Document:

Blueprint

 

Exhibit 10.1

 

EXECUTION COPY

 

 

 

 

 

STOCK PURCHASE AGREEMENT

 

by and among

 

CONCIERGE TECHNOLOGIES, INC.

 

WAINWRIGHT HOLDINGS, INC.

 

and

 

EACH OF THE INDIVIDUALS AND ENTITIES

EXECUTING SIGNATURE PAGES HERETO

 

 

DATED AS OF SEPTEMBER 19, 2016

 

 

 

 

 

 

 

 TABLE
OF CONTENTS

 

	

 

	

 

	Page
	

ARTICLE I

	

DEFINITIONS

	

1

	

 

	

 

	

 

	

ARTICLE II

	

PURCHASE AND SALE OF WAINWRIGHT SHARES; CLOSING

	

9

	

2.1

	

Purchase and Sale; Additional Sellers

	

9

	

2.2

	

Purchase Price

	

9

	

2.3

	

Closing

	

10

	

2.4

	

Closing Obligations

	

10

	

 

	

 

	

 

	

ARTICLE III

	

REPRESENTATIONS AND WARRANTIES OF SELLERS

	

11

	

3.1

	

Organization; Good Standing

	

11

	

3.2

	

Ownership

	

12

	

3.3

	

Authorization

	

12

	

3.4

	

Valid Transfer

	

12

	

3.5

	

Investor Questionnaire; Investment Intent

	

12

	

3.6

	

Compliance with Other Instruments

	

12

	

3.7

	

Legal Proceedings

	

12

	

3.8

	

Disclaimer of Warranties

	

12

	

 

	

 

	

 

	

ARTICLE IV

	

REPRESENTATIONS AND WARRANTIES OF WAINWRIGHT

	

13

	

4.1

	

Organization and Good Standing

	

13

	

4.2

	

Authority; No Conflict

	

13

	

4.3

	

Capitalization

	

14

	

4.4

	

Financial Statements

	

14

	

4.5

	

Title to Properties; Liens

	

15

	

4.6

	

Taxes

	

15

	

4.7

	

Employee Benefits

	

16

	

4.8

	

Compliance With Legal Requirements; Governmental
Authorizations

	

17

	

4.9

	

Funds

	

18

	

4.1

	

Legal Proceedings; Orders

	

20

	

4.11

	

Absence of Certain Changes and Events

	

20

	

4.12

	

Contracts; No Defaults

	

21

	

4.13

	

Insurance

	

23

	

4.14

	

Intellectual Property

	

23

	

4.15

	

Relationships With Related Persons

	

24

	

4.16

	

Brokers or Finders

	

24

	

4.17

	

Books and Records

	

24

	

4.18

	

Acknowledgement

	

24

	

4.19

	

Disclaimer of Warranties

	

24

 

 

i

 

 

 TABLE
OF CONTENTS

 

	

 

	

 

	Page
	

ARTICLE V

	

REPRESENTATIONS AND WARRANTIES OF CONCIERGE

	

25

	

5.1

	

Organization and Good Standing

	

25

	

5.2

	

Authority; No Conflict

	

25

	

5.3

	

Capitalization

	

26

	

5.4

	

SEC Reports; No Undisclosed Liabilities

	

26

	

5.5

	

Title to Properties; Liens

	

27

	

5.6

	

Taxes

	

27

	

5.7

	

Employee Benefits

	

28

	

5.8

	

Legal Proceedings; Orders

	

29

	

5.9

	

Compliance With Legal Requirements; Governmental
Authorizations

	

29

	

5.1

	

Absence of Certain Changes and Events

	

30

	

5.11

	

Contracts; No Defaults

	

31

	

5.12

	

Insurance

	

32

	

5.13

	

Intellectual Property

	

32

	

5.14

	

Ineligible Persons

	
32

	

5.15

	

Investment Intent

	

33

	

5.16

	

Brokers or Finders

	

33

	

5.17

	

Independent Advisory Committee

	

33

	

5.18

	

Acknowledgement

	

33

	

 

	

 

	

 

	

ARTICLE VI

	

COVENANTS OF WAINWRIGHT AND SELLERS

	

33

	

6.1

	

Access and Investigation

	

33

	

6.2

	

Operation of the Business of the Acquired Companies

	

34

	

6.3

	

Negative Covenant

	

34

	

6.4

	

Required Approvals

	

34

	

6.5

	

Notification

	

35

	

6.6

	

Payment of Indebtedness

	

35

	

6.7

	

No Negotiation

	

35

	

6.8

	

Commercially Reasonable Efforts

	

35

	

6.9

	

Audit Fees

	

35

	

 

	

 

	

 

	

ARTICLE VII

	

COVENANTS OF CONCIERGE

	

36

	

7.1

	

Access and Investigation

	

36

	

7.2

	

Operation of the Business of Concierge and its
Subsidiaries

	

36

	

7.3

	

Negative Covenant

	

36

	

7.4

	

Approvals of Governmental Bodies; Shareholders

	

37

	

7.5

	

Notification

	

37

	

7.6

	

Commercially Reasonable Efforts

	

38

	

7.7

	

No Negotiation

	

38

	

 

	

 

	

 

 

 

ii

 

 

 TABLE
OF CONTENTS

 

	

 

	

 

	Page
	

ARTICLE VIII

	

CONDITIONS PRECEDENT TO CONCIERGE’S OBLIGATION TO
CLOSE

	

38

	

8.1

	

Accuracy of Representations

	

38

	

8.2

	

Sellers’ and Wainwright’s Performance

	

38

	

8.3

	

Concierge Shareholder Approval

	

39

	

8.4

	

Consents

	

39

	

8.5

	

No Proceedings

	

39

	

8.6

	

Fairness Opinion

	

39

	

 

	

 

	

 

	

ARTICLE IX

	

CONDITIONS PRECEDENT TO SELLERS’ and wainrwright’s
OBLIGATION TO CLOSE

	

39

	

9.1

	

Accuracy of Representations

	

39

	

9.2

	

Concierge’s Performance

	

39

	

9.3

	

Concierge Shareholder Approval

	

40

	

9.4

	

Consents

	

40

	

9.5

	

No Proceedings

	

40

	

9.6

	

Cogent Materials and Schedule 14C

	

40

	

 

	

 

	

 

	

ARTICLE X

	

TERMINATION

	

40

	

10.1

	

Termination Events

	

40

	

10.2

	

Effect of Termination

	

41

	

 

	

 

	

 

	

ARTICLE XI

	

INDEMNIFICATION; REMEDIES

	

41

	

11.1

	

Survival

	

41

	

11.2

	

Indemnification and Payment of Damages by Sellers

	

41

	

11.3

	

Indemnification and Payment of Damages By Concierge

	

41

	

11.4

	

Time Limitations

	

42

	

11.5

	

Limitations on Amount – Sellers

	

42

	

11.6

	

Limitation on Amount – Concierge

	

42

	

11.7

	

Additional Limitations

	

43

	

11.8

	

Exclusive Remedies

	

43

	

11.9

	

Characterization of Payments

	

43

	

11.1

	

Procedure for Indemnification – Third Party
Claims

	

44

	

11.11

	

Procedure for Indemnification – Other Claims

	

44

	

 

	

 

	

 

	

ARTICLE XII

	

GENERAL PROVISIONS

	

44

	

12.1

	

Expenses

	

44

	

12.2

	

Public Announcements

	

45

	

12.3

	

Confidentiality

	

45

	

12.4

	

Notices

	

45

	

12.5

	

Jurisdiction; Service of Process

	

46

	

12.6

	

Further Assurances

	

46

	

12.7

	

Waiver

	

46

	

12.8

	

Entire Agreement and Modification

	

46

	

12.9

	

Disclosure Letters

	

47

	

12.1

	

Assignments, Successors, and No Third-Party Rights

	

47

	

12.11

	

Severability

	

47

	

12.12

	

Section Headings; Construction

	

47

	

12.13

	

Governing Law

	

47

	

12.14

	

Counterparts

	

47

 

 

iii

 

 

STOCK
PURCHASE AGREEMENT

This
Stock Purchase Agreement (“Agreement”) is
made as of September 19, 2016 by (i) Concierge Technologies, Inc.,
a Nevada corporation (“Concierge”),
Wainwright Holdings, Inc., a Delaware corporation (“Wainwright”),
and each of the individuals and entities identified under the
heading “Sellers” on the signature pages hereto who, as
of the date hereof or subsequent to the date hereof pursuant to
Section 2.1(b) below, execute a counterpart signature page to this
Agreement (collectively, “Sellers”).

 

RECITALS

WHEREAS, the individuals and entities
identified under the heading “Sellers” on the signature
pages hereto (collectively, the “Wainwright
Shareholders”) collectively own 1,741 shares of common
stock, par value $0.01 per share, of Wainwright
(“Wainwright
Common Stock”), which shares represent all of the
issued and outstanding shares Wainwright Common Stock;

WHEREAS, Wainwright owns all of the
issued and outstanding limited liability company membership
interests of United States Commodity Funds LLC, a Delaware limited
liability company (“USCF”);

WHEREAS, USCF acts as the general
partner to the limited partnerships and as sponsor to the statutory
trusts set forth on Exhibit A hereto (each, a
“Fund”, and
collectively, the “Funds”);

WHEREAS, Concierge desires to purchase
from the Sellers, and the Sellers desires to sell and assign to
Concierge, all of the shares of Wainwright Common Stock held by
Sellers (collectively, the “Wainwright
Shares”) in exchange for the Concierge Shares (as
defined below);

WHEREAS, upon the sale and assignment of
the Wainwright Shares to Concierge, Concierge shall operate the
Business (as defined below);

WHEREAS, Concierge, Wainwright and
Sellers desire to reflect certain other understandings regarding
the transition of the Business (as defined below) from Sellers to
Concierge;

NOW, THEREFORE, in consideration of the
mutual representations, warranties, covenants and agreements
contained herein, the parties, intending to be legally bound,
hereby agree as follows:

ARTICLE
I

 DEFINITIONS

For
purposes of this Agreement, the following terms have the meanings
specified or referred to in this Section 1:

 

“Acquired
Companies” means, collectively, Wainwright, USCF and
USCF Advisers.

 

1

 

 

“Acquired Company
Plan” means each material
“employee benefit plan,” as defined in Section 3(3) of
ERISA, 29 U.S.C. §1002(3) (without regard to whether ERISA
applies thereto), and each other material employee benefit or
compensation plan or arrangement, including any bonus, deferred
compensation, incentive compensation, severance, health and welfare
plan, sponsored or maintained solely by one or more of the Acquired
Companies.

“Affiliate”
means, with respect to a specified Person, any other Person
controlling, controlled by, or under common control with the
specified Person; provided,
however, that in no event shall any Fund be considered an
Affiliate of any Seller, any Acquired Company or, following the
Closing, Concierge.

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

“Bankruptcy and Equity
Exception” has the meaning set forth in Section
3.3.

“Business”
means the business of USCF (in its capacity as the general partner
to or sponsor of the Funds) and USCF Advisers, in each case as
currently conducted.

“Business Day”
means any day other than (a) a Saturday or Sunday or (b) any day on
which the New York Stock Exchange is closed for
trading.

“Cap” has
the meaning set forth in Section 11.5.

“CFTC” means
the United States Commodity Futures Trading
Commission.

“Closing” has
the meaning set forth in Section 2.3.

“Closing Date”
means the date and time as of which the Closing actually takes
place.

“Cogent”
means Cogent Valuation, Inc.

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

“Concierge Disclosure
Letter” means the disclosure letter delivered by
Concierge to Wainwright and Sellers concurrently with the execution
and delivery of this Agreement.

“Concierge
Plan” means each material
“employee benefit plan,” as defined in Section 3(3) of
ERISA, 29 U.S.C. §1002(3) (without regard to whether ERISA
applies thereto), and each other material employee benefit or
compensation plan or arrangement, including any bonus, deferred
compensation, incentive compensation, severance, health and welfare
plan, sponsored or maintained solely by Concierge and/or one or
more of its Subsidiaries.

“Concierge Common
Stock” means the
shares of common stock, par value $0.001 per share, of
Concierge.

“Concierge Indemnified
Parties” has the
meaning set forth in Section 11.2.

“Concierge Material Adverse
Effect” means any fact, circumstance, condition,
event, occurrence or change that, individually or in the aggregate,
has had or is reasonably likely to have a material adverse effect
on the financial condition, results of operations, assets or
Liabilities of Concierge and its Subsidiaries, taken as a whole,
but excluding, for these purposes, any fact, circumstance, event,
occurrence or change to the extent resulting from (a) changes in
general economic or political conditions; (b) conditions generally
affecting the industries in which Concierge and its Subsidiaries
operate, (c) any changes in financial or securities markets in
general, (d) the imposition of legal, regulatory, Tax or other
similar restrictions or requirements, (e) acts of war or
significant acts of terrorism; (f) actions taken or not taken at
the request of, or with the consent of, Wainwright, or (g) adverse
effects arising from the announcement or consummation of the
Contemplated Transactions.

 

2

 

 

“Concierge Per Share
Price” means $0.085
per share.

“Concierge Registered
Intellectual Property” means all worldwide patents and
patent applications, trademark registrations and copyright
registrations, and applications for trademark and copyright
registrations, in each case that are owned by Concierge or its
Subsidiaries.

“Concierge
Shares” has the meaning set forth in section
2.1(a).

“Confidentiality
Agreement” means the Mutual Nondisclosure Agreement
dated August 25, 2016, and entered into by and between Concierge
and Wainwright.

“Consent” means
any filing with, notice to, or approval, consent, ratification or
waiver from, any Person.

“Contemplated
Transactions” means the sale of the Wainwright Shares
by Sellers to Concierge; Concierge’s acquisition and
ownership of the Wainwright Shares; Concierge’s issuance of
the Concierge Common Stock to Sellers; and the performance by
Concierge, Wainwright and Sellers of their respective covenants and
obligations under this Agreement.

“Contract”
means any written agreement, contract, obligation, promise, or
undertaking that is legally binding.

“Current
Employee” has the meaning set forth in Section
4.7(b).

“Damages” has
the meaning set forth in Section 11.2(a).

“Data” means
all the available data in digital format that is used in the
operations and business of the Acquired Companies as currently
conducted.

“Deductible”
has the meaning set forth in Section 11.5.

“Definitive Information
Statement” has the meaning set forth in Section
7.4(b).

“ERISA” means
the Employee Retirement Income Security Act of 1974 or any
successor law, and regulations and rules issued pursuant to that
Act or any successor law.

“Family” means,
with respect to an individual, the individual and the
individual’s (i) parents, (ii) spouse, (iii) children, and
(iv) siblings.

 

3

 

 

“FINRA” means
the Financial Industry Regulatory Authority, Inc. (including its
predecessor organizations).

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

“Fund Material Adverse
Effect” means any fact, circumstance, condition,
event, occurrence or change that, individually or in the aggregate,
has had or is reasonably likely to have a material adverse effect
on the financial condition, results of operations, business, assets
or liabilities of the Funds collectively, but excluding, for these
purposes, any fact, circumstance, event, occurrence or change to
the extent resulting from (a) changes in general economic or
political conditions; (b) conditions generally affecting the
industries in which the Funds invest, (c) any changes in financial
or securities markets in general, (d) a decline in the aggregate
net asset value of the Funds so long as the Funds have been managed
in all material respects in the ordinary course of business and
operated in all material respects in accordance with their stated
investment objectives, policies and restrictions; (e) the
imposition of legal, regulatory, Tax or other similar restrictions
or requirements, including position limits or similar restrictions
on the Funds by a Governmental Body, (f) acts of war or significant
acts of terrorism; or (g) actions taken or not taken at the request
of, or with the consent of, Concierge, or (h) adverse effects
arising from the announcement or consummation of the Contemplated
Transactions.

“Fund Material
Contracts” means all
currently effective agreements necessary for the operation of the
Funds substantially in the manner in which the Funds are currently
operated.

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

“GAAP” means
United States generally accepted accounting
principles.

“Governmental
Authorization” means any approval, consent, license,
permit, waiver, or other authorization issued, granted, given, or
otherwise made available by or under the authority of any
Governmental Body or pursuant to any Legal
Requirement.

“Governmental
Body” means any:

(a) nation, state,
county, city, town, village, district, or other jurisdiction of any
nature;

 

(b) federal, state,
local, municipal, foreign, or other government;

(c) governmental or
quasi-governmental authority of any nature (including any
governmental agency, branch, department, official, or entity and
any court or other tribunal);

(d) multi-national
organization or body;

(e) exchange or
clearing house; or

 

(f) body exercising, or
entitled to exercise, any administrative, executive, judicial,
legislative, police, regulatory, or Taxing Authority or power of
any nature.

 

4

 

 

“HSR Act” means
the Hart-Scott-Rodino Antitrust Improvements Act of 1976 or any
successor law, and regulations and rules issued pursuant to that
Act or any successor law.

“Indemnification
Percentage” means, with respect to a Seller, the
percentage set forth in Exhibit B opposite such
Seller’s name under the column “Indemnification
Percentage,” which percentage share shall be used for
purposes of determining such Seller’s obligation to pay
indenifiation amounts under Section 11.2(b).

“Intellectual
Property” means the following: (a) copyrights,
registrations, works of authorship, expressions, designs and design
registrations, and applications for registration thereof, (b)
trademarks, service marks, trade names, slogans, domain names, web
addresses, web pages, websites and related content, logos, trade
dress, and registrations and applications for registrations
thereof, (c) patents and patent applications, (d) Software, and (e)
trade secrets and confidential and proprietary information,
including Data, ideas, designs, discoveries, concepts, compilations
of information, methods, techniques, procedures, processes and
other know-how, whether or not patentable.

“IRC” means the
Internal Revenue Code of 1986 or any successor law, and regulations
issued by the IRS pursuant to the Internal Revenue Code or any
successor law.

“IRS” means the
United States Internal Revenue Service or any successor agency,
and, to the extent relevant, the United States Department of the
Treasury.

“Knowledge”
means, with respect to any entity, as to a particular fact or other
matter, the actual knowledge of any member of the senior management
of such entity.

“Legal
Requirement” means any federal, state, local,
municipal, foreign, international, multinational, self-regulatory
organization, exchange, clearing house or other administrative law,
statute, regulation, constitution, ordinance, principle of common
law, or treaty.

“Liabilities”
means, with respect to a Person, any and all debts, liabilities or
obligations of such Person of any kind, character or description,
whether known or unknown, absolute or contingent, accrued or
unaccrued, disputed or undisputed, liquidated or unliquidated,
secured or unsecured, joint or several, due or to become due,
vested or unvested, executory, determined, determinable or
otherwise, and whether or not the same is required to be accrued on
the financial statements of such Person.

“Lien” means
any lien, charge, option, pledge, or security interest, in each
case excluding Permitted Liens.

“Material
Contracts” has the
meaning set forth in Section 4.12(a).

“NFA” means
the National Futures Association.

“Order” means
any award, decision, injunction, judgment, order, ruling, or
verdict entered, issued, made, or rendered by any Governmental
Body.

 

5

 

 

“Ordinary Course of
Business” means, with respect to a Person, an action
taken by such Person in the ordinary course of the normal
day-to-day operations of such Person, consistent with past
practice.

“Organizational
Documents” means (a) the articles or certificate of
incorporation and the bylaws of a corporation; (b) the partnership
agreement and any statement of partnership of a general
partnership; (c) the limited partnership agreement and the
certificate of limited partnership of a limited partnership; (d)
the certificate of formation and limited liability company
operating agreement of a limited liability company, (e) any other
charter, trust documents, or similar document adopted or filed in
connection with the creation, formation, or organization of a
Person; (f) any stockholders agreement or similar arrangement among
security holders; and (g) any amendment to any of the
foregoing.

“Permitted
Liens” means Liens (a) for Taxes or other governmental
charges not yet due and payable; (b) carriers, warehousemen,
mechanics, laborers or other similar Liens created by statute and
incurred in the Ordinary Course of Business for sums not yet due;
(c) Liens involving restrictions on transfer arising under the
Organizational Documents of the issuer or securities or under
federal or state securities laws, or (d) community property or
other interests arising under applicable Legal
Requirements.

“Person” means
any individual, corporation (including any non-profit corporation),
general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union, or
other entity or Governmental Body.

“Preliminary Consent
Statement” has the meaning set forth in Section
7.4(b).

“Pro Rata
Share” means, with respect to a Seller, the percentage
set forth in Exhibit
B opposite such Seller’s name under the column
“Pro Rata Share,” which percentage share shall be used
for purposes of determining such Seller’s right to receive
any indemnification amount.

“Proceeding”
means any action, arbitration, audit, hearing, investigation,
litigation, or suit (whether civil, criminal, administrative,
investigative, or informal) commenced, brought, conducted, or heard
by or before any Governmental Body or arbitrator.

“Purchase
Price” has the meaning set forth in Section
2.2(a).

“Regulatory
Documents” means (i) any monthly or annual reports and
any disclosure document required to be filed by or on behalf of any
Fund under applicable CFTC, FINRA, NFA, or other Governmental
Bodies’ rules and regulations, and (ii) any periodic reports
and any registration statements required to be filed by or on
behalf of any Fund with the SEC in accordance with applicable
federal securities laws.

“Related
Person” means (a) with respect to a particular
individual, (i) each other member of such individual’s
Family; (ii) any Person (excluding any natural Person) that is
directly or indirectly controlled by such individual or one or more
members of such individual’s Family; (iii) any Person
(excluding any natural Person) with respect to which such
individual or one or more members of such individual’s Family
serves as a director, officer, partner, executor, or trustee (or in
a similar capacity), and (b) with respect to a specified Person
other than an individual, (i) any Affiliate of such specified
Person; (ii) each Person that serves as a director, officer,
partner, executor, or trustee of such specified Person (or in a
similar capacity); and (iii) any Person with respect to which such
specified Person serves as a general partner or a trustee (or in a
similar capacity).

 

6

 

 

“Representative”
means with respect to a particular Person, any director, officer,
employee, agent, consultant, advisor, or other representative of
such Person, including legal counsel, accountants, and financial
advisors.

“SEC” means
the United States Securities and Exchange Commission.

“SEC Reports”
has the meaning set forth in Section 5.4(a).

“Securities
Act” means the Securities Act of 1933 or any successor
law, and regulations and rules issued pursuant to that Act or any
successor law.

“Seller Indemnified
Parties” has the meaning set forth in Section
11.3.

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

“Series A Preferred
Stock” has the meaning set forth in Section
5.3.

“Series B Preferred
Stock” has the meaning set forth in Section
5.3.

“Shareholder
Approval” has the meaning set forth in Section
7.4(b).

“Software”
means any instruction or set of instructions that is used
(e.g., read, compiled,
processed or manipulated) by, in or on any equipment, including
application programming interfaces, source code and object code
versions of applications programs, operating system software,
software tools, computer software languages and utilities software;
in each case, in whatever form or media, including the tangible
media upon which they are recorded or printed, together with all
corrections, improvements, enhancements, modifications, updates and
releases thereof prior to the Closing.

“Subsidiary”
means with respect to any Person (the “Owner”), any
corporation or other Person of which securities or other interests
having the power to elect a majority of that corporation’s or
other Person’s board of directors or similar governing body,
or otherwise having the power to direct the business and policies
of that corporation or other Person (other than securities or other
interests having such power only upon the happening of a
contingency that has not occurred) are held by the Owner or one or
more of its Subsidiaries; when used without reference to a
particular Person, “Subsidiary” means a Subsidiary of
Wainwright.

“Tax” or
“Taxes” means
all federal, state, local or foreign net or gross income, gross
receipts, sales, use, ad valorem, value added, franchise,
withholding, payroll, employment, excise, property, alternative
minimum, environmental or other taxes, assessments, duties, fees,
levies or other governmental charges of any nature whatsoever,
whether disputed or not, together with any interest, penalties,
additions to tax or additional amounts with respect
thereto.

 

7

 

 

“Tax Return”
means any return, declaration or report relating to Taxes due, any
information return with respect to Taxes, or other similar report,
statement, declaration or document required to be filed under any
law, regulation or similar in respect of Taxes, any amendment to
any of the foregoing, any claim for refund of Taxes paid, and any
attachments, amendments or supplements to any of the
foregoing.

“Taxing
Authority” means any
governmental agency, board, bureau, body, department or authority
of any United States federal, state or local jurisdiction or any
foreign jurisdiction, having or purporting to exercise jurisdiction
with respect to any Tax.

“Third Party
Claim” has the meaning set forth in Section
11.10(a).

“Third Party Claim
Notice” has the
meaning set forth in Section 11.10(a).

“USCF” has
the meaning set forth in the Recitals of this
Agreement.

“USCF Advisers”
means USCF Advisers, LLC.

 “Wainwright”
has the meaning set forth in the Recitals of this
Agreement.

“Wainwright Balance
Sheet” has the meaning set forth in Section
4.4(a).

“Wainwright Common
Stock” has the meaning set forth in the Recitals to
this Agreement.

“Wainwright Disclosure
Letter” means the disclosure letter delivered by
Wainwright to Concierge concurrently with the execution and
delivery of this Agreement.

“Wainwright Material Adverse
Effect” means any fact, circumstance, condition,
event, occurrence or change that, individually or in the aggregate,
has had or is reasonably likely to have a material adverse effect
on the financial condition, results of operations, assets or
Liabilities of the Acquired Companies, taken as a whole, but
excluding, for these purposes, any fact, circumstance, event,
occurrence or change to the extent resulting from (a) changes in
general economic or political conditions; (b) conditions generally
affecting the industries in which the Acquired Companies operate,
(c) any changes in financial or securities markets in general, (d)
a decline in the aggregate net asset value of the Funds, so long as
the Funds have been managed in all material respects in the
ordinary course of business and operated in all material respects
in accordance with their stated investment objectives, policies and
restrictions; (e) the imposition of legal, regulatory, Tax or other
similar restrictions or requirements, including position limits or
similar restrictions on the Funds by a Governmental Body, (f) acts
of war or significant acts of terrorism; (g) actions taken or not
taken at the request of, or with the consent of, the Concierge, or
(h) adverse effects arising from the announcement or consummation
of the Contemplated Transactions.

“Wainwright Registered
Intellectual Property” means all worldwide patents and
patent applications, trademark registrations and copyright
registrations, and applications for trademark and copyright
registrations, in each case that are owned by the Acquired
Companies.

“Wainwright
Shares” has the meaning set forth in the Recitals of
this Agreement.

 

8

 

 

ARTICLE
II

PURCHASE AND SALE
OF WAINWRIGHT SHARES; CLOSING

2.1 Purchase and Sale;
Additional Sellers.

(a) Subject to the
terms and conditions of this Agreement, at the Closing, Sellers
will sell, assign, transfer, convey, and deliver the Wainwright
Shares to Concierge, and Concierge will purchase all of each
respective Sellers’ right, title, and interest in the
Wainwright Shares, free and clear of any Liens, in exchange for the
Purchase Price described in Section 2.2.

