instruments, conveyances and
assurances and to take such further actions as may be required to carry out the provisions hereof and give effect to the transactions
contemplated hereby.

 

Section 14.03.
Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder will be in writing and will
be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if
sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with
confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal
business hours of the recipient; or (d) on the third (3rd) day after the date mailed, by certified or registered mail, return receipt
requested, postage prepaid. Such communications must be sent to the respective Parties at the following addresses (or at such other address
for a Party as will be specified in a notice given in accordance with this Section 14.03):

 

	 	If to the Company:	 	FF Global Partners LLC 

3655 Torrance Blvd	 
	 	 	 	Suite 361-362	 
	 	 	 	Torrance CA 90503 

Attention: Chaoying Deng	 
	 	 	 	 	 
	 	with a copy to:	 	O’Melveny & Myers	 
	 	 	 	Plaza 66, Tower 1, 37th Floor	 
	 	 	 	1266 Nanjing Road West, Shanghai China 200040	 
	 	 	 	Attention: Walker Wallace	 
	 	 	 	E-mail: wwallace@omm.com	 

 

If to a Member, to such Member’s respective mailing
address as set forth on the Members Schedule.

 

Section 14.04.
Headings. The headings in this Agreement are inserted for convenience or reference only and are in no way intended to describe,
interpret, define, or limit the scope, extent or intent of this Agreement or any provision of this Agreement.

 

Section
14.05. Severability. If any term or provision of this Agreement is held to be invalid, illegal or unenforceable under law of
the State of Delaware, such invalidity, illegality or unenforceability will not affect any other term or provision of this Agreement
or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or
other provision is invalid, illegal or unenforceable, the Parties will negotiate in good faith to modify this Agreement so as to
effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

    32

     

    

 

Section 14.06.
Entire Agreement. This Agreement, together with the Certificate of Formation, and all related Annexes, Exhibits and Schedules,
constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein and therein, and supersedes
all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such
subject matter. To the extent there is any conflict or inconsistency between the terms of this Agreement and any other agreements entered
or to be entered into by and between any Member and the Company, this Agreement shall prevail.

 

Section 14.07.
Successors and Assigns. Subject to the restrictions on Transfers set forth herein, this Agreement will be binding upon and will
inure to the benefit of the Parties and their respective heirs, executors, administrators, successors and assigns.

 

Section 14.08.
No Third-Party Beneficiaries. Except as provided in Article XIV, which will be for the benefit of and enforceable by Managers
as described therein, this Agreement is for the sole benefit of the Parties (and their respective heirs, executors, administrators, successors
and assigns) and nothing herein, express or implied, is intended to or will confer upon any other Person, including any creditor of the
Company, any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section 14.09.
Amendment. The provisions of this Agreement may be amended or waived at any time only in writing, which is executed by the Committee
members representing the Requisite Approval of the Committee.

 

Section 14.10.
Company Counsel. In connection with the negotiations of this Agreement, the Company has selected O’Melveny & Myers LLP
(“Company Counsel”) as legal counsel to the Company. Each Member acknowledges that Company Counsel does not represent
Qing or Matthias, nor any other Member in connection with the transactions contemplated herein.

 

Section 14.11.
Waiver. Each Member irrevocably waives any right it may have to maintain any action for dissolution of the Company or for partition
of the property of the Company. The failure of any Member to insist upon strict performance of a covenant hereunder or of any obligation
hereunder, irrespective of the length of time for which such failure continues, will not be a waiver of such Member’s right to demand
strict compliance herewith in the future. No consent or waiver, express or implied, to or of any breach or default in the performance
of any obligation hereunder, will constitute a consent or waiver to or of any other breach or default in the performance of the same or
any other obligation hereunder.

 

Section
14.12. Governing Law. All issues and questions concerning the application, construction, validity, interpretation and
enforcement of this Agreement will be governed by and construed in accordance with the internal laws of the State of Delaware,
without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other
jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Delaware.

