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efta-efta00803788DOJ Data Set 9OtherDocuSign Envelope ID: 2D7146FF-2840-4036.8DDA-07E09F769640
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DOJ Data Set 9
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efta-efta00803788
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DocuSign Envelope ID: 2D7146FF-2840-4036.8DDA-07E09F769640
AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT
OF
!ANGELS TECHNOLOGIES, L.P.
DATED AS OF SEPTEMBER 1, 2016
EFTA00803788
DocuSign Envelope ID: 2D7146FF-2840-4036.8DDA.07ED9F769640
CONTENTS
Clause
Page
I.
FORMATION OF THE PARTNERSHIP
1
2.
DEFINITIONS
5
3.
CAPITAL CONTRIBUTIONS
13
4.
ALLOCATION OF NET INCOME AND NET LOSS
14
5.
DISTRIBUTIONS
17
6.
BOOKS OF ACCOUNT. RECORDS AND REPORTS. FISCAL YEAR
19
7.
POWER. RIGHTS AND DUTIES OF THE LIMITED PARTNERS
19
8.
POWERS, RIGHTS AND DUTIES OF THE GENERAL PARTNER
20
9.
TRANSFERS OF INTEREST BY LIMITED PARTNERS
24
10.
PREEMPTIVE RIGHTS
27
11.
TERMINATION OF PARTNERSHIP: LIQUIDATION AND DISTRIBUTION
OF ASSETS
29
12.
NOTICES AND VOTING
32
13.
AMENDMENT OF AGREEMENT
33
14.
MISCELLANEOUS
35
EFTA00803789
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This AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT of iAngels
Technologies, L.P., a Delaware limited partnership (the "Partnership") is entered into as of September
I, 2016, by and among (i) iAngels Crowd Ltd., as general partner (the "Initial General Partner"), (ii)
Shelly Hod Moyal and Mor Assia as limited partners (the "Initial Limited Partners"), and (iii) each
other Person who after the date hereof becomes a Partner of the Partnership.
RECITALS
WHEREAS, the Partnership was formed by the Initial General Partner and the Initial Limited
Partners pursuant to a limited partnership agreement (the "Initial LPA") and the filing of a
Certificate of Limited Partnership of the Partnership with the Office of the Secretary of State of
Delaware on July 14, 2016; and
WHEREAS, the Initial General Partner and the Initial Limited Partners wish to amend and restate
the Initial LPA in its entirety; and
WHEREAS, it is intended that the Partnership may have one or more separate Series pursuant to
Section 17-218 of the Act, and that the books and records and assets of such Series shall be separate
and distinct from the Partnership or any other Series of the Partnership and that any debts,
liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to
a particular Series will be enforceable against the assets of such Series only or a general partner
associated with such Series, and not against the assets of the Partnership generally, any general
partner not associated with such Series, or any other Series; and
WHEREAS it is further intended that no debts, liabilities, obligations and expenses incurred,
contracted for or otherwise existing with respect to the Partnership shall be enforceable against the
assets of any Series or a general partner associated with any Series.
AGREEMENT
NOW, THEREFORE, in consideration of the promises and covenants contained herein, the parties
hereto agree to amend and restate the Initial LPA to read in its entirety as follows:
I.
FORMATION OF THE PARTNERSHIP
1.1
Formation of the Partnership
The Partnership was formed as a Delaware series limited partnership under the Act by the
filing of the Certificate with the Office of the Secretary of State of Delaware on July 14,
2016. The Partnership shall accomplish all filing, recording, publishing and other acts
necessary or appropriate for compliance with all requirements for operation of the
Partnership as a limited partnership under this Agreement and the Act and under all other
laws of the State of Delaware and such other jurisdictions in which the Partnership
determines that it may conduct business. Each Limited Partner admitted to the Partnership
as a Limited Partner of a particular Series by the General Partner shall promptly execute
all Subscription Documents and other relevant certificates and other documents as the
General Partner shall request.
-1-
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1.2
Name
The name of the Partnership is iAngels Technologies, L.P., as such name may be modified
from time to time by the General Partner as it may deem advisable.
1.3
Business of the Partnership
Subject to the limitations on the activities of the Partnership otherwise specified in this
Agreement, the purpose and business of the Partnership shall be the conduct of any business
or activity that may be conducted by a limited partnership organized pursuant to the Act,
including, but not limited to, investing in, holding, selling and otherwise dealing in Securities.
1.4
Location of Principal Place of Business
The location of the principal place of business of the Partnership shall be at 18 Rothschild
Boulevard, Tel-Aviv, Israel, or such other location as may be determined by the General
Partner. In addition, the Partnership may maintain such other offices as the General Partner
may deem advisable at any other place or places within or without the State of Delaware.
1.5
Registered Agent
The registered agent for the Partnership shall be PHS Corporate Services, Inc. and its
address is 1313 N. Market Street, Suite 5100, Wilmington, DE 19801, or such other
registered agent as the General Partner may designate from time to time.
1.6
Term
The term of the Partnership commenced on the date of filing of the Certificate, and shall
be perpetual unless the Partnership is earlier dissolved and terminated in accordance with the
provisions of this Agreement.
1.7
Establishment of Series
(a)
General
The General Partner shall have full power and authority in its sole discretion, from
time to time, to establish one or more Series, the Interests in each of which shall be
separate and distinct from the Interests in any other Series. Unless otherwise
expressly stated herein, references to the Partnership shall be deemed to include
references to each Series, as applicable. In connection with the establishment of a
Series hereunder, the General Partner may, in its sole discretion and without
obtaining the consent, vote or other approval of the Limited Partners: (i) issue
Interests without limitation to such Persons and for such amount and type of
consideration, including cash or Securities, at such time or times and on such terms
as the General Partner may deem appropriate, (ii) establish and designate and fix
such preferences, voting powers, rights, duties and privileges and business purpose
of each Series as the General Partner may from time to time determine, which
preferences, voting powers, rights, duties and privileges may be different from any
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existing Series and shall be limited to specified property or obligations of the
Partnership or profits and losses associated with specified property or obligations
of the Partnership, and (iii) divide or combine the Interests of any Series into a
greater or lesser number without thereby materially changing the proportionate
beneficial interest of the Interests of such Series in the assets held with respect to
that Series.
The relative rights and preferences of any Series established by the General Partner
will be as set forth herein and/or, to the extent necessary, in a Series Addendum relating
thereto. The Interests of any Series that may from time to time be established and
designated by the General Partner shall (unless the General Partner otherwise
determines with respect to some further Series at the time of establishing and
designating the same) have the relative rights and preferences set out in this Clause 1.7.
(b)
Assets Belonging to Series
All consideration received by the Partnership for the issue or sale of Interests of a
particular Series, together with all assets in which such consideration is invested or
reinvested, all income, earnings, profits, and proceeds thereof, including any proceeds
derived from the sale, exchange or liquidation of such assets, and any funds or
payments derived from any reinvestment of such proceeds in whatever form the same
may be, shall be held for the benefit of the Limited Partners who have Interests in that
Series and shall irrevocably belong to that Series for all purposes, subject only to the
rights of creditors of such Series, shall be so recorded upon the books of account of the
Partnership and shall be held and accounted for separately from the assets of each other
Series as provided in Article 17-218(b) of the Act. Such consideration, assets, income,
earnings, profits, and proceeds thereof, including any proceeds derived from the sale,
exchange or liquidation of such assets, and any funds or payments derived from any
reinvestment of such proceeds, in whatever form the same may be, are herein referred
to as "assets belonging to" that Series. In the event that there are any assets, income,
earnings, profits and proceeds thereof, funds or payments which are not readily
identifiable as assets held with respect to any particular Series (collectively "General
Assets"), the General Partner shall allocate such General Assets to, between or among
any one or more of the Series in such manner and on such basis as the General Partner,
in its sole discretion, deems fair and equitable, and any General Assets so allocated to
a particular Series shall thereupon be held with respect to that Series and be deemed
assets belonging to such Series. Each such allocation by the General Partner shall be
conclusive and binding upon the Limited Partners of all Series for all purposes.
Separate and distinct records shall be maintained for each Series and the assets held
with respect to each Series shall be held and accounted for separately from the assets
held with respect to all other Series and the General Assets of the Partnership not
allocated to such Series. No Series shall have any right to or interest in the assets
belonging to any other Series, and no Limited Partners shall have any right or interest
with respect to the assets belonging to any Series in which it does not have an Interest.
The General Partner shall invest the assets belonging to each Series in accordance with
the investment objective such Series.
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(c)
Liabilities Belonging to Series
The assets belonging to each particular Series shall be charged with the liabilities
of that Series and all expenses, costs, charges and reserves attributable to that
Series. The debts, liabilities, expenses, costs, charges and reserves so charged to a
Series are herein referred to as "liabilities belonging to" that Series. Separate and
distinct records shall be maintained for the liabilities belonging to each Series.
(d)
Voting
Except as otherwise required by the Act, the Limited Partners shall not be entitled
to participate in the management of the affairs of the Partnership and shall not be
entitled to vote on any matter whatsoever.
(e)
Liabilities of Series
In accordance with Article 17-218(b) of the Act, liabilities belonging to a Series
shall be enforceable against the assets of such Series only or a general partner
associated with such Series, and not against the assets of the Partnership generally,
any general partner not associated with such Series, or any other Series., and none
of the debts, liabilities, obligations and expenses incurred, contracted for or
otherwise existing with respect to the Partnership generally or any other Series shall
be enforceable against the assets of such Series or the general partner associated
with such Series. Notice of the foregoing limitation on liabilities of a Series shall
be set forth in the Certificate or in an amendment thereto made prior to the issuance
of any Interests in a Series.
(1)
Ownership of Interests
A Limited Partner may be a partner of the Partnership and/or one or more Series,
provided that any Limited Partner admitted to a Series will not, solely by virtue of
such admission in the newly created Series, also become a Limited Partner of the
Partnership. The terms of each Series shall be as set forth in a separate Series
Addendum establishing such Series and provided to the Limited Partners of the
series. To the extent certain portions are not included in a separate Series
Addendum, the terms of this Agreement shall control.
The ownership of Interests shall be recorded and reflected on the books of the
Partnership or of a transfer or similar agent for the Partnership, which books shall be
maintained separately for the Interests of each Series and, unless otherwise determined
by the General Partner, shall not be evidenced by a certificate. In the event the General
Partner shall determine to issue certificates evidencing the ownership of Interests, such
certificates shall be in such form as the General Partner shall determine. The General
Partner may make such rules as it considers appropriate for the issuance of such
certificates, if any, the transfer of certificates and similar matters. The record books of
the Partnership as kept by the Partnership or any transfer or similar agent, as the case
may be, shall be conclusive as to the identity of the Limited Partners of each Series and
as to the Interests of each Series held from time to time by each Limited Partner.
4
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(g)
Tax Status of Partnership
The General Partner shall treat each Series as a separate partnership for all federal
and, to the extent permitted by law, state and local income tax purposes.
(h)
Record of Capital Contributions
The name and mailing address of each Limited Partner and the Capital Contribution
by each Limited Partner shall be listed in the books and records of each Series.
2.
DEFINITIONS
2.1
Definitions.
The following terms used in this Agreement shall have the following meanings.
"Acceptance Notice" has the meaning set forth in Clause 10.2(b).
"Accounting Period" means each period that begins, initially, on the date the Partnership
is formed, and thereafter, at the opening of business on the day immediately following an
Adjustment Date and ends at the close of business on the next succeeding Adjustment Date or
the date on which the Partnership is terminated.
"Act" means the Delaware Revised Uniform Limited Partnership Act, 6 Del. Code §17-
101 et seq., as in effect on the date hereof and as it may be amended hereafter from time to
time.
"Additional Limited Partner" has the meaning set forth in Clause 8.9.
"Adjusted Capital Account," at any time, shall equal the Limited Partner's Capital
Account at such time (x) increased by the sum of (A) the amount of the Limited Partner's share
of partnership minimum gain (as defined in Treasury Regulation section § 1.704-2(g)(1) and
(3)) and (B) the amount of the Limited Partner's share of partner nonrecourse debt minimum
gain (as defined in Treasury Regulation section § 1.704-2(i)(5)) and (C) any amount of the
deficit balance in its Capital Account that the Limited Partner is obligated to restore on
liquidation of the Partnership pursuant to Treasury Regulation section § 1.704-1(b)(2)(ii)(c)
and (y) decreased by reasonably expected adjustments, allocations and distributions described
in Treasury Regulation section § 1.704-1(b)(2)(ii)(d)(4), (5) and (6). This definition shall be
interpreted consistently with Treasury Regulation section § 1.704-1(b)(2)(ii)(d).
"Adjustment Date" means, with respect to each Series (unless otherwise specified in the
relevant Series Addendum) (i) the last day of each Fiscal Year, (ii) the date immediately
preceding the effective date of the admission of an Additional Limited Partner or the
acceptance of an additional Capital Contribution by an existing Limited Partner, (iii) the
effective date of any withdrawal pursuant to Clause 5, (iv) the date on which the Partnership
dissolves or (v) any other date that the General Partner shall determine, but only, in the case of
clauses (ii) and (iii) above, if treating such date as an Adjustment Date would result in the
Capital Account Percentage of any Capital Account on the first day of the Accounting Period
5
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beginning on the day following such Adjustment Date differing from its Capital Account
Percentage on the first day of the immediately preceding Accounting Period.
"Affiliate" of another Person means any Person directly or indirectly Controlling,
Controlled by or under common Control with such other Person. For purposes of the foregoing,
"Control" means the possession, directly or indirectly, of the power to direct the management
or policies of a Person, whether through ownership or voting of securities, by contract or
otherwise. In no event shall any Limited Partner or any of its Affiliates be deemed to be an
Affiliate of any other Limited Partner or any of its Affiliates (other than the Partnership) solely
by reason of such Limited Partner's control of the Partnership.
"Agreement" means this Limited Partnership Agreement, as amended, modified or
supplemented from time to time.
"Book Value" means, with respect to any asset of the Partnership or any Series as of any
date, such asset's adjusted basis for federal income tax purposes as of such date, except that (i)
the initial Book Value of an asset contributed by a Limited Partner to the Partnership or any
Series shall be the Value of such Partnership asset on the date of such contribution and (ii) the
Tax Matter Partner may adjust the Book Value of the assets of any Series or the Partnership as
permitted by Regulations § 1.704-1(b)(2)(iv)(f) but only if such adjustments are deemed
necessary or appropriate by the Tax Matters Partners to reflect the relative economic interests
of the Partnership or Series. In the case of any asset that has a Book Value that differs from its
adjusted tax basis, Book Value shall thereafter be adjusted by the depreciation, cost recovery
and amortization attributable to such asset assuming that the adjusted basis of such asset was
equal to its Book Value determined pursuant to the methodology described in Regulation §
1.704-1(b)(2)(iv)(g)(3) or Regulation § 1.704-3(d)(2), as appropriate.
"Business Day" means any day other than a Saturday, Sunday or a day on which
commercial banks are authorized or required to close in New York City, New York or in the
State of Israel.
"Capital Account" of each Limited Partner with respect to each Series, means the account
established and maintained for such Limited Partner with respect to such Series on the books
of the Partnership in compliance with Treasury Regulation section §§ 1.704-1(b)(2)(iv) and
1.704-2, as amended. Subject to the preceding sentence, each Limited Partner's Capital
Account balance shall initially equal the amount of cash and the Contribution Value of any
other property contributed by such Limited Partner to such Series, which initial Capital
Account balance is set forth opposite such Limited Partner's name under the heading "Initial
Capital Account Balance" on its signature page hereto. Throughout the term of the Partnership,
each Capital Account with respect to each Series will be (i) increased by the amount of (A)
income and gains allocated to such Capital Account pursuant to Clause 4 (Allocation of Net
Income and Net Loss), (B) the amount of any cash and the Contribution Value of any other
property subsequently contributed by such Limited Partner to such Series, and (C) the amount
of liabilities of the Series assumed by such Limited Partner or that are secured by any property
distributed to such Limited Partner, and (ii) decreased by the amount of (A) losses and
deductions allocated to such Capital Account pursuant to Clause 4 (Allocation of Net Income
and Net Loss), (B) the amount of cash and the Distribution Value of any other property
distributed or transferred by the Partnership from such Series to such Limited Partner pursuant
to Clauses 3 (Capital Contributions), 5 (Distributions) or II (Resignation of Limited Partners;
6
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Termination of Partnership; Liquidation and Distribution of Assets), and (C) the amount of
any liabilities of the Limited Partner assumed by such Series or that are secured by any property
contributed to the Series by such Limited Partner.
