Document:

Exhibit 10.2

 

 

 

Exhibit A to Joint Venture Agreement

 

 

LIMITED LIABILITY COMPANY
OPERATING AGREEMENT

 

among

 

BOX HARMONY, LLC

 

and

 

THE MEMBERS NAMED HEREIN

 

 

dated
as of

 

January 13, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

 

 

	TABLE OF CONTENTS
	 
	ARTICLE I Definitions	1
	 	 
	ARTICLE II Organization	11
	 	 
	ARTICLE III Capital Contributions; Capital Accounts	14
	 	 
	ARTICLE IV Members	16
	 	 
	ARTICLE V Allocations	19
	 	 
	ARTICLE VI Distributions and Covenants of TPA	21
	 	 
	ARTICLE VII Management	24
	 	 
	ARTICLE VIII Transfer	26
	 	 
	ARTICLE IX Indemnification	28
	 	 
	ARTICLE X Accounting: Tax Matters	31
	 	 
	ARTICLE XI Dissolution and Liquidation	34
	 	 
	ARTICLE XII Miscellaneous	36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	i	 

     

    

 

LIMITED LIABILITY COMPANY
OPERATING AGREEMENT

 

 

This Limited Liability
Operating Agreement (“Agreement”) of Box Harmony, LLC a Nevada limited liability company (the “Company”),
is entered into as of January 13, 2022 (the “Effective
Date”) by and among the Company, iPower Inc., a Nevada corporation (“IPW”), Titanium Plus Autoparts,
Inc., a [California] corporation (“TPA”) and Bin Xiao, an individual (“Xiao”) and each
other Person who after the date hereof becomes a Member of the Company and becomes a party to this Agreement by executing a Joinder Agreement.

 

RECITALS

 

WHEREAS, the Company
was formed as a limited liability company under the laws of the State of Nevada, for the purposes set forth in Section 2.05 of this Agreement,
when the Company's articles of organization (the “Articles of Organization”) were filed by the Nevada Secretary of
State on December [30], 2021;

 

WHEREAS, the Company
and the Initial Members entered into a joint venture agreement, dated as of January , 2022 (the “Joint Venture Agreement”);
and

 

WHEREAS, the Company
and IPW entered into facility and use access agreement, dated of even date herewith and in the form of Exhibit B annexed to the
Joint Venture Agreement (the “Facility and Use Access Agreement”) and

 

WHEREAS, the Company
and TPA entered into a consulting agreement, dated of even date herewith and in the form of Exhibit C annexed to the Joint Venture
Agreement (the “Consulting Agreement”); and

 

WHEREAS, the Company
and TPA entered into an intellectual property license agreement, dated of even date herewith and in the form of Exhibit D annexed
to the Joint Venture Agreement (the “TPA License Agreement”); and

 

WHEREAS, the parties
wish to enter into this Agreement setting forth the terms and conditions governing the operation and management of the Company and the
other matters set forth herein.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

Definitions

 

Section 1.01 Definitions.
Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in this Section 1.01 and when
not otherwise defined shall have the meanings set forth in NRS:

 

“Acceptance Notice”
has the meaning set forth with this Agreement.

 

“Additional Capital
Contribution” has the meaning set forth in Section 3.02.

 

 

 

    	 	1	 

     

    

 

“Adjusted Capital
Account Deficit” means, with respect to any Member, the deficit balance, if any, in such Member's Capital Account as of the
end of the relevant Fiscal Year, after giving effect to the following adjustments:

 

		(a)	crediting to such
                                            Capital Account any amount that such Member is obligated to restore or is deemed to be obligated
                                            to restore under Treasury Regulations Sections 1.704-1(b)(2)(ii)(c), 1.704-2(g)(1), and 1.704-2(i);
                                            and

 

		(b)	debiting to such
                                            Capital Account the items described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4)-(6).

 

“Adjusted Taxable
Income” of a Member for a Fiscal Year (or portion thereof) with respect to the Membership Interest held by such Member means
the federal taxable income allocated by the Company to the Member with respect to its Membership Interest (as adjusted by any final determination
in connection with any tax audit or other proceeding) for such Fiscal Year (or portion thereof); provided, that such taxable income shall
be computed (a) minus any excess taxable loss or excess taxable credits of the Company for any prior period allocable to such Member
with respect to its Membership Interest that were not previously taken into account for purposes of determining such Member's Adjusted
Taxable Income in a prior Fiscal Year to the extent such loss or credit would be available under the Code to offset income of the Member
(or, as appropriate, the direct or indirect owners of the Member) determined as if the income, loss, and credits from the Company were
the only income, loss, and credits of the Member (or, as appropriate, the direct or indirect owners of the Member) in such Fiscal Year
and all prior Fiscal Years, and (b) taking into account any special basis adjustment with respect to such Member resulting from an election
by the Company under Code Section 754.

 

“Affiliate”
means, with respect to any Person, any other Person who, directly or indirectly (including through one or more intermediaries), controls,
is controlled by, or is under common control with, such Person. For purposes of this definition, "control," when used with
respect to any specified Person, shall mean the power, direct or indirect, to direct or cause the direction of the management and policies
of such Person, whether through ownership of voting securities or partnership or other ownership interests, by contract or otherwise;
and the terms "controlling" and "controlled" shall have correlative meanings.

 

“Agreement”
means this Limited Liability Company Operating Agreement, as executed and as it may be amended, modified, supplemented, or restated
from time to time, as provided herein.

 

“Applicable Law”
means all applicable provisions of (a) constitutions, treaties, statutes, laws (including the common law), rules, regulations, decrees,
ordinances, codes, proclamations, declarations, or orders of any Governmental Authority, (b) any consents or approvals of any Governmental
Authority, and (c) any orders, decisions, advisory or interpretative opinions, injunctions, judgments, awards, decrees of, or agreements
with, any Governmental Authority.

 

“Articles of Organization”
has the meaning set forth in the Recitals.

 

“Book Depreciation”
means, with respect to any Company asset for each Fiscal Year, the Company's depreciation, amortization, or other cost recovery deductions
determined for federal income tax purposes, except that if the Book Value of an asset differs from its adjusted tax basis at the beginning
of such Fiscal Year, Book Depreciation shall be an amount which bears the same ratio to such beginning Book Value as the federal income
tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year bears to such beginning adjusted tax basis; provided,
that if the adjusted basis for federal income tax purposes of an asset at the beginning of such Fiscal Year is zero and the Book Value
of the asset is positive, Book Depreciation shall be determined with reference to such beginning Book Value using any permitted method
selected by the Members in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g)(3).

 

 

 

    	 	2	 

     

    

 

“Book Value”
means, with respect to any Company asset, the adjusted basis of such asset for federal income tax purposes, except as follows:

 

		(c)	the initial Book Value
                                            of any Company asset contributed by a Member to the Company shall be the gross Fair Market
                                            Value of such Company asset as of the date of such contribution;

 

		(d)	immediately before
                                            the distribution by the Company of any Company asset to a Member, the Book Value of such
                                            asset shall be adjusted to its gross Fair Market Value as of the date of such distribution;

 

		(e)	the Book Value of all
                                            Company assets may, in the sole discretion of the Members, be adjusted to equal their respective
                                            gross Fair Market Values, as reasonably determined by the Members, as of the following times:

 

		(i)	the acquisition
                                            of an additional Membership Interest in the Company by a new or existing Member in consideration
                                            for more than a de minimis Capital Contribution;

 

		(ii)	the distribution
                                            by the Company to a Member of more than a de minimis amount of property (other than cash)
                                            as consideration for all or a part of such Member's Membership Interest in the Company; and

 

		(iii)	the liquidation
                                            of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g);

 

		(f)	the Book Value of
                                            each Company asset shall be increased or decreased, as the case may be, to reflect any adjustments
                                            to the adjusted tax basis of such Company asset pursuant to Code Section 734(b) or Code Section
                                            743(b), but only to the extent that such adjustments are taken into account in determining
                                            Capital Account balances pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m); provided,
                                            that Book Values shall not be adjusted pursuant to this paragraph (d) to the extent that
                                            an adjustment pursuant to paragraph (c) above is made in conjunction with a transaction that
                                            would otherwise result in an adjustment pursuant to this paragraph (d); and

 

		(g)	if the Book Value
                                            of a Company asset has been determined pursuant to paragraph (a) or adjusted pursuant to
                                            paragraphs (c) or (d) above, such
	 	 	 
	 	 	Book Value shall thereafter be adjusted to reflect
                              the Book Depreciation taken into account with respect to such Company asset for purposes of computing Net
                              Income and Net Losses.

 

 

 

    	 	3	 

     

    

 

“Business Day”
means a day other than a Saturday, Sunday, or other day on which commercial banks in the state of California are authorized or required
to close.

 

“Capital Account”
has the meaning set forth in Section 3.03.

 

“Capital Contribution”
means any Member's contribution to the capital of the Company in cash and cash equivalents and the Book Value of any property contributed
to the Company by such Member.

 

“Change of Control”
means (a) the sale of all or substantially all of the assets of the Company to an Independent Third Party, (b) a sale resulting in
more than 50% of the Membership Interests of the Company being held by an Independent Third Party, or (c) a merger, consolidation, recapitalization,
or reorganization of the Company with or into an Independent Third Party that results in the inability of the Members to designate or
elect a majority of the managers (or the board of directors (or its equivalent) of the resulting entity or its parent company).

 

“Class A Voting
Units” shall have the meaning as that term is defined in Section 2.08.

 

“Class B Incentive
Units” shall have the meaning as that term is defined in Section 2.08.

 

“Code” means the Internal Revenue
Code of 1986, as amended.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company Business”
shall have the meaning as that term is defined in Section 2.05.

 

“Company Minimum
Gain” means “partnership minimum gain” as defined in Treasury Regulations Section 1.704-2(b)(2), substituting the
term “Company” for the term "partnership" as the context requires.

 

“Company Operating
Agreement” means this Agreement, as the same may hereafter be amended or restated.

 

“Confidential Information”
has the meaning set forth in Section 12.03(a).

 

“Consulting Agreement”
has the meaning set forth in the Recitals.

 

“Covered Person”
has the meaning set forth in Section 9.01(a).

 

“Divorce”
means any legal proceeding to terminate, dissolve, or separate the Marital Relationship of a Member, and includes an action for annulment,
legal separation, or similar proceeding that involves a judicial division of community or quasi-community property of the Member and
the Member's Spouse.

 

 

 

    	 	4	 

     

    

 

“Economic Interest”
shall have the meaning as that term is defined in Section 2.07.

 

“Electronic Transmission”
means (a) facsimile telecommunication, (b) email, (c) posting on an electronic message board or network that the Company has designated
for communications (together with a separate notice to the recipient of the posting when the transmission is given by the Company), or
(d) other means of electronic communication where the recipient has consented to the use of the means of transmission (or, if the transmission
is to the Company, the Company has placed in effect reasonable measures to verify that the sender is the member or manager purporting
to send the transmission) and the communication creates a record that is capable of retention, retrieval, and review and may be rendered
into clearly legible tangible form.

 

“Equity Securities”
means any and all Membership Interests of the Company and any securities of the Company convertible into, or exchangeable or exercisable
for, such Membership Interests, and warrants or other rights to acquire such Membership Interests.

 

“Estimated Tax Amount”
of a Member for a Fiscal Year means the Member's Tax Amount for such Fiscal Year as estimated in good faith from time to time by
the Members. In making such estimate, the Members shall take into account amounts shown on Internal Revenue Service Form 1065 filed by
the Company and similar state or local forms filed by the Company for the preceding taxable year and such other adjustments as the Members
reasonably determines are necessary or appropriate to reflect the estimated operations of the Company for the Fiscal Year.

 

“Excess Amount”
has the meaning set forth in Section 6.02(c).

 

“Exercise Period”
has the meaning set forth with this Agreement.

 

“Exercising Member”
has the meaning set forth with this Agreement.

 

“Facility and Use
and Access Agreement” has the meaning set forth in the Recitals.

 

“Fair Market Value”
of any asset as of any date means the purchase price that a willing buyer having all relevant knowledge would pay a willing seller
for such asset in an arm's length transaction, as determined in good faith by the Members on such factors as the Members, in the exercise
of its reasonable business judgment, considers relevant.

 

“Family Members”
has the meaning set forth in Section 8.02(b).

 

“Fiscal Year”
means the calendar year, unless the Company is required to or elects to have a taxable year other than the calendar year, in which
case Fiscal Year shall be the period that conforms to its taxable year.

 

“GAAP” means
the United States’ Generally Accepted Accounting Principles in effect from time to time.

 

 

 

    	 	5	 

     

    

 

 

“Governmental Authority”
means any federal, state, local, or foreign government or political subdivision thereof, or any agency or instrumentality of such
government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental
authority (to the extent that the rules, regulations, or orders of such organization or authority have the force of law), or any arbitrator,
court, or tribunal of competent jurisdiction.

 

“Independent Third
Party” means, with respect to any Member, any Person who is not an Affiliate or other Permitted Transferee of such Member.

 

“Initial Member(s)”
means the individual and collective reference to IPWR, Xiao and TPA who are set forth in the Preamble to this Agreement and listed
on Schedule A annexed hereto.

 

“IPW Option”
has the meaning set forth in Section 2.05(c).

 

“Issuance Notice”
has the meaning set forth with this Agreement.

 

“Joinder Agreement”
means the joinder agreement in form and substance attached

 

“Lien”
means any mortgage, pledge, security interest, option, right of first offer, encumbrance, or other restriction or limitation of any nature
whatsoever.

 

“Liquidator” has the meaning set forth in Section 11.03(a).

 

“Losses” has the meaning
set forth in Section 9.01(b).

 

“Major Decisions”
shall have the meaning set forth in Section 7.02.

 

“Marital Relationship”
means a civil union, registered domestic partnership, marriage, or any other similar relationship that is legally recognized in any
jurisdiction.

 

“Majority
Members” means, at any point in time, those Members holding a minimum of eighty percent (80%) of the outstanding Class A Voting
Units in the Company.

 

“Member”
means (a) each of IPW, Xiao and TPA identified on the Members Schedule as of the date hereof as a Member and who has executed this Agreement
or a counterpart thereof (each, an “Initial Member”), and (b) each Person who is hereafter admitted as a Member in
accordance with the terms of this Agreement and NRS, in each case so long as such Person is shown on the Company's books and records
as the owner of Membership Interests. The Members shall constitute "members" (as that term is defined in NRS) of the Company.

 

“Member Nonrecourse
Debt” means "partner nonrecourse debt" as defined in Treasury Regulations Section 1.704-2(b)(4), substituting the
term "Company" for the term "partnership" and the term "Member" for the term "partner" as the
context requires.

 

 

 

 

    	 	6	 

     

    

 

 

“Member Nonrecourse
Debt Minimum Gain” means an amount, with respect to each Member Nonrecourse Debt, equal to the Company Minimum Gain that would
result if the Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Treasury Regulations Section
1.704-2(i)(3).

 

“Member Nonrecourse
Deduction” means "partner nonrecourse deduction" as defined in Treasury Regulations Section 1.704-2(i), substituting
the term "Member" for the term "partner" as the context requires.

 

“Members Schedule”
has the meaning set forth in Section 3.01.

 

“Membership Interest”
means an interest in the Company owned by a Member, including such Member's right (a) to its distributive share of Net Income, Net
Losses, and other items of income, gain, loss, and deduction of the Company, (b) to its distributive share of the assets of the Company,
(c) to vote on, consent to, or otherwise participate in any decision of the Members as provided in this Agreement or NRS, and (d) to
any and all other benefits to which such Member may be entitled as provided in this Agreement or NRS. The Membership Interest of each
Member shall be expressed both in Units and as a percentage interest and shall be as set forth in the Members Schedule.

 

“Net Income”
and “Net Loss” mean, for each Fiscal Year or other period specified in this Agreement, an amount equal to the
Company's taxable income or taxable loss, or particular items thereof, determined in accordance with Code Section 703(a) (where, for
this purpose, all items of income, gain, loss, or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall
be included in taxable income or taxable loss), but with the following adjustments:

 

(a)           
any income realized by the Company that is exempt from federal income taxation, as described in Code Section 705(a)(1)(B), shall
be added to such taxable income or taxable loss, notwithstanding that such income is not includable in gross income;

 

(b)           
any expenditures of the Company described in Code Section 705(a)(2)(B), including any items treated under Treasury Regulations
Section 1.704-1(b)(2)(iv)(I) as items described in Code Section 705(a)(2)(B), shall be subtracted from such taxable income or taxable
loss, notwithstanding that such expenditures are novt deductible for federal income tax purposes;

 

(c)           
any gain or loss resulting from any disposition of Company property 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 property so disposed, notwithstanding that the adjusted tax
basis of such property differs from its Book Value;

 

(d)           
any items of depreciation, amortization, and other cost recovery deductions with respect to Company property having a Book Value
that differs from its adjusted tax basis shall be computed by reference to the property's Book Value (as adjusted for Book Depreciation)
in accordance with Treasury Regulations Section 1.704- 1(b)(2)(iv)(g);

 

 

 

 

    	 	7	 

     

    

 

 

(e)           
if the Book Value of any Company property is adjusted as provided in the definition of Book Value, then the amount of such adjustment
shall be treated as an item of gain or loss and included in the computation of such taxable income or taxable loss; and

 

(f)           
to the extent an adjustment to the adjusted tax basis of any Company property pursuant to Code Sections 732(d), 734(b), or 743(b)
is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts,
the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the
asset) or loss (if the adjustment decreases such basis).