 

    33

     

    

 

Section 14.13.
Dispute Resolution. The Parties to this Agreement agree that any and all disputes or controversies between them related to this
Agreement shall be resolved exclusively by confidential binding arbitration pursuant to the JAMS Comprehensive Arbitration Rules and Procedures,
and the arbitration shall be conducted in Los Angeles, California. The arbitration shall be conducted before a single neutral arbitrator
with at least ten (10) years of experience who shall be mutually agreed upon by the Parties to the dispute or, if the Parties are unable
to agree upon the choice of the arbitrator, then the arbitrator shall be selected by JAMS in accordance with the foregoing rules. Each
Member consents to the jurisdiction of the federal courts located in the State of California, county of Los Angeles, to confirm and enforce
any arbitration award. The decision in writing of the arbitrator, when delivered to the Parties, shall be final and binding on the Parties.
The fees and costs of the dispute resolution shall be borne equally (50%) by each of the Parties; provided, that the reasonable
attorney’s fees and costs associated with the arbitration shall be awarded to the prevailing Party. The Members hereby irrevocably
waive any and all right to trial by court or by jury, as well as the ability to challenge Los Angeles, California as the appropriate venue.
Each Party retains its respective right to contest, oppose or to take such other actions as may be permitted under federal law with respect
to any proceeding relating to the entry and/or confirmation of the JAMS arbitration award under the rules and procedures applicable in
the federal court (including to the extent applicable under federal law the right under applicable court rules and procedures to request
an appeal of any federal district court order and/or judgment with respect to any JAMS arbitration award).

 

Section 14.14.
Equitable Remedies. Each Party 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 will, 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).

 

Section 14.15.
Remedies Cumulative. The rights and remedies under this Agreement are cumulative and are in addition to and not in substitution
for any other rights and remedies available at law or in equity or otherwise.

 

Section 14.16.
Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together
will be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of Electronic
Transmission will be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[Signature Page Follows]

 

    34

     

    

 

IN WITNESS WHEREOF, the Parties
have caused this Agreement to be executed as of the date first written above by an authorized representative.

 

	 	THE COMPANY:
	 	 	 	 
	 	FF GLOBAL PARTNERS LLC
	 	 
	 	By:	/s/ Chaoying Deng
	 	 	Name: 	Chaoying Deng
	 	 	Title:	Managing Partner

 

[Signature Page to Second Amended and Restated LLC Agreement]

 

     

     

    

 

ANNEX A

 

FORM OF JOINDER AGREEMENT

 

Reference is
hereby made to the Second Amended and Restated Limited Liability Company Agreement of FF Global Partners LLC, dated as of May 16, 2022,
as amended, restated and/or otherwise modified from time to time (the “LLC Agreement”), among FF Global Partners LLC,
a company organized under the laws of Delaware (the “Company”), and the members of the Company that are party thereto.
Pursuant to and in accordance with Section 4.01(b) of the LLC Agreement, the undersigned hereby acknowledges that it has received
and reviewed a complete copy of the LLC Agreement and agrees that upon execution of this Joinder Agreement, such Person will become a
party to the LLC Agreement and will be fully bound by, and subject to, all of the covenants, terms and conditions of the LLC Agreement
as though an original party thereto and will be deemed, and is hereby admitted as, a Member for all purposes thereof and entitled to all
the rights incidental thereto.

 

Capitalized
terms used herein without definition will have the meanings ascribed thereto in the LLC Agreement.

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of [DATE].

 

	 	FF GLOBAL PARTNERS LLC
	 	 
	 	By:	
	 	 	Name: 	Chaoying Deng
	 	 	Title:	Managing Partner
	 	 	 	 
	 	[NEW MEMBER]Exhibit
10.1

 

COURTESY
TRANSLATION

 

[OPTION
HOLDER]

 

Biofrontera
Inc.