"Capital Account Percentage" means, with respect to each Capital Account on each day
during any Accounting Period, the percentage determined by dividing the balance of such
Capital Account with respect to such Series as of the beginning of such Accounting Period by
the aggregate balances of all Capital Accounts with respect to such Series as of the beginning
of such Accounting Period.
"Capital Contribution" means a contribution to the capital of any Series, or, if the context
requires, the total amount of money contributed to the capital of any Series by a Limited
Partner, as applicable, which shall rank pro raw and pail passe as to any other Capital
Contribution of any Limited Partner.
"Carried Interest" means an amount payable to the General Partner (and/or to such other
party set forth in the Series Addendum) from the Exit Proceeds distributable to a Limited
Partner under the terms of the relevant Series Addendum.
"Certificate" means the Certificate of Limited Partnership of the Partnership, as amended,
modified or supplemented from time to time.
"Code" means the Internal Revenue Code of 1986, as amended from time to time (or any
succeeding law).
"Contribution Value" means the Value of any property (net of liabilities secured by such
property that such Series is treated as assuming or taking) contributed by a Limited Partner to
a Series.
"Control" has the meaning set forth in the definition of "Affiliate" in this Clause 2.1.
"Depreciation" means, for each Accounting Period, an amount equal to the depreciation,
amortization or other cost recovery deduction allowable for U.S. federal income tax purposes
with respect to an asset for such Accounting Period; provided, however, that if the Book Value
of an asset differs from its adjusted basis for U.S. federal income tax purposes at the beginning
of such Accounting Period, Depreciation shall be an amount that bears the same ratio to such
beginning Book Value as the U.S. federal income tax depreciation, amortization or other cost
recovery deduction with respect to such asset for such Accounting Period bears to such
beginning adjusted tax basis; provided, further, that, if the adjusted basis for U.S. federal
income tax depreciation, amortization or other cost recovery deduction for such Accounting
Period is zero, Depreciation shall be determined with reference to such beginning Book Value
using any reasonable method selected by the General Partner.
"Distribution Value" means the Value of an asset of a Series distributed to a Limited
Partner from such Series by the Partnership (net of liabilities secured by such distributed asset
that such Limited Partner is treated as assuming or taking).
"ERISA" means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated thereunder.
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"Exercise Period" has the meaning set forth in Clause 10.2(b).
"Exit Event" means an event that terminates the equity interests of the relevant Series in a
Portfolio Company.
"Exit Proceeds" means the proceeds the relevant Series receives as a result of an Exit
Event.
"Expenses" means, for the purposes of Clause 3.1 (Capital Contributions): (i) all properly
incurred operational costs (with VAT and any other applicable tax thereon), legal and auditors'
fees (with VAT any other applicable tax thereon), stationary, facsimile and telephone costs and
other fees or expenses payable to administer and to maintain the Partnership or any Series in
existence, duly registered, and able to duly perform the business of the Partnership from time
to time pursuant to Clause 1.3 (Business of the Partnership), and (ii) expenses (other than
placement agent fees) incurred in connection with the offering and sale of interests in the
Partnership or any Series.
"Fiscal Year" has the meaning set forth in Clause 6.3.
"General Assets" has the meaning set forth in Clause 1.7(b).
"General Liabilities" has the meaning set forth in Clause 1.7(c).
"General Partner" means the Initial General Partner, and any other Person admitted to
the Partnership as a general partner following the date hereof in accordance with Clause
8.8.
"Carried Interest" means the aggregate Carried Interest (as defined in the applicable
Series Addendum) payable to the General Partner of the Series (and/or to such other party
set forth in the Series Addendum) upon an Exit Event.
"Indemnified Party" has the meaning set forth in Clause 8.7(a).
"Initial General Partner" means initially iAngels Crowd Ltd., and any successor to the
entire interest in the Partnership of an Initial General Partner.
"Initial Limited Partners" has the meaning set forth in the Preamble, as limited partners
of the Partnership generally.
"Interest" means the entire ownership interest of a Limited Partner in any Series, as
applicable, at any particular time, including, without limitation, such Limited Partner's interest
in the capital, profits and losses from, and in any distributions of any Series.
"Issuance Notice" has the meaning set forth in Clause 10.2(a).
"Liquidator" has the meaning set forth in Clause 11.3(b).
"Limited Partner" of a Series means each of the Persons listed from time to time on the
books and records of the Partnership with respect to such Series as a Limited Partner of such
8
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Series that is a signatory to this Agreement, as well as each Substituted Limited Partner and
each Additional Limited Partner, and, solely with respect to those provisions of this Agreement
concerning a Limited Partner's rights to receive a share of capital, profits or distributions in
respect of such Series, any Transferee of a Limited Partner's Interest in Series (it being
understood that a Transferee who is not admitted as a Substituted Limited Partner of a Series
hereunder shall have only those rights specified by the Act that are consistent with this
Agreement).
"Net Income" and "Net Losses" means, for each Accounting Period, an amount equal to
each Series' taxable income or loss for such Accounting Period, determined in accordance with
Code Section 703(a) (for these purposes, all items of income, gain, loss, or deduction required
to be stated separately pursuant to Code Section 703(a)(I) shall be included in taxable income
or loss), with the following adjustments:
(a)
(b)
any income of the applicable Series that is exempt from federal income tax and not
otherwise taken into account in computing Net Income or Net Losses pursuant to
this definition shall be added to such taxable income or loss;
any expenditures of the applicable Series described in Code Section 705(a)(2)(B)
or treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulation
section §1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Net
Income or Net Losses pursuant to this definition, shall be subtracted from such taxable
income or loss;
(c)
in the event the Book Value of any Series asset is adjusted pursuant to subsection
(ii) of the definition of "Book Value" above, the amount of such adjustment shall be
taken into account as gain or loss from the disposition of such asset for purposes of
computing Net Income or Net Losses;
(d)
gain or loss resulting from any disposition of an asset with respect to which gain or
loss is recognized for federal income tax purposes shall be computed by reference to
the Book Value of the asset disposed of, notwithstanding that the adjusted tax basis of
such asset differs from its Book Value;
(e)
in lieu of the depreciation, amortization, and other cost recovery deductions taken
into account in computing such taxable income or loss, there shall be taken into account
Depreciation for such Accounting Period;
to the extent an adjustment to the adjusted tax basis of the applicable Series asset
pursuant to Code Section 734(b) or Code Section 743(b) is required pursuant to
Treasury Regulation sections §1.704-(b)(2)(iv)(m)(2) or (4) to be taken into account in
determining Capital Accounts as a result of a distribution other than in liquidation of a
Limited Partner's interest in the Series, the amount of such adjustment shall be treated
as an item of gain (if the adjustment increases the basis of the asset) or loss (if the
adjustment decreases the basis of the asset) from the disposition of the asset and shall
be taken into account for purposes of computing Net Income and Net Losses; and
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(g)
notwithstanding any other provision of this definition, any items which are specially
allocated pursuant to Clause 4.3 hereof shall not be taken into account in computing
Net Income and Net Losses.
"New Interests" means, with respect to each Series, any additional ownership interests
that are granted in such Series.
"Non-Exercising Limited Partner" has the meaning set forth in Clause 10.2(b).
"Over-allotment Exercise Period" has the meaning set forth in Clause 10.2(b).
"Partner" means the any General Partner or Limited Partner.
"Partnership" has the meaning set forth in the Preamble.
"Percentage Interest" with respect to each Limited Partner means the "Percentage
Interest" in a Series set forth on such Limited Partner's signature page hereto.
"Person" means any individual, partnership, limited liability company, association,
corporation, trust or other entity.
"Portfolio Company" means a legal entity in which a Series invests.
"Preemptive Limited Partner" means, with respect to each Series, all the Limited
Partners of such Series.
"Securities" means any foreign or domestic "securities," as defined in Section 2(1) of the
Securities Act of 1933, as amended, or Section 3(a)(10) of the Securities Exchange Act of
1934, as amended, and shall include common or preferred stocks, limited partnership interests,
investment contracts, certificates of deposit, trade acceptances and trade claims, convertible
securities, fixed income securities, notes or other evidences of indebtedness of other Persons,
warrants, rights, synthetic securities, put and call options on any of the foregoing, other options
related thereto, interests or participations therein or any combination of any of the foregoing.
"Series" means each separate Series of Interests in the Partnership, and the assets and
liabilities represented thereby, established by the General Partner pursuant to Clause 1.7,
each of which shall be separate and distinct from any other Series.
"Series Addendum" means each addendum to this Agreement that covers terms specific
to a particular Series, each of which shall be part of this Agreement.
"Subscription Documents" means the documents that the General Partner shall require
each Person to execute in order to be admitted as a Limited Partner of a Series.
"Substituted Limited Partner" means any Person admitted to the Partnership as a
substituted Limited Partner pursuant to the provisions of Clause 9 (Transfers of Interest by
Limited Partners).
"Tax Matters Partner" has the meaning set forth in Clause 8.6.
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"Transaction/Management Fee" as for each Limited Partner, is the Transaction Fee or
Management Fee set forth in the applicable Series Addendum.
"Transfer," "Transferee" and "Transferor" have the respective meanings set forth in
Clause 9.1.
"Treasury Regulation" means a Treasury Regulation promulgated under the Code.
"Value" of any Partnership asset as of any date, means the fair market value of such
Partnership asset as of such date, with the fair market value of the type of assets described
below being determined as follows:
(a)
(b)
any Security which is listed or quoted on any securities exchange or similar
electronic system and regularly traded thereon is valued at its closing exchange
price on the relevant valuation day or, if no trades occurred on such day, at the
average between the closing bid price and the closing offer price, as of the valuation
day, and as adjusted in such manner as the General Partner, in its sole discretion,
thinks fit, having regard to the size of the holding, and where prices are available
on more than one exchange or system for a particular Security the price is the
closing exchange price on the relevant valuation day or, if no trades occurred on
such day, at the average between the closing bid price and the closing offer price,
as of the valuation day, in each case, on the exchange which constitutes the main
market for such Security or the one which the General Partner in its sole discretion
determines provides the fairest criteria in ascribing a value to such Security;
any Security which is not listed or quoted on any securities exchange or similar
electronic system or if, being so listed or quoted, is not regularly traded thereon or in
respect of which no prices as described above are available, is valued at its fair market
value as determined in good faith by the General Partner having regard to objective
third party market data (if such data is available and the General Partner believes such
data reasonably reflects actual trading prices), dealer quotations, the price at which any
recent transaction in the Security may have been effected, the size of the holding having
regard to the total amount of such Security in issue, and such other factors as the
General Partner in its sole discretion deems relevant in considering a positive or
negative adjustment to the valuation;
(c)
investments, other than Securities, which are dealt in or traded through a clearing
firm or an exchange or through a financial institution are valued by reference to the
most recent official settlement price quoted by that clearing house, exchange or
financial institution. If there is no such price, then the average is taken between the
lowest offer price and the highest bid price at the close of business on any market on
which such investments are or can be dealt in or traded, provided that where such
investments are dealt in or traded on more than one market, the General Partner may
determine at its sole discretion which markets shall prevail;
(d)
investments, other than Securities, including loans and over-the-counter derivatives
contracts, which are not dealt in or traded through a clearing firm or an exchange or
through a financial institution are valued on the basis of the latest available valuation
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provided by the relevant counterparty or another dealer that quotes such investments.
If relevant counterparty or dealer valuations are unavailable, these investments are
valued on the basis of objective third party market data (if such data is available and
the General Partner believes such data reasonably reflects actual trading prices);
deposits are valued at their cost plus accrued interest; and
any value (whether of an investment or cash) not stated in U.S. Dollars is converted
into U.S. Dollars at the rate (whether official or otherwise) which the General Partner
in its sole discretion deems applicable as at the close of business on the valuation day,
having regard, among other things, to any premium or discount which it considers may
be relevant and to costs of exchange.
The General Partner may elect, in its good faith, to permit any other method of
valuation to be used if it considers that such method of valuation better reflects fair
market value. The General Partner will delegate to an accountant as shall be
selected by the General Partner the valuation of the Partnership's assets. In
determining any Value, such accountant will be entitled to rely on any valuations
provided or attributed to any asset or liability of the Partnership by the General
Partner and to consult with the Partnership's counterparties in valuing the
Partnership's principal transactions.
"Void Transfer" has the meaning set forth in Clause 9.1.
"Withdrawing Limited Partner" has the meaning set forth in Clause 9.2(c).
2.2
Rules of Interpretation.
Unless the context otherwise clearly requires: (a) a term has the meaning assigned to it; (b)
"or is not exclusive; (c) wherever from the context it appears appropriate, each term stated in
either the singular or the plural shall include the singular and the plural, and pronouns stated in
either the masculine, feminine or neuter shall include the masculine, feminine and neuter; (d)
provisions apply to successive events and transactions; (e) all references in this Agreement to
"include" or "including" or similar expressions shall be deemed to mean "including without
limitation"; (f) all references in this Agreement to designated "Clauses," "paragraphs,"
"clauses" and other subdivisions are to the designated Clauses, paragraphs, clauses and other
subdivisions of this Agreement, and the words "herein," "hereof," "hereunder" and other words
of similar import refer to this Agreement as a whole and not to any particular Clause, paragraph,
clause or other subdivision; and (g) any definition of or reference to any agreement, instrument,
document, statute or regulation herein shall be construed as referring to such agreement,
instrument, document, statute or regulation as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein). This Agreement is among financially sophisticated and
knowledgeable parties and is entered into by the parties in reliance upon the economic and
legal bargains contained herein and shall be interpreted and construed in a fair and impartial
manner without regard to such factors as the party who prepared, or cause the preparation of,
this Agreement or the relative bargaining power of the parties. Wherever in this Agreement a
Limited Partner or other Person is empowered to take or make a decision, direction, consent,
vote, determination, election, action or approval, such Limited Partner or Person is entitled to
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consider, favor and further such interests and factors as it desires, including its own interests,
and has no duty or obligation to consider, favor or further any other interest of the Partnership,
any subsidiary of the Partnership or any other Limited Partner or Person. Wherever in this
Agreement the General Partner or a Limited Partner is permitted or required to make a decision
or determination or take an action in its "discretion" or its "judgment," that means that the
General Partner or such Limited Partner, as the case may be, may take that decision in its "sole
discretion" or "sole judgment" without regard to the interests of any other Person.
3.
CAPITAL CONTRIBUTIONS
3.1
Capital Contributions
(a)
(b)
(c)
Following the execution of this Agreement, at a time designated by the General
Partner, each Limited Partner shall make a Capital Contribution to the Partnership with
respect to a Series in the amount designated as such Limited Partner's "Initial Capital
Contribution" on its signature page hereto with respect to each Series. Each Limited
Partner shall pay or bear, as applicable, the Transaction/Management Fee to the
General Partner for the purpose of covering the services provided by the General
Partner, as well as the Expenses. The Transaction/Management Fee shall paid as set
forth in the Series Addendum.