 

“Nonrecourse Deductions”
has the meaning set forth in Treasury Regulations Section 1.704-2(b).

 

“Nonrecourse Liability”
has the meaning set forth in Treasury Regulations Section 1.704-2(b)(3).

 

“NRS”
means Chapter 86 of the Nevada Revised Statutes – Limited Liability Companies, currently in effect and as the same may be from
time to time amended.

 

“Officers”
has the meaning set forth in Section 7.01.

 

“Permitted Transfer”
means a Transfer of Membership Interests carried out pursuant to Section 8.02.

 

“Permitted Transferee”
means a recipient of a Permitted Transfer.

 

“Person” means
an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization,
trust, association, or other entity.

 

“Pro Rata Share”
means:

 

(g)          
for purposes of Section 3.02, with respect to any non-contributing Member in an Additional Capital Contribution, on any date that
an Additional Contribution is made, a fraction determined by dividing (i) such non-contributing Member's Membership Interest immediately
before the Additional Capital Contribution by (ii) the sum of (x) such non-contributing Member's Membership Interest immediately before
the Additional Capital Contribution and (y) the Membership Interest held by all other non-contributing Members immediately before such
Additional Capital Contribution.

 

(h)          
for the purposes of this Agreement, with respect to any Member, a percentage equal to the percentage by which such Member's Membership
Interest bears to all outstanding Membership Interests immediately before the issuance of New Securities.

 

 

 

 

    	 	8	 

     

    

 

 

“Quarterly Estimated
Tax Amount” of a Member for any calendar quarter of a Fiscal Year means the excess, if any, of (a) the product of (i) a quarter
(1⁄4) in the case of the first calendar quarter of the Fiscal Year, half (1⁄2) in the case of the second calendar quarter of
the Fiscal Year, three-quarters (3⁄4) in the case of the third calendar quarter of the Fiscal Year, and one (1) in the case of the
fourth calendar quarter of the Fiscal Year and (ii) the Member's Estimated Tax Amount for such Fiscal Year, over (b) all distributions
previously made during such Fiscal Year to such Member.

 

“Regulatory Allocations”
has the meaning set forth in Section 5.02(e).

 

“Related Party Transaction”
means any agreement, arrangement, transaction or understanding between the Company and any Initial Members, Member, or Officer, of
the Company or any Affiliate of a Initial Members, Member, or Officer of the Company, including, without limitation, any Member Loans;
in each case, as such agreement may be amended, modified, supplemented, or restated in accordance with the terms of this Agreement.

 

“Representative”
means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants,
and other agents of such Person.

 

“Revised Partnership
Audit Rules” has the meaning set forth in Section 10.04(c).

 

“Securities Act”
means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations thereunder, which shall
be in effect at the time.

 

“Shortfall Amount”
has the meaning set forth in Section 6.02(b).

 

“Shortfall Amount
Distribution Date” has the meaning set forth in Section 6.02(b).

 

“Spousal Consent”
has the meaning set forth in Section 12.18.

 

“Spousal Purchase
Price” has the meaning set forth in Section 8.03(c).

 

“Spouse” means
a spouse, a party to a civil union, a registered domestic partner, a same- sex spouse or partner, or any person in a Marital Relationship
with a Member.

 

“Spouse’s
Interest” has the meaning set forth in Section 8.03(a).

 

“Subsidiary”
means, with respect to any Person, any other Person of which a majority of the outstanding shares or other equity interests having
the power to vote for directors or comparable managers are owned, directly or indirectly, by the first Person.

 

“Tax Advance”
has the meaning set forth in Section 6.02(a).

 

“Tax Amount”
of a Member for a Fiscal Year means the product of (a) the Tax Rate for such Fiscal Year and (b) the Adjusted Taxable Income of the
Member for such Fiscal Year with respect to its Membership Interest.

 

 

 

    	 	9	 

     

    

 

 

“Tax Distribution
Date” has the meaning set forth in Section 6.02(a).

 

“Tax Matters Representative”
has the meaning set forth in Section 10.04(a).

 

“Tax Rate”
of a Member, for any period, means the highest effective marginal combined federal, state, and local tax rate applicable to an individual
residing in San Francisco, California(or, if higher, a corporation doing business in San Francisco, California), taking into account
(a) the character (for example, long-term or short-term capital gain, ordinary or exempt) of the applicable income and (b) if applicable,
the deduction under IRC Section 199A.

 

“Taxing Authority”
has the meaning set forth in Section 6.03(b).

 

“TPA IP Agreement”
has the meaning set forth in the Recitals.

 

“Transfer”
means to, directly or indirectly, sell, transfer, assign, gift, pledge, encumber, hypothecate, or similarly dispose of, either voluntarily
or involuntarily, by operation of law or otherwise, or to enter into any contract, option, or other arrangement or understanding with
respect to the sale, transfer, assignment, gift, pledge, encumbrance, hypothecation, or similar disposition of, any Membership Interests
owned by a Person or any interest (including a beneficial interest or "transferable interest" as defined by Section 17701.02(aa)
of NRS) in any Membership Interests owned by a Person. “Transfer” when used as a noun, and “Transferred”
when used to refer to the past tense, shall have correlative meanings. “Transferor” and “Transferee”
mean a Person who makes or receives a Transfer, respectively.

 

“Treasury Regulations”
means the final or temporary regulations issued by the United States Department of Treasury pursuant to its authority under the Code,
and any successor regulations.

 

“Units”
means outstanding certificated units of Membership Interests.

 

Section 1.02 “Withholding
Advances” has the meaning set forth in Section 6.03(b).Interpretation. For purposes of this Agreement, (a) the words
"include," "includes," and "including" shall be deemed to be followed by the words "without limitation,"
(b) the word "or" is not exclusive, and (c) the words "herein," "hereof," "hereby," "hereto,"
and "hereunder" refer to this Agreement as a whole. The definitions given for any defined terms in this Agreement shall apply
equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine, and neuter forms. Unless the context otherwise requires, references herein (x) to Articles, Sections, Exhibits,
and Schedules mean the Articles and Sections of and Exhibits and Schedules attached to this Agreement, (y) to an agreement, instrument,
or other document means such agreement, instrument, or other document as amended, restated, supplemented, and modified from time to time
to the extent permitted by the provisions thereof, and (z) to a statute or Applicable Law means such statute or Applicable Law as amended
from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be
construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument
or causing any instrument to be drafted. The Exhibits and Schedules referred to herein shall be construed with, and as an integral part
of, this Agreement to the same extent as if they were set forth verbatim herein.

 

    	 	10	 

     

    

 

 

ARTICLE II

Organization and Membership
Interests

 

Section
2.01          Formation.

 

(a)           
The Company was formed on December 27, 2021, pursuant to the provisions of NRS, upon the filing of the Articles of Organization
with the Nevada Secretary of State, file number 20211981116 and Entity ID No. E19811172021-7.

 

(b)           
This Agreement shall constitute the "operating agreement" (as that term is used in NRS) of the Company. The rights,
powers, duties, obligations, and liabilities of the Members shall be determined pursuant to NRS and this Agreement. To the extent that
the rights, powers, duties, obligations, and liabilities of any Member are different by reason of any provision of this Agreement than
they would be under NRS in the absence of such provision, this Agreement shall, to the extent permitted by NRS, control.

 

Section 2.02 Name. The
name of the Company is “Box Harmony, LLC” or such other name or names as may be designated by the Members pursuant
to Section 7.02(q); provided, that the name shall always contain the words “limited liability company” or the abbreviation
“L.L.C.” or “LLC.” The Company may conduct business under any assumed or fictitious name required by Applicable
Law or otherwise deemed desirable by the Members.

 

Section 2.03 Principal
Office. The principal office of the Company is located c/o iPower Inc., 2399 Bateman Avenue, Duarte, California 91010, or such other
place as may from time to time be determined by the Members.

 

Section 2.04 Office and
Agent for Service of Process. The office for service of process on the Company in the State of Nevada shall be the office of the
initial agent named in the Articles of Organization or such other office (which need not be a place of business of the Company) as the
Initial Members may designate from time to time in the manner provided by NRS and Applicable Law.

 

Section
2.05 Purpose; Powers.

 

(a)            
The purpose of the Company is (i) to provide logistic services for primarily foreign based manufacturers or distributors who desire
to sell their products on- line in the United States, with such logistic services to include, without limitation, receiving, storing
and transporting such products in the United States, and (ii) to engage in any other lawful act or activity for which limited liability
companies may be formed under NRS including engaging in any and all activities necessary or incidental thereto (the “Company
Business”).

 

(b)           
The Company shall have all the powers necessary or convenient to carry out the purposes for which it is formed, including the
powers granted by NRS.

 

 

 

 

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Section 2.06 Term. The
term of the Company commenced on the date the Articles of Organization were filed with the Nevada Secretary of State and shall continue
in existence perpetually until the Company is dissolved in accordance with the provisions of this Agreement or as provided by Applicable
Law.

 

Section 2.07 Membership
Interests. The Membership Interests in the Company shall mean a Member’s rights in and obligations to the Company, including
the Member’s Economic Interest (as defined below), any right to vote or participate in management and any right to information
concerning the business and affairs of the Company provided by the Act, and shall be issued in the classes set forth in Section 2.2
below. “Economic Interest” means the right of a Person (as defined below) to share in the allocation of, and to
receive distributions from, the Company, but does not include any other rights of a Member, including the right to vote or to participate
in management or, except as provided in the Act, any right to information concerning the business and affairs of the Company.

 

Section 2.08 Authorization
and Issuance of Units; Voting Rights. The Membership Interests shall consist of numbers of units of Membership Interest (the “Units”).
The Units may be issued as certificated or uncertificated Units. The Company is authorized to issue two (2) classes of Units, with the
rights, preferences and privileges described in this Agreement, as follows:

 

(a)            
Class A Voting Units. 10,000 Units of Class A Membership Interests shall be authorized and are referred to as “Class
A Voting Units”. The Class A Voting Units have been purchased by the Initial Members as follows:

 

(i)             
IPW shall purchase 2,400 Class A Voting Units for a cash payment to the Company of $50,000 to provide the Company with initial
working capital;

 

(ii)           
Xiao shall purchase 2,400 Class A Voting Units in consideration for $2,400 and his commitment to manage the business of the Company;
and

 

(iii)          
TPA shall purchase 1,200 Class A Voting Units in consideration for the TPA IP License and for contributing to the Company its
existing customers, any future customer contracts, and granting access and use right of shipping accounts (Fedex and UPS) and all other
carrier contracts.

 

Each
Member holding Class A Voting Units (“Class A Member”) shall have the right to one (1) vote per Class A Voting Unit.
Class A Voting Units initially shall be issued as set forth in Schedule A.

 

(b)           
Incentive Units. In addition to the Class A Voting Units the Company has authorized for issuance pursuant to an
equity incentive plan to be adopted by the Initial Members (the “Equity Incentive Plan”), up to1,000 Class B Incentive
Units to be issued to employees of and consultants to the Company other than the Initial Members (the “Class B Incentive Units”).
As at the date of this Agreement, no Class B Incentive Units have been issued. It is contemplated that, if and when issued, the Class
B Incentive Units shall:

 

		(i)	be non-voting Units of Membership Interests;

 

 

 

 

    	 	12	 

     

    

 

 

		(ii)	be subject to time
                                            vesting over a period of three years from issuance and subject to a risk of forfeiture if
                                            any recipient resigns, is terminated for cause or otherwise breaches such Person’s
                                            employment or consulting agreement with the Company;

 

		(iii)	be subject to performance
                                            vesting based on the Company’s achievement of certain financial performance milestones
                                            to be set forth in the Equity Inventive Plan and/or in any award agreement granting Class
                                            B Incentive Units to a Person.

 

(c)           
IPW Option. TPA and each of its Affiliates each hereby grant to IPW an unconditional and irrevocable right and option
(the “IPW Option”) to purchase from Xiao and TPA or any other holder of the 3,600 Class A Voting Units issued to Xiao
and TPA on the Effective Date (each an “Initial Member Transferee”) at any time within the first 18 months following
the Effective Date (the “Option Period”), up to 1,200 Class A Voting Units, at an exercise price of $550 per Class
A Voting Unit, for an total exercise price of up to $660,000 (the “Exercise Price”). If the IPW Option is fully exercised
the 1,200 Class A Voting Units owned by Xiao and TPA shall be reduced by 1,200 Class A Voting Units as mutually agreed upon by them.
If either Xiao or TPA consummate a Permitted Transfer to any other Initial Member Transferee, a corresponding reduction of 1,200 Class
A Voting Units shall be made by any other Initial Member Transferee to 2,400 Class A Voting Units and the number of Class A Voting Units
to be held by IPW shall be increased to 3,600 Class A Voting Units, or 60% of 100% of the 6,000 Class A Voting Units to be outstanding
if the Option is fully exercised.

 

If it intends to exercise
the IPW Option, IPW shall send TPA a written notice (which may be by electronic mail) that it intends to exercise the IPW Option, whether
in whole or in part (the “Exercise Notice”); which Exercise Notice shall specify the number of Class A Voting Units
to be purchased and the total Exercise Price to be paid. Not later than ten (10) Business Days after receipt of the exercise Notice,
a closing (the “Option Closing”) shall be held. At the Option Closing, against IPW’s delivery of the applicable
Exercise Price to a TPA bank account designated by it, TPA shall deliver to IPW certificates evidencing the 1,200 Class A Voting Units
(or such lesser number being purchased) and the Initial Members shall amend this Agreement and the Members Schedule to reflect the appropriate
number of Class A Voting Units to be held by IPW and by TPA.

 

Notwithstanding the foregoing
or any other provision of this Agreement, in the event that IPW timely issues and Exercise Notice and is ready and willing to pay the
Exercise Price at the Option Closing, but TPA, for any reason or no reason, fails to refuse to consummate such Option Closing as provided
above, then and in such event, and in lieu of IPW’s purchase of Class A Voting Units from Xiao and TPA or any Initial Member Transferee,
the Company shall issue and sell to IPW up to an additional 3,000 Class A Voting Units in consideration for a purchase price of $220
per Class A Voting Unit, or a maximum of $660,000 for all 3,000 additional Class A Voting Units. Xiao and TPA hereby grants to IPW an
irrevocable power of attorney and proxy, coupled with an interest, to facilitate this transaction with the Company if and when required.

 

 

 

 

    	 	13	 

     

    

 

 

(d)           
Voting Agreement. Notwithstanding anything to the contrary, express or implied contained in this Agreement, in the
event that (i) IPW shall exercise the IPW Option, in whole or in part, and shall own a majority of the 6,000 Class A Units issued on
the Effective Date to the Initial Members, and (ii) any new Members shall thereafter be admitted to the Company, each of Xiao and TPA
and each of their Initial Member Transferees hereby covenant and agree to vote all of their Class A Voting Units at any regular or special
meeting of the Members in the same manner as IPW votes its Class A Voting Units. In addition, in the event that the Company and its Members
shall establish a board of managers to manage the Company Business (the “Board”), then and in such event, , each of
Xiao and TPA and each of their Initial Member Transferees hereby agree to vote all of their Class A Voting Units at any regular or special
meeting of the Members to cause IPW to designate a majority of the members of the Board. In furtherance of the foregoing, Xiao and TPA
hereby grants to IPW an irrevocable power of attorney and proxy, coupled with an interest, to facilitate the provisions of this Section
2.08(d), if and when required

 

ARTICLE III

Capital Contributions;
Capital Accounts

 

Section 3.01 Initial
Capital Contributions.

 

(a)           
On the Effective Date of this Agreement, the Initial Members shall make Capital Contributions to the Company of the type and in
the amounts set forth above in Section 2.08(a) (each an “Initial Capital Contribution”) and shall receive an aggregate
of 6,000 Class A Voting Units.

 

(b)           
Contemporaneously with the execution of this Agreement, each Initial Member has made his or its Initial Capital Contribution and
is deemed to own Class A Voting Units in the amounts set forth opposite such Member’s name on Schedule A attached hereto (the "Members
Schedule"). Such Membership Interests shall be expressed both as a percentage interest and in Units of Class A Voting as provided
in the Members Schedule. The Members shall update the Members Schedule upon the issuance or Transfer of any Class A Voting Units to any
new or existing Member in accordance with this Agreement. No Member shall be entitled to receive any interest on his, her or its Capital
Contributions or Capital Account, but Members shall be entitled to receive interest in connection with any Member Loans contemplated
by Section 3.07.