 

(“parties”)

 

 

Exchange
contract

 

from

 

25.
OCTOBER 2022

 

(“contract”)

 

 

    	 

    	 

    

 

COURTESY
TRANSLATION

 

EXCHANGE
CONTRACT

 

Table
of contents

 

	PREAMBLE	3
	1.	ASSIGNMENT
    OF THE OPTION	4
	2.	ASSIGNMENT
    OF EXCHANGE SHARES	4
	3.	FURTHER
    OBLIGATIONS OF THE PURCHASER	4
	4.	EXCLUSION
    OF REDUCTIONS	4
	5.	SPECIAL
    NOTES ON THE REGISTRATION OF THE EXCHANGE SHARES	4
	6.	GUARANTEES
    OF THE OPTION HOLDER	5
	7.	GUARANTEES
    OF THE PURCHASER	6
	8.	LEGAL
    CONSEQUENCES IN THE EVENT OF WARRANTY BREACH	6
	9.	LEGAL
    CONSEQUENCES in the event of incomplete delivery OF OPTION SHARES	7
	10.	FINDINGS
    OF THE PARTIES	8
	11.	TAXES	8
	12.	COSTS	8
	13.	INDEMNITY	8
	14.	NOTIFICATIONS	8
	15.	FINAL
    PROVISIONS	9

 

    	 

    	 

    

 

Exchange
contract

 

(the
“Contract”)

 

between

 

		(1)	[OPTION
                                            HOLDER], [ADDRESS],

 

-
hereinafter referred to as “Option Holder” -

 

and

 

		(2)	Biofrontera
                                            Inc., 120 Presidential Way, Suite 330, Woburn, Massachusetts, MA 01801, USA

 

-
hereinafter referred to as “Purchaser” -

 

    	2

    	 

    

 

	PREAMBLE	

 

	(A)	The
    Option Holder is the holder of an option exercisable until 30 November 2022, which entitles the Option Holder to acquire [NUMBER]
    shares in Biofrontera AG, a public limited company established under German law with its registered office in Leverkusen, Germany,
    registered in the commercial register of the Local Court of Cologne under HRB 49717 (the “Option”, the shares
    in Biofrontera AG subscribable on the basis of the Option the “Option Shares”). The option provider is [OPTION
    PROVIDER] (hereinafter “[OPTION PROVIDER]”). In return for the Option, the Option Holder has granted
    [OPTION PROVIDER] an opposed option on economically identical terms and conditions and over the same underlying (the “Opposed
    Option”). The Parties assume that the acquisition cost of the Option correspond to the value of the Opposed Option and
    vice versa and consequently to the value of the Option Shares underlying the Option. The Option is attached to this contract as an
    Annex (A).
	 	 
	(B)	On
    the basis of the trust agreements entered into with the persons named in Annex (B) (the “Trustors”)
    (the “Trust Agreements”), the Option Holder holds a total of [NUMBER] Option Shares (set out in more detail in
    Annex B) in trust for the Trustors, and the Option Holder has entered the agreement set forth in Annex (A) in trust
    for the accounts of the Trustors.
	 	 
	(C)	The
    Purchaser is a US stock corporation incorporated under the laws of the State of Delaware with its registered office in Woburn,
    Massachusetts, USA. The Purchaser’s share capital is currently divided into 23,550,960 common shares with a nominal value of
    USD 0.001 per share (the “Purchaser Shares”). The Purchaser Shares carry voting and dividend rights. Pursuant
    to its articles of association, the Purchaser may, by resolution of the Board of Directors, increase the number of Purchaser Shares
    up to 300 million. The Purchaser Shares are listed for trading on NASDAQ under the ticker symbol BFRI. Insofar as these are so called
    registered shares, the Purchaser Shares are tradeable on the open market without restrictions.
	 	 
	(D)	The
    Parties intend to exchange the Option for 1.2 newly issued Purchaser Shares (the “Exchange Shares”). The offer
    of the Exchange Shares will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”),
    and, accordingly, the Exchange Shares may not be offered or sold except (i) pursuant to an effective registration statement under
    the Securities Act, or (ii) pursuant to an applicable exemption from the Securities Act, or (iii) in a transaction to which the registration
    requirements of the Securities Act do not apply and in compliance with applicable federal securities laws.
	 	 