(b) The parties hereto
acknowledge and agree that, as of the date hereof, not all
Wainwright Shareholders have become a party to this Agreement and
therefore do not, as of the date hereof, constitute
“Sellers” under this Agreement (such Wainwright
Shareholders, the “Remaining Wainwright
Shareholders”). From and after the date hereof,
Concierge and Wainwright agree to use their respective commercially
reasonable efforts to discuss the terms of this Agreement with such
Remaining Wainwright Shareholders, to provide such Remaining
Wainwright Shareholders with such information regarding Concierge,
the Concierge Shares, Wainwright, this Agreement and the
Contemplated Transactions as may be reasonably necessary to permit
such Remaining Wainwright Shareholders to make an informed
investment decision regarding whether to become a party to this
Agreement, and shall afford such Additional Wainwright Shareholders
the opportunity to become a party to this Agreement and to sell the
shares of Wainwright Common Stock held by such Remaining Wainwright
Shareholders by executing a joinder to this Agreement. In the event
a Remaining Wainwright Shareholder determines, in its sole
discretion, to become a party to this Agreement by executing a
joinder to this Agreement, the effectiveness of such joinder shall
be conditioned upon such Remaining Wainwright Shareholder
completing an investor questionnaire provided by Concierge and the
receipt by such Remaining Wainwright Shareholder of such financial
and other information concerning Concierge, the Concierge Shares,
Wainwright and this Agreement and the Contemplated Transactions as
may be required to permit the issuance of Concierge Shares to occur
without registration under the Securities Act pursuant to an
exemption therefrom. Subject to the satisfaction of the foregoing,
upon the execution of a joinder to this Agreement by such Remaining
Wainwright Shareholder, (i) such Remaining Wainwright Shareholder
shall no longer be considered as such, and instead shall thereafter
constitute a “Seller” under this Agreement as if such
Remaining Wainwright Shareholder had been an original party to this
Agreement as of the date hereof, and (ii) the shares of Wainwright
Common Stock held by such Remaining Wainwright Shareholder shall
constitute “Wainwright Shares” for all purposes under
this Agreement.

2.2 Purchase
Price. The aggregate
purchase price for the Wainwright Shares, assuming that all
Wainwright Shareholders become Sellers (the “Purchase
Price”), will be (a) 818,799,976 shares of Concierge
Common Stock, and (b) 9,354,118.85 shares of Series B Preferred
Stock (the foregoing (a) and (b) referred to collectively as the
“Concierge
Shares”); provided, however, that no Seller shall be
entitled to receive a fraction of a Concierge Share.

 

9

 

2.3 Closing. The closing of the purchase and sale
provided for in this Agreement (the “Closing”) will
take place at Horwitz + Armstrong, a Professional Law Corporation,
14 Orchard, Suite 200, Lake Forest, CA 92630 at 10:00 a.m. Pacific
Standard Time (or such other place as the parties may agree) on the
later of (i) the date that is two Business Days following the
termination of the date on which the last of the conditions to
Closing set forth in Articles VIII and IX have been satisfied or,
to the extent permitted by applicable Legal Requirements, waived by
the relevant party, (ii) the 21st calendar following
the date on which the Definitive Schedule 14C was mailed to the
Concierge Shareholders, and (iii) such other time and date as the
parties may agree. Subject to the provisions of Article X, failure
to consummate the purchase and sale provided for in this Agreement
on the date and time and at the place determined pursuant to this
Section 2.3 will not result in the termination of this Agreement
and will not relieve any party of any obligation under this
Agreement.

2.4 Closing
Obligations. At the
Closing:

(a) Sellers will
deliver to Concierge:

(i)

Certificates
representing the Wainwright Shares, free and clear of all Liens,
duly endorsed (or accompanied by duly executed stock powers or
other instruments of transfer duly executed in blank) with all
required stock transfer tax stamps affixed thereto for transfer to
Concierge;

(ii)

A certificate,
executed by each Seller, certifying that, with respect to such
Seller, the conditions in Section 8.1(a) have been
satisfied;

(iii)

Such other
documents or instruments as Concierge reasonably requests and are
reasonably necessary to consummate the transactions contemplated by
this Agreement.

(b) Wainwright will
deliver to Concierge:

(i)

A certificate,
executed by Wainwright, certifying that the conditions set forth in
Sections 8.1(b), 8.2(a) and 8.4 have been satisfied.

(ii)

A certificate
executed by Wainwright’s corporate Secretary (or equivalent
officer) certifying that attached thereto are true and complete
copies of all resolutions adopted by the Wainwright board of
directors authorizing the execution, delivery and performance of
this Agreement and the consummation of Contemplated Transactions,
and that all such resolutions are in full force and effect and are
all the resolutions adopted in connection with the Contemplated
Transactions.

(iii)

A certificate of
good standing (or its equivalent) for Wainwright and each of the
other Acquired Companies from the Secretary of State or similar
Governmental Body of the jurisdiction within which Wainwright and
the other Acquired Companies are organized.

(iv)

Such other
documents or instruments as Concierge reasonably requests and are
reasonably necessary to consummate the Contemplated
Transactions.

(c) Concierge will
deliver to Wainwright:

 

10

 

 

(i)

A certificate
executed by Concierge certifying that each of the conditions set
forth in Sections 9.1, 9.2(a), 9.3 and 9.4 have been
satisfied.

(ii)

A certificate of
the Concierge corporate Secretary (or equivalent officer)
certifying that attached thereto are true and complete copies of
all resolutions adopted by the Concierge board of directors
authorizing the execution, delivery and performance of this
Agreement and the consummation of the Contemplated Transactions,
and that all such resolutions are in full force and effect and are
all the resolutions adopted in connection with the Contemplated
Transactions.

(iii)

A certificate of
good standing (or its equivalent) for Concierge from the Secretary
of State of the State of Nevada.

(iv)

Such other
documents or instruments as Wainwright reasonably requests and are
reasonably necessary to consummate the Contemplated
Transactions.

(d) Concierge will
deliver to Sellers:

(i)

The number of
Concierge Shares set forth in Exhibit B opposite the relevant
Seller’s name under the column “Concierge
Shares.”

(ii)

A certificate
executed by Concierge certifying that each of the conditions set
forth in Sections 9.1, 9.2(a), 9.3 and 9.4 have been
satisfied.

(iii)

Such other
documents or instruments as Sellers reasonably request and are
reasonably necessary to consummate the Contemplated
Transactions.

ARTICLE
III

REPRESENTATIONS AND
WARRANTIES OF SELLERS

Each
Seller, severally and not jointly, hereby represents and warrants
to Concierge as follows:

3.1 Organization; Good
Standing. If such
Seller is a Person other than a natural person, such Seller has
been duly formed and is validly existing and in good standing under
the laws of the jurisdiction of its formation.

3.2 Ownership.
Seller has good title to, is the record holder of, and beneficially
owns the Wainwright Shares set forth opposite such Seller’s
name in Exhibit B,
free and clear of all Liens. Except as contemplated by this
Agreement: (i) Seller is not a party or subject to any agreement or
understanding relating to the acquisition, disposition or voting or
giving of written consents with respect to any Wainwright Shares;
and (ii) Seller has no obligation (contingent or otherwise) to
purchase or otherwise acquire any Wainwright Shares or any other
interest in the Acquired Companies.

 

11

 

 

3.3 Authorization.
Seller has full capacity (in the case of an individual) or all
requisite power and authority (in the case of an entity) to execute
and deliver this Agreement and to transfer and sell the Wainwright
Shares owned by such Seller as contemplated by this Agreement, and
to carry out the provisions of this Agreement. All action on the
part of Seller necessary for the authorization, execution and
delivery of this Agreement by Seller, and the performance of all
obligations of Seller hereunder has been taken. This Agreement has
been duly and validly executed and delivered by Seller and,
assuming this Agreement has been duly authorized, executed and
delivered by the other parties hereto, constitutes a valid and
legally binding obligation of Seller, enforceable against Seller in
accordance with its terms (except as may be limited by bankruptcy,
insolvency, fraudulent transfer, moratorium, reorganization or
similar Legal Requirements of general applicability relating to or
affecting the rights of creditors generally and subject to general
principles of equity (the “Bankruptcy and Equity
Exception”)). If Seller is a natural person and is
subject to community property laws, including a Seller who is a
natural person resident in the State of California, such Seller has
provided Concierge with a duly executed consent of such
Seller’s spouse with respect to the transactions contemplated
by this Agreement in the form attached hereto as Exhibit C hereto.

3.4 Valid
Transfer. Upon
transfer to Concierge of the Wainwright Shares held by Seller in
accordance with the terms of this Agreement for the consideration
expressed herein, Seller will have transferred to Concierge good
title to the Wainwright Shares owned by such Seller free and clear
of all Liens.

3.5 Investor Questionnaire;
Investment Intent.
Seller has previously completed and delivered to Concierge the
investor questionnaire provided to Seller by Concierge. Seller is
acquiring the relevant Concierge Shares for his, her, or its own
account and not with a view to their distribution within the
meaning of Section 2(11) of the Securities Act. Seller acknowledges
that the Concierge Shares are restricted securities within the
meaning of Rule 144 under the Securities Act and may not be
transferred except in compliance with the Securities Act and any
other applicable securities or “blue sky”
laws.

3.6 Compliance with Other
Instruments. The
execution, delivery and performance by Seller of this Agreement
will not give rise to a right of any party to enjoin the
transactions contemplated hereunder pursuant to the terms of any
mortgage, indenture, contract, lease, agreement, instrument,
judgment, decree, order or writ to which Seller is a party, by
which Seller is bound or to which Seller or its assets are
subject.

3.7 Legal Proceedings.
There are no actions pending or, to Seller’s knowledge,
threatened against or by Seller or any Affiliate of Seller, that
challenges or seeks to prevent, enjoin, or otherwise delay the
transactions contemplated by this Agreement.

3.8 Disclaimer of
Warranties. EXCEPT
FOR THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN
THIS ARTICLE III,

(a) SELLER DISCLAIMS
ALL REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR IMPLIED, AND
NO SUCH REPRESENTATION OR WARRANTY SHALL BE IMPLIED BY OR CONSTRUED
FROM ANY OF THE DUE DILIGENCE MATERIALS OR ANY OTHER INFORMATION,
WHETHER ORAL OR WRITTEN, PROVIDED BY OR ON BEHALF OF SELLER,
WAINWRIGHT OR ITS AFFILIATES.

 

12

 

 

(b) NO REPRESENTATION
OR WARRANTY IS MADE BY SELLER AS TO THE CONDITION, MERCHANTABILITY
OR FITNESS FOR ANY PURPOSE OF ANY PROPERTIES OR ASSETS OF THE
ACQUIRED COMPANIES, ALL OF WHICH ARE FOR THE PURPOSES OF THIS
AGREEMENT CONSIDERED TO BE IN “AS-IS, WHERE-IS”
CONDITION.

ARTICLE
IV

REPRESENTATIONS AND
WARRANTIES OF WAINWRIGHT

Wainwright hereby
represents and warrants to Concierge as follows:

4.1 Organization and Good
Standing.

(a) Each of the
Acquired Companies is duly organized, validly existing, and in good
standing under the laws of its jurisdiction of organization, with
full corporate or limited liability company, as applicable, power
and full corporate or limited liability company, as applicable,
authority to conduct its business as it is now being conducted, to
own or use the properties and assets that it purports to own or
use, and to perform all its obligations under Contracts to which it
is a party. Each of the Acquired Companies is duly qualified to do
business as a foreign corporation or a foreign limited liability
company and is in good standing under the laws of each state or
other jurisdiction in which either the ownership or use of the
properties owned or used by it, or the nature of the activities
conducted by it, requires such qualification except where the
failure to be so qualified or in good standing would not,
individually or in the aggregate, have a Wainwright Material
Adverse Effect.

(b) Wainwright has
delivered to Concierge copies of the Organizational Documents of
each of the Acquired Companies, as currently in
effect.

4.2 Authority; No Conflict.

(a) Wainwright has the
absolute and unrestricted right, power, and authority to execute
and deliver this Agreement and to perform its obligations
hereunder. The execution and delivery of this Agreement, and the
consummation of the Contemplated Transactions, have been duly
authorized by all requisite corporate action on the part of
Wainwright, and, assuming that this Agreement has been duly
authorized, executed and delivered by the other parties hereto,
constitutes the legal, valid, and binding obligation of Wainwright,
enforceable against it in accordance with its terms, except as may
be limited by the Bankruptcy and Equity Exception.

(b) Except as set forth
in Part 4.2 of the Wainwright Disclosure Letter, and assuming
the Consents referred to in Section 4.2(c) below are made or
obtained, as applicable, neither the execution and delivery of this
Agreement by Wainwright nor the consummation or performance of any
of the Contemplated Transactions will, directly or indirectly (with
or without notice or lapse of time or both):

 

 

13

 

(i)

contravene,
conflict with, or result in a violation of any provision of the
Organizational Documents of the Acquired Companies;

(ii)

contravene,
conflict with, or result in a violation of, or give any
Governmental Body or other Person the right to challenge any of the
Contemplated Transactions or to exercise any remedy or obtain any
relief under, any Legal Requirement or any Order to which any of
the Acquired Companies, or any of the assets owned or used by any
of the Acquired Companies, may be subject; or

(iii)

contravene,
conflict with, or result in a violation or breach of any provision
of, or give any Person the right to declare a default or exercise
any remedy under, or to accelerate the maturity or performance of,
or to cancel, terminate, or modify, any Material
Contract.

(c) Except as set forth
in Part 4.2 of the Wainwright Disclosure Letter, none of the
Acquired Companies is or will be required to give any notice to or
obtain any Consent from any Governmental Body, or any Person under
a Material Contract or a Fund Material Contract, in connection with
the execution and delivery of this Agreement or the consummation or
performance of any of the Contemplated Transactions.

4.3 Capitalization.
The authorized equity securities of Wainwright consist of 3,000
shares of Common Stock. As of the date hereof, 1,741 shares are
issued and outstanding and constitute the Wainwright Shares.
Wainwright owns, directly or indirectly, all of the ownership
interests of all its Subsidiaries, free and clear of all Liens. All
of the outstanding equity securities of each of the Acquired
Companies have been duly authorized and validly issued and are
fully paid and nonassessable. There are no outstanding or
authorized options, warrants, convertible securities or other
rights, arrangements or commitments, or Contracts of any kind to
which any of the Acquired Companies is a party relating to the
issuance, sale, or transfer of any equity securities or other
securities by any of the Acquired Companies. Except as set forth in
Part 4.3 of the Wainwright Disclosure Letter, none of the Acquired
Companies (other than Wainwright, as it relates to the other
Acquired Companies, and USCF, as it relates to its general
partnership interest in the Funds) owns, or has any Contract to
acquire, any equity securities or other securities of any Person or
any direct or indirect equity or ownership interest in any other
business.

4.4 Financial
Statements.
Wainwright has delivered to Concierge: (i) an audited
consolidated balance sheet of Wainwright as at December 31, in each
of the years 2014 and 2015, and the related audited consolidated
statements of income, changes in stockholders’ equity, and
cash flow for each of the fiscal years then ended, and (ii) an
unaudited consolidated balance sheet of Wainwright as at June 30,
2016 (including the notes thereto, the “Wainwright Balance
Sheet”), and the related consolidated statements of
income, changes in stockholders’ equity, and cash flow for
the six-month period then ended, together with the report of Burr
Pilger Mayer, Inc. Such financial statements and notes fairly
present the financial condition and the results of operations,
changes in stockholders’ equity, and cash flow of Wainwright
as at the respective dates of and for the periods referred to in
such financial statements subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.
Wainwright has no material liabilities or obligations, contingent
or otherwise, other than (i) liabilities incurred in the ordinary
course of business subsequent to the date of the Wainwright Balance
Sheet; (ii) obligations under contracts and commitments incurred in
the ordinary course of business subsequent to the date of the
Wainwright Balance Sheet; and (iii) liabilities and obligations of
a type or nature not required under GAAP to be reflected in the
Wainwright Balance Sheet, which, in all such cases, individually
and in the aggregate would not be material.

 

14

 

4.5 Title to Properties;
Liens. None of the
Acquired Companies own any real property.  Part 4.5 of the Wainwright
Disclosure Letter contains a complete and accurate list of all
leaseholds or other interests in real property owned by any
Acquired Company. The Acquired Companies own all the properties and
assets (whether real, personal, or mixed and whether tangible or
intangible) reflected as owned by them in the books and records of
the Acquired Companies, including all of the properties and assets
reflected in the Wainwright financial statements (except for assets
held under capitalized leases disclosed or not required to be
disclosed in Part 4.5 of the Wainwright Disclosure Letter and
personal property sold since the date of the Wainwright Balance
Sheet in the Ordinary Course of Business). All material properties
and assets reflected in the Wainwright financial statements are
free and clear of all Liens.

4.6 Taxes.

(a) Except as set forth
in Part 4.6(a) of the Wainwright Disclosure Letter, (i) the
Acquired Companies have filed or caused to be filed on a timely
basis all Tax Returns that are or were required to be filed by or
with respect to any of them since January 1, 2010, either
separately or as a member of a group of corporations, pursuant to
applicable Legal Requirements; (ii) all such Tax Returns were
correct and complete in all material respects; (iii) Wainwright has
delivered or made available to Concierge copies of all such Tax
Returns relating to income Taxes filed since January 1, 2010; and
(iv) the Acquired Companies have paid, or made provisions for the
payment of, all Taxes that have or may have become due pursuant to
those Tax Returns, or pursuant to any assessment received by
Wainwright or any Acquired Company, except such Taxes, if any, as
are being contested in good faith and as to which adequate reserves
(determined in accordance with GAAP) have been provided in the
Wainwright financial statements.

(b) Part 4.6(b) of the
Wainwright Disclosure Letter contains (i) a complete and accurate
list of all Tax Returns filed since January 1, 2010, and (ii) all
Taxes contested in good faith.

(c) Except as set forth
in Part 4.6(c) of the Wainwright Disclosure Letter, the United
States federal and state income Tax Returns of each of the Acquired
Companies have been audited by the IRS or relevant state tax
authorities or are closed by the applicable statute of limitations.
Except as described in Part 4.6(c) of the Wainwright
Disclosure Letter, none of Wainwright nor any of the Acquired
Companies has given or been requested to give waivers or extensions
(or is or would be subject to a waiver or extension given by any
other Person) of any statute of limitations relating to the payment
of Taxes of any of the Acquired Companies or for which any of the
Acquired Companies may be liable.

(d) The charges,
accruals, and reserves with respect to Taxes on the respective
books of each of the Acquired Companies are adequate (determined in
accordance with GAAP) and are at least equal to each Acquired
Companies liability for Taxes with respect to periods ending on or
prior to the date hereof. There exists no proposed Tax assessment
against any of the Acquired Companies except as disclosed in the
Wainwright financial statements or in Part 4.6 of the
Wainwright Disclosure Letter. All Taxes that any of the Acquired
Companies is or was required by Legal Requirements to withhold or
collect have been duly withheld or collected and, to the extent
required, have been paid to the proper Governmental Body or other
Person.

 

15

 

 

(e) There is no Tax
sharing or similar agreement that will require any payment by any
of the Acquired Companies to any other Person after the date of
this Agreement.

4.7 Employee
Benefits.

(a) Part 4.7(a) of the
Wainwright Disclosure Letter includes a list, as of the date
hereof, of all Acquired Company Plans and other Affiliate plans
that cover employees of the Acquired Companies. With respect to
each Acquired Company Plan, Wainwright has made available to
Concierge:

(i)

the current plan
document and any amendments thereto;

(ii)

the most recent
summary plan description and any subsequent summaries of material
modifications, if required under ERISA or other Legal
Requirement;

(iii)

any trust agreement
or annuity contract establishing the funding vehicle for the
Acquired Company Plan; and

(iv)

the most recent
annual report on Form 5500 filed for each Acquired Company
Plan.

(b) Wainwright has made
available to Concierge a list, as of a date no more than 30 days
before the date hereof, of all employees of the Acquired Companies
including those employees who are on medical, disability or other
approved leave (the “Current
Employees”) together with the following information
for each: employer; name; and job title.

(c) Except as would not
reasonably be expected to have, individually or in the aggregate, a
Wainwright Material Adverse Effect:

(i)

Each Acquired
Company Plan complies, in form and operation, with its terms and
all Legal Requirements, including ERISA and the IRC, in all
material respects.

(ii)

Each Acquired
Company Plan that is intended to be “qualified” under
Section 401(a) of the IRC has received a favorable determination
letter from the Internal Revenue Service.

(iii)

There are no
actions, suits, proceedings, hearings or, to Wainwright’s
Knowledge, investigations or threatened claims against or with
respect to any Acquired Company Plan (other than claims for
benefits in the ordinary course of plan operations).

(d) Neither the
Acquired Companies or any Affiliate of the Acquired Companies has
in the last three years contributed or been obligated to contribute
to any “Employee Pension Plan” as defined in Section
3(2) of ERISA, that is subject to Title IV of ERISA or Section 412
of the Code.

 

16

 

(e) None of the
Acquired Company Plans provide for post-employment life or health
insurance, benefits or coverage for any participant or any
beneficiary of a participant, except as may be required under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”) and at the expense of the participant or the
participant’s beneficiary.

(f) With respect to
each Acquired Company Plan, any contributions required of each of
the Acquired Companies have been timely and properly
made.

(g) The Acquired
Companies are in compliance in all material respects with all
applicable laws and regulations related to employment
nondiscrimination, wages, collective bargaining, civil rights, and
the collection and payment of withholding and/or social security
taxes.

4.8 Compliance With Legal
Requirements; Governmental Authorizations.

(a) Except as set forth
in Part 4.8 of the Wainwright Disclosure Letter or as would not,
individually or in the aggregate, have a Wainwright Material
Adverse Effect:

(i)

Each of the
Acquired Companies is, and at all times since January 1, 2012 has
been, in compliance in all material respects with each Legal
Requirement that is or was applicable to it or to the conduct or
operation of its business or the ownership or use of any of its
assets;

(ii)

None of the
Acquired Companies has received, at any time since January 1, 2012,
any notice or other communication (whether oral or written) from
any Governmental Body or any other Person regarding (A) any actual,
alleged, possible, or potential material violation of, or material
failure to comply with, any Legal Requirement, or (B) any actual,
alleged, possible, or potential obligation on the part of any of
the Acquired Companies to undertake, or to bear all or any portion
of the cost of, any material remedial action of any
nature.

(b) Part 4.8 of the
Wainwright Disclosure Letter contains a complete and accurate list
of each Governmental Authorization that is held by any of the
Acquired Companies and necessary to conduct the Business as
currently conducted. Each Governmental Authorization listed in Part
4.8 of the Wainwright Disclosure Letter is valid and in full force
and effect. Except as set forth in Part 4.8 of the Wainwright
Disclosure Letter:

(i)

Each of the
Acquired Companies is, and at all times since January 1, 2012 has
been, in compliance in all material respects with all of the terms
and requirements of each Governmental Authorization identified in
Part 4.8 of the Wainwright Disclosure Letter; and

(ii)

None of the
Acquired Companies has received, at any time since January 1, 2012,
any notice or other communication (whether oral or written) from
any Governmental Body or any other Person regarding (A) any actual,
alleged, possible, or potential material violation of or material
failure to comply with any term or requirement of any Governmental
Authorization, or (B) any actual, proposed, possible, or potential
revocation, withdrawal, suspension, cancellation, termination of,
or modification to any Governmental Authorization; and

 

 

17

 

 

(iii)

Since January 1,
2012, all applications required to have been filed for the renewal
of the Governmental Authorizations listed in Part 4.8 of the
Wainwright Disclosure Letter have been duly filed on a timely basis
with the appropriate Governmental Bodies, except as would not
result in a modification, suspension or termination of such
Governmental Authorization.

The
Governmental Authorizations listed in Part 4.8 of the Wainwright
Disclosure Letter collectively constitute all of the Governmental
Authorizations necessary to permit the Acquired Companies to
lawfully conduct and operate the Business substantially in the
manner they currently conduct and operate the Business and to
permit the Acquired Companies to own and use their assets
substantially in the manner in which they currently own and use
such assets, except where the failure to have such Government
Authorizations would not, individually or in the aggregate, have a
Wainwright Material Adverse Effect.

(c) Except as would
not, individually or in the aggregate, have a Wainwright Material
Adverse Effect, since January 1, 2012, (i) the Acquired Companies
have timely made all material filings of Regulatory Documents and
have paid all fees and assessments due and payable in connection
therewith, and (ii) as of their respective dates, such Regulatory
Documents of the Acquired Companies referenced in the foregoing
(c)(i) complied in all material respects with all applicable Legal
Requirements. Wainwright has previously delivered or made available
to Concierge a true, correct and complete copy of each Regulatory
Document filed by the Acquired Companies since January 1, 2012, and
will deliver to Concierge promptly after the filing thereof a true,
correct and complete copy of each Regulatory Document filed by any
of the Acquired Companies after the date hereof and prior to the
Closing Date.

4.9 Funds. Except as set forth in Part 4.9 of the
Wainwright Disclosure Letter:

(a) USCF is the general
partner to or sponsor of each of the Funds. No Person other than
USCF provides investment advisory or sub-advisory services to the
Funds.

(b) Each Fund is duly
organized, validly existing and, with respect to entities in
jurisdictions that recognize the concept of “good
standing,” in good standing under the laws of the
jurisdiction of its organization and has the requisite trust or
limited partnership power and authority to own its properties and
to carry on its business as currently conducted, and is qualified
to do business in each jurisdiction where it is required to be so
qualified under applicable Legal Requirements, except where failure
to do so would not, individually or in the aggregate, have a Fund
Material Adverse Effect. Wainwright has provided or made available
to Concierge true and correct copies of the Organizational
Documents of each Fund, all as in effect on the date
hereof.

(c) Except as would
not, individually or in the aggregate, have a Fund Material Adverse
Effect, each Fund is operated in compliance in all material
respects with (i) applicable Legal Requirements and the terms and
conditions of Governmental Authorizations, and (ii) its respective
investment objectives, policies and restrictions, as set forth in
the applicable prospectus, and registration statement for such
Fund.

 

18

 

 

(d) The shares or units
of each Fund have been issued and sold in material compliance with
applicable Legal Requirements.

(e) Except as would
not, individually or in the aggregate, have a Fund Material Adverse
Effect, since January 1, 2012, (i) each Fund has filed all material
Regulatory Documents required by applicable Legal Requirements to
be filed, (ii) each Regulatory Document referred to in the
foregoing (e)(i) complied in all material respects as to applicable
form requirements, and (iii) the Regulatory Documents referred to
in the foregoing (e)(i) did not at the time they were filed contain
any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary, in order to make
the statements therein, in the light of the circumstances under
which they were or are made, not misleading.

(f) The audited and
unaudited financial statements of each Fund reflected in the annual
report on Form 10-K for the fiscal year ended December 31, 2014 and
2015, respectively, and quarterly reports on Form 10-Q (correct and
complete copies of which have been made available to Concierge) for
the quarterly periods ended March 31 and June 30, 2016, have been
prepared in accordance with GAAP, consistently applied (except as
otherwise disclosed therein) and fairly present in all material
respects the financial position, statement of changes in net assets
and results of operations of such Fund at the dates and for the
periods stated therein (subject, in the case of interim financial
statements, to normal recurring year-end adjustments and the
absence of notes). Each Fund has established and maintains
disclosure controls and procedures and internal controls over
financial reporting that meet the requirements of the applicable
Legal Requirements in all material respects. There have been no
significant deficiencies or material weaknesses in the design or
operation of internal controls over financial reporting that have
adversely affected or would reasonably be expected to adversely
affect any Fund’s ability to record, process, summarize and
report financial information since the principal executive officer
and principal financial officer of such Fund have been required to
certify that any such deficiencies or weaknesses have been
disclosed to the Fund’s auditors and audit
committee.

