THIRD AMENDMENT TO LIMITED LIABILITY COMPANY OPERATING AGREEMENT OF MENACHE ADELMAN, LLC
THIRD AMENDMENT TO
OF
XXXXXXX XXXXXXX, LLC
THIS THIRD AMENDMENT TO LIMITED LIABILITY COMPANY OPERATING AGREEMENT OF XXXXXXX XXXXXXX, LLC (this “Amendment”) is made and entered into to be effective as of the 30th day of May, 2011 (“Effective Date”), by and among XXXXXXX XXXXXXX, LLC, a Delaware limited liability company (the “Company”), XXXXXXX ENTERPRISES, INC., a Delaware corporation (“AE”) and MENACHE, LLC, a Delaware limited liability company (“Menache”), with reference to the following facts:
BACKGROUND INFORMATION
WHEREAS, AE and Menache are parties to that Limited Liability Company Operating Agreement of Xxxxxxx Xxxxxxx, LLC dated to be effective as of April 30, 2010, as amended by that certain First Amendment thereto dated October 20, 2010 and the Second Amendment thereto dated November 24, 2010 (collectively, the “Operating Agreement”) (capitalized terms not otherwise defined herein shall have the respective meanings ascribed to such terms in the Operating Agreement), that sets forth certain of the terms and provisions pursuant to which: (i) the Company and its business are managed and operated, and (ii) contributions to and distributions by and from the Company are effected; and
WHEREAS, the Company, AE and Menache desire to amend the Operating Agreement in accordance with the terms hereof to extend the date by which the Initial Funding must be contributed to the Company by AE; and
WHEREAS, pursuant to Section 14.1 of the Operating Agreement, the amendment to the Operating Agreement set forth herein can be effected by the written action of the Members of the Company.
NOW, THEREFORE, in consideration of the foregoing recitals and the agreements and covenants set forth herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:
1. Amendments. The Agreement is hereby amended as follows:
A. Section 2.2.3. Section 2.2.3 is hereby deleted in its entirety, and the following new Section 2.2.3 is inserted in lieu thereof:
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“2.2.3 Additional AE Contributions. AE shall contribute funds to the Company for the development of the Technology such that such Technology becomes ready for use on a motion picture (“Funded Development”); provided however that it is anticipated that the amount of such required contributions and payments shall be Three Million Five Hundred Thousand Dollars ($3,500,000). As soon as practicable following the execution of this Agreement, AE will first pay the amount of Sixty-Six Thousand Six Hundred Sixty-Seven Dollars ($66,667) to Xxxxxxx Xxxxxxx as an independent contractor for his consulting services for the development of the Anthus Channel as it pertains to integrating motion capture into television programming (“Xxxxxxx Payment”). AE will then contribute the amount of Three Hundred Fifty Thousand Dollars ($350,000) to the Company (“Company Initial Funding”) so that the initial work can commence on prototypes of the Technology. The Xxxxxxx Payment and the Company Initial Funding shall be referred to herein as the “Initial Funding”.
Notwithstanding anything to the contrary in this Agreement, it is further agreed that beginning on August 20, 2011 (“Fund Share Date”), a minimum of one third (1/3) of each dollar (“Company Share”) received by AE or any of its subsidiary companies, shall be payable to the Company. This obligation shall be triggered for all money that is received above and beyond the amount needed to cover the monthly expenses incurred by AE, with such monthly expenses not to exceed the amount of Six Thousand Dollars ($6,000). These payments shall be made first to the Xxxxxxx Payment until the full amount of the Xxxxxxx Payment has been paid, and thereafter to the Company until the full amount of the Company Initial Funding has been received by the Company. Thereafter, the Company Share shall be paid to the Company until such time as the Company (separate and apart from the Xxxxxxx Payment) has received a total of Three Million Five Hundred Thousand Dollars ($3,500,000).
Following the Initial Funding, AE shall make capital contributions to the Company in incremental amounts at least equal to the amounts required to pay all costs as and when contemplated under the budget heretofore agreed upon by AE and Menache and attached hereto as Exhibit “A” (the "Budget”). The capital contributions described in this Section 2.2.3 shall be deemed to be consideration for AE’s 40% Ownership Interest in the Company. If additional funding is needed beyond the amount contemplated in this Section 2.2.3, then AE shall, to the best of its ability, provide additional capital. The terms and conditions of such additional capital shall be agreed upon by AE and the Board of Managers.”