	(E)	From
    the Parties’ point of view, the planned exchange of Option and Exchange Shares takes place without disclosure of hidden reserves
    in the Option, as the value of the exchanged Option corresponds to its acquisition cost.

 

    	3

    	 

    

 

THEREFORE,
the Parties agree as to what follows:

 

	1.	ASSIGNMENT
                                            OF THE OPTION

 

The
Option Holder shall exchange and assign the Option with all rights attached thereto to the Purchaser accepting such exchange and assignment.
The assignment shall take immediate effect in rem. The transfer of title shall be effected in exchange for the transfer of Exchange Shares
as set out in clause 2 below.

 

		2.	ASSIGNMENT
                                            OF EXCHANGE SHARES

 

	2.1	In
    consideration for the Option assigned pursuant to clause 1, the Purchaser hereby exchanges and assigns [NUMBER] Exchange Shares to
    the Option Holder accepting such exchange and assignment. The Parties agree on the transfer of ownership of the Exchange Shares.
    Furthermore, the Purchaser hereby assigns to the Option Holder accepting this assignment all claims, if any, for delivery of the
    Exchange Shares against third parties. All existing or associated rights and ancillary rights to the Exchange Shares, including the
    profit subscription rights for the current financial year and all profits not yet distributed, shall also be assigned.
	 	 
	2.2	The
    assignment pursuant to clause 2.1 shall be made with immediate effect in rem and in exchange for the assignment of the Option, which
    is regulated under clause 1.

 

		3.	FURTHER
                                            OBLIGATIONS OF THE PURCHASER

 

	3.1	Promptly
    after the execution of this Contract, the Purchaser agrees to use reasonable best efforts to prepare and file with the U.S. Securities
    and Exchange Commission a registration statement pursuant to Form S-1 that covers the re-sale of all of Exchange Shares.
	 	 
	3.2	The
    Purchaser undertakes to use its best endeavours to assist the Option Holder in ensuring that the Exchange Shares are transferred,
    after registration as defined in clause 3.1 into one or more securities accounts designated by the Option Holder with banks authorised
    to hold securities admitted to trading in the United States.

 

		4.	EXCLUSION
                                            OF REDUCTIONS

 

The
Parties assume that the agreements concluded in accordance with clause 1 and 2 of this Contract have objectively the same value at the
time of the conclusion of the Contract. Any difference in value determined in the future shall not be compensated; claims for reduction
(section 441 BGB (German Civil Code)) are hereby excluded.

 

		5.	SPECIAL
                                            NOTES ON THE REGISTRATION OF THE EXCHANGE SHARES

 

The
Parties are aware that the Exchange Shares are shares of the Purchaser which are already in existence but are not yet registered under
the Securities Act, which may not be offered or traded for this reason, unless this occurs (i) on the basis of an effective registration
statement under the Securities Act, or (ii) pursuant to an available exemption from the Securities Act, or (iii) in a transaction not
subject to the registration requirements of the Securities Act, and in accordance with applicable state securities laws.

 

    	4

    	 

    

 

		6.	GUARANTEES
                                            OF THE OPTION HOLDER

 

The
Option Holder warrants to the purchaser in the form of an independent, no-fault guarantee promise pursuant to section 311 (1) BGB that
the following statements are accurate as of the date of the conclusion of this Contract. The Parties expressly agree and confirm that
the statements in this clause 6 are neither qualified nor interpreted as warranties as to the quality of the item (Beschaffenheitsgarantien)
within the meaning of sections 443, 444 BGB nor as quality agreements (Beschaffenheitsvereinbarungen) within the meaning of section
434 (1) sentence 1 and that section 444 BGB does not apply to the guarantees of the Option Holder.

 

	6.1	The
    Option Holder shall be entitled to enter into this Contract and to assume and perform all obligations stated therein and arising
    therefrom. The Option Holder has taken all other measures required under German Company Law for this purpose.
	 	 