(g) All Fund Material
Contracts are listed in Part 4.9(g) of the Wainwright Disclosure
Letter. Wainwright has delivered or made available to Concierge
true, complete and correct copies of all Fund Material Contracts,
codes of ethics, compliance policies and procedures and all
relevant certifications, reports and other documents evidencing
compliance or failures of compliance. With respect to the Fund
Material Contracts:

(i)

each is in full
force and effect and enforceable in accordance with its terms
(subject to the effect Bankruptcy and Equity
Exception);

(ii)

USCF and each Fund
is in material compliance with all applicable terms and
requirements of the Fund Material Contracts to which it is a
party;

 

 

19

 

 

 

(iii)

to
Wainwright’s Knowledge, each other Person that has any
obligation or liability under any Fund Material Contract is in
material compliance with all applicable terms and requirements of
such agreement; and

(iv)

to
Wainwright’s Knowledge, no event has occurred or circumstance
exists that (with or without notice or lapse of time or both) will
contravene, conflict with, or result in a material violation or
material breach by any Seller or Fund of any Fund Material
Contract.

4.10 Legal Proceedings;
Orders.

(a) Except as set forth
in Part 4.10 of the Wainwright Disclosure Letter, there is no
pending Proceeding that: (i) has been commenced by or against any
of the Acquired Companies or that otherwise relates to or is
reasonably likely to adversely affect the Business; or (ii)
challenges, or that may have the effect of preventing, delaying,
making illegal, or otherwise interfering with, any of the
Contemplated Transactions. To Wainwright’s Knowledge, (1)
except as would not, individually or in the aggregate, have a
Wainwright Material Adverse Effect, no such Proceeding has been
threatened, and (2) no event has occurred or circumstance exists
that is reasonably likely to give rise to or serve as a basis for
the commencement of any such Proceeding.

(b) Except as set forth
in Part 4.10 of the Wainwright Disclosure Letter: (i) there is no
Order to which any of the Acquired Companies, or any of the assets
owned or used by any of the Acquired Companies, is subject; and
(ii) to Wainwright’s Knowledge, no officer, director, agent,
or employee of any of the Acquired Companies is subject to any
Order that prohibits such officer, director, agent, or employee
from engaging in or continuing any conduct, activity, or practice
relating to the Business.

(c) Except as set forth
in Part 4.10 of the Wainwright Disclosure Letter: (i) each of the
Acquired Companies is, and at all times since January 1, 2012 has
been, in compliance in all material respects with all of the terms
and requirements of each Order to which it is or has been subject;
and (ii) none of the Acquired Companies has received, at any time
since January 1, 2012, any written notice from any Governmental
Body or any other Person regarding any actual, alleged, possible,
or potential material violation of, or material failure to comply
with, any term or requirement of any Order to which any of the
Acquired Companies is or has been subject.

4.11 Absence of Certain Changes
and Events. Except as
set forth in Part 4.11 of the Wainwright Disclosure Letter, since
the date of Wainwright Balance Sheet, the Acquired Companies have
conducted the Business only in the Ordinary Course of Business and
there has not been any:

(a) change in any of
the Acquired Companies authorized or issued capital stock or other
equity securities; grant of any stock option or right to purchase
shares of capital stock or other equity securities of any of the
Acquired Companies; issuance of any security convertible into such
capital stock or other equity securities; grant of any registration
rights; purchase, redemption, retirement, or other acquisition by
any of the Acquired Companies of any shares of any such capital
stock or other equity securities; or, except in the Ordinary Course
of Business, declaration or payment of any dividend or other
distribution or payment in respect of shares of capital stock or
other equity securities;

 

20

 

(b) amendment to the
Organizational Documents of any of the Acquired
Companies;

(c) except in the
Ordinary Course of Business, payment or increase by any of the
Acquired Companies of any bonuses, salaries, or other compensation
to any stockholder, director, officer, or employee or entry into
any employment, severance, or similar Contract with any director,
officer, or employee;

(d) adoption of, or
(except in the Ordinary Course of Business) increase in the
payments to or benefits under, any profit sharing, bonus, deferred
compensation, savings, insurance, pension, retirement, or other
employee benefit plan for or with any employees of any of the
Acquired Companies;

(e) sale (other than
sales of inventory in the Ordinary Course of Business), lease, or
other disposition of any asset or property of any of the Acquired
Companies or mortgage, pledge, or imposition of any Lien on any
material asset or property of any of the Acquired
Companies;

(f) cancellation or
waiver of any claims or rights with a value to any of the Acquired
Companies in excess of $250,000;

(g) material change in
the accounting methods used by any of the Acquired
Companies;

(h) transfer,
assignment, or grant of any license or sublicense of any material
rights under or with respect to any Intellectual Property of the
Acquired Companies;

(i) material damage,
destruction, or loss to any property owned or leased by any of the
Acquired Companies;

(j) entry into a new
line of business or abandonment or discontinuance of an existing
line of business; or

(k) agreement, whether
oral or written, by any of the Acquired Companies to do any of the
foregoing.

4.12 Contracts; No
Defaults.

(a) Part 4.12(a) of the
Wainwright Disclosure Letter contains a complete and accurate list,
and Wainwright has delivered to Concierge true and complete copies,
of the following Contracts to which any of the Acquired Companies
is a party or by which the assets of any of the Acquired Companies
are bound (other than Fund Material Contracts, which are addressed
in Section 4.9) (collectively, the “Material
Contracts”):

(i)

each Contract that
involves performance of services by one or more Acquired Companies
of an amount or value in excess of $250,000;

(ii)

each Contract that
involves performance of services for to one or more Acquired
Companies of an amount or value in excess of $250,000;

 

21

 

 

 

(iii)

each Contract that
was not entered into in the Ordinary Course of Business and that
involves expenditures or receipts of one or more Acquired Companies
in excess of $250,000;

(iv)

each lease, rental
or occupancy agreement, license, installment and conditional sale
agreement, and other Contract affecting the ownership of, leasing
of, title to, use of, or any leasehold or other interest in, any
real or personal property (except personal property leases and
installment and conditional sales agreements having a value per
item or aggregate payments of less than $250,000 and with terms of
less than one year);

(v)

each licensing
agreement or other Contract, in each case to the extent material to
the Acquired Companies, taken as a whole, with respect to
Intellectual Property;

(vi)

each collective
bargaining agreement and other Contract to or with any labor union
or other employee representative of a group of
employees;

(vii)

each joint venture,
partnership, and other Contract (however named) involving a sharing
of profits, losses, costs, or liabilities by any of the Acquired
Companies with any other Person;

(viii)

each Contract
containing covenants that in any way purport to restrict the
business activity of any of the Acquired Companies or limit the
freedom of any of the Acquired Companies to engage in any line of
business or to compete with any Person;

(ix)

each Contract for
capital expenditures in excess of $250,000;

(x)

each Contract that
provides for the indemnification by any of the Acquired Companies
of any Person or the assumption of any Tax, environmental or other
liability of any Person;

(xi)

each Contract with
any Governmental Body to which any of the Acquired Companies is a
party;

(xii)

each
Contract that limits or
purports to limit the ability of any of the Acquired Companies to
compete in any line of business or with any Person or in any
geographic area or during any period of time; and

(xiii)

each amendment,
supplement, and modification (whether oral or written) in respect
of any of the foregoing.

(b) Except as set forth
in Part 4.12(b) of the Wainwright Disclosure Letter, no Seller or
Related Person of any Seller) has or may acquire any rights under,
and no Seller has or may become subject to any obligation or
liability under, any Material Contract.

(c) Except as set forth
in Part 4.12(c) of the Wainwright Disclosure Letter, each Material
Contract is in full force and effect and is valid and enforceable
in accordance with its terms, except as may be limited by the
Bankruptcy and Equity Exception. None of the Acquired Companies is
in breach of or default under, or has provided or received any
notice of any intention to terminate any Material
Contract.

 

22

 

(d) Except as set forth
in Part 4.12(d) of the Wainwright Disclosure Letter:

(i)

each of the
Acquired Companies is, and at all times since January 1, 2015 has
been, in compliance in all material respects with all applicable
terms and requirements of each Material Contract;

(ii)

to
Wainwright’s Knowledge, each other Person that is a party to
any Material Contract is, and at all times since January 1, 2015
has been, in compliance in all material respects with all
applicable terms and requirements of such Material Contract;
and

(iii)

to
Wainwright’s Knowledge, no event has occurred or circumstance
exists that (with or without notice or lapse of time) may
contravene, conflict with, or result in a violation or breach of,
or give any of the Acquired Companies or other Person the right to
declare a default or exercise any remedy under, or to accelerate
the maturity or performance of, or to cancel, terminate, or modify,
any Material Contract.

4.13 Insurance.
Except as set forth on Part 4.13 of the Wainwright Disclosure
Letter: (i) the insurance policies to which any of the Acquired
Companies is a party or that provide coverage to any of the
Acquired Companies, or any director or officer of any of the
Acquired Companies with respect to the Business, taken together,
provide adequate insurance coverage for the assets and the
operations of the Acquired Companies for all risks normally insured
against by a Person carrying on the same business or businesses as
the Acquired Companies; (ii) the Acquired Companies have paid all
premiums due, and have otherwise performed all of their respective
obligations, under each policy to which any of the Acquired
Companies is a party or that provides coverage to any of the
Acquired Companies or any officer or director thereof; and (iii)
the Acquired Companies have given notice to the insurer of all
claims of which it is aware that may be insured
thereby.

4.14 Intellectual
Property.

(a) Except as set forth
on Part 4.14 of the Wainwright Disclosure Letter, each of the
Acquired Companies owns, or has a valid and subsisting license or
right to use, all Intellectual Property used in, and material to,
the Business as currently conducted.

(b) Part 4.14 of the
Wainwright Disclosure Letter sets forth a complete and accurate
list of all Wainwright Registered Intellectual Property. Except as
set forth in Part 4.14 of the Wainwright Disclosure Letter (i) one
of the Acquired Companies has title to each item of the Wainwright
Registered Intellectual Property, free and clear of any Lien, (ii)
no third party has asserted against any of the Acquired Companies a
claim that any of the Acquired Companies is infringing the
Intellectual Property of such third party, (iii) to
Wainwright’s Knowledge, no basis for any such claim exists,
(iv) to Wainwright’s Knowledge, none of the Intellectual
Property used in the conduct of the Business infringes upon or
otherwise violates the Intellectual Property rights of others, (v)
none of the Wainwright Registered Intellectual Property is subject
to any outstanding order, decree or judgment of any Governmental
Body, and (vi) to Wainwright’s Knowledge, no third party is
infringing the Intellectual Property owned by any of the Acquired
Companies. All required fees to register and maintain the
Wainwright Registered Intellectual Property that are due have been
paid and, to Wainwright’s Knowledge, none of the Wainwright
Registered Intellectual Property is the subject of any pending
opposition proceedings, pending cancellation proceedings, pending
interference proceedings or any other similar administrative
challenge.

 

23

 

4.15 Relationships With Related
Persons. Excluding
ownership of the Wainwright Shares, no Seller or any Related Person
of any Seller or of any Acquired Company has, or since January 1,
2015, has had, any interest in any property (whether real,
personal, or mixed and whether tangible or intangible), used in or
pertaining to the Business. No Seller or any Related Person of
Sellers or of any Acquired Company is, or since January 1, 2015,
has owned (of record or as a beneficial owner) an equity interest
or any other financial or profit interest in, a Person that has had
business dealings or a material financial interest in any
transaction with any Acquired Company other than business dealings
or transactions conducted in the Ordinary Course of Business with
the Acquired Companies at substantially prevailing market prices
and on substantially prevailing market terms. Except as set forth
in Part 4.15 of the Wainwright Disclosure Letter, no Seller or any
Related Person of Sellers or of any Acquired Company is a party to
any Material Contract.

4.16 Brokers or
Finders. None of
Wainwright or any of the Acquired Companies has incurred any
obligation or liability, contingent or otherwise, for brokerage or
finders’ fees or agents’ commissions or other similar
payment in connection with this Agreement.

4.17 Books and
Records. The minute
books and stock record books of the Acquired Companies, all of
which have been made available to Concierge, are complete and
correct in all material respects and have been maintained in
accordance with sound business practices. At the Closing, all of
the Acquired Companies’ books and records will be in the
possession of Concierge.

4.18 Acknowledgement.
Notwithstanding anything to the contrary set forth in this
Agreement, Wainwright expressly acknowledges and agrees that except
as set forth below in Article V (and at all times giving effect to
the Concierge Disclosure Letter), none of Concierge or its
Subsidiaries is making any express or implied representation or
warranty with respect to the Concierge or its Subsidiaries or the
Contemplated Transactions.

4.19 Disclaimer of
Warranties. EXCEPT
FOR THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN
THIS ARTICLE IV,

(a) WAINWRIGHT
DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR
IMPLIED, AND NO SUCH REPRESENTATION OR WARRANTY SHALL BE IMPLIED BY
OR CONSTRUED FROM ANY OF THE DUE DILIGENCE MATERIALS OR ANY OTHER
INFORMATION, WHETHER ORAL OR WRITTEN, PROVIDED BY OR ON BEHALF OF
WAINWRIGHT OR ITS AFFILIATES.

 

24

 

(b) NO REPRESENTATION
OR WARRANTY IS MADE BY WAINWRIGHT AS TO THE CONDITION,
MERCHANTABILITY OR FITNESS FOR ANY PURPOSE OF ANY PROPERTIES OR
ASSETS OF THE ACQUIRED COMPANIES, ALL OF WHICH ARE FOR THE PURPOSES
OF THIS AGREEMENT CONSIDERED TO BE IN “AS-IS, WHERE-IS”
CONDITION.

ARTICLE
V

REPRESENTATIONS AND
WARRANTIES OF CONCIERGE

Concierge
represents and warrants to Wainwright and Sellers as
follows:

5.1 Organization and Good
Standing.

(a) Concierge is duly
organized, validly existing, and in good standing under the laws of
the State of Nevada, with full corporate power and authority to
conduct its business as it is now being conducted, to own or use
the properties and assets that it purports to own or use, and to
perform all its obligations under Contracts to which it is a party.
Concierge is not required to be qualified to do business as a
foreign corporation under the laws of any state or other
jurisdiction, except where the failure to be so qualified or in
good standing would not, individually or in the aggregate, have a
Concierge Material Adverse Effect.

(b) Each Subsidiary of
Concierge is duly organized, validly existing, and in good standing
under the laws of the jurisdiction of its formation, with full
power and authority to conduct its business as it is now being
conducted, to own or use the properties and assets that it purports
to own or use, and to perform all its obligations under Contracts
to which it is a party. Each Subsidiary of Concierge is duly
qualified to do business as a foreign corporation and is in good
standing under the laws of each state or other jurisdiction in
which either the ownership or use of the properties owned or used
by it, or the nature of the activities conducted by it, requires
such qualification except where the failure to be so qualified or
in good standing would not, individually or in the aggregate, have
a Concierge Material Adverse Effect.

(c) Concierge has
delivered or made available to Wainwright and Sellers copies of the
Organizational Documents of Concierge and each Concierge
Subsidiary, as currently in effect.

5.2 Authority; No
Conflict.

(a) Concierge has the
absolute and unrestricted right, power, and authority to execute
and deliver this Agreement and, subject to receipt of the approval
of its stockholders, to perform its obligations hereunder. The
execution and delivery of this Agreement, and the consummation of
the Contemplated Transactions, have been duly authorized by all
requisite corporate action on the part of Concierge (other than
Shareholder Approval, which will be sought in accordance with
Section 7.4(b)), and, assuming that this Agreement has been duly
authorized, executed and delivered by the other parties hereto,
constitutes the legal, valid, and binding obligation of Concierge,
enforceable against Concierge in accordance with its terms, except
as may be limited by the Bankruptcy and Equity
Exception.

(b) Except as set forth
in Part 5.2 of the Concierge Disclosure Letter, and assuming the
Consents referred to in Section 5.2(c) below are made or obtained,
as applicable, neither the execution and delivery of this Agreement
by Concierge nor the consummation or performance of any of the
Contemplated Transactions by Concierge will, directly or indirectly
(with or without notice or lapse of time or both):

 

25

 

(i)

contravene,
conflict with, or result in a violation of any provision of the
Organizational Documents of Concierge;

(ii)

contravene,
conflict with, or result in a violation of, or give any
Governmental Body or other Person the right to challenge any of the
Contemplated Transactions or to exercise any remedy or obtain any
relief under, any Legal Requirement or any Order to which Concierge
or any of the assets owned or used by Concierge, may be subject;
or

(iii)

contravene,
conflict with, or result in a violation or breach of any provision
of, or give any Person the right to declare a default or exercise
any remedy under, or to accelerate the maturity or performance of,
or to cancel, terminate, or modify, any Concierge Material
Contract.

(c) Except as set forth
in Part 5.2(c) of the Concierge Disclosure Letter, Concierge will
not be required to give any notice to or obtain any Consent from
any Person in connection with the execution and delivery of this
Agreement or the consummation or performance of any of the
Contemplated Transactions.

5.3 Capitalization.
The authorized equity securities of Concierge consist of
900,000,000 shares of Concierge Common Stock and 50,000,000 shares
of Preferred Stock, consisting of 5,000,000 Series A Preferred
Stock, par value $0.001 per share (the “Series A Preferred
Stock”), and 45,000,000 shares of Series B Preferred
Stock, par value $0.001 per share (the “Series B Preferred
Stock”). As of the date hereof, 67,953,870 shares of
Concierge Common Stock, no shares of Series A Preferred Stock, and
3,754,355 shares of Series B Preferred Stock are issued and
outstanding. Concierge owns all of the issued and outstanding
equity securities of its Subsidiaries, free and clear of all Liens.
All of the outstanding equity securities of Concierge and each of
its Subsidiaries have been duly authorized and validly issued and
are fully paid and nonassessable. Except as set forth in Part 5.3
of the Concierge Disclosure Letter, there are no Contracts to which
Concierge or its Subsidiaries are a party relating to the issuance,
sale, or transfer of any equity securities or other securities by
Concierge or its Subsidiaries. All of the Concierge Shares have
been duly authorized and, when issued in the manner contemplated by
this Agreement, will be validly issued and are fully paid and
nonassessable.

5.4 SEC Reports; No Undisclosed
Liabilities.

(a) Concierge has filed
all reports, schedules, forms, statements and other documents
required to be filed by Concierge under the Securities Act and the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
since January 1, 2014 (the foregoing materials, including the
exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Reports”).
As of their respective dates, the SEC Reports complied in all
material respects with the requirements of the Securities Act and
the Exchange Act, as applicable, and none of the SEC Reports, when
filed, contained any untrue statement of a material fact or omitted
to state a material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the
circumstances under which they were made, not
misleading.

 

26

 

(b) As of the date
hereof, there are no pending comments or queries from the SEC with
respect to the SEC Reports. The financial statements of Concierge
included in the SEC Reports (“Concierge Financial
Statements”) comply in all material respects with
applicable accounting requirements and the rules and regulations of
the SEC with respect thereto as in effect at the time of filing.
The Concierge Financial Statements have been prepared in accordance
with U.S. GAAP, except as may be otherwise specified in the
Concierge Financial Statements or the notes thereto and except that
unaudited financial statements may not contain all footnotes
required by U.S. GAAP, and fairly present in all material respects
the financial position of Concierge as of and for the dates thereof
and the results of operations and cash flows for the periods then
ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.

(c) Except as set forth
in the balance sheet of Concierge dated as of June 30, 2016 (the
“Concierge Balance
Sheet”), Concierge has no material liabilities or
obligations, contingent or otherwise, other than (i) liabilities
incurred in the ordinary course of business subsequent to the date
thereof; (ii) obligations under contracts and commitments incurred
in the ordinary course of business; and (iii) liabilities and
obligations of a type or nature not required under GAAP to be
reflected in the Concierge Financial Statements, which, in all such
cases, individually and in the aggregate would not be
material.

5.5 Title to Properties;
Liens. None of
Concierge or any of its Subsidiaries owns any real property.
 Part 5.5 of the
Concierge Disclosure Letter contains a complete and accurate list
of all leaseholds or other interests in real property owned by
Concierge or any of its Subsidiaries. Concierge and its
Subsidiaries own all the properties and assets (whether real,
personal, or mixed and whether tangible or intangible) reflected as
owned by them in their respective books and records, including all
of the properties and assets reflected in the Concierge Balance
Sheet (except for assets held under capitalized leases disclosed or
not required to be disclosed in Part 5.5 of the Concierge
Disclosure Letter and personal property sold since the date of the
Concierge Balance Sheet in the Ordinary Course of Business). All
material properties and assets reflected in the Concierge Balance
Sheet are free and clear of all Liens.

5.6 Taxes.

(a) Except as set forth
in Part 5.6(a) of the Concierge Disclosure Letter, (i) Concierge
and its Subsidiaries have filed or caused to be filed on a timely
basis all Tax Returns that are or were required to be filed by or
with respect to any of them since January 1, 2010, either
separately or as a member of a group of corporations, pursuant to
applicable Legal Requirements; (ii) all such Tax Returns were
correct and complete in all material respects; (iii) Concierge has
delivered or made available to Wainwright and Sellers copies of all
such Tax Returns relating to income Taxes filed since January 1,
2010 and (iv) Concierge and its Subsidiaries have paid, or made
provision for the payment of, all Taxes that have or may have
become due pursuant to those Tax Returns, or pursuant to any
assessment received by Concierge or any Subsidiary, except such
Taxes, if any, as are being contested in good faith and as to which
adequate reserves (determined in accordance with GAAP) have been
provided in the Concierge Balance Sheets.

 

27

 

(b) Part 5.6(b) of the
Concierge Disclosure Letter contains (i) a complete and accurate
list of all Tax Returns filed by Concierge since January 1, 2010,
and (ii) all Taxes contested in good faith by
Concierge.

(c) Except as set forth
in Part 5.6(c) of the Concierge Disclosure Letter, the United
States federal and state income Tax Returns of Concierge and its
Subsidiaries have been audited by the IRS or relevant state tax
authorities or are closed by the applicable statute of limitations.
Except as described in Part 5.6(c) of the Concierge Disclosure
Letter, none of Concierge or its Subsidiaries has given or been
requested to give waivers or extensions (or is or would be subject
to a waiver or extension given by any other Person) of any statute
of limitations relating to the payment of Taxes of Concierge or any
Subsidiary or for which Concierge or any Subsidiary may be
liable.

(d) The charges,
accruals, and reserves with respect to Taxes on the respective
books of Concierge and its Subsidiaries are adequate (determined in
accordance with GAAP) and are at least equal to the relevant
company’s liability for Taxes with respect to periods ending
on or prior to the date hereof. There exists no proposed Tax
assessment against Concierge or any Subsidiary except as disclosed
in the Concierge Balance Sheets or in Part 5.6 of the
Concierge Disclosure Letter. All Taxes that Concierge or any
Subsidiary is or was required by Legal Requirements to withhold or
collect have been duly withheld or collected and, to the extent
required, have been paid to the proper Governmental Body or other
Person.

(e) There is no Tax
sharing or similar agreement that will require any payment by
Concierge or any Subsidiary to any other Person after the date of
this Agreement.

5.7 Employee
Benefits.

(a) Except as would not
reasonably be expected to have, individually or in the aggregate, a
Concierge Material Adverse Effect: (i) each Concierge Plan
complies, in form and operation, with its terms and all Legal
Requirements, including ERISA and the IRC, in all material
respects; (ii) each Concierge Plan that is intended to be
“qualified” under Section 401(a) of the IRC has
received a favorable determination letter from the Internal Revenue
Service; and (iii) there are no actions, suits, proceedings,
hearings or, to Concierge’s Knowledge, investigations or
threatened claims against or with respect to any Concierge Plan
(other than claims for benefits in the ordinary course of plan
operations).

(b) Neither Concierge
nor any of its Subsidiaries has in the last three years contributed
or been obligated to contribute to any “Employee Pension
Plan” as defined in Section 3(2) of ERISA in the last three
years, that is subject to Title IV of ERISA or Section 412 of the
Code.

(c) None of Concierge
and its Subsidiaries has any obligation to provide any material
post-employment life or health insurance, benefits or coverage for
any participant or any beneficiary of a participant of any employee
benefit plan of Concierge or any Subsidiary, except as may be
required under COBRA and at the expense of the participant or the
participant’s beneficiary.

(d) No current employee
of Concierge or any of its Subsidiaries will become entitled to any
bonus, retirement, severance, job security or similar payment or
benefit or the acceleration or vesting of any such payment or
benefit solely as a result of the Contemplated
Transaction.

 

28

 

(e) Concierge and its
Subsidiaries are in compliance in all material respects with all
applicable laws and regulations related to employment
nondiscrimination, wages, collective bargaining, civil rights, and
the collection and payment of withholding and/or social security
taxes.

5.8 Legal Proceedings;
Orders.

(a) Except as set forth
in Part 5.8 of the Concierge Disclosure Letter, there is no pending
Proceeding: (i) that has been commenced by or against Concierge or
any of its Subsidiaries; or (ii) that challenges, or that may have
the effect of preventing, delaying, making illegal, or otherwise
interfering with, any of the Contemplated
Transactions.

(b) To the Knowledge of
Concierge, (1) except as would not, individually or in the
aggregate, have a Concierge Material Adverse Effect, no such
Proceeding has been threatened, and (2) no event has occurred or
circumstance exists that is reasonably likely to give rise to or
serve as a basis for the commencement of any such
Proceeding.

(c) Except as set forth
in Part 5.8 of the Concierge Disclosure Letter: (i) there is no
Order to which Concierge or its Subsidiaries, or any of the assets
owned or used by Concierge or its Subsidiaries, is subject; and
(ii) to Concierge’s Knowledge, no officer, director, agent,
or employee of any of Concierge or its Subsidiaries is subject to
any Order that prohibits such officer, director, agent, or employee
from engaging in or continuing any conduct, activity, or practice
relating to business activities of Concierge or its
Subsidiaries.

(d) Except as set forth
in Part 5.8 of the Concierge Disclosure Letter: (i) each of
Concierge and its Subsidiaries is, and at all times since January
1, 2012 has been, in compliance in all material respects with all
of the terms and requirements of each Order to which it is or has
been subject; and (ii) none of Concierge or any of its Subsidiaries
has received, at any time since January 1, 2012, any written notice
from any Governmental Body or any other Person regarding any
actual, alleged, possible, or potential material violation of, or
material failure to comply with, any term or requirement of any
Order to which Concierge or its Subsidiaries is or has been
subject.

5.9 Compliance With Legal Requirements;
Governmental Authorizations.

(a)

(i)   
Concierge and each of its Affiliates is, and at all times since
January 1, 2015 has been, in compliance in all material respects
with each Legal Requirement that is or was applicable to it or to
the conduct or operation of its business or the ownership or use of
any of its assets;

 

(ii)
neither Concierge
nor any of its Affiliates has received, at any time since January
1, 2015, any notice or other communication (whether oral or
written) from any Governmental Body or any other Person regarding
(A) any actual, alleged, possible, or potential material violation
of, or material failure to comply with, any Legal Requirement, or
(B) any actual, alleged, possible, or potential obligation on the
part of any Acquired Company to undertake, or to bear all or any
portion of the cost of, any material remedial action of any
nature.