Any Additional Limited Partner admitted to the Partnership will be assigned such
Percentage Interest (and the Percentage Interests of each other Limited Partner shall be
reduced by the Percentage Interest of such Additional Limited Partner in proportion to
their respective Percentage Interests) and shall make such Capital Contributions, if any,
with respect to each Series, as the General Partner deems appropriate. Each Additional
Limited Partner shall also pay the Transaction Fee to the General Partner. The
Transaction Fee shall be deducted from the Capital Contribution of each Additional
Limited Partner and each Additional Limited Partner's Capital Contribution shall be
adjusted downward to reflect the payment of the Transaction Fee to the General
Partner.
Unless required by law or as otherwise required pursuant to this Clause 3.1:
(0
no Limited Partner shall be required to make any additional Capital
Contributions without the prior consent of such Limited Partner and the
General Partner; and
(ii)
no Limited Partner shall be permitted to make any additional Capital
Contributions without the prior consent of the General Partner.
(d)
Notwithstanding the provisions of this Clause 3.1, no Capital Contribution shall be
accepted by the General Partner if such acceptance would cause the Partnership or any
Series that has elected to be treated as a partnership for U.S. federal income tax
purposes to be treated as a "publicly traded partnership" within the meaning of Code
Section 7704, violate or cause the Partnership or any Series to violate any applicable
federal, state or foreign law, rule or regulation including the Securities Act of 1933, as
amended, or any other applicable federal, state or foreign securities laws, rules or
regulations, cause the Partnership or any Series to be an investment company required
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to be registered under the Investment Company Act of 1940, as amended, or cause
some or all of the Partnership's or any Series' assets to be "plan assets" or the activities
of the Partnership or any Series to be subject to ERISA or Section 4975 of the Code.
3.2
Interest on Capital Contributions
No Limited Partner shall be entitled to interest on or with respect to any Capital
Contribution.
3.3
Withdrawal and Return of Capital Contributions
Except as provided in this Agreement, no Limited Partner shall be entitled to withdraw any
part of such Limited Partner's Capital Contribution or to receive distributions from the
Partnership, including without limitation, as a result of the withdrawal of such Limited Partner
from this Agreement or any Series.
3.4
Form of Capital Contribution
Unless otherwise agreed to by the General Partner in its sole discretion, all Capital
Contributions to a Series shall be made in cash.
4.
ALLOCATION OF NET INCOME AND NET LOSS
4.1
Treatment of each Series as a Separate Partnership
The Partners agree to treat each Series as a separate partnership and the Partners as partners
in each such partnership for U.S. federal income tax purposes and shall file all tax returns
accordingly. For purposes of this Clause 4, each Partner shall be deemed to have a single
Capital Account with respect to each Series and all allocations shall be made separately with
respect to each Series.
4.2
Allocation of Net Income and Net Loss
Except as provided in Clause 4.3, the Net Income or Net Loss with respect to a Series, and
each item of income, gain, loss and deduction entering into the computation thereof for
each Accounting Period, shall be allocated among the Partners in such proportions and in
such amounts as may be necessary so that following such allocations, if the Series were
dissolved, its affairs wound up and its assets distributed to the Partners in accordance with
their respective Capital Account balances immediately after making such allocation, such
distributions would, as nearly as possible, be equal to the distributions that would be made
pursuant to Section 5.
4.3
Other Allocation Provisions
(a)
If there is a net decrease in "partnership minimum gain" (within the meaning of
Treasury Regulation section §1.704-2(d)) for an Accounting Period, then there shall be
allocated to each Limited Partner items of income and gain for that year equal to that
Limited Partner's share of the net decrease in partnership minimum gain (within the
meaning of Treasury Regulation section § l.704-2(g)(2)), subject to the exceptions set
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forth in Treasury Regulation section §1.704-2(F)(2) and (3), and to any exceptions
provided by the Commissioner of the Internal Revenue Service pursuant to Treasury
Regulation section §1.704-2(f)(5), provided that if the Partnership has any discretion
as to an exception provided pursuant to Treasury Regulation section § I.704-2(f)(5),
the applicable Tax Matters Partner may exercise such discretion on behalf of the
Partnership. The foregoing is intended to be a "minimum gain chargeback" provision
as described in Treasury Regulation section §1.704-2(f) and shall be interpreted and
applied in all respects in accordance with that Treasury Regulation. If during an
Accounting Period there is a net decrease in partner nonrecourse debt minimum gain
(as determined in accordance with Treasury Regulation section §1.704-2(i)(3)), then,
in addition to the amounts, if any, allocated pursuant to the preceding paragraph, any
Limited Partner with a share of that partner nonrecourse debt minimum gain
(determined in accordance with Treasury Regulation section §1.704-2(i)(5)) as of the
beginning of the Accounting Period shall, subject to the exceptions set forth in Treasury
Regulation section §1.704-2(i)(4), be allocated items of income and gain for the year
(and, if necessary, for succeeding years) equal to that Limited Partner's share of the net
decrease in the partner nonrecourse minimum gain. The foregoing is intended to be the
"charge back of partner nonrecourse debt minimum gain" required by Treasury
Regulation section §1.704-2(i)(4) and shall be interpreted and applied in all respects in
accordance with that Treasury Regulation.
(b)
If during any Accounting Period a Limited Partner unexpectedly receives an
adjustment, allocation or distribution described in Treasury Regulation section §1.704-
1(b)(2)(ii)(d)(4), (5) or (6), which causes or increases a deficit balance in such Limited
Partner's Adjusted Capital Account, there shall be allocated to such Limited Partner
items of income and gain (consisting of a pro rata portion of each item of income,
including gross income, and gain for such Accounting Period) in an amount and
manner sufficient to eliminate such deficit as quickly as possible. The foregoing is
intended to be a "qualified income offset" provision as described in Treasury
Regulation section §1.704-1(b)(2)(ii)(d) and shall be interpreted and applied in all
respects in accordance with that Treasury Regulation.
(c)
Notwithstanding anything to the contrary in this Clause 4.3(c), losses, deductions
or expenditures subject to Code Section 705(a)(2)(B) that are attributable to a particular
partner nonrecourse liability shall be allocated to the Limited Partner that bears the
economic risk of loss for the liability in accordance with the rules of Treasury
Regulation section §1.704-2(i).
(i)
Notwithstanding any provision of Clause 4.1, no allocation of Net Loss shall
be made to a Limited Partner if it would cause the Limited Partner to have a
negative balance in its Adjusted Capital Account. Allocations of Net Loss that
would be made to a Limited Partner but for this Clause 4.3(c)(i) shall instead
be made to the other Limited Partners pursuant to Clause 4.1 to the extent not
inconsistent with this Clause 4.3(c)(i). To the extent allocations of Net Loss
cannot be made to any Limited Partner because of this Clause 4.3(c)(i), such
allocations shall be made to the Limited Partners in accordance with Clause 4.1
notwithstanding this Clause 4.3(c)(i)
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(ii)
If any Limited Partner has a deficit in its Adjusted Capital Account, such
Limited Partner shall be specially allocated items of Partnership income and
gain in the amount of such deficit as quickly as possible; provided that an
allocation pursuant to this Clause 4.3(c)(i) shall be made if and only to the
extent that such Limited Partner would have a deficit in its Adjusted Capital
Account after all other allocations provided for in this Agreement have
tentatively been made as if this Clause 4.3(c)(ii) were not in this Agreement.
(d)
To the extent that any item of income, gain, loss or deduction has been specially
allocated pursuant to paragraphs (b) or (c) of this Clause 4.3 and such allocation is
inconsistent with the way in which the same amount otherwise would have been
allocated under Clause 4.1, subsequent allocations under Clause 4.1 shall be made, to
the extent possible and without duplication, in a manner consistent with paragraphs (a),
(b) or (c) of this Clause 4.3, which negate as quickly as possible the effect of all such
inconsistent allocations under said paragraphs (b) or (c).
(e)
Except to the extent otherwise required by the Code and Treasury Regulations, if
an Interest in the Partnership or part thereof is Transferred in any Accounting Period,
the items of income, gain, loss, deduction and credit allocable to such Interest for such
Accounting Period shall be apportioned between the Transferor and the Transferee in
proportion to the number of days in such Accounting Period the Interest is held by each
of them, except that, if they agree between themselves and so notify the General Partner
within thirty days after the Transfer, then at their option and expense, (i) all items or
(ii) extraordinary items, including capital gains and losses, may be allocated to the
Person who held the Interest on the date such items were realized or incurred by the
Partnership.
(t)
Any allocations made pursuant to this Clause 4 shall be made in the following order:
(i)
Clause 4.3(a);
(ii)
Clause 4.3(b);
(iii)
Clause 4.3(c);
(iv)
Clause 4.1, as modified by Clause 4.3(c)(i); and
(v)
Clause 4.3(c)(ii).
These provisions shall be applied as if all distributions and allocations were made
at the end of the Accounting Period. Where any provision depends on the balance
of a Capital Account of any Limited Partner, that Capital Account shall be
determined after the operation of all preceding provisions for the year. The
foregoing provisions of Clause 4.2 and this Clause 4.3 are intended to comply with
section 704(b) of the Code and Treasury Regulation section §1.704-1(b), and shall
be interpreted and applied in a manner consistent with such regulations.
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4.4
Allocations for Income Tax Purposes
The income, gains, losses, deductions and credits of a Series for federal, state and local
income tax purposes shall be allocated in the same manner as the corresponding items entering
into the computation of Net Income and Net Loss were allocated pursuant to Clauses 4.2 and
4.3; provided that solely for federal, state and local income and franchise tax purposes and not
for book or Capital Account purposes, income, gain, loss and deduction with respect to
property properly carried on the Partnership's books with respect to a Series at a value other
than its tax basis shall be allocated in accordance with the requirements of Code Section 704(c)
and Treasury Regulation section *1.704-3; and provided, further, that if in any Accounting
Period a Limited Partner withdraws all or any portion of the balance of its Capital Account
with respect to any Series in accordance with Clause 5.1(b), the Tax Matters Partner shall
allocate taxable gain (or taxable loss, as applicable) of such Series to the withdrawing Limited
Partner so as to eliminate differences between such Capital Account(s) (or the portion being
withdrawn) and the adjusted tax basis for the portion of such Limited Partner's Interest that is
withdrawn (computed, for this purpose only, without regard to such Limited Partner's share of
any liabilities of such Series in accordance with Code Section 752) to the extent that taxable
gain (or taxable loss, as applicable) allocated to the withdrawing Limited Partner does not
change the amount of capital gains and long term capital gains to be recognized by such
withdrawing Limited Partner (taking into account any capital gains and long term capital gains
recognized by the withdrawing Limited Partner on receiving its distribution upon withdrawal).
4.5
Withholding
The Partnership shall comply with withholding requirements on a Series-by-Series basis
under federal, state, local law and shall remit amounts withheld to, and file required forms with
the applicable jurisdictions. To the extent a Series is required to withhold and pay over any
amounts to any authority with respect to distributions or allocations to any Limited Partner, the
amount withheld shall be treated as a distribution in the amount of the withholding to that
Limited Partner. In the event of any claimed over-withholding, Limited Partners shall be
limited to an action against the applicable jurisdiction. If the amount withheld was not withheld
from actual distributions, the Partnership may, at its option, (i) require the Limited Partner to
reimburse the Partnership for such withholding or (ii) reduce any subsequent distributions by
the amount of such withholding. Each Limited Partner agrees to furnish the Partnership with
any representations and forms as shall reasonably be requested by the Partnership to assist it in
determining the extent of, and in fulfilling, its withholding obligations. Each Limited Partner
will indemnify the General Partner and any Series against any losses and liabilities (including
interest and penalties) related to any withholding obligations with respect to allocations or
distributions made to it by the Partnership.
5.
DISTRIBUTIONS
5.1
General
Except as provided in this Clause 5.1, or upon the written consent of, and upon such terms
as may be determined by, the General Partner in its sole discretion, no Limited Partner shall be
entitled (i) to receive distributions from any Series or (ii) to withdraw any amount from any of
its Capital Accounts. All such distributions and withdrawals, and all of the provisions of this
Clause 5.1, shall be subject to Clause 5.2 hereof.
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(a)
Distributions
Unless expressly approved by the General Partner, or otherwise expressly stated in
the relevant Series Addendum, no distributions shall be made unless an Exit Event
occurs.
In the event of an Exit Event with respect to a Series, distributions will be made as
follows:
(b)
(i)
first, to the General Partner (and/or to such other party set forth in the Series
Addendum), the Carried Interest for each Limited Partner of such Series;
and
(ii)
thereafter, to each Limited Partner having an Interest in such Series, on a
pro rata basis, the Exit Proceeds.
Restrictions on Withdrawal
No Limited Partner shall be entitled to withdraw from the Partnership except upon
dissolution of the Partnership pursuant to Clause 11.
5.2
Limitations on Distributions
(a)
Anything to the contrary herein notwithstanding:
(b)
(i)
no distribution pursuant to this Agreement shall be made if the General
Partner determines in good faith that such distribution may violate the Act or
any other applicable law;
(ii)
no distribution shall be made if such distribution would violate the terms of
any, to the extent applicable, agreement or any other instrument to which the
Partnership on behalf of the applicable Series is a party;
(iii)
the General Partner may postpone the date of payment for any period during
which (A) there exists a state of affairs that constitutes a state of emergency, as
a result of which disposal of the investments owned by the applicable Series is
not reasonably practicable or it is not reasonably practicable to determine fairly
the Value of its assets, or (B) there exist such other extraordinary
circumstances, as determined in good faith by the General Partner, that cause
such withdrawals or payments to be impracticable under existing economic or
market conditions or conditions relating to the Partnership or to be materially
prejudicial to the non-withdrawing Limited Partners; and
(iv)
the rights of a Limited Partner upon withdrawal from a Series shall be limited
to the assets belonging to the Series from which the withdrawal is made.
In the event of any postponement of any distribution pursuant to Clause 5.2(a), all
amounts so retained by a Series shall continue to be subject to all the liabilities such
Series. The Partnership shall make such distribution (with accrued interest actually
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earned thereon) as soon as such distribution would not be prohibited pursuant to this
Clause 5.2.
6.
BOOKS OF ACCOUNT, RECORDS AND REPORTS, FISCAL YEAR
6.1
Books and Records
The General Partner shall maintain proper and complete records and books of account of
the Partnership with respect to each Series in which shall be entered fully and accurately all
transactions and other matters relative to the Series' business as are usually entered into records
and books of account maintained by Persons engaged in businesses of a like character,
including each Capital Account established for and the Interest in such Series (and, if
applicable, the number of units) held by each Limited Partner. The Partnership's books and
records shall be kept on such method of accounting as permitted by applicable law and selected
by the General Partner. The books and records of the Partnership as to each Series shall at all
times be maintained at the principal office of the Partnership and shall be open to the inspection
and examination of the Limited Partners holding an Interest in such Series or by such Limited
Partner's duly authorized representatives for a proper purpose during reasonable business hours
upon reasonable prior written notice and at the sole cost and expense of the inspecting or
examining Limited Partner. The books and records of the Partnership with respect to each
Series shall be audited as of the end of each Fiscal Year by such accountants as shall be selected
by the General Partner.
6.2
Reports
As to each Series, subject to any applicable confidentiality obligations, the General Partner
shall make available to the Limited Partners of such Series the reports expressly required
by the relevant Series Addendum.
6.3
Fiscal Year
The fiscal year of the Partnership and each Series (the "Fiscal Year") shall be the calendar
year; provided, however, that the last Fiscal Year of the Partnership and each Series shall end
on the date on which the Partnership is terminated.
7.
POWER, RIGHTS AND DUTIES OF THE LIMITED PARTNERS
7.1
Limitations
Other than as required by the Act, the Limited Partners shall not participate in the
management or control of the Partnership's or any Series' business nor shall they transact any
business for the Partnership or any Series, nor shall they have the power to act for or bind the
Partnership or any Series, said powers being vested solely and exclusively in the General
Partner. The Limited Partners shall have no interest in the properties or assets of the General
Partner, or any equity therein, or in any proceeds of any sales thereof (which sales shall not be
restricted in any respect), by virtue of acquiring or owning an Interest in the Partnership or any
Series.