 

Section 3.02 Additional
Capital Contributions. No Member shall be required to make any additional Capital Contributions to the Company in excess of the Initial
Capital Contributions and Second Capital Contributions set forth in Section 3.01(a) above. Following the Effective Date of this Agreement,
in addition to the Initial Capital Contributions, the Initial Members may make additional Capital Contributions of approximately $1,000,000
or such other amounts as the Majority Members agree upon (an "Additional Capital Contribution") in compliance with this
Agreement. However, no individual Member shall be required to make his or its Pro-Rata Share of any Additional Capital Contribution.
With respect to any Additional Capital Contributions if one or more Initial Member(s) makes such an approved Additional Capital Contribution
to the Company, the Initial Member making such Additional Capital Contribution shall revise the Members Schedule to reflect an increase
in the Membership Interest of the contributing Member or Members, and the corresponding Pro Rata Share of the decrease in the Membership
Interest of each non-contributing Member or Members, that fairly and equitably reflects the value of the contributing Members Additional
Capital Contribution in relation to the aggregate amount of all Capital Contributions made by the Members.

 

 

 

 

    	 	14	 

     

    

 

 

Section 3.03 Maintenance
of Capital Accounts. The Company shall establish and maintain for each Member a separate capital account (a "Capital Account")
on its books and records in accordance with this Section 3.03. Each Capital Account shall be established and maintained in accordance
with the following provisions:

 

		(a)	Each Member's Capital Account shall be
                                            increased by the amount of:

 

		(i)	such Member's
                                            Capital Contributions, including any Additional Capital Contributions;

 

		(ii)	any Net Income
                                            or other item of income or gain allocated to such Member pursuant to ARTICLE V; and

 

		(iii)	any liabilities
                                            of the Company that are assumed by such Member or secured by any property distributed to
                                            such Member.

 

		(b)	Each Member's Capital Account shall be
                                            decreased by:

 

		(i)	the cash amount
                                            or Book Value of any property distributed to such Member pursuant to ARTICLE VI and Section
                                            11.03(d);

 

		(ii)	the amount
                                            of any Net Loss or other item of loss or deduction allocated to such Member pursuant to ARTICLE
                                            V; and

 

		(iii)	the amount
                                            of any liabilities of such Member assumed by the Company or that are secured by any property
                                            contributed by such Member to the Company.

 

Section 3.04 Succession
Upon Transfer. If any Membership Interests are Transferred in accordance with the terms of this Agreement, the Transferee shall succeed
to the Capital Account of the Transferor to the extent it relates to the Transferred Membership Interests and, subject to Section 5.04,
shall receive allocations and distributions pursuant to ARTICLE V, ARTICLE VI, and ARTICLE XI in respect of such Membership Interests.

 

Section 3.05 Negative
Capital Accounts. If any Member shall have a deficit balance in its Capital Account, such Member shall have no obligation, during
the term of the Company or upon dissolution or liquidation thereof, to restore such negative balance or make any Capital Contributions
to the Company by reason thereof, except as may be required by Applicable Law or in respect of any negative balance resulting from a
withdrawal of capital or dissolution in contravention of this Agreement.

 

 

 

 

    	 	15	 

     

    

 

 

Section 3.06 No Withdrawals
from Capital Accounts. No Member shall be entitled to withdraw any part of its Capital Account or to receive any distribution from
the Company, except as otherwise provided in this Agreement. Notwithstanding the foregoing, priority distributions of Net Income or Distributable
Cash Flow to Initial Members holding Class B Preferred Units shall be applied first, as a return of their Capital Contributions in respect
of their Class A Voting Units, and thereafter as profits taxable as ordinary income. No Member, including the Initial Members, shall
receive any interest, salary, or drawing with respect to its Capital Contributions or its Capital Account, except as otherwise provided
in this Agreement. The Capital Accounts are maintained for the sole purpose of allocating items of income, gain, loss, and deduction
among the Members and shall have no effect on the amount of any distributions to any Members, in liquidation or otherwise.

 

Section 3.07 Member
Loans and Treatment of Loans from Members.

 

(a)           
Each of the Initial Members acknowledge that from time to time Members or their Affiliates may make loans to the Company, the
proceeds of which are intended to be used as working capital for the Company and/or to finance in whole or in part the acquisition of
additional assets, (“Member Loans”). The terms of such Member Loans shall be approved as a Major Decision contemplated
by Section 7.02 and may (i) be secured by Liens on purchased assets, (ii) bear interest at annual rates that are consistent with higher
interest rates then being charged by lenders to development stage businesses; and (iii) may be convertible at the option of the embers
at such conversion prices and rates as shall be determined by the Members.

 

(b)          
Loans by any Member to the Company shall not be considered Capital Contributions and shall not affect the maintenance of such
Member's Capital Account, other than to the extent provided in Section 3.03(a)(iii), if applicable.

 

Section 3.08 Modifications.
The foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended
to comply with Treasury Regulations Section 1.704-1(b) and shall be interpreted and applied in a manner consistent with such Treasury
Regulations. If the Members determine that it is prudent to modify the manner in which the Capital Accounts, or any increases or decreases
to the Capital Accounts, are computed to comply with such Treasury Regulations, the Members may authorize such modifications.

 

ARTICLE IV

Members

 

Section 4.01 Admission
of New Members.

 

(a)             New
Members may be admitted from time to time only with the written consent of the Members as a Major Decision (i) in connection with
the issuance of Membership Interests by the Company, subject to compliance with the provisions of Section 7.02(b) and ARTICLE VIII,
and (ii) in connection with a Transfer of Membership Interests, subject to compliance with the provisions of this Agreement, and in
either case, following compliance with the provisions of Section 4.01(b).

 

 

 

 

    	 	16	 

     

    

 

 

(b)               
In order for any Person not already a Member of the Company to be admitted as a Member, whether pursuant to an issuance or Transfer
of Membership Interests, such Person shall have delivered to the Company (i) an executed written undertaking substantially in the form
of the Joinder Agreement and (ii) if such Person is a natural person who has a Spouse, an executed written undertaking substantially
in the form of the Spousal Consent. Upon the amendment of the Members Schedule and the satisfaction of all other applicable conditions,
including, if a condition, the receipt by the Company of payment for the issuance of Membership Interests, such Person shall be admitted
as a Member and deemed listed as such on the books and records of the Company. The Members shall also adjust the Capital Accounts of
the Members as necessary in accordance with Section 3.03.

 

Section
4.02 No Personal Liability. Except as otherwise provided by NRS, by Applicable Law, or expressly in this Agreement, no Member will
be obligated personally for any debt, obligation, or liability of the Company or other Members, whether arising in contract, tort, or
otherwise, solely by reason of being or acting as a Member. Except as otherwise provided by NRS, by Applicable Law, or expressly in this
Agreement, no member of the Initial Members will be obligated personally for any debt, obligation, or liability of the Company, whether
arising in contract, tort, or otherwise, solely by reason of being or acting as a member of the Initial Members.

 

Section 4.03 Dissociation;
Death.

 

(a)           
No Member shall have the ability to dissociate or withdraw as a Member pursuant to Section 17706.01(a) or Section 17706.02(a)
of NRS, or otherwise except as required by Applicable Law, before the dissolution and winding up of the Company and any such dissociation
or withdrawal or attempted dissociation or withdrawal by a Member before the dissolution or winding up of the Company shall be null and
void. As soon as any Person who is a Member ceases to hold any Membership Interests, such Person shall no longer be a Member.

 

(b)           
In the event of the death of a Member, the Company and its business shall be continued by the remaining Member or Members, subject
to Section 11.01(c).

 

Section
4.04 No Interest in Company Property. No real or personal property of the Company shall be deemed to be owned by any Member individually,
but shall be owned by, and title shall be vested solely in, the Company. Without limiting the foregoing, each Member hereby irrevocably
waives during the term of the Company any right that such Member may have to maintain any action for partition with respect to the property
of the Company.

 

Section 4.05
Certification of Units of Membership Interests.

 

(a)           
At the request of either IPW or TPA, the Company shall issue certificates to each Member representing the Membership Interests
held by such Member. The Company shall record or cause to be recorded all issuances, exchanges, and other transactions in Membership
Interests involving the Members in a ledger maintained as part of the books and records of the Company.

 

 

 

 

    	 	17	 

     

    

 

 

(b)          
If the Company shall issue certificates representing Membership Interests in accordance with Section 4.05(a), then in addition
to any other legend required by Applicable Law, all certificates representing issued and outstanding Membership Interests shall bear
a legend substantially in the following form:

 

THE MEMBERSHIP INTERESTS REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO AN OPERATING AGREEMENT AMONG THE COMPANY AND ITS MEMBERS, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL
OFFICE OF THE COMPANY. NO TRANSFER, SALE, OFFER, ASSIGNMENT, GIFT, PLEDGE, ENCUMBRANCE, HYPOTHECATION, OR OTHER DISPOSITION OF THE MEMBERSHIP
INTERESTS REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH OPERATING AGREEMENT.

 

THE MEMBERSHIP INTERESTS REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS
AND MAY NOT BE TRANSFERRED, SOLD, OFFERED, ASSIGNED, GIFTED, PLEDGED, ENCUMBERED, HYPOTHECATED, OR OTHERWISE DISPOSED EXCEPT PURSUANT
TO (A) A REGISTRATION STATEMENT EFFECTIVE UNDER SUCH ACT AND LAWS, OR (B) AN EXEMPTION FROM REGISTRATION THEREUNDER.

 

Section 4.06 Meetings.

 

(a)           
Meetings of the Members may be called by any one Member or the Majority Members.

 

(b)           
Written notice stating the place, date, and time of the meeting, the means of electronic video screen communication or Electronic
Transmission by and to the Company, if any, and the general nature of the business to be transacted at the meeting, shall be delivered
not fewer than five (5) days and not more than sixty (60) days before the date of the meeting to each Member, by or at the direction
of the Member(s) calling the meeting, as the case may be. The business to be conducted at such meeting shall be limited to the purposes
described in the notice. The Members may hold meetings at the Company's principal office or at such other place, within or outside the
State of California, as the Member(s) calling the meeting may designate in the notice for such meeting.

 

(c)          
Any Member may participate in a meeting of the Members (i) using conference telephone or electronic video screen communication,
if all Persons participating in the meeting can talk to and hear each other, or (ii) by Electronic Transmission by and to the Company
if the Company (1) implements reasonable measures to provide Members, in person or by proxy, a reasonable opportunity to participate
and vote, including an opportunity to read or hear the meeting's proceedings substantially concurrently with the proceedings, and (2)
maintains a record of votes or other action taken by the Members. Participation in a meeting by such means shall constitute presence
in person at such meeting.

 

 

 

 

    	 	18	 

     

    

 

 

(d)           
On any matter that is to be voted on by the Members, a Member may vote in person or by proxy, and such proxy may be granted in
writing signed by such Member, using Electronic Transmission authorized by such Member, or as otherwise permitted by Applicable Law.
Every proxy shall be revocable in the discretion of the Member executing it unless otherwise provided in such proxy; provided, that such
right to revocation shall not invalidate or otherwise affect actions taken under such proxy before such revocation.

 

(e)           
Attendance of a Member at any meeting shall constitute a waiver of notice of such meeting, except where a Member attends a meeting
for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.
Attendance of a Member at a meeting is not a waiver of the Member's right to object to consideration of matters required to be described
in the notice for the meeting, if the Member expressly objects to such consideration at the meeting.

 

(f)           
A quorum of any meeting of the Members shall require the presence, whether in person or by proxy, of both IPW and Xiao or their
Initial Member Transferee. Subject to Section 4.07, no action may be taken by the Members unless the appropriate quorum is present at
a meeting.

 

(g)          
Subject to Section 4.07, and any other provision of this Agreement or NRS requiring the vote, consent, or approval of a different
percentage of the Membership Interests, no action may be taken by the Members at any meeting at which a quorum is present or by written
consent without the affirmative vote of IPW and Xiao or their Initial Member Transferee.

 

Section
4.07 Action Without a Meeting. Notwithstanding the provisions of Section 4.06, any matter that is to be voted on, consented to, or
approved by the Members may be taken without a meeting if a written consent is signed and delivered (including by Electronic Transmission)
to the Company within 60 days of the record date for that action by a Member or the Majority Members having not less than the minimum
number of votes that would be necessary to authorize or take such action at a meeting at which all Members entitled to vote were present
and voted. A record shall be maintained of each such action taken by written consent of a Member or the Members.

 

ARTICLE V

Allocations

 

Section
5.01 Allocation of Net Income and Net Loss. For each Fiscal Year (or portion thereof), after giving effect to the special allocations
set forth in Section 5.02, Net Income and Net Loss of the Company shall be allocated among the Members pro rata in accordance with their
Membership Interests.

 

 

 

 

    	 	19	 

     

    

 

 

Section
5.02 Regulatory and Special Allocations. Notwithstanding the provisions of Section 5.01:

 

(a)           
If there is a net decrease in Company Minimum Gain (determined according to Treasury Regulations Section 1.704-2(d)(1)) during
any Fiscal Year, each Member shall be specially allocated Net Income for such Fiscal Year (and, if necessary, subsequent Fiscal Years)
in an amount equal to such Member's share of the net decrease in Company Minimum Gain, determined in accordance with Treasury Regulations
Section 1.704-2(g). The items to be so allocated shall be determined in accordance with Treasury Regulations Sections 1.704-2(f)(6) and
1.704-2(j)(2). This Section 5.02 is intended to comply with the "minimum gain chargeback" requirement in Treasury Regulations
Section 1.704-2(f) and shall be interpreted consistently therewith.

 

(b)          
Member Nonrecourse Deductions shall be allocated in the manner required by Treasury Regulations Section 1.704-2(i). Except as
otherwise provided in Treasury Regulations Section 1.704-2(i)(4), if there is a net decrease in Member Nonrecourse Debt Minimum Gain
during any Fiscal Year, each Member that has a share of such Member Nonrecourse Debt Minimum Gain shall be specially allocated Net Income
for such Fiscal Year (and, if necessary, subsequent Fiscal Years) in an amount equal to that Member's share of the net decrease in Member
Nonrecourse Debt Minimum Gain. Items to be allocated pursuant to this paragraph shall be determined in accordance with Treasury Regulations
Sections 1.704-2(i)(4) and 1.704-2(j)(2). This Section 5.02(b) is intended to comply with the "minimum gain chargeback" requirements
in Treasury Regulations Section 1.704-2(i)(4) and shall be interpreted consistently therewith.

 

(c)           
Nonrecourse Deductions shall be allocated to the Members in accordance with their Membership Interests.

 

(d)          
In the event any Member unexpectedly receives any adjustments, allocations, or distributions described in Treasury Regulations
Section 1.704- 1(b)(2)(ii)(d)(4), (5), or (6), Net Income shall be specially allocated to such Member in an amount and manner sufficient
to eliminate the Adjusted Capital Account Deficit created by such adjustments, allocations, or distributions as quickly as possible.
This Section 5.02(d) is intended to comply with the "qualified income offset" requirement in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)
and shall be interpreted consistently therewith.

 

(e)           
The allocations set forth in paragraphs Section 5.02(a), Section 5.02(b), Section 5.02(c), and Section 5.02(d) above (the "Regulatory
Allocations") are intended to comply with certain requirements of the Treasury Regulations under Code Section 704. Notwithstanding
any other provisions of this ARTICLE V (other than the Regulatory Allocations), the Regulatory Allocations shall be taken into account
in allocating Net Income and Net Losses among Members so that, to the extent possible, the net amount of such allocations of Net Income
and Net Losses and other items and the Regulatory Allocations to each Member shall be equal to the net amount that would have been allocated
to such Member if the Regulatory Allocations had not occurred.

 

Section 5.03 Tax Allocations.

 

(a)           
Subject to Section 5.03(b), Section 5.03(c), and Section 5.03(d), all income, gains, losses, and deductions of the Company shall
be allocated, for federal, state, and local income tax purposes, among the Members in accordance with the allocation of such income,
gains, losses, and deductions pursuant to Section 5.01 and Section 5.02, except that if any such allocation for tax purposes is not permitted
by the Code or other Applicable Law, the Company's subsequent income, gains, losses, and deductions shall be allocated among the Members
for tax purposes, to the extent permitted by the Code and other Applicable Law, so as to reflect as nearly as possible the allocation
set forth in Section 5.01 and Section 5.02.

 

 

 

 

    	 	20	 

     

    

 

(b)           
Items of Company taxable income, gain, loss, and deduction with respect to any property contributed to the capital of the Company
shall be allocated among the Members in accordance with Code Section 704(c) and the traditional method with curative allocations of Treasury
Regulations Section 1.704-3(c), so as to take account of any variation between the adjusted basis of such property to the Company for
federal income tax purposes and its Book Value.

 

(c)            
If the Book Value of any Company asset is adjusted pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(f) as provided in
clause (c) of the definition of Book Value, subsequent allocations of items of taxable income, gain, loss, and deduction with respect
to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Book
Value in the same manner as under Code Section 704(c).

 

(d)           
Allocations of tax credit, tax credit recapture, and any items related thereto shall be allocated to the Members according to
their interests in such items as determined by the Members taking into account the principles of Treasury Regulations Section 1.704-1(b)(4)(ii).