 

 

29

 

(b) Concierge (or its
Subsidiaries) has all Governmental Authorization necessary to
conduct the business of Concierge and its Subsidiaries as currently
conducted. Each such Governmental Authorization is valid and in
full force and effect. Concierge and each of its Subsidiaries is,
and at all times since January 1, 2012 has been, in compliance in
all material respects with all of the terms and requirements of
each Governmental Authorization that is held by Concierge or any of
its Subsidiaries and necessary to conduct its business as currently
conducted. Neither Concierge nor any of its Affiliates has
received, at any time since January 1, 2012, any notice or other
communication (whether oral or written) from any Governmental Body
or any other Person regarding (i) any actual, alleged, possible, or
potential material violation of or material failure to comply with
any term or requirement of any Governmental Authorization, or (ii)
any actual, proposed, possible, or potential revocation,
withdrawal, suspension, cancellation, termination of, or
modification to any Governmental Authorization, in each case as may
adversely affect its ability to operate its business, or the
Business, following Closing. The Governmental Authorizations
currently held by the Concierge and its Subsidiaries constitute all
of the Governmental Authorizations necessary to permit the
Concierge and its Subsidiaries to lawfully conduct and operate
their respective businesses substantially in the manner they
currently conduct and operate such businesses and to permit
Concierge and its Subsidiaries to own and use their assets
substantially in the manner in which they currently own and use
such assets.

5.10 Absence of Certain Changes
and Events. Except as
set forth in Part 5.10 of the Concierge Disclosure Letter, since
the date of the Concierge Balance Sheet, Concierge and its
Subsidiaries have conducted their respective businesses only in the
Ordinary Course of Business and there has not been
any:

(a) change in
Concierge’s or any Subsidiary’s authorized or issued
capital stock or other equity securities; grant of any stock option
or right to purchase shares of capital stock or other equity
securities of Concierge or any Subsidiary; issuance of any security
convertible into such capital stock or other equity securities;
grant of any registration rights; purchase, redemption, retirement,
or other acquisition by Concierge or any Subsidiary of any shares
of any such capital stock or other equity securities; or, except in
the Ordinary Course of Business, declaration or payment of any
dividend or other distribution or payment in respect of shares of
capital stock or other equity securities;

(b) amendment to the
Organizational Documents of Concierge or any
Subsidiary;

(c) except in the
Ordinary Course of Business, payment or increase by Concierge or
any Subsidiary of any bonuses, salaries, or other compensation to
any stockholder, director, officer, or employee or entry into any
employment, severance, or similar Contract with any director,
officer, or employee;

(d) adoption of, or
(except in the Ordinary Course of Business) increase in the
payments to or benefits under, any profit sharing, bonus, deferred
compensation, savings, insurance, pension, retirement, or other
employee benefit plan for or with any employees of Concierge or any
Subsidiary;

(e) sale (other than
sales of inventory in the Ordinary Course of Business), lease, or
other disposition of any asset or property of Concierge or any
Subsidiary or mortgage, pledge, or imposition of any Lien on any
material asset or property of Concierge or any
Subsidiary;

 

30

 

(f) cancellation or
waiver of any claims or rights with a value to Concierge or any
Subsidiary in excess of $50,000;

(g) material change in
the accounting methods used by Concierge or any Subsidiary;
or

(h) agreement, whether
oral or written, by Concierge or any Subsidiary to do any of the
foregoing.

5.11 Contracts; No
Defaults.

(a) The SEC Reports
include true and complete copies of all material Contracts that
Concierge is required by SEC rules to file with the SEC
(collectively, the “Concierge Material
Contracts”).

(b) Except as set forth
in Part 5.11(b) of the Concierge Disclosure Letter, each Concierge
Material Contract is in full force and effect and is valid and
enforceable in accordance with its terms, except as may be limited
by the Bankruptcy and Equity Exception.

(c) Except as set forth
in Part 5.11(c) of the Concierge Disclosure Letter:

(i)

each Concierge is,
and at all times since January 1, 2015 has been, in compliance in
all material respects with all applicable terms and requirements of
each Concierge Material Contract;

(ii)

to the Knowledge of
Concierge, each other Person that is a party to any Concierge
Material Contract is, and at all times since January 1, 2015 has
been, in compliance in all material respects with all applicable
terms and requirements of such Concierge Material Contract;
and

(iii)

to the Knowledge of
Concierge, no event has occurred or circumstance exists that (with
or without notice or lapse of time) may contravene, conflict with,
or result in a violation or breach of, or give Concierge or any
other Person the right to declare a default or exercise any remedy
under, or to accelerate the maturity or performance of, or to
cancel, terminate, or modify, any Concierge Material
Contract.

5.12 Insurance.
Except as set forth on Part 5.12 of the Concierge Disclosure
Letter: (i) the insurance policies to which Concierge or any
Subsidiary is a party or that provide coverage to Concierge or any
Subsidiary, or any director or officer of Concierge or any
Subsidiary with respect to its business, taken together, provide
adequate insurance coverage for the assets and the operations of
Concierge or any Subsidiary for all risks normally insured against
by a Person carrying on the same business or businesses as
Concierge or any Subsidiary; (ii) Concierge and its Subsidiaries
have paid all premiums due, and have otherwise performed all of
their respective obligations, under each policy to which Concierge
or any Subsidiary is a party or that provides coverage to Concierge
or any Subsidiary or any officer or director thereof; and (iii)
Concierge and its Subsidiaries have given notice to the insurer of
all claims of which it is aware that may be insured
thereby.

 

31

 

5.13 Intellectual
Property.

(a) Except as set forth
on Part 5.13 of the Concierge Disclosure Letter, each of Concierge
or its Subsidiaries owns, or has a valid and subsisting license or
right to use, all Intellectual Property used in, and material to,
its business as currently conducted.

(b) Part 5.13 of the
Concierge Disclosure Letter sets forth a complete and accurate list
of all Concierge Registered Intellectual Property. Except as set
forth in Part 5.13 of the Concierge Disclosure Letter (i) either
Concierge or one of its Subsidiaries has title to each item of the
Concierge Registered Intellectual Property, free and clear of any
Lien, (ii) no third party has asserted against Concierge or its
Subsidiaries a claim that Concierge or its Subsidiaries is
infringing the Intellectual Property of such third party, (iii) to
the Knowledge of Concierge, no basis for any such claim exists,
(iv) to the Knowledge of Concierge, none of the Intellectual
Property used in the conduct of the business of Concierge or its
Subsidiaries infringes upon or otherwise violates the Intellectual
Property rights of others, (v) none of the Concierge Registered
Intellectual Property is subject to any outstanding order, decree
or judgment of any Governmental Body, and (vi) to the Knowledge of
Concierge, no third party is infringing the Intellectual Property
owned by Concierge or its Subsidiaries. All required fees to
register and maintain the Concierge Registered Intellectual
Property that are due have been paid and, to the Knowledge of
Concierge, none of the Concierge Registered Intellectual Property
is the subject of any pending opposition proceedings, pending
cancellation proceedings, pending interference proceedings or any
other similar administrative challenge.

5.14 Ineligible
Persons. None of
Concierge, any “principal” (as defined in the Commodity
Exchange Act) thereof, or any “person” (as defined in
the Commodity Exchange Act) associated with Concierge that is
required or, in connection with the Contemplated Transactions will
be required, to be registered under the Commodity Exchange Act is
ineligible pursuant to Section 8a of the Commodity Exchange Act to
serve as a commodity pool operator, principal, associated person,
or in any other capacity contemplated by the Commodity Exchange
Act. There is no Proceeding pending or threatened by any
Governmental Body which would reasonably be expected to become the
basis for any such ineligibility to serve in such capacity under
Section 8a of the Commodity Exchange Act. Neither Concierge nor any
"affiliated person" (as defined under the Investment Company Act of
1940, as amended (the “Investment Company
Act”) with Concierge is ineligible pursuant to Section
9(a) or 9(b) of the Investment Company Act to serve as an
investment adviser (or in any other capacity contemplated by
Section 9(a) or 9(b) of the Investment Company Act) to a registered
investment company nor is there any Proceeding pending or, to the
knowledge of Concierge, threatened by any Governmental Entity, that
would result in the ineligibility of Concierge or such persons to
serve in any such capacities. Neither Concierge nor any person
"associated" (as defined under the Investment Advisers Act of 1940,
as amended (the “Advisers
Act”), with Concierge is ineligible pursuant to
Section 203 of the Investment Advisers Act to serve as a registered
investment adviser or as an associated person of a registered
investment adviser, nor is there any Proceeding pending or, to the
knowledge of Concierge, threatened by any Governmental Entity that
would result in the ineligibility of Concierge or such
persons.

 

32

 

5.15 Investment
Intent. Concierge is
acquiring the Wainwright Shares for its own account and not with a
view to their distribution within the meaning of Section 2(11) of
the Securities Act. Concierge acknowledges that the Wainwright
Shares are restricted securities within the meaning of Rule 144
under the Securities Act and may not be transferred except in
compliance with the Securities Act and any other applicable
securities or “blue sky” laws.

5.16 Brokers or
Finders. Except for
Cogent (the fees of which shall be borne solely by Concierge), none
of Concierge, its Affiliates, or any of their respective
Representatives have incurred any obligation or liability,
contingent or otherwise, for brokerage or finders’ fees or
agents’ commissions or other similar payment (including the
cost of obtaining the fairness opinion contemplated by Section 8.6
below) in connection with this Agreement or the Contemplated
Transactions.

5.17 Acknowledgement.
Notwithstanding anything to the contrary set forth in this
Agreement, Concierge expressly acknowledges and agrees that except
as set forth above in Article III and Article IV (and at all times
giving effect to the Wainwright Disclosure Letter), none of the
Acquired Companies, including Wainwright, Sellers or any of their
Affiliates are making any express or implied representation or
warranty with respect to the Acquired Companies, which includes
Wainwright, Sellers, the Business, any Fund, or the Contemplated
Transactions.

5.18 Limitation
on Representations and Warranties Regarding
Subsidiaries. As to
each and every Concierge representation and warranty regarding
Concierge’s Subsidiaries, Concierge is representing and
warranting as to matters existing as of:

(a) Kahnalytics, Inc.,
from inception to the date of this Agreement;

(b) Gourmet Foods,
Ltd., from August 11, 2015 to the date of this Agreement;
and

(c) Brigadier Security
Systems (2000) Ltd., from June 1, 2016, to the date of this
Agreement.

5.19 Disclaimer
of Warranties. EXCEPT
FOR THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN
THIS ARTICLE V, CONCIERGE DISCLAIMS ALL REPRESENTATIONS AND
WARRANTIES, WHETHER EXPRESS OR IMPLIED, AND NO SUCH REPRESENTATION
OR WARRANTY SHALL BE IMPLIED BY OR CONSTRUED FROM ANY OF THE DUE
DILIGENCE MATERIALS OR ANY OTHER INFORMATION, WHETHER ORAL OR
WRITTEN, PROVIDED BY OR ON BEHALF OF CONCIERGE OR ITS
SUBSIDIARIES.

ARTICLE
VI

COVENANTS OF
WAINWRIGHT AND SELLERS

6.1 Access and
Investigation.
Between the date of this Agreement and the Closing Date, Wainwright
will, and will cause each of the Acquired Companies and their
Representatives to, (i) afford Concierge and its Representatives
full and free access to each of the Acquired Companies personnel,
properties, contracts, books and records, and other documents and
data, (ii) furnish Concierge and Concierge’s Representatives
with copies of all such contracts, books and records, and other
existing documents and data as Concierge may reasonably request,
and (iii) furnish Concierge and Concierge’s Representatives
with such additional financial, operating, and other data and
information as Concierge may reasonably request.

 

33

 

6.2 Operation of the Business
of the Acquired Companies. Except as set forth in Part 6.2 of the
Wainwright Disclosure Letter, between the date of this Agreement
and the Closing Date, Wainwright will, and will cause each of the
Acquired Companies to:

(a) conduct the
business of each of the Acquired Companies only in the Ordinary
Course of Business;

(b) use its
commercially reasonable efforts to preserve intact the current
business organization of each of the Acquired Companies, keep
available the services of the current officers, employees, and
agents of each of the Acquired Companies, and maintain the
relations and good will with suppliers, customers, landlords,
creditors, employees, agents, and others having business
relationships with each of the Acquired Companies;

(c) confer with
Concierge concerning operational matters of a material
nature;

(d) upon request,
report to Concierge concerning the general status of the business,
operations, and finances of each of the Acquired
Companies;

(e) not make any
dividend or distribution to its stockholders (other than any
dividend or distribution from one of the Acquired Companies to
another);

(f) preserve and
maintain all of their permits and Governmental Authorizations
required to operate the Business;

(g) pay their debts,
Taxes, and other obligations when due;

(h) comply in all
material respects with all applicable laws; and

(i) maintain their
books and records in accordance with past practices.

6.3 Negative
Covenant. Except as
otherwise expressly permitted by this Agreement, or as set forth in
Part 6.3(a) of the Wainwright Disclosure Letter, between the date
of this Agreement and the Closing Date, Wainwright will not, and
will cause each of the Acquired Companies not to, without the prior
consent of Concierge, take any affirmative action, or fail to take
any reasonable action within their or its control, as a result of
which any of the changes or events listed in Section 4.11 will
occur.

6.4 Required
Approvals. Between
the date of this Agreement and the Closing Date, Wainwright shall,
and shall cause each of the Acquired Companies to, make all filings
required by Legal Requirements to be made by them in order to
consummate the Contemplated Transactions (including, if and to the
extent necessary, all filings under the HSR Act). Between the date
of this Agreement and the Closing Date, Wainwright shall, and shall
cause the Acquired Companies to, (a) cooperate with Concierge with
respect to all filings Concierge elects to make or is required by
Legal Requirements to make in connection with the Contemplated
Transactions, and (b) cooperate with Concierge in obtaining all
consents identified in Part 5.2 of the Concierge Disclosure Letter
(including, if and to the extent necessary, taking all actions
reasonably requested to cause early termination of any applicable
waiting period under the HSR Act).

 

34

 

6.5 Notification.
Between the date of this Agreement and the Closing Date, Wainwright
will promptly notify Concierge in writing if Wainwright or any of
the Acquired Companies becomes aware of any fact or condition that
causes or constitutes a breach of any representation or warranty
set forth in Article III or Article IV as of the date of this
Agreement, or if Wainwright or any of the Acquired Companies
becomes aware of the occurrence after the date of this Agreement of
any fact or condition that would (except as expressly contemplated
by this Agreement) cause or constitute a breach of any such
representation or warranty had such representation or warranty been
made as of the time of occurrence or discovery of such fact or
condition. Should any such fact or condition require any change in
the Wainwright Disclosure Letter if the Wainwright Disclosure
Letter were dated the date of the occurrence or discovery of any
such fact or condition, Wainwright will promptly deliver to
Concierge a supplement to the Wainwright Disclosure Letter
specifying such change. During the same period, Wainwright will
promptly notify Concierge of the occurrence of any breach of any
covenant of Wainwright or Sellers in this Article VI or of the
occurrence of any event that may make the satisfaction of the
conditions in Article VIII impossible or unlikely.

6.6 Payment of
Indebtedness. Except
as expressly provided in this Agreement, or in Part 6.6 of the
Wainwright Disclosure Letter, Wainwright will (i) cause all
indebtedness owed to any of the Acquired Companies by any Seller or
any Related Person of any Seller to be paid in full prior to
Closing, and (ii) cause all indebtedness for borrowed money owed by
any of the Acquired Companies to any other Person (including any
Seller) to be paid in full prior to Closing.

6.7 No
Negotiation. Until
such time, if any, as this Agreement is terminated pursuant to
Article X, Wainwright will not, and will cause each of the Acquired
Companies and each of their Representatives not to, directly or
indirectly solicit, initiate, or encourage any inquiries or
proposals from, discuss or negotiate with, provide any non-public
information to, or consider the merits of any unsolicited inquiries
or proposals from, any Person (other than Concierge) relating to
any transaction involving the sale of the business or assets (other
than in the Ordinary Course of Business) of any of the Acquired
Companies, or any of the capital stock or other equity security of
any of the Acquired Companies, or any merger, consolidation,
business combination, or similar transaction involving any of the
Acquired Companies.

6.8 Commercially Reasonable
Efforts. Between the
date of this Agreement and the Closing Date, Wainwright and each
Seller will use its commercially reasonable efforts to cause the
conditions in Article VIII to be satisfied.

6.9 Audit Fees.
Wainwright understands, acknowledges, and agrees that Concierge is
a public reporting company and is required to submit certain
audited and other financial statements to the SEC in conjunction
with the Contemplated Transactions. Wainwright shall engage a
qualified auditor to audit its financial statements and the
financial statements of the Acquired Companies in order to satisfy
the SEC’s financial statement requirements (the “Wainwright Audited
Financial Statements”). Wainwright shall cover the
cost of such audit.

 

 

35

 

ARTICLE
VII

COVENANTS OF
CONCIERGE

7.1 Access and
Investigation.
Between the date of this Agreement and the Closing Date, Concierge
will, and will cause each of its Subsidiaries and its
Representatives to, (i) afford Wainwright and each of its
Representatives full and free access to Concierge’s and each
of its Subsidiary’s personnel, properties, contracts, books
and records, and other documents and data, (ii) furnish Wainwright
and its Representatives with copies of all such contracts, books
and records, and other existing documents and data as Wainwright
and its Representatives may reasonably request, and (iii) furnish
Wainwright and its Representatives with such additional financial,
operating, and other data and information as Wainwright and its
Representatives may reasonably request.

7.2 Operation of the Business
of Concierge and its Subsidiaries. Except as set forth in Part 7.2 of the
Concierge Disclosure Letter, between the date of this Agreement and
the Closing Date, Concierge will, and will cause each of its
Subsidiaries to:

(a) conduct the
business of Concierge and such Subsidiaries only in the Ordinary
Course of Business;

(b) use its
commercially reasonable efforts to preserve intact the current
business organization of Concierge and such Subsidiaries, keep
available the services of the current officers, employees, and
agents of Concierge and such Subsidiaries, and maintain the
relations and good will with suppliers, customers, landlords,
creditors, employees, agents, and others having business
relationships with Concierge and such Subsidiaries;

(c) confer with
Wainwright concerning operational matters of a material
nature;

(d) upon request,
report to Wainwright concerning the general status of the business,
operations, and finances of Concierge and its Subsidiaries;
and

(e) not make any
dividend or distribution to its stockholders (other than any
dividend or distribution from a Subsidiary of Concierge to
Concierge).

(f) preserve and
maintain all of its permits and Governmental Authorizations
required to operate the business of Concierge and its
Subsidiaries;

(g) pay the debts,
Taxes, and other obligations of Concierge and its Subsidiaries when
due;

(h) comply in all
material respects with all applicable laws; and

(i) maintain its books
and records of Concierge and its Subsidiaries in accordance with
past practices.

7.3 Negative
Covenant. Except as
otherwise expressly permitted by this Agreement, or as set forth in
Part 7.3 of the Concierge Disclosure Letter, between the date of
this Agreement and the Closing Date, Concierge will not, and will
cause each Subsidiary not to, without the prior consent of
Wainwright, take any affirmative action, or fail to take any
reasonable action within their or its control, as a result of which
any of the changes or events listed in Section 5.10 will
occur.

 

36

 

7.4 Approvals of Governmental
Bodies; Shareholders.

(a) Between the date of
this Agreement and the Closing Date, Concierge will, and will cause
each of its Related Persons to, make all filings required by Legal
Requirements to be made by them to consummate the Contemplated
Transactions (including, if and to the extent necessary, all
filings under the HSR Act). Between the date of this Agreement and
the Closing Date, Concierge will, and will cause each Related
Person to, cooperate with Sellers with respect to all filings that
Sellers are required by Legal Requirements to make in connection
with the Contemplated Transactions, and (ii) cooperate with
Wainwright in obtaining all consents identified in Part 4.2 of the
Wainwright Disclosure Letter.

(b) Without in any way
limiting the foregoing Section 7.4(a), as soon as reasonably
practicable following the date hereof, Concierge shall (i) obtain
the necessary written shareholder consents to approve this
Agreement and the Contemplated Transactions (the “Shareholder
Approval”), (ii) file with the SEC a preliminary
information statement on Schedule 14C with respect to the
Contemplated Transactions (the “Preliminary Consent
Statement”), and (iii) file with the SEC, and mail or
deliver to the Concierge Shareholders, a definitive information
statement on Schedule 14C with respect to the Contemplated
Transactions (the “Definitive Consent
Statement”). Concierge shall use its reasonable best
efforts to have the Preliminary Consent Statement cleared by the
staff of the SEC as promptly as practicable after such filing, and
Concierge shall thereafter mail or deliver the Definitive Consent
Statement to the Concierge Shareholders at least twenty (20)
calendar days prior to the anticipated date of Closing. Wainwright
shall furnish all information concerning Wainwright and its
Subsidiaries for inclusion in the Preliminary Consent Statement and
Definitive Consent Statement as may be reasonably requested by
Concierge, and shall have the right to review in advance, and, to
the extent practicable, to provide comments on, the Preliminary
Consent Statement prior to its filing and the Definitive Consent
Statement prior to its and mailing to Concierge
Shareholders.

(c) Each of Concierge
and Wainwright shall promptly advise the other upon receiving any
communication from any Governmental Body, the consent or approval
of which is required for consummation of the Contemplated
Transactions, in connection with the Contemplated
Transactions.

7.5 Notification.
Between the date of this Agreement and the Closing Date, Concierge
will promptly notify Wainwright in writing if Concierge becomes
aware of any fact or condition that causes or constitutes a breach
of any of Concierge’s representations and warranties as of
the date of this Agreement, or if Concierge becomes aware of the
occurrence after the date of this Agreement of any fact or
condition that would (except as expressly contemplated by this
Agreement) cause or constitute a breach of any such representation
or warranty had such representation or warranty been made as of the
time of occurrence or discovery of such fact or condition. During
the same period, Concierge will promptly notify Wainwright of the
occurrence of any breach of any covenant of Concierge in this
Article VII or of the occurrence of any event that may make the
satisfaction of the conditions in Article IX impossible or
unlikely.

 

37

 

7.6 Commercially Reasonable
Efforts. Between the
date of this Agreement and the Closing Date, Concierge will use its
commercially reasonable efforts to cause the conditions in Article
IX to be satisfied.

7.7 No
Negotiation. Except
as set forth in Part 7.7 of the Concierge Disclosure Schedule,
until such time, if any, as this Agreement is terminated pursuant
to Article X, Concierge will not, and will cause each Subsidiary
and each of their Representatives not to, directly or indirectly
solicit, initiate, or encourage any inquiries or proposals from,
discuss or negotiate with, provide any non-public information to,
or consider the merits of any unsolicited inquiries or proposals
from, any Person (other than Wainwright) relating to any
transaction involving the sale of the business or assets of
Concierge or any Subsidiary, or any of the capital stock or other
equity security of Concierge or any Subsidiary, or any merger,
consolidation, business combination, or similar transaction
involving Concierge or any Subsidiary.

ARTICLE
VIII

CONDITIONS
PRECEDENT TO CONCIERGE’S OBLIGATION TO
CLOSE

Concierge’s
obligation to purchase the Wainwright Shares and to take the other
actions required to be taken by Concierge at the Closing is subject
to the satisfaction, at or prior to the Closing, of each of the
following conditions (any of which may, to the extent permitted by
applicable Legal Requirements, be waived by Concierge, in whole or
in part, as long as such waiver is in writing):

8.1 Accuracy of
Representations.

(a) Each Seller’s
representations and warranties set forth in Article III must have
been accurate as of the date of this Agreement, and must be
accurate as of the Closing Date as if made on the Closing
Date.

(b) All of the
representations and warranties set forth in Article IV (considered
collectively), and each of such representations and warranties
(considered individually), must have been accurate as of the date
of this Agreement, and must be accurate as of the Closing Date as
if made on the Closing Date, in each case giving effect to the
Wainwright Disclosure Letter or any supplement thereto, except to
the extent such inaccuracies would not, individually or in the
aggregate, have a Wainwright Material Adverse Effect.

8.2 Sellers’ and
Wainwright’s Performance.

(a) All of the
covenants and obligations that Sellers or Wainwright are required
to perform or to comply with pursuant to this Agreement at or prior
to the Closing (considered collectively), and each of such
covenants and obligations (considered individually), must have been
duly performed and complied with in all material
respects.

(b) Sellers and
Wainwright must have delivered each of the documents required to be
delivered to Concierge pursuant to Section 2.4 (except to the
extent release of same is conditioned upon occurrence of the
Closing).

(c) Without in any way
limiting this Section 8.2(a), Wainwright shall have delivered to
Concierge the Wainwright Audited Financial Statements.

 

38

 

8.3 Concierge Shareholder
Approval. The
Shareholder Approval shall have been obtained in accordance with
Nevada law, and the definitive Schedule 14C shall have been mailed
to shareholders of Concierge in accordance with SEC rules and
Nevada law.

8.4 Consents. Each of the Consents denoted by an
asterisk (*) in Part 4.2 of the Wainwright Disclosure Letter
must have been obtained and must be in full force and
effect.

8.5 No
Proceedings. As of
the proposed Closing Date, there must not be pending against any
Seller, Wainwright, or any of the Acquired Companies any bona fide
third party Proceeding reasonably likely of success
(a) involving any challenge to, or seeking damages or other
relief in connection with, any of the Contemplated Transactions, or
(b) that may have the effect of preventing, delaying, making
illegal, or otherwise interfering with any of the Contemplated
Transactions.

8.6 Fairness Opinion.
Concierge shall have received the opinion of Cogent to the effect
that, as of the date hereof, and based upon and subject to the
limitations and assumptions set forth in such opinion, the Purchase
Price to be paid by Concierge pursuant to this Agreement is fair,
from a financial point of view, to the holders of shares of
Concierge.

8.7 Independent Advisory
Committee. The independent advisory committee (the
“Advisory
Committee”) appointed by Concierge shall have reviewed
and approved the terms of the Contemplated Transactions (including
the Per-Share Price and the consideration to be received by the
Wainwright Sellers hereunder), and determined that the Contemplated
Transactions are in the best interest of Concierge and the
Concierge Shareholders.

ARTICLE
IX

CONDITIONS
PRECEDENT TO SELLERS’ and wainrwright’s OBLIGATION TO
CLOSE

Sellers’
obligation to sell the Wainwright Shares and to take the other
actions required to be taken by Sellers at the Closing, and
Wainwright’s obligation to take actions required of it at the
Closing, are subject to the satisfaction, at or prior to the
Closing, of each of the following conditions (any of which may, to
the extent permitted by applicable Legal Requirements, be waived by
Sellers, Wainwright, in whole or in part, as long as such waiver is
in writing):

9.1 Accuracy of
Representations. All
of the representations and warranties set forth in Article V
(considered collectively), and each of such representations and
warranties (considered individually), must have been accurate as of
the date of this Agreement, and must be accurate as of the Closing
Date as if made on the Closing Date, in each case giving effect to
the Concierge Disclosure Letter or any supplement thereto, to the
extent such inaccuracies would not, individually or in the
aggregate, have a Concierge Material Adverse Effect.