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7.2
Liability
Subject to the provisions of the Act, no Limited Partner shall be liable for the repayment,
satisfaction or discharge of any Partnership liabilities or those of any Series in excess of the
balance of such Limited Partner's Capital Account. No Limited Partner shall be personally
liable for the return of any portion of the Capital Contributions (or any return thereon) of any
other Limited Partner.
7.3
Priority
No Limited Partner shall have priority over any other Limited Partner as to allocations or
distributions from any Series or the Partnership, except as otherwise expressly provided in
this Agreement.
7.4
Limited Partner Standard of Care
No Limited Partner shall have any fiduciary duties to the Partnership or any Series or to any
other Limited Partner, and such fiduciary duties are hereby eliminated to the fullest extent
permitted by law.
8.
POWERS, RIGHTS AND DUTIES OF THE GENERAL PARTNER
8.1
Powers of the General Partner
The management of the Partnership shall be vested in the General Partner. Except for non-
waivable provisions of the Act, the General Partner shall have full and complete authority,
power and discretion to manage and control the business, operations and affairs of the
Partnership, to make all decisions regarding those matters and to perform any and all acts
or activities customary or incident to the management of the Partnership's business. The
General Partner may approve a merger, consolidation or other Exit Event with respect to a
Series or the Partnership without a vote by the Limited Partners of such Series or the
Partnership, as applicable. Nothing contained in this Agreement shall require any Person
to inquire into the authority of the General Partner to execute and deliver any document on
behalf of the Partnership or to bind the Partnership pursuant to such document.
8.2
Standard of Care
To the fullest extent permitted by applicable laws, neither the General Partner nor any agent
of the General Partner shall be liable, responsible or accountable in damages or otherwise
to the Partnership or to any Limited Partner for any act or omission performed or omitted
by such General Partner or agent of the General Partner (other than a willful breach of this
Agreement) whether in its capacity as a Limited Partner, a General Partner, an agent of the
General Partner or otherwise. To the extent that, at law or in equity, the General Partner
has duties (including fiduciary duties) and liabilities related thereto to the Partnership or to
any Limited Partner, it is expressly agreed by the Limited Partners that such liabilities and
duties shall be deemed eliminated (other than duties of the General Partner expressly set
forth herein).
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8.3
Partnership Funds
Partnership funds belonging to a Series shall be held in the name of the applicable Series
and shall not be commingled with those of any other Person or Series. Partnership funds shall
be used only for the business of the Partnership and the applicable Series.
8.4
Other Activities
The General Partner shall not be required to manage the Partnership as its sole and
exclusive function. The General Partner shall devote such time to the Partnership's and each
Series' business as the General Partner, in its sole discretion, shall deem to be necessary to
manage and supervise the Partnership's and each Series' business and affairs in an efficient
manner. The General Partner may engage in or possess any interests in business ventures and
may engage in other activities of every kind and description independently or with others in
addition to those relating to the Partnership and each Series. Each Limited Partner authorizes,
consents to and approves of such present and future activities by such Persons. Neither the
Partnership, any Series nor any Limited Partner shall have any right by virtue of this Agreement
or the relationship created hereby in or to other ventures or activities of the General Partner or
to the income or proceeds derived therefrom.
8.5
Nature and Validity of Transactions with the General Partner
The General Partner may be employed or retained by the Partnership or any Series or any
Affiliate of the Partnership in any capacity. The validity of any transaction, agreement or
payment involving the Partnership or any Series and the General Partner otherwise
permitted by this Agreement shall not be affected by reason of the relationship with the
General Partner or the approval of such transaction, agreement or payment by the General
Partner. Prior to the approval of any transaction or series of related transactions involving
the Partnership or any Series and the General Partner by the General Partner, the General
Partner shall either obtain (i) an opinion of an accounting firm, nationally recognized in
Israel or in the United States, stating that such transaction or series of related transactions
is/are on terms no less favorable to the Partnership or such Series than those that would
have been obtainable at that time in an arm's-length transaction with an unaffiliated or
uninterested party, or (ii) approval of Limited Partners holding a majority of the Interests
in the affected Series, as applicable.
8.6
Tax Matters Partner
For purposes of Code Section 6231(a)(7), each Series shall appoint a "Tax Matters
Partner." If such Tax Matters Partner ceases to be a Limited Partner, the Tax Matters Partner
shall be a Limited Partner appointed by the General Partner. Each Tax Matters Partner is
specifically directed and authorized to take whatever steps may be necessary or desirable to
perfect such designation, including filing any forms or documents with the Internal Revenue
Service and taking such other action as may from time to time be required under the Treasury
Regulations. Each Tax Matters Partner shall be permitted to make any and all elections for
federal, state, local and foreign tax purposes.
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8.7
Indemnification of the General Partner, Officers and Agents
(a)
To the maximum extent permitted by law, out of the assets of any one or more
applicable Series, the General Partner and each agent of the General Partner, and each
partner, member, shareholder, director, officer, agent and employee of any of the
foregoing persons (each, an "Indemnified Party") will be indemnified and held
harmless by the Partnership or such applicable Series, to the extent of the Partnership's
or such Series' assets, from and against any and all losses, damages, disbursements,
suits, claims, liabilities, obligations, judgments, fines, penalties, charges, amounts paid
in settlement, costs and expenses (including without limitation, reasonable attorneys'
fees and expenses) incurred in investigating, preparing or defending any action, claim,
suit, inquiry, proceeding, investigation or appeal from any of the foregoing by or before
any court or governmental authority, whether pending, threatened or concluded,
whether or not an Indemnified Party is or may be a party thereto, which in the judgment
of the General Partner, arise out of, relate to or are in connection with this Agreement,
or by reason of such Indemnified Party's management, directly or indirectly, of the
affairs of the Partnership or any Series or rendering of advice or consultation with
respect thereto, or that relate, directly or indirectly, to the Partnership or any applicable
Series, its business or its affairs (collectively, "Indemnified Losses"), except for any
Indemnified Losses that are finally determined by a court of competent jurisdiction to
have resulted from the actual fraud or willful misconduct of such Indemnified Party
seeking indemnification.
(b)
In the event of settlement of any action, suit or proceeding pending or threatened, such
indemnification shall extend to all matters covered by the settlement except for matters
with respect to which the Partnership is advised by counsel regularly retained by the
Partnership that the Person seeking indemnification, in the opinion of such counsel, did
not act in good faith. The foregoing right of indemnification shall be in addition to any
rights to which an Indemnified Party may otherwise be entitled and shall inure to the
benefit of the executors, administrators, personal representatives, successors or assigns
of each such Indemnified Party.
(c)
The Partnership may pay the expenses incurred by an Indemnified Party in defending
a civil or criminal action, suit or proceeding, upon receipt of an undertaking by or on
behalf of such Person to repay such payment if it shall finally be judicially determined
that such Person is not entitled to indemnification therefore as provided herein. Any
right of indemnity or advancement of expenses granted under this Clause 8.7 may be
satisfied only out of the assets of the Partnership and no Limited Partner shall be liable
with respect to any such claim for indemnification.
(d)
No amendment, modification or deletion of this Clause 8.7 shall apply to or have any
effect on the right of any Indemnified Party to indemnification for or with respect to
any acts or omissions of such Indemnified Party occurring prior to such amendment,
modification or deletion.
8.8
Additional General Partners
(a)
The Partnership shall at all times have at least one General Partner, and each Series
shall at all times have at least one General Partner associated with such Series. A
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General Partner, including a General Partner associated with a Series, may not
assign its interest in the Partnership, or in the Series with which such General
Partner is associated, in whole or in part under any circumstances except to a
successor general partner approved by the Initial General Partner. The admission
of such successor as a general partner of the Partnership or as a general partner
associated with any Series, as the case may be, shall be effective upon the filing of
an amendment to the Certificate with the Secretary of State of the State of Delaware
which indicates that such successor has been admitted as a general partner in the
Partnership. If a General Partner assigns its entire Interest to a successor of the
General Partner, the General Partner shall cease to be a general partner in the
Partnership (or in the Series, as the case may be) simultaneously with the admission
of the successor as a general partner of the Partnership or the Series, as the case
may be. Any such successor general partner in the Partnership or Series is hereby
authorized to and shall continue the business of the Partnership or the Series, as the
case may be, without dissolution.
(b)
Each additional or substitute General Partner shall have such duties and
responsibilities, and such rights and interests, with respect to the Partnership
generally, as may be determined by the Initial General Partner from time to time by
written notice to any such additional or substitute General Partner, and each
additional or substitute General Partner associated with a Series shall have such
duties and responsibilities related to such Series, and such rights and interests in the
assets of the Series, as provided in the relevant Series Addendum.
(c)
All references herein to General Partner shall refer to the General Partners of the
Partnership generally, or to the General Partners associated with a Series,
individually or collectively as appropriate in context.
8.9
Additional Limited Partners
‘a)
Subject to the provisions of this Clause 8.9, the Partnership may, at the discretion
of the General Partner, admit a one or more Persons as additional Limited Partners
(each, an "Additional Limited Partner") for such Capital Contributions in cash as it
may determine with all of the rights and obligations of a Limited Partner under this
Agreement. Each Additional Limited Partner's Capital Account balance shall initially
equal the amount of cash, or the Contribution Value of any property, contributed by
such Limited Partner.
(b)
Notwithstanding the provisions of Clause 8.9(a), no Person may be admitted as an
Additional Limited Partner if such admission would cause any Series that has elected
to be treated as a partnership for U.S. federal income tax purposes to be treated as a
"publicly traded partnership" within the meaning of Code Section 7704 or otherwise
be treated as an association taxable as a corporation for U.S. federal income tax
purposes, violate or cause the Partnership or any Series to violate any applicable
Federal, state or foreign law, rule or regulation including the Securities Act of 1933, as
amended, or any other applicable federal, state or foreign securities laws, rules or
regulations, cause the Partnership or any Series to be an investment company required
to be registered under the Investment Company Act of 1940, as amended, or cause
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some or all of the Partnership's or any Series' assets to be "plan assets" or the activities
of the Partnership or any Series to be subject to ERISA or Section 4975 of the Code.
(c)
Each Additional Limited Partner shall execute such documentation as required by the
General Partner pursuant to which such Additional Limited Partner agrees to be bound
by the terms and provisions of this Agreement.
(d)
Each Person desiring to become an Additional Limited Partner shall be admitted to the
Partnership upon the approval of the General Partner and the delivery of a counterpart
signature page to this Agreement that has been duly executed and delivered to the
Partnership and any other documentation required by the General Partner.
9.
TRANSFERS OF INTEREST BY LIMITED PARTNERS
9.1
General
No Limited Partner may sell, assign, pledge or in any manner dispose of or create or suffer
the creation of a security interest in or any encumbrance on all or a portion of its Interest in any
Series (the commission of any such act being referred to as a "Transfer," any Person who
effects a Transfer being referred to as a "Transferor" and any Person to whom a Transfer is
effected being referred to as a "Transferee") except in accordance with the terms and
conditions set forth in this Clause 9. No Transfer of an Interest in any Series shall be effective
until such time as all requirements of this Clause 9 in respect thereof have been satisfied and,
if consents, approvals or waivers are required by the General Partner, all of same shall have
been confirmed in writing by the General Partner. Any Transfer or purported Transfer of an
Interest in any Series not made in accordance with this Agreement (a "Void Transfer") shall
be null and void and of no force or effect whatsoever. Any amounts otherwise distributable
under Clause 5 (Distributions) or Clause 11 (Resignation of Limited Partners; Termination of
Partnership; Liquidation and Distribution of Assets) in respect of an Interest in any Series that
has been the subject of a Void Transfer may be withheld by the Partnership until the Void
Transfer has been rescinded, whereupon the amount withheld (after reduction by any damages
suffered by the Partnership attributable to such Void Transfer) shall be distributed without
interest.
9.2
Transfer of Interest of Limited Partners
A Limited Partner may not Transfer all or any portion of its Interest in any Series to any
Person without the consent of the General Partner. Subject to the foregoing:
(a)
The Transferee of a Limited Partner's Interest in any Series may be admitted to the
Partnership as a Substituted Limited Partner upon the prior consent of the General
Partner. Unless a Transferee of a Limited Partner's Interest in any Series is admitted as
a Substituted Limited Partner under this Clause 9.2(a), it shall have none of the powers
of a Limited Partner hereunder and shall have only such rights of an assignee under the
Act as are consistent with this Agreement. No Transferee of a Limited Partner's
Interest shall become a Substituted Limited Partner unless such Transfer shall be made
in compliance with the foregoing and 9.3.
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(b)
Upon the Transfer of the entire Interest in all Series of a Limited Partner and effective
upon the admission of its Transferee as a Limited Partner, the Transferor shall be
deemed to have withdrawn from the Partnership as a Limited Partner.
(c)
Upon the death, disability, dissolution, resignation or withdrawal in contravention of
Clause 11.1, or the bankruptcy of a Limited Partner (the "Withdrawing Limited
Partner"), the Partnership shall have the right to treat such Limited Partner's
successor(s)-in-interest as assignee(s) of such Limited Partner's Interest in applicable
Series, with none of the powers of a Limited Partner hereunder and with only such
rights of an assignee under the Act as are consistent with this Agreement. For purposes
of this Clause 9.2(c), if a Withdrawing Limited Partner's Interest in any Series is held
by more than one Person (for purposes of this Clause 9.2(c), the "Assignees"), the
Assignees shall appoint one Person with full authority to accept notices and
distributions with respect to such Interest in a Series on behalf of the Assignees and to
bind them with respect to all matters in connection with the Partnership or this
Agreement.
(d)
Upon request of the Partnership, each Limited Partner agrees to provide to the
Partnership information regarding its adjusted tax basis in its Interests along with
documentation substantiating such amount, and any other information, documentations
and certifications necessary for any Series to comply with Section 743 of the Code and
the Treasury Regulations thereunder, or any other applicable law, governmental rule
or regulation.
(e)
The Partnership shall reflect each Transfer and admission authorized under this Clause
9 (including any terms and conditions imposed thereon by the General Partner) by
preparing an amendment to this Agreement, dated as of the date of such Transfer, to
reflect such Transfer or admission.
9.3
Further Requirements
In addition to the other requirements of Clause 9.2, and unless waived in whole or in part
by the General Partner, no Transfer of all or any portion of an Interest in any Series may be
made unless the following conditions are met:
(a)
(b)
The Transferor shall have paid all reasonable costs and expenses, including
attorneys' fees and disbursements and the cost of the preparation, filing and publishing
of any amendment to this Agreement or the Certificate, incurred by the Partnership in
connection with the Transfer;
The Transferor shall have delivered to the Partnership a fully executed copy of all
documents relating to the Transfer, executed by both the Transferor and the Transferee,
and the agreement of the Transferee in writing and otherwise in form and substance
acceptable to the General Partner to:
(i)
be bound by the terms imposed upon such Transfer by the General Partner
and by the terms of this Agreement; and
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(c)
(ii)
assume all obligations of the Transferor under this Agreement relating to
the Interest in the Partnership that is the subject of such Transfer;
The General Partner shall have been reasonably satisfied, including, at its option,
having received an opinion of counsel to the Partnership reasonably acceptable to the
General Partner, that:
(i)
the Transfer will not cause any Series that has elected to be treated as a
partnership for U.S. federal tax purposes to be treated as a "publicly traded
partnership" within the meaning of Code Section 7704 or otherwise be treated
as an association taxable as a corporation for U.S. federal income tax purposes;
(ii)
the Transfer will not violate the Securities Act of 1933, as amended, or any
other applicable federal, state or non-United States securities laws, rules or
regulations;
(iii)
the Transfer will not cause some or all of the assets of the Partnership or any
Series to be "plan assets" or the investment activity of the Partnership or any
Series to constitute "prohibited transactions" under ERISA or the Code; and
(iv)
the Transfer will not cause the Partnership or any Series to be an investment
company required to be registered under the Investment Company Act of 1940,
as amended; and
Any waivers from the General Partner under this Clause 9.3 shall be given or denied in the
sole discretion of the General Partner. The form and content of all documentation delivered to
the General Partner under this Clause 9.3 shall be subject to the approval of the General Partner,
which approval may be granted or withheld in the sole discretion of the General Partner.