B. Extension of Time in Section 2.2.3.1. The time by which the Initial Funding must be contributed by AE to the Company in order to avoid the consequences set forth in Section 2.2.3.1 of the Operating Agreement is hereby extended until October 31, 2011.
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C. No Other Changes to Section 2.2.3.1 or 2.2.3.2. Except as expressly set forth in this Section 1 of this Amendment, no other part of Sections 2.2.3.1 or 2.2.3.2 shall be modified or amended.
2. Consideration for Amendment. As consideration for the extension of time and other provisions set forth in Section 1 of this Amendment, upon the execution of this Amendment, AE and its shareholders and directors shall cause 100,000 shares of AE to be contributed to Menache, LLC.
3. Effective Date of Amendment. The amendments to the Operating Agreement described in this Amendment shall be effective as of the Effective Date.
4. Approval of Members. All of the Members (as such term is defined in the Operating Agreement) of the Company, hereby consent to and approve the amendments to the Operating Agreement set forth in Section 1 hereof, and hereby authorize and direct the Company to execute this Amendment and deliver this Amendment on behalf of the Company.
5. Operating Agreement in Full Force and Effect. Except as expressly amended hereby, the Operating Agreement and the terms and provisions thereof shall remain in full force and effect. Unless specifically provided to the contrary, or the context requires otherwise, all references herein to the Operating Agreement shall mean the Operating Agreement, as amended hereby.
6. Electronic or Facsimile Transmission. In order to facilitate execution of this Amendment, the parties agree that this Amendment may be executed and electronically mailed or sent by facsimile to the other party and the executed facsimile or electronic copy shall be binding and enforceable as an original.
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7. Counterparts. This Amendment may be executed in counterparts, each of which, when executed, shall be deemed an original instrument, but all of which taken together shall constitute one and the same agreement.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed, sealed and delivered as of the Effective Date.
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COMPANY:
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MEMBERS:
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XXXXXXX XXXXXXX, LLC
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XXXXXXX ENTERPRISES, INC.
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By:
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By:
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Xxxxxxx Xxxxxxx, Manager
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Xxxxxxx Xxxxxxx, President
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MENACHE, LLC
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By:
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Xxxxxxx Xxxxxxx, Manager
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By:
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Xxxxxxx Xxxxxxx, Manager
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EXHIBIT A
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MENACHE, LLC
Budget Summary
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MONTH
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G&A
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1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Total
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Management
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$ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 240 | ||||||||||||||||||||||||||
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Insurance
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$ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 24 | ||||||||||||||||||||||||||
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Payroll Taxes
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$ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 158 | ||||||||||||||||||||||||||
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Rent
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$ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 60 | ||||||||||||||||||||||||||
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Utilites
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$ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 12 | ||||||||||||||||||||||||||
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Phone/Fax/Internet
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$ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 12 | ||||||||||||||||||||||||||
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Office Supplies
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$ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 12 | ||||||||||||||||||||||||||
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Travel & Entertainment
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$ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 24 | ||||||||||||||||||||||||||
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Consulting/Accounting Fees
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$ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 12 | ||||||||||||||||||||||||||
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Legal Fees
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$ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 24 | ||||||||||||||||||||||||||
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Total G&A
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$ | 48 | $ | 48 | $ | 48 | $ | 48 | $ | 48 | $ | 48 | $ | 48 | $ | 48 | $ | 48 | $ | 48 | $ | 48 | $ | 48 | $ | 578 | ||||||||||||||||||||||||||
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TOTAL R&D
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$ | 125 | $ | 220 | $ | 250 | $ | 252 | $ | 252 | $ | 262 | $ | 262 | $ | 267 | $ | 257 | $ | 209 | $ | 134 | $ | 130 | $ | 2,620 | ||||||||||||||||||||||||||
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Subtotal
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$ | 173 | $ | 268 | $ | 298 | $ | 300 | $ | 300 | $ | 310 | $ | 310 | $ | 315 | $ | 305 | $ | 257 | $ | 182 | $ | 178 | $ | 3,198 | ||||||||||||||||||||||||||
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10% Contingency
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$ | 17 | $ | 27 | $ | 30 | $ | 30 | $ | 30 | $ | 31 | $ | 31 | $ | 32 | $ | 31 | $ | 26 | $ | 18 | $ | 18 | $ | 320 | ||||||||||||||||||||||||||