 

(e)            
Allocations pursuant to this Section 5.03 are solely for purposes of federal, state, and local taxes and shall not affect, or
in any way be taken into account in computing, any Member's Capital Account or share of Net Income, Net Losses, distributions, or other
items pursuant to any provisions of this Agreement.

 

Section
5.04 Allocations in Respect of Transferred Membership Interests. In the event of a Transfer of Membership Interests during any Fiscal
Year made in compliance with the provisions of this Agreement. Net Income, Net Losses, and other items of income, gain, loss, and deduction
of the Company attributable to such Membership Interests for such Fiscal Year shall be determined using the interim closing of the books
method.

 

ARTICLE VI

Distributions and Covenants
of XIAO and TPA

 

Section 6.01 General.

 

(a)           
Subject to Section 6.02, distributions of available Net Income and distributions of cash from operations (each “Distributable
Cash Flow”) shall be made to the Members when and in such amounts as determined by the Members as a Major Decision; it being
understood that Distributable Cash Flow shall be paid by the Company as a distribution after payments are made to IPW under the Facility
Use and Access Agreement and to Xiao and TPA under the Consulting Agreement. After making all distributions required for a given Fiscal
Year under Section 6.02, distributions of Distributable Cash Flow determined to be made pursuant to this Section 6.01(a) shall be paid
as follows:

 

 

 

    	 	21	 

     

    

 

 

(i)            
in accordance with their respective Economic Interests in Class A Voting Units owned by the Initial Members or any Transferee
of the Initial Members, and

 

(ii)           
if and only to the extent that all time and performance vesting conditions have been fulfilled, to holders of vested Class B Incentive
Units.

 

(b)          
Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make any distribution to Members
if such distribution would violate Section 17704.05 of NRS or other Applicable Law.

 

Section 6.02 Tax Advances.

 

(a)           
Subject to Section 6.01(b) and any restrictions in the Company’s then applicable debt-financing arrangements, and subject
to the Member's determination to retain any other amounts necessary to satisfy the Company’s obligations, at least five (5) days
before each date prescribed by the Code for a calendar-year entity to pay quarterly instalments of estimated tax (a "Tax Distribution
Date"), the Company shall use commercially reasonable efforts to distribute cash to each Member in proportion to and to the
extent of such Member's Quarterly Estimated Tax Amount for the applicable calendar quarter (each such distribution, a "Tax Advance").

 

(b)           
If, at any time after the final Quarterly Estimated Tax Amount has been distributed pursuant to Section 6.02(a) with respect to
any Fiscal Year, the aggregate Tax Advances to any Member with respect to such Fiscal Year are less than such Member's Tax Amount for
such Fiscal Year (a "Shortfall Amount"), then the Company shall use commercially reasonable efforts to distribute cash in proportion
to and to the extent of each Member's Shortfall Amount. The Company shall use commercially reasonable efforts to distribute Shortfall
Amounts with respect to a Fiscal Year before the 75th day of the next succeeding Fiscal Year (the date of any such distribution, a "Shortfall
Amount Distribution Date"); provided, that if the Company has made distributions other than pursuant to this Section 6.02, the Members
may apply such distributions to reduce any Shortfall Amount.

 

(c)           
If the aggregate Tax Advances made to any Member pursuant to this Section 6.02 for any Fiscal Year exceed such Member's Tax Amount
(an "Excess Amount"), such Excess Amount shall reduce subsequent Tax Advances that would be made to such Member pursuant to
this Section 6.02, except to the extent taken into account as an advance pursuant to Section 6.02(d).

 

(d)           
Any distributions made pursuant to this Section 6.02 shall be treated for purposes of this Agreement as advances on distributions
pursuant to Section 6.01 and shall reduce, dollar-for-dollar, the amount otherwise distributable to such Member pursuant to Section 6.01.

 

 

 

 

    	 	22	 

     

    

 

 

Section 6.03 Tax Withholding;
Withholding Advances.

 

(a)           
Tax Withholding. Each Member agrees to furnish the Company with any representations and forms as shall be reasonably requested
by the Company to assist it in determining the extent of, and in fulfilling, any withholding obligations it may have.

 

(b)          
Withholding Advances. The Company is hereby authorized at all times to make payments ("Withholding Advances")
with respect to each Member in amounts required to discharge any obligation of the Company (as determined by the Tax Matters Representative)
based on the advice of legal or tax counsel to the Company to withhold or make payments to any federal, state, local, or foreign taxing
authority (a "Taxing Authority") with respect to any distribution or allocation by the Company of income or gain to
such Member and to withhold the same from distributions to such Member. Any funds withheld from a distribution by reason of this Section
6.03(b) shall nonetheless be deemed distributed to the Member in question for all purposes under this Agreement. If the Company makes
any Withholding Advance in respect of a Member hereunder that is not immediately withheld from actual distributions to the Member, then
the Member shall promptly reimburse the Company for the amount of such payment, plus interest at a rate equal to the prime rate published
in the Wall Street Journal on the date of payment plus 2% per annum, compounded annually, on such amount from the date of such payment
until such amount is repaid (or deducted from a distribution) by the Member (any such payment shall not constitute a Capital Contribution).
Each Member's reimbursement obligation under this Section 6.03(b) shall continue after such Member transfers its Membership Interests.

 

(c)           
Indemnification. Each Member hereby agrees to indemnify and hold harmless the Company and the other Members from and against
any liability with respect to the taxes, interest, or penalties that may be asserted by reason of the Company's failure to deduct and
withhold tax on amounts distributable or allocable to such Member. The provision of this Section 6.03(c) and the obligations of a Member
pursuant to Section 6.03(b) shall survive the termination, dissolution, liquidation, and winding up of the Company and the dissociation
or withdrawal of such Member from the Company or the Transfer of a Member’s Membership Interests. The Company may pursue and enforce
all rights and remedies it may have against each Member under this Section 6.03, including bringing a lawsuit to collect repayment with
interest of any Withholding Advances.

 

(d)           
Overwithholding. Neither the Company nor the Members shall be liable for any excess taxes withheld in respect of any distribution
or allocation of income or gain to a Member. In the event of an overwithholding, a Member's sole recourse shall be to apply for a refund
from the appropriate Taxing Authority.

 

 

 

 

    	 	23	 

     

    

 

 

Section 6.04 Financial
Covenants of Xiao and TPA.

 

(a)           
Xiao and TPA hereby jointly and severally guarantees to IPW that the Company shall:

 

(i)            
generate not less than $4,500,000 of net revenues in the initial 18 months following the Effective Date of this Agreement, and

 

(ii)           
have positive net profits before taxes by not later than December 31, 2022.

 

(b)           
In the event that Xiao and TPA shall fail to comply with the financial covenant set forth in clause (ii) of Section 6.04, than
and in such event Xiao and TPA or their Affiliates shall be obligated to reimburse the Company for all consulting fees and payments made
under the Consulting Agreement. In the event that Xiao and TPA shall fail to comply with the financial covenant set forth in clause (i)
of this Section 6.04, then and in such event, IPW may, following such 18 month period, terminate the Facility Use and Access Agreement,
terminate the Joint Venture Agreement, terminate the Consulting Agreement and terminate this Agreement; in which event there shall be
a dissolution of the Company.

 

ARTICLE VII

Management

 

Section
7.01 Management of the Company. Subject at all times to the provisions of Section 7.02 below, the Company shall be managed by the
Initial Members. Subject to the provisions of Section 7.01 and except as otherwise provided by NRS or this Agreement, the Initial Members
shall have full and complete discretion to manage and control the operation of the day-to-day business, property, activities, and affairs
of the Company, to make all decisions affecting the day-to-day business, property, activities, and affairs of the Company, and to take
all such actions as they deem necessary or appropriate to accomplish the purposes of the Company set forth in Section 2.05. Subject at
all times to the provisions of Section 7.02 below, the actions of the Initial Members taken in accordance with the provisions of this
Agreement shall bind the Company.

 

Section
7.02 Major Decisions.  Notwithstanding anything to the contrary, express or implied set forth in this Agreement, neither Xiao nor
TPA or any Initial Member Transferee or any Affiliate of such Persons, whether in their capacities as a Majority Member(s) or otherwise,
may directly or indirectly cause the Company to engage in any of the following actions, without the prior written consent of IPW or its
Affiliates:

 

(a)           
amend, modify, or waive any provisions of this Agreement, the Joint Venture Agreement, the Facility Use and Access Agreement,
the Consulting Agreement or the TPA IP Agreement.

 

 

 

 

    	 	24	 

     

    

 

 

(b)           
cause the Company engage in any activity, other than the conduct of the Company Business as set forth in clause (i) of the definition
of Company Business set forth in Section 2.05(a) above and in the Joint Venture Agreement;

 

(c)           
admit additional Members to the Company or issue additional Class A Voting Units or Class B Incentive Units or other securities
or, except in connection with a Transfer of Membership Interests that complies with the applicable provisions of this Agreement and Section
4.01(b), admit additional Members, or cause Box Harmony, LLC to do any of the above;

 

(d)            incur
any indebtedness, pledge, or grant Liens on any assets, or guarantee, assume, endorse, or otherwise become responsible for the obligations
of any other Person in a single transaction or series of related transactions;

 

(e)            make any additional
loan or advance to, or a Capital Contribution in, any Person;

 

(f)            
remove any officer of the Company, with or without cause, or select any replacement to an officer who resigns or is removed;

 

(g)           
appoint or remove the accountants or attorneys for the Company or make any changes in the accounting methods or policies of the
Company (other than as required by GAAP);

 

(h)           
enter into, amend, waive, or terminate any Related Party Transaction involving the Company or any Member;

 

(i)            
permit the Company to make any distribution of Distributable Cash Flow pursuant to Section 6.01(a) or any distribution or dividend
of assets or properties to Members or their Affiliates;

 

(j)           
enter into or effect any transaction or series of related transactions involving the purchase, lease, license, exchange, or other
acquisition (including by merger, consolidation, acquisition of stock, or acquisition of assets) by the Company any assets or equity
interests of any Person;

 

(k)           
enter into or effect any transaction or series of related transactions involving the sale, lease, license, exchange, or other
disposition (including by merger, consolidation, sale of stock, or sale of assets) by the Company of any assets or equity interests;

 

(l)            
establish a Subsidiary, or enter into any joint venture or similar business arrangement;

 

(m)          
settle any lawsuit, action, dispute, or other proceeding or otherwise assume any liability or agree to the provision of any equitable
relief by the Company; provided, that if the lawsuit, claim, dispute, or other proceeding involves an indemnification claim pursuant
to ARTICLE IX, such settlement shall also be approved in accordance with the terms of Section 9.01(c);

 

 

 

    	 	25	 

     

    

 

 

(n)           
engaging in or causing the Company to engage in any Related Party Transaction;

 

(o)           
entering into any agreement or commitment that would constitute a Change of Control Transaction of the Company;

 

(p)           
initiate or consummate any public offering and sale of the Membership Interests, Equity Securities, or any other securities;

 

(q)           
change the Company's name; provided that the name shall always contain the words "limited liability company" or the
abbreviation "L.L.C." or "LLC;" or

 

 (r)             make any investment in any other Person.

 

Section
7.03 Officers. The Initial Members may appoint individuals as officers of the Company (the "Officers") as the Initial
Members deems necessary or desirable to carry on the the Company Business. The Initial Members may delegate to such Officers such power
and authority as the Initial Members deems advisable. No Officer need be a Member of the Company. Any individual may hold two or more
offices of the Company. Each Officer shall hold office until his or her successor is designated by the Initial Members and approved as
a Major Decision or until his or her earlier death, resignation, or removal. Any Officer may resign at any time on written notice to
the Initial Members. Subject to Section 7.02(r), any Officer may be removed by the Initial Members with or without cause at any time.
Subject to Section 7.02(r), a vacancy in any office occurring because of death, resignation, removal, or otherwise, may, but need not,
be filled by the Initial Members. Each of the Initial Members agree that Chenlong (Lawrence) Tan shall be designated as the Executive
Chairman, Bin Xiao shall be designed as President and Chief Operating Officer, and Kevin Vassily shall be designated as Chief Financial
Officer and Secretary of the Company.

 

Section
7.04 Compensation and Reimbursement of Initial Members. The Initial Members shall not be compensated for its services as Officers,
but the Company shall reimburse the Initial Members for all ordinary, necessary, and direct expenses incurred by the Initial Members
on behalf of the Company in carrying out the Company Business activities, including, without limitation, salaries of officers and employees
of the Company who are carrying out the Company Business activities. All reimbursements for expenses shall be reasonable in amount and
accompanied by vouchers or other evidence of the incurrence of such expenses.

 

Section
7.05 No Personal Liability. Except as otherwise provided in NRS, by Applicable Law, or expressly in this Agreement, the members of
the Initial Members will not be obligated personally for any debt, obligation, or liability of the Company, whether arising in contract,
tort, or otherwise, solely by reason of being or acting as a Initial Members.

 

ARTICLE VIII

Transfers

 

 

 

 

    	 	26	 

     

    

 

 

Section 8.01 General Restrictions
on Transfer.

 

(a)           
Except as permitted pursuant to Section 8.02 or in accordance with the procedures set forth in this Section 9.01, no Member shall
Transfer all or any portion of its Membership Interest in the Company, except with the written consent of the Majority Members. No Transfer
of Membership Interests to a Person not already a Member of the Company shall be deemed completed until the prospective Transferee is
admitted as a Member of the Company in accordance with Section 4.01(b) hereof.

 

(b)          
Notwithstanding any other provision of this Agreement (including Section 8.02), each Member agrees that it will not Transfer all
or any portion of its Membership Interest in the Company, and the Company agrees that it shall not issue any Membership Interests:

 

(i)            
except as permitted under the Securities Act and other applicable federal or state securities or blue sky laws, and then, with
respect to a Transfer of Membership Interests, only upon delivery to the Company of an opinion of counsel in form and substance satisfactory
to the Company to the effect that such Transfer may be effected without registration under the Securities Act;

 

(ii)           
if such Transfer or issuance would cause the Company to be considered a "publicly traded partnership" under Section
7704(b) of the Code within the meaning of Treasury Regulations Section 1.7704-1(h)(1)(ii), including the look-through rule in Treasury
Regulations Section 1.7704-1(h)(3);

 

(iii)          
if such Transfer or issuance would affect the Company's existence or qualification as a limited liability company under NRS;

 

(iv)           
if such Transfer or issuance would cause the Company to lose its status as a partnership for federal income tax purposes;

 

(v)           
if such Transfer or issuance would cause the Company to be required to register as an investment company under the Investment
Company Act of 1940, as amended; or

 

(vi)          
if such Transfer or issuance would cause the assets of the Company to be deemed "Plan Assets" as defined under the Employee
Retirement Income Security Act of 1974 or its accompanying regulations or result in any "prohibited transaction" thereunder
involving the Company.

 

(c)            
Any Transfer or attempted Transfer of any Membership Interest in violation of this Agreement shall be null and void, no such Transfer
shall be recorded on the Company's books and the purported Transferee in any such Transfer shall not be treated (and the purported Transferor
shall continue to be treated) as the owner of such Membership Interest for all purposes of this Agreement.

 

(d)          
For the avoidance of doubt, any Transfer of a Membership Interest permitted by this Agreement shall be deemed a sale, transfer,
assignment, or other disposal of such Membership Interest in its entirety as intended by the parties to such Transfer, and shall not
be deemed a sale, transfer, assignment, or other disposal of any less than all of the rights and benefits described in the definition
of the term "Membership Interest," unless otherwise explicitly agreed to by the parties to such Transfer.

 

 

 

    	 	27	 

     

    

 

 

Section
8.02 Permitted Transfers. The provisions of Section 8.01(a) shall not apply to any Transfer by any Member of all or any portion of
its Membership Interest to any of the following:

 

 (a)            Any Affiliate of such Member; or

 

(b)            (i) Such Member's Spouse, parent, siblings, descendants
(including adoptive relationships and stepchildren), and the Spouses of each such natural person (collectively, "Family
Members"), (ii) a trust under which the distribution of Membership Interests may be made only to such Member or any Family
Member of such Member, (iii) a charitable remainder trust, the income from which will be paid to such Member during his life, (iv) a
corporation, partnership, or limited liability company, the shareholders, partners, or members of which are only such Member or
Family Members of such Member, or (v) by will or by the laws of intestate succession, to such Member's executors, administrators,
testamentary trustees, legatees, or beneficiaries.

 

Section 8.03
Purchase by Member on Termination of Marital Relationship.

 

(a)          
If the Marital Relationship of a Member is terminated by death of the Member's Spouse or by Divorce, and the Member does not succeed
to all of the Spouse's interest in the Membership Interests held by the Member at such time (the "Spouse's Interest,"
regardless of whether the interest is characterized as community, quasi- community, or separate property, or as property held as joint
tenants), then the Spouse or Spouse's estate shall offer to sell to the Member, and the Member may purchase, the Spouse's Interest in
such Membership Interests for the Spousal Purchase Price set forth in Section 8.03(c).

 

(b)           
Any Membership Interest held by a Member as a trustee of a trust as a result of the death of the Spouse or the Member's Divorce
from the Spouse shall be treated as owned by the Member for purposes of this Agreement.