9.4
Consequences of Transfers Generally
(a)
(b)
In the event of any Transfer or Transfers permitted under this Clause 9, the
Transferor and the Interest in any Series that is the subject of such Transfer shall remain
subject to this Agreement, the applicable Series Addendum and the Subscription
Documents, and the Transferee shall hold such Interest subject to all unperformed
obligations of the Transferor. Any successor or Transferee hereunder shall be subject
to and bound by this Agreement and the applicable Series Addendum as if originally a
party thereto.
Unless a Transferee of a Limited Partner's Interest becomes a Substituted Limited
Partner, such Transferee shall have no right to obtain or require any information or
account of Partnership transactions, or to inspect the Partnership's books or to vote on
Partnership matters. Such a Transfer shall, subject to the last sentence of Clause 9.1,
merely entitle the Transferee to receive the share of distributions, Net Income, Net Loss
and items of income, gain, deduction and loss to which the Transferor otherwise would
have been entitled. Each Limited Partner agrees that such Limited Partner will, upon
request of the General Partner, execute such certificates or other documents and
perform such acts as the General Partner deems appropriate after a Transfer of such
Limited Partner's Interest (whether or not the Transferee becomes a Substituted
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Limited Partner) to preserve the limited liability of the Limited Partners under the laws
of the jurisdictions in which the Partnership is doing business.
(c)
The Transfer of a Limited Partner's Interest in any Series and the admission of a
Substituted Limited Partner shall not be cause for dissolution of the Partnership.
9.5
Capital Account; Percentage Interest
Any Transferee of a Limited Partner under this Clause 9 shall, subject to the last sentence
of Clause 9.1, succeed to the portion of the Capital Account and Percentage Interest so
Transferred to such Transferee.
9.6
Additional Filings
Upon the admission of a Substituted Limited Partner under Clause 9.2, the Partnership shall
cause to be executed, filed and recorded with the appropriate governmental agencies such
documents (including amendments to this Agreement) as are required to accomplish such
substitution.
9.7
Indirect Transfers
Notwithstanding anything to the contrary herein, if any Limited Partner is an entity that
was formed solely for the purpose of acquiring an Interest or that has no substantial assets other
than an Interest, such Limited Partner agrees that (a) its common stock, membership interests,
partnership interests or other equity interests (and common stock, membership interests,
partnership interests or other equity interests in any similar entities controlling such Limited
Partner) will note the restrictions contained in this Clause 9 and (b) no common stock,
membership interests, partnership interests or other equity interests of such Limited Partner
may be Transferred to any Person other than in accordance with the terms and provisions of
this Clause 9, as if such common stock, membership interests, partnership interests or other
equity interests were Interests and the holders thereof were Limited Partners.
10.
PREEMPTIVE RIGHTS
10.1
Preemptive Right
The Partnership hereby grants to each Preemptive Limited Partner, the right to purchase its
pro rata portion of any New Interests that the Partnership may from time to time propose
to issue or sell in a Series, either as a result of (i) the General Partner determination to make
such an issuance or sale and/or (ii) notice from a Portfolio Company held by such Series
of the Partnership's preemptive right as a result of the Partnership's investment in such
Portfolio Company.
10.2
Exercise of Preemptive Right
(a)
The General Partner shall provide notice (an "Issuance Notice") of any proposed
issuance or sale described in Clause 10.1 to the Preemptive Limited Partners.
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(b)
Each Preemptive Limited Partner shall have a period (the "Exercise Period") as
shall be determined by the General Partner and stated in the Issuance Notice to elect
irrevocably to purchase all or any portion of its pro rata portion of any New Interests
at the purchase price set forth in the Issuance Notice by delivering a written notice
to the Partnership (an "Acceptance Notice") specifying the number of New
Interests it desires to purchase. The delivery of an Acceptance Notice by a
Preemptive Limited Partner shall be a binding and irrevocable offer by such
Limited Partner to purchase the New Interests described therein. The failure of a
Preemptive Limited Partner to deliver an Acceptance Notice by the end of the
Exercise Period shall constitute a waiver of its rights under this Clause 10.1 with
respect to the purchase of such New Interests, but shall not affect its rights with
respect to any future issuances or sales of New Interests.
(c)
Following the expiration of the Exercise Period, the Partnership shall notify each
Preemptive Limited Partner in writing of the number of New Interests that each
Preemptive Limited Partner has agreed to purchase (including, for the avoidance of
doubt, where such number is zero). The General Partner shall have a right of over-
allotment such that if any Preemptive Limited Partner has failed to exercise its right
under this Clause 10.2 to purchase its full applicable pro rata portion of the New
Interests (each, a "Non-Exercising Limited Partner"), the General Partner may
purchase such Non-Exercising Limited Partner's allotment. If the General Partner
does not elect to purchase such Non-Exercising Limited Partner's allotment, each
Preemptive Limited Partner exercising its rights to purchase its applicable pro rata
portion of New Interests in full (an "Exercising Limited Partner") may purchase
its applicable pro rata portion of such Non-Exercising Limited Partner's allotment
by giving written notice to the Partnership within the time period to be specified by
the General Partner (the "Over-allotment Exercise Period").
(d)
Following the expiration of the Exercise Period and, if applicable, the Over-
allotment Exercise Period, the Partnership shall be free to complete the proposed
issuance or sale of New Interests described in the Issuance Notice with respect to
which Preemptive Limited Partners or the General Partner declined to exercise the
preemptive right set forth in this 10.2 on terms no less favorable to the Partnership
than those set forth in the Issuance Notice (except that the amount of New Interests
to be issued or sold by the Partnership may be reduced); provided, that, for the
avoidance of doubt, the price at which the New Interests are sold to a prospective
purchaser is at least equal to or higher than the purchase price described in the
Issuance Notice.
(e)
The closing of any purchase by any Preemptive Limited Partner shall be
consummated concurrently with the consummation of the issuance or sale
described in the Issuance Notice. Upon the issuance or sale of any New Interests in
accordance with this Clause 10.2, the Partnership shall deliver the New Interests
free and clear of any liens (other than those arising hereunder and those attributable
to the actions of the purchasers thereof), and the Partnership shall so represent and
warrant to the purchasers thereof, and further represent and warrant to such
purchasers that such New Interests shall be, upon issuance thereof to the Exercising
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Limited Partners and after payment therefor, duly authorized, validly issued, fully
paid and non-assessable. The Partnership, in the discretion of the General Partner
pursuant to Clause 1.7(O, may deliver to each Exercising Limited Partner
certificates evidencing the New Interests. Each Exercising Limited Partner shall
deliver to the Partnership the purchase price for the New Interests purchased by it
by certified or bank check or wire transfer of immediately available funds. Each
party to the purchase and sale of New Interests shall take all such other actions as
may be reasonably necessary to consummate the purchase and sale including,
without limitation, entering into such additional agreements as may be necessary or
appropriate.
11.
TERMINATION OF PARTNERSHIP; LIQUIDATION AND DISTRIBUTION OF
ASSETS
11.1
Resignation of Limited Partners
Except as otherwise specifically permitted in this Agreement, a Limited Partner may not
resign or withdraw from the Partnership or any Series unless agreed to in writing by the
General Partner. The General Partner shall reflect any such resignation or withdrawal by
preparing an amendment to this Agreement, dated as of the date of such resignation or
withdrawal, and the resigning or withdrawing Limited Partner (or such Limited Partner's
successors-in-interest) shall have none of the powers of a Limited Partner hereunder and shall
only have such rights of an assignee of a limited partnership interest under the Act as are
consistent with the other terms and provisions of this Agreement and with no other rights under
this Agreement. The withdrawing Limited Partner shall not be entitled to the balance in such
Limited Partner's Capital Account on the date of such resignation or withdrawal. Any Limited
Partner resigning or withdrawing in contravention of this Clause 11.1 shall indemnify, defend
and hold harmless the Partnership, the General Partner and all other Limited Partners from and
against any losses, expenses, judgments, fines, settlements or damages suffered or incurred by
the Partnership or any Series or any such other Limited Partner arising out of or resulting from
such resignation or withdrawal.
11.2
Dissolution of Series
Any Series shall be dissolved and its affairs shall be wound up at any time upon (a) the
election of the General Partner, in its sole discretion, to dissolve the Series, provided that thirty
(30) days prior written notice of such decision has been given to the Limited Partners who hold
Interests in the Series or (b) the occurrence of any other event that would make it unlawful for
the business of such Series to be continued. At any time there are no Interests outstanding of
any Series previously established, the General Partner may terminate that Series and/or rescind
the establishment and designation thereof.
11.3
Dissolution of Partnership
(a)
The Partnership shall be dissolved, wound up and terminated as provided herein
upon the first to occur of the following:
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(b)
(i)
a decree of dissolution of the Court of Chancery of the State of Delaware
pursuant to Section 17-802 of the Act;
(ii)
the determination of the General Partner to dissolve the Partnership; or
(iii)
the occurrence of any other event that would make it unlawful for the business
of the Partnership to be continued.
Except as required by the Act, the Limited Partners shall have no power to dissolve
the Partnership.
For purposes of this Agreement, all references to the dissolution or liquidation of the
Partnership shall mean the dissolution or liquidation of each Series. Except as
otherwise required by Delaware law, the Limited Partners shall have no power to
dissolve the Partnership or any Series without the consent of the General Partner.
In the event of the dissolution of the Partnership for any reason, the General Partner
or a liquidating agent or committee appointed by the General Partner shall act as a
liquidating agent (the General Partner or such liquidating agent or committee, in
such capacity, is hereinafter referred to as the "Liquidator") and shall commence
to wind up the affairs of the Partnership or such Series and to liquidate the
Partnership or such Series' assets. The Limited Partners shall continue to share all
income, losses and distributions during the period of liquidation in accordance with
Clauses 4 (Allocation of Net Income and Net Loss) and 5 (Distributions). The
Liquidator shall have full right and unlimited discretion to determine the time,
manner and terms of any sale or sales of Partnership assets pursuant to such
liquidation, giving due regard to the activity and condition of the relevant market
and general financial and economic conditions.
(c)
The Liquidator shall have all of the rights and powers with respect to the assets and
liabilities of the Partnership in connection with the liquidation and termination of
the Partnership or any Series that the General Partner would have with respect to
the assets and liabilities of the Partnership or any Series during the term of the
Partnership or any Series, and the Liquidator is hereby expressly authorized and
empowered to execute any and all documents necessary or desirable to effectuate
the liquidation and termination of the Partnership or any Series and the transfer of
any Partnership or any Series' assets.
(d)
Notwithstanding the foregoing, a Liquidator which is not a Limited Partner shall
not be deemed a Limited Partner and shall not have any of the economic interests
in the Partnership or any Series of a Limited Partner; and such Liquidator shall be
compensated for its services to the Partnership and any Series at normal, customary
and competitive rates for its services to the Partnership and any Series, as
reasonably determined by the General Partner.
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11.4
Distribution in Liquidation
The Liquidator shall, as soon as practicable following the event giving rise to the
dissolution of the Partnership or a Series, wind up the affairs of the Partnership and each
Series or such Series, as applicable, and sell and/or distribute the assets of the Partnership
and each Series or such Series, as applicable. The assets of each Series being wound up
shall be applied in the following order of priority:
(a)
(b)
first, to pay the costs and expenses of the winding up, liquidation and termination
of such Series;
second, to establish reserves reasonably adequate to meet any and all contingent or
unforeseen liabilities or obligations of such Series; provided, however, that at the
expiration of such period of time as the Liquidator may deem advisable, the balance of
such reserves remaining after the payment of such contingencies or liabilities shall be
distributed as hereinafter provided; and
(c)
third, to the Limited Partners for loans, if any, made by them to such Series;
(d)
fourth, to the General Partner (and/or to such other party set forth in the Series
Addendum), the Carried Interest of each Limited Partner of such Series; and
(e)
fifth, the remainder to the Limited Partners in proportion to the balance in their Capital
Accounts.
If the Liquidator, in its sole discretion, determines that assets of any Series other than cash
are to be distributed, then the Liquidator shall cause the Value of the assets not so liquidated
to be determined (with any such determination normally made by the General Partner in
accordance with the definition of "Value" being made instead by the Liquidator). Such
assets shall be retained or distributed by the Liquidator as follows:
(i)
the Liquidator shall retain assets having a value, net of any liability related
thereto, equal to the amount by which the cash net proceeds of liquidated
assets are insufficient to satisfy the requirements of paragraphs (a), (b), and
(c) of this Clause 11.3; and
(ii)
the remaining assets shall be distributed to the Limited Partners of such
Series in the manner specified in paragraph (d) of this Clause 11.3.
If the Liquidator, in its sole discretion, deems it not feasible or desirable to distribute to
each Limited Partner of such Series its allocable share of each asset of such Series, the
Liquidator may allocate and distribute specific assets to one or more Limited Partners as
the Liquidator shall reasonably determine to be fair and equitable, taking into
consideration, inter alia, the Value of such assets and the tax consequences of the proposed
distribution upon each of the Limited Partners (including both distributees and others, if
any). Any distributions in-kind shall be subject to such conditions relating to the disposition
and management thereof as the Liquidator deems reasonable and equitable.
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11.5
Final Reports
Within a reasonable time following the completion of the liquidation of the Partnership's
or any Series' assets, the Liquidator shall deliver to each Limited Partner a statement which
shall set forth the assets and liabilities of each of the Series as of the date of complete
liquidation and each Limited Partner's portion of distributions pursuant to Clause 11.3.
11.6
Rights of Limited Partners
Each Limited Partner shall look solely to such Series' assets for all distributions with
respect to the Partnership and such Limited Partner's Capital Contribution (including return
thereof), and such Limited Partner's share of profits or losses thereon, and shall have no
recourse therefor (upon dissolution or otherwise) against any other Limited Partner or the
General Partner. No Limited Partner shall have any right to demand or receive property
other than cash upon dissolution and termination of any Series.
11.7
No Deficit Restoration Obligation
Notwithstanding any other provision of this Agreement to the contrary, upon liquidation
of a Limited Partner's Interest in the Partnership or any Series (whether or not in connection
with a liquidation of the Partnership or Series), no Limited Partner shall have any liability
to restore any deficit in its Capital Account. In addition, no allocation to any Limited
Partner of any loss, whether attributable to depreciation or otherwise, shall create any asset
of or obligation to the Partnership or such Series, even if such allocation reduces the Capital
Account of any Limited Partner or creates or increases a deficit in such Capital Account;
it is also the intent of the Limited Partners that no Limited Partner shall be obligated to pay
any such amount to or for the account of the Partnership or such Series or any creditor of
the Partnership or such Series. No creditor of the Partnership or such Series is intended as
a third-party beneficiary of this Agreement nor shall any such creditor have any rights
hereunder.
11.8
Termination
The Partnership or a Series, as applicable, shall terminate when all property owned by the
Partnership or such Series shall have been disposed of and the assets shall have been
distributed as provided in Clause 11.3. With respect to termination of the Partnership, the
Liquidator shall then execute and cause to be filed a certificate of cancellation of the
Partnership.
12.
NOTICES AND VOTING
12.1
Notices
All notices, demands or requests required or permitted under this Agreement must be in
writing, and shall be made by hand delivery, certified mail, overnight courier service or
facsimile:
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(i)
if to a Limited Partner, to the address, email or facsimile number set forth
in the books and records of the Partnership, or if published on iAngels
platform (www.iangels.co) and notice of such publication is otherwise
delivered to the Limited Partners of such Series; and
(ii)
if to the General Partner or the Partnership, to:
iAngels Crowd Ltd.