9.2 Concierge’s
Performance.

(a) All of the
covenants and obligations that Concierge is required to perform or
to comply with pursuant to this Agreement at or prior to the
Closing (considered collectively), and each of such covenants and
obligations (considered individually), must have been performed and
complied with in all material respects.

 

39

 

(b) Concierge must have
delivered each of the documents required to be delivered by
Concierge pursuant to Section 2.4 (except to the extent release of
same is conditioned upon occurrence of Closing).

9.3 Concierge Shareholder
Approval. The
Shareholder Approval shall have been obtained in accordance with
Nevada law, and the definitive Schedule 14C shall have been mailed
to shareholders of Concierge in accordance with SEC rules and
Nevada law..

9.4 Consents. Each of the Consents denoted by an
asterisk (*) in Part 5.2 of the Concierge Disclosure Letter must
have been obtained and must be in full force and
effect.

9.5 No
Proceedings. As of
the proposed Closing Date, there must not be pending against
Concierge any bona fide third party Proceeding reasonably likely of
success (a) involving any challenge to, or seeking damages or
other relief in connection with, any of the Contemplated
Transactions, or (b) that may have the effect of preventing,
delaying, making illegal, or otherwise interfering with any of the
Contemplated Transactions.

9.6 Cogent Materials and
Schedule 14C. Each Seller shall have received a copy of the
Cogent fairness opinion, any other valuation or related materials
provided by Cogent to the Concierge Board, a copy of the definitive
Schedule 14C mailed to Concierge Shareholders and, based upon a
review of such materials, shall in its discretion elect to proceed
with the sale of Wainwright Shares owned by such
Seller.

ARTICLE
X

TERMINATION

10.1 Termination
Events. This
Agreement may, by notice given prior to or at the Closing, be
terminated:

 (a) by either
Concierge, on the one hand, or Wainwright and Sellers, on the other
hand, if a material breach of any provision of this Agreement has
been committed by the other party and such breach has not been
waived; provided, however,
that the breaching party shall have thirty (30) days from the date
of receipt of written notice of such breach from the non-breaching
party in which to cure such breach;

(b) (i) by Concierge if
any of the conditions in Article VIII have not been satisfied as of
the Closing Date or if satisfaction of such a condition is or
becomes impossible (other than through the failure of Concierge to
comply with its obligations under this Agreement) and Concierge has
not waived such condition on or before the Closing Date; or (ii) by
Wainwright and Sellers, acting through Wainwright, if any of the
conditions in Article IX has not been satisfied of the Closing Date
or if satisfaction of such a condition is or becomes impossible
(other than through the failure of Sellers to comply with their
obligations under this Agreement) and Sellers and Wainwright have
not waived such condition on or before the Closing
Date;

 

40

 

(c) by mutual consent
of Concierge, Wainwright and Sellers; or

(d) by either
Concierge, on the one hand, or Wainwright and the Sellers, on the
other hand, if the Closing has not occurred (other than through the
failure of any party seeking to terminate this Agreement to comply
fully with its obligations under this Agreement) on or before
December 31, 2016, or such later date as the parties may agree
upon, in writing.

10.2 Effect of
Termination. If this
Agreement is terminated pursuant to Section 10.1, all further
obligations of the parties under this Agreement will terminate,
except that the obligations in Sections 12.1 and 12.3 will survive;
provided, however, that if
this Agreement is terminated by a party because of the breach of
the Agreement by the other party or because one or more of the
conditions to the terminating party’s obligations under this
Agreement is not satisfied as a result of the other party’s
failure to comply with its obligations under this Agreement, the
terminating party’s right to pursue all legal remedies will
survive such termination unimpaired.

ARTICLE
XI

INDEMNIFICATION;
REMEDIES

11.1 Survival. All representations, warranties,
covenants, and obligations in this Agreement will survive the
Closing; provided, however,
that the right to be indemnified for any breach of a
representation, warranty, covenant or other obligation shall be
limited as set forth herein.

11.2 Indemnification and Payment
of Damages by Sellers.

(a) If the Closing
occurs, each Seller, severally and not jointly, shall indemnify and
hold harmless Concierge and its Representatives, stockholders,
controlling persons, and Affiliates (collectively, the
“Concierge Indemnified
Parties”) for the amount of any loss, Liability,
claim, damage, expense (including reasonable costs of investigation
and defense and reasonable attorneys’ fees) (collectively,
“Damages”),
arising from any breach of any representation or warranty made by
such Seller in Article III of this Agreement.

(b) If the Closing
occurs, the Sellers, severally and not jointly (according to their
respective Indemnification Percentages), shall indemnify and hold
harmless the Concierge Indemnified Parties for, and will pay to the
Concierge Indemnified Parties the amount of, any Damages resulting
from:

(i)

any breach of any
representation or warranty contained in Article IV of this
Agreement; and

(ii)

any breach of any
covenant or obligation of Wainwright in this
Agreement.

11.3 Indemnification and Payment
of Damages By Concierge. If the Closing occurs, Concierge will
indemnify and hold harmless Sellers and their respective
Representatives, stockholders, controlling persons, and Affiliates
(collectively, the “Seller Indemnified
Parties”) for any Damages arising, directly or
indirectly, from or in connection with (a) any breach of any
representation or warranty made by Concierge in this Agreement, and
(b) any breach by Concierge of any covenant or obligation of
Concierge in this Agreement. Such indemnification shall be payable
to Sellers according to their respective Pro Rata
Shares.

 

41

 

11.4 Time
Limitations. If the
Closing occurs, no Seller will have any liability (for
indemnification or otherwise) with respect to any representation or
warranty (other than those in Sections 3.2, 3.3, 3.4, 4.2(a), 4.3,
4.6 or 4.16), or any covenant or obligation to be performed and
complied with prior to the Closing Date, unless on or before the
first anniversary of the Closing Date, Concierge notifies Sellers
of a claim specifying the factual basis of that claim in reasonable
detail to the extent then known by Concierge. A claim with respect
to Section 4.6 may be made at any time prior to the thirtieth
(30th) day
immediately following the expiration of the applicable statute of
limitations that applies to the relevant matter in question. A
claim with respect to Sections 3.2, 3.3, 3.4, 4.2(a), 4.3 or 4.16
may be made at any time. If the Closing occurs, Concierge will have
no liability (for indemnification or otherwise) with respect to any
representation or warranty (other than those in Sections 5.2(a),
5.3, 5.6 or 5.16), or covenant or obligation to be performed and
complied with prior to the Closing Date, unless on or before the
first anniversary of the Closing Date, Sellers notify Concierge of
a claim specifying the factual basis of that claim in reasonable
detail to the extent then known by Sellers. A claim with respect to
Sections 5.2(a), 5.3 or 5.16) may be made at any time. A claim with
respect to Section 5.6 may be made at any time prior to the
thirtieth (30th) day immediately
following the expiration of the applicable statute of limitations
that applies to the relevant matter in question.

11.5 Limitations on Amount
– Sellers.

(a) No Seller will have
any liability (for indemnification or otherwise) with respect to
the matters described in Section 11.2(b)(i) or, to the extent
relating to any failure to perform or comply prior to the Closing
Date, Section 11.2(b)(ii), until the total of all Damages with
respect to such matters exceeds two percent (2%) of the aggregate
value (based on the Concierge Per Share Price) of the Purchase
Price actually issued by Concierge to Sellers (the
“Deductible”),
and then only for the amount by which such Damages exceed the
Deductible; provided,
however, that in no event shall the aggregate amount payable
by the Sellers under Section 11.2(b)(i) and (b)(ii) exceed
$8,500,000 (the “Cap”).

(b) Notwithstanding
anything to the contrary contained herein, (i) all obligations of
Sellers to make indemnification payments under this Article XI
shall be satisfied by the transfer from Sellers to Concierge of
Concierge Shares having an aggregate value (based on the Concierge
Per-Share Price) equal to the amount of indemnification owed; (ii)
in no event shall any Seller be liable for indemnification under
Section 11.2(a) in excess of the value of the Concierge Shares
actually received by such Seller (based on the Concierge Per Share
Price); and (iii) in no event shall any Seller be liable for
indemnification under Section 11.2(b) for an amount in excess of
such Seller’s Indemnification Percentage of the amount of
indemnification fully and finally determined to be due and payable
to a Concierge Indemnified Party thereunder (but subject at all
times to the limitations set forth in this Article
XI).

11.6 Limitation on Amount
– Concierge.
Concierge will have no liability (for indemnification or otherwise)
with respect to the matters described in Section 11.3(a) or, to the
extent relating to an alleged failure to perform any covenant prior
to the Closing Date, Section 11.3(b), until the total of all
Damages with respect to such matters exceeds the Deductible, and
then only for the amount by which such Damages exceed the
Deductible; provided, however, that in no event shall the aggregate
amount payable by Concierge under Section 11.3(a) exceed the
Cap.

 

42

 

11.7 Additional
Limitations. The
rights of the Seller Indemnified Parties and Concierge Indemnified
Parties to be indemnified under this Article XI shall be subject to
the following limitations:

(a) No party shall be
entitled to recover Damages (i) for punitive, exemplary or special
damages of any nature, (ii) for indirect or consequential damages,
including damages for lost profit, lost business opportunity or
damage to business reputation, or (iii) relating to or arising out
of any act or omission of the indemnified party after the date of
Closing.

(b) No party shall be
entitled to recover under this Article XI for any Damages to the
extent such Damages arise out of any changes, after the Closing
Date, in applicable Legal Requirements or GAAP, or the
interpretations thereof.

(c) The Concierge
Indemnified Parties shall not be entitled to recover under this
Article XI for Damages to the extent that the basis for such
Damages is adequately provided or accounted for or reflected in the
Wainwright Balance Sheet.

(d) In no event may a
party recover any Damages under one section of this Agreement to
the extent Damages with respect to the same matter have been
previously recovered under any other section of this
Agreement.

(e) In addition to, and
not in limitation of any other provision herein, each party will
use its commercially reasonable efforts to mitigate any Damages
with respect to which it may be entitled to seek indemnification
pursuant to this Agreement, and no party shall be entitled to
indemnification for Damages to the extent it can be demonstrated
that such Damages would not have occurred but for the failure of
the party seeking indemnification to mitigate as herein
provided.

(f) If any indemnified
party is indemnified for any Damages pursuant to this Agreement
with respect to any Third Party Claim, then the indemnifying party
will be subrogated to all rights and remedies of such indemnified
party against such third party and any other party with respect to
the matter forming the basis for the Third Party Claim, and the
indemnified party will cooperate with and assist the indemnifying
party in asserting all such rights and remedies against such
parties (with the benefits of any recovery to be distributed to the
indemnifying party).

11.8 Exclusive Remedies.
If the Closing occurs, the remedies set forth in this Article XI
shall be the exclusive remedies of the parties for any breach of
his Agreement.

11.9 Characterization of
Payments. Any payment
made to a Concierge Indemnified Party or a Seller Indemnified Party
pursuant to this Article XI shall be treated as an adjustment of
the Purchase Price for all purposes, including Tax purposes, to the
maximum extent permitted by applicable Legal
Requirements.

 

43

 

11.10 Procedure for
Indemnification – Third Party Claims.

(a) Promptly after
receipt by an indemnified party under Section 11.2 or 11.3 of
notice of the commencement by a third party of any Proceeding
against it (a “Third Party
Claim”), such indemnified party will, if a claim is to
be made against an indemnifying party under such Section, promptly
give notice to the indemnifying party of the commencement of such
Proceeding (a “Third Party Claim
Notice”).

(b) If any Third Party
Claim is brought against a party and such party gives Third Party
Claim Notice to the indemnifying party of the commencement of the
Proceeding forming the basis of the Third Party Claim, the
indemnifying party will be entitled to participate in such
Proceeding and, to the extent that it wishes (unless the
indemnifying party is also a party to such Proceeding and the
indemnified party is advised in writing by its counsel that joint
representation would be inappropriate under applicable standards of
professional conduct), or (ii) the indemnifying party fails to
provide reasonable assurance to the indemnified party of its
financial capacity to defend such Proceeding and provide
indemnification with respect to such Proceeding), to assume the
defense of such Proceeding and, after notice from the indemnifying
party to the indemnified party of its election to assume the
defense of such Proceeding, the indemnifying party will not be
liable to the indemnified party under this Article XI for any fees
of other counsel or any other expenses with respect to the defense
of such Proceeding subsequently incurred by the indemnified party
in connection with the defense of such Proceeding. If the
indemnifying party assumes the defense of a Proceeding, no
compromise or settlement of such claims may be effected by the
indemnifying party without the indemnified party’s consent
unless (A) there is no finding or admission of any violation of
Legal Requirements, and (B) the sole relief provided is monetary
damages that are paid in full by the indemnifying party. If a Third
Party Claim Notice is given to the indemnifying party and the
indemnifying party does not, within ten (10) days after the Third
Party Claim Notice is given, give notice to the indemnified party
of its election to assume the defense of such Proceeding, the
indemnified party shall proceed with the defense of such Third
Party Claim; provided,
however, that no compromise or settlement of such claims may
be effected by the indemnified party without the indemnifying
party’s consent.

(c) Notwithstanding the
foregoing, if an indemnified party determines in good faith that
there is a reasonable probability that a Proceeding may adversely
affect it or its Affiliates other than as a result of monetary
damages for which it would be entitled to indemnification under
this Agreement, the indemnified party may, by notice to the
indemnifying party, and at its sole cost and expense, participate
in the defense, compromise or settlement of such
Proceeding.

11.11 Procedure for
Indemnification – Other Claims. A claim for indemnification for any
matter not involving a Third Party Claim may be asserted by notice
to the party from whom indemnification is sought.

ARTICLE
XII

GENERAL
PROVISIONS

12.1 Expenses. Except as otherwise expressly provided
in this Agreement, each party to this Agreement will bear its
respective expenses incurred in connection with the preparation,
negotiation and execution of, and performance of its obligations
under, this Agreement, including all fees and expenses of its
Representatives; provided,
however, that for the avoidance of doubt, Concierge shall
pay the full amount of the filing fee required in connection with
any filings (if any) required under the HSR Act. In the event of
termination of this Agreement, the obligation of each party to pay
its own expenses will be subject to any rights of such party
arising from a breach of this Agreement by another
party.

 

44

 

12.2 Public
Announcements. Any
public announcement or similar publicity with respect to this
Agreement or the Contemplated Transactions will be made, if at all,
at such time and in such manner as Concierge and Wainwright
mutually agree, unless otherwise required by applicable Legal
Requirements. Wainwright and Concierge will consult with each other
concerning the means by which the Acquired Companies’
employees, customers, and suppliers and others having dealings with
the Acquired Companies will be informed of the Contemplated
Transactions, and Concierge will have the right to be present for
any such communication.

12.3 Confidentiality.
Between the date of this Agreement and the Closing Date, except as
expressly contemplated by this Agreement, each of Concierge and
Wainwright shall continue to be bound by the terms of the
Confidentiality Agreement. If the Contemplated Transactions are not
consummated, each party will return or destroy as much of such
written information as the other party may reasonably request, and
each Party will continue to be bound by the Confidentiality
Agreement in accordance with its terms.

12.4 Notices. All notices, consents, waivers, and
other communications under this Agreement must be in writing and
will be deemed to have been duly given when (a) delivered by hand
(with written confirmation of receipt), (b) sent by telecopier
(with written confirmation of receipt), provided that a copy is
mailed by registered mail, return receipt requested, or (c) when
received by the addressee, if sent by a nationally recognized
overnight delivery service (receipt requested), in each case to the
appropriate addresses and telecopier numbers set forth below (or to
such other addresses and telecopier numbers as a party may
designate by notice to the other parties):

 

Concierge
Technologies, Inc.

29115
Valley Center Rd., K-206

Valley
Center, CA 92082

Attn:
David Neibert, CEO

Fax:
888.312.0124

 

With a
copy to:

 

Horwitz
+ Armstrong, A Professional Law Corporation

14
Orchard, Suite 200

 Lake
Forest, CA 92630

Attn:
Lawrence W. Horwitz, Esq.

Fax:
949.540.6578

 

 

45

 

 

Wainwright:

 

Wainwright
Holdings, Inc.

Wainwright
Inc.

1999
Harrison Street

Suite
1530

Oakland,
CA 94612

Attention:
Nick Gerber

Facsimile
No: 925.376.3490

 

with a
copy to:

Sutherland
Asbill & Brennan LLP

700
Sixth St. NW

Washington,
DC 20001

Attention:
James M. Cain, Esq.

Facsimile
No.: 202.637.3593

 

Sellers:

 

See
signature pages of Sellers on Investor Questionnaires

12.5 Jurisdiction; Service of
Process. Any action
or proceeding seeking to enforce any provision of, or based on any
right arising out of, this Agreement may be brought against any of
the parties in the courts of the State of California, Orange
County, or, if it has or can acquire jurisdiction, in the United
States District Court located in Orange County, California, and
each of the parties consents to the jurisdiction of such courts
(and of the appropriate appellate courts) in any such action or
proceeding and waives any objection to venue laid therein. Process
in any action or proceeding referred to in the preceding sentence
may be served on any party anywhere in the world.

12.6 Further
Assurances. The
parties agree (a) to furnish upon request to each other such
further information, (b) to execute and deliver to each other
such other documents, and (c) to do such other acts and
things, all as the other party may reasonably request for the
purpose of carrying out the intent of this Agreement and the
documents referred to in this Agreement.

12.7 Waiver. Neither the failure nor any delay by
any party in exercising any right, power, or privilege under this
Agreement or the documents referred to in this Agreement will
operate as a waiver of such right, power, or privilege, and no
single or partial exercise of any such right, power, or privilege
will preclude any other or further exercise of such right, power,
or privilege or the exercise of any other right, power, or
privilege. To the maximum extent permitted by applicable law,
(a) no claim or right arising out of this Agreement or the
documents referred to in this Agreement can be discharged by one
party, in whole or in part, by a waiver or renunciation of the
claim or right unless in writing signed by the other party;
(b) no waiver that may be given by a party will be applicable
except in the specific instance for which it is given; and
(c) no notice to or demand on one party will be deemed to be a
waiver of any obligation of such party or of the right of the party
giving such notice or demand to take further action without notice
or demand as provided in this Agreement or the documents referred
to in this Agreement.

12.8 Entire Agreement and
Modification. This
Agreement supersedes all prior agreements between the parties with
respect to its subject matter (other than the Confidentiality
Agreement, which shall, except as expressly contemplated by this
Agreement, remain in full force and effect) and constitutes (along
with the documents referred to in this Agreement) a complete and
exclusive statement of the terms of the agreement between the
parties with respect to its subject matter. This Agreement may not
be amended except by a written agreement executed by the party to
be charged with the amendment.

 

46

 

12.9 Disclosure
Letters.
Notwithstanding anything in this Agreement to the contrary, the
mere inclusion of an item as an exception to a representation or
warranty in the Wainwright Disclosure Letter or Concierge
Disclosure Letter, as applicable, shall not be deemed an admission
that such item represents a material exception or material fact,
event or circumstance or that such item has had or would be
reasonably likely to have a Wainwright Material Adverse Effect,
Fund Material Adverse Effect or a Concierge Material Adverse
Effect, as applicable. Each part of the Wainwright Disclosure
Letter and Concierge Disclosure Letter shall be numbered to
correspond with the sections and subsections contained in this
Agreement; provided,
however, that the disclosure in any Part of the Wainwright
Disclosure Letter and Concierge Disclosure Letter, as applicable,
shall qualify (i) the corresponding section or subsection, as the
case may be, of this Agreement, (ii) other sections or subsections
of this Agreement to the extent specifically cross-referenced in
such section or subsection thereof, and (iii) other sections or
subsections of this Agreement to the extent that such disclosure
would be applicable to such other sections or
subsections.

12.10 Assignments, Successors,
and No Third-Party Rights. Neither party may assign any of its
rights under this Agreement without the prior consent of the other
parties. Subject to the preceding sentence, this Agreement will
apply to, be binding in all respects upon, and inure to the benefit
of the successors and permitted assigns of the parties. Nothing
expressed or referred to in this Agreement will be construed to
give any Person other than the parties to this Agreement any legal
or equitable right, remedy, or claim under or with respect to this
Agreement or any provision of this Agreement. This Agreement and
all of its provisions and conditions are for the sole and exclusive
benefit of the parties to this Agreement and their successors and
assigns.

12.11 Severability.
If any provision of this Agreement is held invalid or unenforceable
by any court of competent jurisdiction, the other provisions of
this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or
degree will remain in full force and effect to the extent not held
invalid or unenforceable.

12.12 Section Headings;
Construction. The
headings of Sections in this Agreement are provided for convenience
only and will not affect its construction or interpretation. All
references to “Section” or “Sections” refer
to the corresponding Section or Sections of this Agreement. All
words used in this Agreement will be construed to be of such gender
or number as the circumstances require. Unless otherwise expressly
provided, the word “including” does not limit the
preceding words or terms.

12.13 Governing
Law. This Agreement
will be governed by the laws of the State of California without
regard to conflicts of laws principles.

12.14 Counterparts.
This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and
all of which, when taken together, will be deemed to constitute one
and the same agreement.

 

[Signature
pages follow]

 

 

47

 

 

 

               
IN WITNESS WHEREOF, the
parties have executed and delivered this Agreement as of the date
first written above.

 

CONCIERGE
TECHNOLOGIES, INC.

 

 

 

By:                                                              

Its:                                                               

 

 

WAINWRIGHT
HOLDINGS, INC.

 

By:                                                               

Its:                                                              
 

 

 

 

 

[signature page to Stock Purchase
Agreement]

 

 

 

 

THE
NICHOLAS & MELINDA GERBER LIVING TRUST

 

 

 

__________________________  
           
 

By: 
                                                              

Its:                                                               

 

[signature page to Stock Purchase
Agreement]

 

 

 

 

 

GERBER
FAMILY IRREVOCABLE TRUST

 

 

 

__________________________  
           

By:                                                               

Its:                                                               

 

[signature page to Stock Purchase
Agreement]

 

 

 

 

 

 

 

__________________________ 

Jeremy
Gerber

 

 

 

__________________________ 

Belinda
Gerber

 

[signature page to Stock Purchase
Agreement]

 

 

 

 

 

 

 

__________________________ 

Eliot
Gerber

 

 

 

__________________________ 

Sheila
Gerber

 

 

[signature page to Stock Purchase
Agreement]

 

 

 

 

 

 

SCHOENBERGER
FAMILY TRUST

 

 

 

__________________________  
           

By:                                                               

Its:                                                               

 

 

 

[signature page to Stock Purchase
Agreement]

 

 

 

 

 

YEE-NGIM
FAMILY TRUST

 

 

 

__________________________  
           

By:                                                               

Its:                                                               

 

[signature page to Stock Purchase
Agreement]

 

 

 

 

 

 

 

__________________________ 

Robert
Nguyen

 

 

 

__________________________ 

Mitzi
Wong-Nguyen

 

 

 

[signature page to Stock Purchase
Agreement]

 

 

 

 

EXHIBIT
A

 

FUNDS

 

1.

United States Oil
Fund, LP

2.

United States
Natural Gas Fund, LP

3.

United States 12
Month Oil Fund, LP

4.

United States
Gasoline Fund, LP

5.

United States
Diesel-Heating Oil Fund, LP

6.

United States
Diesel-Heating Oil Fund, LP

7.

United States Short
Oil Fund, LP

8.

United States 12
Month Natural Gas Fund, LP

9.

United States Brent
Oil Fund, LP

10.

United States
Commodity Index Fund

11.

United States
Copper Index Fund

12.

United States
Agriculture Index Fund

13.

United States
Canadian Crude Oil Index Fund

14.

REX USCF MLP Index
Fund

15.

REX S&P MLP
Inverse Fund

16.

Stock Split Index
Fund

17.

USCF INDXX
Restaurant Leaders ETF

18.

USCF Dynamic
Commodity Index ETF

19.

United States
Commodity Index Funds Trust

20.

USCF Funds
Trust

21.

USCF ETF
Trust

22.

USCF Mutual Funds
Trust

 

 

 

 

 

EXHIBIT
B

 

WAINWRIGHT SHARES; PRO RATA PERCENTAGES;

INDEMNIFICATION PERCENTAGES AND CONCIERGE
SHARES

 

 

[INFORMATION REDACTED]

 

 

 

 

 

 

 

  Concierge
Technologies, Inc. agrees that copies of the Concierge Disclosure
Letter and the Wainwright Disclosure Letter will be furnished
supplementally to the Commission upon request.Exhibit 10.1

 

 

 

 

TAX RECEIVABLE AGREEMENT

 

 

by and among

 

 

CAMPING WORLD HOLDINGS, INC.

 

 

the several MEMBERS (as defined herein)

 

 

MANAGEMENT REPRESENTATIVE (as defined herein) and

 

 

OTHER MEMBERS OF CWGS ENTERPRISES, LLC
 FROM TIME TO TIME PARTY HERETO

 

 

Dated as of [    ], 2016

 

 

 

 

 

CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    
	
Article I.   DEFINITIONS
    	
2
    
	
 
    	
 
    	
 
    
	
Section 1.1
    	
Definitions
    	
2
    
	
Section 1.2
    	
Rules of   Construction
    	
10
    
	
 
    	
 
    	
 
    
	
Article II. DETERMINATION   OF REALIZED TAX BENEFIT
    	
11
    
	
 
    	
 
    	
 
    
	
Section 2.1
    	
Basis Adjustments; the   LLC 754 Election
    	
11
    
	
Section 2.2
    	
Basis Schedules
    	
12
    
	
Section 2.3
    	
Tax Benefit Schedules
    	
12
    
	
Section 2.4
    	
Procedures; Amendments
    	
13
    
	
 
    	
 
    	
 
    
	
Article III. TAX   BENEFIT PAYMENTS
    	
14
    
	
 
    	
 
    	
 
    
	
Section 3.1
    	
Timing and Amount of   Tax Benefit Payments
    	
14
    
	
Section 3.2
    	
No Duplicative Payments
    	
17
    
	
Section 3.3
    	
Pro-Ration of Payments   as Between the Members
    	
17
    
	
Section 3.4
    	
Optional Estimated   Payment Procedure
    	
18
    
	
Section 3.5
    	
Changes; Reserves;   Suspension of Payments
    	
19
    
	
 
    	
 
    	
 
    
	
Article IV.   TERMINATION
    	
20
    
	
 
    	
 
    	
 
    
	
Section 4.1
    	
Early Termination of   Agreement; Breach of Agreement
    	
20
    
	
Section 4.2
    	
Early Termination   Notice
    	
21
    
	
Section 4.3
    	
Payment Upon Early   Termination
    	
22
    
	
 
    	
 
    	
 
    
	
Article V.   SUBORDINATION AND LATE PAYMENTS
    	
23
    
	
 
    	
 
    	
 
    
	
Section 5.1
    	
Subordination
    	
23
    
	
Section 5.2
    	
Late Payments by the   Corporation
    	
23
    
	
 
    	
 
    	
 
    
	
Article VI. TAX   MATTERS; CONSISTENCY; COOPERATION
    	
23
    
	
 
    	
 
    	
 
    
	
Section 6.1
    	
Participation in the   Corporation’s and the LLC’ Tax Matters
    	
23
    
	
Section 6.2
    	
Consistency
    	
23
    
	
Section 6.3
    	
Cooperation
    	
24
    
	
 
    	
 
    	
 
    
	
Article VII.   MISCELLANEOUS
    	
24
    
	
 
    	
 
    	
 
    
	
Section 7.1
    	
Notices
    	
24
    
	
Section 7.2
    	
Counterparts
    	
26
    
	
Section 7.3
    	
Entire Agreement; No   Third Party Beneficiaries
    	
26
    
	
Section 7.4
    	
Governing Law
    	
26
    
	
Section 7.5
    	
Severability
    	
26
    

 

i

 

	
Section 7.6
    	
Assignments;   Amendments; Successors; No Waiver
    	
26
    
	
Section 7.7
    	
Titles and Subtitles
    	
27
    
	
Section 7.8
    	
Resolution of Disputes
    	
27
    
	
Section 7.9
    	
Reconciliation
    	
28
    
	
Section 7.10
    	
Withholding
    	
29
    
	
Section 7.11
    	
Admission of the   Corporation into a Consolidated Group; Transfers of Corporate Assets
    	
29
    
	
Section 7.12
    	
Confidentiality
    	
30
    
	
Section 7.13
    	
Change in Law
    	
30
    
	
Section 7.14
    	
Interest Rate   Limitation
    	
31
    
	
Section 7.15
    	
Independent Nature of   Rights and Obligations
    	
31
    
	
Section 7.17
    	
Management   Representative
    	
32
    
	
 
    	
 
    	
 
    
	
Exhibits
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit A
    	
-
    	
Form of   Joinder Agreement
    	
 
    
				

 

ii

 

TAX RECEIVABLE AGREEMENT

 

This TAX RECEIVABLE AGREEMENT (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time ,this “Agreement”), dated as of [    ], 2016, is hereby entered into by and among Camping World Holdings, Inc., a Delaware corporation (the “Corporation”), CWGS Enterprises, LLC, a Delaware limited liability company (the “LLC”), each of the Members from time to time party hereto, and the Management Representative.  Capitalized terms used but not otherwise defined herein have the respective meanings set forth in Section 1.01.