	6.2	This
    contract

 

	 	(a)	has
    been duly signed in the name of the Option Holder and
	 	 	 
	 	(b)	creates
    valid, legally binding obligations on the Option Holder enforceable in accordance with its terms. The signing and execution of this
    Contract and the transactions contemplated hereby are not inconsistent with any contract to which the Option Holder is a party, are
    not contrary to the Option Holder’s articles of association or any judgment or permission binding upon it.

 

	6.3	The
    Option Holder is the sole legal owner of the Option and is entitled to freely dispose of the Option without the consent of a third
    party without infringing the rights of third parties.
	 	 
	6.4	The
    Option is free from any encumbrances and other rights of third parties. There are no liens, rights of first refusal, encumbrances
    or other rights of third parties in respect of the Option.
	 	 
	6.5	No
    insolvency proceedings have currently been initiated or applied for with respect to the assets of the Option Holder, nor are there
    any grounds that would justify the initiation of such proceedings.
	 	 
	6.6	Other
    than the provisions contained in Annex (A) and
    the Trust Agreements, there are no other agreements or understandings with [OPTION PROVIDER] or third parties that contain
    preconditions for the exercise of the Option by the Purchaser or which preclude the exercise of the Option by the Purchaser.
	 	 
	6.7	The
    Option Holder represents that it had the opportunity to review the documents attached to this Contract as Annex
    6.7, consisting of the Purchaser’s annual financial statements (Annual Report on Form
    10-K) for the fiscal year ended on 31 December 2021, the Purchaser’s quarterly reports (Quarterly Reports on Form 10-Q) for
    the quarters ended on 31 March and 30 June 2022, and the Purchaser’s current reports (Current Reports on Form 8-K) which have
    been disclosed by the Purchaser since the filing of the aforementioned annual financial statement (the aforementioned documents collectively,
    the “SEC Reports”) and the documents underlying this Contract and the transaction
    contemplated hereby, and had the opportunity to ask questions regarding the terms and conditions of the Exchange Share offer (to
    which the Option Holder deemed it necessary to get a response), and to receive answers to such questions from the responsible persons
    of the Purchaser.

 

    	5

    	 

    

 

	6.8	To
    the extent that the Option Shares are beneficially owned by the Option Holder at the time of the conclusion of this Contract, the
    Option Holder warrants that the Option Shares are free from any encumbrances and other rights of third parties and that no rights
    of first refusal, options, voting agreements or other rights of third parties in respect exist in relation to the acquisition of
    the Option Shares, with the exception, where applicable, of such rights which exist by virtue of statutory provisions or the articles
    of association, and with the exception of a right of lien or retention on the basis of the general terms and conditions of the custodian
    bank of [OPTION PROVIDER]. 
	 	 
	6.9	Insofar
    as the Option Shares are held in trust for the Trustors at the time of the conclusion of this Contract, the Option Holder warrants
    that it has no knowledge that the Option Shares are subject to encumbrances and other rights of third parties. Furthermore, with
    regard to the Shares referred to in sentence 1, the Option Holder has no knowledge that pre-emptive rights, options, voting agreements
    or other rights of third parties exist in relation to the acquisition of the Option Shares, with the exception, where applicable,
    of such rights existing on the basis of statutory provisions or the articles of association and with the exception of a lien or right
    of retention on the basis of the general terms and conditions of the custodian bank of [OPTION PROVIDER]. 

 

		7.	GUARANTEES
                                            OF THE PURCHASER

 

The
Purchaser warrants to the Option Holder in the form of an independent, no-fault guarantee promise pursuant to section 311 (1) BGB that
the following statements are accurate as of the date of the conclusion of this Contract. The Parties expressly agree and confirm that
the statements in this clause 7 are neither qualified nor interpreted as warranties as to the quality of the item (Beschaffenheitsgarantien)
within the meaning of sections 443, 444 BGB nor as quality agreements (Beschaffenheitsvereinbarungen) within the meaning of section
434 (1) sentence 1 BGB and that section 444 BGB does not apply to the warranties of the Purchaser.