18 Rothschild Boulevard, Tel-Aviv
6688121 Israel
Email: legal @ iangels.co
but any party may designate a different address, email or facsimile number by a notice
similarly given to the Partnership. Any such notice or communication shall be deemed
given when delivered by hand or by email, if delivered on a Business Day, the next
Business Day after delivery by hand if delivered by hand on a day that is not a Business
Day; four Business Days after being deposited in the mail, postage prepaid, return receipt
requested, if mailed; on the next Business Day after being deposited for next day delivery
with Federal Express or a similar overnight courier; when receipt is acknowledged, if faxed
on a Business Day; and the next Business Day following the day on which receipt is
acknowledged if faxed on a day that is not a Business Day.
12.2
Voting
Any action requiring the affirmative vote of Limited Partners under this Agreement, unless
otherwise specified herein, may be taken by vote at a meeting or, in lieu thereof, by written
consent of Limited Partners holding the requisite Percentage Interest or, where expressly
required by this Agreement or by applicable law, by all of the Limited Partners.
13.
AMENDMENT OF AGREEMENT
13.1
Amendments
Amendments to this Agreement which do not adversely affect the right of any Limited
Partner in any material respect may be made by the General Partner without the consent of
any Limited Partner if those amendments are: (i) of an inconsequential nature (as
reasonably determined by the General Partner); (ii) for the purpose of admitting Substituted
Limited Partners or Additional Limited Partners as permitted by this Agreement to any
Series; (iii) necessary to maintain the Partnership's or any Series' status as a partnership
according to Section 7701(a)(2) of the Code that is not a "publicly traded partnership"
pursuant to Section 7704 of the Code; (iv) necessary to preserve the validity of any and all
allocations of income, gain, loss or deduction pursuant to Section 704(b) of the Code;(v)
to establish and designate one or more Series, the Interests in each of which shall be
separate and distinct from the Interests in any other Series; or (vi) contemplated by this
Agreement. Amendments to this Agreement other than those described in the foregoing
sentence may be made only if embodied in an instrument signed by Limited Partners
holding a majority of the Interests of any Series directly affected by such amendment;
provided, however, that, unless otherwise specifically contemplated by this Agreement,
33
EFTA00803822
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
this Agreement shall not be amended in any manner that materially, adversely and
disproportionately affects the rights and obligations of one or more Limited Partners
relative to the rights and obligations of the other Limited Partners without the prior written
consent of each Limited Partner materially, adversely and disproportionately affected
thereby. The Partnership shall send to each Limited Partner a copy of any amendment to
this Agreement.
The Series Addendum standard form may be updated from time to time as is necessary to
reflect accurately the information contained therein, including, without limitation, the
establishment of additional Series and the admission of additional Limited Partners to such
Series. Any such revision to the Series Addendum standard form made in accordance with
this Agreement shall not be deemed an amendment to this Agreement for the purposes of
this Clause 13.
13.2
Amendment of Certificate
In the event that this Agreement shall be amended pursuant to this Clause 13, the General
Partner shall amend the Certificate to reflect such change if the General Partner deems such
amendment of the Certificate to be necessary or appropriate.
13.3
Power of Attorney
Each Limited Partner hereby irrevocably constitutes and appoints the General Partner as
its true and lawful attorney-in-fact, with full power of substitution, in its name, place and
stead to make, execute, sign, acknowledge (including swearing to), verify, deliver, record
and file, on its behalf, the following: (i) any amendment to this Agreement which complies
with the provisions of Clause 13.1 of this Agreement; and (ii) the Certificate and any
amendment thereof required because this Agreement is amended, including an amendment
to effectuate any change in the partnership of the Partnership or any Series or in the Capital
Contributions of the Limited Partners. This power-of-attorney is a special power-of-
attorney and is coupled with an interest in favor of the General Partner and, as such: (i)
shall be irrevocable and continue in full force and effect notwithstanding the subsequent
death or incapacity of any party granting this power-of-attorney, regardless of whether the
Partnership or the General Partner shall have had notice thereof; (ii) may be exercised for
a Limited Partner by facsimile signature of the General Partner or, after listing all of the
Limited Partners, including such Limited Partner, by a single signature of the General
Partner acting as attorney-in-fact for all of them; and (iii) shall survive the delivery of an
assignment by a Limited Partner of the whole or any portion of its Interest in any Series,
except that where the assignee thereof has been approved by the General Partner for
admission to the Partnership as a Substituted Limited Partner, this power-of-attorney given
by the assignor shall survive the delivery of such assignment for the sole purpose of
enabling the General Partner to execute, acknowledge, and file any instrument necessary
to effect such substitution.
34
EFTA00803823
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
(b)
14.
MISCELLANEOUS
14.1
Confidentiality
(a)
Each party hereto agrees that, except with the prior written consent of the General
Partner, it shall at all times keep confidential and not divulge, furnish or make
accessible to anyone any confidential information, knowledge or data concerning
or relating to the business or financial affairs of the Portfolio Companies (whether
or not the Partnership has invested in any such Portfolio Company) or the
Partnership to which such party has been or shall become privy by reason of this
Agreement, discussions or negotiations relating to this Agreement or the
relationship of the parties contemplated hereby; provided, however, that
confidential information may be disclosed to a party's directors, partners, officers,
employees, advisors, financing sources or representatives (provided that (1) such
directors, partners, officers, employees, advisors, financing sources or
representatives of any party will be informed by such party of the confidential
nature of such information and shall be directed by such party to keep such
information confidential in accordance with the contents of this Agreement and (2)
each party will be liable for any breaches of this Clause 14.1 by any of its directors,
partners, officers, employees, advisors, financing sources or representatives). The
confidentiality obligations of this Clause 14.1 do not apply to any information,
knowledge or data (i) which is publicly available or becomes publicly available
through no act or omission of the party wishing to disclose the information,
knowledge or data; or (ii) to the extent that it is required to be disclosed by any
applicable law, regulation or legal process or by the rules of any stock exchange,
regulatory body or governmental authority. The provisions of this Clause 14.1 shall
survive termination of this Agreement.
Notwithstanding anything herein to the contrary, the Partnership, the General
Partner and Limited Partners and each employee, representative or other agent of
those Persons, may disclose to any and all Persons, without limitation of any kind,
the U.S. tax treatment and tax structure of the transactions contemplated by this
Agreement and all materials of any kind, including opinions or other tax analyses,
that are provided to those Persons. This authorization to disclose the U.S. tax
treatment and tax structure does not permit disclosure of information identifying
the Partnership, the General Partner, the Portfolio Companies, or any other party to
the transactions contemplated by this Agreement (except to the extent such
information is relevant to U.S. tax structure or tax treatment of such transactions).
14.2
Anti-Money Laundering.
(a)
Each Limited Partner hereby represents and covenants to ensure that:
(i)
none of the monies that such Limited Partner will contribute to the
Partnership shall be derived from, or related to, any activity that is deemed
criminal under Israeli law, United States law or the law of the jurisdiction
in which such activity took place; and
35
EFTA00803824
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
(ii)
no contribution or payment by such Limited Partner to the Partnership, to
the extent that such contribution or payment is within such Limited Partner's
control, and no distribution to such Limited Partner (assuming such
distribution is made in accordance with instructions provided to the General
Partner by such Limited Partner) shall cause the Partnership, the General
Partner or any of their respective affiliates to be in violation of the [United
States Bank Secrecy Act, the United States Money Laundering Control Act
of 1986, the United States International Money Laundering Abatement and
Anti-Terrorist Financing Act of 2001, the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, the Anti Money Laundering Law 2000 of
the State of Israel, or any other anti-money laundering, bank secrecy or
other similar laws or regulations of the United States, Israel or of any other
applicable jurisdiction, in each case as amended and any successor statute
thereto and including all regulations promulgated thereunder (collectively,
the "Anti-Money Laundering Laws").
(b)
Each Limited Partner:
shall promptly notify the General Partner if, to the knowledge of such
Limited Partner, there has been any violation of Section 14.2(a);
(ii)
shall provide the General Partner, promptly upon receipt of the General
Partner's written request therefor, with any additional information regarding
such Limited Partner or its beneficial owner(s) that the General Partner, at
its sole discretion, reasonably deems necessary or advisable in order to
ensure compliance with the Anti-Money Laundering Laws and all
applicable laws, regulations and administrative pronouncements concerning
money laundering and other criminal activities; and
(iii)
understands and agrees that if, at any time, the requirements of this section
14.2 are not satisfied, or if otherwise required by any Anti-Money
Laundering Laws or any applicable law or regulation related to anti money
laundering or other criminal activities, the General Partner may take
appropriate actions to ensure that the Partnership and the General Partner
are in compliance with all such applicable laws, regulations and
pronouncements.
(c)
Each Limited Partner acknowledges and agrees that:
the Partnership or the General Partner may release confidential information
regarding such Limited Partner and, if applicable, any of its beneficial
owners, to governmental authorities if the General Partner if the General
Partner is legally obligated to or, in its sole discretion, determines that
releasing such information is in the best interest of the Partnership in light
of any regulations or administrative pronouncements promulgated under all
applicable laws; and
36
EFTA00803825
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
(ii)
the General Partner, without the consent of any Limited Partner and
notwithstanding any other provision of this Agreement, may amend any
provision of this Agreement in order to effectuate the intent of this Section
14.2.
14.3
Entire Agreement
This Agreement constitutes the entire agreement among the parties with respect to the
subject matter hereof. It supersedes any prior agreement or understandings among them
with respect to the subject matter hereof, and it may not be modified or amended in any
manner other than as set forth herein.
14.4
Governing Law; Venue
This Agreement and the rights of the parties hereunder shall be governed by and interpreted
in accordance with the law of the State of Delaware. Unless the General Partner consents
in writing to the selection of an alternative forum, the Court of Chancery in the State of
Delaware shall be the sole and exclusive forum for any Limited Partner (including an
assignee of a Limited Partner's Interest) to bring (i) any derivative action or proceeding
brought on behalf of the Partnership, (ii) any action asserting a claim of breach of fiduciary
duty owed by the General Partner, officer or other employee of the Partnership to the
Partnership or the Limited Partners, (iii) any action asserting a claim against the
Partnership, the General Partner, or the Partnership's officers or employees arising
pursuant to any provision of the Delaware Act or this Agreement or (iv) any action
asserting a claim against any General Partner or the Partnership, its officers or employees
governed by the internal affairs doctrine, except for, as to each of (i) through (iv) above,
any claim (a) as to which the Court of Chancery determines that there is an indispensable
party not subject to the jurisdiction of the Court of Chancery (and the indispensable party
does not consent to the personal jurisdiction of the Court of Chancery within ten days
following such determination), (b) which is vested in the exclusive jurisdiction of a court
or forum other than the Court of Chancery, or (c) for which the Court of Chancery does
not have subject matter jurisdiction. If any provision or provisions of this paragraph shall
be held to be invalid, illegal or unenforceable as applied to any person or entity or
circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the
validity, legality and enforceability of such provisions in any other circumstance and of the
remaining provisions of this paragraph (including, without limitation, each portion of any
sentence of this paragraph containing any such provision held to be invalid, illegal or
unenforceable that is not itself held to be invalid, illegal or unenforceable) and the
application of such provision to other persons or entities and circumstances shall not in any
way be affected or impaired thereby.
14.5
Severability
If any term or other provision of this Agreement is invalid, illegal or incapable of being
enforced as a result of any rule of law or public policy, all other terms and other provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic
or legal substance of the transactions contemplated by this Agreement is not affected in
37
EFTA00803826
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
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 to the end that the transactions
contemplated by this Agreement are fulfilled to the greatest extent possible.
14.6
Effect
Except as herein otherwise specifically provided, this Agreement shall be binding upon
and inure to the benefit of the parties and their legal representatives, successors and
permitted assigns.
14.7
Captions
Captions contained in this Agreement are inserted only as a matter of convenience and in
no way define, limit or extend the scope or intent of this Agreement or any provision hereof.
14.8
Counterparts
This Agreement may contain more than one counterpart of the signature page and this
Agreement may be executed by the affixing of the signatures of each of the Limited
Partners to one of such counterpart signature pages. All of such counterpart signatures
pages shall be read as though one, and they shall have the same force and effect as though
all of the signers had signed a single signature page.
14.9
Waiver of Partition
The Limited Partners hereby agree that the Partnership assets are not and will not be
suitable for partition. Accordingly, each of the Limited Partners hereby irrevocably waives
any and all rights (if any) that such Limited Partner may have to maintain any action for
partition of any of such assets.
14.10 Waiver of Trial by Jury
TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTER-CLAIM, ARISING OUT OF OR IN CONNECTION WITH
THIS AGREEMENT OR ANY MATTER ARISING HEREUNDER.
(Balance of page intentionally left blank)
38
EFTA00803827
DocuSign Envelope ID: 2D7I46FF-2840-4036-8D0A-07ED9F769640
IN WITNESS WHEREOF, the parties hereto have executed this Limited
Partnership Agreement as of the date first-above stated.
GENERAL PARTNER:
iAngels Crowd Ltd.
Name: Shelly Hod Moyal & Mor Assia,
founding partners
INITIAL LIMITED PARTNERS:
Shelly Hod Moyal
Atiken"
Mor Assia
EFTA00803828
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
SERIES ADDENDUM
IANGELS TECHNOLOGIES, L.P.
SERIES BITMAIN TECHNOLOGIES HOLDING COMPANY PREFERRED B+
THIS SERIES ADDENDUM, effective as of
(this "Series
Addendum"), is entered into by (i) iAngels Crowd Ltd., as general partner (the "Series General
Partner") associated with the New Series, (ii) the parties listed on Schedule A attached hereto, as
additional general partners associated with the New Series (the "Additional Series General
Partners"), and (iii) the parties executing this Series Addendum as limited partners (the "Series
Limited Partners"), of a newly created Series of iAngels Technologies, L.P., a Delaware series
limited partnership (the "Partnership"), pursuant to its Amended and Restated Limited
Partnership Agreement, dated as of September 1, 2016 (as amended from time to time, the
"Limited Partnership Agreement"). Capitalized terms used and not otherwise defined herein
shall have the meanings set forth in the Limited Partnership Agreement.
RECITALS
WHEREAS, the Partnership was formed on July 14, 2016 as a limited partnership
pursuant to the Act by filing the Certificate of Limited Partnership with the office of the Secretary
of State of the State of Delaware;
WHEREAS, it is intended that the Partnership create from time to time new Series
pursuant to Section 17-218 of the Act, and that the books and records and assets of such newly
created Series shall be separate and distinct from the Partnership or any other Series of the
Partnership, and that any debts, liabilities, obligations and expenses incurred, contracted for or
otherwise existing with respect to the newly created Series will be enforceable against the assets
of such newly created Series only, and not against the assets of the Partnership generally, any
general partner not associated with such Series, or any other Series.
NOW THEREFORE, in consideration of the mutual promises and obligations
contained herein, the parties, intending to be legally bound, hereby agree as follows:
1.
New Series and Purpose. In accordance with Clause 1.7 of the Limited Partnership
Agreement, a new Series (the "New Series") is hereby created, which shall be a "Series" for
purposes of the Limited Partnership Agreement. The purpose of the New Series shall be limited
to transacting any and all lawful business for which a limited partnership may be formed under the
Act, and, in particular, investing in, holding, selling and otherwise dealing in Securities of Portfolio
Companies.
2.
Name of New Series. The name of the New Series created by this Series Addendum
shall be listed on Schedule A.
3.
Assets of New Series. The assets of the New Series (the "Series Assets") shall be
such interests in the Portfolio Company as more specifically described in Exhibit A attached hereto
(the "Portfolio Interest"). The Series Assets shall be held for the benefit of the Series Limited
Partners, in their capacity as limited partners of the New Series, and shall irrevocably belong to
the New Series for all purposes, subject only to the rights of creditors of the New Series. The
EFTA00803829
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
Series Assets shall be so recorded upon the books of account of the Partnership and shall be held
and accounted for separately from the assets of each other Series and the assets of the Partnership
as provided in Article 17-218(b) of the Act.
