Yes, Section 4.3 is really sloppy. The repeated subnumerals are only likely to be a problem if another part of the contract refers to 4.3(b)(ii), for example, and it is unclear what that refers to. But the subnumerals are in different sentences, which helps to distinguish them. I've seen a lot of contracts that use the same poor subnumeral approach. Usually you just add a new subsection or use (x),
, or (z) or something like that.
That section is also sloppy in how it refers to PP. (Say that sentence out loud!) Stuff like "any of PP" and "the respective member of PP" and "any of "PP's name." The language was originally intended for an LLC and then modified for PP.
I think there is an ethical rule about how you can and cannot use the threat of prosecution (i.e., going to the police). I also don't think this agreement was supposed to see the light of day, but was instead meant to dissuade Stormy, upon consulting with an attorney, from ever talking about anything.