 

	7.1	The
    Purchaser is entitled to enter into this Contract and to assume and fulfil all obligations mentioned therein and resulting therefrom.
    The Purchaser has taken all other measures required under Germany company law for this purpose.
	 	 
	7.2	This
    contract

 

	 	(a)	has
    been duly signed in the name of the Purchaser and
	 	 	 
	 	(b)	creates
    valid, legally binding obligations on the Purchaser that are enforceable in accordance with their terms. The signing and execution
    of this Contract and the transactions contemplated hereby are not inconsistent with any agreement to which the Purchaser is a party,
    are not in breach of the Purchaser’s articles of association or any judgment or authorisation binding on it.

 

	7.3	The
    Purchaser is the sole legal and beneficial owner of the Exchange Shares and is entitled to freely dispose of the Exchange Shares
    without the consent of a third party without infringing the rights of third parties.
	 	 
	7.4	The
    Exchange Shares are free from any encumbrances and other rights of third parties. There are no pre-emptive rights, options, voting
    agreements or other third party rights in relation to the acquisition of the Exchange Shares.
	 	 
	7.5	No
    insolvency proceedings have currently been instituted or applied for with respect to the Purchaser’s assets, nor are there
    any grounds that would justify the institution of such proceedings.
	 	 
	8.	LEGAL
    CONSEQUENCES IN THE EVENT OF WARRANTY BREACH
	 	 
	8.1	In
    the event of a breach of warranty, the party breaching the warranty (“Guarantor”)
    is obliged to put the other party (the “Beneficiary”) in the position in which
    the Beneficiary would be in if the guarantee had not been breached (in rem restitution). If the Guarantor fails to effect such in
    rem restitution within three (3) months after being informed by the Beneficiary of the breach of the guarantee at least in text form
    (section 126b BGB) or if in rem restitution is not possible, the Beneficiary may claim damages in money. This compensation shall
    include the actual damages incurred by the Beneficiary (including foreseeable consequential damages), but not lost profits or internal
    administrative or general costs of the Beneficiary.
	 	 
	8.2	The
    liability of each party for damages shall in any event be limited to the value referred to in clause 4.
	 	 
	8.3	The
    Beneficiary shall not be entitled to assert claims under this clause 8 to the extent that the underlying facts or circumstances to
    which the claim relates were actually known to the Beneficiary.
	 	 
	8.4	In
    the event of an actual or potential warranty breach, the Beneficiary must notify the Guarantor of the breach at least in text form
    without undue delay after becoming aware of it, describe the potential claim in reasonable detail and, to the extent reasonably practicable,
    state the estimated amount of the claim and give the Guarantor an opportunity to remedy the breach within the period of time specified
    in clause 8.1 of this Contract.
	 	 
	8.5	If
    and to the extent that any third party claims or demands are made against the Beneficiary in connection with a warranty breach, the
    Beneficiary shall provide the Guarantor with a copy of the third party’s claim letter and all documents relevant to the defence
    of the claim and shall allow the Guarantor to assist the Beneficiary in the defence of such claims. Provided that the Beneficiary
    permits the Guarantor to undertake the defence, the Beneficiary shall have the right to participate in all negotiations and correspondence
    with the third party, the right to retain and instruct legal counsel, the costs of which shall be reasonably borne by the Guarantor,
    and the right to require that any claim be enforced in court or settled out of court in accordance with the Beneficiary’s instructions
    and the obligation to conduct such proceedings in good faith with due regard to the Beneficiary’s interests and concerns. The
    Beneficiary shall not, without the prior consent of the Guarantor in at least text form, admit or settle any claim to the extent
    that doing so would give rise to any liability on the part of the Guarantor under this clause 8 would result.

 

    	6

    	 

    

 

	8.6	Unless
    otherwise stipulated in this Contract, the provisions of the German Civil Code on the law of damages (sections 249 et seq. BGB),
    including the duty to mitigate damages pursuant to section 254 BGB, shall apply.
	 	 