 

(c)           
The term "Spousal Purchase Price" means the cash price that a willing buyer having all relevant knowledge would pay
a willing seller in an arm's length transaction. The buyer and seller shall use their best efforts to mutually agree in good faith on
the Spousal Purchase Price.

 

ARTICLE IX

Indemnification

 

Section 9.01 Covered Persons.

 

 

 

 

    	 	28	 

     

    

 

 

(a)           Covered
Persons. As used herein, the term "Covered Person" shall mean (i) each Member, including the Initial Members, (ii)
each officer, director, shareholder, partner, member, manager, Affiliate, employee, agent, or Representative of each Member, and each
of their respective Affiliates, and (iii) each Initial Members, Officer, employee, agent, or Representative of the Company.

 

(b)         
Indemnification. To the fullest extent permitted under NRS (after waiving all NRS restrictions on indemnification other
than those which cannot be eliminated or modified under NRS), as the same now exists or may hereafter be amended, substituted, or replaced
(but, in the case of any such amendment, substitution, or replacement, only to the extent that such amendment, substitution, or replacement
permits the Company to provide broader indemnification rights than NRS permitted the Company to provide before such amendment, substitution,
or replacement), the Company shall indemnify, hold harmless, defend, pay, and reimburse any Covered Person against any and all losses,
claims, damages, judgments, fines, or liabilities, including reasonable legal fees or other expenses incurred in investigating or defending
against such losses, claims, damages, judgments, fines, or liabilities, and any amounts expended in settlement of any claims (collectively,
"Losses") to which such Covered Person may become subject by reason of:

 

(i)            
any act or omission or alleged act or omission performed or omitted to be performed on behalf of the Company, any Member, the
Initial Members, or any of their respective direct or indirect Subsidiaries in connection with the business of the Company; or

 

(ii)           
such Covered Person being or acting in connection with the business of the Company as a member, shareholder, partner, Affiliate,
manager, director, officer, employee, agent, or Representative of the Company, any Member, the Initial Members, or any of their respective
Affiliates, or such Covered Person serving or having served at the request of the Company as a member, manager, director, officer, employee,
agent, or Representative of any Person including the Company; provided, that such Loss did not arise from (a) the Covered Person's conduct
involving bad faith, willful or intentional misconduct, or a knowing violation of law, (b) a transaction from which such Covered Person
derived an improper personal benefit, (c) a circumstance under which the liability provisions for improper distributions of Section 17704.06
of NRS are applicable, or (d) a breach of such Covered Person's duties or obligations under Section 17704.09 of NRS (taking into account
any restriction, expansion, or elimination of such duties and obligations provided for in this Agreement).

 

(c)           
Control of Defence. On a Covered Person's discovery of any claim, lawsuit, or other proceeding relating to any Losses for
which such Covered Person may be indemnified pursuant to this Section 9.01, the Covered Person shall give prompt written notice to the
Company of such claim, lawsuit, or proceeding; provided, that the failure of the Covered Person to provide such notice shall not relieve
the Company of any indemnification obligation under this Section 9.01, unless the Company shall have been materially prejudiced thereby.
Subject to the approval of the disinterested Members, the Company shall be entitled to participate in or assume the defence of any such
claim, lawsuit, or proceeding at its own expense. After notice from the Company to the Covered Person of its election to assume the defence
of any such claim, lawsuit, or proceeding, the Company shall not be liable to the Covered Person under this Agreement or otherwise for
any legal or other expenses subsequently incurred by the Covered Person in connection with investigating, preparing to defend, or defending
any such claim, lawsuit, or other proceeding. If the Company does not elect (or fails to elect) to assume the defence of any such claim,
lawsuit, or proceeding, the Covered Person shall have the right to assume the defence of such claim, lawsuit, or proceeding as it deems
appropriate, but it shall not settle any such claim, lawsuit, or proceeding without the consent of the holders of a majority of the Membership
Interests held by the disinterested Members (which consent shall not be unreasonably withheld, conditioned, or delayed).

 

 

 

 

    	 	29	 

     

    

 

 

(d)          
Reimbursement. The Company shall promptly reimburse (or advance to the extent reasonably required) each Covered Person
for reasonable legal or other expenses (as incurred) of such Covered Person in connection with investigating, preparing to defend, or
defending any claim, lawsuit, or other proceeding relating to any Losses for which such Covered Person may be indemnified pursuant to
this Section 9.01; provided, that if it is finally judicially determined that such Covered Person is not entitled to the indemnification
provided by this Section 9.01, then such Covered Person shall promptly reimburse the Company for any reimbursed or advanced expenses.

 

(e)            Entitlement
to Indemnity. The indemnification provided by this Section 9.01 shall not be deemed exclusive of any other rights to indemnification
to which those seeking indemnification may be entitled under any agreement or otherwise. The provisions of this Section 9.01 shall continue
to afford protection to each Covered Person regardless of whether such Covered Person remains in the position or capacity pursuant to
which such Covered Person became entitled to indemnification under this Section 9.01 and shall inure to the benefit of the executors,
administrators, legatees, and distributees of such Covered Person.

 

(f)            
Insurance. To the extent available on commercially reasonable terms, the Company may purchase, at its expense, insurance
(i) to cover Losses covered by the indemnification provisions contained in this ARTICLE IX, and (ii) to otherwise cover Losses for any
breach or alleged breach by any Covered Person of such Covered Person's duties whether or not covered by the foregoing indemnifications,
in each case, in such amount and with such deductibles as the Members may reasonably determine; provided, that the failure to obtain
such insurance shall not affect the right to indemnification of any Covered Person under the indemnification provisions contained in
this ARTICLE IX, including the right to be reimbursed or advanced expenses or otherwise indemnified for Losses hereunder. If any Covered
Person recovers any amounts in respect of any Losses from any insurance coverage, then such Covered Person shall, to the extent that
such recovery is duplicative, reimburse the Company for any amounts previously paid to such Covered Person by the Company in respect
of such Losses.

 

(g)           
Funding of Indemnification Obligation. Notwithstanding anything contained herein to the contrary, any indemnity by the
Company relating to the matters covered in this Section 9.01 shall be provided out of and to the extent of Company assets only, and no
Member (unless such Member otherwise agrees in writing) shall have personal liability on account thereof or shall be required to make
additional Capital Contributions to help satisfy such indemnity by the Company.

 

 

 

 

    	 	30	 

     

    

 

 

(h)           
Savings Clause. If this Section 9.01 or any portion hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify and hold harmless each Covered Person pursuant to this Section 9.01 to the
fullest extent permitted by any applicable portion of this Section 9.01 that shall not have been invalidated and to the fullest extent
permitted by Applicable Law.

 

(i)            
Amendment. The provisions of this Section 9.01 shall be a contract between the Company, on the one hand, and each Covered
Person who served in such capacity at any time while this Section 9.01 is in effect, on the other hand, pursuant to which the Company
and each such Covered Person intend to be legally bound. No amendment, modification, or repeal of this Section 9.01 that adversely affects
the rights of a Covered Person to indemnification for Losses incurred or relating to a state of facts existing before such amendment,
modification, or repeal shall apply in such a way as to eliminate or reduce such Covered Person's entitlement to indemnification for
such Losses without the Covered Person's prior written consent.

 

Section 9.02 Survival.
The provisions of this ARTICLE IX shall survive the dissolution, liquidation, winding up, and termination of the Company.

 

ARTICLE X

Accounting: Tax Matters

 

Section 10.01 Financial
Statements. The Company shall furnish to each Member the following reports:

 

(a)           
Annual Financial Statements. As soon as available, and in any event within 120 days after the end of each Fiscal Year,
audited consolidated balance sheets of the Company as of the end of each such Fiscal Year and audited consolidated statements of income,
cash flows, and Members' equity for such Fiscal Year, in each case setting forth in comparative form the figures for the previous Fiscal
Year, accompanied by the certification of independent certified public accountants of recognized national standing selected by the Members,
certifying to the effect that, except as set forth therein, such financial statements have been prepared in accordance with GAAP, applied
on a basis consistent with prior years, and fairly present in all material respects the financial condition of the Company as of the
dates thereof and the results of their operations and changes in their cash flows and Members' equity for the periods covered thereby.

 

(b)           
Quarterly Financial Statements. As soon as available, and in any event within 45 days after the end of each quarterly accounting
period in each Fiscal Year (other than the last fiscal quarter of the Fiscal Year), unaudited consolidated balance sheets of the Company
as of the end of each such fiscal quarter and for the current Fiscal Year to date and unaudited consolidated statements of income, cash
flows, and Members' equity for such fiscal quarter and for the current Fiscal Year to date, in each case setting forth in comparative
form the figures for the corresponding periods of the previous fiscal quarter, all in reasonable detail and all prepared in accordance
with GAAP, consistently applied (subject to normal year-end audit adjustments and the absence of notes thereto), and certified by the
principal financial or accounting Officer of the Company.

 

 

 

 

    	 	31	 

     

    

 

 

(c)           
Monthly Financial Statements. As soon as available, and in any event within 30 days after the end of each monthly accounting
period in each fiscal quarter (other than the last month of the fiscal quarter), unaudited consolidated balance sheets of the Company
as of the end of each such monthly period and for the current Fiscal Year to date and unaudited consolidated statements of income, cash
flows, and Members' equity for each such monthly period and for the current Fiscal Year to date, all in reasonable detail and all prepared
in accordance with GAAP, consistently applied (subject to normal year-end audit adjustments and the absence of notes thereto).

 

Section
10.02 Inspection Rights. Upon reasonable notice from a Member or Permitted Transferee, the Company shall afford the Member or Permitted
Transferee and each of its respective Representatives access during normal business hours to (i) the Company's properties, offices, plants,
and other facilities, (ii) the corporate, financial, and similar records, reports, and documents of the Company, including, without limitation,
all books and records, minutes of proceedings, internal management documents, reports of operations, reports of adverse developments,
copies of any management letters, and communications with Members and Permitted Transferees (including the Initial Members), and permit
the Member or Permitted Transferee and each of its respective Representatives to examine such documents and make copies thereof, and
(iii) any Officers, senior employees, and public accountants of the Company, and afford the Member or Permitted Transferee and each of
its respective Representatives the opportunity to discuss and advise on the affairs, finances, and accounts of the Company with such
Officers, senior employees, and public accountants (and the Company hereby authorizes said accountants and other Persons to discuss with
such Member or Permitted Transferee and its Representatives such affairs, finances, and accounts); in each case, to the extent such information
is for a purpose reasonably related to the Member's or Permitted Transferee's interest as a Member or Permitted Transferee.

 

Section
10.03 Income Tax Status. It is the intent of the Company and the Members that the Company shall be treated as a partnership for U.S.,
federal, state, and local income tax purposes. Neither the Company, the Initial Members, nor any Member shall make an election for the
Company to be classified as other than a partnership pursuant to Treasury Regulations Section 301.7701-3.

 

Section 10.04 Tax Matters
Representative.

 

(a)          
Appointment. The Members hereby appoint Kevin Vassily as "partnership representative" as provided in Code Section
6223(a) (the "Tax Matters Representative"). The Tax Matters Representative can be removed at any time by a vote of the
Initial Members. In the event of the resignation or removal of the Tax Matters Representative, the Initial Members shall select a replacement
Tax Matters Representative.

 

 

 

 

    	 	32	 

     

    

 

 

(b)          
Tax Examinations and Audits. The Tax Matters Representative shall promptly notify the Members in writing of the commencement
of any tax audit of the Company, upon receipt of a tax assessment and upon receipt of a notice of final partnership adjustment, and shall
keep the Members reasonably informed of the status of any tax audit and resulting administrative and judicial proceedings. Without the
consent of the Majority Members, the Tax Matters Representative shall not extend the statute of limitations, file a request for administrative
adjustment, file suit relating to any Company tax refund or deficiency, or enter into any settlement agreement relating to items of income,
gain, loss, or deduction of the Company with any Taxing Authority.

 

(c)           
US Federal Tax Proceedings. Unless otherwise approved by the Members, the Tax Matters Representative will cause the Company
to annually elect out of the partnership audit procedures set forth in Subchapter C of Chapter 63 of the Code (the "Revised Partnership
Audit Rules") to the extent permitted by applicable law and regulations. For any year in which applicable law and regulations
do not permit the Company to elect out of the Revised Partnership Audit Rules, then within forty-five (45) days of any notice of final
partnership adjustment, the Tax Matters Representative will cause the Company to elect the alternative procedure under Code Section 6226,
and furnish to the Internal Revenue Service and each Member during the year or years to which the notice of final partnership adjustment
relates a statement of the Member's share of any adjustment set forth in the notice of final partnership adjustment.

 

(d)           
Tax Returns and Tax Deficiencies. Each Member agrees that such Member shall not treat any Company item inconsistently on
such Member's federal, state, foreign, or other income tax return with the treatment of the item on the Company's return. Any deficiency
for taxes imposed on any Member (including penalties, additions to tax, or interest imposed with respect to such taxes and taxes imposed
pursuant to Code Section 6226) shall be paid by such Member and if required to be paid (and actually paid) by the Company, will be recoverable
from such Member as provided in Section 6.03(c).

 

(e)           
Section 754 Election. The Tax Matters Representative will make an election under Code Section 754, if requested in writing
by another Member.

 

(f)            
Indemnification. The Company shall defend, indemnify, and hold harmless the Tax Matters Representative against any and
all liabilities sustained as a result of any act or decision concerning Company tax matters and within the scope of such Member's responsibilities
as Tax Matters Representative, so long as such act or decision was done or made in good faith and does not constitute gross negligence
or wilful misconduct.

 

Section 10.05 Tax Returns.
At the expense of the Company, the Members (or any Officer that they may designate pursuant to Section 7.01) shall endeavour to cause
the preparation and timely filing (including extensions) of all tax returns required to be filed by the Company pursuant to the Code
as well as all other required tax returns in each jurisdiction in which the Company owns property or does business. No later than 90
days after the end of each Fiscal Year, the Initial Members or designated Officer will cause to be delivered to each Person who was a
Member or Permitted Transferee at any time during such Fiscal Year, such written information as may be necessary for the preparation
of such Person's federal, state and local income tax returns for such Fiscal Year. As soon as reasonably possible after the end of each
Fiscal Year, the Initial Members or designated Officer will cause to be delivered to each Person who was a Member or Permitted Transferee
at any time during such Fiscal Year, IRS Schedule K-1 to Form 1065.

 

 

 

 

    	 	33	 

     

    

 

 

Section
10.06 Company Funds. All funds of the Company shall be deposited in its name, or in such name as may be designated by the Majority
Members, in such checking, savings, or other accounts, or held in its name in the form of such other investments as shall be designated
by the Members. The funds of the Company shall not be commingled with the funds of any other Person. All withdrawals of such deposits
or liquidations of such investments by the Company shall be made exclusively on the signature or signatures of such Officer or Officers
as the Majority Members may designate.

 

ARTICLE XI

Dissolution and Liquidation

 

Section
11.01 Events of Dissolution. The Company shall be dissolved and its affairs wound up only on the occurrence of any of the following
events:

 

(a)           
An election to dissolve the Company made by the Initial Members; provided, that if the TPA financial covenants are not complied
with within 18 months from the Effective Date, the Company may be dissolved by IPW;

 

(b)          
At the election of the non-defaulting Member(s), in its/their sole discretion, if a Member breaches any material covenant, duty,
or obligation under this Agreement, which breach (if capable of cure) remains uncured for 30 days after written notice of such breach
was received by the defaulting Member.

 

(c)           
Passage of 90 consecutive days during which the Company has no Members; provided that the Membership Interest of a natural person
who is the sole Member may pass, by will or Applicable Law, to the Member's heirs, successors, or assigns pursuant to Section 17707.01(c)
of NRS; or

 

(d)            The entry of
a decree of judicial dissolution under Section 17707.03 of NRS.

 

Section
11.02 Effectiveness of Dissolution. Dissolution of the Company shall be effective on the day on which the event described in Section
11.01 occurs. On the occurrence of an event described in Section 11.01, the Liquidator (or, in the case of a dissolution pursuant to
Section 11.01(c), the persons conducting the winding up of the Company's affairs pursuant to Section 17707.04 of NRS) shall file a certificate
of dissolution with the California Secretary of State pursuant to Section 17707.08 of NRS, unless such a filing is not required by NRS,
but the Company shall not terminate until the winding up of the Company has been completed, the assets of the Company have been distributed
as provided in Section 11.03, and the Articles of Organization shall have been cancelled as provided in Section 11.04.

 

 

 

 

    	 	34	 

     

    

 

 

Section
11.03 Liquidation. If the Company is dissolved pursuant to Section 11.01, the Company shall be liquidated and its business and affairs
wound up in accordance with NRS and the following provisions:

 

(a)            
Liquidator. Stephen A. Weiss, Esq. or another partner of Michelman & Robinson, LLP designated by him shall act as liquidator
to wind up the Company (the “Liquidator”), unless the Company is being dissolved pursuant to Section 11.01(b) based
on the breach of the Liquidator, in which case the Liquidator shall be a Person selected by the unanimous consent of the non-defaulting
Member(s), in its/their sole discretion. The Liquidator shall have full power and authority to sell, assign, and encumber any or all
of the Company's assets and to wind up and liquidate the affairs of the Company in an orderly and business-like manner.