4.
General Partner. The Series General Partner shall serve as the "general partner"
associated with the New Series, until such time as its successor is elected. Each Additional Series
General Partner, if any, shall have such duties and obligations with respect to the New Series, and
such rights and interests in the New Series and/or the Series Assets, as set forth on Schedule A
attached hereto.
5.
Initial Series Limited Partners, Contributions and Units. The Series Limited
Partners shall be the initial limited partners of the New Series, and the initial Capital Contributions,
Capital Account Percentages and units of each Series Limited Partner shall be as set forth on the
signature page of this Series Addendum executed by such Limited Partner. Such units represent
interests only in the New Series and not in the Partnership or any other Series. The Series Limited
Partners shall be partners of the New Series only and shall not be partners of any other Series or
of the Partnership. Notwithstanding anything set forth herein, no Series Limited Partner shall
become a partner of the New Series until such Series Limited Partner executes this Series
Addendum, the Limited Partnership Agreement and the Subscription Documents.
6.
Allocation of Net Income and Net Losses. Except as provided in Clause 4 of the
Limited Partnership Agreement, the Net Income or Net Loss with respect to the New Series, and
each item of income, gain, loss and deduction entering into the computation thereof for each
Accounting Period, shall be allocated among the Partners in such proportions and in such amounts
as may be necessary so that following such allocations, if the Series were dissolved, its affairs
wound up and its assets distributed to the Partners in accordance with their respective Capital
Account balances immediately after making such allocation, such distributions would, as nearly
as possible, be equal to the distributions that would be made pursuant to Clauses 7, 8 and 9.
7.
Distributions. Distributions shall be made in such amounts and at such times as
may be determined by the General Partner in accordance with the terms of the Limited Partnership
Agreement.
8.
Transaction/Management Fee. The Transaction/Management Fee payable to the
Series General Partner shall be an amount set forth on Schedule A. The Transaction/Management
Fee shall be added to the Capital Contribution of each Series Limited Partner.
9.
Carried Interest. Concurrently with the distribution by the New Series of Exit
Proceeds to the Series Limited Partners, the Series General Partner (and/or to such other party
defined as Carried Interest Recipient in Schedule A) shall be entitled to receive payment distribution
(the "Carried Interest") in the amount equal to (A) the Relevant Percentage set forth on Schedule
A, of (B) (i) each Series Limited Partner's pro rata share of the Exit Proceeds, in excess of (ii) such
Series Limited Partner's Capital Contribution. A Series Limited Partner's right to receive the pro-
rata share of the Exit Proceeds is expressly conditioned on the concurrent (or prior) distribution to
the Series General Partner of the applicable Carried Interest.
10.
Additional Capital Contributions.
Except with respect to the initial Capital
Contributions and as otherwise provided for under the Act, no Series Limited Partner shall be
EFTA00803830
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
obligated to make any additional Capital Contributions to the New Series without such Series
Limited Partner's consent. In addition, no Series Limited Partner shall have a right to make any
additional Capital Contributions without the consent of the Series General Partner.
11.
Dissolution and Termination of the Series. The terms and provisions regarding
dissolution and termination of the New Series shall be as set forth in Clause 11.2 of the Limited
Partnership Agreement.
12.
Tax Matters Partner. The person set forth on Schedule A is hereby designated the
Tax Matters Partner (as defined in Section 6231(a)(7) of the Code) on behalf of the New Series.
13.
Reports to Limited Partners. Subject to any applicable confidentiality obligations,
the Series General Partner shall make available to the Series Limited Partners certain periodic
reports received by the Series General Partner from the Portfolio Company (which is generally
delivered by the Portfolio Company to all holders of interests of the class or series (as the case
may be) of the Portfolio Interest).
14.
Agreement to be Bound. Each of the Series Limited Partners agrees to be bound
by the terms and provisions of the Limited Partnership Agreement.
15.
Headings. The headings in this Series Addendum are included for convenience and
identification only and are in no way intended to describe, interpret, define or limit the scope,
extent, or intent of this Series Addendum or any provision hereof.
16.
Severability. The invalidity or unenforceability of any particular provision of this
Series Addendum shall not affect the other provisions hereof, and this Series Addendum shall be
construed in all respects as if such invalid or unenforceable provision was omitted.
17.
Integration.
This Series Addendum and the Limited Partnership Agreement
constitute the entire agreement among the parties hereto pertaining to the subject matter hereof
and supersede all prior agreements and understandings pertaining thereto.
18.
Counterparts.
This Series Addendum may be executed in any number of
counterparts with the same effect as if all parties had signed the same document. All counterparts
shall be construed together and shall constitute one instrument.
19.
Governing Law: Venue. This Series Addendum and the rights of the parties
hereunder shall be interpreted in accordance with the substantive laws of the State of Delaware,
and all rights and remedies shall be governed by such laws without regard to principles of conflict
of laws. Exclusive venue for any legal proceedings arising out of, or in connection with, this Series
Addendum or the Partnership Agreement shall be in the State Courts of the State of Delaware.
Service of process may be effected by certified or registered mail.
(Balance of page intentionally left blank)
EFTA00803831
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
IN WITNESS WHEREOF, the parties hereto have executed this Series Addendum as of
the date first-above stated.
GENERAL PARTNER:
iAngels Crowd Ltd.
By:
Name: Shelly Hod Moyal & Mor Assia
Title: Founding Partners
SERIES LIMITED PARTNER:
Blocktree Private Opportunities LLC - Series
Name:
Series Limited Partner
Capital Contribution
Capital Account
Percentages
Units
Blocktree Private opportuni t ifttisc ismixio B
As indicated on the
Partnership's
records and book
As indicated on the
Partnership's
records and book
ADDITIONAL SERIES GENERAL PARTNER: N/A
By:
Name:
Title:
EFTA00803832
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
SCHEDULE A
Name of Series
iAngels Technologies LP — BilMain Technologies Holding Company Preferred B+ Series
Additional
Series
General Partner
N/A
Additional
General
Partner Rights
N/A
Name
of
Portfolio
Company
BilMain Technologies Holding Company (the "Portfolio Company") incorporated under
the laws of the Cayman Islands
Transaction
/Management Fee
An amount equal to 10% of the Capital Contribution of each Series Limited Partner payable
upon investment
Relevant Percentage of
Carried Interest
20%
Carried Interest
Recipient
Series iAngels Management — iAngels Technologies LP
Tax Matters Partner
The General Partner
Securities Offered
Preferred B+ shares
Aggregate
Investment
Amount
Up to US$ 1,000,000,000
Price Per Share
Price per share reflecting a pre•money company valuation of US$ 14,000,000.000
Liquidation Preference
Ix participating liquidation preference, pan passu between preferred B and preferred B+
shares
EFTA00803833
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
SUBSCRIPTION FOR PARTNERSHIP INTEREST IN
SERIES BITMAIN TECHNOLOGIES HOLDING COMPANY PREFERRED B+ IANGELS
TECHNOLOGIES, L.P.
iAngels Crowd Ltd., General Partner
Series BitMain Technologies Holding Company Preferred B+, iAngels Technologies, L.P.
18 Rothschild Boulevard, Tel Aviv, Israel
Dear Madam/Sir:
1.
Subject to all the terms and conditions set forth herein, the undersigned
("Subscriber"), intending to be legally bound, hereby subscribes (the "Subscription") for and
agrees to purchase a series partnership interest (the "Series Interest") in Series BitMain
Technologies Holding Company Preferred B+ Series (the "New Series") of iAngels
Technologies, L.P., a Delaware limited partnership (the "Partnership") for the aggregate
Purchase Price set forth on the signature page below, effective upon acceptance of this
Subscription by you in your capacity as the general partner (the "General Partner") of the New
Series, and compliance by the undersigned with all the other terms and conditions hereof.
2.
Subscriber tenders herewith a check, draft or other form of immediately
available funds, payable to the Partnership, in the amount of the Purchase Price.
3.
The Series Interest will be represented by units (the "Units"). Each Unit
represents US$1.00 of investment in the New Series, and such percentage the aggregate
partnership interests of the New Series as indicated on the Partnership's records and book (the
"Initial Percentage Interest").
The General Partner may, in its sole discretion, accept
subscription for fractional Units.
4.
Subscriber acknowledges that this Subscription is irrevocable by Subscriber
but conditioned upon acceptance by the General Partner (evidenced only by the General Partner's
execution of this Subscription at the space provided below). As soon as practicable after the
acceptance hereof, the General Partner shall cause to be delivered to Subscriber a written statement
of the number of Units registered in the name of Subscriber and representing Subscriber's Series
Interest. Subscriber acknowledges that the Initial Percentage Interest is subject to dilutions,
adjustments and modifications from time to time pursuant to the terms of the Partnership
Governing Documents (defined below) in effect from time to time. Subscriber acknowledges that
the General Partner is currently in final negotiations regarding this investment in the Portfolio
Company. The terms set forth herein (including in Schedule A of the Addendum) are based on
advanced investments drafts negotiated between the parties. In the event that the investment in the
Portfolio Company described above does not close or includes any material adverse changes made
prior to closing, for any reason, then the General Partner shall so notify the Limited Partners. Such
Limited Partners shall have no claims against the General Partner with respect to such changes in
the investment, and will be entitled to (at their discretion): (i) if the investment closes at different
terms — decide to invest notwithstanding the different terms; (ii) receive back their respective
Capital Contributions that were already wired to the Fund; or (ii) deploy such Capital Contribution
by subscribing to other Series available for subscription.
EFTA00803834
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
5.
Subscriber understands that the General Partner has the unrestricted right to
accept or reject this Subscription in whole or in part. If this Subscription is rejected in whole, the
amount of money tendered by Subscriber will be returned to Subscriber without interest and
Subscriber will have no further obligations hereunder. In the event a portion of this Subscription
is rejected, the amount treated herein as the Purchase Price shall be appropriately adjusted and a
portion of the funds tendered representing the rejected portion will be returned to Subscriber
without interest. The amount for which this Subscription has been accepted will be noted on this
Subscription.
6.
Subscriber acknowledges receipt of (i) the Limited Partnership Agreement
of the Partnership (the "Partnership Agreement") and (ii) the Series Addendum establishing the
New Series (the "Addendum"; the Addendum along with the Partnership Agreement, as amended
from time to time in accordance with their respective terms, are referred to herein as the
"Partnership Governing Documents"). All initial capitalized terms used but not specifically
defined herein shall have their respective meanings in the Partnership Governing Documents.
7.
Subscriber further acknowledges that, notwithstanding anything to the
contrary set forth herein or in any other writing or statement delivered by or on behalf of the
Partnership, the acceptance by the General Partner (on behalf of the New Series) of the
Subscription, the issuance to Subscriber of Series Interest and the Units, and the admission of
Subscriber as a limited partner of the New Series (a "Series Limited Partner"), are expressly
conditioned upon (i) the prior execution and delivery by the Subscriber of the Addendum and the
documents reasonably required by the General Partner (including Know Your Client and
accreditation documents attached as Schedule A), and (ii) Subscriber's consent to be subject to all
of the terms and conditions of the Partnership Governing Documents. Without limiting the
foregoing, Subscriber acknowledges that the Series Interest represents limited partner interests in
the New Series only, and not in the Partnership itself or in any other series of the Partnership, and
upon the issuance of the Series Interest to Subscriber and admission of Subscriber as a Series
Limited Partner in accordance with the terms and conditions described herein, Subscriber shall be
admitted only as a Series Limited Partner of the New Series, but shall not be admitted as a limited
partner of, and shall have no interest whatsoever in, the Partnership itself, or any other series of
the Partnership.
8.
Subscriber acknowledges that the General Partner may accept subscriptions
for Series Interest and Units in the New Series from other purchasers (the "Other Subscribers"),
and that the aggregate proceeds of the Purchase Prices from Subscriber and all Other Subscribers,
less the aggregate applicable Transaction Fees, will be used by the New Series to purchase shares
(the "Portfolio Shares") of BitMain Technologies Holding Company (the "Portfolio
Company") pursuant to investment agreements between the Portfolio Company, the New Series
(or the Partnership on behalf of the New Series) and other parties (the "Investment Agreements").
The Investment Agreements are identified on Schedule A of the Addendum. Subscriber
acknowledges that Subscriber will have no rights or interest in the Portfolio Shares, the Portfolio
Company or the Investment Agreements, other than Subscriber's rights as a Series Limited Partner
of the New Series under the Partnership Governing Documents. Without limiting the foregoing,
Subscriber acknowledges that the New Series (and any authorized person acting on behalf of the
New Series) may agree to waive or amend any of the terms of the Investment Agreements without
Subscriber's consent, except to the extent otherwise expressly provided in the Partnership
Governing Documents.
EFTA00803835
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
(a)
Subscriber acknowledges that neither the General Partner, the
Partnership or the New Series, nor any of their respective affiliates, directors, managers, officers,
employees, shareholders, partners, members or representatives, has made, or is making, any
representation or warranty whatsoever to the Subscriber in connection with this Subscription or
the Investment Agreements, or in connection with the purchase by Subscriber of Series Interest or
the purchase by the New Series of Portfolio Shares. Without limiting the foregoing, the Subscriber
acknowledges that the Subscriber, together with the Subscriber's advisors, has made the
Subscriber's own investigation of the Partnership, the New Series, the Portfolio Company and
their respective businesses and is not relying on any implied warranties or upon any representation
or warranty whatsoever as to the prospects (financial or otherwise) or the viability or likelihood of
success of the business of the Partnership, the New Series, or the Portfolio Company, whether as
currently conducted, conducted after the closing of the transactions referenced herein, or described
in any materials provided to the Subscriber by (or on behalf of) the Partnership, the New Series or
the Portfolio Company, or any of their respective affiliates directors, officers, employees,
shareholders, partners, members or representatives or otherwise.
9.
Power of Attorney.
(a)
Subscriber hereby appoints the General Partner, and each person
from time to time serving as a member, director or officer of the general partner of the General
Partner (collectively, the "Attorneys"), and each acting singly with full power of substitution, as
the Subscriber's agent and attorney-in-fact, in its name, place and stead, to make, execute, sign,
acknowledge and deliver or file for and on behalf of the Subscriber, and in its name, place and
stead (i) the Partnership Agreement in the form provided to the Subscriber and/or any other
document required to admit the Subscriber as a Limited Partner, (ii) all instruments, documents
and certificates which may, from time to time, be required to obtain and maintain the effectiveness
of the Israeli Tax Ruling, including an acknowledgement addressed to the Israeli Tax Authority,
(iii) all instruments and documents in connection with the admission of a new or substitute limited
partner; (iv) any amendments to the Partnership Agreement approved in accordance with the terms
thereof; and (v) any other certificate, consent, or other instrument which may be required by law
to be filed by the Partnership or the partners thereof under the laws of any country, territory, state
or other jurisdiction, if the Attorney deems such filing necessary or desirable, in each case said
signature thereon on behalf of the Subscriber being conclusive evidence of the approval of the
Subscriber of the terms thereof.
(b)
The foregoing grant of authority (i) is granted to secure a proprietary
interest of the General Partner and obligations owed to the General Partner and as such shall be
irrevocable and shall survive the death or disability of a Limited Partner that is a natural person or
the merger, dissolution or other termination of the existence of a Limited Partner that is a
corporation, association, partnership, limited liability company or trust, and (ii) shall survive the
assignment by the Limited Partner of the whole or any portion of its Interest, except that where the
assignee of the whole thereof has furnished a power of attorney, this power of attorney shall
survive such assignment for the sole purpose of enabling the Attorneys to execute, acknowledge
and file any instrument necessary to effect any permitted admission of the assignee for the assignor
as a Limited Partner and shall thereafter terminate. The Subscriber hereby acknowledges that it
and each other Limited Partner has executed a power of attorney in similar terms, and that each
Limited Partner will rely on the effectiveness of such powers with a view to the orderly
administration of the Partnership's affairs
EFTA00803836
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
10.