	8.7	All
    claims based on a breach of warranty arising from this Contract shall become time-barre within eighteen (18) months after the date
    of signing this Contract. Section 203 BGB shall not apply.
	 	 
	8.8	To
    the extent that the Option Shares are held in trust for the Trustors at the time of the conclusion of this Contract, the liability
    of the Option Holder shall be excluded to the extent that it is limited to the fact that it shall bear all the costs arising from
    the respective trust agreements - irrespective of whether these exist and/or are enforceable - are assigned to the Purchaser. 
	 	 
	8.9	The
    Parties agree that the remedies available to the Beneficiary against the Guarantor for breach of any warranty or other obligation
    under or in connection with this Contract shall be governed exclusively by this Contract and the remedies provided in this Contract
    shall be the exclusive remedies available to the Beneficiary under and in connection with this Contract. Accordingly, to the extent
    permitted by law and except as provided in clauses 6 or 7 expressly provides otherwise, further claims and remedies for warranty
    breach - irrespective of their nature, amount or legal basis - are excluded and hereby expressly waived, in particular (i) claims
    for breach of a pre-contractual duty (sections 280, 311 (2, 3), 241 (2) BGB, (ii) claims arising from the breach of an obligation
    arising from the contractual obligation, (iii) claims arising from statutory warranty provisions, in particular pursuant to sections
    437 to 441 BGB, (iv) claims arising from tortious law, (v) claims due to disruption of the basis of the transaction pursuant to section
    313 BGB and (v) all rights of rescission not based on section 123 BGB.
	 	 
	8.10	The
    aforementioned limitations of liability shall not apply in the event of wilful and/or fraudulent acts of the Guarantor.

 

		9.	LEGAL
                                            CONSEQUENCES IN THE EVENT OF INCOMPLETE DELIVERY OF OPTION SHARES

 

If,
upon exercise of the Option, the Purchaser should be delivered with 25,163 Option Shares or less than the number owed under the Option,
the Option Holder shall be obliged to sell a correspondingly excessive number of up to 30,196 Exchange Shares on account of the Purchaser
on the open market or in another way at market prices and to immediately pay the Purchaser the net proceeds generated thereby (sales
price minus incidental sales costs and any taxes payable) and shall provide objective proof of such net proceeds. Subject to clause 8.10,
any further liability of the Option Holder in the case of sentence 1 shall be excluded.

 

    	7

    	 

    

 

		10.	CONFIRMATIONS
                                            OF THE PARTIES

 

The
Parties agree that the SEC Reports have been made available to the Trustors, the Trustors have been informed of the re-sale restrictions
relating to the Exchange Shares pursuant to clause 5 and had adequate opportunities to ask questions with respect thereto and to the
terms and conditions of the Exchange Shares offer, to which they have deemed it necessary to get answers to understand the offering,
and to receive answers from the responsible persons of the Purchaser.

 

		11.	TAXES

 

Any
transfer taxes arising from the execution of this Contract shall be borne by the Purchaser. The taxes arising out of the clauses 1 and
2 (in particular income tax, corporate income tax, trade tax) shall be – subject to an agreement between the Parties to the contrary
– borne by the respective Party.

 

		12.	COSTS

 

To
the extent that this Contract and the term sheet dated 8/9 September 2022 (the “Term Sheet”), which is attached to
this Contract as Annex 12, each Party shall bear its own costs incurred for the preparation, conclusion and performance
of this Contract, in particular the costs for the engagement of its advisors.

 

		13.	INDEMNITY

 

The
Purchaser shall indemnify the Option Holder upon first request, at least in text form (section 126b BGB), against all claims of the Trustors
against him arising from the preparation, the execution and termination of the Trust Agreements as well as this Contract, insofar as
these are not based on intent of the Option Holder or its managing director(s).

 

		14.	NOTIFICATIONS

 

	14.1	All
    legally binding declarations and other notifications in connection with this Contract (collectively “Notices”)
    shall be made in writing, unless another form is expressly stipulated in this Contract or a stricter form is required by law. The
    written form requirement shall be satisfied by transmission by fax (but not by any other form of telecommunication transmission),
    by e-mail or by letter.