 

RECITALS

 

WHEREAS, the LLC is treated as a partnership for U.S. federal income tax purposes;

 

WHEREAS, each of the members of the LLC other than the Corporation (such members and each other Person who becomes party hereto by satisfying the Joinder Requirement, the “Members”) owns (or, in the case of such other Persons, will own) limited liability company interests in the LLC (the “Units”);

 

WHEREAS, on the date hereof, the Corporation will become the managing member of the LLC;

 

WHEREAS, on the date hereof and exclusive of the Over-Allotment Option (as defined below), the Corporation issued [   ] shares of its Class A common stock, par value $0.01 per share (the “Class A Common Stock”) to certain purchasers in an initial public offering of its Class A Common Stock (the “IPO”);

 

WHEREAS, on the date hereof, the Corporation used a portion of the net proceeds from the IPO to purchase newly-issued Units directly from the LLC (the “Base Offering Capital Contribution”), which proceeds will be used to repay or prepay certain indebtedness of the LLC and for general corporate purposes;

 

WHEREAS, on and after the date hereof, the Corporation may issue additional Class A Common Stock in connection with the IPO as a result of the exercise by the underwriters of their over-allotment option (the “Over-Allotment Option”) and, if the Over-Allotment Option is in fact exercised in whole or in part, any additional net proceeds will be used by the Corporation to acquire additional newly-issued Units directly from the LLC (the “Over-Allotment Capital Contribution” and, together with the Base Offering Capital Contribution, the “Corporation’s Capital Contribution”), which proceeds will be used to repay or prepay certain indebtedness of the LLC and for general corporate purposes;

 

WHEREAS, on and after the date hereof, pursuant to the LLC Agreement, each Member has the right, in its sole discretion, from time to time to require the LLC to redeem (a “Redemption”) all or a portion of such Member’s Units for cash or under certain circumstances, Class A Common Stock; provided that, at the election of the Corporation in its sole discretion,

 

1

 

the Corporation may effect a direct exchange (a “Direct Exchange”) of such cash or shares of Class A Common Stock for such Units;

 

WHEREAS, the LLC and any direct or indirect subsidiary (owned through a chain of pass-through entities) of the LLC that is treated as a partnership for U.S. federal income tax purposes (together with the LLC and any direct or indirect subsidiary (owned through a chain of pass-through entities) of the LLC that is treated as a disregarded entity for U.S. federal income tax purposes, the “the LLC Group”) will have in effect an election under Section 754 of the Code (as defined herein) for the Taxable Year (as defined herein) in which any Exchange (as defined below) occurs, which election should result in an adjustment to the Corporation’s share of the tax basis of the assets owned by the LLC Group as of the date of the Exchange, with a consequent result on the taxable income subsequently derived therefrom; and

 

WHEREAS, the parties to this Agreement desire to provide for certain payments and make certain arrangements with respect to any tax benefits to be derived by the Corporation as the result of Exchanges and the receipt of payments under this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements set forth herein, and intending to be legally bound hereby, the parties hereto agree as follows:

 

ARTICLE I.
 DEFINITIONS

 

Section 1.1            Definitions.  As used in this Agreement, the terms set forth in this Article I shall have the following meanings (such meanings to be equally applicable to both (i) the singular and plural and (ii) the active and passive forms of the terms defined).

 

“Actual Interest Amount” is defined in Section 3.1(b)(vii) of this Agreement.

 

“Advisory Firm” means Ernst & Young LLP or any other accounting firm that is nationally recognized as being an expert in Covered Tax matters and is not an Affiliate of the Corporation, selected by the Corporation.

 

“Advisory Firm Letter” means a letter, that has been prepared by the Advisory Firm used by the Corporation in connection with the performance of its obligations under this Agreement, which states that the relevant Schedules, notices or other information to be provided by the Corporation to the Members, along with all supporting schedules and work papers, were prepared in a manner that is consistent with the terms of this Agreement and, to the extent not expressly provided in this Agreement, on a reasonable basis in light of the facts and law in existence on the date such Schedules, notices or other information were delivered by the Corporation to the Members.

 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such first Person.

 

“Agreed Rate” means LIBOR plus 100 basis points.

 

2

 

“Agreement” is defined in the preamble.

 

“Amended Schedule” is defined in Section 2.4(b) of this Agreement.

 

“Assumed State and Local Tax Rate” means the tax rate equal to the sum of the products of (x) the LLC’s income tax apportionment rate(s) for each state and local jurisdiction in which the LLC files income or franchise tax returns for the relevant Taxable Year and (y) the highest corporate income and franchise tax rate(s) for each such state and local jurisdiction in which the LLC files income tax returns for each relevant Taxable Year; provided, that the Assumed State and Local Tax Rate calculated pursuant to the foregoing shall be reduced by the assumed federal benefit received by the Corporation with respect to state and local jurisdiction income taxes (with such benefit calculated as the product of (x) the Corporation’s marginal U.S. federal income tax rate for the relevant Taxable Year and (y) the Assumed State and Local Tax Rate (without regard to this proviso)).

 

“Attributable” is defined in Section 3.1(b)(i) of this Agreement.

 

“Audit Committee” means the audit committee of the Board.

 

“Basis Adjustment” means the increase or decrease to the tax basis of, or the Corporation’s share of, the tax basis of the Reference Assets (i) under Section 734(b), 743(b) and 754 of the Code and, in each case, the comparable sections of U.S. state and local tax law (in situations where, following an Exchange, the LLC remains in existence as an entity for tax purposes) and (ii) under Sections 732 and 1012 of the Code and, in each case, the comparable sections of U.S. state and local tax law (in situations where, as a result of one or more Exchanges, the LLC becomes an entity that is disregarded as separate from its owner for tax purposes), in each case, as a result of any Exchange and any payments made under this Agreement.  Notwithstanding any other provision of this Agreement, the amount of any Basis Adjustment resulting from an Exchange of one or more Units shall be determined without regard to any Pre-Exchange Transfer of such Units and as if any such Pre-Exchange Transfer had not occurred.

 

“Basis Schedule” is defined in Section 2.2 of this Agreement.

 

“Beneficial Owner” means, with respect to any security, a Person who directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares: (i) voting power, which includes the power to vote, or to direct the voting of, with respect to such security and/or (ii) investment power, which includes the power to dispose of, or to direct the disposition of, such security.

 

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

 

“Business Day” means any day excluding Saturday, Sunday and any day that is a legal holiday under the laws of the State of New York or is a day on which banking institutions located in New York are closed.

 

“Change Notice” is defined in Section 3.5(a) of this Agreement.

 

3

 

“Change of Control” means the occurrence of any of the following events:

 

(1) any “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, or any successor provisions thereto (the “Exchange Act”), but excluding any employee benefit plan of such person and its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan, and excluding the Permitted Transferees) becomes the “beneficial owner” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of shares of Common Stock, Preferred Stock and/or any other class or classes of capital stock of the Corporation (if any) representing in the aggregate more than fifty percent (50%) of the voting power of all of the outstanding shares of capital stock of the Corporation entitled to vote;

 

(2) the shareholders of the Corporation approve a plan of complete liquidation or dissolution of the Corporation or there is consummated an agreement or series of related agreements for the sale or other disposition, directly or indirectly, by the Corporation of all or substantially all of the Corporation’s assets (including a sale of all or substantially all of the assets of the LLC);

 

(3)  there is consummated a merger or consolidation of the Corporation with any other corporation or entity, and, immediately after the consummation of such merger or consolidation, the voting securities of the Corporation immediately prior to such merger or consolidation do not continue to represent, or are not converted into, more than 50% of the combined voting power of the then outstanding voting securities of the Person resulting from such merger or consolidation or, if the surviving company is a Subsidiary, the ultimate parent thereof; or

 

(4) the Corporation ceases to be the sole managing member of the LLC.

 

Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the Class A Common Stock and Class B Common Stock immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in and voting control over, and own substantially all of the shares of, an entity which owns all or substantially all of the assets of the Corporation immediately following such transaction or series of transactions.

 

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

 

“Code” means the U.S. Internal Revenue Code of 1986, as amended, and applicable Treasury Regulations promulgated thereunder.

 

“Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or other agreement.

 

“Corporation” is defined in the preamble to this Agreement.

 

4

 

“Corporation’s Capital Contribution” is defined in the recitals to this Agreement.

 

“Covered Person” is defined in Section 7.17 of this Agreement.

 

“Covered Tax Benefit” is defined in Section 3.3(a) of this Agreement.

 

“Covered Taxes” means any and all U.S. federal, state, local and foreign taxes, assessments or similar charges that are based on or measure with respect to net income or profits  and any interest related thereto.

 

“Crestview” means CVRV Acquisition LLC, a Delaware limited liability company, Crestview Partners II GP, L.P., a Cayman Islands exempted limited partnership and each of their respective Permitted Transferees in the LLC Agreement.

 

“Cumulative Net Realized Tax Benefit” is defined in Section 3.1(b)(iii) of this Agreement.

 

“Default Rate” means the sum of (i) the highest rate applicable at the time under the Senior Secured Credit Facilities plus (ii) 200 basis points, it being understood that if there are no Senior Secured Credit Facilities then the Default Rate shall be LIBOR plus 550 basis points.

 

“Default Rate Interest” is defined in Section 3.1(b)(ix) of this Agreement.

 

“Determination” shall have the meaning ascribed to such term in Section 1313(a) of the Code or similar provision of U.S. state tax law, as applicable, or any other event (including the execution of IRS Form 870-AD) that finally and conclusively establishes the amount of any liability for tax.

 

“Direct Exchange” is defined in the recitals to this agreement.

 

“Dispute” is defined in Section 7.8(a) of this Agreement.

 

“Early Termination Effective Date” means the date of an Early Termination Notice for purposes of determining the Early Termination Payment.

 

“Early Termination Notice” is defined in Section 4.2 of this Agreement.

 

“Early Termination Payment” is defined in Section 4.3(b) of this Agreement.

 

“Early Termination Rate” means the lesser of (i) 6.50% per annum, compounded annually, and (ii) the Agreed Rate.

 

“Early Termination Reference Date” is defined in Section 4.2 of this Agreement.

 

“Early Termination Schedule” is defined in Section 4.2 of this Agreement.

 

“Estimated Tax Benefit Payment” is defined in Section 3.4 of this Agreement.

 

“Exchange” means any Direct Exchange or Redemption.

 

5

 

“Exchange Date” means the date of any Exchange.

 

“Expert” is defined in Section 7.9 of this Agreement.

 

“Extension Rate Interest” is defined in Section 3.1(b)(viii) of this Agreement.

 

“Final Payment Date” means any date on which a payment is required to be made pursuant to this Agreement.  For the avoidance of doubt, the Final Payment Date in respect of a Tax Benefit Payment is determined pursuant to Section 3.1(a) of this Agreement.

 

“GAAP” means generally accepted accounting principles in the United States, as in effect from time to time; provided, however, that if the Corporation notifies the Members that the Corporation requests an amendment to any provision hereof to eliminate the effect of any change in GAAP or in the application thereof occurring after the date of this Agreement (including through the adoption of International Financial Reporting Standards and applicable accounting requirements set by the International Accounting Standards Board or any successor thereto (the “IFRS”)), on the operation of such provision (or if the Members notify the Corporation that they request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof (including through the adoption of IFRS), then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.

 

“Hypothetical Tax Liability” means, with respect to any Taxable Year, the hypothetical liability of the Corporation that would arise in respect of Covered Taxes, using the same methods, elections, conventions and similar practices used on the actual relevant Tax Returns of the Corporation but (i) calculating depreciation, amortization, or other similar deductions, or otherwise calculating any items of income, gain, or loss, using the Corporation’s share of the Non-Adjusted Tax Basis as reflected on the Basis Schedule, including amendments thereto for the Taxable Year and (ii) excluding any deduction attributable to Imputed Interest, Actual Interest Amounts or Default Rate Interest for the Taxable Year; provided, that for purposes determining the Hypothetical Tax Liability, the combined tax rate for U.S. state and local Covered Taxes shall be the Assumed State and Local Tax Rate.  For the avoidance of doubt, the Hypothetical Tax Liability shall be determined without taking into account the carryover or carryback of any tax item attributable to Imputed Interest, Actual Interest, Default Rate Interest or a Basis Adjustment (or portions thereof).

 

“Imputed Interest” is defined in Section 3.1(b)(vi) of this Agreement.

 

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

 

“IPO” is defined in the recitals to this Agreement

 

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

 

6

 

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

 

“Joinder Requirement” is defined in Section 7.6(b) of this Agreement.

 

“LIBOR” means during any period, a rate per annum equal to (i) the ICE LIBOR rate for a period of one year (“ICE LIBOR”), as published on the applicable Bloomberg screen page (or such other commercially available source providing quotations of ICE LIBOR as may be designated by the Corporation from time to time) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such period, for dollar deposits (for delivery on the first day of such period) with a term equivalent to such period.

 

“LLC” is defined in the recitals to this Agreement.

 

“LLC Agreement” means that certain Amended and Restated Limited Liability Company Agreement of the LLC, dated as of the date hereof, as such agreement may be further amended, restated, supplemented and/or otherwise modified from time to time.

 

“Management Representative” is defined in Section 7.17 of this Agreement.

 

“Market Value” means the Common Unit Redemption Price, as defined in the LLC Agreement, determined as of an Early Termination Date.

 

“Members” is defined in the recitals to this Agreement.

 

“ML Acquisition” means ML Acquisition Company, LLC, a Delaware limited liability company and CWGS Holdings, LLC, a Delaware limited liability company.

 

“ML Related Parties” means ML Acquisition and its Permitted Transferees under the LLC Agreement.

 

“Net Tax Benefit” is defined in Section 3.1(b)(ii) of this Agreement.

 

“Non-Adjusted Tax Basis” means, with respect to any Reference Asset at any time, the tax basis that such asset would have had at such time if no Basis Adjustments had been made.

 

“Objection Notice” is defined in Section 2.4(a)(i) of this Agreement.

 

“Over-Allotment Option” is defined in the recitals to this Agreement.

 

“Parties” means the parties named on the signature pages to this agreement and each additional party that satisfies the Joinder Requirement, in each case with their respective successors and assigns.

 

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

 

7

 

 “Permitted Transfer” means the transfer of Units by a holder of Units to any transferee as permitted by the LLC Agreement.

 

“Permitted Transferee” means a holder of Units pursuant to a Permitted Transfer.

 

“Pre-Exchange Transfer” means any transfer of one or more Units (including upon the death of a Member) (i) that occurs after the IPO but prior to an Exchange of such Units and (ii) to which Section 743(b) of the Code applies.

 

“Realized Tax Benefit” is defined in Section 3.1(b)(iv) of this Agreement.

 

“Realized Tax Detriment” is defined in Section 3.1(b)(v) of this Agreement.

 

“Reconciliation Dispute” is defined in Section 7.9 of this Agreement.

 

“Reconciliation Procedures” is defined in Section 2.4(a) of this Agreement.

 

“Redemption” has the meaning in the recitals to this Agreement.

 

“Reference Asset” means any tangible or intangible asset of the LLC or any of its successors or assigns, and whether held directly by the LLC or indirectly by the LLC through any entity in which the LLC now holds or may subsequently hold an ownership interest (but only if such entity is treated as a partnership or disregarded entity for purposes of the applicable tax), at the time of an Exchange.  A Reference Asset also includes any asset the tax basis of which is determined, in whole or in part, by reference to the tax basis of an asset that is described in the preceding sentence, including “substituted basis property” within the meaning of Section 7701(a)(42) of the Code.

 

“Reserve Notice” is defined in Section 3.5(b).

 

“Schedule” means any of the following: (i) a Basis Schedule, (ii) a Tax Benefit Schedule, or (iii) the Early Termination Schedule, and, in each case, any amendments thereto.

 

“Senior Obligations” is defined in Section 5.1 of this Agreement.

 

“Senior Secured Credit Facilities” means the indebtedness described in that certain agreement entered into on November 20, 2013 (as amended) among CWGS Group, LLC and CWGS, LLC, as borrower and parent-guarantor, respectively, and Goldman Sachs Bank USA and other lenders for a senior secured credit facility, or any replacement or refinancing thereof.

 

“Subsidiary” means, with respect to any Person and as of the date of any determination, any other Person as to which such Person, owns, directly or indirectly, or otherwise controls, more than 50% of the voting power or other similar interests, or the sole general partner interest, or managing member or similar interest, of such Person.

 

“Subsidiary Stock” means any stock or other equity interest in any Subsidiary of the Corporation that is treated as a corporation for U.S. federal income tax purposes.

 

8

 

“Tax Benefit Payment” is defined in Section 3.1(b) of this Agreement.

 

“Tax Benefit Schedule” is defined in Section 2.3(a) of this Agreement.

 

“Tax Return” means any return, declaration, report or similar statement required to be filed with respect to taxes (including any attached schedules), including, without limitation, any information return, claim for refund, amended return and declaration of estimated tax.

 

“Taxable Year” means a taxable year of the Corporation as defined in Section 441(b) of the Code or comparable section of U.S. state or local tax law, as applicable (and, therefore, for the avoidance of doubt, may include a period of less than 12 months for which a Tax Return is made), ending on or after the closing date of the IPO.

 

“Taxing Authority” means any national, federal, state, county, municipal, or local government, or any subdivision, agency, commission or authority thereof, or any quasi-governmental body, or any other authority of any kind, exercising regulatory or other authority in relation to tax matters.

 

“Termination Objection Notice” is defined in Section 4.2 of this Agreement.

 

“Treasury Regulations” means the final, temporary, and (to the extent they can be relied upon) proposed regulations under the Code, as promulgated from time to time (including corresponding provisions and succeeding provisions) as in effect for the relevant taxable period.

 

“True-Up” is defined in Section 3.4 of this Agreement.

 

“U.S.” means the United States of America.

 

“Units” is defined in the recitals to this Agreement.

 

“Valuation Assumptions” means, as of an Early Termination Effective Date, the assumptions that:

 

(1)                                 in each Taxable Year ending on or after such Early Termination Effective Date, the Corporation will have taxable income sufficient to fully use the deductions arising from the Basis Adjustments and the Imputed Interest during such Taxable Year or future Taxable Years (including, for the avoidance of doubt, Basis Adjustments and Imputed Interest that would result from future Tax Benefit Payments that would be paid in accordance with the Valuation Assumptions) in which such deductions would become available;

 

(2)                                 the U.S. federal income tax rates that will be in effect for each such Taxable Year will be those specified for each such Taxable Year by the Code and other law as in effect on the Early Termination Effective Date, except to the extent any change to such tax rates for such Taxable Year have already been enacted into law and the combined U.S. state and local income tax rates shall be the Assumed State and Local Tax Rate;

 

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(3)                                 all taxable income of the Corporation will be subject to the maximum applicable tax rates for each Covered Tax throughout the relevant period; provided, that the combined tax rate for U.S. state and local income taxes shall be the Assumed State and Local Tax Rate;

 

(4)                                 any loss carryovers or carrybacks generated by any Basis Adjustment or Imputed Interest (including such Basis Adjustment and Imputed Interest generated as a result of payments under this Agreement) and available as of the Early Termination Effective Date will be used by the Corporation on a pro rata basis from the date of the Early Termination Schedule through the scheduled expiration date of such loss carryovers or carrybacks;

 

(5)                                 any non-amortizable assets (other than Subsidiary Stock) will be disposed of on the earlier of (i) the fifteenth anniversary of the applicable Basis Adjustment and (ii) the Early Termination Effective Date;

 

(6)                                 any Subsidiary Stock will be deemed never to be disposed of except if Subsidiary Stock is directly disposed of in the Change of Control;

 

(7)                                 if, on the Early Termination Effective Date, any Member has Units that have not been Exchanged, then such Units shall be deemed to be Exchanged for the Market Value that would be received by such Member if such Units had been Exchanged on the Early Termination Effective Date, and such Member shall be deemed to receive the amount of cash such Member would have been entitled to pursuant to Section 4.3(a) had such Units actually been Exchanged on the Early Termination Effective Date; and

 

(8)                                 any payment obligations pursuant to this Agreement will be satisfied on the date that any Tax Return to which such payment obligation relates is required to be filed excluding any extensions.

 

Section 1.2                                    Rules of Construction.  Unless otherwise specified herein:

 

(a)                                 The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.

 

(b)                                 For purposes of interpretation of this Agreement:

 

(i)                                     The words “herein,” “hereto,” “hereof” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision thereof.

 

(ii)                                  References in this Agreement to a Schedule, Article, Section, clause or sub-clause refer to the appropriate Schedule to, or Article, Section, clause or subclause in, this Agreement.

 

(iii)                               References in this Agreement to dollars or “$” refer to the lawful currency of the United States of America.

 

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(iv)                              The term “including” is by way of example and not limitation.

 

(v)                                 The term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form.

 

(c)                                  In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including.”

 

(d)                                 Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Agreement.

 

(e)                                  Unless otherwise expressly provided herein, (a) references to organization documents (including the LLC Agreement), agreements (including this Agreement) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are permitted hereby; and (b) references to any law (including the Code and the Treasury Regulations) shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such law.

 

ARTICLE II.
  DETERMINATION OF REALIZED TAX BENEFIT

 

Section 2.1                                    Basis Adjustments; the LLC 754 Election.

 

(a)                                 Basis Adjustments.  The Parties acknowledge and agree that (A) each Direct Exchange shall give rise to Basis Adjustments and (B) each Redemption using cash or Class A Common Stock contributed to the LLC by the Corporation shall be treated as a direct purchase of Units by the Corporation from the applicable Member pursuant to Section 707(a)(2)(B) of the Code that shall give rise to Basis Adjustments.  In connection with any such Direct Exchange or Redemption, the Parties acknowledge and agree that pursuant to applicable law the Corporation’s share of the basis in the Reference Assets shall be increased by the excess, if any, of (A) the sum of (x) the Market Value of Class A Common Stock or the cash transferred to a Member pursuant to an Exchange as payment for the Units, (y) the amount of payments made pursuant to this Agreement with respect to such Exchange and (z) the amount of liabilities allocated to the Units acquired pursuant to the Exchange, over (B) the Corporation’s proportionate share of the basis of the Referenced Assets immediately after the Exchange attributable to the Units exchanged, determined as if each member of the LLC Group remains in existence as an entity for tax purposes and no member of the LLC Group made the election provided by Section 754 of the Code.

 

For the avoidance of doubt, payments made under this Agreement shall not be treated as resulting in a Basis Adjustment to the extent that such payments are treated as Imputed Interest or are Actual Interest Amounts or Default Rate Interest.

 

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(b)                                 Section 754 Election.  In its capacity as the sole managing member of the LLC, the Corporation will ensure that, on and after the date hereof and continuing throughout the term of this Agreement, the LLC and each of its direct and indirect Subsidiaries that is treated as a partnership for U.S. federal income tax purposes will have in effect an election under Section 754 of the Code (and under any similar provisions of applicable U.S. state or local law).

 

Section 2.2                                    Basis Schedules.  Within ninety (90) calendar days after the filing of the U.S. federal income Tax Return of the Corporation for each relevant Taxable Year, the Corporation shall deliver to ML Acquisition, Crestview and the Management Representative, as applicable, a schedule (the “Basis Schedule”) that shows, in reasonable detail as necessary in order to understand the calculations performed under this Agreement: (a) the Basis Adjustments with respect to the Reference Assets as a result of the relevant Exchanges effected in such Taxable Year and (b) the period (or periods) over which each Basis Adjustment is amortizable and/or depreciable. The Basis Schedule will become final and binding on the Parties pursuant to the procedures set forth in Section 2.4(a) and may be amended by the Parties pursuant to the procedures set forth in Section 2.4(b).

 

Section 2.3                                    Tax Benefit Schedules.

 

(a)                                 Tax Benefit Schedule.  Within ninety (90) calendar days after the filing of the U.S. federal income Tax Return of the Corporation for any Taxable Year in which there is a Realized Tax Benefit or Realized Tax Detriment, the Corporation shall provide to ML Acquisition, Crestview, and the Management Representative, as applicable, a schedule showing, in reasonable detail, the calculation of the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year (a “Tax Benefit Schedule”).  The Tax Benefit Schedule will become final and binding on the Parties pursuant to the procedures set forth in Section 2.4(a), and may be amended by the Parties pursuant to the procedures set forth in Section 2.4(b).

 

(b)                                 Applicable Principles.  Subject to the provisions of this Agreement, the Realized Tax Benefit or Realized Tax Detriment for each Taxable Year is intended to measure the decrease or increase in the actual liability of the Corporation for Covered Taxes for such Taxable Year attributable to the Basis Adjustments, Imputed Interest, Actual Interest Amounts, and Default Rate Interest as determined using a “with and without” methodology described in Section 2.4(a).  Carryovers or carrybacks of any Tax item attributable to any Basis Adjustment, Imputed Interest, Actual Interest Amounts, and Default Rate Interest shall be considered to be subject to the rules of the Code and the Treasury Regulations or the appropriate provisions of U.S. state and local tax law, as applicable, governing the use, limitation and expiration of carryovers or carrybacks of the relevant type.  If a carryover or carryback of any Tax item includes a portion that is attributable to a Basis Adjustment, Imputed Interest, Actual Interest Amounts, and Default Rate Interest (a “TRA Portion”) and another portion that is not (a “Non-TRA Portion”), such portions shall be considered to be used in accordance with the “with and without” methodology so that: (i) the amount of any Non-TRA Portion is deemed utilized first, followed by the amount of any TRA Portion (with the TRA Portion being applied on a proportionate basis consistent with the provisions of Section 3.3(a)); and (ii) in the case of a carryback of a Non-TRA Portion, such carryback shall not affect the original “with and without” calculation made in the prior Taxable Year.  The Parties agree that (i) all Tax Benefit Payments (other than Imputed Interest, Actual Interest Amounts and Default Rate Interest) attributable to

 

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an Exchange will to the extent permitted by applicable law (A) be treated as subsequent upward purchase price adjustments that give rise to further Basis Adjustments for the Corporation and (B) have the effect of creating additional Basis Adjustments for the Corporation in the year of payment, and (ii) as a result, such additional Basis Adjustments will be incorporated into the current Taxable Year continuing until any incremental current Taxable Year benefits equal an immaterial amount.