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Total
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$ | 191 | $ | 295 | $ | 328 | $ | 330 | $ | 330 | $ | 341 | $ | 341 | $ | 347 | $ | 336 | $ | 283 | $ | 200 | $ | 196 | $ | 3,518 | ||||||||||||||||||||||||||
MENACHE, LLC
Phase II R&D Budget
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MONTHS
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| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Total
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Staff
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System Engineer
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$ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 300 | ||||||||||||||||||||||||||
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DSP Engineer
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$ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 13 | $ | 150 | ||||||||||||||||||||||||||
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Software Engineer
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$ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 180 | ||||||||||||||||||||||||||
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System Engineer # 2
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$ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 180 | ||||||||||||||||||||||||||
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Digital Engineer
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$ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 180 | ||||||||||||||||||||||||||
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Program Manager
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$ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 90 | ||||||||||||||||||||||||||
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Labor Subtotal
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$ | 90 | $ | 90 | $ | 90 | $ | 90 | $ | 90 | $ | 90 | $ | 90 | $ | 90 | $ | 90 | $ | 90 | $ | 90 | $ | 90 | $ | 1,080 | ||||||||||||||||||||||||||
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Direct Cost
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Tag Development
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$ | 30 | $ | 30 | $ | 30 | $ | 30 | $ | 30 | $ | 30 | $ | 30 | $ | 30 | $ | 240 | ||||||||||||||||||||||||||||||||||
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Tag Antenna Development
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$ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 135 | ||||||||||||||||||||||||||||||||
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Tag Package/Fixture Development
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$ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 50 | ||||||||||||||||||||||||||||||||||||||||
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Tag Manufacturing
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$ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 4 | $ | 4 | $ | 20 | ||||||||||||||||||||||||||||||||||
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Sensor RF/IF Development
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$ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 90 | ||||||||||||||||||||||||||||||||
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Sensor Antenna Development
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$ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 80 | ||||||||||||||||||||||||||||||||||
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Sensor FPGA Development
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$ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 180 | ||||||||||||||||||||||||||||||||
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Sensor DSP Board Development
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$ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 120 | ||||||||||||||||||||||||||||||||||||||
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Dual Pol Sensors Manufacturing
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$ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 160 | ||||||||||||||||||||||||||||||||||
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Measurment Processor System
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$ | 20 | $ | 20 | $ | 40 | ||||||||||||||||||||||||||||||||||||||||||||||
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Frequency Ref/Dist & AP
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$ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 40 | ||||||||||||||||||||||||||||||||||
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UWB Development
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$ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 70 | ||||||||||||||||||||||||||||||||||||
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Misc
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$ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 20 | $ | 20 | $ | 90 | ||||||||||||||||||||||||||
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DC Subtotal
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$ | 5 | $ | 110 | $ | 145 | $ | 147 | $ | 147 | $ | 157 | $ | 157 | $ | 157 | $ | 147 | $ | 99 | $ | 24 | $ | 20 | $ | 1,315 | ||||||||||||||||||||||||||
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Indirect Cost
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Integration
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$ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 100 | ||||||||||||||||||||||||||||||
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Software Tools
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$ | 10 | $ | 10 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 45 | ||||||||||||||||||||||||||||||||||||
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Test Equipment
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$ | 20 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 80 | ||||||||||||||||||||||||||||||||||||
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IC Subtotal
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$ | 30 | $ | 20 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 15 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 20 | $ | 225 | ||||||||||||||||||||||||||
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TOTAL
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$ | 125 | $ | 220 | $ | 250 | $ | 252 | $ | 252 | $ | 262 | $ | 262 | $ | 267 | $ | 257 | $ | 209 | $ | 134 | $ | 130 | $ | 2,620 | ||||||||||||||||||||||||||