 

Notices
to the Option Holder: All notices to be given to the Option Holder under this Contract shall be addressed as follows:

 

[______]

 

with
a copy to his advisor for information purposes:

 

[______]

 

Notices
to Purchaser: All notices to the Purchaser under this Contract shall be addressed as follows:

 

Biofrontera
Inc.

 

Att.
Prof. Dr. Hermann Lübbert

120
Presidential Way, Suite 330,

Woburn,
Massachusetts

MA
01801

USA

E-mail:
h.luebbert@biofrontera.com

with
a copy to his advisor for information purposes:

 

 [COMPANY
COUNSEL] 

 

    	8

    	 

    

 

	14.2	Each
    party shall notify the other Party in writing without undue delay of any change in its address as set out in clause 14.1. In the
    absence of such notification, the aforementioned address shall be deemed to apply.
	 	 
	14.3	The
    receipt by the Parties’ advisers of any notice or copy thereof in connection with this Contract shall not constitute or be
    a substitute for the receipt of such notice by the Parties themselves. Whether or not a party’s adviser has received a notice
    for its information shall be immaterial to the receipt of the notice by that party, even if this Contract expressly provides that
    the notice is to be given to the relevant adviser for information purposes.
	 	 
	15.	FINAL
    PROVISIONS
	 	 
	15.1	Assignment
    of rights

 

The
Parties are not entitled to transfer, pledge or otherwise encumber any claims or other rights under this Contract without the prior consent
of the respective other Party at least in text form.

 

		15.2	Written
                                            form

 

Amendments
to this Contract must be made in writing, unless a stricter form is required by law. This also applies to the cancellation or amendment
of this clause 15.2.

 

		15.3	All
                                            agreements; Term Sheet

 

With
the exception of the Term Sheet entered into between the Parties and the amendment agreement thereto, this Contract incorporates all
agreements between the Parties with respect to the subject matter hereof. The Parties agree that the clauses B. and D. of the Term Sheet
as well as the amendment agreement to the Term Sheet shall remain unaffected by the execution of this Contract and shall continue to
apply.

 

		15.4	Applicable
                                            law

 

This
Contract shall be governed by the laws of the Federal Republic of Germany, excluding conflict of laws provisions and the UN Convention
on Contracts for the International Sale of Goods.

 

		15.5	Jurisdiction

 

All
legal disputes between the Parties arising from and in connection with this Contract shall be decided by the ordinary German courts.
The exclusive place of jurisdiction, to the extent permitted by law, shall be Frankfurt am Main, Germany.

 

		15.6	Severability
                                            clause

 

If
any provision of this Contract is or becomes void, ineffective or unenforceable in whole or in part, or if a provision that is necessary
in itself is not included, the validity and enforceability of all other provisions of this contract shall not be affected. In place of
the void, ineffective or unenforceable provision or in order to fill the loophole, a legally permissible provision shall be agreed which
corresponds as far as possible to what the Parties intended or would have agreed in accordance with the meaning and purpose of this Contract
if they had recognised the ineffectiveness or the loophole. If the invalidity of a provision is based on a measure of performance or
time (period or date) specified therein, the provision shall be deemed to have been agreed with a legally permissible measure that comes
closest to the original measure. It is the express intention of the Parties that this severability clause does not result in a mere reversal
of the burden of proof, but that section 139 BGB is waived altogether.

 

[The
signatures of the Parties follow on a separate signature page]

 

    	9

    	 

    

 

 

	[OPTION
    HOLDER]	 
	 	 
	________________,
    the __. October 2022	 
	 	 
	 	 
	by:	 
	Function:	 

 

	Biofrontera
    Inc.

     
	 
	________________,
    the __. October 2022	 
	 	 
	 	 
	by:
    Prof. Dr. Hermann Lübbert	 
	Function:
    Chairman of the Board	 

 

    	10

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