 

Section 2.4                                    Procedures; Amendments.

 

(a)                                 Procedures.  Each time the Corporation delivers an applicable Schedule to ML Acquisition, Crestview, and the Management Representative, as applicable under this Agreement, including any Amended Schedule delivered pursuant to Section 2.4(b), but excluding any Early Termination Schedule or amended Early Termination Schedule delivered pursuant to the procedures set forth in Section 4.2, the Corporation shall also: (x) deliver supporting schedules and work papers, as determined by the Corporation or as reasonably requested by ML Acquisition, Crestview, and the Management Representative, as applicable, that provide a reasonable level of detail regarding the data and calculations that were relevant for purposes of preparing the Schedule; (y) deliver an Advisory Firm Letter supporting such Schedule; and (z) allow ML Acquisition, Crestview, and the Management Representative, as applicable, and their advisors to have reasonable access to the appropriate representatives, as determined by the Corporation or as reasonably requested by ML Acquisition, Crestview, and the Management Representative, as applicable, at the Corporation and the Advisory Firm in connection with a review of such Schedule.  Without limiting the generality of the preceding sentence, the Corporation shall ensure that any Tax Benefit Schedule that is delivered to ML Acquisition, Crestview, and the Management Representative, as applicable, along with any supporting schedules and work papers, provides a reasonably detailed presentation of the calculation of the actual liability of the Corporation for Covered Taxes (the “with” calculation) and the Hypothetical Tax Liability of the Corporation (the “without” calculation), and identifies any material assumptions or operating procedures or principles that were used for purposes of such calculations.  An applicable Schedule or amendment thereto shall become final and binding on the Parties thirty (30) calendar days from the date on which ML Acquisition, Crestview, and the Management Representative, as applicable, first received the applicable Schedule or amendment thereto unless:

 

(i)                                     ML Acquisition, Crestview, or the Management Representative, as applicable, within thirty (30) calendar days after receiving the applicable Schedule or amendment thereto, provides the Corporation with written notice of a material objection to such Schedule that is made in good faith and that sets forth in reasonable detail ML Acquisition’s, Crestview’s or the Management Representative’s, as applicable, material objection (an “Objection Notice”) or

 

(ii)                                  each of ML Acquisition, Crestview, and the Management Representative, as applicable,  provides a written waiver of its right to deliver an Objection Notice within the time period described in clause (i) above, in which case such Schedule or amendment thereto becomes binding on the date the waiver from each of ML Acquisition, Crestview and the Management Representative, as applicable, is received by the Corporation.

 

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In the event that ML Acquisition, Crestview, or the Management Representative, as applicable, timely delivers an Objection Notice pursuant to clause (i) above, and if the Parties, for any reason, are unable to successfully resolve the issues raised in the Objection Notice within thirty (30) calendar days after receipt by the Corporation of the Objection Notice, the Corporation and ML Acquisition, Crestview, or the Management Representative, as applicable, shall employ the reconciliation procedures as described in Section 7.9 of this Agreement (the “Reconciliation Procedures”).

 

(b)                                 Amended Schedule.  The applicable Schedule for any Taxable Year may be amended from time to time by the Corporation: (i) in connection with a Determination affecting such Schedule; (ii) to correct inaccuracies in the Schedule identified as a result of the receipt of additional factual information relating to a Taxable Year after the date the Schedule was originally provided to ML Acquisition, Crestview, and the Management Representative, as applicable; (iii) to comply with an Expert’s determination under the Reconciliation Procedures applicable to this Agreement; (iv) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year attributable to a carryback or carryforward of a loss or other Tax item to such Taxable Year; (v) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year attributable to an amended Tax Return filed for such Taxable Year; or (vi) to adjust a Basis Schedule to take into account any Tax Benefit Payments made pursuant to this Agreement (any such Schedule, an “Amended Schedule”).

 

ARTICLE III.
  TAX BENEFIT PAYMENTS

 

Section 3.1                                    Timing and Amount of Tax Benefit Payments.

 

(a)                                 Timing of Payments.  Except as provided in Sections 3.4 and 3.5, and subject to Sections 3.2 and 3.3, within three (3) Business Days following the date on which each Tax Benefit Schedule that is required to be delivered by the Corporation to ML Acquisition, Crestview, and the Management Representative, as applicable, pursuant to Section 2.3(a) of this Agreement becomes final in accordance with Section 2.4(a) of this Agreement, the Corporation shall pay to each relevant Member the Tax Benefit Payment as determined pursuant to Section 3.1(b).  Each such Tax Benefit Payment shall be made by wire transfer of immediately available funds to the bank account previously designated by such Members or as otherwise agreed by the Corporation and such Members.  For the avoidance of doubt, the Members shall not be required under any circumstances to return any portion of any Tax Benefit Payment previously paid by the Corporation to the Members (including any portion of any Estimated Tax Benefit Payment or any Early Termination Payment).

 

(b)                                 Amount of Payments.  For purposes of this Agreement, a “Tax Benefit Payment” with respect to any Member means an amount, not less than zero, equal to the sum of: (i) the portion of the Net Tax Benefit that is Attributable to such Member (including Imputed Interest calculated in respect of such amount); and (ii) the Actual Interest Amount.

 

(i)                                     Attributable.  A Net Tax Benefit is “Attributable” to a Member to the extent that it is derived from any Basis Adjustment, Imputed Interest, or Actual Interest

 

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Amount that is attributable to an Exchange undertaken by or with respect to such Member.

 

(ii)                                  Net Tax Benefit.  The “Net Tax Benefit” for a Taxable Year equals the amount of the excess, if any, of (x) 85% of the Cumulative Net Realized Tax Benefit as of the end of such Taxable Year over (y) the aggregate amount of all Tax Benefit Payments previously made under this Section 3.1.  For the avoidance of doubt, if the Cumulative Net Realized Tax Benefit as of the end of any Taxable Year is less than the aggregate amount of all Tax Benefit Payments previously made, no Member shall be required to return any portion of any Tax Benefit Payment previously made by the Corporation to such Member.

 

(iii)                               Cumulative Net Realized Tax Benefit.  The “Cumulative Net Realized Tax Benefit” for a Taxable Year equals the cumulative amount of Realized Tax Benefits for all Taxable Years of the Corporation, up to and including such Taxable Year, net of the cumulative amount of Realized Tax Detriments for the same period.  The Realized Tax Benefit and Realized Tax Detriment for each Taxable Year shall be determined based on the most recent Tax Benefit Schedule or Amended Schedule, if any, in existence at the time of such determination.

 

(iv)                              Realized Tax Benefit.  The “Realized Tax Benefit” for a Taxable Year equals the excess, if any, of the Hypothetical Tax Liability over the actual liability of the Corporation for Covered Taxes; provided, that for purposes of determining the Hypothetical Tax Liability and actual liability of the Corporation for Covered Taxes, the Corporation shall use the Assumed State and Local Tax Rate for purposes of determining such liabilities for all state and local Covered Taxes.  If all or a portion of the actual liability for such Covered Taxes for the Taxable Year arises as a result of an audit by a Taxing Authority of any Taxable Year, such liability shall not be included in determining the Realized Tax Benefit unless and until there has been a Determination.

 

(v)                                 Realized Tax Detriment.  The “Realized Tax Detriment” for a Taxable Year equals the excess, if any, of the actual liability of the Corporation for Covered Taxes over the Hypothetical Tax Liability for such Taxable Year; provided, that for purposes of determining the Hypothetical Tax Liability and actual liability of the Corporation for Covered Taxes, the Corporation shall use the Assumed State and Local Tax Rate for purposes of determining such liabilities for all state and local Covered Taxes.  If all or a portion of the actual liability for such Covered Taxes for the Taxable Year arises as a result of an audit by a Taxing Authority of any Taxable Year, such liability shall not be included in determining the Realized Tax Detriment unless and until there has been a Determination.

 

(vi)                              Imputed Interest.  The parties acknowledge that the principles of Sections 1272, 1274, or 483 of the Code, as applicable, and the principles of any similar provision of U.S. state and local law, will apply to cause a portion of any Net Tax Benefit payable by the Corporation to a Member under this Agreement to be treated as imputed interest (“Imputed Interest”).  For the avoidance of doubt, the deduction for the amount of Imputed Interest as determined with respect to any Net Tax Benefit payable by the

 

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Corporation to a Member shall be excluded in determining the Hypothetical Tax Liability of the Corporation for purposes of calculating Realized Tax Benefits and Realized Tax Detriments pursuant to this Agreement.

 

(vii)                           Actual Interest Amount.  The “Actual Interest Amount” calculated in respect of the Net Tax Benefit for a Taxable Year will equal the amount of any Extension Rate Interest.  For the avoidance of doubt, any deduction for any Actual Interest Amount as determined with respect to any Net Tax Benefit payable by the Corporation to a Member shall be excluded in determining the Hypothetical Tax Liability of the Corporation for purposes of calculating Realized Tax Benefits and Realized Tax Detriments pursuant to this Agreement.

 

(viii)                        Extension Rate Interest.  Subject to Section 3.4, the amount of “Extension Rate Interest” calculated in respect of the Net Tax Benefit (including previously accrued Imputed Interest) for a Taxable Year will equal interest calculated at the Agreed Rate from the due date (without extensions) for filing the U.S. federal income Tax Return of the Corporation for such Taxable Year until the date on which the Corporation makes a timely Tax Benefit Payment to the Member on or before the Final Payment Date as determined pursuant to Section 3.1(a).

 

(ix)                              Default Rate Interest.  In the event that the Corporation does not make timely payment of all or any portion of a Tax Benefit Payment to a Member on or before the Final Payment Date as determined pursuant to Section 3.1(a), the amount of “Default Rate Interest” calculated in respect of the Net Tax Benefit (including previously accrued Imputed Interest and Extension Rate Interest) for a Taxable Year will equal interest calculated at the Default Rate from the Final Payment Date for a Tax Benefit Payment as determined pursuant to Section 3.1(a) until the date on which the Corporation makes such Tax Benefit Payment to such Member.  For the avoidance of doubt, any deduction for any Default Rate Interest with respect to any Net Tax Benefit payable by the Corporation to a Member shall be excluded in determining the Hypothetical Tax Liability of the Corporation for purposes of calculating Realized Tax Benefits and Realized Tax Detriments pursuant to this Agreement.

 

(x)                                 The Corporation and the Members hereby acknowledge and agree that, as of the date of this Agreement and as of the date of any future Exchange that may be subject to this Agreement, the aggregate value of the Tax Benefit Payments cannot be reasonably ascertained for U.S. federal income or other applicable tax purposes.  Notwithstanding anything to the contrary in this Agreement, unless a Member notifies the Corporation otherwise, the stated maximum selling price (within the meaning of Treasury Regulation 15A.453-1(c)(2)) with respect to any Exchange by such Member shall not exceed 75% of the amount of the initial consideration received in connection with such Exchange (which, for the avoidance of doubt, shall include the amount of any cash and the fair market value of any Class A Common Stock received in such Exchange and shall exclude the fair market value of any Tax Benefit Payments) and the aggregate Tax Benefit Payments to such Member in respect of such Exchange (other than amounts accounted for as interest under the Code) shall not exceed such stated maximum selling price.

 

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(c)                                  Interest.  The provisions of Section 3.1(b) are intended to operate so that interest will effectively accrue in respect of the Net Tax Benefit for any Taxable Year as follows:

 

(i)                                     first, at the applicable rate used to determine the amount of Imputed Interest under the Code (from the relevant Exchange Date or date on which the relevant Tax Benefit Payment was made until the due date (without extensions) for filing the U.S. federal income Tax Return of the Corporation for such Taxable Year and, if required under applicable law, through the Final Payment Date for a Tax Benefit Payment as determined pursuant to Section 3.1(a));

 

(ii)                                  second, at the Agreed Rate in respect of any Extension Rate Interest (from the due date (without extensions) for filing the U.S. federal income Tax Return of the Corporation for such Taxable Year until the Final Payment Date for a Tax Benefit Payment as determined pursuant to Section 3.1(a)); and

 

(iii)                               third, at the Default Rate in respect of any Default Rate Interest (from the Final Payment Date for a Tax Benefit Payment as determined pursuant to Section 3.1(a) until the date on which the Corporation makes the relevant Tax Benefit Payment to a Member).

 

Section 3.2                                    No Duplicative Payments.  It is intended that the provisions of this Agreement will not result in the duplicative payment of any amount (including interest) that may be required under this Agreement, and the provisions of this Agreement shall be consistently interpreted and applied in accordance with that intent.  For purposes of this Agreement, and also for the avoidance of doubt, no Tax Benefit Payment shall be required to be calculated or made in respect of any estimated tax payments, including, without limitation, any estimated U.S. federal income tax payments.

 

Section 3.3                                    Pro-Ration of Payments as Between the Members.

 

(a)                                 Insufficient Taxable Income.  Notwithstanding anything in Section 3.1(b) to the contrary, if the aggregate potential depreciation, amortization or other similar deductions in respect of the Basis Adjustments, Imputed Interest, Actual Interest Amounts, and Default Rate Interest for purposes of determining the Corporation’s liability for Covered Taxes (the “Covered Tax Benefit”) is limited in a particular Taxable Year because the Corporation does not have sufficient actual taxable income, then the available Covered Tax Benefit for the Corporation shall be allocated among the Members in proportion to the respective Tax Benefit Payment that would have been payable if the Corporation had in fact had sufficient taxable income so that there had been no such limitation.  As an illustration of the intended operation of this Section 3.3(a), if the Corporation had $200 of aggregate potential Covered Tax Benefits in a particular Taxable Year (with $50 of such Covered Tax Benefits being attributable to Member 1 and $150 of such Covered Tax Benefits being attributable to Member 2), such that Member 1 would have potentially been entitled to a Tax Benefit Payment of $42.50 and Member 2 would have been entitled to a Tax Benefit Payment of $127.50 if the Corporation had $200 of actual taxable income, and if at the same time the Corporation only had $100 of actual taxable income in such Taxable Year, then $25 of the aggregate $100 actual Covered Tax Benefit for the Corporation for such Taxable Year would be allocated to Member 1 and $75 of the aggregate $100 actual

 

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Covered Tax benefit for the Corporation would be allocated to Member 2, such that Member 1 would receive a Tax Benefit Payment of $21.25 and Member 2 would receive a Tax Benefit Payment of $63.75.

 

(b)                                 Late Payments.  If for any reason the Corporation is not able to timely and fully satisfy its payment obligations under this Agreement in respect of a particular Taxable Year, then Default Rate Interest will begin to accrue pursuant to Section 5.2 and the Corporation and other Parties agree that (i) the Corporation shall pay the Tax Benefit Payments due in respect of such Taxable Year to each Member pro rata in proportion to the amount of such Tax Benefit Payments, without favoring one obligation over the other, and (ii) no Tax Benefit Payment shall be made in respect of any Taxable Year until all Tax Benefit Payments to all Members in respect of all prior Taxable Years have been made in full.

 

Section 3.4                                    Optional Estimated Payment Procedure. As long as the Corporation is current in respect of its payment obligations owed to each Member pursuant to this Agreement and there are no delinquent Tax Benefit Payments (including interest thereon) outstanding in respect of prior Taxable Years for any Member, the Corporation may, at any time on or after the due date (without extensions) for filing the U.S. federal income Tax Return of the Corporation for a Taxable Year and at the Corporation’s option, in its sole discretion, make one or more estimated payments to the Members in respect of any anticipated amounts to be owed with respect to a Taxable Year to the Members pursuant to Section 3.1 of this Agreement (any such estimated payments referred to as an “Estimated Tax Benefit Payment”); provided that any Estimated Tax Benefit Payment made to a Member pursuant to this Section 3.4 is matched by a proportionately equal Estimated Tax Benefit Payment to all other Members then entitled to a Tax Benefit Payment.  Any Estimated Tax Benefit Payment made under this Section 3.4 shall be paid by the Corporation to the Members and applied against the final amount of any expected Tax Benefit Payment to be made pursuant to Section 3.1.  The payment of an Estimated Tax Benefit Payment by the Corporation to the Members pursuant to this Section 3.4 shall also terminate the obligation of the Corporation to make payment of any Extension Rate Interest that might have otherwise accrued with respect to the proportionate amount of the Tax Benefit Payment that is being paid in advance of the applicable Tax Benefit Schedule being finalized pursuant to Section 2.4.  Upon the making of any Estimated Tax Benefit Payment pursuant to this Section 3.4, the amount of such Estimated Tax Benefit Payment shall first be applied to any estimated Extension Rate Interest, then to Imputed Interest, and then applied to the remaining residual amount of the Tax Benefit Payment to be made pursuant to Section 3.1.  In determining the final amount of any Tax Benefit Payment to be made pursuant to Section 3.1, and for purposes of finalizing the Tax Benefit Schedule pursuant to Section 2.4, the amount of any Estimated Tax Benefit Payments that may have been made with respect to the Taxable Year shall be increased, if the finally determined Tax Benefit Payment for a Taxable Year exceeds the Estimated Tax Benefit Payments made for such Taxable Year, with such increase being paid by the Corporation to the Members along with an appropriate amount of Extension Rate Interest in respect of the amount of such increase (a “True-Up”).  If the Estimated Tax Benefit Payment for a Taxable Year exceeds the finally determined Tax Benefit Payment for such Taxable Year, such excess, along with an appropriate amount of Extension Rate Interest in respect of such excess (being charged by the Corporation to the Member), shall be applied to reduce the amount of any subsequent future Tax Benefit Payments (including Estimated Tax Benefit Payments, if any) to be paid by the Corporation to such Member.  As of the date on which any Estimated Tax Benefit Payments

 

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are made, and as of the date on which any True-Up is made, all such payments shall be made in the same manner and subject to the same terms and conditions as otherwise contemplated by Section 3.1 and all other applicable terms of this Agreement.  For the avoidance of doubt, as is the case with Tax Benefit Payments made by the Corporation to the Members pursuant to Section 3.1, the amount of any Estimated Tax Benefit Payments made pursuant to this Section 3.4 that are attributable to an Exchange shall also be treated, in part, as subsequent upward purchase price adjustments that give rise to Basis Adjustments in the Taxable Year of payment to the extent permitted by applicable law and as of the date on which such payments are made (to the extent of the estimated Net Tax Benefit associated with such Estimated Tax Benefit Payment, less any Imputed Interest, and exclusive of any Extension Rate Interest).

 

Section 3.5                                    Changes; Reserves; Suspension of Payments.

 

(a)                                 Receipt of Change Notice.  If any Party, or any Affiliate or Subsidiary of any Party, receives a 30-day letter, a final audit report, a statutory notice of deficiency, or similar written notice from any Taxing Authority relating to the amount of the Net Tax Benefit calculated for purposes of this Agreement, or relating to any other material tax matter that is relevant to the terms of this Agreement and the calculation of the Tax Benefit Payments that may be payable by the Corporation to the Members (a “Change Notice”), prompt written notification and a copy of the relevant Change Notice shall be delivered by the Party, or its Affiliate or Subsidiary, that received such Change Notice to each other Party.

 

(b)                                 Suspension of Payments.  From and after the date on which a Change Notice is received, any Tax Benefit Payments required to be made under this Agreement shall, to the extent determined reasonably necessary by the Audit Committee after considering the potential tax implications of the Change Notice, be paid by the Corporation to a national bank mutually agreeable to the Parties to act as escrow agent to hold such funds in escrow pursuant to an escrow agreement until a Determination is received.  Notwithstanding anything to the contrary, the Corporation shall not pay to the escrow agent an amount in excess of (i) 85% of the amount of the asserted deficiency in tax owed pursuant to the Change Notice plus (ii) the portion of any future Tax Benefit Payments that are required to be paid under this Agreement in respect of any taxable year of the Corporation following the taxable year(s) to which the Change Notice relates and that could reasonably be expected to be reduced if such Change Notice resulted in an adverse Determination.  The Corporation shall not settle or otherwise compromise any matter which is the subject of a Change Notice without the prior written consent of Crestview and ML Acquisition. For the avoidance of doubt, the date on which the Corporation pays any such Tax Benefit Payments to the escrow agent shall be considered the date on which such Tax Benefit Payments are paid to the Members, including for purposes of determining the Actual Interest Amount and Default Rate Interest.

 

(c)                                  Release of Escrowed Funds.  If a Determination is received, and if such Determination results in no adjustment in any Tax Benefit Payments under this Agreement, then the relevant escrowed funds (along with any interest earned on such funds, and less (1) the out-of-pocket expenses incurred by the Corporation or the LLC in administering the escrow, and (2) any taxes imposed on the Corporation or the LLC with respect to any income earned on the investment of such funds) shall be distributed to the relevant Members.  If a Determination is received, and if such Determination results in an adjustment in any Tax Benefit Payments under

 

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this Agreement, then the relevant escrowed funds (along with any interest earned on such funds) shall be distributed as follows: (i) first, to the Corporation or the LLC in an amount equal to (1) the out-of-pocket expenses incurred by the Corporation or the LLC in administering the escrow and in contesting the Determination and (2) any taxes imposed on the Corporation or the LLC with respect to any income earned on the investment of such funds; and (ii) second, to the relevant Parties (which, for the avoidance of doubt and depending on the nature of the adjustments, may include the Corporation, the LLC, or the relevant Members, or some combination thereof) in accordance with the relevant Amended Schedule prepared pursuant to Section 2.4 of this Agreement.

 

ARTICLE IV.
 TERMINATION

 

Section 4.1                                    Early Termination of Agreement; Breach of Agreement.

 

(a)                                 Corporation’s Early Termination Right.  With the written approval of a majority of the Independent Directors, ML Acquisition and Crestview, the Corporation may completely terminate this Agreement, as and to the extent provided herein, with respect to all amounts payable to the Members pursuant to this Agreement by paying to the Members the Early Termination Payment; provided that Early Termination Payments may be made pursuant to this Section 4.1(a) only if made to all Members that are entitled to such a payment simultaneously, and provided further, that the Corporation may withdraw any notice to execute its termination rights under this Section 4.1(a) prior to the time at which any Early Termination Payment has been paid.  Upon the Corporation’s payment of the Early Termination Payment, the Corporation shall not have any further payment obligations under this Agreement, other than with respect to any: (i) prior Tax Benefit Payments that are due and payable under this Agreement but that still remain unpaid as of the date of the Early Termination Notice; and (ii) current Tax Benefit Payment due for the Taxable Year ending on or including the date of the Early Termination Notice (except to the extent that the amount described in clause (ii) is included in the calculation of the Early Termination Payment).  If an Exchange subsequently occurs with respect to Units for which the Corporation has exercised its termination rights under this Section 4.1(a), the Corporation shall have no obligations under this Agreement with respect to such Exchange.

 

(b)                                 Acceleration Upon Change of Control.  In the event of a Change of Control, all obligations hereunder shall be accelerated and such obligations shall be calculated pursuant to this Article IV as if an Early Termination Notice had been delivered on the closing date of the Change of Control and utilizing the Valuation Assumptions by substituting the phrase “the closing date of a Change of Control” in each place where the phrase “Early Termination Effective Date” appears.  Such obligations shall include, but not be limited to, (1) the Early Termination Payment calculated as if an Early Termination Notice had been delivered on the closing date of the Change of Control, (2) any Tax Benefit Payments agreed to by the Corporation and the Members as due and payable but unpaid as of the Early Termination Notice and (3) any Tax Benefit Payments due for any Taxable Year ending prior to, with or including the closing date of a Change of Control (except to the extent that any amounts described in clauses (2) or (3) are included in the Early Termination Payment).  For the avoidance of doubt, Sections 4.2 and 4.3 shall apply to a Change of Control, mutadis mutandi.

 

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(c)                                  Acceleration Upon Breach of Agreement.  In the event that the Corporation materially breaches any of its material obligations under this Agreement, whether as a result of failure to make any payment when due, failure to honor any other material obligation required hereunder, or by operation of law as a result of the rejection of this Agreement in a case commenced under the Bankruptcy Code or otherwise, then all obligations hereunder shall be accelerated and become immediately due and payable upon notice of acceleration from a Member (provided that in the case of any proceeding under the Bankruptcy Code or other insolvency statute, such acceleration shall be automatic without any such notice), and such obligations shall be calculated as if an Early Termination Notice had been delivered on the date of such notice of acceleration (or, in the case of any proceeding under the Bankruptcy Code or other insolvency statute, on the date of such breach) and shall include, but not be limited to: (i) the Early Termination Payment calculated as if an Early Termination Notice had been delivered on the date of such acceleration; (ii) any prior Tax Benefit Payments that are due and payable under this Agreement but that still remain unpaid as of the date of such acceleration; and (iii) any current Tax Benefit Payment due for the Taxable Year ending with or including the date of such acceleration.  Notwithstanding the foregoing, in the event that the Corporation breaches this Agreement and such breach is not a material breach of a material obligation, a Member shall still be entitled to enforce all of its rights otherwise available under this Agreement, excluding, for the avoidance of doubt, seeking an acceleration of amounts payable under this Agreement.  For purposes of this Section 4.1(c), and subject to the following sentence, the Parties agree that the failure to make any payment due pursuant to this Agreement within six (6) months of the relevant Final Payment Date shall be deemed to be a material breach of a material obligation under this Agreement for all purposes of this Agreement, and that it will not be considered to be a material breach of a material obligation under this Agreement to make a payment due pursuant to this Agreement within six (6) months of the relevant Final Payment Date.  For the avoidance of doubt, a suspension of payments pursuant to Section 3.5 will not be considered to be a failure to make a payment due pursuant to this Agreement.  Notwithstanding anything in this Agreement to the contrary, it shall not be a material breach of a material obligation of this Agreement if the Corporation fails to make any Tax Benefit Payment within six (6) months of the relevant Final Payment Date to the extent that the Corporation has insufficient funds, and cannot obtain sufficient funds to make such payments by taking commercially reasonable actions; provided that the interest provisions of Section 5.2 shall apply to such late payment (unless the Corporation does not have sufficient funds to make such payment as a result of limitations imposed by any Senior Obligations, in which case Section 5.2 shall apply, but the Default Rate shall be replaced by the Agreed Rate).