 

(b)           
Notice of Liquidation. The Liquidator (or other persons winding up the affairs of the Company pursuant to Section 11.02)
shall give written notice of the commencement of winding up by mail to all known creditors and claimants whose addresses appear on the
records of the Company.

 

(c)           
Accounting. As promptly as possible after dissolution and again after final liquidation, the Liquidator shall cause a proper
accounting to be made by a recognized firm of certified public accountants of the Company's assets, liabilities, and operations through
the last day of the calendar month in which the dissolution occurs or the final liquidation is completed, as applicable.

 

(d)           
Distribution of Proceeds. The Liquidator shall liquidate the assets of the Company and distribute the proceeds of such
liquidation in the following order of priority, unless otherwise required by mandatory provisions of Applicable Law:

 

(i)            
First, to the payment of all of the Company's known debts and liabilities (including debts and liabilities to Members who are
creditors, if applicable) and the expenses of liquidation (including sales commissions incident to any sales of assets of the Company);

 

(ii)           
Second, to the establishment of and additions to reserves that are determined by the Liquidator to be reasonably necessary for
any contingent unknown liabilities or obligations of the Company; and

 

(iii)          
Third, to the Members, on a pro rata basis, in accordance with the positive balances in their respective Capital Accounts, as
determined after taking into account all Capital Account adjustments for the taxable year of the Company during which the liquidation
of the Company occurs.

 

(e)           
Discretion of Liquidator. Notwithstanding the provisions of Section 11.03(d) that require the liquidation of the assets
of the Company, but subject to the order of priorities set forth in Section 11.03(d), if on dissolution of the Company the Liquidator
reasonably determines that an immediate sale of part or all of the Company's assets would be impractical or could cause undue loss to
the Members, the Liquidator may defer the liquidation of any assets except those necessary to satisfy Company liabilities and reserves,
and may, upon the consent of the Majority Members, distribute to the Members, in lieu of cash, as tenants in common and in accordance
with the provisions of Section 11.03(d), undivided interests in such Company assets as the Liquidator deems not suitable for liquidation.
Any such distribution in kind shall be subject to such conditions relating to the disposition and management of such properties as the
Liquidator deems reasonable and equitable and to any agreements governing the operating of such properties at such time. For purposes
of any such distribution, any property to be distributed will be valued at its Fair Market Value.

 

 

 

 

    	 	35	 

     

    

 

 

Section
11.04 Certificate of Cancellation; Cancellation of Foreign Qualifications. On completion of the distribution of the assets of the
Company as provided in Section 11.03(d) hereof, the Liquidator shall file a certificate of cancellation with the California Secretary
of State and shall cause the cancellation of all qualifications and registrations of the Company as a foreign limited liability company
in jurisdictions other than the State of California and shall take such other actions as may be necessary to terminate the Company.

 

Section
11.05 Survival of Rights, Duties, and Obligations. Dissolution, liquidation, winding up, or termination of the Company for any reason
shall not release any party from any Loss that at the time of such dissolution, liquidation, winding up, or termination already had accrued
to any other party or thereafter may accrue in respect of any act or omission before such dissolution, liquidation, winding up, or termination.
For the avoidance of doubt, none of the foregoing shall replace, diminish, or otherwise adversely affect any Member's right to indemnification
pursuant to ARTICLE IX.

 

Section
11.06 Recourse for Claims. Each Member shall look solely to the assets of the Company for all distributions with respect to the Company,
such Member's Capital Account, and such Member's share of Net Income, Net Loss, and other items of income, gain, loss, and deduction,
and shall have no recourse therefor (upon dissolution or otherwise) against the Liquidator or any other Member.

 

Section
11.07 Continuation. After a certificate of dissolution has been filed but before a certificate of cancellation has been filed, Members
holding a majority of the Membership Interests may continue the Company by filing a certificate of continuation with the California Secretary
of State if (a) the remaining Members unanimously vote to continue the Company's business, (b) the dissolution of the Company was by
a vote of the Members pursuant to Section 11.01(a) and each Member who voted in favor of dissolution agrees in writing to revoke that
vote, or (c) the Company was not actually dissolved.

 

ARTICLE XII

Miscellaneous

 

Section
12.01 Expenses. Except as otherwise expressly provided herein, all costs and expenses, including fees and disbursements of counsel,
financial advisors, and accountants, incurred in connection with the preparation and execution of this Agreement, or any amendment or
waiver hereof, and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

 

 

 

 

    	 	36	 

     

    

 

 

Section 12.02 Further Assurances. In connection with
this Agreement and the transactions contemplated hereby, the Company and each Member hereby agrees, at the request of the Company or
any other Member, to execute and deliver such additional documents, instruments, conveyances, and assurances and to take such further
actions as may be required to carry out the provisions hereof and give effect to the transactions contemplated hereby.

 

Section 12.03 Confidentiality.

 

(a)           
Each Member acknowledges that during the term of this Agreement, it will have access to and become acquainted with trade secrets,
proprietary information, and confidential information belonging to the Company and its Affiliates that are not generally known to the
public, including, but not limited to, information concerning business plans, financial statements, and other information provided pursuant
to this Agreement, operating practices and methods, expansion plans, strategic plans, marketing plans, contracts, customer lists, or
other business documents that the Company treats as confidential, in any format whatsoever (including oral, written, electronic, or any
other form or medium) (collectively, "Confidential Information"). In addition, each Member acknowledges that (i) the
Company has invested, and continues to invest, substantial time, expense, and specialized knowledge in developing its Confidential Information,
(ii) the Confidential Information provides the Company with a competitive advantage over others in the marketplace, and (iii) the Company
would be irreparably harmed if the Confidential Information were disclosed to competitors or made available to the public. Without limiting
the applicability of any other agreement to which any Member is subject, no Member shall, directly or indirectly, disclose or use (other
than solely for the purposes of such Member monitoring and analyzing its investment in the Company) at any time, including, without limitation,
use for personal, commercial, or proprietary advantage or profit, either during its association with the Company or thereafter, any Confidential
Information of which such Member is or becomes aware. Each Member in possession of Confidential Information shall take all appropriate
steps to safeguard such information and to protect it against disclosure, misuse, espionage, loss, and theft.

 

(b)           
Nothing contained in Section 12.03(a) shall prevent any Member from disclosing Confidential Information (i) on the order of any
court or administrative agency, (ii) on the request or demand of any regulatory agency or authority having jurisdiction over such Member,
(iii) to the extent compelled by legal process or required or requested pursuant to subpoena, interrogatories, or other discovery requests,
(iv) to the extent necessary in connection with the exercise of any remedy hereunder, (v) to any other Member, the Initial Members, or
the Company, (vi) to such Member's Representatives who, in the reasonable judgment of such Member, need to know such Confidential Information
and agree to be bound by the provisions of this Section 12.03 as if a Member, or (vii) to any potential Permitted Transferee in connection
with a proposed Transfer of Membership Interests from such Member, if such potential Permitted Transferee agrees in writing to be bound
by the provisions of this Section 12.03 as if a Member before receiving such Confidential Information; provided, that in the case of
clause (i), (ii), or (iii), such Member shall notify the Company and other Members of the proposed disclosure as far in advance of such
disclosure as practicable (but in no event make any such disclosure before notifying the Company and other Members) and use reasonable
efforts to ensure that any Confidential Information so disclosed is accorded confidential treatment satisfactory to the Company, when
and if available.

 

 

    	 	37	 

     

    

 

 

(c)           
The restrictions of Section 12.03(a) shall not apply to Confidential Information that (i) is or becomes generally available to
the public other than as a result of a disclosure by a Member in violation of this Agreement, (ii) is or has been independently developed
or conceived by such Member without use of Confidential Information, or (iii) becomes available to such Member or any of its Representatives
on a non-confidential basis from a source other than the Company, the other Members, or any of their respective Representatives; provided,
that such source is not known by the receiving Member to be bound by a confidentiality agreement regarding the Company.

 

(d)          
The obligations of each Member under this Section 12.03 shall survive (i) the termination, dissolution, liquidation, and winding
up of the Company, (ii) the dissociation of such Member from the Company, and (iii) such Member's Transfer of its Membership Interests.

 

Section
12.04 Notices. All notices, requests, consents, claims, demands, waivers, and other communications hereunder shall be in writing
and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt), (b) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested), (c) on the date sent by facsimile or email of a PDF document
(with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after
normal business hours of the recipient, or (d) on the third Business Day after the date mailed, by certified or registered mail, return
receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such
other address for a party as shall be specified in a notice given in accordance with this Section 12.03):

 

	 	If to the Company:	Box
Harmony, LLC 
	 	 	c/o iPower Inc.
	 	 	2399 Bateman Avenue
	 	 	Duarte, CA 91010
	 	 	Attn: Chenlong Tan
	 	 	Email: Law.t@meetipower.com

	 	 	 
	 	 	 
	 	If to Xiao	Bin Xiao, President
	 	 	Box Harmony, LLC
	 	 	8798 9th Street, Building C
	 	 	Rancho Cucamonga, CA
	 	 	 
	 	If to IPW	iPower Inc.
	 	 	2399 Bateman Avenue
	 	 	Duarte, CA 91010
	 	 	Attn: Chenlong Tan
	 	 	Email: Law.t@meetipower.com

 

 

 

    	 	38	 

     

    

 

 

	 	with a copy (which shall not constitute notice) to:	Michelman & Robinson, LLP
	 	 	10880 Wilshire Boulevard, 19th floor
	 	 	Los Angeles, CA 90024
	 	 	Attention: Stephen A. Weiss, Esq.
	 	 	Tel: (424) 365-6120
	 	 	Email: sweiss@mrllp.com
	 	 	 
	 	If to TPA:	Titanium Plus Autoparts Inc.
	 	 	4271 Don Julian Road
	 	 	City of Industry, CA 91746
	 	 	Attn: Tony Chiu, President
	 	 	Tel:
	 	 	Email:
	 	 	 
	 	with a copy (which shall not constitute notice) to:	To be furnished

 

Section
12.05 Headings. The headings in this Agreement are inserted for convenience or reference only and are in no way intended to describe,
interpret, define, or limit the scope, extent, or intent of this Agreement or any provision of this Agreement.

 

Section
12.06 Severability. If any term or provision of this Agreement is held to be invalid, illegal, or unenforceable under Applicable
Law in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement
or invalidate or render unenforceable such term or provision in any other jurisdiction. Except as provided in Section 9.01(h), on such
determination that any term or other provision is invalid, illegal, or unenforceable, 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 a mutually acceptable manner in
order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

Section
12.07 Entire Agreement. This Agreement, together with the Articles of Organization and all related Exhibits and Schedules, constitutes
the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersedes
all prior and contemporaneous understandings, agreements, records, representations, and warranties, both written and oral, whether express
or implied, with respect to such subject matter.

 

Section
12.08 Successors and Assigns. Subject to the restrictions on Transfers set forth herein, this Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, and permitted assigns.
This Agreement may not be assigned by any Member except as permitted by this Agreement and any assignment in violation of this Agreement
shall be null and void.

 

 

 

 

    	 	39	 

     

    

 

 

Section
12.09 No Third-Party Beneficiaries. Except as provided in ARTICLE IX, which shall be for the benefit of and enforceable by Covered
Persons as described therein, this Agreement is for the sole benefit of the parties hereto (and their respective heirs, executors, administrators,
successors, and permitted assigns) and nothing herein, express or implied, is intended to or shall confer upon any other Person, including
any creditor of the Company, any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section
12.10 Amendment. Subject to Section 7.01 and except as otherwise provided by this Agreement, no provision of this Agreement may be
amended or modified except by an instrument in writing executed by the Company and the Majority Members. Any such written amendment or
modification will be binding upon the Company and each Member.

 

Section
12.11 Waiver. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and
signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach, or
default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or
after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power, or privilege arising from this Agreement
shall operate or be construed as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power, or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege. For the avoidance
of doubt, nothing contained in this Section 12.12 shall diminish any of the explicit and implicit waivers described in this Agreement,
including in this Agreement hereof.

 

Section
12.12 Governing Law. All issues and questions concerning the application, construction, validity, interpretation, and enforcement
of this Agreement shall be governed by and construed in accordance with the internal laws of the State of California, without giving
effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction) that would cause
the application of laws of any jurisdiction other than those of the State of California.

 

Section 12.13 Submission
to Jurisdiction. The parties hereby agree that any suit, action, or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions contemplated hereby, whether in contract, tort, or otherwise,
shall be brought in the United States District Court for the Southern District of California or, if such court does not have subject
matter jurisdiction, the courts of the State of California sitting in Los Angeles County, and any appellate court from any thereof, and
that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of
California. Each of the parties hereby irrevocably consents to the jurisdiction of such courts in any such suit, action, or proceeding
and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the
venue of any such suit, action, or proceeding in any such court or that any such suit, action, or proceeding that is brought in any such
court has been brought in an inconvenient form. Service of process, summons, notice, or other document by registered mail to the address
set forth in Section 12.04 shall be effective service of process for any suit, action, or other proceeding brought in any such court.

 

 

 

    	 	40	 

     

    

 

 

Section
12.14 Equitable Remedies. Each party hereto acknowledges that a breach or threatened breach by such party of any of its obligations
under this Agreement would give rise to irreparable harm to the other parties, for which monetary damages would not be an adequate remedy,
and hereby agrees that in the event of a breach or a threatened breach by such party of any such obligations, each of the other parties
hereto shall, in addition to any and all other rights and remedies that may be available to them in respect of such breach, be entitled
to equitable relief, including a temporary restraining order, an injunction, specific performance, and any other relief that may be available
from a court of competent jurisdiction (without any requirement to post bond).

 

Section
12.15 Attorneys' Fees. If any party hereto institutes any legal suit, action, or proceeding, including arbitration, against another
party in respect of a matter arising out of or relating to this Agreement, the prevailing party in the suit, action, or proceeding shall
be entitled to receive, in addition to all other damages to which it may be entitled, the costs incurred by such party in conducting
the suit, action, or proceeding, including reasonable attorneys' fees and expenses and court costs.

 

Section
12.16 Remedies Cumulative. The rights and remedies under this Agreement are cumulative and are in addition to and not in substitution
for any other rights and remedies available at law or in equity or otherwise, except to the extent expressly provided herein to the contrary.

 

Section
12.17 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together
shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, email, or other means of Electronic
Transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

Section
12.18 Spousal Consent. Each Member who has a Spouse on the date of this Agreement shall cause such Member's Spouse to execute and
deliver to the Company a spousal consent in the form of Schedule B hereto (a "Spousal Consent"), pursuant to
which the Spouse acknowledges that he or she has read and understood the Agreement and agrees to be bound by its terms and conditions.
If any Member should marry or engage in a Marital Relationship following the date of this Agreement, such Member shall cause his or her
Spouse to execute and deliver to the Company a Spousal Consent within ten (10) Business Days/days thereof.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

    	 	41	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly
authorized.

 

The Company:

 

	Box Harmony, LLC	 
	a Nevada limited liability company	 
	By: Titanium Plus Autoparts, Inc., a Member	 
	 	 
	 	 
	By:	 /s/ Tony Chiu	 
	Name:	Tony Chiu	 
	Title:	President	 
	 	 
	The Initial Members:	 
	 	 
	iPower Inc.	 
	a Nevada corporation	 
	 	 
	By:	 /s/ Chenlong Tan	 
	Chenlong Tan, CEO	 
	 	 
	/s/ Bin Xiao	 
	Bin Xiao	 
	 	 
	 	 
	Titanium Plus Autoparts, Inc.	 
	a [California] corporation	 
	 	 
	 	 
	By:	/s/ Tony Chiu	 
	 	Tony Chiu, President and Stockholder	 

  

 

 

Signature Page to Limited
Liability Company Operating Agreement

of

Box Harmony, LLC

 

 

 

    	 	42	 

     

    

 

SCHEDULE A

 

MEMBERS SCHEDULE

 

	Member Name, Address, and Email	Capital Contribution	Percentage/Units of Membership Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	43	 

     

    

 

SCHEDULE B

 

FORM OF JOINDER AGREEMENT

 

Reference is
made to that certain Amended & Restated Limited Liability Company Operating Agreement of Box Harmony, LLC a Nevada limited liability
company (the “Company”), dated as of January , 2022, by and between the Company and the Members thereof, as
amended (as amended and restated, the “Operating Agreement”). Capitalized terms used but not otherwise defined
herein shall have the meanings ascribed to them in the Operating Agreement.