Subscriber Representations and Warranties. Subscriber hereby represents,
warrants, acknowledges and/or agrees as follows:
(a)
Subscriber has the capacity and legal right to enter into and perform
this Subscription. Each of this Subscription, the Addendum and the Subscription Documents
constitutes the legal, valid and binding obligation of the Subscriber, enforceable against the
Subscriber in accordance with its respective terms.
(b)
Subscriber is acquiring the Series Interest without being furnished
any sales literature or prospectus concerning the Partnership, the New Series, the Portfolio
Company, or their respective finances or businesses.
(c)
Subscriber is acquiring the Series Interest solely for Subscriber's
own account for investment purposes and not with a view to resale or distribution of all or any part
thereof. Subscriber has no present arrangement, understanding or agreement for transferring or
disposing of all or any part of the Series Interest.
(d)
Subscriber is an "Accredited Investor" within the meaning of
Regulation D promulgated under the Securities Act of 1933, as amended (the "Securities Act").
Immediately prior to the purchase of the Series Interest, Subscriber has such knowledge and
experience in financial and business matters that Subscriber is capable of evaluating the merits and
risks of an investment in the Series Interest and to form an investment decision with respect thereto.
Subscriber has executed and delivered to the General Partner along with this Subscription Schedule
A attached hereto marked to indicate Subscriber's status as Accredited Investor.
(e)
Subscriber acknowledges the receipt of all documents, records,
books and diligence materials pertaining to this investment, the Partnership, the New Series and
the Portfolio Company, that is material to Subscriber's decision to purchase the Series Interest.
(0
Subscriber understands that the Series Interest is being offered and
sold in reliance on specific exemptions from the registration requirements of US Federal and state
law and that the Partnership, the New Series and the General Partner are relying upon the truth and
accuracy of the representations, warranties, agreements, acknowledgments and understandings set
forth herein in order to determine the applicability of such exemptions and the suitability of the
Subscriber to acquire the Series Interest.
(g)
Subscriber understands that (i) the Series Interest and the Units have
not been registered under the Securities Act or any state securities or "Blue Sky" laws pursuant to
exemptions therefrom, (ii) neither the Partnership nor the New Series has any obligation or
intention to register the Series Interest or the Units for resale under any federal or state securities
laws, or to take any action (including the filing of reports or the publication of information required
by Rule 144 under the Securities Act) which would make available any exemption from the
registration requirements of such laws, and (iii) it is likely that Subscriber, therefore, may be
precluded from selling or otherwise transferring or disposing of the Series Interest or any portion
thereof and may therefore have to bear the economic risk of investment in the Series Interest for
an indefinite period.
(h)
No broker or finder has acted for Subscriber in connection with
Subscriber's purchase of the Series Interest and no broker or finder is entitled to any broker's or
EFTA00803837
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
finder's fees or other commissions in connection therewith based on agreements between
Subscriber and any broker or finder.
(i)
Neither Subscriber nor, to the extent Subscriber has them, any of
Subscriber's shareholders, members, managers, general or limited partners, directors, affiliates or
executive officers, are subject to any of the "Bad Actor" disqualifications described in Rule
506(d)(1)(i) to (viii) under the Securities Act (a "Disqualification Event"), except for a
Disqualification Event covered by Rule 506(d)(2) or (d)(3). The purchase of the Series Interest by
Subscriber will not subject the Partnership or the New Series to any Disqualification Event.
11.
Subscriber further acknowledges and represents that:
(a)
No federal or state agency has passed on, has recommended or has
endorsed the merits of the Series Interest or the offering described herein.
(b)
Appropriate restrictive endorsement(s), such as set forth in Section
B hereof, will be placed upon any certificates representing Series Interest or Units subscribed to
hereby to reflect the foregoing and that the New Series (or the Partnership on behalf of the New
Series) will give appropriate stop transfer instructions to the person(%) in charge of the transfer of
its securities.
(c)
All tax forms provided by Subscriber in connection with this
Subscription and Subscriber's interest in the New Series are accurately completed and properly
executed and may be relied upon by the General Partner, the New Series and the Partnership and
their respective advisors, agents and affiliates.
12.
Reliance on Representations; Indemnification. Subscriber acknowledges
and agrees that that the General Partner, the New Series and the Partnership and their respective
counsels are relying upon the representations and warranties in this Subscription (collectively, the
"Investor Information"). Subscriber agrees to indemnify and hold harmless the General Partner,
the New Series and the Partnership, and their respective directors, officers, members,
representatives and agents, and any person who controls any of the foregoing, against any and all
loss, liability, claim, damage and expense (including reasonable attorneys' fees) arising out of or
based upon any misstatement or omission in the Investor Information or any inaccuracy in, or
failure by Subscriber to comply with, any statement, representation, covenant or agreement made
by Subscriber in the Investor Information.
13.
Legend. If the Series Interest and/or the Units are certificated, any
certificates issued to Subscriber representing Series Interest and/or the Units shall bear the
following or similar legend:
THE
SERIES
LIMITED
PARTNERSHIP
INTEREST
EVIDENCED BY THIS CERTIFICATE HAS BEEN ACQUIRED
FOR INVESTMENT AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
UNDER ANY STATE OR FEDERAL SECURITIES LAWS AND
MAY NOT BE SOLD, TRANSFERRED, OR ASSIGNED
EXCEPT:
(1)
PURSUANT
TO
THE
EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT; OR (2) IF, IN
EFTA00803838
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
THE OPINION OF COUNSEL FOR THE REGISTERED OWNER
HEREOF,
WHICH
OPINION
IS
REASONABLY
SATISFACTORY TO THE GENERAL PARTNER, THE
PROPOSED SALE, TRANSFER OR ASSIGNMENT MAY BE
EFFECTED WITHOUT SUCH REGISTRATION AND WILL
NOT BE IN VIOLATION OF APPLICABLE STATE AND/OR
FEDERAL SECURITIES LAWS.
14.
Tax Forms.
(a)
If Subscriber is a U.S. person (e.g., a U.S. citizen or resident, a
partnership organized under U.S. law, a corporation organized under U.S. law, a limited liability
company organized under U.S. law, or an estate or trust (other than a foreign estate or trust whose
income from sources without the U.S. is not includible in the beneficiaries' gross income)),
Subscriber will provide the Partnership with Subscriber's taxpayer identification number on a
signed IRS Form W-9. Such form is necessary for the Partnership (on behalf of itself and the New
Series) to comply with its U.S. tax filing obligations and to establish that Subscriber is not subject
to certain withholding tax obligations applicable to non-U.S. persons. The completed form should
be returned to the General Partner at the address indicated below. Do not send it to the IRS.
(b)
If Subscriber is not a U.S. person or resident aliens, Subscriber will
provide information about Subscriber's status for withholding purposes on Form W-8BEN or W-
8BEN-E (for foreign beneficial owners), Form W-8IMY (for foreign intermediaries, flow-through
entities, and certain U.S. branches), Form W-8EXP (for foreign governments, foreign central
banks of issue, foreign tax-exempt organizations, foreign private foundations, and governments of
certain U.S. possessions), or Form W-8ECI (for Non-U.S. Persons receiving income that is
effectively connected with the conduct of a trade or business in the U.S.).
(c)
Subscriber agrees that promptly (and in any event within ten
calendar days) after receipt of a request from the General Partner, Subscriber shall provide such
additional information and deliver such additional documents as shall be reasonably necessary to
comply with any federal, state, local or non-U.S. securities, tax or anti-money laundering laws,
rules or regulations to which the Partnership or the New Series are subject. Without limiting the
generality of the foregoing, Subscriber hereby agrees to deliver to the General Partner, prior to the
issuance to Subscriber of the Series Interest or admission of Subscriber as Series Limited Partner,
any applicable withholding tax forms and/or certificates requested by the General Partner.
15.
Publicly Traded Partnership. The following representations are included
with the intention of enabling the Partnership and the New Series to qualify for the benefit of a
"safe harbor" under certain regulations from treatment as an entity subject to corporate income tax.
Either:
(a)
Subscriber is not a partnership, grantor trust, or Subchapter S
corporation for U.S. federal income tax purposes, or
(b)
Subscriber is a partnership, grantor trust, or Subchapter S
corporation, but (i) as of the date hereof, substantially all, within the meaning of Treasury
Regulation §1.7704-1(h)(3)(i), of the value of any beneficial owner's direct or indirect interest in
EFTA00803839
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
the Subscriber is not attributable to the Subscriber's interests in the Partnership, (ii) as of the date
hereof, less than substantially all, within the meaning of Treasury Regulation §1.7704-1(h)(3)(i),
of the value of the Subscriber is attributable to the Subscriber's interests in the Partnership, and
(iii) permitting the Partnership to satisfy the 100-partner limitation set forth in Section 1.7704-
1(h)(1)(ii) of the Treasury Regulations is not a principal purpose of any beneficial owner of
Subscriber in investing in the New Series through Subscriber.
If Subscriber is unable to make either of such representations, Subscriber hereby agrees to provide
the General Partner, prior to the issuance of Series Interest to Subscriber or Subscriber's admission
as Series Limited Partner, with evidence (including opinions of counsel) satisfactory in form and
substance to the General Partner relating to the status of the Partnership and the New Series under
Section 7704 of the Code. Subscriber further agrees to notify the General Partner should either of
the representations in subsections 8(a) or (b) no longer remain true.
16.
FATCA
Compliance/Reliance:
Additional
Information/FATCA
Withholding. Subscriber understands and agrees that:_the representations, warranties, agreements,
understandings and acknowledgements made by Subscriber in this Subscription and any tax forms
provided in connection with this Subscription, are made with the intent that they are relied upon
by the General Partner, the Partnership, the New Series and their respective affiliates in
determining Subscriber's suitability as a purchaser of Series Interest; and
(b)
the General Partner may request from Subscriber such additional
information as it may deem necessary or appropriate to evaluate the eligibility of Subscriber to
acquire the Series Interest, and may request from time to time such information as the General
Partner may deem appropriate to determine a Subscriber's suitability to hold Series Interest, or to
enable the General Partner to determine the Partnership's and the New Series' compliance with
applicable regulatory requirements, or pre-determine or verify tax status, to fulfill any tax
withholding or other obligation relating to Subscriber, including but not limited to, any
documentation necessary or reasonably requested to establish Subscriber's eligibility for benefits
under any applicable tax treaty or to establish Subscriber's compliance with Section 1471 through
Section 1474 of the Code ("FATCA"), or for any other reasonable purpose relating to the
Partnership or the New Series, and Subscriber shall provide such information promptly as may be
so requested. Subscriber undertakes to promptly notify the General Partner in writing if (i) the US
Internal Revenue Service terminates any agreement entered into with Subscriber relating to
withholding, or (ii) there is any change in any information provided to the General Partner pursuant
to this Section 16.
(c)
Subscriber acknowledges that the General Partner and the New
Series are obligated to withhold on all payments made by the New Series to Subscriber unless and
until the General Partner, the Partnership and the New Series (as appropriate) are satisfied that
Subscriber has fully complied with the requirements under FATCA, as applicable to Subscriber.
The General Partner shall reasonably cooperate (at Subscriber's cost) with Subscriber in obtaining
a refund of amounts withheld pursuant to this clause, to the extent such refund may be available
to Subscriber.
17.
Miscellaneous.
(a)
Entire Agreement; Governing Law. This Subscription supersedes
EFTA00803840
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
any prior understanding and/or written or oral agreements between Subscriber, on the one hand,
and either the General Partner, the Partnership or the New Series on the other hand, with respect
to the subject matters hereof. This Subscription shall be governed by the laws of the State of
Delaware, without regard to the principles of conflicts of laws of Delaware or any other
jurisdiction. Exclusive venue for resolution of any dispute arising under or related to this
Subscription shall be in the state courts of the State of Delaware, and Subscriber hereby consents
to the exclusive personal jurisdiction of such courts of the State of Delaware. Service of process
may be effected by certified or registered mail, or by Federal Express or other similar commercial
courier.
(b)
Severability. In case any provision of this Subscription shall be
invalid, illegal, or unenforceable, it shall to the extent practicable be modified so as to make it
valid, legal and enforceable and to retain as nearly as practicable the intent of the parties, and the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.
(Balance of page intentionally left blank)
EFTA00803841
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
Subscriber hereby subscribes to purchase Series Interest, subject to all the terms
and conditions of this Subscription, for the aggregate sum of US$
$500,000
(the
"Purchase Price").
IN WITNESS WHEREOF, Subscriber has executed this Subscription, intending to
irrevocably legally bind Subscriber and the personal representatives, successors and assigns of
Subscriber on
Name of Investor
elocktree Private opportunities LLC - Series B
The General Partner hereby accepts the foregoing Subscription:
Series BitMain Technologies Holding Company Preferred B+ of iAngels Technologies, LP
--'1d *
e/ A rin
By: iAngels Crowd Ltd., Series General Partner
EFTA00803842
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
SCHEDULE A
ACCREDITED INVESTOR
As used in Rule 501 of Regulation D under the Securities Act of 1933, any
individuaUentity falling into one of the following categories is an "accredited investor" (check all
applicable boxes):
❑:
A natural person whose individual net worth, or joint net worth with that
person's spouse, at the time of his purchase exceeds $1,000,000.
K
A natural person who had an individual income in excess of $200,000 in
each of the two most recent years or joint income with that person's spouse in excess of $300,000
in each of those years and who has a reasonable expectation of reaching the same level of income
in the current year.
K :
A trust with total assets in excess of $5,000,000, not formed for the specific
purpose of making this investment, whose purchase is directed by a person with such knowledge
and experience in financial and business matters that he is capable of evaluating the merits and
risks of this investment.
K :
A corporation, partnership, Massachusetts or similar business trust or a tax
exempt organization as defined in Section 501(c)(3) of the Internal Revenue Code, not formed for
the specific purpose of acquiring this investment, with total assets in excess of $5,000,000.
0:
A bank or a savings and loan association or other institution defined in
Section 3(a)(5)(A) of the Securities Act of 1933, whether acting in its individual or fiduciary
capacity.
❑:
An insurance company.
0 :
An investment company registered under the Investment Company Act of
1940 or a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of
1934.
❑:
A business development company as defined in the Investment Company
Act of 1940.
❑:
A private business development company as defined in the Investment
Advisers Act of 1940.
0:
A small business investment company licensed by the U.S. Small Business
Administration.
0:
A plan established and maintained by a state, its political subdivisions, or
any agency or instrumentality of a state or its political subdivisions, for the benefit of its
EFTA00803843
DocuSign Envelope ID: 2D7 46FF-2840-40a6-8DDA-07ED9F769640
employees, if such plan has total assets in excess of $5,000,000, or an employee benefit plan within
the meaning of the Employee Retirement Income Security Act of 1974 (ERISA), if (i) the
investment decision with respect to this investment is made by a plan fiduciary which is either a
bank, savings and loan association, insurance company, or registered investment adviser, or (ii)
the employee benefit plan has total assets in excess of $5,000,000 or (iii) the employee benefit
plan is a self-directed plan, and its investment decisions are made solely by persons that are
accredited investors.
K :
Any entity in which all of the equity owners are accredited investors.
THE UNDERSIGNED MEETS THE DEFINITION OF "ACCREDITED INVESTOR" SET
FORTH UNDER THE PARAGRAPHS INDICATED ABOVE.
Authorized Signature of Subscriber
EFTA00803844
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Domain
iangels.coDomain
www.iangels.coPhone
6688121Phone
840-4036SWIFT/BIC
ASSIGNEDSWIFT/BIC
EFFECTEDSWIFT/BIC
LIQUIDATIONSWIFT/BIC
PROPOSEDSWIFT/BIC
TERMINATIONSWIFT/BIC
TRANSFERREDWire Ref
referenceWire Ref
referencedWire Ref
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referringWire Ref
reflectedWire Ref
reflectingWire Ref
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