 

Section 4.2                                    Early Termination Notice.  If the Corporation chooses to exercise its right of early termination under Section 4.1 above, the Corporation shall deliver to ML Acquisition, Crestview, and the Management Representative a notice of the Corporation’s decision to exercise such right (an “Early Termination Notice”) and a schedule (the “Early Termination Schedule”) showing in reasonable detail the calculation of the Early Termination Payment.  The Corporation shall also (x) deliver supporting schedules and work papers, as determined by the Corporation or as reasonably requested by ML Acquisition, Crestview, or the Management Representative, that provide a reasonable level of detail regarding the data and calculations that were relevant for purposes of preparing the Early Termination Schedule; (y) deliver an Advisory Firm Letter supporting such Early Termination Schedule; and (z) allow ML Acquisition, Crestview, and the Management Representative and their advisors to have reasonable access to

 

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the appropriate representatives, as determined by the Corporation or as reasonably requested by ML Acquisition, Crestview, or the Management Representative, at the Corporation and the Advisory Firm in connection with a review of such Early Termination Schedule.  The Early Termination Schedule shall become final and binding on each Party thirty (30) calendar days from the first date on which ML Acquisition, Crestview, and the Management Representative received such Early Termination Schedule unless:

 

(i)                                     ML Acquisition, Crestview, or the Management Representative within thirty (30) calendar days after receiving the Early Termination Schedule, provides the Corporation with (A) notice of a material objection to such Early Termination Schedule made in good faith and setting forth in reasonable detail ML Acquisition’s, Crestview’s, or the Management Representative’s, as applicable, material objection (a “Termination Objection Notice”) and (B) a letter from an Advisory Firm (that is different from the Advisory Firm that was used by the Corporation to prepare the Early Termination Schedule) in support of such Termination Objection Notice; or

 

(ii)                                  each of ML Acquisition, Crestview, and the Management Representative provides a written waiver of such right of a Termination Objection Notice within the period described in clause (i) above, in which case such Early Termination Schedule becomes binding on the date the waiver from ML Acquisition, Crestview, and the Management Representative is received by the Corporation.

 

In the event that ML Acquisition, Crestview, or the Management Representative timely delivers a Termination Objection Notice pursuant to clause (i) above, and if the Parties, for any reason, are unable to successfully resolve the issues raised in the Termination Objection Notice within thirty (30) calendar days after receipt by the Corporation of the Termination Objection Notice, the Corporation and ML Acquisition, Crestview, or the Management Representative, as applicable, shall employ the Reconciliation Procedures.  For the avoidance of doubt, and notwithstanding anything to the contrary herein, the expense of preparing and obtaining the letter from an Advisory Firm referenced in clause (i) above shall be borne solely by ML Acquisition, Crestview, or the Management Representative, as applicable, and the Corporation shall have no liability with respect to such letter or any of the expenses associated with its preparation and delivery.  The date on which the Early Termination Schedule becomes final in accordance with this Section 4.2 shall be the “Early Termination Reference Date.”

 

Section 4.3                                    Payment Upon Early Termination.

 

(a)                                 Timing of Payment.  Within three (3) Business Days after the Early Termination Reference Date, the Corporation shall pay to each Member an amount equal to the Early Termination Payment for such Member.  Such Early Termination Payment shall be made by the Corporation by wire transfer of immediately available funds to a bank account or accounts designated by the Members or as otherwise agreed by the Corporation and the Members.

 

(b)                                 Amount of Payment.  The “Early Termination Payment” payable to a Member pursuant to Section 4.3(a) shall equal the present value, discounted at the Early Termination Rate as determined as of the Early Termination Reference Date, of all Tax Benefit Payments that would be required to be paid by the Corporation to such Member, whether payable with respect

 

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to Units that were Exchanged prior to the Early Termination Effective Date or on or after the Early Termination Effective Date, beginning from the Early Termination Effective Date and using the Valuation Assumptions.

 

ARTICLE V.
 SUBORDINATION AND LATE PAYMENTS

 

Section 5.1                                    Subordination.  Notwithstanding any other provision of this Agreement to the contrary, any Tax Benefit Payment or Early Termination Payment required to be made by the Corporation to the Members under this Agreement shall rank subordinate and junior in right of payment to any principal, interest, or other amounts due and payable in respect of any obligations owed in respect of secured indebtedness for borrowed money of the Corporation and its Subsidiaries (“Senior Obligations”) and shall rank pari passu in right of payment with all current or future unsecured obligations of the Corporation that are not Senior Obligations.  To the extent that any payment under this Agreement is not permitted to be made at the time payment is due as a result of this Section 5.1 and the terms of the agreements governing Senior Obligations, such payment obligation nevertheless shall accrue for the benefit of the Members and the Corporation shall make such payments at the first opportunity that such payments are permitted to be made in accordance with the terms of the Senior Obligations.

 

Section 5.2                                    Late Payments by the Corporation.  Except as otherwise provided in this Agreement, the amount of all or any portion of any Tax Benefit Payment or Early Termination Payment not made to the Members when due under the terms of this Agreement, whether as a result of Section 5.1 and the terms of the Senior Obligations or otherwise, shall be payable together with any interest thereon, computed at the Default Rate and commencing from the Final Payment Date on which such Tax Benefit Payment or Early Termination Payment was first due and payable to the date of actual payment.

 

ARTICLE VI.
 TAX MATTERS; CONSISTENCY; COOPERATION

 

Section 6.1                                    Participation in the Corporation’s and the LLC’s Tax Matters.  Except as otherwise provided herein, and except as provided in Article IX of the LLC Agreement, the Corporation shall have full responsibility for, and sole discretion over, all tax matters concerning the Corporation and the LLC, including without limitation the preparation, filing or amending of any Tax Return and defending, contesting or settling any issue pertaining to taxes.  Notwithstanding the foregoing, the Corporation shall notify ML Acquisition, Crestview, and the Management Representative of, and keep them reasonably informed with respect to, the portion of any tax audit of the Corporation or the LLC, or any of the LLC’s Subsidiaries, the outcome of which is reasonably expected to materially affect the Tax Benefit Payments payable to such Members under this Agreement, and ML Acquisition, Crestview, and the Management Representative, as applicable, shall, without limiting any rights granted to ML Acquisition or Crestview pursuant to Section 3.5, have the right to participate in and to monitor at their own expense (but, for the avoidance of doubt, not to control) any such portion of any such Tax audit.

 

Section 6.2                                    Consistency.  Except as otherwise required by law, all calculations and determinations made hereunder, including, without limitation, any Basis Adjustments, the

 

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Schedules and the determination of any Realized Tax Benefits or Realized Tax Detriments, shall be made in accordance with the elections, methodologies or positions taken by the Corporation and the LLC on their respective Tax Returns.  Each Member shall prepare its Tax Returns in a manner that is consistent with the terms of this Agreement, and any related calculations or determinations that are made hereunder, including, without limitation, the terms of Section 2.1 of this Agreement and the Schedules provided to the Members under this Agreement.  In the event that an Advisory Firm is replaced with another Advisory Firm, such replacement Advisory Firm shall perform its services under this Agreement using procedures and methodologies consistent with the previous Advisory Firm, unless otherwise required by law or unless the Corporation and all of the Members agree to the use of other procedures and methodologies.

 

Section 6.3                                    Cooperation.

 

(a)                                 Each Member shall (i) furnish to the Corporation in a timely manner such information, documents and other materials as the Corporation may reasonably request for purposes of making any determination or computation necessary or appropriate under this Agreement, preparing any Tax Return or contesting or defending any audit, examination or controversy with any Taxing Authority, (ii) make itself available to the Corporation and its representatives to provide explanations of documents and materials and such other information as the Corporation or its representatives may reasonably request in connection with any of the matters described in clause (i) above, and (iii) reasonably cooperate in connection with any such matter.

 

(b)                                 The Corporation shall reimburse the Members for any reasonable and documented out-of-pocket costs and expenses incurred pursuant to Section 6.3(a).

 

ARTICLE VII.
 MISCELLANEOUS

 

Section 7.1                                    Notices.  All notices, requests, consents and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by courier service, by fax, by electronic mail (delivery receipt requested) or by certified or registered mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be as specified in a notice given in accordance with this Section 7.1).  All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the Party to receive such notice:

 

If to the Corporation, to:

 

Camping World Holdings, Inc.
 c/o CWGS Enterprises, LLC
 250 Parkway Drive, Suite 270
 Lincolnshire, IL 60048

 

Attn:  Thomas F. Wolfe, Chief Financial Officer
 E-mail:

 

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

 

Latham & Watkins LLP
 885 Third Avenue
 New York, New York 10022

 

Attn: Marc Jaffe
 Facsimile:

E-mail:

 

If to ML Acquisition:

 

250 Parkway Drive, Suite 270
 Lincolnshire, IL 60048

 

Attn: Marcus Lemonis

 

E-mail:

 

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

 

Attn:  
 Facsimile:   
 E-mail:

 

If to Crestview:

 

667 Madison Avenue, 10th Floor
 New York, NY 10065

 

Attn: Brian Cassidy
 E-mail:

 

Attn:  Ross A. Oliver

E-mail:

 

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

 

Davis Polk & Wardwell LLP
 450 Lexington Avenue
 New York, NY 10017

 

Attn: Mary Conway
 Facsimile:  
 E-mail:

 

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If to any Member (other than ML Acquisition or Crestview):

 

Thomas A. Wolfe

2750 Park View Court, Suite 240

Oxnard, CA  93036

 

E-mail:

 

Any Party may change its address, fax number or e-mail address by giving each of the other Parties written notice thereof in the manner set forth above.

 

Section 7.2                                    Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Parties, it being understood that all Parties need not sign the same counterpart.  Delivery of an executed signature page to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Agreement.

 

Section 7.3                                    Entire Agreement; No Third Party Beneficiaries.  This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof.  This Agreement shall be binding upon and inure solely to the benefit of each Party hereto and their respective successors and permitted assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section 7.4                                    Governing Law.  This Agreement shall be governed by, and construed in accordance with, the law of the State of Delaware, without regard to the conflicts of laws principles thereof that would mandate the application of the laws of another jurisdiction.

 

Section 7.5                                    Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

 

Section 7.6                                    Assignments; Amendments; Successors; No Waiver.

 

(a)                                 Assignment.  No Member may assign, sell, pledge, or otherwise alienate or transfer any interest in this Agreement, including the right to receive any Tax Benefit Payments under this Agreement, to any Person without such Person executing and delivering a Joinder

 

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agreeing to succeed to the applicable portion of such Member’s interest in this Agreement and to become a Party for all purposes of this Agreement (the “Joinder Requirement”); provided, that ML Acquisition’s and Crestview’s approval and consent rights described in each of Sections 3.5(b) and 4.1(a) shall not be transferrable or assignable to any Person (other than Permitted Transferees), without the prior written consent of the Corporation (and any purported transfer or assignment without such consent shall be null and void).  For the avoidance of doubt, if a Member transfers Units in accordance with the terms of the LLC Agreement but does not assign to the transferee of such Units its rights under this Agreement with respect to such transferred Units, such Member shall continue to be entitled to receive the Tax Benefit Payments arising in respect of a subsequent Exchange of such Units.  The Corporation may not assign any of its rights or obligations under this Agreement to any Person (other than any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Corporation) without the prior written consent of each of the Members (and any purported assignment without such consent shall be null and void).

 

(b)                                 Amendments.  No provision of this Agreement may be amended unless such amendment is approved in writing by each of ML Acquisition, Crestview, and the Management Representative; provided that amendment of the definition of Change of Control will also require the written approval of a majority of the Independent Directors.  No provision of this Agreement may be waived unless such waiver is in writing and signed by the Party against whom the waiver is to be effective.

 

(c)                                  Successors.  Except as provided in Section 7.6(a), all of the terms and provisions of this Agreement shall be binding upon, and shall inure to the benefit of and be enforceable by, the Parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives.  The Corporation shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Corporation, by written agreement, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform if no such succession had taken place.

 

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

 

Section 7.7                                    Titles and Subtitles.  The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

 

Section 7.8                                    Resolution of Disputes.

 

(a)                                 Except for Reconciliation Disputes subject to Section 7.9, any and all disputes which cannot be settled amicably, including any ancillary claims of any Party, arising out of, relating to or in connection with the validity, negotiation, execution, interpretation, performance or non-performance of this Agreement (including the validity, scope and enforceability of this arbitration provision) (each a “Dispute”) shall be finally resolved by arbitration in accordance

 

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with the International Institute for Conflict Prevention and Resolution Rules for Administered Arbitration (the “Rules”) by three arbitrators, of which the Corporation shall appoint one arbitrator and the Members party to such Dispute shall appoint one arbitrator in accordance with the “screened” appointment procedure provided in Rule 5.4.  The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C.  §§ 1 et seq., and judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction thereof.  The place of the arbitration shall be Chicago, Illinois.

 

(b)                                 Notwithstanding the provisions of paragraph (a), any Party may bring an action or special proceeding in any court of competent jurisdiction for the purpose of compelling another Party to arbitrate, seeking temporary or preliminary relief in aid of an arbitration hereunder, and/or enforcing an arbitration award and, for the purposes of this paragraph (b), each Party (i) expressly consents to the application of paragraph (c) of this Section 7.8 to any such action or proceeding, and (ii) agrees that proof shall not be required that monetary damages for breach of the provisions of this Agreement would be difficult to calculate and that remedies at law would be inadequate.  For the avoidance of doubt, this Section 7.8 shall not apply to Reconciliation Disputes to be settled in accordance with the procedures set forth in Section 7.9.

 

(c)                                  Each Party irrevocably consents to service of process by means of notice in the manner provided for in Section 7.1.  Nothing in this Agreement shall affect the right of any Party to serve process in any other manner permitted by law.

 

(d)                                 WAIVER OF RIGHT TO TRIAL BY JURY.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).

 

(e)                                  Any dispute as to whether a dispute is a Reconciliation Dispute within the meaning of Section 7.9, or a Dispute within the meaning of this Section 7.8, shall be decided and resolved as a Dispute subject to the procedures set forth in this Section 7.8.

 

Section 7.9                                    Reconciliation.  In the event that the Corporation and any Member are unable to resolve a disagreement with respect to a Schedule (other than an Early Termination Schedule) prepared in accordance with the procedures set forth in Section 2.4, or with respect to an Early Termination Schedule prepared in accordance with the procedures set forth in Section 4.2, within the relevant time period designated in this Agreement (a “Reconciliation Dispute”), the Reconciliation Dispute shall be submitted for determination to a nationally recognized expert (the “Expert”) in the particular area of disagreement mutually acceptable to both Parties.  The Expert shall be a partner or principal in a nationally recognized accounting firm, and unless the Corporation and such Member agree otherwise, the Expert shall not, and the firm that employs the Expert shall not, have any material relationship with the Corporation or such Member or other actual or potential conflict of interest.  If the Parties are unable to agree on an Expert within fifteen (15) calendar days of receipt by the respondent(s) of written notice of a Reconciliation Dispute, the selection of an Expert shall be treated as a Dispute subject to Section 7.8 and an arbitration panel shall pick an Expert from a nationally recognized accounting firm that does not

 

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have any material relationship with the Corporation or such Member or other actual or potential conflict of interest.  The Expert shall resolve any matter relating to the Basis Schedule or an amendment thereto or the Early Termination Schedule or an amendment thereto within thirty (30) calendar days and shall resolve any matter relating to a Tax Benefit Schedule or an amendment thereto within fifteen (15) calendar days or as soon thereafter as is reasonably practicable, in each case after the matter has been submitted to the Expert for resolution.  Notwithstanding the preceding sentence, if the matter is not resolved before any payment that is the subject of a disagreement would be due (in the absence of such disagreement) or any Tax Return reflecting the subject of a disagreement is due, the undisputed amount shall be paid on the date prescribed by this Agreement and such Tax Return may be filed as prepared by the Corporation, subject to adjustment or amendment upon resolution.  The costs and expenses relating to the engagement of such Expert or amending any Tax Return shall be borne by the Corporation except as provided in the next sentence.  The Corporation and the Members shall bear their own costs and expenses of such proceeding, unless (i) the Expert adopts the Member’s position, in which case the Corporation shall reimburse the Member for any reasonable and documented out-of-pocket costs and expenses in such proceeding, or (ii) the Expert adopts the Corporation’s position, in which case the Member shall reimburse the Corporation for any reasonable and documented out-of-pocket costs and expenses in such proceeding.  The Expert shall finally determine any Reconciliation Dispute and the determinations of the Expert pursuant to this Section 7.9 shall be binding on the Corporation and the Members and may be entered and enforced in any court having competent jurisdiction.

 

Section 7.10                             Withholding.  The Corporation shall be entitled to deduct and withhold from any payment that is payable to any Member pursuant to this Agreement such amounts as the Corporation is required to deduct and withhold with respect to the making of such payment under the Code or any provision of U.S. state, local or foreign tax law.  To the extent that amounts are so withheld and paid over to the appropriate Taxing Authority by the Corporation, such withheld amounts shall be treated for all purposes of this Agreement as having been paid by the Corporation to the relevant Member.  Each Member shall promptly provide the Corporation with any applicable tax forms and certifications reasonably requested by the Corporation in connection with determining whether any such deductions and withholdings are required under the Code or any provision of U.S. state, local or foreign tax law.

 

Section 7.11                             Admission of the Corporation into a Consolidated Group; Transfers of Corporate Assets.

 

(a)                                 If the Corporation is or becomes a member of an affiliated or consolidated group of corporations that files a consolidated income Tax Return pursuant to Section 1501 or other applicable Sections of the Code governing affiliated or consolidated groups, or any corresponding provisions of U.S. state or local law, then: (i) the provisions of this Agreement shall be applied with respect to the group as a whole; and (ii) Tax Benefit Payments, Early Termination Payments, and other applicable items hereunder shall be computed with reference to the consolidated taxable income of the group as a whole.

 

(b)                                 If the Corporation, its successor in interest or any member of a group described in Section 7.11(a) transfers one or more assets to a corporation (or a Person classified as a corporation for U.S. income tax purposes) with which such entity does not file a consolidated

 

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Tax Return pursuant to Section 1501 of the Code, such entity, for purposes of calculating the amount of any Tax Benefit Payment or Early Termination Payment due hereunder, shall be treated as having disposed of such asset in a fully taxable transaction on the date of such contribution.  The consideration deemed to be received by such entity shall be equal to the fair market value of the contributed asset as determined by the Advisory Firm or a valuation expert selected by the Corporation.  For purposes of this Section 7.11, a transfer of a partnership interest shall be treated as a transfer of the transferring partner’s share of each of the assets and liabilities of that partnership.  Notwithstanding anything to the contrary set forth herein, if the Corporation, its successor in interest or any member of a group described in Section 7.11(a), transfers its assets pursuant to a transaction that qualifies as a “reorganization” (within the meaning of Section 368(a) of the Code) in which such entity does not survive or pursuant to any other transaction to which Section 381(a) of the Code applies (other than any such reorganization or any such other transaction, in each case, pursuant to which such entity transfers assets to a corporation with which the Corporation, its successor in interest or any member of the group described in Section 7.11(a) (other than any such member being transferred in such reorganization or other transaction)  does not file a consolidated Tax Return pursuant to Section 1501 of the Code), the transfer will not cause such entity to be treated as having transferred any assets to a corporation (or a Person classified as a corporation for U.S. income tax purposes) pursuant to this Section 7.11(b).

 

Section 7.12                             Confidentiality.  Each Member and its assignees acknowledges and agrees that the information of the Corporation is confidential and, except in the course of performing any duties as necessary for the Corporation and its Affiliates, as required by law or legal process or to enforce the terms of this Agreement, such Person shall keep and retain in the strictest confidence and not disclose to any Person any confidential matters, acquired pursuant to this Agreement, of the Corporation and its Affiliates and successors, learned by any Member heretofore or hereafter.  This Section 7.12 shall not apply to (i) any information that has been made publicly available by the Corporation or any of its Affiliates, becomes public knowledge (except as a result of an act of any Member in violation of this Agreement) or is generally known to the business community, (ii) the disclosure of information to the extent necessary for a Member to prosecute or defend claims arising under or relating to this Agreement, and (iii) the disclosure of information to the extent necessary for a Member to prepare and file its Tax Returns, to respond to any inquiries regarding the same from any Taxing Authority or to prosecute or defend any action, proceeding or audit by any Taxing Authority with respect to such Tax Returns.  If a Member or an assignee commits a breach, or threatens to commit a breach, of any of the provisions of this Section 7.12, the Corporation shall have the right and remedy to have the provisions of this Section 7.12 specifically enforced by injunctive relief or otherwise by any court of competent jurisdiction without the need to post any bond or other security, it being acknowledged and agreed that any such breach or threatened breach shall cause irreparable injury to the Corporation or any of its Subsidiaries and that money damages alone shall not provide an adequate remedy to such Persons.  Such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available at law or in equity.

 

Section 7.13                             Change in Law.  Notwithstanding anything herein to the contrary, if, as a result of or, in connection with an actual or proposed change in law, a Member reasonably believes that the existence of this Agreement could cause income (other than income arising from receipt of a payment under this Agreement) recognized by such Member (or direct or

 

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indirect equity holders in such Member) in connection with any Exchange to be treated as ordinary income rather than capital gain (or otherwise taxed at ordinary income rates) for U.S. federal income tax purposes or would have other material adverse tax consequences to such Member or any direct or indirect owner of such Member, then at the written election of such Member in its sole discretion (in an instrument signed by such Member and delivered to the Corporation) and to the extent specified therein by such Member, this Agreement shall cease to have further effect and shall not apply to an Exchange occurring after a date specified by such Member, or may be amended by in a manner reasonably determined by such Member, provided that such amendment shall not result in an increase in any payments owed by the Corporation under this Agreement at any time as compared to the amounts and times of payments that would have been due in the absence of such amendment.

 

Section 7.14                             Interest Rate Limitation.  Notwithstanding anything to the contrary contained herein, the interest paid or agreed to be paid hereunder with respect to amounts due to any Member hereunder shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If any Member shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the Tax Benefit Payment, Estimated Tax Benefit Payment or Early Termination Payment, as applicable (but in each case exclusive of any component thereof comprising interest) or, if it exceeds such unpaid non-interest amount, refunded to the Corporation.  In determining whether the interest contracted for, charged, or received by any Member exceeds the Maximum Rate, such Member may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the payment obligations owed by the Corporation to such Member hereunder.  Notwithstanding the foregoing, it is the intention of the Lenders and the Borrower to conform strictly to any applicable usury laws.

 

Section 7.15                             Independent Nature of Rights and Obligations.  The rights and obligations of the each Member hereunder are several and not joint with the rights and obligations of any other Person.  A Member shall not be responsible in any way for the performance of the obligations of any other Person hereunder, nor shall a Member have the right to enforce the rights or obligations of any other Person hereunder (other than the Corporation).  The obligations of a Member hereunder are solely for the benefit of, and shall be enforceable solely by, the Corporation.  Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Member pursuant hereto or thereto, shall be deemed to constitute the Members acting as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Members are in any way acting in concert or as a group with respect to such rights or obligations or the transactions contemplated hereby, and the Corporation acknowledges that the Members are not acting in concert or as a group and will not assert any such claim with respect to such rights or obligations or the transactions contemplated hereby.

 

Section 7.16                             LLC Agreement.  This Agreement shall be treated as part of the LLC Agreement as described in Section 761(c) of the Code and Sections 1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the Treasury Regulations.

 

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Section 7.17                             Management Representative.   By executing this Agreement, each of the Members (other than ML Acquisition and Crestview) shall be deemed to have irrevocably constituted and appointed Thomas F. Wolfe (in the capacity described in this Section 7.17 and each successor as provided below, the “Management Representative”) as his, her or its agent and attorney in fact with full power of substitution to act from and after the date hereof and to do any and all things and execute any and all documents on behalf of such Members which may be necessary, convenient or appropriate to facilitate any matters under this Agreement, including but not limited to: (i) execution of the documents and certificates required pursuant to this Agreement; (ii) receipt and forwarding of notices and communications pursuant to this Agreement; (iv) administration of the provisions of this Agreement; (v) giving or agreeing to, on behalf of such Members, any and all consents, waivers, amendments or modifications deemed by the Management Representative, in its sole and absolute discretion, to be necessary or appropriate under this Agreement and the execution or delivery of any documents that may be necessary or appropriate in connection therewith; (vi) amending this Agreement or any of the instruments to be delivered to the Corporation pursuant to this Agreement; (vii) taking actions Management Representative is expressly authorized to take pursuant to the other provisions of this Agreement; (viii) negotiating and compromising, on behalf of such Members, any dispute that may arise under, and exercising or refraining from exercising any remedies available under, this Agreement or any other agreement contemplated hereby and executing, on behalf of such Members, any settlement agreement, release or other document with respect to such dispute or remedy; and (ix) engaging attorneys, accountants, agents or consultants on behalf of such Members in connection with this Agreement or any other agreement contemplated hereby and paying any fees related thereto.  If the Management Representative is unable or unwilling to so serve, then the Members (other than ML Acquisition and Crestview), as applicable, holding a majority of the common units owned by such Members outstanding on the date hereof, shall elect a new Management Representative.  To the fullest extent permitted by law, none of the Management Representative, any of its Affiliates, or any of the Management Representative’s or Affiliate’s directors, officers, employees or other agents (each a “Covered Person”) shall be liable, responsible or accountable in damages or otherwise to any Member, the LLC or the Corporation for damages arising from any action taken or omitted to be taken by the Management Representative or any other Person with respect to the LLC or the Corporation, except in the case of any action or omission which constitutes, with respect to such Person, willful misconduct or fraud.  Each of the Covered Persons may consult with legal counsel, accountants, and other experts selected by it, and any act or omission suffered or taken by it on behalf of the LLC or the Corporation or in furtherance of the interests of the LLC or the Corporation in good faith in reliance upon and in accordance with the advice of such counsel, accountants, or other experts shall create a rebuttable presumption of the good faith and due care of such Covered Person with respect to such act or omission; provided that such counsel, accountants, or other experts were selected with reasonable care.  Each of the Covered Persons may rely in good faith upon, and shall have no liability to the LLC, the Corporation or the Members for acting or refraining from acting upon, any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, or other paper or document reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties.

 

[Signature Page Follows This Page]

 

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

 

	
 
    	
CORPORATION:
    
	
 
    	
 
    
	
 
    	
 
    	
CAMPING   WORLD HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   LLC:
    
	
 
    	
 
    
	
 
    	
 
    	
CWGS   ENTERPRISES, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MEMBERS:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MANAGEMENT   REPRESENTATIVE:
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
					

 

 

Exhibit A

 

FORM OF JOINDER AGREEMENT

 

This JOINDER AGREEMENT, dated as of                  , 20    (this “Joinder”), is delivered pursuant to that certain Tax Receivable Agreement, dated as of November 26, 2014 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Tax Receivable Agreement”) by and among Camping World Holdings, Inc., a Delaware corporation (the “Corporation”), the Camping World Enterprises, LLC, a Delaware limited liability company (“the LLC”), and each of the Members from time to time party thereto.  Capitalized terms used but not otherwise defined herein have the respective meanings set forth in the Tax Receivable Agreement.

 

1.              Joinder to the Tax Receivable Agreement.  Upon the execution of this Joinder by the undersigned and delivery hereof to the Corporation, the undersigned hereby is and hereafter will be a Member under the Tax Receivable Agreement and a Party thereto, with all the rights, privileges and responsibilities of a Member thereunder.  The undersigned hereby agrees that it shall comply with and be fully bound by the terms of the Tax Receivable Agreement as if it had been a signatory thereto as of the date thereof.

 

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

 

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

 

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

 

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

 

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

 

 

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

 

CAMPING WORLD HOLDINGS, INC.

 

	
By:
    	
 
    	
 
    
	
Name:
    	
 
    
	
Title:

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