 

AS OF THE DATE SET FORTH BELOW, pursuant to the Operating
Agreement, the undersigned has acquired from [the Company][or__________ (the “Transferor”), _____percent (__
%) of the issued and outstanding Membership Interests of the Company (the “Acquired Interest”). By execution
and delivery of this Operating Agreement Joinder (this “Joinder”), the undersigned, with respect to the Acquired
Interest, does hereby consent and agree to become a party to, and to be bound by, the terms, covenants and obligations applicable to
Members as set forth in the Operating Agreement, which shall be deemed incorporated by this reference as if fully set forth herein. The
undersigned further agrees that all of the Membership Interests held, whether presently or in the future, by the undersigned are subject
to the Operating Agreement. The undersigned authorizes this Agreement to be attached to the Operating Agreement and shall execute any
other or further documentation so required to perfect the adoption of the Operating Agreement contemplated herein. Pursuant to the Operating
Agreement, the undersigned with respect to the Acquired Interest, shall have all rights and shall observe all obligations applicable
to Members as set forth in the Operating Agreement. In order to give effect to the transactions contemplated hereby, in accordance with
the Operating Agreement, it is requested that the Members amend Schedule A to the Operating Agreement to reflect the undersigned’s
acquisition of the Acquired Interest.

 

IN WITNESS
WHEREOF, the undersigned has read, understood and duly executed this Agreement, the Operating Agreement and all the schedules and
exhibits thereto, effective as of this __ day of ______, 202_ and has caused this Agreement to be duly executed.

 

 

 

 

	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	 

 

 

 

 

 

 

 

 

 

    	 	44	 

     

    

 

SCHEDULE C

 

FORM OF SPOUSAL

 

CONSENT
SPOUSAL CONSENT

 

I, ______________________,
spouse of ______________________, acknowledge that I have read the Limited Liability Company Agreement, dated as January, 2022, (as amended from time to time,
the “Operating Agreement”), by and among Box Harmony, LLC, a Nevada limited liability company (the “Company”),
and the Members named therein, to which this Consent is attached as Schedule B, and that I understand the contents of the Operating
Agreement. I am aware that my spouse is a party to the Operating Agreement and the Operating Agreement contains provisions regarding
the voting and transfer of Membership Interest (as defined in the Operating Agreement) of the Company which my spouse may own, including
any interest I might have therein.

 

I hereby
agree that I and any interest, including any community property interest, that I may have in any Membership Interest of the Company subject
to the Operating Agreement shall be irrevocably bound by the Operating Agreement, including any restrictions on the transfer or other
disposition of any Membership Interest or voting or other obligations as set forth in the Operating Agreement. I hereby appointas
my attorney-in-fact with respect to the exercise of any rights and obligations under the Operating Agreement.

 

This Consent
shall be binding on my executors, administrators, heirs, and assigns. I agree to execute and deliver such documents as may be necessary
to carry out the intent of the Operating Agreement and this Consent.

 

I am aware
that the legal, financial, and related matters contained in the Operating Agreement are complex and that I am free to seek independent
professional guidance or counsel with respect to this Consent. I have either sought such guidance or counsel or determined after reviewing
the Operating Agreement carefully that I will waive such right. I am under no disability or impairment that affects my decision to sign
this Consent and I knowingly and voluntarily intend to be legally bound by this Consent.

 

 

Dated as of: __________ __, 20__

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	45Exhibit 10.3

 

FACILITY AND USE ACCESS SUBLEASE AGREEMENT

 

This Facility and Use Access Sublease Agreement
(“Agreement”) of is entered into as of January __,13 2022 (the “Effective
Date”) by and among Box Harmony, LLC a Nevada limited liability company (the “Company” or the “Subtenant”)
and iPower Inc., a Nevada corporation (“IPW” or the “Sublandlord”).

 

RECITALS

 

WHEREAS, the Company
was formed as a limited liability company under the laws of the State of Nevada, when the Company's articles of organization (the “Articles
of Organization”) were filed by the Nevada Secretary of State on December [30], 2021;

 

WHEREAS, the Company
was formed for the purposes set forth with this Agreement. of the Limited Liability Operating Agreement of the Company (the “Limited
Liability Agreement”) dated of even date herewith;

 

WHEREAS, the Company
and the Initial Members (as defined in the Limited Liability Agreement) entered into a joint venture agreement, dated of even date herewith
(the “Joint Venture Agreement”);

 

WHEREAS, the Company,
Xiao and TPA entered into a consulting agreement, dated of even date herewith (the “Consulting Agreement”);

 

WHEREAS, the Company
and TPA entered into an intellectual property license agreement, dated of even date herewith (the “TPA License Agreement”);
and

 

WHEREAS, the parties
wish to enter into this Agreement setting forth the terms and conditions governing the right of the Company to have use and access to
the Facilities defined herein,

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Definitions.
Unless otherwise defined herein all capitalized terms, when used in this Agreement shall have the same meaning as they are defined
in the Limited Liability Agreement.

 

“City of Industry
Facility” means the 22,700 rentable square foot portion of the building located at the street address of 14750 E. Nelson Avenue,
Unit I, located in the City of Industry, County of LosAngeles, State of California 91744.

 

“City of Industry
Sublease” means the sublease between IPW, as sublandlord, and the Company as subtenant, the operative terms of which set forth
in this Agreement,, pursuant to which the Company has subleased and is given use and access to the number of square feet of Subleased
Premises at the City of Industry Facility and the Company, as subtenant has agreed to pay the Company Pro Rata Share of the Base Rent
and NNN Charges for the Subleased Premises, all of which are listed and described on Exhibit A annexed hereto and made a
part hereof.

 

“Closing Date”
shall mean the date of closing of the transactions contemplated by this Agreement and the Exhibits hereto which shall be two (2) business
days following the delivery to IPW of fully executed Master Landlord Consents.

 

“Exhibit A”
shall mean Exhibit A annexed to this Agreement (a) which shall be amended and updated from time to time by IPW and the Company
as, if and when, IPW gives the Company use and access to additional IPW Warehouse Locations, and (b) which shall (i) reflect the applicable
number of square feet of Subleased Premises that the Company is provided use and access to at each IPW Warehouse Location, (ii) the amount
and obligation of the Company, as subtenant, to pay the Subtenant’s Pro Rata Share of the Base Rent and NNN Charges for the Subleased
Premises, and (iii) the Term of such sublease and the related Sublease Expiration Date.

 

 

 

    	 	1	 

     

    

 

“IPW Warehouse Locations”
means (a) 2399 Bateman Ave., Irwindale, CA 91010, (b) 14750 E. Nelson Ave, Unit I, City of Industry, CA 91744, (c) 8798 9th Street, applicable
IPW Warehouse Facility C, Rancho Cucamonga, California 91730, and any other warehouse locations that IPW may lease or sublease following
the date of this Agreement and in which it may provide facility use and access to the Company.

 

“Master Landlord”
shall mean the owner or lessor of an IPW Warehouse Location that is or shall become subject to this Agreement. For the avoidance of doubt,
the Master Landlord at the Rancho Cucamonga Facility is 9th & Vineyard, LLC, a Delaware limited liability company.

 

“Master Landlord
Consents” shall mean, (a) the written consent in the form of Exhibit B annexed hereto of the Master Landlord at
the Rancho Cucamonga Facility, and (b) to the extent legally required, the written consents of the Master Landlords at each other IPW
Warehouse Location that IPW subleases to the Company pursuant to this Agreement.

 

“Master Lease”
shall mean the lease or sublease between a Master Landlord and IPW of an IPW Warehouse Location that is or shall become subject to
this Agreement.

 

“NNN Charges”
means the Subtenant’s Pro Rata Share of all other costs set forth in the applicable sections referred to below of the Master
Lease, including without limitation the following: (i) Real Property Taxes; (ii) Utilities; (iii) Landlord’s insurance costs; (iv)
Common Area Costs; (v) Landlord’s costs and expenses; (vi) Association fees and dues; and (vii) Management and accounting fees.

 

“Rancho Cucamonga
Facility” means the approximately Ninety-Nine Thousand Three Hundred Forty-Seven (99,347) square foot building known as applicable
IPW Warehouse Facility C, having an address of 8798 9th Street, Rancho Cucamonga, California 91730.

 

“Rancho Cucamonga
Sublease” means the sublease agreement between IPW, as sublandlord, and the Company as subtenant, the operative terms of which
set forth in this Agreement, pursuant to which the Company has subleased and is given use and access to the number of square feet of Subleased
Premises at the Rancho Cucamonga Facility and the Company, as subtenant has agreed to pay the Company Pro Rata Share of the Base Rent
and NNN Charges for the Subleased Premises, all of which are listed and described on Exhibit A annexed hereto and made a
part hereof.

 

“Sublease Expiration
Date” shall be the date that is reflected on Exhibit A, as amended
from time to time.

 

“Subleased Premises”
shall mean the location and square foot area in any IPW Warehouse Facility reflected on Exhibit A or an attachment thereto
which is subleased to the Company for its use and access that becomes subject to this Agreement.

 

“Subtenant’s
Pro Rata Share” shall mean the percentage (expressed as a decimal) determined by the amount by which the number of square
feet representing the Subleased Premises bears to 100% of the rentable square feet contained in the applicable IPW Warehouse
Location that is or shall become subject to the terms and conditions of this Agreement.

 

2.          Facility
Use and Access. On the Effective Date, IPW and the Company shall execute and deliver this Agreement and provide the Company, as
subtenant, with use and access to the Subleased Premises at the Rancho Cucamonga Facility set forth on Exhibit
A; which executed Agreement shall be held in escrow by counsel to IPW and shall
not be deemed to be delivered or effective until the Closing Date, after IPW shall have received the Master Landlord Consent duly
executed by the Master Landlord of the Rancho Cucamonga Facility. In the event and to the extent that IPW and the Company shall
agree to sublease to the Company any Subleased Premises any additional IPW Warehouse Locations (including the City of Industry
Facility), the terms and conditions of this Agreement shall govern such additional sublease and IPW Warehouse Location facility use
and access and Exhibit A hereto shall be appropriately amended and updated.

 

3.          Obtaining Master Landlord
Consents. IPW shall use its commercially reasonable efforts to obtain the Master Landlord Consent of the Master Landlord at the
Rancho Cucamonga Facility on or before January 31, 2022; provided, that IPW shall not be obligated to pay any additional rent or
other monetary amounts, or amend the terms of the either the Rancho Cucamonga Lease Agreement.

 

 

 

    	 	2	 

     

    

 

4.          Term
of Agreement. Subject to the early termination provisions of this Agreement shall have a term with respect to the sublease of
each IPW Warehouse Location that is or shall become subject to the terms and conditions of this Agreement and shall be reflected
from time to time on Exhibit A.

 

5.          Termination of Agreement.

 

(a)            In
the event that both Master Landlord Consents are not obtained by January 31, 2022, then this Agreement as well as the Limited Liability
Company Agreement, the Joint Venture Agreement, the Consulting Agreement and all other Transaction Documents referred to in the Limited
Liability Company Agreement may, at the election of IPW, terminate and be of no further force or effect. In the event that the Master
Landlord Consent to the Rancho Cucamonga Sublease shall be obtained by January 31, 2022, but not the Master Landlord Consent to the City
of Industry Sublease, this Agreement and the other Transaction Documents shall remain in full force and effect and the Company shall
sublet and have access only to the Subleased Premises set forth in the Rancho Cucamonga Sublease. In the event that the Rancho Cucamonga
Sublease shall not be obtained by January 31, 2022, either the Company or IPW may terminate this Agreement and the other Transaction
Documents.

 

(b)             In the event that Xiao and TPA shall fail to comply with the financial covenant set forth in clause (i) of Section 6.04 of the
Limited Liability Agreement, then and in such event, IPW may, following 18 months from the Closing Date, terminate this Agreement, terminate
the Joint Venture Agreement, terminate the Consulting Agreement and terminate the Limited Liability Agreement; in which event there shall
be a dissolution of the Company.

 

6.          Demise. Sublandlord hereby subleases to Subtenant,
and Subtenant hereby subleases from Sublandlord, the square feet of space in Subleased Premises in the applicable IPW Warehouse Facility,
as depicted on Exhibit A attached hereto (the “Subleased Premises”).
Subtenant acknowledges that the applicable IPW Warehouse Facility contains certain public or common areas that are necessary for access
to the Subleased Premises (the “Shared Areas”). The Shared Areas are not part
of the Subleased Premises and shall be shared by Subtenant and any other occupants of the applicable IPW Warehouse Facility with access
rights thereto. Subtenant is hereby granted the right to the nonexclusive use of the Shared Areas in accordance with Section this Agreement;
provided, however, the manner in which such Shared Areas are maintained and operated shall be at the sole discretion of Sublandlord and
the use thereof shall be subject to such rules, regulations and restrictions as Sublandlord may make from time to time.

 

7.          Rent.

 

(a)             The parties agree that Subtenant shall be pay rent to the Sublandlord from the Sublease Commencement Date through the Sublease
Expiration Date a date and in an amount equal to the Subtenant’s Pro Rata Share of the base rent and applicable NNN Charges set
forth in Exhibit A hereto as the same may be amended from time to time. Notwithstanding the foregoing, Sublandlord will be primarily response
for, and shall pay to the applicable Master Landlord both the base rent and applicable NNN Charges set forth in the applicable Master
Lease. Unless otherwise set forth in Exhibit A, from the Sublease Commencement
Date and continuing during the remaining Sublease Term, Subtenant shall pay to Sublandlord, without demand, offset or delay, when due,
Subtenant’s Pro Rata Share of the base rent (“Base Rent”) in monthly installments
(prorated for any fractional month) in advance on or before the first day of each calendar month throughout the Sublease Term.

 

(b)            Commencing on the Sublease Commencement Date Subtenant shall also be responsible for and shall pay to Sublandlord the Subtenant’s
Pro Rata Share of all NNN Charges.

 

(c)             Unless
otherwise agreed in writing, all payments of Subtenant’s Pro Rata Share of Base Rent and applicable Subtenant’s Pro Rata
Share of NNN Charges payable under this Agreement shall be paid by Subtenant to Sublandlord at Sublandlord’s notice address referenced
in this Agreement (or at such other address as selected by Sublandlord from time to time on written notice to Subtenant) in advance without
demand, abatement or setoff on or before the first day of each month during the Sublease Term. To the extent Subtenant occupies the Subleased
Premises during any “hold over” period following expiration of the Sublease Term, the rent payable hereunder shall be increased
in proportion to the increase described in the applicable Master Lease. To the extent any amount due hereunder is not paid within five
(5) dates of the applicable due date, Subtenant shall pay interest on such delinquent amounts at the lesser of (i) 1.5% per month, or
(ii) the maximum rate allowed by law, whichever is lower, until payment of such delinquent amounts.

 

 

    	 	3	 

     

    

 

8.          Condition
of Subleased Premises. Sublandlord shall deliver the Subleased Premises (including any furniture, fixtures or other property belonging
to Sublandlord included in the Subleased Premises), to Subtenant in an “as-is, with all faults” condition. Subtenant acknowledges
that neither Sublandlord nor any agent of Sublandlord has made any representation or warranty to Subtenant regarding the condition of
the Subleased Premises or the Master Premises, including without limitation, any representation or warranty with respect to the suitability
or fitness thereof for Subtenant’s purposes. Sublandlord shall not be obligated to make or pay for any improvements or alterations
to the Subleased Premises for Subtenant’s use or occupancy thereof.

 

9.          Parking.
Effective on and after the Sublease Commencement Date and continuing during the Sublease Term, Subtenant shall have the right to use a
number of available parking spots in the building’s parking lot that is equal to Subtenant’s Pro Rata Share of the number
of parking spots that Sublandlord is permitted to use under the Master Lease from time to time, subject to adjustment, charges and other
terms of the Master Lease.

 

10.        Use.
Subtenant covenants and agrees to use the Subleased Premises solely for the uses and purposes permitted under the Master Lease, and to
comply with all terms and provisions of the Master Lease pertaining to the use of the Subleased Premises. Notwithstanding the foregoing,
Subtenant shall have no access to the roof of the applicable IPW Warehouse Facility.

 

11.         No Alterations; Care of Subleased Premises. Subtenant
may not make any improvements, alterations, additions or changes to the Subleased Premises (collectively, “Alterations”)
without first obtaining the prior written consent of the Master Landlord to such Alterations, which consent may be withheld by the
applicable Master Landlord in its sole and absolute discretion. In the event that such Master Landlord consents to any Alteration, Subtenant
shall comply with such conditions and requirements (including any requirements to remove such Alterations) as are imposed by Master Landlord
and shall be subject to the terms and provisions of the applicable Master Lease. Subtenant shall take good care of the Subleased Premises
during the Sublease Term, shall return the Subleased Premises to Master Landlord in broom clean condition, and, at its sole cost and
expense, shall repair, or reimburse Subtenant for, any damage, destruction, injury, mutilation, Alteration, loss or theft of any of the
fixtures, furniture, equipment or other personal property, if any, located in the Subleased Premises, or the applicable IPW Warehouse
Facility.

 

12.        Master Lease.

 

(a)             Consent of Master Landlord. With respect to the Rancho Cucamonga Facility, the Master Landlord’s written consent to
this Agreement will be a condition subsequent to the validity of this Agreement. If such Master Landlord’s consent has not been
obtained by January 31, 2022, Sublandlord shall thereafter have the ongoing right to terminate this Agreement pursuant to a notice so
stating delivered to Subtenant and the parties shall be released from any further obligations under this Agreement, except for those provisions
expressly stated to survive. \

 

(b)              Cancellation of Master Lease. In the event the Master Lease that is subject to this Agreement is cancelled or terminated
for any reason, or involuntarily surrendered by operation of law before the expiration date of this Agreement, this Agreement shall automatically
terminate and the parties shall be released from any further obligations under this Agreement, except for those provisions expressly stated
to survive.

