IN THE CHANCERY COURT FOR MADISON COUNTY, TENNESSEE RICHARD REITZ and DHARMESH S. PATEL, M.D. individually and as derivative action plaintiffs, Plaintiffs, ve No, 74895 JEFFREY WALTER YOUNG, JR., and Baia PREVENTAGENIX LLC, Defendants. vy he JUDGMENT ‘This matter came before the Court on July 19, 2017, on for a hearing on damages after the entry by the Court of the Order Granting Plaintiffs’ Motion for Default Judgment Against Defendant Jefftey Walter Young, 1r..on July 6, 2017, on the Amended Complaint for Conversion, ‘e Enjoin and Recover Improper Distributions, to Set Aside Utta Vires Actions, for Breaches of Fiduciary Duty, to Require Access to Limited Liability Company Records, to Require Disbursement of Profits and Distributions, and for Withdrawal from or Dissolution of Limited ability Company and Payment of Fair Market Value of Membership Interest (the “Complaint”), fled by the plaintiffs, Mr. Richard Reite "Mr. Reitz”) and Dr. Dharmesh 8. Patel “Dr, Patel”), individually and as a derivative action on behalf of PreventaGenix, LLC (PreventaGenix”) against efendant Jeffrey Walter Young, Jr. (“Mr. Young”). Upon hearing and consideration of the ‘estimony of the witnesses who testifying at the damages hearing, the exhibits admited at the damages hearing, and the record in this case, the Court has made the findings of fac set forth in the Couns letter of November 8, 2017, attached hereto as Exhibit A. WHEREFORE, IT IS HEREBY ORDERED, ADJUDGED AND DECREED thet: |. PreventaGenix is granted a monetary judgment against Mr. Young in the amount of $208,747.77, being the total of $205,842.77 for expenditures for non-business, personalexpenses made by Mr. Young, the cash withdrawals from the business by Mr. Young, and the unauthorized increases to Mr, Young's salary, plus the $2,905.00 of funds of PreventaGenix which Mr. Young caused to be deposited in an account which Mr. Young opened as FirstBank as “Jeffrey Walter Young DBA PreventaGenix” on January 20, 2017, in violation of the Temporary Injunction entered by the Court on December 12, 2017, and which funds were later withdrawn by Mr. Young, Pursuant to Tenn, Code Ann, §§ 48-249-308(d), 403(d), 804(b), Mr. Reitz, individually, and Dr. Patel, individually, are granted a monetary judgment in the amount of $60,536.53 ‘against Mr. Young and PreventaGenix, LLC, jointly and severally, for their attorneys’ fees and expenses for bringing the present derivative action to recover the judgments against Mr. Young, and said judgment shall be paid first from any funds collected, prior to the Payment of the judgment in favor of PreventaGenix. Pursuant to Tenn. Code Ann. § 48-249-403, Mr. Reitz, individually, is pranted a monetary Judgment in the amount of $40,000.00 against Mr. Young for the loss of the fair market value of his one-third membership interest in PreventaGenix, and Dr. Patel, individually, 'S granted a monetary judgment in the amount of $40,000.00 against Mr. Young for the Joss of the fair market value of his one-third membership interest in PreventaGenix, Funds paid or collected shall be applied to these judgments in favor of Mr. Reitz and Dr. Patel Prior to application to the judgment in favor of PreventaGenix. Mr. Young is ordered to retum all property (other than patient records, which the Court ordered delivered to Mr. Young) removed from PreventaGenix’s clinic, including but not limited to any items purchased, leased, or obtained from Masterfit Medical Supplies, to the Possession of Mr. Reitz, and Dr. Patel,5. Mr. Young is ordered not to conduct any further business in the name of PreventaGenix and not to use PreventaGenix’s employer identification number or National Provider Identifier number, 6. The Court affirms that, in accordance with Tenn, Code Ann, §§ 48-249-401 & 405, any ‘two of the three members of PreventaGenix may, by vote or written resolution signed by {wo of the three members, direct business of PreventaGenix, including paying debts, settling claims, consenting to judgments, and ordering distributions, 7. Mr. Reitz end Dr. Patel, each heing an owner of one-third of the membership interests of PreventaGenix, are each entitled to one-third of any distribution of assets of PreventaGenix. Until the payment in full of all judgments owed by Mr. Young to PreventaGenix, Mr. Reitz, and/or Dr, Patel, Mr. Young shall not share in any distributions of assets of PreventaGenix and instead shall receive a credit against the judgment(s) in favor of PreventaGenix, PreventaGenix shall maintain records of all funds paid or collected on its judgments against Mr. Young and the application of said funds to debts of PreventaGenix or distributions to the members of PreventaGenix; and 8. ‘The present lawsuit does not address any claims for contribution against Mr. Young by Mr Reitz and Dr. Patel should the members of PreventaGenix be found individually liable for any debts or obligations of PreventaGenix in any lawsuit, administrative proceeding, or tax assessment filed, brought, or made after the date of the filing of the original complaint in this lawsuit, and this lawsuit shall not bar any future lawsuit against Mr. Young for contribution on such claims.