 

13.        Relationship of Sublease to Master Lease.
Subtenant acknowledges that this Agreement is subject and subordinate to the applicable Master Lease and to all of the terms,
covenants and conditions set forth therein. A copy of the Master Lease will be made available to Subtenant. Subtenant covenants and
agrees during the Sublease Term to perform and observe all of the terms, covenants, conditions and agreements set forth in the
Master Lease to be performed by Sublandlord, as tenant under the Master Lease, with respect to the Subleased Premises, to the extent
that such terms, covenants, conditions and agreements are not expressly modified or amended by this Agreement. Subtenant shall not
do or suffer or permit anything to be done which would constitute a breach or default under the Master Lease or might cause the
Master Lease to be terminated, canceled or forfeited.

 

14.        Incorporation of Master
Lease. Except to the extent the terms and conditions set forth in this Agreement expressly modify or contradict the terms and
conditions of the Master Lease or to the extent expressly excluded, all of the terms and conditions set forth in the Master Lease
are hereby incorporated into and made a part of this Agreement with respect to Subtenant’s sublease of the Subleased Premises.
For purposes of such incorporation, all references in the Master Lease to “Landlord” shall mean and refer to Sublandlord
and all references in the Master Lease to “Tenant” shall mean and refer to Subtenant. Except as otherwise expressly
provided in this Agreement, for purposes of Subtenant’s sublease of the Subleased Premises, the rights and obligations of the
“Landlord” and the “Tenant” under the Master Lease shall be deemed the rights and obligations of Sublandlord
and Subtenant, respectively, hereunder, and shall be binding upon and inure to the benefit of Sublandlord and Subtenant,
respectively. As between the parties to this Agreement only, in the event of a conflict between the terms of the Master Lease and
the terms of this Agreement, the terms of this Agreement shall control.

 

 

 

    	 	4	 

     

    

 

15.        Landlord’s
Performance Under Master Lease. Notwithstanding any contrary provision of this Agreement, Subtenant recognizes, understands
and agrees that Sublandlord is not in a position to render any of the services or to perform any of the obligations of Master Landlord
under the Master Lease which have otherwise been incorporated herein. Therefore, notwithstanding anything to the contrary set forth in
this Agreement, Sublandlord shall in no event be liable to Subtenant for any covenants, obligations, indemnities, representations or
warranties to be performed or provided by Master Landlord under the Master Lease, nor shall any failure or delay on the Master Landlord’s
part in the performance of any such covenants, obligations, indemnities, representations or warranties excuse the performance by Subtenant
of its obligations under this Agreement, including, without limitation, the obligation to pay rent or any other charges due hereunder,
nor permit Subtenant to terminate this Agreement or any of its obligations hereunder; provided, however, Subtenant shall be entitled
to participate with Sublandlord in the enforcement of Sublandlord’s rights against the Master Landlord under the Master Lease,
and, at Subtenant’s written request, Sublandlord shall take commercially reasonable steps, at Subtenant’s expense, to enforce
Sublandlord’s rights against Master Landlord. Notwithstanding the foregoing, if as a result of a breach or default by Master Landlord
under the Master Lease that pertains to the Subleased Premises Sublandlord is entitled to an abatement of the base rent payable under
the Master Lease, then Subtenant shall have the same abatement right under this Agreement to the extent the condition or matter pertains
to the Subleased Premises, but only to the extent of Sublandlord’s rights under the Master Lease. If Sublandlord shall take or
participate or assist in, or shall be requested to take, participate or assist in, any actions to enforce Sublandlord’s rights
against the Master Landlord, Subtenant agrees to be responsible for all costs, expenses and other amounts incurred by Sublandlord in
connection therewith, including, without limitation, attorneys’ and/or consultants’ fees and other costs of suit. Subtenant
agrees to indemnify, defend and hold Sublandlord harmless from and against any and all liabilities, damages, claims, losses, costs and
expenses (including, without limitation, reasonable attorneys’ fees) incurred by or brought against Sublandlord as a result of
or in connection with any actions or proceedings taken or instituted by Subtenant (or by Sublandlord at Subtenant’s request) to
enforce Sublandlord’s rights and remedies under the Master Lease, whether or not Sublandlord joins therein.

 

16.        Compliance with Sublandlord Policies. Subtenant shall comply with all policies of Sublandlord related to workplace conduct
and safety and all policies aimed at insuring the security of all property of Sublandlord and/or, if applicable, clients of Sublandlord
and to protect such property from unauthorized access, as well as any other requirements related to security procedures as in effect from
time to time (collectively, the “Sublandlord Policies”). Although Sublandlord shall use commercially reasonable efforts
to keep Subtenant apprised of the Sublandlord Policies, Subtenant acknowledges that the Sublandlord Policies may change from time to time
without advance notice to Subtenant. “Subtenant Personnel” means, collectively and singularly, each employee, independent
contractor agent, representative, or other individual working for or on behalf of Subtenant. Subtenant shall comply and shall be responsible
for ensuring that the Subtenant Personnel, Subtenant's clients and any other invitee of Subtenant comply with the Sublandlord Policies
and Subtenant will implement, maintain and enforce in all respects appropriate rules and regulations, and provide appropriate training
to its employees to ensure that the Subtenant Personnel at all times comport themselves in accordance with, and comply with, the Sublandlord
Policies.

 

NOTWITHSTANDING ANY CONTRARY PROVISION OF THIS
AGREEMENT OR THE MASTER LEASE, IN THE EVENT SUBTENANT, THE SUBTENANT PERSONNEL OR ANY CLIENT OR OTHER INVITEE OF SUBTENANT FAILS TO COMPLY
WITH THE SUBLANDLORD POLICIES, SUBLANDLORD SHALL HAVE THE RIGHT, BUT NOT THE OBLIGATION, TO TERMINATE THIS AGREEMENT EFFECTIVE IMMEDIATELY.
SUBTENANT HEREBY ACKNOWLEDGES THAT SUCH A BREACH BY SUBTENANT IS NOT CURABLE AND SUBTENANT HEREBY WAIVES ANY AND ALL RIGHTS TO CURE OR
NOTICE REQUIRED BY ANY STATUTE OR LAW NOW OR HEREAFTER IN FORCE, INCLUDING WITHOUT LIMITATION ANY STATUTORY NOTICES REQUIRED UNDER CALIFORNIA
CODE OF CIVIL PROCEDURE SECTION 1161 ET SEQ.

 

Initials of Subtenant:

 

17.       Shared
Areas and Office Supplies. Sublandlord agrees to provide Subtenant access to and nonexclusive use of the bathrooms, kitchen and machine
room located within the Shared Areas (as depicted on Exhibit A) or in such other location as may be selected by Sublandlord
from time to time; which Subtenant shall share with any other occupants of the applicable IPW Warehouse Facility (including Sublandlord
during the first month of the “rent free” period”). Subtenant shall at all times keep such areas clean and free of debris,
and shall not use such area for the storage of office supplies, records, or the like. Subtenant shall provide any and all supplies (including
toner for copiers and the like) used by it at its sole cost and expense.

 

 

 

    	 	5	 

     

    

 

18.          Indemnification. Subtenant hereby agrees to indemnify, defend and hold Sublandlord and its affiliates and their respective
agents, employees, invitees, officers, directors and stockholders (the “Indemnified Parties”) harmless from and against any
and all claims, losses, damages, liabilities, costs and expenses (including, without limitation, reasonable attorneys’ fees and
disbursements) incurred by or brought or asserted against Sublandlord arising out of or related to (a) Subtenant’s breach or failure
to perform or comply with any covenants, agreements, terms or conditions of this Agreement or the Master Lease; (b) Subtenant’s
use or occupancy of the Subleased Premises, Shared Areas, applicable IPW Warehouse Facility, or any portion thereof; and/or (c) any activity,
or thing done, permitted to be done or suffered by Subtenant, its agents, employees, contractors, invitees, licensees, successors or
assigns in or about the Subleased Premises, Shared Areas, applicable IPW Warehouse Facility, or any portion thereof. The terms and provisions
of this Section 18 shall survive the expiration or earlier termination of this Agreement.

 

19.         Insurance.
Subtenant shall at it sole cost and expense maintain in full force and effect a policy or policies of comprehensive liability insurance,
including property damage, written by one or more insurance companies licensed to do business in the state of California and reasonably
acceptable to Sublandlord, which policies shall at least comply with or exceed the requirements of the Master Lease and shall include
general liability limits of $1,000,000 per claim with $3,000,000 aggregate and $1,000,000 for damage to property. Subtenant shall provide
a certificate of insurance on a standard industry form naming Sublandlord (and, if requested by Sublandlord, Master Landlord), as an
additional insured, against liability for injury to persons or to property or for the death of any person or persons occurring on or
about the Licensed Area, the applicable IPW Warehouse Facility. Subtenant must also provide proof of coverage for workers’ compensation
insurance as required by applicable law and employer’s liability insurance, with a deductible no greater than $100,000.

 

20.        No
Brokers or Third-Party Beneficiaries. Each party represents and warrants to the other that it has not dealt with any broker or finder
in connection with the consummation of this Agreement. Each party agrees to indemnify, defend and hold the other party harmless from
and against any and all claims for brokerage commissions or finders’ fees payable to any other person or entity arising out of
the indemnitor’s actions or statements in connection with this Agreement. This Agreement is not made for the benefit of any third
party, other than the Indemnified Parties specifically identified in Section 18.

 

21.         Severability.
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid
and unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected thereby and each term or provision of this Agreement shall
be valid and be enforced to the fullest extent permitted by law.

 

22.        Miscellaneous.

 

(a)            Notices.
All notices, requests, consents, claims, demands, waivers, and other communications hereunder shall be in writing and shall be deemed
to have been given (a) when delivered by hand (with written confirmation of receipt), (b) when received by the addressee if sent by a
nationally recognized overnight courier (receipt requested), (c) on the date sent by facsimile or email of a PDF document (with confirmation
of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours
of the recipient, or (d) on the third Business Day after the date mailed, by certified or registered mail, return receipt requested, postage
prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this Section 6(a)):

 

	
    If to the Company:

     

    If to IPW

     
	
    Bin Xiao, President

    Box Harmony, LLC

    8798 9th Street, Building C

    Rancho Cucamonga, CA

    iPower Inc.

    2399 Bateman Avenue

    Duarte, CA 91010

    Attn: Chenlong Tan

    Email: Law.t@meetipower.com

 

 

 

    	 	6	 

     

    

 

(b)             
Headings. The headings in this Agreement are inserted for convenience or reference only and are in no way intended
to describe, interpret, define, or limit the scope, extent, or intent of this Agreement or any provision of this Agreement.

 

(c)             Severability.
If any term or provision of this Agreement is held to be invalid, illegal, or unenforceable under applicable Law in any jurisdiction,
such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render
unenforceable such term or provision in any other jurisdiction. On such determination that any term or other provision is invalid, illegal,
or unenforceable, 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 a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally
contemplated to the greatest extent possible.

 

(d)             Entire
Agreement. This Agreement and all related Exhibits and Schedules, constitutes the sole and entire agreement of the parties to this
Agreement with respect to the subject matter contained herein and therein, and supersedes all prior and contemporaneous understandings,
agreements, records, representations, and warranties, both written and oral, whether express or implied, with respect to such subject
matter.

 

(e)              Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, successors, and permitted assigns. This Agreement may not be assigned by any party except
as permitted by this Agreement and any assignment in violation of this Agreement shall be null and void.

 

(f)              Amendment.
No provision of this Agreement may be amended or modified except by an instrument in writing executed by the Company and IPW. Any
such written amendment or modification will be binding upon the Company and IPW.

 

(g)              Waiver. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing
and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach,
or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before
or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power, or privilege arising from this Agreement
shall operate or be construed as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power, or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.

 

(h)             Governing
Law. All issues and questions concerning the application, construction, validity, interpretation, and enforcement of this Agreement
shall be governed by and construed in accordance with the internal laws of the State of California, without giving effect to any choice
or conflict of law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application
of laws of any jurisdiction other than those of the State of California.

 

(i)              Submission
to Jurisdiction. The parties hereby agree that any suit, action, or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions contemplated hereby, whether in contract, tort, or otherwise,
shall be brought in the United States District Court for the Southern District of California or, if such court does not have subject
matter jurisdiction, the courts of the State of California sitting in Los Angeles County, and any appellate court from any thereof, and
that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of
California. Each of the parties hereby irrevocably consents to the jurisdiction of such courts in any such suit, action, or proceeding
and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the
venue of any such suit, action, or proceeding in any such court or that any such suit, action, or proceeding that is brought in any such
court has been brought in an inconvenient form. Service of process, summons, notice, or other document by registered mail to the address
set forth herein shall be effective service of process for any suit, action, or other proceeding brought in any such court.

 

(j)              Equitable
Remedies. Each party hereto acknowledges that a breach or threatened breach by such party of any of its obligations under this Agreement
would give rise to irreparable harm to the other parties, for which monetary damages would not be an adequate remedy, and hereby agrees
that in the event of a breach or a threatened breach by such party of any such obligations, each of the other parties hereto shall, in
addition to any and all other rights and remedies that may be available to them in respect of such breach, be entitled to equitable relief,
including a temporary restraining order, an injunction, specific performance, and any other relief that may be available from a court
of competent jurisdiction (without any requirement to post bond).

 

 

 

    	 	7	 

     

    

 

(k)             Attorneys' Fees. If any party hereto institutes any legal suit, action, or proceeding, including arbitration, against
another party in respect of a matter arising out of or relating to this Agreement, the prevailing party in the suit, action, or proceeding
shall be entitled to receive, in addition to all other damages to which it may be entitled, the costs incurred by such party in conducting
the suit, action, or proceeding, including reasonable attorneys' fees and expenses and court costs.

 

(l)              Remedies Cumulative. The rights and remedies under this Agreement are cumulative and are in addition to and not in
substitution for any other rights and remedies available at law or in equity or otherwise, except to the extent expressly provided herein
to the contrary.

 

(m)       Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, email, or other means of Electronic Transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[Signature
Page Follows]

 

 

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written
above by their respective officers thereunto duly authorized.

 

The Company:

 

Box Harmony, LLC

a Nevada limited liability company

 

By: /s/ Bin Xiao

Name: Bin Xiao,

Title: President

 

iPower Inc.

 

a Nevada limited liability company

 

By: /s/ Chenlong Tan

Chenlong Tan

Title: CEO

 

Signature page to Facility Use and Access Sublease Agreement

 

 

 

    	 	9	 

     

    

 

Exhibit A

 

	Address of IPW 

Warehouse Location and 

Master Landlord	Square Feet 

Subleased 

Premises	Subtenant’s Pro 

Rata Share (Sq. 

Ft. and %)	Base Rent	Sublease 

Expiration 

Date
	
    8798 9th Street, Rancho Cucamonga, California 91730

     

    Master Landlord: 9th & Vineyard, LLC

     
	99,347 square feet	 	
    1-12 $1.15 per square foot per

    month or a total of

    $__________

     
	 
	
    13-24 $1.19 per square foot per

    month or a total of

    $__________

     

	
    25-36 $1.23 per square foot per

    month or a total of

    $__________

     

	
    37-48 $1.27 per square foot per

    month or a total of

    $__________

     

	49-60 $1.31 per square foot per month or a total of $__________
	61-62 $1.36 per square foot per month or a total of $__________
	 
	[List others as needed]	 	 	 	 
	 	 	 	 	 

 

 

Signature page to Facility Use and Access Sublease Agreement

 

 

 

    	 	10	 

     

    

 

Exhibit B

 

Form of

 

Master Landlord Consent

 

The undersigned hereby consents to the Facility and Use Access Sublease
Agreement, dated _____ 2022 between Box Harmony, LLC, as Subtenant, waiving none of its rights thereunder as to Sublandlord, Subtenant
or any guarantor. Without limiting the generality of the foregoing:

 

1.          Nothing contained in this Consent or in the lease [sublease]
dated _____ between the undersigned as Master Landlord and iPower Inc. as Tenant [Sublessee] (the “Master Lease”) shall be
construed to:

 

a)                   modify, waive or affect (i) any of the provisions, covenants, or conditions of the Master Lease, (ii) any of the Sublandlord’s
obligations under the Master Lease, or (iii) any rights or remedies of Master Landlord under the Master Lease, any guaranty or otherwise;

 

b)                  waive any present or future breach or default on the part of any Sublandord under the Master Lease; or

 

c)                   release or discharge Sublandlord or any guarantor from any liability of their obligations under the Master Lease or any guaranty.

 

2.          This Consent is not assignable and shall not be construed
as a consent to any further assignment or sublease of the Lease.

 

	 	 [9th & VINYARD, LLC,] AS MASTER LANDLORD

 

By: ___________________________

 

Name: _______________________

 

Its: ____________________

 

 

Signature page to Facility Use and Access Sublease Agreement

 

 

    	 	11

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